India - Andhra Pradesh Forestry Project

Document of The World Bank FOR OMCIAL USE ONLY Repr No. P-6222-IN MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 55.6 MILLION TO INDIA FOR AN ANDHRA PRADESH FORESTRY PROJECT JANUARY 24, 1994 MICROGRAPHI CS Report No: P- 6222 IN Type: MOP This document has a restricted distribution and may be used bv recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EOUIVALENTS (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 Department ERR - Economic Rate of Return FD - Forest Department FDC - Forest Development Corporation FPC - Forest Protection Committee FRR - Financial Rate of Return GCC - Girijan Cooperative Corporation GDP - Gross Domestic Product GIS - Geographical Information System GOAP - Government of Andhra Pradesh GOI - Government of India ICB - International Competitive Bidding IRR - Internal Rate of Return ITDA - Integrated Tribal Development Agency JFM - Joint Forest Management LCB - Local Competitive Bidding MIS - Management Information System NGO - Non-Government Organization NPV - Net Present Value NTFP - Non-Timber Forest Products PMU - Project Monitoring Unit SOE - Statement of Expenditure TDP - Tribal Development Plan TOR - Terms of Reference VSS - Vana Samrakshana Samiti ITSGCOArl Y1aAR GOI, GOAP - April 1 to March 31  FOR OFCIL USE ONY AHRA PRAESH EFR1ESTRY PROJCT CREDIT AND PROJECT SMARY Aorgomar: India, Acting by its President Exeouting L gAncias: The Forest Department (FD) of the Government of Andhra Pradesh (GOAP) Amnunto: IDA Credit of SDR 55.6 million (US$ 77.4 million equivalent) Zerms; Standard, with 35 years maturity On-lending Terms: From GOl to GOAP as part of central assistance to the state for development projects on standard terms and conditions applicable at the time. Go0 would assume the foreign exchange risk. Poverty Cateaory: Program of Targeted Interventions The population of project main beneficiaries, fringe forest villagers and tribals, belong to the poorest sections of society. These beneficiaries consist to over 50% of scheduled casts and tribes, who are poorer than the State's rural population as a whole. The project also has a set of specific measures so that project activities support the interests of these groups and those of women, such as statutory safeguards for their participation in village forest protection committees, employment preference, training targeting women of fringe forest or tribal villages, and gender-sensitive monitoring. Financing Plan! Lgnal orAia Ttal ------US$ Million-------------- Government 11.7 - 11.7 IDA 70.5 6.9 77.4 TOTAL 82.2 6.9 $9.1 Economic Rate of BAt-urn: 20% Staff Appraisal Report No. 12193-IN IBRD No. 24929 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 Wotid Bank authodization.  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON THE PROPOSED CREDIT TO INDIA FOR AN ANDHRA PRADESH FORESTRY PROJECT 1. The following memorandum and recommendation on the proposed Development Credit of SDR 55.6 million (US$77.4 million equivalent) to India is submitted for approval. The IDA Credit would be on standard terms, with 35 years maturity, to help finance the Andhra Pradesh Forestry Project. 2. Country/Sector Background. India's area covered by forests is about 64 million ha or 19% of the country's land area. Forest resources play an important role in maintaining environmental stability and they are the principal source of timber, household energl, fodder and other non-timber forest products (NTFP). The contribution of the forestry sector to GNP has been estimated at less than two percent, but this does not take into account non-monetary and external benefits, unrecorded harvests of timber and fuelwood, nor the importance of the forests to supporting the livestock population; The productivity of India's forests is generally low and almost half of the forest area is badly degraded. Forest degradation continues with the pressure caused by the rising population and over-grazing. Government is addressing the problems of the forestry sector through policy reform, legislation and afforestation. The National Forest Policy, revised in 1988, gives emphasis to the improvement of environmental stability, preservation of ecological diversity, improvement of soil and water conservation, and an increase in timber productivity and in the area under tree cover. The policy focuses on the use of forests to meet the requirements of rural and tribal populations for fuelwood, fodder and NTFP, whilst encouraging industries to obtain wood raw materials mainly from. farm forestry. While focussing strongly on social and environmental issues, the policy gives less attention to economic considerations. 3. The status of the forestry resources and forestry issues in Andhra Pradesh are very similar to those of the country as a whole. The state has a recorded forest area of 6.4 million ha or 23% of its geographical area. Almost 3 million ha of the forest area is degraded, one half of this being devoid of tree cover. The main issue is rapid depletion of the forest resource in t1.4 face of overwhelming population and grazing pressure. The present incentives and public institutions structure, technological support and regulating policies are unable to resolve this problem. In terms of sustainable production, the understocked forest resource is able to satisfy only a fraction of the wood required in the state. 