Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No: 74600-BD
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED GRANT
IN THE AMOUNT OF US$33.8MILLION
TO THE
PEOPLE’S REPUBLIC OF BANGLADESH
FOR THE
CLIMATE RESILIENT PARTICIPATORY AFFORESTATION AND REFORESTATION
PROJECT
UNDER BANGLADESH CLIMATE CHANGE RESILIENCE FUND (BCCRF)
February 05, 2013
Sustainable Development Department
Environment and Water Resources Unit
South Asia Region
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 EQUIVALENTS
(Exchange Rate Effective {November 11, 2012})
Currency Unit
= Bangladesh Taka (BDT.)
81.2500 BDT = US$1
FISCAL YEAR
July 1 – June 30
ABBREVIATIONS AND ACRONYMS
ADB
ADP
AF
AIGA
AIGG
ARCS
BCCRF
BCCSAP
BDT
BFD
CAS
CBA
CCF
CF
CMO
CMC
CPGs
C&AG
DFO
DPs
EMF
EMP
FAPAD
FAO
FDGs
FM
FMS
FUG
FY
GEF
GIS
GoB
GRM
IBRD
ICDPs
ICR
IDA
IFR
Asian Development Bank
Annual Development Program
Arannayk Foundation
Alternative Income Generation Activities
Alternative Income Generating Groups
Audit Report Compliance System
Bangladesh Climate Change Resilience Fund
Bangladesh Climate Change Strategy and
Action Plan
Bangladesh Currency (Taka)
Bangladesh Forest Department
Country Assistance Strategy
Cost-Benefit Analysis
Chief Conservator of Forests
Conservator of Forests
Community Mobilization Officer
Co Management Committee
Community Patrolling Groups
Comptroller & Auditor General
Divisional Forest Office
Development Partners
Environmental Management Framework
Environmental Management Plan
Foreign Aided Project Audit Directorate
Food and Agriculture Organization
Forest Dependent Groups
Financial Management
Financial Management Specialist
Forest Users’ Group
Fiscal Year
Global Environment Facility
Geographic Information System
Government of Bangladesh
Grievance Redress Mechanism
International Bank of Reconstruction and
Development
Integrated Conservation and Development
Projects
Implementation Completion Report
International Development Association
Interim Financial Report
Regional Vice President:
Country Director:
Sector Director:
Sector Manager:
Task Team Leader:
IP
IPCC
IRR
IURFs
LDCF
MDBs
MoEF
MoF
MTR
M&E
NAPA
NGO
NPV
OM
OP
ORAF
PD
PDO
PIC
PIU
PM
PPMR
PS
PSC
RIMS
RFP
RPF
RS
SA
SOE
SF
SIA
SIMF
TPDP
TSS
UNDP
US$
VCF
Indigenous People
Intergovernmental Panel on Climate Change
Internal Rate of Return
Un-audited Financial Reports
Least Developed Countries Fund
Multilateral Development Banks
Ministry of Environment and Forests
Ministry of Finance
Mid Term Review
Monitoring and Evaluation
National Adaptation Program for Action
Non Government Organization
Net Present Value
Operational Manual
Operational Policy
Operational Risk Assessment Framework
Project Director
Project Development Objectives
Project Implementation Committee
Project Implementation Unit
Project Manager
Procurement Performance Monitoring
Report
Procurement Specialist
Project Steering Committee
Resource Information Management System
Request for Proposal
Resettlement Policy Framework
Remote Sensing
Social Assessment
Statement of Expenditures
Social Forestry
Social Impact Assessment
Social Impact Management Framework
Tribal People’s Development Plan
Targeting and Selection Strategy
United Nations Development Programme
United Sates of America Currency
Village Conservation Forum
Isabel M. Guerrero
Salman Zaheer
John Henry Stein
Herbert Acquay
Shakil Ahmed Ferdausi
PEOPLE’S REPUBLIC OF BANGLADESH
Climate Resilient Participatory Afforestation and Reforestation Project
TABLE OF CONTENTS
Page
I.
STRATEGIC CONTEXT ................................................................................................1
A. Country Context .......................................................................................................... 1
B. Sectoral and Institutional Context ............................................................................... 1
C. Higher Level Objectives to which the Project Contributes ......................................... 4
II.
PROJECT DEVELOPMENT OBJECTIVES ...............................................................5
A. PDO ............................................................................................................................. 5
B. Project Beneficiaries.................................................................................................... 5
C. PDO Level Results Indicators ..................................................................................... 6
III.
PROJECT DESCRIPTION.............................................................................................6
A. Project Components .................................................................................................... 6
B. Project Financing ....................................................................................................... 11
C. Lessons Learned and Reflected in the Project Design .............................................. 12
IV.
IMPLEMENTATION ....................................................................................................14
A. Institutional and Implementation Arrangements ....................................................... 14
B. Results Monitoring and Evaluation ........................................................................... 16
C. Sustainability ............................................................................................................. 17
V.
KEY RISKS AND MITIGATION MEASURES .........................................................18
A. Risk Ratings Summary Table .................................................................................... 18
B. Overall Risk Rating Explanation ............................................................................... 18
VI.
APPRAISAL SUMMARY .............................................................................................19
A. Economic and Financial Analyses ............................................................................ 19
B. Technical ................................................................................................................... 20
C. Financial Management .............................................................................................. 22
D. Procurement............................................................................................................... 23
i
E. Social (including Safeguards) ................................................................................... 23
F. Environment (including Safeguards)......................................................................... 25
Annex 1: Results Framework and Monitoring ........................................................................26
Annex 2: Detailed Project Description .....................................................................................33
Annex 3: Implementation Arrangements.................................................................................44
Annex 4: Operational Risk Assessment Framework (ORAF) ...............................................77
Annex 5: Implementation Support Plan ..................................................................................82
Annex 6: Governance and Accountability Action Plan (GAAP) ...........................................85
Annex 7. Economic and Financial Analyses ............................................................................96
Annex 8. Lessons learned for Alternative Livelihoods to Support Forest Communities
component .................................................................................................................................113
Annex 9. Recommended Plantation Types, Common Species and Rotation Period ..........121
Map
ii
PAD DATA SHEET
Bangladesh
Climate Resilient Participatory Afforestation and Reforestation Project (P127015)
PROJECT APPRAISAL DOCUMENT
.
SOUTH ASIA
SASDI
Basic Information
Date:
05-Feb 2013
Sectors:
Forestry (100%)
Country Director:
Salman Zaheer
Themes:
Climate change (65%), Biodiversity (20%),
Environmental policies and institutions (15%)
Sector Manager/Director: Herbert Acquay/John Henry
Stein
Project ID:
P127015
EA Category: B - Partial Assessment
Lending Instrument:
Specific Investment Loan
Team Leader(s):
Shakil Ahmed Ferdausi
Joint IFC: No
.
Borrower: Economic Relations Division, Ministry of Finance
Responsible Agency: Bangladesh Forest Department
Contact:
Mr. Md. Yunus Ali
Title:
Chief Conservator of Forests
Email:
ccf-fd@bforest.gov.bd
Mr. Farid Uddin Ahmed
Title:
Executive Director
+880-2-9873275
Email:
info@arannayk.org
Telephone No.: (880-2) 818-1737
Responsible Agency: Arannayk Foundation (AF)
Contact:
Telephone No.:
.
Project Implementation Period:
Start Date: 15-Mar-2013
Expected Effectiveness Date:
15-Mar-2013
Expected Closing Date:
31-Dec-2016
End Date: 31-Dec-2016
.
Project Financing Data(US$M)
[ ]
Loan
[X]
Grant
[ ]
Credit
[ ]
Guarantee
[ ]
Other
For Loans/Credits/Others
Total Project Cost (US$M):
35.00
Total Bank Financing (US$M):
0.00
.
Financing Source
Amount(US$M)
Borrower
1.20
BCCRF (Bangladesh MDTF for Climate Change)
33.80
Total
35.00
iii
.
Expected Disbursements (in USD Million)
Fiscal Year FY13
FY14
FY15
FY16
FY17
Annual
0.9
8.5
12.45
9.4
2.55
Cumulative 0.9
9.4
21.85
31.25
33.8
.
Project Development Objective(s)
The project development objective is to reduce forest degradation and increase forest coverage through participatory
planning/monitoring and to contribute in building the long-term resilience of selected communities in coastal and hilly areas to
climate change.
.
Components
Component Name
Cost (USD Millions)
Afforestation and Reforestation Program
22.0
Alternative Livelihoods to Support Forest Communities
4.00
Capacity Development for Forest Resource Planning and Management
5.50
Project Management
3.50
.
Compliance
Policy
Does the project depart from the CAS in content or in other significant respects?
Yes [ ]
No [ X ]
Does the project require any waivers of Bank policies?
Yes [ ]
No [ X ]
Have these been approved by Bank management?
Yes [ ]
No [ X ]
Is approval for any policy waiver sought from the Board
Yes [ ]
No [ X ]
Does the project meet the Regional criteria for readiness for implementation?
Yes [X]
No [ ]
.
Safeguard Policies Triggered by the Project
Yes
Environmental Assessment OP/BP 4.01
X
Natural Habitats OP/BP 4.04
X
Forests OP/BP 4.36
X
No
Pest Management OP 4.09
X
Physical Cultural Resources OP/BP 4.11
X
Indigenous Peoples OP/BP 4.10
X
Involuntary Resettlement OP/BP 4.12
X
Safety of Dams OP/BP 4.37
X
Projects on International Waterways OP/BP 7.50
X
Projects in Disputed Areas OP/BP 7.60
X
.
Legal Covenants
Name
Recurrent
Due Date
Subsidiary Agreement
Before
Effectiveness
iv
Frequency
Description of Covenant
The Recipient shall make part of the proceeds of the Grant available to the Project Implementing Entity under a subsidiary
agreement between the Recipient and the Project Implementing Entity under terms and conditions approved by the World Bank .
Name
Recurrent
Due Date
Project Steering Committee
Frequency
Effective
Date
Description of Covenant
The Recipient shall establish and thereafter maintain, throughout the period of Project implementation, a Project Steering
Committee responsible for providing advice and guidance on Project implementation and for providing policy guidance .
Name
Recurrent
Due Date
Project Implementation
Committee
Frequency
Effective
Date
Description of Covenant
The Recipient shall establish and thereafter maintain, throughout the period of Project implementation, a Project Implementation
Committee at BFD.
Name
Recurrent
Due Date
Project Implementation Unit
Frequency
Effective
Date
Description of Covenant
The Recipient shall establish and thereafter maintain, throughout the period of Project implementation, a Project Implementation
Unit at BFD.
Name
Recurrent
Due Date
Procurement Officer at BFD
Frequency
Effective
Date
Description of Covenant
The Recipient shall assign a procurement officer at BFD as procurement focal point.
Name
Recurrent
Due Date
Procurement Consultant
Frequency
March 15,
2013
Description of Covenant
The Recipient shall engage the services of a procurement consultant with qualifications and terms of reference satisfactory to the
World Bank.
Name
Recurrent
Reports on Procurement
Performance
Due Date
Frequency
Semi-Annual
X
Description of Covenant
The Recipient shall submit semi-annual reports on the Procurement Performance Monitoring Report in a format acceptable to the
World Bank.
Name
Recurrent
Due Date
Project Office
Frequency
Effective
Date
Description of Covenant
The Project Implementing Entity shall establish and thereafter maintain, throughout the period of Project implementation, a
Project office responsible for the day-to-day implementation of Part 2 of the Project.
v
Name
Recurrent
Due Date
Implementation Manual
Frequency
Effective Date
Description of Covenant
The Recipient and Project Implementing Entity shall prepare and adopt an Implementation Manual, satisfactory to the World
Bank, for the implementation of activities under the Project.
Name
Recurrent
Sub-grant Agreements
Due Date
Frequency
X
Description of Covenant
The Project Implementing Entity shall make Sub-grant(s) to Forest Dependent Group(s) under a Sub-grant Agreement on terms
and conditions approved by the World Bank.
Name
Recurrent
Due Date
Procurement Focal Point
Frequency
Effective Date
Description of Covenant
The Project Implementing Entity shall assign a procurement focal point with qualifications and terms of reference satisfactory to
the World Bank.
Name
Recurrent
Due Date
Grievance Redress Mechanism
Frequency
March 31,
2013
Description of Covenant
The Recipient shall establish and thereafter maintain, throughout the period of Project implementation, a grievance redress
mechanism as required by and in accordance with the Social Management Framework.
Name
Recurrent
Due Date
Retroactive Financing
Frequency
N/A
Description of Covenant
No withdrawal shall be made for payments made prior to the date of the Grant Agreement except that withdrawals up to an
aggregate amount not to exceed US$200,000 equivalent may be made for payments made prior to this date but on or after August
31, 2012 for Eligible Expenditures under Category (1)(a).
vi
.
Team Composition
Bank Staff
Name
Title
Specialization
Unit
Shakil Ahmed Ferdausi
Senior Environment Specialist
Team Lead
SASDI
Junxue Chu
Senior Finance Officer
Disbursement
CTRLN
Cecilia Belita
Senior Program Assistant
Operational Support
SASSD
Suraiya Zannath
Senior Financial Management
Specialist
Financial Management
SARFM
Ranjan Samantaray
Senior Natural Resources
Management Specialist
Natural Resources Mgmt.
SASDA
Arvind Prasad Mantha
Financial Management Analyst
Financial Management
SARFM
Anna C. O'Donnell
Social Development Specialist
Social Development &
Documentation
SASDS
Marghoob Bin Hussein
Senior Procurement Specialist
Procurement
SARPS
Klas Sander
Senior Natural Resource
Economist
Forest Economics
SASDI
Dora Nsuwa Cudjoe
Environmental Specialist
Forestry
SASDI
Jose Ramon R. Pascual IV
Counsel
Counsel
LEGES
Sabah Moyeen
Social Development Specialist
Social Safeguard
SASDS
Janet Bably Halder
Program Assistant
Program Support
SASDO
Marie Florence Elvie
Program Assistant
Program Support
SASDO
Syed Khaled Ahsan
Public Sector Specialist
Governance
SASGP
Nadia Sharmin
Environment Specialist
Environmental Safeguard
SASDI/SASDC
Ishtiak Siddique
Procurement Specialist
Procurement
SARPS
Non Bank Staff
Name
Title
Office Phone
City
Prof. N H Ravindranath
Consultant – Climate Change,
Forest Resource Planning and
Capacity Development
+91-80-23341838
Bangalore
James Carle
Consultant – Silvi-culture &
Forestry Inventory
+64-7-5749446
Mount Maunganui, Bay
of Plenty
Teen Kari Barua
Consultant- Social Safeguard
+880-1758-250015
Dhaka
Asyl Undeland
Consultant- Community
Development and Livelihoods
Dhaka/Colombo
Lelia Croitoru
Consultant – Economist
+1- 202-458-8455
Washington D.C.
Aminur Rahman Chowdhury
Consultant - Financial
Management
+880-2-8159001/Ext. 4320
Dhaka
Md. Bazlul Kadir
Consultant – Procurement
+880-2-8159001/Ext. 4329
Dhaka
Junaid Kabir Choudhury
Consultant – Forestry
+880-1711-270739
Dhaka
.
Locations
Country
Bangladesh
First Administrative
Division
Location
Chittagong & Borishal Cox’s Bazar, Chittagong, Noakhali, Laxmipur,
Feni, Barisal, Patuakhali, Barguna and Bhola
vii
Planned
X
Actual
Comments
I.
STRATEGIC CONTEXT
A. Country Context
1.
Bangladesh is a low-lying, riparian country with highly fertile alluvial floodplains that
drain into the Bay of Bengal through a constantly changing network of estuaries, tidal creeks
and an active deltaic coastline. The lower part of the country adjoining the Bay of Bengal is
known as the “coastal zone” and characterized by a delicately balanced natural morphology of
an evolving delta. Its west zone includes the ecologically important Sundarbans mangrove
forest area.
2.
Tropical cyclones, storms and surges are major features of the coastal zone’s climate.
These storms have a significant negative impact on the area and its growing population of about
16 million people. As a result of its historically large population and geography, the coastal
area has suffered significantly from cyclone landfalls. Records of cyclones and surges go back
more than four hundred years, and show that in the last two hundred years, the coastal zone has
been affected by at least seventy severe cyclones, of which forty have occurred since 1948. The
most deadly ones occurred in 1970 and 1991, causing over 350,000 and 140,000 fatalities,
respectively.1 Available climate change models suggest that the intensity of super cyclonic
events will increase over the coming decades, while declining forest cover will offer less
protection against winds and storm surges. A thick forest belt along the coastline has a high
potential as a buffer zone to reduce future climate change-induced threats, particularly the
impacts of cyclones and storm surges. Forest ecosystems and biodiversity are also vulnerable to
current climate risks and future climate change.
3.
Bangladesh is among the most densely-populated countries in the world, already
vulnerable to natural disasters and now becoming highly-affected by climate change. In
addition to natural disasters and climate change impacts, the pressure on natural resources in
Bangladesh is very high. Two-thirds of the land area is under crops, the highest proportion in
South Asia, and cropping intensity is also the highest in the region, having increased by 25%
over the last thirty years. Available evidence shows an imbalanced use of agricultural inputs
and nutrient depletion. The share of land under forest cover is the second lowest in the region,
with natural forest cover accounting for only half of that in the 1960’s. Moreover, degraded
forests and ecosystems are more vulnerable to climate change. In this context, participatory
afforestation and reforestation in coastal and hilly areas will be a key contributor in meeting the
challenge of climate change vulnerability and depleting forest resources.
B. Sectoral and Institutional Context
Forestry Sector in Bangladesh
4.
Forests are very important renewable resources in Bangladesh and play a crucial role for
the livelihoods of communities, providing them with fuel wood for cooking, timber and pulp for
construction and industrial purposes, non-timber products, including fibers, fruits, nuts, honey,
1
Riaz, Ali, 2011. “Bangladesh” in Climate Change and National Security: A Country-Level Analysis. Ed. Daniel Moran. Washington, DC:
Georgetown University Press. 103
1
as well as various compounding materials for gums, incenses, latexes, oils, resins, shellacs and
tanning. It also controls or reduces the intensity of the cyclones and tidal surges in the coastal
areas. It is estimated that at least 400,000 people are involved in the trade of forest products.
Non-timber forest products contribute significantly to supporting the economic activities of at
least 600,000 people.2 In addition, forests provide valuable ecosystem services: they maintain
local climate and strongly influence global fluxes of oxygen and carbon dioxide; protect top soil
and hold important nutrients; and act as a stabilizing force for top soil to prevent erosion in hilly
areas. Forests also harbor tremendous biological diversity of flora and fauna, including unique
species, such as the Royal Bengal Tiger in Sundarbans.
5.
The past several centuries witnessed significant deforestation in Bangladesh, largely
driven by illegal and unsustainable logging and harvesting, slash and burn agriculture,
conversion of forested areas into non-forest land, including settlements, pastures, croplands,
wastelands, or land used for recreational or industrial purposes.3 As a result, it is estimated that
Bangladesh’s forest cover has been declining by 2.1 percent annually in the last three decades
alone4. Today, forest cover is estimated to be around 2.56 million hectares (m ha),5 or 17.8
percent of Bangladesh’s total land area.
6.
Global climate change models show that declining and deteriorating forest cover
significantly reduces the opportunity to mitigate climate change. Thus, if total forest cover
continues to decline in Bangladesh, the potential for forests’ carbon sequestration will be
reduced in coming years. Further, climate change could adversely affect forest ecosystems,
biodiversity and even mitigation potential of forests.
7.
Since 1960, the Bangladesh Forest Department (BFD) has implemented afforestation
programs on the coastal embankments, newly accreted coastal char lands and offshore islands,
along the 710 kilometer (km) of coastline. To date, planted mangrove forests cover more than
0.17 m ha of embankments, chars and islands and represent a unique greenbelt along the
coastline.6 Afforestation of foreshore and of tidal areas outside embankments proved to be a
cost-effective method to dissipate wave energy and reduce embankment flooding during storm
surges. For example, Cyclone Sidr in 2007 and Cyclone Aila in 2009 caused less damage to
property and fewer life losses in Chokoria and surrounding areas compared to the devastating
results of the cyclone in 1991. This was due to afforestation on the foreshore of embankments,
which substantially broke the storm surge velocity.7
8.
The Government of Bangladesh (GoB) has recently approved an afforestation project
to establish plantations of mangrove (12,355 ha), non-mangrove (400 ha) and strip (678 km) in
2
Junaid K. Choudhury and Md. Abdullah Abraham Hossain. Bangladesh Forestry Outlook Study. FAO, 2011
Kricher, J. A Neotropical Companion. Princeton University Press, 1997.
4
Global Forest Resources Assessment 2010 of FAO reports annual change in extent of forest in forest department lands is -0.18% during 19902005.
5
This includes all classified (1.49 m ha) and unclassified (0.73 m ha) state owned forestland, village forest lands or homestead forestry (0.27 m
ha), tea estates and rubber gardens (0.07 m ha). The classified forest includes hill forests (43.8%), natural mangrove forests (39.2%), mangrove
plantations (9.2%) and sal forests (7.8%). The unclassified forest mainly concentrates in the Chittagong Hill Tracts, and cover about 29% of the
country’s total forest land. (An Overview of Social Forestry in Bangladesh, Bangladesh Forests Department and University of Chittagong,
2004).
6
The species planted under the afforestation programs include Sundri (Heritieraformes), Gewa (Excoecariaagallocha), Keora
(Sonneratiaapetala) and Passur (Xylocarpusmekongensis).
7
Cyclone Sidr in Bangladesh: Damage, Loss and Needs Assessment for Disaster Recovery and Reconstruction, Government of the People’s
Republic of Bangladesh 2008.
3
2
coastal areas. UNDP is also supporting the Community-Based Adaptation to Climate Change
through Coastal Afforestation in Bangladesh as a follow-up of the National Adaptation Program
for Action (NAPA). It may be noted that the government plans establishing 500 meter width
mangrove afforestation as a cost effective method to protect embankments in front of sea-facing
polders. Currently, approximately 60 km of the total 957 km of embankments along sea facing
polders are protected by mangrove forests. These include some forest belts that are degraded.8
This indicates the need of afforestation program for the coastal areas of Bangladesh.
9.
While the Government is planning to increase the afforested and reforested areas, the
major challenge remains in ensuring proper management and monitoring of existing forest
resources. The improvement of existing forest resources management requires significant
capacity building and sector reform. The specific sector reform activities in forestry include
analytical inputs such as revise of forestry sector plan, establish forestry inventory and
monitoring, ensure local communities participation and institutional strengthening for better
planning and management. These activities are critical because most reforms are well-designed
but proven to be difficult to implement in Bangladesh. Reforms without sector investment also
do not normally get adequate attention in the government system. If investments are not
continued for afforestation and reforestation, Bangladesh may not retain the existing deforested
land for future plantation. Delay in afforestation and reforestation will increase the climate
vulnerability and further reduce the potential for carbon sequestration. As such, afforesting and
reforesting accompanied by improved forest management and participation of forest dependent
communities is critical for addressing the challenges of vulnerability to climate change in
Bangladesh and also preparing the BFD to mainstream climate change in planning and
management of future forestry investments.
Institutional Context
10.
Forest legislation in Bangladesh dates back to 1865, when the first Indian Forest Act
was enacted by the British Raj. It provided for protection of tree, prohibition of cultivation, and
grazing in forest areas. A comprehensive Indian Forest Act was formulated in 1927. It aimed
at progressive commercialization of forest use for revenue maximization and expansion of
agricultural land at the expense of forests for commercial farming, ignoring traditional rights of
local communities over forest resources.9 Following Bangladesh’s independence in 1971, an
amendment of the Forest Act of 1927 was drafted in 1987 and approved in 1989. The Forest
Act was further amended in 2000 and some major changes have been brought in the Act. In
addition, Bangladesh adopted the first National Forest Policy in 1979 with the objective of
providing greater protection to forests, and placing more emphasis on conservation of the
country’s forests, whilst developing its rural and industrial economies. However, this policy had
largely remained unenforced, resulting in little changes from the traditional colonial-industrial
approach.
11.
In 1994, BFD under the Ministry of Environment and Forests (MoEF) introduced a new
policy that represented a marked shift in the approach to forest management. Its stated
objectives are to contribute to sustainable development and poverty alleviation through people’s
8
Economics of Adaptation to Climate Change, Bangladesh Country Study. The World Bank Group 2010.
Forests
and
Forestry”
in
Bangladpedia,
The
Encyclopedia
of
Bangladesh
(accessed
http://www.banglapedia.org/httpdocs/HT/F_0158.HTM)
9
3
April
28,
2012
at
participation in forest protection and management, and support for forestry development from a
broader sector of society. Social Forestry (SF), a unique benefit sharing mechanism for the
community was introduced to share forest based resources (for both non timber forest products
and major forest products) through Forest (Amendment) Act 2000 and the Social Forestry Rules
(approved in 2004 and amended in 2010 and 2011). In addition to the income and employment
generation, SF introduced temporary community rights which are essential for sustaining local
community interest to protect the forest and to optimize the multiple use values as standing
forests rather than clearing it for other land uses. However, existing guiding principles and
policies on forest management and overall forest sector planning are not in harmony with new
incentive mechanisms that are being adopted in social forestry around the world for securing
local community participation in sustainable forest management.
12.
In the broader context, forest management in Bangladesh has lacked a consistent plan or
framework demonstrated by weak adoption of Forestry Master Plan and subsequent Forest
Management Plans. For example, the current Forestry Sector Master Plan for the period 19952015 has not gained substantive traction as a guidance tool for managing the forest sector. The
Master Plan which was to provide the road map/framework for optimizing the forestry sector’s
contribution to stabilize environmental conditions and assist economic and social development
has not been reviewed or updated routinely to reflect the new and emerging dimensions of
forest management. As a result, the Plan does not cover new and changing paradigms for social
and participatory forestry, climate change impacts, water resource management, biodiversity
and wildlife conservation, institutional and capacity needs, new financing for forest
management such as carbon financing, REDD and REDD+, etc. Also the absence of a
systematic and routine inventory and monitoring of forest resources weakens the baselines data
for proper forest sector planning. Data when exist, are often scanty, outdated or unreliable10.
Forest inventory and assessments have been undertaken on an ad hoc basis with no formal and
regular resource monitoring and assessment capability within the Forest Department.11 Existing
data on forest growth rate, forest area, rate of forest loss, forest density are inconsistent or have
significant margins of error. Hence obtaining reliable information on the country’s progress
with slowing deforestation and forest degradation is severely impaired.
13.
Considering that coastal and hilly areas are ecologically sensitive and extremely
vulnerable with climate change already manifesting, adhering to a structured approach to
development planning and disaster management is essential. Uncoordinated and disparate
development interventions for afforestation could potentially lead to net degradation of coastal
natural resources with the risk of excluding poor and vulnerable sections of local communities’
from accessing natural resources to support their livelihoods.12
C. Higher Level Objectives to which the Project Contributes
14.
The project is aligned with the Bangladesh Sixth Five Year Plan (FY2011-FY2015) with
the specific tasks of conducting climate resilient afforestation and reforestation of hill forest
10
Forest data sources are disparate with varying levels of reliability. Systematizing forest data will help solve the problem with stove piping.
For example, a detailed assessment of coastal forests was carried out during 1984-85 with no follow-up resource assessment and monitoring.
The Food and Agriculture Organization (FAO) supported another assessment of the national forest and tree resources during 2005-2007 by
using a sampling method and focusing mainly on village forestry.
12
Especially with integrating fisheries and forest management
11
4
land, coastal areas and plain land forest and creating the Coastal Green Belt and enhancing
access to input materials, including seeds and seedlings to prevent the extent of damage by
cyclones and tidal surges. In addition, the project supports the Bangladesh Climate Change
Strategy and Action Plan (BCCSAP) of 2009, which integrates climate constraints and
opportunities for economic and social development of the country and based on six pillars.13
15.
The proposed project will be implemented with grant funding from the Bangladesh
Climate Change Resilience Fund (BCCRF), which was established in 2010 to implement
programs in line with the Bangladesh Climate Change Strategy and Action Plan (BCCSAP).
16.
The project is also in line with the second pillar of the World Bank’s Country Assistance
Strategy 2011-2014 (CAS)14: Reduce Environmental Degradation and Vulnerability to Climate
Change and Natural Disasters.
II.
PROJECT DEVELOPMENT OBJECTIVES
A. PDO
17.
The project development objective is to reduce forest degradation and increase forest
coverage through participatory planning/monitoring and to contribute in building the long-term
resilience of selected communities in coastal and hilly areas to climate change.
18.
The project development objective will be achieved by: (i) establishing newly afforested
and reforested areas using climate resilient species to work as windbreak against cyclones; (ii)
strengthening and diversifying alternative livelihoods of forest-dependent communities; and (iii)
improving the institutional capacity of the forest department to sustainably manage forest
resources in the face of the climate change.
B. Project Beneficiaries
19.
The primary beneficiaries of the project are the communities living close to the target
areas, as the afforestation and reforestation will work in the long-run as the natural green belt
(wind breaker) against cyclones and contribute in stabilizing denuded land. Participating
communities will be selected based on clear criteria, such as proximity to areas to be afforested
and reforested, poverty level and degree of impact from climate changes. The project will
directly support the communities by creating around 3.18 million work days in the
afforestation/reforestation program and rehabilitation/reconstruction of office infrastructure.
Around 6,000 poor and forest dependent households in 200 communities will participate in the
alternative livelihoods support program to reduce their dependence on forest resources. These
households will be identified on the basis of participatory wealth ranking and their dependence
on forest resources. Women headed households and other vulnerable groups will be given
priority. The communities close to buffer zone and strip plantation will benefit through their
direct participation in the social forestry program. Around 15,000 forest dependent people will
13
The six pillars: (i) Food security, social protection and health; (ii) Comprehensive disaster management; (iii) Infrastructure development; (iv)
Research and knowledge management; (v) Mitigation and low-carbon development; and (vi) Capacity building and institutional development.
The project address most pillars of the project.
14
Report No. 54615-BD; Bank Board Date 8 July, 2010
5
receive training on participatory forest management, climate change risks and potential benefits,
basic entrepreneurial and business management skills. Finally, the project will develop the
capacity of BFD for better planning and managing the forest resources and 397 staff will
receive direct capacity building support.
C. PDO Level Results Indicators
20.
The following outcome indicators are proposed. The indicators marked (*) are core
sector indicators. The results framework is in Annex 1.
a. Area restored or re/afforested (ha) (*);
b. Forest users trained (#) (*);
c. Increased household income of beneficiaries participating in alternative incomegenerating activities;
d. Reforms in forest policy, legislation or other regulations supported (Yes/No) (*);
e. Government institutions provided with capacity building support to improve
management of forest resources. (#) (*); and
f. Direct project beneficiaries (number), of which female (percentage) (*).
III. PROJECT DESCRIPTION
A. Project Components
21.
The project will focus on enhancing resilience of forest ecosystem and communities in
nine coastal and hilly districts.15 The project will have four components i) afforestation and
reforestation program; (ii) alternative livelihoods to support forest communities; (iii) capacity
development for forest resource planning and management; and (iv) project management. The
project components are designed to complement and support each other.
Component 1: Afforestation and Reforestation Program (US$22.0 million):
22.
The objective of this component is to increase the afforested/reforested areas through
participatory forestry and co-management approach in the degraded forestland, marginal, fallow
and newly accreted land in coastal and hilly areas. In achieving the target of participatory
afforestation and reforestation, the component will also support the rehabilitation/
reconstruction of the existing field offices of the Bangladesh Forest Department (BFD).
(i) Participatory Afforestation and Reforestation(approximately US$19.0 million)
23.
This subcomponent will contribute to afforestation and reforestation of total 17,000 ha
land and 1,672 km roadside plantation and include two types of forestry technologies (i)
15
In coastal region, target geographic area will cover nine coastal districts out of the nineteen coastal districts of Bangladesh. These coastal
districts are Cox’s Bazar, Chittagong, Noakhali, Laxmipur, Feni, Barisal, Patuakhali, Barguna and Bhola. In the hilly area, the project will target
the core and buffer zones of the Reserved Forest Land of Chittagong District and Cox’s Bazar District. The BFD administrative divisions are
different from the administrative districts and the above districts are divided in ten Divisional Forest Offices.
6
treatment and reclamation of coastal mangrove land, and (ii) treatment of the undulating terrain
within 20 km radius of coastal zone. Both types of land are affected by frequent cyclones. The
proposed afforestation/reforestation is not a conventional forestry plantation work – rather an
initiative with a clear climate change related productive purpose. The project will plant around
7,000 ha as part of stabilizing the newly accreted land (a type of delta formation), which are
subject to increasing incidence of cyclone and also extremely critical for ensuring a sustainable
mangrove succession process. This will subsequently reduce the impact of the cyclones. The
remaining around 10,000 ha afforestation and reforestation are selected for two districts that fall
between 15 and 20 km of coastline and are frequently affected by cyclones. The afforestation
and reforestation will provide livelihood options for local communities, which will help to
restore degraded natural forests and increase their resilience to climate change. The project will
promote locally proven nursery and plantation techniques with international best practices for
ensuring quality planting stock and successful plantation establishment. For nursery techniques,
the project has proposed specific “Sonneratia Appetala” practice, which is quite common in
mangrove forest, in both India and Bangladesh proven to help in stabilizing Char mangrove
lands. A nursery and plantation manual will guide the overall afforestation and reforestation
program. Special attention will be provided in careful selection of species to enhance resilience.
24.
The afforestation and reforestation will be undertaken on available lands that are not yet
covered by other planned and on-going projects of BFD. The lands are already identified and
available to BFD. This component will support nursery raising, tree planting, 2 years of
maintenance, beneficiaries’ selection, and monitoring and evaluation of the plantation program.
25.
Community engagement in the core and buffer forests in the hilly areas is critical to the
sustainability of the program. The project will engage local communities in afforestation and
reforestation activities throughout the project cycle. BFD will prepare a list of initial
participants (preferably with voter ID number) who are willing to work as laborer in plantation
program on daily wage basis. This list will be prepared through participatory process and each
participant will have a code number, which will be used as a reference number for payment.
The project will also pilot an open, inclusive and transparent process of participant selection of
social forestry program. Instead of selecting at the Upazila Office, the participants will be
selected consultative process with engagement of local governments and community institutions
in the identification, selection and affirmation processes at Union level. The criteria for the
participant selection are defined in the social forestry rules 2004 (amended in 2010 and 2011).16
These participants in a group will be recipients of the direct benefit of final harvest and will
enter into an agreement with BFD for maintaining the afforested/reforested areas.
(ii) Rehabilitation/Reconstruction of Forest Department Field Infrastructure
(US$3 million)
26.
The objective of the subcomponent is to rehabilitate and/or reconstruct the existing field
level offices in the project area to ensure proper operation of BFD. The subcomponent will
follow the design and construction practices and that have no or little residual impacts on the
16
(i) Landless, including those who may only have homestead land (vita) or who own less than 0.2 ha (50 decimals) of land, other than the
homestead land; (ii) destitute women (widows, deserted by husband and the like, who are living in poverty); (iii) socially backward/
disadvantaged in terms of socioeconomic condition, etc.; (iv) poor households belonging to the small ethnic groups; (v) poor forest villagers,
who have been living within the forests and deforested lands; and (vi) Insolvent freedom fighters, or their insolvent heirs.
7
biological, physical and natural environment that could potentially support forest biodiversity
conservation by (i) minimizing and mitigating adverse impacts of infrastructure through
appropriate site selection and construction methods; and (ii) remediating and compensating for
any residual damage to have a net positive impact. The design options will consider solar
power system and rainwater harvesting. 43 field offices will be rehabilitated and/or
reconstructed under this component. It is anticipated that the civil works will generate local
employment of about 0.18 million work days.
Component 2: Alternative Livelihoods to Support Forest Communities (approximately
US$4.0 million)
27.
The objective of this component is to improve and diversify non forest-based livelihood
opportunities of poor forest dependent households in selected forest communities. Scientists
have projected that the frequency of climate change event in Bangladesh is likely to impact all
natural resources and food security systems in the coming decades. There is realization at the
national level on the need for increasing the climate resilience efforts at the community level
particularly in degraded forest areas. The livelihood interventions under this project have been
designed as part of the resilience strategy at the community level. 200 community based groups
will be formed in project areas to demonstrate alternative livelihoods options that not only
conserve the newly planted areas but also help demonstrate reducing the dependency on forest
resources. Piloting such resilience approaches in project areas is critical to mitigate climate
change in a cost-effective way while providing multiple socio-economic and environmental cobenefits.
28.
The success of such resilience approach is mainly determined based on the type of
catalytic organization involved in community mobilization and institution building. Arannayk
Foundation (AF)17 will act as the key catalytic organization to provide such support to the
project since it has proven experience with the improvement of livelihoods of the forest
communities.
29.
Third party monitoring and evaluation of AF’s work conducted in 2011 showed a
significant reduction of harvesting of forest resources among projects’ beneficiaries, with a 70%
reduction in logging and a 50-60% reduction in collection of fuel wood, 50-70% collection of
bamboo and canes, and up to 90% reduction of Jhum cultivation. Indigenous communities
participating in the projects almost fully stopped slash and burn practices. Data also shows
reduction of harvesting forest resources by 25% in participating communities in general.
Overall dependency on forest resources of poor households participating in their livelihood
programs has been reduced by three times. This livelihood initiative reduces pressure on
natural forests that can strengthen their resilience to climate change.
17
AF (also known as the Bangladesh Tropical Forest Conservation Foundation) is a not-for-profit making company (limited by guarantee and
not having a share capital). It was established in 2003 by the joint initiative of the Governments of the People's Republic of Bangladesh and the
United States of America based on the provisions of the US Tropical Forest Act of 1998, which seeks to contribute to the conservation of
biodiversity assets of tropical forests. AF’s mandate is to promote conservation and restoration of tropical forests and forest biodiversity
through promoting alternative income-generating activities (AIGAs). It has Board of Directors with representatives of civil society, and of
Bangladesh and US Governments. Its Secretariat is comprised of eight people, including four technical experts. It has started grant giving
activities in 2006 and by January 2012 it awarded more than 60 grants to organizations (i.e. NGOs, Universities, local government agencies) to
implement field-based projects in or around forests and protected areas. The average grant size provided to partner NGOs is around
US$100,000, with some grants higher than US$500,000.
8
30.
The design of the component builds on the proven approach of AF to improve
alternative livelihoods in forest communities. This approach is further supplemented by
additional mechanisms and arrangements to enhance sustainability of project results in
decreasing the pressure on forest resources and improving alternative livelihoods. These
changes include better targeting and selection of communities, a more inclusive selection
process of beneficiaries, and strengthening of livelihood activities by proactively channeling
them towards value-added economic activities with higher returns than from forest based
activities.
31.
This component will target 6,000 households comprising no less than 25,000 people in
200 forest communities in 9 project districts with a clear and sound selection method. In the
first year, funds will be channeled to promote small-scale AIGAs at the household level (e.g.
goat and poultry rearing, vegetable cultivation, small scale trade). In the second year, the
project will identify the activities which have potential for being expanded at the community
level (e.g. establishing cooperatives for improving marketing channels for local products,
community based eco-tourism, making energy efficient cooking stoves, and agricultural firms).
The component will also improve linkages with BFD through mobilizing the targeted
communities into Forest Dependent Groups (FDGs). These FDGs will benefit from AIGA and
will also participate in social forestry and afforestation works. These groups are expected to
work closely with BFD and play an important role in protecting forest resources.
32.
The component will finance i) development of major guidelines and information
materials, selection of communities and beneficiaries, developing work plans and budgets; ii)
social mobilization, FDG formation, organizational development and capacity building at the
community and Union Parishad level, formulation of livelihood plans and establishing mutual
rotating and saving funds; iii) livelihood capacity building and implementation of livelihood
activities; iv) identification of potential economic activities for scaling up and value adding,
support to value adding activities; v) alternative income generating activities that diversify
livelihoods and reduce exposure to climate risks; and vi) component management, monitoring
and evaluation, and reporting.
Component 3: Capacity Development for Forest Resource Planning and Management
(US$5.5 million)
33.
The objective of the component is to improve the technical knowledge base on forest
resource assessment, program monitoring and long-term planning for the sustainable
development of the forest sector. This component aims to improve forest management practices
through three specific interventions: (i) improving the current management practices backed by
technological interventions; (ii) building the capacity of the department not only by deploying
appropriate manpower and training plans, but also by proper resource planning, resource
management and human resource (HR) assessment. Such capacity development plan would
also include specific requirements keeping in mind the climate variables evident in Bangladesh
for both mitigation and adaptation; and (iii) reviewing and revising the existing forest master
plan with evolving trend in forestry practices, socioeconomic, livelihood and climate resilience
attributes, increasing land use change pressures and new policies/strategies. This component
would ensure that subsequent forestry subsectors plans can be realistic and within the available
9
budget envelop and potential additional financing. These three interventions will require
extensive technical assessment, studies and stakeholder consultations.
34.
The project will establish a forest resource assessment and monitoring system at BFD
with the use of Remote Sensing (RS) and Geographic Information System (GIS) technologies.
The system will be strengthened through cross field verification. This system will provide BFD
with (i) scientific and comprehensive data and information on existing resources in coastal and
hilly areas; and (ii) baseline for determining future afforestation/reforestation needs, thereby
contributing to better planning. The assessments will be carried out in the first and last year of
project implementation. They will determine the extent of changes in plantation cover or forest
density that have occurred during the project timeframe. In addition, the subcomponent will
help BFD to strengthen its overall monitoring system by formulating guidelines for quality
assurance of data, results, mapping and assessment of change in forest. This will be tested at the
pilot level as a demonstration in the application of new scientific knowledge and technology in
monitoring and assessment of forest resources. Furthermore, this component will also help
BFD in disclosing and disseminating the project related information in the website and print
media.
35.
The project will support the review and update of the existing Forestry Sector Master
Plan (1995-2015). It will be done by adopting a consultative and inclusive process to prioritize
the relevant issues and challenges. The update will include contemporary issues of climate
