India - Jammu and Kashmir and Haryana Social Forestry Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 11837 PROJECT COMPLETION REPORT INDIA JAMMU AND KASHMIR AND HARYANA SOCIAL FORESTRY PROJECT (CREDIT 1286-IN) APRIL 30, 1993 Agriculture Operations Division Country Department II South Asia 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 Equivalent Name of Currency: Rupee (Rs.) Rate of Exchange: Appraisal Year (1982) US$1.0 = Rs. 8.5 Intervening Years (83/84-89/90) US$1.0 = Rs. 13.1 Completion Year (1990/91) US$1.0 = Rs. 18.0 Fiscal Year of Borrower: April I - March 31 Weights and Measures: Metric System Abbreviations CSSRI - Central Soil Salinity Research Institute ERR - Economic Rate of Return FAO - Food and Agriculture Organization of the United Nations FRR - Financial Rate of Return FWE - Fuelwood Equivalent GOH - Government of Haryana GOI - Government of India PCU - Publicity and Communication Unit SCF - Standard Conversion Factor SFW - Social Forestry Wing VFC - Village Forestry Committees VFPC - Village Forest Protection Committees  FOR OFFICIAL USE ONLY THE WORLD BANK Washington, D.C. 20433 U.S.A. Office of Director-General Operations Evaluation April 30, 1993 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on INDIA Jammu and Kashmir and Hanrana Social Forestry Project (Credit 1286-IN) Attached is a copy of the report entitled "Project Completion Report on India - Jammu and Kashmir and Haryana Social Forestry Project (Credit 1286-IN)" prepared by the South Asia Regional Office, with Part II contributed by the Borrower. ne project achieved tree planting targets and contributed to human resource development and increased awareness of forest protection and environmental conservation. The project outcome is rated as satisfactory. However, objectives in community participation were not attained and the transfer to community management has barely begun. This may influence the extent to which the project's benefits will reach the poorest segments of the population. Much more needs to be done in terms of effective plantation management. Accordingly, sustainability is rated as uncertain and institutional development as partial. The completion report provides an adequate account of project implementation. The project may be audited along with other social forestry projects in India. Attachment 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.   FOR OFFICIAL USE ONLY PROJECT COMPLETION REPORT INDIA JAMMU AND KASHMIR AND HARYANA SOCIAL FORESTRY PROJECT (Cr. 1286-IN) CONTENTS Page No. Preface ....................... i Evaluation Summary ....................... iii P&tI Project Review from Bank's Perspective Project Identity ........................1 Introduction ....................... 1 A. JAMMU AND KASHMIR STATE SUB-PROJECT Background ....................... 2 Project Objectives and Description ....................... 2 Project Design and Organization ....................... 3 Project Implementation ....................... 4 Project Results ....................... 9 Project Sustainability ....................... 11 Bank Performance ....................... 11 Borrower Performance ....................... 13 Project Relationship . ............................................ 13 Consultant Services ....................... 13 Project Documentation and Data ....................... 14 B. HARYANA STATE SUB-PROJECT Background ....................... 14 Project Objectives and Description ....................... 15 Project Design and Organization ....................... 15 Project Implementation ....................... 17 Project Results ....................... 22 Project Sustainability ....................... 24 Bank Performance ....................... 24 Borrower Performance ....................... 25 Project Relationship ....................... 25 Consultant Services ....................... 25 Project Documentation and Data ....................... 26 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.  Part IProject Review from Borrower's Perspective A. JAMMU AND KASHMIR STATE SUB-PROJECT Evaluation ot banK's kerformance ......................... 2 7 Lessons Learned .................................... .. 27 Evaluation of Borrower's Performance ........... .............. 27 Lessons Learned .............................................. 28 B. HARYANA STATE SUB-PROJECT Comments on Part I ............ 29 Evaluation of Bank's Performance ......................... 34 Lessons Learned ...... 34 Evaluation of Borrower's Performance .......................... 34 Lessons Learned .......................................... 35 PartII Statistical Tables JAMMU AND KASHMIR AND HARYANA PROJECT Table 1 - Related Bank Loans and/or Credits .............................. 36 Table 2 - Project Tinittable ........................................ 37 JAMMU AND KASHMIR SUB-PROJECT Table 3 - Credit Disbursements ...................................... 38 Table 4 - Project Implementation ...................................... 39 Table 5 - Project Cost and Financing .................................. 42 Table 6 - Project Results .......................................... 43 Table 7 - Status of Covenants ....................................... 46 Table 8 - Mission Data and Staff Inputs (Jammu and Kashmir and Haryana) .... ...... 47 HARYANA SUB-PROJECT Table 9 - Credit Disbursements .................................... 49 Table 10 - Project Implementation .................................... 50 Table 11 - Project Cost and Financing .................................. 53 Table 12 - Project Results ......................................... 54 Table 13 - Status of Covenants ...................................... 56 ATTACHMENT 1- JAMMU AND KASHMIR STATE SUB-PROJECT Table 1 - Per Ha - Financial Costs and Benefits of Village Woodlot ............... 57 Table 2 - Per Ha - Financial Costs and Benefits of Strip ..................... 58 Table 3- Per Ha - Financial Costs and Benefits of Wetlands .................... 59 Table 4 - Per Ha - Financial Costs and Benefits of Farm Forestry ................. 60 Table 5 - Per Ha - Financial Costs and Benefits of Rehabilitation of Degrded Forest .. . 61 Table 6 - Wholesale Price Index and Exchange Rates (Janmu and Kashmir and Haryana). 62 Table 7 - Economic Analysis - Jammu and Kashmir Sub-Project ................. 63  ATrACHMENT 2 - HARYANA STATE SUB-PROJECT Table I - Per Ha - Financial Costs and Benefits of Strip Plantation ............... 64 Table 2 - Per Ha - Financial Costs and Benefits of Farini .orestry ................ c Table 3 - Per Ha - Financial Costs and Benefits of Village Woodlots .............. 66 Table 4 - Per Ha - Financial Costs and Benefits of Saline/Alkaline Plantation ......... 67 Table 5 - Per Ha - Financial Costs and Benefits of Sand Dune Stabilisation .......... 68 Table 6 - Per Ha - Financial Costs and Benefits of RDF Plantation ............... 69 Table 7 - Economic Analysis - Haryana Sub-Project ......................... 70 ATTACHMENT 3 - ECONOMIC ANALYSIS - JAMMU AND KASHMIR, HARYANA, AND OVERALL PROJECT .................. 71   i PROJECT COMPLETION REPORT INDIA JAMMU AND KASHMIR AND HARYANA SOCIAL FORESTRY PROJECT (Credit 1286-IN) PREFACE This is the Project Completion Report (PCR) for the Jammu and Kashmir and Haryana Social Forestry Project (Cr. No. 1286-IN) for which Credit 1286-IN in the amount of SDR 29.4 million (US$33 million) was approved on August 3, 1982. SDR 12.5 million (US$14 million) of the credit was allocated to Jammu and Kashmir and SDR 16.9 million (US$19 million) to Haryana. The Credit was closed on March 31, 1991, three years behind schedule. The credit was fully disbursed on January 31, 1991 and the final allocation was SDR 12.3 for Jammu and Kashmir and SDR 17.1 for Haryana. Parts I and III of this report were prepared by an FAO/CP project completion mission which visited India in June/July 1991 (Preface, Evaluation Summary, Parts I and III). Part II was prepared by the States of Jammu and Kashmir, and Haryana. Due to travel restrictions at the time no visits were undertaken to the State of Jammu and Kashmir. The preparation of this PCR was based inter alia on the draft PCRs prepared by the states; the Staff Appraisal Report; the legal documents; supervision reports; correspondence between the Bank and the Borrower; internal Bank memoranda, and discussions with Bank project staff in the New Delhi Office and Forestry Department staff of the State of Jammu and Kashmir.   iit PROJECT COMPLETION REPORT INDIA JAMMU AND KASHMIR AND HARYANA SOCIAL FORESTRY PROJECT (Cr. 1286-IN) EVALUATION SUMMARY Objectives 1. The project's primary objectives were to increase the supplies of fuelwood to rural areas through the establishment of tree plantations in private and public wastelands and degraded forest areas. Secondary objectives were to generate employment, to provide poles, small timber, fodder grass, fruits, oilseeds, and other minor products, and to strengthen the social forestry organization within the State Forestry Department to carry out the plantation activities. The project was to establish, over a six-year period, plantation development in 111,000 ha in the two States: 44,000 ha in the State of Jammu and Kashmir and 67,000 ha in the State of Haryana. The planting target in Jammu and Kashmir included 5,000 ha of village woodlots, 1,000 ha of strip plantations, 2,000 ha of plantations on wetlands, 17,000 ha of rehabilitation of degraded forests, and 19,000 ha of farn forestry. The planting target in the State of Haryana included 12,000 ha of village woodlots, 500 ha of plantations on saline/alkali affected lands, 9,500 ha of strip plantations, 30,000 ha of farm forestry, and 15,000 ha plantations on sand dune areas. The project also provided funds for the expansion of the existing forest guard schools and forestry staff at the operational and extension levels, and strengthening research activities. Implementation Experience 2. Plantations. Despite budget constraints, shortage of staff, and problems of mobility, the project started promptly and exceeded the overall planting targets set at appraisal. The technical performance was not always satisfactory in Jammu and Kashmir but good in Haryana. Due to delays in the recruitment of staff, the plantations established during the initial periods of project implementation were carried out by the territorial forestry divisions. Moreover, except in later stages of the project, little attention was given to the community's participation aside from employing people as laborers. The implementation of the plantations has remained essentially a Government-executed program. The implementation of the strip plantations component overlapped with the territorial forestry division. It was terminated in Jammu and Kashmir and reduced in Haryana in 1988 because of the high cost involved. Implementation of soil and water conservation techniques, improvement of pasture, plantations on sand dunes and saline/alkali-affected areas and wetlands in Jammu and Kashmir, and rehabilitation of degraded forests in Haryana have been beneficial not only in providing immediate benefits in terms of fuelwood and grass to the economically-disadvantaged sections of the populations but also in minimizing soil erosion and water run-off resulting in the improvement of land productivity. The farmn forestry component in terms of area planted proved to be the most successful and had exceeded expectations. 3. Supportive Services. Because of the concentration of attention to achieving targets under the plantation program, inadequate attention was given to the development of the support components and community participation in both sub-projects. The Social Forestry Wing (SFW) of the Forestry Department was handicapped with inadequate research, training and extension support. Similarly, monitoring and evaluation had not been provided with the required support and  iv attention for efficient information generation and feedback to management. Major problems encountered were budget restrictions, delays in approval and recruitment of staff, inadequate staff training, and lack of operational guidelines particularly on research, nursery and plantation, communication and extension, and project monitoring. From the beginning the supportive role of research in nursery and plantation operations was inadequate. In addition there was no prepared plan for follow-up training of field staff who were given only initial reorientation sessions. Little attention was given to aspects related to communication, extension techniques and a better understanding of the needs of intended target groups. The effectiveness of the Publicity and Extension Unit, and the Monitoring and Evaluation Unit, have not been optimal. 