4. India's forest administration was established more than a century ago to protect the forest resource against people's encroachment to preserve it for industrial use and nature conservation. However, this approach is no longer working well and remaining forest areas and new forest plantations will need to be protected and managed through cooperation with the local population to stay intact. Although state forest departments have had considerable freedom to renew themselves in order to adapt to changing needs, most have not done so sufficiently, including the Andhra Pradesh Forest Department. As a result the  2 department cannot adequately respond to current needs of an impoverished and growing rural population, the need for forests to meet environmental goals, nor the increasing requirements of the industrial sector. The complementary role in the forestry sector's development by private farmers has also not well taken off, neither are the potential roles of commercial companies, NGOs and local institutions sufficiently recognized by government. Felling and transport regulations pose disincentives to private forestry which in some locations competes with underpriced produce from public lands and often lacks quality planting materials, technology packages, marketing support and credit. Andhra Pradesh still has a rich and diverse flora and fauna in its forests, but there is no well-defined con3ervation strategy. The Andhra Pradesh government has recognized that major changes in the forestry sector are needed; particularly its approach to forest management and protection needs to be modified. 5. Lesains Learned Prom Previoun Bank Operations. Over the past 15 years the Bank has supported ten projects in the field of forestry and resource conservation in India with lending in the amount of about US$ 500 million equivalent. It has assessed the experisnces gained through project supervision, project completion reports and sector reviews (Bank-wide [1991], Asia regional 11992], as well as India-specific [Report No. 10965-IN, 1993]). 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 and they did not cover the designated forest lands, i.e. the government's forest estate. Many of the projects encountered implementation problems causing delay in disbursements and completion due to slow project mobilization, institutional weaknesses and insufficient local funding. The major lesson from the earlier generation of projects was that the programs were inadequate in scope to address the complex issues affecting fozests. Other important lessons include a need for: increased forest productivity through improved plant propagation and extension services; revitalization of production-supportive forestry research, particularly applied research at the state level; more emphasis on the planning, management and environmental dimensions of existing natural forests and plantations, as well as monitoring; solutions to the problems of common property rights through a better local participation process and well-defined benefit sharing arrangements; inter-agency coordination in the execution of the various project components of the more comprehensive projects; and redefinition of the role of government and revision of the restrictive regulatory policies to pave the way for private and public investments in the forestry sector. 6. Recently two statewide and sectorwide forestry projects were approved by the Board, in which the above lessons have been taken into account and investments are linked to reforms of the state's forestry institutions and policies: The Maharashtra Forestry Project (Cr. 2328-IN, 1992) for an amount of SDR 88.9 million and the West Bengal Forestry Project (CR. 2328-IN, 1992) for SDR 24.4 million. While the Bank has no experience in forestry in Andhra Pradesh, the proposed operation would build on the same concept while adapting to the particular situation in Andhra Pradesh.  3 7. Cougtry AssistanSe StrategY and Rationale for Bank InvolYvment. The Bank's overall assistance strategy to the rural sector in India is to support policies and investments that promote economic growth and poverty alleviation in a context of macroeconomic restructuring. The emphasis is on (a) efficient resource allocation, (b) increased efficiency in the public sector and (c) appropriate targeting and delivery of support systems to the rural poor. The strategy promotes sustainable programs in agricultural production and forestry, that will help to alleviate poverty in the most backward areas. The Bank's current strategy to specifically support forestry in India is two- pronged: (i) state-level forestry development in a comprehensive manner, which would support the participation of relevant public and private 'actors' in the forestry sector and integrate forestry more closely with agriculture and livestock; and (ii) capacity strengthening of technical and educational institutions of the center and in states to provide efficient forestry research, education and training. The proposed project fits well within this strategic framework and is in line with Bank overall policy for the forestry sector. It would target the rural poor, i.e. predominantly fringe forest dwellers and tribal peoples of Andhra Pradesh. The investment component would emphasize an ongoing policy dialogue concerning key forestry issues. The project would also promote participatory forest management as an approach to forest management and conservation in Andhra Pradesh that is effective and sustainable. The project design and the implementation process are also consistent with the Bank's Operational Directive (OD 4.20) which deals with indigenous people (tribals). The project would also parallel the state-by- state approach followed in current Bank-supported agricultural and irrigation development projects in India. 