India - Maharashtra Forestry Project

Document of The World Bank F;OR OFFICIAL USE ONLY Report No. 10040-IN VAIN!D:PL' fO~ / oJ 0ui/A;'.A STAFF APPRAISAL REPORT INDIA MAHARASHTRA FORESTRY PROJECT DECEMBER 19, 1991 Agriculture Operations Division Country Department II South Asia Regional Office This document has a restricted dishibution 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.  I f.- N (as of July 1, 1991) Currency Unit = Rupees (Rs) US$ 1 = Rs. 26.0 WETH AND MEASURS The metric system is used throughout the report a~~y.A~'ONS aN ACRONS FD - Forest Department FDC - Foresi: Development Corporation DSF - Direccorate of Social Forestry GOI - Government of India GOM - Government of Maharashtra tP'AS - Integrated Protected Area System LCB - Local Competitive Bidding MOEF - Ministry of Environment and Forests NWFP - Non-wood Forest Products PA - Protected Area PIV - Project Implementation Volume PCU - Project Coordinating Unit PMIU - Planning and Marketing Intelligence Unit SOE - Statement of Expenditures EISCAL YEAR GOI, GOM - April 1 to March 31 The report is based on the findiags of a Bank Appraisal Mission which visited India in June/July 1991. The mission consisted of Messrs./Mmes. B. van de Poll (Task Manager), S. Ahmed, A. Contreras, G. Morgan, P. Guhathakurta, D'Silva (Bank), and K. Kadiresan, B. Poole, K. Shah (consultants). Assistance was also provided by A. Molnar, S. Shen (ASTEN); H. Wagner and N. Jones (ASTAG) and by Peer Reviewers Messrs. R. Slade and W. Magrath (Economics 7nd Policies), R. Rowe (Forestry), and C. Rees (Biodiversity and Conservation) and M. Guimaraes (Secretary). The report is endorsed by Mr. H. Vergin (Director) and Mr. J. Wijnand (Division Chief).  FOR OFFICIAL USE ONLY TBZ MAHARASHTRA FORESTRY PROJECT STAFF APPRAT SAL REPORT Table of Contants Page No. CREDIT AND PROJECT SUMAR ...................... I. t2HE FORESTRY SECTOR ......................, 1 Forestry in the National Economy .................. 1 Forestry Development in Maharashtra State. 2 Lesson from Past Bank Lending. 6 II. THE PROJECT. 6 Rationale for Bank Involvement and Origin. 6 Project Area. 7 Project Objectives, Design and Description. 7 Detailed Features. 8 Project Costs and Financing ..................... 13 Procurement ................................. 14 Disbursement ................................. 15 Accounts and Audit ............................. 16 III. PROJECT IMPLEMENTATION .................... ...... 16 Organization and Management ...................... 16 Training, Publicity and Extension ................. 18 Project Benefits and Justification ................ 22 Institutional and Environmental Impact ............. 24 Impact of the Project on Women ................... 25 Project Risks ................................ 25 IV. AGREEMENTS REACHED AND RECOMMENDATIONS ............. 25 Annex 1: Proposed Sector Reform Annex 2: Project Cost Tables Annex 3: Financial and Economic Analysis Annex 4: Schedule of Estimated Disbursements Annex 5: Supervision Plan Annex 6: Contents of Project Implementation Volume Annex 7: Documents Available in Project File MAP : IBRD 23295 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.  MAHARASHTR FORESTRY PROJECT STAFF APPRAS OL EPORT CaEDIT AND PROJECT SUMMARY Borrower: India, Acting by its President Executing Agency: The Forest Administration of the Government of Maharasntra (GOM) AmoUnt: IDA Credit of SDR 88.9 million (US$ 124.OM equivalent) Terms: Standard, with 35 years maturity Qn-lending_Terms: Government of India (GOI) would onlend funds to GOM under prevailing terms and conditions. GOI would assume the foreign exchange risk. Beneficiaries: About 800,000 households comprising forest dwellers, tribals and smallholders. Project Description: The main goal of the project would be to achieve institutional, economic and environmental improvements in the forestry sector of Maharashtra. The project will therefore undertake a number of sector reforms through: (a) reorganization of the public forest administration and seeking a more active r3le of the NGOs, village panchayats, cooperatives and the private sector in the development of the sector; (b) improvement of the state's technical capability particularly in the field of seed production, genetic planting material, nursery and planting practices and planning, management, including monitoring of the forest resource base and training; and (c) rationalization of the policies and regulations constraining the sector. The project would also support five discrete investment activities related to land treatment: (a) village eco-development and joint management; (b) rehabilitation of wasteland and degraded lands; (c) production forestry; (d) bio- diversity and conservation; and (e) pasture and fodder development. The main project risks would be related to GOM's willingness to go ahead with the implementation of all the appropriate institutional and policy reforms, and that people's participation would not be effective in the sustained management of common and public lands developed under the project.  - ii - Estimated roetCQata:1 - US$ Million -- Local Foreign Total A. Land Treatments Plantation Development 83.9 4.4 88.3 Eco and Tribal Development 7.5 0.5 8.0 Biodiversity Conservation 6.8 0.4 7.2 B. Technology and Project Impl. Support Technology Improvements 2.6 0.3 2.9 Project Implementation Support 1. Project organization 7.3 0.5 7.8 2. Restructuring Forest Adm. 0.3 0.0 0.3 3. Specialized Support Services Za 0*2 ,Q Total Base Cost 113.2 6.3 117.5 Physical Contingencies 6.0 0.3 6.3 Price Contingencies 1L.Q 1* 1. Total Project Costs 134.2 7.8 142.0 Financing :-lan: Local Foreign Total