India - West Bengal Social Forestry Project

Document of The World Bank FOR OFFICIAL USE ONLY Cter I\LE CO Report No. 3434-IN INDIA WEST BENGAL SOCIAL FORESTRY PROJECT STAFF APPRAISAL REPOR' September 15, 1981 Education and Agricultural Institutions Division South Asia Projects Department This document has a restricted distribution and may be used by recipients only in the performtnce of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS US$ 1.00 = Rupees (Rs) 8.00 WEIGHTS ANI) MEASURES Metric System FISCAIL YEAR GOI and GOWB: April 1 - March 31 ABBREVIATIONS ACF = Assistant Conservaitor of Forests Addl CCF = Additional Chief Conservator of Forests ADFO = Assistant Deputy Forest Officer AFO = Assistant Forest Officer CCF = Chief Conservator of Forests CF = Conservator of Forests CPO = Chief Publicity Of-ficer DCF = Deputy Conservator of Forests DFO = Divisional Forest Officer DFR = Deputy Forest Ranger DPRO = Divisional Public Relations Officer DR = Deputy Ranger FD = Forest Department FEW = Forest Extension Worker FG = Forest Guard FR = Forest Ranger FWE = Fuelwood Equivalent GOI = Government of India GOWB = Government of West: Bengal ICB = International Competitive Bidding LCB = Local Competitive Bidding MEU = Monitoring and Evaluation Unit NPV = Net Present Value PRU = Public Relations UJnit PWD = Public Works Department ROR = Rate of Return SCF = Standard Conversion Factor SFW = Social Forestry Wing TCE = Ton Coal Equivalent WBFD = West Bengal Forest:ry Department  FOR OFFICIAL USE ONLY INDIA WEST BENGAL SOCIAL FORESTRY PROJECT Table of Contents Page No. I. INTRODUCTION ...................,.r...... 1 II. BACKGROUND ................................................ 1 A. Forestry in India ..........................1..,,,....... , Sectoral Context ...............................,.,.l 1 Bank Group Role in the Sector ........................... 2 B. The State of West Bengal .............................,.. 2 General ................. ...., ......2 Panchayat System ................, 3 Present Consumption of Energy. 4 C. Forestry in West Bengal ............................ . 5 Environmental Conditions and Forest Types ............... 5 Contribution of Forests to the Economy .................. 6 Forestry Institutions ................................... 7 Forestry Programs ....................................... 8 Social Forestry ......................................... 8 III. THE PROJECT ............................................... 9 A. General ................................................... 9 General Description ..................................... 9 Project Phasing ......................................... 10 B. Detailed Features ......................................... 11 Village Woodlots ........................................ 12 Justification for Proposed Plantation Target of Village Woodlots... ... 12 Operating Procedures .................................... 13 Strip Plantations ..................................... 13 Justification for Proposed Plantation Target of Strip Plantations ..................................... 14 Farm Forestry ..................................... 14 Justification for Proposed Plantation Target of Farm Forestry ................................... 15 Rehabilitation and Reforestation of Degraded State- Owned Forests ................................... 15 Justification for Proposed Plantation Target of Degraded State-Owned Forests ................................... 15 Plantation Design and Establishment ..................... 15 Planting Programs ..................................... 16 Nurseries ....... 16 Plantation Establishment ................................ 17 Plantation Maintenance .................................. 17 Plantation Protection ................................... 17 Conservation of Fuelwood Supplies ....................... 17 Research ....... . 18 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.  Project Implementation ...................... 19 Housing and Transportation for Staff ........................ 20 Training .................................................... 20 Public Relations Unit ....................................... 21 Monitoring and Evaluation ................. ................. 21 Fellowships ................................................. 22 Consultants ................................................. 22 IV. COST ESTIMATES AND FINANCING ................................... 22 A. Cost Estimates .............................................. 22 B. Proposed Financing .......................................... 24 C. Procurement ................................................. 24 D. Disbursements and Audits .................................... 25 V. ORGANIZATION AND MANAGEMENT .................................... 26 Social Forestry Wing ........................................ 26 Project Coordination . 27 Training ...... 28 VI. PRODUCTION, MARKETING AND FINANCIAL RESULTS .................... 28 Yields and Production ....................................... 28 Sharing oif Produce Between Villagers ........................ 29 Financial Results ........................................... 30 VII. BENEFITS, JUSTIFICATION AND RISKS .............................. 31 Benefits ..................................................... 31 Employmeni ................................................... 31 Environment ................................................. 31 Economic Rate of Return ..................................... 32 Project Risks ............................................... 33 VIII. RECOMMENDATIONS ................................................ 34 LIST OF ANNEXES 1 T-1 Properties and Uses of Tree Species in the Project T-2 Model I - Strips on Main Roads T-3 Model II - Strips on Minor Roads T-4 Model III - Strips Along Narrow Roads T-5 Model IV - Strips on Railways, Canals T-6 Model V - Village Woodlots - Hills T-7 Model VI - Village Woodlots - Alluvial Sites T-8 Model VII - Village Woodlots - Laterite Areas T-9 Model VIII - Farm Forestry - Hills T-1O Model IX - Farm Forestry - Alluvial Sites T-ll Model X - Farm Forestry - Laterite Areas  - iii - T-ll Model XI - Rehabilitation of Degraded Forests by Coppicing T-12 Model XII - Planting of Degraded Sal Forests 2 T-1 Financial Costs and Returns to GOWB 3 T-1 Economic Analysis T-2 Sensitivity Analysis 4 T-1 Incremental Costs and Benefits Streams at Market Prices T-2 Incremental Costs and Benefits Streams at Efficiency Prices T-3 Project Output T-4 Financial and Economic Prices 5 T-1 Schedule of Estimated IDA Disbursements T-2 Implementation Schedule 6 T-1 Summary Project Costs 7 T-1 Staff and Other Operating Costs T-2 Staff and Other Operating Costs (Continued) T-3 Building and Housing T-4 Training and Fellowship Costs T-5 Planting Costs 8 Pattern of Land Holding 9 Reference Material Available in South Asia Information Center Chart Project Organization Chart Maps IBRD 15614 Research and Training Center IBRD 15615 Density of Population IBRD 15616 Soils IBRD 15617 Normal Annual Rainfall  INDIA WEST BENGAL SOCIAL FORESTRY PROJECT I. INTRODUCTIONi 1.01 Forests constitute only 13.5% of the area of West Bengal State and are distributed non-uniformly over the entire State, leaving some of its districts practically devoid of any woodland worthy of mention. Although practice of scientific forestry was initiated as far back as in the 1860's, the State's main concern was for meeting the demand for raw materials required by the various wood-based industries in Calcutta and in the northern part of the State. 1.02 Rapid increase in population coupled with a large influx of displaced persons from the eastern part of the pre-independence province of East Pakistan (now Bangladesh), has changed the situation drastically. After the national- ization of all the private forests in 1953 with the promulgation of the West Bengal Estate Acquisition Act, those forests which came under State management were subjected to heavy demands from local people, despite the passing of laws to prevent it, for forest products for their daily needs and grazing for their livestock. A rigid imposition of State management involving the withdrawal of these concessions did not, however, reduce the serious depletion of these forests. 1.03 Forest administrators came slowly to realize that rapid depletion of State forests could not be stopped by rigid enforcement of the laws but by evolving a suitable policy whereby forestry became more meaningful to rural communities, who constitute 75% of the State's population of 50 million. A policy has now emerged whereby forests are being established to produce forest products for basic human needs, to generate employment in rural areas, and to preserve the environment. 1.04 In order to further these objectives GOWB prepared a social forestry project and requested IDA assistance in its implementation. This report is based on the findings of an IDA appraisal mission which visited India in January/February 1981, comprised of D.A. Mitcinik, L. Ljungman, H. Woldu (IDA), R. Noronha, P. Wood, (consultants). II. BACKGROUND A. Forestry in India Sectoral Context 2.01 India's forests account for 23% of the total land area and cover some 75 M ha. Annual domestic roundwood requirements by the year 2000 are projec5ed to be nearly 290 M m (fuelwood 225 M m and industrial roundwood 65 M4 m ). Continuation of existing plantation programs of about 20,000 ha  -2- annually, should ernsure the supply of industriai hardwood (52 14 m ) and about half of the coniferous rouniwood demand (13 M m ). Regarding fuelwood, on the assumption that 150 M m continues annually to be supplied fro! existing resources, provision will have to be made for an additional 75 M m by the year 2000. This would require an annual planting program of some 450,000 ha, but in terms of availability of both land and financial resources, this target cannot be achieved., Plantings of 225,000 ha annually over the 1980's would be a more realistic target. 2.02 India's strategy for forestry development reflects two priorities: firstly, through community forestry programs to supply fuelwood, fodder, small timber and minor forest produce to the rural population; and, secondly, to develop production forestry to supply the growing needs of the domestic wood products industry (particularly pulp and paper). Encompassing both objectives is recognition of the vital role forestry plays in soil and water conservation. In order to carry out this strategy, the National Commission on Agriculture (1976) recommended that eac'i State reorganize its Forest Department into two separate wings, one to remain in charge of traditional production of forestry and wildlife activities, while a new wing would be created to develop community forests. The Forest Departments of Gujarat and Uttar Pradesh States were the first to c:reate community forestry wings. Bank Group Role in the Sector 2.03 In early 1978, in recognition of the need to expand community forestry activities, the Government of India (GOI) and the Bank agreed to examine the possibilities of developing projects in the States of Gujarat and Uttar Pradesh. 1/ The Uttar Pradesh Project was appraised in December 1979 and a Credit for US$23 M4 was approved in June 1979--the Gujarat Project was appraised in March 1979 and a Credit of US$37 M approved in April 1980. Both projects are making good progress. Private planting achievement during 1980 was almost double project targets, though village woodlot schemes have been more slow to implement (para 3.08). 