Report No. 134/91 / / JOINT UNDPIWORLD BANK ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAMME (ESMAP) PURPOSE The Joint UNDP/World Bank Energy Sector Management Assistance Programme (ESMAP) was launched in 1983 to complement the Energy Assessment Progamme which had been established three years earlier. An international Commission was convened in 1990 to address the creation of ESMAP's role in the Nineties. It concluded that the Programme had a crucial part to play over the next decade in assisting the developing countries to better manage their energy sectors given that the supply of energy at reasonable prices is a critical determinant of the pace and magnitude of the growth process. The Commission's recommendations received broad endorsement at the November 1990 ESMAP Annual Meeting. Today, ESMAP is carrying out energy assessments, preinvestment and prefeasibility activities and is providing institutional and policy advice. The program aims to strengthen the impact of bilateral and multilateral resources and private sector investment through providing technical assistance to the energy sector of developing countries. The findings and recommendations emerging from ESMAP activities provide governrments, donors, and potential investors with the information needed to identify economically and enviromnentally sound energy projects and to accelerate their preparation and implementation. ESMAP's operational activities are managed by two Divisions within the Industry and Energy Department at the World Bank and an ESMAP Secretariat. o The Programme's activities are governed by the ESMAP Consultative Group which consists of its co- sponsors, the UNDP and the World Bank, the govermnents which provide financial support and representatives of the recipients of its assistance. The Chairman of the Group is the World Bank's Vice President, Sector Policy and Research. He is assisted by a Secretariat headed by the Group's Executive Secretary who is also responsible for relations with the donors and securing funding for the Programme's activities. The Secretariat also gives support and advice to a Technical Advisory Group of independent energy experts which meets periodically to review and scrutinize the Programme's strategic agenda, its work program and other issues related to ESMAP's functioning. * The ESMAP Strategy and Programs Division is responsible for advising on which countries should receive ESMAP assistance, preparing relevant ESMAP programs of technical assistance to these countries and supports the Secretariat on funding issues. It also carries out broadly based studies such as energy assessments. X The ESMAP Operations Division is responsible for the detailed design and implementation of tasks consisting mainly of sub-sectoral strategy formulation, preinvestment work, institutional studies, technical assistance and training within the framework of overall ESMAP country assistance programs. FUNDING The ESMAP represents a cooperative international effort supported by the World Bank, the United Nations Development Programme and other United Nations agencies, the European Community, Organization of American States (OAS), Latin American Energy Organization (OLADE), and a number of countries including Australia, Belgium, Canada, Denmark, Germany, Finland, France, Iceland, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Sweden, Switzerland, the United Kingdom and the United States. FURTHER INFORMATION For further information or copies of completed ESMAP reports, contact: Office of the Director OR The Executive Secretary Industry and Energy Department ESMAP Consultative Group The World Bank The World Bank 1818 H Street N.W. 1818 H Street, N.W. Washington, D.C. 20433 Washington, D.C. 20433 U.S.A. U.S.A. BURKINA FASO URBAN HOUSEHOLD ENEW:GY STRATEGY JUNE 1991 EXCHANGE RATE US$ = CFA Francs 300 CONVERSION is'ACrORS USED General Units 1 ton crude oil equivalent (TOE) = approximately 42 GJ 1 kWh = 3.6 MI Fuel Tom3 MVJkg Charcoal 29.0 LPG - 45.7 Kerosene 0.79 43.5 Fuelwood Volume and Weight Units 1.0 m3 3.2 steres 1.0 stare 0.31 mi3 1.0 m3 0.80 tons (density) 1.0 stre 250.0 kg 4.0 steres 1.0 ton 1.0 stere 36.0 standard bundles Standing Volume of Commercial Fuelwood For unmanaged natural savannah forest, 60% of the total volume is in commercial fuelwood species of usable diameter. For rmanaged natural savannah forest, 80% of the total volume is assumed to be in commercial species of usable diameter. ABBREVIATIONS AND ACRONYMS CAPRO Ministry of Commerce DSVF MET Extension Service ESMAP Energy Sector Management Assistance Program FAO Food and Agriculture Organization IBE Burkinabe Institute for Energy MAE Ministry of Agriculture MEFSN Family Ministry MESRS Ministry of Higher Education and Scientific Research MET Ministry of En" '.onment and Tourism SONAHBY Burkinabe Oil Company TOE Ton of oil equivalent TABLE OF CONTENTS EXE CUTIVDESU MMARY ................................. i I. INTRODUC1lON ........................1 H. BiACKGROUNID ....................................... ... 3 A. Ec3onomic and Demographic Trends 4 B. Energy and the Environment .. 4 Energy Balance .. 4 Household Energ Demand .. Biomass Resources .. 9 Managing the Fuel Transition ..10 C. Government Household Energy Strategy ............ 11 Household Energy: A National Program .. 11 Institutions and Policy Framework ..12 III. DEMAND MANAGEMENT: DISSEMINATION Or IMPROVED STOVES . 14 A. Program Context ............. .............. 14 B. The National Improved Stove Program ........................... 15 Stove Models .............. .............. 15 C Stove Production and Distribution ............ ................... 17 The Incentive Environment and Stove Production ........ ............ 18 Marketing of Improved Stoves .................................. 18 D. Improved Stove Program: Results ............................... 21 IV. PROMOTION OF SUBSTITUTE FUELS: LPG AND KEROSENE AND CONSUMPTION OF ELECIRIClTY ............................... 26 A. PolicyContext ........................................... 26 Choice of Substitute Fuels: LPG, Kerosene and Electricity ............. 27 B. Substitute Fuels: Infrastructure and Security of Supply ....... .......... 28 Stove Equipment ........................................... 30 C. Marketing LPG and Kerosene ................................... 31 Structure of LPG and Kerosene Prices ....... .................... 32 D. LPG and Kerosene Use: Program Results ......................... 34 E. Inter-fuel Substitution: Medium and Longer Term Prospects .... ........ 36 Switching to Fuelwood Substitutes: Economic Implications ............. 38 V. MANAGING HOUSEHOLD ENERGY DEMAND: THE IMPACT OF PRICING .OL.CIES ......................... 39 A. Policy Context ........................... 39 B. PricingPolicy: Issuesand Options ......................... 39 Government Revenues ............ ............. 40 Relative Fuel Prices ......................... 41 Polcy Trde-o ... ........................................ . 43 C. The Impact of Economic Pricing on lnter-Fuel Substitution . ............ 44 VI. SUPPLY MANAGEMENTOFFUELWOOD ......................... 46 A. he Importance of Foresty Management ......... .. ............... 46 The urban Supply System ....... ............................... 47 Pricing .................................................... 49 B. A Strategy for Natural Forest Management ......... .. .............. 52 Urban Fuelwood Supply Stategies ............................... 54 Me Economics of Natural Forest Management ......... ............ 56 VII. AN URBAN HOUSEHOLD ENERGY STRATEGY: REINFORCING GOV'ERNEMEPENT POUCY .... 63 A. Introduction ................................................ 63 A Revitaied Govemnment Strategy ............. ................. 63 B. Urban Woodfuel Conservation Program .......... .. ................ 68 Short-term Measures ................... ...................... 68 C. Inter-fuelSubstitution Program .................................. 69 Short-term Measures ................... ...................... 70 D. Natural Woodlands Management ............... .................. 70 Short-term Measues ................... ...................... 71 ANNEXES I Fuelwood Demand Forecasts ...................................... 73 II Factors Influencing Urban Household Energy Demand ................... 78 Hi Annual Financial Cost of Cooking by Type of Fuel, Family of Six Persons, Ouagadougou, 1987 ............ ............... 84 IV lbe Security of Supply for Kerosene and for LPG .......... ............. 85 V The Price Structures for LPG and Kerosene ............... ............ 87 VI Key Assumptions of LPG and Kerosene Penetration ......... ............ 89 VII The Economic Value of Fuelwood Substitution ............ ............. 91 VIII Denifing a Sustainable Pricing Policy ................................. 95 IX Legl Tebs .................................. 97 X Urban Fuekvood Supply Strategies ................................. 100 A. Ouagadougou ............ ...................... 100 B. Koudougou ................. ................. 105 C. Bobo-Dioulasso ...... 108 D. ouahigouya ................ .................. 112 Xl The Outline of a Basic Management Plan ............................ 142 XII Ile Economics of Natural Forest Management ........ ................ 143 xm Project Proposals: Detailed Description ............. ................ 144 XIV Tle Impact on Fuelwood Demand of Demand Side Interventions ........ .. 153 XV Economic Value of Improved Stove Program ............ .............. 154 TABLES 2.1 Final Energy Consumption By Sector, 1987 ............... . 4 22 Rural and Urban Household/Informal Sector Energy Consumption, 1987 ............................ 5 2.3 Fuel Use for Cooking in Urban Population ............................ 6 2.4 Househol Size and Average Consumption in LPG Consuming Households .................................... 8 2.5 Penetration of Electricity in Urban Households, 1987 ....... .............. 8 2.6 Informal Sector Fuehwood Consumption in Ouagadougou ....... ........... 9 3.1 Market Prospects for Improved Stoves Door-to-Door Sales and Acceptability Tests ............................... 16 3.2 The Burkido Stove: BasicData ..................................... 16 3.3 Price Structure of Improved Metal Stoves ............ ................. 17 3.4 Campaign Costs and Sales ........................................ 20 3.5 Improved Stoves: Rate of Market Penetration by City ......... ........... 22 3.6 Benefits and Costs of Urban Improved Stove Progam .................... 25 4.1 Cost of Investment in 3 kg and 12 kg LPG Stoves in FCFA ...... .......... 30 4.2 Price Structures of LPG and Kerosene .............. ................. 33 5.1 Taxation of Household Fuel 1987 . ................................. 41 6.1 Official and Actual Structure of Fuelwood Prices ........ ................ 50 62 Proposed Fuelwood Price Structure .................................. 51 6.3 Main Cover Type Classification Used with the Urban Fuelwood Supply Zone Maps .57 6.4 Estimated Annual Productivity of Natural Forests of Selected Priority Areas of Fuehwood Supply Zones .58 6.5 Population Projections and Household Woodfuel Demand Estimates for Ouagadougou ........................................ 59 6.6 Population Projections and Household Woodjuel Estimates for Koudougou .... 60 6.7 Population Projections and Household Woodfuel Estimates for Bobo-Dioulasso .61 6.8 Population Projections and Household Woodfuel Estimates for Ouahigouya .62 A2.1 Energy Saving Behaviour in Urban Households ......................... 79 A22 Expenditures on Fue}wood in Percent of Household Income ............... 82 A7.1 Results of Sustainable Fuelwood Substitution ........................... 92 A10.1 Standing Fuelwood Estimates for Priority Areas within the Ouagadougou Fuelwood Supply Zone .116 A10.2 Estimated Annual Productivity of Priority Areas within the Ouagadougou Fuelwood Supply Zone .117 A103 Standing Fuelwood Estimates for Priority Areas within the Koudougou Fuehwood Supply Zone .118 A10.4 Estimated Annual Productivity of Priority Areas within the Koudougou Fuehwood Supply Zone .119 A10.5 Standing Fuehvood Estimates for Priority Areas within the Bobo-Diouilasso Fuelwood Supply Zone .120 A10.6 Estimated Annual Productivity of Priority Areas within the Bobo-Dioulasso Fuelwood Supply Zone .121 A10.7 Standing Fu_.--ood E-siiinates for Priority Areas within the Ouahigouya Fuelwood Supply Zone .122 A10.8 Estimated Annual Productivity. of Priority Areas within the Ouahigouya Fuetwood Supply Zone ....... ............... 123 FIGURES 2.1 Ouagadougou Household Fuelwood Consumption by End-Use, 1987 ..... ..... 6 3.1 Market Penetration of Improved Stoves by Income Group ...... ........... 23 3.2 Level of Household Income & Penetration of Different Types of Improved Stoves ................. ..................... 23 4.1 Penetration of LPG Use by Income Group Urban Households in 1987 .... .... 35 4.2 LPG and Kerosene Use by Income Group ............. ................ 37 4.3 LPG Penetration Ratios and Consumption Levels Needed for Sustainable Demand .38 5.1 Relative Economic and Financial Cost of Cooking by Type or Fuel and Stove .............. ............................... 42 6.1 Impact of Demand Interventions ................................... 46 7.1 Coverage of Urban Demand Growth ................................. 67 A1.1 Fuetwood Demand/Supply Balance .................................. 73 A1.2 Rural and Urban Fuelwood ............. ........................... 73 A2.1 Household Size and Energy Consumption ............................. 78 A2.2 Frequency of Different lTpes of Meals .............................. 80 A2.3 Impact of Household Income on Energy Consumptions ..... ............. 81 A7.1 Taxation and Consumer Welfare ................................... 91 A8.1 Relationship between the Rate of Penetration of Substitute Fuels and the Relative Price of Substitute Fuels to Woodfuels .96 A8.2 The mix of Decreasing Subsidies on Modem Fuels and Increasing Taxes on Woodfuels that is needed in Order to Obtain the Desired Ratio of Relative Prices in the Year 2000 .96 1. This report addresses the accelerating demand for woodfuels as an energy source for Burkina Faso's urban households and its impact on the country's natural resource endowment. It sets out an urban household energy strategy, anchored in Government's on-going efforts, that aims to slow current fuelwood consumption and promote a broader scale substitution of alternative fuels than is presently the case. This strategy is the result of a coliaborative venture, begun in 1987, between the Government of Burkina Faso and the joint UNDP/World Bank Energy Sector Management AssiAance Program (ESMAP). It was co-financed by the Governments of Norway and the Netherlands. Energ and Environment 2. Energy policy is a critical instrument of environmental management for Burkina Faso, which has no known hydrocarbon resources. Fuelwood is the principal source of energy and the household sector its most important fuelwood consumer, accounting for 3 million tons per annum, 98% of household primary energy demand, and 89% of fnal energy demand. The informal sector represented as much as 20% of total urban woodfuel consumption, where demand is concentrated in a few energy intensive activities: the informal sector beer brewers, consisting largely of women, account for about 12% of total urban fuelwood consumption and about 60% of informal sector fuehvood consumption. Biomass is the most prevalent energy source even in industry, where consumption is three times as high as that of oil-based products. 3. Burkina's overall energy consumption in 1987 of 1.45 million tons oil equivalent is one of the world's lowest, expressed in terms of per capita energy consumption (160 kg of oil equivalent); in terms of per capita consumption of oil products (17 ag); or in terms of per capita consumption of electricity (14 kWh). Yet even the satisfaction of this low level of demand for oil products represents a very real challenge to policymakers. In 1987, the cost of importing 130,000 tons of oil products amounted to US$ 47 million, or 16% of export income and 6.5% of total imports of goods and services. In light of these costs and competing development priorities for scarce resources, the transition from biomass to modern fuels, which is in process, requires careful management. Indeed, the key energy issue facing the country is how to achieve an ecologically sustainable balance between fuelwood demand and fuelwood supply with minimal consequences on oil imports. 4. An array of obstacles constrain Burkina's development prospects, with widespread poverty and rapid demographic growth posing the greatest challenge. They are the principal causes of the persistent erosion of natural resources. A total population of 9.8 million in 1989 is projected to double over the next twenty years and reach 13.8 million by the year 2000. Although the urban population represented no more than 11% of the total population in 1989, the urban sector is a significant feature of national economic growth, accounting for an average 68% of GDP (constant 1979 prices) from 1982-1987. Urban economic growth - and its claim on natural resources to fuel that growth - is expected to be further enhanced in the future. The urban population is growing at about 8% a year, more than double the overall rate of population growth. By the end of the century, the urban share will climb to 21% of the total population of 13.8 million, or 2.9 million. 5. Woodfuels will c-ntinue to be the main energy source for the majority of Burkina Faso's population in the future. National woodfuel consumption will rise from 3 million tons in 1988 to 4.5 million tons in 2000 and urban fuelwood consumption from .33 million tons to 0.90 million tons. At the same time, this report estimates that the forest cover is presently decreasing at about 60,000 hectares per year: land clearing for agricultural development accounts for about 40,000 hectares, while the remainder is the result of bushfires, drought and the cutting of wood for fuelwood consumption in mostly unmanaged natural forests. 6. Total natural wood production is currently estimated to be about 10 million m3 (6- 7 million tons) per year. The Ministry of Environment and Tourism (MET) estimates that, of the total woodfuel demand of 3 million tons per annum, 2.5 million tons are available for fuelwood consumption in the sense of being accessible to the local population and corresponding to local demand. In 1987, the deficit of 0.5 million tons, representing the difference between demand and presently sustainable supply, was met by clearing ef the forest cover (cutting of green or remaining dead wood). How much of this is a by-product of agricultural land clearing and l,ow much is due to the rapid growth in the urban demand for biomass is unknown. Government PoliEc 7. Government acknowledged the impo.-tance of natural resource management to economic development in a far reaching forest protection program, ALes Trois Luttese, which was set in motion in 1985 to reduce the impact of bush fires, uncontrolled grazing and overcutting of fuelwood on its natural environment. The Government implemented a household energy strategy with complementary actions in the areas of (a) demand reduction, (b) fuel switching and (c) fuelwood supply management. This strategy can be characterized as follows: (i) The demand managment effort was anchored in the dissemination of improved woodstoves and the promotion of LPG and kerosene. The supply manag nt initiatives centered around a change in the fuelwood price structure in favor of fuelwood producer and the creation of woodcutters cooperatives. (ii) Pricing poliQc is an important policy instrument of this program: For budgetary reasons, no subsidies are given to the fuelwood substitute fuels LPG and kerosene. Instead, the Government increased the prices of woodfuels by raising both cutting fees and producer prices in the official price structure and by reorganizing the transport sector. (iii) To achieve policy objectives, the program relies heavily on the public sector with a high degree of Government involvement not only in supportive research and training but also in operational activities and a reliance on political rather than commercial messages in promotion campaigns. 8. nThe 1990 targets for household energy policy in the 1986-1990 Development Plan were to: (a) have two-thirds of all households using an improved fuelwood stove, (b) have 32,000 households using an LPG stove and to reach an annual LPG consumption of 4,800 tons, (c) market LPG and kerosene stoves for the urban population and (d) protect and regenerate the wood resources. Important lessons have been learned by this program, which is one of Sub-Saharan Africa's most ambitious efforts. Over 100,000 improved stoves were constructed by the rural population and public awareness of the importance of environmental conservation was raised. At the same time, however, the preservation of the forest cover is not an immediate concern of poor rural households and, as a consequence, they did not attach high priority to these energy saving measures. In addition, the relatively good access to fuelwood, as perceived by many women who collect it, provides little incentive to reduce consumption, further undermining the objectives of the program. The lackluster penetration of improved stoves in rural households is ample evidence; a 70% penetration rate of improved stoves drops to less than half of that level after the first year. 9. On the stove productIon side, the Burkinabe Institute for Energy (IBE) has made good progress in developing a wide array of different stove models for household and informal sector use. Nonetheless, efforts to mobilize local artisans to produce improved stoves have not had the desired results, due to excessive Government interference in distribution and marketing activities and modest demand for the product. In 1987, about one-third of all urban households were using an improved woodstove (50% Plan fulfillment), although it was but one of several cooking devices in use. Almost 60% of urban households continue to use the traditional 3-stone stove exclusively. The pace of sals of Improved woodstoves (6,000-7,000 per annum) since 1987 has been below that needed for etove replacement and to keep up with the growth of the urban population. The annual formation of about 12,000 new urban households, representing 23,000 additional tons of firewood per annum, wiped out the already meager fuelwood savings (15,000 tons per annum) claimed by the program. The response of very poor Burkinabe families to the improved stove program has been especially disappointing: Of households wit}l monthly incomes below 20,000 CFAF, only 18% had acquired an improved 3-stone stove and only 5% an improved metal stove. 10. Efforts on the supply side in favor of reforestation produced modest results. Industrial plantations have not proved cost-effective for fuetwood production. Similarly, organization and implementation of village afforestation schemes have been extremely difficult. Thorny issues including those of land tenure, traditional patterns of cultivation, village politics, internal migration trends, to mention but a few, further complicated an extremely complex issue. The introduction of techniques to manage natural forests and degraded woodlands promises to be the most cost effective means of promoting sustainable production methods. These efforts are, however, still in their early stages. Government has paved the way for this initiative by adopting a new price structure for fuelwood, which provides more adequate margins for fuelwood produceirs, and by encouraging the establishment of woodcutters' cooperatives. These cooperatives represent an important first step in rationalizing the fuelwood supply chain but sustainable management of forest and tree resources will require that these woodcutter?' cooperatives evolve into woodland management entities with clearly defined rights and obligations vis-a-vis land tenure; pricing; cost recovery; multi-purpose land uses, etc. A recent FAO-assisted pilot project in natural forest - iv - management in the national forest at Nazinon, within the Ouagadougou fuelwood supply zone, is beginning to provide positive results. It wilt, hwever, require testing on a much larger scale and a careful evaluation of the incentive environment needed to mobilize across-the-board popular participation that will be essential to the success of this program. 11. On the positive side, pricing policy showed its strength. Following a reupnlzatlon of the fhelwood supply sre in 1985, fuelwood pries had climbed by 60% in Ouagadougou with household demand dropping to a level that was, on average, 9% lower than average fuelwood demand in the three other major cities. 12. The Government, through SONABHY, the national oil company, has made important investments in inErastructure by, inter setting up LPG bottling plants in Ouagadougou and in Bobo-Dioulasso. Notwithstanding these efforts, lnter-fuel substitution activities have been hampered by the high cost of moderns fuels, the inadequacy of stove equipment, the widespread skepticism about their safety and convenience, and lack of coordination between SONABHY, the importer and bottlingoperator; the private oil companies, responsible for distribution; and IBE, responsible for development of appropriate kerosene and LPG stoves. Both kerosene and LPG find their use mainly as supplementary sources of energy for cooking. In 1987, approximately 9% of households in the four major cities had acquired an LPG stove (one-third Plan fulfillment) and total demand for LP(G had increased from 745 tons in 1985 to 1,476 tons in 1987. Since then, demand has stagnated; LPG demand in Burkinabe households is no higher than 700 tons, equivalent to a replacement of no more than 4,000-5,000 tons of fuelwood per annum. In 1987, kerosene stoves were found in about 4% of urban households and urban household kerosene consumption amounted to approximately 3,500 tons, of which 94% was used for lighting, 2% for cooking and water heating, and 4% for other uses. Need for New Directions 13. It is difficult to identify any dynamic forces that, during the 1990s, could reverse the stagnation of Government's energy savings and fuelwood substitution program. The expected rise in per capita income is too low, by itself, to accelerate fuelwood substitution. Moreover, the standing volume of wood is still sufficiently large to meet the rising demand for fuelwood with little or no upward pressure on prices. Without a fine-tuning of current policies-shifting emphasis and expanding their scope, it is unlikely that progress will be achieved beyond present levels. Govemment's household energy strategy has the necessary components - promotion of fuel savings, fuelwood substitution, fuelwood supply management. Critical to the success of Government efforts over the longer term is an assessment of (a) the effectiveness of the mode of implementation of the components, (b) the adequacy of the legal and institutional framework and (c) the rationale of Government pricing policies. 14. Even with forestry management plans and with current population projections, a more widespread shift to substitute fuels in the urban centers will become a necessity early into the next century. At that time, urban fuelwood demand will have reached its sustainable plateau and LPG and kerosene will have to meet the household energy requirements of the total increase in urban population. To do so, LPG and kerosene consumers must use these fuels as their primary .V. energy source for cooking and heating. During the 1990's, inter-fuel substitution initiatives must prepare for the future by acquainting households that do not use modem fuels with their advantages. The number of LPG and kerosene consuming households which, in the year 2000, will total approximately 115,000, is projected to increase to 650,000 by the year 2010. Depending on the contribution of kerosene, LPG household consumption could be in the range of 7,200-8,500 tons by the year 2000, and should reach somewhere between 60,000-115,000 tons by the year 2010. While it is recognized that the switch to substitute fuels will be expensive, the price of substitution, which is inevitable in light of current population trends, will be even higher if Government continues on its present course. Under any scenario, and given the country's development constraints, the reality is that, early in the next century, energy for all will be more expensive. Key Policy Recommendations and Conclusions of the ESMAP/MET Study Redefining Government's Role. 15. The high degree of direct Government involvement in the household energy sector during the 1980s helped to achieve some important short term results, although still far short of the program's objectives. Yet, the present stagnation demonstrates that long-term progress will depend on a redefmition of the balanc between the use of direct Government intervention and the use of policy tools that use the market mechanism to achieve the desired objectives. Two principles should shape this balance: (i) Government intervention is justified only where market failures block the achievement of program objectives; (ii) Where such circumstances exist, and where legal and/or institutional obstacles are the principal impediments, it should be determined whether their removal would be more cost-efficient than direct Government intervention. As a general rule, the Government should be responsible for guiding policy and shaping public awareness, supporting energy R&D, securing funding for information and education campaigns and monitoring progress. Private entities and NGO's should have primary responsibility for implementing the components of the strategy. Shift of Attention to Urban Fuelwood Needs 16. In the past, Government's efforts have been heavily anchored in promoting improved stoves in the rural areas; in 1987, emphasis began to shift to the urban sector. The justification for the rural improved stove program lies in the fact that present rural fuelwood consumption is eight times as high as urban fuelwood consumption and will still be four times as high in the year 2000. However, because the rural population tends to meet its fuelwood requirements from dead wood, the impact on the environment is not as large as that due to clearfelling for agricultural development. The rapidly growing urban sector poses a far more serious problem for the management of these natural resources and must become the prime focus of future efforts. While up to the year 2000, the rural sector will account for 60% of the increase in fuelwood demand, the pace of urban growth will change this scenario thereafter: towards 2010, the urban sector will account for almost 80% of the increase in fuetwood consumption. "Tus, while present efforts in the rural sector should be continued, any increase in offo should be directed towards the uLrban areas only. - vi - 17. The concentrated urban fuelwood demand contributes directly to environmental degradation, since a rising share of this natural resource is mined exclusively for the urban market. Because these mined areas are not used for agricultural purposes and are unprotected from wind and rain, soil degradation is most severe and the regenerative capacity of the tree cover is lost. The impact of this demand is already visible around the larger urban centers where soil erosion and deforestation have affected their immediate hinterlands. Actions to restrain urban fuelwood demand must, therefore, receive clear priority and need to be directed, in the short term, to Ouagadougou on the central plateau, where the majority of urban residents live. Fuelwood Saving 18. The highest immediate operational priority is to reinforce the fuelwood savings program, by rationalizing the urban improved stoves program and by extending its scope to include changes in consumer behavior. The benefit-cost ratio of interventions m this area is substantial arnd some 20 to 25% of potential demand can be cut. To achieve an 80% urban penetration rate by the year 2000, the current approach needs to shift towards a self-sustaining, non-subsidized, private sector-based activity, that uses existing commercial channels for production and marketing. Tle changes are needed: (a) The MET should withdraw from direct operational involvement and discontinue public sector sales of improved stoves; (b) The METs role in stove promotion should be to: (i) identify and fund supportive actions in R&D in collaboration with the IBE, (ii) prepare general promotional material, (iii) assist in identifying and promoting *best practices" and (iv) monitor results. (c) The MET should establish targets for the level of stove penetration rates for each of the five major cities and secure financing for operations. Local NGO's with relevant experience should be identified for implementation. (d) The ad-hoc promotion campaigns should be replaced by year round promotion efforts. (e) Promotional pricing of stoves during sales campaigns should be abandoned. (f) A wider range of improved stove models should be marketed to capture more energy-conscious consumers, through the introduction of multi-pot stoves, a more vigorous promotion of ceramic stoves and of more expensive, attractive stoves stoves. (g) The needs of the lowest income groups for improved fuelwood stoves need special attention to secure a broader penetration rate. Such measures could include the continued promotion, even in the urban centers, of the "improved 3-stone" stove. vii - (h) Production of improved stoves should continue to be based on the informal sector, since it is the lowest cost producer. To improve the incentive environment, producers should be allowed to set their own margins. (i) Door-to-door sales of improved stoves should be promoted. 19. The informal setor must become a priority target for energy saving campaigns because of (i) the high concentration of energy consumption in a few energy intensive activities, and (ii) the commercial orientation of the fuel users. Initially, action should be focused on the informal beer ("dolo") producers, the "dolotieres" who account for 12% of urban and 60% of informal sector fuelwood consumption. IBE has developed an improved stove for "dolo" production, which, according to test results, can reduce fuelwood consumption by 30%. Once user acceptance of the stove has been established in field tests, it should be produced and promoted by an intensive campaign aimed at an 80% penetration rate within three years. 20. Promotion of energy saing habit. The potential for energy savings through changes in cooking practices is as large as that achievable through the introduction of improved stoves - some 10 - 20% of domestic fuel consumption. The MET, in collaboration with the IBE and the Ministry of Social Affairs, should (a) implement information campaigns directed at households to promote energy saving habits, e.g. use of a lid; protection from wind; reducing the amount of fuelwood after lighting; etc. and (b) in collaboration with the Ministry of Agriculture and the Ministry of Social Affairs, promote new food habits that are healthy, provide market outlets for domestically produced crops, and are less energy intensive than the traditional Burkinabe cuisine. Fuelwood Substitution 21. The promotion of substitute fuels has the residual role of reducing the excess consumption that remains even where implementation of the proposed fuelwood saving and fuelwood supply management programs is deemed successful. Since electricity is not used for cooking, the increased consumption of electricity will have no impact on fuelwood demand. LPG and kerosene are, therefore, the prime substitute fuels and steps need to be taken to revitalize the LPG and kerosene promotion program. In particular, the following measures are needed: (a) improve the cooperation among the key actors; (b) increase the number of sales points for LPG; (c) introduce more technically adequate and socially acceptable stoves on the market; and (d) improve the price competitiveness of the substitute fuels. 22. The establishment of a meaningful cooperation between SONABHY (the operator of the bottling plant), the private oil companies (the wholesalers and retailers) and IBE (the stove developer) is the immediate priority for re-invigorating the fuelwood substitution program. Renewed cooperation must be based on two basic understandings: (a) effective promotion of LPG and of kerosene is achieved through the establishment of a wholesale and distribution network, and (b) wholesalers must have responsibility for its development. The present institutional framework and the price structures have to be reevaluated from this point of view. eviUii 23. The present promotion system, whereby SONABHY administers a fund, replenished by a contribution in the LPG price structure, to finance oil company proposals for promotion campaigns is not working. The established organizational framework for LPG (inlIa_ the introduction of the 'unitary buttle concept") does not give the private oil companies incentives to implement promotion campaigns. Instead, SONABHY should take up direct responsibiity for the organization of promotion campaigns. 24. Recently developed prototypes for low-cost LPG stoves developed by the IBE should be aggressively market tested and promoted. In addition, the ongoing development work by [BE on the development of a low-cost kerosene stove, adapted to Burkinabe cooking requirements should be given high priority to broaden the substitution possibilities. 