change impacts, adaptation measures and carbon sequestration. The analytical studies such as
economic cost-benefit of afforestation/reforestation investment, impacts of climate change,
improved water management in hilly areas, land tenure issues in accreted afforested areas,
policy, institutional and governance structure of BFD for participatory approach and improved
forest management practices will be carried out to strengthen the knowledgebase and contribute
to the relevance of the master plan. The updated master plan will also highlight the importance
of other biota like fish and wildlife of the forest for their sustainable harvest and conservation.
It will explore potential financing support through bio-carbon financing for sustainable forest
sector planning and management. The plan will include a section on short, medium and long
term investment requirements.
36.
The project will also strengthen the capacity of BFD and targeted communities to better
manage forest resources in confronting with climate change risks. This component will be
implemented in close coordination with the training circle of BFD and will support capacity
assessment and provide a strategy for capacity development. Some BFD officials and staff will
receive long-term training (i.e., one year masters/diploma program for seven officials18 and two
to three months training for twenty officials), while another 370 officials and staff will benefit
from short-term training on impacts of climate change on bio-diversity and forests, community
mobilization and participatory process, land use planning, methods to design and implement
policy, programs and projects in coastal and hilly areas. Special attention will be given to
quality assurance, RS, GIS, management information systems, performance management/
monitoring and evaluation. The targeted beneficiaries also will receive training on forest
conservation, common resource management and climate risk mitigation.
18
Five BFD officials and two MoEF officials
10
Component 4: Project Management (US$3.5 million):
37.
This component will support the establishment of a Project Implementation Unit (PIU)
in BFD for implementation of component 1 and 3. The PIU will provide necessary support for
financial management, social and environmental safeguards, communication and procurement
to AF. The budget will cover consultancy fees, routine monitoring, travel, purchase of office
equipment and vehicles (including small water vessels), emergency maintenance works,
meeting costs, audits and other operating costs necessary for project implementation and
reporting.
B. Project Financing
Lending Instrument
38.
The project will be funded through a grant provided by the Bangladesh Climate Change
Resilience Fund (BCCRF) and envisages a combination of technical assistance to forest
conservation and investments in increasing the afforestation and reforestation area. The Bank's
investment lending instrument selected for the proposed project is a Specific Investment Loan
(SIL).
Project Cost and Financing
39.
Total project costs are estimated at US$35 million. BCCRF’s projected contribution is
US$33.8million. GoB will provide US$1 million in-kind contribution to the project to cover the
salaries of existing and deputed government staff who will work on the project and the cost of
the office space and existing logistics. AF will contribute US$0.2 million in cash for
Component 2. The table below provides detailed costs estimates, while Annex 2 contains a
detailed cost table.
Component
Component 1: Afforestation and Reforestation
Program
Component 2: Alternative Livelihoods to Support
Forest Communities
Component 3: Capacity Development for Forest
Resource Planning and Management
Component 4: Project Management
Total Baseline Cost
Price Contingency (5%)
Grand Total
Indicative
Costs
(US$M)
% of
Total
BCCRF
(US$M)
%
Financing
by BCCRF
GoB
(US$M)
Kind
AF
(US$M)
20.9
59.71
20.9
100.00
0.00
0
3.8
10.86
3.61
95.00
0.00
0.19
5.225
14.93
5.225
100.00
0.00
0
3.375
9.64
2.375
70.37
1.00
0
1.00
0.19
33.3
32.11
1.7
4.97
1.69
99.41
0.00
0.01
35
100.00
33.8
96.57
1.00
0.20
11
C. Lessons Learned and Reflected in the Project Design
40.
The Bank’s past experience with Forestry Sector in Bangladesh: IDA supported the
forestry sector in Bangladesh through funding of three forestry projects between 1980 and 2001.
The first project was Mangrove Afforestation Project (Cr. 1042-BD; Credit Amount US$11
million, implemented between 1980 and 1986), which established about 30,500 ha of new
plantations and demonstrated the value of remote sensing (RS). Key lessons learned were: (i)
flexible rotation period for mangrove should be considered since growth is rapid up to 8-10
years and stops thereafter (presently assumed 18-20 years); and (ii) coordination among land
use agencies in the coastal areas should be established to prevent allocation of some mangrove
areas for use in other activities before the plantations are mature.
41.
Upon project completion, IDA provided support to the sector by financing the Second
Forestry Project (Cr. 1634-BD; Credit Amount US$28.0 million) between1986 and1992. The
project’s principal objective of expanding the forest resource base was successfully met. The
main lessons were: (i) a five-year project period was too short, particularly in the absence of
annual monitoring; (ii) greater prominence needed to be given to people's participation in
project design and execution; (iii) new staffing and recruitment policies needed to be agreed at
the start of the project; and (iv) a clear institutional mechanism to allocate reclaimed coastal
lands to their most appropriate long-term use consistent with environmental protection.
42.
The Forest Resources Management Project (Cr. 2397-BD; Credit Amount US$53.23
million) was implemented between 1992 and 2001, with satisfactory achievement. It established
the basis for an improved forest management system. The project also established 33,570 ha
mangrove forests and 36,500 ha of industrial plantation. The key lessons were: (i) effective
plantation management and achievement of optimal forest products yields require adequate and
timely provision of funds; (ii) sustainable management of mangrove plantations depends on
having a sound legal basis for tenure, within an agreed policy for disposition of the mangroves
and accreted land to their best land use;19 and (iii) effective development and management of
forests and protection of wildlife and protected areas must consider the needs and possible
involvement of marginal and landless people adjacent to the forests.
43.
Lesson Learned used in Project Design: One of the major lessons learned from earlier
projects is to involve the forestry community in plantation process. The proposed project
design does involve the forest communities throughout the planning process and includes a
dedicated component to support alternative livelihoods to reduce their dependency on forest
resources. The technical studies under the component 3 takes into account lesson relating to
staffing and institutional mechanism to develop long-term sustainable plan to ensure efficient
allocation of project funds, strengthen design and implementation framework and enhance
opportunities for sustaining project outcomes.
44.
The GoB instituted arrangements for reclaiming and stabilizing char/newly accreted
lands and BFD is in control of newly accreted lands for a minimum of 20 years during which
natural and artificial colonization of vegetation is encouraged over the char land to stabilize
while increasing its height above sea-level to make it habitable and or arable for agriculture and
19
Such as protective belt, wood production, or conversion to agricultural or grazing use.
12
other land uses. Coastal afforestation programs are guided by the principle that 50% of forested
accreted lands will remain under forest cover in reserve forest status even after the twenty year
forestation and soil stabilization cycle. The remaining 50% would be returned to the Ministry
of Lands to demarcate for other land uses. This ‘50-50’ arrangement is to ensure that the
protective attributes of forest shelter belt system and the land stability in the coastal area are not
compromised after the 20 year period. The project has considered afforestation and
reforestation only in areas which are already under the forest department. In addition, the
project design includes organizing district level project launching meeting to improve the field
level coordination among different stakeholders.
45.
BFD has already adopted a flexible approach about the rotation period especially in
buffer zone. Although even a five-year afforestation and reforestation project is very
challenging from implementation point of view, the project is designed only for around four
years considering the current grant agreement between the World Bank and the Government for
BCCRF. BFD has ensured proper maintenance and monitoring work beyond the project period.
46.
The Bank’s recent engagement with Forest Sector in Bangladesh: In FY11, IDA
approved an Adaptive Program Loan on ‘Strengthening Regional Cooperation for Wildlife
Protection in Asia.’ Bangladesh received an IDA credit of US$36 million (Cr. 4909-BD) for:
(i) capacity building to address illegal wildlife trade through regional cooperation; and (ii)
habitat protection and management to generate regional conservation benefits and address the
human-wildlife conflict, thereby ensuring the conservation of wildlife in increasingly
fragmented habitats. In addition, the Bank is carrying out a non-lending technical assistance
activity on the Bangladesh Sundarbans that would enable GoB to develop an action plan in that
area to address climate change adaptation, biodiversity conservation, income growth and
poverty reduction.
47.
Lesson learned from projects aimed at development of alternative livelihoods
activities in forest communities: The Alternative Livelihoods to Support Forest Communities
component draws on the experience of projects in Bangladesh and the South Asian region (see
Annex 8 for detailed report on lessons learned). Experience was gleaned and assessed in
consultations with development partners, BFD officials at the national and local level, NGOs
and community representatives. The key lessons learned and incorporated in the design of the
proposed component include:
a)
Engaging communities and inclusion. A key element for targeting poor and
marginalized persons is the creation of resource users’ groups in conservation and
protection of natural resources. When successful, these groups overcome gaps in social
capital and reinforce positive dynamics in building trust, increasing useful feedback
mechanisms with external entities like BFD, mutual assistance, and implementation of
sustainable forestry practices. For livelihood improvement purposes, these consist of
households which mostly depend on illegal and informal extraction of forest resources
for subsistence and limited surplus trade.
b)
Viability and sustainability of alternative income generation activities.
Targeted beneficiaries are poor, vulnerable households who lack education, and often
knowledge and skills about activities besides forest extraction. These households are
13
vulnerable to various shocks and natural calamities. The most frequent livelihood
activities in current and past projects relate to agriculture, such as cropping and
gardening on homestead or leased lands, goat and poultry rearing, cattle fattening, fish
cultivation; small scale trade and services, such as establishment of small shops,
providing rickshaw services, various cottage production, such as sewing, embroidering,
making cloth, weaving, making bamboo baskets, mats and furniture. While such
activities are low risk and do not require substantial inputs and knowledge, they might
not bring high returns to compensate from forest extraction livelihood activities. Thus,
empowering participating households through trainings and skill development is a very
important factor for sustainability of their alternative livelihoods activities. Business
skills and traits are not easy to locate in rural areas and local NGOs often lack
knowledge and expertise in development of income generating activities, especially of
value-added activities.
c)
Financing arrangements. Group savings allow individual households to obtain
funds on conditions that are favorable for the start-up of small scale enterprises. There
have been many successful examples in Bangladesh with mutual rotating and saving
funds established and managed by groups, and repayment rates have been very high. AF
has successfully implemented all its projects based on that scheme.
IV. IMPLEMENTATION
A. Institutional and Implementation Arrangements
48.
BFD will be responsible for the overall execution and implementation of the project.
AF will implement Component 2. BFD has past experience in implementing World Bankfunded projects and successfully completed three forestry sector projects between 1980 and
2001. BFD is currently implementing the APL for Strengthening Regional Cooperation for
Wildlife Protection in Asia. However, BFD staff needs training in Bank requirements and
processes, since most of the mid-level officials (Divisional Forest Officer responsible for field
level implementation) are not experienced with implementation of Bank supported operations.
49.
BFD will establish a full-fledged PIU headed by a Project Director (not below the rank
of the Deputy Conservator of Forests). The PIU will be equipped with relevant qualified
specialists who will receive market-based compensation. The PIU will support AF in
implementing Component 2. A Project Manager will be hired to coordinate day-to-day
managerial activities and provide technical guidance and input for different components. BFD
officials will work closely with specialists and will receive appropriate on-the-job training to
develop individual and institutional capacity to implement large scale projects. A Project
Implementation Committee (PIC) at BFD with AF representation will also be formed to ensure
overall coordination of project implementation. The PIC, chaired by the Chief Conservator of
Forests (CCF), will be responsible for: (i) reviewing the quarterly and annual progress of the
project based on reports prepared by the PIU and AF; (ii) guiding the PIU and AF on
implementation; (iii) reviewing and approving updated procurement plans and interim unaudited financial reports (IUFRs); and (iv) making independent field visits to the project areas
to assess field implementation.
14
50.
BFD’s ten Divisional Forest Offices, headed by the Divisional Forest Officers (DFOs),
will be responsible for implementing activities on the ground. Assistant Conservator of Forests,
Range Officers, Beat Officers and accounts/admin staff assist the DFO in implementing the
field level activities. Each DFO will be supported by one Community Mobilization Officer
(Junior Consultant) and one Account Officer (Junior Consultant) through project financing.
51.
A high-level Project Steering Committee (PSC) will be formed by the Ministry of
Environment & Forests (MoEF) and the Secretary of MoEF will chair the PSC. The PSC will
comprise relevant Government Officials (MoEF, other relevant Ministries, Economic Relation
Division, Planning Commission, Implementation Monitoring and Evaluation Division,
Bangladesh Forest Department etc.), Executive Director of AF and a representative from the
World Bank. The PSC can co-opt additional members from civil society organizations having
relevant experience. The committee will meet at least once a year and if possible twice a year to
take stock of progress of the project and provide implementation advice and guidance and
policy directions.
52.
AF, the primary implementing agency for Component 2. AF will develop the project
concept for the component, issue Request for Proposals (RFP) and advertise in mass media.
Using World Bank procurement guidelines, AF will competitively recruit specialized partner
NGOs to implement the component in the project areas. Selected NGOs will establish Project
Sites to reach about 200 communities and to establish 200 Forest Dependent Groups (FDGs).
53.
AF will recruit a full time Project Coordinator and livelihood and business development
specialists on a short term basis. AF will ensure quality supervision of all Component 2
activities. It will conduct periodic monitoring of project implementation along established
indicators and review progress against work plans, budgets and other terms and conditions of
the BCCRF grant agreement. The partner NGOs will submit quarterly, annual progress reports
and completion report to AF Secretariat.
54.
AF will submit all project guidelines, consolidated implementation quarterly and annual
reports, as well as monitoring reports to IDA for review and approval.
55.
Financial Management. The PIU will have a financial management section headed by a
Financial Management Specialist (FMS). The FMS will report to the Project Director and will
be assisted by one Accountant (Consultant) in the PIU, ten Accountants (Junior Consultant)
based in the Divisions and required support staff. The existing Finance Manager of AF will be
responsible for overall FM management in component 2.
56.
Procurement Arrangements. The PIU will have a Procurement Specialist (PS) who will
lead the procurement activities under this project and will report to the Project Director. PS will
work closely with 2 (two) procurement focal points assigned by 2 (two) implementing agencies.
Information on the procurement guidelines, planning, particular methods of goods, works,
consultancy, non-consultancy services, prior/post review requirements are included in the
Procurement Plan, which will be updated at least semi-annually, as mentioned in the
Procurement section.
15
57.
Environmental and Social Safeguards Management. An Environmental Management
Framework (EMF) and a Social Management Framework (SMF) have been developed because
design and site selection of the specific activities under components 1 and 2 will be undertaken
during the implementation. Specific screening/assessment and mitigation plans will be prepared
and implemented. Assistant Conservator of Forests (ACF) based at each division level along
with Community Mobilization Officer (CMO) will monitor the social and environmental
safeguard issues and ensure the successful implementation of the environmental code of
practice, execution of social and environmental assessment and management plan.
58.
Implementation plan. BFD and AF will jointly prepare an implementation plan in
addition to the procurement plan. This plan will serve as a living document, which will be
routinely updated to accommodate ongoing implementation changes. BFD and AF will have
detailed Implementation Manual, which will be approved by the PIC and the World Bank
before inception of the project.
B.
Results Monitoring and Evaluation
59.
The project will have a comprehensive monitoring and evaluation framework based on
qualitative and quantitative indicators for each sub-component. These include: plantation
coverage, income, employment, participatory management, capacity building indicators. Annex
1 presents the Results Framework and Monitoring to measure achievement of the PDO. It may
be noted here that the project has adopted the definition of ‘Resilience’ from the recent report
‘Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation’
published by Intergovernmental Panel on Climate Change (IPCC). ‘Resilience’ is defined as
the ability of a system and its component parts to anticipate, absorb, accommodate, or recover
from the effects of a hazardous event in a timely and efficient manner, including through
ensuring the preservation, restoration, or improvement of its essential basic structures and
functions.
60.
Component 3 will contribute to improving BFD’s data quality assurance and monitoring
system. Forest inventory, socio-economic survey, RS and GIS will provide baseline and change
monitoring of increases in afforested and reforested area and impacts of the project on resilience
of forests and livelihoods of local communities.
61.
The PIU will produce the quarterly and annual progress reports in an appropriate format
to the Bank no later than 15 days after the end of each quarter. The Project Director of PIU and
Executive Director of AF will be responsible for the preparation of quarterly reports on overall
progress, site specific progress, major issues, expected completion dates for civil works,
implementation of SMF and EMF, training, technical studies, procurement, and FM issues. The
reports will include: (i) comparison of actual physical outputs and disbursement with updated
forecasts; (ii) financial statements; and (iii) procurement report showing status and contract
commitments.
62.
Monitoring and evaluation (M&E) for component 2 on alternative livelihoods will be
based on a relevant and clear-cut strategy and plan developed by AF. AF operates on the basis
16
of its specific rules regarding monitoring and evaluation.20 For this project, AF will develop an
M&E strategy and plan and train partner NGOs for implementation, starting from the base line
survey. M&E strategy and plan will also include arrangements and formats, as well as
indicators for monitoring of implementation processes and progress, the methodology for
evaluation intermediate and final outcomes, as well as impacts. The baseline study will
implement a difference-in-difference approach for comparison between treatment (project
beneficiaries) and control (non-beneficiaries) groups before and after project activities. AF
Secretariat will carry out periodic monitoring of project implementation and review progress by
undertaking field visits. The implementing partner NGOs will submit quarterly and annual
progress reports to AF Secretariat.
63.
To monitor project progress, two full implementation support missions will be
undertaken annually by the Bank. Additionally, the Bank will monitor implementation
throughout the year. A mid-term review of the project will be carried out by September 2015.
An Implementation Completion Report (ICR) will be submitted to the Bank no later than six
months after the closing date. Additional detail on the World Bank’s support to project
implementation and monitoring can be found in Annex 5.
64.
For an independent assessment on quantitative and qualitative performance of
implementation, third party monitoring is proposed for the project. In addition, BCCRF
secretariat will develop separate monitoring system for the projects to be funded under the trust
fund.
C. Sustainability
65.
The afforestation and reforestation is one of the key priorities of the GoB, which is
reflected in the National Strategy, Bangladesh Sixth Five Year Plan (FY2011-FY2015) and
BCCSAP. The project will contribute toward achieving the national targets on afforestation and
reforestation and will complement on-going and future programs of the government. In
addition, the project would contribute to the sustainability of the forestry sector by: (i) updating
the Forestry Sector Master Plan to allow systematic and sustainable investment in the forestry
sector in near future; (ii) strengthening the participatory forest management through transparent
beneficiaries selection and capacity building of the Forest Department and its officials; (iii)
creating alternative employment generation and reduce dependence on forest resources; and (iv)
improving BFD’s system of data collection and monitoring and forest resource assessment.
66.
At the end of each rotation period, the project beneficiaries from social forestry will get
a share of the timber products and a set percentage will be invested for new plantation as per the
existing rules.
67.
However, there is still a risk of people continuing unsustainable forest harvesting,
especially after the Project completion. The project intends to mitigate this risk by seeking to
change the incentive structure that leads to illegal and unsustainable harvesting in several ways.
First, beneficiaries will be participating in SF program of the project and will monitor own
20
The rules can be found in Arannayk Foundation. 2011. Competitive Grant Making Procedure. January 2011. www.arannayk.org
17
afforested plots. Second, all livelihood activities to be approved must show reasonable chance
of obtaining a significantly higher return to the households than illegal forest harvesting. The
Project also introduces a system of successive tranches to incentivize creation of value and
higher returns through the livelihoods activities. Third, enforcement against illegal logging
must come through a realignment of the incentive structure that abets this behavior. The project
will aim to raise social pressure on beneficiaries’ illegal and unsustainable forest based
activities. Communities will be empowered through conservation awareness program as well as
be engaged in community forest use monitoring to be piloted under component 3. Finally,
mechanisms for social accountability among stakeholders will be prominent. There will be
enhanced transparency in the selection of beneficiaries through involvement of the community
and local government and holding of public decision meetings. Third party monitoring will be
employed to track the implementation of project activities, with particular emphasis on
inclusion and participation. A grievance Redress Mechanism established at the Forest
Divisional Offices would provide avenue for complaints and verification of project related
information. As an organizational mandate, AF will continue to work with communities to
protect the forest and biodiversity after the project has closed.
V.
KEY RISKS AND MITIGATION MEASURES
A. Risk Ratings Summary Table
Risk
Rating
Risk
Rating
Stakeholder Risk
S
1.
Project Risk
Implementing Agency Risk
S
2.
- Design
L
- Capacity
S
3.
- Social and Environmental
H
- Governance
S
4.
- Program and Donor
L
- Delivery Monitoring and
Sustainability
S
Project Risk
5.
6.
7.
- Other (Optional)
- Other (Optional)
Overall Implementation Risk
S
B. Overall Risk Rating Explanation
68.
The overall risk rating of the proposed project is substantial. The key risks to achieving
the PDO fall under two main categories: project specific risks and risks in overall governance in
the country and in the sector. The first category includes risks mainly associated with
insufficient capacity of the implementing agencies in terms of logistics and adequate human
resources to manage a large scale project in remote locations, and weak financial management
system. To address these risks, the Project will recruit consultants for the PIU to undertake FM
and procurement trainings, and will provide training to the relevant BFD staff on Bank
processes and requirements, as well as monitoring and reporting systems. Control exercised by
the DFOs, selected for project implementation will be strengthened through collaboration
between the division’s own FM and the project resources. Other project-related and sector18
related potential risks include: (i) delays in procurement and other approval processes; (ii) poor
quality saplings and natural hazards; (iii) illegal deforestation; (iv) political and/or other
influence on beneficiaries’ selection; (vi) lack of accountability and oversight within the BFD;
and (vii) opposition and criticism from civil society and NGOs. The risk for implementation
(before mitigation) is substantial.
69.
The second category of key risks relate to the overall weak governance in the country
and in the sector, including inefficient funding allocation for institutional development of BFD,
weak internal accountability and integrity mechanisms and insufficient citizen oversight. It may
be noted that some members of civil society and NGOs in Bangladesh expressed earlier their
concerns in regards to weak governance and accountability system in the BFD to implement
effectively conservation projects. In this regard, the Bank may be criticized for being associated
with the BFD in supporting and implementing this project. The detailed risk assessment is
presented in Annex 4: Operational Risk Assessment Framework (ORAF). Governance related
risks are presented in Governance Assessment and Action Plan in Annex 6. Several measures
have been suggested to mitigate the risks. These are: (i) strengthening the oversight function:
Bank review of audit reports and follow-up on actions taken by BFD to address audit
recommendations; (ii) apply RS and GIS technologies to understand the plantation coverage
under project; (iii) use independent third party monitoring for verification of project activities;
(iv) random spot checking etc.
VI. APPRAISAL SUMMARY
A. Economic and Financial Analyses
70.
Economic analysis. An integrated Cost-Benefit Analysis (CBA) of the project’s
Components 1 and 2 shows an Internal Rate of Return (IRR) of 15 percent. When Component 3
is also integrated in the analysis, the economic IRR becomes 12 percent – a very conservative
estimate, because of the difficulty to measure the component's benefits. 21 To account for the
climate change benefits of the project, the analysis covers a 30-year time horizon. It captures a
wide range of benefits, varying from tangible goods (e.g. timber, non-timber forest products) to
services provided on the coast (e.g. averted life and house damages from storm surges) and in
hilly areas (e.g. protection against landslides). The CBA includes both direct costs (e.g.
afforestation, rehabilitating field offices, monitoring, alternative income generating activities,
AIGAs) and indirect costs (e.g. opportunity cost of land).
71.
The analysis highlights that the project’s success depends on: i) the ability to maintain
the forests during and after the end of the project; (ii) adopting coastal mangroves under certain
technical parameters, such as minimum width; and (iii) adopting appropriate species on hilly
areas that are able to provide good protection against landslides and erosion. Thus, the CBA is
followed by sensitivity analyses to uncertain parameters such as deforestation and profitability
rate of AIGAs.
21
For example, strengthened institutional capacity for monitoring, etc.
19
72.
Financial analysis. This section discusses the financial viability of the project, to ensure
that afforested lands will be maintained beyond the end of the project. First, the viability
depends on BFD’s ability to cover the costs related to the afforested areas (maintenance) after
the end of the project. An analysis at BFD level indicates a financial IRR of 36 percent. It is
expected that BFD and beneficiaries from the buffer and strip plantations will monitor and
maintain the forests after the project ends.
73.
Secondly, the project’s financial viability depends on its ability to provide co-benefits
(e.g. through AIGAs grants) that would reduce pressure on forests. A crude analysis of AIGAs'
beneficiaries indicates that net returns from AIGAs exceed the forgone benefits from forests.
This is the minimum requirement towards maintaining the project’s forests. The experience of
Integrated Conservation and Development Projects (ICDPs) has shown that offering profitable
alternative activities may not be enough to prevent households from continuing environmentally
damaging activities22. To avoid these problems, the project will incorporate lessons drawn from
the experience of other projects.23
B. Technical
74.
The design of the project objectives, components and activities benefited from the
contribution of the government, communities, development partners, NGOs, and a crosssectoral IDA team. The proposed project would build upon the successful experience of IDA
forestry projects between 1980 and 2001 and recent experience of afforestation and
reforestation projects financed by the GoB and other development partners (DPs). Component 2
draws on the experience of similar types of projects in Bangladesh and in other South Asian
countries. The project supports second generation interventions to empower the forest
dependent communities to organize themselves, move towards sustainable livelihood options
and to involve communities proactively in forest management.
75.
The objective of the project aligns with five24 of the six pillars of the BCCSAP and the
BCCRF Trust Fund which aims to ensure that citizenry are protected from climate induced
adverse impacts. The project scope highlights key issues confronting forest contribution to
mitigating and adapting to climate change in Bangladesh. First, climate vulnerability and
climate change would have multi-dimensional implications on i) vulnerable ecosystems
including the coastal and hilly zones; ii) poor and ultra-poor communities especially living in
fragile landscapes; and iii) reversing trends in economic growth and efforts to reduce poverty.
Second, forests have proven beneficial as biological shields in extreme climate events and for
22This
is because households may well undertake both, thus gaining the benefits of the alternative activity without forgoing those of the
damaging activity. Moreover, there may be a timing problem if the profitability of AIGAs is delayed.
23
For example, the Bolsa Floresta Program in the Brazilian state of Amazonas adopted an approach based on conditionality: households that
commit not to deforest receive both assistance in establishing sustainable production systems in agricultural areas and a nominal monthly
payment, conditional on complying with the no deforestation rule.
24The project hinges on five of the six priority pillars of the BCCSAP through its focus on i) ensuring food security, employment and access to
basic services for the poorest and most vulnerable; ii) strengthening capacity of government and communities to manage natural disasters and
through establishment of natural shelter belts; iii) contributing to research and knowledge to predict likely impacts on ecosystems in including
the forest sector and rural economy; iv) expanding social forestry program on government and community lands and expanding the “greenbelt”
coastal afforestation program with mangrove planting along the shoreline; and v) capacity building and institutional strengthening to enhance
government agencies (this case Forest Department), civil society and forest fringe communities to handle and mainstream climate change
control measures into development planning.
20
supporting rural livelihoods but, pressure on forest lands for other land uses such as agriculture,
housing, industry and infrastructure are continuing to increase. However, the declining forest
quality and cover cannot be assessed in the absence of reliable forest inventories. Lack of
research, sector and forest management plans, and coupled with scarcity of funding, poor
logistics and weak capacity of BFD field staff have resulted in unsustainable forest
management.
76.
Recognizing these challenges, the proposed operation adopts a holistic approach that
draws on improving afforestation and reforestation techniques using scientific nursery and tree
out-planting methodologies involving communities; updating an integrated forest sector
planning and divisional forest management plans to guide both Government and private sector
forest investments; modernizing the capacity and institutional arrangements of BFD to
implement and sustain project outcomes; and supporting implementation of the social forest
policy.
77.
While the focus will be on the coastal and hilly areas, the project interventions will
cumulatively tackle underlying weak capacity, research and forest inventory gaps that are
critical for sustainably managing the nation’s dwindling forests. The innovative design and
implementation approaches would generate replicable lessons in terms of using open,
transparent and inclusive project beneficiary selection process and integrating participatory
forest management arrangements with alternative livelihoods generation. The project outcomes
will lay the basis for follow up investments to sustain funding for this sector.
78.
Component 1 is designed based on a detailed assessment of the availability of land,
species and costing for different kinds of plantation at different stages (seedlings raising, site
preparation, sapling planting, maintenance etc.) including transportation. An annual and
division-based wise broad plantation plan has been prepared. An implementation manual with
technical specifications of the plantation is under preparation and will be ready before project
launch. The manual will guide for proper site selection, site-species selection, site preparation,
quality control of planting materials, maintenance and protection.
79.
Based on the experience of similar projects, component 2 will ensure the following
aspects: establishment of partnerships among local governments, BFD , local NGOs, private
sector and communities in afforestation, reforestation and livelihood development activities for
promotion of forest co- management and sustainability of efforts; mobilization of poor forest
dependent households into self-help groups and their empowerment through alternative income
generating activities for conservation and sustainable use of forest resources.
80.
Component 3 focuses on improving forest management practices through specific
policy, planning and institutional interventions.
This component will contribute in
strengthening the existing planning and monitoring system of BFD. The sector, policy and
institution specific studies to be carried out under Forestry Master Plan update will lead to a
sectoral dialogue to identify the major challenges to the existing forest management. The study
will also provide recommendations and action plans to address those challenges. The updated
master plan is expected to create an opportunity for BFD to design a sustainable forestry sector
program in the near future. Forest monitoring will be undertaken to establish a baseline and
demonstrate change achieved through the project. The methods will adopt new inventory
21
approaches, technologies and tools for ground survey of forest and tree resources, socioeconomic survey and remote sensing to monitor and map land-use and land-use change. The
techniques piloted within the project will provide the basis for planning a national forest
inventory.
C. Financial Management
81.
Financial Management Risk. The Financial Management assessment was carried out
in accordance with the Financial Management Manual for IDA-financed investment operations
issued by the Financial Management Sector Board on March 01, 2010. The objective of this
assessment was to determine whether the two implementing agencies (i) Bangladesh Forest
Department (BFD) under the Ministry of Environment and Forest (MoEF); and, (ii) Arannayk
Foundation (AF) responsible for the overall implementation, management and monitoring of the
Project have adequate financial management capacity in place to execute this Project.
82.
IDA conducted a financial management (FM) assessment in accordance with OP/BP
10.02 Financial Management and the FM Manual and prepared recommendations for the FM
system for this project (details of Project FM arrangements are in Annex 3). The project is
complex in terms of FM and the overall FM risk rating is substantial, considering the limited
experience of BFD in managing Bank-funded projects and the complex flow of funds to a large
number of people under the afforestation/reforestation program as payments for labor, as well as
for the transfer of grants under the alternative livelihoods program. AF will be responsible for
implementation of component 2. They have their own financial management, monitoring and
reporting system, which is considered as performing well. It has carried out similar projects in
the past and has adequate FM arrangements to support implementation of this project.
However, because AF has never worked with Bank-funded operations and the amount of this
project is relatively large compared with to the average size of projects managed by AF, the
trainings to existing AF FM staff will be essential to ensure that financial management is carried
out in accordance with WB requirements.
83.
FM and Disbursement Arrangements. BFD, as the major implementing agency
responsible for coordination, monitoring and consolidation of financial reporting, will require
support in establishing proper FM system for this project. BFD will recruit qualified FM and
accounting staff for the project; financial management and reporting software will be installed
and adapted for the project; there will be arrangements made for regular monitoring by
independent monitoring organization and for annual audit of all project accounts to be
conducted by the Foreign Aided Project Audit Directorate (FAPAD).
84.
The project funds will be disbursed to the designated bank accounts of BFD-PIU and
AF. PIU will further transfer funds into the bank accounts of DFOs in the Project sites. BFD
and AF will maintain accounts and records and prepare quarterly Interim Financial Reports
(IFR) and annual project financial statements for submission to the Bank.
22
D. Procurement
85.
IDA assessment of procurement arrangements and capacity of BFD concluded that its
procurement management system and capacity are weak (details of procurement management
arrangements are in Annex 3). There are several factors attributing to the weakness: (i) no
procurement staff within the agency, inexperience of present staff with the World Bankfinanced projects and with administering of large and complex contracts; (ii) lack of
arrangements for information dissemination; iii) lack of system for monitoring delivery and
execution of contracts; and iv) lack of processes for handling complaints. In addition, there are
other potential risks for project’s procurement management, associated with vested interests and
political interventions. BFD will have to handle relatively large contracts and considering these
weaknesses, the risk for project procurement operations and contracts administration is rated as
“High”. Mitigation/improvement measures for the efficient procurement management of the
project have been developed and agreed with BFD.
86.
Detailed procurement assessment of AF showed that although AF has no dedicated
procurement specialist, its process of recruitment and contracting of implementing partner
NGOs is adequate. This process is stipulated in AF’s Operating Manual (OM), which describes
the principles and processes for accountability, responsibilities and delegation of authority. It
includes process for handling contracts, monitoring and verification through NGOs’ quarterly
progress report, AF field visits and physical verifications.
87.
However, AF has no experience in working with the World Bank-financed projects and
the sizes of its previous operations are significantly smaller than the amount to be managed
under the Component 2 (maximum contract size of contract for implementing NGO was
US$600,000). In participating communities, procurement of goods, works and services for
livelihood micro projects will be responsibility of the groups/individuals. AF will be provided
with the training on its requirements and processes.
88.
Procurement for the project will be carried out in accordance with the World Bank/IDA
Procurement Guidelines and Consultant Guidelines dated January 2011. Procurement plans will
be reviewed and approved semi-annually by IDA. Quarterly progress reports on procurement
activities will be submitted to IDA.
89.
Several measures have been taken to reduce the procurement risks. These are: (i)
Procurement Performance Monitoring Reports (PPMRs) will be prepared by BFD on a semiannual basis with indicators aimed at managing procurement-related risks; (ii) Qualified
Procurement Specialist will be recruited at PIU level to support both BFD and AF; and (iii) IDA
will monitor implementation progress through standard supervision and focused capacity
building based on reviews and PPMR findings.
E. Social (including Safeguards)
90.
During preparation of the project, a thorough social assessment (SA) was conducted.
The project is expected to bring important opportunities and positive socioeconomic impacts
through creation of jobs, transfer of knowledge and skills, and expanding income opportunities
for the people living in the subproject areas. Component 2 will empower and strengthen social
23
capital of poor, women, vulnerable and marginalized members of forest dependent groups.
However, SA concluded that potential risks related to social issues are also high. These risks
are mostly associated with the following three issues: i) elite capture in process of selection of
beneficiaries for social forestry program and afforestation/reforestation activities, as well as of
beneficiaries for alternative livelihoods support program; and ii) continuation of illegal and
unsustainable harvesting of forest resources; and iii) issues related to resettlement and
indigenous people.
91.
Project interventions aimed at community forestry are often prone to elite capture. To
guard against such elite capture, the project will develop beneficiaries’ selection process
decentralized to the Union Parishad level, with engagement of communities and local
government in open, transparent and inclusive selection and decision making process. If
successful, this approach will be institutionalized through modification of Social Forestry Rules.
Improved selection process and strengthened capacity of local governments, NGOs and
community members will have positive impacts in the process of pro poor decision making and
resource allocation.
92.
While influential and richer people are often responsible for deforestation, it is also
widely documented that the poorest living in and around the forests often depend on forestdegrading livelihood activities like collection and selling of fuel woods and other forest
products. These risks will be addressed through capacity building and awareness program, as
well as community run patrolling of forests.
93.
Social Safeguards. Although project components do not involve involuntary land
acquisition by the BFD or AF, the project has been triggered the World Bank’s OP 4.12 on
Involuntary Resettlement. BFD has prepared a Social Management Framework (SMF) to
address any social safeguard issues that may arise due to the activities implemented under the
individual subprojects (details of SMF are in Annex 2). BFD and AF will undertake social
screening of all subprojects to identify potential social safeguard issues using guidelines and
screening, and adopt and implement impact mitigation measures as suggested in SMF.
Information on all subprojects will be consolidated and sent to the PIU. PIU will share this
information with the MoEF and World Bank on a quarterly basis. BFD will establish a
grievance redress mechanism (GRM) for all subprojects undertaken to address complaints and
grievances about any irregularities in application of the SMF guidelines for community
consultation, impact assessment and mitigation, beneficiary selection, plot size and quality,
eviction from public lands, and other related concerns.
94.
The Project also triggers OP 4.10 on Indigenous Peoples (IPs). In the context of
Bangladesh, indigenous people are referred to as Tribal People. Accordingly BFD developed
the framework of Tribal Peoples’ Development Plans (TPDPs) as part of the SMF for the
subprojects that are to be undertaken in areas and localities inhabited by tribal people. It is
likely that projects sites in Cox’s Bazaar and Patuakhali might have limited number tribal
people living in settlements among the mainstream peoples. The project will follow the Tribal
Development Framework including a consultative process and appropriate documentation to
ensure “free, Prior and informed consultation leading to a broad based community support”.
24
F. Environment (including Safeguards)
95.
The proposed project’s interventions anticipate positive long-term contributions to the
environment by protecting against soil and water erosion, working as a barrier during cyclone
and storm surge, reducing atmospheric pollution, and providing habitat for flora and fauna.
Other interventions include: (i) rehabilitation/reconstruction of field level offices; (ii) alternative
income livelihoods; and (iii) technical studies and capacity building. The project has been
categorized as ‘Category B’ project considering risk associated with the site clearance of
plantation, species selection, use of fertilizer/pesticides/herbicides in the plantation program,
minor construction related disturbance and community level livelihood options. Related
negative impacts are expected to be largely on-site and can easily be mitigated with proper
planning and sound environmental practices. It has been agreed that no pesticides or herbicides
will be used during plantation development. The Project has trigger three environmental
safeguard policies for environmental assessment (OP/BP 4.01), Natural Habitats (OP/BP 4.04),
and Forests (OP/BP 4.36).
96.
BFD and AF have experience with conservation and exercise due diligence on
environmental issues. However, both BFD and AF need strengthening on the World Bank’s
environmental safeguard policies. The capacity weakness has been overcome by hiring
environmental consultant during preparation phase.
An Environmental Management
Framework (EMF) has been prepared by BFD and AF based on consultations with the
stakeholders and community representatives. EMF describes general baseline condition and
typical environmental impacts from different types of activities during preparation, design,
construction and operation. It provides the guidelines to comply with national legislation and
World Bank safeguards policies, and defines the environmental requirements needed for
reconstruction/rehabilitation of infrastructure in the forest. In addition, EMF has laid out the
procedures for simple screening of the co-operative level AIG activities and environmental code
of practice for various project activities. The draft EMF and SMF have been disclosed on BFD
and AF websites (http://www.bforest.gov.bd/ and http://www.arannayk.org/otherdoc.php) for
public comments on May 17, 2012. The field level forest officials with the assistance of the
community mobilization officer will ensure proper implementation of the EMF and SMF. The
Third party monitoring firm will also crosscheck the EMF and SMF implementation.
25
Annex 1: Results Framework and Monitoring
Bangladesh: Climate Resilient Participatory Afforestation and Reforestation Project (P127015)
Results Framework
.
Project Development Objectives
.
PDO Statement
