7X- /A/ Document of The World Bank FOR OFFICIAL USE ONLY ReportNo. 12193-IN STAFF APPRAISALREPORT INDIA ANDHRA PRADESH FORESTRY PROJECT JANUARY 24, 1994 MICROGRAPHICS Report Nlo: 12193 IN Type: SAR Agriculture Operations Division Country Department II South Asia Regional Office This document has a reshicted distribution and may be used by recpients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authoizaion. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
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7X- /A/Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No. 12193-IN
STAFF APPRAISAL REPORT
INDIA
ANDHRA PRADESH FORESTRY PROJECT
JANUARY 24, 1994
MICROGRAPHICS
Report Nlo: 12193 INType: SAR
Agriculture Operations DivisionCountry Department IISouth Asia Regional Office
This document has a reshicted distribution and may be used by recpients only in the performance of
their official duties. Its contents may not otherwise be disclosed without World Bank authoizaion.
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CURRENCY EOUIVALRNTS
(as of April 1993)
Currency Unit - Rupees (Rs.)US$ 1 = Rs. 30.7
WEIGHTS AND MEASURES
The metric system is used throughout the report
ABBREVIATIONS AND ACRONYMS
AWP - Annual work Plan
DAH - Department of Animal Husbandry
EFD - Energy and Forests DepartmentERR - Economic Rate of ReturnFD - Forest DepartmentFDC - Forest Development Corporation
GIS - Geographical Information SystemGOAP - Government of Andhra PradeshGOI - Government of IndiaICB - International Competitive BiddingIRR - Internal Rate of Return
The report is based on the findinqs of a Bank Appraisal mission which visited India in April
1993. The mission consisted of Messrs./Mmes. A. Clark (Task Manaqer), A. Contreras, P.
Gubhthakurta, M. Jansen, N. Jones. C. Roil, V. Kumar, M. Mitra, N. Rman (lank) and 0. Ralu
(Consultant) Additional contributions were made by Ms. T. Estoque and Mr. B. Singh (Bank).
The report is endorsed by Mr. H. Vergin (Director) and Mr. S. arqhouti (Division Chief).
Assistance was also provided by peer reviewers Messrs./Mhes. 0. Baykal (Forestry), A. Sfeir-
Younis (Econo0Mcs) and S. Shen (Environment).
This document hS a resictod distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclsed without World Dank authoizaion.
CREDIT ADI PROJECT SUMaRY
rnQxayzm India, acting by its President
Uimtn*lng A *t nflf: The Forest Department CFD) of the Government of AndhraPradesh (GOAP).
hmmmtL: IDA Credit of SDR 55.6 million (US$ 77.4 millionequivalent).
5Zama: Standard, with 35 years maturity.
6ft-1.in 44w"g YwIwa: rrom GOI to GOAP as part of central assistance to thestate for development assistance on standard terms andconditions applicable at the time.
flhnelina iazsa: About 700,000 households of fringe forest dwellers and
small farmors, including about 150,000 tribal households.
ED= : Catomss-o Program of Targeted Interventions.
The population of project main beneficiaries, fringeforest villagers and tribals, belong to the poorestsections of society. These beneficiaries consist to over50% of scheduled casts and tribes, who are poorer thanthe State's rural population as a whole. The projectalso has a set of specific measures so that projectactivities support the interests of these groups andthose of women, such as statutory safeguards for theirparticipation in village forest protection committees,employment preference, training targeting women of fringeforest or tribal villages, and gender-sensitivemonitoring.
3mira4 nosThri: This project would finance a 6-year program to support:(a) forestry works on about 355,000 ha. This wouldconsist of regenerating or afforesting degraded forestareas on about 173,000 ha with multi-tier coverage underparticipatory management arrangements with localpopulations; plantation forestry on 104,500 ha includingsilvicultural operations on 15,000 ha of teakplantations; and e3panding coamunity and farm forestcoverage by about 77,000 ha: (b) alleviation of povertythrough employment and a stream of sustainable forestbenefits targeted mainly to fringe forest dwellers,tribals and small farmers: (c) special action programsgeared to: improve forestry research and plantpropagation, support the joint forest management processthrough training and some funding to BOOs, improvebiodiversity conservation and protected areas manaement,undertake collaborative fodder development with the FDand other organizations, and a tribal development plans
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and (d) buildings, vehicles, equipment, training,studies, ineremental staff and operating costs for theforest administration.
g4aka: The main project risks would be: (a) the degree ofcommitment within some parts of participating departmentsof GOAP to make the necessary institutional and policyreforms; (b) the effectiveness of people's participationin forest management and development; and Cc) parts ofnorthern Andhra Pradesh experience unrest from naxalitegroups which may make project activities there moredifficult.
1.1 In 1991, the recorded area of forest in India was 77 million hectares,but only about 64 million hectares, or 19 percent of the country's totalgeographical area, is actually covered by forests. The distribution of forestcover is uneven, with more than 50 percent in five states: Madhya Pradesh,Arunachal Pradesh, Andhra Pradesh, Orissa ancd Maharashtra. More than 80percent of Arunachal Pradesh is forested, while the forest cover amounts toless than 4 percent in Rajasthan and Punjab. Forest cover is concentrated inthe northeast, the Himalayas, the central and Western Ghats and in patches ofmangroves in coastal areas. The nation's per-capita average forest area is0.07 ha, which is among the lowest in the world.
1.2 Forests in India play an important role in maintaining environmentalstability mainly through soil and moisture conservation and amelioration ofmicroclimate. They are also depositories of rich genepool resources andbiodiversity. They play an important role in the economy by providing avariety of wood and non-wood products. The national consumption of timber andwood in 1988 was estimated at approximately 260 million m3; more than 90percent of the harvested wood is used for fuelwood. Forests are also the mainsingle source of fodder and other non-timber forest products (NTFP). In mostareas local people have free access to forests to meet their fuelwood and alsofodder or grazing needs for their livestock. Part of the fuelwood collected by
the rural people is sold in the urban market. Particularly poor farmers andthe landless depend on the forests for their own subsistence needs, whilstmany also derive their income from the sale of fuelwood and NTFP. Thecontribution of the forestry sector to GNP has been estimated to be less than2 percent, but this does not take into account the numerous non-monetary andexternal benefits, nor the unrecorded harvests of fuelwood, timber and NTFP.Nor does it reflect the great importance of the forests to supporting theenormous cattle population.
1.3 The average productivity of the natural forests as well as that offorest plantations is poor, being well below capacity. The degradation of theforest resource due to over-exploitation and clearing is proceeding at analarming rate. Between 1950 and 1980, about 4.3 million hectares of forestland was diverted to non-forest use, mainly for agriculture includingirrigation, hydropower projects, industry and mining, etc. Encroachment andshifting cultivation also cause forest destruction in some areas. Almost halfof the recorded area of India's remaining forests are badly degraded ordenuded. Forest degradation and deforestation are a direct consequence of theacute land scarcity in India, which is increasing with the rising population,and is exacerbated by the effects on vegetation and soil from India'slivestock population, totalling an estimated 450 million head. Practicallyfree and unregulated grazing in forest areas impedes natural regenerationbecause the soil becomes too compact for seeds to germinate due to livestockmovement, or the regrowth is destroyed through animal browsing. Otherimportant pressures on the forests are the state governments' demands forrevenue from the forests and for timber, pulpwood and fuelwood to supplyindustries and urban consumers. The large demand-supply gap in forest productsis causing a continuous scarcity situation, and this results in the over-cutting of forests to meet the demand. Despite extreme pressures on forests,it is to the credit of the states' forest departments that large areas offorests are still maintained. However, the depletion of the resource has beenoutstripping its conservation and development.
1.4 Historically Indian forests were primarily managed for generatingmaximum revenue for the states mainly from the sale of timber. The emphasis offorest management has recently been shifted tc resource conservation anddevelopment. In 1980 the Forest Conservation Act was promulgated, according towhich the State Governments cannot divert forest land to non-forest purposeswithout the prior approval of the Central Government. The Act was amended in1988 to restrict clearfelling of natural forest and the leasing of forestland, making them conditional to approval by GOI. In December, 1988 the newNational Forest Policy was adopted to meet the challenge of the continueddepletion of the country's forest resources. The principal aim of the forestpolicy is to ensure the ecological balance, and the derivation of directeconomic benefits has been declared a secondary aim. The objectives of thispolicy are: first, conservation of biodiversity, and checking of 9oil erosionand decertification; second, iiicreasing the forest cover; third, meeting theneeds for forest-derived goods and income of the rural and tribal population;fourth, increasing the forests' productivity to meet essential needs ofsociety at large; and the involvement of local people to achieve theseobjectives. The policy encourages farm forestry as a source of commercialtimber products and discourages the supply of such products from publicforests at concessional prices. The government has made efforts to increasethe country's forest cover through its social forestry program, implemented ona large scale from the early 1980s, which has promoted tree planting ondegraded private agricultural lands and public lands (wastelands). Totalwastelands are estimated at about 90 million hectares and include degradedforests, marginal agricultural land and uncultivated non-forest public land.Officially reported figures of areas planted and actual areas of successfulafforestation are at variance as effective monitoring has not been undertaken.An estimate of about 5 million hectares has been presented for the area ofnon-forest wastelands that have so far been afforested with some success. TheEight Five-Year Plan (1992-97) further emphasizes investments forrehabilitation of degraded forests and farm forestry. However, much of theabove-mentioned, large area of wastelands is being used by local populationsfor other purposes, particularly seasonal grazing.
1.5 Forestry used to be a state subject until 1977 when it came under theconcurrent list; this means that both GOI and the State Governments haveshared responsibility and control over the forestry sector. However, themanagement of the forests remains the responsibility of the states and it isup to them to decide on the strength and deployment of the staff and otherresources for implementation of the National Forestry Policy. Notwithstandingthe conservation-oriented forestry policy the State Governments are faced withpolitical pressures for forest products, land to satisfy a growing populationand industrial interest groups, and revenue compulsion. While investments forforest*y development are financed both from state resources and from GOI,forest maintenance and protection, including staff costs, are financed by thestates.
1.6 During the last one and a half decades the investment emphasis in theforestry sector has been shifted from natural forest management to socialforestry and afforestation programs with the people's involvement. While theseactivities have received ample funding and have been implemented with varyingsuccess, the state forest departments' normal activities, which relate to themanagement of the vast majority of the natural forest areas, have beencontinuously neglected in most states due to inadequate funding. The forestdepartments have also expanded their staff particularly to implementexternally supported social forestry projects. But there has been nore.aarkable change in their organizational structure or human resources
development so as to meet the new challenges to their mandate in the changedsocio-economic and technological scenario. Such change has also become
necessary for the successful implementation of the new forestry policy and the
participatory approach to forest management advocated by the policy.
1.7 Although many forestry programs that were taken up worked reasonablywell and forest departments have shown significant resilience and a capacity
to adapt, the Government is still facing some major issues in the sector.These issues vary from state to state, depending on a state's agro-climatic
and socio-economic conditions. The immediate issues required to be addressed,
as also recognized in the recent Forest Sector Review (para 1.30), can be
grouped into five categories: (a) local people have not been cufficiently
motivated to cooperate in forest protection and development, and the staff of
forest departments needs to be oriented to work closely with the local people
for this purpose; (b) goverament rules, regulations and procedures that
discourage villagers from engaging in farm forestry and agroforestry and make
these activities less profitable than they could be, need to be relaxed; (c)
technological development in forestry operations has not kept pace with the
heavy inflow of investment in afforestation programs and consequently the
productivity of the plantations is much below the optimux level; (d) the
traditional institutional structure of forest departments and arrangements for
human resources development of forest staff need to be changed so as to make
the departments more efficient; the lack of technical specialization among
staff needs to be addressed; and (e) the prominent position of forest
departments has tended to discourage other public and private sector actors
from sharing responsibility for the forestry sector's development. - Issueswhich pertain more specifically to the situation in Andhra Pradesh are
discussed below.
Forestry Davelopg=nt in Andhra Pradesh State
1.8 VFreat Ranoure-a. Many types of forests are found in Andhra Pradesh
and most suffer from degradation. The state has a recorded forest area ofabout 6.4 million ha or 23% of the geographical area but the actual forest
cover is 4.7 million ha. About 45% of the forest is degraded (25% is devoid
of tree cover) and there are another 2.9 million ha of wastelands outside the
classified forests. All forest lands are owned by GOAP. Most forests inAndhra Pradesh are deciduous (70%) or thorny (25%), with the remaining 5%
taken up by other forest types. Andhra Pradesh covers seven agro-ecological
zones but can physio-geographically be divided into three main areas -- the
coastal plains in a relatively narrow band to the east with rich agriculture;
the eastern ghats in the middle which consists of a narrow strip of hill
ranges running northeast to southwest; and the western peneplain with arolling topography which covers the rest of the area. The rainfall ranges
from 750 mm in the south to 1300 mm in the north. Part of the western
peneplain receives only 650 mm of rainfall annually.
1.9 The forests serve many different needs but are not evenly distributed.The northern coastal plains have degraded, previously rich, forests while the
eastern Ghats still contain some very good forests. The northern part of the
peneplain has the largest area of high value forests (north Telangana region)
while the southern part (Rayalaseema region) has tropical deciduous and thorn
forests. The most important species from a revenue point of view is teak (14%
of the tree area) and large areas of bamboo are worked on a rotational basisto supply local needs as well as part of the raw material requirements of the
state's major wood based industries. Beedie leaves, a non-timber forest
product, is another important source of revenue. The total forest area
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amounts to 0.10 ha per capita which is close to the national average. inaddition to meeting the local fuel, timber and industrial raw material needsthe forests also provide grazing to a large proportion of the state's 33million livestock (1987 Livestock Census).
1.10 The forests in Andhra Pradesh, like the forests in other parts ofIndia, are under serious threat from many causes. The first is what in Indiais commonly called "biotic pressure". This term includes: (1) unregulatedharvesting of fuelwood, charcoal, building materials, forage and forestproducts for self-consumption and sale; (2) uncontrolled grazing by livestockthat spend part or all year in the forests; and (3) clearing forest forsh fting cultivation or permanent encroachment. The effects of theseactivities go beyond the removal of trees and other plant cover: forestregeneration is also seriously reduced by the widespread practice of burningthe forest floor to promote fresh grass growth and by compaction in heavy-grazing areas. In addition, past policies that encouraged industries to cutbut not plant trees, certain logging practices, inadequate funding for forestmaintenance operations and timber smuggling, are all cited as causes for thedegradatior and clearing of natural forests. The same forces, plus technicalproblems such as poor quality seed and outdated nursery practices, have keptthe productivity of plantations low. The forest administration's mostlyinadequate arrangements to monitor the development of the forest resourcesmake analyzing the true extent of the problem and suggesting effectiveremedies very difficult. More details on forest resources in Andhra Pradeshare available in Annex 1 of the Imple'entation volume.
1.11 Bindivermit3 Conservation. Biodiversity conservation requires improvedmanaqement of resources within and outside the protected areas network andfurther study. There is one national park and 20 sanctuaries in AndhraPradesh covering nearly 1.2 million ha. This is equivalent to 4.3% of thetotal area and 18% of the forest area in the state. in most protected areassettlement of existing rights have not been completed. This has constrainedproper management of the areas. Other problems include inadequatebiogeographic coverage of some important eco-systems, little provision ofcorridors between areas, inadequate consideration of socio-economic needs ofcommunities living in and around the reserves, and administrative weaknessesin the wildlife wing of the FD. Besides the gazetted reserves, there are manysmaller areas of biological interest. These include a number of conservationareas, sacred groves, deer parks and three zoological parks. Over 5,000 plant,100 mammal, 500 bird and 100 reptile species have been recorded in the state.A number of the mammal and bird species are considered endangered. Speciesconservation depends mostly on successful habitat conservation which in turnrequires remedies to problems that threaten the survival of all forest areas.Many of the wildlife concerns need further study before effective managementplans for the different areas can be defined.
1.12 RaL^ gf Forest Sactor in the REonam=. Forestry plays a vital role invillage economies but a less prominent one in the state as a whole. Therevenues from forests contribute now only about 1% to state net domesticproduct. However, the increased emphasis on forest conservation embodied inthe National Forest Policy has greatly reduced harvesting operations. In 1990the recorded timber harvest was 51,600 m3 while the corresponding annualoutput until 1985 was over 100,000 m3 per year. Nowadays receipts from beedileaf collection (for local cigarettes) make up almost 40% of forest revenues.As a whole the forest-based industry generates over 60,000 jobs in the state.The larger wood based industries include paper and pulp, rayon manufacturingand saw timber. Forest raw materials are also the base of a large artisanal
industry. Basket making using bamboo is organized in 550 societies with 23,000
members and there are over 400 beedi manufacturing units. Additional jobs are
created in collection of NTFP and private forestry. More than 100,000 persons
are seasonally involved in the collection of beedie leaves alone. Another
important benefit from forests (albeit heavily overused) is livestock fodder
as mentioned in paras. 1.9-10.
1.13 W ld emnand anid S 1yg. There is insufficient infotmation about the
"wood balance' but recorded supply of forest produce is far below demand. The
requirements for fuelwood - 75-80% of total use - are estimated very
generally, as are those for the informal sector small sawmills, while wood
requirements of varioua industries are easier to estimate. Recorded
production data is incomplete as it excludes illegal felling, household usee
and removals of wood from non-forest lands. Therefore, accurately assessing
the gap between wood production and requirements is difficult. However, a
rough demand estimate shows a total requirement of about 19 million m3 of wood
annually increasing to 25 million m3 by the year 2000. FD estimates of supply
for fuelwood and pulpwood suggest that 13.4 million tons (about 21 million zn3)
are removed annually (0.2 million tons recorded, 4.4 million tons unrecorded
and another 8.8 million tons from areas outside the forests). A part of the
industrial wood and timber comes from other Indian states and from imports.
More details on supply and demand of forest products in Andhra Pradesh are
available in Annex 1 of the Implementation Volume.
1.14 IJ±it.±Lna. The initiative to put forward new policy propositions
usually comes from the forest administration. It is headed by the Forest
Secretary (from the Indian Administrative Service) who is in charge of funds
and policies, and the Principal Chief Conservator of Forests (from the Indian
Forest Service) who has the operational responsibility and authority over the
forest estate. Many policies have not been comprehensively assessed prior to
implementation and as a result there is a mixture of incentives for forest
protection and development on one hand but disincentives on the other hand.
The state government needs to strengthen policy analysis so that an efficient
incentive framework is set in place and interventions designed that address
the priority needs of the sector.
1.15 The public forest estate is managed by the Andhra Pradesh Forest
Department (FD) and the Andhra Pradesh Forest Development Corporation (FDC).
The FD is responsible for the protection, conservation, management and
development of the forest estate, including the national parks and wildlife
sanctuaries in the state, and for social forestry activities. The FD is also
concerned with extraction and sale of timber and other forest produce. The FD
has three main wings: territorial, social forestry and wildlife; and a number
of functional circles. "he priorities in the National Forest Policy (para.
1.4) require a change in the orientation of the forest administration towards
involvement of local people in the managament of forests (commonly referred to
as joint forest management or JFM). The FD organization, their activities and
the training provided to staff must change accordingly. The FDC was
established in 1975 to avail of institutional finance to convert mixed natural
forest of low e;onomic value into valuable industrial plantations (37,000 ha
eucalyptus and 10,000 ha bamboo). In addition, FDC has planted and/or managed
coffee and cashew plantations (4,000 and 18,000 ha).
1.16 The Fr-' basic structure has not substantially changed for many decades.
Over time, the department's organization has become increasingly complex both
horizontally and vertically: new responsibilities have been accommodated by
adding to the existing structure or by instituting special programs. At the
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same time, those parts of the department whose role has declined have not beenreduced or phased out. This development has led to continuous staff increasesbut at the same time to uneven workloade among staff. The augmentation offunctional groups has resulted in territorial overlaps andcompartmentalization within the same geographical areas, entailing roleconflicts among staff and in relation to beneficiary groups. The geographicaloverlap particularly between territorial forestry and social forestry is partof this problem, which is likely to increase further with the addition of thenew function of joint forest management (JFM). This historical developmentappears to have been accompanied by a parallel process e*uanating in manyinstitutional rigidities in natural resource planning, human resourcedeployment, delegation, and in manpower policies generally. Presently asystem is in place whereby senior staff rotate across all functional units atshort time intervals with little scope for specialized career development,continuity of tenure of important positions, or accountability for results inthe field. As a consequence, public forest management in Andhra Pradeshrequires to be made more effective.
