Morocco - Supplemental Project to the Integrated Forestry Development Project (GEF)

Report No. PID11529 Project Name MOROCCO-MOROCCO: SUPPLEMENTAL PROJECT TO THE INTEGRATED FORESTRY DEVELOPMENT PROJECT (GEF) Region Middle East and North Africa Region Sector Forestry (80%); General agriculture; fishing and forestry sector (20%) Project ID P068904 Borrower(s) KINGDOM OF MOROCCO Implementing Agency MINISTaRE CHARGe DES EAUX ET FORoTS MinistOre Charge des Eaux et Forots Address: Quartier Administratif, B.P. 607 Rabat, Rabat Morocco Contact Person: Mr. M. Anechoum, The Secretary General Fax: 212 37 76 84 96 MinistOre Charge des Eaux et Forots Address: Quartier Administratif, B.P. 607 Rabat, Rabat Morocco Contact Person: Mr. M'Hamed El Idrissi, Division Chief for Forestry Exploitation Fax: 212 37 76 26 94 Environment Category B Date PID Prepared December 13, 2002 Auth Appr/Negs Date January 15, 2004 Bank Approval Date September 15, 2004 1. Country and Sector Background Morocco's geographic location and the importance of its mountain chains, some of which reach above 4000 m, give it a wide variety of bio-climates as well as an important biodiversity and ecology. State forest lands cover 9 million hectares of which 5,8 million hectares are forests, including scrub-land and bushes and the remaining 3,2 million are Alfa grass (AlfatiOres). The forests are generally in a mediocre and deteriorating condition. The most valuable forests have largely been cleared and those that remain are old and in poor condition. Production does not meet national demand, and techniques are rudimentary, leading to loss of value. The needs of local people in forest areas for firewood, grazing and other forest uses have led to degradation of the herbaceous plant cover and to over-exploitation of woods and pastures. As a result, soil erosion and siltation of dams is high. Forest degradation, the environment and society. The deteriorating situation of forests and the environmental and sustainability issues that stem from it can be attributed to population pressure, both for exploitation and for conversion to farm land, and to the lack of a policy and institutional framework to deal with the growing pressures. An  additional negative impact from the deteriorating vegetative cover is the resultant reduction in carbon storage which, if allowed to go unchecked over large areas and extended periods will reduce the environment's ability to control greenhouse gas emissions (GHG) which in turn contributes to global warming. This issue, although it goes beyond the National level, is becoming an objective of worldwide importance and many Governments are taking appropriate measures to help the global objective to reduce GHG. Outdated legal texts. The forestry sector is governed by a high quality set of technical and legislative texts, but these texts do not reflect the new reality of the need for management of the relationship between local populations and the forests on which they are dependent. These texts need to be reviewed and changes made in order to create adequate incentives and increase the collaboration of local communities. Biodiversity degradation. A significant part of Morocco's rich biodiversity resource is situated in forest areas, which are degrading under population pressure. More generally, biodiversity is threatened by habitat transformation, and land degradation. The proposed Bas Draa National Park, which will be supported under the project, is a typical example of threatened biodiversity. It has unique Saharan ecosystems, culture, cultural sites, flora and fauna. Principal threats to biodiversity in the area are habitat transformation and poaching. Though no people are living in the park, the population in surrounding areas is increasing. The lack of legal status for the park and lack of an appropriate management plan that includes the local people leave the environment very vulnerable. Poaching in the park has recently become so intense that there are reports of the disappearance of ungulate species present in the park a few years ago. Government Strategy In response to growing rural poverty, the objectives of equity and inclusion have been repeatedly stressed by King Mohammed VI and have become integral parts of the Government's program. The 2020 Rural Development Strategy provides the operating principles to achieve these objectives: decentralization, integration and participation. The National Forestry Plan applies these principles to sustainable management of forest resources in the common interest. The main new approaches adopted are : a decentralized approach, in which decisions on programs and budgets are delegated to lower levels, closer to the field an integrated approach, in which the needs for sustainable forest management and environmental protection are matched with the need for the economic and social development of the populations of the area. a participatory approach, in which the recognition of mutual interests and rights is completed by the development of mechanisms for giving local populations a say in decisions a partnership approach, in which the MWF works together with other agencies (particularly Agriculture, Equipment, and social ministries) and with civil society (national and local NGOs) Government has begun piloting these approaches - a good example is the Bank-financed Lakhdar project, and also the European Union-assisted - 2 -  project in Chaefchouan. The lessons from these experiences are beginning to come in and will be incorporated in the design of the proposed Project. In addition, the