2.04 The Madhya Pradesh Forestry Technical Assistance Project (Credit 609-IN) is the initial phase of a major project aimed at the establishment of a forest-based industry in Bastar District. The feasibility study (November 1980), financed under the Credit, recommended the establishment of an integrated industrial complex wit'h one mill producing sawnwood and a pulp mill producing kraft pulp to supply a printing and writing paper mill. The Kandi WatershedL and Area Development Project (Loan 1897-IN, approved in 1978) involves reforestation and pasture development over some 18,000 ha of Punjab's Siwalik Hills. B. The State Df West Bengal General 2 2.05 The State of West Bengal, with an area of 88,000 km , has a popula- tion of about 54 M (1981), of which 75% reside in rural areas. Up to the end of the 1960s, the State had the highest levels of industrial development 1/ Credits 961-INi and 925-IN respectively.  -3- and per capita income in India. It lost this position in the 1970s. The State, nevertheless, still has the second largest industrial base in India. Despite this industrial concentration, agriculture plays a predominant role in the State's economy, accounting for 40% of its income and providing 60% of its employment. 2.06 Population density averages 569 persons per km , second only to the State of Kerala. But there is considerable 2inter-district variation in population, ranging from a high of 1,6p0 per km in howrah District near Calcutta (1971) to a low of 254 per km in Darjeeling District in the Himalayan zone. A little over 25% of the population belongs to the tradi- tionally disadvantaged classes--19.9% scheduled castes and 5.9% scheduled tribes. 2.07 The rural population is spread over 41,951 villages (mauza), each with an average population of about 900. Ecological differences and socio- cultural factors influence variations in the incidence of poverty between regions and different segments of the population. Over half of the rural population was below the poverty line in 1977/78. In the village, traditional patron-client relationships between castes are being replaced by a monetary economy and many services, other than sharecropping arrangements, are today paid for in cash. Farms in general are small with 80% of all holdings being less than 2 ha. Details are given in Annex 8 Table 1. 2.08 Livestock forms an integral part of village life; a household pos- sesses, on average, either two cattle or buffalo which provide milk, draught power, manure and dung cake for cooking. Cattle and buffalo generally graze on State lands that surround villages and their feed supplemented with lopping from trees. 2.09 Population pressures and the increase in livestock numbers (of which there are an estimated 19 M at present) necessitate the continual search for food, fuel and fodder. This has resulted in indiscriminate tree-cutting and increasing erosion. Consequently, the southern and western parts of the State now have large tracts of barren waste lands. In the northern, more forested areas of the State, there is increasing competition between commercial and fuelwood needs, leading again, to uncontrolled depredations of the forests. Panchayat System 2.10 The West Bengal Panchayat Act, 1973, introduced a three-tier system of panchayats (elective corporate bodies) in the State. The three tiers comprise village panchayats (gram panchayats) at the lowest level, comprising a group of revenue villages (mauza); panchayat samitis (at the Block, or sub-district level); and, at the district level, district panchayats (zilla parishad). Provision is made for the nomination by the State to panchayats of at least two women, and two members of the scheduled castes or scheduled tribes, in the event that these have not been directly elected. There are 3,242 village panchayats, 324 panchayat samitis, and 16 district panchayats in the State.  - 4 - 2.11 Panchayats can undertake a wida range of activities covering almost every activity falling within the rubric of rural development. They can make provision for and undertake rural works, irrigation, conservation and cooperative farming, among other matters. Over the past three years, the State has assigned to panchayats, among Dther programs, management of rural works, food-for-work, rural reconstruction, and flood reconstruction programs. Panchayat samitis play an important role as advisory committees on the imple- mentation of land reforms. Under the Indian Forest Act, the State is also empowered to assign reserved or protected forests to village panchayats and, in tribal areas, forest development and the establishment of plantations is under the control of panchayats. 2.12 The State provides administrative and financial assistance to panchayats. Under the former category, officials are seconded or transferred to the Department of Panchayats and Community Development. Most panchayat funds are obtained through State grants for regular expenses (salaries, establishment expenses, travelling allowances) and for assigned works. Panchayat funds raised through taxes, rates and fees are small and generally average between Rs 3,000 to Rs 5,000 (US$375-625) per year. All accounts are audited annually both by the Panchayatt Accounts and Audit Organization, and the State Auditor General. 2.13 After a period of nearly 15 years, there has been a remarkable revival in panchayat activity since elections were held in June 1978. The composition of panchayats has changed, with greater representation of young, educated small farMers, Further, even before these elections panchayats evinced an interest in social forestry. The Department of Panchayats (as it then was) sponsored training camps to motivate and educate local communities, distributed free seedlings and organized inter-panchayat tree planting com- petitions. From 1975-77 nearly 800 anchal panchayats (now converted to village panchayats) planted 4 M seedlings. The devastation caused by the 1978 floods halted this program which was only revived, after completion of most of the flood reconstruction in 1980. In the last year extension foresters were posted to 15 village panchayats and worked closely with community leaders. As a result, 15 nurseries were established and nearly 1 M seedlings planted by village panchayats. (For further details on Panchayat Organization see Project File, Item 1.) Present Consumption of Energy 2.14 The Workir,g Group on Energy Policy (Planning Commission) estimated the total annual domestic energy consumption of West Bengal in 1979 to be 14 M tons coal equivalent (TCE). This is based on a per capita demand of 0.38 TCE and 0.4 TCE in the rural and urban areas respectively. However, the NaSional Commission on Agriculture in its Report of 1976 uses a figure of 0.28 m of fuelwood per capita, equivalent to about 0.2 tons fuelwood equivalent (FWE) or 0.19 TCE. The annual production of fu,slwood from GOWB forests is currently estimated at about 1 M tons (recorded plus estimated illegal removals) and, based on this, the National Commission estimate appears more realistic and would give a total annual domestic energy requirement of 10 M tons FWE.  - 5 - 2.15 West Bengal has a relatively good supply of commerical energy (coal, electricity, oil) and this has been estimated at meeting 20% of total demand. This amounts to 2 M tons FWE. The remaining 8 M tons FWE is estimated to be derived from: _ Amount /a _WE Fuelwood and Charcoal 55 4.2 M ton 4.4 M ton Crop Waste 20 1.5 1 ton 1.6 1M ton Dung Cake 25 4.8 M ton 2.0 h ton /a Mission estimates. In terms of fuelwood equivalent for today's population this would require (assuming a mean annual increment of 7 tons per ha) an area of plantations of over 1 M ha. 2.16 The cost of using dung cake for fuel instead of using it as an organic manure to increase agricultural production is high. It can be assumed that an application of 5 m ton/ha, would increase yields of foodgrains by 300 kg per ha. Thus, in terms of food production foregone, the annual loss from 4.8 M tons currently burnt would amount to over 288,000 tons of foodgrains. 2.17 Dung, fuelwood and crop wastes account for 80% of the fuel require- ments of households. Rural electrification has reached 35% of rural villages but as yet is used very little for cooking purposes. In rural areas it is estimated that at least 80% of domestic fuel is collected free by women and children who often spend half the day in foraging for wood, crop wastes, dung and even leaves and twigs, which are swept from the forest floor. In larger settlements fuelwood is a traded commodity, with prices ranging from Rs 120 - Rs 180 per ton. Cow dung costs about Rs 120 per ton in rural areas, though it is generally sold as a dung cake at Rs 0.10 each or by the cubic foot at Rs 1.75. C. Forestry in West Bengal Environmental Conditions and Forest Types 2.18 West Bengal covers a wide variety of ecologies (IBRD Map 15616). The greater part of the State consists of flat or gently undulating alluvial plains with elevations of less than 30 m. In the south-west are uplands rising to 300 m on ancient crystalline rocks with thin, lateritic soils. These areas are joined by a narrow neck of alluvial land to the Himalayan zone in the north-west, which consists of plains, foothills, and steep hilly country rising to a maximum altitude of 3,700 m. The Ganga river system naturally divides the northern part of the State from the southern, in which lie the State's other important rivers, the Hoogly (branching from the Ganga) and the Damodar.  - 6) - 2.19 The climate varies considerabLy, but in all parts the seasons are; Winter (November-January), Summer (February-May) and Monsoon (June-October). The range of temperature is considerable. In the Darjeeling District tempera- tures below 00C are common, while summer temperatures frequently exceed 46 C in the plains. Most of the State receives more than 1,000 mm of rain annually, and in the north it varies between 1,501) and 4,000 mm. However, the rainfall becomes progressively less reliable in The south, and everywhere there is a prolonged dry season from November to January (with some rain in January/ February) and February to May (IBRD map 15617). 2.20 The natural forests of West Bengal may be grouped into seven major types ranging from alpine forests in thes Himalayas to mangrove forests in the Ganges-Brahmaputra delta (for detailed information see Project File, Item 10), 2.21 The forests are wholly owned by the State and are under the manage- ment of the Forest Department which is headed by a Chief Conservator of Forests. After the promulgation of the West Bengal Estate Acquisition Act in 1953, the total forest area of the State is 1.18 M ha out of the total State area of 8.78 M ha (approximately :L3.5% of the total geographical area). In addition, it has been estimated that a substantial part of the State's 1.3 M4 ha of waste and eroded agricultural lands would be suitable for afforestation, i.e., approximately 900,000 ha. However, seven of the State's 16 districts have less than 1% of forest area. Again, in the traditionally forest rich districts, the distribution is very lopsided and large tracts are now devoid of any natural vegetation. ]'roductivity of more than half the forest estate is lcw, either because of aridity and low soil fertility or because of past degradation through illegal felling, overgrazing and burning. An understanding of forest conservation is lacking in most sectors of the community. Traditionally the forest has been regarded as an apparently inexhaustible supply of free produce and a reservoir of land for alternative uses. 2.22 Over the past two decades, West Bengal Foresty Department (WIBFD) has expended considerable effort to improve productivity by forest rehabilitation, improved management and greater control of illegal degradation. Since 1976, the State Forest Directorate has embarked on a program of community forestry designed to increase local awareness and the need to replace forest resources. Contribution of Forests to the Economy 2.23 Contribution of the forestry sector and forest-based industries to State income was estimated in 1977 tD be 2% (Rs 1,332 M) out of a total of Rs 66,170 M. IrL 1974-77, State forests produced annually an average of 150,000 m of timber, 1 M1 m ton of fuelwood (which includes fuelwooe taken, without charge, by right holders), 73,000 m ton of bamboo (a third of which was trade quality) and 22,000 m ton of fodder grass. In addition, a wide variety of other minor forest products were extracted, including gums, dried leaves, edible flowers, fruits and oilseeds.  -7- 2.24 State forests support a number of industries: some 800 sawmills, 34 plywood factories, some 760 tanneries, 3 paper mills, numerous furniture workshops and 4 match factories. From 1974/75 to 1978/79 the annual con- tribution of employment in forest-based industries grew from 1.1 to 4.1 N man days. 2.25 The forests provide considerable benefits to members of scheduled castes, marginal farmers and landless laborers (who form the bulk of the popu- lation in and around forests) in the form of free fuelwood, fruit, flowers, grazing, honey, poles for hut construction, and bamboo (either free or at subsidized rates) for cottage industries. Work in forest areas also provides the main source of paid employment for these people. In 1976/77, primary forest production generated 7 1i man days of employment. 2.26 Unfortunately, shortages of primary forest products, especially fuelwood, building poles and fodder are becoming increasingly severe and are likely to become worse in the future. Although rehabilitation and improved management of the existing forest estate will help alleviate the situation, the magnitude of the problem and the lopsided geographic distribution of existing forest resources are such that the long-term solution lies in the afforestation of new areas. Presently, many areas such as road, rail and canal reserves and other wastelands that could grow trees, are unproductive. Thus, afforestation of new areas, combined with rehabilitation of existing degraded forest, would provide a reasonably well distributed forest resource, with environmental as well as directly productive benefits. Forestry Institutions 2.27 The Head of the West Bengal Forestry Department (WBFD) is the Chief Conservator of Forests (CCF) who is also Chief Wildlife Warden. He is supported at headquarters by one Additional CCF (Addl. CCF) and one Assistant CCF. Also directly responsible to him are three Conservators of Forests (CF) in charge of Soil Conservation, Planning and Research Development Circles, and two CF responsible for Social Forests and for Wildlife. 2.28 At field level there are three operational circles, each headed by a CF. Each of these circles is responsible for 4-6 divisions 1/ (a total of 16 divisions). Each division is headed by a Divisional Forest Officer (DFO), who is usually a Deputy Conservator (DC) and is assisted by an Assistant or Additional Divisional Forest Officer (ADFO) and one or more Assistant Forest Officer(s) (Asst. FO). Within a Division there are 4-12 Range Offices, each staffed by a Forest Ranger (FR) who is responsible for all technical matters associated with the establishment of plantations. Each Ranger covers 3-4 beats, and each is staffed by a Deputy Ranger/Forester who is responsible for the physical establishment of plantations within his beat and supervision of 3-4 Forest Guards (FG) employed to protect the forests. 2.29 There are three levels of formal forestry training. Forest officers (professional) are recruited from science graduates and undertake a two-year 1/ Northern circle, six divisions; western circle, six divisions; central circle, four divisions.  course at All-India Forestry colleges operated by the central government. Range Officers are recruited partly from science graduates and partly from serving foresters. These are trained, for two years, at the GOI Forest Rangers College at Kurseong, but there is often a long delay in training for promoted foresters, as the college serves other eastern states in addition to West Bengal. Foresters/I)eputy i'angers are recruited from the ranks of serving Forest Guards. They are trained at a one year course given at the West Bengal Forest School at Dow Hill, which also serves several neighboring states. Long delays are also experienced in getting Foresters/Deputy Rangers trained owing to limited capacity in the School (60 West Bengal students per year). Forest Guards are recruitecd from secondary school leavers and there is currently no Forest Guard training school, though one is planned and expected to be opera- tional in 1982. 2.30 In 1974, the West Bengal Forest Development Corporation was established following the recommendations of the National Commission for Agriculture. The Corporation has now been entrusted with the management of the major part of the hill forests of the State; it also controls a signif- icant part of those of the State's forest industries which are owned by GOWB. Forestry Programs 2.31 The State has been active in the improvement of forest reserves through the establishment of man-made forests. At the end of 1980 the total area of plantations was: North Bengal Coniferous 8,000 ha Broadleaved 57,000 ha South Bengal Eucalyptus 55,000 ha Other Species 70,000 ha 190,000 ha This represents about 15% of the State's total forest area, compared with 4.8% for India as a whole, and reflects the great efforts over the last 30 years to raise the productivity of low-yielding natural forests. The appraisal mission visited numerous plantations throughout the State and were impressed with their quality and management. Total expenditure on forestry under the Fifth Plan (1974-79) was Rs 52 M or 0.4% of the total. In the Sixth Plan Rs 613 M have been allocated to forest development or 1% of the total. Social Forestry 2.32 In 1975 the Panchayat Department of GOWB sponsored a social forestry program under the Local Leadership Scheme. The main purpose of the scheme was to mobilize local initiative and sustain the interest of both the panchayats and youth organizations in a tree planting program. The program established by 1980, 1,200 ha of communal plantations. In the period 1976-1980, tlle FD distributed an additional 5 Ivi seedlings for individual planting, with high survival rates.  - 9 - III. THE PROJECT A. General 3.01 The project's primary objectives would be to increase supplies of fuelwood to rural areas through the establishment of 93,000 ha of plantations located in all 16 districts of the State. Secondary objectives would be to provide poles, bamboo, small timber, fodder grass, fruits, oilseeds and other minor products. In order to carry out this program the project would provide training facilities, vehicles, housing, equipment and additional staff for research and extension activities. Moreover, the project would introduce improved stoves as a fuelwood conservation measure. The project will result in considerable seasonal employment, estimated at 15 h man days and create 750 permanent jobs over six years. General Description 3.02 During a six-year period the project would: (a) establish 6,000 ha of village woodlots; (b) rehabilitate and reforest 15,000 ha of degraded forests; (c) establish 20,000 ha of strip plantings along roads, canals and railroads; (d) establish 52,000 ha of farm forestry on private land; (e) develop nurseries to provide planting stock; (f) construct a Forest Guard School; (g) expand the existing Uest Bengal Forest School; (h) provide forestry staff at the operational and extension levels, including staff to support publicity, research, training, improvement of stove technology and monitoring activities; (i) strengthen research activities, and construct seed storage godowns; (j) develop training of project staff including provision of fellowships; and (k) construct about 10,000 smokeless stoves. Prime responsibility for implementation would be with the Social Forestry Wing (SFW) in the Forestry Department.  - 10 - 3.03 Underlying factors in setting the proposed targets and arriving at methods of sharing benefits were as foLlows: (a) to reach a maximum number of small farmers and landless farm laborers; (b) to ensure that total fuelwood plantation costs would not exceed the State's original budget proposal; and (c) to transfer responsibility for management and protection of village woodlots and strip plantations to the village panchayats as soon as SFW has recovered its direct costs, estimated at the 7th or 8th year after establishment. Thereafter, all produce would be given to the village panchayats. Project Phasing 3.04 Given below is the proposed planting program:  - 11 - Project Planting Program (hectares) Project Year Category /a 1 2 3 4 5 6 Total Strip Plantations Model I 10 40 50 50 75 75 300 II 20 80 100 150 150 200 700 III 200 800 1,000 1,000 1,250 1,250 5,500 IV 200 800 2,000 3,00U 3,500 4,000 13,500 Subtotal 20,000 Village 1Woodlots /b Model V 10 30 70 95 95 - 300 VI 40 200 630 735 1,095 - 2,700 VII 60 200 720 790 1,230 - 3,000 Subtotal 6,000 Farm Forestry Model VIII (d) (e) 60 180 240 240 240 240 1,200 IX (d) (e) 600 1,900 3,800 5,000 5,000 6,000 22,300 X (d) (e) 800 2,200 5,000 5,500 7,000 8,000 28,500 Subtotal 52,000 Degraded Forests Model XI 300 700 1,000 1,000 1,000 1,000 5,000 XII 300 700 1,500 2,000 2,500 3,000 10,000 Subtotal 15,000 GRAND TOTAL 2,600 7,830 16,110 19,560 23,135 23,765 93,000 /a Plantation models contain various tree species to suit varying climatic conditions (Annex 1, Table 2 - Table 13). /b Because this is a somewhat innovative approach and it is impossible to predict with certainty villagers' response to the alternative approaches to community forestry, flexibility would be maintained during project implementation and would allow for shifting the proportion of planting from one category to another according to results. This would be accom- plished by monitoring the results (para 3.47) and by a joint GOWB/IDA review in project year 4. B. Detailed Features 3.05 All four categories of plantations (village woodlots, reforestation of degraded forests, afforestation of eroded agricultural lands and wastelands and strip plantations) have differing conceptual, establishment, management, harvesting, marketing, legal and funding features which distinguish them from one another (see Annex 1, Tables 2 - Table 13). Details of each category are summarized in the following paragraphs.  - 12 - Village Woodlots (6,000 ha) 3.06 Three schemes involving different levels of community participation would be introduced on State land leased to the village panchayats. (a) Establishiment of 2,500 ha of village woodlots in 2,500 village panchayats for demonstration purposes - one ha for each village panchayat, representing 42% of total village woodlots to be planted under the project. Cost of planting and maintenance would be borne by the Social Forestry Wing (SFW). The village panchayat would protect and manage the plantation for two years in cooperation with SFW. If the village panchayat has successfully protected its plantation, it can opt for either of the following schemes. (b) Loan Scheme - (1,750 ha representing 29% of total village woodlots program). Apply for an interest free loan of Rs 2,000 per ha for a maximum of two ha to cover the cost of planting, maintenancze and protection of the plantation. In the 8th year after establishment, SFW would recover its loan from the sale of the harvestable produce; or (c) Supervisedl Scheme - (1,750 ha representing 29% of total village woodlots program). SEW would establish, maintain and protect a maximum of two ha per village panchayat. SFW would recover all direct costs after the sale of the first or second harvest of produce. 