1.17 Like in most other states, the FD has the primary mandate for theforestry sector. It is now clear that the FD alone cannot reverse thedeclining trend of the state's forest resources and requires the cooperationand involvement of other rural agencies, NGOs, the village communities and thecommercial private sect r, as complementary actors in the sector'sdevelopment. The FD is aware that its organizational structure, manpowerpolicies, the skills and attitude orientation of its staff, and its generalefficiency needs changes in the near future. This, however, will requirespecial efforts (Para. 3.2). The FD is now also willing to concede a largersectoral role to other public sector agencies, the private sector and NGOs.Their potential roles have yet to be closer defined.
1.18 Forestry activities are also undertaken by other departments and localinstitutions. The Rural Development Department has been providing a largevolume of funds for forestry development on non-forest lands, mainly stripplantations and plantations on common lands through its rural employmentprograms. Funds for forestry related activities are also provided through theAgriculture Department for the GOI's National Watershed Development Programand the Drought Prone Area Program. There are a number of NGOs involved intree planting and associated activities in the state. While the majority ofthe NG0s are very small, some of them have useful experience in motivation andextension activities, particularly in regard of organizing village communitiesand planning at the village level (micro-planning) for joint forest managementwhich is discussed in para. 1.23. in predominantly tribal areas developmentactivities (except forestry) are handled through the Integrated TribalDevelopment Agency (ITDA) and the Tribal Cooperative Corporation (GCC) whoboth have developed contact networks at the village level. A considerablyhigher degree of coordination is required between the FD and other actors inthe sector in order to effectively protect forests and promote forestdevelopment.
1.19 Taghn.o4gM. Lack of attention to productivity in Andhra Pradesh forestsis evident throughout the growth cycle. There is already a recognition in thestate that improved practices must be introduced as demonstrated by investmentin adaptive research over the past two years. The most fundamentaldeficiencies are in seed and nursery management which results in substandardplanting materials. Restrictions on cost per plant have encouraged nurseriesto produce mainly species which are cheap to raise and retain stock thatshould have been culled. Genetic recession is also widely observable in
plantations. These problems have proved difficult to correct due to the low
status and priority attached to research until recently. Another important
factor is the rotational system of staff transfers and promotions. Species and
sate matching should be improved to concentrate investments on quality rather
than quantity production and on products preferred by local populations.
1.20 pant DAveAInmQnt Strategiel. Traditional forest strategy includes a
focus on plantations to maximize timber production and enforced forest
protection. These approaches have failed to control unauthorized exploitation
and relationships between local people and forestry personnel became
increasingly stzained. The majority of the fringe population are unable to pay
for fuelwood and continue to collect wood for their own use and sale. Other
poor rural dwellers obtain their fuel from twigs, leaves, agricultural
residues and cow dung off private lands and dwindling commons.
1.21 Social ForAMtry. In the recent past Andhra Pradesh, like many other
states, focussed its forest development program mainly on "social forestry'
activities: tree planting largely outside of the reserved and protected
forests for local communities and distribution of seedlings to encourage the
planting of trees by farmers. CIDA supported a social forestry project in
Andhra Pradesh from 1983-1991 and is still providing limited funds to selected
NGOs involved in afforestation and watershed development activities in the
state. The project supported village woodlots on 42,000 ha, strip plantations
along 3,270 km and established 50,300 ha of farm forestry (notional area based
on seedling distribution). Similar or larger areas were also covered during
that time period by GOI and state government schemes.
1.22 While social forestry has succeeded in making the forest service more
people-oriented and in providing significant new supplies of wood, it has not
solved the problem of continuing deterioration of the forests. There are
several reasons for this including: (a) people were not adequately involved in
and did not feel ownership for so-called community plantations; (b) harvesting
from forests (generally tolerated although illegal) is much cheaper than
raising trees especially considering the need to use available lands for other
purposes; (c) social forestry has not yet produced enough wood and wood
products to meet needs; (d) most timber demands are not met by community and
private forestry produce; (e) some forest products (teak, sandalwood and red
sanders) are so valuable that the incentives for smuggling are very high; and
(f) focus on social forestry may have meant that funding for forest
maintenance and other activities has been somewhat neglected.
1.23 Joint I'orast Managari t. Efforts to involve local people in forest
management have long received sporadic attention in Indian forestry. An
innovative and experimental approach to the problem of people and cattle
pressure in natural forests was started in the state of West Bengal in 1972.
Local villagers formed committees and protected public forests in return for
free usufruct of all NTFP, first preference for employment and a promise of
25% of the net cash benefits from final felling of poles. Initial success led
to a gradual spread, now over 1,700 Fotest Protection Committees (FPC) cover
237,000 ha of forests. The model proved effective in further improving the
relationship between forestry staff and local people and in increasing forest
regeneration and economic returns both to villagers and the government. The
key factors that motivated villagers are regular incomes and explicit benefit
sharing arrangements with identified user-groups, coupled with a cooperative
attitude from the forest officers. The supply of NTFP increased in protected
forests, which is particularly important, both as an income source and as a
way to bridge the gap until longer gestation products mature.
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1.24 GOI issued a circular in June 1990 supporting joint planning andmanagement of degraded government forests in all parta of India. Severalstates have subsequently passed government orders to allow such arrangements.The orders set out procedures for committee constitution, membership andresponsibilities as well as the benefits which are promised if duties andrestrictions are followed. Joint forest management, as a concept and a forestmanagement strategy, has been accepted and is being practiced in a risingnumber of states. Initial results from these efforts have shown an overallincrease in the level of forest protection and productivity. Where equitablebenefit sharing arrangements have been instituted a net increase in benefitshas been obtained for both the local users and the State Forest Departments.The JFM/FPC model has produced forest raw materials which are used to satisfylocal as well as urban/commercial demand. The increased canopy closure alsoprovides improved soil protection. The effectiveness of JFM in specificforests and villages is variable. It has been most promising in areas withhomogeneous populations, in particular in tribal villages. These resultsindicate that while JFM is not a panacea for institutional effectivenesseverywhere, it does result in a net improvement over current arrangements andshows strong promise for reversing degradation trends.
1.25 Andhra Pradesh has only recently started JFM although various types ofschemes have been tried earlier to involve local populations in forestdevelopment. Several non-government organizations (NGOs) in the State havebeen involved in social forestry and watershed development but cooperationbetween them and the FD has so far been limited. GOAP issued their JFM order(which is being amended to better reflect the views of other organizationsconcerned) in August 1992 and has since held workshops with NGOs and othergovernment departments about how to collaborate and introduce the model in themost effective way.
1.26 Erivate Sector Involvement. Farm forestry is well established nowparticularly in the eastern, coastal parts of AP. Market forces appear tohave been a more important determining factor for expansion of farm forestrythan subsidized or free seedlings. Justification for continuing thesubsidization of seedlings is weak. The success of farm forestry in the longrun depends on the quality of the seedlings and good technology. Seedlingsubsidies have inhibited the development of private nurseries and have been aserious impedimant to quality planting materials as the focus has been onmeeting high distribution targets at minimum costs. Abolishing subsidieswould remove the onus on government to provide all planting materials needed,thereby releasing forest officers from a task which could be done by privatenurseries. Exceptions to this principle are justified in poorer than averageregions and where seedlings are furnished to the weakest groups of society(scheduled casts and tribals).
1.27 Although FD is now willing to concede a larger sectoral role also to theprivate commercial sector, the forest industries have -- since the change inIndia's Forest Policy in 1988 -- been effectively excluded from obtaining woodraw material from government forests, and they have also not been permitted toreafforest degraded or denuded forest land, controlled by FD, for thispurpose. This has left the industries with farm forestry as their mainsupplier of wood. While the industries, in many ways, support farm forestryon which they depend, they are unhappy with the policy because sourcing fromthousands of small producers is more complex and costly than procuring woodfrom large supply sources. The industries would prefer to lease large,contiguous tracts of land from the government. Since there are vast areas of
degraded forests and FD cannot afford to bring them all back into production
in the short-term, development with the involvement of the private sector
would be a solution. However, as of now the Forest Policy does not permit the
leasing of forest lands largely because the government is worried about losing
control of the land and a weakening of the industries' support to farm
forestry. In view of the nation's rising demand for wood-based products, on
the one hand, and the severe shortfall of wood raw materials, coupled with a
sharp increase in imports of such raw materials, on the other, a dialogue
between government and the indLatries has recently been initiated how to
overcome this issue. The problem is particularly significant for AP where a
sizeable part (13%) of India's pulp and paper industries are located. There
is a growing awareneas on both sides that, despite the complexity of the
issue, the modalities that would allow the private sector to assist in the
rehabilitation of degraded forest lands deserve review.
1.28 Eutur& Strategx. Building on the successful experience in other states
the forest strategy in Andhra Pradesh should focus on protection through JFM
and on improving productivity of plantations. Unless protection of forest
areas is firmly in place, degradation is likely to continue unabated despite
improvements in alternative energy supply. The existing state forests do not
have the capacity to meet the demand for forest products on a sustainable
basis. This problem extends to the energy strategy which could aim as a first
step to substitute purchased fuelwood with modern energy sources. Improvement
in productivity of forest plantations will both lead to higher production and
increase the incentives for private planting. Since unauthorized extraction
presently provides an important income source for forest fringe dwellers they
need to be made target of employment and income generation schemes if the
protection strategy is to be effective. There is no simple solution to the
problem of overgrazing. However, progress could be made through development
of high quality fodder resources and management of grazing areas which are
incorporated in the project.
Legasng frQi Past Bank WLndaiW
1.29 The Bank has supported ten projects in the field of forestry and
resource conservation in India with lending in the amount of approximately
US$ 500 million equivalent. It has assessed the experiences gained through
project supervision, project completion reports and sector reviews (Bank-wide,
regional as well as India specific). In the past, forestry projects in India
supported mainly social forestry and watershed activities which have had mixed
success. The involvement of local people in these projects was generally
inadequate. Many of the projects encountered implementation problems causing
delay in disbursement and completion due to slow project mobilization,
institutional weaknesses and insufficient local funding. The major lesson from
the early projects was that the programs were inadequate in scope to address
the complex issues affecting forests. Other important lessons include a need
for: improved seed and extension services; revitalization of forestry
research, particularly applied research at State level; more emphasis on the
planning, environmental and management dimensions of plantations and existing
natural forests; solutions to deal with the problems of common property rights
through a better local participatoxy process; an-I inter-agency coordination in
the execution of the various project components. The above lessons have been
taken into account in the design of the proposed project.
1.30 Recently two statewide forestry projects were approved by the Board
where forestry investments are linked to reforms of the forestry institutions
and policies: The Maharashtra Forestry Project (Cr. 2328-IN) for an amount of
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SDR 88.9 million and the West Bengal Forestry Project (Cr. 2341-IN) for SDR24.4 million. The proposed operation would build on the sans concept whileadapting it to the particular situation in Andhra Pradesh. It would also takeinto account the findings of the recent Forest Sector Review (Report No.10965-IN) which indicate that main strategic focus for forestry development inthe next decade will be to improve forest protection and managemnut. Thesector review shows that there are significant opportunities in India toenhance people's participation in forest managemsnt, introduce technologieswhich improve productivity and permit better land use, redefine the role ofgovernment and revise the restrictive regulatory and pricing policies to pavethe way for private and public investments in the forestry sector.
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II. THE PROJECT
Canntr Annal naStratgy. Ratiannia. for Bank~Twl'mntadO41
2.1 The Sank's current strategy to support forestry in India as discussed inthe Bank's Country Assistance Strategy Paper of December, 1992, is two-pronged- (i) initiating concentrated efforts in selected states, as in WestBengal and Maharashtra (para 1.27), to address forestry issues in acomprehensive manner with the participation of all relevant public and private"actors in the sector, and to integrate forestry more closely withagriculture and livestock; and (ii) supporting a program to strengthen thecapacity of the center and state technical and educational institutions toprovide research, education, training and resources monitoring services forstate initiatives, as in the recently negotiated Forestry Research, Educationand Extension Project. The proposed project fits well within that frameworkand with the objectives of the Bank's approach to forestry lending in the AsiaRegion which emphasizes an ongoing policy dialogue with our borrowersconcerning key forestry issues coupled with major investment in the entireforestry sector, and it is in line with the Sank's overall policy for thissector. Because of its support to Indian forestry over the past 15 years theBank is in a unique position to undertake the necessary sector dialogue withthe national and state governments to make the opportunities mentioned inpara. 1.27 materialize. The state-by-state approach parallels currentstrategy for statewide agricultural and irrigation development projects. Theproject follows India's forest policy (para. 1.4) and addresses forestryissues in Andhra Pradesh including: (a) protection and afforestation ofdegraded lands; (b) clear implementation and benefit sharing arrangements forjoint forest management between fringe forest dwellers, including tribals, andFD5 (c) improved forest technologies and extension; (d) streamlining andstrengthening the forest administration; and (e) revised policies on selectedtopics. The proposed project was identified in January 1992, and itsobjectives and design are based on a January 1993 Final Project PreparationReport, and an appraisal mission in April 1993.
PrQnCdet- Ara&
2.2 The project would cover the entire state of Andhra Pradesh. Thepopulation of the state is 66 million of which 12% belong to scheduled castesand 5% to scheduled tribes (1981 Census). Most of the tribal communities aresettled agriculturalists with about 12% being shifting cultivators. About 71%of the total population live in rural areas, the literacy rate is 45% and theper capita income Rs. 3,364 (1989/90). The average agriculture land holdingin the state is about 1.7 ha. The state's main agro-climatic zones and forestresources were discussed in paras. 1.8-10, and more details are available inAnnex 1 of the Implementation Volume.
Oblectiv and St-ratg-
2.3 The main objectives of this project are to increase forest productivityand quality, protect the environment, alleviate rural poverty andstrengthen/streamline sector policies to be consistent with these objectives.Thls would be achieved by: (i) introducing local participation in protectionand management of public forests (GOAP has issued benefit sharing regulationsand Lmplem.ntation guidelines for joint forest management); (il) increasingproductlvity of designated forest lands and other marginal lands: (LLL)maintaining and improving biodiversitys (lv) increasing private participation
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in sector development; and (v) improving public forest management anddevelopment. Through these activities the project would also increase thesubsistence and incomes of fringe forest populations many of whom are tribalsor belong to weaker sections of the society.
Tha B.form Pr6gram
2.4 Selected Sector reforms would provide the operational frmework for theproject. A Policy Statement including a Policy Reform Program for theforestry sector, agreed with IDA, has recently been issued as a GovernmentOrder by GOAP which has confirmed its commitment to carry out the reformprogram (Annex 1). The key sector issues to be addressed by the proposedreforms can be divided into three categories that are policy-oriented,technical and institutional in nature.
a) £nolici±. A key priority for the project is to develop sustainablemanagement systems that foster participation and benefit sharing byindividuals and village comiunities, particularly in forest areasthat support tribal groups. Important policies and regulationsconstraining the participation of the private sector such as land andtree usufruct/ownership and pricing also need to be rationalized.
b) Tenhnnala: The forest administrations' technical capability must beincreased and improvements made to planting materials, nurserypractices and tree planting practices. Improvements are also neededin the planning process and management strategies for plantations andnatural forests, including the monitoring of the forest estate.
c) InRtitut{onal: The forest administration needs to be restructured tobetter suit its new roles including the JFM program, staff skillsupgraded and the policy analysis capability improved. Many servicesand activities currently undertaken by the FD can be shared with orcarried out by other institutions such as village user groups,panchayats, NGOs, other Government Departments and the privatesector. Existing research, training and extension activities needmodification to provide more specialization and to be more responsiveto the varied demands on the sector.
2.5 Some of the above changes can be made quickly and independently of oneanother, others require detailed planning and evaluation of alternativearrangements and resolution of competing political priorities. Therefore,reforms as well as investment activities have been phased. A PolicyStatement including a Policy Reform Program for the forestry sector, agreedwith IDA, has recently been issued as a Government Order by GOAP which hasconfirmed its conditment to carry out the reform program. Projectconditionalities related to the proposed reforms are indicated in the lastcolumn of the reform matrix and are discussed under the concerned sections inChapter III.
Proje6t TnYestnmnt Cgompn9=tR
2.6 The main investment components of the project would be: £crestinanacgœsn; aRnoial antioC programs in areas of particular concern (plantpropagation & research, training, joint management, biodiversity conservation,fodder development, tribal development); and servien. s=rt for the VD andthe FDC.
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2.7 Est ManagemanL- This component (US$ 47.6 million: 56.6% of base
costs) would support forest regeneration and rehabilitation development on
354,600 ha. Project investments would follow 12 agreed forestry treatment
practices outlined in Annex 11 of the Implementation Volume. These treatment
practices reflect the wide range of agro-ecological conditions and biotic
pressure in the state, and include soil and moisture conservation measures.
At negotiAtions an nna wa t seedlings used for the project
shall be suitably culled in existing nurseries in the project area.
(Technical procedures for culling are presented in Attachment 2 to Annex 3 of
the Project Implementation Volume.) The treatment practices fall into three
broad categories:
a) Part4n4patoly Rehab4l4tntIon f &Man - This program (US$ 18.5
million; 22.1% of base costs) covers 173,100 ha constituting 49% of the
land to be developed under the project. These areas would involve
development of degraded forest lands under joint management arrangements
between fringe forest villagers and FD. 152,100 ha of the target area
concerns regeneration through protection of degraded areas with viable
rootstock. Enrichment plantings would be undertaken in severely
degraded pockets within these areas. The balance of the area, 21,000 ha
covers treatment of larger severely degraded forest areas (<20% canopy
density). These areas would be brought back into production under
multi-tier reforestation (a mixture of trees, shrubs and grasses) and
separate fodder plots would also be developed in some of the areas. At
ngotiatignA an an urace was tined that GOAP shall carry out the
field investments in each location under the JFM component of the
project in accordance with a microplan for JFM between the villagers in
that location and FD; each such plan to be prepared in accordance with a
methodology agreed with IDA (Annex 3, paras 24-31, and Annex 11, para 62
of Project Implementation Volume.)
b) P!rduction Forgatry en Forest Lands - This program (US$ 20.8 million;
24.6% of base costs) covers 104,500 ha constituting 29% of the planned
development. 59,100 ha of the target area concerns regeneration of
bamboo bearing forests and 30,400 ha new plantations on heavily degraded
forest reserve lands away from the forest fringes (7,350 ha teak and
natural associates and 5,550 ha mixed high-value species, as well as
17,500 ha high-yield species). The works concerning high-yield species
will be carried out by the Forest Development Corporation. The
component also includes a provision for silvicultural operations by FD
to rehabilitate 15,000 ha of viable teak plantations. This sub-
component is contingent on GOAP establishing a mechanism to retain part
of the income from these silvicultural and harvesting operations to fund
reforestation and maintenance of plantations and natural fcrests.
c) Forestry Development on Lands outside Designated Forest - This program
(USM 8.3 million; 9.9% of base costs) covers about 77,000 ha
constituting 22% of the area. About 34,600 ha of this would be farm
forestry directed towards small-holders and would include promotion of
boundary plantings and agro-forestry systems on private lands. 12,375 ha
of community lands would be covered under a variant of the joint
forestry approach and 30,000 ha of private wastelands would be developed
in clusters using a group approach.