4. Community Participation. Community participation throughout the project implementation period was limited. Little attention was given to involve the intended participants and beneficiaries in the planning process. Major problems encountered were: (a) lack of leadership and interest in the village panchayats due to inadequate publicity and motivation; (b) lack of a defined role for, and responsibilities of, the participating villagers and village panchayats and a policy on benefit- sharing which were not adequately defined at project design; and (c) non-availability of accessible community wastelands. To some extent, these have been corrected through the village micro- planning which started recently in 1989-1990, involving discussions with representatives of different socio-economic classes. The State Governments also recently issued Orders to transfer the responsibilities for forest protection, management and utilization and specify usufruct to village panchayats and the newly-constituted Village Forest Protection Committees (VFPC) in Haryana. The Village Forest Committees (VFC) continued to remain informal entities in Jammu and Kashmir, although the State government supported devolution of authority in principle. SFWs have also begun to hand over the established plantations to village panchayats, VFPCs (in Haryana) and VFCs (in Jammu and Kashmir). However, the forest management plans have not been prepared nor members of village panchayats, the VFPCs, and VFCs, been trained to carry out the given responsibilities. Results 5. In spite of the foregoing shortcomings, the project achieved its main objectives. In addition to accomplishments in the large-scale social forestry program, the project contributed to increasing skilled manpower for forestry development, and created and served the varied purposes of evolving interest and awareness of the rural population in tree planting and environmental conservation. The plantations established under the project have considerably increased the forest coverage in both States. A total of 45 million mandays of employment were generated by the project during the implementation period compared with 29 million estimated at appraisal. In addition, about 700,000 farmers benefitted from the farm forestry component, of which more than two-thirds were marginal and small farmers. The expected forest production over a period of 30 years is estimated to reach about 34 million tons. The economic re-evaluation analyses show the re- estimated economic rates of return (ERRs) of 19 percent for the total project, 14 percent for the Jammu and Kashmir sub-project, and 23 percent for the Haryana sub-project, as compared to estimated ERRs at appraisal of 27 percent for the total project, 34 percent for Jammu and Kashmir, and 19.5 percent for Haryana. In the case of Jammu and Kashmir, the lower ERR is due mainly to the significantly lower survival rates, growth and yields, delayed benefits and cost overrun. Project Sustainability 6. Despite the fact that most of the established plantations were mature for harvesting fuelwood, minimal harvests have been carried out. Forestry management plans are required for different plantations in each agro-climatic zone, and are important for scheduling silvicultural treatments (thinning, coppicing, etc.) for regeneration, and for harvesting. In addition they facilitate in  v establishing benefit-sharing arrangements with the communities, which is crucial to the sustainability of the project. However, the forest management plans have not yet been prepared and the benefit-sharing agreement between the committees and its villages have not yet been signed. The concept of handing over the plantations to village panchayats, VFPCs and VFCs for protection, management and utilization was implemented only in 1989/90. But in order to ensure the capability of members of these entities to properly sustain plantations, intensive training should be provided. Findings and Lessons Learned 7. The project suffered from a number of shortcomings, from design stage through implementation. The most important constraints were organizational and institutional. The organizational weaknesses in research and publicity, and training and extension, have resulted in poor services to farmers and limited involvement of people in planning and management of plantation activities. Problems encountered were budget constraints, shortage of staff, inadequate training, lack of operational directions and guidelines and coordination at field level. The institutional constraints encountered were lack of leadership in the village panchayats, lack of defined roles and responsibilities of the participating villagers and village panchayats, and a policy on benefit-sharing, and non-availability of accessible community wastelands. The implementation experience suggests a number of lessons. The most important are the following: (a) While emphasizing that the attainment of physical targets was important, the supportive components were neglected which had affected the quality of project implementation. Although the quantitative aspect was desirable in the short run, as degradation and social amelioration require fast and immediate reaction, focusing on quality aspects of the program would have resulted in a much higher pay-off in the long run; (b) Hiring of qualified consultants in designing/developing the programs of research, publicity, and extension. SFWs in both States economized on this aspect, and, to a greater extent, sacrificed efficiency and quality of the project implementation. The organization of research and publicity, and extension, remained weak due to lack of operational direction and shortage of trained staff. For monitoring and evaluation, the FAO/Bank operational guidelines were made available in 1986, though inadequately applied in Haryana for want of operational direction and trained staff. (c) The sustained management of plantations in government/public lands is only possible if the communities are involved in the project planning and selection of species and if their participating role and responsibilities are defined and harvest rights known at the outset; experience in both States indicated that community participation was limited due to lack of involvement in project activities, a lack understanding of the objectives of the project and the absence of assurance on the share of the expected benefits; (d) Project design should consider not only the plantation establishment but also plantation management through village protection committees for its sustainability. A sound forest management plan is a major tool in the stumpage valuation of the plantations, in scheduling the much required silvicultuiral treatments, and in programming optimal harvests; (e) Project design should consider the availability of private and public wastelands and the problem areas (saline/alkali and sand dune affected areas, degraded forest areas), so that adjustments in the plantation components and innovations could be correspondingly made.  vi (f) To minimize confusion and ensure successful project implementation, project preparation and appraisal should ascertain the State's budget constraints, staff availability, existing capability of the Forestry Department, availability of lands, capability of the village panchayats, and socio-economic inequalities of the participating beneficiaries, and avoid complex objectives and plantation components. This project had too many plantation schemes with very little variation in terms of plantation establishment, financing and community participation.  PROJECT COMPLETION REPORT INDIA JAMMU AND KASHMIR AND HARYANA SOCIAL FORESTRY PROJECT (Credit 1286-lN) PART I. PROJECT REVIEW FROM BANK'S PERSPECTIVE Project Identitv Project Name Jammu & Kashmir and Haryana Social Forestry Project Credit No. 1286-IN RVP Unit South Asia Region Country : India Sector Forestry Sub-Sector Social Forestry Introductifl 1. Forestr in India. The pressure on the India's forest resources has been critical, and the concept of social forestry was instrumental in changing past trends. Population growth and the corresponding demand for fuelwood and food, the increasingly excessive numbers of cattle in non- agricultural lands, and the continuous conflicts over property rights were identified as the most significant factors leading to the rapid depletion of forest resources. As in neighboring countries, India has been facing an environmental crisis where the rates of soil erosion and sedimentation were increasing, and the risks from floods and other climatic changes were clearly visible. The environmental crisis was compounded by a high demand for fuelwood by rural and urban households, and encroachment of the landless into the forest for subsistence needs. In areas where forest resources were already depleted, the environmental and fuelwood crisis was directly linked to farmers' use of cow dung, agricultural residues and waste, which were all being used as fuel rather than as organic fertilizer, causing significant changes in land productivity and food supplies. 2. Forest Policv. The National Forest Policy of 1952 envisaged that balance and complementarity in land use were important, and claims of communities living in and around forests should avoid conflict with these objectives. The policy also recognized the need for establishing tree planting programs that involved local people's participation, not only to sustain the supply of timber, but also to promote the required supplies of fuelwood and fodder. Trees were raised in farm lands, village and community wastelands, and natural forest areas. In accordance with the national forest policy, the management and utilization of village forests or fuel forests was to be entrusted to village panchayats. 3. The 1988 National Forest Policy became an extension of the previous policy and aims to ensure environmental stability, ecological balance, efficient utilization of forest produce, and to meet the fuelwood, fodder, forest produce and small timber needs of the rural and tribal populations. The stated national goal is to have a minimum of one-third of the total land area of the country under forest cover. The policy also envisages that all village and community lands not required for other productive purposes should be brought under tree crops and fodder cultivation. The policy outlines ownership rights over trees for individuals, particularly the weaker sections of the community.  2 4. The Bank's Role in Social Forestry. The Bank's first intervention in the forestry sector, the Madhya Pradesh Forestry Technical Assistance Project (Cr. 609-IN, December 1975), was directed primarily towards the development of plantations for the pulp and paper industry. Since then, the main thrust of the Bank's operations in this sector has been on social forestry development, with five projects covering nine states. Each of these projects had the objectives of increasing the supply of fuelwood and providing poles, small timber, fodder and other minor forest products to those living in rural areas, with special focus on increasing employment and fuelwood supplies for landless farm laborers, and marginal and small farmers, production of wood products from government and village wastelands and strengthening the social forestry organization within the State Forestry Departments to carry out the plantation activities. The first two social forestry projects were in Uttar Pradesh (Cr. 925-IN) and Gujarat (Cr. 961-IN) which started in 1979 and 1980, respectively, and were closed five years later. The West Bengal (Cr. 1178-IN) and Jammu and Kashmir and Haryana (Cr. 1286-IN) Social Forestry Projects were the third and fourth projects in the sector which started in March and December 1982, respectively. After a three-year delay in execution, both Credits were closed in March 1991. On-going social forestry projects are the following: Karnataka (Cr. 1432-IN), Kerala (Cr. 1514-IN) and the National Social Forestry Project (Cr. 1611-IN) covering the states of Himachal Pradesh, Rajasthan and follow-up activities in Uttar Pradesh and Gujarat. A. JAMMU AND KASHMIR STATE SUB-PROJECT Background 5. The State of Jammu and Kashmir, with an area of 138,214 km2, has a population of about 6 million in 1981 (7.7 million in 1991), of which 80 percent reside in the rural areas spread over nearly 6,000 villages. Agriculture plays a predominant role in the State's economy, accounting for about 50 percent of State income and providing 70 percent of its employment. Livestock forms an integral part of village life. There is also sizeable migratory goats and sheep grazing in the high Alpine pastures in the north and the Shiwalik hills in the south. Per capita income was low at US$116 (1977), compared with the all-India average of US$160. Population pressure and increasing numbers of livestock (estimated at 6 million) involve a continued and rising demand for fuel, fodder and essential building materials. This has resulted in indiscriminate tree-cutting, increasing erosion, creating large tracts of barren waste lands in the southern and western parts of the State and increasing degradation of forests in the north. To address the problem of shortages, the State has planned investments for large-scale afforestation and improved management of existing forests. About 35 percent of the State forests is practically devoid of tree cover and needs reforestation. Within the State, there are some 341,000 ha of waste and marginal lands including areas along roads, irrigation canals and railways which are suitable for afforestation. 6. In 1979 total energy consumption in the State was estimated at 6.2 million tons of fuelwood equivalent (FWE), of which 4.2 million tons FWE was met from fuelwood, 1.8 million tons from dung cake and 0.2 million tons from commercial sources. Considering the low purchasing power of the rural population, a significant increase in the use of commercial energy would be unrealistic in the future. The use of fuelwood and cow dung is expected to continue to predominate. Project Objectives and Description 7. Prject Objectves. The project's primary objective was to increase supplies of fuelwood to rural areas through the establishment of 44,000 ha of plantations located in 12 districts of the State. Secondary objectives were to provide poles, small timber, fodder grass, fruits, oilseeds and other  3 minor products. To carry out this program the project was to provide training facilities, vehicles, housing, equipment and additional staff for research and extension activities. 8. Project Description. During a five year period the project was to: (a) establish 5,000 ha of village woodlots; (b) rehabilitate and reforest 17,000 ha of degraded forests; (c) establish 1,000 ha of strip plantings along roads, canals and railroads; (d) establish 19,000 ha of farm forestry on private lands; (e) establish 2,000 ha of plantings on wetlands; (f) establish additional nurseries to provide planting stock; (g) expand the existing Forester/Forest Guard schools; (h) provide forestry staff at the operational and extension levels, including staff to support publicity, research, training, and monitoring activities; (i) strengthen research activities, and construct tree seed storage godowns; (j) develop training of project staff including provision of fellowships; and (k) carry out a wood balance study. Prime responsibility for implementation would be with the Social Forestry Wing (SFW) in the Forestry Department. Total project cost was estimated at US$27.9 million (Rs. 237.4 million), of which US$0.7 million would be in foreign exchange. The SDR12.5 million credit (US$14 million equivalent) was to finance 100 percent of foreign exchange costs and 48 percent of the local costs or 49 percent of the total project costs. The remaining 51 percent was to be financed by the Government of India (GOI) and the State Government of Jammu and Kashmir. Project Design and Organization 9. Project Design. In view of environmental degradation and scarce natural forest resources, the project concept was well founded and was consistent with the national forest policy, promoting tree plantings through private and community participation. The project also aimed at handing over the established plantation to local communities through the panchayat system for protection, management and utilization. 10. The project was formulated by the Jammu and Kashmir State Forestry Department in 1980 and appraised by the Bank in late 1981. Project preparation was based on methodologies developed in carrying out the various plantation components with peoples' participation in the States of Uttar Pradesh, Gujarat and West Bengal. Project preparation and appraisal were timely since postponement would have resulted in greater difficulties and costs, as forest degradation and social amelioration require fast and immediate reaction. These were adequately considered in the project design. One distinguishing feature of the project design was its flexibility -- the capability for making on-site amendment. 