Rwanda - Second Integrated Forestry Project

Document of The World Bank FOR OFFICIAL USE ONLY C' R /X"'- , Report No. 6586-RW STAFF APPRAISAI. REPORT RWANDA SECOND INTEGRATED FORFSTRY PROJECT May 6, 1987 Rpgional Pro ,'c ts T. partment Fastern and ;outhjthrn Africa Regional Office 1 his document ha% a restricted distribution asid mna be used bs recipients onil in the performance tit their ,ifficial duties. Its contents mna nJal olher*ise be di%clo%ed *ithout 'Aurld Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Franc Rwandese (RF) US $1.00 = RF 83 RF 100 - $1.20 WEIGHT AND MEASURES Metric British/US Equivalents 1 meter (m) = 3.3 feet 1 hectare (ha) = 2.47 acres 1 are (100 m2] = 0/02 acre 1 kilometer (km) = 0.62 mile 1 square kilometer (km2) = 0.39 square mile (sq. m.) 1 kilogram (kg) = 2.2 pounds (lb) 1 liter (1) 0 0.26 US gallon (gal.) 1 metric ton (m ton) = 2,204 (lb.) GLOSSARY OF ABBREVIPTION, APEF - Actions a l'Exterieur de la Foret BA - Forestry Promotion/Bureau d'Animation 3R - Rural Afforestation Office/Bureau de Reboisement hIS - Statistics Office Bureau d'Inventaire et Statistique CAT - Technical Support Center/Centre d'Appui Technique CCCE - Caisse Centrale de la Cooperation Economique DCE - Department of Control and Evaluation/Direction Controle et Evaluation DGF - Forestry Department/Direction Generale des Forets ERR - Econoranic Rate of Return FDLO - Federation of Livestock Owners/Fonds Europeen de developpement GBK - Gishwat{-Kigali-Butare Project Unit GOR - Government of Rwanda IDA - International Development Association ISAR - National Research Institute/Institut des Sciences Agronomiques du Rwanda MINAGRI - Ministry of Agriculture, Livestock and Forestry/ Ministere de l'Agriculture, de l'Elevage et des Forets ORINFOR - National Information Service/Office Rwandais d'information OVAPAM - Office pour la Valorisation des Produits Agricoles de Mutara PACZN - Natural Forest Conservation and Management Plan/ Plan d'Action pour la Conservation et l'Amenagement des Forets Naturelles de la Crete Zailre-Nil PMtC - Project Management Committee -rJlite de 'estion de Zone FISCAL YEAR G-ver;rnent - January 1 to December 31  RWANDA FOR OFFICIAL USE ONLY SECOND INTEGRATED FORESTRY PROJECT Credit and Project Sunmmary Borrower: Government of Rwanda Beneficiary: Ministry of Agriculture, Livestock and Forests Amount: SDR 11.0 million (US$14.1 million equivalent) Terms: Standard IDA terms On-lending Terms: Up to 20% of the proceeds of the *. edit would he on-lent to four project revenue-earning entities, namely the CAT, Veterinary pharmacy, Beef fattening facility. and dairy to consolidate investments begun. in the first project; to pasture beneficiaries to complete pasture establishment and herd constitution; and to farmers in Gishwati to develop the degraded parts of the Gis:lwati forest. The funds would be onlent at the IBRD rate for 20 years including five years grace. The beneficiaries of the on-lending will bear the fo .-ign exchange risk. Project Description: The Projecc's ol.jectives are to: (a) protect and conserve two of Rwanda's remaining natural forestc of the Zaire-Nile divide; (b) promote agroforestry as a cost-effective means of inc.reasing fuelwood supplies; (c) consolidate investments made in the first forestry project in plantations and pastures and, (d) continue to reinforce the capacity of the Ministry of Agriculture to plan, supervise and monitor forestry sector programs. The project would assist the Ministry to better integrate project activities into its normal framework; to improve management of the first prcject's investments in pastures and plantations and, where suitable to transfer such management to the private sector. The project would be implemented over a six-year period including a one year baild-up phase and would comprise: (a) protection and conservation of the Nyungwe and Gishwati natural forests through the development of buffer plantations, an ecological itnventory and a natural resources monitoring and .valuaticn program; (b) promotion of farm fotestry and rural afforestation tirroLgh the strengthening of seedling production and distribution, implementation of a rut.l afforestation mssonitoring and evaluation program, and training of higher level foresters and other forestry workers; (c) inte?