Senegal - Forestry Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 3120a-SE REPUBLIC OF SENEGAL FORESTRY PROJECT STAFF APPRAISAL REPORT January 15, 1981 Projects Department Western Africa Regional Office Agriculture III Division This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS \ Currency Unit = CFA Franc (CFAF) US$ 1 = CFAF 210 CFAF million US$4,762 WEIGHTS AND MEASURES Metric System 1 stere = 1 m3 of stacked roundwood 1m3 (natural forest firewood) = 1.6 steres = 640 kg 1m3 Eucalyptus firewood = 1.6 steres = 720 kg 24 Eucalyptus poles = 1.0 m3  FOR OFFICIAL USE ONLY ABBREVIATIONS ATEF - Agent Technique des Eaux et Forets CCCE - Caisse Centrale de Cooperation Economique (France) CIDA/ACDI - Canadian International Development Agency/Agence Canadienne pour le Developpement International CILSS - Comite Inter-etats de Lutte contre la Secheresse au Sahel CNRF - Centre National de la Recherche Forestiere (Senegal) CTFT - Centre Technique Forestier Tropical (France) DEFC - Direction des Eaux, Forets et Chasses (Senegal) FAC - Fonds d'Aide et de Cooperation (France) FAO - Food and Agriculture Organization of the United Nations IBRD/BIRD - International Bank for Reconstruction and Development/Banque Internationale pour la Reconstruction et le Developpement IDA - International Development Association/Association Internationale de Developpement IEF - Ingenieur des Eaux et Forets IDRC/CRDI - International Development Research Center/Centre de Recherche International pour le Developpement (Canada) INDR - Institut National de Developpement Rural (Senegal) ISRA - Institut Senegalais de Recherches Agricoles (Senegal) ITEF - Ingenieur des Travaux des Eaux et Forets MDR - Ministere du Developpement Rural (Senegal) MES - Ministere de l'Enseignement Superieur (Senegal) NGO/ONG - Non-Governmental Organization/Organisation non Gouvernementale SEEF - Secretariat d'Etat aux Eaux et Forets (Senegal) SERST - Secretariat d'Etat a la Recherche Scientifique et Technique (Senegal) SODEFITEX - Societe de Developpement des Fibres Textiles (Senegal) SODEVA - Societe de Developpement et de Vulgarisation Agricole (Senegal) UK - United Kingdom UNDP/PNUD - United Nations Development Programme/Programme des Nations- Unies pour le Developpement UNSO - United Nations Sudano-Sahelian Office USAID - United States Agency for International Development (USA) VITA - Volunteers in Technical Assistance/Voloutaires d'Assistance Technique WFP/PAM - World Food Program/Programme Alimentaire Mondial FISCAL YEAR July 1 - June 30 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  SENEGAL FORESTRY PROJECT STAFF APPRAISAL REPORT TABLE OF CONTENTS Page No. BACKGROUND ............................................... 1 A. Project Background ........................................ 1 B. The Rural Sector ........................ . ... .......... . 1 C. The Forestry Subsector ........................... ......... 3 Natural Forest Cover ....... . ........... *.*. ............. 3 National Forest Estates and Tree Plantations ....... 4 Role of Forestry in the Economy. 4 Consumption of Forest Products. 5 Exploitation of Forest Products 6 The Task Ahead... 7 Substitutes and Better Uses of Wood. . . . 7 Alternative Sources of Fuelwood . . .......... 0 ............. 8 Forestry Institutions. .. 9 Organization .. 9 Resources ........................................... 9 Training . .9 Research .............................. .......... 10 Ongoing Projects ..10 Objectives and Strategies .il II THE PROJECT AREA .12 Introduction .12 Physical Environnent .13 Human Environment .13 Rural Participation in Forestry Programs .13 Economic Environnent .14 III THE PROJECT .14 A. Objectives and Brief Description .14  TABLE OF CONTENTS (Cont'd) Page No. B. Detailed Project Description ..... .. 15 State Managed Tree Plantations ...... ............... 15 Rural Rainfed Tree Plantations .- ........ - . . 16 Natural Forest Management ... ........... ...... 17 Applied Research Unit ............. e... 18 Trainini, ........ ....... ..... -- ....o........ a DD ae ee@et 18 Planning, Monitoring and Economnlo Studies Unit ........... 18 Studies and Audits ............. o ....... ......... 19 C. Project lmplementation ................. .o............ 20 D. Project Cost Estimates .................... .. 21 E. Proposed Financing . .. .........e... 23 F. Procurement and Disbursemient ............ 25 G. Accounts., Audit and Reports ............... ......... 27 IV ORGANIZATION AND MA2NAGEMENT - ....... ............ 27 A. Org3anizat.ion .......... ...................... ........ 27 B. Staffing ................................ o..29 C. Monitoring and Evaluation ..... ......... 30 V PRODUCTION, IMRKETING AND FINANCIAL RESULTS 30 A. Production .......................... ......e.. oG o 0eo e 30 B. Marketing3. .. ........... .................................. 32 Markets ................ - .............. .. ............ 32 Prices .... ..... ....... 0........ -- ........ 32 C. Income and Financial Results ... ..................... 33 Income .......... ......... . ... - . ......... ......... 33 Rural Community Tree Plantations ......000 0.... 34 Govermaent Cash Flow .... ...... .................. 34 VI BENEFITS AND JUSTIFICATION ......O 0.. .. O 34 A. Benefits ..............e.0e ... 0 ................... 34 Direct benefits ....... e o........ o.. 34 Indirect benefits ........ a 0 C00 35 B. Economic Analysis and Rates of Return ................ . .35 C. Risk and Sensitivity Analysis ...... .................. ... 36 VII AGREEMENTS REACHED AND RECOMI4ENDATIONS . a: O 00000 37  - iii - ANNEX 1 (Tables) I. Total Costs Per Year and Per Component II. Total Costs Per Year and Per Category of Expenditure III. Total Costs Per Component and Per Category of Expenditure IV. Total Costs Per Year and Per Component 1. State Managed Tree Plantations 2. Rural Tree Plantations 3. Natural Forest Management 4. Applied Research Unit 5. Training Center 6. Planning, Monitoring and Economic Studies Unit 7. Studies and Audits V. Yearly Distribution of Project Financing VI. Staff Requirements VII. Machinery and Vehicle Requirements VIII. 1. Direct Costs and Labor Requirement per ha of State Managed Tree Plantations 2. Direct Costs and Labor Requirement per ha of Rural Community Tree Plantations 3. Direct Costs and Labor Requirement per ha of Natural Forest Managed IX. Total Production X. IDA Credit Schedule of Disbursement Xi. Government Cash Flow ANNEX 2 Economic Analysis Assumptions Table 1: Retail Prices of Different Fuels Per Useful KWH Table 2: Comparison of Costs of Production of Charcoal - Senegal and Liberia Table 3: Price and Marketing Structure for Firewood Table 4: Economic Price of Imported Charcoal Table 5: Price and Marketing Structure for Building Poles Table 6: Price and Marketing Structure for Timber  - iv - Table 7: Economic Rate of Return Calculations (i) State Managed Tree Plantations (ii) Rural Tree Plantations (iii) Natural Forest Management Table 8: Sensitivity Analysis Charts 1. Forestry Department Organization Chart 2. Project Organization Chart Maps: Situation Map # IBRD 15131 Project Area Map # IBRD 15132 LIST OF SUPPLEMENTARY TABLES AND ANNEXES (Available in Project Files) 1. Unit Costs Labor, Local Supervisory and Support Staff, Expatriates and Consultants 2. Unit Costs Machinery and Vehicles 3. Unit Costs Nursery and Seedlings 4. Unit Costs State Managed Tree Plantation - Roads, Tracks and Firebreaks 5. Unit Costs State Managed Tree Plantation - Clearing and Land Preparation 6. Unit Costs State Managed Tree Plantation - 7. Production m3!ha Planting and Maintenance 8. Unit Costs State Managed Tree Plantation - Cutting 9. Unit Costs Rural Tree Plantation 10. Unit Costs Natural Forest Management 11. Implementation, Costs and Production State Managed Tree Plantation 12. Implementation, Costs and Production Rural Tree Plantation 13. Implementation, Costs and Production Natural Forest Management 14. Total Project Costs Infrastructure  15. Total Project Costs Machinery and Vehicles 16. Total Project Costs Staff 17. Total Project Costs Operation 18. Economie Analysis 1. Estimate of firewood prices from natural forest 2. Estimate of firewood prices from plantation 3. Estimate of charcoal prices 4. Estimate of building pole prices 5. Estimate of timber prices 19. Working papers 1. Technical aspects of the project 2. Training aspects of the project 3. Economic and Financial aspects of the project 20. Terms of reference  SENEGAL FORESTRY PROJECT I. BACKGROUTND A. Project Background 1.01 In October 1978 the Government of Senegal submitted a request to the Bank to help finance a reafforestation and natural forestry management project and also to help strengthen the Forestry Department of the Ministry of Rural Development. 1/ A joint Bank/CCCE reconnaissance mission visited Senegal in February 1979 and recommended that a forestry project be pre- pared. Since much of the data considered necessary for project preparation was already available, the mission's report was expanded to the status of a draft preparation report issued in August 1979. After further elaboration of the report and detailed review by Government services, IDA, CCCE, and FAC, the Government in November 1979 requested that the project be ap- praised. 1.02 This appraisal report is based on the findings of an IDA/CCCE/FAC appraisai mission consisting of Messrs. J. Gorse and J. Baah-Dwomoh (IDA), J. Bailliez and P. Marset (CCCE), J. Bathany (FAC), A. El Krief (UNESCO) and C. Bailly (IDA Consultant) which visited Senegal in April 1980. The appraisal mission was assisted by Mr. Issa Faye, a Senegalese sociologist/geographer; the FAO representative in Dakar, Mr. J. Dubreuil, participated as an observer. B. The Rural Sector 1.03 Senegal has a total area of about 196,200 km2 and a total estimated population of 5.5 million. The urbanized population represents about 30% of the total, the main towns being Dakar (1 million inhabitants), Thies (120,000) and Ziguinchor (70,000). The urban population is increasing at 4% per year against 2.1% for the rural population (total 2.7%). About 60% of the rural population is concentrated within about 150 km of Dakar in the Centrdl Groundnut Basin. 1.04 Despite poor soils and erratic rainfall, and although its contri- bution to GDP is much lower than in most countries of West Africa, the rural sector remains a key sector in the Senegalese economy. In the last f ive years, the sector accounted for about 35% of GDP; of this contribution, crops accounted for about 60%; livestock, 18%; fishing, 15%; and forestry, 7%. 1/ The Forestry Department is now under the responsibility of the recently created State Secretariat for Forestry and Inland Fisheries (see para 1.24).  Much of the rest of GDP is in the form of processing arid r:rade of commodii ties from the rural sector. The sector also produces about hal