Haiti - Forestry Project

Document of 4 The World Bank FOR OFFICIAL USE ONLY Report No. 3776a-HA STAFF APPRAISAL REPORT HAITI FORESTRY PROJECT May 12, 1982 Projects Department Latin America and the Caribbean Regional Office This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Gourde (G) 1 = US$ 0.20 WEIGHTS AND MEASURES Metric System GLOSSARY OF ABBREVIATIONS AFVP - French Association of Volunteers for Progress BCA - Agricultural Credit Bureau BRH - Bank of the Republic of Haiti CARE - Cooperative for America Relief Everywhere CIDA - Canadian International Development Agency DARNDR - Department of Agriculture, Natural Resources and Rural Development FA - Agricultural Fund (Germany) FB - Forestry Bureau FAO - Food and Agriculture Organization FAMV - Faculty of Agriculture and Veterinary Medicine GOH - Government of Haiti GTZ - German Agency for Technical Cooperation HACHO - Organization of Haitian Communities IDA - International Development Association IDB - Inter-American Development Bank IDRC - International Development Research Center NGOs - Non-Governmental Organizations ODN - Development Organization for the North OAS - Organization of American States PVOs - Private Voluntary Organizations SACs - Agricultural Credit Societies SHADA - Haitian-American Society for Agricultural Development SONAMAR - Society of Friends of the Tree USAID - United States Agency for International Development VP - Volunteers for Progress (French) GOVERNMENT OF HAITI FISCAL YEAR October 1 - September 30  FOR OFFICIAL USE ONLY HAITI FORESTRY PROJECT STAFF APPRAISAL REPORT TABLE OF CONTENTS Page No. I. BACKGROUND ...................................... 1 A. Project Background .............. . ... 1 B. The Energy Sector. 1 C. The Agricultural Sector . 2 Structure of Agricultural Production ........... 2 Land Tenure and Farm Size ......2 Technical Constraints ................ 2 Institutional Constraints ..................... 3 World Bank Group Strategy in Agriculture. 3 Experience with the Rural Development Project in the Northern Department ............. 4 D. The Forestry Subsector . 4 Resources . 4 Fuelwood Production and Marketing 5 Land Tenure. 6 Legislation ................ 6 Institutions ....... . .... .*........... 7 Research and Education . .7 Forestry Programs and Projects. 7 Development Objectives and Strategies 8 II. THE PROJECT AREAS.... 8 A. The Foothills Area near Port-au-Prince (Cul-de-Sac). 8 B. The Northwest Peninsula . .9 C. The Pine Forest of La Selle. 10 III. THEEPROJECT ............................................ il A. Objectives and Brief Description. il This report is based on the findings of an appraisal mission which visited Haiti in June 1981 and a post-appraisal mission in September 1981. The appraisal mission comprised Messrs.J. Pelissier (IDA), W. Beattie (IDA) and H. Kernan (FAO Consultant), and the post-appraisal mission comprised Messrs.Pelissier and Beattie. 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.  Table of Contents (Continued) - - Page No. B. Detailed Features ...... .... .... .......................... 13 Reinforcement of the Forestry Bureau .......... 13 Forestry Training and Education ............. ... 14 Fuelwood Species Trials ........................ 15 Pilot Fuelwood Plantings .................... ... 16 Pine Forest Management ......................... 16 Development and Promotion of Fuel-Efficient Stoves ....................................... 17 Preparation of a Second Phase .................. 18 C. Project Implementation ........................... .. 18 D. Project Cost Estimates ............................. 18 E. Proposed Financing .............. ................ ... 19 F. Procurement and Disbursement ....................... 21 Procurement .................................. ... 21 Disbursements ................................ ... 21 G. Accounts, Audits and Reports ......... .. ............ 22 Accounts and Audits ............ .. ............... 22 Reports ........................... ............... 22 IV. ORGANIZATION AND MANAGEMENT ............................. 22 A. Organization ....................................... 22 B. Staffing ........................................... 23 V. PRODUCTION, MARKETING AND FINANCIAL RESULTS ...... ....... 24 A. Production .............. ........... ................. 24 Fuelwood Plantings .......... .................. 24 Pine Forest ..... ................................... 24 B. Marketing .......................................... 24 Markets ..................... ................ 24 Prices .................................... 24 C. Income and Financial Results ....................... 26 Income ........................................... 26 Government Cash Flow ..... ................ ........ 26 VI. BENEFITS AND JUSTIFICATION ..... ................... ..... 26 A. Benefits ........ ........ .. ....... .................. 26 Direct Benefits .............................. .... 26 Indirect Benefits ............................ .... 27 B. Economic Analysis and Rate of Return .............. . 27 C. Risks .............................................. 27 D. Environmental Impact ... ...... ..................... ...... 28  - iii - Table of Contents (Continued) Page No. VII. AGREEMENTS REACHED AND RECOMMENDATION .... ............... 28 ANNEX 1. Terms of Reference for Expatriate Staff ANNEX 2. Financial and Economic Analysis Table 1 - Financial Analysis of the Pine Forest Management Component ..................... 42 Table 2 - Costs and Returns of Pine Forest Mana e ent ............................... 43 Table 3 - Estimated Value of Fuelwood Produced at the Pine Forest .......................... 44 Table 4 - Estimated Incremiental Sawnwood Production with Project ............................. 45 Table 5 - Estimated Forest Area, Potential Fuelwood Production and Fuelwood Balance .... ...... 46 Table 6 - Retail Price of Charcoal and Kerosene .... 47 ANNEX 3. Supporting Tables and Chart 1. Costs per Year, Reinforcement of Forestry Bureau ....................................... 49 2. Costs per Year, Total Training, and Education 50 3. Costs per Year, Training and Education under Project ...................................... 51 4. Costs per Year, Fuelwood Plantations, Port-au-Prince Area .......................... 52 5. Costs per Year, Fuelwood Plantations, Northwest Area ............................... 53 6. Costs per Year, Pine Forest Management .... ..... 54 7. Costs per Year, Development of Improved Cooking Stoves ............................... 55 8. Costs per Year, Preparation Second Phase ....... 56 9. Account Category by Time ....................... 57 10. Account Category by Component .... .............. 58 Chart 1. Implementation Schedule ................. .. 59 ANNEX 4. Documents Available in Project Files MAPS Situation Map IBRD 15925 Project Area Map (Pine Forest) IBRD 15926   HAITI FORESTRY PROJECT I. BACKGROUND A. Project Background 1.01 In 1978, the Government of Haiti (GOH) indicated its interest in IDA support of a forestry project. Following an agricultural sector review carried out as part of the economic mission of 1978, the idea of a pilot project was developed, and a project was identified by an IDA mission in 1979. Further identification was carried out in 1979 by FAO/CP, and preparation completed in 1981. 1.02 The project would essentially provide technical assistance, and would constitute the preparatory stage of a full-scale program designed to reverse the trend toward depletion of the country's forests which constitute its major energy resource base. B. The Energy Sector 1.03 In 1980 the population of Haiti with a land area of 2.8 million ha was close to 5 million, of which almost 25% was urban, with 750,000 living in Port-au-Prince, the capital. The IDA energy sector mission of 1980 esti- mated that wood currently meets about 72% of Haiti's energy needs. About 95% of the total wood consumption of the country is for energy, and consumption of this category is expected to increase by 3% annually. Oil supplies 17% of the country's energy requirements; hydro-power, 3.3%; and bagasse, 7.7%. The urban sector absorbs over 90% of the electricity supply and uses approximately 50% of charcoal production. 