11. Main adjustments during project appraisal were: a reduction of the planting targets in the village woodlots component; strengthening of research, the Publicity and Extension Unit and training; establishment of the Monitoring and Evaluation Unit; hiring consultants to assist SFW in establishing the Publicity and Extension, and Monitoring and Evaluation Units; and to carry out a wood balance study. Problems and risks foreseen at appraisal were: (a) the distribution of free seedlings to farmers might lead to waste; (b) the village panchayats may not be sufficiently motivated or organized to manage the village woodlot and rehabilitation of degraded forest through plantations; (c) remote locations and limited availability of accessible community wastelands would  4 delay implementation; and (d) limited experience of the Forestry Department in the area of farm forestry, and the self-help village woodlot and rehabilitation of degraded forestry components would hamper implementation of these components. 12. At the design stage, however, prescription for research was highlighted without thoroughly assessing the capability of the Forestry Research Division. Research could have been improved and strengthened by engaging local consultants to help the research division in drawing up the required program and undertake the experiments. The quality standards for nursery and plantation establishment operations were also not clearly prescribed. Although the need for fodder was considered in the overall project design for plantings, the improvement of pasture component was not identified. 13. While plantation establishment was exhaustively considered, subsequent arrangements for distribution and sharing of forest produce was not adequately prescribed. The extreme need for management plans was and is now more than ever seriously felt in the context of large growing stocks. It is a major tool in the stumpage valuation of the plantations, in scheduling the much required silvicultural treatments and in programming optimal harvest. The forest management plan is a valuable guide leading to project sustainability. 14. Organization. The organization structure for the SFW, although still having some minor imperfections, was indeed well thought out. The Chief Conservator of Forests had encompassing authority, and was entrusted the responsibilities of Project Director. He was assisted by two distinct groups of line and staff personnel including the field operation unit with a Conservator of Forest in each circle for Jammu and Kashmir. These field units were complemented by support staff from headquarters. 15. One of the important and necessary functions of SFW was to win the goodwill and cooperation of the villagers and the effective conduit was through the panchayats. The structure and functions of the panchayats seem to have been tailor-fitted to the requirements of the SFW. Firstly, in the Block Panchayat Board, there is provision for the representation of women. Secondly, panchayats have two functions, one compulsory, which requires a panchayat to get involved in the protection of all agricultural lands from floods and erosion, and the other, discretionary, which is the right to plant trees, including fruit-bearing trees, on wastelands. SFW's Publicity and Extension Unit, in collaboration with hired motivators, established good working relationships in demarcating wastelands for social forestry programs. This provided the complete organizational structure, functional enough for effective implementation of the social forestry program. The organization, however, was weak in three areas; (a) research; (b) publicity, extension and training; and (c) monitoring and evaluation which received low priority in terms of logistics and staffing. These weaknesses were reflected in the prevailing low survival rates and the considerable number of villagers with little knowledge about project objectives, and techniques and benefits of the social forestry program. The plan to engage experienced local consultants to help the SFW in developing operational guidelines for the implementation of research was never implemented. Project Implementation 16. Changes to Design. Due to the significant unutilized credit balance at the end of the original Credit closing date in December 1988, several adjustments were made during the extensions of closing date between 1988/89 and 1990/91. Durinig these extensions the project was restructured to strengthen research activities and to increase planting targets, especially for village lands and  5 degraded forest areas, using cheaper and replicable technologies, including resuscitation from viable rootstocks. The participation of the Village Forest Protection Committees (VFPC) and the Village Forestry Committees (VFC) in forestry planning, implementation, protection and operation, were also introduced during these extensions. Planting targets were increased from 44,000 ha to 86,000 ha as follows: village woodlots, from 5,000 ha to 5,800 ha; rehabilitation of degraded forests, from 17,000 ha to 20,200 ha; strip plantings, from 1,000 ha to 2,300 ha; wetlands, from 2,000 to 4,100 ha; and farm forestry, 19,000 to 53,600 ha. The improvement of pasture, designed to alleviate the shortage of fodder for nomads and landless cattle herders, was introduced in 1988 where stylo and napier grass for fodder production were planted on overgrazed lands, and institutional plantings were started in 1989 on unproductive and idle lands within the compounds of government and private institutions. The village panchayats were dissolved in 1984, and, since 1988, forestry protection and management functions became the responsibilities of village committees. That same year, the guidelines on village micro-planning, and the plantation technical and management manuals, were introduced. 17. General. The project started promptly in 1981 and the physical achievements exceeded the targets set at appraisal, but the technical performance of the plantations was below expectations as indicated by the low survival rates. Poor quality of seedlings, drought, short planting season, poor maintenance and inadequate protection in early years were major reasons. In subsequent years the overall performance improved. Poor technology and inadequate extension, however, persisted. Moreover, due to delay in the approval and recruitment of field staff positions, most of the plantations were carried out by the Forestry Department's territorial division as a government- run program with little people's participation. Achievements in farm forestry have far exceeded expectations but the rate of survival is low due to a lack of follow-up extension services after distribution of seedlings and planting. Because of the concentration of attention to achieving targets under the plantation program, the important supportive components were only partially implemented. SFW was handicapped with inadequate research, training and publicity, and extension support. Similarly, monitoring and evaluation was not provided with the required support and inadequate attention was paid to efficient information generation and feedback to management. Major problems encountered were budget restrictions, delays in approval and recruitment of the required staff, inadequate staff training, shortages of housing, and problems of mobility. Shortage of staff housing, though a persistent problem was mitigated by the provision of rent and travel allowances. 18. There was no doubt about the capability of the SFW to implement a social forestry program of this magnitude. The deficiency lay in the seemingly low overall response of the villagers, especially the landless and marginal farmers to the social forestry project. As mentioned earlier, because the physical target was over-emphasized, the support staff who were supposed to do extension were mobilized for the operational aspect of the project. Up to this time, the social forestry project has remained a government-managed program overshadowing the intended wide scale participation of the villagers. 19. Nurseries. SFW had established and managed a total of 310 nurseries covering an effective area of about 423 ha and producing a total of 213 million seedlings. There were 196 nurseries in Jammu and 114 nurseries in Kashmir. By contrast, there were only 27 kissan (private) nurseries which produced a total of 3 million seedlings. Since there were difficulties in disposing seedlings especially because accessible areas for tree plantings in farm forestry have become scarce, closure of some 15 departmental nurseries (8 in Jamimu and 7 in Kashmir) covering 9 ha was necessary. Most of the species raised (Poplar and Robinia) were limited to fuelwood, pole and timber and the  6 quality was rather low due to poor seedling quality and nursery techniques. This reflected on the technical capability of the SFW since Poplar technology is reasonably well-developed in India. 20. Plantations. Five plantation components had different conceptual bases for establishment, management, harvesting, marketing, legal and funding. A total 44,000 ha of plantations were to be established in 12 districts in the State. All were aimed primarily to increase supplies of fuelwood to rural areas. 21. Village Woodlots. A total of 5,000 ha of plantations were to be established with emphasis on fuelwood and fodder species. SFW was to establish plantations for each village panchayat, maintain the plantations for about five years with the cost to be borne by SFW but local populations would participate in protecting the plantations and thereafter the village panchayat would take over management, protection and utilization. 22. A total of 5,934 ha plantations, or 118 percent of the appraisal target, were established by SFW and maintained for three years with little villagers' and panchayats' participation in protection. Moreover, SFW began handing over the plantations to VFCs only in 1988-89 (para. 16) rather than to panchayats as envisioned at appraisal (which by 1984 had become a moot issue after the panchayats had been dissolved for political reasons). The survival rates ranged from 20 percent to 40 percent, the lowest among the components. Problems in dealing with the panchayats especially in demarcating lands for plantations were partly minimized through the involvement of VFC. Poor quality seedlings, inadequate maintenance and protection due to lack of SFW's supervision during outplanting activities were major factors. It was only in 1987 when fencing and more intensified protection were carried out and plantations attained slightly higher survival. Close spacing of Im by Im resulted in overcrowding and slow growth. 23. Strip plantatons. SFW would establish 1,000 ha of plantations along roads, canals and railways. Villagers nearby would be allowed to collect free of charge grass, fodder, fallen wood and tree loppings from the plantations in return for helping in the protection of plantations. Fuelwood would be the dominant species (Poplar, Robinia, Ailanthus) with fruit trees in the Kashmiri plantations. 24. A total of 2,381 ha was established, or 238 percent of the appraisal target. As in the case of village woodlots, close spacing of Im by Im and some Im by 1.5m without subsequent thinning resulted in overcrowding and poor growth. Survival rates were 65 percent in 1982-83 plantations, 78 percent in 1983-84 plantations and 70 percent in 1984-85 plantations. The overall survival rate was reasonably good at 73 percent. 25. Wetland plantations. About 2,000 ha of plantations was to be established on state-owned permanently inundated wetlands. Village panchayats which are adjacent to the plantations would collect fallen wood and tree loppings under the supervision of forestry staff. SFW would recover its costs from the sale of fuelwood. 26. It was only in this component where 2m by 2m spacing was observed in the 3,431 ha of established plantations. The survival rate ranged from 60 percent to 70 percent. Anticipated production of fuelwood would start at Year II and once every 5 years thereafter for two consecutive productions; small timber at Year 11 and Year 21.  7 27. Farm forestry. A total of 19,000 ha plantations was to be planted on privately-owned wastelands and field boundaries requiring about 47.5 million seedlings which would be distributed to farmers free of charge. Replantation density was 2,500 stem per ha on spacing of 2m by 2m. 28. A total of 126 million seedlings were distributed to about 530,000 farmers and 62 institutions and a total of 49,600 ha were established, or 261 percent of the appraisal target. Approximately 80 percent of beneficiaries who received free seedlings were marginal and small farmers and have less than 2 ha of land. Most of the participants planted trees primarily for commercial purpose, and it was in this component that active farmer participation has gone beyond expectation. However, due to lack of adequate publicity and extension after distribution of seedlings (para. 18), the spacing was too close and seedlings used were of poor quality resulting in a low survival rate of about 50 percent. The over-supply of free seedlings to farmers by SFW, in order to achieve more physical target, likewise led to significant waste and high density of trees per ha. 29. During 1989 and 1990, SFW introduced the distribution of free seedlings with the maximum limit of 1,000 seedlings per family and a price of Rs.0.37 per bare-root seedling and Rs.0.70 per seedling in polyethylene bag beyond the limit. However, the distribution of free seedlings was discontinued and a nominal price of Rs.0.10 per seedling is now in effect. The State government had recently simplified the procedure for felling of trees on private lands, but restrictions on transportation act as disincentive to private planting. 30. Rehabilitation of Degraded Forest. A total of 17,000 ha plantations was to be established to rehabilitate and reforest degraded State-owned forest reserves through replanting with fuelwood, fodder, grass and bamboo. Labor was to be recruited from nearby panchayats for establishment and maintenance. Villagers would be free to collect fallen wood, fodder and tree loppings under the supervision of forestry staff and at first harvest, 25 percent of yield would be given to the adjacent village panchayats to be distributed to the villagers. In return villagers would refrain from illegal activities in state owned forests. 31. Achievement was 20,100 ha which exceeded the appraisal target by 18 percent. Close spacing of Im by Im resulted in overcrowding and poor growth. The survival rate was between 13 percent and 60 percent especially for those plantations established during initial years of the project. 