-ited forestry, agric.,lture and livestock development in Gishwati including consolidation of investments in pas':ures and plantations made under the first project and incre*ased private sector participation in management of the livestock activities; development of an additional 2,000 ha o' protection plantations on denuded forest slopes; sjpport for a land use stud; and for new approaches to land management on degraded forest areas and intensification of extension services around the forest; (d) maintenance of fuelwood and pole short rotation plantations developed In the first project; (e) applied forestry and animal nutritfoni research; and (f) pilot pasture rehabilitation in the Mutara region. Bcneftrs and Risks. The project would provide economy-wide ecological and hydrolog- ical benefits from protection and conservation of the Nyungwe and Gishwati forests. There would be institutional development benefits from Improved ministry lev2l plan- r.ing, monitoring and evaluation of forestry programs. The project would produce incremental fuelwood and industrial wood, meat, dairy products and foodcrops with a vi'ce distribution of benefits to over 75,000 farm families, mnost of them In absolute poverty. The primary risk relates to Governmenti's abilitv to carry out proposed management reforms in Glshwati including a greater role for the private sector. The Government has shown its corinitment by having begun mreasures to implement these reforms. This document has a restricted distribution and mav be used by recipients only in the performance of their official duties Its contents may not otherwise be disclosed without World Bank authorization,  Estimated Project Copts Local Foreign Total --USS$ million__ Nyungwe Natural Forest Protection and 2.1 2.5 4.6 Conservation Agroforestry and Rural Afforestation 0.8 0.8 1.6 Integrated Forestry, Agriculture 6.9 3.6 10.5 and Livestock Development Applied Research 0.1 0.2 0.3 Mutara Pilot Pasture R,ehabilitation 0.1 0.3 0.4 l'otal Baseline Costs 10.0 7.4 17.4 Physical Contingencies 0.4 0.2 0.7 Price Contingencies 1.2 0.8 2.0 TOTAL PROJECI COSTS 1/ 11.6 8.5 20.1 Financ inPlan Government 2/ 6.0 - 6.0 IDA 5.6 8.5 14.1 Totai 11.6 8.5 20 1 1/ Includes direct taxes of about US$1.0 million and PPF expenditutes of US$1.5 million. 2/ Includes the US1.O million in taxes. Estimated Disbursements: (US$million) IDA fiscal year: 1988 1989 1990 1991 1992 1993 -U, ; S$ mlllion----------------- Annual 1.70 1.85 2.6 3.20 3.00 1.75 Cumulative 1.70 3.55 6.15 9.35 12.35 14.10 Rate of Return: Rates of return calculated for four components comprising 33% of project cost range from 16-45%.  -iii - RWANDA SECOND INTEGRATED FORESTRY PROJECT STAFF APPRAISAL REP"RT Table of Contents Page No. Credit and Project Sumsnry .......... ... ........ ... .. - ii Table of Contents ................ ........... ............... iii - vi I. BACKGROUND A. Project Background. ..*. ............... ........ . 1 B. Economic and Agricultural Setting. .2 C. Government's Agricultural Sector Strategy ....... 3 D. IDA's Assistance and Strategy ........ ......... 4 II. FORESTRY SECTOR A. Background and Role in the Economy*.-*. ..- 7 B. Consumption, Production and Marketing of Wood 8 C. Government's Forestry Sector Polic$es 10 D. Sector Organization and Management .. 10 E. Sector Funding...... 0. ..11 F. Main Sectoral Issues. ..................12 III. THE PROJECT A. Rationale ........ ...... ...... ................. ................... 13 B. Suimmary Project De ocriptn ...13 C. Geographical Coverages. .... . ........ , ... 14 D. Detailed Features,.......os ...... ......... . 14 E. Project Costs ...... .......... ....... .... 23 F. Financing.. 23 G. Procurement ........... o0 . . . .. of . ........... . 25 H. Disbursements ............................... . 26 I. Accounts and Finr.cial Management and Audits..... 27 This report is based on the findings of on appraisal mission which visited Rwanda in April/May 1936. The mission comprised of Mesdames N. Okonjo-Iweala, K. McNamara and C. Mukongiliye Messrs. Steengaard, Legrain (IDA); A. Speich, H. Speechly, J. Toft, M. Barnaud and Savary (consultants). A post-appraisal mission comprised of Ms. N. Okonjo-Iweala, Messrs. S. Steengard, X. Legrain, M. Grut, and D. Aw (IDA) and Mr. J. Toft (consultant) visited Rwanda in September/October 1986. Ms. J. Collier-Von Eden and Ms. S. Bazinet assisted with preparation of the report.  - iv - Pate No. IV. PROJECT ORGANIZATION AND MANAGEMENT A. Project Management .............................. 29 B. Annual Work Plan ........ ... .............. 32 C. Annual Review ....... . ............ 33 D. Monitoring and Evaluation ......... .......... 33 E. Project Completion Re p o r t .................... 33 V. PRODUCTION, MARKETING, PRICES AND FINANCIAL ASPECTS A. Production ...................... 000#0*.................... 33 B. Marketing . ......... 3; C. Prices ........................... . ........O$*.... 35 D. Financial Analysis of Revenue Earning Entities ... 37 E. Farm Level Financial Impact ..................... . 37 F. Cost Recovery and Fiscal Impact ......... ......... 