1.04 Petroleum consumption has increased at an average yearly rate of 10.6% since 1973 and was estimated to be worth US$45 million in 1979/80. If present trends do not change substantially, oil imports will become a heavy drain on Haiti. The hydro potential is limited. About a third of the economically feasible mean annual generating potential has already been developed. 1.05 There may be favorable prospects for hydro-carbon development and exploration is underway. Lignite deposits exist in the Central Plateau and the Southwest Peninsula. The extent of the reserves is still not well known, but it is unlikely that they will be able to alleviate the pressure on forestry resources. A major limitation is the high sulphur content, which precludes the use of lignite in cooking stoves because of toxic fumes. In view of these constraints relating to energy sources, the role of wood in meeting the country's energy needs is likely to remain highly significant in the foreseeable future.  C. The Agricultural Sector Structure of Agriculture Production 1.06 The agricultural sector contributed about 40% of GDP and about 60% of total merchandise exports from 1977 to 1979. About 73% of the employed population worked in agricultural activities as reported in the 1971 population census. However, declining agricultural exports and increasing food imports indicate poor agricultural performance. 1.07 Cash crops account for about 34% of the total value of the production of agricultural commodities, of which the most important are coffee, comprising 20% of the total value; sugarcane, 10%; and cocoa, sisal and cotton, an aggregate of 4%. The major food crops are rice, corn, plantains and beans, which, together with millet and sweet potatoes, comprise about 56% of total agricultural production, while livestock represents some 10%. Most farmers keep a a few head of livestock; hogs are the most important (although currently affected by African swine fever), followed by beef cattle. Land Tenure and Farm Size 1.08 According to a 1970 survey, about 60% of all farms were owned by farmer-operators, about 25% were rented and sharecropped from private owners, and the rest were under other forms of tenure, with few farmers having clear titles to their land; the lack of security of tenure is a constraint to agricultural progress. This factor also affects forestry development, which requires long-term investments. The average number of parcels per farm is around three. Fragmented landholdings, particularly in different ecological zones, are often sought by farmers because they provide some security against crop failure in any one area. Wage labor is widely used in some parts of Haiti. While evidence suggests that the number of landless laborers is relatively low, many of those who occupy land have such small holdings that they must supplement their farm earnings with income from other sources. The agricultural population density per 100 ha of crop area is 400. According to the 1971 agricultural census, about 46% of farmland was in farms of less than 2 ha and 73% in farms of less than 4 ha. Only about 8% of farm- land is in farms greater than 10 ha; the larger holdings occupy the most productive flatland and are devoted primarily to sugarcane. Technical Constraints 1.09 Haitian agriculture is characterized by low yields, the principal causes being: (a) lack of improved varieties; (b) poor cultural practices; (c) inadequate use of water resources; (d) insufficient soil and water conserv- ation; (e) endemic pest problems and (f) little or no use of fertilizer. 1.10 It has been estimated that some 226,000 ha of soils could be suit- able for irrigation. Of this area, 66,000 ha are currently under some form of irrigation, primarily from surface water, and another 11,000 ha could be irrigated without major investments. Only a few thousand hectares benefit from irrigation with full water control, and much of the irrigation system needs to be rehabilitated.  1.11 Soil erosion affects most areas of Haiti; it results from heavy population pressure on land and forests, scarcity of flat or moderately sloping land, and poor utilization of soil resources, especially in the productive valleys and plains. According to FAO estimates, the country loses some 15 million cubic meters of soil yearly, corresponding to 6,000 ha of land and, although most of the eroded land is still usable, especially for tree planting, productivity is declining rapidly. Other erosion effects are: (a) poor utilization of water because of excessive runoff and higher fluctuations of the underground water supply, causing shortages of irrigation water in dry areas; (b) disruption of irrigated agriculture; and (c) rapid siltation of the Peligre reservoir, the country's major hydroelectric resource. Institutional Constraints 1.12 The general weakness of agricultural support services has been a major handicap in tackling the technical constraints of the sector. The various services of the Department of Agriculture, Natural Resources and Rural Development (DARNDR) are not yet sufficiently funded. Its low share in budget expenditures compares unfavorably with the sector's important contri- bution to the national economy and it translates directly into limited outlays for field expenditures. Of DARNDR's 400 graduate technicians, less than half are presently assigned to the districts. Moreover, staff assigned to the field lack the means to operate efficiently. Relatively adequate funding and staffing of field programs are restricted to areas or projects supported by external agencies. 1.13 Duplication of effort, lack of coordination, and lack of effective programs aggravate the weakness of the agricultural support services. The activities of the various technical assistance and voluntary agencies are not coordinated, which often results in poor utilization of scarce resources, and programs are often fragmented and lack firm orientation toward specific goals. The absence of technical packages is due to the paucity of research data, which itself reflects the lack of continuity of technical assistance programs. The establishment of regional development agencies.such as the Development Organization for the North (ODN), should help improve the situation by getting all agencies within a region to move in the same direction and participate together in well-planned regional programs. 1.14 Another important aspect of the institutional framework relates to the lack of an effective community structure. The Haitian farmer is strongly individualistic, and an active cooperative tradition is absent. Different informal organizations, however, exist among rural neighbors and might be developed to become instruments of rural development. A number of agricultural credit societies (SACs) have been created to secure credit and ensure collective guarantees, and community councils have been established throughout the country for community improvement (road repair, maintenance of irrigation works, school building and maintenance) through self-help. Some of these councils are effective, while others seem unable to distribute benefits equitably among their members. World Bank Group Strategy in Agriculture 1.15 Taking into account the inadequate infrastructure, weaknesses of the support services, especially at the central level, and lack of skilled local staff, the Bank Group's strategy, and that of other sources of external  assistance such as IDB and GTZ, has been to support the Government's policy of regionalization by financing regional development programs. This strategy is currently applied in support of the Rural Development Project in the Northern Department (Credit 675-HA), details of which are given below. FAO, OAS, USAID and IDB are providing technical assistance to DARNDR to help its institutional development. Experience with the Rural Development Project in the Northern Department 1.16 The project, started in 1977, aimed at the improvement of physical infrastructure (irrigation, roads, markets, water supply) and crop production through applied research, credit and extension. It has, however, experienced serious problems during its early stages, because of: (a) initial delays in recruiting international and national staff; (b) weaknesses of local staff and participating agencies; (c) slippage in counterpart financing; (d) lack of technical packages; and (e) inadequate knowledge of the physical and human environment. The irrigation