2.8 S=nlal Ant4nan rggtama. This component (US$ 27.1 million; 32.3% of base
costs) includes several key activities that have been identified for
strengthening under the project: research and plant propagation, joint forest
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management, biodiversity conservation, fodder development, and a tribaldevelopment plan.
a) Plant- Prnspgation a *d Tearch. This program (US$ 9.0 million; 10.7% ofbase costs) would address deficiencies in seed sources & handling andplant propagation, aiming at improvements in adaptive forestry researchand silviculture management (complementary to the Bank supportedForestry Research, Education and Extension Project - see para. 3.6).Infrastructure and technological improvements would be provided foroffices and research laboratories, seed processing and nurseries.Research and seed handling equipment, vehicles and a library as well asa speciflc operational budget for research work are included. Researchstaff strengthening is also envisaged, backed up by training andtechnical assistance from local and international sources. Atnegotiatinn asan es warn obtned that (i) GOAP shall appointconsultants, acceptable to IDA and in accordance with TOR agreed withIDA, before June 30, 1994, to assist in the design of the researchprogram and in plant propagation (seed handling, nursery improvement,etc.); and (ii) GOAP shall discuss with IDA not later than October 31,1994, the resulting programs, including the implementation timetable,and shall, taking into account IDA's comments, promptly thereafterimplement such programs.
b) Joint Fgrest Manag=gMet. This program (US$ 5.2 million; 6.2% of basecosts) includes a package of measures for transforming the problem ofbiotic interference into cooperative government-people partnerships.Extensive training for JFM leaders and FD staff in participatory ruralappraisal including gender issues, micro-planning and group organizationwould be supported. Study tours would be conducted both within andbetween states to learn from ongoing efforts. Various research needs areaccommodated through pilot projects, including NTFP processing andmethods of reducing fuelwood consumption. Better access to water can bean important incentive for mobilizing community efforts. Hence suchfacilities have been provided in the project as well as small dams forsoil conservation and groundwater recharge where necessary. Support isincluded for NGOs to assist the FD in participatory managementactivities (training/workshops, technical support, institutionaldevelopment, information/networking, and transport support). A StateLevel Forestry Committee would guide and oversee implementation of theactivities (para. 3.13).
c) iondiyeralty Conservation. This program (USS 6.5 million; 7.7% of basecosts) would provide assistance to the state's nature conservationprogram. Project funding includes development of an IntegratedProtected Areas System, studies, boundary demarcation, fire protection,upgrading of roads, habitat improvement, captive breeding programs andeco-development in and around selected parks & sanctuaries. The wildlifewing would be supplied with additional buildings, equipment andvehicles, staff would be trained and support would be provided forincremental operating expenses. n asance was obtained atfi*jjoat 4 ons that GOAP shall complete, in consultation with IDA, notlater than September 30, 1994, the study for the development of theintegrated protected areas network.
d) Clahnrative Fodder Prga. This component (USS 0.4 million; 0.5% ofbase costs) would support adaptive fodder research and developmentprograms in collaboration between FD and the Department of Animal
- 15 -
Husbandry and other relevant organizations (para. 3.15). Funding would
be provided for staff, vehicles and equipment as well as incrementaloperating costs for forage research. Seed production/import,studies/action research, training, study tours and technical assistance
are also included. In addition, fodder development (grasses/legumes and
fodder trees) is included in the treatments for participatoryrehabilitation of degraded forests.
e) 7 sbl DAvfOevala-t Plan. This pilot-type program (US$ 6.0 million; 7.2%
of base costs) would provide funds for activities, which are additionalto the JFM program, in order (a) to ensure and enhance positive effectsof the project activities on tribal groups and (b) to complementexisting government programs that are aimed at improving development intribal areas (Arnax 21. These include soil and moisture conservation,water harvesting devices, improved agriculture production, horticulture,processing of food and NTFP, and other eco-development activities. Theplan would also support nutrition, education and management training fortribal groups. The success of this component would hinge on coordinationbetween concerned departments (paras. 3.16-17). At wMtIntions an
aamur.Ane Nan ^btained that GOAP shall carry out the Tribal Development
Plan in a manner and timetable agreed with IDA.
2.9 Sarviae SuRW=pp. This program (US$ 9.4 million; 11.1% of base costs)would provide various elements of support for the FD as well as a small
support component for the FDC. The FD sub-component covers about 600 staffquarters, 300 divisional and range offices, vehicles, equipment, training andtechnical assistance, and incremental operating costs of the ED which have not
been included under other components. Among other things this would provide
for the institutional development study, work & labor studies, a forest
inventory, improve the MIS system and add GIS capability, training(particularly to lower level field staff), and publication of envirosmentalguidelines and other materials used to educate villagers, farmers and thepublic about forestry programs. The FDC sub-component includes storagegodowns, labor tenements, wells and pumpsets, equipment, vehicles and vehiclerunning costs required to establish the high yield plantations envisaged under
the project.
Prajiat Costs and Finaneing
2.10 Total project cost is estimated at US$ 89.1 million, including physical
and price contingencies, of which US$ 3.1 million is local taxes. The direct
and indirect foreign exchange is estimated at US$ 6.9 million, or 7.8% of
project costs. Base costs have been calculated using unit prices prevailingin April 1993 and is adjusted for inflation expected prior to project start-up. Physical contingencies of 5% have been allowed for plantation works, and
10% for civil works, goods (except vehicles) and tncremental operating costs.
Price contingencies of 2.8% per year were added for the foreign exchangecomponent. For local costs, price contingencies were added at 6.5% for 1994
and for the following years at 6%, 5.5%, 5%, 5%, and 5%, respectively. Asummary of project costs is provided below. More details on project costs by
components and summary accounts are in Annex ..
2.11 Ejnjwanjc. The proposed IDA Credit of US$ 77.4 million equivalent wouldfinance 90% of total project costs, net of taxes, or 87% of total costs
including taxes. The Credit would finance 100% of the direct and indirectforeign exchange costs and 89% of local costs, net of taxes. The Credit wouldbe to the Government of India, which would carry the foreign exchange risk.
- 16 -
The Credit would be on standard terms with 35 years' maturity. Duri"±nnqtiAtins co Man ^btAin.d_tUt GOAP would implement a systemsatisfactory to IDA for channelling the funds required for the project, to theentities involved in carrying out the project. An understanding was reachedthat GOl would release about three months anticipated project expenditures inadvance to GOAP, and GOAP would promptly make available to implementingagencies all funds needed for project expenditures.
1 Including taxes and duties equivalent to US$ 3.1 aillion.
2.12 *1atln a * uselai. The project supports plantation worksvalued at US$ 53.4 million and civil works valued at USS 14.9 million.Plantation works would not be suitable for competitive bidding because of theneed for commwnity participation. Furthenmore, the works would be taken up insmall areas all over the state over the six year project period. Civil workscomprise roads, buildings, land development and survey/demarkation works. Asthe works are small, scattered and spread throughout the project period theywould not attract foreign bidders. Works would be procured following LocalCompetitive Bidding (LCB) or force account procedures as follows:
(a) UC would include civil works for upgrading/constructing rural roads,office/residential buildings, seed facilities, laboratories, etc. andplantation works for soil preparation for FDC plantations. The workswould be grouped into convenient packages for bidding and necessaryland would be acquired prior to bidding. All works contracts would belet using standard LCB documents agreed with IDA and followingprocedures, satisfactory to the Association. Foreign contractors wouldnot be precluded from participation.
- 17 -
(b) Yjc AJ:ounI would include most plantation works in aggregate valued
at US$ 49.0 million, and all small civil works located in remote areas
valued at US$ 10,000 equivalent or less, up to an aggregate amount not
exceeding USS 8.8 million and would be undertaken by the line agency.
These civil works are not suitable for competitive bidding due to the
small amounts and remoteness of location.
2.13 Ac£auln. nls.rnt antd 7ieR. The Froject would require vehicles
valued at US$ 1.0 million. The immediate requirement of vehicles will be
procured following local shopping procedures (using available DGS&D rate
contracts) in packages below US$ 100,000 equivalent each, up to an aggregate
total of US$ 0.3 million. The balance requirements will be procured following
International Competitive Bidding (ICB) procedures as per Bank guidelines.
Laboratory equipment, communication equipment and computers aggregating
US$ 1.2 million will be procured following ICS procedures. Domesticated
clonal seedlings valued at US$ 3.7 million for the FDC planting program would
be procured following LCB procedures acceptable to IDA. Other goods,
equipment and materials, required in small lots by different implementing
agencies aggregating US$ 3.5 million, will be procured following LCB
procedures in contracts valued below USS 200,000 each. Satellite imagery and
aerial photography (US$ 150,000) will be procured directly from the Government
of India agencies, namely, National Remote Sensing Agency or the Geological
Survey of India. Books and periodicals (USS 0.4 million) will also be
obtained under direct contracting procedures. Small items of laboratory and
other equipment, computer software, etc. (US$ 1.4 million) and seeds would be
procured under local/international shopping procedures, acceptable to IDA, in
packages valued below US$ 20,000 equivalent each. Construction materials for
force account works valued in aggregate at US$ 1.9 million would be procured
following local shopping procedures acceptable to IDA.
2.14 The project elements, their estimated costs and proposed methods of
procuremnet are summarized below:
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(USM million equivalent)
---- Procurement Method ---- TotalProject alement LC L. O ner Cost
1. Plantation Works 4.4 49.0 53.4(4.0) (44.1) (48.1)
2. CivIl Works2.1 Buildings 4.2 1.9 6.1.
(3.5) (1.6) (5.1)
2.2 Other Works 6.9 6.9( .9) (5.9)
3. Construction Materials 1.9 1.9for Force Account (1.5)(1.5)
4 Goods4.1 Laboratory, Commsunication A 1.2 0.4 0.1 1.7
Computer Equipment (1.2) (0.3) (0.1) (1.6)
4.2 Satellite Imagery and 0.1 0 15Areal photography (0.32) (0.-2)
4.3 hooks and Periodicals 0.4 0.4(0.3) (0.3)
4.4 Clonal Seedlings and Seeds 3.7 0.05 3.75(2.65) (0.04) (2.89)
4.5 Otner squipment 3.1 1.3 4.4(2.4) (1.0) (3.4)
Vehicles 0.7 0.3 1.0(0.7) (0.2) (0.9)
6. Consultancy and Training4.1 Overseas consultancy 0.7 0.7
(0.7) (0.7)
6.2 Local Con-ultancy 0.9 0.9(0.9) (0.9)
5.3 Training, Semina- a 4.1 4.1workshops (4.1) (4.1)
total 1.9 15.6 71.3 *9.0(1.9) (13.0) (62.4) (77.3)
note: Figures In parenthesis are the respective amounts rinanoe4 by the IDA Credit.other" methods inaclude force account and local and lnternatlonal shopping.
2.15 The Bank's standard bidding documents would be used for allprocurement under ICB/LCB. For comparing foreign and local bids for goods inICB, the qualifying domestic suppliers would be allowed a margin of preferenceequivalent to the existing rate of customs duty applicable, or 15% of the CIFprice whichever is lower.
2.16 a= Arvingn and Yraining. Studies and other technicalservices, both international and local, estimated to cost US$ 1.6 million(international US$ 0.7 million) would be contracted on terms and conditions inaccordance with the Dank's Guidelines for Use of Consultants (August 1981).Training services, totalling about US$ 4.1 million, would be purchased on thebasis of relevance and quality of the programs offered by private orgovernment institutions, in consultation with the Bank.
2.17 Raviow al Qnntgacts. All civil works, vehicles and goods valued atUS$ 200,000 and above, and soil preparation contracts and all consultant'scontracts valued at US$ 100,000 and above, as well as the first five goodscontracts and the first five works contracts, would be subject to prior IDAreview. All other contracts would be subject to random post review in thefield by visiting missions. Although this will result in only about 14% of
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project procurement being subject to prior review, the nature of the project,which consists mostly of plantation works is such that a higher level of IDAreview would not have a significant impact on procurement quality.
2.18 The proceeds of the Credit would be disbursed against:
a) 90% of expenditures on plantation costs;b) 85% of expenditures on civil works;c) 100% of foreign expenditures, 100% of local ex-factory costs or 80%
of other local costs of equipment, vehicles, construction materials,seeds, fertilizer and field supplies:
d) 100% of expenditures on consultants' services, training, NGos'services, and studies; and
e) 50% of expenditures on salaries and allowances for incremental staff;incremental operation and maintenance of offices and vehicles,laboratory services, and report preparation and publication, on adeclining basis as follows: 60% until March 31, 1996, 50% until March31, 1998 and 40% thereafter.
2.19 Disbursements against civil works and equipment, seeds, fertilizer,construction materials and supplies' contracts exceeding US$ 200,000equivalent would be fully documented, as would disbursements for all vehicles,consultants, and overseas training/conferences/study tours. Disbursements forother expenditures would be made against Statements of gxpenditures (SOEs).
Supporting documentation for SOEs would be retained by GOl and GOAP and bemade available to Association staff during supervision. Plantation costseligible for reimbursement include: (i) cost of nurseries, land preparation
including labor inputs for tree planting, maintenance and protection; and (ii)
direct supervision cost related thereto not exceeding 7% of the total costs
under (i). The actual supervision costs have been estimated at a higherlevel. Expenditures incurred after March 31, 1993 to the date of Creditsigning for selected project activities would be eligible for retroactivefinancing up to a maximum of SDR 1.44 million (US$ 2.0 million equivalent).They include: training, start-up of JFM activities including NG0 assistance(limited field investments in max. 20 VSS), upgrading of nurseries, forest
inventory/resource assessment and MIS/GIS, the institutional developmentstudy, the Integrated Protected Areas study and seed collection for the 1994planting season. All contracts and items to be financed retroactively will
have been procared in a manner consistent with above arrangements and
acceptable to the Association.
2.20 To facilitate project implementation and to reduce the volume ofwithdrawc.: applications, a Special Account in US dollars would be establishedin the Reserve Bank of India with an authorized allocation of up to US$ 4.0million,the estimated four monthly average disbursement. A disbursementschedule is in annemx_{. Availability of advances for project expenditures(para. 2.11) from the Special Account would tend to speed up otherwise slowdisbursements in forestry projects. The Project Completion date is March 31,
2000 and the Credit Closing date is September 30, 2000.
ProjeCt Accounts and Audits
2.21 Project expenditures incurred by FD, the executing agency of theproject, and the other participating departments and agencies, which wouldeach establish separate accounts for the project, would be subject to normal
- 20 -
GOI and State accounting procedures and controls. Project accounts would
suwmarize project oxpenditures under categories to be agreed with IDA showing:
(a) actual versus planned expenditures for each month; (b) actual versus
planned expenditures accumulated to date; and (c) how financed for the quarter
and accumulated, by IDA and by GOAP. The summaries which would provide
information for the SOEs would form part of the project accounts, including
those expenditures for which reimbursement would be claimed with full
documentation. The project accounts would be supported by a listing with the
withdrawal applications submitted for the period. The Controller and Auditor
General and his Accountant Generals at the State level would be considered
acceptable auditors, and the consolidated audited project accounts including
the Special Account and SOEs, along with the auditor's report including a
separate statement on SOEs, comprising project expenditures of all
participating entities, would be submitted annually by FD, to be received by
IDA no later than nine months after the close of each fiscal year. The Audit
Report on SOBs would specifically comment on their usage and the controls
established to ensure their accuracy. The Special Account which would be
maintained by the Department of Economic Affairs (DEA) would show all
withdrawal requests disbursed, amounts advanced and reimbursed by IDA, and
balance at the end of each accounting period: auditor's reports would reflect
the certification of the balance held by the Reserve Bank of India. VD would
prepare a project report on a bi-annual basis In a format to be agreed with
IDA, summarizing project progress in physical terms linked to financial terms.
The financial terms would be based on the bi-annual unaudited project
accounts.
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III. PROJECT IMPLSMENTATlON
Oaani2at inn ai aaAQ
3.1 The project would be under the overall control of the Secretary of theEnergy and Forests Department (EFD) of GOAP. A small Project Monitoring Unit(PMU) would be established in the GOAl secretariat for VD to assist with thecoordination between VD as the nodal executing department for the project andthe other participating government departments/agencies, and to ensure thatthese departments/agencies receive adequate funds for the execution of theproject (para 2.11). The Principal Chief Conservator of Forests (VD) would bethe Project Coordinator and field level implementation would be channelledthrough the FD and the FDC (under the control of its Vice Chairman andManaging Director). Implementation of the Tribal Development Plan would beunder the control of the Secretary Social Welfare. The collaborative foddercomponent would be implemented by the FD in collaboration with DAR under thecontrol of the Director of Animal Husbandry. Since the project constitutesthe major part of the development work that will be undertaken by the FD overthe next six years, it is neither necessary nor desirable to create separateproject management structures. Implementation of the proposed organizationalreview would be managed by the office of the Secretary of Forests 6Environment. Each of the other proposed project components to be implementedthrough the FD would be managed by a designated Chief Conservator orConservator of Forests. Implementation of all project components would becarried out on the basis of annual work plans including targets, allocation ofstaff and financial resources, and an assessment of previous performance. Thecomponentwise documents would be consolidated into a projectwide draft annualwork plan by mid-November for (i) submission to the Forest Secretary; and (ii)submission by December 1, to IDA and the Ministry of Finance. The format ofthe annual work plan would be discussed at project negotiations and finalizedduring the project launch workshop.
3.2 tl Rleform. As discussed earlier many aspects of the forestadministration in Andhra Pradesh require review and streamlining (paras. 1.14-17 and 2.4). The purpose is to make forest development more effective andproductive, more responsive to peoples' needs and to meet the goals of therevised forest policy. A study of the FD service organization is proposed toaddress the identified areas of concern and ensure optimal use of manpower,particularly at the field level. Changes are also required to increasecoordination and support field activities better. However, the projectactivities would not be on hold pending such reorganization but would startimmediately after project effectiveness.
3.3 Because of the complicated and sensitive nature of institutionalreforms, the project proposes that the reorganization be undertaken in steps.The first step would be to carry out a study of organizational options anddevelop an action plan, and the second step to carry it out. The plan shouldalso identify potential actions in the areas of career development andspecialties within the forest administration for such tasks as research,wildlife management, and monitoring and evaluation (Annex 6 of theImplementation Volume). A .nndition of .ffentivenams vnnld be thatconsultants, acceptable to IDA, shall have been appointed for preparation ofan institutional development study to assist in the restructuring of theforest administration. At nntin. nre-no wa ohtalnad that GOAPshall, not later than March 31, 1995, complete and di8cuss with IDA theinstitutional development study and shall thereafter implement the results of
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such study in accordance with a time-bound action plan agreed with IDA. Theresulting organizational changes would be expected to be incorporated in thenext triennial review of Indian Forest Service staff.
3.4 ztan±ng. The project has many innovative features, involving theintroduction of new technologies, management approaches or modern methods notapplied earlier in Andhra Pradesh. Successful implementation of projectcomponents with such new features necessitates training of staff in thecorresponding skills. Therefore, arrangements for development of staff skillsform an integral part of most project components. Arrangements for trainingrange from workshops and study tours to formal non-degree coursework and, insome instances, degree coursework. The aggregate training activities underthe project will in one way or another involve the majority of FD staff at alllevels, as well as representatives of other government agencies, NGOs andvillage samithies. Part of the training program is devoted to eliminating thebacklog in basic forestry training lower echelon forestry staff (800 nos.).
3.5 Training inputs related to the various project components are detailedin Annex 5 of the Implementation Volume. Total expenditures for training(excluding technical assistance for training) amounts to US$ 3.8 million (4.5%of project base cost). This breaks down roughly into 20% for trainingmaterials and to improve teaching facilities, 11% for training to bespecified in the Institutional Development Study (para. 3.3) and 69% forvarious training courses, workshops, etc. Of the latter about 40% is fortraining in joint forest management, 20% for training in the context of thetribal development plan and 40% for training under other project components.Pivotal to the success of this training program would be the early appointmentof a Training Coordinator (draft TOR in Annex 5, Attachment 2, of ProjectImplementation Volume). An assuranl vas nbtalned at nagtiations that (i)GOAP shall select the staff for overseas training under the project inconsultation with IDA, and (ii) upon completion of such training, post suchstaff for at least three years in areas in which training was received.
3.6 R-starth. The project would strengthen adaptive forestry research. Theprograms to be carried out include large-scale verification trials anddemonstrations of technologies developed by the Indian Council for ForestResearch and Education and in other countries. The FD has invested a largeamount of money on improvement of research facilities and developed four majorcenters which are strategically situated. Attempts are being made to organizethe research function so that staff can develop a level of continuity -something which is badly needed. Contracted post-graduate Research Assistantsare employed for specific tasks which is a valuable step forward. At
tiations aesi a was alan obtaind_tha research staff remain in post
for at least five years to develop and contribute their specialized expertise.An autonomous research institute which has been suggested by the FD would alsoprovide the planning flexibility needed for a successful research program.The work should be carried out by staff operating in teams of different sizes,sometimes one person and sometimes many each with their own special inputs.The research program needs review - it lacks the focus required for tacklingthe immediate problems that face the sector. An experienced internationalresearch consultant will help replan the program and a priority species listswill be drawn up. Two research "stream" would be developed, one for woodycrops and the other for fruit species.