The project development objective is to reduce forest degradation and increase forest coverage through participatory planning/monitoring and to contribute in
building the long-term resilience of selected communities in coastal and hilly areas to climate change.
.
Project Development Objective Indicators
Cumulative Target Values
Indicator Name
Area restored or
re/afforested
Area re/afforested
(sub-indicator)
Forest users
trained
Core
Unit of
Measure
Hectare(Ha)
Hectare(Ha)
Number
Baseline
0.00
0.00
0.00
YR1
1500.00
1500.00
0.00
YR2
YR3
YR4
Data Source/ Responsibility for
End
Target
Frequency
Methodology Data Collection
8750.00
Annually,
Comparison
of satellite
17000.00 17000.00 17000.00 data at
project
inception and
closing
Progress
Report, 3rd
party
BFD, Independent
verification,
Monitoring Firm
Remote
sensing and
GIS mapping
8750.00
Annually,
Comparison
of satellite
17000.00 17000.00 17000.00 data at
project
inception and
closing
Progress
Report, 3rd
party
BFD, Independent
verification,
Monitoring Firm
Remote
sensing and
GIS mapping
3000.00
9000.00
26
Six Monthly
Progress
15000.00 15000.00 Six Monthly Report, 3rd
Party
Verification
Training Firm,
BFD and
Independent
Monitoring Firm
Forest users
trained – Female
(sub-indicator)
Forest users
trained - Ethnic
minority/indigeno
us people (subindicator)
Number
Number
0.00
0.00
0.00
0.00
1200.00
250.00
4000.00
800.00
7500.00
1500.00
7500.00
Six Monthly
Progress
Report,
Training Firm,
Training
Six Monthly
BFD, Independent
Completion
Monitoring Firm
Report, 3rd
Party
Verification
1500.00
Six Monthly
Progress
Report,
Training Firm,
Training
Six Monthly
BFD, Independent
Completion
Monitoring Firm
Report, 3rd
Party
Verification
Implementati
on
Monitoring AF, Independent
Reports and Monitoring Firm
3rd Party
Verification
Increased
household income
of beneficiaries
participating in
alternative
incomegenerating
activities
Percentage
0.00
5.00
10.00
30.00
40.00
70.00
At baseline,
MTR and at
the end of
the project
Reforms in forest
policy, legislation
or other
regulations
supported
Yes/No
No
No
No
No
Yes
Yes
Annually
BFD
Progress Reports
Government
institutions
provided with
capacity building
to improve
management of
forest resources
Number
0.00
0.00
1.00
2.00
2.00
2.00
Annually
Progress
Report
BFD
27
Direct project
beneficiaries
Female
beneficiaries (subindicator)
Number
Percentage
0.00
0.00
3000.00
20.00
Six Monthly
Progress
BFD, AF &
15000.00 38000.00 43000.00 46000.00 Six Monthly Report, 3rd Independent
party
Monitoring Firm
Verification
22.00
25.00
28
27.00
30.00
Six Monthly
Progress
BFD, AF &
Six Monthly Report, 3rd Independent
party
Monitoring Firm
Verification
Intermediate Results Indicators
Cumulative Target Values
Indicator Name
Increase in forest
coverage (km) for
strip plantation in
target areas
Community jobs
(million days)
created through
afforestation/refor
estation program.
At least 200
community
groups have been
targeted by the
Project through
capacity building
program and
small grant
funding, with at
least 80% of their
members being
poor and at least
50% women
Guidelines for
program
monitoring
developed
Core
Unit of
Measure
Kilometers
Days
Number
Yes/No
Baseline
0.00
0.00
0.00
No
YR1
124.00
0.23
20.00
No
YR2
826.00
1.54
50.00
No
YR3
1672.00
2.40
150.00
Yes
29
YR4
1672.00
3.00
200.00
Yes
Data Source/ Responsibility for
End
Target
1672.00
3.00
200.00
Yes
Frequency
Methodology Data Collection
Annually,
Comparison
of satellite
data at
project
inception and
closing
Progress
Report, 3rd
party
verification,
RS and GIS
mapping
BFD, Independent
monitoring firm
Annually
Progress
Report and
3rd Party
Verification
BFD, Independent
Monitoring Firm
Annually
Implementati
on and
Monitoring AF, Independent
Reports; 3rd Monitoring Firm
Party
Verification
Annually
Progress
Report;
Approved
Guidelines/
Tools
BFD
Forest Master
Plan Revised
Forest
Department
Official and
MoEF trained on
participatory
process, comanagement,
climate change
impact on forest,
biodiversity etc.
The number of
cases of nonsustainable and
illegal use of
forest resources
has been reduced
by 30% in and
around the Project
area through
project
interventions.
Number of Forest
field offices
rehabilitated/Reco
nstructed
Yes/No
Yes
No
No
No
Yes
Yes
Annually
Monitoring
Report;
Master Plan
Forest
Department
Number
0.00
0.00
50.00
125.00
275.00
397.00
Annually
Monitoring
Reports
BFD
Annually
Implementati
on
Monitoring
Report;
Forest
AF
Department
Offense
Registry
Records
Annually
Progress
Report and
3rd party
verification
Percentage
Number
10.00
0.00
10.00
0.00
15.00
0.00
15.00
10.00
.
30
25.00
35.00
30.00
43.00
BFD, Independent
Monitoring Firm
Bangladesh: Climate Resilient Participatory Afforestation and Reforestation Project (P127015)
.
Results Framework
.
Project Development Objective Indicators
Indicator Name
Description (indicator definition etc.)
Area restored or re/afforested
This indicator measures the land area targeted by the Bank intervention that has been restored or
reforested/ afforested.
Area re/afforested
This is a sub-indicator of the above indicator, which also measures the land area.
Forest users trained
This measures the number of forest users and community members that have received capacity
building through training as a result of the project. The baseline value is expected to be zero.
Forest users trained - Female
This is sub-indicator of the above indicator, which measures numbers of women members of forest
users and community have received capacity building through training as a result of the project.
Forest users trained - Ethnic minority/indigenous people
This is sub-indicator of the above indicator, which measures numbers of ethnic
minority/indigenous people of forest users and community have received capacity building
through training as a result of the project.
Increased household income of beneficiaries participating in
alternative income-generating activities
This indicator measures the percentage of households who have been able increase their average
monthly income by at least 30% from non-forest related activities.
Reforms in forest policy, legislation or other regulations
supported
This indicator indicates whether the project supports any forest policy, legislation or other
regulations. In this case, this will be updating forest policy and strengthening monitoring system
Govt institutions provided w/ capacity building to improve mgt This indicator measures the number of government institutions received the capacity building to
of forest resources
improve forest resource management. In this case, the institutions are BFD and MoEF.
Direct project beneficiaries
Direct beneficiaries are people or groups who directly derive benefits from an intervention. This
includes the people who are employed as labor to the afforestation and reforestation program,
received training and AIG support. However, the beneficiaries of the climate change adaptation
benefit are not included here since it will be a long-term benefit.
Female beneficiaries
Based on the assessment and definition of direct project beneficiaries, this sub-indicator includes
percentage of the beneficiaries are female.
.
31
Intermediate Results Indicators
Indicator Name
Description (indicator definition etc.)
Increase in forest coverage (km) for strip plantation in target
areas
This indicator measures the length of the road targeted by the project that has been brought under
strip plantation
Community jobs (million days) created through
afforestation/reforestation program.
The indicator measures number of man-day work generated for poor vulnerable people as daily
labor in afforestation/reforestation program and rehabilitation/reconstruction of field offices
At least 200 community groups have been targeted by the
Project through capacity building program and small grant
funding, with at least 80% of their members being poor and at
least 50% women
This indicator measures the numbers of forest depended forest groups formation with agreed
criteria.
Guidelines for program monitoring developed
This indicator identifies whether forest resource monitoring tools based on participatory
techniques and also using RS/GIS.
Forest Master Plan Revised
This indicator checks the completion of revision of forestry sector master plan through
consultative process
Forest Department Official trained on participatory process,
co-management, climate change impact on forest, biodiversity
etc.
Numbers of BFD officials received long-term and short term training both locally and
internationally reputed institutions.
The number of cases of non-sustainable and illegal use of
forest resources has been reduced by 30% in and around the
Project area through project interventions.
The examination of official and unofficial record on illegal and non-sustainable forest resources
extraction issues.
Number of Forest field offices rehabilitated/Reconstructed
The field level forest offices rehabilitated or reconstructed to provide better facilities to field level
staff for forest management
.
32
Annex 2: Detailed Project Description
1.
The project is aimed at reducing forest degradation and increasing forest coverage
through participatory planning/monitoring and contributing in building the long-term resilience
of selected communities in coastal and hilly areas to climate change. It comprises four
components: i) Afforestation and Reforestation Program; ii) Alternative Livelihoods to Support
Forest Communities; iii) Capacity Development for Forest Resource Planning and Management;
and iv) Project Management. The project will be implemented in nine districts of Bangladesh:
Cox’s Bazar, Chittagong, Noakhali, Lakshimipur, Barisal, Pakuakhali, Barguna, Bhola, and Feni.
Component 1: Afforestation and Reforestation Program (US$22.0 million):
2.
The objective of this component is to increase the afforested/reforested areas through
participatory forestry and co-management approach in the degraded forestland, marginal, fallow
and newly accreted land in coastal and hilly areas. While achieving the target of the
participatory afforestation and reforestation, the component will also support the
rehabilitation/reconstruction of the existing field offices of the Bangladesh Forest Department.
(i) Participatory Afforestation and Reforestation (approximately US$19.0 million)
3.
The afforestation and reforestation are expected to contribute in better protecting lives
and property against cyclones and tidal surges in coastal and hilly areas. This will improve soil
stability and water retention in hilly areas. The afforestation and reforestation will be undertaken
in areas that are not yet covered by other planned, on-going and completed projects of BFD or
other development partners. Different types of afforestation with cyclone and surge adapted
species like mangrove plantation, Jhaw plantation, Golpata plantation, enrichment plantation and
strip plantation are planned for the coastal areas. The hilly areas will cover core zone plantation,
buffer plantation, and non-mangrove buffer plantation designed to reduce livelihood pressures on
degraded natural forests to allow restoration. Afforestation/reforestation will cover around 6,767
ha of lands and 1,672 km of roadside area in coastal zone and 3,878 ha of land in forests’ core
zones and 6,352 ha of land in buffer zones in hilly areas.
4.
The subcomponent will include two types of forestry technologies (i) treatment and
reclamation of coastal mangrove land; and (ii) treatment of denuded forest lands on undulating
terrain within 20 km radius of coastal zone. Both areas are affected by frequent cyclones. The
proposed afforestation/reforestation is not a conventional forestry plantation work rather an
initiative with a clear climate change adaptation and mitigation purpose. The project area
includes newly accreted land in coastal areas, which are subject to increasing incidence and
impact of cyclones and also extremely critical for ensuring a sustainable mangrove succession
process. This will subsequently reduce the impact of cyclones on coastal communities. The
other parts of the project area in two hilly districts also fall within the 15 to 20 km range of the
coastal zone and are also frequently affected by cyclones. The project will promote locally
proven seed collection, nursery and plantation techniques in accordance with international best
practices for ensuring improved site-species matching, quality planting stock, site preparation
and successful plantation establishment, tending and protection. For the nursery technique, the
project has proposed specific “Sonneratia Appetala” practice, which is quite common in
33
mangrove forests, in both India and Bangladesh. This is proven to help in stabilizing Char
mangrove lands. A nursery and plantation manual will guide the overall afforestation and
reforestation program in both coastal and hill forests.
5.
Table 2.1 presents types of plantations proposed under the project. This component will
support nursery raising, plantations, maintenance, cost of beneficiaries’ selection, and monitoring
and evaluation of the plantation program.
Table 2.1: Plantation types and areas for afforestation and reforestation
Mangrove Afforestation
Mound Plantation
Jhaw Plantation
Golpata Plantation
Enrichment Plantation
Strip Plantation
Core Zone Plantation
Buffer Zone Plantation
Non mangrove (Buffer) Plantation
Areas to be Planted
Ha
Km
5,700
0
427
0
410
0
635
260
0
0
1,037
3,878
0
5,925
0
400
0
Total
17,000
Plantation Type
1,672
6.
There are over 300 indigenous species that are common in the natural terrestrial forests of
Bangladesh. Though each of these species is important and valuable for biodiversity, only a few
selected species that exhibited better performance will be used for the purpose of
afforestation/reforestation. The species that have demonstrated climate change resilience and
adapted to proposed afforestation and reforestation sites and meet the required objectives are to
be used in the project. The selection of plantation types and species will be based on technical
expertise and through community consultations. The ten different types of plantation that will be
raised under the project can broadly be divided into two major groups, namely mangroves and
non-mangroves.
7.
Out of the 68 species of mangroves that are found in Bangladesh, only a few will be
recommended for the plantations. Most of these species are indigenous and well adapted coastal
species.
8.
In non-mangrove hilly areas, two types of plantations will be raised: long rotation
plantations in ‘Core Zone’ area and short rotation plantations in ‘Buffer Zone’ area. The rotation
period in the Core Zone area will be 40 to 60 years. The species that yield valuable timber as
wood and those that will grow in the given areas will be used in raising plantations in the core
zone area. All are indigenous except Teak. The proportion of teak will not be over 10%. The
rotation period in the buffer zone area will be about 10 to 18 years. Fast growing timber species
will be used in raising plantations in buffer zone areas. All are indigenous, except Acacia.
Acacia species have been planted by BFD for more than 30 years and are highly recommended
by participating communities.
34
9.
The available degraded forest land in project areas is already identified for project
interventions, GPS surveying is done, maps are prepared (manually) and site species matching
for the first year of plantation is already completed. Mixed species plantings (with age classes
and rotation lengths and varying end uses) will be promoted to strengthen resilience and spread
climate change and market risk. Preference will be given for planting indigenous species, but a
proportion of exotic species will also be planted to meet livelihoods and other local needs.
Timing and duration of seed collection and nursery practices vary markedly throughout the year
depending upon species, site conditions, purpose and season. Seeds from good standing stock
will be collected between January/February and September/October.
10.
Nurseries in close proximity to the afforestation/reforestation sites will be promoted
(sown in September/October) to provide quality seedlings for planting from May to August,
depending on the monsoon season. As part of the silvi-cultural practices, weeding will be
undertaken in years 1 (3 times), 2 (twice) and 3 (once). The scheduling and technical
specifications for seed collection, nursery practices, site preparation, planting, tending and other
necessary silvi-culture practices is outlined in the “Nursery and Plantation Manual”. This will
include traditional and new scientific knowledge base and available technologies. BFD,
Arrannayk Foundation, NGOs and local communities will be engaged in participatory planning
and implementation of afforestation and reforestation.
11.
The project will engage local communities throughout the project cycle, starting from the
planning phase. A new approach for selection of beneficiaries for the SF program will be
developed and tested to ensure inclusion of poor, vulnerable and marginalized groups. This
process will be decentralized to the Union Parishad level with engagement of communities and
local governments in selection, decision making and affirmation process. The implementation
manual describes the beneficiary selection process for the SF program. The selected
beneficiaries and other poor people living in the target geographic areas will be employed as
daily labor by BFD in nursery raising and plantation establishment. BFD will prepare an initial
participant list (preferably with voter ID number) of those shown their willingness to work in
plantation program on daily wage basis. This list will be prepared through participatory process
and each participant will have a code number, which will be used as a reference number for
payment arrangements. It is estimated that this will generate around 3.0 million work days. The
beneficiaries selected for maintaining the plantations will receive benefits from the earnings of
the afforestation/reforestation program. The key results section provides specific targets on
afforestation/reforestation.
12.
The afforestation and reforestation program will also test innovative new approaches and
technologies. These may include: i) refining site-species matching; ii) broadening the climate
change resistant species to be used for afforestation/reforestation; iii) non-mangrove species
succession following siltation of coastal mangrove plantations; iv) improved seed sources for key
plantations species; v) improved nursery practices to provide quality seedlings; vi) alternative
planting mechanisms in different habitats; vii) improved silvi-culture (particularly thinning) in
productive plantations to balance volume/value for beneficiaries; viii) alternatives to improve
benefits to beneficiaries in social forestry mechanisms; and ix) new NTFPs (apiculture, oil
extracts, dyes) from afforestation species.
35
(ii)
Rehabilitation/Reconstruction of Forest Department Field Infrastructure
(US$3 million)
13.
The objective of the subcomponent is to rehabilitate and/or reconstruct the existing field
level offices in the project area to ensure proper operation of BFD. The field assessment of the
during the project preparation showed that most of the field offices are in poor condition due to
lack of regular maintenance budget. The subcomponent will consider the rehabilitation of the
existing infrastructure and if the structural condition does not permit the rehabilitation,
reconstruction will be considered in the same location. Since the areas are vulnerable to
cyclones, the field office should also function as a cyclone shelter for the field level staff in
remote areas. The following are some criteria proposed for new field infrastructure: (i) the
building should be circular in shape; (ii) the plinth should be at least 8 feet above the ground on
pillars; (iii) floor area should be about 200 square meters; (iv) it should have a doom shaped
roof; (v) it should accommodate at least 4 or 5 BFD staff; and (vi) it should have one common
toilet and a common cooking area.
14.
In addition, the subcomponent will follow the design and construction practices that have
no or little residual impacts on the surrounding biological, physical and natural environment and
could potentially support forest biodiversity conservation by (i) minimizing and mitigating
adverse impacts of infrastructure through appropriate site selection and construction methods;
and (ii) remediating and compensating for any residual damage to have a net positive impact.
The design will consider solar power and rainwater harvesting system.
15.
A Design, Supervision and Monitoring (DSM) consultant will be hired by BFD for
design and construction supervision under the subcomponent. The physical works will be
divided into 5 contracts, which will be managed through PIU with local DFO involvement.
Although there is huge demand in the field level for the rehabilitation/reconstruction of the field
level offices, the project will support only 43 offices, which are divided into ten divisional forest
offices as (i) Patuakhali Coastal Afforestation Division – 8 offices; (ii) Bhola Coastal
Afforestation Division – 7 offices; (iii) Noakhali Coastal Forest Division – 6 offices; (iv)
Chittagong Coastal Afforestation Division – 6 offices; (v) Chittagong North Forest Division – 3
offices; (vi) Chittagong South Forest Division – 3 offices; (vii) Cox's Bazar North Forest
Division – 3 offices; (viii) Cox's Bazar South Forest Division – 3 offices; (ix) Barisal Social
Forestry Division – 2 offices; and (x) Feni Social Forestry Division – 2 offices. It is anticipated
that the civil works will generate local employment of about 0.18 million work days.
Component 2: Alternative Livelihoods to Support Forest Communities (approximately US$
4.0 million)
16.
The objective of this component is to reduce forest dependence and enhance resilience of
selected communities to climate change through the introduction of alternative and diversified
livelihood opportunities. This will reduce pressure on forests, thereby improving its sustainable
use, conservation and protection. The Arannayk Foundation (AF), also known as the Bangladesh
Tropical Forest Conservation Foundation, is a non-profit company (limited by guarantee and not
having a share capital) that seeks to contribute to the conservation of biodiversity assets of
tropical forests. AF’s mandate is to promote conservation and restoration of tropical forests and
36
forest biodiversity through promoting alternative income-generating activities (AIGAs). In
2006, AF developed an approach to support AIGAs for community-based organizations through
USAID-financed-grants, such as vegetable cultivation, small scale businesses, poultry rearing,
and handicrafts. Grants are typically given to communities to be channeled through AIGAs at
the household level, and are often supplemented by participatory savings. By 2010, AF was
actively supporting 27 projects, for a total of US$14 million. The approach proved successful,
with net returns up to two times the investment value.
17.
AF will use the same approach in this component by targeting 6,000 households in 200
forest communities located mainly in forest buffer zones. The following criteria will be used in
selecting 200 forest depended communities:
•
proximity to proposed afforestation/reforestation site (for instance, scoring will be based
on the range of distance from the site: 0-2km, 2-4; 4-5, and more than 5 km);
•
proximity to natural forest (this is important indicator for defining forest dependent
communities and would use similar indicators for scoring: 0-2km, 2-4; 4-5, and more
than 5 km);
•
level of current and potential impacts of climate change (proposed indicators are
occurrence of soil erosion/landslides, water retention, probability of tidal surges, and
salinity. They need to be further developed and properly ranged);
•
size of area to be afforested/reforested (the minimum size of afforestation land close to
community should not be less than 25 acres= 10 ha to include 30 beneficiaries for
ALSFC component); and
•
level of poverty based on the most updated statistical data, such as Poverty Map of
Bangladesh of 2009 and Union Parishad data on village poverty level.
18.
In the first year, funds will be channeled to promote small-scale AIGAs at the household
level (e.g. goat and poultry rearing, vegetable cultivation, and small scale trade). In the second
year, the project will identify the activities which have potential for being expanded at the
community level (e.g. establishing cooperatives for improving marketing channels for local
products, community based eco-tourism, making energy efficient cooking stoves, and
agricultural firms). The component will also improve linkages with BFD through mobilizing the
targeted communities into Forest Dependent Groups (FDGs). These FDGs will benefit from
AIGA and will also participate in social forestry and afforestation works and to jointly protect
forest resources. Component 2 will link closely with component 1, to ensure improved linkages
between targeted communities and the social forestry program.
19.
Specific activities include:
a) Project preparation activities. At the initial stage of project implementation, AF will
develop an Implementation Manual for the Component, a Targeting and Selection
Strategy (TSS), an M&E Strategy and Plan, and Mutual Rotating Saving and Loan
Fund guidelines. Based on the extent and location of the areas to be afforested, the
37
project area will be divided into ten or more project sites along the administrative
forest divisions. These project sites will be grouped into two clusters with an average
of four to five project sites in each forest division. AF will recruit at least two NGOs
to implement projects at the clusters’ level. The procurement of NGO services will
be carried out as per World Bank guidelines. The AF in cooperation with BFD and
PIU will provide an initial training for selected partner NGOs on all developed
component guidelines, including social and environmental safeguards, financial
management and reporting.
b) Social mobilization. Project resources will be targeted to communities most affected
by climate change, those located in fragile forest and wetland ecosystems, and poor
communities. AF will develop a TSS, which will stipulate requirements and content
for awareness campaign and materials to be disseminated in project areas, criteria for
selection of communities, such as proximity to forest land, condition of forest and
wetland resources, climate change trends, size of area to be affected by plantations,
and poverty levels. Special provisions will be made to inform and engage
communities of indigenous people. The TSS will also stipulate the approach and
selection process as well as eligibility criteria of beneficiaries for alternative
livelihoods support. Priority will be given to already established grass-root level
forest users’ organizations or self-help groups. If there are no such groups established
in selected areas, the Project will form community level FDGs. All beneficiaries will
be selected along the clearly defined eligibility criteria using a scoring system, such
as poverty and well-being level, level of dependency on forest resources, commitment
to participate in Project activities etc. Female-headed households will have a priority.
Each FDG should not exceed 30-40 members. A list of selected members will be
affirmed by communities to verify eligibility to avoid elite capture and misuse of
selection procedures. In addition, all selected beneficiaries will be interviewed in the
course of the baseline survey and results will be used for monitoring purposes, as well
as for cross verification of eligibility of selected participants.
The Project will facilitate creation of informal Community Patrolling Groups (CPGs)
with members of FDGs to organize and undertake community surveillance for
protection of natural and plantation forests under the supervision of BFD.
c) Supervision of component implementation and back- up support. AF will review
and approve work-plans prepared by partner NGOs. It will provide back up support
and ensure monitoring of component implementation. AF will recruit one additional
staff at the national level – a Project Coordinator and three existing officials will
provide a fixed time in each month to supervise and support implementation and
undertake field visits. AF will recruit specialized experts on a short term basis when
needed.
d) Development and implementation of M&E strategy and plan. AF will develop a
simple Monitoring and Evaluation (M&E) Strategy and Plan. It will be based on
AF’s own M&E approach, but be consistent with the monitoring to be undertaken by
BFD for forest status and change as detailed in Component 3. It will include
38
monitoring arrangements and survey formats, as well indicators for monitoring of
implementation processes and progress, intermediate outcomes, and final survey at
the completion stage for impact evaluation. Partner NGOs will implement baseline
study collecting profile of the project area, information on households, existing
livelihood practices, and poverty, etc. AF Secretariat will carry out periodic
monitoring of project implementation and review progress by undertaking field visits.
NGOs will submit quarterly and annual progress reports to the AF Secretariat. AF
Secretariat will submit consolidated reports to PIU and IDA.
e) Identification of livelihood opportunities and capacity building. This activity will
explore the potential for alternative livelihoods activities of the poor and extremely
poor, depending on the existing livelihood practices, traditions, agro-ecological
conditions, marketing opportunities in the project area. Groups will be provided with
intensive awareness and capacity building program on issues of (i) conservation and
protection of forest and wetland ecosystems; (ii) climate change adaptation; (iii)
group organizational development and management of mutual rotating saving and
loan fund; (iv) basic financial management and accounting with special program for
illiterate members of the groups; and (v) livelihood training on selected alternative
livelihoods activities (participants will be able to attend different skills trainings for
selecting the appropriate one and for diversification of their livelihood economic
activities). The alternative livelihoods activities will primarily focus on income
activities outside the forest sector, but will also consider non-extractive forest based
activities.
f) Value adding economic activities support. In the second year of implementation,
after groups have undergone training, AF will announce competition for selection of
organizations and/or individuals to provide support in value adding economic
activities that enhance rural livelihoods and have potential for scaling-up and
replication. The Project will provide resources to engage private and/or public sector
organizations or individuals, who in turn will assist the FDGs to access better market
information and latest technology, obtain higher returns for their produce, and help
the communities better align their produce with market demand.
Specific value adding economic activities envisaged under this direction include
support for eco-tourism, production and marketing of energy efficient stoves,
collective marketing of agricultural and handicraft products, and development of
cooperatives. This support will be provided with project financing and through
specific capacity building, counseling, providing market linkage support, establishing
public-private partnerships. Selection of activities will be carried out to prevent
additional pressure on forest ecosystems based on an IDA- approved environmental
safeguard checklist for non-eligible activities. These activities will aim to develop
and support effective partnerships with the private sector, public sector, and civil
society.
g) Set up and management of funds. The project will provide finances to the mobilized
groups for development of alternative livelihoods options to reduce their dependence
39
on forest and strengthen the participatory forest management. Project financing to
FDGs will be provided in two tranches. The first tranche will be allocated as soon as
groups have been formed and have undergone relevant training, developed own Rules
and Regulations on Management of Mutual Rotating Saving and Loan Program
(MRSLP), selected management group for the program and established own saving
fund. AF and partner NGOs will develop general strategy for the MRSLP, which can
be adopted and modified by FDGs. To ensure that the funds are used properly,
partner NGOs will provide close monitoring and ensure that formal and informal
grievance redress mechanisms are well developed and disseminated to
mitigate/capture problems at an early stage. The second tranche will be provided in
the second year to those groups which have proposals to scale up potentially viable
value adding economic activities.
h) Raising awareness. Within the first 6 months, a workshop will be organized to share
the project activities and expected output with community members, social elite, local
government and other stakeholders. In the following project years, periodic
workshops and meetings will be organized to demonstrate the results on the ground.
Communication materials (e.g. photographs, posters, leaflets) will be prepared and
distributed at workshops and other meetings for raising awareness. Use of national
and regional print and electronic media, as well as video shows at the community
level should also be included in awareness program.
Component 3: Capacity Development for Forest Resource Planning and Management
(US$5.5 million)
20.
Monitoring systems in forestry practices can be segregated into two distinct types, one is
the activity monitoring, which includes monitoring of the quantity and quality of forest
management actions such as seed collection, nursery practices, plantations establishment, silvicultural practices and forest protection and another is resource monitoring, which largely
monitoring of baselines status and change in key biophysical parameters of the forest and tree
resources. The present standard practices of BFD for activity monitoring will be strengthened to
improve the scope of the existing data and information collection, database management and
reporting. However, BFD does not have any long-term or formal and regular resource
monitoring and assessment system. The past assessments were done on ad hoc basis based on
the availability of funds and specific needs of the time. The present monitoring system lacks
time series assessment data, which should be used as a baseline for the subsequent assessment.
BFD recognizes that the monitoring system of the forest resources should be strengthened along
with routine and periodic resource assessment/inventory.
21.
The objective of the component is to improve the technical knowledge base on forest
resource assessment, program monitoring and long-term planning for the sustainable
development of the forest sector. This component aims to improve forest management practices
through three specific interventions: (i) improving the current management practices backed by
technological interventions; (ii) build the capacity of the department not only by deploying
appropriate manpower and training plans, but also by proper resource planning, resource
management and human resource (HR) assessment. Such capacity development plan would
40
include specific requirements keeping in mind the climate variables evident in Bangladesh for
both mitigation and adaptation; and (iii) review and revise the existing forest master plan in light
of the changing forestry practices and new policies/strategies and the available budget envelop.
These three interventions will require extensive technical assessment and stakeholder
consultations.
22.
The component will help in improving the present knowledge on the climate projections,
impacts of climate change and vulnerability of the forest ecosystem as well as the vulnerability
of the coastal and hilly communities and their settlements in the context of climate risks. This
will lead to incorporation of adaptation strategies in future climate resilient coastal and hilly
region green belt program. It will include the non-timber forest product (NTFP) management as
an adaptation strategy along with a benefit sharing mechanism to ensure that the forest dependent
communities are insulated from the climate change related risks. The component will also
support development of a system in BFD to estimate carbon mitigation potential from the coastal
and hilly areas afforestation/reforestation.
23.
The project will establish a forest resource assessment and monitoring system at BFD
with the use of Remote Sensing (RS) and Geographic Information System (GIS) technologies.
The system will be strengthened through cross field verification. This system will provide BFD
with (i) scientific information on existing resources in coastal and hilly areas that are to be
covered by afforestation/reforestation; (ii) future afforestation/reforestation needs, thereby
contributing to better planning. The assessment will be carried out in the first and last year of the
project. Comparison between the two assessments will reflect the changes in the forest growth
expected to take place during the project timeframe. In addition, the component will help BFD
to strengthen its overall monitoring system by formulating guidelines for quality assurance of
data, results, mapping and assessment of changes in forest areas. This will be tested at the pilot
level. The capacity strengthening in monitoring system will include the review of the existing
datasets, staff, infrastructure of the resource information management system (RIMS) unit of
BFD and its effectiveness in forest report mapping and land use planning for appropriate forestry
practices. RIMS unit will be strengthened as one of the key entity for preparing spatial and
temporal maps that will be used in regular monitoring plan. Furthermore, this component will
also help BFD in disclosing and disseminating project related information through website and
print media. BFD will procure services of firm/research institute/joint-venture to support in
carrying out the activities.
24.
The project will support to review and update of existing Forestry Sector Master Plan
(1995-2015). ADB-funded the preparation of a Master Plan for the Forestry sector. A team of
26 national and international consultants worked from October 1991 to May 1993 and prepared
the 20-year Forestry Master Plan, which will expire in 2015. This plan provided a frame work
for forestry sector policy guidelines on activities relating to environmental as well as socioeconomic development. For implementing this master plan, roughly BDT. 80,000 million was to
be allocated during this 20 year period starting from 1995. Though various development projects
have been implemented since 1995, there was no systematic approach to implement the Forestry
Master Plan. The proposed update will include contemporary issues such as climate change
impacts, adaptation measures and carbon sequestration. The analytical studies such as economic
cost-benefit of afforestation/reforestation investment, impacts of climate change, improved water
41
management in hilly areas, land tenure issues in accreted afforested areas, policy and
institutional structure of BFD for participatory approach and better forest management will be
carried out to strengthen the present knowledge base and contribute to the master plan. The
updated master plan will also highlight the importance of conservation and sustainable
management other biota like fish and wildlife. It also will explore potential financing support
through bio-carbon financing for sustainable forest sector planning and management. The plan
will include a section on short, medium and long term investment requirements.
25.
The project will strengthen the capacity of BFD and targeted communities to better
manage forest resources in order to confront climate change risks. This component will support
capacity assessment and will provide a strategy and framework for capacity development. This
will propose institutional restructuring needed within BFD. Under the project’s capacity
building program, some BFD officials and staff will receive long-term training (one year
masters/diploma program for 7 officials25 and two to three months training for 20 officials),
while another 370 officials and staff will benefit from short-term training on climate change
impact on bio-diversity and forests, community mobilization and participatory process, methods
to design and implement policy and programs/projects in coastal and hilly areas. Special
attention will be given to quality assurance, Financial Management (FM), RS, GIS, management
information systems, performance management/monitoring and evaluation. The targeted
beneficiaries also will receive training on forest conservation, common resource management
and climate risk mitigation. The component will support a general awareness campaign on forest
conservation.
Component 4: Project Management (US$3.5 million):
26.
This component will support the establishment of a Project Implementation Unit (PIU) at
BFD for managing the component 1 and 3. The PIU also will provide necessary support for FM,
social and environmental safeguards, communications and procurement to AF. The budget will
cover consultancy fees, routine monitoring, office equipment and vehicles (including small water
vessels), emergency maintenance, travel and meeting costs, audits and other operating costs
necessary for project implementation and reporting. The government will contribute $1 million
in kind contribution for the project management. This contribution will include salaries of the
Project Director and other existing and deputed government officials working in PIU and field
level forest offices. The cost of the field level offices and available logistics will be included in
the kind contributions. The responsibilities and membership of different committees have been
explained in the implementation arrangement.
25
5 BFD officials and 2 MoEF officials
42
Table: Detailed Project Cost
Component
Component Description
Component- 1
Afforestation and Reforestation Program:
Forestation in the Coastal Areas(Block Plantation)
Forestation in the Coastal Areas (Strip Plantation)
Forestation in the Hilly Areas (Block Plantation)
Participant Selection Procedural Cost
Monitoring Cost
Rehabilitation and Restoration of FD Field Camp Office
Design, Supervision & Monitoring Consultancy
Component- 2
Alternative Livelihoods to Support Forest Communities
Program Monitoring - Arannayk Foundation
AIG Support through NGO
Community Grant
Component 3
AIG& other Consultant
Capacity Development for Forest Resources Planning and
Management by the FD:
Technical Study for Land use mapping, assessment and monitoring
of proposed afforestation and reforestation
Technical Study for strengthening RIMS and development of
Forest Resource Assessment and Monitoring protocol
Technical Study for developing communication strategy,
awareness campaign and web-based information dissemination
system
Third party monitoring
Technical Study for Review Forest Master Plan and different
sectoral studies for Forestry Master plan updating
Technical Study for developing strategy and time specific
investment plan
Equipment for RIMS, Networking with 10 DFO offices
Component 4
Consultants-International & National
Training for BFD
Training for community
Workshop/meeting
Project Management
Consultant and Project Staff
Vehicles, Boats and Equipment
Operation and Maintenance Costs
Project Total Base Cost
Price Contingency (5%)
Unit
Quantity
Hectare
Km
Hectare
Nos.
LS
Building
Contract
7197
1672
9803
500
LS
43
Sum
5.03
2.96
8.95
0.14
0.97
2.71
0.14
14.36
8.45
25.57
0.41
2.78
7.74
0.41
5.03
2.96
8.95
0.14
0.97
2.71
0.14
100
100
100
100
100
100
100
0
0
0
0
0
0
0
0
0
0
0
0
0
0
MM
LS
LS
MM
81
LS
LS
10
0.25
2.57
0.93
0.04
0.71
7.34
2.65
0.11
0.25
2.57
0.74
0.04
100
100
80
100
0
0
0
0
0
0
0.19
0
Contact
1
0.40
1.14
0.40
100
0
0
Contract
1
0.40
1.14
0.40
100
0
0
Contract
1
0.15
0.43
0.15
100
0
0
Contract
Contract
1
1
0.35
0.70
1.00
2.00
0.35
0.70
100
100
0
0
0
0
Contract
1
0.70
2.00
0.70
100
0
0
Contract
1
0.21
0.60
0.21
100
0
0
MM
Participants
Participants
Number
174
395
15000
10
1.01
0.89
0.38
0.04
2.89
2.54
1.07
0.11
1.01
0.89
0.38
0.04
100
100
100
1000
0
0
0
0
0
0
0
0
MM
Number
Sum
1554
140
Sum
2.43
0.56
0.38
33.30
1.70
35.00
0.80
0.05
0.15
1.00
0.00
1.00
0
0
0
0.19
0.01
0.20
Grand Total
43
Indicating
Costs
(US$M)
% of Total
6.94
1.60
1.10
95.14
5
100.00
BCCRF
(US$M)
1.63
0.51
0.23
32.11
1.69
33.80
%
Financing
by BCCRF
67
91
61
96.43
99.41
96.57
GOB
(US$M)
Kind
AF
(US$M)
Annex 3: Implementation Arrangements
BANGLADESH: Climate Resilient Participatory Afforestation and Reforestation Project
Overall Institutional Arrangements
1.
The implementation of the proposed project will involve the following institutions:
•
•
•
•
MoEF will be the coordinating ministry on behalf of GoB for this project;
BCCRF will provide funds for this project as well as exercise broad fiduciary controls
and provide strategic guidance through its Governing Council and Management
Committee;
BFD and AF will receive funds from BCCRF and be responsible for the
implementation of the project. AF will make cash contribution of $200,000 for the
Alternative Livelihoods to Support Forest Communities component; and
The Government will contribute $1million in-kind contribution for the project
management.
BCCRF
2.
BCCRF is a partnership between the Government of Bangladesh, Development Partners
and the World Bank (WB) established in May 2010with financial support from Denmark,
European Union, Sweden, Switzerland, and United Kingdom to address the impacts of climate
change. USAID joined the partnership recently. BCCRF will enable GoB to channel over
$170millionof grant funds to build resilience to impacts of climate changes.
3.
The objective of BCCRF is to support the implementation of BCCSAP. GoB leads the
management and implementation of BCCRF. On behalf of the contributing Development
Partners (DPs), and in consultation with GoB, the World Bank is ensuring the due diligence
requirements on the BCCRF and ensuring efficient project implementation.
4.
BCCRF has a two-tier governance system: (i) a Governing Council which provides
overall strategic direction and guidance to BCCRF and ensures its alignment with the BCCSAP;
and (ii) a Management Committee which is responsible for developing a work program, ensuring
that the BCCRF is implemented in line with the agreed implementation arrangements and
considering grant requests submitted by various line ministries and other eligible institutions.
5.
Both the Governing Council and the Management Committee are chaired by GoB. A
secretariat, based in MoEF, is responsible for providing support to the Governing Council and
Management Committee and for providing advocacy, communication and coordination support
to all agencies implementing the activities funded by BCCRF.
6.
The Governing Council is a high-level committee chaired by the Minister of MoEF and
comprise of Ministers from Ministry of Finance, Ministry of Food and Disaster Management,
Ministry of Foreign Affairs and Ministry of Water Resource; Secretaries from Ministry of
Environment and Forests, Economic Relations Division, Ministry of Finance, Ministry of
44
Planning; two representative from Contributing DPs; two representatives from civil society, and
the Country Director of the World Bank as an observer. The primary responsibilities of the
Governing Council are to provide advisory guidance on the program’s strategic goals and
alignment with BCCSAP, establishing grant criteria, and high-level issues such as, transfer of
fiduciary management responsibility to GoB; to oversee overall management and utilization of
BCCRF; approve projects to be funded by BCCRF and review results envisaged by the BCCRF.
7.
The Management Committee is a technical committee chaired by the Secretary, MoEF
and includes two representatives from MoEF, one representative each from Economic Relations
Division and Planning Commission, two representatives from contributing DPs, a representative
each from the World Bank and civil society.
8.
The primary responsibilities of the Management Committee are to review and endorse the
BCCRF work program and budget allocations; carry out a detailed review of grant requests
submitted by the secretariat; ensure that grant requests submitted are in-line with the agreed
policies and procedures; review and endorse the reports prepared by the BCCRF Secretariat for
submission to the Governing Council as well as for public dissemination. This high-level
Management Committee established for BCCRF will provide strategic direction, undertake
annual review of project implementation and address any issues hampering the progress. The
CCF, Project Director, and ED of AF are expected to join the Management Committee meeting
in which the project will be reviewed and discussed.
9.
Bank is responsible for ensuring adequate fiduciary management, transparency and
accountability in executing BCCRF and the projects funded are implemented with due regard to
economy, efficiency and effectiveness. Bank is also providing some analytical and advisory
support for implementation of BCCSAP via BCCRF.
10.
An Implementation Manual detailing the governance and operational mechanism for
BCCRF was agreed between GoB, DPs and WB. BCCRF became operational with the first
Management Committee meeting held in February 2011.
Project Steering Committee
11.
A Project Steering Committee (PSC) will be formed by MoEF and the Secretary of
MoEF will chair the PSC. The PSC will comprise of relevant Government Officials (MoEF,
other relevant Ministries, Economic Relation Division ERD, Planning Commission PC,
Implementation Monitoring and Evaluation Division IMED, Bangladesh Forest Department
etc.), a representative from the World Bank, Executive Director of AF. The PSC can co-opt
additional members from civil society organizations having relevant experience. The committee
will meet at least once a year, if possible, twice a year to take stock of progress of the project and
provide implementation advice, guidance and policy directions. The key responsibilities of the
PSC will be:
 To provide oversight, policy guidance and approve the project’s Annual Work Plan
and Budget;
 To facilitate inter-agency coordination to ensure compliance and adherence to the
project’s development objectives;
45