39 VI. BENEFITS, JUSTIFICATION AND RISKS A. Benefits and Justification. . 40 B. Economic Analysis.. 42 C. Risks .................43 D. Environme'ntal Impact . . .44 E. Impact on Women. . 45 VII. AGREEMENTS TO BE REACHED AND RECOMMENDATION 46-49 TABLES IN THE MAIN TEXT Table 2.1: Areas of Natural Forest ......................... 8 Table 3.1: Project Cost Summary .. 24 Table 3.2: Financing Plan ....... 0. 25 ........... 25 Table 5.1: Financial and Economic Prices ................... 36 Table 5.2: Indicative Farm Models ........................... 38 Table 6.1: Results of Economic Analysis ..................... 42 Table 6.2: Sensitivity Analysis ........................... 43  -v Pare No. SUPPORTII4G ANNEXES, CHARTS AND MAPSt Annexes: Annex 1 - Implementation Schedule ................ ........... 50 Annex 2, Table 1 - Technical Assistance Requirements 51 Table 2 - Procurement Procedure, Nyungwe Unit**.# 52 Table 3 - Proc'-rement Procedures, DGF... ,, 53 Table 4 - Procurement Procedures, GBK Project Unit ............... ... ... 54 Table 5 - Procurement Procedures, All Units. 55 Table 6 - Proceeds of the IDA Creditd............ Nyungwe Component ............... . 56 Table 7 - Proceeds of the IDA Credit, DGF Component... 57 Table 8 - Proceeds of the IDA Credit, GBK Component ............ .... 58 Table 9 - Schedule of Disburseaents 59 Table 10 - Staffing Plan ...60-63 Annex 3 Natural Forest Protection, Consezration and Management ...... .. ... ...... 64 Annex 4 Agroforestry and Rural Afforestatinan 78 Annex 5 Integrated Forestry, Agriculture and Livestock Development Gishwati. 89 Annex 6 Schedule of Transfers Kigali-Butare Plantations 107 Annex 7, Table I - Summary Accounts Cost Sumary. .110 fable 2 - Summary Accounts By Year .111 Table 3 - Breakdown of Summary Accoutt ts 112 Table 4 - Project Component By Ye a r ......... 113 Annex 8 - Financial Analysis ................. ... ........... 114 Annex 9 - Economic Analysis ................................ 147 Annex 10 - Selected Data and Documents Available in the Project File ............... ... .. 176 CHARTS 1. Organigramme Debut Projet . ............... 177 2. Organigramme Fin Projet ........................ , . 178 3. Organigramme Volet Forets Naturelles. . 179 4. Organigramme Volet Agro-Forestiere et Afforestation Rurales ......B..Ges..on ,.........Ag.o.....oe 180 5. Organigramme GBK Gestion Activites Agro-Sylvo-Pastorale Integres ....... . . .. . . .. . . .. . . .. . . .. . . 181  - vi - Pate No. 6. Organigramme Volet Recherche.............................. 182 7. Organigrasme du Service Foreatier National ............... 183 8. Orgat.igramne Ministre de l'Agriculture, Eievage et des Forets. . ......#...... 184 MAPS IBRD 20054 - Project Prefectures IBRD 20055 - Gishwati subproject IBRD 20056 - Gishwati Forest IBRD 20057 - Nyungwe Forest  RWANDA STAFF APPRAISAL REPORT SECOND INTEGRATED FORESTRY PROJECT I. BACKGROUND A. Project Background 1.01 'he proposed project would be the second in support of integrated forestry developmenz in Rwanda. The objecti es of the first project (Credit 1039 RW) due to close June 30, 1987 4ere to: (a) develop an institutional capacity for policy formulation and implementation in the forestry sector of Rwanda, (b) initiate a reforestation program to provide fuelwood, poles and saw timber for the country and (c) develop and sustain the exi.ting livestock industry in the Gishwati forest area ill western Rwanda for dual purpose meat ar.d milk production. This development was to follow an integrated approach involving conservation of forest resources. 1.02 Implementation of the first project has not been without its problems. Along with support from other donors, principally the S, 'ss, the project has laid the groundwork for forest policy formulation in Rwanda and succeeded in achieving physical targets for plantation and pasture development. It has, however, had less success in attaining some of its .onservation end production objectives. Uncontrolled livestock and human activity continue to be a problem in the undegraded portions of the Gishwati forest. There are alsc problems with growth rates in the Kigali- Butare fuelwood plantations where, as a result of the poor sites, projected wood output will fall below expectations. Managerial and institutional issues have moreover arisen as a result of the inadequate superv4Aion of the project unit by the project management committee. 