32. Forestr Education. Various training and educational programmes were implemented. SFW utilized the facilities of the Soil Conservation Training School in Jammu and Kashmir for orientation seminars and staff training. A total of 72 Social Forestry Workers and 990 motivators received training and orientation seminars. Forty foresters received special training which lasted about 37 weeks and all other staff underwent brief orientation sessions. However, training in skills related to non-technical aspects of social forestry did not receive adequate attention. In particular, local participation in planning and execution, communication and participation techniques should have been focused upon. Advantage was not taken of the potential for developing a well-trained and motivated cadre of junior staff since Social Forestry Workers will remain posted in SFW. 33. Local/Overseas Fellowships. SFW was to send senior staff for local and overseas fellowships in social forestry management and extension. Because training came only in the later years of project implementation, its impact was limited. Starting in 1988, a total of 38 senior staff had been sent to mostly ten-day or less workshop/refresher courses on social forestry extension within India. Only one officer attended an overseas workshop on monitoring and evaluation.  8 34. Research. The research support for SFW remained weak dLue to budget and staff limitations. The non-hiring of an experienced local consultan1t to guide the Forestry Research Division was another contributory factor to the ineffective support from research. It was only in 1990 that a research laboratory was constructed in JammLu and several works have been in progress including the following: (a) standardization of nursery techniqiues; (b) comparison of the germination of pre- treated and non-treated Eucalyptus seeds; (c) study of the performance of Eucalyptus hybrid; (d) germination studies on Dalbergia sisso. Emblica officinalis and fruit trees; (e) sowing studies on Leucaena leucocephala; and (f) vegetative propagation of 11 forest tree species. The program included: species selection and provenance trials; growth and yields modelling; and silviculture management; but no socio-economic studies were undertaken. 35. Extension. Communication and Publicity. Support was provided for the creation of a Publicity and Communication Unit (PCU) to develop materials and carry out public relations activities. PCU launched special campaigns, whic'h it developed, during the planting season through mass media and distributed handouts and pamphlets. PCU and forestry field staff undertook various types of activities related to motivation and demonstration with farmers, villager leaders, schools, other government institutions and the public at large. During 1983-90, community participation programmes were condtucted for 1,347 farmers camps, 178 orientation sessions, 259 school seminars, 139 field excursions, 330 motivation camps for 1,020 motivators involved in social forestry activities and 15 drawings sponsored. 36. Monitoring and Evaluation Unit. This unit was created in late 1982 and its performance was generally satisfactory. It prepared a number of quarterly progress reports and undertook a series of useful studies related to extension contact, community participation, distribution of benefits, socio- economic characteristics of the participant beneficialries, and feedback from farmers and community leaders on SFW's activities. Its work in later years was carried out with the use of the "Operational Guide to Monitoring and Evaluation of Social Forestry in India" prepared jointly by the Bank, the Food and Agriculture Organization, and the Central Inspector General of Forest. However, M&E reports were generally not made available annually due to time taken to collect data and delays in processing them. Moreover, it appears that the former project management did not give adequate attention to make use of the findings and recommendations but the situation improved during the latter part of project implementation. Due to shortage of staff and funds and a lack of management's attention, the Monitoring and Evaluation Unit has not carried out growth and yield assessments. 37. Studies. Because of a lack of accurate information on consumption and availability of fuelwood and forest-based products in the State, a wood balance study was undertaken and completed in 1987 by the Jammu and Kashmir Directorate of Economics and Statistics. Five additional studies, including the Nomadic Cattle Grazers, VFC, Eucalyptus marketing, and Fuelwood Consumption in Srinagar City and Management of Social forestry Plantations, were undertaken as recommended by the Bank during the implementation period. The wood balance studies lacked a clear statement on methodology used and merely presented information on the pros and cons of various methods of determining household energy consumption and future demand, and the estimated availability of wood products from the natural forests and private plantations. Information provided in the study on VFC was useful for planning of social forestry program with people and community participation. Initially there was difficulty in getting long- term local consultants for the development of the faculty in communication and extension; then there was reluctance (in both Jammu and Kashmir and in Haryana) to engage them even for short  9 periods, and the reason given was that State officials were receiving training, within and outside the State, in the same discipline. 38. Participation of Villagers and CommLunity. A model contract between communities and SFW was developed at appraisal which specified the nature of the participation expected from each party and the arrangement for cost-benefit sharing. The employment of labor under the project was to benefit mainly the landless and the disadvantaged sections of the rural population. Regarding people's participation (paras. 21-25), SFW would encourage villagers' participation and assist village participants in demarcating wastelands for village woodlots and rehabilitation of degraded forest plantations, as the panchayats had been dissolved in 1984. 39. The model contract provided a good conceptuall framework for people's participation in the protection and management, and distribution of benefits but did not specify who the project was expected to benefit and how the benefits were to be shared, resulting in insufficient attention to documentation of the beneficiaries, and different views on the distribution of benefits. Generally, there was little participation of the villagers in the planning and execution of SFWs plantations. At best, village leaders have been consulted about the site and the responsibilities including selection of farmers who need seedlings and kissan nurseries and villagers for employment in SFW 's planting activities. The Monitoring and Evaluation report indicated that majority of landless, marginal and small farmers benefited from employmlenit generation and the distribution of seedlings (para. 28). 40. Initially, the SFW, with assistance of the Social Forestry Workers, carried out village woodlot and rehabilitation of degraded forest activities through village panchayats. However, due to political reasons the village panchayat system was dissolved in 1984, so SFW tended to work informally with villager leaders. When village woodlots and degraded forest rehabilitation were established in earlier years, an agreement was nomially, but not always, signed between SFW and the respective village panchayats. Since 1988 the State issued an order to institutionalize VFCs and entrust them with the responsibilities of plantation protection and management. To date 145 village forest committees have been formed. Village forest committees formed around village woodlots have signed agreements with SFW but none of the committees formed around rehabilitated degraded forests had signed any agreemenits due to lack of clear policy on the rights of the communities. Moreover, although agreements have been signed with VFCs, in some cases, the VFC's members do not know about the provisions since these were neither read nor discussed with them, which indicate a lack of attention given to participation by SFW. The micro-planning which was supposed to involve people's participation in the development of social forestry activities has so far not yet started. 41. Though village forest committees have been formed, little effort has been put into the arrangements for the distribution of benefits between these committees and villagers. Since most of plantations were mature for harvesting, and more woUld become so, there is an urgent need to develop such arrangements. Project Results 42. Overall, the project achieved its main objectives. In addition to implementing a large-scale social forestry program in 12 districts, the project also contributed to increasing skilled manpower for forestry development and awareness of the rur1al population in forest protection and environmental conservation. By 1990, the project had generated a total of about 15 million man- days of employment compared to 12 million mandays estimated at appraisal. However, though a  10 majority of the poorer segments of the population benefited from employment, women accounted for only 3 percent. About 530,000 farmers benefited from the distribution of seedlings, of which 80 percent have less than 2 ha of land. Despite the low survival rates, growth and yields of all the plantations, the expected increase of wood production is estimated to be about 8.6 million tons compared with the appraisal estimate of about 10.6 million tons. There would be about 3.8 million tons of fuelwood, 4.6 million tons of small timber, 0.2 million ton of fodder and grass, and 44,000 tons of leaves. At appraisal, these were estimated to be 4.2 million tons of fuelwood, 5.0 million tons of small timber, 414,000 tons of fodder, 836,000 tons of fruits, 105,000 tons of leaf charcoal and 64 million pieces of bamboo/poles. The significantly lower production, despite 86 percent increase in the planting areas, is due mainly to the extremely low plantation survival rates, growth and yields brought about by a combination of low site quality, poor silvicultural treatment and poor seedling quality. The reported raltes of survival were 40 percent for village woodlots and rehabilitated degraded forests, 50 percent for farm forestry, 65 percent for wetlands and 70 percent for strip plantations. The aInnIal yields at harvest are estimated to be 2.2 t/ha for fuelwood, 2 t/ha for small timber, 0.3 t/hal for fodder and grass compared with the appraisal estimates of 2.2-7.5 t/ha for fuelwood, 5-15 t/ha for small timber, 0.1- 4.0 t/ha for fodder and grass. There is no production of bamboo due to non-availability of bamboo seedlings, while production of fruits would be insignificant. To date, the most common benefit received from village woodlots and rehabilitated degraded forests are fodder and grass, and in almost all cases local villagers can cut and carry without charge. 43. The financial and economic analysis was undertaken in 1990 constant prices. The financial cost and benefit streams of the five plantation mocdels are presented in Attachment 1, Tables 1-5. Survival rates, growth and yields of plantations were based on sample surveys conducted by the Monitoring and Evaluation Unit. The establishment and maintenance costs were based on SFW's actual costs incurred in 1990. The financial value of forest produce was calculated using the average financial stumpage prices prevailing in the project areas. The results of financial analyses calculated over a period of 21 years, show the estimated financial rates of return (FRR) at 32 percent for the farm forestry, 23 percent for village woodlots, 17 percent for the wetlands plantation, 16.5 percent for the strip plantation and 1 2 percent for rehabilitated degraded forest plantation. The economic re-evaluation was carried out over a period of 30 years. All project costs incurred during the implementation period were included in the analysis and adjusted to 1990 constant prices by using the wholesale price index as shown in Attachment 1, Table 6. Local costs and unskilled labor were further adjusted into border price by applying the Standard Conversion Factor (SCF) of 0.80 and Specific Conversion Factor of 0.60 respectively. Recurrent costs after project completion, excluding fellowships, Monitoring and Evaluation, and studies, have been assumed at 25 percent of its 1990 actual costs. The economic benefits of forest produce were valued at the financial prices adjusted by SCF of 0.80. The economic cost and benefit streams of the Jammu and Kashmir sub-project are presented in Attachment 1, Table 7. The result of the analysis show a re-estimated economic rate of retUrn (ERR) of 14 percent, which is 20 percent lower than the appraisal estimate of 34 percent. The lower ERR is due mainly to the substantially low survival rates, growth and yields, delayed benefits and cost overrun. 44. Impact. The impact of the project is examined against the following background: (a) the topography of Jammu and Kashmir is rugged and the State experiences extremes of climatic changes; (b) the highly diverse socio-economic and cultural backgrounds of the population resulted in varying perceptions, needs and attitudes towards environnmental rehabilitation and management; (c) the organizational and institutional aspects for implementation was satisfactorily defined; and (d) the project components were implemented in different agro-climatic zones -- flat lands, sloping to mountainous areas. Viewed in this light, the project, despite its setbacks, managed to proceed in  11 accordance with the schedules and targets. It also served the varied purposes of evolving interest among the rural population in community forestry development. The establishment of about 49,000 ha of farm forestry and 27 kissan nurseries increased people's participation in planting trees and establishing private nurseries by landless and marginal farmers. The establishment of plantations in rehabilitated degraded forests and the improvement of pasture areas created forestry awareness among nomads. 