Upper Volta - Forestry Project

Document of The World Bank FILE COPY FOR OFFICIAL USE ONLY Report No. 2382-UV REPUBLIC OF UPPER VOLTA STAFF APPRAISAL REPORT FORESTRY PROJECT December 27, 1979 Projects Department Western Africa Regional Office Agriculture IV 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 WEIGHTS AND MEASURES (metric system) 1 m3 (natural forest firewood) = 2 steres = 450 kg 1 m3 (plantation firewood) 1.67 steres = 583 kg FISCAL YEAR January 1 to December 31 GLOSSARY AVV - Autorite pour l'Amenagement des Vallees des Voltas CCCE - Caisse Centrale de Cooperation Economique CTFT - Centre Technique Forestier Tropical FAC - Fonds d'Aide et de Cooperation FAO - Food and Agriculture Organization of the United Nations FED - Fonds Europeen de Developpement ISPO - Institut Superieur Polytechnique de Ouagadougou ORD - Organisme Regional de Developpement UNDP - United Nations Development Program USAID - United States Agency for International Development VITA - Volunteers in Technical Assistance WFP - World Food Program  FOR OFFICIAL USE ONLY REPUBLIC OF UPPER VOLTA STAFF APPRAISAL REPORT FORESTRY PROJECT TABLE OF CONTENTS Page No. I. SECTORAL BACKGROUND .................................. 1 A. Project Background .....*............ ...... *........... 1 B* The Rural Sector ................ . . . ....a 1 C. The Forestry Subsector ................ . ..... ..... . 2 Resources ............ .................................. 2 Institutions .................................................. 4 Forestry Projects ..... ........ ..... ........... 5 Forestry Education . . ........ . ... ............... . 6 Forestry Research * ............................ 7 Objectives and Strategies ..eu................... 7 fI. TUE PROJECT AREA .................... .. ose......... 8 Introduction ............... .00................................... 8 Climate, Topography and Soils .................... 9 Urban Population and Wood Consumption ............ 9 Wood Trade and Processing ........................ 10 III. THE PROJECT i*l........................... il A. Brief Description ... . . . . ............................. . il B. Detailed Project Description ............ .. .......... 12 Strengthening of the Forestry Administration .. 12 Forestry Operations ................ ............. 13 Studies and Training .s. ... .... ....... .. ...... . 14 C. Project Cost Estimates and Financing .............. 17 Cost Estimates ............ ..................................... 17 Proposed Financing ............................ 18 D. Procurement and Disbursement ...................... 20 E. Accounts, Audits and Reports ...................... 21 IV. ORGANIZATION, STAFFING AND IMPLEMENTATION .......... ... 22 A. Organization .... 0...... ........a........... O...................... 22 Studies and Planning Department ............... 23 Forestry Management and Reforestation Department .................. ..... O........................... 23 B. Staffing ...................................................... 24 This staff appraisal report is based on the findings of an IDA mission which visited Upper Volta in October 1978, compr4ising Messrs. J. Gorse, C. Bolduc, T. Winston (IDA), and C. Bailly (Consultant). Additional findings of a post- appraisal mission in April 1979, comprising Messrs C. Bolduc and J. Gorse, have been incorporated in this report. Thbi document has a restricted distribution and may be used by rocipients only in the performance of their officiai duties. Its contents may not otherwise be disclosed without Worid Bank authorization.  - ii - Table of Contents (Cont'd) Page No. C. Project Implementation ........................ 25 V. PRODUCTION, MARKETS, PRICES AND INCOME ................ 27 A. Production.. ....................... . ...... 27 B. Markets ................. .......... 28 C. Prices .o. .. ......................... 28 D. Income ........................................................ 29 VI. BENEFITS AND JUSTIFICATION ............................ 30 A. Project Beneficiaries .................. . ..... 30 B. Economic Analysis . ...... . ................. . .... . 31 C. Sensitivity Analysis ........ . . . ....................... .... . 33 D. Other Risks ...............................................o.... . 35 VII. AGREEMENTS REACHED AND RECOMMENDATION ................. 35 ANNEX TABLES I. Total Project Costs per Category of Expenditure and per Component II. Total Project Costs per Component and per Year III. Total Project Costs per Category of Expenditure and per Year IV. Total Costs per Component and per Year 1. Strengthening of the Forestry Administration 2. Rainfed Tree Plantation 3. Natural Forest Management 4. FAO/UNDP Tree Plantations Maintenance 5. Rural Woodlots 6. Studies and Training V. 1. Supervisory Staff Requirements 2. Project Related Incremental Staff VI. Seasonal Labor Costs VII. Civil Servant Salaries VIII. Total Wood Production IX. Sales of Project Wood Production X. Rainfed Tree Plantation - per hectare costs and benefits XI. Natural Forest Management - per hectare costs and benefits  - iii - Table of Contents (Cont'd) XII. Detailed Financing Plan XIII. Schedule of Disbursements XIV. Illustrative Government Cash Flow XV. Economic Analysis 1. Reduced Exploitation of Unreserved Forest 2. Rainfed Tree Plantation ANNEX CHARTS I. Organigram - Forestry Administration MAPS Forest Cover, Forest Reserves and Parks - Upper Volta (IBRD 14036) Maro Forest Reserve (IBRD 14037)   UPPER VOLTA FORESTRY PROJECT I. SECTORAL BACKGROUND A. Project Background 1.01 Following the severe droughts of the early 1970s, a conference of aid-providing countries, development agencies and representatives of the six Sahelian countries was held in 1976 to examine the possibilities for forestry development in the Sahel. During this conference, participants submitted a list of proposals for forestry projects. An FAO/World Bank Cooperative Program mission visited Niger, Mali and Upper Volta in February/March 1977 and concluded that a forestry project in each of these countries would be justified if priority were given to: (a) arresting the desertification taking place around the main urban areas as a result of exploitation of natural bush supplies for firewood, and establishing rainfed and/or irrigated plantations close to main towns to alleviate the situation; (b) assisting rural forestry activities aimed at greater involvement of villagers in reforestation and protection programs; (c) improving the management and protection of natural forests; and (d) strengthening forestry institutions. 