Government would like the proposed Bank-assisted project to go beyond simply operationalizing the strategy to developing measures that will institutionalize it and provide for sustainability. This will include measures to ensure financing of the sector, and development of legal and policy instruments. These issues would be taken care of through a phased approach which allows the Government to progressively plan for its financial and human resource needs. With regards to biodiversity management, the Government prepared a National Strategy for Protected Areas (NSPA) in 1996 which is serving as the basis for biodiversity conservation in protected areas. The strategy lists five priority objectives to be achieved in 20 years (presented in Section Al), with three priority objectives of: (i) improved socio-economic conditions of the rural populations; (ii) protection of the country's biodiversity; and (iii) increased forest based services for use and enjoyment by the urban and rural populations for achievement in the first five years. Improved protection of biodiversity was also identified as one of the five key objectives in the National Forestry Plan (NFP). Several projects are under implementation as a result of these strategies, the most recent being the Bank-implemented, GEF-assisted Protected Areas Management Project. The proposed Bas Draa component would increase representation of ecosystems covered in Morocco's national parks by including a Saharan ecosystem. 2. Objectives The first phase of the project would support three key development objectives, which are to: (i) build institutional capacity for developing and implementing the programs. Particular emphasis is on communication, the participatory approach, and the legal and institutional changes that will encourage the pairing of sustainable forest management with the socio-economic development of the local population. The main institutions concerned are the Ministry of Forestry and Water (MWF) under the Ministry of Agriculture, Rural Development, Water and Forests (MADREF), participating organizations and beneficiaries; (ii) improve the living conditions of local people in three important forested areas where the participatory and partnership approach will be developed; and (iii) (under a GEF-assisted component) set up the proposed Bas Draa national park, a site of international importance for its biodiversity, and where the participatory and partnership approaches will also be applied. 3. Rationale for Bank's Involvement Bank support to this project is part of an agreed approach between GOM and the Bank in which the Bank finances activities which: (i) have a direct link to rural poverty alleviation; (ii) have strong links to longer term and inter-sectoral issues where the Bank's in-country knowledge can add value; (iii) can leverage a subsequent large-scale national program; and (iv) call on specific global expertise that the Bank possesses. Bank support to the rural sector is based on the 2002 strategy. By mobilizing financing (PHRD) and providing advice throughout, the Bank played an important role in the preparation of this strategy. -3 -  Based on this shared strategy, GOM requested Bank support for the development of three integrated rural development operations (see Al above), which are all the first phase of longer term programs. All three operations share the same poverty-targeted, community-driven and integrated (inter-sectoral) approach, and Government sees Bank value added as significant in ensuring consistency of approach, as well as coherent learning and capitalization of these experiences in subsequent phases. In addition, Government expects that Bank involvement will improve the inter-sectoral linkages to the full range of rural poverty alleviation measures (such as BAJ, rural infrastructure programs, and the Agence de Developpement Social). GEF global support. GEF by supporting the proposed project contributes to the sustainable utilization of the park's resources rather than supporting a "do no harm" scenario. Under the baseline scenario, it is expected that the current trends in biodiversity loss and environmental degradation would continue. Poaching, which has greatly contributed to the diminution and/or loss of important fauna would continue or escalate, particularly given the development of a major road network in the area. Without a formal park management structure, and a legal statute to re-enforce the importance of conservation in the park, this phenomenon is likely to continue. Furthermore, GEF would also contribute to collecting pertinent information on the socio-economic and biological assessments of key stakeholders in the park, through its provision of funding for studies that enhance knowledge of the key parameters of the project. The information will be used to prepare an integrated management plan based on which sustainable management practices for the park would be developed. By financing activities that closely complement those of the PAM, GEF contributes to developing management techniques that are replicable on a country-wide basis, and/or regionally. 