45. The increased production of wood products from the lowland plantations and the employment generated by the project helped reduce exploitative human activities on the already degraded environment. Correspondingly, the nutrient cycling by the community plantations will progressively improve soil build-up most especially in the higher slopes. Rainfall interception by the forest canopy and litter will likewise cushion the impact of throughfalls protecting the ground surface from the scouring effects of rain, at the same time increasing percolation, retarding downslope movement of water which otherwise would result in sheet and gully erosion. The increased percolation recharges aquifers which gradually release water in the form of springs that feed waterways and irrigation systems. The increase in supply of water in the lowlands helps the agricultural system and improve land productivity. SFW's plantations, if allowed to develop progressively, would result in the stability and productivity of the agricultural system which stabilizes the human settlements. The magnitude of the social forestry program definitely has a corresponding broader impact on the social as well as economic well-being of the local people. Project Sustainability 46. SFW has successfully implemented the first large-scale social forestry program through various schemes with the Bank's assistance. During the implementation period, the public demands for this program and community awareness of the environmental conservation have grown beyond expectations although active community participation had not proceeded to the anticipated levels. SFW has demonstrated its capability to implement its present program and even an expanded social forestry programme in the future. However, qualitative aspects of program implementation remain weak. The organizational weaknesses in research, training and extension, and monitoring and evaluation, have resulted in poor service to farmers. Despite the fact that most of the established plantations were and more would become mature for harvesting, little effort has been put into the distribution of benefits and marketing of produce. These are critical to the sustainability of the established plantations. The concept of handing over the plantations on community and forest lands to the community for protection and management had not been effectively implemented until 1988-89 when these responsibilities were entrusted to village forest committees in place of the panchayats. To date 145 of these committees have been formed and informal agreements on benefit sharing between them and the SFW were arranged for committees formed around rehabilitated degraded forest areas. But forest management plans and the formal agreement for distribution and sharing of benefits between the committees and its villagers have yet to be signed and intensive training are required for both SFW and committee staff in order to ensure their capability to properly sustain the plantations. Bank Performance 47. A total of ten missions were fielded with appropriate staff specialists. However, lack of staff continuity and coordination resulted in differing views, and disjointed recommendations had made it difficult for the Borrower to fully benefit from such missions' suggestions. Generally, the intervals between missions were appropriate. Recognizing the urgency and importance of the project, the Bank remained flexible and when the Government needed more time for project  12 completion, it granted the requests for extension. This allowed the Government to plan its activities and achieve the physical targets. Overall, Bank's assistance to the Government from project appraisal to its completion had been beneficial. 48. The following Bank's recommendations to the Government of Jammu and Kashmir were helpful and useful: (a) setting a limit on number of seedlings distributed to marginal farmers and pricing of seedlings to minimize waste and to ensure proper maintenance and protection of plantings; (b) involvement of rural people in the planning and execution of the social forestry program, and the introduction of the village micro-planning; (c) preparation of forestry management plans for different agro-climatic zones and plantations, and arrangements for distribution and sharing of benefits between VFC and villagers; (d) to carry out plantation growth and yields assessments; (e) to carry out social, economic and technical studies to monitor farmer beneficiaries, people's participation, plantation performance, as well as a wood balance study, in the State and; (f) to undertake research on nursery techniques, species, plantation/ silvicultural studies. 49. There were, however, some areas where the Bank should have given closer attention even before the start of the project and during implementation: (g) hiring of consultants to provide technical guidance in planning and execution of technical operations in project implementation; (h) specification of quality standards for nursery operation and plantation establishment; (i) providing a methodology to arrive at a common approach in estimating the area of the established plantations which remained a nagging problem. This was compounded by the absence of an operational map even in the district level so that targets and boundaries could have been delineated along natural features making ground verification more convenient and reliable. The role of the Monitoring and Evaluation Unit in this regard was very important in enforcing adherence to quantity standards and specification; (j) supportive components should have been given equal priority with plantation operations. Experience in Jammu and Kashmir showed that implementation of research, extension and peoples' participation lagged far behind and remained weak and; (k) preparation of plantation management plans for different plantations in each agro- climatic zone and the arrangements for distribution and sharing of benefits should have been a condition for Credit extension.  13 Borrower Performance 50. The Borrower performed satisfactorily during project preparation and implementation. SFW has shown its capability to implement a large-scale social forestry project. It introduced important innovations in the improvement of pasture and institutional planting schemes compatible with the primary objective. In spite of the constraints in counterpart financing and staffing, and the comparatively difficult topography, SFW was able to achieve its physical targets. It had to deal with national, State, district and local Government institutions, which at times had conflicting views on land use for village woodlots, restrictions on extraction of forest products from the natural forests and private plantations resulting in some degree of delays and inconvenience. The overall project coordination through the State and District Policy Review Committees was adequate and beneficial for annual program planning. However, implementation of the supportive components were not given adequate priority and remained weak throughout the implementation period. Financial and staff resources and training and extension were deployed below the required level. Consultant services were never provided to the extent required for the development of programs for research, communication and extension, monitoring and evaluation. Little attention has been given to involve villagers in planning and execution of plantations and the distribution of benefits. 51. The Borrower substantially complied with the Credit covenants and the Bank's recommendations during supervision missions (para. 48). However, late submission of the certificate of audit reports delayed approval of Credit extension and disbursements. Delays in issuing an order for the formation of VFC and policy on the distribution of benefits between VFC and villagers had greatly affected the community participation. The Borrower has so far failed to prepare plantation management plan and growth and yield assessments, but partially complied with the provision of staff housing. The latter had minimal effect on implementation. Project Relationship 52. The Bank, through its Resident Mission, maintained good relationships with the Central Government and the Government of Jammu and Kashmir. This relationship was particularly useful and significant when the Borrower was unable to utilize 50 percent of the Credit by the end of the original Credit closing date in December 1988. The Bank responded quickly to Government's request to extend the project implementation period by three years and to increase the disbursement rates. The Bank initiated low-cost technology for soil and water conservation and its assistance in the preparation of the plantation technical manual, and the guidelines on the village micro-planning and monitoring and evaluation (para. 48) were useful and appreciated by the Borrower. Consultant Services 53. Funds for 120 man-months of local consultancy time were provided to cover monitoring and evaluation, communication and extension. Due to budget constraints and lack of attention in SFW, only a few local consultants were utilized for studies (para. 37). The data and findings proved useful for the planning of social forestry activities. Under Central and State governments' procedure of local competitive bidding, no difficulty was encountered for the construction of buildings and procurement of vehicle and equipment.  14 Project Documentation and Data 54. The main documents governing project implementation were the Staff Appraisal Report and its project files and the legal documents. These documents were generally well prepared and provided useful conceptual frameworks for the Bank and the Borrower to implement the project and monitor its progress. However, the Staff Appraisal Report did not provide sufficient operational guidelines on the implementation of the research program, the identification of beneficiaries, the role of community, the mechanism for distribution of benefits, monitoring and evaluation of the project, including growth and yields. B. HARYANA STATE SUB-PROJECT Background 55. The State of Haryana, with an area of 44,212 kM2, has a population of 16.3 million, of which 80 percent live in rural areas spread over nearly 7,000 villages. About 20 percent of the population is scheduled castes. Since its formation in 1966, the State has made excellent progress in increasing agricultural production, which in 1988/89 accounted for 45 percent of its total State income and 65 percent of its employment. With an annual per capita income of US$300 (1988), Haryana is ranked second among the Indian States. 56. The total forest area in Haryana increased from 1,600 km2 in 1981 (3.7 percent of the total geographical area) to about 3,400 km2 in 1988 (7.7 percent). About 50 percent of the present forest area is plantation and about 35 percent in narrow strips along roads, canals, railways and embankments. Most forests are of the northern tropical deciduous type. In 1986/87, forestry's contribution to State income was estimated at 1 percent. These figures, however, took no account of the considerable quantities of fuelwood, small timber, thatching grass and medicinal herbs taken by villagers as well as illicit felling. Total wood production from the State forests was 46,000 m3 of timber and 187,000 m3 of fuelwood. In addition, minor forest products were extracted, including bamboo, gum/resin and fruits. So far, nearly two-thirds of the land available along roads, rails and canals have been planted to trees. Most wastelands belonging to panchayats have also been planted to trees, but a substantial amount of village common lands and wastelands is still available in the southern part of the State. These areas have been affected by alkali/saline (600,000 ha), mobile sand dunes (620,000 ha), and forest degradation (200,000 ha) in the Shiwalik and its foothills and the Aravalli hills, which need to be improved and protected from further environmental degradation. 57. Haryana's domestic energy requirement is met primarily by fuelwood and cow dung. Although all villages are electrified, commercial sources of energy are too costly for widespread use as domestic fuel, and these sources supply only about 5 percent of the total needs. In 1979 total annual energy consumption in Haryana was estimated at 12 million tons of fuelwood equivalent (FWE), of which only 0.5 million tons FWE was met from commercial energy and the balance from fuelwood (8 million tons FWE) and cow dung (3.5 million tons FWE). Due to low per capita income of the rural populations a significant increase in the household use of commercial energy cannot be expected in the near future. The use of fuelwood and cow dung is expected to continue to predominate.  15 Project Objectives and Description 58. Project Objecties. The project's primary objective was to increase the supplies of fuelwood to rural areas through the establishment of 67,000 ha of plantations located in all 12 districts (now 16) of the State. Secondary objectives were to provide poles, small timber, fodder grass, fruits, oilseeds and other minor products. In order to carry out this program, the project provided for training facilities, vehicles, housing, equipment and additional staff for research and extension activities. 59. Project Description. During a six-year period the project was to: (a) establish 12,000 ha of village woodlots; (b) establish 500 ha of plantations on alkali lands; (c) establish 9,500 ha of strip plantings along roads, canals and railroads. (d) establish 30,000 ha of farm forestry on private land; (e) establish 15,000 ha of plantations on sand dunes; (f) establish additional nurseries to provide planting stock; (g) expand the existing Forester/Forest Guard Schools; (h) provide forestry staff at the operational and extension levels, including staff to support publicity, research, training and monitoring activities; (i) strengthen research activities, and construct seed godowns; (j) develop training of project staff including provision of fellowships; and (k) carry out a wood balance study. 60. Prime responsibility for implementation would be with the Social Forestry Wing (SFW) of the Forestry Department. Total project cost was estimated at US$39.2 million (Rs. 333.1 million), of which US$0.7 million would be in foreign exchange costs. The Credit of US$19 million (SDR15.2 million) was to finance 100 percent of foreign exchange costs and 48 percent of the local costs making up in all 49 percent of the total project cost. The remaining 51 percent was to be financed by GOI and the State Government of Haryana (GOH). Project Design and Organization 61. Project Design. In view of the environmental degradation and scarce natural forest resources, the underlying assumptions and concept of the project were to increase supplies of fuelwood, small timber and fodder for rural populations. The project concept was well-founded and consistent with the national forest policy which promoted tree plantings through private and community participation. Rehabilitation of degraded forests was introduced in 1988 and afforestation of saline and alkaline lands augmented. The project also aimed at handing over the established plantations to local communities through the village panchayat system for protection and management. 