3.07 In all three schemes the village panchayats would receive seedlings free of cost from SFW. Justification for Proposed Plantation Target of Village Woodlots 3.08 Experience gained from ongoing community forestry projects in India (Gujarat and Uttar Pradesh States) and Nepal indicates that Community Forestry Wings have made slow progress in implementing the development of village woodlots. It is too early to draw any final conclusions from these projects as most of them are only in their 2nd year of implementation. Nevertheless, observations suggest the following key factors to be important: (a) the absence of strong local leaders to coordinate activities and mobilize the local population; (b) economic and social inequalities among the local population have discouraged cooperation between the poorer and better- off sections of the community, thereby creating suspicion among the poor and reluctance to participate in communal projects; and (c) the need to define clearly a target population which is likely to be much smaller than the village panchayat, and ensure its close proximity to the village woodlot, thereby providing the plantations with better management and protection.  - 13 - Consequently, Government's original proposal for the establishment of 12,000 ha of village woodlots has been reduced to 6,000 ha during appraisal. Operating Procedures 3.09 SFW, acting through its field staff, would encourage villages to take up the 1 ha demonstration plot and once a panchayat has demonstrated its ability to protect and manage the 1 ha forest plot, field staff would assist villages to join either of the two other schemes by explaining the benefits to be obtained from the creation of village woodlots, by assisting the panchayat in locating areas of grazing or wastelands which can be planted with trees, and by explaining the nature and provisions of agreements to be entered into between the panchayat and SFW, (see para 6.02(a) and items 2 and 3 in Project File). The panchayat assembly would determine the number and type of species to be planted with the assistance of the FR and the DFO. 3.10 Once proposals have been agreed upon, village panchayats would be assisted with implementation through regular visits from Forest Extension Workers (FEW) and Motivators (para 5.02). FEW and Motivators would develop the villagers' skills and understanding of forestry through these visits, increased publicity (films, posters, talks) and by organizing one-day visits of groups of villagers to demonstration areas where panchayats or farmers have developed their own plantations. In addition, groups of progressive farmers and village panchayat committees would participate in monthly one-day orient- ation training organized by the DCF and ADFO at the district level. Strip Plantations (20,000 ha) 3.11 Full responsibility for establishing plantations alongside roads, canals and railways 1/ would be with SFW as GOWB does not wish to relinquish legal control of these areas to Panchayats or individuals in anticipation of possible protracted litigations over compensation should the land be required at short notice for public purposes. 3.12 Villagers who have strip plantations adjacent to their lands would be allowed to collect grass, fodder, fallen wood and other minor produce from these areas. In return, they would cooperate with project field staff in protecting these strip plantations. At year 8 of the plantation, after the sale of forest produce, SFW would recover its direct costs for establishing, protecting and maintaining the strip plantation, and the cash balance given to the village Panchayat to establish additional strip plantations. Thereafter, management of strip plantations and all produce would be given to the village panchayat. The nature and provisions of the agreement to be entered into between the panchayat and SFW is given in item 4 of the Project File. 1/ Many panchayats in areas of high population density do not have unutilized land and the only wastelands available are along roads, canals and railways.  - 14 - Justification for Proposed Plantation Target of Strip Plantations 3.13 The protection and management of strip plantations would be easier to implement than village woodlots, because the population living alongside roads, railways, canals and riverbanks would be more easily identified by the extension worker who would explain to the villagers the benefits they would derive from the collection of fodder and fuelwood if they cooperated with the extension staff in the protection of these strip plantations, especially from uncontrolled grazing of animals. Farm Forestry (52,000 ha) 3.14 Three schemes involving different levels of farmers' participation would be introduced either on private wa steland or on State land leased to individuals: (a) Distribution of free seedlings with cash incentive--(22,000 ha representing 42% of total farm forestry plantations). To encourage poor farmers with small holdings of wasteland to take up tree planting, a scheme would be introduced to provide free seed:Lings and a payment intended to partly cover the farmer's :Labor costs. 1/ A maximum of 750 (equivalent to approximaltely 0.5 ha of plantation) and a minimum of 50 seed- lings wouLd enable the farmer to qualify for a cash payment of 40 paise per seedling (equivalent to Rs 300 for 0.5 ha of private pLantation), to be paid in three yearly installments. Second and third year payments would be made only for trees that have survived. The farmer would be visited regularly by the Motivator and FEW to monitor his progress. The nature and provisions of the agreement to be entered into between the SFW and the farmer are given in item 5 of the Project File. (b) DistributiLon of free seedlings with cash incentive--(10,000 ha representi ng 19% of total farm forestry plantations). Landless farm laborers would benefit from free seedling distribution and a cash incentive similar to scheme (a). The Land Reform Commissioner would apportion small parcels (up to 0.5 ha) of state-owned wasteland to landless farm laborers who would benefit from the program (see item 5 of Project File). (For details on land tenure see item 6 of Project File.) 2/ (c) Distribution of free seedlings--(20,000 ha representing 39% of total farm forestry plantations). SFW would distribute a total of 50 M seedlings free of cost (approximately 2,500 seedlings per ha) to farmers for planting on privately owned wastelands. 1/ Farmers with holdings of 2.0 ha or less would qualify to join the scheme and trees would not be planted on any land classified other than wasteland. 2/ There are some 500,000 ha of wastelands mainly in the south and south- western part of the State suitable for establishing private plantations.  - 15 - Justification for Proposed Plantation Target of Farm Forestry 3.15 In view of the enormous success of tree planting by individuals in Gujarat and Uttar Pradesh States, the Government's original target of 15,000 ha was increased to 52,000 ha at appraisal. Rehabilitation and Reforestation of Degraded State-Owned Forests (15,000 ha) 3.16 Fifteen thousand ha of degraded State-owned forest reserves would be rehabilitated through replanting with fuelwood and other species. Casual labor would be employed by SFW to establish and maintain the plantations. The villagers of the locality would continue to collect 25% of the produce free of cost. The collection of free fodder and fuelwood would be organized by the Deputy Conservator of Forests and his staff. 3.17 The Government's original proposal was reduced at appraisal from 25,000 ha to 15,000 ha due to the State's budgetary constraints. Plantation Design and Establishment 3.18 Overall 75-90% of trees planted would produce fuelwood or poles. Many of the species used produce good leaf-fodder and in most cases fodder legumes would also be grown beneath trees. Moreover, the production of naturally-occuring grasses would be enhanced by the protection from uncon- trolled grazing. Although many different items would be produced, the main emphasis is on fuelwood production, or in some cases bamboo. For details on fodder species see Project File, item 7. 3.19 Most of the species chosen are indigenous to India, or if exotic, well naturalized and known to FD. The range of species recommended is wide and covers a large range of ecological conditions. A list of the selected species, is given in Annex 1, Table 1. Decisions on the species mix would be made locally after considering the objectives of the plantations and the needs of the locality. Seed collection and storage would be organized accordingly. The project would provide funds for the construction of nine seed godowns, one for each division (para 5.01). 3.20 Twelve plantation models have been developed to meet the different objectives and site conditions of the State. Many more variations for sub- sites are possible, but in general all are rainfed, and no irrigation (except on a research basis) is proposed. Details are given in Annex 1 tables 2-13. 3.21 In strip plantations, fuelwood and pole species predominate, with ornamental and shade trees included along roads, but omitted along railways and canals, where bamboos have been proposed. Fruit trees are included in all models varying from about 5-20%. 3.22 In village and private woodlots, fuelwood and pole species represent 80% of the species planted, timber species 15% and bamboos 5% (generally planted along the periphery of the plantations).  - 16 -- 3.23 The rehabilitation of degraded forest reserves would be carried out either by coppicing the existing Sal stumps or where these have disappeared, by planting fuelwood and pole species (80%) and timber (20%). 3.24 Planting costs are given below: Range of Category of Planting Establishment Costs (Rs/ha) /a Strip Plantations 4,100 - 6,500 Village Woodlots (supervised) 3,535 - 4,040 Village Woodlots (self-help) 2,860 - 3,095 Private Woodlots 1,460 - 1,700 Reforestat:ion of Degraded Forests 3,125 Rehabilitation of Sal Forests 970 /a Expenditures incurred during the first six years, inclucding nursery advance soil works, establishment, maintenance and protection. On average, labor costs represent 94% of total planting expenditures (Annex 7 Table 5). Planting Programs 3.25 Annual planting programs would be agreed at State and district com- mittee meetings (see para 5.04 for constiltution of these committees). Planting sites would be selected and surveyed during the winter months, and pitting and other advance soil and protective works carried out usually in January-March. Pitting is not necessary in fertile hill areas. Seedlings for the current year's planting would be transported to the site in advance of the onset of the monsoon in late June/early July. It Ls anticipated that most plants would be transported by the beneficiaries, or by bullock cart. Nurseries 3.26 At present there are 39 permanent and 500 temporary nurseries in the State. The latter are set up on an arnual basis depending on the planting program. It is proposed to establish at least one permanent nursery for the social forestry program in each Administrative Block, but temporary nurseries would be established as and when demand dictates. Where necessary, permanent nurseries would be equaipped with pumps and sprinkler, but in temporary nur- series a shallow well and hand watering would be standard practice. Throughout almost the entire State the water table is sufficiently near the surface for this to be feasible. Permanent nurseries would be in charge of a Forester, temporary ones under the control of FEW. 3.27 All tree seed, except that of Pinus caribaea, Eucalyptus grandis and Leucaema leucocephala would be collected locally. Seed would be stored and tested at each of the seed godowns to be located throughout the State (IBRD Map 15614). Most species planted would be grown as seedlings in poly- thene tubs, but teak and sissoo would be planted as stumps and some bamboo  - 17 - species as culms. Most planting stock (except tall plants and fruit trees) would be planted out at less than one year old. Herbaceous legumes and grasses would be sown direct. Difficulties are anticipated in obtaining the best quality of culms of bamboos and a multiplication garden would be set up in one of the plantation areas. Plantation Establishment 3.28 In order to ensure high survival and growth rates and in view of the important demonstration effect of good plantations, both cow dung and chemical fertilizer would be applied to the planting pits of many of the plantation models. Plantation Maintenance 3.29 Tending operations would consist of replacement of casualties (once only in the year of planting) and weeding round the trees. For costs see Annex 7, Table 5. Funds are also included for the maintenance of 2,600 ha of plantations established before the commencement of the project. 