25. The LPG stove models on the Burkinabe market show considerable differences with regard to their conversion efficiency. IBE should make attempts to improve the eficiency of the low-performance stoves through changes in design. Inefficient stove models should be phased out from the commercial market in consultation with the private oil companies. Finally, introduction of an appropriate low-cost kerosene stove on the market should be considered as a high priority for the broadening of substitution policy. Pricing Policy 26. Since the Government avoids subsidies and tries to let the price of fuelwood reflect producer costs, consumers- by and large, are provided with the correct relative economic prices. Nonetheless, by the mid-1990s, Government will need to increase the real price of taxation on fuelwood to prepare for the large scale switch to petroleum products that will be required. Because LPG and kerosene are potential mass consumption products and could become a serious drain on Government revenues, subsidies on LPG and kerosene must be avoided. 27. The Government has been less successful in providing the suppliers with the correct signals. For some actors in the price structures, e.g. the wholesalers, the margins allocated to them do not correspond to the functions they should perform in promoting the attainment of the Government's policy goals, specifically, the creation of an effective distribution system. On the other hand the margins for the retailers are overly generous resulting in the retailing activity being retained by the wholesalers. The anomalies that are identified in the relevant chapters of this Report should be corrected. 28. Concerning petroleum products, the 'price stabilization fund" should protect the consumer against short-term price volatilities, but adjust to long-term changes in prices. At the present low level of international oil prices, the contributions to the fund have the character of taxation. However, if international oil prices rise again, there is a risk that the fund once more will become a drain on Government revenues as political pressures prevent a realignment of national prices to new realities. Since the state oil company SONABHY now has the monopoly for oil imports, the fund can be replaced by an annual realignment of the import-price element in the price structure in accordance with expectations concerning international price movements in the coming year. If prices turn out lower, SONABHY wili make an extra profit, if they turn out higher, SONABHY will incur a loss. Since in the end, profits and losses are borne by the Government budget, the result is similar to the operation of the stabilization fund. The consumer is protected - Lx - against random short-term fluctuations in the price, but adjustment to long term changes is smoother, Fuelwood Supply Manaagement 29. Successful demand-side interventions could reduce the projected fuelwood consumption (about 900,000 tons) by 145,000 tons in the year 2000. Given projected demand trends, natural forest management will need to cover the major share of the increase in fuelwood demand, supplying over 313,000 tons to accomodate a tripling of urban demand between now and the year 2000. Whereas demand-side interventions dominated the previous Plan period and will continue to be important, future policy must, give greater emphasis to forestry management. Because commercial fuelwood reforestation schemes are not economically viable, there are two main avenues to increase supply: (a) closely coordinating energy policy and agricultural development policy to ensure that a maximum of the wood resources cleared for agricultural expansion are recovered for energy purposes and are not burned standing; and (b) increasing the productivity of the natural forests through the introduction of natural forest management. 30. Natural forest management is the most cost-effective way of increasing the sustainable production of fuelwood. The economics are less favourable than for the fuelwood savings program, but the magnitude of the intervention is substantial: Around 70% of the potential increase in urban household energy demand up to the year 2000 has to be covered by increases in the supply of woodfuels. To realize this increase in supply without negative environmental consequences, the rural population must be given a vested economic interest in the protection of the forest resources. The central issue in the management of the natural forestry resources is well- known - because of undefined land tenure rights: (a) no vested interest exist to protect the resource base against overexploitation and (b) under free market operations, the producer price of fuelwood will not reflect the full cost of replacement. This situation leads to overconsumption and underproduction of fuelwood simultaneously. 31. Government has taken a number of steps to pruvide the needed conditions to promote natural forest management. The Village Land Management Program is examining the incentive environment needed to mobilize the will and commitment of the rural population to protect its natural resources. Within this framework, the woodcutters' cooperatives must evolve towards woodland management entities and tenure arrangements clearly defined so that members not only cut the wood but manage the resource for the longer term. The present myriad of legal decrees, several of which are contradictory, seriously hinder prospects for putting sustainable forestry management plans in place. It is understood that Burkina's Environmental Action Plan is examining this issue with a view to revising the appropriate legal texts. The Government, with donor assistance, has begun to test alternative forestry management techniques and, under the ESMAP activity, has undertaken preliminary mapping of existing and potential areas of fuelwood supply within the supply zones of Ouagadougou, Bobo-Dioulasso, Ouahigouya, and Koudougou. Other measures, described in this Report, include: (a) Completing the detailed mapping of natural woodland areas within the urban supply zones, cataloguing their presention condition and evaluating their potential productivity under management conditions; v % . (b) Preparing detailed management plans for areas identified for natural forest management, stipulating, inter-aia the technical parameters of the forestry plan; (c) Organizing the woodcutters' cooperatives into woodland management entities, and defining arrangements concerning land tenure, cost recovery, multi-purpose use of the designated management zones and other rights and obligations of the cooperatives and the Government needed to reach management targets; (d) Introducing a system of differentiated cutting permit fees for managed and unmanaged zones and for wood coming from agricultural land clearing operations; fuelwood coming from unmanaged zones will carry a higher fee as will fuelwood coming from areas closer to the city; (e) Creating an Urban Fuelwood Working Group, which would, inier a. liaise with the Ministry of Agriculture concerning fuelwood recovery on land clearing operations; (f) Undertaking pilot projects in the different urban supply zones to test management techniques and cooperative management arrangements; and (g) Putting in place monitoring arrangements to evaluate the results of the pilot efforts. A Proposed Urban Household Energ Investment Program 32. This Report sets out and describes a program of investment opportunities that would assist Government to meet the above-described program objectives. It is recommended that the program be considered as an integral part of the National Environment Action Plan. For the year 2000, this program would aim for: (a) 80% or 220,000 urban households to use improved biomass stoves to cover most of their cooking needs; (b) 100% of the informal sector beer brewers to use the Buriddo stove; (c) 41% or 115,000 urban households to use LPG and kerosene stoves to cover their auxillary cooking needs; and (d) at least 50% of commercial fuelwood to be produced by woodland management cooperatives. 33. Reaching the strategic objectives, will require Government to undertake (a) short- term actions at zero or little cost that will begin the process of policy realignment and (b) investment activities to implement the re-oriented urban household energy strategy with the help of external finance. These investment opportunities, which would reinforce on-going household energy programs, are set out in the table below: I -xi Project Title Total Estimated WpleaontotIon Fundfng Cost in USO Period Source Fuel Consgrvtion Proara Urban Fuetwood Savings Project 1,500000 2 years To be identified Institutions and Training Needs Assessment 100,000 12 months To be idmntiffed Inter-Fuel Substitution Proarar LPG Infrastructure Strengthening Project 700.0Q0 12 months To be fdentified LPG Stove Developnent and Karketing Project 100,000 10 months To be fdentified Kerosene Promotion Options 40,000 6 wseks To be Identified Natural Woodtands NanmgeMent Ilproving inter-Agency Coordination workshop 45.000 6 weeks To be identiffed Village-based M g t of Old Fsllo* and Degraded Woodlands Project S,000,000 S yers To be identified 34. The strategy and investment program set out in this report are consistent with the energy and environmental recommendations of the Long Term Perspectives Study for Africa (LTPS). The LTPS highlights the need to address the household energy demand of the majority of the population of Sub-Saharan Africa that currently uses fuelwood and can be expected to do so over the longer term. It emphasizes the need both to broaden the use of improved fuelwood stoves as well as to encourage the shift to substitute fuels. The LTPS underscores the importance of identifying and testing different forestry management alternatives to protect the ecological base and to create an enabling environment that will encourage broadbased popular participation needed to reach this objective. I. INTRODUCrHON 1.1 In April 1985, Burkina Faso launched a far-reaching forest protection program, "Les Trois Luttes", to reduce the impact of bush fires, uncontrolled grazing and overcutting of fuelwood on its natural environment. At the same time, the Government undertook a fuelwood conservation campaign anchoreed in a large-scale dissemination of improved stoves and the promotion of LPG as a fuel substitute. 1.2 The UNDP-World Bank Energy Assessment for Burkina Faso ('Burkina: Issues and Options in the Energy Sector/January 1986) affirmed Government's policy direction and highlighted the household sector as its largest energy user. While not the only nor the primary cause of deforestation, the demand for fuelwood was recognized as a source of mounting pressure on an already fragile ecological base. The Assessment cautioned that urbanization, in an overwhelmingly agricultural economy, was a factor in the depletion of standing wood stocks. The report stressed the need to develop an urban household energy management strategy to reinforce Government's on-going efforts in the rural areas. 1.3 At the request of the Government of Burkina Faso, and with financial assistance from the Government of Norway and later from the Government of the Netherlands, the UNDP- World Bank Energy Sector Management Assistance Program (ESMAP) undertook preparation of an urban household energy strategy and action program beginning in 1986. The objective was to design a strategy and companion investment program to meet the urban demand for energy at the lowest cost, while protecting the country's renewable resources and limiting imports of oil products and equipment to the extent possible. 1.4 The program was executed in two phases: Phase I, from October-December 1986, carried out an overview of the urban household energy situation; reviewed on-going household energy conservation and substitution strategies and projects, and prepared a detailed project document to define priority actions to be implemented under Phase II. Phase II fieldwork began in August, 1987 and was completed in December, 1989. The findings of Phase II constitute the subject of this Report.1/ Throughout the course of this study, ESMAP and its consultants worked closely with the Ministry of Environment and Tourism (MET) and other Burkinabe institutions. 1.5 The principal outputs of this activity include: (a) Creation of a Data Base an ernergy survey of over 1100 households in five major cities. (b) Demand Studies (i) pilot promotion campaigns of improved wood stoves in Ouahigouya and Koudougou; k/ The lpon was wniten by Carolyn Tager (Task Manager), with Wolfgang Mosten (Senior Ene&j Economist) and JosdpWneA#paillange (Consultan). Mr. SamirAmous (ESMAP Consultat) managed thefield wotv in Bwu*na Faso. Seeatial asistance and report prodwtion sevices were pvwded by Sophie Walop. -2- (ii) testing of door-to-door sales of improved wood stoves; stove acceptability test in Ouagadougou. (c) Sdis (i) testing of stove efficiency (improved wood, kerosene and LPG stoves); (ii) a study of the production and marketing structure for improved stoves; (Uii) a household petroleum product distnbution study-, (iv) a forestry management stucdy and preparation of forestry management strategies for Burkina's 4 major urban centers. - 3 - II. BACKGROUND A. Economic and Demographic Trends 2.1 With a GDP per capita of US$ 297 in 1987, Burkina Faso is one of the world's poorest countries, its development constrained by an array of natural obstacles. Agriculture is its most important economic activity, employing almost 90% of the population, accounting for one-third of GDP and virtually all of its exports. Yet, the natural resources on which agricultural output depends are meager and increasingly vulnerable to the effects of rapid population growth. Soils are generally shallow, poorly structured, and easily degraded by traditional methods of cultivation. Rainfall is scarce and highly variable, both among regions and from year to year. The country has located important mineral deposits, but its landlocked position and poorly maintained transportation network make the cost of their exploitation relatively high. 2.2 An annual population growth of approximately 3.3 percent is regarded by many development planners as the country's most serious challenge to promoting the sustainable use of its natural resources. The uneven distribution of this population is also a constraint and is felt in declining fallow periods, accelerating deforestation, and deteriorating soil fertility, especially on the central plateau. A small but rapidly increasing share of the total population lives in urban areas, accounting for approximately 11% of the total population of 9.8 million in 1989. The present urban growth rate of about 8% a year is more than double the overall population growth rate and shows no signs of slowing down. By the end of the century, total population is projected to be at least 12.5 million, with the urban share reaching 21% of the total, or 2.4 million. Ouagadougou, the capital and largest city, accounted for about 50% of the urban population in 1985 and its annual growth rate averaged 9.5% between 1975-1985. Bobo-Dioulasso, next with approximately 213,000 inhabitants, accounted for 25% of the urban population, growing annually at 7%. These two cities are expected to at least triple in size within 15 years, fueled by the high natural population growth and by uncontrolled internal migration. 23 The share of economic activity located in urban areas is striking given the still low level of urbanization. Over the period 1982-1987, an average 68% of GDP (constant 1979 prices) was accounted for by urban-based activities (28% by industrial and 40% by service-related activities), almost exactly the reverse of the situation in 1960. Despite notable strides in boosting agricultural output during 1982-1987 alongside slower growth in the manufacturing and tertiaty sectors, the importance of the urban sector to overall economic growth will not diminish. Indeed, as national development policy shifts towards creating conditions more favorable to private sector growth, improving public resource management and removing physical and institutional constraints, the economic role of the urban sector will be further enhanced. The downside of this scenario is an annual increase in urban residents of between 80,000 and 90,000 each year and the pressures of these numbers on already deteriorated living and working conditions. Tle impact of this explosive growth is visible in the hinterlands of the major urban centers, especially Ouagadougou, where soil degradation and erosion are the most severe, the combined effect of land dearing for agriculture and the accelerating demand for fuelwood for energy. -4 - B. Energy and the Environment 2.4 The Government is deeply concerned about the accelerating depletion of its natural resources and the need to move both boldly and quickly. It is, therefore, not surprising that the inplementation of a program to reverse the ecological decline has ranked high on the country's development agenda since the early 1980's. This commitment was an explicit objective of the 1986- 1990 Five Year Plan, togther with (1) controlling population growth and migration, (2) achieving food security, (3) improving the management of the economy and (4) improving the role of women in development. A broad range of international and bilateral donors and NGOs endorsed these priorities through a series of programs that began as early as 1985. More recently, the Government appealed directly to IDA for assistance to elaborate a more comprehensive and coordinated national environmental plan and investment package. Energy Balance 2.5 Energy policy is a critical instrument of environmental management for Burkina Faso as fuelwood is the principal source of energy. The household sector is the most important fuelwood consumer, accounting for 3 million tons per annum and for 98% of household primary energy demand. Energy consumption by sector and fuel type is depicted in Table 2.1. Reflecting Burkina's low level of industrialization, the household sector (including informal sector productive activities) accounted for 88% of national final energy consumption in 1987. Transport followed with 6%, industry/agriculture 4% and the public sector 1%. Table 2.1: Final Energy Consumption by Sector, 1987 (000 of toe) Sector Biomass Oil Products Electricity TOTAL Households 1256 13 12 1281 Transport 85 85 Industry 39 12 21 72 Public Sector - 9 2 11 TOTAL 1295 119 35 1449 Source: ESMAP estimates. Electricity consumption reflects SONABEL sales only, as extent of autoproduction of electricity is unknown, although probably very minor. 2.6 Consumption of biomass fuels accounts for 89%, oil products for 8%, and electricity for 2% of final energy consumption. Biomass is consumed primarily in the form of fuelwood (91%); next is agricultural residues (5%); bagasse (3%) and charcoal (1%). It is important to note that, although the household sector is the dominant consumer of biomass fuels, biomass is the most prevalent energy source even in industry, where its consumption is three times as high as the consumption of oil products. 2.7 Burkina's overall energy consumption in 1987 of 1.45 million tons oil equivalent (toe) is one of the world's lowest, expressed in terms of per capita energy consumption (160 kg of oil -5- equivalent); in terms of per capita consumption of oil products (17 kg); or in terms of per capita consumption of electricity (14 kWh). Yet even the satisfaction of this low level of demand for oil products represents a very real challenge to policymakers. In 1987, the cost of importing 130,000 tons of oil products 2/ amounted to US$ 47 million, equivalent to 16% of export income and to 6.5% of total imports of goods and services. Given these high costs and competing development priorities, the transition from biomass to modern fuels must be carefully planned. Indeed, given Burkina's well documented development constraints and prospects for future economic growth, the key energy issue facing the country is how to achieve an ecologically sustainable balance between fuelwood demand and fuelwood supply with minimal consequences on oil imports. Househol Me= Demand 2.8 While urban household energy demand is growing more rapidly, household energy consumption in Burkina Faso is dominated by the rural sector. Rural household energy consumption is about 8 times higher than that of the urban sector as shown in Table 2.2 below. Tabte 2.2: Rurat and Urban Household/Informl Sector Energy Consumption, 1987 #/ (ton, electricity a GkH) Fuetwood Charcoal Agr.Res. LPG Kerosene Electr. Rural Household 2,700,000 - 200,000 - 7,600 n.s. Urban Household 252,000 12,000 - 660 3,600 35 Urban Inf.Se. 41,000 2,000 - n.a. n.a. n.s. Total 2,993,000 14,000 200,000 660 t1,200 35 g/ Consumption of electricitya extrapolation of 1986 Sonabel figures Other consurption per capita per year: Rural consuwption of fuelwood * 365 kg; Urban household consumption a results from ESMAP/MET8s surveys of consuw,tion in the four major cities, other cities a 235 kg of fuelwood + 11 kg of charcoal; urban informal sector a extrapolation to all cities of ESMAP Ouegadouou surveys. If it is assumed that the factors influencing household energy consumption are held constant over the next decade, that annual population growth is 3.3% and urban population growth is 8%, rural biomass consumption will amount to 3.8 million tons fuelwood equivalent 2/ and urban consumption of fuelwood to 0.9 million tons in the year 2000. 4/ After the year 2000, however, the picture 2/ 1987 consumpdon was higher 153,00) tons. i/ With an estimated eneiy content of Z500 Kcal/k& the consmtion of 200,0 rtons of agcultwni residues in 1987 and 250,000 tons in the year 2000 comsponds to a "saving of 130,00 tons and 160,000 tons of fuelwood respectively. Yi C!amoal is denvedfronm two sources (a) as a residue fomm the buning of fuelwood (mostly supplied frm the infonnal setor beer bmwe) and (b) fivm the commercial carbonihzaon of fuelwood. If it is assumed that 15% of the enesgy content of uwd fuiewood in infommat sector beer poduction is retained n marketed Wsidue charoat, the 1987 suppty fim this sowu amounted to 2500 tons. In the year 2000, the supy would amount to 6,0A0 tons (increase equivalent to wban popution gowth). Based on these assump 'qns, conmea pvducwdi of chamcoal can thus be esimated at aund 8,a0o tons in 1987 and would Ke to about 26,000 tons in the year 20ltO At a carbonization rate of 20o, this tmnslates into a use of 40,000 tons of fuelwood in pumary poducion in 1987 and 130,000 tons in the year 2000. -6- changes under the impact of continued high urban population growth: about 80% of the potential increase in fuehvood demand between 2000 and 2010 will come from the urban sector (see Annex I). 2.9 As depicted in Table 2.3 below, the structure of fuelwood consumption for cooking in Burkina's major urban centers reflects the population's rural roots, its low level of income, and the high cost of modern fuels. Only a minority of urban households uses modern fuels to cover some or all of their energy needs. Table 2.3: Fuel Use for Cooking (in Urban Population) Fuetwood 91X Charcoal 64X LPG 7X Kerosene a/ 3X Vegetal residues 1X a/ Use for lighting not included Source: ESIAP 2.10 The 1987 ESMAP/MET household energy survey showed that households cook an average of 1.5 hot meals per day and that this use accounts for about 3/4's of urban household energy demand in Ouagadougou as well as in Ouahigouya (the most rural of the four largest cities). The structure of household energy use in Ouagadougou is shown in Figure 2.1: Figure 2.1: Ouagadougou Household Fuelwood Consumption by End-Use, 1987 R2EL.O Ct ONSWT I ON BY ENO USE j 5 ok P." Sorce: P T H Source: ESHAP/MET Househotd Energy Survey 1987 -7- 2.11 Urban households consume on average 644 grams of fuelwood and 30 grams of charcoal per capita/day, or a total of 693 grams per capita/day of fuelwood equivalents (calorific basis). Sasonal differences in consumption between the cold (December to February) and the warm period (the remainder of the year) are relatively modest, varying between 3% in Ouahigouya and 13% in Bobo-Dioulasso. Regional differences in fuelwood and charcoal consumption are higher: Consumption is lowest in Ouagadougou with 658 grams/per capita/day and highest (+23%) in Ouahigouya with 838 grams of fuelwood equivalents per person and per day. Preparation of medicine uses less energy in Ouagadougou than in Ouahigouya, because of a higher consumption of modern forms of medicine. The relatively high availability of fuelwood and the possibility for self-collection are other factors that induce a high consumption of fuelwood in Ouahigouya. 2.12 Factors influencingnconsumption. The three important socio-economic factors that influence energy consumption are household size, income elasticity and price elasticity. The implications of these factors are analyzed in Annex II. Because of economies of scale in energy consumption, smaller households have higher per capita consumption of household energy than larger households. Thus, a family of four will typically consume twice as much as a family of 13. Household energy consumption increases with income, but the effect in the case of fuels other than electricity is modest, owing to the basic needs character of household energy demand. Similarly, the price elasticity of household energy demand is low: a doubling of price will only decrease demand by about 15%. 2.13 LPG and kerosene consumption. LPG consumption is entirely an urban phenomenon, limited to 9% of urban households who use it principaHly as a secondary fuel. Consumption expanded during the mid-1980's, but has since stagnated because most of the households in the 'captive market"--the upper income groups-have already switched to LPG. Kerosene is widely used in both urban and rural households, but its use is limited almost exclusively to lighting. 2.14 LPG-consuming households differ from the average fuelwood-consuming households in three aspects: these households are richer; they are smaller (see Table 2.4) and have a preference for meals that are less energy intensive than the traditionai Burkinabe meal: Whereas 1t,", (Burkina's food staple made of millet and sauce) makes up 60% of the daily diet in fuelwood- consuming households, it represents only 12% in LPG-consuming households. Per capita consumption of household energy in LPG-consuming households is, as a consequence, lower than in other households, although the opposite would have been predicted on the basis of their size and income. §/ V In pad, the lower lvel of consumption may be due to a higher propensity to eat outside the house. jJTW2 2: Householu size nd Average Coupt ion in LPG Consring Households Averae Cons.of LPG Total cons.incl. Size per capita/ fuultood in fuetwood day equivalent J/ Non-gas using households 8.9 0 709 gram Use of gas as aux. fuet 7.9 19 gram 721 gras Use of ga as main fuel 4.1 60 grm 575 gram Use of gas as only fuel 3.1 60 gram 413 gras 1 Calculated on the "useful energy equivalency" 1 kg of gs 7 kg of fuetwood Source: ESNAPMET Household Energy Survey, 1987 2.15 Electricity. Electricity consumption is almost exclusively an urban phenomenon. As depicted in Table 2.5, only 22% of households in the five largest cities are connected to SONABEL's grid and consume, on average, 1043 kWh per year. If some of the connected households seli electricity to their neighbors, the percentage is probably higher (raising it by a third, based on the experience in other low-income countries) and thus, per capita consumption is slightly lower. Surprisingly, the connection rate is lowest in Ouagadougou (20%) and highest in Ouahigouya (33%); average annual consumption per connected household, on the other hand, is highest in Ouagadougou (1429 kWh) and lowest in Ouahigouya (309 kWh). rabte 2.5: Penetration of Electricity in Urban Househotds, 1987 (kWh) Comected In percent Average anmuat Households of household Consuption Ouagadougou 17,710 20 1429 Bobo-Dioulasso 9,552 25 733 Koudougou 1,928 22 467 Ouahigouya 1,941 33 309 Banfora 1,943 28 260 total 33,074 22 1010 Source: SONASEL 2.16 Given current trends, the percentage of connected households in the five largest cities will increase to 44% by the year 2000 and urban household demand will increase from 34 to 170 GWh. Because electricity serves other purposes than cooking, it will not influence fuel consumption apart from the use of kerosene for lighting: Compared on a useful energy basis, present electricity tariffs are three times as high as fuelwood. §/ O/ Cost per kWh (3.6 At) in Ouagadougou in 1987 is 87.8 CFAF. Asuming a 60% efficdency for the electic cooker, this amont to 40 CFAF/usefid MJ. 1 kg of fiewlood (16 AJ) costs 25 CFAF, or, at a 14% toditional cooker efficiency, 11 CFAF/useftd W. -9 - 2.17 Fuelwood demand in the informal sector. The informal sector is an important source of urban and, in particular, female employment and comprises both secondary and tertiary activities. The most important energy-consuming activities take place in the informal production of millet beer (dolo); in commercial food preparation: street stalls and street barbecues; and in bronze foundries producing tourist items and cookware. These activities account for about 16% of urban household energy demand as shown in Table 2.6. 2.18 Energy intensity of dolo production is high: The ESMAP/MET surveys showed a consumption of 1 kg of fuelwood per liter of dolo produced, making the dolotifres a clear target for energy savings campaigns. The fuelwood demand of other small-scale productive activities, e.g. bakeries, roadside restaurants, etc. is unknown, but warrants further investigation. Taking all such activities into account, it is likely that fuelwood demand across the informal sector accounts for about 20% of the total commercial demand for fuelwood and charcoal. Here again, however, national figures can mask important regional variations in consumption: in Koudougou, millet beer accounts for 38% of total urban fuelwood consumption. Table 2.6: Informal Sector Fuelwood Consuption in Ouagadougou (tons) Nuvber Fuetwood Charcoal Total fuelwood a/ in X Dolo produ. 589 16,000 16,000 11 Food stalls 409 3,900 30 4,000 3 Barbecues 394 800 660 2,500 2 Pot foundries 30 230 600 0 Bronze foundr. 16 60 30 1.0 0 TOTAL 20,760 950 23,210 16 W/ a/ Conversion of charcoel to primary fuelwood consuwption based on 20X carbonization rate; half of the charcoal is assumed to be recovered from fuelwood consrption, half from tree-felling. b/ Household consumption a 85X Source: 1988 ES WAP/NET surveys. Biomass Resources 2.19 Burkina's woodfuel demand is met by its natural forests. They are mainly in the form of savannah bushlands and cover nearly 50% of the territory. Tbis report estimates that deforestation is occuring at an annual rate of 60,000 hectares of which 40,000 for land clearing for agricultural expansion; the remainder is the result of bushfires, drought and the cutting of wood for fuelwood consumption in mostly unmanaged forests. Total natural wood production is currently estimated to be about 10 million m3 (6-7 million tons) per year. Of this amount, the MET, estimates that 2.5 million tons are available for fuelwood consumption in the sense of being accessible to the local population and corresponding to local demand. The construction of new access roads will, over time, increase the amount of accessible fuelwood, and higher fuelwood prices will bring remote areas into the commercial fuelwood circle. The deficit in 1987 of 0.5 million tons, representing the difference between demand and currently sustainable supply is met by clearing of - 10- the forest cover (cutting of green or of remaining dead wood). How much of this is a by-product of the clearing of agricultural land and how much is due to the rapid growth ir. the urban demand for biomass is unknown. 2.20 The imbalance between fuelwood demand and sustainable supply is bound to increase in the future, fueled by the high rate of population growth in general and by rapid urbanization in particular. The growth of population from 9.8 million in 1989 to 12.5 million in the year 2000 will boost annual fuelwood consumption from 3 million tons to 4.5 million tons and urban consumption from 0.33 million to 0.9 million tons by the year 2000. The counterbalancing forces to this potential tripling of the urban demand for fuelwood are too weak to reverse this projected increase. An estimated rise in per capita income of 1-2 per cent a year is too low, by itself, to accelerate fuelwood substitution. Moreover, the standing volume of wood is still sufficiently large to meet the rising demand for fuelwood with little or no upward pressure on prices until after the year 2000. Managing the Fuel Transition 2.21 Given Burkina's development constraints, Government has limited policy options to manage the fuel transition: it must maximize fuelwood consumption within the urban household sector over the longer term, while seeking socially acceptable and affordable means to introduce the use of petroleum products for household energy tasks across a wider spectrum of the urban population than is currently the case. Government's emphasis since the early 1980's has been largely on the rural sector where the majority of the Burkinabe population resides. It is, however, notoriously more difficult to introduce demand management through improved stoves in the rural sector, both because the population is widely dispersed and because rural households have less financial motivation to reduce consumption of self-collected fuel. Furthermore, the preservation of the forest cover is a remote concern of poor rural households for whom daily survival strategies are first priority. The lackluster penetration of these improved stoves into rural households is ample evidence; a 70% penetration fell to half that figure after the first year of the program. 2/ 2.22 Since Burkina Faso's population is and will remain predominantly rural well into the next century, energy savings measures should continue to be promoted in the rural sector, provided these actions are re-formulated and resources more efficiently deployed. Because the rural population tends to meet its fuelwood requirements from dead wood, the impact on the environment is marginal--if at all. Where green wood is consumed, it is more typically the result of clearfelling for agricultural development. This destruction of the forest cover is not energy- related and, therefore, cannot be expected to respond to energy-related programs. 2.23 The rapidly growing urban sector poses a far more serious problem for the management of these natural resources, and must become the prime focus of future efforts. Between now and the year 2000, it is the intensive and concentrated urban fuelwood demand that will contribute directly to environmental degradation, since a rising share of this natural resource is mined exclusively for the urban market. Because these mined areas are not used for agricultural purposes Z/ A 1988 ti-pwlite iew of donor involvement in BDw*ina's Bois de villae pmnm, one of several popudar-bad Wiitves to mwe the depledon of its resows, undecored the apparvnt mdaffesence of the nrl population to dA benejlts of imptwed stove use. This evauatdon also noted that, even in the most deforested zones, the nol population apeand adequately stocked wfth fuelwood and twily cited its absence of fuelwood as prbkm. - 11- and are unprotected from wind and rain, soil degradation is most severe. Actions to restrain urban demand must, therefore, be directed, in the short term, to reversing the widespread environmental decline on the central plateau. If today, Ouagadougou accounts for half the country's urban population, this share will climb to two-thirds by the year 2000. The level of urban demand will be 2.6 times higher than in 1987, putting heavy pressure on the commercial fuelwood supply system. The most immediate impact of increased wood scarcity will be on household welfare and, especially, among the growing ranks of the urban poor. They could be expected to face higher woodfuel prices towards the year 2010 or shortly thereafter, a lower per capita consumption of cooked food and a shift backward on the fuel ladder to less desirable fuels. C. Government Household Energy St Household Energy: A National Program 2.24 The Government's 1986-1990 Five-Year Development Plan called for an ambitious household energy program. The program consisted of actions in: (a) demand management- consisting of (i) disseminating improved woodstoves, with a particular focus on the rural population; and (ii) promoting LPG and kerosene as substitute fuels in the urban sector; and (b) supply management- changing the price structure of fuelwood in favor of fuelwood producers and encouraging the creation of woodcutters cooperatives. By 1990, the strategy aimed to: have two-thirds of all households using an improved fuelwood stove; 32,000 urban households using an LPG stove; reach an annual consumption of 4,800 tons of LPG; market improved stoves for modern fuels and, in particular, LPG and kerosene; and protect and generate wood resources. 2.25 Program performance. Government made significant strides in implementing its program, although by the end of the Plan period, original targets will not have been met. The ESMAP household surveys highlighted this fact and the MET, responsible for program execution, undertook some, albeit limited fine-tuning of the program in 1988. This data showed that, at the end of 1987, about one-third of urban households were using an improved woodstove, although it was but one of several cooking devices in use. While 100,000 stoves had been constructed by the rural population, early enthusiasm for the program by the population waned quickly for several reasons. Access to self-collected fuelwood is one. Another reason appears to be due to the fact that many rural women attach greater importance to reduced cooking time than to reduced collection time and many women found that cooking times increased with the new stoves. In addition, poor rural households appear to attach limited priority to environmental protection and its link to improved stove use. On the fuel substitution side, 9% of households in the four major cities had acquired an LPG stove and overall demand for LPG had increased from 745 tons in 1985 to 1476 tons in 1987. Finally, following a reorganization of the fuelwood supply structure in 1985, fuelwood prices had climbed by 60% in Ouagadougou with household demand dropping to a level that was, on average, 9% lower than average fuelwood demand in the three other major cities. - 12 - 2.26 By 1988, the program had stalled. LPG sales had leveled at 1,500 tons per annum and the pace of sales of improved woodstoves (6,000-7,000 per annum) was below that needed for stove replacement and to keep up with the growth of the urban population. The improved stove program was resulting in savings of approximately 15,000 tons of wood per annum or 7% savings of total household fuelwood consumption per annum. However, the annual formation of about 12,000 new urban households, representing 23,000 additional tons of firewood per annum, wiped out these gains. Furthermore, of households with monthly incomes below 20,000 CFAF, only 18% had acquired an Improved 3-stone stove and only 5% an Improved net stove promoted by Government's program. Data from the ESMAP surveys further indicated that efforts to instruct the urban population on more efficient cooking methods (e.g. protection from wind; use of a lid; fewer pieces of wood; recovering and recycling the charcoal etc.), not now a major focus of Government's promotion campaign, could generate fuelwood savings that could equal those resulting from the efficient utilization of the improved stove. 