1.03 At tbC start of the first project, Government's thinking on forestry sector policy issues was at the initial stages. Since then, a numDer of important developments have taken place. With funding from the first proJect and assistance from other donors, the Governmert has developed a forest policy and laws which provide a framework within which specific actions can be implemented. The Natural Forest Conservation and Management Plan (Plan d'Action pour la Conservation et l'Amenagement des Forets Naturelles de la Crete Zaire-Nil, PACZN) adopted in 1984 spells out a policy and management action plan tc protect the rapidly diminishing natural forests of the Zaire-Nile Crest in the west. The Forestry Law ("Loi forestiere") soon to be promulgated, sets out the legal framework for future forest, development including strengthening of the policing powers of the Forestry Department (DGF) and establishment of a Forestry Development fund (Fonds Forestier National, (FFN). The Governmant is also formulating (in t:he context of its 1987-1991 4th national development plan) a forestry su;b-sector plan and investment program which will provide the basis for future donoc support to the sector. Concurrent with these developments in the forestry sector there has also been an increase in farm forestry through spontaneous planting of farm trees. Farm forestry has thus become one of -he fastest growing and most promising avenues for future fuelwood procut() .1 so:  - 2 - 1.04 The proposed project would build on these developments and on the experience gained in the first project. It would: (a) consolidate and maintain investments in plantations and pastures made in the first project; (b) support the development of new activities in forest protection and rtvral afforestation; and (c) continue to reinforce the Ministry of Agriculture by improving its planning, supervision a..d monitoring capacity in particular, of forestry sector ?rograms, and gradually phase out management and implementation of project activities by the existing proiect unit. The main thrust of the project's new activities would be the protection, conservation and management of Rwanda's remaining natural forests. The project would also support the development of farm forestry as a more cost-effective way of increasing fuelwood supplies. Through the proposed project activities, the Government would be assisted in implementing and further developing its forest policy. 1.05 The project was prepared in the course of thrr missions, the last in September 1985 by an FAO/CP team with the input of Rwandese officials. The present report is based on the findings of IDA missions which visited Rwanda in April/May 1986 and September 1986. During appraisal, the scope and orientation of the project w4as substantially changed from the proposals in the preparation report to: (a) strengthen institution building within DGF and the ministry; (b) encourage farm forestry; (c) expand the scope of natural forest protection and management; (d) reorient the approach to integrated forestry and livestock development in Gishwati with a view to correcting problems arising Dut of the first phase; and (e) encourage a more rational approach to the delivery of extension services in the communes around the Gishwati forest. A new component to rehabilitate deteriorating pastures in the Mutara region was added. B. Economic and Agricultural Setting 1.06 RwanJa has a solid record of development achievements in the post- independence period but faces deep-seated problems mostly related to the pressures of population on scarce land resources. Located far from major transportation routes in the very heart of Africa, and with a poor natural resou.ce base, its per capita income is less than $300 a year. Average annual rural family income (1985 prices) is about US$600 or $80 per capita. Agriculture is the backbone of Rwanda's economy, contributing about 46% of GDP at current prices and 83% of the total value of export.s. As much as 95% of the population is in the rural areas and is engaged in smallholder, rainfed agriculture. Agricultural production is directed mainly toward meeting domestic food needs. Of vital importanLe, however, is production of export crops, notably coffee, tea, and cinchona which supply most of Rwanda's foreign exchange and rural cash income. Until recently, growth of agricultural output was relatively strong (5.8% per annum in the period 1974-80) and food production appears to have kept pace with population growth. Between 1980-83, agricultural output growth slowed down to an average annual rate of about 3.5% less than the estimated population growth rate of 3.7%. After the 1984 drought in which Rwanda experienced substantial crop failures, growth of agricultural output appears to have picked up and is now estimated at about 4% per annum. Some food is imported commercially, mainly wheat, rice, oils, salt and sugar. Food aid  - 3 - flows in recent years have been in the order of 10,000 to 15,000 tons of cereals, beans, powdered milk and vegetable oils. Total food imports in 1985 amounted to about US$56 million or 16% of the total value of merchandise imports. 