3.30 Weeding and soil working around the base of each tree would generally be undertaken at most three times in the year of planting and once or twice in the following four years. A particular feature of the systems used would be that local people or private owners would remove grass and herbaceous fodder from the plantations thus performing a valuable weeding function and reducing the dry season fire risk. The trees themselves would also suppress much of the weed growth as they close canopy. Plantation Protection 3.31 All plantations require protection against insect attack, and against grazing and fire. Protection against termites would be provided through the use of insecticides applied to the soil round the base of the tree. In all areas, provision for a guard or watchman has been made, despite the high cost per ha of guarding narrow strips. Throughout the State, however, the support for social forestry appears to be considerable and much communal responsibility for restraining grazing animals can be expected, especially as cut fodder will be made freely available to all. Fences will be used sparingly, more for psychological effect than as a physical barrier. In strip plantations some individual tree protectors, using local material would be used, at a cost of Rs 3 per tree, together with a live hedge costing Rs 80 per km. In strip plantations along railways, more elaborate thorn and trunk- wood fences would be used at about Rs 250 per km. Boundary trenches, costing an average of Rs 100 per ha, would be used in some village plantations but no fences are proposed. Patrolling watchmen would cover from 2 ha (in the first year of narrow strip plantations) to over 20 ha for large blocks of plantation in the plains and hills. Conservation of Fuelwood Supplies 3.32 Introduction of More Efficient Wood Burning Stoves. By making simple adjustments to the traditional cooking stove and by addition of a smokestack  - 18 - a more fuel efficient stove can be manufactured from local clay and sand at small cost (approximately Rs 50 per stove). Research in improved stove tech- nology is not lacking in India. Since the early fifties, various research institutions have been experimenting with smokeless stoves. The major problem has been the failure to transfer this improved technology to villagers and to adapt stoves to different climatic and behavorial needs. 3.33 The project would make provisions for the recruitment of a local consultant (stove technologist) and for a stove improvement unit staffed by a unit head and six promoters. In addition, the project would provide for the construction of 10,000 improved stoves to be demonstrated in at least 2,000 villages over the six-year project implementation period. Assurances were obtained at negotiations that GOWB would appoint a Stove Consultant not later than December 31st, 1981. Research 3.34 The project would provide for increased research and seed testing. The research program would be under the direction of the CF (see Chart 22581). Two research units would be provided--one for each circle--and headed by a research assistant and supplemented by existing research staff transferred from within the F.D. 3.35 A detailed research program is given in the Project File, item 8. The work would be divided into nine sections. (a) Nursery studies would aim at reducing costs through introduc- tion of better techniques, including the use of 'mini' pots and bare rooted transplants, the issue to farmers of germinated seedlings for transplanting, and seeds for direct planting by farmers; (b) Silviculture studies would be made on pitting, fertilizing, planting (date, pollarding and coppicing and rotation length, all with the objective of reducing costs but retaining and increasing performance. (c) Studies would be done on collectioni, handling, storage, pre-treatiment and germination of tree seed; a reliable system of record keeping at each seed godown would be developed. (d) The growth performance of trees in strips as well as blocks would be studied and spacing trials instituted. (e) Energy farming trials: special studies, some of which are already under way, would concern the use of closely planted trees for rapid biomass production for energy. (f) Intercropping trials studying inter-relationships of trees and fodder crops and also mixtures of trees would be done to evaluate the 3 dimensional effects of the models used.  - 19 - (g) Some limited studies on species introduction and provenance trials would be carried out partly with fodder trees, and partly with fuel and pulpwood species. For the most part, however, the species proposed are socially acceptable and no major changes in them are expected during the life of the project. (h) Minor forest products, e.g., oils, gums, etc. are important and their production in social forestry plantations would be studied. (i) Socio-economic studies on the opportunity costs of farming and forestry, on basic wood and fodder needs, and on the development of different species mixes would be instituted early in the project and form a vital function in directing further technical research. Project Implementation 3.36 The success of the proposed social forestry program would depend largely upon an efficient organization with suitably trained and equipped staff acting in full cooperation with rural people. To achieve these objectives, the project would expand and strengthen SFW by the recruitment of additional staff for forestry extension and the creation of two special support units (paras 3.46 and 3.47); a public relations unit and a monitoring and evaluation unit. 3.37 Annual planting targets (para 3.04) have been geared to the rate at which SFW can recruit and train staff. Details of staff requirements are given below and in Annex 7, Table 1: Project Staff Requirements To Be Transferred Total at Full Category From FD to SFW Development Addl. CCF 1 1 CF 2 2 DCF 10 10 Public Relations Officer (PRO) 1 1 Assistant Divisional Forest Officer (ADFO) 9 9 Forest Ranger (FR) 47 47 Deputy Forest Ranger (DFR) 184 184 Divisional Public Relations Officer (DPRO) 9 9 Forest Extension Worker (FEW) (to be recruited) 360 Motivators 1,000 Support Staff (Drivers, Clerks, Accountants) 225 Consultants (3) 72 man-months  - 20 - Housing and Transportation for Staff (SEW) 3.38 Much of the success of SFW's activities would depend on regular and frequent visits by field staff to village panchayats and individual farmers and supervision of plantations, all of which would be scattered over wide areas. It is, therefore, vital thiat field level staff and their supervisors live near their work and that they are sufficiently mobile to enable them to function effectively. At present, housing for rent in rural areas is limited and staff often live far from their work and rely on public transport. To help overcome this, the project would construct 220 units which would provide accommodations for 61% of forestry exterLsion workers (FEW). however, GOWB housing policy would continue to encourage the use of rented accommodation wherever possible. Assurances were obtained during negotiations that GOWB would ensure that field staff would live in the area assigned for their operations and for this purpose would provide such housing or rent allowance as necessary. Design standards and cost estimates of housing were reviewed during appraisal and the average cost of housing for field level staff would be about Rs 24,090 (US$ 3,012). Designs would be in accordance with existing government standards which apply to all Government departments. Housing Requirements (numbers) Unit Cost _ Iroject Year (Rs '000) 1 2 3 4 5 24.09 40 65 65 45 5 3.39 No provision has been made for housing of officers and office staff who would be located at district headquarters, where accommodation on various government housing estates would be available to them. Motivators would reside in their villages, generally in t:heir own houses. 3.40 The project would provide vehicles at headquarters, divisional and circle levels, namely: Category Project Year Total 1 2 3 4 5 Car 1 1 4-wheel drive 4 2 2 2 10 Station Wagon 1 1 Vans 1 1 1 3 Bus 1 1 Motorcycles 10 10 10 10 40 Training 3.41 Construction of Forest Guard Training School. At present, no formal training is provided for forest guards. The need to establish a training course has become more urgent since the FD is expanding its social forestry program and the traditional duties of forest guards would gradually change if they are to play a significant role in t.hese activities.  - 21 - 3.42 The project would provide for the construction and equipping of the school and its running costs for four years. The school would accommodate 60 students per session for a five-month certificate course. 3.43 Expansion of the West Bengal Forest School. The State has a 70-year old institution of high standard giving training to Deputy Rangers/Foresters through a one-year certificate level course. The school accommodates 60 students from the State and 20 students from nearby States such as Sikkim, Manipur, Nagaland, Mazoram and the neighboring country of Bhutan. The project would enlarge the present facilities by constructing a hostel for an extra 40 students and staff quarters for additional teaching staff. Existing classroom space and other facilities are adequate for 120 students. 3.44 Design of buildings for both schools would be in accordance with existing government standards for similar buildings and which apply to all government departments. 3.45 Expansion of Training Facilities for Forest Extension Works (FEW) and Motivators. Training of 360 Forest Extension Workers (FEW) would be carried out in two existing buildings. However, additional facilities such as dormitories and kitchens would have to be constructed. Training of 1,000 Motivators would be carried out at the divisional level. No additional construction is envisaged as each divisional area has several centers and which can be used for training groups of 25-30 Motivators. Orientation training of divisional staff would also be given at these centers. Provision has been made under the project for a locally recruited consultant in com- munications and extension who would complement existing FD training staff. Public Relations Unit 3.46 The Public Relations Unit would be located in Calcutta and a Chief Publicity Officer (CPO) would be located in the office of the Additional CCF. Each Division (there are a total of 9 divisions) would have a Divisional Public Relations Officer (DPRO) to coordinate all activities associated with publicity and dissemination of information in his Division. Under the project funds would be provided for staff and equipment to operate three mobile audio-visual vans which would be controlled by CPO and which would support DPRO in their work. Assurances were obtained at negotiations that a Chief Publicity Officer would be appointed not later than December 31, 1981. Monitoring and Evaluation 3.47 The project would provide funds to establish a Monitoring and Evaluation Unit headed by a DCF and supported by statistical staff and enu- merators. The unit would study different designs for project implementation, assess villagers' acceptance of social forestry activities, determine survival percent of the farm forestry component and carry out a mid-term evaluation of the project. The unit would produce six monthly progress reports each June and December giving details of staff position in each field unit and at head- quarters; a summary of activities undertaken in the preceding six months; and targets achieved and problems encountered during project implementation.  - 2,2 - MEU would produce six-monthly progress reports. Funds would be provided for a locally recruited consultant to advise on the design of survey studies and assist in setting up systems for project monitoring. Assurances were obtained at negotiations that the MEU consultant and DCF would be appointed not later than December 31, 1981. Given the innovative nature of the schemes to encour- age small farmers and landless laborers to plant trees, it was agreed at negotiations that a study to be carried out at the end of the first project planting season and executed by an independent agency, would provide informa- tion for discussions between GOWB and IDA as to the effectiveness of these schemes. Fellowships 3.48 Fourteen 8-week overseas fellowships have been provided for senior SFW staff in management and forestry extension. Total cost is estimated to be US$168,000. Consultants 3.49 Seventy-two man/months of local consultancy time has been provided for stove technology, monitoring and evaluation and communication and exten- sion. Total cost is estimated to be Rs 288,000 (US$36,000). IV. COST ESTIMATES AND FINANCING A. Cost Estimates 4.01 Project costs are estimated at: Rs 348.65 M (US$43.5 M), of which US$2.27 M would involve foreign exchange expenditures. Duties and taxes included in total costs are estimated at US$1.3 M. Details of costs, summarized below, are given in Annex 7, Table 1-Table 5.  - 23 - Summary Cost Estimates --Rs M-------- --------US$ 1-------- % Total Component Local Foreign Total Local Foreign Total Cost F.E. Project Organization Staff Costs 41.21 - 41.21 5.15 - 5.15 16.0 - Operating Costs 8.20 5.44 13.64 1.02 0.68 1.70 5.4 0.68 Vehicles & Equipment 4.64 1.54 6.18 0.58 0.19 0.77 2.4 - Building & Housing 11.81 - 11.81 1.47 - 1.47 4.6 - Training & Fellowships 4.51 1.34 5.85 0.56 0.17 0.73 1.8 0.17 Research Unit 0.37 0.10 0.47 0.04 0.01 0.05 0.1 0.01 Plantings Strip Plantations 88.73 2.74 91.47 11.09 0.34 11.43 35.5 0.34 Village Woodlots 16.60 0.51 17.11 2.07 0.06 2.13 6.6 0.06 Degraded Forests 18.28 0.56 18.84 2.28 0.07 2.35 7.4 0.07 Farm Forestry 49.51 1.53 51.04 6.18 0.19 6.37 19.8 0.19 Stove Unit 0.43 - 0.43 0.05 - 0.05 0.1 - Monitoring & Evaluation 0.90 0.10 1.00 0.11 0.01 0.12 0.3 0.01 Total Base Cost 243.19 13.86 259.05 30.60 1.72 32.32 100.6 1.73 Physical Contingencies 10.08 0.30 10.38 1.26 0.03 1.29 4.3 - Price Contingencies 74.95 4.27 79.22 9.36 0.53 9.89 31.0 0.53 GRAND TOTAL 330.22 18.43 348.65 41.22 2.28 43.50 - 2.27 4.02 Cost estimates are based on actual costs for similar nursery, plant- ing and protection techniques at constant prices. Physical contingencies have been added to meet unforeseen expenditures at rates of 10% for housing, research and seed testing, and of 5% for nurseries and plantings. Price contingencies 1/ have been calculated in accordance with Bank estimates of future price movements in India. 1/ The following price contingency rates have been used: 1980/81 15.0% 1981/82 9.0% 1982/83 8.5% 1983/84-85/86 7.5% 1986/87 and after 6.0%  - 24 - B. Proposed Financing 4.03 An IDA credit of US$29.0 M, representing 69% of total project costs net of duties and taxes, is proposed: Project Financing G0WB/GOI IDA Total US$ El 14.5 29.0 43.5 X .33.0 67.0 100.0 The credit would be made to GOI on standard terms and would be channeled to GOWB on GOI's terms and arrangements for development assistance to the States. GOWB has confirmed that the project has been included in the State's Sixth Plan with sufficient allocation to cover the cost of the project. Written confirmation of GOWB financial arrangements for the project has been received by the Association. 1/ 4.04 In order to ensure an early start of project actions and speedy and effective implementation thereafter, retroactive financing, not exceeding US$1.0 M would be provided from January 1, 1981 to the date of credit signing for nursery expenditures incurred and advance work on land preparation and plantation protection necessary for the 1981 planting season. Retroactive financing would also cover additional st:aff who need to be in place by the start of the planting season and purchase of equipment and vehicles required for staff involved in tree planting. C. Procurement 4.05 Direct plantation works (US$22.29 M), including nursery expenditures, planting and protection works, and farm forestry would be scattered over a wide area and would be carried out over different periods of time. Therefore, contracts following competitive bidding would not be practical. Nursery works, including the production of seedlings, would be carried out by force account of the Social Forestry Wing (SFW) of the Forest Department. 1/ Land preparation, planting and maintenance for village plantations would also be carried out by SFW with varying degrees of participation from village panchayats (para 3.06). 2/ Materials such as fencing wire, tools, and fertilizers would 1/ GOWB would need approximately US$1.0 M for plantation and maintenance cost for years 7-10. This would not include maintenance cost for degraded forests which continue to year 30. 2/ Force account procedure would ensure participation by the local population and provide employment to small farmers and landless farm laborers living in the project area.  - 25 - be procured under local competitive bidding (LCB) in accordance with estab- lished local procedures that are satisfactory to IDA. Contracts for civil works (costing US$1.47 M) would be small and widely dispersed in time and place and, therefore, would not be suitable for international competitive bidding (ICB) and would be let following LCB, advertised locally, or by force account and in accordance with established GOWB procedures that are satisfac- tory to IDA. Design and supervision of housing and building construction would be carried out by WBFD or Public Works Department (PWD). Vehicles (US$0.34 M) would be purchased over five years, and, as adequate maintenance and availability of spare parts would be of paramount importance, this would necessitate purchase of locally made vehicles of types already used by Govern- ment departments. Thus, procurement would be by LCB under existing government procedures which are acceptable to IDA. Imported research equipment would be required in small lots, and would not, therefore, be suitable for procurement under ICB procedures. These items and other miscellaneous equipment (US$0.38 M) would be bulked whenever possible and procured through LCB except where valued at less than US$20,000 when they would be purchased by prudent shopping through usual trade channels. Stoves would be built departmentally by STW. The balance of project costs (US$7.0 M) would be staff salaries and related expendi- tures, training and fellowships (US$0.85 M) and contingencies (US$11.18 M). D. Disbursements and Audits 4.06 Disbursements under the credit would cover: (a) 70% of expenditures for civil works; (b) 100% of foreign expenditures for imported equipment, or 70% of locally procured vehicles and equipment; (c) 70% of direct planting expenditures and SFW operating costs; (d) 55% of incremental staff salaries; (e) 100% of the cost of training and consultant services; (f) 100% of costs of stoves; (g) 80% of the cost of monitoring and evaluation; and (h) an unallocated sum of US$0.8 M representing contingencies on the above categories. 4.07 Disbursements for all force account work, salaries, local training, civil works contracts costing less than Rs 300,000 and other procurement involv- ing expenditures of less than Rs 150,000 for vehicles and equipment for which it would not be practical to submit documents would be against statements of expenditures certified by the Additional CCF of SFW. These certificates of  - 26 - expenditure would be audited annually by the Government auditors and the audit report submitted to IDA as soon as available. Supporting documentation for these expenditures would be retained by the State Government for inspection in the course of project review missions. Assurances were obtained that separate accounts would be kept of expenditures made under the project. In addition, certified copies of project accounts would be submitted to IDA within nine months of the end of the fiscal year, such reports and audits would show, inter alia, that the funds withdrawn were used for the purpose intended, that goods have been received or work performed, and that payments have been made. All reports wouldl be submitted by GOB to the Department of Economic Affairs for subsequent transmission to IDA. V. ORGANIZATION AND MANAGEMENT Social Forestry Wing 5.01 The project would establish a SFW in West Bengal's FD. To handle increased administrative responsibility, an Additional CCF has been appointed and is directly responsible to CCF for all social forestry affairs. To cope with increased planting and maintenance programs, two social forestry circles covering a total of nine field units would be established and assurances were obtained at negotiations that the first would be established not later than December 31, 1981 and the second not later than December 31, 1983. Each unit would be headed by a DC and assisted by an Asst. DFO. The nine field units would cover all the State's 16 districts, i.e., one unit would cover more than one district depending on the size of the forestry program to be implemented. In addition, each field unit would be staffed by a FR who would supervise all subordinate staff and be technically responsible for implementation of all forest plantatior,s; DFR would supervise the physical implementation of planta- tions and would be assisted by FEW and Motivators. 5.02 The expansion of the State's social forestry program and the estab- lishment of a Social Forestry Wing would require two new cadres of field staff to undertake extension activities at the village and farmer level. FEW would be largely recruited from outside the Forestry Service and would have completed their secondary school education. In addition, they would be given eight weeks of training in forestry and extension methods which would be supplemented by monthly orientation training given at the divisional level by the DFO or the ADFO. 1/ FEW would be based at the block level 2/ and would encourage village panchayats and faLrmers to participate in the social forestry program by explaining to them the benefits to be derived. In addition, FEW would super- vise planting and. forest protection and visit village Motivators at least twice a month to supervise their work and solve problems arising from project 1/ For detailed information on training of FEW, see item 9 of Project File. 2/ 360 FEW would be recruited, 1-2 FEW to cover one Community Development Block, depending on the amount of forest land available.  - 27 - implementation. Village Motivators 1/ would be based at the village level and would be recruited either from among progressive farmers or village panchayat members. Motivators would be given a three-week training in simple communica- tion and extension techniques and a comprehensive orientation of the project and its objectives. Training of Motivators would be given at the divisional level by the DFO or ADFO and would be supplemented by a monthly orientation training. Motivators would coordinate operations in village woodlot establish- ment, private forestry and strip plantations. However, the main function of the Motivator would be to promote the farm forestry scheme. He would explain to farmers the benefits they would derive from the establishment of private plantations and keep records of individual plantings. He would visit farmers (individually or in groups) at least once a month to discuss problems that may arise from project implementation. If these cannot be solved satisfactorily the problems would be referred to the FEW or to the monthly orientation divisional meeting. In addition, they would carry out simple administrative activities such as monitoring of survival rate of trees, recording research trials at the village and farmer's level and provide a useful link between the FEW and the village panchayat and farmer. Motivators would be employed part-time and receive an honorarium of Rs 1,200 per annum. 5.03 Each Division would be staffed by a Divisional Public Relations Officer (DPRO) who would coordinate all publicity and communication activities in his area and be directly responsible to the CPO who would be attached to the office of the Additional CCF at headquarters. Research would be undertaken by two research units (one for each circle) and headed by a research assistant (for details on research program see Project File, item 8). A monitoring and evaluation unit (para 3.47) would be set up headed by a DCF. Project Coordination 5.04 Coordination of social forestry activities with programs of other government agencies at state and district levels would be achieved through two committees described below: (a) the State Policy Review Committee would meet as often as necessary but not less than once a year and would be chaired by the Minister of Forests. Among its members would be the Minister of Tribal Welfare; the Planning Adviser; Chairman of a Zilla Parishad; the Secretary, Department of Forests; the Secretary, Department of Agriculture; the Secretary, Department of Tribal Welfare; the Secretary, Department of Panchayat; the Land Reforms Commissioner; the Chief Engineers, Public Works Department; the Chief Conservator of Forests; the Additional Chief Conservator of Forests (SFW); the General Manager, North-East Frontier Railway; the General Manager, Eastern Railway; the General Manager South-Eastern Railway; and the Conservator of Forests (Social Forestry for Northern and Southern Circles. 1/ 1,000 Motivators would be recruited, 1 Motivator to cover 1-4 Village Panchayats, depending on the amount of forest land available.  - 28 - (b) the District Policy Review Committee would meet at least once every four months, would be chaired by the Chairman of the Zilla Parishad, and would include among its members the Collector of the District; the Executive Officer of the Zilla Parishad; two local members of the Legislative Assembly; Executive Engineers of the Public Works and Irrigation Departments; the Divisional Railway Manager; the Deputy Conservator of Forests; the District Agricultural and Animal Husbandry Officers; the District Tribal Welfare Officer; and selected members of Scheduled Classes and Scheduled Tribes practicing forestry within the District. Assurances were obtained at negotiations that the State and District Review Committees would be established not later than April 30, 1982. Training 5.05 The training of Forestry Extension Workers (FEW) would be carried out in two centers (one for each circle) in groups of 25-30. Most candidates would be recruited from outside the forestry service, though some candidates would be recruited from amongst forest guards. Training in basic concepts of forestry would be given by FD instructors. Training in extension would be given by extension officers from the Agricultural Department since FD does not have instructors qualified in this work. In addition, provision has been made for the recruitment of a local consultant in communication and extension to help design an extension program and organize short training courses for senior SFW staff. The training of FEW would last eight weeks and would be supplemented by additional one-day mont:hly orientation training (para 5.07). An outline of the curriculum is given in the Project File, item 9. Assurances were obtained at negotiations that the communication and extension consultant would be appointed not later than December 31, 1981. 5.06 Training of Motivators would be carried out at the Divisional level in groups of 25-30. Candidates would be recruited from among progres- sive farmers or village panchayat members. Each division would organize 21-day training sessions to be given by the DCF or ADFO and which would be supplemented by additional one-day mont:hly orientation training (para 5.07). 5.07 Orientation training would be given to groups of 25-30 Motivators, FEW, progressive farmers, deputy rangers and foresters. One-day training sessions held monthly would be given at. the divisional level by the DCF or the ADFO to approximately 150 field staff from the division. These sessions would concentrate Dn practical application of knowledge gained, group discus- sion and problems esncountered in project implementation. VI. PRODUCTION, MARKETING AND FINANCIAL RESULTS Yields and Product:ion 6.01 The main products of project plantations would be: fuelwood, bamboos, poles, animal feed, timber, edible fruits and pulpwood. Subsidiary products would include medicinal oils. Summaries of yields and production are given below and detailed in Annex 4, Table 3.  - 29 - Estimated Yields and Production Yields per ha at Full Total Production Product Development /a by the Project ('000) Fuelwood and Smallwood m tons 3- 10 4,975 m tons Poles (pieces) 70-150 160,434 (pieces) Bamboos Npieces) 150 average 117,220 (pieces) Timber m 3-5 1,261 m Fodder m tons 1-2 2,400 m tons Fruits m tons 1-2 450 m tons /a Based on performance in pure stands--figures given as a general guide, but results in mixtures proposed for study under monitoring and evaluation. Yields reflect differing survival rates under various ecological conditions. Sharing of Produce Between Villagers 6.02 The sharing of produce between villagers would vary according to the type of plantation and method of establishment. (a) Village Woodlots: Under the three schemes harvesting of fuelwood, poles, bamboo and timber would be undertaken by villagers for wages and organized by the village panchayat under the supervision of SFW. Under the free one ha demon- stration scheme (para 3.06(a)), the panchayat would decide whether forest produce would be distributed free or sold. Under the "loan" and "supervised" schemes (para 3.06(b)(c)), SFW would recover its loan or costs after the sale of forest produce, the balance would either be sold by the panchayat to establish additional village woodlots or the harvest distributed among the villagers. However, in all cases the village panchayat would take into consideration the needs of the landless and poorer sections of the community. (b) Farm Forestry: All produce (fuelwood, poles, bamboo, and fodder) would be the property of the owner. Assuming a farm family of six members would establish a mixed plantation of 0.25 ha on private or leased wasteland, at year 7 after establishment, the farmer would harvest 5 m tons of fuelwood, some 125 poles and about 100 bamboo pieces valued at current prices at Rs 750, Rs 600 and Rs 400 respectively. At year 14 after establishment the farmer would again harvest 6 tons of fuelwood, some 125 poles and about 250 pieces of bamboo valued at Rs 900, Rs 600 and Rs 1000 respeitively. Assuming a per capita annual consumption of 0.28 m or 160 kg of fuelwood requirements (totalling 960 kg per farm family), a farm family would be able to satisfy its fuelwood requirements from year 6 onwards and sell the balance (2 m ton) of the produce in the  - 30 - open market. The cash flow indicates earnings to the farm family of Rs 1000 at year 7 of the plantation and Rs 1900 a year 14 of the plantation (Annex 1, Table 10). Pitting is done in January/February and planting of seedlings in June. Both activities do not clash with the farmer's agricultural activities for paddy which are carried out in July/August for planting and November/December for harvesting. (c) Rehabilitation and Reforestation of Degraded Forests: Casual labor would be employed by SFW. The villagers of the locality would continue to be given 25% of harvestable produce free of cost (para 3.16). GOWB would provide to the Association, by December 31, 1981, the format and content of model contracts for the establishment of village woodlots, strip plantations and afforestation of private land (see Project File, items 2, 3, 4, and 5). 6.03 Fuelwood, poles, bamboo and timber from all areas but degraded forests would be marketed either from roadsides or from sale depots through the current practice of auctions. In view of the acute shortage of forest products, no marketing difficulty is foreseen for any of the products gener- ated by the project. Financial Results 6.04 The benefits expected from the project are considerable and, there- fore, it would be in the interest of GOWB to recover the major part of its investment. GOWB would recover labor and material costs of planting, technical supervision and overhead costs. The cost of seedlings would not be recovered as GOWB has decided to provide free seedlings for all social forestry activities. 6.05 In accordance with the methocl of sharing benefits detailed in para 6.02, the project's financial rate of return to Government would, at constant prices, be -3%; i.e., the return would pay off government investments in the project (including staff recruitment) in 30 years and yield a 3% interest rate on such investment at constant prices. The corresponding cost recovery index 1/ for the project over the entire period (30 years) would be 46%, if recovered at 12% interest rate (see Annex 2, Table 1). This index is considered satis- factory given that the project would provide employment to a generally dis- advantaged section of the population, meet some of the basic needs of rural communities, and yield substantial indirect benefits by improving the environ- ment. Further, in India and other countries, the costs of advisory services (e.g. agricultural extension and forestry services) are generally not recovered from beneficiaries. 1/ Ratio of NPV financial return to Government to the NPV of financial costs of Government.  - 31 - VII. BENEFITS, JUSTIFICATION AIhD RISKS Benefits 7.01 The increase in forest produce expected under the project would benefit all of the State's rural population, but enhanced employment oppor- tunities, cash incentives to farmers for private planting and the right of village people to gather free fodder, fruit and other minor produce would particularly favor the rural poor. 7.02 Fuelwood, Small Timber and Other Forest Produce. From project year 12 onwards, the average annual production of fuelwood from all fuelwood planta- tions would be 325,000 m tons. This would be sufficient to satisfy the needs of about 1.63 M people at the current annual consumption level of 160 kg of fuelwood per capita. Fruit production would be sufficient to provide 10 kg annually for some 7 M people (Annex 4, Table 3). The annual increase in fuelwood production over 30 years (228,000 m tons) would be equivalent to an annual saving of 600,000 tons of dung cake which could be utilized as an organic manure to increase agriculture production. 1/ This would result in an annual increase of 36,000 tons of foodgrains. 7.03 Conservation of Fuelwood. The introduction of some 10,000 improved stoves would result in savings of at least 5,000 m tons of fuelwood annually. 2/ Employment 7.04 Over the six year project period, 93,000 ha of idle or underutilized land would be brought into productive use, largely through use of labor. 