To resolve disputes or conflicts related ``to the project, if any;
To approve any policy, regulatory and institutional recommendations from the
project.
To approve changes in the project implementation arrangements, if requires.
Project Implementation Committee (PIC)
12.
A PIC at BFD will be formed to ensure overall coordination of project implementation.
ED of AF will be also a member of the PIC. The PIC, chaired by the Chief Conservator of
Forests (CCF), will be responsible for: (i) reviewing the quarterly and annual progress of the
project based on reports prepared by the PIU and AF; (ii) guiding the PIU and AF on
implementation; (iii) reviewing and approving updated procurement plans and interim un-audited
financial reports (IUFRs); and (iv) making independent field visits to the project areas to assess
field implementation. The proposed composition of the PIC is as follows:









Chief Conservator of Forest, BFD
Chairman
Deputy Chief Conservator of Forest, Planning Wing, BFD
Member
Deputy Chief Conservator of Forest, Education & Training Wing, BFD Member
Conservator of Forests, Chittagong & Barisal
Members
Deputy Chief, MoEF
Member
Concern Desk Officer, MoEF
Member
Representative from Implementation Monitoring and Evaluation
Division (Agricultural Rural Development and Research Sector)
Member
Representative from Arannayk Foundation
Member
PD, PIU, BFD
Member Secretary
Project Implementation Unit (PIU)
13.
A full-fledged PIU headed by a Project Director (Conservator of Forest or Deputy
Conservator of Forest) will be established within BFD. The PIU will be equipped with relevant
qualified specialists (Financial Management Specialist, Account Specialist, Procurement
Specialist26), compensated at market value. A Project Manager (Forestry Expert) will be hired to
coordinate the day-to-day managerial activities, provide technical guidance and input for
different components. The project will have provision for need-based consultants to provide
technical input and review different reports produced by the firm consultants. BFD officials will
work closely with specialists and will receive appropriate on-job training to develop individual
and institutional capacity to design and implement large scale projects.
14.
BFD’s ten Divisional Forest Offices headed by the forest officers and will be responsible
for implementation activities on ground. Each DFO will be supported by one Community
Mobilization Officer (Junior Consultant) and one Account Officer (Junior Consultant) through
project financing.
26
Procurement Specialist will be hired for 36 months.
46
15.
As per BFD procedures, 3 Forest Circle Offices (Chittagong Circle, Coastal Circle &
Social Forestry Circle) will supervise 10 Forest Division Offices activities at the field level. In
addition, 2 Management Plan Divisions located at Chittagong and Khulna will monitor the
afforestation and reforestation program regular basis.
16.
AF will be the implementing agency for component 2. AF has experience in promoting
alternative livelihoods activities in protected, wetland and forest areas through capacity building
and providing grant funds to groups to match their savings for establishing revolving funds for
individual loans. It provides financial grants to organizations (i.e., NGOs, Universities and local
government agencies) to implement field-based projects in or around forests.27 AF will have
limited staff at the Secretariat to support implementation of the project, but will use part-time
professionals as required. A full-time Project Manager will be recruited by AF. AF plans to
contribute $200,000 in cash for the component 2 of the project.
17.
The PIU will support AF in implementing component 2 and will be responsible for its
coordination with other project activities. AF will recruit specialized NGOs to implement the
component in the project area. The process will take place according to specific IDA
procurement guidelines, including call for proposals, evaluation, field verification and grant
agreement. The NGO staff input, cost of logistics and other administrative cost will be part of
the NGO proposal. AF Secretariat will conduct periodic monitoring of project implementation
and will review progress against work plan, budget and other terms and conditions of the grant
agreement by undertaking field visits. The NGOs will submit quarterly, annual progress reports
and completion report to AF Secretariat.
18.
Table 3.1 summarizes the key tasks, educational qualification and experience required for
the key PIU officials and consultants.
27
By 2010, AF funded 57 grants, of which 30 were completed by 2009 and 27 were ongoing in 2010. Typically, a grant covers about $100,000
over a period of 1-3 years.
47
Table 3.1: Terms of Reference (TOR) for key PIU Staff and Consultants
Position
Key Tasks
A. Bangladesh Forest Department (BFD)
Project Director • Provide overall leadership to a team comprising
(PD)
staff and consultants in carrying out project
activities, including procurement and financial
management, reporting directly to the Project
Implementation Committee
• Plan, implement, manage, supervise, monitor, and
coordinate all project activities
• Coordinate with the Divisional Forest Officers
• Be responsible for regular reporting on project
activities to IDA
Assistant
• Assist the Project Director in overall monitoring
Conservator of
and evaluation of the project activities especially
Forest (ACF) the afforestation and reforestation.
01
• Working as the Procurement Focal Point of BFD
in the Project and work with the Procurement
Specialist in updating the procurement plan,
preparing bidding documents and requesting for
proposals, short-listing consultants, coordinating
bid evaluation committee meetings, facilitating
evaluation of bids/proposals and awarding
contracts
• Assist PD in procurement monitoring at the field
level
• Report directly to PD
Assistant
Conservator of
Forest (ACF) 02
• Assist the Project Director in overall monitoring
and evaluation of the project activities especially
the field office rehabilitation/reconstruction and
technical studies.
• Working as the Financial Management Focal Point
of BFD in the Project and work with the Financial
Management Specialist and Accounts for
preparing consolidated financial management
Education/ Qualifications
Experience and Skills
• Post- Graduation (Masters)
preferably in the field of
forestry or natural resource
management or related field
• Trained in forest resource
planning and management.
• Trainings on project
management, procurement and
FM are additional advantages
• Minimum 10 years’ experience in
project/program planning,
management and monitoring and
evaluation
• At least 5 years forestry experience
• Proficiency in writing and speaking
English
• Basic computer skills (Word, Excel,
etc.)
• Post- Graduation (Masters)
preferably in the field of
forestry or natural resource
management or related field
• Training on procurement is
preferable (Otherwise, to be
trained within 3 months)
• Minimum 5 years’ experience of
project/program monitoring and
evaluation
• Proficiency in writing and speaking
English
• Basic computer skills (Word, Excel,
etc.)
• Post-Graduation (Masters)
preferably in the field of
forestry or natural resource
management or related field
• Training on Financial
Management is preferable
(Otherwise, to be trained within
3 months)
• Minimum 5 years’ experience of
project/program monitoring and
evaluation
• Proficiency in writing and speaking
English
• Basic computer skills (Word, Excel,
etc.)
48
Position
Key Tasks
reports
• Assist PD in Financial Monitoring at the field
level
• Report directly to PD
Education/ Qualifications
Experience and Skills
Project
Manager (PM)
• Coordinating day-to-day activities under the
project to ensure the quality of implementation and
ensure the required process and procedures
• Act as the Team Leader of the Individual
Consultants working in the PIU
• Organize monthly meetings
• Prepare progress reports and annual work plans for
submission to the National Steering Committee
• Extend secretarial service to the Steering
Committee
• Prepare and distribute consolidated, periodic
reports
• Take actions and monitor project activities
• Ensure the timely preparation and submission of
annual audit report
• Ensure accurate and timely compilation of project
indicators by each implementation team.
• Assist the Project Director to prepare project
progress reports two weeks prior to each World
Bank Implementation Review mission;
• Facilitate the preparation of the World Bank
standard Project Implementation Completion
Report (ICR).
• Facilitate procurement of goods and services, etc.
• Post-Graduation (Masters) on
Natural Resource, preferably
Forestry
• Trained in project management,
and M&E
• Minimum 7 years as Project
Manager/Project Director/Project
Coordinator or donor funded project
implementation experience for at
least 10 years
• Experience in forestry sector is
preferred
• Demonstrated capacity to work in
foreign aided projects in a team
environment
• Proficiency in writing and speaking
English
• Basic computer skills (Word, Excel,
etc.)
Financial
Management
Specialist
(FMS)
• Operate of the project financial implementation
system following the WB guideline for the project
• Conduct financial and budget planning, Cost
accounting, auditing, etc. under the Supervision of
PD and Project Manager
• Post-Graduation (Masters) in
Accounting, Finance, MBA or
Post Graduation (Masters) with
Accounting Credibility
• Professional accounting
• Minimum 10 years as financial
management specialist or similar
position, preferably with IDA
project
• Have had hands-on experience in
49
Position
Procurement
Specialist (PS)
Key Tasks
• Introduce computerized accounting system
• Prepare of accounting and reporting and fund flow
for the project spending units and design reporting
format
• Monitor and ensure budget implementation
progress
• Ensure timely and efficient administration of
allocated funds and monitor flows of funds from
Bank to the project following appropriate
procedures
• Ensure control and management of proper records
of project assets and purchases, including
inventory records.
• Prepare annual and quarterly disbursement
forecasts and consolidate financial reports.
• Prepare of reports and supporting documents for
the external audit and internal audit in conjunction
with the Procurement Specialist
• Prepare and design a plan for implementing
computerized accounting system
• Report to PM and PD
• Prepare and update the procurement plan in
consultation with the PD and PM
• Consolidate requests for procurement of goods and
services.
• Prepare procurement documents such as request of
expression of interest, bidding document, and
request for proposals according to the IDA
Procurement Guidelines.
• Act as secretariat of Technical Evaluation
Committee (TEC), Proposal Evaluation
Committee (PEC) and Tender Opening Committee
(TOC)
• Ensure required approval in the government
system and also no-objections from World Bank
Education/ Qualifications
qualification CA, CMA, ACCA
etc. are preferable
• Trained on operating Financial
Implementation Software
Experience and Skills
Microsoft or similar computerized
Accounting
• Proven track record of ability to
develop a Chart of Accounts
befitting the relevant computerized
accounting system and the report
• Strong interpersonal communicative
skills, experience in team leadership
and participatory management
• Ability to impart training to the
project staff on financial
management system
• Proficiency in writing and speaking
English
• Basic computer skills (Word, Excel,
etc.)
• Post-Graduation (Masters) in
Accounting, Finance,
Economics, MBA or B.Sc.
Engineering
• Advanced
academic/professional
qualification(s) in
procurement/purchasing and
supply chain or membership of
renowned institution(s) in the
field of
procurement/purchasing and
supply chain will be given
preference
• Minimum 10 years working as
Procurement Specialist or Similar
position, preferably with IDA
project.
• Experience in preparation of
procurement plans for Government
projects, bidding documents, RFPs
and evaluation reports following
donor agencies’ guidelines shall be
an added advantage
• In depth knowledge of technical,
commercial and legal aspects of
procurement in development
projects, financed by Government
50
Position
Key Tasks
for procurement documents
• Act as a member of the central committee(s) for
bids/proposals evaluation.
• Facilitate awarding of contracts
• Review procurement activities conducted in the
field level.
• Provide on the job training to the PFPs and other
filed level staffs dealing with procurement to build
their procurement management capacity.
• Coordinate and manage contract awards and
ensuring submission of contract award information
to Central Procurement Technical Unit- CPTU (all
contracts) and to IDA (for prior-review contracts)
• Prepare procurement performance monitoring
report on a regular quarterly basis
• Track progress of procurement activities against
the plans and highlight variations in progress,
record reasons and identify remedial actions
• Report to PM/PD
Communication • Review and assessment of the current state of
/Information
public awareness and education related to the
Specialist
participatory forest management and to reduce the
degradation of the forest resources
• Review the work of the firm consultant on the
communication strategy development, the design
and implementation of public awareness
campaign and the web design
• Maintain regular communication with media,
NGOs and other stakeholders and disclose
information in public domain
• Prepare brochure, leaflet, newsletter on project
activities
• Advise the project management on media issues
• Report to PM and PD
Accounting
• Manage disbursement of loan proceeds following
Education/ Qualifications
Experience and Skills
and the World Bank is preferred
• Proficiency in writing and speaking
English
• Basic computer skills (Word, Excel,
etc.)
• Post- Graduation (Masters) in
communications, journalism,
public relations, social
sciences, international
relations, or a related field
• A minimum of 3 years’ experience
in communications at the national
or international level, including
experience in media relations
• Experience in natural resource
management is added advantages
• Excellent communication skills in
English and Bangla, both written
and spoken
• Basic computer skills (Word, Excel,
etc.)
• Post- Graduation (Masters) in
• Minimum 5 years in project
51
Position
Expert
Key Tasks
the WB guidelines and in conjunction with the
relevant ministry
• Establish and manage the project Special Account
(including the preparation of account statements)
Maintain Books of Account
• Regularly review the books of accounts of field
level Accountant
• All other works related to project accounting and
financial management under direct supervision of
PD, PM and FMS
Accountant
(10
Accountants
will be based in
10 Divisional
Forest Offices)
• Responsible for maintaining the accounts for the
• Bachelor (Graduation) in
project at Divisional level
Accounting, Finance, BBA or
• Guide and train the field level staff for maintain
graduation with accounting
the financial records as World Bank Guidelines
credibility
• Carryout field cross-checking for the payments
made against physical progress
• Prepare monthly accounts report and submit the
report to the respective DFO
• Work under supervision of DFO, Account Expert
and FMS
• Support DFO in implementation of the
• Post- Graduation (Masters) in
participatory afforestation and reforestation
Social Science.
program
• Trained on participatory
• Facilitate the beneficiary selection process
approach
through open public meeting
• Liaison with AF and NGOs for alternative
livelihoods activities
• Coordinate with Union Parishad and field level
forest offices
• Work closely and monitor the community training
and awareness campaign program
• Support environmental and social screening and
monitoring
• Work under supervision of DFO and PM
Community
Mobilization
Officer (CMO)
(10 CMOs will
be based in 10
Divisional
Forest Offices)
Education/ Qualifications
Accounting, Finance,
Economics, MBA or Post
Graduation (Masters) with
Accounting Credibility.
• Trained on Financial
Management/Accounting
software application
52
Experience and Skills
accounting and financial
management or similar
responsibilities, preferably with
IDA/ Donor project.
• Ability to work in foreign aided
projects in a team environment
• Proficiency in writing and speaking
English
• Basic computer skills (Word, Excel,
etc.)
• Minimum 3 years as Accountant or
Similar position, preferably with
IDA/ Donor project.
• Ability to work in foreign aided
projects in a team environment
• Proficiency in writing and speaking
English
• Basic computer skills (Word, Excel,
etc.)
• Minimum 3 years in the field of
Community mobilization or similar
works, preferably with IDA/Donor
project.
• Experience in participatory rapid
assessment, focus group discussion,
participatory monitoring etc.
• Ability to work in foreign aided
projects in a team environment
• Proficiency in writing and speaking
English
• Basic computer skills (Word, Excel,
etc.)
Position
Key Tasks
Arannayk Foundation Secretariat
Project
• Guide and coordinate NGO-based project teams in
Coordinator
all matters pertaining to the smooth operation of
(PC)
the Project according to the Project Document and
Project Implementation Manual
• Coordinate with PIU of BFD and other
stakeholders associated with the different
components
• Mobilize necessary technical support and material
inputs from relevant resource organizations
(public, private, NGO) to promote alternative
livelihoods development of the forest-dependent
communities
• Oversee the preparation and implementation of
results based monitoring of the project
• Provide backstopping support in implementation
of training program
• Provide backstopping support in implementation
of training program
• Provide backstopping support in preparing annual
plan of operation of NGOs
• Prepare various technical reports of the project
• Document success stories and identify weakness
and potential areas for improvement
• Prepare quarterly and annual progress reports
• Work closely with AF Secretariat Staff, especially
under the guidance of the Senior Program Officer
and the PC shall be reportable to the Executive
Director of AF
Education/ Qualifications
Experience and Skills
• Post- Graduation (Masters) in
Natural Resource Management
or any other related discipline
• With sound knowledge of
contemporary issues in
participatory forest
management and (rural)
livelihood development in
Bangladesh.
• Minimum 5 years’ experience in a
similar position in a relevant
institution
• Proven skills in the management
and coordination of NRM project
Familiarity with the ‘Social Forestry
Rules’ and modalities of
implementing social forestry
projects in partnership with the
Forest Department
• Proven skills in participatory
methods and tools are essential.
• Ability to work in foreign aided
projects in a team environment
• Proficiency in writing and speaking
English
• Basic computer skills (Word, Excel,
etc.)
53
Financial Management, Disbursements and Procurement
Financial Management (FM) Assessment
19.
A financial management (FM) assessment was carried out to evaluate the overall
financial management environment prevailing in the country and within implementing agencies
BFD and AF. The assessment also identified the financial management arrangements under the
proposed project would need to be in place to meet the Bank's fiduciary requirements in
accordance with OP/BP 10.02.
FM Arrangements
20.
The Bank will rely on the Government of Bangladesh’s existing accounting and control
systems, budgeting and auditing framework for implementation of this project. However, the
project will adopt the international best practices to improve the financial management system in
the project.
Budgeting
21.
The annual budgets for each fiscal year will be prepared individually by FM staff of PIU
at BFD and AF. These individual budgets will be consolidated by the PIU under the supervision
of the Project Director on the basis of the approved procurement and implementation plans. The
original and the revised budget proposals will be submitted to the planning wing of MoEF. The
Project Director will undertake due diligence in approving realistic budget to ensure that the
project implementation is not suffered by the budgetary constraints while taking adequate care
that only the resources needed for the proposed implementation is budgeted. Budget will be
prepared using the MS excel based accounting system that would be place until the computerized
accounting system is adopted and made operational. Actual expenditures incurred under this
project will be monitored against this budget for each quarter; budget variances and their rational
will be reported and discussed in the Interim financial reports (IFRs).
22.
Ministry of Finance (MoF) will monitor the budget implementation through issuance of
authorization for use of the designated account and quarterly release of GoB funds. Any genuine
necessary deviation from the budget will be met by obtaining the approval through the revised
Annual Development Plan.
Disbursement and Fund Flow:
23.
This project will be provided 2 (two) Designated Accounts- Convertible Taka Account
(CONTASA) in Nationalized Commercial Bank of the Bangladesh. The DAs ceilings are
specified in the Disbursement Letter. The recipient may request for advances up to the ceilings
based on the project needs. The applications for uses of the advances will be supported by
SOEs, and records (e.g. invoices) evidencing eligible expenditures for identified contracts in
accordance with the Disbursement letter. This would be converted to IFR-based disbursement at
the option of GoB and the Ministry after the project successfully demonstrates capacity to
generate quality and timely IFRs. In addition, the project will be given flexibility to use other
54
disbursement methods including Reimbursement, Direct Payment, and issuance of special
commitment.
24.
(i) Designated Account A: This account will be opened by PIU and the Project Director
or any officially designated official of BFD will be authorized to operate/withdraw funds from
this Designated Account to implement the Component 1, 3 and 4 of this project.
25.
Component 1, Afforestation and Reforestation Program: This component will be
implemented by PIU in close coordination with ten (10) division forest offices. A separate bank
account for this project will be opened by each division forest office and the funds from the
Designated Account-A will be transferred into these individual bank accounts. These forest
offices are headed by the division forest officers (DFOs) and they will be authorized to
operate/withdraw funds from this bank account. The expenditures incurred by the division forest
offices will paid from these individual bank accounts.
26.
The project will engage the services of local communities for afforestation and
reforestation activities. The funds will be withdrawn from the respective bank accounts of the
division forest office by the Range Officer for payments to the local community labors, local
transportation cost, purchase of planting related materials and collection of seeds. The amount
withdrawn by the Range Officer will be accounted as an advance in the books of accounts and
the expenditure against the same must be within 15 days. The funds that have remained
undisbursed will be adjusted from the next cash advance. The DFO and Assistant Conservator of
Forests will periodically monitor the payments made by the Range Officers.
27.
Component 3, Capacity Development for Forest Resource Planning and
Management: The expenditures under this component will be incurred at the central PIU level
towards soft activities i.e. consultancies, training and workshops and the payments will be made
directly from the Designated Account-A.
28.
Component 4, Project Management: The expenditures under this component will be
incurred at the central PIU level to support the establishment/operating costs of the PIU
including salaries of the personnel appointed for this project. The payments will be made
directly from the Designated Account-A except for salaries and travel cost of field based CMOs
and Accountants. The payment of CMOs and Accounts Officer will be made from the bank
account of the respective divisional office.
29.
(ii) Designated Account B: This account will be opened by AF and the person
authorized by the Board of Directors will operate/withdraw funds from this Designated Account
to implement the component 2 of this project.
30.
Component 2: Alternative Livelihoods to support Forest Communities: Under this
component, the payments will be made to the specialized partner NGOs as per the terms and
conditions of the consultancy contract. In addition, the grants will be released by AF from the
Designated Account into the bank accounts of the target local communities in 200 communities
for distribution to 6,000 identified beneficiaries on the basis of community proposals appraised
by the NGOs. The NGO will also facilitate communities in the opening of bank accounts. The
55
communities on a periodic basis will prepare the progress reports on grant utilization and will be
reviewed and compiled by the NGOs for submission to AF.
Financial Reporting (IFRs):
31.
The project will submit 2 Interim Financial Reports (IFRs) to the Bank for the project
components implemented separately by BFD and AF. These IFRs will provide information on
the sources and uses of funds as per disbursement categories and project components. The
formats of Interim Financial Reports (IFRs) have been agreed by BFD and AF.
32.
(i) The IFRs of the component 1, 3 and 4 will be prepared by the PIU on the basis of
expenditures incurred by all cost centers (including division offices) and will be submitted to the
Bank within 45 days from the end of each calendar quarter. The amounts disbursed by PIU to
the individual bank accounts of the division forest offices will be recorded as advances in the
IFRs and will be reported as expenditures only on receipt of the utilization certificates. The
process on monitoring of advances will be detailed out in the project implementation manual.
33.
(ii) The IFRs of the component 2 will be prepared by AF on the basis of expenditures
incurred and will be submitted to the Bank within 45 days from the end of each calendar quarter.
The amounts disbursed to the NGOs, as per the terms and conditions of the contract and grants
released into the bank accounts of the target local communities in 200 communities will be
reported as expenditures in the IFRs.
Accounting and Financial Controls
34.
The Treasury Rules and General Financial Rules of the Government and existing chart of
accounts/ economic codes followed in Government’s iBAS accounting system will be used for
the accounting and financial controls by PIU. There are clear guidelines prescribed by the
Ministry (MoEF) for the authorization and approval of financial transactions. The MoF’s
existing financial powers, authority and payment responsibility outlined for the development
projects will be followed meticulously by PIU for this project. The DFO is the treasurer and also
drawing and disbursement officer for respective division under BFD. In order to improve the
accountability and transparency of the financial system, the concept of forensic accounting will
be introduced into this project.
35.
Component 1, 3 and 4: Separate books of accounts and registers will be maintained for
this project by the PIU and the division offices. The project will follow cash basis of accounting
to record the project expenditures using double-entry bookkeeping principles and the
transactions will be supported by approved vouchers. The books of accounts will be initially
maintained manually. Within three months of the project effectiveness a computerized
accounting system (off –the-shelf package) will be procured by PIU and chart of accounts will be
configured to this software to generate the financial reports for PIU and divisional forest offices.
These financial reports will be used for the preparation of IFRs.
36.
The FM manual which will be part of the Implementation Manual will be ready by the
project effectiveness. This will provide complete details/procedures to be followed by the
56
project on the financial management arrangements: (i) Budgeting; (ii) Fund flows; (iii)
Accounting; (iv) Internal controls; (v) Financial reporting (quarterly IFRs); and; (vi) External
audit based on statement of audit needs agreed with Comptroller and Auditor General (C&AG)
of Bangladesh.
Funds Flow
Information Flow
Steering Committee chaired
by Secretary MoEF
World Bank
Project Implementation
Committee chaired by CCF
Project Office-AF
PIU-BFD
Designated A/C-B
Designated A/C-A
Component 2
Component-3 & 4
Vendors
Component 1
DFO’s
NGO Bank
A/C
Community
Bank A/C
Range Officer
Beat Officer
Implementing
Activities
37.
Component 2: The AF currently has a computerized accounting system in place which is
being used by the entity. There are effective checks and balances, with adequate audit trails in
place to account, record and report the financial transactions. It has been agreed with the entity
57
that a separate module/field will be opened for recording of the expenditures incurred for this
project. The quarterly IFRs will be prepared based on the financial details/trial balances
generated from this system.
Staffing
38.
It has been agreed with the project that the staff strength of the finance section will be
increased at the PIU through appointment of one qualified FM consultant; and one account
officer. These staff members will be adequate to maintain appropriate records for the project
expenditures, coordination with the respective division forest offices, preparation of IFRs and
project financial statements etc. In addition, the staff strength at the divisional forest offices will
be increased through appointment of one Accountant at each location who will work under the
close supervision of the division forest officer and will support the office in maintenance of
books of accounts, submission of periodic reports to the PIU. The job descriptions and the
requisite qualifications for these staff positions will be specified in the ToRs. Appropriate
provisioning for these staff positions have been made under this project. These selected staff
will be provided adequate training in financial management and disbursement related aspects to
meet the Bank’s minimum requirements.
39.
The finance staffing at the AF is adequate and it has been agreed that the existing finance
staff will provide support for this project. The finance manager in AF will be the overall incharge for the financial management aspects of this project.
Internal Audit:
40.
The Chartered accounting firm(s) will be engaged to carry out audits in accordance with
ToRs in agreement the Bank. The firm will be selected through appropriate competitive process
to be initially reviewed by the Bank. The audit will cover the expenditures incurred under all the
project components with a special focus on the amounts disbursed and spent by the division
forest offices.
41.
Since a large part of the funds under component 1 are being spent in cash by 10
divisional forest offices (DFOs) for afforestation and reforestation activities, the scope of the
audit will be comprehensive and involve field-level review of financial operations and efficiency
of the internal control arrangements. The project performance, operational aspects including the
element of forensic accounting will also be covered under the audit.
42.
The audits will be conducted semi-annually and will provide feedback to the project
management on any control weaknesses and issues, if any, that require management attention.
PIU at BFD and AF will take effective steps to address the weaknesses highlighted by the
auditors. It has been agreed that the internal audit reports along with the corrective actions taken
by the project to address the control weaknesses (if any) will be shared with the Bank.
58
External Audit:
43.
The C&AG have mandate to conduct the audit for all the donor-financed projects in
Bangladesh. The annual external audit for the Component 1, 3 and 4 of this project will be
carried out by the C&AG through its Foreign Aided Project Directorate (FAPAD). A Statement
of Audit Needs (SAN) will be agreed with FAPAD within 6 months of the project effectiveness.
The PIU will be responsible for providing the audit report, project financial statements and
management letter to the Bank within six months from the end of the each fiscal year (July 01 to
June 30).
44.
The audit report for the component 2 of this project will also be carried out by the C&AG
through its Foreign Aided Project Directorate (FAPAD). A Statement of Audit Needs (SAN)
will be agreed with FAPAD within 6 months of the project effectiveness. The Arannyak
Foundation (AF) will be responsible to submit the audit report, project financial statements and
management letter to the Bank within six months from the end of the each fiscal year (July 01 to
June 30).
45.
The following audit reports will be received by the Bank and will be monitored in Audit
Report Compliance System (ARCS):
Table 3.1: Audit Reports Schedule
Implementing
Audit Report
Agency
PIU, BFD
Audit report and project
financial statements
AF
Audit report and project
financial statements
Auditor
Due Date
C&AG of
Bangladesh
C&AG of
Bangladesh
December 31,
of each year
December 31,
of each year
Project Audit Committee:
46.
To ensure that the audit reports provided by the internal, operational and external audits
of the project have met ToRs and reports have been reviewed and audit recommendations have
regularly been followed up, a project audit committee will be set up under this project and will
meet at-least twice in a year. This committee will report its findings to the Project Steering
Committee.
Retroactive Financing:
47.
The project has requested for a retroactive financing of $200,000. It has been agreed
with PIU that the payments made from August, 2012 till signing date will be eligible for Bank
financing, provided; (i) these activities are included in the project description/costing; (ii) the
procurement procedures of the Bank are appropriately followed to finance such expenditures;
and, (iii) these expenditures will be audited and a combined audit report for the first year
(covering expenditures for retroactive and proactive period) will be submitted to the Bank.
59
Public Disclosure:
48.
In line with the Bank’s Access to Information policy, it has been agreed with BFD and
AF that the annual audit report and project financial statements of this project issued by the
C&AG of the Bangladesh and Private Auditor will be disclosed in the implementing agencies
website.
Project Supervision:
49.
During the initial stages of project implementation, the FM supervision will focus on
compliance with the agreed action plan, including training on FM related aspects and addressing
any disbursement related issues. As implementation progresses, the supervision would involve
six monthly field visits to review the adequacy of the agreed Financial Management
arrangements, reviews of SOEs, IFRs, internal and external audit reports etc.
Financial Management Action Plan:
50. The following actions have been agreed with the implementing agencies:
Table 3.2: Financial Management Action Plan
SL.
No
1
Agreed Actions
Required clearance and formalities for project
bank account opening
Responsible
Due Date
BFD and AF in
coordination with
MoEF, MoF
BFD and AF
Within 2 months of
Negotiations
2
Develop formats of Interim Financial Reports
(IFRs) in consultation with Bank
3
Appointment of one qualified FM consultant and
Account officer in PIU-BFD and 10 Accountant
in DFO under ToRs acceptable to the Bank.
Procurement of computerized accounting system
(off the Shelf) for PIU and Divisional Forest
Offices
ToRs for Internal Audit acceptable to the Bank
PIU-BFD
6
An agreement on Statement of Audit Needs with
C&AG (FAPAD) acceptable to Bank
7
Training to PIU-BFD and DFO’s on Financial
Management aspects
PIU-BFD and AF
in coordination
with C&AG
Bank
4
5
60
Prior to Negotiations.
(Discussed and agreed
in Negotiations)
Within 2 months of
project effectiveness
PIU-BFD
Within 3 months of
project effectiveness
PIU-BFD
Within 6 months of
project effectiveness
Within 6 months of
project effectiveness
Within 3-4 months
from project
effectiveness
Procurement
51.
Total value of the project is US$35 million; BCCRF’s projected contribution is US$33.8
million. Procurement under this project will largely involve consultancy services, nonconsulting services, goods and works. Procurement for the proposed project would be carried
out in accordance with the World Bank’s “Guidelines: Procurement of Goods, Works, and Nonconsulting Services under IBRD Loans and IDA Credits & Grants by World Bank Borrowers”
dated January 2011 (“IDA Procurement Guidelines”) and “Selection and Employment of
Consultants under IBRD Loans and IDA Credits & Grants by World Bank Borrowers” dated
January 2011 (“IDA Consultant Guidelines”) as well as the provisions stipulated in the Grant
Agreement. For each contract financed by the grant, the respective procurement or consultant
selection method, the requirements on prequalification, cost estimate, prior review and time
frame are agreed between the Borrower and IDA within the Procurement Plan. The Procurement
Plan will be updated semi-annually or as required to reflect actual project implementation needs
and improvements in the capacity of BFD and AF.
52.
The assessment of BFD’s procurement covered the legislative framework, procurement
planning, procurement processing, organizational functions and staffing, internal control and
support system, record keeping, and contract administration. The following weaknesses were
identified: (i) inexperience with IDA-financed projects except the recently commenced
Strengthening Regional Cooperation for Wildlife Protection Project (P121210); (ii) absence of
dedicated procurement staff within the agency to deal with procurement activities; (iii)
inadequate capacity for administering large and complex contracts; (iv) absence of processes for
handling complaints; (v) vested interests; and (vi) political intervention. In addition, the areas
comprising information dissemination, delivery follow up and payments will need to be
improved.
53.
The assessment of AF’s procurement covered the policy framework, procurement
planning, procurement processing, organizational functions and staffing, internal control and
support system, record keeping, and contract administration. The following weaknesses were
identified: (i) inexperience with projects funded by Government funds or multilateral
development banks (MDBs); (ii) absence of dedicated procurement staff within the agency to
deal with procurement activities (very lean organization – required staff are hired on project
basis and requirement); (iii) inadequate capacity for administering large and complex contracts
(historically largest contract administered by AF costs less than $100,000); (iv) absence of
processes for handling complaints; (v) absence of documentation policy (except financial
records); and (vi) unfamiliarity with bidding documents of IDA or Government (Central
Procurement Technical Unit- CPTU).
54.
In view of the weaknesses and the relative size of the contracts envisaged under this
project, the project is rated as “high risk” from the standpoint of procurement operation and
contract administration. Several measures to mitigate the risks are either in place or will be put
in place as described below. The procurement arrangements are described in the following
paragraphs.
61
55.
Measures completed during project preparation include: (i) agreement with the agency
that most of the procurement will be centralized under the project implementation agencies,
namely BFD and AF; (ii) delegation of one person from each agency as Procurement Focal Point
(PFP) during project preparation and to work on procurement issues and report to PD on all
procurement matters during project implementation; (iii) finalizing the Procurement Plan during
appraisal mission; (iv) agreement on the Procurement Performance Monitoring Report (PPMR)
for procurement risk mitigation; and (v) incorporation of the PPMR into the Government’s
Development Project Proposal (DPP) for BFD component and the project proposal document for
AF.
56.
Measures envisaged for grant effectiveness include: (i) Assigning PFPs; (ii) hiring a
procurement specialist/consultant with experience in international procurement of projects
financed by MDBs or bilateral development partners to support the BFD and AF on procurement
activities and guide PIU and AF on procurement issues for 36months with provision of extension
based on requirements.
57.
The following measures would be carried out during implementation: (i) PFPs would
undergo national (and if practicable, international) level procurement training before significant
procurement takes place; (ii) BFD will submit semiannually Procurement Performance
Monitoring Report (PPMR) status report to IDA starting from six months after project
effectiveness; (iii) The procurement consultant will be a mandatory participant in the
bid/proposal evaluation committees; (iv) For contracts following IDA’s Procurement or
Consultant Guidelines, the latest editions of publicly available Standard Bidding Documents
(SBDs) and/or Request for Proposal (RFP) shall be used. For all contracts (either prior review or
post review), IDA’s standard format for evaluation report (or model format agreed with IDA)
should be used; (v) IDA will organize procurement orientation or training workshops as and
when required to enhance the procurement capacity of the project staff and members of the
evaluation committee; and (vi) The procurement plan will be updated semi-annually or as
required.
58.
Methods for procurement of goods, works and non-consulting services. Except as
otherwise agreed in the procurement plan, works and goods and non-consulting services may be
procured on the basis of International Competitive Bidding (ICB). Procurement of goods, works
and non-consulting services with an estimated value that falls below the ceiling stipulated in the
Procurement Plan may follow National Competitive Bidding (NCB) and Shopping (RFQ).
Direct Contracting (goods/ works/ non-consulting services) and Single source Selection
(Consultants) would be allowed under special circumstances with prior agreement with IDA.
Force Account and Direct Cash Purchase following Bangladesh Procurement Rules, 2008
applicable mainly for payment of labor and goods respectively under participatory afforestation
and reforestation sub-component of the project. NCB would be carried out under IDA
Procurement Guidelines using procedures provided in Bangladesh Public Procurement Act 2006
(incl. 1st Amendment 2009) and the Public Procurement Rules, 2008 (as amended in August
2009) and use standard bidding documents satisfactory to IDA. The “Request for Quotation”
document based on the PPA is acceptable to IDA for local Shopping. NCB may be applied under
the following conditions: (i) post bidding negotiations will not be allowed with the lowest
evaluated bid or any other bids; (ii) bids should be submitted and opened in public in one
62
location immediately after the deadline for submission; (iii) rebidding will not be carried out
except only with IDA’s prior agreement; (iv) lottery in awarding contracts will not be allowed;
(v) bidders’ qualifications and experience requirements are mandatory; (vi) bids will not be
invited on the basis of percentage above or below the estimated cost and contract award will be
based on the lowest evaluated, compliant bid price from eligible and qualified bidders; and (vii)
single stage two envelope procurement system will not be allowed.
59.
Methods for procurement of consultant services. Consultant procurement will follow
IDA’s Consultant Guidelines. The following methods will be applied: Quality and Cost-based
Selection (QCBS), Quality-based Selection (QBS), Fixed Budget Selection (FBS), Consultants’
Qualification (CQ), Least Cost Selection (LCS), Selection of Individual Consultant (IC) and
Single Source Selection (SSS). The short list of consultants for services estimated to cost less
than US$200,000 equivalent per contract may be composed entirely of national consultants. For
selection of any consultant, IDA’s standard RFP including standard contract forms shall be used.
The Procurement Plan will specify the circumstances for using each specific method.
60.
Incremental operating costs. The term operating cost will include the incremental
overhead costs incurred by the (i) Project Implementation Unit and Divisional Forest Offices of
the Bangladesh Forest Department and, (ii) Arannayk Foundation for the implementation of the
project activities. These will cover the costs of incremental project staff, operations and
maintenance of vehicles (fuel, maintenance and insurance), renting of vehicles, office utilities,
office supplies and stationeries, unforeseen printing of materials, souvenirs, events, workshops,
rental of office buildings, bank charges, advertising costs or any other operational cost agreed
with IDA. This may not include salaries of permanent government officials that are paid out of
government’s own budget.
61.
Prior review thresholds. The Procurement Plan will set forth those contracts which
shall be subject to IDA’s prior review. All other contracts will be subject to post review by
IDA. The initial Procurement Plan agreed with the Borrower for the first eighteen (18) months
indicates the following prior review thresholds which will be updated annually. The thresholds
are based on the assessment of the capacity and performance of the implementing agencies and
will be reflected in the updated Procurement Plan as appropriate. The thresholds are applicable
to the following: (i) each contract for goods and works procured on the basis of ICB; (ii) the first
contract for goods purchased by each implementing agency following NCB, regardless of the
value, and thereafter, all contracts estimated to cost $300,000 equivalent or more, regardless of
the procedure; (iii) the first contract for works following NCB, regardless of the value, and
thereafter all contracts for works estimated to cost $2,000,000 equivalent or more, regardless of
the procurement method; (iv) each contract for consultant services provided by a firm estimated
to cost the equivalent of $200,000 or more; (v) each contract for services of individual
consultants estimated to cost the equivalent of $100,000 or more; and (vi) all contracts for
goods/works procured through Direct Contracting and all contracts for consultant services
procured under single source selection.
62.
Post review. To determine compliance with procurement procedures/methods/ Guidelines
mentioned above, IDA will carry out sample post reviews of contracts that are below the prior
review threshold. A post review (ex-post and procurement audit) of contracts below the
63
threshold will constitute a sample of about 20% of the post-review contracts in the project.
Procurement post-reviews will be done on annual or semi-annual basis depending on the number
of post-review contracts.
63.
Procurement Plan. The procurement plans for the project, prepared by BFD and AF,
have been reviewed and accepted. These plans will be updated semi-annually or as required to
reflect the latest circumstances. The following table indicates procurement of some major
contracts under the project at PIU-BFD and AF as agreed till the preparation period. The
procurement plan will be subject to public disclosure following project effectiveness.
64
Table 3.3: Procurement Plan – Goods (for BFD)
Sl.
No.
Contract
Package
Number
Contract Description
3
Unit
Qty/
Nos.
4
5
Estimated Price
in US$ ‘000
(Actual Contract
Price in Contract
Currency)
6
1
2
1
BFD/G1
Laptop & Printers
No
40 &12
2
BFD/G2
Vehicles (1 jeep and 1 pick-up)
No
3
BFD/G3
Motor cycles
4
BFD/G4
5
Procedure/
Method
Procurement
Guideline
(PPR / BG)
Prior
Review2
(Yes / No)
Planned Date
of Bid Opening
(Actual Date of
Bid Opening)
7
8
9
10
50
NCB
PPR
Yes
02/15/2013
2
142
NCB
PPR
No
03/01/2013
No
40
74
NCB
PPR
No
03/01/2013
Engine boats
No
40
148
NCB
PPR
No
03/01/2013
BFD/G5
Photocopiers and Multimedia
projects
No
12 & 2
32
NCB
PPR
No
03/01/2013
6
BFD/G6
Furniture
ls
ls
25
NCB
PPR
No
03/01/2013
7
BFD/G7
Air cooler
No
2
2
Shopping/RFQ
PPR
No
03/01/2013
8
BFD/G8
Equipment for RIMS upgrading
and ICT equipment for field
networking
ls
ls
210
ICB/NCB
BG
Yes
05/01/2014
Remarks
11
First NCB
contract
Table 3.4: Procurement Plan – Works (for BFD)
Sl.
No.
Contract
Package
Number
1
2
1
BFD/W1.1
- W1.5
Contract Description
3
Rehabilitation/ reconstruction
of field offices
Unit
Qty/
Nos.
4
5
Estimated Price
in US$ ‘000
(Actual Contract
Price in Contract
Currency)
6
Building
43
2707
65
Procedure/
Method
Procurement
Guideline
(PPR/ BG)
Prior
Review2
(Yes / No)
Planned Date
of Bid Opening
(Actual Date of
Bid Opening)
7
8
9
10
NCB
PPR
Prior
10/01/2013
Remarks
11
5 packages
Table 3.5: Procurement Plan – Services (for BFD)
Sl.
No.
Contract
Package
Number
Contract Description
Unit
Qty/
Nos.
Procedure/
Method
Procurement
Guideline
(PPA / BG)
Prior
Review2
(Yes / No)
Planned Date
of Bid Opening
(Actual Date of
Bid Opening)
5
single
Estimated Price
in US$ ‘000
(Actual Contract
Price in Contract
Currency)
6
375
1
1
2
BFD/S1
3
Climate Change Awareness,
Participation and Afforestation
awareness training and
Introductory package- Package
Contract.
Capacity Development
Specialist- Individual Local
4
contract
7
QBS
8
BG
9
Yes
10
04/01/2013
2
BFD/S2
mm
48
119
IC
BG
Yes
02/01/2013
3
BFD/S3
Technical Study for Land use
mapping, assessment and
monitoring of proposed
afforestation/reforestation sites
Technical Study for
strengthening RIMS and
development of Forest
Resource Assessment and
monitoring protocol
Technical Study for developing
communication strategy,
awareness campaign and webbased information
dissemination system
Technical Study for third party
monitoring
contract
single
400
QCBS
BG
Yes
04/14/2012
4
BFD/S4
contract
single
400
QCBS
BG
Yes
04/10/2013
5
BFD/S5
contract
single
150
QCBS
BG
No
02/15/2013
6
BFD/S6
contract
single
350
QCBS
BG
Yes
04/01/2013
7
BFD/S7
Resource Assessment
Specialist (Individual
International)
MIS/GIS Specialist (Individual
Local)
Technical Study for Review
Forest Master Plan and
different sectoral studies for
Forestry Master plan updating
mm
18
270
IC
BG
Yes
03/15/2013
8
BFD/S8
mm
39
120
IC
BG
Yes
02/15/2013
9
BFD/S9
contract
single
700
QCBS
BG
Yes
04/1/2013
66
Remarks
11
Sl.
No.
Contract
Package
Number
Contract Description
Unit
Qty/
Nos.
Procedure/
Method
Procurement
Guideline
(PPA / BG)
Prior
Review2
(Yes / No)
Planned Date
of Bid Opening
(Actual Date of
Bid Opening)
5
single
Estimated Price
in US$ ‘000
(Actual Contract
Price in Contract
Currency)
6
700
1
10
2
BFD/S10
3
Technical Study for developing
strategy, update Forestry
Master plan and prepare time
specific action plan
4
contract
7
QCBS
8
BG
9
Yes
10
12/1/2013
11
BFD/S11
Forest Management policy/
Institution (Individual
International)
Forest Management policy/
Institution (Individual
National)
Design, Supervision and
Monitoring Consultant for field
infrastructure
Project Manager (Senior
Individual Consultant)- 54 mm
mm
24
360
IC
BG
Yes
04/01/2013
12
BFD/S12
mm
45
140
IC
BG
Yes
12/15/2012
13
BFD/S13
contract
single
143
QCBS
BG
No
08/01/2013
14
BFD/S14
mm
54
186
IC
BG
Yes
03/15/2013
15
BFD/S15
Financial Management
Specialist (Senior Individual
Consultant)- 54 mm
mm
54
186
IC
BG
Yes
02/15/2013
16
BFD/S16.1
-16.10
Procurement Specialist (Senior
Individual Consultant) -36
months
Communication/Information
Specialist- 30 mm
mm
36
120
IC
BG
Yes
02/15/2013
17
BFD/S17.1
-17.10
mm
30
82
IC
BG
No
03/15/2013
18
BFD/S18
Accountant (Individual
Consultant)- 54 mm
mm
54
112
IC
BG
Yes
03/01/2013
19
BFD/S19.1
-19.10
Accountant (Individual Junior
Consultant) – 10 Nos- 540 mm
mm
540
447
IC
BG
No
02/01/2013
20
BFD/S20.1
-20.10
mm
420
339
IC
BG
No
02/15/2013
21
BFD/S21
Community Mobilization
Officer (Individual Junior
Consultant) – 10 Nos. 420 mm
Need based Individual
Consultants- 2mm
mm
2
5
IC
BG
No
12/15/2013
22
BFD/S22
Contract
Single
20
QCBS
BG
Yes
06/01/2013
Financial Audit Firm
67
Remarks
11
Table 3.6: Procurement Plan – Services (AF)
Sl.
No.
Contract
Package
Number
Contract Description
1
2
3
1
AF/S1
Project Coordinator
2
AF/S2
3
AF/S3
4
5
Unit
Qty/
Nos.
4
5
Estimated Price
in US$ ‘000
(Actual Contract
Price in Contract
Currency)
6
mm
54
Procedure/
Method
Procurement
Guideline
(PPA / BG)
Prior
Review2
(Yes / No)
Planned Date
of Bid Opening
(Actual Date of
Bid Opening)
7
8
9
10
60
IC
BG
Yes
01/31/2013
NGO for AIG activities (south)
1,550
QBS
BG
Yes
03/25/2013
1,157
QBS
BG
Yes
03/25/2013
AF/S4
NGO for AIG activities
(southeast)
AIGA Consultant
35
IC
BG
No
09/23/2013
AF/S5
Financial Audit Firm
12
LCS
BG
Yes
06/01/2013
68
Remarks
11
Social and Environment (including safeguards)
Social
Introduction
64.
The project is being prepared to help selected local communities in the coastal areas of
Bangladesh to improve their resilience to climate change impacts. Its operational objectives are
to (i) strengthen the institutional capacity of the Bangladesh Forests Department (BFD) and
selected communities in the coastal and hilly areas of the country for participatory afforestation
and reforestation; and (ii) increase the size of reforested areas in selected communities through
participatory afforestation and reforestation. The activities under Participatory Afforestation and
Reforestation will mainly focus on the degraded forest lands, marginal and fallow lands, and
most importantly on the newly accreted lands in the coastal areas. The target geographic areas
will be selected in 9 coastal districts. Plantation will also cover accreted offshore islands which
are not inhabited.28 In the hilly areas, the subprojects will target the core and buffer zones of the
Reserved Forest Lands of Chittagong and Cox’s Bazaar districts. The Afforestation and
reforestation program will create about 3.0 million workdays for the forest depended
communities.
65.
From social perspective it is observed that forestry-related interventions are often made
problematic by “elite capture” in community forestry or in cases of joint management. While
influential and richer people are often responsible for deforestation, it is documented that the
poorest living in and around the forests depend on forest-degrading livelihood activities like
collection and selling of fuel woods and other forest products. To guard against elite capture, the
project will support develop, test and introduce a modified beneficiaries’ selection process
decentralized to the Union Parishad level, with engagement of communities and local
government in a transparent, open and inclusive selection and decision making process.
66.
Component 2 is expected to bring positive socioeconomic impacts through creation of
jobs, transfer of knowledge and skills, and expanding income opportunities for the people living
in the project areas. It will also empower and strengthen social capital of poor, women,
vulnerable and marginalized members of forest dependent groups. The project will provide
technical and financial support to the selected forest communities to build sustainable livelihoods
without relying on illegal and unsustainable harvesting of forests and wetland resources. The
project will facilitate social mobilization of poor forest dependent households into groups,
engage them in afforestation and reforestation activities, provide them with relevant training, as
well as technical and financial support to improve their livelihoods.
28
Plantation in these islands will consist only of mangroves that have very little market value. As a result,
community involvement, which is based mainly on the benefit sharing incentives provided in the Social
Afforestation Rules, is highly unlikely.
69
Social Safeguard
67.
All plantation activities will be undertaken on available public lands under the BFD
control. These lands are not included in any on-going or planned projects. BDF has decided that
no private lands would be acquired for plantation, but has still agreed to adopt certain guidelines
to obtain private lands where they are absolutely necessary to maximize and sustain the benefits
of a given subproject, which are included in the SMF prepared for the project.
68.
Policy, Legal and Administrative Framework. It is likely that public lands may not be
free of encumbrances and that some of these lands may be under authorized and unauthorized
use, as well as not formalized for use by local peoples for living and livelihood.29 It is also likely
that some of the coastal districts, especially Cox’s Bazaar and Patuakhali, may have indigenous
peoples (IPs) living in settlements among local people. Social safeguards compliance
requirements therefore have been triggered WB Policies on Involuntary Resettlement (OP 4.12)
and Indigenous Peoples (OP 4.10). In the context of Bangladesh, indigenous people are referred
to as Tribal People.
69.
Social Management Framework. Although the compliance requirements would remain
unknown until specific subproject locations are identified and screened, BDF has prepared a
SMF to address any social safeguard issues that may arise due to the activities implemented
under the individual subprojects. Social safeguards will also be applicable to the Alternative
Livelihoods to Support Forest Communities component, to be implemented by AF and partner
NGOs. Consistent with the Bank’s OP 4.12 and OP 4.10, pertinent provisions of GoB’s Social
Forestry Rules 2004 (amended in 2011) and those of other DPs, the SMF proposes principles,
policies, guidelines and procedure to identify and address impact issues concerning involuntary
resettlement and indigenous peoples. The SMF will apply to the project as a whole and provide
the bases to determine applicability of the safeguard policies, and prepare and implement impact
mitigation plans like Resettlement Plans (RPs) and Tribal Peoples’ Development Plans (TPDPs)
as and when subproject activities are found to cause adverse impacts on public land users and
private landowners, as well as indigenous peoples. These safeguard policies, procedures and
instruments will also be integrated into the implementation of the Alternative Livelihoods to
Support Forest Communities component.
70.
The objective of the SMF is to ensure that subprojects are planned, designed, screened,
and implemented to enhance positive social outcomes from project activities; ensure
participation of the target communities, including poor, women, vulnerable and marginalized
groups, and proper selection of core afforestation/reforestation beneficiaries in a transparent,
socially inclusive and verifiable process. It aims to avoid or minimize negative social impacts,
prevent or compensate for loss of livelihood, which may result from displacement of public land
users and use of private lands, and severely restrict access to common property resources, and
ensure compliance with the relevant GoB policies and those of the World Bank on social
safeguards and social inclusion issues, including those with gender implications.
29
It was seen during field visits, plantation in one degraded hilly site (Chunati Range in Cox’s Bazaar) has been carried out without displacing the
two poor households that have been living in the site. Rather, they have been accepted among the beneficiaries. In another potential site (Kumira
Range in Chittagong), there is a small number of households living in the narrow strips of valleys between the hills. BDF has decided not to
displace them, but accept them as beneficiary of the plantation program.
70
71.
The SMF provides a framework of applicable policies, rules and regulations; guidelines
to be followed in order to use private and public lands, guidelines on the preparation of
indigenous people’s plans, consultation and communication, grievance redress and monitoring
and evaluation. It also provides screening mechanisms for specific sub-projects; beneficiary
selection methodology; institutional and implementation arrangements for the implementation of
the SMF via the site specific plans; and the process of clearances and disclosure required both for
the SMF and the site specific plans. The draft SMF has been disclosed on BFD and AF websites
(http://www.bforest.gov.bd/ and http://www.arannayk.org/otherdoc.php) for public comments on
May 17, 2012.
72.
Implementation and Monitoring. BFD will implement the project and ensure that the
SMF is implemented in its entirety or to the extent applicable for each subproject. Component 2
will be implemented by AF and its partner NGOs on the ground. Along with other project
activities, BFD and AF will supervise and monitor SMF implementation. AF will design,
supervise and monitor the income generating activities, and carry out periodic audit of the fund
utilization by CBOs during the project period. The PIU at BFD will be responsible for overall
supervision and monitoring of all activities under the alternative livelihoods subcomponent.
73.
Grievance Redress Mechanism: For effective impact mitigation and a fair resolution of
complaints, BDF will establish a grievance redress mechanism (GRM) for all subprojects
undertaken in a range, to address complaints and grievances about any irregularities in
application of the SMF guidelines for community consultation; impact assessment and
mitigation; beneficiary selection; plot size and quality; eviction from public lands; and other
personal/community concerns. Based on discussion and consensus, GRM will help to resolve
the issues/conflicts amicably and quickly to ensure unhindered project preparation and
implementation process. If resolution attempts at the Range level fail, the concerned Range
Officer will refer the complaints to the DFO or next higher authority along with the minutes of
the hearings. If a decision made at this level is found unacceptable by the aggrieved person,
DFO will refer the case to BFD with the minutes of the hearings at both range and division
levels. A decision agreed with the aggrieved person at any level of hearing will be binding on
BFD. SMF provides a suggested composition for the GRM.
74.
Safeguards Capacity: BFD has successfully implemented three Bank-supported forestry
sector projects during 1980 – 2001. However, most of the present mid-level staff, such as DFOs
and others who would support project preparation and implementation at the local level, are not
familiar with Bank-supported operations. Thus, there would be a need to train the present BFD
staff to the Bank procedures and requirements. On the other hand, with a network of partner
organizations AF has reasonable experience with promoting projects/programs on alternative
livelihoods for forest conservation. The latter will train partner NGOs, and they will train
participating FDG in screening of livelihood micro projects.
Environment
75.
Applicable Environmental Category and Safeguard Polices. The proposed project is
expected to make a positive long-term contribution to the environment such as protecting against
71
soil and water erosion, working as a barrier during cyclone and storm surge, reducing
atmospheric pollution and providing habitat for flora and fauna. The activities will be mainly
focus on the degraded forestland, marginal, fallow and newly accreted land in coastal and hilly
areas. The project has been classified as “Category B” considering risk associated with the site
clearance of plantation, species selection, use of fertilizer in the plantation program, minor
construction related disturbance and community level livelihood options in areas of high
ecological sensitivity and vulnerability. The Project has triggered three environmental safeguard
policies for environmental assessment (OP/BP 4.01), Natural Habitats (OP/BP 4.04) and Forests
(OP/BP 4.36). It has been agreed during project preparation, no pesticides or herbicides will be
used in the project.
76.
BFD and AF prepared an EMF that describes the general baseline condition and typical
environmental impacts from different types of activities during preparation, design, construction,
and operation. EMF also provides the guidelines to comply with national legislation and World
Bank safeguards policies, and defines the environmental requirements needed for
reconstruction/rehabilitation of infrastructure in the forest. In addition, EMF has laid out the
procedures for simple screening of the alternative livelihoods support activities and
environmental code of practice for various project activities.
77.
Activity Specific Environmental Safeguard Issues and Resolution Approach. The
afforestation and reforestation activities may create possible environmental issues from (i)
inappropriate site selection; (ii) plantation of non-native species; (iii) monoculture plantations;
and (iv) disproportionate use of fertilizer causing damage to sensitive and valuable ecosystem.
To safeguard against the possible environmental issues that may arise from the afforestation and
reforestation activities a three step resolution approach will be prepared and followed. The three
steps are (i) accumulation of site specific ecological baseline (ii) preparation of a plantation
guideline and (iii) development of environmental code of practice to mitigate the environmental
issues at any stage of project implementation and operation.
78.
Environmental issues such as deterioration of natural drainage system, sedimentation of
surface water, and cutting of trees may trigger from the rehabilitation/reconstruction of existing
field infrastructures. Without knowing the specific site and design of the infrastructure, it’s not
possible to ascertain the exact environmental impact. To avoid the probable adverse
environmental impacts the implementing agency has developed a construction related
Environmental Code of Practice (ECP) as part of EMF, which will delineate the methodologies
for site selection and construction to minimize the adverse environmental impacts due to
construction of infrastructure.
79.
The activities under Alternative Livelihoods to Support Forest Communities component
will be implemented both individually and at community level. The selection of possible
activities at community level will require environmental screening. The community will follow
the activity specific Environmental Management Plan (EMP) in consultation with Community
Mobilization Officer (CMO).
80.
Stakeholder’s Capacity on Environmental Safeguard.The implementing agencies BFD
and AF have experience on conserving the natural resources and pay due diligence to
72
environmental issues. BFD also implemented three IDA supported projects during 1980-2001
and presently implementing a regional wildlife project. However, both BFD and AF require to
be further oriented on bank environmental and social safeguard policies. The capacity weakness
has already been covered by hiring both social and environmental specialist during preparation
phase. The Community Mobilization Officer (CMO) and DFOs will be further trained on the
implementation of EMF and ECP. BFD will share the EMF with DoE for concurrence.
81.
Environmental Safeguard Supervision and Monitoring. Assistant Conservator of
Forests (ACF) based at each division level along with Community Mobilization Officer (CMO)
will monitor the environmental safeguard issues and ensure the successful implementation of the
environmental code of practice, execution of environmental assessment and environmental
management plan. ACF will submit a semi-annual environmental report to the respective DFOs.
The DFOs will ensure the quality and authenticity of the report and share the final report with the
PIU.
82.
Consultation and Disclosure: BFD and AF have prepared the EMF in consultation with
different stakeholders and communities of the selected districts. The EMF along with Bangla
version has been disclosed by the BFD and AF on their website and hardcopies are also be
available at BFD and AF headquarters and district offices (project area). Advertisements
requesting public comments are published in two daily Newspapers (English and Bangla). The
EMF is also disclosed in Infoshop.
Results Monitoring and Evaluation
83.
Monitoring and evaluation are fundamental to assess implementation progress and to
provide necessary corrective measures during implementation. Annex 1 presents the Results
Framework and Monitoring to measure achievement of the PDO. These include: plantation
coverage, income, employment, participatory management, capacity building indicators. It may
be noted here that the project has adopted the definition of ‘Resilience’ from the recent report
‘Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation’
published by Intergovernmental Panel on Climate Change (IPCC). ‘Resilience’ is defined as the
ability of a system and its component parts to anticipate, absorb, accommodate, or recover from
the effects of a hazardous event in a timely and efficient manner, including through ensuring the
preservation, restoration, or improvement of its essential basic structures and functions.
84.
BFD has its monitoring system to track the physical progress of the afforestation and
reforestation. The overall monitoring system of BFD will be further strengthened with scientific
and comprehensive data and information on existing resources in coastal and hilly areas.
Component 3 will support the forest inventory, socio-economic survey, RS and GIS, which will
baseline and change monitoring of increases in afforested and reforested area and impacts of the
project on resilience of forests and livelihoods of local communities.
85.
Special attention will be provided to improve the reporting system and the PIU will
produce the quarterly and annual progress reports in an appropriate format to the Bank no later
than 15 days after the end of each quarter. The Project Director of PIU and Executive Director
of AF will be responsible for the preparation of quarterly reports on overall progress, site specific
progress, major issues, expected completion dates for civil works, implementation of SMF and
73
EMF, training, technical studies, procurement, and FM issues. The reports will include: (i)
comparison of actual physical outputs and disbursement with updated forecasts; (ii) financial
statements; and (iii) procurement report showing status and contract commitments.
86.
Monitoring and evaluation (M&E) for component 2 on alternative livelihoods will be
based on a relevant and clear-cut strategy and plan developed by AF. The component will have a
comprehensive monitoring and evaluation framework based on qualitative and quantitative
indicators of the results to be achieved, i.e., the project’s development objective and intermediate
results related to alternative livelihoods development and consequent impact on forest
conservation.
87.
The AF will elaborate the M&E plan including implementation strategy/process and data
collection formats and train partner NGOs in its implementation. The M&E process will include
baseline survey, quarterly and annual progress against the indicators defined in the results
framework and final survey at the completion stage for impact evaluation. Partner organizations
will implement baseline study collecting profile of the project area, information on households,
existing livelihood practices, poverty, etc. The baseline study will implement a difference-indifference approach for comparison between treatment (project beneficiaries) and control (nonbeneficiaries) groups before and after project activities. AF Secretariat will carry out periodic
monitoring of project implementation and review progress by undertaking field visits. The
partner organizations will submit quarterly and annual progress reports to AF Secretariat. The
AF Secretariat will verify the reports of the partner organizations and submit consolidated
reports to the Project Implementation Committee and the World Bank simultaneously. In
addition, the component will adopt participatory monitoring by project participants in different
aspects.
88.
Monitoring of annual development plan implementation: In their monthly meetings,
the FDGs and their Union-level federations will review the progress and problems (if any) of
implementation of their annual development plan (ADP) and will plan actions to solve the
problems. The common activities to be monitored by the FDGs and their Union-level
federations include: progress in implementation and effectiveness of training and exchange
visits; collection of participatory savings from the FDG members; disbursement and recovery of
credit; implementation AIGA; and adoption of improved cook stoves and sanitary latrines and
use of safe drinking water by the FDG/community members.
89.
Monitoring of participatory savings, credit recovery and AIGA effectiveness: In
monthly meetings of the FDGs, the FDG leaders will take feedback from their members about
the effectiveness and problems of their AIGAs and will document important observations and
issues such as those that require organizing skill development trainings or dealing with
marketing problems. In each monthly meeting, the status of participatory savings and credit
recovery shall also be reviewed and follow up actions shall be planned in a democratic manner.
90.
Monitoring of forest resource extraction: Extraction of forest resources by people shall
be monitored mainly through ‘trail guarding’ method and discussion in the regular meetings of
the FDGs and their Union level federations. In trail guarding method, period monitoring of
forest resources extraction is done at the exit points of the forests using local volunteers. The
process involves identification and mapping of the exit points (through which people bring out
74
forest products from the forests) and counting the number of stems, bundles, sacs, wagon/van or
head loads of different forest products while carried out through the exit points, with subsequent
estimation of volume or weight of those materials through sample measurements either at the
exit points or in the marketplace where those are traded.
91.
In each month, the trail guarding operation (monitoring) will be conducted in a market
day and a non-market day, selected randomly. One or two Community Volunteers will take
position at each exit point of the forest for the whole day and will observe and record (in a data
sheet) the number of persons coming out from the forest and the forest goods being carried by
them. The volunteers will record the name and distance (from the forest) of the communities the
forest resource collectors came from, the distance of the place of collection of the forest goods
from the exit points and the time spent in collection of the forest goods by asking those people in
a friendly manner.
92.
In the market place, the volunteers will collect complementary data such as the
weight/quantity of forest goods in a bundle, sac or head load as brought by the forest resource
collectors and the prices of the forest goods. The price data shall be collected once in every
month but for data on weight/quantity of forest good per bundle, sac, etc., one time data will be
sufficient unless a change in the standard sizes of the bundles, sacs, etc. are observed.
93.
To monitor project progress, two full implementation support missions will be
undertaken annually by the Bank. Additionally, the Bank will monitor implementation
throughout the year. A mid-term review of the project will be carried out by September 2015.
An Implementation Completion and Results Report (ICR) will be submitted to the Bank no later
than six months after the closing date. Additional detail on the World Bank’s support to project
implementation and monitoring can be found in Annex 5.
94.
For an independent assessment on quantitative and qualitative performance of
implementation, third party monitoring is proposed for the project. In addition, BCCRF
secretariat will develop separate monitoring system for the projects to be funded under the trust
fund.
75
Project Organizational Chart
Steering Committee
(Chaired by Secretary, MoEF)
World Bank
Project Implementation Committee
(Chaired by CCF, BFD)
3 Forest Circle
Offices
(Headed by
Conservator of Forest)
Chittagong Circle, Coastal Circle
& Social Forestry Circle
Project Implementation
Unit, BFD
(Component 1, 3 & 4)
(Headed by Project Director &
supported by Project Manager &
other specialists and staffs)
Project Office, AF
(Component 2)
(Headed by Executive Director &
supported by a full-time Project
Coordinator, AIG Specialist & other
officers)
RIMS Unit
2 Management Plan
Divisions
(Headed by Deputy
Conservator of Forests &
supported by technical
specialists
(Headed by
Deputy Conservator of Forest at
Chittagong and Khulna)
10 Divisional Forest Offices
2 Partner NGO Offices
(Headed by Divisional Forest Officer &
supported by Community Mobilization
officer, Account Officer & regular staff)
(Headed by Program Manager)
Patuakhali Coastal Afforestation Division,
Bhola Coastal Afforestation Division,
Noakhali Coastal Afforestation Division,
Chittagong Coastal Afforestation Division,
Chittagong North Forest Division,
Chittagong South Forest Division, Cox’s
Bazar North Forest Division, Cox’s Bazar
South Forest Division, Barisal Social
Forestry Division and Feni Social Forestry
Division.
NGO (South): Patuakhali Coastal
Afforestation Division, Bhola Coastal
Afforestation Division, Noakhali Coastal
Afforestation Division, Barisal Social
Forestry Division and Feni Social Forestry
Division
NGO (Southeast): Chittagong Coastal
Afforestation Division, Chittagong North
Forest Division, Chittagong South Forest
Division, Cox’s Bazar North Forest Division,
Cox’s Bazar South Forest Division,.
Range and Beat Offices
Site Offices
(Range and Beat Officer with Forest Guards)
(Site Coordinators & Field Facilitators)
76
Annex 4: Operational Risk Assessment Framework (ORAF)
Operational Risk Assessment Framework (ORAF)
Bangladesh: Climate Resilient Participatory Afforestation and Reforestation Project (P127015)
.
Project Stakeholder Risks
Stakeholder Risk
Rating
Description:
Risk Management:
Selection of beneficiaries of the social
forestry has a high political pay-off.
Political capture at selection of
beneficiaries would lead to exclusion of
real poor people.
Selection of beneficiaries based on transparent criteria, and done at the union level. Greater emphasis
on consultation with communities and close monitoring by Project Consultant.
Resp:
Client
Substantial
Status:
Not Yet Due
Stage:
Implementation
Recurrent
Due Date:
Frequency:
Implementing Agency (IA) Risks (including Fiduciary Risks)
Capacity
Rating
Description:
Risk Management:
Although Bangladesh Forest Department
successfully 3 IDA funded forestry projects
during 1980-2001, the department has
limited experience on implementation of
large-scale donor funded projects in recent
years.
Financial Management: The overall
accountability and financial controls are
weak for this project. A large component
(component 1) is implemented by 10
division forest offices spread across various
locations. There is a substantial risk
involved in delay of timely submission of
financial reports and adherence to internal
Substantial
Project implementation itself will be supported by dedicated Project Implementation Unit (PIU) that
will receive significant technical assistance, training and separate budgets. A Project Implementation
Committee at BFD will be formed to ensure overall coordination of project implementation
Resp:
Client
Status:
Not Yet Due
Stage:
Implementation
Recurrent
Due Date:
15-Jan-2013
Frequency:
Risk Management:
While this remains an inherent risk, it has been agreed that a qualified accountant will be engaged at the
PIU-BFD who will be responsible for the accounting, reporting and auditing functions. It has also been
agreed that a computerized accounting system will be procured by PIU-BFD & divisional forest offices
and the chart of accounts will be configured to this software which would assist in timely submission of
IFRs.
Similarly, each divisional office will be staffed with 1 Community Mobilization Officer (CMO) &
Accountant (AO) who will oversee the operational and financial aspects and will report to the
77
controls (for e.g. non-reconciliation of bank Divisional Forest Officer (DFO). The Accountant will maintain adequate books of accounts and will
accounts, delay in settlement of advances report to the PIU-BFD on a periodic basis on the expenditures incurred under this project. In case of
etc).
cash withdrawal, the agreed arrangement is to disburse all payments within two days of withdrawal and
daily update cash in hand and bank balance, which will be monthly reconciled with Bank statement.
In addition, to implement the project
activities, it is expected that large amounts The additional fiduciary assurance will be obtained through internal/operational audit as per ToRs
of cash will be withdrawn by the division agreed with the Bank.
forest offices from the bank accounts
Resp:
Status:
Stage:
Recurrent
Due Date:
Frequency:
towards payment to local community
Client
Not Yet Due
31-Mar-2013
Implementation
labors, local transportation costs, purchase
of seeds etc.
Risk Management:
Procurement Performance Monitoring Reports (PPMRs) will be prepared by BFD on a semi-annual
Procurement: BFD has no dedicated
basis with indicators aimed in managing procurement-related risks.
procurement staff to deal with procurement
activities and has inadequate capacity for
Qualified Procurement Specialist will be recruited at PIU level to support both BFD and Arannayk
procurement and administration of
Foundation.
contracts funded from IDA or IDAadministered trust funds.
IDA will monitor implementation progress through standard supervision and focused capacity building
based on reviews and PPMR findings.
Resp:
Both
Status:
Not Yet Due
3.2 Governance
Rating
Description:
Risk Management:
Bureaucratic and slow decision making
process can affect the project progress.
Lack of accountability and oversight may
affect the quality of project outputs.
Stage:
Implementation
Recurrent
Due Date:
28-Feb-2013
Frequency:
Substantial
Oversight function will be strengthened in the project. Bank review of audit reports and follow up on
actions taken by BFD to address audit recommendations.
Resp:
Both
Status:
Not Yet Due
Stage:
Both
Recurrent
Due Date:
31-Dec-2013
Frequency:
Risk Management:
The project will make use of an independent third party monitoring system for verification of project
activities. The project will support in strengthening the participatory monitoring in the BFD and will
introduce social accountability tools.
78
Resp:
Client
Status:
Stage:
Not Yet Due Implementation
Recurrent
Due Date:
Frequency:
Risk Management:
An in-country consultant will conduct random spot checks on the progress of the afforestation and
reforestation.
Resp:
Bank
Status:
Stage:
Not Yet Due Implementation
Recurrent
Due Date:
Frequency:
Risk Management:
Oversight function will be strengthened in the project. Procurement Risk Mitigation Framework will
be prepared and implemented.
Resp:
Both
Status:
Stage:
Not Yet Due Both
Recurrent
Due Date:
Frequency:
Risk Management:
A Governance and Accountability Action Plan (GAAP) has been prepared that outlines key agreements
on Governance issues. Regular monitoring during implementation.
Resp:
Both
Status:
Stage:
Not Yet Due Both
Recurrent
Due Date:
Frequency:
Project Risks
Design
Rating
Description:
Risk Management:
No major technical complexity is foreseen
for the project. BFD is familiar with
afforestation program. BFD is mainly
responsible for the project implementation
and Arannayk Foundation will implement
the livelihood subcomponent. The project
design is flexible in terms of
accommodative nature for afforestation,
Continued dialogue with the implementing partners to ensure smooth implementation
Resp:
Both
Moderate
Status:
Stage:
Not Yet Due Both
79
Recurrent
Due Date:
Frequency:
livelihood development, studies etc. There
will be good linkage between the plantation
program and alternative livelihoods
components.
Social and Environmental
Rating
Description:
Risk Management:
Environment: The project will make a
positive long-term contribution to the
environment such as protecting against soil
and water erosion, working as a barrier
during cyclone and storm surge, providing
habitat for flora and fauna etc. Some short
term impact is expected due to minor
construction works.
Social: The project will bring positive
changes by reducing climate change risk
and providing employment opportunities.
Resettlement will be avoided; however,
some resettlement may be required.
Moderate
BFD prepared an Environmental Management Framework (EMF) and conduct screening/assessment
and mitigation measures during implementation
Resp:
Client
Status:
In Progress
Stage:
Both
Recurrent
Due Date:
Frequency:
Risk Management:
BFD prepared Social Management Framework during project preparation, which will provide guidance
for conducting social impact assessment, resettlement plan etc. The project will screen the locations
where activities are slated to be carried out in order to avoid as much as possible any sites where the
displacement or involuntary resettlement of people may be expected
Resp:
Client
Status:
In Progress
Stage:
Both
Recurrent
Due Date:
Frequency:
Program and Donor
Rating
Description:
Risk Management:
The project will be implemented under
BCCRF (a Bangladesh specific MDTF).
The contributing donors and other secotral
donors will be consulted on regular basis.
Close collaboration with other on-going programs and donors. Disclosure of project update in BCCRF
and BFD website.
Delivery Monitoring and
Sustainability
Resp:
Both
Rating
Low
Status:
In Progress
Stage:
Both
Substantial
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Recurrent
Due Date:
Frequency:
Description:
Risk Management:
Sustainability: BFD have demonstrated
commitment by successfully implementing
the afforestation program through social
forestation program. However, Financial
sustainability of the BFD is at stake
although the government developed
mechanism distribution of 100% income
from social forestation to community,
department and afforestation fund. AF also
working to continue support to forest
depended community through different
projects.
Studies in the project will develop model for strengthening management and explore the carbon finance
and other innovative funding sources for sustainable forest management.
Resp:
Client
Status:
Stage:
Not Yet Due Implementation
Recurrent
Due Date:
31-Decl-2016
Frequency:
Risk Management:
The Consultant will be engaged to provide support to BFD in ensuring quality control and close linkage
with afforestation and livelihood component. Capacity development of BFD and AF will be supported
through the program.
Resp:
Client
Status:
Stage:
Not Yet Due Implementation
Recurrent
Due Date:
01-Jul-2013
Frequency:
Contract Management: BFD has no
experience in recent times in with dealing
Bank-financed contracts. AF also does not
have experience of large scale contract
management.
Difficulty to satisfy quality assurance of the
contracts scattered in remote areas.
Overall Risk
Preparation Risk Rating:
Description:
Moderate
Implementation Risk Rating:
Substantial
Description:
The overall risk rating of the proposed project is substantial. The key risks to achieving the PDO fall
under two main categories: project specific risks and risks in overall governance in the country and in
the sector. The first category includes risks mainly associated with insufficient capacity of the
implementing agencies in terms of logistics and adequate human resources to manage a large scale
project in remote locations, and weak financial management system. The second category of key risks
relate to the overall weak governance in the country and in the sector, including inefficient funding
allocation for institutional development of BFD, weak internal accountability and integrity mechanisms
and insufficient citizen oversight. This ORAF and the GAAP will help in tracking the risks and
mitigation measures.
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Annex 5: Implementation Support Plan
A. The strategy and approach for implementation support
1.
The proposed project will require intense supervision, given there are two implementing
agencies (BFD and AF) and both of them have limited capacity especially in terms of Bank
procedures.30 In addition, most of the plantation sites especially in the coastal areas are far away
from the main land and require substantial travel time. Adequate Bank resources and staffing to
ensure this level of supervision will be made available throughout the project implementation
cycle.
2.
The Implementation Support Plan (ISP) provides the support required for implementation
of all mitigation measures identified in the ORAF in the three following areas: (i) institutional
capacity; (ii) program delivery and monitoring; and (iii) governance, in order to ensure all major
risks are addressed. The design of the project contains safeguards against each of these risks.
The ISP is designed to review and ensure the safeguards are effective and to reinforce them
where necessary. The ISP is also designed to enhance BFD’s capacity in a range of technical
and specialized areas. The ISP will be undertaken by Bank staff and is based on three major
principles: (i) continual high level policy dialogue with BFD on institutional development and
sustainable forest management; (ii) frequent local level and field based supervision including
consultation with forest based communities; and (iii) consistent review of fiduciary procedures
and controls.
3.
The institutional capacity development and fiduciary support through Bank’s
implementation support will focus on procurement and financial management. The strategy
includes:

Procurement. Implementation support will include: (i) providing training to relevant
staff of the PIU and AF; (ii) reviewing procurement documents and providing timely
feedback to the PIU and AF; (iii) providing detailed guidance on IDA’s Procurement
Guidelines to the PIU and AF; and (iv) monitoring procurement progress against the
detailed procurement plan.

Financial management. Implementation support will review the project’s financial
management systems, including but not limited to, accounting, reporting and internal
controls. The project will introduce forensic accounting, which will ensure better
transparency especially in field level transaction. Supervision will also cover pilot
projects on a random sample basis.
4.
The strategy will also include frequent supervision through field visits, considering (i)
potentially large number of sub-projects in the field, especially in the context of Component 2,
which will promote several AIGAs; and (ii) remote and diverse afforestation and reforestation
sites. Bank supervision will need to rely on frequent field visits and dialogue with local
30
Despite having successfully implemented three forestry sector projects, the present BFD mid-level officials (Divisional Forest Officer
responsible for field level implementation) in the BFD are not familiar with Bank-supported operations.
82
stakeholders and on AF’s monitoring system. In addition, fostering a transparent communication
between the two implementing agencies and developing an effective monitoring and reporting
system will be emphasized. Each field visit will involve focus group discussions with the project
beneficiaries to gauge project’s impact and beneficiary satisfaction. This information will be
used to continually improve project practice.
5.
The strategy also includes regular supervision of the implementation of the agreed
Governance and Accountability Action Plan (GAPP) and provides guidance in resolving any
issues.
B.
Implementation Support Plan
6.
Team Composition. The core implementation support team will be based in the
Bangladesh country office and within the South Asia region. The staff based in Washington DC
will also provide technical input from their working location and will also participate in selective
missions. The Team will consist of Task Team Leader (TTL), Natural Resource Management
Specialist, Forestry Specialist, Forestry Economist, Environmental Safeguard Specialist, Social
Safeguards Specialist, Procurement Specialist, Financial Management Specialist, and
Governance Specialist. The team will be complemented by consultant support on issues
associated with capacity building especially with forest resource planning and management,
climate change, RS, income-generating activities and disbursement.
7.
Frequency of implementation support. Supervision missions will be carried out at least
twice a year. Country-based staff and consultants will monitor implementation progress on a
continuous basis and will have monthly/quarterly meetings with PIU to review annual work
program progress and address emerging issues. Safeguard and technical field visits (during
afforestation phase) will be undertaken quarterly.
8.
Implementation Support Plan. The supervision mission will provide the following
inputs to help achieve the project development objective:

Technical inputs: The team will provide technical inputs in several areas, e.g. by
reviewing the criteria based on which project beneficiaries are chosen, monitoring the
success of AIGAs, quality and extent of plantation and nursery practices, maintenance
and survival rates of the project plantations through field visits. The technical studies i.e.,
monitoring system based on RS, GIS and field cross-checking, monitoring guidelines,
several studies under master-plan and the final master plan will be extensively reviewed
by the Task Team. The team will share the international best practices in improving the
quality of the documents. The team will provide input for the content and process of the
capacity building program.

Fiduciary aspects: The team will review the implementation of FM and procurement
arrangements (hiring FM and procurement specialists at PIU) and their performance. The
team will identify corrective actions and will monitor fiduciary risk. Monitoring
implementation progress will involve reviews of PPMRs findings and other documents.
83
C.

Safeguards: Timely implementation of all provisions of the SMF and Environmental
Management Framework (EMF) will be supervised through review of project annual
work plans, progress reports and site visits, as appropriate.

GAAP: The Governance Specialist based in Bank’s Dhaka Office will be member of the
project team to support implementation of the GAAP and the risk mitigation measures
related to governance and corruption throughout the project period.
Implementation Main Focus
Considering the risk associated with extraordinary visibility vis-à-vis external partners
and media for climate change and required substantial work and follow-up during
implementation, the IDA team would need significant resources to carry out proper
implementation support. Most of the IDA team members will be based in the Bangladesh and
South Asia to ensure timely, efficient and effective implementation support to the clients.
9.
Table 5.2: Skills Mix Required
Skills Needed
Task Management
Natural Resource
Management Specialist
Procurement Specialist
Financial Management
Specialist
Governance Specialist
Forestry Specialist
Forestry Economist
Afforestation Specialist
Community
Development,
Livelihoods and AIG
Specialist
Forestry Policy,
Capacity Building &
Climate Change
Specialist
Silvi-culture and
Inventory Specialist
Environment specialist
Social safeguard
Specialist
Number of Staff Weeks
60
30
Number of Trips
20
10
Comments
Country Office
South Asia
30
30
10
10
Country Office
Country Office
10
10
6
50
40
5
4
4
30
10
Country Office
Washington DC
Washington DC
Country Office
South Asia
40
10
South Asia
15
8
New Zealand
20
20
10
5
Country Office
Country Office
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Annex 6: Governance and Accountability Action Plan (GAAP)
Introduction
1.
The project aims to reduce forest degradation and increase forest coverage through
participatory planning/monitoring and to contribute in building the long-term resilience of
selected communities in coastal and hilly areas to climate change. The project development
objective will be achieved by: (i) establishing newly afforested and reforested areas using
climate resilient species to work as windbreak against cyclones; (ii) strengthening alternative
livelihoods of forest-dependent communities; and (iii) improving the institutional capacity of the
forest department to sustainably manage forest resources. The GAAP, if properly implemented,
will contribute to enhancing efficiency of the institutional organization and performance of the
project as well as strengthening the forestry sector governance. It will remain a living document
and will be updated as issues emerge or are resolved and additional mitigation measures are
developed during project implementation.
Country Context
2.
Bangladesh has historically scored poorly on international governance indices, albeit with
modest progress in recent years. There are entrenched difficulties in improving public sector
performance. The Government of Bangladesh’s efforts to bolster its legal framework to counter
corruption, including the empowerment of an Anti-Corruption Commission, and joining the UN
Convention against corruption have yet to yield measurable gains. Institutions of accountability
are weak and country systems to deter corruption such as asset statements or prosecution of
corruption cases are rarely enforced. These capacity and governance challenges in the
Bangladesh’s public sector, combined with the susceptibility of civil works projects worldwide
to fraud and corruption, emphasize the importance of a GAAP that harnesses a range of sound
measures to strengthen governance in the forestry sector and prevent and mitigate corruption at
the project level.
3.
The Bank’s strategy for improving governance in Bangladesh, laid out in its 2011-2014
Country Assistance Strategy (CAS), focuses on developing accountability mechanisms in public
sector operations, especially through increased transparency. The Bank seeks to align with
Government priorities in developing the means of accountability, especially strengthening of
public financial management, support for local government, use of information and
communication technology (ICT) and the adoption of a Right to Information (RTI) regime. In
particular, the Bank is working with the Government to improve budgeting practices among line
agencies in conjunction with enhanced accountability mechanisms. Bank is working to increase
the role and quality of oversight of public finances by the Parliamentary Accounts Committee,
improve capacity of the Comptroller and Auditor General’s Office, and promote greater public
understanding of public financial management to build more informed demand and ability to
hold Government accountable. The Bank’s strategy also focuses on improving public service
delivery, a key component which is fostering greater accountability to recipients of services
including through a strengthened role for local government. The Bank supports the
Government’s efforts to establish functioning RTI regime, including building capacity in all
85
agencies to provide information more fully and efficiently. The Bank also continues to
emphasize the importance of building demand for good governance among civil society. This in
turn requires engaging with the civil society and monitoring the performance of, the public
sector.
Objectives of GAAP
4.
The GAAP’s main objective is to contribute towards strengthening governance and anticorruption systems in the project and in the forestry sector for achieving project development
objectives. It will achieve this objective by:

Strengthening transparency mechanisms through provision of information to all
stakeholders about the Project, its objectives, process and requirements in a timely
manner, understandable form and using appropriate means for reaching all in Project
areas; disclosing information on BFD web site and in mass media.

Ensuring meaningful participation of all eligible beneficiaries in all stages of the Project
through developing, testing and introduction of a new approach to selection of
beneficiaries for social forestry program through transparent, open and inclusive process
at the lowest level of government, i.e., Union Parishad level with engagement of
communities in all stages of selection and affirmation; developing and implementation of
Targeting and Selection Strategy with clear indicators and scoring system for selection of
beneficiaries for alternative livelihoods program, introducing participatory affirmation of
selected beneficiaries at the community level with participation of local government
representatives; introducing and strengthening participatory management of group level
funds; ensuring equity in sharing forest benefits among the local population.

Enhancing accountability through continuous monitoring of project implementation,
procurement monitoring and input tracking for ensuring that resources allocated by the
project are spent for the intended purposes and directed to the beneficiaries of the project;
RS system will be used for monitoring and verification of project outcomes in
afforestation and reforestation of areas; improving feedback flow mechanisms between
beneficiaries, civil society, and project authorities, as well as establishment of grievance
redress mechanisms.
Key governance issues in the project
4.
Institutional weaknesses in the implementing agencies can pose risks to the project.
These risks can lead to poor oversight and resulting problems with the delivery of payments and
goods which in turn undermine project effectiveness. Although BFD implemented three IDA
projects successfully during 1980-2001, the present mid-level officials do not have experience in
managing large scale project and IDA procedures. In absence of transparent monitoring system
and information dissemination system, the general perception about the forestry program is not
very encouraging.
86
5.
The major governance and corruption related risks will be in fraudulent practices in
carrying out afforestation and in procurement of works. These and other governance risks are
listed below:
 There is risk of nonperformance and potential fraud and corruption owing to weak
institutional capacity for control and accountability and poor internal incentives for staff.
BFD is seriously underfunded. Funding for its afforestation and reforestation activities
mostly come from the development projects outside of its usual operations, with poor
control systems apparently contributing to mixed results. The area of actual afforestation
is in practice difficult to verify and attribute to specific investments. BFD field staff has
no strong institutional incentives to carry out afforestation and reforestation in terms of
either reward or punishment for correspondingly good or bad performance. In that
connection, BFD comes under criticism from the civil society on tangibility of its
performance. The Project will mitigate this risk of nonperformance through a RS
monitoring approach using GIS for verification of all afforestation and reforestation
activities to ensure achieving project targets. It will also build capacity in terms of
additional staff, accounting systems, and use of audits to monitor against abuse.
 There is substantial risk in institutional arrangements for land tenure and use of forest
resources. There is significant confusion, overlap and conflict in policy and legal acts
related to forestry which inhibits many afforestation and reforestation activities. The
rights to some forest covered lands are not legally formalized and under conflicting
claims, resulting in mostly taking them by the Land Ministry to be leased out to private
interests for agricultural and other productive purposes. BFD will ensure that all lands to
be afforested and reforested using project funds will be public and not under conflicting
claims, as well as clearly under BFD jurisdiction. Project will introduce screening
process for verification of tenure status of affected lands to be executed before
afforestation/reforestation activities start.
 There is potential abuse in the application of social forestry and inclusion of intended
beneficiaries in the project. Social Forestry Rules (latest version is of 2011) clearly define
eligibility criteria for people participating in afforestation and in sharing benefits from the
planted trees. These criteria are indeed pro-poor and gender-sensitive, but the selection
process is being heavily influenced by local political powers and vested interests.
Currently this process is not transparent or inclusive and in most cases leads to significant
delays in the affirmation process and in some cases to exclusion of really poor and
vulnerable members of community. According to the Rules, the final approval of the
selected beneficiaries is to be made by the Upazila Parishad. However, this is where
selection process gets sometimes manipulated and misused due to political pressure and
other vested interests. In addition, the beneficiary selection process has been delayed in
many cases at the Upazilla level for many years, which significantly hampers the
community participation in afforestation and reforestation program. The Project will
provide a model for good forest governance in selection of beneficiaries for social
forestry program through decentralized decision making, and engagement of
communities. It will also institute monitoring mechanisms through Forestry Department
officials, an extensive transparency/right to information campaign to appraise all persons
87
on the procedures, benefits, and performance of the project, and a robust grievance
mechanism and response protocol.
 Poor governance and enforcement mechanisms pose a threat to forest resources in general
and specifically for those areas which are targeted by the project. Illegal harvesting of
timber and other forest resources leads to deterioration of forest ecosystems and depletion
of its resources. With limited resources and manpower BFD is not capable to prevent
such illegal and unsustainable use. Project will develop and support community
protection of forest resources, especially of fragile and ecologically important forest areas
through general awareness raising, capacity building and mobilization of informal
Community Patrolling Groups (CPGs) to aid forest rangers and beat officers.
 There is substantial financial management and procurement risk owing to weak Forest
Department capacity. This lack of capacity can lead to delays in project implementation
or provide opportunity for misuse of funds, as well as more generally hindering
achievement of project objectives. There is a risk for fraud and corruption among parties
engaged in procurement process. The procurement, financial management and
monitoring systems in BFD need to be strengthened. Project will develop financial
management and procurement manual with guidelines and reporting formats. PIU will
employ Procurement Specialist who will be responsible for preparation of all tenders,
review of bidding documents and administer contracts. Procurement documents will be
verified by the Bank during supervision process. Bank will also employ consultant for
providing support to the PIU on implementation issues who would also monitor
following agreed procurement guidelines. In order to strengthen financial management,
PIU will employ two persons: Financial Management Specialist and Accountant. In
addition, all 10 Forest Divisions will employ Accountant for proper accounting and
financial reporting.
5.
A major implementing entity will be AF. The channeling of resources for beneficiaries
in communities through this established NGO is an important governance and fraud & corruption
risk mitigation measure for the project. Its institutional performance and capacity are strong. AF
has demonstrated successfully managing small scale contract for NGO selection and contract
management. The AF operates under a strong internal control framework and follows
Operational Manual that has transparency mechanisms required for accounting from the AF and
its implementing partners. There are Finance Standing Committee and Program & Operation
Standing Committee that oversee AF operations. Implementation Manual includes detailed
procedure for managing, monitoring and controlling the financial activities of the Implementing
Partners (IP) to ensure that funds are used for intended purposes and mitigate any risk of
corruption, misuse and misappropriation of AF funds by the IPs.
6.
AF operates with own Grant Management Software (GMS) for planning, recording and
reporting financial activities of the IPs, which allows it to electronically monitor and analyze the
financial activities and progress of the IPs. The GMS is updated by the IPs with details of the
financial planning & actual transactions and are critically reviewed by AF on a quarterly basis
before disbursing any fund to the IPs.
88
7.
AF will provide supervision and back stopping to partner NGOs with periodic monitoring
in the field. There is a risk of not including really poor, marginalized and forest dependent
households in alternative livelihoods program under the pressure from local elite and power
holders. To enhance participation of communities in project activities, AF will take among
other, the following measures:
 AF will develop Awareness Strategy and Plan, and train partner NGOs in its
implementation at the inception workshop. This strategy will contain information to be
disseminated about the Project, its objectives, processes and benefits for the target
population, details of selection process of participants; target audience to reach, such as
local government offices, local civil society organizations, community based
organizations, community members in generals, and especially Indigenous Peoples’ (IP)
communities, poor and women; and means to reach them (through messaging to mobile
phones, using loud speakers, focus group discussions with poor, women and vulnerable;
separate community meetings with IP communities). Awareness Strategy will be also
posted on the AF and BDF web sites for wider disclosure purposes.
 AF will develop TSS, which will clearly define the selection process, starting from
identification and ending with community affirmation of project beneficiaries. It will
also have a set of eligibility criteria and scoring system for selection of members of
Forest Dependent Groups. TSS will be based on participation of community in the whole
process. TS Plan will have dates for community meetings and for all steps in selection
process.
8.
There are risks of sustaining the benefits from the project in communities. AF will
develop exit strategy, where it will clearly stipulated steps and procedures to conduct full transfer
of ownership of Project endowment funds to community groups. Partner NGOs will implement
exit strategy under the monitoring of the AF. At the levels of FDGs, all financial decisions will
be recorded in the minute books and access to books and records will be available to all members
to ensure that transparency and oversight are maintained. Necessary financial information
including funds released to FDGs; and annual audit report of the project will be made available
in public domain through the AF website.
9.
While it has strong capacity, AF has no experience in working with Bank funded
projects. It’s Finance and Administration Officer will participate in initial training on
procurement and financial management to familiarize with the IDA competitive procurement
process of bigger size contracts and financial management and reporting. AF will be working
closely with the Financial Management Specialist at PIU.
10.
There is a clause for misuse and misappropriation of AF fund in Implementation Manual
and always in each Grant Agreement between the AF and IPs resulting in refund.
11.
As it is stipulated in SMF, Project will establish grievance redress mechanism at the local
level to address issues on participation, inclusion and benefits sharing. Complaints will be
recorded at Project site level. According to the nature and seriousness of the complaints they
will be prioritized and addressed by enquiry group, comprised of partner NGO representative,
89
project site coordinator, FD officer, local government representative and other local
representatives.
12.
Bank will apply sanctions as per its guidelines if it determines incidences of fraud,
corruption, collusion, coercive, and obstructive practices. Information on the Bank’s sanction
process can be found at the website www.worldbank.org/sanctions. In addition, the Bank will
coordinate with BCCRF Management Committee in the event of misconduct issues.
13.
These sanctions may include fines, blacklisting, suspension of disbursements, or
ultimately cancellation with respect to that contract. The Bank will seek first to remedy cases of
corruption through cooperation with the implementing agency. Any entity that is found to have
misused funds may be excluded from subsequent funding. Information regarding such cases,
where lessons are learned and funds are retrieved, will be widely disseminated.
14.
The GAAP proposes actions for each of these issues, timeline for each action, and
responsible agency for implementation. There are also some “early warning indicators” which,
if monitored properly, would enable timely actions for course correction.
Monitoring arrangements
15.
The GAAP will be monitored regularly against agreed actions which will be reflected in
the project’s periodical progress reports and aide-memoires. This will be a joint responsibility of
PIU of BFD and AF. The GAAP matrix will be used widely for monitoring purposes. Project
intermediate indicators include governance indicators on participation, inclusion, accountability.
Any ‘early warning’ indicators of governance and accountability risks will be monitored
regularly so that corrective measures could be carried out promptly.
16.
PIU, Bank Implementation Consultant, and designated AF staff will undertake field
supervision and verification of Project results. Monitoring shall include both quantitative
measures of implementation of actions (e.g. numbers of complaints received, followed up and
resolved, numbers of persons at accountability meetings), recording of benchmarks (e.g.
establishing scientific baseline of plantation areas with RS and GIS, establishment of third party
monitoring), as well as qualitative reporting on the efficacy of measures and instances where
problems were corrected through these mechanisms. Its reports shall be submitted to PIC,
BCCRF Management Committee, and Bank simultaneously.
Bank Supervision and Surveillance
17.
Supervision arrangements, particularly for plantation at the field level, will be extensive.
The Bank will also conduct regular monitoring between supervision missions, including random
visits by local consultant to the plantation sites on a regular basis in the first three years of the
project, when plantation will be taking place, to keep the Bank informed of issues arising in
afforestation and reforestation. The Bank will conduct a mid-term review of the project in
September 2015. Detailed plans for supervision by the Bank are given in Annex 5.
18.
In terms of monitoring progress on the GAAP, Bank will conduct six-month reviews for
the first 18 months and then successive annual reviews of GAAP implementation. The review
90
will assess progress, gauge the efficacy of measures, agree among all parties on areas for
improvement, and make adjustments as appropriate. Bank will update its assessment of GAC
risks on an ongoing basis, and anticipates that adjustments to the GAAP will be likely to reflect
what will be most effective in the context of the project.
91
Governance and Accountability Action Plan
Issues/Risk/
Objectives
Institutional Risks
Weak institutional
capacity and internal
incentives for
performance
Poor tenure regime
for forest resources
Actions to address the issues
Responsible
agency
Project will establish RS System to track and verify
afforestation/reforestation results
PIU
Random verification of sites by external party
IDA team,
Independent
Monitoring Firm
PIU/Project site
offices
Project will ensure that only land areas with formalized tenure and
under jurisdiction of BFD are selected for afforestation and
reforestation through screening
Timeline
At the beginning and
end of project period
Lack of transparency
and governance
arrangements in
selection of
beneficiaries for
Social Forestry
program
Discrepancy in areas under planned
and actual afforestation
Several times a year,
Six-monthly
As soon as area is
identified
Feedback received on specific land
plots
Information on sites to be covered by afforestation and reforestation
is disclosed on the BFD and AF web sites with feedback
mechanisms installed.
Strong political
influence on local
level on selection of
Afforestation
project areasactivities.
leading
to changing sites
leading to delay and
ineffective use of
resources
Early warning signs
BFD will be bound to a map with areas agreed for
afforestation/reforestation with maximum 15% discrepancy.
Livelihood activities will start only when areas is confirmed for
BFD, IDA team,
and AF
Map will be agreed
within 2 months of
Project inception
Requests to change land plots are
received from the BFD
AF will develop Targeting and Selection Strategy (TSS) and Plan
with clear objectives, processes, indicators and scoring system for
selection of areas and beneficiaries for Project activities.
BFD, AF, Third
Party Monitor
First 3 years
Delay in receiving progress report
on public meeting and participation
selection
Report of third party monitoring
Joint planning by BFD and AF in participants selection as
Afforestation/Reforestation beneficiaries and AIG activities
Instead of beneficiaries selection at the Upazila level, selection of
participants at union level through an transparent process
Proper assessment and verification of potential applications of
participants. Well documentation of assessment and selection
process.
92
Issues/Risk/
Objectives
Actions to address the issues
Responsible
agency
Timeline
Early warning signs
Establish proper Grievance Redress Mechanism to handle the
complaints.
Third party monitoring for cross verification
Fiduciary
Lack of procurement
and financial
management capacity
Establish PIU in the BFD and Project Office in AF with qualified
staff and externally hired consultants
BFD, AF
Within 2 months of
Project Inception
Delays in conduct of procurement,
execution of contracts, processing of
payments, filing reports
BFD, AF
Within 6 months of
Project Inception
Delays in reporting
Computerized financial management system will be introduced
with adequate training facilities.
BFD
Within 6 months of
Project Inception
Payment for goods including materials for plantation shall be made
only after inspection of goods on receipt by the accountant officer.
BFD, AF
Throughout Project
Implementation
System to be developed for keeping all procurement related records
and making available of records and documents for internal and
external audit and procurement post reviews by the Bank.
BFD, AF
Throughout Project
Implementation