1.02 A pilot and technical assistance forestry project in Niger and a forestry project in Mali were subsequently prepared, appraised and approved by the Board on May 16, 1978 and March 6, 1979, respectively. For Upper Volta, a project preparation report was prepared by the FAO/World Bank Cooperative Program and submitted to the Bank in July 1978. Project appraisal took place in October 1978, followed by a post-appraisal mission in April 1979. B. The Rural Sector 1.03 Upper Volta has a total area of 274,200 km2 and a population of nearly 6 million (22 persons per km2), growing at an annual rate of about 2% but with an urban growth rate of 5%. About 90% of the population depend on agriculture, livestock and forestry for their livelihood. Per capita income is US$118 (1977 est.), which classifies the country as one of the 25 poorest in the world. For the period 1974-77, GNP growth in real terms averaged 5-5.5% per year. Agriculture contributes about 35% to the GNP, livestock 11.6% and forestry (including hunting and fishing) 6.5%.  1.04 In the north central plateau, where the population of Upper Volta is concentrated, agricultural production (mainly foodcrops) barely exceeds the subsistence level, despite many attempts during the past 15 years to increase production. The main constraints to development in this part of the country are poor soils, low and erratic rainfall, and soil erosion due to excessive human and livestock pressures on the land. In the west and southwest, with more favorable ecoclimatic conditions and a lower population density, agricul- ture is more diversified. In this region the main constraints to development are poor soils and the presence of riverblindness. Upper Volta's basic food crops are millet, sorghum and maize; in some areas, rice, sweet potato, groundnuts and sesame are cultivated and sheanuts are also collected. Cotton is the major cash crop. 1.05 The livestock sector contributes about 25% of the country's export earnings and is of vital importance to the economy. But this subsector faces serious constraints, mainly recurrent droughts, overgrazing, insufficient watering facilities and the growing competition of foodcrops. IDA has been assisting livestock development in the southwestern part of the country since 1976 (Credit 557-UV for US$9.0 million). 1.06 In addition, there are three ongoing IDA-assisted agricultural projects: Bougouriba I (Credit 496-UV) for US$8.0 million, and West Volta Agricultural Development (Credit 706-UV) for US$3.6 million, both located in the southwestern part of the country, and the Second Rural Development Fund project (Credit 640-UV) for US$9.4 million, largely concentrated on the Mossi Plateau. 1.07 The Government's strategy for the rural sector gives priority to: (a) stepping up migration from the densely populated and relatively infertile north central plateau to areas in the west and southwest which have low population densities and good agricultural potential; (b) developing rainfed agriculture by promoting improved farm practices while integrating cropping and livestock activities; and (c) gradually increasing the development of irrigated agriculture. C. The Forestry Subsector Resources 1.08 The forests of Upper Volta are characterized by bush vegetation with some limited areas of relatively dense forests. Five percent is classified as Guinean woodland with an annual rainfall of about 1,200 mm; 85% is classified as Sudanian savanna characterized by a relatively low tree canopy occurring  in areas with an annual rainfall between 600 and 1,200 mm; and 10% is classi- fied as Sahelian shrub savanna occurring in areas with an annual rainfall of less than 600 mm. Of Upper Volta's total area of about 27 million ha, some 15 million ha (or 55%) are covered by slow-growing natural bush vegetation. Of this, about 3.5 million ha have been designated as park, wildlife and forest reserves. Man-made forests cover only about 6,700 ha planted mainly with fast-growing eucalyptus, gmelina arborea, neem and teak. Most of these forests are located around Ouagadougou and Bobo Dioulasso. Except for the anacardium (cashew) tree project located near Bobo Dioulasso, all plantations are geared towards producing firewood and building poles and are located in the Sudanian zone. Numerous village woodlots have been planted by schools, youth organizations and other groups; however many of these woodlots are in poor condition, mainly due to lack of maintenance. 1.09 The forestry sector accounts for about 6.5% of GNP (including hunt- ing and fishing) and for about 9.3% of exports (sheanuts). However, these figures do not adequately reflect the important role played by the natural forest cover and bush in supplying firewood, building poles and other minor forest products to meet the population's basic needs. The 1978 total fire- wood requirements for Upper Volta are estimated at 4.8 million m3 (2.2 million tons) based on an estimated yearly average consumption of 0.7 m3 (315 kg) per person in the rural areas and 1.2 m per person (540 kg) in the urban areas. The lower average consumption in the rural areas is due to the extensive use of millet stalks as fuel during six months of the year. Of the country's total estimated consumption of firewood in 1978, 0.8 million m3 were consumed in urban areas and 4.0 million m3 in rural areas. Wood con- sumption by "dolotieres" (sorghum beer brewers) is estimated at 14% of total firewood consumption. Only about 1% of the total firewood production is con- sumed as charcoal, and building poles represent an additional 0.5 million m3. In addition to firewood, the natural forest cover provides fruit, tree fodder and dry-weather grazing reserves for livestock, and protects against soil erosion; most important, as bush fallow it also regenerates soil fertility under the traditional shifting cultivation system. 1.10 In the relatively high population zones, especially in the north central (Mossi) plateau, the cutting of firewood and building poles, especially in the bush fallow and unreserved forest areas, has led to a decline of forest cover w