3.7 Planning and Management. The project would support an overall forest
inventory and the development of planning tools such as computerized MIS andGIS systems. This would improve the base-line information about the quantity
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and quality of the State's forest resourcas and address the FD's currentlimited capacity for planning, implementing and monitoring large-scaleforestry investment programs. It would also relieve staff of tediousoecord-keeping and enable them to devote their time to field activities.A dnnditlnn of affe_%ivAren would ha that consultants, acceptable to IDA,shall have been appointed for developing the MIS and GIS information systems.At n yod tha GOAP shall, in consultation withIDA, (a) not later than December 31, 1994, complete the overview forestinventory, and (b) not later than June 30, 1995, (i) complete and operate theMIS system, and (ii) install the GIS system. A work study would be done earlyon in the project (after start-up of the institutional development study) toidentify ways to improve labor productivity, including a review of practicesand norms for setting piece rates.
3.8 All forestry operations to be supported under the project should beincluded in the working plans which govern activities in managing the forestestate. A number of these plans have elapsed and the FD is updating andextending them. GOAP should take necessary steps to obtain operationalguidelines from GO0 for the controlled introduction on exotic species. GOAPshould also prepare guidelines for limited felling to facilitate replanting ofdegraded natural forest areas where that is the only viable silviculturaltreatment. Such proposals need to be considered by GOl in a timely manner soas not to hold up project implementation. Furthermore, traditional forestworking plans need to be redesigned to conform to changing and oftenconflicting demands and include local participation. A process would also beinitiated whereby the formulation of working plans would be computerized,integrated with the GIS and MIS systems, and synchronized with short-term andlonger-term financial planning. This process is described in Annex 4 of theImplementation Volume. AG aOtiatlons an P o was nhtainod tha- CAWshall, in consultation with IDA, not later than December 31, 1995, complete,under principles agreed with IDA, the design of new-type working plans formanaging the forest estate, and shall thereafter initiate their implementation(Annex 4, paras 3.12-3.25, of the Project Implementation Volume).
3.9 rnF Plantationn. FDC would plant 21,000 hectares with fast-growingeucalyptus clones. The primary purposes are to increase industrial rawmaterial supplies and to demonstrate high-yield forestry in Andhra Pradesh andin India. FDC would in these plantations attain a per-hectare production ofwood two to three times higher than with its habitual planting stock. Thiswould result in a considerable reduction of the area needed for the sameproduction. The clonal planting stock would be purchased from privatecompanies which have (i) developed cloning technology to adequate levels, and(ii) which can offer an adequate number of unrelated clones in order tominimize the risks associated with too narrow a genetic base. The projectwould finance the first six years of this investment (17,500 ha). The FDCwould finance costs after the sixth year when it would have acquired thenecessary expertise and facilities for clonal propagation. At neogtiations an
assuranne was obtainAd that GOAP shall make available to FDC land of adequatesite quality and in blocks of suitable size for the implementation of thehigh-yield planting program under the project; such land to be selected inaccordance with criteria agreed with IDa {Annx 51.
3.10 RSodiver itSC C>n.eortion. The FD would establish a planning cell inthe office of the Chief Wildlife Warden to coordinate and guide implementationof this component. The planning cell would be headed by a Conservator andwould include a planning officer, an education officer and a monitoringofficer at the levels of Deputy/Additional Conservator. The wildlife wing
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would be strengthened to perform the new functions, such as eco-development,in addition to its current responsibilities for wildlife management. AA
nrAe was oainAd at nagttattons t-hat GOAP shall complete, not later
than December 31, 1994, in consultation with IDA, (i) the transfer of therequired forestry staff to the wildlife wing of FD and (ii) the staffing ofthe planning cell of the wildlife wing. Transfers include: Conservator 1,Deputy or Additional Conservator 4, Range Officer 18, Forester 52, ForestGuard 52 and Forest Watcher 93. The arrangements agreed for the forestrytreatments under JFM would apply equally to the protected areas component ofthe project, including formation of forest protection committees,coordination, training and NGO/ITDA involvement in such activities (seebelow).
3.11 Apnroach to Joint Forest MianaaemAt. FD staff would identify likelylocations for JFM programs in cooperation with local NGOs and ITDAs (in tribalareas). An initial participatory resource appraisal would be carried out withconcerned organizations to determine the willingness of villagers in aparticular location to participate in the program. This exercise would alsogive an idea of local forest product needs, the forest areas concerned,possible treatment options and the need for complementary developmentactivities in each location. The FD would conduct a pre-investment survey ofthe area noting existing vegetation including viable rootstocks and otherpertinent site conditions. After the survey the FD would provide technicaland economic guidance on a range of treatment options from which user groupswould choose. The treatments would be designed to foster multi-tier canopycover and multi-product outputs to meet the needs of diverse user groups.
3.12 The FD has not worked previously with communities in joint forestmanagement and there are many practical problems to resolve. Some importantaspects to be addressed in formation of village protection committees andmicro-planning are: (a) organizing groups in as small homogenous units aspossible taking account of traditional forest-use patterns and fair boundaryadjudication; (b) presenting genuine treatment alternatives advising committeemembers on their implications; (c) incorporating social control for protectionand harvesting; (d) ensuring that all members (eg. women, landless, tribals)are adequately heard and represented; (e) preparing transparent mechanisms fordistribution of produce and revenues from sales: and (f) arranging harvestingon an annual or biennial basis to help smooth the flow of income. The projectwould seek the assistance of NGOs to resolve these problems and to strengtheninformed participation of beneficiaries, particularly women and tribals, inJFM, as well as in community forestry (para 3.14). AReRn - are nhitaina-dat negotiattons that, for the purpose of assisting in carrying out theproject, GOAP shall select NGOs in accordance with procedures and criteriaagreed with IDA lAnnex 61; their support would be maintained throughout theproject.
3.13 Basic criteria for achieving effective JFM arrangements were statedabove, and further refinements would depend on experience gained duringproject implementation. The developmant would take place in a gradual mannerafter staff have been fully trained. It has been estimated that the build-upwould start with 110 villages in the first year, 300 in the second year and
400 annually thereafter. The actual uptake rate will be linked to the annualwork plans. GOAP has recently re-issued the Government Order on JFM, amending
benefit sharing arrangements for forest protection committees called VanaSamrakshana Samitis (VS$) to reflect suggestions by other GovernmentDepartments, NGOs and IDA (areas to be protected, proportion of final harvestto go to the people, special provisions in tribal areas, the responsibilities
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of FD staff as well as those of villagers, etc.[hnnaz SI), and issued fieldguidelines, acceptable to IDA, for implementation of JFN. GOAP has alsorecently established a formal State Level Forestry Committee (with membershipas described in para 3.17 [a]) for coordination of JIM activities.Appointment of NGOs to assist in project activities shall be subject to thecommittee's confirmation. at no tatinna tht (i)JFM benefit sharing arrangements, agreed between the villagers and FD, shallbe adhered to, and shall not be changed without prior approval of IDA, and(ii) joint accounts between the villagers and VD (signed by VSS and FDrepresentatives) would be used for JFM field investments.
3.14 _=reaah to Conununity and arm reatry. The FD would evolve amechanism for handover of existing conmunity forest plantations and theirmanagement by the communities. NGOs could be of great help in implementingsuch handover. Based on the experience gained from the handing over phase newcommunity afforestation works would be initiated only from the 3rd projectyear onward. NGOs have been implementing several programs that are very closeto the Group Farm Forestry concept envisaged in the project Initialimplementation of this activity would therefore be done with the assistance ofNGOs. By working closely with such NGOs the VD could gain requisiteexperience .,in the approach and begin their direct involvement from the 4thproject year onwards. The project also supports a limited program ofproduction of superior quality seedlings for sale to farmers. The program isbased on reaching about 360,000 households during the project period with onaverage 10-20 forest fruit plants (including tamarind) or 100 commercialforest or miscellaneous plants of superior materials to be planted aroundfield bunds, in small patches, etc.
3.15 Fadder. The project attempts to address excess grazing pressure throughregulating grazing and development of fodder plots in forest fringe areasunder the JFM program. Effective fodder development also needs research, seedmultiplication and extension (para. 2.8 d). The VD will take the leadresponsibility for a collaborative effort to provide this required support.Other partners include the Department of Animal Husbandry (DAH), the StateAgriculture University, the Central Research Institute for DrylandAgriculture, the Indo-Swiss Project Andhra Pradesh and other interestedorganizations. Basic seed multiplication would be undertaken by the DAR. Forproduction seed the program would rely primarily on contracts with privatefarmers. Letters of Understanding for project activities are being exchangedbeen between the FD, the DAH and the other partners for the collaborativeeffort. A three-year action plan would be prepared for IDA review at theproject start-up workshop. Details of the proposed implementationarrangements are available in Annex 8 of the Implementation Volume. The FDwould take an active role in the development of a fodder and grazing strategy,planned by GOAP with support from the Swiss Development Cooperation, todecrease the pressure on forests from over-grazing (see "naL.J_, ReformMatrix, item C6).
3.16 Linka tn Other Denartmnta. The project aims to increase coordinationbetween the FD and other government departments to improve forest development.This applies in particular to the activities of the Social Welfare Departmentand the Agriculture and Animal Husbandry Departments (as discussed above inthe fodder section). These links are currently weak and will be strengthenedunder the project. The Secretary Social Welfare and the Tribal DevelopmentCommissioner have been closely associated with developing guidelines forimplementation of JFM. The project also supports a separate TribalDevelopment Plan to be implemented through the Integrated Tribal Development
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Agencies (ITDA) (para 3.30). Agreement has been reached with the Departmentof Agriculture for cooperation in group farm forestry areas as well as forextension services to farm forestry producers in general.
3.17 To ensure that inter-departmental/NGO cooperation works smoothly at all
levels the following committees have already been constituted:
a) An inter-departmental Forestry Committee at State Level. It is
chaired by the Secretary Forests and includes the PCCF, concernedChief Conservators and Conservator (JFM); Secretaries of SocialWelfare, Finance and Rural Development; Commissioner Tribal Welfare,
Managing Director FDC, Managing Director GCC, Director Women audChild Development; and NGOs. The committee would meet quarterly at
the start of the project and later on a six-monthly basis.
b) District Level Foreatry Committees. They are chaired by the DistrictCollector, with concerned line departments, NGOs and VSSrepresentatives as members. These committees would meet quarterly,and deal with inter-departmental coordination for JFM areas, GO-NCOcooperation, NGO proposals for facilitation of JFM, as well as pilotprojects for JFM related activities in their areas of operation.
c) In ITDA areas (para 1.18) there will be separate sub-committees forJFM. They are chaired by the Project Officer ITDA and include theDivisional Forest Officer and other line departments, NGOs whereavailable, and VSS representatives. The sub-committee willfacilitate joint identification of areas for JFM, village levelconsultative planning through participatory resource assessment,micro-planning, creation of VSS, and activities under the project'sTribal Development Plan. It will also coordinate the flow ofresources from non-project sources (Tribal Sub-Plan) to JFM areas andhuman resource use (Village Liaison Workers, AgriculturalConsultants).
Prining an re
3.18 Forest products from the project would be marketed through the following
current arrangements: Produce from government forests would be harvested by
the FD or the FDC, and most would be auctioned in the producing areas. Farm
forestry produce would be sold as poles or fuelwood mainly to private timber
merchants, papermills or their agents. Most non-wood forest products would be
used by participating local villagers themselves or sold by them to the FD
(tendu leaves), tribal cooperatives (karanj, sal seeds, etc.) or private
traders. The scarcity of wood is acute in the State. Thus, there is little
need to carry out a sector wide market analysis although marketingconsiderations should be included in local micro-plans. With regard to NTFP
the situation is less clear (with the exception of beedi leaves). Fluctuations
in NTFP markets are pronounced and so are the associated changes in prices andprofitability. Therefore, any expansions in production of NTFP supported by
the project should take place in the context of a market analysis. Since a
large part of NTFP marketing is done by GCC, it has agreed to arrange and
support such market analysis. The TOR for examining markets for the mainNTFPs to be supported by the project and the modalities for implementation of
the study would be discussed with the Bank at negotiations.
3.19 Most gtednjig= in Andhra Pradesh are given to farmers free of charge.The free distribution of seedlings leads to several inefficiencies including a
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mismatch between the species and quantities demanded by interested farmers andthe supplies offered by the FD, a concentration on quantitative targets givinglittle importance to the quality of output, and wastage. All growers should becharged for seedlings, even if full cost recovery is not achieved. In additionto addressing the above problems this would also improve opportunities forprivate nurseries to compete with public ones. In recognition of theseproblems and the options how to resolve them, GOAP has recently, by GovernmentOrder, adopted a scheme in which the FD would concentrate exclusively onproduction, with seedlings being sold through tenders. This policy would takeimmediate effect in the coastal zone of the State. In the interior zone thepresent system would be gradually phased ait by the 4th project year(25%,50%,75%,100% cost charge for seedlings). The policy would also allow upto 15% of total production to be sold to members of scheduled castes andtribes at 20% of production costs. At negotiations assurasnos were obtainedfrom QOAP that (i) seedling distribution shall follow the above policy agreedwith IDA and (ii) GOAP shall adjust the seedling prices every year to coverthe full production costs, as agreed with IDA.
3.20 The current system for issuing transit passes for most forest productsentails high transaction costs in marketing some farm forestry produce(although aix popular species are exempted). The system may act as a
deterrent to future private tree plantations, and has put a large andincreasing administrative burden on divisional level forest officers. As notedin the reform matrix the FD should propose a limited negative list instead andsimplify the permit system by the mid-term review. The performance of therevised system would be monitored during project supervision.
Annual Work Programs: Monitoring and ReRiorting
3.21 Implementation of all project components would be carried out on thebasis of annual work programs (AWP) and annual budgets. Preparation of draftANPs and budgets would be timed to fit the cycle of budget submission to GOAPand GOI and to allow prior comments by IDA. The draft AWPs and budgets wouldbe prepared by project component managers, consolidated by FD, and a copy sentto IDA for comments not later than December 1. The AWP/budget system, detailsof which would be discussed at the project launch workshop, would becomputerized and would tie in with the (i) accounting system (para 2.21); (ii)the procurement arrangements (para 2.14); and (iii) the monitoring andreporting system (para 3.22). AWPs would also tie in with the new-typeworking plans once these have been taken into use (para 3.8). All above-mentioned steering systems would be supported by, and compatible with theproject MIS (para 3.7).
3.22 The responsibility for project monitoring rests with the Conservator ofForests (Monitoring) in the FD and a designated monitoring officer in the DAH.Activities under the Tribal Development Plan would be monitored by anindependent agency. Effective monitoring requires a well functioningmanagement information system (para. 3.7). Both the FD and the otherparticipating departments and agencies would maintain records of the project'sprogress regarding implementation of physical and financial targets to be usedboth by project management to monitor progress and to meet IDA reportingrequirements. Consolidated semi-annual progress reports, comprising allproject components, would be submitted by FD to IDA by June 30 and December 31each year. The reports would draw on information from the monitoring andevaluation cell and elaborate on existing constraints, and on how problems arebeing resolved. In addition to the usual indicators of physical and financialprogress, which are related to the implementation and disbursement schedules
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(AnDnO%.A, Table 3, and Annx_4) and to the detailed cost tables (Annex 12 ofthe Project Zmplementation Volume), key development indicators would bemonitored as benchmarks for the project's impact according to its developmentobjectives (a&flfl*L Table 2). Detailed reporting requiLments and monitoringindicators for the project would be fine-tuned and finalized during theproject launch workshop.
3.23 A mid-term review would be carried out by GOAP to evaluate project
experiences, particularly with respect to JFM and the group farm forestryprogram, the working of the reorganized FD, the treatment practices under theproject, and the protected area management plans. At n.GOtfat40nn aseuranceg
were ptainad t-hat! GOAP shall, by December 31, 1996, undertake in
collaboration with G01 and IDA, a mid-term review of the project, and shallthereafter implement the recommendations of such review. A project completionreport would be prepared by the FD and the other participating departments and
agencies on the basis of IDA guidelines within six months of the closing date
of the Credit.
Projegt RenefitR and Justification
3.24 Rsmafita. The project would increase directly or indirectly the
production of wood, NTFP and animal products which would benefit the rural
poor, and improve supply of wood to forest-based industries. The project would
bring nearly 400,000 ha of degraded forest and uncultivated land undersustainable management (including non-forest land based activities under the
TDP), thereby significantly reduce soil degradation. Approximately 700,000
mainly poor households in fringe forest villages would receive direct benefits
from the project, of which an estimated twenty percent would be tribalhouseholds. Women would be principal beneficiaries and scheduled castes and
tribes would constitute over 50% of beneficiaries. About 80 million person-
days of employment would be generated in plantation establishment, a benefit
which is almost wholly captured by the poorest and landless households.
Processors and marketers of wood and NTFPs would benefit through increasedsupply of raw material.
3.25 FVnantalt AnalyMie. Most treatment practices yield FRRa of between 12
and 34%, with fruit gardens yielding over 50% returns. See Table on next page.
The NTFP have a major influence on the overall net benefit stream. The
treatment practices which yield relatively lower FRRs are those in which NTFP
cannot be realistically accommodated, and the high FRRs are largelyattributable to annual NTFP benefits arising in what is otherwise a long term
treatment. This confirms the prevailing view that NTFP are major contributors
to net benefits from forest lands and serve as a key incentive for localparticipation. Details of the analysis are given in Amn4x. 7. Individualtreatment practices are described in the Implementation Volume, Annex 11.
Although benefit sharing reduces the proportion of revenue accruing to the
exchequer, a significant enhancement in absolute terms is expected since local
protection prevents degradation.
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Finaneia1 and Vnonom4.c Profitahilltv of Yr",eamL= e raetieeo
Treatment Practice Financial Economic Financial Economic
Returns 0 Returns % NPV per ha NPV per ha
Joint Foreat manaaqmeiit stream
TP1. Rehabilitation of degraded forests:
Viable rootstocks and gap planting 20 20 3,609 2,842
Tribal Development A: Farmers with podu land only Over 50 Over 50 19,800 20,775
Tribal Development B: Farmers with podu land and 40 Over 50 26,878 31,787
agric. dryland
a/ Benefits are largely unquantifiable; therefore IRR, ERR and NPV cannot be calculated.
b/ Net financial and economic returns are positive from the first year on; therefore IRR and ERR
cannot be calculated.
3.26 EcnncmIe and tiana4t4vitY Analysin. The eConomic rate of return for the
project as a whole (including all project costs) is estimated at 20% over 30
years. In addition, there are benefits which have not been possible to
quantify in monetary terms. These include, inter alia, increases in the
productivity of soils due to foreat protection, improvements in the management
of protected areas, enhanced capabilities of the forestry public
administration, more effective local participation, research, extension and
training. The project's ERR is moderately sensitive to variations in the cost
and benefit streams. If all benefits would decrease by 20% and costs
simultaneously increase by 22% the ERR would decrease to 12%. In the unlikely
event that all benefits were lagged by 3 years the ERR would decrease to 12%.
Details of the analysis are given in Ananez1.
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3.27 The project would have beneficial effects on the environment. It isheavily weighted towards environmental improvement through community-basedprotection of forest areas and vegetative soil and moisture conservationmethods. Recommendations of an environmental impact review, carried outduring pre-appraisal, have been incorporated in the project design. Theproject addresses the following main environmental considerations: watershedprotection and management, including the prevention of soil erosion and fires;conservation of soil moisture; maintenance of biological diversity, includingconservation of endangered plant and animal species, critical habitats, andprotected areas; limited use of fertilizers and pesticides; and increasedproductivity in order to reduce pressure on the environment. These activitiesresult in significant non-quantifiable project benefits as discussed above.The project investments would not cause any resettlement.
