Tanzania - Forest Resources Management Project

c> Jtb -/ A1 Document of The World Bank FOR OFFICIAL USE ONLY MICROFICHE COPY Report No. 9964-TA RepoTrA No. X9340-3 Type: (SAR ) COTEAJ, V X508 /J11140/ AF6AG TANZANIA FOREST RESOURCES MANAGEMENT PROJECT DECEMBER 23, 1991 Southern Africa Department Agriculture Operations Division Ihi document has a resticted distuibutioen and may be sed by recipients ondy in the performance of their ofliefzl duties. lts contents may not otherwise be disclosed without World Bank autoriZlazion.  CURRUNCY EOUIVALENT Currency Unit - Tanzanian Shilling (Tsh) USDI.0 - Tah 200 (at time of appraisal) USDI.0 = Tsh 230 (September 1991) FISCAL YEAR July I to June 30 MEASURES metric system ACRONYMS DANIDA Danish International Development Agency DFO District Forest Officer DPC Deputy Project Coordinator EEC European Economic Community EA Environmental Assessment ERP Economic Recovery Program ERR Economic Rate of Return ESAP Economic and Social Action Program ESMAP Energy Sector Management Assistance Programme FAO CP United Nations Food and Agriculture Organization Cooperative Programme FBD Forestry and Beekeeping Division FEA Forestry Extension Assistant FINNIDA Finnish International Development Agency GIS Geographic Information System GPS Global Positioning System GTiZ Deutsche Gesellsehaft fur Technische Zusammenarbeit GmbH HASHI Hifadhi Ardhi Shinyanga Programme ICB International Competitive Bidding IRA Institute for Resource Assessment IUCN International Union for the Conservation of Nature LDSD Land Development Services Division MALD Ministry of Agriculture and Livestock Development MLHUD Ministry of Lands, Housing and Urban Development MTNRE Ministry of Tourism, Natural Resources and the Environment NEMC National Environmental Management Council NGO Nongovernmental Organization NLUPC National Land Use Planning Commission NORAD Norwegian Agency for Development Cooperation NVDPC National Village Demarcation Program Coordinator ODA Overseas Development Administration (United Kingdom) PAA Project Assistant Administrator PCC Project Coordination Committee PMO Prime Minister's Office PPF Project Preparation Facility RFEO Regional Forest Extension Officer RFO Regional Forest Officer ;RS Regional Surveyor SFO Senior Forest Officer SIDA Swedish International Development Authority SMD Survey and Mapping Division TAFORI Tanzania Forestry Research Institute TFAP Tropical Forestry Action Plan TWICO Tanzania Wood Industry Corporation UNDP United Nations Development Programme VEA Village Extension Agent  FOR OFFICIAL USE ONLY UNrrED REPUBLIC OF TANZANIA EQ=ST RESQ'JRCES MANAGEMENT PROJECr STAEE APPRAISAL REPO Iale of Contents CREDIT AND PROJECT SUMMARY .............................. i-iii 1. BACKGROUND ........................................... 1 A. Introduction ..... I B. The Economy and the Forestry Subsector .......1.................... I C. Forestry Resources and Production ........................... 3 Natural Forests and Woodlands .......................... 3 Plantations ....................................... 3 D. Utilization of Forest Resources .............................. 4 E. Forest Policy and Legislation ............................... 5 F. Support Institutions ................................ 6 Forestry Services ............................ ... 7 Land Services ................................ 8 G. The Forestry Budget ............... ................ 8 H. Donor Support ........... .................... 9 I. Project Genesis ........... .................... 10 J. Past Assistance and Lessons Leaned . ......................... 11 E. SECTORAL ISSUES ........... .................... 13 A. Resource Information ................................ 13 B. Forestry Issues ........... .................... 13 Long-term Financing of the Forestry Subsector ..... ............ 14 Pricing of Forest Products and Forest Revenue Collection .... ...... 14 Afforestation and the Pricing of Seedlings ...... .............. 16 Management of Miombo Woodlands ....... ................ 17 C. Land Issues........ ..... 17 Land Policies ....... 17 Village Demarcation, Titling and Registration .19 m. THE PROJECT ........................................... 21 A. Project Rationale and Objectives ......... .................... 21 Rationale ........................................ 21 Objectives ........................................ 21 B. Project Summary Descripdon ........... .................... 22 & rMont is based on the finduin of a po".tpisa misin which visited Tanzania in May 1991. m niision compried Measrs. D. Cotdear (niion heder and economis). W. Lusconbe (natural roeur specialist), A. Hoben (s0rpologist). A. Kir (foraster), nd Ms. P. Tuito (forester). Mun. Raymond Nornha (AFTA(), Ohan Bqaykl (ASTAG), and Enrique Rueda-Sabar (CECPS) were the peor reviewes focausig on lands, foresy, and economics respectively, for do oprtion. Ms. BDbem Pitwn nd Mr. Aiyadui Rangnathn asted in the preparstion of tho SAR. Mr. Chaii Neman is de managing Diion Chief and Mr. Stephen Deaing is the Datmnt Dictor for th opeaton. 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.  C. Detailed Project Features ................................. 