4. Description Project Areas. Overall, 18 rural communes in the central, middle Atlas and the northwest regions of Morocco have been identified as potential project areas, not including the Bas Draa area. The area covered by the 18 communes is approximately 500,000 hectares and contains approximately 130,000 inhabitants, and that covered by the proposed national park is approximately 175,000 ha. The agro-ecological, ecosystem and sociological variations in the proposed intervention zones significantly influence their development potential. A brief description of the development potential for each of the regions is presented below: Middle Atlas Region. The second area is in the eastern High Atlas in the circle of Midelt, in the province of Khenifra covering 90,000 ha in five communes in the watershed of Haute Moulouya. The area covers approximately 190,000 ha, of which only 15,000 ha is of high agricultural potential and 85,000 ha is pasture. The population of the area is approximately 30,000 people. Pasture development will be the main activity. Special emphasis will also be placed on improving the standards of living in this mountainous area where the socio-economic indicators are relatively low. Northwest Region. This project zone would include five communes in the province of Khemisset in the Oulmes region. The target zone would cover - 4 -  approximately 60,000 ha, including an area that has been identified as a potential natural reserve. The northwest zone also contains the important Maamora forest, an important site for the production of quality cork oak. Among the main activities will be technical and market development for cork oak and thuya. Central Region. The proposed project would be implemented in four communes of Beni Mellal and Azilal provinces covering 70,000 people and an area of approximately 140,000 ha, of which 30,000 ha have high agricultural potential and 70,000 ha are forest massifs. This area is important for the development and optimization of wood energy. Proposed Bas Draa national park. The proposed Bas-Draa National Park situated on the northern part of the Sahara, lies between the provinces of Tan-Tan and Assa-Zag, in the south-west of Morocco and it is approximately 175,000 ha. The climate in the park is dry and the Draa river that runs through the middle of the park is dry outside the rainy season, limiting the potential for development to aspects such as pasture development and eco-tourism. The components described below are preliminary and could be substantially altered during project preparation. Because the project provides for participatory programming of many investments to respond to local community demand most of the investments listed are intended as an "indicative menu" which could be changed based on community demands and needs. In addition, it is very likely that not all of the components and or activities presented here would be implemented under the first phase. It is also likely that activities such as those under infrastructure development or water resources management could be implemented through partnerships with other agencies and not necessarily fall under the responsibility of MWF. These clarifications would be made once the project is better defined during preparation. Of importance though, will be the project's emphasis to invest in activities that will result in a high impact for the local communities and for the forestry administration. Component 1. Institutional Strengthening ($XX). This component would support capacity building in MWF and in the participating agencies, NGOs and local communities to carry out project and program activities. Four potential subcomponents would be financed: Human resources development to increase the skills and capacity of MWF forestry staff and partner implementing agencies, with particular focus on the skills needed to implement the new strategy (including topics such as legal, economic, sociological and environmental skills). The subcomponent would finance four key activities: (i) the development and implementation of a career development and technical training program; (ii) improvement of the curriculum in professional forestry education, including a curriculum review and the development of training modules on socio-economic and rural development; (iii) seminars, workshops, specific and targeted training and other capacity building measures for partners involved in the project; and (iv) consolidation of the participatory and partnership approach, including the provision of consultancies and training in the use of the methodologies adopted. Improved information and communication systems for sector and program management. This sub-component would: (i) set-up an information network - 5-  system to permit the administration to monitor the evolution, management and contribution of forests to socio-economic development at the local and national levels, as well as permit knowledge based planning of development activities; (ii) contribute to the development and implementation of a forestry database and a geographic information system; and (iii) assist MWF in monitoring activities implemented by other agencies. Institutional studies. This sub-component would support three institutional studies: (i) the re-organization of the forestry sector to enhance its efficacy and effectiveness in achieving its development mandate in a decentralized environment; (ii) renewal of forestry related legislation, particularly on issues related to the socio-economic development of forest dwelling populations, increased empowerment of local communities and the promotion of grassroots organizations, partnership, involvement of the private sector; and (iii) identification of financing alternatives for the forestry sector. Component 2. Integrated rural development ($XX). This component will aim primarily to promote integrated rural development in the forestry and peri-forestry zones while improving the socio-economic conditions of the local communities in these areas. As such, the