Intitutional Ipa6t
3.28 The project would foster a major change in forest policy from enforcedprotection to cooperation with local communities. The state is committed tothis change which is based on experience in other states. Links are beingestablished between the forest administration and other departments as well aswith NGOs for the implementation of this program. The project would alsoserve to strengthen the forestry institutions in the state. Moves towards arestructuring of the FD organization to respond to the challenges ahead areplanned as an integral part of the project. The collaborative fodder programinvolving the FD and the DAH which is being started under the project has highlong-term potential for expansion.
emaat on Women
3.29 Women are the predominant collectors of fodder, fuelwood and NTFPs andwould benefit considerably from the project. The proposed JIM forestrytreatment practices would significantly enhance availability of many forestproducts that are collected to provide household subsistence and secondaryincome. Effective participation of women in JFM would be critical to curbillicit removals and to secure sustained management of the resource. Tofacilitate the efforts to mobilize women the project would involve NGOs information of village committees, FD staff would undergo gender sensitizationtraining, and village women would be given empowerment and managementtraining. Women would be full members of village protection committees andwomen's subcommittees would be established for managing NTFPs. The projectwould also support a study on rural women'a requirements and appropriatedesigns for fuel efficient stoves in different parts of the state early on.The efforts to incorporate women in all aspects of the project would besupported by a new FD hiring policy to encourage recruitment of women asforest guards, foresters, and range officers - currently staffed 100% by men.A post for a woman nodal officer would be established in the FD to coordinateand monitor gender sensitivity training, women's development activities andproject efforts relating to tribals.
Trbl Dvlnp n
3.30 The main thrust of the project which is encompassed in the JFM programwill automatically reach and benefit tribals as they constitute a largeportion of the fringe forest population. About one half of the project areashave relatively large tribal populations. In some of these areas over 60% of
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participants would likely be tribal. In other areas, the tribal participationwill vary considerably with up to 50% in areas of concentrated settlement andless in other areas. Scheduled tribal areas are those with highestconcentrationa of tribals. Outside these areas, tribals form on averagesomewhat less than 10% of the target population for JFM. The results of asocio-economic survey carried out during project preparation were used totailor JFM and benefit sharing arrangements under the project to the needs oftribals. Tribals would constitute over 50% of village forest committeemembers in tribal dominated districta. The project is expected to reachapproximately 150,000 tribal households inside and outside the scheduledtribal areas. More details on tribal populations are available in Annex 10 ofthe Implementation Volume.
3.31 TJU JveDI M.t; Plant. Within the scheduled tribal areas the projectwill finance, as a pilot-type operation of fairly large size, agro-basedproduction systems for part of the tribal communities participating in JFNactivities. This will be achieved under a Tribal Development Plan (TDP). Thisplan will enhance benefits to tribals and has been designed, based on theabove-mentioned field survey, to complement existing development activities bygovernment in the scheduled tribes' areas. An estimated 23,000 tribalhouseholds would be reached by this TDP pilot operation. its objective is toaccelerate agricultural development and eco-development activities in theselected pilot communities so that, together with the JFK activities under theproject, (a) an improved and sustainable agriculture and forest productionwould be attained at significantly increased household incomes, and (b) thecommunity's natural resource base would be rehabilitated or maintained. Inaddition to activities toward improving agricultural productivity, the planwould provide various income-generating opportunities and support general andtechnical education and management training for tribal groups to facilitatetheir participation in TDP activities (para 2.8 e).
3.32 It has been agreed that the TDP would be targeted particularly at themore vulnerable sections of the tribal populations as identified through abaseline survey to be carried out by the Tribal Cultural Research Institute(TCRI). The TDP is expected to have the following impacta on beneficiary
households: (a) improved food security for chronically food-deficithouseholds; (b) increased incomes from below the poverty line: (c) gradualreduction of dependence on shifting cultivation in the Reserve Forest; and (d)considerable improvement in tribal women's decision making and economicsituation.
3.33 Implementation arrangements for the TDP would not require newinstitutional structures. The component would be implemented by the ITDAs,under tbe Department of Social Welfare (DSW), on delegation from the project'sexecuting agency, FD, and by the local organizations of the tribal peoplethemselves. The ITDAs have adequate capacity and competence to handle theadditional workload without getting distracted from ongoing programs. However,local tribal organizations would be built up or strengthened during the plan'simplementation. There would be strong coordination at several levels betweenthe ITDAs and the nodal Government institution, i.e. FD, and at the locallevel with villagers' forest protection committees (VSS), who together areresponsible for the implementation of the JFK activities in the areas ofscheduled tribes. The financing requirements for TDP would flow from the GOAPDepartment of Finance through PMU in the GOAP secretariat for FD to the officeof the Commissioner, Tribal Welfare. Outside NGOs with expertise in mattersrelating to tribals would assist in launching the JFM activities in tribalcommunities much in the same way as in non-tribal villages. NGOs assisting
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with the implementation of the agro-based and income-enhancing activitie of
the TDP would mainly consist of tribal villagers' groups. Plan iuplementatLon
would be monitored by an independent agency. This special monitoring would be
linked to the overall monitoring process for the project and the project MIS
(para 3.21). Because of the experimental nature of the activities under the
TDP, special efforts will be made at the mid-term review to evaluate progress
with the plan's implementation (para 3.22). The strategy for the TDP,
including its organization and implementation arrangements, is suumiarized in
ADosE_2. A detailed presentation is given in Annex 10 of the ProjectImplementation Volume.
Rrc Rxkk
3.34 The main risks facing the project are: (a) the degree of coumitment
within some parts of participating departments of GOAP to make the necessary
institutional and policy reforms envisaged in the project; (b) the
effectiveness of people's participation in forest nanagement and development
for the sustained management of common and public lands; and (c) parts of
northern Andhra Pradesh experience unrest from naxalite groups which gay make
project activities there more difficult and risky. The first risk is being
addressed through an agreed sector policy reform program, issued as a
Government Order by GMAP, and through assurances. The project tries to
minimize the second risk by including comprehensive training for FD staff and
villagers in JFM principles, building links with NGOs and other government
departments involved at the village level, and by rigorous monitoring of the
process. As JFM takes hold local populations may become more inclined to work
with the FD, which would indirectly reduce the third type of project risk.
- 33 -
IV. AGREEMENTS AND RECOMMENDATION
4.1 At negotiations, the following assurances were obtained from GOAP:
(a) Seedlings used for the project shall be suitably culled in the
existing nurseries in the project area (para 2.7).
(b) To assist in the design of the research program and in plantpropagation, GOAP shall appoint consultants, acceptable to IDA,
not later than June 30, 1994, in accordance with TOR agreed with
IDA (para 2.8 [a] [il)-
(c) GOAP shall discuss with IDA, not later than October 31, 1994, the
resulting program under item (b) above, including theimplementation timetable, and shall, taking into account IDA'scomments, promptly thereafter implement such program (para 2.8 (a][iil).
{d) GOAP shall complete, in consultation with IDA, not later thanSeptember 30, 1994, the study for the development of theintegrated protected areas network (para 2.8 (c]).
(e) GOAP shall carry out the Tribal Development Plan in a manner and
timetable agreed with IDA (para 2.8 [el).
(f) GOAP shall, not later than March 31, 1995, complete and discuss
with IDA the institutional development study and shall thereafter
implement the results of such study in accordance with a time-bound action plan agreed with IDA (para 3.3).
(g) GOAP shall (i) select the staff for overseas training under theProject in consultation with IDA, (ii) upon completion of such
training, post such staff for at least three years in areas inwhich training was received (para 3.5), and (iii) ensure thatresearch staff remain in post for at least five years (para 3.6).
(h) GOAP shall, in consultation with IDA, (a) not later than December
31, 1994, complete the overview forest inventory; (b) not laterthan June 30, 1995, (i) complete and operate the managementinformation system; and (ii) install the geographical informationsystem (para 3.7); and (c) not later than December 31, 1995,complete, under principles agreed with IDA, the design of new-typeworking plans for managing the forest estate, and shall thereafterinitiate their implementation (para 3.8).
(i) GOAP shall complete, not later than Decomber 31, 1994, in
consultation with IDA, (i) the transfer of the required forestrystaff to the Wildlife Wing of FD, and (ii) the staffing of the
Planning Cell of the Wildlife Wing (para 3.10).
(j) GOAP shall carry out the field investments in each location under
the joint forest management component of the project in accordance
with a microplan for joint forest management between the villagers
in that location and FD; each such plan to be prepared inaccordance with a methodology agreed with IDA (para 2.7 [al).
- 34 -
(t) GOAP shall ensure that (i) joint forest management benefit sharingarrangements agreed between the villagers and FD, shall be adheredto, and shall not be changed without prior approval of IDA, and(1) joint accounts between the villagers and FD will be used forjoint forest management field investments (para 3.13).
(1) GOAP shall (i) ensure that seedling distribution shall follow apolicy agreed with IDA, and (ii) adjust the seedling prices everyyear to cover the full production costs, as agreed with IDA (para3.19).
(m) GOAP shall make available to FDC land of adequate site quality andin blocks of suitable size for implementation of the high-yieldplanting program under the project; such land to be selected inaccordance with criteria agreed with IDA (para 3.9).
(n) For the purpose of assisting in carrying out the project, GOAMshall select NGOs in accordance with procedures and criteriaagreed with IDA (para 3.12).
(o) GOAP shall, by December 31, 1996, undertake in collaboration withGOl and IDA, a mid-terz review of the project, and shallthereafter implement the recommendations of such review (para3.23).
(p) GOAP shall implement a system satisfactory to IDA for channellingthe funds required for the project, to the entities involved incarrying out the project (para 2.11).
(q) GOAP shall obtain, or cause to be obtained, in a proqpt andefficient manner, all approvals and clearance from GO or itsrelevant departments or agencies as may be necessary or requiredfor the purpose of implementing the activities under the project.
4.2 As condition of credit effectiveness it was agreed at negotiationswith GOAP that consultants, acceptable to IDA, shall have been appointed for:(i) preparation of an institutional development study to assist in therestructuring of the forest administration (para 3.3), and (ii) developing themanagement information system and the geographical information system (para3.7).
4.3 With the above assurances and agreement, the proposed project would besuitable for an IDA Credit of 8DR 55.6 million (USS 77.4 million equivalent)on standard IDA terms with 35 years maturity.
-35 -
I1UDIAPae1o?AH PR~ADESHi FORESTRY POJECT Pae of 7
AGREED SECTOR REFORM
GOVERNMENT OF ANDHRA PRADESHABSTRACT
Forest DePartment - Policy for Forestry Development in AndhraPradesh - Approved - Orders issued.--------------- ___--------------------------------------------__
ENERGY & FORESTS(FOR.II) DEPARTMENT
G.O.Ms.No..237 Dt.26-11-1993
ORDE-R:
Government of Andhra Pradesh has been implementing variousProgrammes and schems relating to forest development as Per theNational Forest Policy. While these activities have proceededwith varying success the normal activities of the ForestDepartment i.e., those directed towards managing vast maJority offorest areas in the State which are not subject to specialschemes haye been continuously declining. To meet the challengesahead in this regard, substantive reforms are contemplated in theorganisational structure and the development of human resourcesso as to become attuned to the changed mandate.
2. After considering various aspects of Forestry Administrationin the State of Andhra Pradesh and also the National ForestPolicy, the Government approve the Policy on Forestry Developmentas detailed in the Annexure I & II to this order.
3. The Prl.C.C.F. is requested to 'take further action
accordingly
4. This order issues with the concurrance of Finance & Planning(Fin Wing) vide their U.O.No.5735/PFS/93 Dt.22-11-1993.
S.RAYPRINCIPAL SECRETARY TO GOVERNMENT.
To
The Pr.C.C.F., A.P.Hyderabod.The M.D. APFDC Limited, HyderabadCopy to All Colleotors
Forestry develooment strategies followed in the Past havebeen ineffeetive in reducing deforestation and forestdegradation. This is due to relentless pressure on account ofever-increasing demand for fuel, fodder. timber, etc. Inadequacyof Protection measures has also resulted in illegal, uniregulatedfellings and encroachment in the forest areas. The dwindling of
forest resources has resulted in hardship to those living inpoverty who are dependent on f o.-st resources for theirlivelihood, besides detrimental environmental impact, as well asscarcity and high prices for eommercial forest goods.
The Present degrsdation of the forests in the State has tobe arreSsted by a future 5trategy for ecological balance,Preserving biological diversity and genetic resource, and to meetthe requirements of the local Deoole for various forest oroduce,
as well as of society at large for traded forest-based goods on asustainable basis.
Policy Strategy
The future forestry policy of the State envisages the
following reforms in important areas of the forestry sector:
A. Forestry Administration
I. The forestry administration would concentrate on hishpriority areas where it has a comoarative advantage or uniquemandate, and divest itself from activities that can be moreefficiently Performed by other groups, including localpopulations. NGOs and Private industry, or enter into partnershipwith these. This will result in better management andutilization of available forest resources.
2. Where forests are under Pressure by local communities fortheir livelihood, they will be managed for better production andconservation bY Participtory management through introduction ofJoint Forest Management. The local communities together with theconcerned Governmental and Non-Governmental organizations will beinvolved for implementation of Joint Forest Management Plans.
3. The forest administration will be streamlined and a neworientation will be civen based on intense local participation inforest management, on the one hand, and realistic and flexible.planning and implementation of forest activities supported by
modern information technology and increased possibilities.forspecialization and permanence of staff, on the other. Regularfinancino for appropriate maintenance of forestry investmentswould be ensured. * :
-37 -Vage 3 of 7
B. Technology
4. A need-based, oroduction-oriented research Program,
concentrating on a limited number of important forest soecies,
will be oromoted in support of a vigorous program of upgrading
nursery. Planting and silvicultural technologics in order to
achieve higher forest Productivity.
5. Modern Plannino and monitoring tools, such as MIS and GIS,
will be introduced throughout the forestry administration for
meeting the changino needs of forestry.
C. Forestry PoliCY
6. Private investment in the Production of better quality
seedlinos and in afforestation of wastelands*will b encouraged ad
facilitated. The needs of the wood-based industries will be met
through hioh-yield afforestation orogram to be taken up bY the
Forest development Corporation alone or in co-oceration with the
industries. Rules governing timber transport will be suitably
modified to encouraoe orivate Participation in afforestation
primarily through farm forestry.
7. Suitable measures will be initiated to control grazing, such
as encouraging stall-feeding. upgrading of cattle breed and
opening areas for grazing in a cyclical fashion, thus ensuring
conditions oropitious for natural regeneration and at the same
time meeting the needs of local peoole.
S. The economic situation of the tribal Population will be
improved through concomitant inputs aimed at higher agricultural
production and non-agricultural income by Promoting availability
of non-timber forest oroducts.
The attached Policy matrix at Annexure-Il zummarises the
main actions to be undertaken in the near future to
operationalise the above-mentioned strategic priorities.
A.1, The VA Is Involved In PA Is neponsible for more than Pealle relative trengths ad Study to aalyze ways to As cndition of ffectivene. anitablealmost all apect of It can hande. Buslive role of . Concentrate A on reoranize the forestry consltant. shall have been pointed tofoestry uhich are becming disperlon of marce resrces tasks that ned to be Adeinistratton t(iluding carry cut on inetitutionl developuenticrasingly coupler. weakens FA' effectiveness. The undertaken by Goverment issues pelled out under A2 study 14.2 SI .
private sector hs be tregulatices, protection of tbrough A4 below) will be At negotisticas, am provideddiscouraged fro playing a foret resource, s ete ad undertaken and Its asurances that the study will begreeter role n tforsttry divert others to the private recmendcatios iplemated. discused with IDA end coMpleted bydvoelopent. sector or other agenctes. Om would undertake the hrchb 31 l9" ed thut its
ietlew the strauture of the PA rectructuring with the r_tleadtions will be liplentedand design option to bettes ceacutrence of Col. nacordin to a plan greed with UK.met future nee. t4.1 f3
2. Staff __agmat does took of speclize staft. Create a nnpower pollcy whic As part of the O provided assrnces at eotionsnot enorage specia_ latio DMpeOiNt to local initiative wil allow specialized career reorganlretion study hov"te that the eleettio of staff for overeasor dcetralized decision- neded in participatory pso2ect. deelcpaent. seword develop mnpower policy. training will be done In consultationliNg and promotes fast Inreased betficlentc In the specialization in selectd with ID that staff dill lwlth the
rotation of personel. _ement of foreet lans, fields requirlo high levels eception of exigency c_s be postedparticularly In all those tasks of training. roster local umpon eapletic4 of sucb training for atwhch require coatinuity of insovation and ptaton es least taree ears - and t leest fivestaff,, suc as research. Los of well as two-wy plannia. years Iq the ca of research staff-instituetlonl wory. too Pridoe Incentives to la ers In which trainng was gfrequent shifts In adnistrative petformmce icluding awards received. (4.1 gInor9. for ettective policing eand
protctlon wtrk. rnsrestebllity of staff Ilspecialized areas.
. Planning and montoring Decisions are baed on lited train staff on efficient Under the reorganszation Sultable caonultants shall have beesprocedures, Anlyticl inforAtion nd giving adlinistrative procedres, study above, rD will Include appoated to dovelop 6 and CtS as
llttle consideratioa to the economec aalysis, plnsUdg analysts of Methods to codtion of *ffeCtivenes 14.2 iit)).eeomi coeqauces of actions. ad monitoring. Increase implemeat effective At negotiatioas OMW providedLex adminiatrtive ethods ailow trnspanency of operations, afeinistrative monitoring ssurances that *a overview of forestInaetflencry ad foster Chane amasures of and coatrol, and to assess Inveatory will be cmpleted by Decsmsraltpractice". Pertonmce i perfor_en. perfonmnce io relation to 31 1994, and HIS will be celeted and
measred ln tere of delivery of Increases in output of gos operatioal and 61S wil be litalledisputa rather then actual nd services ratber than to by Jue 30, 199l 14.1 b ta) and tb))productive achaventa. delivery ot sitnts and
budget.
4. Itnuffiient nter-agey ftoretry devlopmat progrm noorae siteragecy Under the reorgaAlsatioelinkae, los effectiveness in addreig i study so options Will be
local problem ad potentials. analyzed for iMlenentingcultidisciplinary activities Iwith Departmts of AnimalNusbandrty Sorticulture,e4wen, Police, Agriculture*ad tribal Develqont.
-~~~~~~~~0WIo mwa"m Com ams00 AN. AM= aN.DA omitu
S. nag" wmit nos. nOu do aot participae Deelop l1htka with n0 Coordinatint COMttee am poded sweanrencs at
effectively In oicial frtetrty nmnity to failitate locl will be tarmd and a neGtiatioa that IOO *ab be
activities and thu thali participation a forest ine.ei o fr tatol lag VO selected. for tbe purpose Of asiting
oweratv advantage la planing menaegmt. to planning and IMplentin In carrying out the project, in
end helin is the inpumntatio selected project aeuvities _COeOdo with IrIteria agreed with
ot participatory actlvitie is will be deelpd. IDA. 14.1 a)
nee to be stzenthesd. research results and for tfer toresty prgem. sertves tor tar fotestryIolemeaettica of te fAw typ of Ibe use ot, A coaodiate will be developed and sac
forestry oatlivties iolting with. DOA etenosie services extended withlocal pextliipaties. lafratructure. coordinatic of 0.