8. Project Objectives. The proposed project's main objectives are to increase forest productivity and quality, protect the environment, and alleviate rural poverty, as well as streamline/strengthen sector policies to be consistent with these objectives, so that the process of continuing degradation of the state's forests will be reversed. This would be achieved by: (i) introducing local people participation in management and protection of public forests; (ii) increasing productivity of designated forest lands and other marginal lands; (iii) maintaining and improving biodiversity; (iv) increasing private participation in sector development; and (v) improving public forest management and development. Through these activities the project would also increase the subsistence and incomes of fringe forest populations many of whom are tribals or belong to the weaker sections of society. 9. Pr6ject :gesriltinn. The project would be implemented over a six-year period and would cover the entire State of Andhra Pradesh. The project has two interlinked parts: Firstly, the sector reforms that address the key sector issues (paras 4 and 5 above) and aim to introduce viable institutional arrangements and technology improvements, and to eliminate policy constraints in the development of the forestry sector in the state; the first phase of the project would concentrate on these sector reforms, including the building up of technical support for physical project implementation. A Policy Statement, including a Policy Reform Program for the forestry sector, agreed with IDA, has recently been issued as a Government Order by GOAP which has confirmed its commitment to carry out the reform program. Secondly, a set of investment  4 activities mainly related to land treatments on degraded land, which would also start in the project's first phase, but the larger part of which would take place in the project's second phase. 10. The project would have three main investment components, each of them breaking down into sub-components, as follows [estimated base costs and shares of total project base costs are in brackets]: (a) Forest management investments, consisting of forestry works for regeneration and rehabilitation development of about 355,000 ha of degraded forest lands and other wastelands [US$ 47.6 million - 56.6% ]. (i) Participatory rehabilitation of about 173,000 ha of forest lands under joint forest management arrangements between local populations and the Forest Department [US$ 18.5 million - 22.1%]: (ii) Production forestry, covering mainly regeneration works on about 104,000 ha of forest lands by the Forest Department (83% of this area) and the Forest Development Corporation (17%) - [US$ 20.8 million - 24.6%]; and (iii) Forestry development on about 77,000 ha of lands outside designated forests, consisting of smallholder farm forestry (45% of this area), and tree planting on community wasteland (16%) and contiguous private wastelands (39%) - ET' $ 8.3 million - 9.9%]. (b) Special action programs, including several key activities that have been identified for strengthening under the project in support of the above main investment components and sector reform program [US$ 27.1 million - 32.3%]. (i) Technological improvements in plant propagation and associated forestry research [US$ 9.0 million - 10.7%1; (ii) Support to the joint forest management process through training, planning, and funding to NGOs who would assist with joint forest management fUS$ 5.2 million - 6.2%1; (iii) Improvement of wildlife and Protected Areas management [US$ 6.5 million - 7.7%]; (iv) A collaborative fodder program, consisting of support to adaptive fodder research and fodder development on degraded forest land [US$ 0.4 million - 0.5%]; and (v) A Tribal Development Plan, under which funds would be provided for non-forest activities, complementary to the joint forest management program, to tribal groups in the  5 state [US$ 6.0 million - 7.2%]. (c) Service support for the Forest Department, comprising buildings: vehicles and equipment; training of staff; studies and technical services for institutional development, the development of information systems and forest surveys; and production of forestry educational material; as well as a small support component for the Forest Development Corporation [US$ 9.4 million - 11.1%]. 