component would support the development, adaptation and dissemination of improved technical packages in forestry, agriculture and pasture development. Several activities would be of national or general scope, but most would be focused on the project areas described above, as part of the integrated rural development approach to forest management. In addition, the component would also support the development of off-farm activities to improve household revenues and reduce pressure on the natural resources, and rural infrastructure to improve access and living standards. This component will employ a participatory approach that permits local communities to express demand for activities of their choice. In addition, NGOs and other local level partners will be identified and partnership instruments such as conventions and contracts will be developed for use during implementation of selected activities. This component would also support biodiversity management in the proposed Bas Draa national park. The component would have five sub-components: Forestry development to improve the status of forests to deliver their environmental, socio-economic and economic functions. Specific activities would include: (i) updating the national forestry inventory; (ii) adaptation and updating of previously prepared management plans for the forests in the High Atlas Mountains; (iii) silvicultural activities; (iv) development of forestry infrastructure, roads and communications facilities, and the establishment and rehabilitation of forestry out-posts; (v) a study to enhance the exploitation and value added of wood production; and (vi) forestry research, to improve the quality of forests and to take into account the dynamics of the resource and the various needs of forest resource stakeholders. This component will be the most important with regards to increasing vegetative cover and hence carbon storage, all of which contribute to reducing greenhouse emissions. The most appropriate option for financing under the bio-carbon fund would be developed during project preparation. Agriculture and pastoral development to improve the quality and quantity of agricultural and livestock production in the project areas through: (i) the development and adaptation of improved technical packages for higher - 6-  value added and environmentally sustainable cropping, and the provision of extension services to farmers; (ii) rehabilitation of small-scale irrigation; (iii) arboriculture and soil and water conservation activities; (iv) land improvement, in particular the clearing of rocks and stones; (v) improved pasture and the development of watering points; (vi) support to livestock production, including veterinary services and genetic improvement; and (vii) short-term, high impact agricultural research to adapt existing technical packages for the project areas. Off-farm activities development to increase family income and reduce population dependence on limited forestry and other natural resources. The sub-component would finance the identification and development of off-farm revenue generation activities, emphasizing the participation of women and the young and other disadvantaged sectors of the population. Activities envisaged include the support for: (i) niche analysis to identify viable micro-projects and enterprises; (ii) training of selected beneficiaries, MWF staff and participating agencies in, amongst other things, proposal formulation for presentation to financing institutions and access to credit; (iii) support to market analysis and marketing (participation in fairs, advice for processing/packaging, information on quality standards); (iv) transformation of forestry products, both ligneous and non-ligneous and artisanal activities; and (vi) assistance for eco-tourism development, where there is potential. Rural infrastructure to improve rural infrastructure in the project areas through (i) construction and rehabilitation of rural roads; (ii) potable water; (iii) rural electrification; and (iv) social infrastructure, such as schools and clinics. Some investments would be financed directly under the project, some through the Rural Development Fund, and some through the participating agencies' own programs. These arrangements will be detailed during project preparation. Biodiversity conservation in the proposed Bas Draa national park to contribute to sustainable biodiversity and natural resources management in Morocco, based on rational use and protection of productive natural resources and biodiversity of the proposed Bas Draa national park, the component would fund three activities: (i) capacity building for decentralized natural resources and biodiversity conservation and management, including the development and piloting of participatory mechanisms; (ii) conservation and management of priority natural habitats, focusing on the management and restoration of globally significant ecosystems; and (iii) public awareness and education targeting populations in and around the park to sensitize and explain the roles of the respective park stakeholders in its management. Component 3. Monitoring and evaluation ($XX million). This component would support the development of a project monitoring and evaluation (M&E) system for use by MWF and partner implementing agencies, including the beneficiaries. Beneficiary feedback would be captured through workshops, meetings and other gatherings. In addition to monitoring progress in the project, the system developed would also be used to monitor the achievement of program triggers to determine implementation