2.27 Efforts on the supply side in favor of reforestation had produced modest results. industrial plantations had not proven cost-effective for fuelwood production. Village afforestation schemes faced growing organization and implementation difficulties. Thorny issues including those of land tenure, traditional patterns of cultivation, village politics, internal migration trends, to mention but a few, further complicated an extremely complex issue. The following chapters examine program performance in more detail. Institutions and Poligy Framework 2.28 There is institutional fragmentation in the energy sector, making policy and program definition and coordination difficult. In the absence of a Ministry of Energy, ad hoc administration and definition of energy issues is the province of the sectoral ministries and state companies. Regular overall energy planning is not done except in conjunction with the preparation of the five year plans; program evaluation is an infrequent instrument of sector development. Project implementation has top priority because the bulk of the sector's investment comes from external sources. This approach has had the advantage of providing a rich environment for testing and experimentation in household energy, where, indeed, there have been few precedents. At the same time, this dispersion of scarce resources in the Burkinabe context is not easily defended. Finally, the absence of indicators to measure performance means that corrective action is often taken late and in an improvised manner. 2.29 The Ministry of Environment and Tourism (MET) is the key actor in household energy and will continue to be so as long as this sub-sector's consumption is primarily based on biomass. The MET is responsible for the management of fuelwood supply (forest management and fuelwood distribution issues) and for the demand management of fuehvood (fuelwood pricing and improved wood stove programs). It collaborates with the Ministry of Agriculture (MAE) in the implementation of village forestry schemes and natural forest management projects and in the diffusion of the Improved three stone stove in rural areas. It implements the urban improved stove program through its Extension Service (DSVF). The Family Ministry, (MEFSN) plays an advisory and a policy dissemination/educational role in promoting improved wood stoves and the use of substitute fuels such as LPG. - 13 - 2.30 The Ministry of Commerce (CAPRO) is responsible for the pricing of petroleum products and, together with the MET, for setting retail prices of charcoal and fuelwood. CAPRO fixes the price structures on the basis of recommendations from the responsible inter-ministerial committee. 2.31 Founded in 1982, the Burkinabe Institute for Energy (IBE), under the Ministry of Higher Education and Scientific Research (MESRS), is responsible for energy research of a technical and policy nature. The IBE developed the improved woodstove and charcoal models that are disseminated in Burkina Faso as well as prototypes for a domestically produced LPG stove and a kerosene stove. In collaboration with the Ministry of Labour, it has trained local blacksmiths in the techniques of the production of improved woodstoves. Finally, the IBE has assisted the MET in the implementation of dissemination campaigns for improved woodstoves and in the evaluation of results. 2.32 SONABHY, the national oil company founded in 1985, has the monopoly for the imports of oil products and is responsible for the formulation of sector policies. 2.33 The two most important inter-ministerial committees in the field of energy are the Inter-ministerial Committee for the Promotion of Improved Woodstoves and the Commission for the Promotion of LPG, created in 1984. The former is chaired by the MET and composed of representatives from the National Secretariat General of the Comites revolutionnaires (CRs), of the MEFSN, the MESRS, the MAE, the Ministry of Labour, the Ministry of Social Security and the Ministry of Information and Culture. The latter Commission is presided by SONABHY and is composed of members from various ministries, such as the MET, CAPRO and IBE. The impact of this structure on program formulation and implementation is one of predictable overlap and inefficiency. 2.34 Notwithstanding the inter-ministerial committees, the different actors work in relative isolation in the same or complementary fields. These committees have met infrequently in the past and suffer from a lack of staff continuity. Their unclear roles vis-a-vis the responsibilities of the line ministries is also a constraint. The institutional framework for environmental management is receiving close scrutiny within the preparation of the National Environmental Plan and should include the ministries and other agencies responsible for household energy and fuel substitution as described in this report. The various components of the Government's household energy strategy that are the responsibility of ministries and agencies depicted above are described and analyzed in the folJowing chapters. - 14 - III. DEMAND MANAGEMENT: DISSEMINATION OF IMPROVED STOVES A. Program Context 3.1 Spurred by bilateral support, the improved woodstove program became the linchpin of Government efforts in the fight against desertification. Bilateral aid forestry projects and non governmental organizations (NGOs) first introduced the so-called improved woodstove in Burkina Faso as early as 1979. These attempts, however, were fragmented and improvised and produced stoves that were ill-suited to local conditions. With the creation of the IBE in 1982, Government sought to shore up its efforts by heightening control over all facets of the program. IBE was designated as the national center for the development of improved stoves and the Extension Service of the MET, the DSVF, subsequently became the coordinating entity and executing arm of the Inter-ministerial Technical Committee for the Promotion of Improved Stoves. 3.2 Commercially produced improved woodstoves are more costly than traditional wood stoves: they are more complicated to produce and use more material. Similarly, self- constructed improved woodstoves are more labor-intensive than traditional self-constructed stoves such as the 3-stone stove, and may, in addition, require some financial outlays for the material. The crucial issue for the future of the stove dissemination program thus becomes how to market and gain widespread consumer acceptance of a new product that has a higher purchase price than alternative, established products (demands more labor in construction). It promises lower operating costs (saves labor for fuelwood collection) during its lifetime, but offers no significant user advantages nor satisfies additional wants. / 3.3 The improved wood stove has, therefore, characteristics more similar to a savings asset than to a new consumer product. This feature poses some marketing disadvantages, particularly in a low-income country such as Burkina Faso, where many consumers face chronic cash flow problems. A savings decision is more likely to be postponed than the satisfaction of a consumer want. Lowering the higher price of the improved stove will be, as a consequence, key to a massive dissemination of improved woodstoves. 3.4 A successful stove program must have the following elements: (a) stove models that (i) are more energy efficient than traditionfal stoves; (ii) meet widespread consumer acceptance and (iii) have a favorable investment/savings ratio; (b) a production system that (i) is cost-efficient; (ii) has sufficient supply flexibility to satisfy increases in demand; and (iii) delivers a reliable product; t/ The additional advantages they may have am offset by their inconveniences. Faster cooking time is often clabied for npved stows. Howewr, accordingto the METand the IBE, whatis gained in cooking is lost in time spentforexcn sptining offuelwood and in edra ceaning of the pots (the more concenitmed nanu of the smoke makes the pots didier). Ty also clim that, in the rainy season when the wood is wet, impmved stoves at more difficult to light. *.15- (c) a distribution system that is efficient, autonomous and able to reach the mass consumer, and (d) a marketing approach that (i) reaches the majority of consumers and (ii) convinces the consumer of the advantages of the product. 3.5 The following paragraphs will examine the performance of Government's stove dissemination efforts in light of these features. B. The National IMproved Stove Proyam Stove Models 3.6 Household stoves. IBE's research and development in improved stoves has been a key factor in the achievements of Burkina's improved stove program. IBE has developed three stove models: the improved 3-stone stove, mainly for use in the rural areas, is self-constructed, made of clay and non-portable; and two portable metal stoves that are commercialy produced for the urban market--the Ouapa mEtallique for fuelwood and the Burkina mixte for fuelwood and charcoaL All are single-pot models. Prototypes of ceramic stoves have been test marketed since 1984, and a prototype for a multi-pot improved metal stove exsts. 3.7 Laboratory and user tests showed that the improved stoves are 26-30% more energy- efficient than the traditional 3-stone and traditional metal (malgache) stoves. The price/energy cost savings relationship is also favorable. The a stove costs 300 CFAF, the Ouga mitalllque between 650-950 CFAF (depending on the size of pot for which it is constructed), and the Burkina mixte between 1,300-1,650 CFAF. Average annual fuel savings for a household amount to 235 kg per improved metal stove, or 5,900 CFAF in Ouagadougou and 3,500 CFAF in other cities. 2/ The higher cost of an improved metal stove can, therefore, be recovered as fuel savings within 4 months in Ouagadougou and within 6.7 months in the other cities. 3.8 Results of limited market tests carried out by ESMAP/IBE in late 1988 (door-to-door sales and a pilot consumer acceptability test) seem to confirm the existence of a consumer demand both for higher priced metal stoves and for ceramic stoves, as depicted in Table 3.1. The Burkina mixte is almost 50% more expensive than the Oupa mdtaillque, yet due either to the ease of firing or its appearance (or both) it achieved the highest level of sales. Perhaps the most revealing result of these limited pilot tests is that 60% of the households in the poorest income category purchased a metal stove, providing some hope that daily cash restrictions at this income level would not pose an insurmountable obstacle to a wider penetration of improved metal stoves. i/ Cooking tests pefmed by ESMAPIMET at the IBE showd dh the imped 3-stone stow is 26% and the hvvwd metal sw 30% mom env efficient than the Vdial 3-stone sMOM The sapnp compared to the malgache stove ar sl;hdhy 1o Avemge annual fuelwood consuptm in famiwes uing an ampowd 3-se stowe amounts to Z3W 4 Since the imprved metal stove is used for 60% of the stow , annual savings should amount to 400 kg. - 16 - Table LI: Market Prospects for Improved Stoves Door-to-Door Sates and Acceptability Tests (distributfon, of sales of improved stoves in X) Door-to- Consumer acceptability test door sales <20,000 20,000-49,000 50,000-99,000 Total (household income in CFAF) Ceramic stove 10% 25% 27% 4% 17% Ouaga M6tallique 32% 56% 33% 26% 37% Burkina Mixte 58% 19% 40% 70% 46% Sour!f: MET/ESNAP pitot projects 1988 3.9 The advantage of the single pot improved stove is its high efficiency. However, households continue to rely on traditional stoves for larger sized pots. It may well be that the lower efficiency of the multi-pot stove is more than compensated by a higher level of use. Both the energy efficiency and the overall level of utilization of the multi-pot stove need to be tested in the information campaigns designed to promote more widespread use of this equipment. If more families use multi-pot stoves for most of their cooking and heating requirements, important energy savings could be generated. 3.10 Informal sector stoves. Since approximately 60% of fuelwood consumption in the informal sector takes place in the production of dolo (millet-based) beer, IBE concentrated its efforts on reducing fuelwood consumption during this process. A prototype (the Burkldo) stove for dolo production was developed by IBE. According to test results, it reduces consumption by 30%, if used correctly. Although this stove was developed in 1986, there is little information on its performance nor on the number of stoves purchased by the women dolotitres. If the energy savings generated during laboratory testing hold in practice, the Burkido should be assured of a rapid dissemination. The investment cost is no higher than the cost of three weeks of fuel consumption for a dolotJlre as shown in Table 3.2. Furthermore, if correctly used, the investment cost of the Burkido can be recovered within three months as the value of fuelwood savings. During the average 3-year lifetime of the stove, it is estimated that some CFAF 360,000 of fuelwood savings could be generated. Table 32: The "Burkido Stove Basic Data Average cost of investment in Burkido 3D,000 FCFA Weekly fuelwood consumption of dolo- ti&re using traditional stove 500 kg Average monthly fuel expenditures of a doloti&re using traditional stove :45,00 FCFA Expected fuel savings from use : 30% Monthly value of 30X fuel savings :13,000 FCFA - 17 - C. Stove Production and Distrib n 3.11 ublic i role. Since the outset of the program, production and distribution of improved stoves in Burkina Faso have been characterized by a general across-the-board involvement of the public sector. The DSVF intervenes throughout the production-marketing chain, from the supply of scrap metal to the blacksmith on a loan basis, until the delivery of the improved stoves to the consumer, and fixes the prices and revenues at each level of the chain. 3.12 InfQrmal sector artisans. For reasons of socal equity and employment generation, the Government tapped local artisans to produce the improved stoves. Since the blacksmiths were already producing the trditional malgache metal stove, it was deemed cost effective to build on an existing structure of stove production and distribution, which had clearly demonstrated its ability to satisfy customer preferences at low cost. Since the program's inception in 1984, 66 blacksmiths have been trained in the four major cities. Templates are used to reduce production time and meet energy efficiency specifications, although quality control has not been consistently practiced. 3.13 Depending on the type of product (water cans, pots, pans etc.) blacksmiths use either new metal (2,460 CFAF per in2) or scrap metal (1,050 CFAF per n2). Since scrap metal is used to produce the malgache stove, it was decided to do the same for the improved stoves. This policy makes sense, since the metal component is the principal determinant of the cost of the stoves (see Table 3.3 below). Table 3.3: Price Structure of Improved Metal Stoves (FCFA) Ouasga metallique Burkina mixte Cost of scrap metal 4/ 550 900 Labour costs OI 280 400 Total cost of production 830 1,300 Official producer price 650 1,300 Official retail price 750 1,400 p/ Based on the DMSV price for scrap metal in Ouagadougou in 1988. k/ Based on normal minimum revenues for blacksmith assistants in 1988. Source: ESNAP/MET Survey, 1987 3.14 However, this is only a medium-term solution. Burkina's main source of scrap metal for the improved stove comes from used oil drums, of which a total of 6,000 are available annually from major industries. Approximately 18,000-22,000 improved stoves can be produced from this supply. If, however, a 50% penetration rate of improved stoves in urban households were to be achieved by 1993, a supply of 70,000 stoves would be needed. JO/ Given present trends, the 1I/ 20,0Oto be puwrhased by households that do not possess an improved metal stove and 5O400forreplacement of won out smprowd metal stoves (3.year lifetime). - 18- prospects are dim for identifying sufficient scrap metal to meet this higher level of demand over the longer term and some of the production of the improved stoves will have to be based on new metal. 1J Since this will increase the cost of the stove by 1,000 CFAF, the market will need to be segmented and market outlets identified for these higher priced stoves. L2/ The Incentive Environm-ent and Stove Production 3.15 In order to keep the consumer price of the stoves as low as possible, the DSVF fixes both producers' and retailers' margins. These margins have discouraged broader artisan participation in stove production. In the case of the Ouaga mtalllque, the producer price does not cover production costs, unless producers can obtain scrap metal at prices that are lower than those charged by the DSVF. U/ The producer margin for the Burwkna mlxte is more realistic, but still lower than margins on alternative products: blacksmiths can earn 850-1,250 CFAF per day producing the improved metal stove; producing other articles, they make about 1,800 CFAF. As a result, most of the trained blacksmiths have abandoned the production of the improved metal stove. L4/ Those producers who continue to participate assign production to their apprentices, who take up production of improved stoves when there is nothing else to do. In the absence of any follow-up training by IBE, this situation accentuates the problem of quality control. 3.16 Distribution arrangements are no better. The retailers' margin (100 CFAF per stove) is so low that the traditional distribution system for the malgache shows no interest in promoting the improved stoves. Once produced, the stoves are then purchased by the DSVF. This arrangement reduces the incentive for producers to develop their own marketing channels and further entrenches the public sector within the program. In contrast, the production and distribution of traditional malgache stoves functions efficiently without any supply bottlenecks. The demand for the malgache stove is stable and scrap metal is secured by the blacksmiths through traditional channels with little or no difficulty. Marketing of Improved Stoves 3.17 State-run and private sales points. The DSVF has set up one sales station, run by its own staff, in each city. It is intended that these points serve three functions: (a) quality control; (b) stocking centers that can cover demand during promotional campaigns; and (c) supply points for privately run sales outlets (a total of 32 in the four cities). Their performance as sales outlets has been poor, with daily sales averaging no more than two stoves per center. The centers are LjI The supply of scrap metal may even diminish in the coming years: major suppliers of scrap metal -- manufacturers of chemicals and soaps are shifting from metal to plastic barrels. LZI The raw material situation would be less of a constraint, if an improved ceramic stove were successfully marketed. However, the production of ceramic stoves is limited to the region of Zinare, near Ouagadougou. While these stoves have been successfully promoted in this region, there has been little effort to develop a broader-based market for the product. Qi The blacksmiths do not pay salaries to their employees. Instead, revenues are shared on a 60/40 basis. The DSVF sells `lattened' barrels to the blacksmiths at 2,000 CFAF a piece; on the free market, blacksmiths can obtain non-flattened barrels at 1,250-:,500 CFAF. Li! At the end of 1988 only 9 out of32 trained blacksmiths in Ouagadougou were still producing improved metal stoves under the Government-sponsored program. - 19 - located too far from the traditional stove markets and the staff lack the skills required to market the product. As an unproductive intermediary, they add to total distribution costs. Quality control could be organized more cheaply and more efficiently through certified controllers trained by IBE, who would visit artisans and provide a seal of approval on well made stoves. 3.18 Ilineran sales, The ESMAP/MET project attempted limited door-to-door sales by private salesmen. The results were encouraging, averaging about 7-8 stoves per salesman per day. With daily sales of six improved stoves per salesman, three itinerant peddlers working 300 days per year could sell more than 5,000 stoves in Ouagadougou, or double the 1988 sales level achieved by the DSVF, using all available sales channels. At the cufrent penetration level of the improved stove, an increase in the number of itinerant salesmen would appear to be a good marketing tool. These salesmen would boost sales up to the point of market saturation. Their presence on the traditional market would heighten visibility of the stove; as increasing numbers of customers purchase an improved stove. those that have refrained from participating to date would feel obNied to do otherwise. 3.19 Marketing techniques. Improved stove promotion activities are executed by the provincial offices of the MET in collaboration with other decentralized ministerial offices and NGOs. Campaigns to promote the Improved 3-stone stove in rural areas were first undertaken in 1983 as a component of forestry projects. Similar campaigns were carried out in the major cities in 1984 and 1986, but were later abandoned for cost reasons as weDl as problems associated with their correct construction use and maintenance. j5/ Late in 1984, the improved metal stoves were first promoted among public employres in Ouagadougou; more widespread urban promotion campaigns were then undertaken. 3.20 The MET/DSVF use three marketing instruments: (a) direct sales to government employees; (b) periodic short-term campaigns supported by purchase rebates; and (c) permanent promotion activities. Direct sales to the public sector have been the most successful. ESMAP/MET surveys showed that, of total households using a metal stove, one-third had a household head who was either a public employee or military staff. Twenty-two percent of public sector employees have a metal stove, while only 13% of private sector employed households have a metal stove. 3.21 Permanent promotion activities are rare. There has been, however, a general use of posters to promote improved metal stoves as wedding gifts and to appeal to a 'keeping up with the Jonese notion amongst the population. J16 The backbone of the DSVF program remains the short Intensive sales campaign. They were first implemented in Ouagadougou and Bobo-Dioulasso in 1987 and in Koudougou and Ouahigouya in 1988; all were supported by rebates of 40-50%. Future efforts need to reconsider the rationale for this policy, given its impact on the blacksmiths. a/ Pope combton mnnance and convct use detemine Use klvel of enert savtnp ahevvd. According to sw° v by tw DSVF, only 5060% of te improwd 3-stone stows ar well constd, 7The te of utilizaion hi housdid& having built an improwd 3-stone stow anes between 480%. The disseminaion of the improved 3-stone stow is done by ining women tuiners in stove constnction. The DSVF emates that und 400 people have beenaind in consucodm of the impwved 3-stone stow. W As pautof its campaign, the DSVFhasppromoted the idea of gingimwrod stos as weddng gifts. It would have been iesting to test if IE's painted metal stoves could find a maiket for this pwpose. -20 - The subsidy makes sense from the DSVF point of view, since success is measured by the number of stoves sold during the campaign rather than over the length of the program. The rebates have, however, acted as a powerful disincentive to the blacksmiths, who have largely refused to participate, concerned that the stoves will not sell once the rebate period is over. 3.22 These campaigns have other problems. They create a high demand for the improved metal stove during the campaign and a fall in demand immediately thereafter. The traditional system of scrap metal supply copes poorly with bursts in demand and the blacksmiths face cash flow problems in buying larger than usual quantities of scrap metal. These campaigns are also costly. As shown in Table 3.4 below, the cost per unit sold (1,400 CFAF/per stove) is high compared to the retail price of the stove (ranging from 650 CFAF-1,650 CFAF for the Ouapa metalUque and the Bur km ixte. While per unit costs are typically high in the early phases of a marketing campaign, the apparent continuing lack of consumer interest in the stove products several years into the program is a strong signal that the campaign strategy needs to be reconsidered. table 3.4: Canpsign Costs and Sates caamign Cost (FCFA) Sale of Stoves Cost per Stove Ouagadougou 87 6-7 milltion 5,000 1,400 FCFA Bobo-Dioutasso 87 1 mitlion 1,200 830 FCFA Koudougou 87 1-2 million 1,200 1,000 FCFA ouahigouya 87 2 million 300 6,700 FCFA Sou ESrEP/4PET 3.23 Campaign messae. The content of the promotional message used in the Government- sponsored campaigns has also deterred consumers from purchasing the stoves in larger numbers. From the outset of the program, political messages have dominated the campaigns, from raising the environmental consciousness of the population to promoting women's participation in environmental protection. Commercial messages were introduced late into the program but have not yet been anchored in an in-depth understanding of what motivates the consumer to purchase and use the product. 3.24 Monitoring and evaluation. The absence of an adequate monitoring mechanism has deprived the MET of sorely needed information on consumer response to these campaigns. ESMAP/MET surveys showed that the most commonly used marketing techniques (cooking demonstrations in public places, posters, loudspeakers etc.) have failed to convince the consumer that purchasing and using an improved stove would have an impact either on their finances or on their quality of life. ESMAP/MET interviews in Ouagadougou, for example, revealed that the marketplace was a poor locale for stove demonstrations, since women have other pressing tasks to complete and limited time to linger. Once past the initial curiosity, few women stayed to watch and fewer still stayed to learn about the fuel economies. In contrast, demonstrations held in the neighborhoods were well attended. The Ouahigouya promotion campaigns were not successful at all due, in part, to the widespread use of the Improved 3-stone stove (38% of households), to the relatively low price of fuelwood and to the high level of self-collection of fuelwood. This - 21 - information underscores the need for market analys and for tailoring promotion campaigns to the specific socio-economic and regional characteristics of the individual city. 3.25 J= aL sectgi cam nn Initiatives in this sector were limited to work on the Blldo stove. While limited evidence suggests that other informal sector activities are important consumers of biomass, few sustainable initiatives have been developed. A campaign to promote improved stove use among the street food vendors is, nonetheless, warranted not only because of projected energy savings in this subsector, but because a successful campaign will add to the visibility of the improved woodstoves. Introduction of the "journ6e continue" has encouraged a flourishing curbside restaurant business that can be expected to grow as the urban population grows and as economic conditions change. D. Improved Stove Progrm: Results 3.26 The ESMAP/MET survey of the households in the four major cities in the fall of 1987 showed that urban households own, on average, 2.9 stoves of different types, of which 2.6 are used. The different models are used in the following order of importance: (a) 59% of households regularly use the traditional 3-stone stove; (b) 40% of households regularly use the traditional metal stove, (the algpche); (c) 25% of households make regular use of, on average, 1.8 Improved 3-stone stoves; (d) 14% of households, make use of the Improved metal stoves. These 15,000 households own a total of 26,000 improved metal stoves, of which 22,000 are used. Two-thirds of these are Ousp mEtallique, one-third are Burkina mIxte. 3.27 Penetration by city. Table 3.5 provides information on the rate of market penetration by city. Because of the much higher fuelwood and charcoal prices in Ouagadougou, a priori, it was to be expected that the level of penetration of the improved stoves would be highest there. Similarly, _ o it would have been natural to conclude that the favorable fuelwood supply situation in Ouahigouya would have occasioned a lower level of improved stove penetration than elsewhere. The actual outcome, however, is more complex as Ouahigouya has the highest penetration rate. However, it is based exclusively on use of the improved 3-stone stoves. Use of improved metal stoves is almost nil in Ouahigouya. In Bobo-Dioulasso, on the other hand, the rate of penetration of improved stoves is a third lower than in Ouagadougou and Koudougou's penetration rate is only half that of Ouagadougou. -22- Tab3±j: ltproved Stoves, Rate of Market Penetration by City, 1987 Nuner of households In % of using imwoved stove households Ouagadougou 26,000 39% Bobo-Dioulasso 8,000 31% Kowdougou 900 14% oushigouya 1,600 S0X TOTAL 36,500 36 3.28 That 36,000 households, or one-third of the urban population made regular use of an improved stove represents an important achievement for the program. 1I/ Since 1988, however, sales have been insufficient to permit a further market penetration of the improved metal stove. In 1988, when the number of urban households grew by 8,900, official sales amounted to 5,000 stoves, of which half were sold in Ouagadougou. Sales outside the government-supported network are not known. Taking into account replacement needs for worn out stoves and that, on average, 1.7 improved metal stoves are used in the household, this level of sales corresponds to less than 3,000 new customers. 3.29 Penetration by income group. Knowing the penetration by consumer category of improved fuelwood stoves is an important management tool for policymakers, because it improves the possibility of targeting the campaigns to specific consumer categories as well as measuring the program's social impact. X8/ Figure 3.1 provides three types of information: (a) the distribution of the total population by income group (% of total), (b) the distribution of improved stove users by income group and (c) the rate of market penetration of improved stoves in each income group (% that uses an improved stove). Income group 1 represents those with incomes less than 20,000 CEAF; group 2 with incomes of 20-49,000 CFAF; group 3 with incomes of 50,000-99,000 CFAF; group 4 with incomes of 100,000-149,000 CFAF and group 5 with incomes over 150,000 CFAF. The largest number of households (40%) as well as the largest number of improved stove users (43%) are found in income group 2. The highest market penetration rate is found in incon'e group 4, where half of the house-holds use an improved stove. 3.30 Figure 3.2 shows that in all income groups, the improved 3-stone stove has a higher level of market penetration than any of the two metal stoves -although the combined level of penetration of the metal stoves is higher than the Improved 3-stone stove in the two highest income categories. This information suggests that, for the overwhelmingly majority of the urban population, the saturation point of the market is far from being reached. 11/ 6,0 houeholds used boah the impowve metal stow and the imped 3-stone stow. j8/ Ccwbwy to many other Afncan cities, the distiributon of the "ban population by neighborhood in Ouagadougou is akuiww, homogeneous. This makes it di,fcult to tegee the camwains to spcflc lowuincome gbys. - 23 - Fisure 3.1: Market Penetration of Inproved Stoves Figure 3.2: Level of Household Income & Penetration by Income Group of Different Types of Inproved Stoves Market _entration of laDroe d 3-Stone St° 00 2 4 0 6 Markt Pentration of Malsathe §Stg 8> incot group in S of total poputatione X of iprod vdstove-users beltonin to irc agr. Pqewtution rate of Iqwroyed Stovesa In inc gr. _ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~I - 1 2 a 4 6 Penetration of Burkina Mixte 40 40 L01 A 0 - 24 - 3.31 Impat on low-ncome familes. Considering the high economic burden of fuelwood expenditures on the low-income household budget, improving welfare through the dissemination of improved stoves is an important government objective. Seen from this perspective, the performance of the improved stove program is a clear disappointment. Tbree factors can explain the low level of market penetration in the lowest income group: (a) the message on economic advantages of the improved stove either did not reach this group or was unconvincing; (b) the cost of the improved stove is too high (the Oapga metallique is used by 5% of this population; the Burkin mLxte is hardly used at all.); and (c) women at this income level simply cannot afford to participate in training seminars on constructing the Improved 3-ste stove. Even the modest cost of material used in construction of the Improved 3-stone stove could also have been an obstacle. Whether the low penetration of the Improved 3-stone stove is primarily due to the poor marketing or to the conditions imposed by the extreme poverty of the lowest income group is not known. There is, at the same time, little doubt that future successes will depend, to a large extent, on aggressive marketing techniques tailored to the specific characteristics of this target population and careful monitoring of consumer reactions. 3.32 Impact on informal sector producers. Another social objective of the MET strategy was the generation of income for a.rtisans. From this perspective, the program has also fallen well short of its goal. Present sales levels generate an annual income of about 1,500,000 CFAF, providing a monthly income of about 30,000 CFAF for between 4-5 artisans. Even a marked increase in sales will not permit important income gains to be achieved from this program. Rather policy emphasis should be on removing bottlenecks that inhibit the efficient functioning of the informal production network, on the grounds that this is the most cost effective means of production available. 3.33 E Overall household fuelwood demand in the four major cities would have been about 7% higher in 1987, without the introduction of improved stoves. Use of the Improved 3-stone stove saved about 20,000 tons of fue}wood and the Improved metal stove saved about 5,000 tons. 19/ If it is assumed that savings amounted to 3,000 tons in 1984, 6,000 tons in 1985, and 10,000 tons in 1986, total fuelwood savings in the urban campaigns amounted to 35,000 tons of fuelwood. While significant, it is not enough. In the absence of an energy saving campaign, urban population growth would have pushed 1987 fuelwood consumption 27% over 1984 consumption levels. Under the most optimistic scenario, the improved stove campaigns reduced this consumption to about 20% over 1984 consumption levels. 3.34 The cost-benefit ratio of the stove program. While its impact on the overall energy balance is modest, the improved stove program has a high economic rate of return. Based an an economic retail cost of fuelwood of 25 CFAF (see Chapter VI), the value of the fuel savings over the 1984-87 period can be estimated at 875 million CFAF (US$ 2.9 million). The total cost of the program, as shown in Table 3.6, is considerably lower. Compared to the cost of the traditional malpche stove, the purchase of the 25,000 improved metal stoves represented a consumer investment of 29 million CFAF (1,100 CFAF/stove) and 5 million CFAF to build the Improved 3- stone stove (100 CFAF/stove). The cost of Government's promotion campaigns during the same / Qoth figs ,vplesent a maximum. The fist figwe assumes that all the impowd 3-stone stoves are comectly built. If as is sugested in some MET sxveys, only half am conmcly buit, the savings may be about one-thind less. Secondly, the 60% udlizadio rate includes use of improved stoves forpots that am smalkr than the pot sizes for which the stoves ae designed. - 25 - period is conservatively estimated at 11 million CFAF (US$ 37,000). However, this figure does not include the general operating costs of the MET and the IBE associated with the campaigns nor the cost of stove components included in all donor-financed forestry projects. Nonetheless, although the addition of these costs will result in a figure sipificantly higher that identified in Table 3.6, the overall cost-benefit ratio is likely to remain favorable. Table 3.6: Benefits and Costs of the Urban Improved Stove Progrm, 1964-1987 BENEFITS FuetJlood Savings Tons Economic value 1984 3,000 75 mitt. FCFA 1985 6,000 150 Mitt. FCFA 1986 10,000 250 mitt. FCFA 1987 16,000 400 mitt. FCFA Total 35,000 875 mitt. FCFA COSTS Units Investmnt metal stoves 26,000 29 mitt. FCFA Inproved 3 stone st. 45,000 5 mitt. fCFA City camaigns 11 mitt. FCFA Indirect financing from forestry projects n.e. Associated general opera- ting costs of KEt and SBE n.a. Totat 71,000 45 mitt + Costs: 1984 to 1987 source: ESKAPII4ET 3.35 Future energy savings. If the dissemination strategy shifts towards one anchored in improved understanding of consumer motivations and requirements for household energy, it should be possible to increase the penetration rate of improved stoves to 80% of the households by the year 2000. This would reduce fuelwood consumption in the urban households from the trend- based 770,000 tons to 705,000 tons, assuming that the stoves would be used for 60% of cooking tasks. In the informal sector, a promotional campaign aimed at the dolotires, who are relatively few in number, should achieve a penetration rate of more than 15% within the first year; 50% the year thereafter; 80% at the end of the third year and a 90% penetration rate by the end of the fourth year. A 90% penetration rate for the Burkido stove in the year 2000 would reduce informal sector fuelwood consumption from the trend-based level of 115,000 tons to 95,000 tons. Total savings from a fine-tuned improved stove program could reduce total consumption by about 84,000 tons in the year 2000. -26- IV. PROMOTION OF SUBSTITUTE FUELS: LPG AND KEROSENE AND CONSUMPTION OF ELECTECI1 A. Egoi Cant=t 4.1 At current natural and urban growth rates, fuelwood demand in the early years of the next century wiLI be so high that further increases in supply will only be possible with reductions in the resource base. The longer term energy consumption scenario for Burkina Faso is, therefore, one in which LPG and kerosene will have to cover the total increase in urban household energy demand. Government's medium term objective up to the year 2000 must be to efficiently manage this on-going transition. To reach this objective Government must: (a) develop and market technically sound, socially acceptable and affordable kerosene and LPG equipment to the urban population, (b) increase the level of LPG use in LPG-consuming households, and (c) fmiliarize larger segments of the population with the attractions of these fuels. 