11. kPr6jgt l Anlementati6L. The project would be under the overall control of the Energy and Forests Department (EFD) of GOAP as the nodal executing department. The main executing agency would be the Andhra Pradesh Forest Department (FD) which would coordinate the project activities with fringe forest villagers, tree farmers and NGOs (which are important partners in the project) and other concerned governmenr. agencies. Significant involvement would come from the Forest Development Corporation (FDC), the Tribal Welfare Department, the Animal Husbandry Department and to a lesser degree from the Department of Agriculture. The proposed project is designed to tie in with the existing NGO networks in the state originally created for forestry activities with people involvement in the course of bilaterally financed, social forestry projects. Such links are one of the key factors to ensure success of the participatory process which would be closely monitored during project supervision. Furthermore, no field investments in joint forest management (JFM) would be supported prior to agreement on a site-specific forest management plan with the villagers in each particular location. Since this component constitutes almost 40% of the field investments for forestry treatments under the project, it is a powerful incentive for the forestry administration to take participatory forestry seriously. 12. The total project cost is estimated at US $ 89.1 million equivalent, with a foreign exchange component of US $ 6.9 equivalent (8%) and taxes estimated at about US $3.1 million equivalent. IDA would finance SDR 55.6 million (US $ 77.4 million equivalent, 90% of the total costs, net of taxes, covering 100% of the foreign exchange and 89% of local costs, net of taxes.) Retroactive financing is provided up to an amount of SDR 1.44 million (US $ 2.0 million equivalent) for expenditures incurred after March 31, 1993 to accelerate project implementation, particularly for support to be provided to FD and NGOs in beneficiary group formation, early improvements of nurseries, and initiation of several important studies and technical services. A breakdown of the project costs and the financing plan are in Schedule A. Amounts and methods of procurement and disbursements, and the disbursement schedule are shown in Schedule B. Project Completion Date is March 31, 2000 and Closing Date is September 30, 2000. A timetable of key project processing events and the status of Bank group operations in India are given in Schedules C and D, respectively. A map showing the forest areas in Andhra Pradesh is also attached. The Staff Appraisal Report No. 12193-IN of January 24, 1994 is being distributed separately. 13. Sust inability. The project is designed to set in place a system of managing public forests jointly with local populations, which would ensure that forest areas regenerated under this system have a good chance of high  6 productivity and long-term survival. This process is envisaged to lead to a reduction of forest degradation and ultimately to an improvement in the conditions of the state's forest resources. Increases in productivity, expected to be substantial in all components with investments in forest management, would reduce the pressure on remaining forests and at the same time improve the prospects for farm and plantation forestry. With a restructured and retrained forest administration Andhra Pradesh would be better placed to plan and manage its forests, and with an improved regulatory framework villagers, farmers, and the private commercial sector would have more incentives for participatl4ng in asset-building forestry activities. 14. Agreed Actions. The main assurances obtained from GOI and GOAP during project negotiations relate to the proposed institutional, technical and policy roforms, as these reforms will essentially constitute the operational framework for the project's implementation. These actions are summarized as follows: InatitutioAal: (a) GOAP shall carry out the Tribal Development Plan in a manner and timetable agreed with IDA; (b) GOAP shall, not later than March 31, 1995, complete and discuss with IDA the institutional development study and thereafter implement the results in accordance with a time-bound action plan agreed with IDA; (c) GOAP shall (i) select staff for overseas training under the project in consultation with IDA, (ii) upon completion of such training, post such staff for at least three years in areas in which such training was received, and (iii) ensure that research staff remain in post for at least five years; (d) GOAP shall complete, not later than December 31, 1994, in consultation with IDA (i) the transfer of the required forestry staff to the Wildlife Wing of FD, and (ii) the staffing of the Planning Cell of the Wildlife Wing; (e) GOAP shall make available to FDC land of adequate site quality in blocks of suitable size, and to be selected in accordance with criteria agreed with IDA, for implementation of the high-yield planting program under the project; and (f) GOAP shall select NGOs in accordance with procedures and criteria agreed with IDA to assist in carrying out the project. Tqchnical: (g) seedlings used for the project shall be suitably culled in the existing nurseries; (h) GOAP shall appoint consultants acceptable to IDA, not later than June 30, 1994, to assist in the design of the research program and in plant propagation and (i) shall discuss with IDA, not later than October 31, 1994, the resulting program and promptly thereafter implement the program; (j) GOAP shall complete, in consultation with IDA, not later than September 30, 1994, the study for the development of the integrated protected areas network; (k) GOAP shall, in