23 Strengthening Natural Resources Monitoring and Forest Policies .. 23 Strengthening Land Policy and Institutions ..26 Strengthening Regional and District Forest Services in Mwanza and Tabora . .28 D. Cost Estimates.. 35 E. Financing ..36 F. Procurement ..37 Civil Works ..37 Vehicles and Equipment .. 38 Technical Assistance and Services .. . . 38 G. Disbursement .................................3 ..... 39 H. Accounts and Audits ...... 40 IV. Project Implementation ...... 41 A. Organization and Management ..... 41 B. Monitoring and Evaluation and Reporting ..... 44 D. Mid-term Review ..... 45 V. Benefits, Risks and Sustainability ..... 46 A. Benefits .... 46 Quantifiable Benefits ..... 46 Non-Quantifiable Benefits ..... 47 B. Impact on Environment ..... 48 C. Gender Issues ..... 48 D. Private Sector Development ..... 48 E. Poverty Alleviation ..... 49 F. Sustainability .... 49 G. Risks and Uncertainties ..... 49 VI. Assurances and Recommendation ..... 51 List of Text Tables Table 1: The 1990/91 Budget for Forestry Services (Approved Estimates) Table 2: Project Cost Summary Table 3: Financing Plan Table 4: Procurement Method and Disbursements Lis olf Annexes Annex 1: Forestry and Lands Background Table 1: Forest Area Distribution Table 2: Potential for Revenue Collection Table 3: Comparison of Royalty Fees, 1981, 1987 and 1990 Table 4: Distribution of Villages by Region Table 5: Benefits from Miombo Woodlands  Annex 2: TFAP yand Donor Support Table 1: TFAP Targets Appendix 1 TFAP Recommendations and Development Program Table 2: Existing and Proposed Donor Support to the TFAP Table 3: Ongoing Donor-funded a.; Related Forestry Projects Annex 3: Institutional Organization Chart 1: Organization of Forestry and Beekeeping Division Chart 2: Organization of the Ministry of Regional Administration and Local Government for Forestry Activities Annex 4: Project Coordination Terms of Reference Appendix 1: Project Coordinator Terms of Reference Appendix 2: Deputy Project Coordinator (Land Policier, and Institutions Component) Terms of Reference Annex 5: Component I Terms of Reference Appendix 1: National Reconaissance-Level Land Use and Natural Resource Mapping Appendix 2: Resource Information Specialist Terms of Reference Appendix 3: Improvement and Monitoring of Royalty Collection Systems Terms of Reference Appendix 4: Revenue Collection Study: Main Results Appendix 5: !"^tification of Best Practices for Forest Activities Terms of P lerence Appendix 6: Long-Term Financing of Forestry Terms of Referenc_ Appendix 7: Location of the Natural Resource Information Center Annex 6: Land Policies Study Terms of Reference Appendix 1: Land Policies Study Annex 7: Village Demarcation, Titling and Registration Terms of Reference Appendix 1: Cadastral Advisor Terms of Reference Appendix 2: Land Records Specialist Terms of Reference Table 1: Implementation Schedule Annex 8: Mwanza Operational Annex Table 1: Mwanza: Summary of Outputs from Extension Appendix 1: Regional Forest Extension Officer Terms of Reference Appendix 2: Community Development Specialist Terms of Reference Appendix 3: Monitoring and Evaluation Specialist Terms of Reference Appendix 4: Extension Training Specialist Terms of Reference Annex 9: Tabora Operational Annex Table 1: Tabora:Forestry Extension - Summary of Outputs Appendix 1: Forest Management Specialist Terms of Reference Appendix 2: Forest Mensuration Specialist Terms of Reference Appendix 3: Socioeconomist Terms of Reference  Annex 10: Project Organization and Management Chart 1: Organization Chart 2: Flow of Funds Annex 11: Economic Project Appraisal Table 1: Economic Analysis Table 2: Mwanza: Sensitivity Analysis Annex 12: Costs, Disbursement and Cofinancing Appendix 1: List of Detailed Cost Tables in the Project File (Appraisal Mission Working Paper) Table 1: Estimated Schedule of Disbursements Table 2: Project Cost Sunmnary Table 3: Sumrnmary Accounts Cost Summary Table 4: Project Components by Year Table 5: Project Components by Year (totals including contingencies) Table 6: Summary Accounts by Year Table 7: Summary Accounts by Project Components Table 8: Financing Plan by Project Components Table 9: Financing Plan by Summary Accounts Annex 13: Project Implementation Schedule Annex 14: Supervision Plan Appendix 1: Supervision Plan Table 1: Bank Supervision Input into Key Activities Table 2: Key Performance Indicators Appendix 2: Summary Contents of the Annual Work Plan Annex 15: Accounting/Auditing Guidelines Annex 16: Selected Documents in the Project File List of Maps Village Demarcation and Registration Forest Resources in Tabora Region  i TAINZANIA FORESTs RESOURCES MANAGEMLNT PROJECT CREDIT AND PRO. CT SUMMARY Borrower: Government of the United Republic of Tanzania Beneficiaries: Ministry of Tourism, Natural Resources and the Environment; Ministry of Lands, Housing and Urban Development; and smallholders. Amount: SDR 13.2 million (USD18.3 million equivalent) Terms: Standard, with 40 years maturity Project Obiectives: The broad objective of the proposed Project is to support the implementation of the Tanzania Tropical Forestry Action Plan (IFAP) by strengthening the capacity of the