62. The project was formulated by the Haryana Forestry Department in 1980 and appraised by the Bank in late 1981. The design of the project was based on earlier methodologies developed and experiences gained in carrying out various plantations with various levels of people's participation in other States. The design had also drawn lessons from earlier experiences of the Forestry Department in implementing social forestry programs since 1960. The substantial area of wastelands in the southern portion of Haryana available for tree plantations was considered in the project design. These areas included the vast sand dunes and saline/alkali lands needing stabilization and rehabilitation. Besides tree plantations, there was little or no appropriate  16 technological package suitable for the environmental development and conservation of the degraded forest area. 63. Main adjustments during project appraisal were: reduction of planting targets in the saline/alkali lands; strengthening of research, communication/extension and training; establishment of the Publicity and Extension, and the Monitoring and Evaluation Units, hiring of local consultants to assist SFW in establishing such units; and to carry out a wood balance study. Problems and risks foreseen at appraisal were that: (a) village panchayats may not be sufficiently motivated or organized to protect and manage the self-help village woodlots and strip plantations; (b) limited experience in the Forestry Department to implement the saline/alkali plantations; and (c) potential difficulties in obtaining State's approval for adequate fund and staff for a larger scale program. These necessitated establishment of both the Monitoring and Evaluation, and Publicity and Extension Units to monitor performance of the project's various plantations, and people's participation, and strengthen various forestry programs of education, training, publicity and extension, as well as revitalization of SFW staffing. 64. The strip plantation component was terminated in 1988 because its activities overlapped with the regular operations of the territorial forestry divisions in Forestry Department. Rehabilitation of degraded forests was included during the project extension period in order to address the environmental problems in the foothills of the Shiwalik. Implementation of this new component led to innovations in social forestry which resulted in increased supplies of fuelwood, fodder and grass to the poorer sections of the population and in reducing soil erosion and water run-off resulting in improvement of land productivity (para. 80). The group farm forestry was another new approach in the social forestry program. SFW organized villagers in saline/alkali- and sand dune- affected lands into contiguous blocks for tree plantations to take turns in maintaining and protecting the plantations. This approach is similar to the group farm forestry initiated by SFW in West Bengal. 65. At the design stage, however, prescriptions for research was highlighted without thoroughly assessing the capability of the Forestry Research Division. The required research programs to support nursery and plantation operations were also not adequately identified. Similarly, the arrangements for distribution and sharing of forest produce and the forest management plans, which valuable elements of project sustainability, were not prescribed. Later however the State Agricultural University at Hissar was involved in various related contract research and consultations between the SFW and the Central Saline Soil Research Institute in Karnal concerning saline and alkaline soils were held. 66. Organization. The organizational structure of SFW was reasonably sound. The successful implementation of the social forestry program depended very much on the effectiveness of social forestry staff whose main responsibility was to work with rural people and motivate them towards greater participation in community forestry. The Publicity and Extension Unit, in collaboration with Village Forestry Workers, established a good working relationship with village panchayats and farmers in demarcating marginal and wastelands for the self-help village woodlots and the saline/alkali and sand dune plantations. SFW's Staffing details are provided in Part III, Table 10. This provided the complete organizational structure, functional enough for effective implementation of social forestry programs. However, the recommended staffing and training were not fully provided for research, publicity and extension, and monitoring and evaluation, which resulted in poor generation of technical information to guide operational staff in carrying out project activities, inadequate motivation and extension to foster peoples' participation in forest protection and management, and inadequate assessment of the project performance. Due to budget constraints,  17 the staffing position of SFW at project completion was only 71 percent of the requirement envisaged at appraisal. Project Implementation 67. Changes to Design.. Due to a significant unutilized credit balance at the end of the original credit closing date in December 1988, several physical, organizational and institutional adjustments to the project were made during the extension period between 1988/89 and 1990/91. Main purpose of such adjustments were to enlarge the planting program, to address the environmental problems, to strengthen forestry support activities, and to encourage community participation in project planning and plantation establishment, protection and management. The planting targets were increased from 67,000 ha to 98,400 ha as follows: village woodlots, from 17,000 ha to 23,700 ha; sand dune stabilization, from 15,000 ha to 19,000 ha; saline/alkali, from 500 ha to 4,700 ha; and farm forestry, from 30,000 ha to 38,500 ha. The strip plantation component under the project was terminated in 1988 and transferred to the territorial forestry divisions in the Forestry Department and the rehabilitation of degraded forests was initiated through the in-situ soil and water conservation activities in the Shiwalik foot hills on sloping areas. This was done by digging staggered trenches and planting forest trees with 2m x 4m spacing and grasses at Im x lm. 68. General. The project started promptly in 1981 and the physical achievements exceeded appraisal targets. The plantations had a relatively high survival rate of about 80 percent. SFW succeeded in establishing a total plantation of 104,000 ha, including 38,000 ha of farm forestry, or 155 percent of the appraisal target of 67,000 ha. Similar to social forestry projects in other states, the plantations on government and community wasteland remained essentially a government- executed program with limited community participation. Due to lack of attention, budget restrictions, delay in the approval and recruitment of staff, and inadequate training, several support activities were only partially implemented. From the beginning, the support role of nursery research and plantation operations was inadequate. There was no training plan for field staff in communication, extension techniques and a better understanding of the needs of intended target groups. The Publicity and Extension had not been effective due to weak coordination with staff at field levels. Community participation had been mainly in terms of panchayat members being consulted by SFW about site selection and employment. 69. Nursery. The nursery requirements were based on the area coverage of the plantation components by district as follows: village woodlots in seven districts; sand dune stabilization in six districts; saline/alkali plantations in four districts; farm forestry in seven districts and rehabilitation of degraded forests in three districts. In each district at least one department's central nursery was established with many subsidiary nurseries. Many kissan nurseries were also established with SFW 's assistance. A total of 1,784 nurseries were established which produced a total of about 180 million seedlings. SFW had established 163 nurseries producing about 120 million seedlings, while 1,523 nurseries were established by farmers (kissan) and 98 nurseries established by schools, together producing a total of 40 million seedlings (para. 74). Most of seedlings raised (Eucalyptus. Poplar. Dalbergia. Acacia tortiles and Prosopis juliflora. Acacia nilotica. etc.) were species for fuelwood, poles and small timber. Fruit trees of seed origin were also supplied. The nursery operations remained poor due to low quality seedlings and nursery techniques. 70. Plantations. 67,000 ha was to be established in 12 districts (now 16 districts). All components were aimed primarily to increase the supplies of fuelwood, poles and small timber to  18 rural areas. About 104,000 ha of plantations were established and its technical performance was good as indicated by the high survival rates ranging from 80 percent to 90 percent. 71. Vil age Woodlio. 12,000 ha of plantations was to be established. SFW was to establish a plantation in each village panchayat, maintain the plantation for 5 years with local people's participation in protection. Starting in the fifth year, protection and maintenance would be the responsibility of the village Panchayat (para. 89). 72. A total of 25,293 ha of plantations were established, or 210 percent of the appraisal target. Main species planted were Acacias on public lands and Eucalyptus on private lands. The average survival rate was good at 80 percent. Conflicting views of village panchayats over the use of village or community lands resulted in delay in the plantation establishment in some areas which, however, was minimized through more consultations between SFW and the village panchayats. 73. Strip plantations. A total of 9,500 ha of plantations were to be established along roads, canals and railways. The plantations would be owned by the Forestry Department but villages adjacent to the strip plantations were allowed to collect grass, fodder, fallen wood and tree loppings free of charge while helping SFW in protecting the plantations (para. 89). By 1987, a total of 9,500 ha of plantations were established, slightly exceeding the appraisal target. Most species planted were Eucalyptus and the spacing was at 2m x 3m. Cattle intrusion and browsing were the main problems during implementation but these were minimized by leaving open spaces for cattle passage ways. 74. Farm Forestry. At appraisal it was estimated that about 75 million seedlings (2,500 per ha) would be distributed to owners of private wasteland for plantings on about 30,000 ha. SFW was to provide seedlings free of charge and to transport them to distribution points in village panchayats. Priority would be small farmers with less than 2 ha of land holdings. A total of about 87 million seedlings were distributed to about 171,000 farmers for the planting areas of 40,200 ha. Of the total seedlings distributed, about 40 percent and 50 percent reached marginal and small farmers, respectively. Main species were Eucalyptus and Poplar. The planting spacing was 2m by 3m for both species. The average survival was good at 90 percent. The problem lay not only in how to motivate people towards farm forestry but also to regulate the conversion of good agricultural lands into pure tree plantations which was, and is, contrary to the State's aim of increasing food production. Initially, the farm forestry appealed more to large farmers, especially the absentee landowners, who used their lands for tree plantings to prevent encroachment by landless and marginal farmers. Small and marginal farmers joined later. The study conducted by Monitoring and Evaluation Unit indicated that about 80 percent of the total seedlings distributed by SFW were planted on lands which were previously cropped, and 25 percent of farmers who had taken seedlings diverted agricultural lands to tree plantings. Initially, SFW started distributing free seedlings to all recipients. In 1984 SFW distributed seedlings with an upper limit of 400 per family to marginal and small farmers and charged a nominal price of Rs.0. 15 per seedling to large farmers and institutions. However, since 1985, due to administrative difficulties in managing the system, SFW stopped the distribution of free seedlings and introduced a uniform seedling price of Rs.0.25 per seedling to all recipients. However, seedlings continue to be subsidized so that the activity is not self-sustaining. 75. Sand dune stabilization. SFW was to establish 15,000 ha of plantations on sandy individual or panchayat-owned lands. SFW would establish at least 15 ha of plantations for each sand dune woodlot and provide for water transport since water was scarce on the site. The establishment and maintenance costs over a period of three years would be borne by SFW which would expect to  19 recover these costs from the first major harvest. However, afforestation of private sand dunes with project funds continued which should have been borne by the owner. 76. SFW established a total 20,270 ha of sand dune plantations, or 135 percent of the appraisal target. Most of the areas were planted to Acacia tortilis with 2m x 4m spacing. Trees attained an average survival rate of 80 percent. Castor seeds were interplanted as nurse crop during the first 2-3 years to minimize the adverse effects of frost on the trees. It was in the sand dune plantations where SFW has shown its capability to grow trees even in very hot, dry and drought conditions. 77. Due to difficulties in motivating village panchayats, most of the plantations were established on private lands where a group of farmers, mostly large farmers, with contiguous stretch wastelands, organized themselves for tree plantations. Therefore, there were no socially related problems encountered during project implementation. The stabilization effects of tree planted in the sand dune areas showed desirable impact in holding the soil-sand mixture. However, the size of each plantation in many areas appeared to be too small to have adequate impact on stabilizing sand dune in adjacent agricultural lands. 78. Saline/Alkali Lands. A pilot scheme of 500 ha of plantations was to be established on saline/alkali affected private or panchayat lands. SFW was to establish, maintain and protect the pilot plantations and all costs were to be borne by SFW. The performance of the plantations would be carefully monitored by the Central Soil Salinity Research Institute (CSSRI) at Karnal. SFW was also to provide funds to meet the costs of materials and equipment for establishing trials and monitoring of results (para. 83). 