Mali - Second Forestry Project

Document of The World Bank FOR OFFICIAL USE ONLY Cd. /6g2S*Az7 Report No. 5787-ELI STAFF APPRAISAL REPORT REPUBLIC OF MALI SECOND FORESTRY PROJECT December 6, 1985 Western Africa Projects Department Agriculture C This document has a restricted distribution and may be used by recipients only in the performance of their official dulies. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit : CFA Franc (CFAF) US$1.00 CFAF 434 CFAF 1 million US$2,304.00 WEIGHTS AND MEASURES I stare of fuelvood from natural forest = 0.50 m3 or 225 Kg of dried wood 1 m3 of fuelwood from natural forest = 2 stares or 450 Kg of dried wood 1 stare of fuelwood from 3 plantation (Gmelina variety) = 0.60 m or 350 Kg of dried wood 1 m3 of fuelwood from plantation (Gmelina variety) = 1.67 stares or 583 Kg of dried wood ABBREVIATIONS AND ACRONYMS CCCE Caisse Centrale de Cooperation Economique (French Aid Agency) DNEF Direction Nationale des Eaux et Forats (National Directorate of Water and Forests) DPP Division des Projets et des Programmes (Programs and Projects Directorate) FAC Fonds d'Aide et Cooperation (French Grant Aid Agency) IER Institut d'Economie Rurale (Rural Economics Institute) MRE/CD Ministare des Relations Exterieures/Cooperation et Developpement (Ninistry of External Relations/Cooperation and Development, France) NENE Hinistere charge des Ressources Naturelles et de l'Elevage (Ministry of Natural Resources and Livestock) OAPF Operation Amenagement et Productions Forestieres (Forestry Management and Production Operation) OPNBB Operation Parc National de la Boucle de Baoule (Boucle du Baoule National Park Operation) FISCAL YEAR IDA July I - June 30 Government January 1 - December 31 OAPF January 1 - December 31  FOR OMCIAL USE ONLY REPUBLIC OF MALI SECOND FORESTRY PROJECT TABLE OF CONTENTS Page DOCUMENTS CONTAINED IN PROJECT FILE .................................. iii CREDIT AND PROJECT SUNMARY ...................................... iv I. BACKGROUND ................................................1... A. Introduction .1 B. The Rural Sector .1 II. THE FORESTRY SUBSECTOR . ....................................... 2 A. Resources ............................................... 2 B. Institutions ............................................ 4 C. Government Policy and Recent Experience .................. 6 D. Experience with Past Lending ............................. 8 III. THE PROJECT ................................................ 9 A. Objectives and General Description ...................... 9 B. The Project Area ........................................ 10 C. Detailed Features . ...................................... 11 D. Project Implementation .......... ........................ 14 E. Xonitoring and Evaluation ........ ....................... 16 F. Cost Estimates and Financing ....... ..................... 16 G. Procurement and Disbursements ....... .................... 18 H. Accounts and Audit .............. ........................ 21 I. Markets and Prices .............. ........................ 21 J. Recurrent Costs and Cost Recovery ........................ 22 K. Benefits and Risks . ...................................... 22 IV. AGREEMENTS TO BE REACHED AND RECOMMENDATION ..... ............. 23 This report is based on the findings of an IDA/CCCE/MRE appraisal mission which visited Mali in October 1984 and a second IDA mission of January 1985. The missions consisted of J. Gorse, Senior Forestry Specialist, D. Jarvis, Economist, and M. Tapo, Financial Analyst (IDA), L. Humbert (CCCE) and J. Clement (MRE/CD). The report was processed by Alexandra Gripari and edited by Michale Moriarty. I document has a rtricted distribution and may be used by recpients only in the performance of their ofricial duties. Its coDtents maY not otherwie be disclbsed without World Bank authorization.  - ii - ANNEXES 2-1 Forestry Subsector:Resource Base 2-2 Markets, Prices and Fiscal Policy 2-3 DNEF Organization Chart 2-4 Recent Projects in Forestry Sector 3-1 Pilot Rural Forestry Component 3-2 Studies Component 3-3 Project Implementation Schedule 3-4 T. A. Requirements 3-5 Project Costs by Summary Accounts and Financing 3-6 Disbursement Schedule and Profile 3-7 DNEF Budget 3-8 Production 3-9 Economic Analysis MAP IBRD No. 18886: Mali - Project Location  REPUBLIC OF MALI SECOND FORESTRY PROJECT DOCUMENTS CONTAINED IN THE PROJECT FILE A. Reports Related to the Sector Code 1. "Etude du developpement forestier en milieu rural", Thomson, Taylor, Montagne, Sylla, Keita, Konate; December 1983 223.304 2. "Planification de l'energie": Annex III: Secteur "Bois et charbon de bois", Transenerg; 1984. 223.305 3. "Politique forestiere nationale", DNEF; 1982. 129.813 (A+B) MLI-Cr.883 4. "Analyse du secteur forestier et propositions", CILSS, Club du Sahel; 1982. 223.306 5. "Rapport Final: Projet de recherche sur l'utilisation rationelle de gibier au sahel", Vol. B2, University of Wageningen; 1984. 223.307 B. Reports and Studies Related to the Project 1. "Preparation du second projet forestier", OAPF; 1984. 223.308 2. "Foresterie rurale IIeme Region", CTFT; April 1985. 223.309 3. "Amenagement des forets classees de la Faya et des Monts Mandingues", J.Morel; March 1985. 223.310 C. Staff Working Papers 1. Project Costs (Computer Printout); selected working papers on economic and financial analysis, D. Jarvis; May 1985. 2. Unit Cost Tables, J. Gorse; December 1984. (Filed correspondance .{ali-Forestry II, December 12, 1984). WAPAC July 1985  REPUBLIC OF MALI SECOND FORESTRY PROJECT CREDIT AND PROJECT SUMMARY Borrower: Government of Mali Beneficiary: National Directorate of Water and Forests (DNEF) Amount: SDR 5.9 million (US$6.3 million equivalent). Terms: Standard IDA Terms. Flow of Credit Proceeds: Borrower to Di'EF (US$5.3 million): grant Project Description: The project addresses the increasingly real threat of deforestation in many parts of Mali through a combina- tion of urban and rural initiatives. For the urban market, tax reforms will influence demand by increasing the consumer price of wood in Bamako and elsewhere while wood supply will be improved through the planta- tion component. In rural areas market interventions are inappropriate and technical solutions are scarce. Accordingly, the project will finance two pilot schemes aimed at developing guidelines for managing the national forest. The project would also provide technical assistance to the Forestry Department and finance studies to improve knowledge of the sector.  - v - Estimated Costs: (Net of identifiable taxes and duties) Local Foreign Total US$ million---- Support to DNEF 0.7 1.2 1.9 Rural Forestry Activities 0.5 1.0 1.5 Semi Industrial Plantations 1.0 2.3 3.3 Other OAPF Activities 1.8 3.3 5.1 Project Financial Management Unit 0.2 0.6 0.8 National Park Support - 0.3 0.3 Total Base Costs 4.2 8.7 12.9 Physical Contingencies 0.5 0.6 1.1 Price Contingencies 1.0 1.7 2.7 Total Project Costs a' 5.7 11.0 16.7 Financing Plan: IDA 1.9 4.4 6.3 CCCE 1.7 3.7 5.4 MRE/CD/FAC 0.1 2.8 2.9 Government/OAPF 2.0 0.1 2.1 Total 5.7 11.0 16.7 a/ Includes US$1.0 million PPF advance. Estimated Disbursements from IDA Credit : FY86 FY87 FY88 FY89 FY90 FY91