3/ In total, some 15 N man-days would be required for project activities, equivalent to 9,000 people fully employed for six years. In practice, most forestry operations would be concentrated over a two to three month period each year. This would mainly benefit the disadvantaged sections of the population since most manual jobs, such as digging pits and trenches, are done by them. Environment 7.05 The major environmental impact of the project plantations is ex- pected to be on soil conservation, improvement to micro-climates and to some extent on the restoration of soil fertility. Most of the tree species to be planted are indigenous or are well known and naturalized in India and in many of the plantation models up to 50% of the trees planted would be leguminous and therefore, able to fix atmospheric nitrogen. In farm forests and village plantations the protection from grazing and trampling, in association with 1/ 1 m ton of fuelwood is equivalent to 2.63 tons of dung cake. 2/ Assuming a traditional stove consumes 1,000 kg of wood annually, an improved stove would be expected to save at least 500 kg. 3/ Labor represents 94% of direct planting expenditure.  - 32 - the cutting and harvesting of grasses and fodder would improve the infiltra- tion of water into the soil, reduce groutnd temperatures and improve soil structure. Strip plantations along roadsides, canalsides and railways would assist in controlling gulley erosion and. improve conditions for people and animals using the road. 7.06 Negative esffects of project plantations are expected to be few, particularly as most of the plantation models contain mixtures of species which are potentially more stable ecologically than monocultures and which are likely to be sustainable for long-term production. However, if energy farming or large scale monoculture plantations are used and rapid and repeated removal of vegetative material takes place, situations might arise where the soil nutrients are depleted. The first signs of this will become apparent in the changes of productivity of the sites and these will be monitored. Economic Rate of Return 7.07 Benefits. The project's primary quantifiable benefits are increased production of fuelwood, fodder, timber, bamboo and other minor forest produce (fruit and edible oil). To obtain the incremental benefit stream, benefits from existing production (i.e., without the project) have been deducted from the total project output. 7.08 Efficiency Pricing. Key assumptions and adjustments made in the economic analysis of the project in effiziency prices are as follows: (a) Economic Cost of Unskilled Labor. The wage rate for labor in domestic prices is best reflecited in the free market wages, which vary during the year. During the planting and harvesting seasons (June-July and October--November), there is virtually full employment. At this time, the observed wage rate equals Rs 6.0/man day; this rate has been applied to project labor employed in those months (30% of total project labor). In the period of November to April, when the bulk of project activities would take place (70% of required labor), the observed wage rate is about Rs 3.0/man day. The financial cost of project labor was estimated as a weighted average of prevailing rates during peak and low labor demands at Rs 3.9/man day. In the economic analysis, a shadow wage rate of Rs 3.12 or 80% of the financial cost has been used as the economic cost of unskilled labor. (b) Border Price Ratios. Different. conversion factors have been used for the major categories cf project costs to reflect the different degrees of distortion. to which they are subject to in the Indian economy in relation to international (border) prices:  - 33 - Category % of Project Cost Conversion Factor Unskilled labor 63 0.80 Staff Salaries 16 0.80 /a Materials 6 0.72 /b Vehicles & Equipment 2 0.90 Buildings 5 0.75 /c Others 8 0.80 /a Standard Conversion Factor (SCF). /b Appraisal mission estimates. /c Construction C.F. as calculated for Gujarat Social Forestry Project Report (1943a-IN). (c) Output Prices. Financial prices of fuelwood, poles, bamboo and other minor output multiplied by the Standard Conversion Factor (SCF) 0.80, have been estimated to represent the economic value of these items (Annex 4 Table 2). 7.09 Internal Rate of Return. Since overhead costs do not vary with the size of any particular plantation model, a separate rate of return (ROR) for each model was not calculated. However, as indicated in Annex 3, Tables I and 2, NPV for each model has been calculated separately on an incremental basis and each model would make a positive contribution. Over a 30-year period, the overall rate of return would be 27.9%. Net present values and sensitivity analysis on NPV and ROR are presented in Annex 3, Table 2. Project Risks 7.10 The project faces no major risk in termis of an unsatisfactory rate of return since the ROR could withstand huge cost increases up to 100% and substantial price drops (up to 50%) or large losses, such as destruction by livestock (up to 50%), each of which is improbable (Annex 3, Table 3). Cost estimates are based on actual costs of past plantings. Forest products are becoming increasingly expensive as a result of the ever-growing shortage. Protection of project plantings would be no more riskier than the methods previously used with a large degree of success on similar plantings. 7.11 There is a risk that free distribution of seedlings might lead to some waste. Statistics regarding the survival rate of trees distributed to the public are not reliable. For this reason, the project monitoring and evaluation unit would continuously monitor the actual survival rate through spot checks (para 3.47) and would study the overall impact of the free dis- tribution of seedlings. 7.12 The establishment of village woodlots may run into similar diffi- culties as in the Uttar Pradesh and Gujarat projects where there has been lack of leadership, insufficient incentives and socio-economic inequalities in village panchayats (para 3.08). However, since panchayat elections held in June 1978, there has been a marked revival of panchayat activity in West Bengal with a greater representation of young, educated, small farmers. Furthermore, over the past three years the State has assigned to panchayats  - 34 - numerous public works and reconstruction programs which have been implemented satisfactorily. GOWB is now eager to establish communal village woodlots through village panchayats, but for the reasons mentioned in para 3.08, the original GOWB proposal has been reduced from 12,000 ha to 6,000 ha, which should be well with:in the capabilities of the organization established under the project. 7.13 There is a risk that village panchayats may not be sufficiently well organized to as;sume responsibility for the efficient management of strip plantations after SFW has recovered its direct costs. However, because the beneficiaries are li-ving nearby, it is expected that the local population would pressure their village panchayats into protecting their interests and assume the management of these plantations (para 3.13). Moreover, further improvement of the panchayat system during the project period should enable most village panchayats to assume this responsibility. 7.14 The introcluction of more efficient wood burning stoves in social forestry projects in India and Nepal has had little success partly because there has been a failure to adapt stoves to different climatic and social needs, and partly because management of social forestry projects have not made a determined ef fort to introduce improved stoves in rural areas (para 3.32). The improved stove would save 30-50% fuelwood and allow the smoke to escape through a constructed smokestack. GOWB felt that efforts should continue to be made to introduce improved stoves in rural areas, as at present the traditional stove burns an excessive quantity of dung and wood, and emits excessive smoke (when cooking is done indloors) which has caused respiratory and eye diseases especially to women and children. 7.15 Overall risks are low. Nevertheless, to optimize the objectives of the project, particularly with regard to community activities and the impact of farm forestry, an interim evaluation of the project would be carried out in year 4 to draw lessons for future act:ivities of the program (para 3.04). Assurances were obtained at negotiations that GOWB would submit a mid-term evaluation report to IDA for joint discussion by March 31, 1984. VIII. RECOMMENDATIONS 8.01 During negotiations, assurances were obtained that: (a) GOWB would keep separate accounts of expenditures made under the project and they would be audited annually and the audit report submitted to IDA as sooni as available (para 4.07). (b) the CPO in charge of the Public Relations Unit and the DCF in charge of the Monitoring and Evaluation Unit would be appointed not later than December 31, 1981 (paras 3.46, 3.47 and 5.05); (c) the consultants for stove technology, monitoring and evalua- tion and communication would be appointed not later than December 31, 1981 (paras 3.33, 3.47 and 5.05);  - 35 - (d) two new circles for social forestry would be established, the first by December 31, 1981 and the second by December 31, 1983 (para 5.01); (e) the State and District Committees would be established by April 30, 1982 (para 5.04); and (f) GOWB would prepare and submit to IDA by March 1984, a mid- term evaluation on the progress of the project (para 7.15). 8.02 In order to prepare for the 1981 planting season, it is recommended that there be retroactive financing of up to US$1.0 million to cover nursery, staff, construction, equipment and vehicle expenditures from January 1, 1981 until the signing of the proposed project (para 4.04); 8.03 With the above assurances and conditions, the project would be suitable for an IDA credit of US$29.0 million on standard IDA terms. The Borrower would be the Government of India.  0 '0 0 '2 - 2- 0 - 0 0 02 0' -, 0 O o '. o . 0 0 0- 0. 0 0 00 0 02. - 0 -~~~~~~~~~~~~~~ - - - - - - - - - - - - - - -0 0 0 0 0 0 0 0 0 -00- 0.-00-0 0--20 -0 - 0 -.--- - 00-0 0-0 00--.00- -0 0 0- - -0 0 - - -- - - -- - --- - - -0 0 0 0 0 0 - 2-0 - 2 00-0 0 - 0 - 000000 00-0-20 - 0 - 00 - - 0 - - --- -. - - - -0 - 0- - 0 -  INDIA WEST BENGAL SOCIAL FORESTRY PROJECT Model I -Strps on Main Roads_( ha) Years 0 1 2 3 4 5 6 7 8 9 10 1! 12 13 14 15 16 17 18 19 20 21 22 23 24 25-30 COSTS (Rs) Labor 875 2238 365 260 260 260 - Materials 60 342 Total 935 2580 365 200 260 260 GROSS PRODUCT Fuelwood/Smallwood (mt) - - - - - -- 21 - 1.25 - 3.75 -- 21 - 1.25 - 3.75 - 15 - - 1.25 - 3.75 12 - Poles (no) - - - - - -1000 - - - 1000 - - - - 500 - - - - 400 - Timber (m3) - - -- - - - - - - - - -- - - - - - - - - - - - - - Bamboo (no) - - - - - - - - - Fodder (mt) - 1 1 1 1 1 1 1 1 1 1 ; 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Fruits (mt) - - - - - - - 1.6 1.6 1.6 1.6 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 INCOME Fuelwood/Smallwood (150 Rs/mt) - - - - - - 3150 - 187.5 - 562.5 - 3150 - 187.5 - 562.5 - 2250 - 187.5 - 562.5 - 1800 Poles (5 Rs each) -- - - - - 5000 - - - 5000 - - - - - 2500 - - - - - - Timber (400 Rs/m3) - - - - - - - - - - - -- Bamboo (4 Rs each) - - - - - - - - - - - - - - - - - - - - - - - - - Fodder (15 Rs/mt) - 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 Fruit (200 Rs/mt) _ - _ - - _ _ 320 32 0 20 400 400 400 400 400 400 400 400 400 400 400 400 400 400 400 Total - 15 15 15 15 15 8165 335 522.5 335 897.5 41., 8565 415 502.5 415 977.5 415 5165 415 602.5 415 997 415 2215 415 Expenditures incurred by Government prior to project, generally associated with tree nurseries. . 1~  -38 ~~~~~~~~ANNEX 1 '| | -9t * "~* , no|I Tsble 3 101 e I InI I -11