4.2 This strategy faces formidable natural obstacles: (a) Since Burkina Faso has no indigenous hydrocarbon resources nor a refinery, all oil products are imported. Therefore, balance of pvents considerations call for moderate substitution policies; (b) Since Burkina Faso is landlocked, the cost of transport to the distnbution centers doubles the coastal cif-price of petroleum imports. As a result, the cost gf 1 kerosene for cooking is uncompetitive compared to fuewood; (c) Although the amortized cost of the stove equipment constitutes less than 10% of the annual cost of cooking (see Annex E), acquisition of stoves for the substitute fuels represents a substantial cash flow problem for the average urban consumer. 4.3 Broad penetration of substitute fuels is also constrained by institutional and psychological factors: (a) Fear of gas and well entrenched cooking habits that have established a preference for the use of fuelwood; (b) Non-availability on the market of LPG and kerosene stove equipment adapted to preparation of the local cuisine; (c) Inadequate communication and coordination between the three pnrncipal actors: SONABHY; IBE, and the oil companies (Shell, Total and Mobil). 4.4 Notwithstanding these formidable obstacles, the Government created the Cominmo for the Promotion of LPG in 1984. Its mandate was to actively promote LPG use and, to a minor - 27 - degree, kerosene, as substitute fuels. 2O/ In 1985, it established the ntioal oil company, SONABHY, and gave it the monopoly for the importation and storage of petroleum products. SONABHY assumed responsibility for (a) LPG imports, (b) the operation of bottle filling plants and (c) the administration of promotion campaigns. In addition, SONABHY was made responsible for definition of sector policy. The role of the private oil companies was reduced to that of wholesaler/retailer. The results of these efforts and options for expanding the inter-fuel substitution program are examined in the following paragraphs. Choice of Substitute Fuels: LPG. Kerosene and Electricity 4.5 As fuels in a substitution strategy, LPG and kerosene each have their relative strengths and weaknesses. A sound fuelwood substitution strategy should, therefore, promote both to widen the choice to the consumer. Worldwide, kerosene has played the role of the intermediate fuel in the fuel transition process, since its lower cost favors it as the "entry levelr fuel. On the other hand, the higher comfort and cleanliness of LPG make it the preferred fueL where high income reduces the significance of the cost and cash flow advantages of kerosene. Therefore, in countries where the population experiences rising incomes, LPG tends to replace kerosene as a cooking fuel. 4.6 In low income countries, kerosene has three attractions as a substitute fuel: (a) Because of the higher infrastructure costs of LPG, the import cost of kerosene on a calorific basis is only two-thirds of the import cost of LPG. 21/ In annual fuel costs, the economy saves 9,000 CFAF (US$ 30) each time a household switches to kerosene instead of LPG, assuming that both households use the fuel exclusively. 22/ (b) The front-end investment in a kerosene stove is about 6,000-7,000 CFAF lower than that for a low-cost LPG stove, because no investment in a bottle is needed. 23/ (c) Kerosene can be bought in any quantity, permitting the consumer to adjust the purchased quantity to his/her cash availability. This is important because about 80% of the consumers buy their fuel(wood) on a daily basis. 4.7 However, the convenience of daily kerosene purchases is costly to the consumer: the small-scale retail price is between 50 and 100% higher than the price at the service station. As a result, while the economic and the financial cost of kerosene at the pump is only 60% of the cost Q/ Because of these constraints, LPG conswnption was negligeable prior to 1984 and the pivate oil compawies serng the m4rket did little tofunher its consumption. The pnvate oil companies pwcased LPG in botts (Total, Mobil) and in tairoad tw,kers (the mired state-prnvwe company Buriana & Shell) fJm the Abidjan refeawy and sold it frina thAr gasoline stations. l/ The cost of inporting I ton of LPG consumption can be estimated at 1S9,000 CFAF, or 63% of the reall pice; the cost ofl ton of kerosene consumption at 97,OO CFAFor69% ofdiremtailpnce. thesefigSsam basedon the economic pice sttuur as presented in table 4.2 and the following impon ratios for LPG LPG.ex refineay ;I impor-tanspoat - 0.7; SONBIRY opertting costs = 06,; local tnmnspoat - 0.Q6 Impor ratios for kerosene: PNduct cost - 1; impoat- trnsport 0. 7; secwity storage 0.3, SONABHY opemting cost 0 S5. / Based on an annual LPG consumption of 175 kg W tBy how much the market will be expanded because of this paricutarfeatue is uncertain. The ESMAP/MET consumer cceptabilily tests showd that at the same 10, 000 CFAFpice kvel, consumers found the pice of the kerosene stoW unacceptable, wereas they found the pnce of the LPG stove acceptabkl Nonetheless, while casumen are willing to pay a pvmium for LPG use, the lower pnce will cenoainl be an important consideraton for dwi low-to-medium income consumer. - 28 - of LPG, their prices are about the same at the small-scale retail level. Thus, for the majority of consumers, kerosene will not be cheaper than LPG, unless ways are found to reduce the retail margin. As the high mark-up of the informal retailer reflects the high acquisition costs and the high transaction costs of small-scale retailing, attempts to enforce lower margins by price controls witl be in vain. Instead policymakers should aim to rationalize the structure of distribution, e.g. by using wholesale operated small trucks with tanks that fill kerosene directly into the barrels placed at the retailers. 4.8 Electricity is not used for cooking in Burkina Faso (nor in neighboring countries) and, therefore, does not influence the choice of fuels, with the exception of kerosene which is used for lighting. Compared on a useful calorie basis, present electricity tariffs are four times as high as fuelwood. LA/ Its use is, nonetheless, expanding rapidly. SONABEL's sale of electricity grew by 7.4% in 1986, and the number of clients by 13%, which raised the overall connection rate to 22% of urban households. If this trend continues, the percentage of connected households in the five largest cities will increase to 44% by the year 2000 and urban household demand will increase from 36 GWh to 170 GWh. B. Substitute Fuels: Infrastructure and Security of Suppy 4.9 One of SONABHY's first efforts in support of LPG was to establish a basic infrastructure network and to reduce the cost of imports. The security of supply for substitute fuels is adequate as sufficient sources are available in the region (see Annex IV). LPG can be acquired from the refineries at Abidjan (Cote d'Ivoire) and at Tema (Ghana), the international market or from refineries in the immediate neighboring countries landed at the port of Abidjan or at Lome. With a new refinery at Port Hartcourt, Nigeria can serve as a back-up source of supply. Kerosene can be obtained from (a) Abidjan (local production of the SIR refinery, as well as international imports), (b) international imports through STSL, the ocean oil products receiving terminal in Lome and finally, (c) the GHAIP refinery in Tema as a back-up source of supply. 4.10 With this range of choices, SONABHY follows a lowest-cost source of supply purchase policy, purchasing only marginal volumes as required from higher cost suppliers. Shortly after its establishment, SONABHY redirected LPG imports from the highest cost source of supply (the SIR refinery) to the lowest cost source of supply in region (the Tema refinery), thereby reducing the ex- refinery price by one-half. Kerosene is imported from the international market through the port of Abidjan. 4.11 SONABHY achieved further cost savings and improvements in the security of supply of LPG by investing in an automatic filling station in Bingo (30 km from Ouagadougou) and a bottling plant in Bobo-Dioulasso, both with a storage capacity of 100 tons. Filling capacity at the Bingo depot is 200 ' 12.5 kg bottles per hour, i.e., 20 MT per 8 hour day. Current consumption W Cospr kWh (3.6 MJ) in Ouagadougou in1987 was 87.8 CFAF. Assuing a 60% effideny for the eklic cooker, ths amounts to 40 CFAF/usefid Mt. I kg of fuelwood (16 Ml) costs 25 CFAF, or at a 14% tnzditial cooker efficency, 11 CFAF/usefid M1. - 29 - is 4-5 MT per day. A two-day shift can handle 10 times the current level of consumption, corresponding to 60,000 households switching full time from fuelwood to LPG. 4.12 ITansport capaciy is sufficient. Eight 20-ton LPG road tankers are owned by six private transport companies. This provides a monthly transport capacity of 320 tons, based on a conservative assumption of two rotations per month 2/; present demand calls for a transport capacity of no more than 140 tons. Road and rail tanker capacity for kerosene is adequate; currently no more than 20% of the combined capacity is being used. 2X/ The 1,850 e3 of kerosene at Bingo and 1,430 m3 at Bobo-Dioulasso are equivalent to 68 days of consumption, which is more than sufficient to meet both practical and strategic concerns. An expansion of the market of more than 10,000 m3 per year will be needed to justify additional tankage, corresponding to 50,000 households switching from fuelwood to kerosene for their cooking tasks. 4.13 In contrast to kerosene, increased consumption of LPG will require some added investments over the short term, totalling about 83 million CFAF (US$ 0.275 million): (a) promotion of 3 and 6 kg bottle stoves is a critical element of the Government's LPG promotion strategy and there is, at present, no specialized equipment for filling these bottles at the filling station. 27/ SONABHY will need to install a manual filling lie for 3 and 6 kg bottles with a capacity of 700 tons (US$ 25,000). (e) SONABHY is responsible for bottle maintenance and charges the oil companies for its services but has no bottle maintennce and painting facilities. The absence of a maintenance capacity poses a safety hazard. The funds required for a manual painting installation amounts to an estimated 15 million CFAF (US$50,000). (c) Once LPG demand doubles, additional storage capacity at Bingo is needed. Two bullets of 50 tons capacity will cost US$ 100,000 each. 4.14 The size of the bottle park in Burkina Faso is not known with certainty. SONABHY estimates the park at 18,000 12 kg bottles and 6,000 3 kg bottles, sufficient to cover the demand of between 9,600 and 16,000 households. 2&/ When demand increases, new bottles will have to be imported at a cost of 229 million CFAF (US$0.76 million) per 1000 tons growth in LPG demand. 22/ >/ With proper pianning, four rotations per month are possible. X/ The fact that tnikens continue to add to their fleets when most are only unning at 30% of their capacity makes it abundantly clear that the officially mandated transpon rates are far in excess of %hat they should be. An otder of magnitude estimate of the ecess road transport chaiw of all petroleum pmducs is US$ 4 millionlyear. ,L' Filling is done on a scale, a method which is imprecise and potentially dangers: The margin is +/- 400 grms. If the bottle is ovetrharged, it can be defonmed when exposed to ditet sunlight entailing a tik of explosion. B The npe of thumb for a smooth distribution is 25 bottes per customner fot bottomn lMe disvibution 1.5 bottles per customer. g/ Assumptions: Aveage annual rotation rate of 6 timesfor the 12 kg bottlis and of8for the 3 kg and the 6 kg bottles; and a 25/37.5/37.5 distribution of futum incteases in sales volune among the thee. For each 1000 ton gowth in LJG dmana4 Bwfna Faso needs to impon 3,500 12 kg bottles at a cost of 129 million CFAF (US$ 43,00) per 1000 bottles; 17,000 3 kg bottles at a cost of 67 million CEAF (US$ 220) per 1000 bottles; and 7,800 6 kg bottles at a cost of 9 million CFAF (11S$ 30,000) per 1000 bottles. - 30 - Stove Eguipment 4.15 LPG stoves. To make LPG more accessible to the lower/middle income consumer, the mixed private/Government oil company Burkina & Shell introduced 3 kg bottle/stoves (the "Faitou N'Bora') in 1985. 30/ The stove offered three advantages: (a) the initial cash outlay is about 60% of the cost of the most inexpensive 12 kg stove set, as depicted in Table 4.1; (b) the financial outlay for the LPG refills is about one-fourth; and (c) the stove is more portable, a consideration for the lower income household without a car. However, the wFaitou N'Bora" is ill suited for the lengthy cooking tasks of the Burkinabe diet, restricting its utility from the outset to marginal cooking tasks; data show that only 20% of the cooking tasks in LPG-consuming households are performed on LPG equipment. Li/ Table 4.1: Cost of Investment in 3 kg and 12 kg LPG Stoves In CFAF 12 kg LPG stove 3 kg LPG stove Bottle : 12,500 Bottte: 7,000 Regulator : 3,740 Burner : 3,415 Hose : 1,750 Support : 2,950 LPG : 4,125 LPG : 907 Appliance : 5,000 TOTAL 27,115 16,107 4.16 IBE subsequently developed a prototype for a domestically produced, highly energy efficient, low-cost LPG stove, adapted to local conditions; it can be connected to 3 kg, 6 kg or 12 kg bottles via a tube and a depressurizer. It is expected that the stove will be ready for production during 1990. The 1988 ESMAP/MET pilot consumer acceptability test revealed that the majority of the households found the stove appropriate (8 out of 10), fast (7) beautiful (6) and would like to buy it (8). Only a minority (2) considered the suggested price of 10,000 CFAF too high. L2/ IBE also tested a stove for 3 kg and 6 kg bottles developed as part of an upcoming EEC-financed regional LPG project. The stove is adapted to the requirements of the local cuisine and the support can be produced locally. The production price will be some 2000 CFAF higher than for the "Faitou N'Bora". JQ Some other less successful stoves were marketed as well. jj/ The same is true for the 12 kg bottle-based equipment. However, this equipment was targeted for a higher income population with a different and lighter cuisine, making it more suitable for their cooking needs. The lack of price competitiveness of LPG begs the question whether the structure of LPG consumption in LPG consuming households would have been different if a stove suitable for local cooking needs had been available on the market. It may well be that, under unchanged relative prices, the "Faitou N'Bora' is perfectly adequate for marginal LPG consumers. t/ However, it Is not clear whether the households were aware that the cost of the LPG bottle, 7,000 CFAFfor a 3 kg bottle had to be added. IBE expects that the cost of manufacturing the LPG stove will be somewhere between 5,000 and 6,000 CFAF in mass production. The cost of the depressurizer and the rubber hose, (about 3,500 CFAF) plus a retail margin must be added. * 31 - 4.17 Kerosene stoves. Kerosene stoves marketed in Burkina Faso are small Chinese wick models costing between 4,000-6,000 CFAF. They are light, but incompatible with the spheric pots used in Burkinabe cuisine and with lengthy cooking times. IBE, in the meantime, has developed a gravity fed kerosene burner which is simple in design, achieves 50% efficiency, can fulfill the demands of Bukinabe cuisine and is suitable for local production. The market prospects for this model, which probably will cost around 10,000 CFAF, should be promising. An ESMAP/MET consumer acceptability test of an imported kerosene model undertaken in December 1988 revealed a generally positive attitude towards this kerosene stove, although the price was considered to be too high. L/ C. Marketing LPG and Kerosene 4.18 SONABHY has not yet developed a successful marketing concept. The only campaign to promote LPG dates back to 1985, when the Government launched a private sector-based program with the oil companies, in particular, with Burkina & Shell. The strategy had four components: (a) removing distribution bottlenecks, by allowing new imports of bottles and raising the consignment charge of the LPG e ,ttles to parity with full purchase cost. MI (b) reducing the initial access cost to LPG by introducing new low cost, direct pressure stoves based on the 3 kg bottles and eliminating import taxes on this low-cost LPG equipment. L5/ (c) launching a promotion campaign including direct sales to employees of state institutions and private enterprises. (d) introducing a credit system for public sector employees, where repayments were made through deduction at source. &/ 4.19 With the creation of SONABHY, a Govermment.controlled system was put in place, which discouraged the private sector's interest in LPG promotion for both real and for psychological reasons. SONABHY overlooked the tradeoffs between efficiency objectives and competitive/ entrepreneurial objectives in LPG marketing: (a) SONABHY began importing and bottling LPG because it felt that the Burkinabe market was too small to justify the establishment of bottling I/ Of the 10 households, 8 found that the stove was fast; 6 that it was clean; 6 that the taste of the meal did not change compared to use of fueiwood; and 4 quoted the absence of smoke as an advantage. 6 were interested in acquiring the stove, but 7 out of 8 found that the proposed price of 10,000 CFAF was too high; and S found that the consumption of kerosene was too high. if/ The oil companies either sell the bottle to the consumer or charge the consumer a deposit (consignment charge). Usually, the deposit price is set at full cost recovery. The advantage of the full cost deposit policy compared to a sales policy is that, in many countries, the oil company can write off amortization of the bottles against taxabk income. To reduce the initial investment cost, the oil companies in Burkina Faso - as in many other African countries - initially tried to market the bottles at below cost. The result worked against the objective of LPG promotion. Because of higher consignment charges in neighboring countries, the bottlepark was depleted as the bottles crossed the border, creating supply bottlenecks. In 1985, the consignment charge was set atfullpurchase cost and the trend was reversed. With the opening oftthe bottling plant in Bingo, the rotation of the bottle park was also increased. With these two measures the supply bottleneck disappeared. J/ The Government also reduced taxes on LPG by 75% without, however, changing the retail price. J/ The credit system, administered by Burkina & Shell, helped to promote sales among public sector employees. However, its administration proved to be difficult and the oil company lost some 1.5 million CF/F on non-recovered loans. - 32 - plants operated by competing oil companies; and that if only one oil company operated a bottling plant, an undesired monopoly position was created. As a result, however, if a private company now engages in LPG promotion, the benefits of increased consumer demand are now split between the oil companies (revenues from retailing and wholesaling) and SONABHY (revenues from bottling and importing). (b) In order to provide an incentive to the oil companies to engage in promotion campaigns, the LPG price structure provided for a contribution to a fund for financmg promotion campaigns (3% of retail price). This fund is administered by SONABHY, and private oil companies have to apply for funding on the basis of prepared campaign proposals. The oil companies, however, consider this an unnecessary bureaucratic intervention in their functions. (c) In order to rationalize the operation of the bottling plant and the distribution system, SONABHY introduced a system of single-colored bottles. Customers could, as a consequence, turn in any bottle to any dealer. This policy, however, undercuts the trademark orientation of the promotion strategies of private oil companies, which is based on their own distinctively colored bottles and their specific equipment. 4.20 The limited market provided the oil companies with few incentives to develop a broad- based retail network. Burkina & Shell sells LPG in 3 kg bottles only at its gasoline stations (8 in the larger Ouagadougou area); apart from 3-4 stove retailers there are no other sales outlets for its "Faitou N'Bora" stove. Any strategy in favor of promoting LPG on a large scale must improve the availability of the fuel through an increase in retail outlets. 4.21 The same lack of coordination is apparent in IBE's stove development program, which has been undertaken without any consultation with the oil companies which would be responsible for marketing. 3/ A producer willing to manufacture the new domestic stove models has not been identified. Structure of LPG and Kerosene Prices 4.22 Successful LPG and kerosene promotion requires a price structure providing margins that are adequate to allow the agents to fulfill their market functions - no more and no less. A margin that is set too high goes against the goal of keeping the consumer price low and may lead to over-investment. A margin that is too low leads to under-investment and under-provision of services and of infrastructure. The size of the Government take should be determined by an evaluation of the trade-offs between (a) Government revenue requirements; (b) the attainment of energy policy objectives, and (c) equity considerations. 4.23 The uncertainties regarding the proper roles of the different LPG actors are reflected in the official LPG and kerosene price structures adopted after the creation of SONABHY in 1985. First, LPG and kerosene prices are uncompetitive with fuelwood. The price of imports is high and the Government take adds a third to the price. Second, the rationale of the price structure is weak. The official price structures of LPG and of kerosene are presented in Annex V and are summarized J7/ Burkina & Shell, the only company that has made a serious effort to market LPG stoves, still has a stock of 5000 "Faitou N'Bora "stoves left from its campaign. As long as this stock has not been drawn down, Burkina & Shell is not interested in promoting any new stove. - 33 - in Table 42 below; proposed revisions to the price structure are also presented and discussed in Chapter VII. h/ jTbtl J.2: Price Structures of LPG and Kerosene CFAF/i,etric ton for LPG per hectoliter for kerosene q/ LeQ Kerosene actual proposed actual proposed 1) Product ex Tema 75,000 75,000 (Lome) 78,000 60,000 2) Transport to Bingo 85,000 70,000 42,852 36,000 3) Goverrnment Take - Stabilization Fund 28,424 0 19,876 0 * hidden stab.in tine 1 (20,000) 0 18,000 0 - Tax take, line 7 (9) 12,874 0 11,800 0 - Promotion Fund 10,000 0 * Security Storage 20,000 0 9,228 tf 9,228 4) SONA8NY's opera- ting costs(l. 9-12+15) 27,058 70,000 18,240 Sf 18,240 5) Oistributors, Costs - Transp. Bingo-Ouaga 6,000 18,000 - Wholesalerss margin 31,640 23,500 12,000 11,100 6) Retailers' margin 34,000 15,500 7,400 Retai, price per kg (.) 330 272 160 113_ pj i ton of kerosene a 125' liters. W/ Lines 10,12 13,17,19,21 in Annex V. S/ Lines 14-16,18,20,22-25 in Amex V. 4.24 The market distortions in the LPG price structure are identified as follows: (a) The line for the cost of LPG ex-refinery should provide the Importer with incentives to seek the lowest cost source of supply. However, because of the price stabilization fund, there is no incentive for rational import behavior: if the purchase is higher than the fixed price, the fund will reimburse the difference; if the purchase price is lower, the difference will be paid into the fund. The fact that the price set for LPG purchased ex-Tema is about CFAF 20,000 higher than present market prices is felt more by the final consumer than by the importer. (b) The transport costs from the refimery to the bottling plant are overestimated. The margin was set at a time when Government wanted to strengthen its petroleum transportation capability. The unfortunate result of this too successful policy has been a fleet that is twice as large as needed, L9/ (c) The direct plus indirect Government take (including a price ex-Tema that is higher than the normal rate) is high, equivalent to the ex-refinery cost of the fuels. (d) The margins that are set to cover SONABHY's operating costs for the bottllng plant are too low. (e) The wholesalers' cost of transporting LPG bottles to and from Ouagadougou to the bottling plant is underestimated. (f) The retallers' margin is set at more than 10% of the retail price, which is higher than the normal 6% found in the West African M/ The lowest cost supply option is depicted for each fuel, i.e. for LPG the ex-Tema structure is analyzed and for kerosene the ex-Lome structure Is examined. ,O/ The trucks are now averaging less than 2 turnarounds per month rather than a normal 4. -34- region. This increases the consumer price more than necessary. More importantly, it goes against the objective of creating as many retail outlets as possible, because the high retail margin provides an incentive for the wholesaler to take over the retailing function. As a consequence, the oil companies have restricted the LPG retail points to their own service stations. D. LPG and Kerosene Use: Program Results 4.25 Na-tionag targe. The 1990 objective of the 1986-90 Five-Year Plan was to have 32,000 urban households using an LPG stove and to reach an annual consumption of LPG of 4,800 tons. Because of the absence of a marketing strategy, these objectives will not be reached. After a spurt in demand during 1986-87, demand has stagnated. 40/ LPG demand in Burkinabe households (expatriates excluded) is no higher than 600-700 tons, equivalent to a replacement of no more than 4,000 to 5,000 tons of fuelwood. 4.26 Household use of LPG and kerosene. About 9% of urban households, or 9,200 have an LPG stove. The average consumption of fuelwood in LPG-using households is 60% of the consumption in households using the traditional 3-stone stove. LPG households that use LPG as their primary fuel continue to rely on fuelwood for some 27% of their cooking tasks. Households that use LPG as their secondary fuel rely on fuelwood for over 80% of their fuel needs. Ownership of kerosene stoves, found in 4% of urban households, seems to have no, or little effect on fuelwood and charcoal consumption; this would suggest that the kerosene stoves on the market are poorly suited to local cooking requirements. 4.27 The captive market for LPG is made up of the richest 12% of urban households belonging to the two highest income categories (see Figure 4.1). LI/ About half of these households have acquired an LPG stove. At this income level, availability of LPG is the only concern. LPG use is not so much restricted because of its price but rather because the female head of the household will not entrust the use of the LPG stove to the servant who does the cooking. :L/ The doubling in volume was primarily due to: the real demand in 1982-85 was artificially suppressed because of the lack of availability of LPG; Government had launched a campaign convince civil servants to switch to gas and introduced a small low-cost stoves on the market; and the number of expatriates increased. LI Group I - <20,000 CFAF; Group 11 - 20-49,000 CFAF; Group III - 50-99,000 CFAF; Group Iv = 100,000- 149,000 CFAF; Group V - >150,000. - 35 - Fiure 4.1: Penetration of LPG Use by Income Group Urban Households in 1987 60 _ * 40- '30 -- r LL20 3 t 10 GroW I Group 1 Groupw Group M Group V HousdAokds by lscome Group % of al hcaehdds I% of dl LPCuws - U'Gpmetrotfon rate 4.28 The two poorest income categories fall largely outside the market for LPG. Hardly any LPG stoves are found in the poorest 22% of households with a monthly income of less than 20,000 CFAF. Among the 40% of households with monthly incomes of 20,000 to 49,000 CFAF, only 3% possess an LPG stove. Without a significant change in relative fuel prices, it is doubtful that a penetration rate higher than 10% can be reached, even if an active promotion campaign were undertaken. The prospect of increasing the use of substitute fuels within this group depends on the marketing of a suitable kerosene stove. The future marginal market for LPG must be found, therefore, within the middle income group, or the 27% of households with monthly incomes ranging between 50,000-90,000 CFAF. According to ESMAP/MET data, only 12% of these households own an LPG stove. 4.29 Penetration of low-cost stoves. As the promotion campaign for the 3 kg bottles was short-lived, the introduction of the low-cost LPG equipment did not have a significant impact on LPG consumption. Most of the LPG-consuming households (74%) use the 12 kg bottles only; some 9% use both the 12 kg and the 3 kg bottles and the remaining 17% use 3 kg bottles only. The relative shares of household LPG consumption are 85% for the 12 kg bottle and 15% for the 3 kg bottle. 4.30 Geographic penetration. The geographic concentration of the promotion campaign on Ouagadougou has created little demand in the other three major urban centers. The rate of market penetration by city is a function of average household income and the intensity of the campaign. The highest rate was found in Banfora, where 20% of the households owned an LPG stove in 1988. A number of the country's most important industries are found in this city, providing its residents with the highest per capita income. 42/ The next highest level of LPG penetration was found in a/ It is this factoriwherthan any Govemmnent policy orcoinpaign thlat accounts for the level ofLPG use: Shell & Bwkina supplies mostly the hotels, while households obtain their 3 kg 6 kg and 12 kg bottles deliverd from Abidjan. -36 - Ouapdougou, where 12% of the households own an LPG stove; LPG use in Ouahigouya is insignificant. Because of the relative size of the urban centers, however, Ouagadougou accounts for 76% of total LPG consumption, Bobo-Dioulasso and Banfora for about 11% each, and Koudougou and Ouahigouya for the remaining 2-3%. E. Inter-fuel Substitution: Medium and Loner Term Prspect 4.31 The year 200Q. It is probable that population growth will accelerate demand for LPG and kerosene during the 1990's. In the absence of an aggressive promotion campaign and changes in the relative price structures, it is, nonetheless, unlikely that demand would climb much beyond the current rate of 9% of urban households using LPG and 4% of urban households using kerosene. Given current trends, it can be expected that some 29,000 households would consume about 2,000 tons of LPG Al/ and some 13,000 households would consume about 550 tons of kerosene for cooking purposes. 4.32 The rate of ruelwood substitution of a well-implemented LPG promotion strategy along the lines proposed in Chapter VII will depend on b h the penetration rate of the stoves as weB as on the level of their use in LPG-using households. Presently, only 39% of LPG-consuming households use LPG as their primary fuel. This percentage will not change significantly by the year 2000, MA/ as LPG will remain more expensive than fuelwood, even after a reduction of the Government take to zero. Nor should it be necessary to achieve a higher rate of use, since sufficient fuelwood resources should be available to cover urban demand until that time. Through aggressive marketing, a substitution program based on LPG only, should be able to increase the penetration rate from 9% to about 28% of households in the five largest cities. This will increase household LPG consumption to 8,600 tons. 4.33 The introduction of an adequate kerosene stove supported by an aggressive promotion campaign could increase the fuel substitution market to 41% of urban households, 17% kerosene- consuming households and 24% LPG-consuming households. While in the year 2000, kerosene consumption for cooking will increase to 6,000 tons, LPG demand falls only to about 7,300 tons, as most of the gains of kerosene promotion are expected to occur in the lower income groups (see Figure 4.2). The assumptions for these scenarios in the year 2000 are set out in Annex VI. Q/ Toal demand including demand fmmn indusuy and semces wiJ likely be somewhere between 3,500-,OM) tons. / That moe suitable LPG stoves are intduced will induce a highernrte of stovepwchase. tt will not, however, by itselL ead to a higher average level of fitel consumption in the LPG households. Wile the new coners will have a more menw intensive smcure offood consumption, they will be poorer and will be vetypice sensitive in theirselection offuels. - 37 - fjijWr 4.2: LPG and Kerosene Use by Income Group 100i 80 50 _0 _____=_ 20 40 30 0 1 11 III IV V Groups of Income f,1 Base Case LPG Promotion 3 LPG & Kero Pr. 4.34 The year 2010. The real challenge to policymakers will come at the turn of the century or shortly thereafter. The urban population will continue to grow at a level twice that of the overall growth rate. However, increases in the supply of fuelwood to meet urban household energy demand will not be possible without reductions in the resource base. Presently, LPG consumers using LPG as their primary fuel continue to rely on fuelwood for about 27% of their cooking tasks. If this level remains unchanged, it will be possible, by the year 2010, to keep urban fuelwood demand at the year 2000 level, if two conditions are fulfilled: (a) the rate of penetration of substitute fuels must increase from 41% to 85% of total urban households and (b) aln LPG and kerosene-consuming households must use these modern fuels as their primary fuel. 4.35 Under this scenario, urban household energy consumption during the next decade must switch from one that is woodfuel-based to one that is LPG and kerosene-based. By the year 2010, about 650,000 urban households should be consuming LPG and kerosene as their primary cooking fuel. As shown in Figure 4.3 below, this will lead to an LPG consumption level of between 65,000 and 115,000 tons, depending on the level of kerosene penetration. - 38 - Figure 4.3: LPG Penetration Ratios and Consumption Levels needed for Sustainable Demand - -.-) 0 - 2 0~ ~ ~ ~ ~~~~~~~~~~~1 D _ r -T t0 r3C _ 5>-_ _ e---60 ~~~~~~~~r O c a~~~~~~~~~~~~~~~~~~~~ 40 :0* E 0 1 990 2000 20 10 YEAR LP0users % of hou.h 0 use as pr.fuel LP0consumption - Switching to Fuelwood Substitutes: Economic Implications 4.36 The calculation of the economic value of fuelwood substitution by LPG or by kerosene is set out in Annex VII. Based on a comparison of the direct economic costs of fuelwood and of LPG, the economic value per ton promoted LPG is negative: -77,000 CFAF (US$ 256) and ieads to an increase in imports of 141,000 CFAF (US$ 470). 4./ 4.37 It is unlikely that the environmental benefits of the standing forest cover are so high that their inclusion in the economic cost comparison will change this conclusion. Under these circumstances, the switch to modern fuels must be viewed as an unavoidable consequence of population pressure on limited natural resources. The fuelwood substitution strategy proposed in this report will lead to an annual import cost of LPG and of kerosene for cooking purposes in the year 2000 of about 1.7 billion CFAF (US$ 5.8 million); and in the year 2010 of 15.8 billion CFAF (US$ 53 million). Provided that Burkina Faso's overall imports grow at the same rate as the rate of population, the import bill for cooking fuels will amount to 0.7% of total imports in 2000, and to 4.5% in 2010. While it is recognized that the switch to substitute fuels will be expensive, the price of substitution, which is inevitable in light of current population trends, will be even higher if Government continues in its present course. Under any scenario, and given the country's development constraints the reality is that, early in the next century, energy for all will be more expensive. IV Hypothesis: economic retail cost perton of LPG of 252,000 CFAF and of fuelwood of 25,0OO CFAF; a substitution ratio of I ton of LPG - 7 tons of fuelwood. Inport content of LPG = 63%, offuelwood = 10%/. See also page 29, footnote 28 for calculation of foreign exchange comnponent. -39 - V. MANAGING HOUSEHOLD ENERGY DEND: THE IMPACT OF PRICING POLICIES A. Policy Contex 5.1 Obiectives. Pricing policy should promote a rational structure of energy demand and supply by providing both consumers and producers with the correct pricing signals. In Burkina Faso, the price signals to the consumers should discourage wasteful consumption of energy and reduce the demand for fuelwood to a sustainable level. 