1.07 With its population of 6.0 million or 250 persons per km2 (400 per kmZ of arable land) Rwanda is the most densely settled country in continental Africa. The high population growth rate means that densities are inexorably rising. There is no longer much scope for increasing the area under cultivation. Expan~sion and intensification of cropping without adequate management is posing an increasing threat to soil fertility now regarded as among the most important constraints to increasing agricultural productivity in most areas of Rwanda. A measure of the mounting pressure of people on land is the decline of fallow land: only 12.5% of arable land is in fallow, down from 16% only 10 years ago. Rwanda is overwhelmingly a country of small farmers: over half the one million farm holdings are less than two hectares. The fragmentation of holdings (and the attendant desire for more land) coupled with overgrazing by lives-.ock, have contributed to severe deforestation and some soil erosion. Although the effects of the latter are mitigated by a nation-wide drlve to introduce soil protection measures, deforestation is a source of grave concern as it threatens watersheds, land and soil resources. A high priority must therefore be placed on arresAing deterioration of the natural resource base upon which development will ultimately depend. The Government and the farmers are taking some action to stop soil erosion, and protect natural resources, through planting of trees and other measures. The will exists to do more. This can be harnessed in the short to medium term ty applying solutions that are pretty well proven in the fields of agro-forestry and natural forest protection. Longer term solutions must, however, rely on results emerging from applied agricultural and forestry research even thougi dividends may well not pay off for at least a decade. C. Government's Agricultural Sector Strategy 1.08 The focus of Government's agricultural sector strategy continues to be the increase of farm level production in order to achieve food self- sufficiency and balanced development of the export crop sector. Government's objectives and strategy are spelled out in a recent (May 1986) strategy paper on the reorientation of agricultural projects. The paper outlines the framework for a Food Strategy, the major objective of which is the achievement of food self-sufficiency based on production not only for subsistence but also for the market. Production increases in the food and export crop sectors would come through the intensified use of inputs - fertilizer, selected seeds, mane:e, and careful management of the natural resource base. i.09 Another important objective of the strategy is the need to ensure more coherence among the multiplicity of donor-financed development projects which serve as the main instruments for implementation of Rwanda's agriculture sector programs. The inconsistencies in approach and thc different structures of intervention introduced in the projects are cited as an important reason for their poor performance. Government aims to put greater emphasis on adoption of instituLional structures that are sustainable after the project and on affordability of project investments.  - 4 - 1.10 Gover,ment has had a tradition of relative non-intervention in the food crop sector but has been rather "dirigiste" with regard to the e;port crop sector and to other subsectors such as livestock and dairy development. There are also temptations to intervene more in areas such as marketing and input supply. However, the drive to have affordable and sustainable investments is recognized as ar important check to the degree of Government invovement. 1.11 The Government has made important progress over the last few years in defining a sector strategy. It recognizes that in order to achieve sectoral objectilves, it will have to improve its planning and management capacity; reorient agricultural research to serve the traditional farm system; and strengthen the links between reseaLr'a and extension. It will also have to improve the organization of field extension services; increase the availability of agricultural inputs and facilitate the involvement of the private sector in their supply; strengthen the agricultural marketing system and increase the supply of technical and managerial manpower. Effective actions wculd also have Lo be taken to address issues of land conservation and management, including soil erosion prevention and protection of natural forests which are increasingly being depleted for fuelwood and sawlogs. 