institutions in charge of developing and implementing forest and land policies and by increasing the participation of the private sector and local populations in the management of natural resources in Tanzania. The Project has three specific objectives: (i) to strengthen institutions in charge of the development of forest policies and forest and natural resources information; (ii) to support the developm'ent of rural land policies, strengthen crucial govei-umental and nongovernmental organizations in charge of the implementation of these policies, and support the implementation and monitoring of Govermment's policy of village demarcation and titling; and (iii) to strengthen regional and district forestry institutions in the Mwanza and Tabora regions. Project DescriDtion: The Project includes investments over a six-year period to: (a) Strengthen Natural Resources Monitoring and Forest Policies: This component will support: collection of national natural resource information and development of a natural resource information system; development and implementation of improved practices for royalty collection and for afforestation based on private sector nurseries and active participation from local people; and preparation of an action plan for the long-term financing of the forestry subsector; (b) Strengthen Land Policies and Institutions: This component will support the development of land policies and Government's ongoing program of village demarcation, titling, and registration; and (c) Strengthen Regional and District Forest Services in Mwanza and Tabora Regions: This component will support the development of regional forest management plans and associated forest service reorganization and training. In Mwanza, where most of the forest cover has been lost, the main activities relate to extension for reforestation, using techniques which have been piloted successfully  ii by a nongovernmental oiganization in the region. In Tabora, where most of the land is wooded, activities will focus on forest reserve management and village woodland management, involving the active participation of the local population, and applied research. Benefits: The Project will strengthen the policy, information and institutional base for managing Tanzania's forest and land resources in an economically, socially and ecologically sound manner. The Project will generate quantifiable benefits from three sources: (i) improved rmlanagement of some 450,000 ha of forests on a pilot basis; estimates based exclusively oi. the reduction of the incidence of forest fires in the Project area suggest an economic rate of return (ERR) for this activity of about 13%; (ii) more effective and intensive forestry extension services in two regions will allow an increased production of privately grown firewood and poles with an estimated ERR of 12%; and (iii) an improved revenue collectfion system will yield revenue increases in the range of 50-150%. The Project also will generate non-quantifiable benefits from three main sources: (i) the new natural resource information and monitoring system will enable Govermment to prioritize investments based on a better knowledge of alternative interventions; (ii) the development and implementation of forest policies will increase the participation of local people in the management of forest resources, encourage the planting of trees, and provide incentives for appropriate uses of the forest resource; and (iii) the preparation of national land policies and improved village demarcation will improve security of land tenure, provide incentives for viiiage management of natural resources, and contain incipient tendencies towards inequality and landlessness. The Project will benefit women through increased training in the management and use of forest resources in Mwanza and Tabora; the constraints faced by women in land use and management will be addressed by the land policy study. In the development of policy and in its forest management activities in Mwanza and Tabora, the Project will specifically address the needs of the poor. Risks: The primary risks to the Project are delays in the formulation and implementation of policies and delays in the strengthening of the forest services. Government already has indicated its commitment to minimize these risks by requiring enforcement of higher forest fees, introducing prices for seedlings, and appointing a national village demarcation program coordinator and a national coordinator for village titling. Given the unceiainties concerning the demand among villagers for forestry extension and the demarcation and titling of villages in Mwanza and Tabora, the Project will take a phased pilot approach, initiating forestry extension activities on a small scale and expanding them gradually once experience has been gained. This modest intervention is justified, despite the existing uncertainties, by the high environmental costs that will arise if no intervention were attempted to promote afforestation in the already deforested region of Mwanza and to limit uncontrolled deforestation in Tabora.  iii 1. Estimaed Costs and Financing Plan Project Cost Summr Proiect Costs W -USD Million- EmoQ