79. Physical achievements of 5,142 ha of plantations has far exceeded the appraisal target. The implementation has also gone beyond the pilot scheme. SFW has adopted the farmer group approach which was workable under the sand dune stabilization component and would recover the establishment and maintenance costs, excluding the cost of seedlings, free of interest from participants. The plantations were established using saline resistant species such as Prosopis juliflora. Terminalia arjuna and Acacia nilotica as the main species for fuelwood. The problem with juliflora was its long spines, although it was found to thrive well on the site. Another species, Tamarix articulata was planted in 1988-89 and was found adaptable to saline/alkali lands. Spacing of 4m x 2m was observed in saline/alkali land plantings and a survival rate of about 90 percent was obtained. Pit preparation was necessary to assure survival but besides being cumbersome and tedious, it was also costly. A pit is normally 120 cm deep and 20 cm wide, requiring an exacting soil mixture of 3 kg gypsum, 8 kg manure, 10 kg silt and the rest to fill the pit consisting of local soils. To overcome the tedious pit preparation, a mechanical auger with a diameter of 20 cm attached to a farm tractor was tried and found to be more efficient and effective. 80. Rehabilitation of Degraded Forests. This was an innovation introduced by the Bank in 1988 with the primary objective of controlling erosion and enhancing water conservation. A total of about 3,510 ha were established using various species mostly Acacia spp. Cedrela, and Dalbergia spp. with spacing of 3m x 4 m. No serious problems were encountered during implementation. Staggered trenches with grass plantings were the main features of this component which is the mainstay of the in-situ water and soil conservation techniques. The plantations attained an average survival rate of about 80 percent. The work carried out was impressive and proved to generate immediate benefits in terms of fuelwood and grass. 81. Forestry Education. The training program did not proceed as anticipated at appraisal nor did the GOH sanction the required posts in the forestry schools. Moreover, no consultant was hired to  20 assist in developing the training course for the Village Forestry Workers. 580 new recruits were trained at Pinjore using the syllabus for forest guards. In addition, 35 Deputy Rangers and 98 Foresters were trained at the Forestry Training School at Pinjore. Twenty women were recruited during the first half of the project but none of them attended training at Pinjore. The women's dormitory constructed under the project was, therefore, never used by women but by men trainees. 82. LocaVOverseas Fellowships and Training. During project implementation, five SFW staff were sent for overseas courses of more than 8 weeks in the UK where three attended a course on social forestry and two attended a course on land survey and planning. In addition, six other staff were also sent overseas for about two weeks of study tours and seminars on social forestry. Two fellowships were given for a diploma course in social forestry at the India Forest Research Institute in Dehradun. This appeared to be a particularly good course and appropriate people were selected to attend. In addition, a wide range of staff from SFW attended local workshops on social forestry from 2 to 17 days duration. In a few instances the same persons were sent to more than one course or workshop. A total of 55 staff benefitted from attending various courses and workshops. However, teaching staff at Pinjore, with a few exceptions, have benefited neither from overseas nor local fellowships and training. 83. Research. Throughout the implementation period, research remained weak. Although SFW felt the need for research support, budget, staff and logistics were not sufficient for a functional and effective research unit. There was also a lack of a clear direction on research methodology although a framework was prepared by the Bank at appraisal. It was only during the project extension period that the cooperative efforts between SFW and the Department of Agro-forestry in the Haryana Agricultural University have been formalized and some meaningful research work was undertaken. The success of SFW in its saline/alkali lands rehabilitation activities was among the few impressive results of forceful research undertaking. A number of research programs had also been drawn up including the silvicultural studies (nursery and plantations), management (rotation, growth and yield studies), agro-forestry (cropping intensity in combination with forest species), biomass utilization (alternative uses of other products aside from wood), protection, wildlife management, and socio-economic studies. 84. Extension. Communication and Publicity. Support was provided for the creation of two Publicity and Communications Units to develop materials and carry out public relations activities. Eight Publicity Officers were to be employed in each of the eight divisions to coordinate all the publicity activities. The staff complementarity was to be reinforced by field staff from other divisions so that PCU was able to reach farmers with motivational messages through mass media. Funds were also provided for a local consultant to help in developing publicity and extension programmes. 85. Only one unit was established at Ambala District in the northern forestry circle. Two Chief Publicity Officers and two Publicity Officers were recruited but the local consultant was never hired. Nevertheless, the Unit carried out a commendable program. It trained 27,362 farmers (11 percent women) at one-day farmer camps, provided motivational and instructional training to 2,738 school teachers (27 percent women), and 3,845 village volunteers workers in the Ministry of Human Resources. Through mass media and public relations activities, it had created an awareness among policymakers and village leaders. 86. To expand extension coverage at the village level, the Unit was drawn into working with the extension network where the Greening of Haryana Program was launched in 1990. The Unit had developed monthly extension messages to be communicated to farmers through the network.  21 However, the extent to which the messages were passed through the network had not yet been studied. With the emphasis given to tree plantings under the Greening of Haryana Program, it is likely that some extension agents have used these messages. 87. Monitoring and Evaluation Unit. This Unit was established in 1982 but its efforts were hampered by serious shortages of staff and a lack of guidelines on monitoring and evaluation. The reports produced were not made available on time due to delays in data analyses and report finalization. Moreover, inadequate attention was given by management in utilizing the findings of the analyses in project planning and implementation. Nevertheless, the Unit's work in the latter part of project period was carried out with the use of the "Operations Guideline to the Monitoring and Evaluation of Social Forestry in India" prepared jointly by the Bank, FAO and the Office of the Inspector General of Forests of India. The Monitoring and Evaluation Unit produced one comprehensive report in 1990. The surveys included plantation survival rates in one district, people's participation and selected growth and yield assessments. The Unit could have preformed better had the services of an experienced consultant been availed of in developing a Monitoring and Evaluation Guideline in the earlier years of the project. 88. Studies. At appraisal funds were provided a socio-economic study and a wood balance study to provide a data base for planning of social forestry development activities in the State. A wood balance study was carried out by the National Council of Applied Economic Research in 1986-87 and published in 1988. The study, however, did not define the methodology used and merely presented information on the pros and cons of various methods of determining household energy consumption, future demand, and the estimated availability of forest products from the State forests and private plantations. Due to SFW's lack of attention, the socio-economic study was not undertaken. 89. Participation of Villagers and Community. The Model Contract between communities and SFW was developed at appraisal which specified the nature of the participation expected from each party and the arrangement for cost-benefit sharing. It pointed out that the distribution of seedlings for private plantings and the right to gather minor produce from plantations on government and community lands would particularly benefit the poor. The employment of labor under the project was to benefit mainly the landless and the disadvantaged sections of the rural population. Regarding community's participation, SFW would encourage villagers' participation and assist village panchayat in demarcating wastelands for village woodlots and plantations for rehabilitation of degraded forests. SFW was to establish the plantations and maintain them for five years but local people would participate in protection and thereafter the villagers and village panchayats would take over the full responsibilities and rights over the management, protection and utilization. After SFW's recovery of the direct cost of a plantation, excluding the cost of seedlings, from the first major harvest, the remaining sale revenues would be given to the village panchayat for use in either financing public works or establishing additional village woodlots. Villagers would be allowed to collect fallen wood and tree loppings from plantations and share a minimum of 25 percent of the harvestable yields. Regarding the strip plantation, in exchange for protection, villagers would be permitted to collect minor forest produce, fallen twigs and leaves, and to cut and carry grass free of charge. At every thinning/harvesting, the net proceeds from sales, after deducting the plantation and maintenance costs, would be given to village panchayats and villagers adjacent to the plantations. 90. The Contract Model provided a good conceptual framework for people's participation in the protection, management and distribution of benefits but did not specify the beneficiaries and how the benefits would be distributed, resulting in insufficient attention being given to documentation  22 of the beneficiaries and different views on the distribution of benefits. Throughout the implementation period, with the exception of village leaders, there has been generally very little participation of the villagers in the planning and execution of SFW's plantation. At best, village leaders have been consulted about the site and the responsibilities including selection of farmers who needed seedlings and kissan nurseries and villagers for employment in SFW's planting activities. The Monitoring and Evaluation report indicated that the landless and majority of marginal and small farmers benefitted from employment generation and the distribution of seedlings. 91. Initially, people's participation has mainly been through consultations between SFW and village panchayats. In some cases the agreements were signed, otherwise there was only a general discussion. With the introduction of the village micro-planning in the last three years of project implementation, more attention had been given to involve villagers in the selection of species desired. 92. Since village panchayats have numerous functions, greater attention to forest protection was shifted to the VFPCs, a sub-committee of the village panchayat, which were institutionalized under the State's Order in 1990. Although there were about 3,700 villages involved in 63,500 ha of SFW's plantations on government/community lands, to date only 160 VFPCs have been formed and some 7,300 ha of three year old plantations were handed over to them. However, because the plantations which were handed over were not adequately protected and maintained, SFW had decided to hand over the plantations after five years when trees are fully established. The need for the SFW to continue to protect the plantations also suggests the insufficient involvement of the local people in planning and managing the plantation. Furthermore, members of VFPCs have not yet received training on forest management to make them feel confident about taking over the given responsibilities. Since most of the plantations were, and more would become, mature for harvesting, there is an urgent need to accelerate the involvement of more VFPCs for better participation. 93. GOH in 1990 issued a State's Order on cost recovery of SFW's plantations and the benefit- sharing between VFPC and villagers. Regarding the cost recovery, there is only one uniform system for all SFW's plantations. The Order stipulated that SFW will recover the direct plantation establishment and three-year maintenance costs, excluding the cost of seedlings, free of interest, from proceeds of sales from the first and/or second major harvests, the balance would be distributed between VFPCs and their members. Under village woodlots and the rehabilitated degraded forest plantations, 75 percent of the benefits are retained by VFPCs for community development and the remaining 25 percent are distributed equally among members in addition to free collection of minor forest products. However, the guideline given to VFPCs by SFW stated that the forest produce would be sold to village members of VFPCs at the average auction prices of the last three years. This would not permit the economically disadvantaged sections of the community to benefit from the benefit-sharing system but would give unfair advantage to those wealthy villagers who could pay for the forest produce. In regard to strip plantations, in many cases the village panchayats still have not designated people to protect the plantations. Project Results 94. Overall, the project achieved its main objectives. In addition to implementing a large-scale social forestry program in the 16 districts, the project also contributed to increasing skilled manpower for forestry development and awareness among the rural population in forest protection and environmental conservation. Up to 1990, the project generated a total of about 30 million man-  23 days of employment and created 1,050 permanent jobs as compared to 17 million man-days and 1,420 permanent jobs estimated at appraisal. Employment of women accounted for about 20 percent. In terms of the increased wood production, it is estimated to be about 25.1 million tons, or nearly double the appraisal estimate of about 13 million tons of wood products and grass. There would be about 15 million tons of fuelwood, 3.9 million tons of small timber, 88,300 tons of castor seeds, 3.4 million tons of grass and fodder, 1.7 million tons of Bhaber grass and 1 million tons of dry fallen wood. At appraisal, these were estimated to be 9.7 million tons of fuelwood, 1.2 million tons of small timber and 1.6 million tons of fodder, 0.4 million tons of fruits, 120,000 tons of grass and 18,000 tons of castor seeds. The significant higher production is due mainly to the substantial increases in the planting areas by 55 percent rather than in growth and yields. Based on the sample surveys conducted by the Monitoring and Evaluation Unit, the reported annual yields at harvest range from 4.2 t/ha for fuelwood, 1.9 m3/ha for small timber, 2.8 