4/ The price signals to the produce should promote rational management of forestry resources thereby increasing rural employment and provide incentives to the producers and distributors of LPG and kerosene to invest in marketing campaigns and expand the distribution system. In addition, pricing policy should consider income distribution concerns and the need to generate Government revenues. 5.2 Policy features and issues. The Government administers prices for a range of mass consumption products, including fuels. The Ministry of Commerce sets petroleum product prices. The Ministries of Commerce and of Environment and Tourism are jointly responsible for setting wood and charcoal prices. The present price structure was adopted in 1985, when the Government acted simultaneously on three different price fronts to support its energy policy objectives: it raised the official price of fuelwood; it lowered the price of scrap metal for improved woodstoves; and it revised the LPG price structure. 5.3 How these reforms affect the structure of relative prices and thus the demand side, the rate of fuelwood substitution and the demand for improved stoves, will be addressed below. The impact on Government revenue is also examined. How pricing policy impacts on the supply side was discussed in the analysis of the price structure for LPG and for kerosene in Chapter IV. Chapter VI will discuss these impacts as they relate to fuelwood. B. Pricing Policy: Issues and Options 5.4 Pricing policy options are limited by two obstacles: the poverty of the overwhelming majority of the population and the country's landlocked position: (a) The basic needs aspect of fuelwood and the high burden of fuel expenditures on low income households constrain the potential scope for energy saving pricing policies. The impact on fuelwood demand of a substantial increase in fuelwood prices will be modest, unless there is widespread fuel switching. Even if fuel switching is achieved, l/ Lewl of accessible nawuld producion plus fuelwood hanwted frmm the cleanng of land. - 40 - the brunt of the policy will be on the urban poor who cannot afford an LPG stove and would have difficulty purchasing a kerosene stove. (b) The long distances from ports of entry and foreign refineries to Ouagadougou double the FOB price of LPG and kerosene. Few possibilities exist for savings in the transport and distribution chain. Therefore, the market price of substitute fuels is and will remain high. Government Revenues 5.5 EueLwood. The official price of fuelwood was set at a retail price equivalent of 18 CFAF/kg in 1985 and the supply system to the cities was reorganized. While implementation fell short of fixed targets, prices did, indeed, rise: from about 15 to about 25 CFAF/kg in Ouagadougou and to 20 CFAF/kg in Bobo-Dioulasso and to about 15 CFAF/kg in Koudougou and Ouahigouya. Government fees-cutting permits of 300 CFAF/sttre plus transport permits (300 CFAF per haul) amount to about 1.5 CFAF/kg, or a tax take of between 6% (Ouagadougou) and 10% (other cities). These fees are enforced on a minor but increasing share of total supplies: In 1985,31 million CFAF (US$ 104,000) was collected; in 1986, 122 million CFAF (US$ 407,000) was collected; and in 1988, cost recovery reached 167 million CFAF (US$ 557,000), or about half of total commercial supplies. 42/ 5.6 Charcoal There is no official price structure for charcoal, because the level of consumption is relatively low, and because a large portion of the supply is recovered from the combustion of fuelwood during the preparation of the traditional dolo beer. The retail price is highest in Ouagadougou at 89 CFAF/kg; 48 CFAF/kg in Bobo-Dioulasso, 38 CFAF/kg in Ouahigouya and 28 CFAF/kg in Koudougou. 5.7 LPG. The price of LPG has remained unchanged at 330 CFAF/kg since 1981, although a new price structure was adopted in 1985 that reduced the import tax from 36,000 CFAF/per ton to 9,000 CFAF/per ton. In 1985, total Government revenues (taxes plus the contributions to the different state-administered funds - promotion fund, security stock, price stabilization fund) was 71,000 CFAF/per ton, or 22% of the total. The fall in the purchase price at the Ghana refinery added 23,000 CFAF/per ton to the Government take in 1985, bringing the total percentage up to 32%. With a 1987 consumption of 1,476 tons, total Government revenues (SONABHY surplus included) amounted to 107 million CFAF (US$ 357,000). Although consumption stagnated in 1988, the fall in import prices increased Government revenues to 156 million CFAF (US$ 520,000). In 1989, rehabilitation work at the Tema refinery in Ghana forced SONABHY to once more increase its purchases from the high-cost source of supply, the SIR refinery in Abidjan (140,000 CFAF per ton, in 1990 negociated downward to 100,000 CFAF per ton in 1990). !3/ l10o enforement of the tales should have conuibuted around 340 million CFAF&, 275 million from cutting pemits and 65 million from tspon pennits. - 41 - 5.8 Kerosene. The official price at the pump is 160 CFAF/liter. Consumers, however, pay 1.25-1.5 times more for the small quantities they buy at the retail outlets. How much of this markup represents real economic costs in small-scale retailing and how much reflects monopoly pricing is t;Tficult to judge. All that can be said is that the same situation is found in some of the neighboring countries. Government revenues in 1985 (taxes plus contributions to the price stabilization fund) amounted to 34,000 CFAF/m3 or 21% of the official retail price. The 1985 fall in import prices added 17,000 CFAF/m3 increasing Government's share to a total of 32% of the official retail price. With a 1987 consumption of 14,000 m3, total Government revenues amounted to 595 million CFAF (US$ 2 million). 5.9 Total 1987 Government revenues from LPG, kerosene, and fuelwood in 1987 amounted to 869 million CFAF (US$ 2.9 million), representing 1.1% of total Government revenues--a small, but not insignificant contribution. It is evident from Table 5.1 that taxation policy has not been used as an instrument to promote fuelwood substitution, but rather to capture revenue from modern fuels. These fuels are taxed 14 to 19 times higher per toe than fuelwood (or 6 to 8 times higher based on a "useful energy content). Tabte 5.1: Taxation of Household Fuels, 1987 Reverue Comuarcial Tax in mill CFAF Toe Consuption CFAF/toe in ton Fuet wood - actual recovery 167 249,000 t g/ 95,000 1,490 - 700X recovery 340 249,000 t g/ 95,000 3,571 LPG 107 1,476 t 1,565 68,000 Kerosene 595 14,000 m3 11,400 52,000 ^/ Level of total consuption minus 15X for self-collection. Source: ESNAP/MET 1987 5.10 Development in real prices. Time series data on fuelwood prices do not exist. Nonetheless, indications are that real prices doubled during the 1970s. During the 1980's, consumer prices were stable, 48/ and nominal fuelwood prices did not change until Government's intervention in 1985. Since then, the nominal price of fuelwood has dropped slightly, but so have average consumer prices, leaving the real price unchanged. The nominal price of kerosene and of LPG has remained unchanged since 1981, implying a 15% fail in real prices up to 1987/88. Relative Fuel Prices 5.11 The relative price of charcoal to fuelwood differs between the cities, being 3.2 times as high on a kilo basis in Ouagadougou, and 2.0 in Koudougou; on a MJ-basis, the corresponding relative prices are 1.8 and 1.1. Charcoal is used for marginal purposes only, but if the low relative 0/ The indexforAfncan conswnerppnces in Ouagadougou rosefromn 100 in 1981/82 to 125 in 1985 and dropped to 117 in 1987. - 42 - price in Koudougou becomes a permanent phenomenon, charcoal will start to replace fuelwood in this city. 5.12 The comparative costs of cooking, based on current fuel prices in Ouagadougou are summarized in Figure 5.1. 42/ The figure shows that, although Government's pricing policy has moved in the right direction, the price difference between fuelwood and its substitutes is too large to encourage large scale substitution: Figure 5.1: Relative Economic and Finamcial Costs of Cooking By Type of Fuel and Stove. Ratio "3-stoveal", Ougladougou 1987 COMPARATIVE COSTS OF COOKING, RATIOS Fl,rwrlal a left, Io4mlc a right w, 2' 1.9 1.4 0 1.2- ! I .1 I 0.2 0.1 Sourc : ESNAPMET 1987 (a) Kerosene is the cheapest fuel at the official price of 160 CFAF/liter. When used with the energy-efficient IBE prototype stove, it is about 1.24 times as expensive as the cost of using the traditional 3-stone stove (including the stove amortization costs). At the actual price of 240 CFAF/liter, charged to the small domestic consumer, kerosene is 1.54 times as expensive. If the IBE kerosene stove meets consumer acceptance, consumer prices of kerosene will have to be reduced in order for kerosene too make inroads as a substitute fuel. ~g/ rhe pjedctflanced cooking and boling tests at the IBE to elish te specific ener& conswmption of a Bu*inabe hosehold using stoms available in the counny. Based on the asmion of an eneiB efficiency of 14% for the tmonal 3.stcne model, the user efficiencies for the other stows have been cakulated based on actualpefonmance. -43 - (b) LPG is also too expensive compared to fuelwood to gain an important share of the urban cooking fuel market: depending on the stove model, the fuel cost is 1.8 (IBE prototype model) to 2.3 times (Shell's 'Faitou N'Bora") as high as the cost of cooking on the traditional 3-stone stove. Even though LPG provides more comfort, this premium is too high to attract the mass consumer. 5.13 The market share of the substitute fuels will also depend on the success of the Improved wood stoves. If they attain widespread use and are correctly utilized, the economic attractiveness to the consumer of the substitute fuels will be further undermined: The present cost of using LPG or kerosene is about three times as high as the cost of using fuelwood in the improved woodstoves for sale on the Burkinabe market. 5.14 Due to high production costs, electricity tariffs all but exclude electricity as a substitute fuel for cooking. 50/ Assuming a 60% efficiency for an electric cooker, electricity in Ouagadougou is three to four times as high as the cost of fuelwood used in a traditional 3-stone stove-even without taking into account the amortized cost of the stove. Policy Trade-Offs 5.15 To promote fuelwood substitution, Government will have to change relative prices by (a) lowering the official price of LPG and of kerosene or (b) increasing the price of fuelwood, or (c) doing a combination of both. The decision will largely depend on a political choice among the issues of (i) fuelwood substitution, (ii) equity, and (iii) revenue generation. 5i. A policy of increased taxes on fuelwood will increase Government revenues and impact heavily on the lowest income groups, whilst simultaneously providing further economic opportunities for some high- income groups: (a) Low-income households spend between 15 and 25% of their budget on fuelwood. The financial ability of the poorest households to acquire improved woodstoves as a means to mitigate the impact of higher fuelwood prices is limited. (b) If the tax rates can only be enforced on a minor share of total fuelwood supplies, the higher fuelwood prices will increase the profits of the well-to-do transporters/ wholesalers who control the market. 5.16 A reduction in the taxes on kerosene would benefit the poorer sections of the population, as kerosene is widely used as a fuel for lighting purposes. But because kerosene is a mass consumption good, and because a tax reduction on kerosene cannot be applied in a discriminatory manner, it would lead to a relative high loss of Government revenue; it would also M/ SONABEL's nates for "lifeline tariffs* vanyffm 50.9 CFAFAkg% in Ouagadougou to 6.8 CFAF in Fada N'Goumna The nomal tawifffor lighting the relevant tanifffor cooking costs, varies between 764 CFAF in Fada N'Gouma and 90.7CFAFin Debougou and is 878 CFAFin OuagadougoL. The quoted tariffs a takenfnsm the avemgc sales pnces listed in SON4BEL, Rappon d'Acdvite 196 a/ The fowth issue concerns the minimization of 7ree tider" effects i.e. any subsidy pgram that cannot be restricted to the "uncamentalioradditional consumers, witl be afreegift to those conswners who woudd have also acquired the good in the absence of the subsidy. - 44 - subsidize a large number of consumers who would have purchased the kerosene even without a reduction in taxes. 5.17 This is not the case for LPG because LPG is used by a small percentage of the population and because the tax decrease can be applied in a discriminatoty manner. LPG is conditioned in different sized containers (bulk; 55 kg; 35 kg; 12 kg; 6 kg; and 3 kg cylinders), which are linked to different types of equipment. This limits the cross price elasticity of demand between the consumer categories. Therefore, as long as the price difference compared to the 12 kg cylinders does not become too large, a tax decrease can be limited to LPG conditioned in 3 and 6 kg bottles that are the most economic means of entry to low and middle income consumers. Since taxation takes place at the point of delivery from the bottling plants, there are no administrative problems associated with this policy. Compared to an "across-the-board" tax decrease, the wealth benefit accruing to the upper income groups and the loss in Government revenue will be lower. C. The Impact of Economic Pricing on Inter-Fuel Substitution 5.18 By eliminating the direct and indirect tax take on LPG and kerosene and by adjusting the official price structure to reduce margins that induce inefficient operations, the official price of kerosene can be reduced by 47 CFAF per liter and the price of LPG by 58 CFAF per kg. Although the differences in the absolute level of prices are reduced, the ranking of fuels by their relative price structure is not altered by the introduction of economic prices: (a) applying the official retailers' margin, use of a kerosene stove is 14% cheaper than use of the 3-stone stove when bought directly from the gas station. However, assuming that the additional mark-up in small retail shops will remain unchanged, kerosene-based cooking would be 37% more expensive than that of the 3-stone stove. (b) LPG cooking on the low-cost LPG stove, the "Faitou N'Bora", would still be about 80% more expensive than the use of the 3-stone stove, and using the more efficient IBE prototype, about 47% more expensive. 5.19 These results suggest that changing present policy to one reflecting actual economic prices would leave the demand of the majority of urban consumers unaffected. The substitution impact would be limited to the middle-to-high income consumers, (about 25% of the urban consumers). In order to gradually introduce LPG and kerosene as a cooking fuel to a wider segment of the population during the 1990s, Government will have no choice but to adjust prices accordingly. Nonetheless, given the high cost of modern fuels in a landlocked country like Burkina Faso, this policy alone is insufficient to promote a sustainable level of fuelwood demand. 5.20 Introducing subsidies for the substitute fuels or raising taxes or. fuelwood are not viable alternatives over the medium term: (a) With limited financial resources, subsidizing consumption will deprive the economy of vitally needed resources for investment. - 45 . (b) The possibility of financing the subsidy by an increase in the taxation of gasoline does not change the substance of the argument, for the tax increase could have been used for other purposes as well. (c) The argument that the cost of the subsidy should be compared to investments that the Government saves in tree planting to replace the trees that are cut down has more validity to it. However, as analyzed in Chapter VI, the resource base, in principle, is sufficient to cover the demand up to the year 2000 in a sustainable manner, as long as forest management techniques are introduced; wood cut from agricultural land clearing is available for household energy consumption purposes; and changes in land tenure are put in place. (d) Raising fuelwood prices beyond its economic price is clearly not an option since its impact on the poorer population would be too severe. 5.21 Over the longer term, i.e. shortly after the year 2000, consumption of substitute fuels must increase sufficiently to cap the overall demand for fuelwood. A scenario for a pricing framework which is sustainable over the long term is described in Annex VIII. At that time, Government will have to decide on the desired policy mix of increasing fuelwood taxes and introducing subsidies for LPG consumption. Until that time, the large-scale introduction of sustainable forestry management practices is key to improving household welfare and preserving the natural resource base. - 46 - VI. SUPPLY MANAGEMENT OF FUELWOOD A. The Importance of Forestry Management 6.1 The previous chapters examined the demand for household energy in Burkina Faso, the impact of projected national and urban growth trends on that demand and the performance of Government's household energy strategy. A scenario was then outlined to manage the transition from biomass to modern fuels through demand-side interventions. This alternative, which combines wood conservation measures with fuel substitution possibilities, would aim to reach a penetration rate of 80% for improved woodfuel stoves and penetration rates of 24% and 17% respectively for LGP and kerosene stoves in the urban sector. 6.2 Figure 6.1 depicts this alternative and shows that the implementation of successful demand-side interventions could reduce the projected urban fuelwood consumption (about 900,000 tons) by about 145,000 tons in the year 2000. Nonetheless, the forestry sector must still increase the supply of fuelwood to the urban areas by over 313,000 tons of fuelwood, or 70% of the projected increase in fuelwood demand, to accomodate a near tripling of demand between 1989- 2000. Whereas demand-side interventions dominated the previous Plan period, and will continue to be important, future policy must clearly accelerate and strengthen the introduction and use of modern forestry management practices to secure this supply. Figure 6.1: Inpect of Demand Interventions 6.1: l.nact of Demand Interventions !tban t0mnod 1907 to 2000 09, 0.S 0.3 0.4 Y6A 10 PftetifttI dumnd 4. lapVovd stoive Pr. LPG p~rorom & LPG & kerUSU pr. -47- 6.3 The magnitude of this requirement demands a well coordinated natural forestry management strategy at the central level and conservation and protection measures on the part of the rural population. Some pilot experiments at natural forest management are in the very early stages in Burkina Faso and are beginning to show promising results. The sources of fuelwood supply for Burkina Faso's urban areas, the potential for this resource to satisfy the demand requirements, and the options for managing supply over the medium and longer term to meet this demand need to be evaluated for the major urban centers so that these natural forest management experiments can be replicated on a large scale. The Urban Supply System 6.4 Economic activity. In 1987, the supply of fuelwood to urban areas provided a turnover of about 5 billion CFAF (US$ 17 million), not including the value of self-collection. Total employment across the fuel chain was about 8,000 man-years, of which some 2,600 in woodharvesting; 1,500 in transport and wholesaling activities and the remaining 4,000 in the fuelwood retailing. Because of the prevalence of part-time work, the total number of persons working in the sector is likely to be between 20,000-30,000. 6.5 The increase in fuelwood demand by the year 2000 and the introduction of forestry management plans will increase employment to some 25,000 man-years; depending on the pressure on fuelwood prices, annual turnover will be around 20 billion CF/F (US$ 68 million). Charcoal is still a marginal fuel in urban households, and most of the supply is recovered from fuelwood used to produce dolo beer and in household use. But the experience elsewhere in the Sahel suggests that demand for charcoal can rapidly increase, if left uncontrolled. 6.6 Existing sources of supply. The predominant source of fuelwood for the urban centers is the natural woodlands; most comes from unmanaged forests, from natural wood regeneration on fallow land and from degraded, but naturally wooded, non-agricultural lands. L2/ Each of the four major urban centers gets most of its fuelwood within a 100 km radius of the city. About half of the wood comes from distances within a 50 kan radius and is transported by foot, bicycle, donkey cart and pick-up. Because of the manner in which this wood supply enters the city, the quantities and sources of origin are more difficult to pinpoint. It is, nonetheless, apparent that this wood is of smaller dimension than wood coming from longer distances and is cut green. The remainder comes from areas beyond 50 km and arrives by truck and pickup. With the exception of Bobo-Dioulasso, the bulk of this material has been coming from dead trees that succumbed to the 1982-1984 drought. As the source of drought-killed trees nears exhaustion, the wood is increasingly coming from land clearing practices that are largely uncontrolled. As a consequence, a considerable portion of the felled wood that could be used for fuelwood is probably destroyed. 6.7 Land clearing is not allowed on public domain lands "domaine classe - national forests, parks, reserves and ranches. It is, however, accelerating, fueled by the lack of knowledge of forestry boundaries; the lack of enforcement, the search for farm land; and internal migratory W/ About 8%e of Ouagadougou's supply comes from fovst plantations. - 48 - patterns that bring squatters from degraded lands in search of new opportunities. 5/ The principal cause of forest cover loss has been and remains land clearing for agriculture, concentrated, in particular, on lands previously uninhabitable due to river blindness. Mapping work carried out unde, the ESMAP activity indicates that most of the national forests and reserves have been partially cleared for agriculture by illeg-I squatters. How much of the cleared wood is used as fuelwood for the rural and urban areas and how much is burned is unknown. The potential annual supply of fuelwood from this source is about 288,000 tons (total urban fuelwood demand= 330,000 tons) and will increase to 350,000 tons by the year 2000. A4/ Given current and projected growth trends and their impact on the supply of woodfuels, an essential element of any supply strategy must be to secure access to as much of this fuelwood as possible. 6.8 Many of the forests and other national lands have never had their limits marked on the ground with permanent boundary markers. Local villages and even provincial foresters often do not know where the forest boundaries are located. The status of some public domain lands within the onchocerciasis-freed areas being developed for agriculture is particularly unclear. For example, part of the White Volta National Forest was cleared and agricultural villages created, but the MET has no record of this forest being partially or completely declassified for development. 6.9 Fuelwood production options. The creation of new industrial scale fuelwood plantations has nearly ceased due to high costs and low productivity. Under present free access conditions of fuel harvesting, the net-back value of fuelwood (consumer price minus costs of retailing, wholesaling, transport) is far below the stumpage fee of approximately 15 CFAF/kg, that is needed to sustain this operation. The other tested option, the "village woodland' formula, which re.ies on shared work for shared benefits on common land, has proven to be an elusive goal. In those areas where trees are needed, there is usually not enough real common land to achieve adequate impact. 6.10 The predominance of natural forests for present fuelwood supply indicates a potential for increasing fuelwood production through natural forest management: virtually all the local trees and shrub species coppice readily when cut live. Even modest gains in sustainable productivity could have significant impact on fuelwood supply. The principles of a viable natural forest management system are being tested in an ongoing FAO-assisted project at the Nazinon National Forest in the woodfuel supply zone of Ouagadougou. Since its start-up in 1988, some 20 for2st management cooperatives with about 500 members have been directly involved in the management of 22,000 hectares. Ten other groups have been created and are cutting dead wood on domaine protege (state) lands in another area; there are plans to bring a large contiguous block of 20,000 ha. of natural forest land under management in this area. 2/ The return to the fanner of growing agncultuml crops on cleared forest lands is 4 to 8 times as high as the tetwn on naturd forest management per ha. W The present area under cultivation is about Z,000,00 hectames. If it is assumed that annual land cleaing equals the growth of the nuro population, cultivated area should increase by 1.8%o peryear, or36,00hectares. Assuming that the cleared forest area has a density of 12.5 m3 per ha. of which 80% is usable forfuelwood, and assuming a weight density of 0.8, aflgwe of 288,000 tons is obtained. - 49 - 6.11 Preset Government Stratey The Government has a three-pronged approach to achieving a sustainable supply of fuelwood over the long run. The strategy aims firti to reduce the uncontrolled exploitation of forest resources through a system of licensing and registration of woodcutters, transporter/wholesalers and retailers; they are being organized in cooperatives and economic interest groups. Fees for fuelwood cutting and for transport permits were increased and a system of control put in place, which markedly increased revenues from this activity. A new price structure was adopted that increased the producer price to a level which, in principle, provides for management of this resource. 6.12 The second element of Government's strategy, parts of which are under implementation, provides for the testing of alternative forestry management techniques and for the mapping of existing and potential areas of fuelwood supply within each urban supply zone; the latter activity was carried out under the ESMAP study. The rinal element of Government's strategy, yet to be implemented, is the designation of specific zones in which to form woodland management cooperatives and the launching of large scale forestry management operations. 6.13 Present legislation. Government has recognized the need to control the exploitation of its forest resources and has instituted an array of regulations and mechanisms to address this issue. It is clear, however, from the plethora of decrees and circulars covering the fuelwood trade that a number of anomalies exist, e.g. apparent overlap or unclear allocation of authority and responsibility of ministries and other public agencies at national and iocal levels; unclear rights and obligations of the main actors in the fuelwood trade, e.g. transporters and woodcutters. In the absence of clear operational directives, these laws are frequently implemented and/or interpreted in various ways by local authorities, creating confusion and further complicating a rapidly evolving situation. Tenure arrangements for access to and preservation of biomass resources at the level of rural households and communities are not now adequately addressed but figure prominently in the approaches being designed under the Village Land Management Program. Annex IX provides a list of the relevant legal texts. Pricing 6.14 The MET and the Ministry of Comme,ce are jointly responsible for setting and monitoring the fuelwood price structure. The price is set and controlled at the producer, wholesale and retail levels. The official price structure is defined per st0re at the producer and wholesale levels and per 'fagot' at the retail level. The two measures are not well-defined. In principle, the st6re is defined as 1 m3 stacked. L/ The price structure assumes that one stWre is split into 36 bundles (fagots). In prac.ice, the size of the fagot varies with the market price for wood, whereas the price of 120 CFAF per fagot is respected. The ESMAP/MET market weighings in 1987 showed one fagot to average 4.5 kgs in Ouagadougou and 8 kgs in the other three cities; i.e., a stare of 250 kgs was split into 58 and 36 fagots respectively. a/ In Buwina Faso, a sthwisgenermtly one thid to one half less. With a density of 0.8, 1 solidm' should weigh 800 kgs. Howew, it is nomnally assumed in Buwina Faso that I ster weighs 250 kgs. Assuming that 1 sWre is equal to 1 m, has a detsily of 0.8 and weighs 250 kgs, we amve at a conversion factorfor stacked m3/solid mi3 of 0.31. However, Creliments in other countnes have shown conversion factors of 0.31 for a headload of branchwood, and of 0.5 (for crooked wood) to 0.65 for stacked wood. - 50 - 6.15 In 1985, the Government adopted a nationwide system of uniform prices. It did not take into account the geographic differences in the productivity of native woodlands; the existence and location of forest stands; the state of the transportation infrastructure; demand variations due to regional populations; or adjustments for quality differences. :6/ Table 6.1 shows that the Government was able to enforce the producer price, but not the wholesale and retail margins in the Ouagadougou area. This was because the reorganization of the fuelwood supply network favoured the attempted increase in the producer price, while making compliance with the wholesale and retail prices more difficult: (a) the bargaining position of woodcutter cooperatives is stronger than the position of individual producers; (b) restrictions on woodfuel transport strengthened the monopoly position of the transporters and enhanced their ability to defend their economic interests. Table 6.1: Official and Actual Structure of Fuelwood Prices (CFAF/st*re) Ouagadougou Bobo-Dioulasso Ouahigouya offic. actual I offic. actual offic. actual Cutting Permit 300 300 300 300 300 300 Prozucers margin 1,310 810 1,250 n.a. 500 500 Transp/Wholes.m. 2,065 4,015 950 n.a. 1,100 n.a. Retaflers margin 645 1,7M 645 n.a. 300 n.a. Retail price W 4,320 6,900 3,145 3,600 2,100 3,500 pj ESPAP, ISE, 4ET survey '986. i Calculated at official retail price for ane fagot a 120 and 1 stere = 1 3 = 36 fagots. 6.16 The system of uniform prices was subsequently dropped when monitoring revealed substantial deviations from posted prices: for example, the high level of demand in Ouagadougou combined with restrictions transport resulted in a market price that is about 40% higher than Koudougou, although their supply zones overlap. Similarly, while the Ouahigouya supply zone is poorly endowed with wood resources, the high level of self-collection keeps an effective lid on the price. Price revisions reduced the margins and costs for the transporters/wholesalers in Ouahigouya, Bobo-Dioulasso id Banfora. The producer price was reduced to 800 CFAF/stere in Ouahigouya, reflecting the official view that consumers were either unwilling or unable to afford correspondingly higher retail prices. The logic of this view is doubtful; actual market prices in Ouahigouya are some 60% higher than the newly posted price. 6.17 Government's pricing and taxation policy should: (a) promote natural forest management practices; (b) encourage the use of wood from land clearing for fuelwood and discourage the supply of fuelwood from non-managed sources; (c) raise producer prices from managed fuelwood resources to their full long-run economic cost; (d) differentiate cutting permits by applying a lower rate to 'managed' fuelwood and including the forestry service's administrative X/ Officiall,t die ce cannot be inreased when thefuetwood is of above quality because of its species composition. Nor can it be lowred when the quality is lower. Secondly, the producer who sells only lage dimension wood receives the same pice officially as the one who splits his wood into morr usable size. -51 - costs in that rate and applying a higher rate to "unmanaged" fuelwood equal to its full stumpage value (i.e. the replacement cost); and (e) encourage transporters to seek new sources of supply through a system of variable rates for transport permits. 6.18 Table 6.2 below sets out a price structure that moves the existing price structure towards one that accounts for the cost of forest management. The original price structure defined in 1985 is shown for comparison. The cost of labor is based on the noted productivity of 2 steres of fuelwood per day and the official minimum wage rate of 990 CFAF. L2/ The cost of natural forest management is as yet unknown. In the FAO-assisted project, the contribution to the management fund has been set at 500 CFAF per st&e. The cost of 200 CFAF for the cooperative's administrative expenses and 700 CFAF for the wood splitting are based on actual experience. Adding together the cutting permit fee (which is likely to correspond to the forestry service's cost of administration and technical support to the cooperatives), the contribution to the management and administrative funds, the stumpage fee amounts to 1000 CFAF/st0re or 4 CFAF/kg J/ Table 6.2: Proposed Fuelwood Price Structure (CFAF/st6re) Proposed 1985-st. Cutting permit 300 300 Manement fund 500 n.e. Adninistration 200 n.e. Labor 500 990 Entrepreneurial margin (30X) 150 322 Produer price 1,6C0 1,612 Transport permit 20 A/ 300 Transport costs 1,500 749 Handling 345 345 Salaries 53 53 Taxes 6 6 Margin (20X of above costs) 715 613 dholesale price 4,299 3,678 Splitting 700 600 Taxes 2 2 Margin (20X of above costs) 1.000 856 Retail price 6,001 5,136 / Based on 15 steres capacity 7-ton truck. E/ This is higher than the normally found nual wage of 600 CFAF/day, but reflects the fact that forest management demands new skills development and training of the workers. @/ Strictly spealang this is the economic cost of 'sustainable sfppfAy rather than the marginal economic cost offuelwood pioduced by forest management. The above calculation attributes the total production to the impact of forest management. This is not cormt as natwua regeneration would have prduced an important amount of fuelwood by itself. Thus, in principle, the investment in forest management should have been related to the increase in production only in order to amve at the real economic cost of fuelwood produced by foest management. Howevr, in pwcidee, what we need to know is at what economic price sustained producdon becomes viable. Because of the peculiar chactesc of natuwi forest management, a stumpage value of 4 CFAFIg is sufficient to bring the production to the market The ^true and higher stumpage value is of more theoretical interest. - 52 - 6.19 Transport costs of transport (fixed costs and operating costs) should reflect the marginal cost of supply. D2/ It has been calculated for a second-hand truck which picks up fuelwood in a supply zone 100 kms from the demand center on a combination of paved road, unpaved road and improved dirt road. The transport permit of 300 CFAF is per trip, not per capacity; a truck pays no more than a cart. As such, the permit covers the Government's administration costs and also more heavily taxes fuelwood coming from within a 50 km radius; this wood is generally transported by headload, cart and pick-up. 6.20 In the revised price structure, the retail margin is slightly higher than the original estimate. NQ/ Assuming that 1 stWre = 250 kgs, this retail price gives an economic cost of supply of about 24 CFAF/kg, 6i/ somewhat lower than the 28 CFAF/kg market price in Ouagadougou, but higher than the market price in the other four cities. It can be concluded, therefore, that the consumer faces the correct market signals in Ouagadougou, the main urban fuelwood market. B. A Strategv for Natural Forest Management 6.21 Objectives. The goal of any forest management operation is the sustainable provision of goods and services from the forest area. In the case of Burkina Faso, these goods and services include (depending on the specific site being managed): fuelwood, poles, rustic timber for the household, forage, medicines, gums, game meat and other minor but important products for the rural population. Even modest gains in sustainable productivity could have significant impact on fuelwood supply. Preliminary data emerging from very limited trials suggest that the costs may be as little as US$200/hectare to restore and rehabilitate the productive potential of even fairly degraded forest areas. These costs would be less if fuelwood harvesting were carried out so as to foster natural regeneration of these stands. C2/ 6.22 Assessing available and potential supply. Given projected urban growth rates together with the meager fuelwood savings generated by the national improved stove program, the ESMAP activity attached high priority to identifying existing and potential supply of fuelwood within the supply zones of the four major centers and developing strategies to preserve and protect this natural resource. The only major forest inventory work for Burkina Faso was carried out between 1980-1983, based on 1975-1976 satellite imagery now badly out of date. A rapid reconnaissance survey carried out by ESMAP/MET on transects southeast, south and southwest a/ The ongmnal pnce snture used an avemge cost estimate to calculate the trw,sponers'ma,gin on the assumption that tmnsporte,s would eam sometimes more and sometimes less than real costs. This is not realistic; if the transpon cost is higher than the marin, the tIrwspotter will either foce the producer to accept a lower price or refuse to go there. 