1.!2 A policy framework hes beeni developed for the forestry sector, but refinements still have to be made and concrete actions o implernent the policies have to be fully worked out. Past Government eff zts in the forestry sector have focused on the development of state plantations to serve urban energy and industrial wood needs. Although the need still remains to find solutions to urban energy requirements, there is a greater willingness to emphasize development of farm forestry and promotion of private and communal initiatives in rural afforestation. New directions are also now being pursued to protect and conserve the ccuntry's natural forests and to find solutions to the high levels of human and livestock activities in some of these forests. The Government recognizes the important interaction at the farm level of forestry, livestock and cropping activities and the need to develop these in an integrated nanr-!r. D. IDA'S Assistance and Strat!gy 1.13 Since 4.ts start in 1973, IDA lending for Rwanda's agricultural sector has amounted to US$92.4 million for eight operations, of which five are ongoing. Briefly, these operations are: (a) four area development projects In the eastern Savannah zone (US$42.2 million); (b) two area development projects in the Lake Kivu and Zaire-Nile Divide zones (US$36 million); (c) a Cinchona Development Project ($1.8 million); and (d) an Agricultural Research Projec.t, (US$11.5 million'. A US$22 million project to support agricultural institutional development and field level extension services (GitaramlLMinagri Project, Credit 1669 RW) was recently signed. 1.14 IDA (like other donors) has tended in the past to support projects of an "integrated rural development" nature. Completion repozts have been prepared for the first Mutara Agricultural Development Project (Credit 439 RW), the Bugesera-Gisaka-Migongo Pha,? I project (Credit 668 Rw) and the  - 5 - Cinchona Project (Credit 656 RW). Experience from these and other on-going projects highllght a number of issues affecting project performance, namely: (a) poor iderntification and adaptation of appropriate technical packages due to ir.sufticient knowledge of Rwanda's complex farming systems; (b) inadequate mrlonlitorinig of project progress; (c) project complexity and lack of training and experience of Rwandese management and staff; (d) excessive diversity of pLoject institutional and organizational systems mace un-;-anageable by weak agrihultural planning, project preparation, financial curoJ.Lo and weak technical central ministry departmet:ts; and (e) scar:city of technical messages for agriculture improvemtnt at *'he farm level. Other imnportant constraints relate to inadequatc Governru.ucnt upe!t ug budget allocations to agriculture, non- existent ozr scItrs uD,sector. policies and Investment priorities and poorly t rlcc ee' donor uupported ac tivities. "lhe PI:ase ' Ir.te'r 1t- c'_ Ycus tr ran!kd Livestock Pro _ct. 1.15 ;he t Lrst I L CJeCt (C-redit: 1039 RW) had two distinct components: (a) to cdvelop torut,; po,icy and services through the strengthening of 'nst t i. ct ria , l 1 ,y for policy formulation and the initial development of fuelwoo oo plint_i in re; for urban etiergy needs; and (b) to support integrated foLcl-i-y arc iivcstLcs. development in and around the Gishwati natrer3.a Il-.:A: for e' rvo li wentern Rwarda. The project was part of a long- terl!: pr n:l" Wp t:he iorest tCsoUrces of Rwanda for fuelwood, poles and t r. .ientu. An im.portarnt. objective of this project was the protectiol aru4 cOV.servat!on of the Gis}-shwati reserve by limiting 2lvcu',O.. 0r ari ui-Sl1. er;( ' ..':kc:2:At Se t-n .() be causing forest degradation. At tue *'.,e te;.r e t Was: Ca, i;' c,( I ,f; tis ut I lns to nanage forestry proj cats were whi !.w.s no:t yet prepared to embark on rural affore!t.it jerS rneme .n a signlticant scale. In additiorn, approaches to properly ;girg n agr ecult;;re, livestock and forestry activities were not yet cleaJ ',' z i`F.;h,'ht Out.. In rrdur to cope with the institutional problems i t w S (C d.ed e, set u!p a pruect il-e i:montation unit while strengthening lninti.rt "+L' 1;'.pO;at y f- lt I a 'o: copaci fy *n the ministry. 1.1.6 ICunut :;.tn , ther do_rnors the first project has been succe s.' :t . 4 -.g tiSe 6overrfl(erlt to lay the groundwork for forest policy roriwat I-n. Tne pro,ect un't has been effective in achieving physi *atFct-- *D D-i.:nt in and pa5stute establishment and has even exceH cKnd th.-c narie s. niHwever, the quality of work has been inadequate. 'l he pooI S r e or _ct an .'suew.;lwood plartations mean that up to 30% may not be ccmrnc-rr.:; v rcn