readiness for follow-up program phases. To ensure that the system developed would be used by the targeted staff, the component would also finance training and capacity building activities for the users. Project and program monitoring indicators, including triggers for -7 -  follow-on program phases would also be developed as part of this component. Institutional Strengthening Integrated rural development Monitoring and evaluation 5. Financing Total ( US$m) BORROWER $3.00 IBRD $10.00 IDA LOCAL SOURCES OF BORROWING COUNTRY $1.00 GLOBAL ENVIRONMENT FACILITY $3.00 Total Project Cost $17.00 6. Implementation Project coordination Central level. Overall project coordination would be the responsibility of the Permanent Inter-ministerial Rural Development Council (CIPDR), and the National Forestry Committee (NFC) at the central level. These bodies would have the particular task of examining the annual programs drawn up and making sure that they are consistent with the strategy and the agreed project. They would also ensure overall coordination between departments and services, as well as facilitating the budget process for the implementation of the program established. The MWF would have responsibility for coordination at the working level. It is well staffed and technically sound and it is supported by various training and research institutes. The MWF also has experience working with the Bank and other donor agencies. Decentralized level. Decentralized coordination of integrated rural development is at the provincial level, where it is the responsibility of the Comite Technique Provincial (CTP) chaired by the Governor. This mechanism has been employed with growing frequency, beginning with the drought alleviation campaigns of 1999-2000, and it has been confirmed in its coordination role under the first two Bank-financed "DRI" projects. The CTP essentially acts as the clearing house where community rural development programs can be put forward and approved and the financing allocated. There is also a process of "regionalization" underway, with powerful walis appointed and technical ministries required to open regional delegations. The relation between regional and provincial level will need to be clarified during preparation. Local level. Coordination at the local level would be by the Forestry Development Center (CDFs), working with local representative structures. These would include the Rural Communes (see below). Project implementation The implementation model proposed in the identification report gives project implementation to MWF at all levels, including its provincial branches (SPEFs) and local level units (CDFs). The report also proposes - 8 -  partnership arrangements with other agencies involved in rural development, such as MADREF for extension, agricultural production and pasture development; Ministry of Equipment and its national programs (PAGER, PERG, PRR) for rural infrastructure; and the ministries for education and health for social infrastructure and programs (including link in to the BAJ, the national program for improving rural social services). The linkages between the various agencies, co-financing and monitoring and evaluation arrangements would be developed during project preparation. National-level guidelines would be issued for this collaboration, and specific provincial level agreements would be established under the authority of the Governor of each province. The proposed set up is as follows: At the central level, a small Project Coordinating Unit (PCU) would be created, headed by the director of the Directorate for Forestry Development (DFD), who would act as the National Project Coordinator (NPC). At the provincial level, the SPEFs would be responsible, with the SPEF Chef as both coordinator and budget manager ("sous ordonnatteur"), and a small coordinating unit staffed by existing personnel. The coordinating unit would be responsible for planning, financial management and monitoring and evaluation. At the local level, the CDFs would be responsible for implementation through a mobile rural development planning and extension support team that will work directly with the local communities on the participatory approach, provide extension services and assist in the implementation of project activities. These teams would consist of two or three animateurs or animatrices, including at least one woman to facilitate the participation of women. Other technical departments would participate (as subject matter specialists) with the mobile teams in the preparation of the Communal Development Plans (see below). At the community level, the role of Rural Communes (RCs) and local villages ("douars") is primordial. RCs are administrative areas, typically comprising about 10-15,000 inhabitants and are the lowest level of local government. They are managed by an elected Conseil Communal (CC) under a President. They typically have limited budgets but in some forested areas they have access to funds from the National Forestry Fund (FNF), receiving at least 20 percent of revenue from the harvesting of forestry resources in their local areas. Although on average this amount is small, it can be substantial in certain communes. RCs and their CCs are more administrative and deliberative structures than development agencies. However, under the Communal Charter (Charte Communal) they do have a development role assigned to them, and it is national policy to enhance this. They do have some limited development capacity and experience (technical staff, negotiations over public projects etc) and in