component was substantially reduced, mainly because of institutional weaknesses, but a good beginning has been made recently on the organization of farmers for effective water distribution. With the input of effective technical assistance provided by the aid agencies of France and the Federal Republic of Germany, a replicable regional develop- ment institution has been established and staffed, and a regional coordinating mechanism has been set up; this could lay the basis for sustained improvement, provided Government funding and support are maintained at adequate levels. Constraints to development in the region have been identified and though Government support was slow until 1981, progress is being made. A successful program of field trials is helping develop suitable technical packages; and potable water supply systems are being established to serve thousands of people in rural areas. The implementation of other components, especially roads, has improved; the pace of IDA credit disbursement has accelerated; and a follow-up project is under consideration. A major unresolved issue, however, relates to the inadequacy of arrangements for cutting and milling of sugarcane in the project area. Some steps have been taken by the Government but further action is necessary. The matter will be pursued with the Government on the basis of the findings of a consultant who is now engaged in determining the present status of these problems. 1.17 The other IDA-supported project in agriculture is the Agricultural Rehabilitation Project (Credit 1106-HA) which is intended to help restore agricultural production in the area affected by hurricane Allen, through the supply of inputs, credit, the expansion of nurseries and the construction of farm service centers. The project became effective in October 1981. D. The Forestry Subsector Resources 1.18 Of a total of 2,770,000 ha of the total land area of Haiti, forest lands comprise about 930,000 ha, or 33% of the land area; a total of 830,000 ha is cultivated and 500,000 is in pastures. Much of the forest land is highly degraded, with only a few trees per hectare. Of the total forest land, broadleaf species in scattered clumps occupy about 150,000 ha. Another 70,000 ha of humid highland are occupied by highly degraded forests of West Indian  - 5 - pine (Pinus occidentalis), and some 20,000 ha of mangrove occupy tidal marsh- land. The remaining 691,000 ha consist of degraded woodland, primarily on land with limited rainfall, scattered in various parts of the country, especially the Northwest Peninsula and the coastal areas along the Gonave Gulf (Map 15925). The formerly abundant forest resources of the country have been severely depl5ted over the years.3 Exports of mahogany, for instance, plummeted from 18,600 m in 1845 to 5,300 m in 1860 and to zero in 1934. 1.19 The natural tree vegetation varies widely according to the ecology: (a) In the humid highlands (800 to 2,000 m elevation, and over 1,000 mm rainfall), the main trees are Didymopanax tremulum, Brunellia comocladifolia, Ofcocanax capitatum, Weinmannia pinnata, and Carya fagdenni; they also include the best stands of Pinus occidentalis (West Indian pine). (b) The forests of the sub-tropical lowlands with high rainfall (over 2,000 mm) include Didymopanax morotoni, Byrsonima spicata, Alchornea latifolia, Guarea trichilioides, Buchenavia capitata. and Pinus occidentalis. (c) The humid lowlands (1,000 to 2,000 mm) are the habitat for the main economic hardwoods: Swietenia mahogani (mahogany), Catalpa longissima (oak), Haematoxylon (logwood), Simaruba glauca (ash), Colubrina ferruginosa (ironwood); other common trees include Roystonea regia (royal palm), Anacardium occidentale (cashew nut), and mangoes. (d) The dry subtropical forest (500 to 1,000 mm rainfall) occupies large areas; the main tree species are Phyllostylon brasiliensis (boxwood), Prosopis juliflora (bayahonde), and Guaiacum officinale; the latter two are in high demand for charcoal. Other common species include Coccoloba laurifolia, Metopium brownei, Ouratea ilicifolia, Jacquinia, Leucaena glauca, Amyria, Samyda, Crythroxylon, Exostema, and legumes of the Croton and Capparis spp. In many areas, the desirable fuelwood species (bayahonde, guaiacum) are subject to overcutting and are in regression, being replaced by xerophytic species, especially Opuntia antillana (cactus) and Euphorbia lactea (milkstripe euphorbia). Fuelwood Production and Marketing 1.20 Total estimated wood co sumption for energy is estimated at 4 million m3 annually, of which some 640,000 m are converted to charcoal. They are equiva- lent to some 80,000 ha of dry forest cut every year. The rate of natural regrowth and the current rate of reforestation (para 1.27) are not sufficient to keep pace with the rate of consumption. About half the production is in the Northwest peninsula and the balance comes from other low rainfall areas, especially along the Gonave gulf and portions of the Southern Coast on the Caribbean Sea. Production has declined in the area near Port-au-Prince as a result of heavy deforestation. Production increased in the Northwest because of depletion of forests in areas close to the capital and the droughts of the 1970s which resulted in charcoal becoming a major source of income in the context of crop failure.  1.21 Firewood for direct use is collected as dry or dead wood for home consumption or for sale, and is used mostly in rural areas. It is sold directly to the consumers by the harvester, or through a wholesaler. Some wood for charcoal production is harvested green, either from public land, or under a sharecropping arrangement on private land. Charcoal is produced in pit kilns in which the wood is piled on the ground, and covered with an inside layer of grass or leaves, and an outside layer of soil. Charcoal makers sell charcoal to intermediaries who, in turn, sell to shippers who supply the urban areas. Charcoal makers can be local farmers working part-time, or full-time workers who are usually landless and otherwise jobless; in either case, they usually have no economic alternative, and their incomes are extremely low. It is estimated that charcoal-making and fuelwood and charcoal marketing give employment to some 50,000 people. 1.22 Until recently, sawtimber production amounted to some 5,000 m3 per year. Poles are commonly used in low-cost construction, but the amount so used is difficult to estimate. There were four sawmills in the country but none is currently in operation. Cutting for these mills in recent years was indis- criminate, and led to waste and to ecological deterioration. In late 1980, the Government terminated all logging contracts with private interests, assumed the management of existing pine stands, and forbade cutting of pine trees. With the exception of a few scattered hardwoods including mahogany, these pine forests are Haiti's only potential source of commercial lumber. Land Tenure 1.23 Much of the forest and scrubland belongs to the state and is admin- istered by the Land Division of the General Revenue Service, an autonomous agency of the Ministry of Finance. DARNDR has no jurisdiction over this land; efforts to create national forests managed by a forestry division have been opposed by the Revenue Service which is collecting revenues by renting land to individuals. Yet some 164,000 ha of land have been declared classified forests; these forests, however, have no well-defined boundaries and are not adequately protected. In agricultural areas which include woodland, a majority of farmers claim ownership of at least part of the land, but few can back their claim with clear titles. As a rule, trees on private land are better protected and cared for; for instance, species such as mahogany and West Indian pine are preserved, as integral parts of the traditional agro-forestry system. Legislation 1.24 The current legislation includes the rural code of 1962, a number of organic laws which have an incidence on forestry, and some 50 laws, decrees or administrative decisions dealing directly with forestry. It provides for the protection of natural resources, the control of logging, and the creation of forest reserves. However, the legislation has not been effectively enforced, for lack of funds and personnel, and because of institutional weaknesses. In 1975, FAO forestry specialists submitted to the Government a proposed law on forestry development which would imply a thorough revision of the existing legislation. The proposed text deals with institutions, forest classification, forest management, funding, protection, and logging. It would be an objective of the proposed forestry project to have a revised forestry law adopted for Haiti by the end of PY4 (para 3.14). The FAO proposal would be revised or at least serve as a starting point for a forestry legislation review by a consultant.  -7- Institutions 1.25 The DARNDR has responsibility for forestry. It includes a Division of Natural Resources and Irrigation. One of the branches is the Forestry Bureau (FB) manned by two of the only three employees in the country with forestry training. The official field personnel list includes 37 forestry agents, 96 forest rangers, 25 timber control agents, and five reforestation agents, none of whom has forestry training. They are poorly paid and concern themselves primarily with fiscal and police functions. Research and Education 1.26 No forestry research is currently being carried out by DARNDR. Some adaptation trials of imported tree species have been conducted under various projects, with external assistance, especially from FAO, but with little or no follow-up after termination of the assistance. An inventory of the pine forest resources by photo-interpretation was carried out in 1976/77 under an FAO sponsored project. There is no forestry education program in the country, except for a course in forestry and soil conservation as part of the general curriculum of the agricultural institute of Damien. Of the agronomists who have received overseas training, three are employed in this field in the DARNDR. In 1979 a center was established at Limbe in the North to train DARNDR field staff in soil conservation techniques, but forestry as such is not included in the program. Forestry Programs and Projects 1.27 The program of DARNDR is limited largely to the operation of a tree nursery in each of the 12 agricultural districts of the country. The nursery program for 1980/81 provides for the production of 1.4 million trees, enough for about 1,000 ha for the year. Tree planting programs under various projects, however, covered only 120 ha, showing a wide gap between seedlings produced and trees actually planted and surviving. The total area planted to date under the various programs is probably between 500 and 700 ha. Current activities in forestry development include (a) reforestation and stand improve- ment in the Northwest under the auspices of the Organization of Haitian Communities (HACHO) on several hundred hectares; the operation is carried out by the German-sponsored "Fonds Agricole" and (b) "Operation Double Harvest" with planting of fast growing leucaena and other species near Port-au-Prince. USAID approved in July 1981 a grant of US$8 million to finance forestry devel- opment by semi-governmental and private organizations, without involvement of the Forestry Bureau. Over a four-year period, this project includes (a) support of the Operation Double Harvest to develop seed and seedling production and establish demonstration tree farms in a variety of ecological zones; (b) support CARE/HACHO to establish three nurseries and implement agroforestry plantings in the Northwest through private voluntary organizations (PVOs) and community groups; (c) support the Pan American Foundation with an agroforestry extension program, especially in the Southwest and near Port-au-Prince, through PVOs and community groups; and (d) provide an overall project coordinator and backstop- ping. The proposed IDA-supported project is designed to avoid duplication and would complement the USAID project through institution building and technical assistance. In 1981 the Government created a Society of Friends of the Tree (SONAMAR) which is intended to (a) educate the population about soil conserv- ation and forestry, and (b) promote tree planting and terracing by local communities.  -8- Development Objectives and Strategies 1.28 The main elements of the Government's emerging policy include: (a) reforestation of critical areas for erosion control; (b) reduction of sawtimber deficit through management of existing pine stands and tree planting; (c) training of Haitian personnel in forestry and conservation; and (d) updating of forestry legislation. A master plan prepared by DARNDR aims at (a) creating a national forest domain; (b) reforesting; (c) soil and water conservation; (d) control of logging; and (d) reinforcement of the Forestry Bureau. More recently, the DARNDR has been giving top priority to preserving the remains of the natural pine forests, especially the forest of La Selle in the South, and is preparing a program of conservation of natural resources under the new five-year plan. 1.29 Haiti faces a critical energy situation. Prospects for altern- ative sources at prices which the population can afford are in doubt (paras 1.04 and 1.05); the possible contribution of the lignite deposits and of solar energy is not yet known. Assuming a growth in demand of 3% per annum, fuelwood consumption would reach 4.6 million m3 in 1985, and 7.2 million m3 by 2000, leaving a large deficit of 2.9 million m3 and 4.3 million m3, respectively, even under the most optimistic assumptions for natural forest growth and plantation establishment. This would lead to an accelerating depletion of the remaining forest resources since the deficits will have to be made good by cutting the growing stock to supplement the imports of energy sources which will be required to fill the gap. It is therefore necessary to counter this possibility through proper land-use management and large-scale reforestation. However, given the lack of experience with such programs in the country, the lack of trained personnel and the institutional weaknesses, the first steps to consider are the strengthening of the Government staff, training, and pilot programs in key areas, so as to provide the basis for a comprehensive larger effort. II. THE PROJECI AREAS 2.01 The major forest resources of the country consist of (a) the dry, degraded subtropical forests and scrubland prevailing in the northwest and along the gulf of Gonave down to the foothills surrounding the Cul-de-Sac plain near Port-au-Prince; and (b) the remnants of hardwood and pine forests, in the humid higher elevations of the southern peninsula and the Central plateau. The project areas would be representative of these types (Map 15925). A. The Foothills Area near Port-au-Prince (Cul-de-Sac) 2.02 An area of at least 250 ha would be identified within 100 km of Port-au-Prince in the foothills surrounding the Cul-de-Sac plain. This area is representative of the type of land which could satisfy a good part of the charcoal needs of the capital, as it did before large-scale deforestation. While the Cul-de-Sac plain is devoted to irrigated agriculture, the foothills are unsuitable for agriculture and are occupied by scrubland. The rainfall ranges between 600 and 800 mm, with peaks in March-May and August-November.  - 9 - The soils of the scrubland are thin, overlying limestone, and lie on land of variable slope. Some pockets of deeper soil on flat land are cropped with sorghum, cowpeas and melons. The area has a high population density in spite of the scarce resources. The area is also crossed by the main highway going to the north, and by roads going to the Dominican Republic, the eastern part of the Southern Peninsula, and the Central Plateau. The thin foothill soils used to be covered by dry forests which were a major source of fuel, until this vegetation was exhausted by abusive cutting and the source of supply moved further north. 