S. 1
1. Pehonlog Wlication Present nursery practies aNd nprove ned stot and ourstey Seed procemet aed GM*? provided asseraces at
culd bh improd platlng mthods lead to high practices. mprove capability handing and nauery and eOtiatitas tha aendling for project
pattclarly la sed e_ccacic dad enviroantal Costs, to desaig technically sound plantiag prctices will be activitles will ha suitably culled that
selectlion anry patticularly la tems of benteits planting metho. Improved, tollowint ocesutanns wll ha selected before Jeuo
opeatis and pantatlon tforegne. specifically desigaed 30. 1994 to assist in the deign of a
Methods. programs. ptrgA for moving se haing and
ersry practices and that sech
prom, incleudag tlewtable, will ha
4disc ed with IDA by Octr 31. 104
endprtly Iplemeatd incorporatinID's comnte. 14.1 a t 4.1 bt 4.1 a)
2. Rnseareh needs to be Slow pee of technoloy Stale up reserch progran and Researb strateogy C provided *esaranoa at neoiations
better lnterated wltb inovatlo. tailor It to ky develownt identi ying prtiocity areas that Suitable cosultants will be bired
ergent problem in the problem. for applied resarch and to asist In the desin ot a resea
field. innovatien will be designed proger and that such prgrtan Including
ad adopted. tINta11a., Will be discusd withb tA by
Cotcber 30, 1094 and promptly
iphISted, lnorporatig ID'somats. 14.1 bJ 4.1 el
3. Forest working plan Old working plans are bemin Prepare working plans oret for new-tpe wotking At negotiataeon 0AP prowided aurances
need to coneftz mere closely ineasingly lrrelevsnt with accordin to new needs and plans will be deelcped. In that ew-type workag pla wuil be
to chanin ad often graoing discrepanes betwee tavolvin local partielpetion. dolng no, planlng tools designed and tbelr Implementatioen 111
confcting Nltipl dans plan's prescriptions, actual acb as S*e 018 and 9PA ha initiated by Obaeotr 31, 1915. 14.1
anrdncra ra results in the Meld nd will be sd. Forest h t)
patUipation. Datt bse for fiacin avaleble. inventory will be crtied
the dels aNd out.
il_mntati et af -ty
wrkin pla e act
tavable- go
us SrC?5 PROPOSED CRAM RCSONSS An ACloU PUEC? C00TI?ZNS
4. Coverage and mnagmnt CoreSt Pa do not cower All key Pedeftie Ph boundariea to Suitable chana In PAs will At negotitions, GQ0IU providedof protcted areas. blies and habitata. SamePAs are allow local participation and be effected after I9*5 atedy asearances that a consultancy on 39asunder beay pressure from local the creation of core and in line with the study' wlli be cocplted by Septber 30, 1994lpopulatlon. he wildlife wing Is btffer reas. rcomnedtliona. Statfing that the tranaer of the requitdunderataffed to carry out now of wildlife wing will be forestry staff to the ialdlife Wiag andbroader responsibilitAes and to ncreased. atafftiag of Its Planing Cell will beetfectlvely protect PM. completed by Decber 31,1994. 14.1 dt
4.l 11
5. R"gulations restrit gcontomc and eavironental oases Clarify and espudite Working plan pre#sriptioneclear-fellin as a in all caese where cleartelling operational procedures for for cleartelling in suitableailvicltural treatmnt. is the moat appwpiate 1lited cleartelling of reas will be elaborated end
treatent. Rehailtation of natural foreats, particularly isplaented after 00Chhobly dewraded areaa i an higbly degraded aeas. clearance.lnhbted, cosequetly Prepare and apply mnaementsactrlfcng eonmic and plans for elective falling.eanvlroeatal beaetita.
S. Retrictions on tbe Since in may casee exotic Inttoductton of exotica abould Coattolled ltreduction oflatrodction of erotic spcies are bighly productive. be decided on economic as wll cnotie species will beepectes. th regulation leads to a lose of aa ewnir -ental round. SOMe operaktioalred, supported
substantial economi benefito. clearly advantageous specle by adequate research andshould be approved as soon as guidelines, and consultingpossible. Clear operational 003.procedures for otbet speciesmuot be destgned as a matterof urgency.
0C. M 4
t
Ii) Pollets ffeetees& prteiolp"ates1. benefit abaring Derivation of benefits from the Adoption of a benefit sharing Cl er-cut benefit sharlag Prior to project ne_ltiationa, fit thearrangeents aned to be designated forests by villags, system which assures arrangemnts wlll be worked C.0. on JPM has been amended so thatspeclfed. tribals sad forest dwellers Is participatory forest out involviag lotal benefit sharing *rr anannts fcr Va$e
noregulated and *aset-depleting. raagement under regulated beneficiaries and NW0. relecet suggestions trm othercoditions. overnment Deprtments, NODS and ZDA,
IlI) JFNl uplemntation guidelins havebeen issued end fll) a State-level
ortetry citee tor eJn coorittlnhas been establishb. At negotltlona,OM* provlded assuranee thtinvestments to ranXbilitate degradedforoet lands undr the JEW coeaent ofthe project will take place only after aJ mieropl an, agreed with thevillages end prepard in acordanceWith a netbodoleM agre with IDA, is
avilable. At uietiems GM* alsoprovided *nuanc that JEW bet tsaring artragmeats egrad between"villagerns d A" wil not bm changedwitbout ptiot aproval Of IDA and that o 0jolnt eccountn goD end VS will be usedfor JN field inestrnts. 14.1 J14.1 ki
2. Orgnimatiot of lack of a clar strat for A strategy for the production Nl with moat rarketproctIon and markAeting production ad marketing of Wl. nd mirketing of the mat potential will be ideatifled
of ur". rianotive to local lupetant Wl should be ndt strate forparticipation. designed. Te efficiecy of D ratioaalising prodectica and
and Girljn Corporaten abould markting and specific rulesbe imponed to keep costt for beknfit *bhring w1ii bewithin reASCoMble limts a4d prepared.optimi mevn to W11Mcollectors.
poliAo s:
3. Forest POicy and the Increaad coats for large-acale Analye form of parnterahip private sector lveatment to
Coaeeratioa Mt do not foretbeed laduatrial With large private induatrial seedllng production will be
allow prlvate iaveastmt i productio uwich requlrea lare eaterprlaea. encouraged. the FDC in
foreat Mad.. Goveamet tracts of la"d for block collaboratioa with wood-
policese also lidt private platutioe In order to opetate beaed induatris aims at
owersbip of lad. effictently. y ant allowing takiag up block plantation.private invearmeat ea In In degraded ftorest lad.
degraded lans oppotuaittie for CORa will remain engaged iland rehabilitation are loat. dialoue at COS to open up
furtber avewue tor theprivate sector to inveat laomercial forestry
4. Reatrictios oan tranait Dialicentive to plantlag tree Further liberalle trfait fhe list of exempted apecie*of wood. speclea aftected by the rulea, keeping restrictloAS will be aceaded and
geatrictLon. Rule leads to for a very few, very bigh procedueas for i*auance of
administrative malpractices. pririty Species and amplify transit pemits will betranait permt procedures. Uplif led.
fll) DfiIag" PIe£iees
5. Govarnment aupplies free Diaincentiea to private bliminte seedlin saidy. Policy for eoaving seedling At meiation. GMI provided
or suhaidized seedlinga. prodectla of seedllaga. Owlity subsidy will be foguelated asacasa that seedling dltrlutioaof aeedlinga io poor and tbhs and plemeated. mil be doe accrxdig to a policy
yield are sacrificed, agreed with IDA ad that sedlin salsS
discoragng private planting. prices will be ad5utad anually tocoer full prodct ina coas. 14.1 11
6. Coarnment allows free ptbriced graing eacouraes Analyse impact of applying A grating policy that
graaing In foreat laads nacreassa In the amber of cattle grasing charges. Deign fodder encourages nateralwell beyoad the carrying capacity program ad provide icestivea regeneratlon will beof forest lands with the to stall feedlg. tormlated and Introduced.aacciated econauic andenvironmental daage.
f0h
- 42 -
an-a 2Page 1 of 4
TRTRAL n VLOP34RT RTRATRG.Y
1. The tribal economy is subsistence-oriented and based upon a combinationof agriculture, forest-based activities, and wage labour. NTFP (gum, tendu,honey, tamarind and a large variety of forest fruits, leaves, and seeds)constitute important sources of items for consumption and sale for tribalhouseholds. Past forest legislation as well as management practices led tothe alienation of tribals from the forest. The GOAP order of August 1992 forthe introduction of Joint Forest Management (JFM) is expected to facilitatetribal communities' participation in local planning for replanting of degradedareas, as well as in protection. Tribal communities would benefit throughincreased availability of NTFP, benefit sharing with the government in regardof timber products, as well as employment and income generation in forestryand related activities.
2. Trial sub-plan. Government financing for tribal welfare is providedunder the Tribal Sub-Plan (TSP) which is funded through components of (a) thestate plan (45%), (b) plans of GOI ministries and departments, centrallysponsored schemes (7%), (c) special central assistance (24%), and Cd)institutional finance for the credit portions of beneficiary-oriented schemes(24%). The resources available under the TSP have been inadequate to providecomprehensive assistance and have led to a piecemeal approach, selecting a fewfamilies per village. This has led to resources being spread thinly.
3. IFAt Project . IFAD is supporting a project in 16 out of 32 watershedsin four ITDAs for reafforestation of podu lands, improving food security, andcommunity development with support for education, training and health. TheIFAD assisted project covers areas outside the RF, and approximately 42% ofall households in the four rTDAs of Seethampeta (Srikakulam), Parvathipuram(Vizianagram), Paderu (Visakhapatnam), and Rampachodavaram (East Godavari).These consist of households engaged in podu cultivation. It is proposed toextend the IFAD project to the remaining five ITDAs.
objaetivas and St Xat.gy
4. The main objectives of the Tribal Development Strategy financed throughthis project, are to ensure that tribal and other socially disadvantagedgroups living below the poverty line receive culturally compatible social andeconomic benefits from the project. In addition, the project aims to developbeneficiary capacity for informed participation in project activities whichwould also contribute to the sustainability of the development process beyondthe project period. The strategy to realize these objectives would be toensure and enhance the positive effects of project activities on tribal groupsand to complement existing government programs that are aimed at improvingdevelopment in tribal areas. Specific action oriented objectivea arepresented in Table 1.
- 43 -
Page 2 of 4
PrJMn Ao
5. The project area would include areas both with concentrated tribalpopulations (scheduled areas under Integrated Tribal Development Agencies(ITDAs) and Modified Area Development approach pockets and clusters) and non-scheduled areas with dispersed tribal groups. Nine ITDAs have both wholly
scheduled and partly scheduled areas. In the wholly scheduled areas, thereare 5059 villages, where 75% of the population is tribal. In the partly
scheduled areas, there are 879 villages, where the tribal population varies
from 40 to 50% of the total population. Different tribal communities will beinvolved in the project. Along with people designated as Scheduled Tribes
(STs) under the Indian constitution, special attention will need to be given
to the groups recognized as Primitive Tribal Groups (PTGs).
P=Rokd AGtiv1, =
6. Six groups of activitiec would be included in the Tribal DevelopmentStrategy. These activities, listed in detail in Table 1 include:
- Joint Forest Management- Agro-Based Production System- Forest-Based Income Generation- orientation, Training and Extension- Gender Specific Activities- Coordination
All these activities, with the exception of JFM would be funded under theTribal Development Plan component. JFM is financed under componentssupporting participatory forest management throughout the state.
7. 2DL. At the apex level would be the AP Forestry Committee to be
chaired by the Principal Secretary, Forests and members consisting of:
Secretaries, Social Welfare, Finance, Rural Development; PCCF; Commissioner,Tribal Welfare; MD, GCCs Director, Women and Child; and NGOs. This Committeewould approve the annual action plans prepared by the Department of Social
Welfare as well as the JFK plans for the ITDA areas. The Committee would also
monitor implementation through progress reports by concerned agencies, as well
as by appointing independent consultants from time to time for M&E. The
Secretary, Social Welfare, would with the assistance of the CommissionerTribal Welfare, prepare consolidated annual action plans and budgets agreed
with IDA in keeping with the overall tribal development strategy. The TDP
allocations would be reflected in the annual budgetary allocations of the
Forest Department, GOAP .
8. EM. The responsibility for local level planning,implementation and
coordination of JFK in tribal areas would rest with the Conservator offorests, DFO and PO, ITDA. These agencies would work together through theDistrcLt ITDA level forestry sub-committee, to be chaired by the 00, ITDA andCr, DFO, NGOs and FPC representatives as members. The formation of FPCs would
- 44 -
Page 3 of 4
be facilitated jointly by FD and ITDA staff. Sustained support would beprovided by both to FPCs for their participation in micro planning andimplementation. Implementation of JFM through agreed microplans would be donejointly by FPCs and F!D staff. FPCs would have the responsibility of forestprotection and participating in forestry operations as per schedule.
9. Support to agro-had Productinn Systm. Oriontatin. Extonsion aniXxa±n,nM. Such activities as will be undertaken outside the RF, i.e. onprivate and revenue/community lands, and community groups' training andsupport programs, would be planned by ITDA staff with participatingcommunities. ITDA would facilitate participatory planning throughformation/use of community-based groups. Such community plans would beamalgamated to prepare the annual plan for the ITDA, to be approved by the APForestry Committee. Implementation at community level would be carried outthrough the technical staff of the ITDA, in conjunction with the community-based groups. Financial transparency would be maintained by opening jointaccounts for specific community level activities, with community group leadersand ITDA staff as co-signatories. Individual beneficiary-oriented schemeswould be imPlemented by individual households with ITDA support. Theagricultural consultants (ACs) would provide technical support to a cluster ofparticipating communities. The Village Liaison Workers (VLWs) would work withsingle communities, to follow-up the guidance provided by the ACs, and tomonitor progress/problems, to facilitate the ACs' role. As under the IFADproject the VLWO would be monitored by community groups and would beaccountable to them. The PO ITDA would be responsible for overallimplementation and progress reporting to the Secretary, Social Welfare andCommissioner, Tribal Welfare. Training for participatory management would beprovided to FPC members by VD, ITDA staff and experienced NGOs. Details ofother training programs are presented in Annex 5 of the Project Imple entationVolume.
10. Selection CriteriA. The areas to be covered by the TDP will consist ofthose which respond positively to the opportunity of JFM. On this basisvillages will be jointly selected for JFM by FD and ITDA staff. Suchvillages/hamlets will be covered by the TDP. Within such JFM villages,beneficiary households will be selected as per the following criteria :
(i) such households must be members of communities participating inJFM under the project;
(ii) they must be members of the Forest Protection Committees;
(iii) they must participate fully in the discharge of responsibilitiesof FPC members, of forest protection and rehabilitation;
(iv) they should be below the poverty line; and
(v) they should not have been assisted by the IFAD project for similaractivities.
- 45 -
Page 4 of 4
Funding Under the Progejt
11. The project TDP will provide US$ 6 million towards activities to support
agro-based production systems, and education and training. In addition, the
GOAP has agreed to channel resources on a priority basis to areas coming under
JFM, for basic social and economic development programs, and for credit for
beneficiary-oriented schemes.
12. Links to IFAD Project. The project TDP will be complementsry to the new
IFAD project. The programs being implemented are mainly in agriculture and
agro-based activities, as well as support activities in education, health and
infrastructure creation. The project TDP will provide additional finance to
cover remaining households/villages not covered under the IFAD project, i.e.
landless tribal and disadvantaged households engaged in NTIP collection and
podu cultivation. The proposed extension of the IFAD project would bring in
additional staff resources into five ITDAs but there would be a single line
administration under the PO. The additional financing under the project TDP
is not expected to exceed absorption capacity in the four XTDAs covered under
the IFAD project.
13. Flow of funds. The financing requirements under the TDP would be
reflected in the annual budget of the Forest Department GOAP. Funds would
flow through the Project Monitoring Unit in the GOAP Secretariat for FD, to
the Office of the Commissioner, Tribal Welfare, and thereon to ITDAs gradually
being brought under JFM. The fund flows would be linked to the uptake of JFM
under the project. The ITDAs would utilize TDP funds according to project
objectives and TDP activities. Project accounts would be separately
maintained. TDP funds for specific local level activities would be put into
accounts to be operated by ITDA technical staff and community group leaders
jointly.
14. Timing of ation (Refer to at Table no. A In An
Prnject Tmlmntation Volum"). Under the TDP, the support to agro-based
production systems, i.e. podu land rehabilitation and horticulture
development, would be taken up on a staggered basis with less hectarage in
year 1 and increasing hectarage in years 2-4, and reduced area in the last two
years. Supplies of equipment and inputs to beneficiary households would be
taken up in year 2 of the project with reduced coverage in years 5 and 6.
Water harvesting structures would be constructed from year 1 onwards.
Research and training for NTFP would be undertaken from year 1 with reduction
in intensity in years 5 and 6. Training of communities in participatory
management, JFM would commence from year 1 and would continue till year 6 of
the project.
Monitoring
15. Monitoring of physical and institutional achievements and financial
progress would be carried out on a six-monthly basis by an independent agency
to be contracted by the AP Forestry Committee. Broad monitoring activities
and responsibilities are given in Table 3. Monitoring indicators are
described in Annex 10 of the Project Implementation Volume and would be
further elaborated during the project launch workshop.
1. No negative impact should be 1. Customary rights of tribal communities to forests adjoining FDcreated upon tribal their habitats, to be worked into the Joint Forest Management ITDA IAPFCcommunities traditional links Plans, through Participatory Resource Appraissls and NGOwith forests. microplanning with the tribal communities. Comaunity
2. Demarcation of village and forest boundaries through joint FD Imapping, during PRA at village level of habitations and ITDA I APFCforest area customarily used. NGO I
Community
3. Majority of members of FPCs in Scheduled Areas to consist of FD Iindigenous tribal groups. ITDA I APFC
NGO 1Community 1
4. Planning of areas to be taken up for JFM within local forestresource areas should be done jointly with the tribalcoMmunities, so as to ensure that existing patterns oflivelihood based upon livestock grazing, beedi leafcollection, etc., are not threatened.
S. Species selection should be done jointly by the FD, and the FDtribal oommunities, particularly women, and the Communityrepresentative of GCC, so as to ensure the flow of NTFP,incomes and food during lean periods from the forests.
6. Usufructuary benefits should be provided to the tribalcommunities primarily, and after saturation of theirrequirements, to non-tribals. 'U
2. Development activities to 1. Support to increase productivity and sustainability of ITDA / APPCsupport tribal agriculture in agriculture practiced by tribals both in settled and shiftingsettled and shifting areas. systems of cultivation, through land development measures,
improved access to agriculture credit, support forhorticulture, etc.
2. Multi-tier plantations in JFM areas, with food, fodder and FD, ITDA / APFCfruit, as well as fuel varieties, through cooperation withshifting cultivators.
=z-BAn _ eyxVgArTnu
3. Protection of the culture and 1. No resettlement of such groups. FD APFClivelihood systems of foodgathering and hunting 2. Recruitment of such tribals as forest quards and watchers.communities living in thecore areas of the wild-life 3. Exclusive right to such groups for NTKP collection. U
sanctuary.4. Enrichment plantation with NTFP species, particularly gum
karaya trees among others.
5. Fringe area populations should be involved in JFM, withoutprejudice to customary rights of core area tribals to treesin the fringe area.
4. To increase tribal incomes 1. Support for NTFP processing through tribal producer groups, ITDA, GCC / APFCthrough value adding particularly women's groups.activities.
2. Provision of a share of profits arising out of beedi leaf FD / APFCsales by FD, to tribal beedi leaf collectors.
7. Social Development of 1. FD coordination with GCC, ITDA, for improving the socio- FD, ITDA I APFC
tribals. economic status of such comunities. GCC M
2. TDP to dovetail with existing GOAP and IFAD programs to be ITDA / APFC
implemented in project areas with tribal populations toensure provision of infrastructural support, and supportservices.
£
0
WhFO
XUDZLPRAFSlU S51591Y PRO""CY
Agency Mesbers Functions
AP Forestry Cosittea (APFC). Committee to be chaired by the Principal 1. Approval of JFH plans in TDP areas, and TD?
secretary, Forest, GCP, members including action plan & budget; monitoring and
Secretaries, Social Welfare, Rural evaluation of TDP implementation through
Development, Finance, PCC?, Tribal Welfare regular receipt and assessment of progressCommissioner, M.D., GCC, Director, Women A reports form implementing agencies:
Child Development, Representative from appointment of consultants at appropriate
Andhra Pradesh Scbeduled Tribe Finance intervals for MSE.
Corporation (APSTFC), NGO Representatives.
2. Coordination of implementation functions
between rorest Department, and Trlbal
Development Department and specialized
agencies.
3. To suggest from time to time further 4n
developments, and activities, to ensure 0improved participation of tribal populations I
in project a&.tivities, and. accrual of
culturally compatible benefits to them.
District Forestry Sub- To be convened by the PO, ITDA, other 1. In charge of JFK planning for TDP areas.
Committee for ITDA areas. members include CF, Dy. CF, GCC
representative, DOA, DOAH, other concerned 2. In charge of regular implementation of the
development agencies, local NCOs vherever Tribal Development Plan.
available, NGO (IPRA training),
Representatives of Tribal Communities. 3. Coordination of activities trom all concerned
agencies, to ensure comeon approaches between
FD, and ITDA for potential JFW areas:
4. Coordinatlon of PRA actlvities including
training, *liro plan prparation.
5. Reporting Quarterly to the AP etreetry ICommittee.
Agency Members Functions
ITDA t State PO and subject matter specialists Implementation of tribal development activitiesGCC I Tribal 6CC in JFN areas.APSFC / Development APSTFC
/ Agencies. 1, Joint identification of JFM areas inside theUnder Social RF with FQ and tribal communities, throughWelfare Department PRA activities.
2. On the basis of micro plans drawn up withtribal community participation, follow-upactions to be identified for non-RF areas forintegrated tribal development activities,d&awing resources from the state Tribal Sub-Plan, as vell as the project TDP.