recent DRI projects they have been included, with a role of coordinating and vetting development plans and helping present them to the CTP. Below the RC level are the douars and other "community" groupings. Some development projects (e.g. Lakhdar, PAGER) have started from this level, - 9-  working with local committees of various kinds. How this approach links to the RC level will be explored during preparation. Communal Development Plans. Implementation of project activities would be through the framework of Communal Development Plans (CDP). Depending on the findings during preparation (see above), the CDPs could be prepared at the local (douar etc) level and aggregated at the RC level. They could then be presented to the CTP with the participation of the CC representing the local community. The duration of the CDP, the mechanisms for implementing the CDP, the contribution of the communities, participating agencies and MWF would all be worked out during project preparation. The design would draw on the existing experience with participatory natural resource management in Morocco (including the Bank-financed Lakhdar Project), and other participatory projects, and on the very extensive design work already done for the first two integrated rural development projects being financed by the Bank (see Section AI). The Rural Development Fund (FDR). Financing for integrated rural development is being increasingly provided through the FDR, which is replenished from central ministry budgets. The financing allocated by the central ministries is pooled at the provincial level, and allocated by decision of the Governor (as ordonnateur) to specific programs to be executed through provincial technical departments. The decentralization and management of the FDR at provincial level received strong confirmation from the Prime Minister in the Budget Instruction for 2003, and it is therefore likely that this set up will be sustained. It is already being employed for the first two DRI projects. At least part of the project investments are therefore likely to be financed through this mechanism. The preparation report proposed that the CDPs have two components: (1) general rural development actions to be presented to the CTP for FDR financing; and (2) "project activities" which would be financed directly by MWF. This set up is similar to that adopted for other DRI projects, but final design of the DRI-F project set up will be based on study of the emerging practice and experience. Implementation of the Bas Draa component. The Bas Draa component would have a slightly different structure because: (i) the component would cover a large remote area, approximately 175,000 ha, which calls for additional institutional capacity to implement; (ii) a study has been recently carried out under the Natural Resources Management in Protected Areas Project (AGRN) funded by GTZ on institutional structures for protected areas management; and (iii) biodiversity conservation is the responsibility of the Nature Protection Service (NPS) in the MWF. At the central level, a technical coordinator (TC) would be seconded to the PCU in the Directorate for Forestry Development in Rabat. The TC would be responsible for providing technical support to the implementation team as well as for links between PCU and the Nature Protection Service. At the decentralized level, a small coordination unit would be formed, headed by the Director of the Regional Directorate of Water and Forests ("DREF") in Guelmine. The DREF Director will be assisted by an Assistant Regional Project Coordinator in Guelmine whose function would be to coordinate the day to day project activities in the park. At the provincial/local level, two coordinators would be placed in the provincial headquarters in the towns bordering the park, Assa Zag and Tan Tan. Given the harshness of the climate and its relative isolation in the proposed park, preference for - 10 -  filling the staff positions will be given to personnel who have an interest in or originate from the park area. Financial management arrangements Financial management arrangements would be as required under OP/BP 10.02. For the Bas Draa park component, particular attention will be given to decentralized financial control and most importantly to permitting the park to keep a significant part of its proceeds in a regional revolving fund to contribute to long-term financial autonomy of the park. Because project funds will be from two different agencies, GEF and the Bank it will be necessary to have two special accounts. Accounting and financial reporting. Accounting and financial reporting will be the responsibility of the Accounting and Financial Department (AFD) of MWF. AFD will be responsible for current and specific financial and accounting duties covering all project activities according to the flow of funds and flow of documents analyses. The reports would be transmitted to the Bank through the PCU. SPEFs would maintain simplified accounts and carry out analyses of activities managed under their responsibility. Such reports would be sent periodically with supporting documents to the PCU for transmittal and processing by AFD. AFD would be responsible for aggregating the financial data and issuing the annual project financial statements and twice yearly financial monitoring report as well as their submission to the Bank. Arrangements for how accounting and audit information would be treated for co-financed activities will be worked out during project preparation. Monitoring, evaluation arrangements, and mid-term review. The monitoring and evaluation of project activities will be the overall responsibility of the PCU (M&E Unit). The PCU would receive, compile, evaluate and disseminate information from the SPEFs. In addition, beneficiary communities would also be involved in project monitoring and evaluation at the field level following mechanisms to be developed during preparation. The mid-term review and post-implementation evaluations would be carried out with the assistance of private national consultants under the guidance of the PCU, and with participation of the SPEFs, CDFs and the local beneficiaries. 