2.03 The sites for pilot fuelwood planting and species trial under the project are yet to be selected but large tracts of land are Government owned; a representative site would need to be selected for the project and be transferred to the Forestry Bureau (para 3.06). B. The Northwest Peninsula 2.04 Because of its dry climate and the predominance of hilly thin soils, the northwest peninsula is the poorest section of the country -- the Haitian Sahel. The driest sections, especially the central areas of the middle peninsula, receive less than 400 mm average rainfall. Much of middle and western sections of the peninsula receives less than 1,000 mm, except for the plateau area of Bombardopolis which receives 900 to 1,100 mm and the mountain ridge which crosses the peninsula. There is no consistent pattern of dry and wet seasons, but rather one of wide variations within each year and between years. The ratio between annual minimum and maximum can reach as high as 1 to 5.7. Generally, about half of the annual precipitation falls within four months. The water deficit is high throughout most of the middle and western portions of the peninsula. 2.05 The dry hills and arid plains are sparsely covered with dry tropical forest and scrubland. Some subtropical forest vegetation remains in isolated areas at higher elevations. Besides fishing along the coast, tree-cutting and charcoal manufacture are the only economic activities in those areas which are too dry, or with soil too marginal for agriculture. The major source of char- coal is bayahonde (Prosopis juliflora). Guaiacum, which is the best wood for charcoal, and which is also in demand for wood carvings, has largely disappeared. Instances have been reported of people digging up guaiacum roots to make charcoal. Other indications of the critical fuelwood scarcity are the use of cactus and wood from old fences for making charcoal. Charcoal is produced in traditional earth kilns (para 1.21). According to an FAO study, the method is effective and surprisingly efficient. It would be counterproductive at this point to try to introduce portable metal kilns or other alternative technologies as these would represent an investment beyond the means of the charcoal makers, and the charcoal yields would not be significantly improved, if at all. All available resources should be directed at rebuilding the natural resource base (woody plants) since the very survival of the charcoal industry is already in jeopardy due to wood scarcity. Pyrolitic conversion cannot be considered for this area because of high investment costs. 2.06 The area presently produces about half of the charcoal consumed in Port-au-Prince. Charcoal production is the main activity of people who have  - 10 - no land suitable for agriculture and no alternative source of income. It is literally an activity of last resort. Landless charcoal makers enter into sharecropping arrangements with land owners, and receive credit from charcoal dealers (para 1.21). The dealers operate collection points, from which charcoal bags are shipped by truck or by sailboat to Port-au-Prince. 2.07 Tree plantings have been made for watershed protection in the Jean Rabel area with USAID support. A number of PVOs and missionary organiza- tions have been engaged in plantings of fast growing species, or are interested in initiating such programs. One of the larger programs in this area has been sponsored by the Fonds Agricole, with funding by the Federal Republic of Germany (FRG). Plantings have consisted mostly of slow-growing native species such as mahogany for sawnwood, and fast growing exotics for fuelwood, including eucalyptus, Casuarina, neem, Leucaena, and Albizzia. Results in terms of areas established have been generally poor because of lack of protection, poor choice of site and inadequate site preparation. All plantings have been heavily subsidized with food for work, on the assumption that no farmer will plant trees unless he receives payment. Also, many of the PVO groups have food distribution and nutrition improvement as their principal objectives, with reforestation being simply a medium for that activity. Poor follow-through on the reforestation is common. The Fonds Agricole program also includes a project to clean underbrush from native bayahonde stands in order to improve productivity. No measurements have been made, however, to determine the effectiveness of these treatments. The creation of three charcoal producers' cooperatives has also been carried out by Fonds Agricole. 2.08 Dry-land agriculture is carried out in the more humid areas, espe- cially the Bombardopolis plateau which is intensively cropped with beans, sorghum, castor beans, and perennial cotton. Agriculture is marginal in many areas and subject to drought. The irrigated valleys, especially Jean Rabel, are devoted to plantain and foodcrops. 2.09 The infrastructure of the region is poor, the road network is limited, and truck traffic hampered during the rains. There is also some coastal shipping. Many communities are served only by mule paths, and water supply and medical facilities are poorly developed. The main development activities in the region have been carried out by HACHO, with USAID financing. Since the termination of USAID support, however, HACHO lacks the necessary funds and staff to continue their programs at the desired level of activity. C. The Pine Forest of La Selle 2.10 The La Selle highlands are located in the southeastern corner of the country. They form the highest mountain chain in the country, with the highest peak at 2,600 m. The hilly terrain is calcareous, with thin soil on the slopes, but some flat areas and valleys have deep soil suitable for agricul- ture. The rainfall is high--2,300 mm average at Fonds Verrette, just north of the project area (Map 15926), with peaks in April-June and August-November. The natural vegetation is that of the humid mountain forest, with West-Indian pine (Pinus occidentalis) the dominant species. The La Selle national pine forest area occupies some 32,000 ha of highland of which approximately 20,000 ha are in forests of varying density.  - il - 2.11 Between 1941 and 1957, the forest was managed and logged by the Haitian-American Society for Agricultural Development (SHADA), a private firm with American capital, which developed a sustained yield management program, operated four sawmills, and developed the region's infrastructure (such as roads, aerial cableways for log/lumber extraction, housing, offices, and water supply). In 1957 SHADA terminated its activities and the logging concession was given to private Haitian interests. This latter arrangement was terminated in 1980 and the administration and management of the forest entrusted to the Forestry Bureau. Logging of all pine has now been forbidden in Haiti but some cutting and pit sawing is taking place illegally, with the lumber being sold mostly in Port-au-Prince. As would be expected, the price of this lumber increased considerably with the official ban on cutting and consequent reduc- tion in supplies. 2.12 Currently, the pine stands are thinly stocked and degraded because of overcutting, overgrazing, encroachment by agriculture, and frequent burning. Vigorous regeneration is present in some areas and needs release thinning while in other areas planting or direct seeding is needed. Some areas have failed to regenerate because of repeated burnings. The stands are also characterized by a large number of fallen and diseased trees. The larger fallen trees, however, are not being utilized for fuelwood or charcoal, since pine charcoal is softer and has a lower caloric value by volume than charcoal from hardwood, although about the same value by weight. Also, the abundant small sized firewood in the area is easier to collect and transport. This contrasts sharply with other areas of Haiti where fuelwood scarity has led to the collection of any available wood material, including stumps and roots. 2.13 Even though the entire forest is on state land, it contains a squatter population estimated at over 15,000, primarily on non-forest areas estimated to cover about 10,000 ha out of the total of 32,000 ha. Much of this area is cultivated and almost all land in the reserve is grazed to varying degrees. There are examples of good agricultural practices, including contour farming, and temperate fruits and vegetables are produced in the valleys. An agricul- tural extension agent operates in the area. Nevertheless, much of the agricul- ture is marginal, including shifting cultivation on steep slopes and the burning of forest land to produce better grazing conditions. As a result of these practices, the humus soil has virtually disappeared, having been washed away by rain in many areas. 