3. Interaction with the FPCs, to identifysupplementary economic activities preferredby sub-groups (e.g. women's groups), trainingneeds of particular groups, and provision forthese.
Forest Department Conservator, DFO, and support staff. Implementation on a day to day basis of microplanning, in coordination with ITDA, MGOs,leadinq to JFM based group formation,coordination of training ln PRA for ITDA, FD,communities, and NGOs where available.
Forest Protection Committees FPC to be formed through PRA with FO staff, 1. Community based planning of total villageITDA staff, communities. Men and Women resource development, forestry resourcemembers of participating communities protection and regeneration: benetit sharing
with FD.
2. Other development activities to supportproduction systems that are well adapted tothe needs and environment of trlbal people;
_ ,l
Aqency Members Functions
3. Development activities to support productionsystems under stress to attain sustainabilitylevels (Podu cultivation on non-RP lands, NTFPcollection and processing).
Village Liaison Worker Member of the local tribal community, 1. To carry out on a day to day basis,accountable to the FPC coordination with the FPC for JFM activities.
2. To act as a facilitator for JFM and otherdevelopment activities to be supported underthe TDP (organize grain banks, women's groupformation for economic activities, thrift andsavings, assist in the organization oftraining, credit programs and other activitiesto be locally determined).
NGOs To be selected as per criteria provided in 1. To provide training in PRA in actual field UnAnnex 6. locations to FD, ITDA and tribal communitiest
and to facilitate micro planning.
2. To provide training to tribal communities(including women members) in management andarticulation skills, as well as inorganization and leadership development.
0
TINTA
AUTIRRA PR~AD5h1 FRESTRY P.RTMP
?d(NTYoDtNU. aNnl RVAnTIMTO
Agency Function Comments
AP Forestry Committee Will be responsible for the overall Overall program and progress of TDP tomonitoring of the implementation of the be assessed during mid-term review.TOP, and inter agency coordination.
Independent Consultant to be Appointed Will assist the APFC in carrying outby APFC periodical evaluation of progress, and
in the compilation of data collectedfrom implementing agencies.
Trained Tribal Participant, Village The members of the tribal community vho Such village liaison workers wil; beLiaison Worker have been trained to assist in the trained in monitoring aspects.
implementation of TDP will also be Liinvolved in maintaining records andcollecting data to be passed on to APFCthrough district forestry sub-committees.
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FY/Semeater Diaburemsnt CUMulative % of TotalDisbursement Credit
(US$ million) (US8 ilion)
FY94 - II 2.3 2.3 3
FY95 - r 3.1 5.4 7- xI 4.7 10.1 13
FY96 - I S. 1 5S.5 20- UI 5.4 20.9 27
FY97 - I 7.7 28.6 37- U1 7.7 36.3 47
FY98 - I 7.8 44.1 57- II 7.8 51.9 67
FY99 - I 7.7 59.6 77- II 7.7 67.3 87
FY00 - I 7.0 74.3 96
- II 3.1 77.4 100
- 57 -
Page I of 3
ADR PRADKRSU FORESTRY PROJRC Z
Zs=XRY FOR THR ARRLEION OF FORET -D O HIg-IL LNAIN FFl
Obehctives. An agreement on the criteria for the selection of land forthe high-yield plantations of FDC would be a requirement for the inclusion ofthe costs for this activity in the project. Compliance with the criteriawould achieve two objectives: (a) t o ensure that the plantations areproperly sited as a sound investment, and (b) to ensure that the populationaffected by the establishment of the plantations receives adequate benefitsfrom this project component to compensate for the losses.
(a) folicocriea-Physi;al Siting Criteria
The quality and physical configuration of the sites selected for high-yield plantations should b e such that this investment is financially viable,well manageable and accepted/supported by the local population in the adjacentareas. Preliminary criteria are set out below which will need to be modifiedor expanded as necessary by the implementing agency, such Amendments to bereviewed and approved by IDA.
(i) Candidate areas are heavily degraded natural forest withinReserve Forest Land with less than 0.4 tree canopy density. Areaswith less than 0.2 canopy density are the primary target. Theareas shall be judged as difficult to regenerate into satisfactoryyielding forest from existing root stock, making replanting theonly or preferred regeneration alternative;
(ii) Sites in the driest parts of A.P., i.e. areas with less than about600 mm annual rainfall, do not qualify;
(iii) Extremely poor soils, and stony/rocky soils that do not allow deepripping/ploughing, do not qualify;
(iv) Steep sites that are unsuitable for mechanical soil preparation donot qualify;
(v) Individual blocks of degraded forest land selected should be large
enough to make it attractive for commercial contractors with heavyduty soil preparation machinery to bid for soil preparationcontracts:
(vi) Candidate areas would normally not be selected on fringe forestland adjacent to populated villages; such forest land would suitbetter for forest management under the Joint Forest ManagementStream of rehabilitation investments under the project.
(b) rnnnnneimf Coritorla
It is not envisaged that this activity would involve resettlement ofpeople (see item [iij below). Nevertheless, there is likely to be someencroachment by local people at varying levels of intensity; any movesinfringing on existing usufruct or customary rights of people to the land or
other resources taken by the project, such as collection of non-timber forest
- 58 -
Page 2 of 3
products, grazing, etc., will entail the necessity of compensation to the
affected people. The fact that candidate areas are on governent land and
such local groups have no legal title to land is not a bar to the right of
compensation. Moreover, since the candidate aceas and associated compensation
needs are not known in advance because of the late addition of this treatment
practice to the project, prior agreement is needed on the compensation process
and criteria that meet Bank policy and requirements I as a prerequisite for
using proceeds of the Credit for this treatment practice. Preliminary
criteria are set out below which will need to be modified or expanded as
necessary by the implementing agency, in consultation with the
organization/representatives speaking on behalf of the affected people, such
amendments to be reviewed and approved by IDA.
(i) Candidate areas are chosen so as to avoLd or minimiLe resettlement
and infringement on customary rights;
(ii) Where this is unavoidable, a compensation plan 2 will be developed
by FDC & FD in consultation with the affected people directly or
through their spokespersonst
(iii) The plan will be based on a socio-economic survey that identifies
the number of people/households potentially affected, describes
the resource base of the affected population, the extent of
anticipated loss of income or assets, and the attitude of the
affected people toward the project component. Candidate sites with
a large number of potentially affected people will be rejected,
particularly if the losses would be of substantial magnitude for
the majority of the people.
(iv) The plan will address and mitigate the project component's impact
on the affected population. It will give particular attention to
vulnerable groups such as tribals, the landless and semi-landless,
and women:
(v) Valuation of lost assets will be made at their replacement cost.
for those types of loss that cannot be easily evaluated or
compensated in monetary terms, equivalent and culturally
acceptable alternative resources and earning opportunities will be
provided by the project. The compensation plan will offer to the
affected people on a preferential basis participation in the
economic activities made possible by the investment causing the
losses, including employzent and training;
(vi) The plan shall include a target date when the expected benefits to
the affected people will be delivered/achieved:
These are set out in the World Bank Operations Directive (00) 4.30 on involuntary
resettlement including compensation due to customary right taken from local people by the
project.
2 A resettlement and co2pensation plan in case of unavoidability of resettlement. By
this is meant the unavoidable involuntary resettlement of a few individuals or households.
lavoluntaty resettlement of any considerable number of people is ruled out under this
project.
- 59 -
Page 3 of 3
(vii) The plan for each candidate block or cluster of blocks of ForestReserve Land ahAll be *apUrwd first by the District LevelForestry Committee and subsequently by tho Bank efanre anyifvents I, nt nrtia be finanee out of theproceeds of the Credit for this project;
(viii)Arrangements, satisfactory to the Bank, for monitoringimplementation of the plan, including actual compensation, shallbe developed by FDCIFD by the time the first plan is submitted forBank approval. In-house monitoring may need to be supplemented byindependent monitors to ensure complete and objective information.The District Level Forestry Comdittee concerned and the StateLevel Forestry Committee shall have a role in the monitoringprocess;
(ix) An analysis of the socio-economic impact of this treatmentpractice on the affected local people will be conducted at thetime of the mid-term review.
- 60 -Page 1 of 2
ma
ANBRRA PRAOEH F'0RISTRY PRO.7KcT¶
TRI!A OR
NN-OVRNNzNT C0RGAI2AlT YAWS EWAOp}
1. The project would seek NGO participation in various activities,
especially in areas of villager mobilization, formation of village protection
committees and women's groups, technology dissemination, and training in
respect of joint forest management investments and practices. NGOs would
extend training both to the village communities and to the field staff of the
forestry administration. The VD would invite interested NGOs to register
requests or proposals for collaboration. The PD would be responsible for
reviewing the pre-qualification documents of interested NGOs and agreeing on
appropriate mechanisms to involve NGOs in the project. The selection of NGOs
would be guided by the following criteria:
(A) Rnmarn Rennnrc Endowme.nt
- profile of excellent leadership- existence of second line of leadership
- adequacy of other staff (number; qualifications;commitments/enthusiasm; reputation)
- readiness for a long-term commitment/involvement
economics)philosophy on community participation as reflected in other
projects the NGO has undertaken, and strategy for
participation in present proposaldemonstrable skills in participatory approaches, ability to
build up strong people's groups around community issues and
development activitiesability to train both beneficiaries and government field
staff in participatory approaches to JFM
ability to monitor physical progress in area concerned
composition of NGO staff offered for this assignment
(gender, ethnic composition, tribal staff, etc.)
gender sensitivity, experience in working with poor women
and with involving the marginalized sections of communities
equally in the local development process.
(C) Othgr Fpen_ature
(i) Viaaa tn9nstrength and financial stability
- quality of accounts and audits
(is ) fnltA
- physical resource base (buildings, vehicles, communication
facilities, word processing/computing facilities)
networking facilities/capacities with other organizations
(iii) Rapport with government- prior involvement in government projects
(iv) NozataI±tg- no affiliation with political organizations
- not proselytizing
2. The candidate NGOs should demonstrate their ability to truly understand
the JFM part of the project and their role in it. Owing to the nature and
extent of the physical coverage of the JFM program each NGO will be part of
the entire process.
3. Appointment of NGOs to assist in project activities shall be subject to
confirmation by the District Level Forestry Committee.
4. Qualifying NGOs should be given additional forestry technical training
by FD, if required.
5. NGOs who are part of district level NGO associations should receive
priority in becoming selected for working for the project.
- 62 -knsx 7
Page 1 of S
IMDtAAEHA papDKsa FRER?RY PRQlrT
FINANCIAL ANA P.CONOM1C ANWALY=:
TTO
1. This Annex examines the economic impact of the project. Its focus is onfinancial and economic profitability of directly productive activities.
2. The project will increase the supply of timber and non-wood forestproducts such as fuelwood, grass and fruits. The project is also expected togenerate a series of other beneficial effects which are difficult to measurein economic terms. These include, intez alia. increases in the productivity ofsoils due to forest protection, improvements in the management of protectedareas, enhanced capabilities of the forestry public administration, moreeffective local participation, research, extension and training. These effectshave not been included in the benefits streams of the project, although theircosts have, been computed in the estimate of total project profitability. Inother cases, only qualitative descriptions are possible. Other aspectsconsidered in the economic impact of the project as a whole are employmentgeneration and an estimate of the total number of people who will benefit fromthe project's activities. The Annex also examines the probable economicimpact of the project on tribal people and the poor.
WATETDDoT
3. tifiablA Project Physical Tmpants. Direct and economicallyquantifiable benefits are mainly derived from the forestry treatment practicessupported by the project and from the Tribal Development component of theproject. Seventeen such practices have been designed and analyzed. Estimatesof physical inputs and outputs were developed for each of the treatmentpractices and for the Tribal Development Plan. Details are presented in Annex11 of the Implementation Volume.
4. Shared costs, such as research, extension and activities aimed atstrengthening of the Forest Administration, were not included in the estimatesof individual treatment practices. However, as mentioned above, they wereincluded in the estimate of the total project economic profitability.
5. Impact estimates follow the standard practice of using one-hectaremodels afid projecting situations with and without the project. Th6se includemainly fuelwood and fodder which would have been produced in modest quantitiesin the absence of the project. Costs include all incremental recurrent costsfor goods and services that will continue after project completion.
6. Benefits include incremental production of timber, poles, fuelwood,fodder, forest fruits, bamboo, a variety of horticultural products forhousehold consumption and several non-timber forest products. The aggregateproduction arising from treatment practices was measured for the first 30years. Results are in Table 1. It should be noted that the project wouldeventually lead to a larger output of timber than indicated in this Table asmuch of the timber production would take place after 30 years. Most of the
- 63 -AreasX-
Page 2 of S
items of cost and benefit are non-tradeable and practically all of theproject's output is expected to be consumed domestically.
7. An important feature of the now treatment practices is the increased useof improved planting stock including clonal material for planting. A gradualreplacement of present nursery techniques is envisaged with the first yearinducing no substantial change, the second year leading to the use of one-third of the planting material based on improved nursery techniques, with thisproportion increasing to one half in years three and four and 80% in yearsfive and six. Costs have been computed to allow for this gradual transitionover time, as improved planting material is more expensive than seedlingsproduced through traditional methods.
8. Zrx±aa. The financial analysis uses market prices for inputs andoutputs. All market prices are April 1993 prices in constant values. Theseare described below. One of the main items of cost is labor and a standardrate of Rs 28 per workday was used in all financial calculations. Most of theproject's operations would be carried out during the agricultural plantingseason. On.the benefit side, all timber, bamboo and pole prices are stumpageprices.
9. With respect to economic prices, and with the exception of timber andfertilizers, all inputs and outputs of the project were considered as non-tradeables and therefore a Standard Conversion Factor was applied (SCF, 0.8)to financial prices to derive economic prices. All price estimates associatedwith the project are conservative and are assumed to remain constant in realterms during the life of the project. This conservative assumption wasadopted despite evidence that relative prices of project products have beensteadily increasing during the last decade and despite the fact that futuredemand appears to be clearly exceeding supplies (See Annex 1 of theImplementation Volume). Thus, profitability calculations likely include adownward bias. Prices used in the financial and economic analyses are listedin Table 2.
10. Withent- roa±ct SRannrios. Treatment practices would be applied mainly
to heavily degraded land. Many of these lands are used under a comaonproperty regime and in most cases are expected to show severe declines inproductivity in the absence of the project. In most cases a steady reductionin the output of wood products is expected to take place initially, followedby sustained -- in some cases temporarily increased -- and then decliningoutput of fodder. In some situations, where population pressure is high andthe physical condition of soils fragile, lands would become totallyunproductive in a few years. The benefits sacrificed because of the project(net benefits of the situation without the project) have been entered underthe item "cost of land" in each one of the treatment practices.
11. i4nnn~iaI and Rnnn~~mi~ PrnfitabIlily. Costs and benefits streams foreach treatment practice are included in Annex 11 of the PIV. Table 3summarises costs and benefit streams for the project as a whole and Table 4their expected net present values (NPV). Under the conservative assumptionsadopted, the profitability (ERR) of the project as a whole is estimated at 20%and its total NPV at Rs 1,601 million (O.C.C. - 12%).
- 64 -
Page 3 of 5
12. The financial and economic profitability of the treatment practices aregenerally satisfactory. Estimates are displayed in Table 5. The aggregateeconomic profitability of treatment practices is 29% and their total NPVRe 2,233 million. With the exception of afforestation practices with non-teakhardwoods, the treatment practices to be implemented by the project exhibitrates of return well in excess of 12%, the opportunity cost of capital. inthose cases in which profitability levels equal or fall marginally below 12%,practices would still be supported by the project in consideration of theirdesirable environmental and equity impacts. Profitability levels areextremely high in some cases such as: (a) the activities related to the TribalDevelopment Plan, which are expected to increase productivity drasticallywhile using modest quantities of incremental resources; (b) afforestation withbamboo which also shows drastic responses to improved technologies with lowincremental costs, and all practices involving horticultural crops; (c)plantations of fast growing species for industrial uses, which make intensiveuse of highly productive clonal material; and (d) silvicultural treatments ofviable teak plantations, which generate imediate income.
13. The JFM component assumes benefit sharing between Government and ruralpeople. It is assumed that the Government would pay for main material inputsand labor costs up to the plantation stage. Villagers would contribute alllabor inputs after plantation. On the output side all benefits would accrueto the rural people with the exception of timber which would be shared equallywith the Government. The expected returns to farmers and to Government aredisplayed in Table 6. Returns to farmers are highly attractive with thepossible exception of the pasture treatment practice which yields only about15%. Still farmers are expected to adopt this practice in view of thecultural values associated with livestock ownership. In the case of theTribal Development Plan, and in view of the poverty levels of the peopleinvolved, it is assumed that all costs will be covered by the Government whileall the benefits would accrue to tribals. Financial rates of return in thiscase would be extremely high and therefore provide an effective incentive totribals to participate in the project's activities. There are no specificbenefit-sharing arrangements in the case of the Production Forestry streamalthough it is more than likely that some proportion of output would bereceived by the local people, either through formal arrangements orinformally. Some kind of formal benefit-sharing should be encouraged by theGovernment to generate incentives for rural participation. In the case ofPrivate Farm Forestry the Government would not provide plantation inputs otherthan extension and training and benefits would be received in their entiretyby the local people. Returns are judged to be attractive enough to induceprivate planting.
SRwSTYTVrTY M(fAT-YRTS
14. The profitability of most of the treatment practices is more robust thanthat of the project as a whole and therefore, can withstand greater unexpectedchanges in economic conditions. As seen in Table 7, most treatment practicescan absorb an increase of 30% in all costs and still remain above the 12%level, some of them by a substantial margin.
15. The project as a whole is moderately sensitive to changes in economicconditions. If benefits fell by 20% the economic rate of return woulddecrease from 20% to 16%. Benefits would have to decrease by 35% to bring theeconomic rate of return down to 12%. If costs increased by 20%, the economicrate of return would decrease to 17%. Costs would have to increase by 50% for
- 65 -AnAzl 7
Page 4 of 5
the economic rate of return to fall to 12%. A combined increase in costs of22% and a decrease in benefits of 20% would also bring the economic rate of
return to 12%. Furthermore, in the unlikely event that benefits were delayedby as much as three years, the project would still sustain a rate of return
equal to 12%. Since the treatment practices constitute the bulk of the
project's investments, the weight of their possible changes on the project'sprofitability is considerable. By contrast, other components such as research
or studies have a negligible importance measured in total costs and thereforevery little impact in case of unexpected changes. Table 8 shows switchingvalues, which explain the afore-mentioned benefit/ERR or cost/ERR
relationships, providing an idea of the economic soundness of the project as a
whole and its relative vulnerability to possible errors in estimates of costs
and benefits of each of the main project components.
16. The project will generate about 80 million work-days of employment inplantation esta, 2.sshment, a benefit which is almost entirely captured by the
poorest and-the landless. Indirect employment and income effects are alsolikely to be important.
mOm NFDLIF IMPAQTsS
17. Impacts which could not be quantified but which add substantially to the
value of benefits include, ±nt-r alia 4. the increases in production outside the
project derived from the dissemination of significantly improved productiontechnologies, biodiversity protection, the increased rural organizationresulting from joint management schemes, enhanced efficiency in the operationof the forestry administration as a consequence of better internalorganization, staff management and the use of modern techniques to measure andmonitor changes in the state's forest resources, changes in agriculturalproduction due to better water management and soil protection, improved localself-reliance and food security and, in general, the equity benefits derivedfrom project activities, which affect mainly the poor.
18. A large un-quantifiable impact of the project is expected to be thechange in the policy environment. By eliminating policy distortions, the
project is expected to lead to a more efficient allocation of resources in
general. The elimination of price subsidies is likely to encourage privateproduction of quality seedlings, therefore increasing future productivity and
generating higher levels of private profitability and planting.