7. Sustainability The project will contribute to sustainability of project investments through the following actions: (i) adapting and using a participatory approach to improve local community involvement. This is expected to increase the suitability of investments and community ownership of them. The project will use lessons learnt in Morocco and elsewhere to refine the approach used. Increased ownership should translate into improved operation and maintenance of the investments and hence a higher potential for sustainability; (ii) ensuring that the participatory approach used would be flexible, but that it also has a targeting mechanism to take into account the needs of special groups, such as the nomads to increase their participation and derivation of benefits; (iii) facilitating access by local communities to sources of financing to enhance both on and off-farm activities, including the identification and implementation of micro-projects to increase - 11 -  household revenues. Special efforts will be made to integrate women, the young and the landless to participate in project activities. These financing mechanisms should be sustainable and thus available beyond the project period; (iii) reducing forest and natural resources degradation while increasing agricultural production by facilitating the dissemination and adoption of durable technical solutions that are compatible with the specific agro-ecological zones targeted; and (iv) supporting the financial sustainability of the proposed Bas Draa national park by assisting the park to establish a revolving fund so that income generated by the park can be reused for the benefit of the park. 8. Lessons learned from past operations in the country/sector The lessons described here have been derived from the implementation of previous Bank-assisted projects, and also from similar projects in Tunisia where lessons from participatory implementation are particularly instructive. The key lessons are discussed below: Second Forestry Development Project (Ln. 3156-MOR). The Implementation Completion Report (ICR) for this project highlighted three general lessons for forestry development: (i) management of forest resources requires an integrated approach, taking into account the priorities of the local communities, private sector, and the Government; (ii) to this effect, to induce participation, any planned forest operations should contain explicit incentives directed toward each concerned interest; and (iii) with increased budgetary constraints the need for "partnerships" with other entities is becoming more apparent if forestry operations are to be adequately sustained. Encouraging other parties to be involved can reduce both investment and recurrent costs, allowing the government's role to evolve to one where it is more involved in planning and monitoring and evaluation, while the implementation is delegated to local communities and the private sector. Specific key lessons are as follows: (i) project implementation must be based on sustained consultation between MWF (at central and decentralized levels), other ministries, local government, the private sector and the local communities; (ii) the involvement of the private sector in the forestry operations is necessary but requires policy changes to formalize and institutionalize it and ensure sound competition; (iii) for activities which directly benefit the local populations on communal or private lands, their participation, either in money or in kind, must be actively sought and encouraged in all phases of project activities (from identification, implementation, monitoring and evaluation); (iv) M&E must be simple and well coordinated to be effective; (v) training is important to re-enforce key concepts and renew skills with experience gained in implementation; and (vi) forest users must be adequately informed and consulted about "delimitation" exercises to address their needs and avoid conflict. The ICR also contends that, although technically sound management plans are essential, these are dependent on social and economic factors, and therefore have to be based on community consultation and participation. Lakhdar Project. There are a number of important lessons emerging from the Bank financed Lakhdar project which is a pilot project in community based natural resource management. These lessons have been documented as assessed during the project's mid term review, and will be incorporated in the proposed Project design during preparation. The main lessons show the need to take into consideration the following: (i) institutional aspects - - 12 -  the role of different public agencies, the nature and status of grassroots community groups, and the scope for partnership, including with NGOs; (ii) methodology - the importance of appropriate adaptation and use of the participatory approach, including the use of community development plans and annual contracts as a forum through which the local communities can express their