2.14 The eastern portion of the forest is accessible by the all-weather road which links Thiotte and the southeastern coast to Port-au-Prince. The western portion can be reached only through Jacmel in the southern coast by a road made difficult by the rough terrain and poor maintenance. Throughout the area the infrastructure and services are limited. The farmers of the project area have access to extension services (and receive the support of the Agricul- tural Experiment station at Savanne Zombie) but not to agricultural credit. III. THE PROJECT A. Objectives and Brief Description 3.01 Extensive reforestation is needed to meet the demand for fuelwood in the absence of alternative sources of energy, and to stem the depletion of forest  - 12 - resources and the subsequent deterioration of the environment. A large-scale program is not feasible at this time, in view of the weakness of the Forestry Bureau, the paucity of information on suitable species and the need to develop efficient methods of seedling distribution and planting by the rural populace. The absence of a fuelwood tree-planting tradition among farmers, who view wood from natural stands as a "free good," and the prevalence of land tenure problems are major impediments to reforestation on private lands. There are also serious difficulties encountered in protecting trees from fire, grazing, and uncontrolled cutting. All agricultural land in Haiti, and a good part of the marginal land, are under cultivation, leaving only dry and shallow soils available for reforestation. The project would aim at (a) building up the operational capacity of the Forestry Bureau, including a strong extension element, (b) enacting and applying new forestry legislation compatible with the nation's forestry development goals and its socio-economic environment, and (c) developing economically viable reforestation and forest management practices for Haiti. The forestry management aspects would be concerned primarily with protection from fire and grazing. On the consumption side, the project would aim at promoting fuel efficient cooking stoves in order to reduce demand for wood and charcoal. 3.02 This project should be considered as the first time slice of a long- term program of forestry development, which, however, is difficult, at this stage, to define in any but broad dimensions. It is estimated, on a rough reckoning, that the overall program would aim at (a) the establishment of about 100,000 ha by year 2000, and 300,000 ha by year 2020 of fuelwood plantations in various parts of the country- with an annual rate of afforestation increasing to, and leveling off, at 10,000 ha per year after 10 years, and (b) the management and commercial logging of 30,000 ha of pine forest. The preliminary estimate of the total cost is of the order of US$110 million spread over the next 25 years. The Government has indicated its commitment to forestry development (para 1.28), and a number of donors (USA, Canada, FRG, UNDP) are giving priority to forestry and resource conservation in their aid programs. Long-term goals would be determined, and a plan designed for the following 15 years, building upon the experience developed in this phase. 3.03 The principal objective of the proposed project would be to develop a substantial reforestation and forest management capacity through the following components: (a) Re-inforcement of the Forestry Bureau. An international forestry consultant, several short-term consultants, and forestry technicians would be appointed to support the activities of the Bureau. The Bureau would also be supplied with vehicles and equipment. (b) Forestry Training and Education. Besides in-service training of existing staff, the project would finance: (i) at the graduate level, eight fellowships for studies in foreign forestry schools; and (ii) at the primary level, the introduction of forestry and conservation education in grade schools; and (iii) the creation and operation of a two-year forestry curriculum at the Agricultural School of Damien.  - 13 - (c) Pilot Plantings and Trials of Fuelwood Species. Pilot plantings of species of suitable potential would be made on about 250 ha of state land near Port-au-Prince, and species elimination trials for planting and direct seeding of exotic and local species would be carried out at that site, at two sites in the Northwest (Map 15925), and also in other ecological zones as the technical ability and resources of the Forestry Bureau permit. (d) Management of the Pine Forest. The pine forest of La Selle would be demarcated and surveyed, and a comprehensive management plan would be prepared and initiated for the 20,000 ha of forest on the 30,000-ha area. Direct seeding tests and species trials for exotic pines would also be carried out. (e) Promotion of Fuel Efficient Stoves. Existing designs of charcoal and wood cooking stoves, and the stoves developed by the Ministry of Mines and Energy, would be tested and promoted. (f) Preparation of a Follow-up Project. The preparation of a large-scale forestry project would be undertaken by the Forestry Bureau, using the experience gained under the proposed project and with the assistance of the senior forestry consultant (para 3.03(a)). B. Detailed Features Reinforcement of the Forestry Bureau 3.04 The Forestry Bureau presently has a staff of only two professionals with forestry training. Its field staff is sizeable but untrained and has purely regulatory functions. There has been no sector planning and the Bureau has had no involvement in the forestry activities being carried out by PVOs. The Bureau would be reinforced under the project by the assignment of a senior expatriate forester, whose terms of reference are in Annex 1. This consultant would be responsible for organizing and supervising the various forestry activities under the project, train field personnel, monitor and evaluate forestry programs in the country, and assist in formulating a large-scale reforestation and forest management program as a follow-up to this project, including staffing requirements of the Forestry Bureau. Assurances were obtained at negotiations that the consultant would be selected by September 15, 1982. The Bureau would appoint three field managers for the project's planting, management and extension operations described below (para 3.06), and each of these would be supported by a forestry technician. The appointment of the field managers would be a condition of effectiveness. The Forestry Bureau would be progressively strengthened and built up as the recipients of fellowships and students graduating from the technical level school (para 3.05) become available. The necessary vehicles and equipment needed by the Bureau would be financed under the project. It is expected that the Bureau would require continuing support, possibly under a follow-up project, to carry out the long-term forestry program after the completion of the proposed project.  - 14 - Forestry Training and Education 3.05 In order to carry out the needed forest planting and management programs in the country, it is necessary to improve the level of technical competence of the field staff and the public understanding of the importance of forestry to the country's economy and environment. The project would therefore initiate forestry training and education at three levels. (a) Graduate Training. At the present time, the only graduate training in forestry available in the country consists of a course in silvicul- ture given to fourth year students at the Faculty of Agriculture and Veterinary Medicine (FAVM). To supervise the forestry technicians (para 3.05(b)), it is estimated that the country needs to develop a core of 10 to 15 graduate foresters over a few years to properly administer reforestation and forest management. This number cannot justify the establishment of a professional forestry school, since it would take classes of at least 15 per year to justify the cost of facilities and teaching staff. The immediate needs can be met by sending eight students overseas for study during project implementa- tion. Under the project, six fellowships would be established for graduates of the FAMV or the School of Natural Science of the University of Haiti to train in general forestry. The duration of each fellowship would be two years. In addition, the two teaching counterparts of the technical forestry school (para 3.05(b)) would receive training in forestry education. Training