0/ The marijn in the onginal 1985 cost study is higher than the margin finally adopted in the price st:ncture: the fist was based on I stre - 42 fagots, the second on I stew = 36 fagots. W/ The 24 CFAF, being based on supply fromn managed land provides the lower boundary for the economic cost of supply; the upper boundwy is 35 CFAF based on a stumpage value of plantation fuelwood of 15 CFAF. 1/ This must be compard to the relatively high cost of large.scale reforestation, for ewmple, the approximately 350,0O) CFAF/ha (about US$ 1,00)) e.penenced at the Gonse area west of Ouagadougou - 53 - of Ouagadougou together with comparisons with earlier inventory data corroborated the dramatic changes that were taking place in forest cover and land use. A full-scale forest inventory was considered beyond the scope of the ESMAP activity both for cost reasons as well as for the need to rapidly introduce forest management practices and mobilize popular participation for their implementation. 6.23 An inventory, with estimates of the production potential of each city's fuelwood supply zone was considered essential to determine priority areas for initiating forestry management activities. Interpretation of satellite imagery combined with selected ground-truthing was used to prepare new cover maps for the supply zones. Three forest cover maps (Ouagadougou/Koudougou, Bobo-Dioulasso and Ouahigouya) were produced from early dry season 1987 satellite imagery at a scale of 1:500,000. Ouagadougou and Koudougou were mapped together, because their supply zones overlap. The present wood supply zone for each city was mapped together with potential supply areas that may be developed within the next 5-10 years. The extension of the mapping into potential supply zones gave priority to areas with significant natural forest cover remaining, to areas accessible by major roads, and to areas classified as national forests (where tenure arrangements are clear). 6.24 A classification scheme, based on the relative importance of the areal coverage of fields and recent fallows versus the natural vegetation tpes (natural forests and old fallows) was developed and is set out in Table 6.3. Using estimates of standing volume, average annual growth and average fue}wood density, annual productivity estimates for the three major cover types for the 4 main urban centers were made and are shown in Table 6.4. 6.25 Selection criteria for forestry management zones. To make choices regarding areas for developing natural resource management schemes, criteria were established to rank areas within the supply zones of the urban centers. Those priority zones can and must be updated and improved as additional information and experience in natural forest management is acquired. The selection criteria are set out below by decteasing importance: (a) minimization of transport costs; (b) priority to national forests; (c) priority to larger blocks of uninhabited woodlands; (d) priority to the management of forests on soils/sites that are ill suited to agriculture; (e) priority to forests in good condition. 6.26 Based on the mapping exercise and using the selection criteria listed above, ESMAP/MET identified priority areas for the introduction of natural forest management capable of yielding about 630,000 tons of sustainable fuelwood production in the year 2000, as shown in Table 6.4. About 41% of the supply will come from the management of natural forests (N), 39% - 54 - from low density agricultural land with at least 50% of the land iY natural forest (F), and the remaining 20% from medium density agricultural land with 10 to 50% covered by natural forest and old fallows (M). 6.27 In principle, this amount of fuelwood shouid be sufficient to cover urban demand by the year 2000. However, some qualifications have to be added. First, this level of production is based on the level of production in the individual priority sites within the supply zones that will be reached at the end of a 15 year management cycle. That is, if all the priority projects were implemented today, which, obviously, they will not, the production is reached in the year 2005. Second, it assumes that the fuelwood coming from land clearing can, indeed, be recovered. Current practices suggest that this assumption is dubious. Urban Fuelwood Supplv Strategies 6.28 Annex X provides a detailed description of the urban supply strategies for Ouagadougou/Koudougou, Bobo-Dioulasso, and Ouahigouya and outlines priority areas for natural forest management within each zone. Hypothetical productivity scenarios for priority zones are also included. The salient features of these strategies are described below. 6.29 Ouagadougou/Koudougou. ESMAP/MET estimated total fuelwood consumption in 1987 at 151,710 tons. Based on current per capita rates of fuelwood consumption (0.622 kg/per person/per day, Tables 6.5 and 6.6 projects fuelwood demand for Ouagadougou and Koudougou through the year 2000. The tables illustrate fuelwood use scenarios under three population growth rates. The importance of reliable estimates of the base population and the annual growth estimates are underscored by these figures. From the year 1990 to 2000, fuelwood demand in Ouagadougou, grows by 93% under the low growth scenario, but if the high estimates are used, demand jumps by more than 171%. 6.30 Estimates indicate that the Ouagadougou-Koudougou supply zone has about 5.8 million tons of standing volume in commercial fuelwood species. This growing stock is on 1.5 million hectares of N, F, and M class lands. Annual growth, or the amount of wood potentially available for fuelwood removal on these lands, is estimated for the year 2000 at 514,000 tons, an amount barely sufficient to satisfy the two cities' needs under average population growth assumptions for that year. Land clearing by that date, however, is liable to have eliminated significant amounts of the remaining natural forest land. Although there is still some potential for Ouagadougou to continue to expand its supply zone beyond the area mapped, there are clear limits to such extensions (e.g. the Ghana border). 6.31 Bobo-Dioulasso. ESMAP/MET estimated total fuelwood consumption in 1989 at 100,000 tons. Based on current per capita rates of fuelwood consumption (0.654 kg/per person/per day), Table 6.7 projects fuelwood demand for Bobo-Dioulasso through the year 2000. Using current population growth estimates, fuelwood consumption is expected to double to 212,000; using a lower estimate, fuelwood consumption would increase by about 126%. 6.32 Estimated annual productivity of priority areas within the Bobo-Dioulasso fuelwood supply zone is approximately 130,000 tons. Supplying fuelwood to the urban population through tbe year 2000 is not as critical a situation as is found in the other cities because of higher rainfall, - 55 - lower population densities and a generally larger area of accessible natural forests. At the same time, however, internal migration patterns are increasingly shifting towards the southwestern par of the country, making population projections and fuelwood demand estimates problematic. 633 One constraint to accessing wood resources in forests at distances ranging from 35- 60 km from Bobo-Dioulasso is the poor condition of the road network Unless they are improved, wood will continue to come from the most accessible sites, at least for the foreseeable future placing most of the pressure for fuelwood on old fallow and degraded woodlands closest to the city limits. Total production in year 15 from projects implemented on the five priority zones in the supply zone would yield about 121,000 tons of fuelwood. 6.34 Ouahigoya. Ouahigouya is the smaller of the four major cities with a 1990 population estimated at 47,700. Fuelwood and charcoal consumption is estimated to be about 13,800 tons per annum. Per capita consumption is the highest of the four cities at 0.895 kg/day due to the large amount of self-collection, low fuelwood prices and the poor access to alternative fuels. As shown in Table 6.8, projected demand to the year 2000 is estimated to grow by a little more than 50% to about 24,000 tons. Because there are no national forests within the supply zone, transport distance and road conditions are the key factors used to identify priority management zones. However, management of any or all of the areas will only become viable if the low producer price is increased to more accurately reflect the real costs associated with fuelwood production. 635 The annual production potential of the priority areas within the Ouahigouya fuelwood supply zone is about 38,000 tons and indicates that, with the introduction of forestry management, there is enough fuelwood to satisfy the city's demand through the year 2000. Using three different population growth rates, Table 6.8 illustrates fuelwood use scenarios if actual growth slows are grows more rapidly. The importance of reliable estimates of the base population and the annual growth estimates are once again underscored by these figures. From the year 1990 to 2000, fuelwood demand grows by 93% under the low growth scenario, but if the high estimates are used, demand jumps by more than 171% in the ten-year period. 6.36 Introducing natural forest management. Any strategy for the introduction of large- scale forestry management in Burcina Faso is necessarily a long term proposition. Both the agro- ecological and socio-economic complexities by region and by ethnic affiiation defy easy remedies. What is, nonetheless, clear is that the full participation of the rural population is a fundamental ingredient to any success in this domain. This means that rural communities must assume increasing responsibility and authority for the protection of forestry resources and that government ministries and agencies must facilitate this process. Expansion of the pilot operations under the ongoing Village Land Management Program into a national strategy is critical. The first step in furthering introduction of an urban household energy strategy will be a pilot phase in which forestry management operations, on a relatively modest scale, are launched and carefully monitored. The FAO-assisted pilot project at Nazinon is an example. 637 While the classification system gives priority to N, F, and M cover types, there is evidence to suggest that an important opportunity exists to manage the fuelwood resources on old fallow and degraded lands found within short distances (less than 50 km) of all the urban centers. Fuelwood coming from these areas already contributes substantially to overall supply. While little is known about the growth, biomass production, and management of these degraded areas, their - 56 - proximity to to the city centers provides an economic incentive for managing any wood product surpluses. Furthermore, the growth of this market could be expected to encourage villages to manage their land resources for the long term. 6.38 Local participation will be the keystone of the village forestry management plan. The management plan would have two main objectives: (a) sustained yield management of the forested area to ensure a continuous supply of fuelwood and (b) multiple use management to ensure that the management zone continues to provide a wide range of products while protecting the soil, providing wildlife habitat, and preserving biodiversity. A ten thousand hectare block of contiguous natural forest and woodlands would be identified and a woodlands management cooperative consisting of members from an adjacent village (or villages) would be organized for management in the designated area under the authority of the Forest Service. 6.39 A basic agreement between the cooperative and the Government would be established for each cooperative setting out the rights and responsibilities of the contracting parties. The management plan for the forestry zone in question would constitute the working guidelines for management which would be prepared by the Forest Service in close collaboration with the local cooperative (see Annex XI for indicative elements of a management plan). The management plan would, in particular, identify the specific compartment (s) of the zone that would be harvested each year as well as compartments or portions thereof that might require more intensive efforts to protect vital regeneration. Monitoring arrangements would be identified and agreed upon with the cooperative and Forest Service to assess performance. 6.40 When adjacent forest areas are put under management, random fuelwood collection will have to be discouraged. However, the local demand for self-collected wood can continue to be satisfied through two sources: (a) because of market preferences for specific dimensions and species, significant amounts of wood are generated during harvesting that will not be marketed in the urban centers and are left in the forest; and (b) forested zones within the fuelwood collection radius around a village that will not be brought under management. At the same time, the local population's access to the forest for hunting, grazing, medicines, plants, etc. must continue to be respected to prevent disruption of rural lifestyles. The Economics of Natural Forest Management 6.41 The economics of forest management depend, on the one hand, on the increase in productivity above the natural rate of regeneration that is achieved by the introduction of management methods and, on the other hand, on the decrease in the natural rate of regeneration that could occur, if a forest area is cut and left to itself without protection. These two rates are unknown as obviously, they depend on individual circumstances. If it is assumed that natural forest management increases productivity by 20% above the natural rate of regrowth, and that indiscriminate cutting down of forest cover decreases it by 20%, then it can be shown that the increase in production over a 30 year period by forest management along the lines produced in this report (15 year rotation period; only half of each plot cut per year during the first 15 years) will correspond to an IRR of about 5% (see Annex XI). This rate does not take into account an estimate of the additional benefits arising from the multiple uses of the forest by the local populations, those of increased environmental protection and conservation, nor, on the other hand, the manpower costs of forest management. . 57 - Tsble 6.3: Nain Cover Type Ctlassification Used with the Urben Fuslwood Supply Zon Maps Classif.cation Explanatioh N Natural forest without evidence of agricultural fields (smll, isolated fields 3 1.5 ha may go undetected). These lands are assu2sd to contain 100l of the standing volume estiwated by other sources. F Low density agriculture with at least 50 percent of the land in natural forest or old fallows; or, loss than 50 percent of the map unit le covered by fields and recent fallows. Only 66X of the standing voltua estimated for natural forests is ossued to exist on these lands. N matural forest and old fallows cover 10 to 50 percent of the land; wadiu density agriculture predominates, 50 to 90 percent of the map unit to covered by fields or recent fatlows. Only 33X of the standing voltu estimates for natural forests is assumed to exist for these lands. O Less than 10 percent in natural forests, 0 to 90 percent in fields, recent fallow, and degraded forest lands. i Agrfculture land with over 50 percent in older fallow or degraded forest land. Only 255 of the standing voltue estimates for natural forests are assunad to be applicable for this class. (Class doesn't exist on the Ouahigouya map.) C, J-C Degraded forest ndVor old fallow over ironstone that have a low potential for agriculture. Less than 50 percent of area is under cultivation. only 25X of the standing voltue estimates for natural forests are assu2d to be applicable to this class. P Industrial-scale forest plantations. Plantations are assumed to contain standing voltues equivalent to 100X of the estimates for natural forests. N, Co Natural forests on very steep hills that could be an lapediment to natural forest management. (Only on the Bobo-Dioulasso map). 3 Seasonally flooded stream deltas, vegetatfon type unknown. (Occurs only on the Ouahigouya map.) Adopted from Grosenick and Hagen (1988b) Te#Ag4: Estimated AfwuL PraduCtivity of Natural Forests of Setected Priority Areas of Fuslwood Suppty Zones Urban Class N Class F Cless N Total Are Na W3+ TonsO Na* M3+ Tons# 11a* N3 Tons tom 439400 257489 205991 310100 200602 160482 110000 72414 57931 424404 Koudomwu 26500 17596 14077 10600 7038 5630 34000 20689 16711 36416 Bobo-oloulasso 35100 38189 30551 76900 83667 66934 5000 41344 33075 130560 OuahigauyWa AMA500 -.J 45700 11699 93 110100 _2814 2549 37745 Totale 484500 320570 256456 643300 303006 242405 259100 162033 130266 629127 * Area estiwates from forest coer maps + Volumes caLculated using average growth estioates from Clement (1982) en 8 Assuses: 0.j tons/, (DeSokor 1982) Go Addftional assumptions: . 00S of the growth is In coamrcolt fueLwood speces (Grosenick et Hagen 1988b) Priority areas wero identified for notural forest t within each city's fualtood supply zone using criteria discussed In Chapter 2. The figures provided In this tabLo only ref tct fueLvood growth in those selected aress. Rural fustwood demand will be met from other sources. Tsble 6.5: Population Projections and Household Woodfuel Demand Estimates for Ouagadougou 1985 1990 1995 2000 Growth rate Base Low Median High Low Median High Low Median Hiah Population estimate 442837 615319 709312 729550 854981 1136136 1201M9 1187990 1819800 1980059 Fuetwood demand Weight equivalent (tons) 118317 164401 189514 194921 228434 303553 321122 317407 486214 529032 Votuae equivalent (a?) 147896 205501 236892 243652 285542 379441 401403 396759 607768 661290 Assumptions: Arnual nocutation srowth rate Woodfuel consumDtion Low 6,80X Kadiogo Province (INSO, 1988) Lood 0,622 kg/p/day (Nostert 1989) Nedian 9,88X (Mostert, 1989) CharcoaL 0,022 kg/p/day (Mostert 1989) High 10,50% "estimate" SAMPLE CALCULATION: Estimated fuelwood dbmand (w. equivalent) In 1995 using the tow poputation growth rate Pooutation estimated for 1995 (442.837) x (1,068)**10 a 854.,981 Fuetwood demrnd Wood t0622 kg/prs./day x 854.981 personsl/1000 kg/ton a 532 tons/day CharcoaL tO,022 kg/pers./day x 5, .0 kg char/kg wood x 854.,981 pers./lOOOkg/ton a 94 tons/day Total, wood/day 6 626 tons/day 625,846 tons/day x 365 days/year Total, wood/day - 220.434 tons/year Tbte 6,6: Population Projections and Nousehotd Woodfuet Estimates for Koudougou _1985 - 1990 199S 2000 Growth rate Bas Low Median Minh Low Median High LOWj Median High Populatfon estimted 51556 55267 60996 65800 59246 72165 83979 63511 85378 107181 Fuetwood deand Weight equivslent (tons) 1S261 163 18056 19478 17538 21362 24859 18a0 25273 31727 Voltui equivalent (u) 19077 20450 22570 24347 21922 26702 31074 23500 31592 39659 Assuptiors: nnaL gooultion arowth rate loodfuel cgongution Low 1,40X Boukiewde Province (1USD, 1688) Wood 0.641 kglperson/day (Nostert 1989) Medin 3,42 (Nostert, 1989) Chercoal 0,034 kg/persnday (Nostert 1989) High 5,00X estimatew SAIPLE CALCULATION: Estimated fuslwood d_and (to. equivalent) in 1990 using the high population growth rate Paoulation estimted for 1990 (51.556) x (1,050)05 a 65.800 fgt12m00 deww Wood (0,641 kg/pers./day x 65.600 persord/1000 kg/tonne 42 tona/day Choreoal (O,034 kg/pers./day x 5,0 kg char/kg wood x 65.800 pers./1OOOk/ton * I Ior2/d& Total, wood/day a 53 ton/day 53,364 tons/day x 365 days/year Total, woodtyear a 19.478 tons/year tsble 6.7: Population Projections and Household Woodfuel Demand Estimates for Bobo-Dioulasso t9851990 1995 2000 Growth rate Base Low Median Niah Low Median High Low Median High Population estimate 231162 281264 326191 347588 342176 460286 522653 416310 649506 785891 Fuelwood demand Weight equivalent (tons) 75430 91773 106439 113422 111656 150196 170547 135846 211940 256444 Volume equivalent (b) 94288 114716 133049 141777 1369 187745 213184 169808 264925 320555 Assuiptions: Anrual notation arowth rate Wloodfuel conswtion Low 4,00X Nouet Province (INSD, 1988) Wood 0,654 kg/p./day (Nmostert 1989) Median 7,13X (140etert, 1989) Charcoal 0,048 kg/p./day (tostert 1989) High 8.50X aestimaten SAMPLE CALCULATIONI: Estimated fuelwood dwma (w. equivalent) in 1995 usfBg the medien population growth rate Potulation estimte for 1995 (231.162) x (1,0713)**10 = 420.286 Fustwl demad beod 10,654 kg/pers./day x 460.286 persons)/1000 kg/ton * 301 tons/dy Charcoal 10,048 kg/pers./day x 5,0 kg char/kg wood x 460.286 pers./OOOkqIton n 110 to/day Total, wood/day 4 411 tons/day 411,495 tons/day x 365 days/year Total, wood/year * 150.196 ton/year TIbte 6.8: Population Projectifns and Household Woodfuel Demand Estimates for Oushigouye 1985 1990 1995 2000 Growth rate Base Low M4edian High Low Wedian Hiah Low Median Higth Population estimate 38795 40372 47679 49513 42013 58596 63193 43720 72014 80652 Fuelwood demwnd Weigh: equivalent (tons) 12673 13188 15575 16175 13725 19142 20644 14282 23525 26347 VoLume equivalent Cm?) 15842 16486 19469 20218 17156 23927 25804 17853 29406 32934 Assumptins: Annual Rooiu.aton arowth rate Wood fiber conswmtion Low 0,80% Yateng3 Province (INSD, 1988) Wood 0,81 kg/peraoniday (Mostert 1989) Median 4,21% (Wostert, 1989) Charcoal 0,017 kg/person/day (Wostert 1989) High 5,00% estimatea SANPLE CALCULATION: estimated fuetwood demand in the year 2000 using the Low population growth rate Population estimate for the year 2000 (38.795) x (1,008)**15 a 43.720 Fuetwood d"23""n Wood CO,810 kg/pers./day x 43.720 personsJ1000 kg/ton n 35 tons/day Charcoal 10,017 kg/pwrs./day x 5,0 kg charkg wood x 43.720 pers.]/1OOOk/ton 4 tansldav Total, wood/day a 39 tons/day 39,130 tons/day x 365 days/year Totat, wood/year a 14.202 tons/year [14.282 tons/yeerl/0,8 tons/mI or * 17.853 i/yeer - 63 - VII. AN URBAN HOUSEHOLD ENERGY STRATEGY: REINFORCING GOVERNMENT POLICY A. Introduction 7.1 The previous chapters reviewed government policy and performance in household energy and set out the context for medium and longer term household energy planning and policy definition. These sections concluded that policy options to manage the energy transition are constrained by social, natural resource, geographical and foreign exchange conditions. Against this background, Chapter VII proposes an urban household energy strategy and makes recommendations on follow-up activities for implementation. 7.2 The preceding analysis underscored the limited number of policy options available to Government. Reducing fuelwood demand through increasing taxes would have only a modest impact in the absence of massive fuel switching. The prospects for substitution are limited because: (a) the landed cost of LPG and kerosene is twice as high as the foreign ex-refmery price, undermining the price competitiveness of the petroleum fuels; and (b) given the country's small export base, foreign exchange considerations require that government keep fuel imports as low as possible. The urban poor already spend as much as 25% of household income on energy and would face considerable hardship in purchasing an LPG or a kerosene stove. 7.3 A fully successful improved fuelwood stove program can reduce fuelwood consumption by about 20-30%. The national improved stove program has not achieved these savings. Increasing fuelwood supply through commercial reforestation schemes is not financially viable. Because of the rather low annual productivity of the forests -about 0.8 m3 per hectare-the cost of fuelwood production exceeds realistic price expectations. On-going village-lot woodfuel schemes have had organizational and implementation difficulties and, in any case, do not provide a realistic source of fuelwood for the urban market; in fi3ht of population trends, any future surpluses would be absorbed in the rural context. 7.4 Government's household energy policy, promoting energy savings, switching to alternative fuels, and rationalizing the fuelwood supply network, has had the necessary components to mitigate the impact of these obstacles if not eliminate them. However, the mix of components and institutional arrangements has not been adequate to meet the program's objectives, especially in light of the rapidly increasing urban population and the projected impact of this growth on the natural resource base. The high level of direct Government involvement that produced results at the outset of the improved stove program has been inadequate to sustain the program over the longer term. It has also failed to mobiLe sufficient households to contain the depletion of the country's natural resource base. On the supply side, fuelwood management operations are few in number and at a very early stage of implementation. Inter-fuel substitution activities have been hampered by the high cost of moderns fuels, the inadequacy of stove equipment, problems in distribution and the widespread skepticism about their safety and convenience. A Revitalized Government Strategy 7.5 The strategy presented in this chapter addresses the accelerating demand for household energy in the urban areas and proposes a series of measures to bring this demand in line with long term sustainable supply. It aims to address the bottlenecks identified in on-going inproved stove programs and recommends the changes rSquired to accommodate the increasing demand for household energy in Burkina's four major cities. Whereas past Government efforts have emphasized demand management through umproved stove dissemination, the strategy set out in this .64- report recognizes the need to strengthen this effort but also the importance of managing the country's forest resources and proposes, as a consequence, a shift in emphasis. The major share of the increase in fuelwood demand between now and the year 2000 will have to be met from the existing tree stocks. Current unsustainable fuelwood harvesting practices will need to cease and rural populations provided with the right incentive environment to assure the management of these resources over the longer termi. Norntheless, even with forestry management plans, LPG and kerosene will have to meet the household energy requirements of the total increment in urban growth beginning in the early years of the next century. Therefore, efforts must be undertaken now to effectively plan for and manage the transition to modern fuels, which is well underway in the urban centers. 7.6 Objectives. The immediate objectives of a revitalized program would be to (a) slow the urban household and informal sector demand for woodfuels by promoting fuelwood savings and fuel switching where technically, financially and socially feasible; and (b) increase the productivity of the natural woodlands through the introduction of forestry management plans. This program would aim to reach the following targets for the year 2000: (a) 80% or 220,000 urban households to use improved biomass stoves to cover most of their cooking needs; (b) 100% of the informal sector beer brewers to use the Burkido stove; (c) 41% or 115,000 urban households to use LPG and kerosene stoves to cover their auxiliary cooking needs; and (d) at least 50% of commercial fuelwood to be produced by woodland management cooperatives. 7.7 To reach these objectives, Government must fine-tune present policies--changing their emphasis and expanding their scope. This fine-tuning will entail: (a) a shift from a rural energy savings program to one that is concentrated on measures to restrain the urban demand for fuelwood; (b) an increased reliance on private-sector based initiatives (c) a more comprehensive use of pricing policy as an instrument to achieve program objectives; and (d) capacity building measures. ; .d Shifting to an urban-based strategy. While Burkina Faso is predominantly rural and will remain so over the longer term, it is the rapidly growing urban sector that poses a far more serious problem for the management of forestry resources. Because the rural population tends to meet its fuelwood requirements from dead wood, the impact on the environment is less important than that due to clearfelling for agricultural development. In contrast, between now and the year 2000, the intensive and concentrated urban fuelwood demand will contribute directly to environmental degradation, since a rising share of this natural resource is mined exclusively for the urban market. Because these mined areas are not used for agricultural purposes and are unprotected from wind and rain, soil degradation is most severe and the regenerative capacity of the tree cover is lost. Action to restrain urban demand must, therefore, receive clear priority and need to be directed, in the short term, to Ouagadougou on the central plateau, where the majority of urban residents live. 7.9 Government will need to contirnue to promote energy savings programs for the rural population. It will, nonetheless, be necessary that these efforts be reformulated and resources more efficiently deployed than has been the case in the past. For example, the development of a rural ener& campaign built around energy savings measures in traditional cooking practices could be - 65 - more cost-efficient than the current emphasis on the dissemination of rural stoves, which has met with limited success. Under any circumstances, an evaluation of rural efforts will be a sine qua non to the definition of a new rural program. 7.10 RElDng on the private sector. Notwithstanding the important strides made by Government in introducing improved stoves and in underscoring the importance of energy-saving behavior, the national improved stove program is stagnating. Around 35% of urban households use the improved stove for about 60% of their cooking and heating tasks. Present sales are not enough to keep pace with the growing population nor to meet replacement needs of worn out stoves. Furthermore, in the absence of sufficient demand and in response to Government intervention throughout the production-marketing chain, the informal sector has largely abandoned stove production. To ensure that the long term objectives of the strategy are reached, it is essential to re-orient Government's role and increase the participation of the private sector. Relying more on NGOs active in stove dissemination and forestry management activities is one way to encourage this shift to the private sector. Promoting autonomous stove production and distribution networks is another. On the supply side, the increased reliance on the rural population to manage forestry resources is a relatively recent initiative and will require close monitoring to ensure an optimal institutional framework. 7.11 Usingopriingolicv more aggressively. Government has a policy of administered prices for fuels. This policy has three main features: (a) the price is set for each actor in the production- consumption chain; (b) subsidies are avoided and (c) the price stabilization fund is used to even out the fluctuations in the price of imported oil products. As this report has shown, Government has been largely successful in ensuring that energy consumers are provided with correct relative economic prices. Government policy has been less successful, however, in providing the suppliers with the correct signals. Actions need to be taken to correct these anomalies. 7.12 In addition, the role of the price stabilization fund needs to be reviewed. Its role should be to protect the consumer against short-term price volatilities, while allowing for long-term changes in prices. There is a risk that the existence of the fund postpones changes in the consumer price beyond what is reasonab:e from the short-term price stabilization objectives. To avoid this, Government policy should be to revise the import price element in the price structure on an annual basis in accordance with international price expectations. 7.13 Strengthening institutional capacitv. This report has highlighted the institutional fragmentation in the energy sector. The array of sectoral ministries and state agencies involved in woodfuel and petroleum product consumption and in forestry management tend to operate with a minimum of coordination. This situation has particularly serious consequences for the availability of adequate fuelwood to meet urban household energy requirements. For example, and with few exceptions, the opening of land areas for agricultural development has largely occurred without due consideration for recovering the felled wood for energy. At current urban growth rates, this situation cannot be allowed to continue. Similarly, research and development of LPG and kerosene stove equipment has been conducted without adequate consultation with the oil companies who will be called upon to market these products. 7.14 The institutional framework that provides the umbrella for household energy activities is largely the same one that will be called upon to implement the National Environmental Action Plan currently under preparation. The issue of institutional coordination, as it affects all agencies involved in the conservation of natural resources, has been raised in the context of the on-going preparation of the National Environment Action Plan. Because activities in household energy are closely linked with those of other institutions that aim to preserve and protect Burkina's natural 066 - resource base, questions of institutional strengthening and training should be addressed as an integral part of the Plan and not as a separate exercise. The strategy proposed in this report will, nonetheless, address a limited set of capacity building issues that are deemed essential to the fine- tuning process. It is recommended that the Inter-Ministerial Committee concerned with the National Environmental Action Plan consider the overall issue of institutional strengthening to define and implement suitable household energy strategies and investment packages over the longer term. 7.15 Strategy Elements. To implement the urban household energy strategy, a series of short-term measures and longer term investments are recommended for follow-up action. These measures and investments should be implemented as a complement to on-going household energy activities and should be fully integrated into the National Environment Action Plan (NEAP). The short-term measures, at little or zero cost, would begin to re-orient present policies and establish a framework that would lead to the desired results. The longer-term investments involve pilot activities, training, and project proposals in fuelwood demand and supply management. The follow- up investments are set out in Table 7.1. below and described in more detail in Annex XIII. Financing has not been identified for these activities. Project Title Total Estimated Implementation Funding Cost in USS Period Source Fuel Conservation Progra Urban Fuelwood Savings Project 1,500,000 2 years To be identified Institutions and Training Needs Assessment 100.000 12 months To be identified Inter-Fuel Substitution Proaram LPG Infrastructure Strengthening Project 700.000 12 months To be identified LPG Stove Development and Marketing Project 100,000 10 months To be identified Kerosene Promotion Options 40,000 6 weeks To be identified Natural Woodlands Ranaaement Improving inter-Agency Coordination Workshop 45,000 6 weeks To be identified Village-based Ranagement of Old Fallows and Degraded Woodtands Project 5S000,000 5 years To be identified 7.16 Implementation of the urban household energy program will generate total energy savings in the year 2000 of approximately 145,000 tons of fuelwood, or about 80,000 tons resulting from an improved stove program aimed at the household and informal sectors; and about 65,000 tons from an LPG and kerosene program as shown in Figure 7.1 and in Annex XIV. Implementation of the improved stove program based on the objectives in paragraph 7.7 above would have an NPV of 2.6 billion CFAF (US$ 8.7 million) and an IRR of 570% (see Annex XV). - 67- Figri .1: Coverage of Urban Demnd Grouth: 1990-2000 (477,000 tons) Coverage of Ubaben D0wind Q-owth ~~~~~brm _ta WVWe C44.Mq 4~~~~~~~~~.~I /tfraga C. 128~~~~~~~~~~~~~~~~~ol nalIQ Cwl. Not Ift8e0w fwiww sWIpy (68.5) 7.17 The proposal for natural woodlands management, which would assess the feasibility of restoring old fallows and degraded woodlands for urban fuelwood supply, amongst other uses, is put forth as a complement to on-going forestry management efforts. These activities are primarily concentrated in Burkina's national forest and domaine protEg6 lands. Given the volume of fuelwood entering the cities from the degraded areas together with their good access to the city, it has been concluded that this largely untested option could have potential for generating vitally needed woodfuel resources as wed as increased benefits from restored forest areas. Implementation of this experiment in natural forestry management yields an IRR of 5%, which reflects the benefits arising from the increase in forest productivity only. Those benefits due to the multiple uses of the forest by the local population, those of increased environmental protection and conservation, nor the manpower costs of natural forest management. 7.18 The strategy end investment program set out in this report are consistent with the energy and environmental recommendations of the Long Term Perspectives Study for Africa (LTPS). The LTPS highlights the need to address the household energy demand of the majority of the population of Sub-Saharan Africa that currently uses fuelwood and can be expected to do so over the longer term. It emphasizes the need both to broaden the use of improved fuelwood stoves as well as to encourage the shift to substitute fuels. The LTPS underscores the importance of identifying and testing different forestry management alternatives to protect the ecological base and to create an enabling environment that will encourage the broad-based popular participation needed to reach this objective. - 68 - B. Urban Woodfuel Conservation Program 7.19 A re-oriented urban woodfuel conservation program would: (a) better capture household consumer desires and requirements for improved woodstove equipment through expanded market surveys; (b) design market campaigns tailored to the regional characteristics of the four main cities and anchored in modem advertising techniques; (c) give increased priority to energy savings campaigns that target traditional cooking practices; (d) intensify fuelwood savings actMities within the informal urban sector and, in particular, the traditional beer brewers; and (e) develop implementation arrangements with the private sector to carry out these programs. 