demands, and plan implementation and monitoring and evaluation activities; the need for balance between income-generation, infrastructure development and conservation instruments; and (iii) human resources - ensuring the availability of certain key implementing agency staff profiles, re-enforced by significant training. Additional lessons emerging from the project point to the need for modesty with regards to project scope and coverage as participation generally entails slower preparation and implementation; the need to have local communities participate in cash or kind to help foster ownership; and the need to streamline gender into project activities to improve women's benefits from project activities. Forestry Development Projects in Tunisia (LN. 2870-TUN and LN. 3601-TUN). Key lessons drawn from the projects relate to the following: (i) important legislative changes should be made within the framework of broader policy adjustments rather than on an ad hoc basis and (ii) where the utilization of a participatory methodology is new for the implementing agency and the communities involved, a phased approach should be used to allow "learning by doing", and the capacity building measures should include techniques for knowledge-sharing, consensus-building, and conflict-resolution mechanisms. Northwest Development Projects in Tunisia. The first and second Northwest Mountainous Areas Development Projects (Ln. 1997-TUN) and (Ln 3691-TUN). Additional lessons drawn from these projects are that: (i) beneficiary ownership is highest when activities are demand-driven; (ii) people are generally more concerned with investments that result in immediate benefits than with improving environmental and natural resources management, and as such, these investments must be integrated into an overall "package"; (iii) development and adoption of an integrated participatory approach must be accompanied by adequate capacity building activities, particularly training, to ensure that users and beneficiaries understand their respective roles and responsibilities in achieving the desired goals; (v) women extension agents are necessary to ensure women's participation in projects; (vi) it is extremely difficult to reach the young and the landless, this section of the population must be carefully targeted; and (vii) to improve access by local communities to rural credit it is important that the legal framework exists or is in place prior to project implementation. Eastern Anatolia Watershed Rehabilitation in Turkey. Key lessons drawn from the project relate to the following: (i) a participatory project design should focus on process rather than on physical targets; (ii) in rangeland situations, certain stakeholders may be trans-humant and they will require special consultation actions; (iii) community based projects should generally be phased to develop sufficient commitment of community organizations; and (iv) M&E should be addressed from the start of project preparation with a distinct focus on outcomes, while supporting the build-up of M&E capacity and sustainability. Reversing the impact of erosion and rebuilding an agricultural economy in the Loess Plateau in China. The project highlights the following lessons: (i) where necessary, allow for a systematic, flexible, decentralized, and lengthy project preparation relying on local technology and solutions; - 13 -  (ii) maintain a simple and focused project design that permits each project area to develop its own plans for addressing specific issues so as not to limit potential successes by designing huge, complex programs; (iii) maintain a strict quality-control system and supervision in the field to ensure that standards are met; (iv) permit local procurement for local small scale construction, for example, such as terracing and slope-land protection; (v) invest in farmer study exchange trips to pilot areas to demonstrate good practices. Project preparation will specifically seek out other relevant lessons to enhance project design. 9. Environment Aspects (including any public consultation) Issues The project has been classified a category B. A partial Environmental Assessment (EA) will be prepared prior to project effectiveness, in line with Bank requirements for this category of projects. The EA will include guidelines for the preparation of sub-project specific EAs, as needed. The EA will, as much as is possible, be carried out in parallel with the social assessment to permit beneficiary feedback on their perceptions of potential impacts of project activities on the environment. No major environmental issues are expected from project implementation as the majority of project activities are aimed at reducing forest, natural resources and environmental degradation. Potential minor environmental impacts may result from the development of rural infrastructure and from the establishment of small-scale irrigated perimeters if their design and implementation is not well conceived. All these issues will be studied during project preparation. 10. Contact Point: Task Manager Idah Z. Pswarayi-Riddihough The World Bank 1818 H Street, NW Washington D.C. 20433 Telephone: 202 458 1872 Fax: 202 477 1609 11. For information on other project related documents contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-5454 Fax: (202) 522-1500 Web: http:// www.worldbank.org/infoshop Note: This is information on an evolving project. Certain components may not be necessarily included in the final project. This PID was processed by the InfoShop during the week ending December 20, 2002. - 14 -