would be arranged at forestry institutions geared to tropical environments. During negotiations, assurances were obtained from the Government that (i) the selection of candidates would be subject to IDA agreement, and (ii) the graduate foresters would be appointed and retained in employment in forestry for at least twice the number of years of fellowship study. (b) Technical Level Training. The country has no forestry technicians at present and would need a sufficient corps to carry out in the field large-scale afforestation and management programs outlined in paragraph 3.02 with at least eight available to start a follow-up project, building up to about 50 to carry out reforestation at the rhythm of 10,000 ha per year after 10 years. Additional foresters will be needed for forest management. There is need to strengthen consciousness of the importance of forestry among DARNDR personnel. A forestry curriculum would therefore be established at the medium- level agricultural school operating at Damien near Port-au-Prince. The yearly enrollment would be 15 to 20 starting with at least five the first year; the forestry curriculum would cover two years, after one year of scientific studies; about one-third of the forestry curriculum would consist of practical training, including farm forestry, principally at the pine forest of La Selle, and also at nurseries and fuelwood planting sites. As construction and equip- ment of training facilities (classrooms and student accommodations) Damien would depend on the availability of funding through additional co-financing, such costs are not included in the present project. Meanwhile, teaching would start in the available facilities at Damien. The project would include the rehabilitation of existing  - 15 - buildings and complementary construction at La Selle for practical training. The program would require two full-time professors and one instructor (forestry technician) to be recruited internationally, and nationals would be recruited for the support staff. To ensure continuity after the project, three graduates of FAMV would be appointed to assist in teaching and receive in-service training. Two of them would be selected for one year of overseas training before joining the teaching staff. (c) Primary School Training. In order to bring about an awareness and understanding of forestry among the population, the Ministry of Education is preparing to introduce forestry education at the primary school level. Besides classroom teaching, the program would include the establishment of tree nurseries in rural schools and tree plantings on grounds of the students' families. Under the project, the technical forestry school would organize training of rural teachers during the vacation period. Some 133 teachers would receive training each year. The project would finance teacher training costs, and also the seeds and teaching materials to be used by the rural schools. It is expected that the SONAMAR program (para 1.27) would help educate the population to appreciate forestry problems. Fuelwood Species Trials 3.06 Because of lack of reliable data on the performance of fuelwood trees, especially on the marginal land available for fuelwood, controlled trials would be carried out to test both exotic and local species in represen- tative areas. The trials would test promising species, primarily for fuelwood but also for fruit or forage production and for industrial uses (guayule for rubber, jojoba for industrial oil, and such). A trial design has been prepared and is available in the project files. One set of trials would be located on state land near Port-au-Prince in connection with pilot plantings (para 2.01), and two sets would be located in the Northwest, near Baie de Henne and Jean Rabel. Land in these areas would be made available by the Government and the identification of an area of at least 250 ha near Port-au-Prince, 50 ha each near Baie de Henne and Jean Rabel, and the turning over of that land to the full control of the Forestry Bureau would be a condition of effectiveness. A simple soil survey (slope, depth, texture, pH) would be made on each site. An agronomist would be appointed as field manager at each of the three locations and receive in-service training. An expatriate volunteer would be appointed to the principal Port-au-Prince vicinity site, and another to the Northwest area. The project would include funds for the infrastructure, vehicles, equipment, and operating costs at selected sites during the project period. Due to the long-term nature of forestry research, the trials would be continued under the larger follow-up project. 3.07 Because of the difficulty of ensuring, through planting, a sufficient pace of reforestation to catch up with deforestation by planting, direct seeding approaches would be tested in different environments of the country, espe- cially on rough inaccessible terrain. The tests would include a number of different species for each environment being evaluated for this reforestation method. Special attention would be given to developing adequate protection of the seeded areas from fire and free ranging animals.  - 16 - Pilot Fuelwood Plantings 3.08 In order to test techniques for reforestation and subsequent manage- ment of public land, and to develop the capacity of the Forestry Bureau to carry out that reforestation, some 200 ha would be planted near Port-au-Prince, on the area to be administered by the Forestry Bureau. Although precise information on species performance is not available, a number of species are considered promising and appropriate for pilot plantings. These include: Leucaena leucocephala, Albizzia lebbek, neem (Azadirachta indica), Cassia siamea, and other Cassia species, Acacia spp., Parkinsonia aculeata, Prosopis juliflora (a native species) and other Prosopis species. The program would be under the direct supervision of the field manager of the Port-au-Prince area site (para 2.01) with the help of a volunteer technician. Seedlings for the project would be produced at the central nursery of DARNDR at Damien. A seed laboratory for procuring seed internationally and nationally and for testing and preparing seed for Haiti's needs would be established at Damien as part of the training component. Planting and maintenance would be carried out with hired labor. Arrangements would be studied to contract labor for harvesting the wood under a sharecropping agreement with neighboring farmers. An area of existing scrub forest near the Port-au-Prince area site which would be neither planted in species trials nor pilot reforestation plots, would be protected from fire, agricultural encroachment and grazing. Sample plots would then be established to measure the growth of natural stands with and without protection. The program would be supervised by the field manager assisted by a volunteer technician. 3.09 In the Northwest, tree planting activities are being carried out on private farms by PVOs with heavy subsidies, generally in the form of food for work. These activities are to be expanded under the USAID-supported project (para 1.27). The Forestry Bureau field managers appointed for establishing species trials under the project would contact and monitor these PVO projects. This monitoring would include exchange of technical information and have the objective of assuring proper planting and follow through in the reforestation activity. After establishing the trials in the first year, each field manager would initiate test programs for the distribution of seedlings of promising species to demonstration farmers, using no direct subsidies. Farmers who are receptive to trying new ideas and techniques and also are respected in their communities would be sought for these demonstration plots. The seedlings could initially be sold at low cost to encourage planting. Once such a program is developed the Government role would only be to assure an adequate production of quality seedlings and good planting techniques by the landowners. A minimum goal for the four-year project period is to have three trial sites established and 500 ha planted. Pine Forest Management 3.10 The remaining pine stands of La Selle (para 2.10), which have been severely affected by overcutting, fire, and encroachment of agriculture, have now been placed under the