t/ha for grass and fodder and 0.2 t/ha for castor seeds compared with the appraisal figures of 1.9-8.7 t/ha for fuelwood, 0.3-1.4 m3/ha for small timber, 2 t/ha for fodder and 0.4 t/ha for castor seed. 95. The financial and economic analysis was undertaken in 1990 constant prices. The financial cost and benefit streams of the six plantation models are presented in Attachment 1, Tables 1-6. Survival rates, growth and yields of plantations are based on sample surveys conducted by the Monitoring and Evaluation Unit. The establishment and maintenance costs are based on SFW's actual costs incurred in 1990. The financial value of forest produce was calculated using the average financial stumpage prices prevailing in the project areas. The results of financial analyses calculated over a period of 21 years, showed the estimated financial rates of return (FRR) of 24 percent for the farm forestry, 11 percent for village woodlots, 34 percent for sand dune stabilization, 13 percent for the strip plantation, 7 percent for rehabilitated degraded forest plantation and 2 percent for saline/alkaline plantation. The low financial rates of return for the saline/alkali and rehabilitated degraded forest plantation components is due mainly to the relatively high plantation costs including soil treatment and soil and water conservation. The economic re- evaluation was carried out over a period of 30 years. All project costs incurred during the implementation period were included in the analysis and adjusted to 1990 constant prices by using the wholesale price index as shown in Attachment 1, Table 6. Local costs and unskilled labor were further adjusted into border price by applying the Standard Conversion Factor (SCF) of 0.80 and Specific Conversion Factor of 0.60 respectively. Recurrent costs after project completion, excluding fellowships, Monitoring and Evaluation, and studies, have been assumed at 25 percent of its 1990 actual costs. The economic benefits of forest produce were valued at the financial prices adjusted by SCF of 0.80. The economic cost and benefit streams of the Haryana Sub-project are presented in Attachment 2, Table 7. The result of the analysis show a re-estimated economic rate of return (ERR) of 23 percent, compared with the appraisal estimate of 19.5 percent. 96. Impact. The impact of the project can be assessed in terms of achievement of the project objectives of the generation of employment, increases in the supplies of wood production and number of beneficiaries, and environmental impact. Despite several drawbacks in the supportive components and people's participation, SFW successfully accomplished all the planting program and even far exceeded expectations especially in the saline/alkali, sand dune and farm forestry plantations. The accomplishment in the plantations since 1976 significantly increased the forest coverage in the State from about 4 percent to about 8 percent. SFW also successfully created public demands for tree plantings and awareness among rural people and policymakers on environmental conservation. About 171,000 farmers benefitted from farm forestry, of which 90 percent of total farmers were marginal and small farmers. Total employment generated during the project implementation period was about 30 million man-days, of which women accounted for  24 20 percent. The increased forest produce and employment generation benefitted the majority of the poor sections of the populations and helped in reducing further damage to the already degraded environment. 97. The project has significantly positive environmental impact. The rehabilitated degraded forests, sand dune and saline/alkali plantations helped to improve soil and water conservation, sand dune stabilization, micro-climatic conditions and soil fertility restoration. Protection of plantations from grazing and browsing, and the cut-and-carry method of fodder and grass harvest also helped improve the soil and increase water infiltration. Project Sustainability 98. SFW successfully implemented the first large-scale social forestry program through various schemes with IDA's assistance. It had demonstrated its capability to implement its own program and has the capacity to implement expanded social forestry activities in the future. However, the qualitative aspects of program implementation remained weak. The organizational weaknesses in research, training and extension resulted in poor services to farmers and insufficient involvement of local people in planning and managing the plantations, as evidenced by the need for SFW to continue to protect and manage the three year old plantations. Although 6,350 ha of plantations were already handed over to 160 VFPCs, none of VFPCs' members have received training on forest management, and common property joint management and protection, which are critical to the sustainability of the plantations which were handed over. Since most of the plantations were, and more would become, mature for harvesting, there is urgent need to accelerate the handing over of the established plantations and the involvement of more VFPCs for management, protection and utilization. Bank Performance 99. During the eight-year project period there were ten missions in Jammu and Kashmir and eleven in Haryana. Six out of seven missions between June 1984 and April 1988 was staffed, among others, by a forester, and all the five missions thereafter, allowing for continuity in project supervision which benefitted project implementation. Overall, the Bank's assistance to the State, from project appraisal to its completion, had been generally beneficial. Recognizing the urgency and importance of the project, the Bank remained flexible and when the Borrower needed time for project completion, it granted the requests for extension. The following Bank's recommendations to the State and SFW were useful and helpful to project implementation: (a) to involve rural population in project planning and execution, and the introduction of the village micro-planning; (b) setting a limit on number of seedlings distributed to marginal and small farmers and pricing of seedlings to large farmers and institutions; (c) to prepare forestry technical management plans for different plantations in each agro-climatic zone; (d) to carry out plantation growth and yield assessments; and (e) to involve the Department of Agro-Forestry in the Haryana Agricultural University and the Central Soil Salinity Research Institute (CSSRI) in carrying out experiments on agro-forestry and in saline/alkali lands on species adaptability, planting technique, and monitoring the performance of plantations. 100. There were, however, some areas where the Bank should have given closer attention and required some conditionalities for Credit extension: (a) development of supportive components should have been given equal priority with plantation operation. Experience showed that the implementation of research, publicity and extension, and people's participation lagged far behind and have remained weak; (b) hiring of qualified consultants to provide guidance in planning and  25 execution of technical operations in project implementation; and (c) providing recommendation to SFW to revise the method of the distribution of benefits using the average auction price of the last three years which prohibited the participation of the disadvantaged sections of the population within VFPCs (para. 84). Borrower Performance 101. The overall performance of the Borrower was satisfactory. SFW proved its capability to accomplish a much larger planting program. Public demands for, and awareness of, tree plantings and environmental conservation have grown beyond expectations and were recognized by rural people as well as by policy makers. The implementation of the saline/alkali component went beyond the pilot scale and was well accepted by farmers. SFW followed the Bank's recommendations and implemented the rehabilitation of degraded forests component in order to address the environmental problem and to provide fuelwood and grass to the disadvantaged sections of the population. However, the much-needed plantation management plans, which was a requirement in scheduling silvicultural treatments, harvesting regime and regeneration for succeeding cycles, was not given priority and adequate preparation. Moreover, the stand-and-stock information on SFW's plantations had not yet become available which is important for the estimation of future wood supply and stumpage valuation. The overall project coordination through the State and District Policy Review Comrnmittees was beneficial for annual program planning. 102. The Borrower substantially complied with the legal covenants and most of the Bank's recommendations (para. 99). However, many of the required staff positions remained unfilled resulting in ineffective operations, weak supervision and insufficient support services to farmers. SFW failed to employ consultants to help in designing/developing program of research, publicity and extension, and Monitoring and Evaluation. GOH was slow in giving policy directives on the transfer of the responsibilities of plantation protection, management and utilization to village panchayats and VFPCs. This had seriously affected the community's participation in the project due to lack of assurance on the expected share of benefits. Although GOH partially complied with the provision of staff housing, housing rental was only provided in the latter periods of project implementation. Project Relationship 103. The Bank maintained a good relationship with GOI and GOH through its resident mission. This relationship was particularly useful and significant when the Borrower was unable to utilize 50 percent of the Credit by the end of the original Credit closing date in December 1988. The Bank responded quickly to Government's request to extend the project implementation period by three years and to increase the disbursement rates. The Bank's recommendation on rehabilitation of degraded forests with soil and water conservation techniques was beneficial. Its efforts in helping to integrate the SFW's extension with the extension network and assistance in the preparation of the plantation technical manual and the guidelines on the village micro-planning and monitoring and evaluation were useful and appreciated by the Borrower. Consultant Services 104. Funds for 96 man-months of local consultancy were provided to cover monitoring and evaluation, publicity and extension, and a wood balance study. Due to budget constraints and lack of attention in SFW, only one local consultant was utilized for the wood balance study. Under  26 GOI/GOH procedure of local competitive bidding, no difficulty was encountered in the construction of buildings and procurement of vehicles and equipment. Project Documentation and Data 105. The main documents governing project implementation were the Staff Appraisal Report and its project files and the legal documents. The documents were generally well prepared and provided a useful framework for the Bank and the Borrower to implement the project and monitor its progress. However, the Staff Appraisal Report did not provide sufficient operational guidelines on: (a) the implementation of the research program; (b) the identification of beneficiaries, specification of the role of community, and the mode of benefit distribution; (c) the nursery and plantation management; and (d) project monitoring and evaluation.  27 PART II. PROJECT REVIEW FROM BORROWER'S PERSPECTIVE ------------------------------------------ (Jammu and Kashmir) A. Evaluation of Bank's Performance and Lessons Learned 1. The Bank personnel were professional in all respects and contributed to the development of Project. They encouraged the shiFt irn the Project design from uni-tier to multi-tier system of plantation. The review missions stressed on the result orientation of the Project and responsibility of the Project in sharing benefits with the people. They also assisted in identification of bottlenecks and suggested ways to remove themn. LESSONS LEARNED. 2. Overall commun.ications between the Bank and B4orrower should be improved and well documented. B. EVALUATION OF BORROWER'S OWN PERFORMAtNCE AND LESSONS LEARNED. 3. The overall performance of the project has been satisfactory. The project has evolved significantly at the planning and implementation level. The void created by the dissolLution of Panchayats in 1984 was filled by forming Village Forest Committes since 1988 which thad the bene-ficial effect of bringing user community in closer touch with the Project. The intr-oduction of " cut and carry " system o-f produce assured better understanding of the objectives of the Project by the People. 4. Micro-planning was introduced in the last few years and a need based site specitic technology was developed . The user communities were involved largely to the extent sharing of benefits which resulted in better protection o-f Project areas. 5. A significiant achievement was the introduction of fodder grasses and legumes in plantation areas under silvipasture. The plantation design was changed to multi-tier system from uni-tier system and by tending r-,atural regeneration which ensured better productivity. Stress was laid on total biomass rather than nlumber of plants planted. Besides there was shift from predominantly monoculture to mixed plantatiorns.  28 6. The sUipport: activitiesf in the fields of training & fellswship,Research evaluation, extension were not uptC. the Je>is. r eci l evel D Due to i nadeqLuate LItiIli at:itDn of trair,ing and fellowship facilities the projec:t management was not abreast wi th the Latest techi ques in mi cropI arini rig, plantiang techFni. qteS wthi Ch e rC?sul teCl in slower pace of dCvel cpmEn-it of the PrOject.. The absence of adequate ref scsearrh s.i> pport advErsely a+iected wider choicr- of spe ieis inattent:ion towards shrubs,neglect of natural .rop. *The rnai r, re>ason -fcor tht-i.s wa-s :i na deq at:e i r-fr a-t:ru ur-. a lI s u pp or-t to these Ac t: i vi t i es. 7 Thr*e Prc. . j inc t ' si CUorcii nati tDn w:i i h pro rgrarms of other a gen-, i es Ii ke fiyri (itl tLr- , An i mal Husbandry, ?e r i CtLtl tLire, Horti cul turfE was' weca k- Thi s al sC a f ef;: t e fd ex tens: i .n actl i vi ty and consequent 1 y Fr o-{j ci: t per.l f orz mace- :f LESSONS LEARNED: B. Pc t.i ve piAr ti ci p.o1ti on ocf t hr:E u rser omMLuni ty i n pli.tnning and management needs to be given prior-ity. Only then it will ne poss:i ble i:o hand over vi I 1. age woodI ot s tro the user cfimmlii t.i es after- 5 years as .en vi sag ed in the Project. 9. TThe 'i 1 l age For-est Committees have to be br-oad b.Yased to ensure parti cipAt:i on ot ai.L sections of Society ton avoid conf .ic:ts. These-! committees hla ve t t.r be I eq aal 1 y backed an-rd s.;h ari r) ot usuIf ru.cts wi th them rccoqn i AsreJ I i