One Financial Management Specialist and one
Accountant will be hired at PIU who will support both the
BFD and AF
10 Accountant will be hired at 10 Divisional Forest
Offices for physical verification and reporting in
appropriate formats
One Procurement Specialist will be hired at PIU who will
support both the BFD and AF
10 Community Mobilization Officers will be hired at 10
Divisional Forest Offices for community awareness,
monitoring and safeguard support
One Project Manager will be hired at PIU to strengthen
the overall management and technical support.
Financial management and procurement training will be provided to
the PIU staff engaged in the project and a project-specific training
will be provided during the initial stage of the project
implementation.
Data quality assurance and monitoring system to be developed by
adopting new monitoring guidelines and strengthening RS and GIS
93
BFD
Throughout Project
Implementation
Issues/Risk/
Actions to address the issues
Objectives
Internal Accountability System
Need to improve
Regular reporting on the progress and issues to the BCCRF
internal
Management Committee by BFD and AF
accountability
mechanisms
Establish a PIC chaired by the Chief Conservator of Forests to
regular activity review and provide guidance to PIU and AF
Responsible
agency
BFD, AF
Information Dissemination and Transparency
Citizens lack
Undertake regular reporting by PIU and AF project Office on
information for
implementation
project results and
implementation
Appointment of Designated Officers to implement the Right to
Information Act and oversee proactive disclosure of budget,
program, and performance information through means suitable to
reaching the citizens
BFD, AF
Timeline
Early warning signs
Throughout Project
Implementation
Delay in reporting
Committee to be setup before Project
Inception
Committee not set-up timely
Throughout Project
Implementation
Lack/delay of routine reporting
By Project
effectiveness
Delays in appointing Designated
Officer
Delays in uploading and updating of
information on website
Regular information dissemination through website, meetings with
stakeholders, and posting of information in UP and Upazila offices
in targeted communities
AF will develop and implement Information Dissemination and
Awareness Strategy and Plan, including designation of an RTI
Designated Officer, which will include all messages, means and
audience for delivering information to local government, target
communities to enhance participation and inclusion.
Within 2 months from
Project inception
Afforestation and Reforestation
Poor quality seeds
resulting less
germination and
seedling
Poor Nursery
practices
Training of BFD field staff for identification and collection of
mature and quality seeds
At least 10 percent seeds and site checking by the DFO to ensure
quality
BFD, Third
Party Monitor
First 3 years
Field visit report of DFOs
Field supervision of the Bank
Consultants
Third Party Monitoring Results
Third party monitoring for quality control
Hiring an international nursery expert to review the nursery and
operations manual
94
Issues/Risk/
Objectives
Improve monitoring
of actual plantation
Actions to address the issues
Identification of the proposed land during the project preparation
Responsible
agency
BFD
BFD, Firm
During Preparation
and Done
Early warning signs
Strong baseline for comparison later
on
First year and last year
of Project
Mapping of the proposed plantation sites by RS, GIS and field
verification at the beginning of the project. Similar exercise and
comparison at the end of project to identify the difference
Third party monitoring for cross-checking the actual plantation
areas
Timeline
Third Party
Monitor
Throughout project
implementation
Third party monitoring results
Throughout
implementation
Absence of community monitoring
Illegal Forest Resource Extraction
Illegal deforestation
and forest resource
extraction
Local communities and other stakeholders will be made aware of
the value of forest resources and the potential benefits of
sustainable forest management through capacity building and
awareness program, reporting to community assemblies.
BFD, AF
Reporting for the different sources
including media
During plantation, involving local communities as labor, and in
Community Patrolling Groups to protect from illegal and
unsustainable use.
Alternative livelihoods support to the forest dependent communities
Support the community to work as forest guard (volunteer) in order
to protect forest and new plantation.
Capacity of the BFD Field staff strengthened to protect and
communicate about the illegal deforestation and forest resource
extraction.
Fund Management at Community Level
Management and
ownership of assets
and finances at the
community level
provided by the
project
AF will develop Guidelines for Rules and Regulations on
Management of Mutual Rotating Saving and Loan Program
(MRSLP). These guidelines will ensure arrangements for effective
and transparent management of funds at the local level, information
dissemination on allocation and repayments.
AF will develop Exit Strategy with clear procedures, mechanisms
for transfer of ownership over finances and assets provided by
project.
95
AF
Three month of
Project inception
AF and partner NGOs will monitor
compliance of group MRSLP with
general guidelines
Partner NGOs will review book
keeping at the community level for
updated records
Third year of Project
implementation
Third party monitoring reports
Annex 7. Economic and Financial Analyses
1.
The economic and financial analyses of the project are based on the Cost-Benefit
Analysis (CBA) approach.
The economic analysis includes separate CBAs for
Components 1 and 2, and then captures the results into an aggregated CBA at project level.
The financial analysis addresses the financial viability of the project from the perspective
of the main stakeholders involved: Government (Forest Department, BFD) and
communities.
Economic analysis
2.
The economic analysis includes four CBAs, relating to: (i) Component 1.
Participatory afforestation and reforestation (US$22 million); (ii) Component 2.
Alternative livelihoods to support forest communities (US$4 million); (iii) Integrated
analysis for Components 1 and 2; and (iv) Integrated analysis at project level (except for
Component 4. Project management). All analyses use a discount rate of 10 percent and a
time horizon of 30 years, to account for the climate change benefits of the project.
(i) Component 1. Participatory afforestation and reforestation
3.
Table 7.1 identifies the main costs and benefits related to Component 1. The
indirect benefits from coastal forests (e.g., off-shore fishery, storm protection) differ
substantially from those provided by hilly forests (e.g., landslide protection). Thus, the
CBA is carried out separately for coastal and hilly forests.
Table 7.1: Benefits and costs linked to Component 1
Type of benefit
Costs
Direct uses
Benefits
Coastal areas
Afforestation costs
Opportunity cost of land
Rehabilitation of field infrastructure
Beneficiaries’ selection, monitoring
and evaluation
Wood (strip zone)
NWFPs
Hilly areas
Afforestation costs
Opportunity cost of land
Rehabilitation of field
infrastructure
Beneficiaries’ selection,
monitoring and evaluation
Wood (buffer)
NWFPs
Indirect uses
Off-shore fishery
Protection from landslides
Storm protection
Non-use
Biodiversity
Biodiversity
Note: Forests may provide additional benefits compared to those mentioned in the table. For example,
forests may protect against storm surges also in hilly areas that are close to sea and vulnerable to cyclones.

Coastal areas
4.
This section estimates the costs and benefits related to coastal forests on 7,200 ha
and 1,672 km. They include mangroves (5,700 ha), mound (427 ha), Jhaw (410 ha),
96
enrichment (260 ha), non-mangrove plantations (400 ha), golpata (635 km) and strip
(1,037 km). Wood will be harvested from the strip zone, with a rotation period of 15
years. Table A at the end of this Annex presents the detailed distribution by year of the
estimated costs and benefits.
Costs
5.
Afforestation and harvest. Afforestation costs refer to nursery raising, plantation
and maintenance. Thirty percent of total area is afforested in the second project year, 50
percent in the third year and 20 percent in the fourth year. Each plantation is preceded by
nursery raising and followed by two-year maintenance. Labor cost varies from as low as
32 percent of total cost of nurseries and plantation (for golpata) to 99 percent of the total
cost of maintenance (for strip plantations).31 We use a conversion factor of 0.75 to express
the opportunity cost of unskilled labor in coastal areas.32 Accordingly, the PV of the cost
of afforestation is estimated at BDT. 380 million and that of the harvest cost is BDT. 30
million. Adding up these estimates, total cost of afforestation and harvest attains BDT.
410 million.
6.
Opportunity cost of land. This is the value of activities or land uses that will be
forgone on the areas afforested by the project. Currently, this area is used primarily for
grazing and fishing. We assume that only grazing will be restricted for 3 years (plantation
and maintenance years), to allow for natural growth. The net returns from fodder grazed in
this area are roughly estimated at BDT. 18,000 per hectare per year.33 Therefore, the
opportunity cost on 7,200 ha of land is BDT. 269 million.34
7.
Rehabilitation of field infrastructure. Assuming that the efforts of rehabilitation
(about US$3 million) are equally distributed between coastal and hilly areas, the PV of the
cost related to coastal areas is BDT. 93 million.
8.
Beneficiaries’ selection, monitoring and evaluation. Selection of project
beneficiaries occurs in the first project year. Monitoring and evaluation cover the
successive years of the project. The PV of this cost is estimated at BDT. 38 million.
9.
Overall, the economic cost on coastal areas is BDT. 811 million.
31
Labor cost varies according to the type of forests. It represents 45 percent of the total nursery and plantation cost for mangroves, 83
percent for mound, 40 percent for jhaw, 32 percent for golpata, 45 percent for enrichment, 43 percent for non-mangrove, and 40 percent
for strip plantation. Labor cost accounts also for 79 percent of the total maintenance cost for mangroves, 89 percent for mound, 84
percent for jhaw, 90 percent for golpata, 97 percent for enrichment, 91 percent for non-mangrove and 99 percent for strip (Choudhury
2012).
32
It represents the shadow wage conversion factor for skilled and unskilled labor in the construction and crop cultivation sectors in
Bangladesh. It is estimated by dividing the shadow wage of unskilled labor (BDT150) to the market wage (BDT 200). The former is
calculated based on the market wage during peak and lean seasons, unemployment rate and the social cost of consumption. Reference is
made to the detailed calculations are provided in the economic analysis of the Coastal Embankment Improvement Project (CEIP).
33
It corresponds to the difference between the gross benefit of BDT. 30,000 (2000 bags of fodder at a price of BDT. 15 per bag) and the
labor cost of BDT. 12,000 (60 days).
34
It is assumed that grazing does not affect the strip plantations.
97
Benefits
10.
The estimation of the benefits below is based on the assumption that forests are
maintained during and after the end of the project. This is particularly important in case of
intangible services such as storm protection benefits provided by mangroves. To account
for any uncertainty, the CBA is followed by a sensitivity analysis to different deforestation
rates.
11.
Timber. Timber will be extracted from strip plantations in the 15th year. According
to the FD, yields include poles (7-8 m3/km), saw logs and peeler logs (19 m3/km) and fuel
wood (11 m3per hectare). Average stumpage prices are BDT. 70 per pole, BDT. 12,600
per m3 of saw logs and peeler logs and BDT. 1,260 per m3 of fuel wood. Accordingly, the
PV of wood benefits from 1,037 km of strip is estimated at BDT. 239 million.35
12.
NWFPs. Statistics on harvested NWFPs in Bangladesh are scarce and outdated. It
is however acknowledged worldwide that mangrove forests provide a wide range of
benefits, such fisheries, bamboo, honey, coastal protection, etc. Table 7.2 provides
available estimates for different NWFPs from mangroves in Asian countries. Rönnbäck’s
(1999) summary of mangrove valuation studies reveals that the marketed value of fisheries
dependent on mangroves ranges from US$850 to US$16,750 per hectare per year. Other
estimates are substantially more conservative, such as for India and Southern Thailand.
Adjusting the most conservative estimate (US$88 per hectare in Southern Thailand) to year
2011, and considering a survival rate of 80 percent (World Bank 2002), the annual NWFPs
benefit would be US$87 per hectare in 2011. Assuming that mangroves will provide these
benefits starting with the fifth year, the PV of these benefits is BDT. 374 million.
Table 7.2: NWFPs provided by mangroves
Country
Thailanda
Several
countriesb
India
Type of benefit
aquaculture, mollusks,
crustaceans, mangrove forest
products
fish, crustaceans, mollusks
Results (US$/year)
1,336-6,011/ha
Author
IUCN 2006
750 – 16,750/ha
Rönnbäck 1999
fodder, fuel wood, construction,
420/ha
Gujarat Ecology
crabs and mudskipper
Commission 2004
Southern
in-shore fish, shrimp, crab,
88/ha
Sathirathai and Barbier
Thailand
mollusks, honey, wood for fishing
2001
gear
Bangladesh and
fuelwood, fish, shrimp, crab,
284/ha
Santhakumar et al. 2005
India
honey
India
in-shore fish
1.9/ha
Badola and Hussain 2003
Notes: a Ban Naca and Ban Bang Man; b review of studies carried out in Indonesia, Malaysia, Philippines,
Thailand, South Africa, Australia, etc.
35
Additional benefits include wood removals from thinning, for which no data is yet available.
98
13.
Off-shore fishery. By fertilizing the sea, mangroves serve as breeding and feeding
grounds to support off-shore fishery36 (Ramaiyan et al. 2002). Fish diversity tends to be
higher during winter season and lower during monsoon (Saravanakumar et al. 2009;
Kathiresan and Rajendran 2002). No study has estimated the value of off-shore fishery
provided by mangroves in Bangladesh. Sathirathai and Barbier (2001) estimated this value
in Southern Thailand at US$21-69, averaging to US$45 per hectare of mangrove37.
Assuming that the project’s mangroves will provide these benefits starting in the fifth year,
the PV is BDT. 191 million.
14.
Storm protection. Available literature focuses mostly on the linkages between
mangroves and storm protection benefits. Though their ability to protect against storm
damages has been much debated, recent studies argue that mangroves can provide
significant protection from surge during cyclones (Box 1). We estimate the protective role
of the project’s mangroves in terms of averted deaths and house damages based on the
most comprehensive work to date (Das and Vincent 2009; Das 2009).
Box 1. Do mangroves protect against storm surges? (Findings from available
literature)
Efforts to estimate the coastal protection benefits of mangroves are difficult, due to a high degree of spatial
variation in impact, depending on topography, vegetation properties, and the types of storms involved. For
example, Kabir and others (2006) model the effect of mangroves in reducing storm surge from a 1970
cyclone on Hatia Island in Bangladesh. They find that while in some locations mangrove afforestation with a
width of 133-600 meters leads to reduction in storm surge height of 0.18-0.45 meters, in other locations the
protective benefits were negligible.
Mazda and others (1997) study mangrove zone on the Tong King delta in Vietnam, and find no significant
reduction in storm surge in areas with immature mangrove cover, but wave height reduction of 20 percent per
100 meters of mangrove in areas with sufficiently tall trees. Badola and Hussain (2005) measure economic
losses in three villages in Orissa hit by a 2005 cyclone, and find the greatest loss per household was suffered
in a village with an embankment but no mangroves ($153.74), followed by a village with no embankment
and no mangroves ($44.02) with the least damage occurring in a village with mangroves ($33.31). Barbier
(2007) estimated the storm protection value at US$14,200 per hectare of mangroves per year, through the
cost of constructing artificial breakwaters to prevent coastal erosion.
The above studies are however constrained by several drawbacks, including non-consideration of socioeconomic, environmental factors and meteorological variables such as sea level elevation and radial wind.
More recent research (Das and Vincent 2009; Das 2009) incorporated these influences in more
comprehensive statistical analyses. The authors find that in case of 1999 Orissa cyclone, mangroves in
Kendrapada district significantly reduced the number of deaths within 10 km of the coast. Based on the same
cyclonic event, they estimate that mangrove width should be at least 0.35 km to avoid human death and 3 km
to provide protection to houses. In addition, a recent review found that mangroves can protect against
erosion, storm surges and potentially small tsunami waves (Gedan et al. 2010).
15.
Averted deaths. Das and Vincent (2009) analyzed statistically the role of coastal
mangroves in averting deaths caused by the 1999 super cyclone Orissa. They predicted
36
37
This function is an indirect use value, which is different than the in-shore fish catch, estimated within the NWFPs section.
The benefit remains the same after adjustment with the survival rates and differences to 2011.
99
that mangroves within 10 km of the coast saved 0.0148 lives per hectare38. We assume
that the project’s mangrove plantations provide a similar protective value against super
cyclones in Bangladesh.
16.
Cyclones hit the coastal regions of Bangladesh every year. Table 7.3 provides basic
information about the different types of cyclones that make landfall in the country. Each
year, the probability of a super cyclone is at least 10 percent (Dasgupta 2010). Thus, the
project’s mangroves (5,700 ha) would be able to save 84 lives with a probability of 10
percent in the fifth year of analysis.
17.
Coastal population in Bangladesh is projected to grow 1 percent per year until
2050. At the same time, the development of alternative protective measures over time (e.g.
cyclone shelters, more resilient houses) is expected to reduce forests’ lifesaving benefit.
Accordingly it is assumed that, over time, the protective role of mangroves will decrease
proportionately with the trend of more resilient houses,39 until 2050.
Table 7.3: Types of cyclones in Bangladesh
Type of cyclone
Super cyclone
Very severe cyclone
Severe cyclone
Wind velocity (km/h)
> 220
119-220
90-119
Storm surge (m)
6-7.8
2.5-6
1.5-2.5
Probability of occurrence every
year (%)
10
20
30
Source: MCSP (1993) for wind velocity and storm surge. Dasgupta (2010) for probability of occurrence.
18.
Attaching a monetary value to human life is difficult. The most appropriate
measure of the benefit from reduced risk of fatality is the “Value of Statistical Life” (VSL),
which seeks to estimate the monetary equivalent of improved well‐being for individuals
from reduced mortality risk. Local surveys estimating the VSL for Bangladesh are not
available. Thus, the VSL for Bangladesh is estimated at US$230,000, after updating the
United States central estimate of US$7.4 million (2006) available from the Environmental
Protection Agency (EPA) with price adjustment between 2006 and 2011 and GDP
differential between United States and Bangladesh.40
38
The model predicted that there would have been 1.72 additional deaths per village within 10 km of the coast if mangrove width had
been reduced to 0.
‘Pucca’ houses are currently the most resilient houses and form about 4 percent of total houses. Over 30 year period,
they are expected to increase to 71 percent (based on data collected from the country’s Household Income and
Expenditure Survey (2005) and the Statistical Yearbook of Bangladesh (2006).
40Other studies in Bangladesh (World Bank 2010). Bangladesh: Economics of Adaptation to Climate Change Study;
BDS. 2012. The Cost of Adapting to Extreme Weather Events in a Changing Climate; DEC Research Policy Working
Papers 5280 and 5469) use the same method for estimating the VSL. It is expected that the estimated VSL will grow over
time, as a result of improved education and income due to economic growth. However, because no information is
available on the predicted increase in the VSL, this analysis conservatively assumes a constant VSL value over time.
39
100
19.
Conservatively assuming only 50 percent of the VSL estimated above, the lifesaving benefit of mangroves is valued at US$5million or BDT. 382 million. This value is
just a rough estimation of the protective role of mangroves.41
20.
Averted house damages. Das (2007) estimated the protective benefit of mangroves
in terms of averted damages to residential property caused by the 1999 super cyclone
Orissa. She found that mangroves significantly averted the number of fully collapsed
houses, to the extent of US$23,200 per kilometer width of forests or US$1218 per hectare
of forests. Assuming a similar protective value for this project means that one-hectare of
mangroves in Bangladesh would avert US$560 worth of housing damages caused by super
cyclones, after adjusting for GDP differentials.
21.
The number of households in the districts worst affected by cyclone Sidr was 12.4
million in 2007 (GoB 2008). Projection of population in coastal regions by 2050 indicates
that an additional 7.1 million inhabitants will be exposed to significant damages from
storm surges in a changing climate. Considering an average family size of 4.9, this
corresponds to 1.5 million houses. In addition, the larger areal extent of a cyclone under
climate change means that an additional 1.6 million houses could be damaged from a 10year return period cyclone due to climate change (Dasgupta 2010). Thus, by 2050, the
number of houses vulnerable to storm surge from a 10-year return period cyclone would be
15.5 million. This corresponds to an average annual increase of the number of houses of
0.5 percent per year.
22.
We assume that the protective value provided by mangroves start in the fifth
project year (US$560/ha) and increase by 0.5 percent per year for the 30-year period.
Accordingly, the PV of house protection benefits is estimated at US$2.1 million, or BDT.
168 million (b). As in the case with the benefit of averted deaths, this valuation is a rough
approximation of the overall benefit.
23.
Overall, the economic benefits in coastal areas add up to BDT. 1.4 billion.
Cost-Benefit Analysis for coastal areas
24.
The results of the CBA in coastal areas are positive, with a NPV of BDT. 544
million, a benefit-cost (B/C) ratio of 1.7 and an Internal Rate of Return (IRR) of 13 percent
(Table 7.4).
Cost-Benefit Analysis for hilly areas
25.
The analysis includes the costs and benefits related to the core (3,878 ha) and
buffer zones (5,925 ha). Timber will be harvested from the buffer zone, with a rotation
period of 15 years. Table B at the end of this Annex presents the distribution by year of
the estimated costs and benefits.
41
It may easily underestimate the benefit, by not including averted losses in terms of injured people.
101
Costs
26.
Afforestation and harvest. Afforested lands on hilly areas are distributed similarly
to those on the coast: 30 percent of total area in the second project year, 50 percent in the
third year and 20 percent in the fourth year. For both core and buffer zones, labor cost is
about 40 percent of the total cost of nurseries and plantation and about 90 percent of the
total cost of maintenance. We use a conversion factor of 0.75 to express the opportunity
cost of unskilled labor in coastal areas42. Accordingly, the PV of the cost of afforestation
is estimated at BDT. 473 million and that of the harvest cost is BDT. 333 million. Adding
up these estimates, total cost of afforestation and harvest attains BDT. 644 million.
27.
Opportunity cost of land. The land to be afforested on hilly areas is currently used
for grazing and fuel wood collection. The returns from these activities have been roughly
estimated at about BDT. 20,800 per hectare per year.43 Considering that the project will
forgo the benefits from these activities during plantation and maintenance, the opportunity
cost of land is BDT. 424 million.
28.
Rehabilitation of field infrastructure. Similarly to the case of coastal afforestation,
the PV of this cost is BDT. 93 million.
29.
Beneficiaries’ selection, monitoring and evaluation. As in the case of coastal
forests, The PV of this cost is estimated at BDT. 38 million.
30.
Overall, the economic cost in hilly areas is BDT. 1.2 billion.
Benefits
31.
Timber. Timber is expected to be extracted from buffer zone in the 15th year.
According to the Forest Department (FD), yields include poles (210/ha), saw logs and
peeler logs (17 m3/km) and fuel wood (13 m3/ha). Average stumpage prices are BDT. 70
per pole, BDT.12,600 per m3 of saw logs and peeler logs and BDT.1,260 per m3 of
fuelwood. Accordingly, the PV of wood benefits is estimated at BDT. 1.3 billion.44
32.
NWFPs. Forests in Bangladesh provide many NWFPs such as food, medicine,
honey, essential oil, spice, resin, gum, latex, fiber and floss, bamboo and cane, broomgrass, sun-grass, mushrooms, tamarind (Zashimuddin 2004). Though the important
NWFPs generate only about 6 to 8 percent of the total revenue of the BFD, they support
the economic activities of at least 0.6 million people (FAO 2011). No statistics on the
NWFPs collected from hilly forests exist in Bangladesh. In addition, attaching a monetary
42
It represents the shadow wage conversion factor for skilled and unskilled labor in the construction and crop cultivation sectors in
Bangladesh. Detailed calculations are provided in the economic analysis of the Coastal Embankment Improvement Project (CEIP).
43
This corresponds to the net returns from grazing (BDT. 20,000) and from fuel wood (BDT. 2800/ha, similar to the benefit estimated
for Karnataka Watershed project in India).
44
Additional benefits include wood removals from thinning, for which no data is yet available.
102
value to the NWFPs is extremely difficult, primarily because many of these products have
subsistence rather than market uses. A review of the NWFPs estimates provides a mean
value of US$200 per hectare of forests in India (Chopra 1993, adjusted to 2011 prices).
Assuming that the buffer and core plantations will provide similar benefits starting with the
fifth year, the PV is BDT. 1.5 billion.
33.
Protection against landslides. It is commonly known that in steep terrain, forests
protect against landslides by modifying soil moisture regime, by providing root cohesion to
soil and by maintaining secondary permeability in the soil (Siddle et al. 2006). However,
recent research shows that in extremely vulnerable zones, erosion from steep slopes occur
independently of the land use. Under certain circumstances, deforestation may increase
erosion; reforestation helps moderate the effects of some extreme rainfall events, but
without stopping erosion and destructive sediment transport45 (Wasson et al. 2008). Thus,
the role of reforestation in protecting against landslides is not yet thoroughly understood.
Estimating the forests’ benefit in preventing landslides is thus very difficult.
34.
Landslides are common phenomena in Bangladesh, particularly in Chittagong and
Chittagong Hill Tract region. Unsustainable land use, hill cutting and deforestation are
blamed as major factors aggravating landslide vulnerability in these areas (Mahmood and
Khan 2008). The frequency and intensity of landslides have increased dramatically in
recent years: a landslide inventory prepared by the Disaster Management and Relief
Division (DMRD) reveals 24 major landslide events in Cox Bazar and Chittagong districts
during 2003-2010 (DMRD 2011). The landslide in 2007 in Chittagong was the worst,
causing 128 deaths and damaging about 900,000 houses.
35.
Forests’ benefit in preventing landslides can be estimated through the avoided
damages that these landslides would cause in the absence of forests. In South Asia, the
effects of forest conversion on landslides have been little studied, thus uncertainties exist
related to effects of land cover change46. Evidence of the landslide impact caused by
deforestation has been found only in Indonesia47 and Thailand48 (Sidle et al. 2006). In
central Japan, forest cover is estimated to reduce landslide erosion 4-5 times compared
with sites that lack substantial tree root strength49 (Imaizumi et al. 2008). In North
America, clear cutting in steep terrain has been shown to increase landslide erosion by 210 folds (Sidle et al. 1985). However, none of these studies estimated these benefits in
monetary terms. These examples confirm the difficulties to predict the reduction in the
45
In other cases, reforestation may trigger erosion and landslides, if undertaken inappropriately, because of the weight of the trees.
For example, the 1988 landslides in northern Thailand during an intense monsoon storm yielded somewhat different conclusions
related to the role of converted forest cover to landslide erosion: DeGraff (1990) suggested that forest conversion to weaker-rooted
rubber plantations was responsible for a higher level of land sliding ; conversely, Phien-Wej et al. (1993) noted that landslide density
appeared independent of vegetation cover, implying that the storm magnitude overwhelmed the stabilizing influence of the different root
strengths.
47
In Sumatra (Indonesia), conversion of tropical forests to coffee plantations produced 3 shallow landslides with a soil loss of 31-113
m3 per landslide occurring 14-16 years after conversion.
48
In northern Thailand, river incision and deforestation caused 16 landslides with a soil loss of 25-5260 m3 per landslide.
49
These benefits appear to be primarily associated with reducing the frequency of smaller landslides.
46
103
frequency and magnitude of landslides caused by the project activities. Thus, this
valuation will make use of estimates from other studies in contexts as similar as possible.
36.
In North African countries, forests’ protection against erosion, floods and
landslides have been estimated in the range of US$35-42 per hectare of forests (Croitoru
and Merlo 2005). The economic value of forests for preventing avalanches is estimated at
around US$100 per hectare year in open expanses of land in the Swiss Alps up to more
than US$170,000 per hectare per year in areas with valuable assets (ProAct 2008). In
Indonesia, the annual value of forests’ protection function against floods and landslides
was estimated at US$34 per hectare of forests (IES 2009). Conservatively assuming that
the project’s hilly forests provide US$34 per hectare per year in terms of erosion, floods
and landslides prevention, the PV of this benefit after the 5th year would be BDT. 254
million. This is a very conservative estimate, as it does not capture the lifesaving and
other avoided damages that could be potentially high.
37.
Overall, the economic benefits in hilly areas add up to BDT. 3.08 billion.
Cost-Benefit Analysis for hilly areas
38.
The CBA in hilly areas provides a NPV of BDT. 2.6 billion, a B/C ratio of 2.6 and
an IRR of 14 percent (Table 7.4). Afforestation costs account for the majority of the total
cost.