control of the Forestry Bureau which has set up two management units totalling approximately 32,000 ha. Logging is now forbidden by law, but, after rehabilitation and with proper management, these forests  - 17 - could undergo controlled logging and become an important source of lumber. Under the project, aerial photos at a 1:12,000 or 1:15,000 scale would be produced and interpreted by an expatriate consulting group. The interpretation would consist of classifying the stands by age, density and need of treatment and of mapping agricultural areas. If necessary, soil surveys would be undertaken to determine if an area is suitable for further agricultural development or if it should be converted to forest. Field surveys would be carried out by Forestry Bureau personnel to confirm or modify the results of the interpretation. The inventory would lead to the preparation of a preliminary management plan aimed at the rehabilitation of the stands. Actual management would be initiated under the project and would consist of planting and seeding of bare areas, sanitary cutting (removal of diseased trees), culling (removal of dead and poorly formed trees), protective measures against further agricultural encroach- ment, fires and overgrazing, and release thinnings of dense, stagnated natural regeneration. The labor would be provided by four crews of 20 men each, hired by the Bureau, and the harvested timber would be utilized for fuelwood charcoal, poles, posts and construction wood. It is expected that 10 years of such management would be required before large-scale commercial logging could be resumed. The Forestry Bureau would gradually expand its management activities on an area control basis to cover the 20,000 ha area within the 10-year period. The proposed schedule is as follows: year 1, 500 ha; year 2, 750 ha; year 3, 1,000 ha; year 4, 1,500 ha; year 5, 2,000 ha; and years 6 through 10, 2,850 ha each. Immediate revenues may accrue from some initial sawnwood cuttings in mature stands and possibly from naval stores production (turpentine and rosin extraction) if preliminary studies show its technical and economic feasibility. 3.11 The presence of some 2,000 households settled in the pine forest would require careful attention. An estimated 2,000 ha of marginal lands now used by them would be converted to forestry and the farmers encouraged to carry out forestry-related work. Their crop cultivation activities would be restricted to the arable land defined by the land use survey. To achieve these results, agriculture support provided by the DARNDR services would be intensified in the area. Assurances were obtained from the Government that it would intensify support services, in particular, by the provision of credit and the appointment of additional extension agents. The employment generated under the forest management program would give farmers an added source of income and would help ensure improved land use. 3.12 The project would include the construction of new buildings in management unit 2, the maintenance of the main logging roads through labor intensive methods, the supply of vehicles and equipment, and the financing of operational management costs. Each of the two management units has been placed under the direct supervision of a field manager, who would receive the support of an expatriate technician. Development and Promotion of Fuel-Efficient Stoves 3.13 Because the improvement of cooking stoves (charcoal and wood) can substantially reduce the use of fuel and the demand on forest resources, the development of efficient stoves would be given impetus under the project. The Directorate of Energy Resources of the Ministry of Mines and Energy has developed a charcoal stove model and has started work on improved wood stoves. Equipment for the Directorate would be financed and consultant support provided  - 18 - through the project to conduct the necessary efficiency testing in the labora- tory and in households. A survey of cooking practices, which affect stove design, would be made both in Port-au-Prince for charcoal and in rural areas for wood. The survey would be designed and data analyzed with the help of a consultant financed under the project. A condition of disbursement under this component would be the appointment of a staff member of the Directorate of Energy to carry out the survey in Port-au-Prince and a staff member of DARNDR for the survey in rural areas. The program would focus on the introduction and testing of a few selected models of low cost stoves developed in other countries; their acceptance by users and methods for promoting their adoption would be tested in the field. If a favorable response is obtained, a number of stoves would be built by artisans and distributed to volunteer organizations for promotion. Preparation of a Second Phase 3.14 Using the experience gained under the project, and other forestry projects in Haiti (para 1.27), the Forestry Bureau would prepare a larger scale project, with the help of the senior forestry consultant. This exercise would include the definition of a national forestry policy, the definition of the responsibilities, organization and program of the Forestry Bureau and the identification of potential reforestation areas. The second project is expected to include an expansion of fuelwood plantings, continua- tion of pine forest management (para 3.02), and further technical assistance and forestry training. To this end, the Bureau would receive the support of short-term consultants on forestry legislation and forestry institutions. During negotiations, assurances were obtained that the Government would (a) review the existing legislative and regulatory framework applicable to forestry development; (b) exchange views on such framework with IDA at the time of the review mission (para 3.15); and (c) make such modifications in the framework as shall be necessary or appropriate. A sociologist would also assist in assessing the rural population's receptivity to reforestation and in developing and testing ways to improve interest and participation in tree planting. The identification/preparation work by the Forestry Bureau, which would be responsible for issuing the preparation report, would be supported by the Programming Unit of DARNDR. C. Project Implementation 3.15 Since most of the activities to be undertaken under the project would be new initiatives, a start-up period would be needed to field the staff, organize procurement, and order equipment. It is expected that the local and expatriate personnel would be appointed promptly. An implementation schedule is presented in Chart 1. An interim review would be carried out at the end of the second year, and the project would receive close supervision by IDA staff. The supervision missions would maintain close liaison with other agencies involved in forestry, especially those participating in the USAID-sponsored project. D. Project Cost Estimates 3.16 The cost of the project is estimated to be of the order of US$5.07 million, of which US$3.44 million (about 68%) are foreign exchange costs. The costs are summarized below and detailed in Annex 3, Tables 1 to 10.  - 19 - 3.17 Project costs are based on projections for July 1982, assuming an inflation rate of 15% from July 1981 to July 1982. The costs have been calculated net of all identifiable taxes and duties, from which agricultural development projects are exempt. Total costs include physical contingencies estimated at 20% of estimated costs for building construction (because of the absence of design), 10% for equipment, forestry operating costs, supplies, and costs of operation and maintenance. Price contingencies were calculated by compounding annual price increases over the implementation period as follows: for foreign costs, 8.5% for 1982, 7.5% for 1983-85, and 6% per annum for 1986; for local costs, 12% annually throughout the period. The average cost of short-term consultant services is estimated at US$11,000 per man-month (includ- ing benefits and subsistence). The cost of long-term consultants is estimated at US$8,300 per man-month (including man-month rate, travel and allowances), except for the volunteer technicians whose cost is US$2,000 per man-month. Summary of Project Costs % of % of Total Project Components Local Foreign Total Foreign Base Costs