19. The project will improve management and protection of nearly 400,000
hectares of land. The protection of lands in sensitive areas would have a
positive effect on soil and water conservation and on agricultural production.Such protection would also generate substantial impacts on biodiversityconservation and preservation of aesthetic and cultural benefits. The project
would train 700 persons in improved wildlife management techniques,ecodevelopment planning and implementation, conflict resolution, parkmanagement planning, JFM, environmental education, captive breedingtechniques, etc. 13 additional education and interpretative centers wouldimprove environmental awareness by targeting about 2 million people per annum.JFM and ecodevelopment schemes would be introduced in 100 villages within and
outside protected areas involving 10,000 hectares of forest land around
protected areas. Pressure on protected areas from 20,000 families and100,000 livestock would be drastically mitigated. In addition, the project
- 66 -
Page S of 5
would result in the rehabilitation of 500 hectares of degraded mangrove lands
thus restoring their productive level and improving the livelihood of 400families currently depending on these resources. While the benefits derivedfrom protecting these areas are hard to measure, they would likely besubstantial.
20. Five thousand hectares of podu (shifting cultivation) land and 30,400 ofdryland land would be rehabilitated during the project, under the TribalDevelopment Plan. The project would have a beneficial impact on tribals,through joint forest management activities, in terms of additional income andemployment from NTFP production and processing, the promotion of thrift groupsand improved food due to better agricultural practices, horticulture, soil andmoisture conservation works and afforestation. The net household income atfull development would be of the order of Rs 9,000-10,000 for farmers withpodu land and 16,000 to 20,000 for those with podu land and dryland, exceeding
the poverty level of Rs 8,000 per annum. Support to grain banks at villagelevel would also help Increase community food security besides reducingindebtedness, and families with podu and valley lands, comprising about 70percent of the families under the Plan, would become more self-sufficient inmeeting their daily calorie requirements following increases in foodproduction. Significant improvements in nutritional adequacy would beachieved due to the judicious selection of cropping patterns including anincrease in the are of pulses. For famillies with podu land only, additionalincome would be generated by the highly profitable horticultural crops. Theparticipatory process, village level organization and training, and thrift andgrain banks would also have a positive effect on the economic and socialstatus of women.
21. The project's activities related to joint forest management areinnovative and likely to spread as the project progresses. This implies abetter integration of the local population, government agencies and NGO's inthe effective and more efficient management of the forestry sector of thestate.
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Table 1
ANDNRA DRnRD3AR IM"MR POJC
Total Production Unit Quantity (000)
Fodder ton 13,706Fuelwood m3 24,196Poles Small Teak no. 98,703Poles Small Non-teak no. 25,705Poles Big Teak no. 2,182Poles Big Non-teak no. 8,673Timber Teak m3 29
- Timber Non-teak m3 463Agave ton 71Fruits ton 928Faggotwood ton 1,071Pulpwood ton 4,977Bamboo ton 3,682
- 68 -nnaBZZTable 2
A2DRUA P RDVR IoggnTAY PRO=U.
INPUTS/OUTPUTS UNIT = PRICE em PRICE(Rs.)
Workday w.d. 28 22.4Seedling (trees) one 3 2.4Seedling (bamboo) one 1 0.8Seedling (fruit) one 3 2.4Agave bulbs one 0.25 0.2Forest/thorny seeds kg 20 16Babul seeds kg 5 4Cuttings (shrubs) kg 5 4
Grass/legume seeds kg 50 40Fertilizer FYK kg 0.5 0.5Fertilizer, chemicals kg 6 6PP chemicals kg 6 6
Palmyra nuts one 2.5 2
OU1pPTs:
Fuelwood cum 200 160Fodder ton 170 136Teak poles one 30 - 70 24-56Non-teak poles one 20 - 40 16-32Teak timber cum 11000 11000Non-teak timber cum 4000 4000Red Sanders timber oum 50000 50000Agave fibre leaf kg 3 2,4Fruits kg 4 3.2
Faggotwood ton 250 200Pulpwood, ton 1225 1225
Bamboo ton 750 600
ii
a on "Au uutsuA on ont "O "O O" * t t S" su sfl ne n isu u &s Soa a ws ns us, Se. o "t
go fit t 03s o"6 £S0l 0 "a tog 101010 440 Sol 00 1£ on01 on£ A" 0 9W 0 A"6 tog Di to on1 LW 6* " 10 1 *M ."W3.
3as to3 I£0 go0 Ls Io Is 10 aW SI Si3 A0 103 USt 0It As6 Uo £06 510 as0 St0 t0o 1to 100 110 81000 0
0s~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ e t 14 U9 a 99f
^° t I SI U u t _
* t *" U sX "s ¢ seW eG U>W |s s *e se $s *eW W " e " " * z eW t U | *$ e _o 9 a t 0 tL 1s 40 N0 10
n e e e ez ez e e ~~~~~~~~~~~~~~~~~~~~~~~~~S Ot a et Wz Bs & n at * w *eb*s** S
0 S II I* 11 set a to a 0 So to e0t o et so o St et So to so 60 *0 of 10 of 66 t1 £ 0 A00 e w U 1061
0 Oll U " 6 IS 0£ 1 53 0 0 0£ U U * # Of O'S so U O l SO6SO*£ go Lsot61 1 00 t 1
no" " Al S A " Of is Of U IPA "W *" C to to aw $ SI e n n " ut M et SO so St _ W _
_s~~~~~~~~~~~~~~~~s_ U _~~~~~~~~~~~~~~~~~~~~~~16
£0o" 50 3 £A" "t 1. :10 ) 01103 100 Ue a 103. £601 600 10 £g31 us 3 "at g ot 1M 00 00 uL 0* "a 000 S0 10 £3 owl
Is t o IS 03800103606agguon ueset SsgUaSlon #0 030 3u08gSot wbe mA£sk tSta of00 0 0£ to Is St 0 ,.10apuqpj
0es0so3 a £ f 00 60 1 u1 U t eo013033365£in3 03£I 10360 Ate all 363S03ae 0 06 31 a 0 a 0 6 0 Am" uwd Mamem
00 so se a3 Se 03 03 60 3 et et 61 et £1 01 01 01 et a1 StI 01 6 A £ 6 60 0 *6 1
- 70 -
a=oLTable 4
ORNfA PRIDKR ORRYR PRn.=C
(Present Value in Rs. million at 12% discount rate)
JFM 724Production Forestry 754Coommunity and Private 375Tribal Dev. Plan 594Civil Works 223MAE 137Vehicles 28Studies 13Services/TA 1STraining 89Repl./Rec. Costs 250
TOTAL COSTS 3079
3nnef its from:
JFM 1046Production Forestry 1934Community and Private 724Tribal Dev. Plan 976
TOTAL BENEFITS 4680TOTAL NET BENEFITS 1601
- 71 -
Annoz2Table S
[~~~~~4u Fotlf f _DU= __ _
Treatment Practice Financial Economic Financial Economic
Returns 6 Returns 6 NPV per ha NWV per ha
Int orestr
TP1. Rehabilitation of degraded forests:
Viable rootstocks and gap planting 20 20 3,609 2,842
TP2. Rehabilitation of degraded forests:Pasture 1S 1S 1,701 1,258
Al Change, in porcent of NPV, needed in the benefits or costs of each of theMain project components, as well as of selected cost items, to bring the ERRof the entire project down to 12%.
- 75- APage 1 of 2
ANDHRA PRADRBS FRNSSTY PROQ7CT
A1PRVISION P . DEVRLOPMRNT IMPACT TNDCATORAND IMPLEMiENTATION SCeDULE7
1. S r-vi-a n Planning. Effective monitoring, progress reporting and
supervision are crucial to the successful implementation of this sector-wide
and multi-component project. Supervision planning by the Bank would be closely
linked to both progress reporting and implementation planning by the Borrower.The former process would be greatly facilitated by the computer-basedmanagement information system (MIS) and the latter by the computerized projectmanagement (CPM) technique which are expected to become fully operational in
the second half of the first project year. The supervision plan would beadjusted in a manner which recognizes that major innovative projectcomponents, such as joint forest management, group farm forestry, tribal
development plan etc., would be flexible enough to accommodate changes intargets, approaches or even in design. Such flexibility is justified given thestrong emphasis being placed on people's participation, an approach which has
not been attempted on this scale before in the State.
2. BankY SueLrviaion Inut. To ensure that risks to successful project
implementation are overcome through appropriate and timely adjustments, Bank
supervision missions would during the early stages of the project include a
strong complement of technical experts as well as social scientists. It isintended that supervisions would be undertaken twice yearly. One of those
missions would concentrate on the achievement of physical targets,procurement, disbursement, flow of funds and other procedural matters. Thesecond mission would primarily assess the effectiveness of the project'stechnical and social activities and, if required, make recommendations forchanges in design and institutional or management arrangements.
3. The start-up of Bank mission work would reconfirm foxmats required forproject accounts and reports and arrangements for procurement and
disbursements including retroactive financing, as well as arrange the project
launch workshop together with the Borrower. Performance indicators would be
finalized during this workshop (para 5). In the third project year provision
would be made for a mid-term review about two and a half years after project
start-up. The TOR for this review would be agreed with the Bank and providefor a complete assessment of the progress of the project and facilitate majordesign changes if necessary. An indicative supervision schedule and the staff
inputs required are given below in Table 1. These inputs are in addition toroutine supervision needs for the review of progress reports, procurement
actions, correspondence, etc. (estimated for this project to require fourstaff-weeks during the first project year and three staff-weeks per yearthereafter).
4. Rorrower's Contr4bution tQ Superavsion. The Borrower would make vital
contributions to the supervision process through several different activities.
The annual work programs, to be completed and submitted to the Bank 4 monthsprior to the beginning of the new Indian Fiscal Year, would provide a sound
- 76 -
Aln Page 2 of 2
basis for the supervision of the project as they include physical andbudgetary information, detailed and in summary form, on all project activitiesplanned for the next year. Under the project provision has been made tocontinually monitor and evaluate project activities with the help of theproject MIS. This activity would be the responsibility of the monitoring andevaluation cell of FD, headed by the Conservator of Forests - Monitoring, andwould provide a solid data base to facilitate supervision work. Monitoring ofthe Tribal Development Plan would be undertaken on a contract basis by acompetent outside agency. The Borrower would be required to submit progressreports semi-annually by June 30 and December 31 of each year; in thesereports, which would be based on the monitoring and evaluation flow ofinformation, the progress of project implementation would be reviewed, areasof difficulty faced highlighted and suggestiona made to overcome theseproblems.
S. Prior to Credit effectiveness the Borrower would recruit consultants toassist the project establish a MIS as the basis for the monitoring andevaluation process and the generation of progress reports, and to institute acomputerized project management technique for the generation of the annualwork programs and for keeping these up-to-date. The key performanceindicators and other information to be monitored and the detailed contents andformats of the annual work program and progress reports will be discussed andagreed with the Bank during the project launch workshop. A project mid-termreview would be undertaken by the Borrower through qualified consultants inthe second half of the third project year (para 3 above).
6. Review meetings with the executing agency, FD, and the otherparticipating agencies as required, will normally be held late May andNovember each year. The meetings will be chaired by the Secretary, Forests.The Principal Chief Conservator of Forests of FD would be responsible forcoordinating arrangements for Bank supervision missions, and for providinginformation required by missions. Missions will normally be accompanied byproject component leaders and specialists, as needed. Mission briefingmeetings upon arrival and wrap-up meetings will normally be chaired by theSecretary, Forests, GOAP.
7. Mission meetings with GOI will normally be chaired by the JointSecretary, Ministry of Environment and Forests (GOI) with the participation ofthe Undersecretary, Ministry of Finance (GOI), and representatives of FD andthe other participating agencies, as required.
99-II Supervision 11 Forestry 5(Discussion of AWP) Sociology
00-I Supervision 12 Forestry 7(Initiation of PCR Sociology
Work) Economics/FinanceEnvironment
xma
increaz e forest productivity Advancement of participatory - Number of V88s formed: (a) with (b) without
and quality protection and management of NG6 involvement; {c) in tribal areaspublic forest (IOM) - umbr of VSSs with their forest area
demarcated, hectares demarcated- Number of JM micro-plans finalized; hectares
covered by micro-plans- Micro-plans managed using GIS (numbers and area)- area covered by treatments in the field: (a) total
area (b) successfully reab .litated area
Rehabilitation of communal - Community plantations handed over to user groupsand private wastelands or established (numbers and areas)
- Farmer groups enrolled (numbers and areas)
Improvement of planning of - Area covered by overall forest survey and areapublic forest resource manage- (a) zoned and (b) classified for priorityment, inc. through modern developmentinformation technology - Area of priority zones (a) covered by more detailed
inventory; (b) with new-type working plan; andIc) managed using GIS
Rehabilitation of public - Area covered by treatments in the field: (a) total
forest lands for production area (b) successfully rehabilitated area
Improvement of seed 6 - Number and percentage of seedlings from improvedplanting stock, nursery and seed materialplantation practices, and - Number of upgraded nurseriessupportive research - Number and percentage of seedlings improved
by culling to standard a 05
- Number of large-scale verlfication trlals ainitiated/concluded for(a) forest woody
* species and (b) forest fruit species- Nuber and area of clonal cutting orchards
established and their production of mprovedplanting stock
Proimft OCLt3v Pr-ait XnnntLEuA
Institutional reforx of - rastitutional restructuring taken place ace. toforestry sector institutions outcome of sector institutional development study
Institutional support to - MIS and GIS fully operationalAPFD - Number of VD offices and staff houses built
Improvement of staff skills - Numan resources development plan preparedof sector institutions - Preparation of aunual training plans
- Numbers and disciplines of professional staff andsupport staff undergoing training
Advancement of private - Individual farm forestry: number of farms reached byparticipation in sector the project,areas covered and seedlings acquired bydevelopment the tree farmers; survival of seedlings
- Private commercial sector's involvement: number ofsuccessful initiatives and areas covered
Alleviate rural poverty Advancement of JFM on public - Number of households actively participating inforest lands, and of community VSSs/couunity plantations/GFPand group farm forestry on - Average annual value of benefits par householdcoimercial and private derived from JFM/CP/GFIwastelands - Number of local community people trained
- Breakdown of above estimates by la) gender lb) S.C.and (c) S. T.
Employment generation through - Number of paid work-days under the project andthe project breakdown by (a) gender, (b) S.C. and (c) S.?.
ImpIemntation of Tribal - Adoption rate of improved crop husbandry and soilDevelopment Plan conservation measures
- Income levels and living standards, including foodsecurity
- Number of women's groups developed
Protect the environment Conservation and improvment - Number of PA management plans completedof biodiversity - Number of rare/endangered species targeted for
- PA area (hectares) brought under functioningprotection management
- Number eco-sensitive JFM mlcro-plans formulatedfor villages in and around PAs
- Average value of restoration/substitution/incremsntal benefits accruing to householdsin above villages
- Number of research studies supporting IPAS, andof eco-surveys conducted
Traditional forest management - Number of area units (beats, divisions, districts)where ecological considerations have been explicitlyincorporated in traditional forestry activities
- Total degraded/underproductive arearehabilitated/reforested
Collaborative fodder program - Fodder seed production under the program- Intensive fodder production plots under the program
and the project- Acceptance of stall feeding- Reduction of grazing damage in JFM areas
Tribal Development Plan - Abandonment of podu (sites; area)
All above-mentioned three Forestry sector reform - Fulfillment of/substantive progress with the 18objectives program reform items listed in Annex 1 of the SAR
GOAP commitment to the - Sufficient and timely fund allocations for theproject Government's portions of the project's annual
budgets, and timely release of funds for operations- Timely preparation of periodic project reports,
including annual work programs, budgets, progressreports, and audit reports, etc.
la
- 82 -
_=M MNFFMM rm
E.Wd Annud OmMW en Ode Paymsfl
PWGJ EomeWt pro PI*aet Yw TO( hAPMect 1 2 3 4 5 6 FavemNNt
shall be made available to the Members of VSS free of cost.
3. In respect of timber and poles, riqht to the same can be
earned by VSS after fulfilling the responsibilitcs under these
rules. Joint Forest .Management Plan would set apart 50% o( thle
products harvestable for self-consumption amont the members of
VSS and 50 will be earmarked to the Department. Ilowever, in
case of surplus produce, not required by Samithi ms-mbers for
their own use. saLa shall be done throuqlt t ha Mtnaftninq
Committec.
4. The members of VSS only will be allowed to have access to
collect from the forests his/her share of usufruct.
H. OTHER REGULATIONS:
1. Access to forest land and usufructory benefits will be
allowed only to the members of V.5.8.
- 87 - 87 ~~~~~~Annex 9Page 2 of 2
2. cutting of trees should not be permitted before they are
ripe for harvesting. The Forest Department also should not cutthe trees on the forest land being protected by the members of
Vss excpt in the manner prescribed in the approved Joint
rooest Management Plan. In case of emergency needs the members
of V5s and the Maaging Coamittee should be taken into
cof idence.
3. the areas to be selected fot treatment under Joint PorestManagement. should be free from the claims (including existing
right. privileges concessions) ofaay person who is not a
beneficiary under the scheme.
,, Wborevwr voluntary agencies are avalAble, with
iuperiene in forestry programs., they may be associated to
play the role of a facilitator and interface between the forest
departmnt and the community. They can articulte the views of tho
oCnanity whiuh is yet to organise itself effeactively to
function as an institution. The Members of voluntary agencieswould not however be entitled to any remuneration, rights orbesofits under the Joint Forest Management Programme.
S. TMe village falling within the watersheds as identified
by O.P.A.P. may be given preference in introducing of Joint
Forest Manageent Programes so as to enable to integrate with
the holistic activity.
6. Ihe DivisionaL Forest Officer may supercede VSS for
sufficaient reasons only after the approval of the Uistrict
forestry aoia.tee.
7. The Joint Forest Management Programme will be reviewed
after a period of 10 yrnro, but the oovtrnw'nt ren'erv'm the
rlght to do so. even earlier, If the circumstances so warrant.
- 88 -
Page 1 of 2
AMDHRA PR SRE FORS= pRo7eCT
PROJECT IPENTomra VOLUME.
Table of Contents
Annex 1 Forestry in Andhra Pradesh
Annex 2 Background to Sector Reforms
Annex 3 Plant Propagation Research and Technology Development
Attachment 1: Draft TOR for Specialists' ConsultanciesAttachment 2: Culling of Seedlings in Nurseries
Annex 4 Resource Assessment and Information Technology
Attachment 1: Draft TOR for MIS DevelopmentAttachment 2: Draft TOR for GIS DevelopmentAttachment 3: Draft TOR for Forest Survey
Annex 5 Training Program
Attachment 1: Summary of Training CostsAttachment 2: Draft TOR for Training AdviserAttachment 3-7: Detailed Training Programs and Costs
Annex 6 Selected Items Concerning Organization and Management
Attachment 1: Draft TOR for Institutional DevelopmentStudy
Attachment 2: Institutional IssuesAttachment 3: Gender IssuesAttachment 4: Summary Contents of Annual Work Program
Annex 7 Biodiversity Conservation and Protected Areas
Attachment 1: MapAttachment 2: TOR for Integrated Protected Areas System
Study and Specialists' Consultancies
Annex 8 Fodder Development
Annex 9 Approaches to Joint Forest Management and Ccmmunity Forestry
Attachment 1: Key Indicators
- 89 -
Page 2 of 2
Annex 10 Tribal Development Plan
Attachment 1: Zmplementation Arrangements Tnside andOutside Reserve Forest Areas in Tribal JFMVillages
Attachment 2: Implementation Arrangements in ITDA AreasAttachment 3: Reactions to JFK in Different DistrictsAttachment 4: Customary Rights, Livelihood Patterns and
Perspectives of Tribal Women
Annex 11 Guidelines for Forest Treatment Practices
Attachment 1: List of SpeciesAppendices 1-12: Detailed Guidelines for Treatment
Assuaptions for Financial and Economic AnalysisInstitutional and Financial Assessent - APFDC
Pra-Apraital MisRion Norkengt Donumnt-
Environmental Assessment and Sociological Impact ReportObservations on Treatment Practices during Field Visit*Attitudes of Tribals of Andhra Pradesh towards Joint Forest
Nanagment
P~a~art tn i**Ian Norkdng newnumtanta
1 Forest Resource Analysis G Information System2 Forest Policy and Legal Analysis3 Institutional and Financial Analysis4 Forest Technology5 Livestock and Fodder Development6 Forest Industries7 Forest Economics and Marketing8 Rural Sociology9 Wildlife and Biodiversity
ath.APFD - Facts and Figures 1993APFD - Report on Institutional Development Apr-93APFD - Management Models Nov-92APFD- Supplemental/Revised Notes Apr-92APFD - Background on Andhra Pradesh Forests Jan -92APFD - Farm Forestry and Village Woodlot Survey Reports Mar-91