7.20 The MET would assume a different set of functions within an urban-based woodfuel conservation program that is anchored in a market approach. It would be responsible for the definition of policy objectives; raising local, multilateral and bilateral financing for product development and for energy saving campaigns; issuing of annual calls for tenders §/ to organize and implement urban improved stove dissemination and energy saving campaigns; organizing seminars to exchange views and information transfer international and national experiences and for program monitoring on a quarterly or semi-annual basis. Implementation of both the energy saving campaigns and the dissemination of improved stoves would be the responsibility of local NGOs. 7.21 A successful improved stove program for the urban sector could be expected to reduce fuelwood consumption in the urban sector from the trend-based 770,000 tons to 705,000 tons, assuming that the improved stove;s will be used for 60% of the cooking tasks. Efforts to ensure that the improved stove is manttained and used correctly could result in even higher savings. At the same time, a 100% penetration of the Burkido stove could reduce informal sector fuelwood consumption from the trend-based 115,000 tons to 95,000 tons. Thus, total savings from a revised and reoriented improved stove strategy would reduce total consumption by about 84,000 tons in the year 2000. Total additional fuelwood savings over the 1990-2000 period would amount to 234,00 tons. Short-term Measures 7.22 The MET should: (a) develop links with NGOs for stove dissemination activities; (b) replace ad-hoc campaigns with regular year round promotions; (c) abandon promotional pricing during campaigns; (d) make use of modern marketing techniques for stove dissemination campaigns; (e) widen consumer choice e.g. marketing of multi-pot stoves; (f) discontinue public sector sales outlets; C/ The tenders would be published by the MET, and wotdd, inter alia, define the available bud&et, the broad goals of the cmnpaigns, and possibly someguidelines/nequirements - e.. to intduce door-to-doorsales in several quarters ofthe city. - 69 - (g) abandon the policy of setting producers' and retailers' margins; and (h) improve coordination with IBE to jointly identify priority research and seek funding. 7.23 TWo follow-up activities have been identified: (a) Urban Fuelwood Savngs roject and (b) Institutions and Training Needs Assessment C. Inter-fuel Substitution Program 7.24 The transition from biomass to modern fuels is an on-going process. Government efforts to date have largely emphasized LPG promotion, but need to be broadened to inc'Llde kerosene. Kerosene is easier to use and more affordable for the majority of the urban population that could be expected to switch from biomass to alternative fuels. Because an increase in the urban demand for fuelwood in the early years of the next century can only be met with reductions in the resource base, management of the transition from biomass to modern fhels must now be the subject of systematic planning. This process should occur in two phases: (a) removing the culturaL psychological and price barriers to LPG and kerosene penetration and (b) promoting the wide- scale use of substitute fuels. It is the rirst phase that is addressed in this strategy document. 7.25 Pricing policy will be a key instrument to promote the fuel transition. Based on the price structure set out Chapter IV, it Is proposed to: (a) eliminate taxes on LPG marketed in 3 kg and 6 kg bottles and on kerosene destined for domestic consumption. This measure should result in a price of "popular" LPG of 272 CFAF/kg (down from 330 CFAF) and of "domestice kerosene sold directly from pumps at the gasoline stations of 113 CFAF/liter (down from 160 CFAF). LPG marketed in 12 kg bottles (and above) should continue to be taxed, although some downward adjustment of the price may be necessary to avoid a more widespread switch of 12 kg bottle owners to 3 and 6 kg bottles (and thus underutilization of the existing 12 kg bottle park); (b) lower transport rates to a level that stil ensures an adequate rate of return to the transporters; (c) increase SONABHY's margins to allow full cost recovery for the bottling plant including amortization of plant, labor, operating and energy costs, as well as maintenance and renewal of LPG bottles (30,000 CEAF/ton); to account for 4% spillage in loading, transport and filling; and to provide a 15% operators' margin on the sales price; (d) eliminate the provision for security storage and for promotion campaigns; (e) triple the provision for the transport of bottles from Bingo to Ouagadougou to take account of the weight of bottles ex-LPG in the transport to and from Ouagadougou. The margins for the distributors have been set at 15%, which is the normal commercial - 70 - margin in the region, 9% for the wholesaler (to cover the cost of storage, fnancial costs, financing of the working stock of cylinders and client risk) and 6% for the retailer; (f) Set the marghis in the kerosene price structure to reflect the specific services the oil companies intend to provide to the informal retailers. If a distribution system with ecdalized small trucks is set up, the wholesale margin for those sales should be increased to incorporate at least the defined margin for retailing at the gasoline station; and (g) add a dye to the detaxed kerosene and carry out periodic inspections of industrial equipment and of diesel-powered cars to discourage the use of de-taxed kerosene for purposes other than domestic lighting and cooking. 7.26 This new structure should promote fuelwood substitution by: improving the relative price competitiveness of the substitute fuels; ensuring the financial viability of SONABHY's bottling operations (and thus the accumulation of financial reserves for future *nvestments in maintenance and in capacity expansion); and providing incentives to wholesalers I .xpand the retail network served by them. 7.27 It is, furthermore, proposed that the psychological and cultural barriers to a more widespread use of substitute fuels be addressed through LPG promotion campaigns and through accelerating the on-going research and development of appropriate kerosene equipment. This objective would be reached through (a) the design and implementation of promotion campaigns anchored in a comprehensive market analysis of existing and potential LPG consunters; (b) the acceleration of research and test marketing of kerosene stoves; and (c) strengthening the infrastructure network for LP'J distribution. Short-term Measures 7.28 SONABHY should: (a) assist in developing LPG and kerosene promotion campaigns that effectively feature their attractions and; (b) stimulate collaboration between IBE and the private oil companies to design and promote a suitable kerosene stove. 7.29 Three follow-up activities are identified below: (a) LPG Infrastructure Strengiheiiing ProJect; (b) LPG Stove Development and Marketing Project; (c) Kerosene Promotion Options Project. D. Natural Woodlands Management 7.30 Implementation of successful demand-side interventions could reduce the projected fue}wood consumption (900,000 tons) by 140,000 tons in the year 2000. Nonetheless, the forestry -71 - sector must still increase the supply of fuelwood to the urban areas by more than 313,000 tons of fuelwood to accommodate a tripling of the demand between 1989-2000. Reaching this objective will require a strong Government commitment to natural forest management. Policy initiatives must aim to accelerate and strengthen the introduction and use of village-level forestry management practices to secure this supply. This process is already underway on a very limited scale in a FAO- assisted project in the national forest of Nazinon within the Ouagadougou supply zone. There are, in addition, projects under preparation to introduce forestry management on the domalne protege lands. The feasibility of managing forest resources on old fallows and degraded woodlands within a 50 kn radius of the major urban centers also needs to be assessed. 7.31 Given this critical role of forestry management, supply-side interventions will receive more emphasis in the future than they have in the past. In particllar, the move to organize woodlands management cooperatives must be accelerated and the experience gained in the first experiments must be closely monitored and the results widely disseminated. Land and tree tenure issues that are key to the mass mobilizaton of the rural population must be addressed as priority and steps taken immediately to identify and put in place mechanisms that will provide sufficient incentives to the participating populations to begin the task of preserving their natural environment. The considerable strides made in recovering woodfuel product revenues must be reinforced by measures to increase this recovery and contribute to the forestry management program. Critically important for the success of this program will be a commitment to experiment and evaluation. 7.32 Pricing policy will be a critical tool in the move towards sustainable forestry management and the Government can take several important steps in this direction, over the medium term. First, it can reduce the transporters' margins by introducing more competition in the fuelwood transport sector i.e., by allowing partial loads or return loads on non-authorized vehicles. Second, Government should consider: (a) .;ntroduction of a system of differentiated cutting permit fees for the three sources of supply - managed, unmanaged, and land clearing; the lower rate should apply to 'managed' fuelwood and be equivalent to the forestry service's cost of assistance; the higher rate should apply to "unmanaged' fuelwood and be equivalent to the full stumpage value of fuelwood (that is, the cost of production of managed supplies including the cost of the forestry service assistance) and (b) the designation by the MET, in consultation with agricultural authorities, of zones within the expansion of the agricultural frontier as special supply zones; the system of differentiated cutting permit fees would be applied to these zones. 7.33 Institutional coordination and capacity building is fundamental to all of the strategy components, but especially critical in the case of natural woodlands management. This component of the strategy will place particular emphasis on identifying the bottlenecks to strengthening institutional capacity and improving inter-agency coordination. Fundamental to this process will be the development of links between the Ministries of Agriculture and of the Environment and Tourism to identify mechanisms to make wood available from agricultural land clearing activities for household energy purposes. Shot-term Measures 7.34 The MET should: (a) create an Urban Fuelwood Working Group within the ministry to oversee urban fuelwood supply and marketing activities and the evolution of natural forest management activities. Amongst the issues it could consider include: methods to improve recovery of fuelwood revenues; an incentive system to recover wood for energy * 72- from land clearing for agrctural development; need for a differential tax structure from unmanaged lands; (b) liaise with the Ministry of Rural Cooperatives and the Village Land Management Program in establishing and operating forestty management cooperatives; (c) opt for a phased program of village-based forestry management by establishing one pilot cooperative in each of the urban fuelwood supply Lnes; (d) move to reconcile or correct the lack of fuehvood transport fees in the Bobo-Dioulasso supply zone; (e) review the present fuelwood demand/supply and price situation and, in particular, the low producer price, in Ouahigouya and its negative impact on the promotion of forestry management schemes; and (f) publish price guidelines (price structures) for the consumer to put some downward pressure on attempts at price gouging 7.35 Two foUow-up activities have been identified below. (a) nrovin! Inter-Aiency o Cooination Wokhop; and (b) Villa-based Managment of ld Fallows and Degraded Woodlands Pilot Project. -73 Angex I Page 1 of 5 FUELWOOD DEMAND FORECASTS Figure A1.1: Fuetwood Denwnd/Supply Batlance 1987 to 2010 S.2_ 5.6 5.8 _ -- _ ___- 5.4 32 s 4.4 8 4 2 4 3.4 3.2- l 19S7 19tt9 1B9 15F33 I15t9 1*9119 2ttht0 )12X3 22XS 2067 120 I 15 ; 1' 0 15S it2 594 *9S8 -lg 8 2t Xt 20 St 2o 20,10 Y6GR o3 O&mnc . turtL spply o ) a py I nrl f I I(Ing a b 2000 cot Figure A1.2: Rurat and Urban Fuetwood Coawupt l, 190,7 to 2010 7 4 CO 0- t; 4citlws + Urbtrn o mt.torsl -~~ ~ ~ ~ _ Vewast of UrQm H EmbdKoaU C.osumpamo lIn Barkidm Fami BodFotof Fuunt Tha& wmS Rgad to Popltidon Projeton Population Growth 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 Ouaadougou 0,0988 443000 486768 534861 587705 645771 709573 779679 856711 941354 1034360 1136554 1248846 1372232 Bobo-Dioulasso 0,0713 231000 247470 265115 284018 304268 325962 349204 374102 400775 429350 459963 492759 527892 BnohIudoou 0,0342 52000 53778 55618 57520 59487 61521 63625 65801 68052 70379 72786 7527S 77850 Ouahiouy& 0.0421 39000 40642 42358 44136 45994 47930 49948 52051 54243 56526 58906 61386 63970 TOTAL 4 CITIES 765000 828659 897947 973379 105520 1144987 1242458 1348665 1464423 1390615 1728210 1878266 2041944 Other cities 0,032 139000 143448 148038 152776 157664 162710 167916 173290 178835 184558 190464 196558 202848 Rural Population resid. 6966000 7180693 7367705 7556773 7747597 7939830 8133075 9326883 8520742 8714075 8906231 9096477 9283990 TOTAL 0,032 7900000 8152800 8413690 8682928 8960781 9247526 9543447 9848838 10164000 10489248 10824904 11171301 11528783 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Ouagadougou 1507808 1656780 1820470 2000332 2197965 2415124 2653738 2915928 3204021 3520579 3868412 4250611 4670571 Bobo-Dioulasso 585531 605853 649051 695328 744905 798016 854915 915871 981172 1051130 1126075 1206364 1292378 Koudougou 80512 83266 86114 89059 92104 95254 98512 101881 105366 108969 112696 116550 120S36 Ouahigouya 66663 69470 72394 75442 78618 81928 85377 88972 92718 96621 100689 104928 109345 4 TOTAL 4 CITIES 2220515 2415369 2628028 2860161 1113593 3390323 3692543 4022651 4383276 4777298 5207871 5678453 6192830 MI Other CIties 209339 216038 222951 2?0)086 237449 245047 252888 260981 269332 277951 286845 296024 305497 Rural Populatlon 9467850 9647023 9820360 9986576 10144240 10291760 10427367 10549096 10654767 10741962 10808006 10849932 10864463 TOTAL 11897704 12278431 12671'40 13076823 13495282 13927131 14372799 14832728 15307376 15797212 16302722 16824409 17362791 UQ P x 0 U'( AamiAl Ve=L Caosutmptla by Douseholds In Tons. Informal Sector Consumptlon of Puelwood is Calculated by adding 181 to Household Fuelwood Cnsumption OUALADGUGU Year 1987 1988 1989 1990 1991 1992 1993 1994 1995 19965 1997 1986 PIUoLood 0.622K4Ipertday 121430 133427 146609 101094 177010 194499 213716 234831 238032 283526 311538 342318 (addlt. consumption of Lnfornal sector) 21857 24017 26390 28997 31862 35010 38469 42270 46446 51035 56077 61617 Charcoal 0022Ks/perlday 4295 4719 5186 5698 6261 6879 7559 8306 9127 10028 11019 12108 LIQC O.9SOlgJperiday 508 558 613 674 741 814 894 983 1080 1186 1304 1432 Kerosene 0,2lOKg/per/day 112 123 136 149 164 180 198 217 239 262 288 317 3090-DIOULASSO Year 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1988 Fuealood 0,654gIporlday 63286 67798 72632 77810 83358 89302 95669 102490 109798 117626 126013 134998 (addit. consimptLon of informal sector) 11391 12204 13074 14006 15005 16074 17220 18448 19764 21173 22682 24300 Charcoal 0.048Sg/perlday 4645 4976 5331 5711 6118 6554 7022 7522 8059 8633 9249 9908 LPG 0,376gsiperIday 100 107 114 123 131 141 151 161 173 185 198 213 Kerosene 0.2104Sgper/day 56 60 64 68 73 79 84 90 97 103 III 119 KOUDOUGOU Year 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1988 Fuelwood 0,641KgIperlday 13013 13458 13918 14394 14886 15395 15922 16466 17029 17612 18214 18837 (addit. consumption of informal sector) 2342 2422 2505 2591 2680 2771 2866 2964 3065 3170 3279 3391 Charcoal 0,034K1Sperlday 690 714 738 763 790 817 845 873 903 934 966 999 LPG 0,336Kg/perlday 19 19 20 21 21 22 23 24 24 25 26 27 terosene 0,2lOggperIday 12 12 12 13 13 14 14 15 15 16 16 17 OUAHIGOUYA Year 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1988 FuelWO"d i 0,SlOKgperlday 12522 13049 13598 14171 14767 15389 16037 16712 17416 18149 18913 19709 (addlt. consumptLon of informl sector) 2254 2349 2448 2551 2658 2770 2887 3008 S135 3267 3404 3548 Charcoal 0,017Kg/per/day 263 274 285 297 310 323 337 351 366 381 397 414 -j LPG 0,004KS/perlday 0 0 0 0 0 0 0 0 0 0 a 0 tn Kerosene 0,21OKS/per/day 9 9 10 10 10 11 11 12 12 13 13 14 i TOTAL 4 CITIES Year 1987 1988 1989 1990 1991 1992 1993 1?94 1995 1996 1997 1988 Charcoal 9893 10683 11540 12470 13478 14573 15762 17052 18454 19976 21631 23429 LPG 626 684 748 817 893 977 1068 1168 1277 1397 1528 1672 Kerosene 189 204 222 240 261 283 308 334 363 394 429 466 Fuelwood Consumptlon by Households 210249 227731 246757 267469 290022 314585 341343 370499 402275 436912 474678 515862 Informl Sector Fuelwood Consumption 37845 40992 44416 48144 52204 56625 61442 66690 72409 78644 85442 92855 Household + Infoxmal Seat. Fuelv. Cons. 248094 268723 291173 315614 342226 371210 40278S 437189 474884 51557 560120 608717 30 tD& 0 OUAhGADOUGOU Yeor 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Fueluood 0,622KglperIdey 376139 413301 454135 499004 548306 602478 662003 727409 799277 878246 965016 1060360 (addlt. consusptlon of Informal sector) 67705 74394 81744 89821 98695 108446 119161 130934 143870 158084 173703 190865 Charcoal # 0,022KgIper/day 13304 14818 16063 17650 19393 21310 23415 25728 28270 31063 34132 37505 LPG 0.95OKI/perIday 1574 1729 1900 2088 2294 2521 2770 3044 3345 3675 4038 4437 terosene 0,210X/lporlday 348 382 420 462 507 557 612 673 739 812 893 981 IO3O-DIOUMASSO Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 FuelVood 0.6S4XgSper/day 144623 154935 165982 177816 190495 204077 218627 234216 250915 268805 287971 308504 (addit. consumptlon of Informal sector) 26032 27888 29877 32007 34289 36734 39353 42159 45165 48385 51835 55531 Charcoal 0.04SKgIperldy 10615 11371 12182 13051 13981 14978 16046 17190 18416 19729 21136 22642 LPC 0.3?61g/p*r/day 228 244 261 280 300 321 344 369 395 423 454 486 Kerosene 0.21OKe/per/day 127 136 146 156 168 180 192 206 221 236 253 271 XDuDOUGOU Yeer 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 FueLuood 0,641Ks/perld.y 19481 20148 20837 21549 22286 23048 23837 24652 25495 26367 27269 28201 (addit. consumptlon of infornml sector) 3507 3627 3751 3879 4012 4149 4291 4437 4589 4746 4908 5076 Charcoal 0034Kalper/day 1033 1069 1105 1143 1182 1223 1264 1308 1352 1399 1446 1496 LPC 0336Kglperlday 28 29 30 31 32 33 34 35 37 38 39 41 terosene 0,2lOggrperld.y 17 18 19 19 20 21 21 22 23 24 24 25 OUOAIGOUYA Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Fuelvod 0.8102Klper/day 20539 21403 22305 23244 24222 25242 26305 27412 28566 29769 31022 32328 (addit. consumptlon of inforeal sector) 3697 3853 4015 4184 4360 4544 4735 4834 5142 5358 5584 5819 Charcoal 0,017Xg/pertday 431 449 468 488 508 530 552 575 600 625 651 678 LPC 0.00ORS/per/day 0 0 0 0 0 0 0 0 0 0 0 0 Kerosene 0.2lOKg/per/dyr 1S 1S 16 17 17 18 19 19 20 21 22 23 TOTAL 4 CITIES Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0' Charcoal 25383 27508 29818 32331 35065 38040 41277 44801 48638 52816 57365 62321 LPG 1830 2002 2192 2399 2626 2876 3149 3448 3776 4136 4531 4963 erosene 507 552 601 654 712 775 845 920 1003 1094 1192 1300 Vuelwood Consumption by Households 360782 609787 663238 721613 785308 854845 930772 1013688 1104253 1203186 1311278 1429392 Informal Sector Fely. Consumption 100941 109762 119386 129890 141356 153872 167539 182464 198766 216574 236030 257291 Household + Informal Sect. Fuely. Cons. 661723 719549 782645 851503 926664 1008717 1098311 1196152 1303019 1419760 2547308 1686683 Implicit fuelwood Consump. fron Charcoal 70508 76410 82828 89809 97403 105666 114659 124448 135105 146710 159348 173115 o s n Year 1987 1988 1989 1990 1991 1992 i993 1994 1°95 1996 1997 1988 Total Fuelwood Decmnd, 4 Cities 275574 298397 323229 350252 379666 411692 446568 484558 525945 571047 620205 673796 Total Fuelvood Demand, other Cities 55899 57688 59534 61439 63405 65434 67528 69689 71919 74220 76595 79047 Total Urban Demand 331473 356086 382763 411691 443071 477126 514096 554245 597864 645267 696801 752843 Total Rural Demand 2689212 2758222 2827873 2898038 2968572 3039312 3110071 3180637 3250774 3320214 3388657 3455765 Total Fuelvood Demand 3020686 3114308 3210636 3309729 3411644 3516438 3624166 3734883 3848638 3965481 4085457 4208608 Construction Wood 500000 517500 535613 554359 573762 593843 614628 636140 658405 681449 705299 729985 Total Wood Demand 3520686 3631808 3746248 3864088 3985405 4110281 4238794 4371022 4507043 4646930 4790757 4938593 Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Total Puelvood Demand, 4 Cities 732231 795959 865473 941312 1024067 1114384 1212970 1320600 1438124 1566470 1706656 1859798 Total Fuelvood Demand, other Cities 81576 84186 86880 89661 92530 95491 98546 101700 104954 108313 111779 115356 Total Urban Demand 813807 880145 952353 1030973 1116597 1209875 1311516 1422300 1543078 1674783 1818435 1975154 Total Rural Demand 3521164 3584432 3645100 3702648 3756493 3805989 3850420 3888990 3920816 3944922 3960225 3965529 Total Fuelvood Demand 4334970 4464577 4597454 4733621 4873089 5015864 5161936 5311290 5463894 5619705 5778660 5940683 Construction Wood 755534 781978 809347 837674 866993 897338 928745 961251 994894 1029716 1065756 1103057 TotaL Fuelvood Demand 5090505 5246555 5406801 5571295 5740082 5913201 6090681 6272541 6458789 6649420 6844416 7043740 -4 -n - 78- Annex I Page 1 of 6 FACTORS INFLUENCING URBAN HOUSEHOLD ENERGY DEMANND 1. The ESMAP/MET urban household consumption surveys provide important insights into the underlying factors influ*encing urban household energy demand. This analysis has highlighted the need to pay close attention to the determinants of consumer behavior when fine- tuning Burkina's urban household energy sector strategy, if improved results are to be obtained. The details of those factors are set out in the paragraphs below. Household Size 2. Family size is a significant determinant of the level of per capita consumption of household energy other than electricity as depicted in figure A2.1 below. (a) A Ouagadougou household of 8.5 persons (average urban household size) consumes, on average, 638 grams of fuelwood per person per day. (b) In smaller households, per capita consumption is substantially higher: 755 gram per person per day (+ 18%) for a household of 6.5 persons. (c) In larger households consumption is smaller: 545 grams per day and per person (- 15%) for a household of 13 persons. i/ Fiwure A2.1: Household Size and Energy Caorwmption [~~~~~~~~C IV aowtt t< pr pare*n F ii 0.@ 03. N"w or PMa W"OW 3. Because of the important economies of scale in energy consumption, demographic changes leading to smaller household sizes will increase per capita consumption of household energy. If, for example, average household size would decrease by one person from the present 8.5 to 7.5 persons in 2000, the consumption of household energy would increase by 10%. &/ No comloaion was found between household size and average income per household. 79 - Annex II Page 2 of 6 Individual Household Behavior 4. While there is a clear relationship between income and energy consumption at the macro leveL the level of consumption of individual households varies considerably O/ because of (i) differences in individual behaviour vis-a-vis to fuel savings and (ii) individual differences in eating habits. The main policy implication of these differences in energy consumption is that total consumption can be reduced by public education campaigns that stimulate energy saving habits and new food preferences. 5. Table A2.1 shows the range of energy saving measures in households by frequency. Although use of water to extinguish the fire after cooking/heating is the most widespread energy saving habit, it is surprising that little more than one third of the households apply this measure. Since 31% of the households cook outside the house in areas that are not protected from the wind, the low percentage of households that protect the fire against the wind is also revealing. Table A2.1: Energy Saving Behaviour in Urban Nousehotds Use of water to extinguish fire 37X Use of iaproved stoves 35X ReQdu. sount of fuett. after lighting 26X Reduction in number of cooked moats 13X Protection of fire aainst wind 9X Other measures 16X Source: ESNAP/NET household energy sntney 1987 6. These figures suggest that the widespread assumption that low-income (and even middle-income) households are efficient users of fuelwood for cooking is, at a minimum, doubtful. Indeed, there is information to suggest that efforts to instruct the urban population on more efficient cooking methods, which is not now a part of Government's campaign, could generate fuelwood savings that could at least equal those resulting from the efficient utilization of the improved stove. This type of marketing campaign could reach well beyond the population currently addressed by the improved stove program, touching nearly all urban households: those who have an improved stove but use it inefficiently; those who can afford to buy an improved stove but have not yet done so; and those who can not afford or are not ready to buy an improved stove (the majority at the present time) but could realize fuelwood savings with improved traditional cooking methods. 7. Cooking habits tend ti be rather uniform within income groups. The typical Burkinabe diet is extremely energy intensive. i/ Te staple food is 't&, a millet-based porridge and sauce, shown in figure A2.2 below. The Government does not now seek to promote an increase W/ The comiadon coefficient for the houehold sie.eny m4ationhip shown in flgwu A21. §/ ESMA/IBE cooking tests wveated a conswmption of 161 . fuewood/peson/meatforthe t and sauce, 140 grfor the rice and sauce, 1S8gr forthe fied nce and 153 gr. for oftas. 80 AnnexII Page 3 of 6 in the household demand for agricultural products to provide markets for surplus agricultural output (e.g. tomatoes normally exported abroad). If it did, an important side benefit of a successful campaign to increase the consumption of these products will be energy savings, provided, of course, that the meals that are promoted are less energy consuming as the present ones. Figure A2.2: Frequency of Different Typos of Meals Lktan HIuueholds Greasy Aice (3 0%) Pico & Sauce (a25.o) To * sauce (60 I; Household Income 8. Consumption of household energy rises with increasing income: Going from the poorest to the richest category of households, the fuelwood/per capita consumption increases by about a third in households that use fuelwood as their exclusive fuel (see figure A2.3). L2/ Since income in the former category is 10 times as high as in the latter, the income elasticity measured over this range is a low 0.03. Between the first (20,000 CFAF) and the second income category {Z/ Since the objecftive was to analyze the impact of nsing income on the level of ovewil enev& demand, households making use of substitute fuels for some of their cooking needs were excluded from the sample. 81 Annex 1. Page 4 of 6 (2049,000), income doubles and fuelwood demand increases by 11%, implying an income elasticity of 0.11. fi/ The weighted average of the income elasticity found in the different income groups is 0.07. fjgujE A2.3: Ipuect of Househotd Income on Energy Carwuwption Houeho I income and Energy Consunption m -- MO No Si* O 3ZM4 st.S a atpl. *0 mt Cilt 9. The low income elasticity of household energy demand relates to the fact that household energy consumption satisfies a basic need - food preparation. §2/ Seen within the perspective of the impact of economic growth on the demand for fuelwood, the low income elasticity of household energy demand is somewhat reassuring. If, as expected, per capita income in Burkina Faso grows by 1.5% a year up to 2000, the rise in income will increase household energy demand per capita by only 1.5 per cent. Since some fuel substitution will be induced by the rise in income, the impact on fuelwood demand will be slightly lower still. O/ Fiw AZ3 may understimate the real income sensitivity of energy demand. *t is likely that budgetaiy consntnintsforce poorer households to be mot attentive to eneegy savings. But as the swury measwud energV consumption indirctly t/uogh fomsation on he evel of end-uses and a'emage efficiencks of appliances, behavioural differences between income gvsups with wgwd to 'ene&j efficiency" could not be captured and are thus not reflected. 0/ The income elasicityforthefr/s not induded in the suvey i.e electicity and gasoline, is a different story. Thefonner is tinked to the purhase of luxuy appliances, the latter to pivate car transpoit (also a luxwy). Both are highly income dependent. 82 Anna 1 Page S of 6 Tabl A2.Z: Expwditure on FutaWood in Percent of Household Income Income Group X of Income < 20,000 CFAF 29X 20-49,000 CFAF 11X 50-99,000 CFAF 7% 100-149,000 CFAF 6X > 150,000 CFAF 2Z $ourco: ENAP/ET Household Enrwy Surwy 1987 10. However, the low income elasticity of household energy demand has negative social implications: fuelwood expenditures impose a heavy burden on the budgets of low-income families. Households with monthly incomes below 20,000 CFAF 70/, which do not have access to self- collection of fuelwood spend more than one-fourth of their income on the purchase of fuelwood. Ll/ Households with more than 150,000 CFAF in monthly revenue spend less than 2% of their income on fuelwood, in part because household energy consumption (electricity excluded) rises less than household income, in part because of increased use of substitute fuels. The Price Elasticit of Household Energy Demand 11. A low price elastit is another feature of the basic needs aspect of household energy demand: A high increase in fuel prices will reduce total fuel demand by a rather modest amount. For example, in 1985, in response to a doubling of fuelwood prices in Ouagadougou, demand fell an estimated 30%. This large fall was linked to temporary supply constraints caused by a Government imposed reorganization of the fuelwood supply system. Once the supply of fuelwood became normal demand picked up rapidly. 12. Unfortunately, no time series data on fuel prices and consumption exist in Burkina Faso. Instead, one has to look for clues to the response of fuel demand to prices by comparing the average level of consumption in high and low price areas. The price of fuelwood in Ouagadougou (25 CFAF/kg) is 60% higher than in the other three major cities - Ouahigouya, Koudougou and Bobo-Dioulasso (15 CFAF/kg); and the demand for fuelwood is 9-10% lower per person. This lower level of consumption supports the assumption that the demand for household energy is price elastic - in the range of -0.15. It does not prove the point, however, since other factors influence differences in regional consumption as well. On the other hand, the methodology used to calculate ZW At end1987, the awvmge wage of a ciwI sermvt ws CFAF 119,000 per month; the lea mininum wage is 21,0OM CFAF Zl Jhi mpofled sham is too high to be competelyplapusibke. It is illudve, howwr, of the mnitude of the problem, It also illsmaEes one of the wakesezes in houhod swveys: mspondents have a tendancy to understimate their income. Income in kind is often not indcdedc - 83 - AnneJ1 Page 6 of 6 the level of fuel consumption does not capture the effect of price on energy saving behaviour. It can be postulated that the two factors cancel out each other. If the assumption is correct, a doubling of fuelwood prices will reduce the demand in fuelwood consuming households by 15% (impact of the 'own price elasticity' of the fuel). Totai demand should fall even more, as some families wi switch to other fuels such as LPG (impact of price increase on the relative price of the fuel). - 84- A ANNUAL FINANCIAL COST OF COOKNG BY TYPE OF FUEL, FAMILY OF SIX PERSONS OUAGADOUGOU, 1987 FuOlwood Ilproved LPC LPG Kerosone Kerosene 3 Stones Stove Charcoal (faitou) (IBE) (actual pr.) (official pr.) CorsURir Price (CFAF/kg) 25 25 86 330 330 240 160 Calorific Value (Ccal/kg) kerosene a Liter 3,8 3,8 7 10.7 10.7 8,3 8,3 Energy Efficiency of Stove 0,14 0,2 0.2 0 29 0,37 0,4 0,4 Usefut Energy (Mcaltkg) 0,53 0,76 1,4 3,1 3,96 3,32 3.32 Consumer Price of Useful Energy (CFAfIWcal) 46,99 32,89 61,43 106,35 83,35 72,29 48,19 Annual Consuqption of Useful Catories per Household (Mcal) 780 780 780 780 780 780 780 Anrtal Fuel Expenditure 36654 25658 47914 82952 65016 56386 37590 Expenditure Retative to 3 Stone 1 0,7 1,31 2,26 1, 77 1 Si 1,03 Price of two Stoves (CFAF) 0 1500 700 16400 16400 20000 20000 Lifetime (years) 3 3 6 6 6 6 Anmual Amortization of Stove Price (at 15X rate of interest) 0 657 307 4333 4333 5285 5285 Deposit/Price for Two 3kg Bottles 0 0 0 14000 14000 14000 0 Anmutl Finanlel Cost of BottLes (15%) 0 0 0 2100 2100 0 0 Annual Cost of Mick Replaceaent 2600 2600 Total Annual Cost of Eauimgent Q £44 on 7S Total Annual Expenditure on Cooking 36654 26315 48221 89385 71449 64271 45475 Total Expenditure Relative to 3 Stone 1 0,72 1,32 2,44 1,95 1,75 1,24 Expendfture Relative to Impr. Stove 1,39 1 1,83 3,4 2,72 2,44 1,73 85 AmlqlI Page 1 of 2 THE SECURT OF SUPPLY FOR KEROSENE AND FOR LPG 1. Sufficient sources of supply of substitute fuels are available in the regi3n. In 1985, the Government established the national oil company, SONABHY, giving it the monopoly for the importation and the storage of petroleum products. Until that date LPG had been imported almost exclusively from the SIR refinery in Abidjan by the three oil companies Burkina & Shell (B & S) (by rail in wagons and by two 11 tons road tanker), Total (by rail in bottles) and Mobil (by trucks in bottles). B&S operated a manual bottling plant in Ouagadougou, which filled the gas from the rail wagons and road tanker directly into the bottles. The wagons sewred as the only storage capacity. To improve the security of supply of LPG (and of petroleum products in general), therefore, became the immediate priority of SONABHY. 2. LPG can be imported to Burkina Faso from purchases on the international market landed at the port of Abidjan or from refiner;es in the immediate neighbouring countries. The cost per ton of LPG freight depends on the size of the cargo, the distance from the port of entry, the number of ports to be visited by the tanker and the time spend on unloading, and on seasonal demand/supply imbalances. In 1987/88 the cost of shipping went up sharply, as one changed from a situation of oversupply for small tankers (less than 6,000 tons capacity) to a situation of scarcity (the rent per month for small tanker has increased from 150,000 to US$ 320,000). It varies from US $ 30 (the case of Japan for cargoes of 35,000 tons from the Middle East) to $ 450 (case of e.g. 200 tons cargoes to ports with primitive receiving facilities. The cost of freight per ton from the European market should be between US$ 40 and 100 delivered Abidjan in cargos of + /- 1,000 MT plus local port handling of US$10 MT. Because of the high cost of ocean freight for the small quantities of LPG in question, under normal circumstances, acquisition from local refineries having excess demand is the lowest cost solution for Burkina Faso. 3. A refinery that has gas in excess of local demand has two options. It can use the ecess LPG in the refinery heating process as a displacement for fuel oil. In that case, the excess gas is valued at fuel oil equivalent. Alternatively, it can sell it on the international market. The FOB cost ex-European refinery of LPG has fluctuated in the last two years between US$ 100 to US$ 200 per MT. The high cost of ocean transport usually exceeds the extra sales realization that could be obtained on the European market, Le. the "net-backV on the LPG at the level of refinery - price Northwest Europe minus freight - is lower than the price FOB offered by regional customers or the price of fuel/oil Therefore, local refineries will be forced to look for consumers in the regional market and sell it at whatever price they can get as long as it exceeds the price of fuel oil equivalent. Burkina Faso has several options: (a) Abidjan, where LPG can be acquired from the SIR refinery or GESTOCI, a parastatal company that handles petroleum product storage and has sea terminals as well as a 2,000 tons LPG tank. The SIR refinery was the historic source of supply for LPG and kerosene. The Government is a 6 percent shareholder in the SIR refinery. It also holds equity in RAN, the railroad sewing both countries. The incentive for the Government to use this route of supply was negated SIR's refusal to price the product ex-refinery at something near import parity. Shorly after its establishment, SONABHY redirected LPG imports to the lower cost (50%) GHAIP 86- A- Pape 2 of 2 refinery in Tma, Ghana. 