Coastal and hilly areas
39.
Overall, Component 1 provides net economic benefits of BDT. 2.4 billion over 30
years. It has a B/C ratio of 2.2 and an IRR of 14 percent (Table 7.4). It should be
emphasized that these benefits depend on (i) the ability to maintain the plantations during
and after the end of the project50; (ii) adopting coastal mangroves under certain technical
parameters, such as minimum width; and (iii) adopting appropriate species on hilly areas
that are able to provide good protection against landslides and erosion.
Table 7.4: Cost-Benefit Analysis of Component 1 (present value, BDT. million)
Costs
Afforestation
Opportunity cost of land
Rehabilitate field offices
Beneficiaries selection
Monitoring
Benefits
Wood
NWFPs
Off-shore fishery
50
Coastal forests
811
410
269
93
5
33
1,355
239
374
191
Hilly forests
1,200
644
424
93
5
33
3,080
1,322
1,504
n.a.
Total
2,011
1,054
693
187
11
66
4,435
1,561
1,878
191
In absence of accurate information, the economic analysis was based on a survival rate of 80%, according to the Forest Department.
104
Storm protection (averted deaths)
Storm protection (averted house damages)
Landslide protection
Net benefits
B/C ratio
IRR
Notes: n.a. = not applicable
382
168
n.a.
544
1.7
13%
n.a.
n.a.
254
1,880
2.6
14%
382
168
254
2,424
2.2
14%
40.
Sensitivity analysis. The success of this component is largely dependent on the
ability to maintain these forests. Thus, we conduct a sensitivity analysis to different
deforestation rates, assuming constant deforestation rate every year after project ends 51.
Table 7.5 shows that investment in coastal forests becomes unprofitable if deforestation
rate exceeds 3 percent per year on average. In hilly areas, the NPV is less sensitive to
deforestation rates. However, the investment may become less attractive than alternative
investments at deforestation rate higher than 8 percent on average.
Table 7.5: Sensitivity analysis to different deforestation rates
Deforestation rate in
coastal areas
1%
2%
3%
4%
5%
IRR in coastal areas
Deforestation rate in
hilly areas
1%
3%
5%
8%
9%
12%
11%
10%
9%
8%
IRR in hilly areas
14%
12%
11%
10%
9%
(ii) Component 2. Alternative livelihoods to support forest communities
41.
To maintain natural growth of afforested areas under Component 1, access of forest
communities to these lands will be limited for at least 3 years. As a result, communities
will forgo benefits such as grazing and fuel wood collection in afforested areas. To
compensate for these losses, Component 2 provides communities other income-generating
activities and benefits from plantation thinning. This section estimates the economic IRR
of this component, focusing only on small-scale livelihood activities at household level.52
About US$936,400 (BDT. 76 million) will be channeled as endowment fund to
communities. It is conservatively assumed that the endowment fund will be replenished
and used for at least the project lifetime, namely 5 years. If an average-size grant of BDT.
7,000 per household is considered53, the endowment fund would cover about 11,000
households.
51
In addition, we simply assume that benefits will be lost proportionally to the deforestation rate, because of lack of more accurate data.
It was not possible to carry out an analysis of the economic activities at the community level, due to lack of data.
53
A review of the activities carried out in 2010 shows that generally, investments ranged between BDT. 4,000-10,000, or BDT.7000 on
average (AF 2011).
52
105
Costs
42.
Direct costs of this component include the funds channeled as endowment funds
and all other administrative costs (e.g. selection of NGOs in different areas, supervision,
training), which total US$ 4 million, or BDT. 328 million. The PV of these costs amount to
BDT. 298 million.
43.
Indirect costs include forgone benefits of grazing and fuel wood during the 3-years
limited access in the afforested land. Forgone benefits are estimated at BDT.
2,700/household (hh)/year - and include BDT. 2,100 worth of grazing54 and BDT. 600
worth of fuel wood.55 Total forgone benefits for 11,000 households amount to BDT. 30
million per year. The PV of these costs amount to BDT. 74 million.
44.
Overall, the PV of the total cost is BDT. 372 million.
Benefits
45.
Improved communities’ welfare. AF has a long track record on promoting
alternative income generating activities (AIGAs) among forest dependent people and
reducing their dependence on forest resources. According to crude estimates, gross returns
of AIGAs ranges from 1.2 to 3.1 times the investments, averaging 2.1. Assuming the
average profitability rate and an investment of BDT. 7,000, the annual gross returns for
11,000 households reach BDT. 161 million from the second to the fifth year.56 The PV of
these benefits would be BDT. 511 million.
46.
Forest protection benefits. AIGAs are meant to increase protection of the project’s
afforested lands by releasing pressure on forests. These benefits have been already
included and estimated in the economic analysis of Component 1.
Cost-Benefit Analysis
47.
Overall, Component 2 provides net economic benefits of BDT. 139 million. It has
a B/C ratio of 1.4 and an economic IRR of 22 percent (Table 7.6). Because the above
analysis is based on crude estimates, no strong conclusions can be drawn.
54
Hossain et al. (2005) estimate that the net benefit per cow is about BDT.10/hh/day. The average number of cattle per household is
about 1.07 in Bangladesh (BBS 2009). Considering a grazing period of about 200 days per year, the benefit from fodder is estimated at
about BDT. 2,100/hh per year.
55
Annual fuel wood consumption in Bangladesh is about 0.1 m3 per capita (Sohel et al. 2006), or 0.5 m3 per household. At a price of
BDT.1,260 per m3, the net benefit from fuel wood consumption would be around BDT. 600 per year.
56
Communities will benefit also from wood from thinning from strip plantations on coastal areas and from the buffer zone in hilly
areas, in the 4th and 7th year after plantation. Unfortunately, it is not known how much wood can be derived from thinning, on a per
household basis.
106
Table 7.6: Cost-Benefit Analysis of Component 2 (present value, BDT. million)
Costs
Direct costs (endowment fund and administrative costs)
Indirect costs (forgone benefits)
Benefits
Improved communities welfare
Net benefits
B/C ratio
IRR
372
298
74
511
511
139
1.4
22%
48.
A sensitivity analysis to changes in AIGAs’ profitability rates shows that
Component 2 becomes unattractive when gross returns from AIGAs are less than 1.5 times
investment (Table 7.7).
Table 7.7: Sensitivity Analysis of Component 2 (present value, BDT. million)
AIGAs’ profitability ratio
Base analysis (profitability ratio 2.1)
1.75
1.5
1.25
NPV (million BDT.)
139
54
-7
-68
(iii) Integrated CBA for Components 1 and 2
Table 7.8 presents the results of the economic analyses carried out for Components 1 and
2. The integrated IRR is estimated at 15 percent57.
Table 7.8: Cost-Benefit Analysis for Components 1 and 2 (present value, BDT. million)
COSTS
Component 1
- Afforestation
- Opportunity cost of land
- Rehabilitate field offices
- Beneficiaries selection
- Monitoring
Component 2
- Direct costs (endowment fund and administrative costs)
- Indirect costs (forgone benefits)
BENEFITS
Component 1
- Wood
- NWFPs
- Off-shore fishery
2,306
1,054
693
187
11
66
298
74
4,946
1,561
1,878
191
57
Calculated as a weighted average of the IRRs calculated previously by the cost of each component (1 and 2) [14% * (22/26) + 22%*
(4/26) = 15%]
107
- Storm protection
- Landslide protection
Component 2
- Improved communities welfare
Net benefits
B/C ratio
Integrated IRR
550
254
511
2,564
2.1
15%
(iv) Integrated CBA at project level58
49.
Table 7.9 integrates Component 3 in the CBA conducted at the previous step. This
component (US$5.5 million) aims at improving forest management through technical
studies and capacity development. However, these benefits are not measurable and are
expected to take place in the long run. The integrated CBA shows a NPV of BDT. 2.2
billion, a B/C ratio of 1.8 and an IRR of 12 percent. This are conservative results, by not
capturing several benefits that will take place in the future, e.g. strengthened institutional
capacity for monitoring, etc.
Table 7.9: Cost-Benefit Analysis for Components 1, 2 and 3 (present value, BDT.
million)
COSTS
2,740
Component 1
- Afforestation
- Opportunity cost of land
- Rehabilitate field offices
- Beneficiaries selection
- Monitoring
Component 2
- Direct costs (endowment fund and administrative costs)
- Indirect costs (forgone benefits)
Component 3
- Capacity Development
BENEFITS
Component 1
- Wood
- NWFPs
- Off-shore fishery
- Storm protection
- Landslide protection
Component 2
- Improved communities welfare
Component 3
- Strengthened capacity of FD and communities
Net benefits
B/C ratio
IRR
58
except for Component 4. Project management
108
1,054
693
187
11
66
298
74
357
4,946
1,561
1,878
191
550
254
511
Not measurable
2,206
1.8
12%
Financial analysis
50.
This section discusses the financial viability of the project, to ensure that afforested
lands will be maintained beyond the end of the project. The financial viability depends on:
(i) the BFD’s ability to cover the costs related to the afforested areas beyond the end of the
project activity; (ii) the project’s ability to provide co-benefits to the forest community that
would stimulate the maintenance of the project’s forests. Thus, the following paragraphs
conduct a financial CBA at the levels of BFD and of AIGA grant beneficiaries.
Financial Analysis of FD
51.
This analysis includes the financial costs that will be effectively covered by the
BFD and the benefits that will be received.
52.
Costs. As previously mentioned, 30percent of project area is afforested in the
second project year, 50 percent in the third year and 20 percent in the fourth year.
Afforestation is followed by 2-year maintenance, implying that plantations carried out in
the 4th year will need to be maintained during the fifth and sixth years. Since the project
extends on 5 years only, BFD needs to cover the cost of maintenance for the sixth year,
which is equivalent to a PV of BDT. 44 million.
53.
Benefits include revenues from wood harvest, occurring in the fifteen year from
strip and buffer zones. As estimated in the economic analysis, the value of these benefits
reaches BDT. 1.6 billion. It is expected that BFD receive 45 percent of these benefits,59 or
BDT. 703 million.
54.
Overall, the CBA is positive, with an NPV of BDT. 158 million and a Financial
Internal Rate of Return (FIRR) of 36 percent. After project closes, some resources need to
be allocated for forest maintenance. This issue has been discussed during project
preparation.
Financial Analysis of AIGAs-related grant beneficiaries60
55.
To ensure natural growth, access to forest communities to the project’s plantations
will be limited for at least 3 years. As a result, communities will forgo benefits such as
grazing and fuel wood collection in areas designated for afforestation. To compensate for
these losses, the project will provide communities grants to support AIGAs and benefits
from plantation thinning. We assume that each targeted household receives an average
grant of BDT. 7000 in the 1st project year which provides revenues during second-fifth
years. Costs include forgone grazing and fuel wood benefits during the first 3 project
59
Another 45% goes to the selected beneficiaries and 10% to a tree farming fund.
This section focuses only on small-scale livelihood activities, at household level. It was not possible to carry out financial analysis of
the economic activities at the community level, due to lack of data.
60
109
years, which are estimated at BDT. 6,700/ha in PV terms. Benefits include revenues from
AIGAs, which are valued at about 1.7 times the investment61, or BDT. 37,600 in PV terms.
Thus, the financial CBA is positive with an NPV of BDT. 27,600 per household. The
NPV could be substantially higher with the increase in the loan size and profitability rate
of the AIGAs. For example, an increase in the loan to BDT. 10,000 per household and of
the profitability rate to623.1 would lead to an NPV of BDT. 82,600 per household over 5
years.
56.
Because the above discussion is based on crude estimates, no strong conclusions
can be drawn. However, it appears that on average, the net returns from alternative
livelihoods cover the forgone benefits from afforestation in both coastal and hilly areas.
Adopting AIGAs that provide higher benefits compared to deforestation is the minimum
requirement towards maintaining the project’s forests. However, the experience of
Integrated Conservation and Development Projects (ICDPs) has shown that offering
profitable alternative activities may not be enough to prevent households from continuing
environmentally damaging activities, as households may well undertake both, thus gaining
the benefits of the alternative activity without forgoing those of the damaging activity.
Moreover, there may be a timing problem if it takes some time for AIGAs to become
profitable. To avoid these problems, the project will incorporate lessons drawn from the
experience of other projects63.
61
Based on individual grants of BDT 7,000 per household and a profitability rate of 1.7 (less than average), according to data from past
projects of AF. See section (ii) of the economic analysis for more details.
62
based on AF data.
63
For example, the BolsaFloresta Program in the Brazilian state of Amazonas adopted an approach based on conditionality: households
that commit not to deforest receive both assistance in establishing sustainable production systems in agricultural areas and a nominal
monthly payment, conditional on complying with the no deforestation rule.
110
Table A. Component 1: Detailed CBA of afforestation in coastal area (base analysis, BDT. million)
COSTS
Afforestation
costs
Opp
cost
land
20
95
155
142
88
25
0
39
104
130
91
26
Years
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
NPV
BENEFITS
Rehabilitation
field offices
Beneficiaries
selection
25
25
25
25
25
6
Monitoring
and
evaluation
(4)
13
13
13
58
410
269
93
5
33
TOTAL
COSTS
Wood
(strip)
50
159
297
310
217
51
58
263
811
239
Note: * calculated as total benefits – total costs
111
NWFPs
(mangroves)
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
374
Offshore
fishery
21
21
21
21
21
21
21
21
21
21
21
21
21
21
21
21
21
21
21
21
21
21
21
21
21
21
191
Storm
protection
96
95
94
93
92
91
90
89
88
87
86
85
83
82
81
80
78
77
76
74
73
71
70
68
67
65
550
TOTAL
BENEFITS
NET
BENEFITS
*
158
157
156
155
154
153
152
151
150
149
411
146
145
144
143
142
140
139
138
136
135
133
132
130
129
127
1,355
IRR
-50
-159
-296
-310
-59
105
156
155
154
153
152
151
150
149
352
146
145
144
143
142
140
139
138
136
135
133
132
130
129
127
544
13%
Table B. Component 1: Detailed CBA of afforestation in hilly area (base analysis, BDT. million)
Years
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
NPV
Afforestation
costs
Opp
cost
land
44
179
224
121
44
13
0
61
163
204
143
41
COSTS
Rehabilitation
Beneficiaries
of field
selection
infrastructure
25
25
25
25
25
Monitoring
and
evaluation
TOTAL
COSTS
6
76
267
428
366
230
59
7
8
9
10
11
12
13
14
348
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
1,200
13
13
13
333
644
424
93
5
33
112
Wood
(buffer)
1,454
1,322
BENEFITS
Landslides
and flood
NWFPs
protection
164
164
164
164
164
164
164
164
164
164
164
164
164
164
164
164
164
164
164
164
164
164
164
164
164
164
1,504
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
254
NET
TOTAL BENEFITS
BENEFITS *
192
192
192
192
192
192
192
192
192
192
1646
192
192
192
192
192
192
192
192
192
192
192
192
192
192
192
3,080
IRR
-75
-265
-425
-362
-33
139
192
192
192
192
192
192
192
192
1313
192
192
192
192
192
192
192
192
192
192
192
192
192
192
192
1,880
14%
Annex 8. Lessons learned for Alternative Livelihoods to Support Forest Communities
component
1.
The Alternative Livelihoods to Support Forest Communities component draws on the
experience of similar types of projects in Bangladesh and the South Asian region. Experience
was gleaned and assessed in consultations with development partners, such as UNDP, EU,
USAID, with Forest Department officials at the national and local level, NGO in Dhaka and in
the regions, local government representatives, as well as with community representatives around
the country. Of particular focus were three development partner-funded initiatives working on
co-management of protected areas and forest resources in Bangladesh: the USAID-funded
Integrated Protected Area Co-Management Project (IPAC), the UNDP/GEF funded Coastal
Wetlands and Biodiversity Management Project (CWBMP), and work undertaken by the
Arannayk Foundation working in the Inani National Park in Cox’s Bazar area. IPAC has been
operational since 2008 and builds on earlier work to develop a model for co- management of
protected areas. All three interventions focus on establishing and sustaining community
involvement in management of resources to maximize benefit and sustainability from those
resources.
2.
Forest resources are under pressure in Bangladesh. The extremely dense population
prompts encroachment of people for agriculture, habitation and industry purposes. According to
the Bangladesh Forest Department, about 40 percent of forest land has been encroached upon
with rate of forest depletion is about 2 percent every year, and it especially concerns deciduous
forests. Reforestation and afforestation activities supported by the Project will therefore not be
sustainable without addressing this pressure. It is necessary to find ways to alleviate poverty and
help local communities build sustainable livelihoods without relying on illegal and unsustainable
harvesting of forest resources. Such livelihood activities should be centered on the poor
households heavily depending on forest and wetland natural resources in order to provide them
with other sources of income than from these resources.
3.
Achieving this goal is a formidable task given the large number of people, many of them
poor, weak institutional framework and social capital at local levels. However, there are several
important lessons from past and ongoing interventions about addressing this challenge better.
These lessons inform how best to obtain the development objective of this component and the
project has a whole in five key areas: engaging communities and inclusion; linkage between
livelihoods and afforestation and reforestation; livelihoods activities; financing arrangements;
and capacity building.
Engaging Communities and Inclusion
4.
Reaching poor and marginalized segments of the communities, dependent on forest
resources requires substantial social mobilization efforts. Many of these people live in relative
isolation, often do not benefit from public services and may have difficulties with market access.
Moreover, frequently these persons are not organized in groups. A key element for targeting
poor and marginalized persons is the creation of resource users’ groups in conservation and
protection of natural resources. When successful, these groups overcome gaps in social capital
and reinforce positive dynamics in building trust, increasing useful feedback mechanisms with
113
external entities like the Forestry Department, mutual assistance, and implementation of
sustainable forestry practices. These groups are formed for effective participation in comanagement of the resources, lobbying users’ interested and protecting rights, and for
engagement in benefits sharing arrangements from the resources. For livelihood improvement
purposes, these groups are formed of households which mostly depend on illegal and informal
extraction of forest resources for subsistence and surplus trade.
5.
In and around protected areas of Bangladesh there are such institutions. Projects have
organized households into Forest Dependent Groups (FDG) or Forest Users’ Groups (FUG),
which together with community leaders and local elite make Village Conservation Forum (VCF).
Representatives of these forums are sent to Co- Management Councils and Co Management
Committees (CMC), which have legal framework promoted by the IPAC program. The process
of forming CMCs is very complex, multi staged and requires extensive outside support. It starts
at the community level with identification of forest dependent households who form Forest
Dependent Groups (FDG), these are at large poor households who in additional to mostly labor
works are engaged in illegal tree felling for timber and collection of fuel wood and other
resources. There have been cases in different projects, especially at the initial stage with
inclusion of not eligible households, while excluding those who indeed depend on forest
resources due to local favoritism. Such occurrences have been later fixed but could be avoided if
there was a clear selection process stipulated from the start of the Project. These groups are
engaged in livelihood activities, capacity building and awareness programs on conservation and
resources degradation, climate change issues. They are provided with technical and financial
support with development of alternative to forest resources income generation opportunities.
The members of these groups are facilitated to arrange monthly meetings which are accompanied
by capacity building and awareness efforts. Usually these groups are comprised of 20-30
households, though the number of members in the group is more steered by available project
resources than the actual number of forest dependent families in the community.
6.
The IPAC and other projects establish various community groups, such as informal
Community Patrolling Groups (CPG), which usually includes members of forest users’ groups.
BFD offices lack staff for effective designated area patrolling and CPGs jointly with forest
officials undertake patrolling to prevent illegal extraction of forest resources. As a form of
compensation, they are usually included in Alternative Income Generating Groups (AIGG) and
get access to project resources. In exchange of work of 32-36 hours a month patrolling they
receive assets, such as rickshaw vehicles or lease of fishponds, or get involved in revolving funds
grant schemes from the project. They are also engaged in Social Forestry activities on a priority
bases. Interviewees on the ground note that the CPGs provide significant support in protecting
forest resources from illegal use.
7.
There are considerable challenges in ensuring inclusion of poor, women, and other
vulnerable groups, including indigenous people in project activities. While the vast majority of
communities living in targeted areas are poor, there is substantial variation among community
members’ relative influence and involvement of several segments, particularly indigenous people
and women is difficult. Furthermore, there is a good deal of variations in terms of forest users as
some extract directly or indirectly resources for commercial purposes and others use forest
products for their own consumption and survival. This challenge has been addressed through
114
several means. Inclusion of poor in project activities is either mandated by project’s
requirements, using village census data on households’ poverty level, access to land, or through
selection process of poor households by local governments and community institutions. In some
projects engagement was ensured through intensive awareness campaigns on the project’s
objectives, tasks and processes. Other projects undertake intensive social mobilization process to
engage all members of communities in selection or affirmation process.
8.
In Bank-funded Empowerment and Livelihood Improvement “Nuton Jibon” Project
(Social Investment Program Project), one of the criteria of eligibility of beneficiaries is that they
should not have any other sources of income for joining group. Since a majority of rural women
usually have no stable source of income, they automatically become eligible for the project
benefits. In other projects, there are requirements for both members of household to participate in
different activities, or there are activities specifically tailored for female members of
communities, such as sewing, weaving, making crafts. At the same time such participation
requires the agreement of their male partners, so not to put women in a difficult situation in their
households as well as in the community.
9.
Communities can be engaged in SF programs. Individuals or groups residing within one
kilometer range from the forest land can apply to the Forest Department to be allocated land
plots for plantations. SF Rules establish rotation period for different types of trees up to sixty
years for Sal forest. Meanwhile, participants of the SF Program can harvest wood from thinning
and pruning of these trees, and from sanitary felling. Benefits from these plantations are to be
shared between participants of the program, Forest Department, local government, land owners
and Tree Farming Fund. Benefits are different for different type of land and trees.
The lessons learnt on targeting benefits and inclusion for the Afforestation and Reforestation
Project:

Information dissemination about Project must be conducted intensively and with
sensitivity to effective means of communication at the outset and seek to reaching all
members of targeted communities. The Project design envisages wide awareness
campaign to inform all targeted communities about the Project, its activities and various
possibilities to participate in it. The choice of tools is important because information
dissemination is challenging. Many persons who should be informed are illiterate or
barely literate; penetration of ICT is minimal; even mobile telephony which is successful
for outreach on other interventions is ineffective due to poor coverage in most forest
areas. The Project will need to prepare brochures particularly targeted to low literacy and
disseminate them to community leaders, through schools and other public institutions.
Special efforts will be made to reach vulnerable groups and respect traditional decision
making systems in IP communities.

Owing to the difficulties of establishing and sustaining forest dependent groups, focus
should be on using existing groups where possible. In forest protected areas, where there
are co- management organizations established by IPAC, the Arannayk Foundation and
other development agents, there is no need to form forest dependent groups but just to
work with existing one. In other areas FDGs might be formed based on other types of
115
existing livelihood development community based groups, since forest dependent
households are largely poor, they might have been already organized into groups by other
projects or initiatives. For example, the Project can build on existing Jibon groups
established by the Empowerment and Livelihood Improvement Project.

Local government, including Union Parishads, as well as Ward Committees will be
engaged in social mobilization process, selection of beneficiaries and delivering services
to these beneficiaries.

The selection process and criteria should be communicated clearly to communities and
communities should be empowered to play a key role in selection and in affirmation of
selected participants. Selection of participants for the groups should be inclusive and
transparent. The Project will need to develop a detailed Targeting and Selection Strategy
with scoring system for assessment of eligibility criteria, such as poverty and well-being
level, level of dependency on forest resources, commitment to participate in Project
activities. A list of selected members will need to be affirmed by communities to verify
eligibility to avoid nepotism and misuse of selection procedures. In addition, all selected
beneficiaries should be interviewed in the course of the baseline survey and results will
be used for monitoring purposes, as well as for cross verification of eligibility of selected
participants.

Only members of concerned community can participate in project activities. The Project
would need to ensure that only affected communities participate in afforestation and
livelihood activities to avoid influx of people from other areas, which in turn can further
increase pressure on fragile forest ecosystems. Establishing this rule clearly at the outset
and incentivizing and empowering the communities to enforce this approach are key
ingredients for success.
Linkage between Livelihoods and Afforestation and Reforestation
10.
Measures are needed to establish a clear linkage of Project afforestation and reforestation
activities with livelihoods development in order to achieve overall project development
objective. Without community members’ recognizing benefits from and placing a value on
afforestation, they will continue to engage in harmful logging and other unsustainable utilization
of forest resources. This linkage can be ensured through engagement of local communities in
forestry management, i.e., in afforestation and patrolling activities, participatory monitoring,
through information and awareness campaigns, and educational programs, especially for youth.
11.
Various projects have tried to link social forestry activities with other directions of
support and with the target beneficiaries. However, that was not always possible, since BFD
makes decision on social forestry areas and Upazila makes decision on participants, the process
is not transparent. But when and where the Social Forestry and alternative livelihoods activities
were combined, they significantly complemented each other and have led to better results.
116
The lessons on linking afforestation and reforestation activities with the AIGs component for
the BCCRF Project:

Opportunities for employment on afforestation and reforestation are an important
contribution to livelihoods unto themselves. The afforestation and reforestation is
expected to generate around 3 million work-days employment for the poor. Identification
of participants for project funded afforestation and reforestation should be done with the
participation and approval of the Union Parishads and Ward Committees, community
based organizations. In addition, all members of the forest dependent groups need to be
included in the afforestation and reforestation activities to raise their awareness on forest
conservation and to ensure their income earning to supplement knowledge, skills and
financing received for livelihood activities.

Mechanisms to provide for long term sustainability of the CPGs, especially in areas of
endangered forest plantations, need to be integrated into project design. Where possible,
CPGs members need to be eligible on a priority bases for the afforestation and
reforestation activities.
Alternative income generating activities
12.
Targeted beneficiaries are poor, vulnerable households who lack education, and often
knowledge and skills about activities other than forest extraction. These households are
vulnerable to various shocks and natural calamities. The most frequent livelihood activities in
existing and past projects relate to agriculture, such as cropping and gardening on homestead or
leased lands, goat and poultry rearing, cattle fattening, fish cultivation; small scale trade and
services, such as establishment of small shops, providing rickshaw services, various cottage
production, such as sewing, embroidering, making cloth, weaving, making bamboo baskets, mats
and furniture. The type of activities depends on project objectives, local conditions, such as
climate and terrain specifics, availability of and easy access to inputs, infrastructure, market
demand, and most importantly existing skills.
13.
There are two major livelihood models supported by various projects:

Option one is to provide support to poor groups of forest users to initiate or scale up
small scale activities for generating income mostly for subsistence purposes with little
surplus traded. These activities are mostly diversified within a group, are of low risk, they
build on available skills and require small investments. These are safe options for poor
and illiterate beneficiaries to provide them with secured subsidiary income. However,
there is a danger that a size of received alternative income can be incomparable to
benefits they would receive by extracting forest resources to keep them out of forest. For
instance, women weaving bamboo baskets for carrying fish receive about BDT. 50 of
profit from one product. She can do 2-3 baskets a day with support of other members of
households. But she would earn about BDT. 200 from fuel wood collected within a day
from the forest. In addition, extraction of fuel wood does not require any inputs but labor.
117

Option two is to provide support to either existing but very small scope or to establish
new business activities, with a larger scope and thus with higher returns. Such activities
are either group based to accumulate more funds for investment or individual businesses
but with local entrepreneurs, who have skills, knowledge, and just need additional
financing to start up such business and support in market linkages establishment. These
are mostly group activities such as joint cropping on leased land, fish cultivation,
ecotourism, and production of energy efficient stoves. These activities are more complex
and require additional or new skills, and larger investments.
Lessons learnt on AIGAs for Climate Resilient Participatory Afforestation and Reforestation
Project

Project might provide two windows of support to targeted areas: one for simple
livelihood activities and one for economic enterprises development. Economic enterprise
development activities should be economically sound and applied only with beneficiaries
who have entrepreneurship skills. There need to be continuing monitoring of micro
enterprise activities with providing technical support and counseling if there are
difficulties occurring and replicating successful enterprises.

Having several households, groups engaged into one activity can improve marketing of
produce and increase beneficiaries’ profit. Group activities will be encouraged for larger
investments and for maintaining social cohesion of group and solidarity. Group produced
products can be taken to the markets in bulk to decrease transportation cost, building
specific links with markets can be facilitated by the Project. AF has successful
experience in organizing that in some of its project sites. However, such group activities
have to be very carefully assessed to avoid failure risk due to over saturating local market
and have clear schemes for benefit sharing among group members to avoid conflict.
Project would seek some economic group activities based on rapid value chain
assessments for each area.

The selection of activities should be carried out very carefully not to increase pressure on
forest ecosystems. Alternative livelihoods activities to be sustainable and indeed
alternative to forest extraction income need to bring higher income that natural resources
extraction activities, be less challenging and safer. In addition some of these activities
can provoke more need in extracting of forest resources, such as bethel leaf production,
which requires bamboo pole for construction or cattle fattening which can lead to grazing
in forest areas and require more collection of fodder from the forest, cropping if
individual has no own land can lead to further encroachment on forest lands. Thus,
project would need to develop and follow environmental checklist for non-eligible
activities.
Financing arrangements
14.
Since forest dependent households are mostly poor people, they need financial support in
changing sources of livelihood. There are different ways of supply of these households with
financial support. IPAC provides groups with in- kind inputs for their livelihood activities or
118
matching grant for Alternative Income Generating business (it provides BDT. 50,000 of
matching funds to business people who invest into eco cottage construction).
15.
Since poor are not able to generate sufficient savings for productive investments,
accumulating group savings allows them to obtain funds in amount and on conditions which are
favorable for start- up small scale enterprises. The AF provides groups with the “revolving
fund” at around BDT. 120,000 (about US$1,500) for a group of about 30 members. Each
member is eligible for a loan of BDT. 5,000 which has to be repaid in a year with no interest
rates. These loans are taken either for expansion of their activities or for a new. Some group
introduced service charge to cover cost of banking transactions, and it is not higher than 5
percent of the received amount.
16.
This scheme is very similar to traditional to development mutual savings scheme
(ROSCA). The AF groups also accumulate saving fund. In IPAC Project, some groups
organized such saving funds as its own initiative. Groups have different amount set as savings
per member from BDT. 5 to BDT. 50 monthly. Many groups just lack knowledge and need
support on appropriate use of these funds and productive investments.
17.
An interesting model of financing was applied in the Rural Employment Opportunities
for Public Assets Project (REOPA) funded by the EU and UNDP. Under this project, destitute
women groups have been provided with cash-for-work employment for two years. They
maintained a mandatory saving fund with deposition of money from their earnings and voluntary
saving fund.
Such saving funds provided women with microenterprise development
opportunities without credit resources. One of the advantages of this mechanism is that it
doesn’t require accounting and making group decisions. All saving funds have been financially
sustainable with the small amounts allocated to each member and group pressure on repayments.
Lessons learned for financial arrangements:

The Project should seek to establish mutual saving funds for each group with savings
from earnings received from afforestation and reforestation works and from other
sources. Investments of own funds into rotational saving fund would ensure higher
ownership of the group members. The amount of monthly saving contributions will be
decided by the groups’ members. There should be clear strategy developed for use of
saving funds jointly with participating groups. All collected money monthly should be
allocated to member on rotational basis. Allocation of funds should be based on
technical feasibility and financial viability of the proposal and can be made on lottery
basis to avoid biased decisions or on priority bases but it should be decided by group
itself to ensure ownership.

In order to ensure that grants provided by the project stay with intended beneficiaries and
not captured by implementing partner NGOs or local group leaders, Project will develop
an exit strategy with full transfer of ownership over funds to community groups. A key
element to build trust as well as ensure sustainability and growth of livelihood initiatives
in target community groups is establishing clear rules for the transfer of ownership of
Project endowments/funds to them from the beginning.
119
Capacity building
18.
Empowering participating households is a very important factor for sustainability of their
AIGAs. The capacity building programs exercised in various projects have many topics in
common starting from organizational trainings, forest conservation to livelihoods capacity
building programs. However, in many projects training program organized for self-help groups
are either too short or too general. Many groups cannot operate their own saving funds, it is
difficult for them to make decision on further investments and expansion of business activities,
and they have difficulty in managing own funds and understanding financial flows. Business
skills and traits are not easy to locate in rural areas and therefore most of livelihood activities are
the same.
19.
There is a shortage of qualified business development staff in regional and local NGOs.
They often lack knowledge and expertise in development of income generating activities,
especially value adding activities which need solid support in exploring and establishment
market linkages, improved processing and marketing of products. Such lack of in house
expertise leads to relocation of simple, but not highly effective solutions.
Lessons learned for capacity building:
 Effective training programs for FDGs are most needed on the following topics: i)
organizational development and management of rotating mutual saving and credit fund;
ii) basic financial management and accounting with special program for illiterate
members of self-help groups; iii) livelihood training on selected livelihood and value
adding economic activities; iv) forest conservation and climate change awareness.
Beneficiaries will be trained in several alternative livelihoods activities to provide them
with a broader range of skills for diversification of their enterprises and for making solid
choice on major activity.

Project would need to recruit qualified business development experts on need basis at the
central level, who would train and provide back up support to implementing partners in
the areas.

Selected value adding activities would need to be supported by specialized organizations
from public and private sector.
120
Annex 9. Recommended Plantation Types, Common Species and Rotation Period
BANGLADESH:
Climate Resilient Participatory Afforestation and Reforestation Project
Common
Sl
Type
Species
of
No
Plantation
1.
Mangrove
Afforestation
2.
3.
Mound
Plantation
Jhaw Plantation
Suggested rotation
Keora (Sonneratiaapitala)
The sites that are comparatively
compact and harder and at the same
time subjected to more saline condition
should be planted with species such as
Baen (Avicenniaofficinalis), Moricha
Baen (Avicennia marina ), Shada Baen
(Avicennia alba), Gewa
(Excoecariaagallocha), etc.
If the site is not soft enough to let the
ankle dip into the mud, species such as
Excoecariaagallocha may be used for
planting
Koroj (Pongamiapinnata), Babla
(Accaciasinegal), Akashmoni
(Accaciaauriculiformis), Katbadam
(Termilariacatappa), Shingra
(Cynometraramiflora), Puti jam
(Eugenia spp.), etc.
Cannot be felled.
The plantations will
be retained to
function as wind
break and combat
cyclones and tidal
surges.
Jhaw (Cassuraniaspp)
To be retained and
no felling. These
plantations are
supposed to function
as wind break and
combat tidal surges.
Direct benefits that will accrue to
the participants
Fishing and collection of fodder
for livestock. Occasional
collection of lops and tops as fuel.
Remarks
BFD may
allow local
communities to
collect NTFP
(lops and tops):
100% for first
tinning
Ref: Social
Forestry Rules
2004. Section
15(3), 20(1)
18 to 20 years when
these are inland and
away from the sea
front.
121
Some climber type agricultural
crops may be raised during first
two years. Fish may be reared in
the ditches. When the felling is
possible 45% of the produce will
the shared with the participants.
These plantations are supposed to
function as wind break and
combat tidal surges. The lower
branches may be pruned and used
as fuel wood.
Participants
will get 45% of
the harvest.
Ref: Social
Forestry Rules
2004. Section
20(2)d
Common
Sl
Type
Species
of
No
Plantation
4.
Golpata
Plantation
5.
6.
Enrichment
Plantation
Suggested rotation
Golpata (Nypafruticans)
Baen (Avicenniaofficinalis), Moricha
Baen (Avicennia marina), Shada Baen
(Avicennia alba), Gewa
(Excoecariaagallocha). Kakra
(Bruguierasexangula), Sundri
(Heritierafomes), Dhundul
(Xylocarpusgranatum), Kholshi
(Aegicerascorniculatum), Shingra
(Cynometraramiflora), Goran
(Ceriopsdecandra), Hetal (Phoenix
Paludosa) etc.
Core Zone
Gorjon (Dipterocarpus spp.), Sal
Plantation (Long (Shorea robusta), Dhaki Jam
rotation)
(Syzygium grande), Telsur (Hopea
odorata), Champa (Michelia champa),
Mehagony (Swietenia mahagoni),
Chikrasia (Chikrassia tabularis),
Jarul (Lagerstromia speciosa), Teak
(Tectonia grandis), Civit (Swintonia
floribanda), Bash Pata (Podocarpus
neriifolius), Puti Jam (Syzygium spp.),
Amloki (Emblica officinalis), Bohera
(Terminalia belerica), Haritaki
(Terminalia chebula), Haldu (Adina
cordifolia)
To be harvested
from 4 to 5 years of
planting following
the felling rules.
Not to be felled.
Direct benefits that will accrue to
the participants
At least 45% of the harvest may
go as share of the participants.
Collection of dead lops and tops
as fuel wood and fodder for their
livestock.
Remarks
Participants
will get 45% of
the harvest.
Ref: Social
Forestry Rules
2004. Section
20(2)d
BFD may
allow local
communities to
collect dead
lops and tops:
100% for first
tinning
Ref: Social
Forestry Rules
2004. Section
15(3), 20(1)
40 to 60 year
rotation
122
Communities will not get direct
financial benefits
Common
Sl
Type
Species
of
No
Plantation
7.
Buffer Zone
Plantation
(Short rotation)
Chittatian (Alstonia scholaris), Kodom
(Anthocephalus chinensis), Ghora
Neem (Melia sempervirens),
Akashmoni (Acacia auricoliformis)
Suggested rotation
Direct benefits that will accrue to
the participants
Remarks
10 to 20 year
rotation
Approximately 45% of the
harvests including thinning are
shared with participants.
Participants
will get 45% of
the harvest.
Ref: Social
Forestry Rules
2004. Section
20(2)a
8.
9.
Non Mangrove
Buffer Zone
Plantation
(Short rotation)
Strip Plantation
Chittatian (Alstonia scholaris), Kodom
(Anthocephalus chinensis), Ghora
Neem (Melia sempervirens),
Akashmoni (Acacia auricoliformis)
Koroj (Pongamia pinnata)
12 to 15 year
rotation
Neem, Mehagony (Swietenia
mahagoni), Chikrassia (Chikrassia
tabularis), Amloki (Emblica
officinalis), Tetool (Tamarindus
indica), Hartaki (Terminalia
chebula), Arjun (Terminalia arjuna),
Harbarooi, Kala Jam (Syzygium spp.),
Akashmoni ((Acacia auricoliformis),
Rain tree (Samania saman), Palm
(Borassus Fladellifer)
12to 15year
Approximately 45% of the
harvests including thinning are
shared with participants.
Participants
will get 45% of
the harvest.
Ref: Social
Forestry Rules
2004. Section
20(2)a
123
The participants may grow some
agricultural crops in first two
years. Approximately 55% of the
harvests will be the share of the
participants.
Participants
will get 55% of
the harvest.
Ref: Social
Forestry Rules
2004. Section
20(2)c
124