consultation with IDA, [a] not later than December 31, 1994, complete the overview forest inventory; (b] not later than June 30, 1995; (i) complete and operate the management information system, and (ii) install the geographical information system; and tc] not later than December 31, 1995, complete, under principles agreed with IDA, the design of new-type working plans for managing the forest estate, and shall thereafter initiate their implementation; and (1) GOAP shall carry out the field investments in each location under the JFM component 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. Policy: (m) GOAP shall ensure that (i) JFM benefit sharing arrangements agreed between the villagers and FD shall be adhered to and shall not be changed without prior approval of IDA, and (ii) joint accounts between the villagers and FD will be used for JFM  7 field investments; and (n) GOAP shall {i) ensure that seedling distribution shall follow a policy agreed with IDA and (ii) adjust the seedling prices every year to cover the full production costs. Other: (o) GOAP shall, by December 31, 1996, undertake in collaboration with GOI and IDA, a mid-term review of the project and thereafter implement its recommendations; and (p) GOAP shall implement a system satisfactory to IDA for channelling the funds required for the project to the entities carrying out the project. 15. Agreement was also reached at negotiations that the appointment of consultants, acceptable to IDA, for (i) the preparation of an institutional development study to assist in the restructuring of the forest administration and (ii) developing the management information system and the geographical information system are conditions of Credit effectiveness. 16. Environmental Impact. The environmental classification for the project is category "B". The project would be very beneficial for the environment. It is heavily oriented toward environmental improvement through local community- based protection of forest areas and vegetative soil and moisture conservation measures. The protection of any forest land will depend much more on a contented fringe population than on legal prescriptions. Specific proposals for wildlife and biodiversity, as well as for fodder development are also included. The project investments would not necessitate resettlement. An environmental impact review was carried out and the findings and recommendations have been taken into consideration in the project design. Forestry activities, especially the treatment practices, have been reviewed from all relevant standpoints: silvicultural, socio-economic, soil and moisture conservation, livestock and fodder, and biodiversity. The Tribal Development Plan, the formulation of which was closely linked to the environmental impact review, would ensure that tribal populations receive project benefits in a culturally compatible way. 17. Xnstftuti6nal IMopot. The project is expected to foster a major change in existing 4!orest policy from enforced forest protection to cooperation with local communities, a feature that is gaining ground both inside and outside the State of Andhra Pradesh and to which GOAP is strongly committed. The project would leave the state with a streamlined and modernized forest administration, improve cooperation between the latter and other public sector departments or agencies, and improve the role in forest development by the private sector and NGO's. 18. Impant on Women. Women are the predominant collectors of fodder, fuelwood and NTFPs and would benefit considerably from the project. The proposed JFM forestry treatment practices would significantly enhance availability of many forest products that are collected to provide household subsistence and secondary income. Effective participation of women in JFN would be critical to curb illicit removals and to secure sustained management in the resource. To facilitate the efforts to mobilize women the project would involve NGOs in the formation of village protection committees in which women would be full members. Women's village sub-committees would be established for managing NTFPs. FD staff would undergo gender sensitization training, an women would be given empowerment and management training. The efforts to incorporate  8 women in all aspects of the project would be supported by a new FD hiring policy to encourage recruitment of women as forest guards, foresters, and range officers - currently staffed 100% by men. 19. Pro2ram Objectiva CatAgorias. The project is highly relevant to the Bank's anti-poverty strategy in India. Most of the beneficiaries live around or within forest areas. Fringe forest dwellers, including many tribals, tend to belong to the weakest section of Indian society. Special safeguards are put in place so that project activities take into consideration the interests of these groups (landless, women; scheduled casts; tribals) which would constitute over 50% of project beneficiaries. NGO involvement in formation of local forest protection committees and in development of forest management microplans would ensure that the needs of these groups would be heard and taken into account. 20. ProjAct Bengfita. The project would improve management and protection of nearly 400,000 ha of land (including non-forest land based activities under the TDP) and would directly or indirectly increase the production of wood, NTFPs and animal products, which would benefit primarily disadvantaged sections of the rural population. About 700,000 househoLd of fringe forest dwellers and small farmers, including about 150,000 tribal h-ouseholds, would receive direct benefits from the project. About 80 million work-days of employment would be generated in forest rehabilitation works, a benefit which would be principally captured by the poorest and landless households. Processors and marketers of wood and NTFPs would benefit from increased supply of raw material. Most forest treatment practices, which constitute the main investments under the project, yield satisfactory or better financial rates of return. Returns to villager-treefarmers from treatment practices under JFM are for the most highly attractive. The economic rate of return for the project as a whole has been estimated at 20% over 30 years. The ERR is only moderately sensitive to variations in the cost or benefit streams. The project would also generate significant non-quantifiable benefits, such as: reduction of soil degradation water run-off both on public and private lands and associated downstream positive effects on rural production; biodiversity conservation in protected areas; enhanced efficiency of the forestry administration; and elimination of sector policy distortions, leading to a more efficient allocations of resources, thereby increasing private sector involvement in forestry development. 21. Riska. The main risks facing the project are (a) the degree of commitment within some parts of participating GOAP departments to make the necessary institutional and policy reforms envisaged in the project; (b) the effectiveness of people's participation in forest management and development for the sustained management of common and public lands; and (c) parts of northern Andhra Pradesh experience unrest from naxalite groups, which may 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 GOAP, and through assurances. The project endeavors to minimize the second risk by including comprehensive training for FD staff and villagers in JFM principles and practices, building links with NGOs and other government departments involved at the village level, and by rigorous  9 monitoring of the process. As JFM takes hold local populations would be expected to become more inclined to work with the FD, which would indirectly reduce the third type of project risk. 22. ndAfl(iAatinf. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association and recommend that the Executive Directors approve the proposed credit. Lewis T. Preston President Attachments Washington, D.C. February 24, 1994  10 9 MAtimated Projaat C!st and Einancing Plan (US$ million) Local Foreign Total Rntimatad Project nosts: Forost Management Participatory Forest Rehabilitation 17.6 0.9 18.5 Production Forestry 19.6 1.2 20.8 Community & Farm Forestry 7.9 0.4 8.3 Special Action Programs Research & Plant Propagation 8.2 0.8 9.0 Joint Forest Management 4.6 0.6 5.2 Biodiversity Conservation 6.0 0.5 6.5 Collaborative Fodder Program 0.2 0.2 0.4 Tribal Development Plan 5.7 0.3 6.0 Forest Administration Support .s. QLA Base Cost 78.3 5.8 84.1 Physical Contingencies 5.3 0.4 5.7 Price Contingencies .LA .Q. -Q. Total Project Costl 82.2 6.9 89.1 Pinanning Plan: Government 11.7 - 11.7 IDA 70.5 6.9 77.4 TOTAL 82.2 6.9 89.1 1/ Including taxes and duties equivalent to US$ 3.1 million.  Page 1 of 2 .)r!PA. PRAfl3AW WFl!RSR PROJIv (us$ million) w-^s= Mt%f %o%fd Total Project Element LCB LCB Other Costs 1. Plantation Costs 4.4 49.0 S3.4 (4.0) (44.1) (48.1) 2. Civil Works 2.1 Buildings 4.2 1.9 6.1 (3.5) (1.6) (S.1) 2.2 Other Works 6.9 6.9 (5.9) (5.9) 3. Constr'lotion Materials 1.9 1.9 for Force Account (1.5) (1.5) 4. Goods 4.1 Laboratory, Communication * 1.2 0.4 0.1 1.7 Computer Equipment (1.2) (0.3) (0.1) (1.6) 4.2 Satellite Imagery and 0.15 0.15 Areal Photography (0.12) (0.12) 4.3 Books and Periodicals 0.4 0.4 (0.3) (0.3) 4.4 Clonal Seedlings and Seeds 3.7 0.05 3.75 (2.85) (0.04) (2.89) 4.5 Other Equipment 3.1 1.3 4.4 (2.4) (1.0) (3.4) 5. Vehicles 0.7 0.3 1.0 (0.7) (0.2) (0.9) 6. Consultancy and Training 6.1 Overseas Consultancy 0.7 0.7 (0.7) (0.7) 6.2 Local Consultancy 0.9 0.9 (0.9) (0.9) 6.3 Training, Seminars & Workshops 4.2 4.2 (4.2) (4.2) 7. Miscellaneous 7.1 Incremental Recu rrent Costs 3.6 3.6 (1.8) (1.8) Total 1.9 15.8 71.4 89.1 (1.9) (13.0) (62.5) (77.4) Note: Figures in parenthesis are the respective amounts financed by the IDA Credit. *OtherO methods include force account, direct contracting and local and international shoppinq.  12 Page 2 of 2 Pr6ocuXAmnt Mathod and n{Jbur-mAntg (US$ million) amant nf t~~ Of R pAndit'urem crAdit all=.te to be Wina,ied (1) Plantation Costs 90% (a) for Part A.2 (ii) (b) of 10.5 the Project (b) for other Parts of the Project 34.2 (2) Civil Works 10.2 85% (3) Goods 10.0 100% of foreign expenditures, 100% of local expenditures (ex-factory cost) and 80% of local expenditures for other items procured locally (4) Consultant's Services and Training (including NGOs services) 5.4 100% (5) Incremental Operating Costs 1.7 60% until March 31, 1996, 50% until March 31, 1998, and 40% thereafter (6) Unallocated 5.4 Total 77.4 EaLimated Disburaemm=t: Eiscal Yearx FXSA EYi EYx2i