7Z/ In late 1986, GESTOCI agred, in principle, to handle supplies at import parity cost for the countries which are involved. (b) LPG is now imported mainly from the GHAIP refiny in Tenia, Ghana, which is the lowest cost supplier in the region. The surplus of LPG production over national demand is considerable, and will remain so in the medium term future. (c) Most of the LPG produe ion at the new refinery in Port Harcourt, Nigeria wDI be consumed in Nigeria, but it can serve. as a back-up source of supply. (d) Nwo projects under study by international oil companies in the region could further improve the long-term situation of suppl: (i) Gulf Oil Gabinda is currently evaluating the feasibility of fraxctionating some of the LPG that it produces in association with its crude oil operations in Gabinda, Angola. It is possible that only the equipment and storage necessary to fractionate and handle enough gas to satisfy Angola's demand will be out in place. If, however, a larger project is decided, Gabinda could be a low cost source of commercial LPG in the region. (ii) Shell is currently evaluating the construction of ocean receiving and storage facilities for LPG in Lome, Togo. 4. The security of supply situation of kerosene is equaly as favourable. Burkna Faso can chose between (a) Abidjan (local production of the SIR refmery as well as international imports through GESTOCI), (b) international imnports through STSL, the ocean oil products receiving terminal in Lome and finally, (c) the OHAIP refinery in Tema as a back-up souroe of supply (inland market demand in Ghana for kerosene is in balance with output). ZV Frms 14,Oi) FCFA/ton to 76,0P FCFA/ton. In 1988t w pice dvMppedfuther to S1,(tA)FCFA (US$ 18S/st). In 1988 SONAHBY mached aj,wedme SIR to cdange deirexc pncuwg to / _numo&a pnes. his opens at psibiy to have a seond sapperfor sewy of wp ss ma w haow g to pay ace#iwpmiuforiL ' 87 Pap 1 of 2 THE PRICF.STRUCTURESFOR LPG AND KEROSENE The aisting LPG and kerosene price sructures are set out below. Postes oDpt ieo D"p8t 3lbo 1. Prix CAF Burkina 75,000 75,000 2. oroit fiscal d1faiportatian 8.925 8,925 3. Taxe statistique 2.100 2.100 4. Ticbre dotunier 661.SO 66.SO 5. Pr4t6vwent cBc 791.50 799.06 6. PrOlbvemnt ONAC 395.75 392.S4 7. Total des drolts et taxes 12,873.75 12,87.12 8. Transport Laoi-Bingo/Bobo 85,000 115,000 9. Couleo Transport 1,600 1,900 10. Transit ° TPS/Transit 3,109.72 4,207.25 11. Passage DepOtWTPS/passage dpot 8,536.S0 8,536.50 12. Coulage dpot 3,457.48 4,057.71 13. Stock da s#curit6 20,000 20.000 14. Fcrdsa de vulgaris2tion 10,000 10,000 IS. Frals SOBNY 10,353.89 10,963.64 16. Frais de transport Blngo/Oul g 6,000 1?. Frafs Soci6t6s petrolibrms 23,639.92 23,639.92 18. Norge Soci6tde p6troli&r.s 8,000 8,000 19. Total des pastes 8 A 18 179,697.51 206,304.85 20. Prix do revient iwportateurs 267,571.26 294,182.9? 21. P6rdquation 28,423.74 1,817.03 22. Prix de cession atw distributeuos 296,000 296,000 23. Narge distributeurs 34,000 34,000 24. Prix de vente d6tail/tonne 330,000 330,000 25. Prix de vente ditail/b. de 12,5 kg 4,125 4,125 26. Prix de vents d6tail/kg 330 330 Sorce: Ninistire du Ceomrce et de t'Approvlsionramant du Peuple. ' 88 Page 2 of 2 StructureR do cx ox-Lom6 Pastes Supor Essmnve PWtrote Gaz-oi l 1. Prix do CesolioVL=i 5,956 5,866 6,500 5,970 2. Taxe stotlstiqwa 28 27.01 22.84 23.25 3. Dro1t de doumno 3S 33.77 28.56 29.07 4. Drolt tiscat d'luiportation 350.07 337.77 28.56 29.07 5. Taxe ca*tWmntaire 1,578.40 1,576 1,287 6. Toxe sp4cflfque 2,300 2,300 500 200 7. Pr4tlvewnt CBC 42.06 41.61 44.78 42.13 8. Pr4tlWe'mnt ONAC 21.03 20.80 22.39 21.06 9. Total droits et taxes 4,354.56 4,336.91 984.15 1.PS2.52 10. Passage magasin dousne (P9D) 36.85 35.55 39.12 41.53 11. TPS/PM 8.08 7.80 8.58 9.11 12. FondB d'action p6troltire 250 250 100 250 13. Stock de Sdcurit6 530 530 530 530 14. Trsport 3,s50.72 3,s50.72 3,570.72 3,s70.72 15. coutae tranport 47.63 47.19 50.35 47.70 16. TranSit frOntlbre 107.12 107.12 107.12 107.12 17. TPS/translt fronti&re 23.51 23.51 23.51 23.51 18. Trasit burkinm 31 31 31 31 19. TPS/Trwisft burkina 6.80 6.80 6.80 680 20. Pasose d6pOt 450 450 276 450 21. TPS pa8sage d6pot 98.77 98.77 60.58 98.77 22. Coutase dioPt 95.26 94.36 73.S3 71.55 23. Fra1s SONASHY 600 570 300 550 24. Freft socift4s p6traLi4res 1,087.89 1,034.88 544.50 99.54 25. marge socl6tds p6trotlres 247.53 236.23 137.70 M08.44 26. Total dos postes 10 a 25 lnclus 7,191.16 7,093.92 5,859.51 6,995.79 27. Pdrdqiation 9,701.28 8,651.17 1,656.34 8,041.69 28. Prix de cession ddp6t Bingo/HL 27,203 25,98 15,000 22,860 29. Prix de csmion dip6t 3fMrc/L 272.03 259.48 150 228.60 30. Fres lvraison ville 3 3 3 3 31. Prix cession revendeur 275.03 262.48 153 231.60 32. lerge revendour 9.97 9.52 7 8.40 33. Prix d6tail vitle Ousga 28 2n 160 240 souc: infnstbre du Comrce et de t'Approvisloeaemnt du People. Page 1 of 2 KEY ASSUMPTIONS FOR LPG AND KEROSENE PENETRATION KSy AssRoPtignh for Year 20i0 Poputation Pers./househ Households Ouagadougou 1,819,800 7.9 230,354 8obo-Oioulasso 650,000 9.8 66,32? Koudougou 85,000 9 9.44 Ouahigouya 72,000 13 5,538 Banfors 125,000 8 15,625 TOTAL 2,751,800 327.289 Use of LPG or Kerosen as Primary fuel Secondary fuel Use in LPG households 39% 61% Use in kerosene households 39% 61% Nuwber of persons in households 9% Penetration Case, LPG housenolds 4 8 LPG promot. case, LPG households ? 8 Kero. prom. case, kerosern houe 8 8 Anmal. LPG consuLmtion in tons/household 9% Penetration case 0.088 0.055 LPG promotion case 0.153 0.055 Kerosene consumption t./h. 0.178 0.058 Fuel Fuetwood Fuelwood in percent Consuiption Replacement of Household of Growth in t/year t/year Compared to Fuslwood Fuelwood Base Case Consuvpt. Corsuiption Consumption Annual Household Consumption of LPG Base Case 2.070 0 LPG Promotion Case 8.586 45.615 7S5X 13,3% LPG & Kerosene Promotion Case 6.778 32.959 4,5% 9,6% Annual &xtseholds Kerosene Consumtion 6.501 44.855 6,1X 13,1X Coehined Result from LPG & Kerosene 77.814 10,6" 22,7 - 90 * MM VI Page2 of2 Grad-Total fgr the Fine Cities- - Year 200 Foreastl ALL Distribution of Household (1) 221 401 261 a1 41 1001 Distribution of Nowehold Mntsars) 72.004 130.916 83.095 26.183 13.09 327.289 ave Puwtr. LPG users in % of Households Inctom grow All I III IV V NouselV. Ilase Case 11 31 121 321 551 91 LPO Promotion Case 1% 101 501 902 901 21" LPG & Kerossne Proiwtioun Case 11 51 351 901 901 22 KerosenUsers ot 251 301 01 01 191 LPG using Househods:o Base Cas 720 3.927 10.211 8.379 5.201 30.428 LPG Prootion Case 720 13.0 42.548 23.5X 11.0 91. LPG B Kerosene Pro6mtion Case 720 6.546 29.783 23.565 11.7M3 72.396 Kerosene usine Households 3.600 32.72V 25.529 0 0 61.858 - 91 - Annex VII Page 1 of 4 THE ECONOMIC VALUE OF FUELWOOD SUBSTITUTION 1. LPG and kerosene for cooking are wanted by some consumers and satisfy a need for these consumers. Their welfare is enhanced by the superior comfort of these fuels compared to fuelwood. The economic value of the satisfaction of this "baseline" (or "spontaneouse) LPG and kerosene consumption can only be analyzed from the standpoint of the satisfaction of consumer wants: It is equivalent to the financial cost of the fuel to the consumers plus the 'consumer surplus" (defined as the difference between the total "willingness to pay" of the consumers and the total amount actually paid) (see Figure A7. 1). At the margin, if some of this "spontaneous" demand were not met, a shortage of supply would have an economic cost, since it forces consumers towards consuming less desired fuels, and thus leads to a loss of consumer welfare. Figure At.1: Taxation and Consumer Welfare price consumer Financial Cost surplus of Fuel to Consumer P2 - - - _- /Z Economic Cost of pi Fuel 02 01 demanded quantity 2. There is no reason for society to totally discourage this kind of LPG consumption. 'Spontaneous" LPG consumption should nonetheless be viewed as a luxury good and taxed accordingly. Consumers can spend their income on domestic goods, import goods, and on savings. If a consumer shifts consumption from woodfuels to LPG and kerosene, import expenditures increase. This is undesirable in a society like Burkina Faso which has substantial constraints to develop an export capacity that can match import requirements. 3. The calculation of the economic value of Government policies of LPG and kerosene pronLotion is a different matter. Here it is no longer a question of satisfying "spontaneous" consumer wants, but rather a conscious attempt to promote a switch in consumption. The reason for this must be that the marginal economic cost to society of the substitute fuels is lower than the marginal cost of fuelwood. To verify this assumption, the economic value of fuelwood has to be calculated. This value depends on the type of fuelwood consumption that is replaced - whether it is sustainable fuelwood production or unsustainable production. 92 AneXL-Pt Page 2 of 4 4. As a first step, we can analyze the economic costs and benefits of replacing sustainable fuelwood production, of which there are two kinds: (a) fuelwood produced from managed natural forests and (b) fuelwood produced from plantations. In this report, the economic cost per ton of consumption and the import content (in parenthesis) have been calculated at 272,000 CFAF for LPG (63%), at 185,000 CFAF for kerosene (55%) fl/, at 25,000 CFAF (10%) for "managed natural forests" and at 36,000 CFAF (10%) for plantation fuelwood. Based on the substitution ratios of I ton of LPG = 7 tons of fuelwood, and 1 ton of kerosene - 6.9 tons of fuelwood, we can now compare the average direct onomic cost of fuelwood with the averag economic cost of LPG/kerosene. The result is shown in table A7.1. Table A7.1: Results of Sustainable Fuelwood Substitution (CFAF per ton conswuption of substitute fuels) 4anaged Fuelwood Plantation Fuetwood net econo- net ipct net econo- net mpwct mic value an iaports mic value on imports LPG promotion -77,000 -141,000 0 .134,000 Kerosene promotion: -10,000 . 83,000 67,000 - 76,000 5. As expected, whether it replaces 'managed fuelwood' or 'plantation fuelwood", promotion of LPG and kerosene has a negative impact on the balance of paynients (imports) - per ton of substitute fuel consumed; the net increase in import expenditure is between US$ 253 (kerosene) and US$ 470 (LPG) . As far as the economic value (which has been calculated at the market exchange rate of the CFAF) of the substitution program is concerned, it makes a difference whether the alternative to the program is plantation fuelwood or managed natural forest fuelwood. 'Managed fuelwood' is clearly a more cost-effective form of sustainable household energy supply than either kerosene or LPG. This is not the case for "plantation fuehvood", unless the shadow rate for foreign exchange is set substantially higher than the market rate. Kerosene consumption has a lower economic cost than "plantation fuelwood". The economic cost of LPG consumption is identical to the economic cost of plantation fuelwood, therefore promotion of LPG in this case results in a no win, no lose situation. This result confirms the conclusion of the report, that LPG and kerosene consumption should not be promoted to a point that susainable fuelwood consumption is being replaced. The forecasts for fuelwood demand and for fuehwood supply indicate that sufficient fuelwood is available to cover demand up to the year 2000 in a sustainable manner through natural forest management. Thus during the 1990s, modem fuels need only to be promoted as secondary fuels in households. In addition, we may conclude that if kerosene is a perfect substitute for LPG, it should be promoted as the preferred substitute fuel from both the foreign exchange and the economic cost point of view. 6. The calculations become more complicated when we evaluate the marginal value of modern fuel consumption that is promoted in order to eliminate levels of fuelwood consumption Z/ Economic pnce at the sence station of 142, 000 FCFA plus 30% mark-up at thetail klvel 93 An-x VI Page 3 of 4 that can not be co.verd by sustainabJle suppl. In Burkina Faso, this will be the case for increases in urban energy demand after the year 2000. The objective of this marginal LPG and kerosene consumption is to arrest the decline in woody biomass stock. The welfare reason for this poliy is (a) that a decline in woody biomass stock leads to a reduction in the provision of goods and services from this area, and (b) that it is thought that the value of this loss is greater than the cost of the substitute fuels. 7. The direct and the derived effects of a decline in woody biomass on the national economy and on welfare can be sumarized as follows: (a) A decline In woody stocks will have two direct effects: (i) On-site, as a decline in the biological productivity felt, above all, in the level of sustainable fuelwond production, if fire, overcutting and overgrazing reduce the optimum and natural stocking rates of trees, shrubs and grasses; to a destruction of the soil mande through the loss of vital organic matter and the leaching away of nutrients; and fnally to increased risks for wind and water erosion; (ii) Off-site this environmental degradation makes itself felt through the loss of some difficult to quantify service benefits that include soil and water conservation and climate amelioration. (b) The reduction in sustainable fuetwood production, in turn, will make itself felt at two levels: At the level of fuelwood prices, which will increase sooner or later and at the level of imports, where LPG and kerosene imports have to increase in order to make up for the sustainable fuelwood supply deficit (alternatively, investments in reforestation would have to be made; but these are, as we have seen above, uneconomic). (c) The increase in fuelwood prices will in particular affect the welfare of the low- income urban population, who - in spite of efforts to use energy more rationally - will see the share of total expenditures allocated to fuel increase, resort to self- collection, reduce the number of hot meals and use lower quality fuels. 8. Based on the above, it can be concluded that the economic value of LPG and kerosene promotion in Burkina Faso is the sum of three benefits: (a) The external economic benefits of the environmental value of standing woody biomass - due to the avoidance of increased rainfall runoff, stream siltation, reduced surface water quality, damage to aquatic ecosyste'ns, and water lost to aquifer recharge. (b) By maintaining a sustainable resource base, present day modem fuel consumption reduces enforced increases in the future level of modem fuel consumption, and/or avoids the need to develop new and higher cost sources of fue}wood supply. The value of the promotion program, therefore, is the difference between the net present value of the economic cost of increased LPG consumtion in the short run and the net present value of the economic savings fron a reduced LPC consumption in the Imgfr.nm. The reduction in the future level of LPG production is determined by ' 94 & Y Page 4 of 4 (i) the difference in the annual productivity of managed woodlands and degraded woodlands and (ii) the LPG/fuelwood substitution ratio. (c) The sum of the onsum?a wIiao enjoyed by higher income consumers from the consumption of LPG/kerosene and of the low-income consumers that benefit from the lower long-run level of consumer prices on fuelwood. 9. There is no methodology available today to estimate the environmental and the consumer surplus benefits in a satisfactory manner. The second benefit is easier to estimate. On average, standing forest volume per ha in Burkina Faso is around 125 m' (= 10 tons) and annual productivity is around 0.83 m3/ha (= 0.66 ton). For managed forests, the productivity figure will be higher; in the case of degraded woodlands it will be lower. But since this figure is not known, the 0.83 m3 figure is used as a proxy for the difference in their levels of annual productivity. Since I ton of LPG replaces about 7 tons of fuelwood, its consumption protects the existence of 7/10 hectares of forest, able to sustain level of future fuelwood consumption of 0.46 tons per year. As a result of the higher level of sustainable supply, future annual LPG consumption can be 0.066 tons lower. Over a 30 year period, this will lead to a total savings of 2 tons of LPG consumption. The internal rate of return of this investment is 5.1 per cent. If the additional benefits environmental and consumer welfare were taken into account, the rate of return would be higher. This confirms the conclusion that LPG, after the year 2000, should be promoted as the dominant urban household fuel. 10. Expressed in monetary terms, the value of LPG and kerosene consumption which ediminates excess fuelwood consumption is as follows: in the first year, the net economic loss of 1 ton of LPG consumption is 77,000 CFAF and the increase in imports 141,000 CFAF. The lower level of future LPG imports permits annual savings of 5,100 CFAF in the net economic cost of supply and of 9,300 CFAF in imports. ^ 95 A Page I of 2 DEFINING A SUSTA IABLE PRICING POLUCY 1. A strategy for a pricing policy which is sustainable in the long term is outlined in figures A8.1 and A8.2 below. At the first planning step, energy planners must evaluate the level of woodfuel substitution needed at some future date to reduce woodfuel consumption to a sustainable level. In figure A8.1, the assumption is made that a 75% penetration rate for modem fuels is needed in urban households by the year 2000. The seond step is to evaluate what relative price level (on a useful calorie basis) is needed between the substitute fuels and woodfuels to achieve this rate of penetration. This question is not easy to answer aLiQr. although vwillingness to payr surveys can provide a tentative answer. The experience from one countty will not necessarily be applicable in another country. In one West Afican country, LPG replaced kerosene as the dominant urban household fuel, although the price of kerosene was a third lower; in another West African example, the price of LPG in the mid-1980s was on par with that of charcoaL and still LPG was used only as the secondary household fueL 2. The needed price relationship depends, inter-alia, on the average level of income in the countty. In the low income country of figure A8.1, LPG will reach the wanted rate of penetration at a price that is 80% of the woodfuel price; in the medium income country it will reach this rate even though LPG is 30 per cent more expensive. 3. The third step in the analysis is to identify the mix of increases in woodfuel prces and subsidies to modern fuels that are needed to gradually bring about the wanted change in relative prices. Figure A8.2 illustrates the case of a country at the beginning of the fuel cycle, where modern fuels have a higher price than woodfuels. Market forces alone will not bring about a sufficient change in the relative prices: the increasing scarcity of woodfuels leads to an upward pressure on prices, but the price of woodfuels in the year 2000 will still be lower than the cost of the substitute fuels. 4. The policy mix is based on two justifications: (a) Because of the existence of economies of scale in maritime transport and in the bottling of LPG the long-run marginal cost of LPG is lower than its cost at the beginning of the consumption cycle: As consumption grows toward the year 2000, the economic cost of LPG declines. A subsidy on LPG can be introduced in the year 1990 to bring the year 1990 consumer cost in line with the long run cost of supply. The subsidy can be decreased in line with falling costs and be phased out completely in the year 2000, when it is supposed, that the economies of scale are exhausted. (b) Taxes on woodfuels (e.g stumpage fees and transport fees) should only be increased gradually, for both social and practical reasons. It takes time to put efficient control mechanisms into place. Until then, high rates of taxation will encourage corruption and increase the rates of return on uncontrolled black-market production. If this policy is implemented, the relative price of modern fuels changes graduaLly to reach the 0.8 ratio needed for the year 2000. -96- Annex VIII Page 2 of 2 Figure A8.1: Relationship between the Rate of Penetration of Substitute Fuels and the Relative Price of Substitute Fuels to Uoodfuels Price of modern fuels relative to woodfuels 1.4- 1.3 medium income 1.2 country 1.1 1.0 0.8 - - - - - - - - - - Low income 0.7 country lOX 25% 50% 75% 100% Rate of penetration of modern fuels in urban households Figure A8.2: The mix of Decreasing Subsidies on Modern Fuels and increasing Taxes on Woodfuels that is needed in Order to Obtain the Desired Ratio of Relative Prices in the Year 2000 CFAF per MJ of useful energy Pm …… - - - - - - - Level of 1990-subsidy _ needed to align market Economic Cost price uith LRMC ofLG LP Level of taxes on woodfuel - market price of wdOuel including tax Pw Free market price of woodfuel 1990 1995 2000 Year - 97 A= Page 1 of 3 LEGAL TEXTS Decret du 23 octobre 1904 relatif au domaine public et aux terres domaniales (JORF du 26 octobre 1904, p. 6344 A 6345). D&cret du 18 juin 1912 sur l'exploitation des forets de la Cote d'lvoire (JORF du 21 juin 1912, p. 5477 A 5480). Decret du 29 septembre 1928 r6glementant le domaine public et les servitudes d'utilite publique en Afrique occidentale frangaise (JORF du 31 octobre 1928, p. 11609 A 11610). D6cret du 26 juillet 1932 reorganisant le regime de la propriete fonciere en Afrique occidentale frangaise (JORF du 2 ao(tt 1932, p. 8451 A 8460). DMcret du 4 juillet 1935 fLxant le regime forestier en Afrique Occidentale Frangaise (JORF du 7 juillet 1935, p. 7289 A 7293. JOAOF du 3 ao0t 1935, p. 611 - Rectificatif JOAOF du 14 septembre 1935,p. 723). Complete par le D6cret du 12 avril 1954 (Article 23 bis) (JOAOF du 8 mai 1954, p. 844). Afrete G6n6ral No 2195 S.E. du 28 septembre 1935 definissant la limite Sud de la zone sah6lienne et r6glementant l'exploitation des forets (JOAOF du 12 octobre 1935, p. 797). Complete en son Article 6 par l'A.G. No 3782 S.E. du 15 novembre 1938 (JOAOF du 26 novembre 1938, p. 140). ModifMl en ses Articles 4 et 10 par i'A.G. No 3929 S.E. du 2 novembre 1942 (JOAOF du 14 novembre 1942, p. 999). Modifi6 en son Article 9 par I'A.G. No 794 S.E. du 27 fevrier 1946 (JOAOF du 9 mars 1946, p. 287). D6cret du 12 avril 1954 compl6tant le D&-ret du 4 juilet 1935 (JORF du 16 avril 1954, p. 3715). Arr6td G6n6ral No 3782 S.E. du 15 novembre 1938 r6glementant les exploitations industrielles de bois de feu ou A charbon (JOAOF du 26 novembre 1938, p. 1401). Voir Arrete General No 2195 S.E. du 28 septembre 1935. Arrete G6n6ral No 3929 S.E. du 2 novembre 1942. Voir Arrete General No 2195 S.E. du 28 septembre 1935. Arr&t6 G6n6ral No 794 S.E. du 27 fevrier 1946. Voir Arr&t6 Gendral No 2195 S.E. du 28 septembre 1935. ArrWe G6neral No 5307 P. du 9 d6cembre 1946 portant repartition du produit net des amendes, confiscation, restitutions, dommages-inter6ts, contraintes et transactions en matiere de police forestiere (JOAOF du 24 decembre 1946,p. 1527). Modifie en ses Articles 1 et 3 par l'A.G. No 3619 S.E. du 27 juin 1951 (JOAOF du 7 juillet 1951, p. 991). - 98 An IN Page 2 of 3 Arretf6 No 1762 S.F. CHI. du 30 d6cembre 1948 tlant certaines conditions d'application du D6cret du 4 julllet 1935 sur le r6gime forestier et r6gementant l1exploitation et la circulation des produits forestiers sur le territoire de la Haute-Volta (JOCI du 1 fevrier 1949, p. 88 A 92). Modifi6 en son Article 12 par lArret6 No 546 APAS du 21 aofXt 1953 (JOCI du 15 septembre 1953, p. 887 et 891). Arr&te G6n6ral No 3619 S.E. du 27 juin 1951. Voir Arrete G6n6ral No 5307 P. du 9 d6cembre 1946. Arret6 No 10 A.P2. du 10 janvier 1952 (taux des redevances d'exploitation forestibre) (JOCI du I f6vrier 1952, p. 86). Arrft6 No 546 APAS du 21 aoOt 1953. Voir ArrOtd No 1762 S.F.CH. du 30 d6cembre 1948. Det No 55.582 du 20 mai 1955 relatif A la protection des forets (JOAOF du 11 juin 1955, p. 1004 A 1006). Ddh1,ration No 18.59/ACL du 5 fevrier 1959 (taux des redevanes d'exploitation forestiere)rendue excutoire par Arrete No 66/PRES du 11 fWrier 1959 (JORHV du 16 mars 1959, p. 201 et 202). Arrete No 1068/MF/MET du 1 juillet 1980 relatif aux taux de redevances d'exploitation forestiere (bois de chauffage, de service, d'oeuvre, charbon de bois, permis). Modifi6 en son Article 3 par le Rectificatif du 7 avril 1981. Rectificatif A I'article 3 de l'Arret6 No 1068/MF/MET du 1 juillet 1980 relatif aux taux de redevances d'exploitation forestiere. Ordonnance No 81-0012/PRES/MET du 3 juin 1981 portant interdiction des feux de brousse. Airrt6 No 326/MF/MET du 9 avril 1982 portant bar6me des prix des produits issus de la foret naturelie et des plantations forestieres. Ordonnance No 83-021/CSP/PRES/DR du 13 mai 1983 portant statut des societs cooperatives et des groupements vilUageois en Haute-Volta. Ordonnance No 84-050/CNR/PRES du 4 aoOt 1984 portant reorganisation agraire et fonciereau Burkina Faso. Decret No 85.144/CNR/PRES/ETOUR du 6 mars 1985 portant r6eglementation de 1'exploitation du bois de chauffe et du charbon de bois au Burkina Faso. Lettre No 317/MET/CAB/SG du 29 avril 1985 (objet: application des mesures relatives A la sauvegarde et A la consolidation de 1'environnement). Directive provisoire No 85-006/CNR/SGN-CDR du 8 mai 1985 relative A la d6livrance des certificats provisoires d'agr6ments populaire aux d6biteurs, grossistes-transporteurs et d6taillants de bois de chauffe et de charbon de bois. . 99 -A Page 3 of 3 Circulaire A application provisoire No 33/CNR/MTC/CAB du 9 mai 1985 (frxant les normes techniques des vdhicules habilit6s I transporter le bois A usage domestique). Note No 468/CAPRO/DGP/DFPC du 10 mai 1985 (fixation des prix du bois de chauffe issu de la foret natur.4e et des plantations forestibres). Circulaire No 570/CAPRO/MET du 15 mai 1985 portant fixation des prix provisoires du bois au Burkina Faso. Circulaire MET/CAPRO (qui prend effet pour compter du 1 juin 1985) portant r6glementation provisoire de l'exploitation de bois et du charbon de bois au Burkina Faso. D6cret No 85-404/CNR/PRES du 4 aott 1985 portant application de la r6organisation agraire et fonciere au Burkina Faso. Circulaire No 526/MET/CAB/DAFR du 11 juillet 1985 (application des nouvelles mesures sur l'exploitation forestiere). Ordonnance No 47/CNR/PRES du 29 aollt 1985 portant r6glementation des feux de brousse, de l'exploitation du bois de chauffe et du charbon de bois et de la divagation des animaux domestiques. Raabo No 12/MET/CAPRO du 11 juin 1986 portant suspension de la mesure sur la fermeture de la compagne d'exploitation forestiere au Burkina Faso. Raabo No 14/PRES/MET du 18 juin 1986 portant r6glementation du transport du bois et charbon de bois au Burkina Faso. Raabo du TRANS du 8 janvier 1987 portant institution des cahiers de charges du transporteur public burkinab6. Zatu No AN.IV/023/CNR/TRANS du 6 fevrier 1987 portant organisation des transports routiers au Burkina Faso. Kiti No AN.IV/264/CNR/TRANS du 6 fWvrier 1987 portant reglementation de la profession de transporteur au Burkina Faso. Kiti No AN.IV/265/CNR/TRANS du 6 fWvrier 1987 (transport routier). Raabo No AN.V 47/CNR/BUD/REFI/ET du 24 aoft 1987 portant cr6ation d'un Ponds d'Equipement Forestier. Recueil des textes applicables aux groupements d'int6rt 6conomique du Burkina Faso. - 100- Annox Page 1 of 42 URBAN FUELWOOD SUPPLY STRATEGIES A. Ouagadougou 1. Principal fuelwood resources in the supply zone. Fuelwood comes into Burkina Faso's capital from the four major sources listed below. (a) land clearing and wood cutting operations in the remnants of the previously uninhabited, Onchocerciasis-infested woodlands on both sides of the Nakabe (White Volta) River east and southwest of Ouagadougou. Most of these woodlands are being cleared by uncontrolled in-migration of farmers and by AW development projects. Access is via the Ouagadougou-Niamey road and by the Ouagadougou- Po road; (b) from managed and unmanaged natural forest lands adjacent to the Kabore Tambi National Park (this area includes the Foret Classee de Nazinon where the FAO/BKF Project is operating). Access to this area is gained via the Ouagadougou-Po road and the Ouagadougou-Leo road; (c) from domaine prtege- woodlands in the Bouyounou-Kassou area accessed via Sabou on the road to Bobo-Dioulasso; and (d) from a wide variety of small scattered areas that are under an extended fallow or that could be classified as degraded woodlands. 2. Because of their distance from Ouagadougou, wood from the first three sources is transported almost exclusively by medium and small capacity trucks. Donkey carts, bicycles, pedestrians, and pickup trucks are the primary means of transport of fuelwood coming from the fourth source (which is usually at distances of less than 50 km from the city center). 3. The portion of the zone accessed by the road to Bobo-Dioulasso actually overlaps and competes with wood supply sources for Koudougou (over 100 km away). Within the next 5- 10 years, all of Koudougou's supply zone will probably overlap with Ouagadougou's. This will occur as the latter city's demand grows and relatively easy access afforded by the road system around Koudougou allows wood merchants to travel farther afield. 4. Preliminary estimates indicate that the Ouagadougou-Koudougou supply zone had about 5.8 million tons of standing volume in commercial fuelwood species. This gSlwing stock is on 1.5 million hectares of N, F, and M class lands scattered throughout the supply zone and does not include Kabore Tambi National Park. Annual growth, or the amount of wood potentially available for fuelwood removal on these lands, was estimated at 514,000 tons, an amount barely sufficient to satisfy the two cities' needs (under the average population growth assumptions) in the year 2000. Land clearing by that date, however, is apt to have eliminated significant amounts of the remaining natural forest land, unless it can be controlled. Although there is still some potential for Ouagadougou to continue to expand its supply zone beyond the area mapped, there are clearly limits to the extension (e.g., the Ghana border). - 101 - Page 2 of 42 0[= I ag 5. The vast majority of the fuelwood supplied to Ouagadougou comes from unmanaged lands. Less than 10 percent, by one estimate, comes from managed woodlands. The Nazinon National Forest (22,000 ha of natural forest) and about 9,000 ha of planted exotic species elsewhere represent the total area of forest land currently under management in Burkina Faso. Using the median 1990 consumption estimates, this means that more than 170,000 tons are coming from sites where there is little or no concern for sustainable production. With the Government behind the effort to organize wood producers into cooperatives, there is now more of an economic incentive for local populations to have woodlands under a sustainable production plan. Two instances where this is already happening in the Ouagadougou wood supply zone are discussed below. 6. lb2 BKF Project. The FAO effort, (Projet BKF/85/011, I'Am6nagement et Exploitation des Forets pour le Ravitaillement de Ouagadougou en Bois de Feu) has organized, in its two years of operation, 19 or more forest management cooperatives (with about 500 total members) to be directly involved in the management of 22,000 ha in the Nazinon National Forest. Rotation age for the fuelwood growing in this forest (located in the tall grass savannah zone) has been initially set at a very conservative 20 years. Fifty percent of the standing volume is removed during the first cut. 7. Wood cut by the cooperatives is sold to the transporter-wholesalers at the official producer price of 1610 CFAF per stere. This is collected by a BKF Project clerk from the transporter at a fixed point as the vehicle exits the operational cutting zone. Tax receipts are returned to the government and the cooperatives paid according to the number of steres cut. The cooperative's operating fund monies are used at the discretion of the cooperative. The forest management fund is used to hire cooperative members for forest management activities (road construction and repair, controlled burning direct seeding, etc.). Project documents indicate that actual management costs to date have been covered by the 500 CFAF/sterecollected from fuelwood sales. 8. Ten other groups have also been formed by the BKF Project and are cutting dead wood on domaine protege lands near Bouyounou. The Project has recently been extended and there are plans to brmg a large contiguous block of 20,000 ha of natural forest lands under management in this area. Wood transporters are already entering this area through Sabou and are paying the official 1610 CFAF/stre price. 9. Two additional projects, currently in the planning stage, are also aimed at managing fuelwood resources on domaine proteg lands to the west and south of Ouagadougou. These are to be funded from outside sources and will be modeled after the BKF Project experiences. 10. Other organized harvesting efforts. A number of other woodcutter cooperatives operate within the supply zone. A particularly large one near the village of Zarsin, just east of Kombissiri is very well organized with members from about 10 villages. It has benefitted from its proximity to the Ouagadougou fuelwood market and used its operating fund monies to purchase a tractor and a wagon. It has also just obtained a bank loan to purchase a truck. This group issues the transport permits to the transporters and collects the fuelwood tax for the Forest Service. T he group has been known to report transporters who collect or purchase wood illegally. Wood is sold - 102 Page 3 of 42 at the official producer price leaving 1310 CFAF/stere for the woodcutters and the cooperative's operating fund. 'Mere is no management fund, nor are there any planned and implemented natural forest management activities. The group has harvested wood on villages or lands that don't belong to the cooperative. Left unchecked without a plan, this is a situation which could easily lead to serious inter-viOlage conflicts. 11. It has been reported that the Forest Service provincial director in Ganzourgou, East of Ouagadougou, has recently begun collecting 800 CFAF for each staretransported. The fuehvood tax accounts for the first 300 CFAF of this amount and the other 500 CFAF is destined for forest management activities that have yet to be instigated. Priority Areas for NFM in the Ouagadoueou Supply Zone 12. Six areas within the present Ouagadougou supply zone have been designated as priority areas for natural forest management. They are delineated on the Ouagadougou forest cover maps. They are labeled with Roman numerals I through VI. The areas were identified according to the criteria outlined in Chapter VI for selecting priority zones and following discussions with provincial directors and other knowledgeable Forest Service staff. 13. Priorit Area la. lb. The first priority area (Ia and Ib) has been the source of a considerable volume of Ouagadougou's fuelwood. The transport distances into the city are relatively short (50-60 ktm), over an excellent paved road. These two factors combined with unchecked land use changes dictate that management of the remaining forest lands in this priority area should begin immediately. 14. The area delineated on the map (61,200 ha) has been subdivided in two. This was done primarily to distinguish between forest cover types. Area Ia is predominantly natural forest under cover classes N and F with a small portion in plantation (P). Most of this area falls within the official boundary of the Waye National Forest. This fact should make it relatively easy for the Forest Service to bring it under control and establish a management plan. Baseline data should also exist on the area, although it should be checked and updatedL 15. Area Ib, immediately adjacent to Ia, is comprised primarily of lands under the J-C cover class. These are old fallow and wooded laterite plateau areas that were either never suited for agriculture, or have since been abandoned in favor of more productive agricultural land. They represent a considerable resource (39,000 ha) close to Ouagadougou and one where uncontrolled wood removal still continues. A management scheme with good protection and regeneration, combined with soil and water conservation activities, will make it more productive over the long term. 16. Standing volume of commercially usable fuelwood on natural forest lands with the N, F, and M classes is calculated as 74,208 tons for Areas Ia and lb. This figure is based on volume estimates made by Cameratti (1983) and adjusted by the fuelwood assumed to be available in each cover class. These estimates do not include the plantations growing in Area Ia (4,100 ha), nor the wooded fallow/laterite areas (39,700 ha) in Area lb indicated on the Ouagadougou supply map. Assuming that all wood in the commercial plantations contains a volume similar to the N class - 103 - Page 4 of 42 designation and conservatively estimate that the J-C cover classes contain 25% of the estimated volume per hectare, another 53,000 tons of growing stock material can be added, for a total standing volume estimate of almost 180,400 tons. 17. Potential total growth from N and F class land (17,400 ha) on Area I is estimated at 7,350 tons/year, although this would not all be available, under a management plan. Assuming that cover class and areas have remained the same since the satellite imagery was taken (1987), some hypothetical projections about fuelwood removals in a managed and protected area are possi'ble. For Area I, the management scenario gives an estimated 4,100 tons of fuelwood that could be removed in the first year. If management were started today, removals from the N and F areas would grow to almost 6,900 tons/year by the year 2000 (e.g., in 10 years), and to more than 8,400 tons/year by 2005. The commercial plantations and the old fallow/laterite areas are also not included in these fuelwood yield estimates which appear. These two cover classes area significant part of the priority area. Protecting and managing them for fuelwood will also add to available yield estimates. 18. Priority Area II. Priority Area U is almost totally within the White Volta National Forest, an area that was essentially removed from the Forest Service's jurisdiction and put under the AW river basin authority for development. Discussions with MET personnel indicate that the future of AW is very uncertain and that AW lands may be reassigned to existing ministries. The Forest Service needs to act quickly to consolidate the remaining woodlands of the White Volta National Forest and to bring them under management. 19. The satellite imagery of 1987 indicates that a large part of the lands falling inside the ooundaries of the national forest have been cleared. Most of the remaining forest land in the forest and in Area U is in either the N (29,700 ha) or the F (24,200 ha) cover class. A small portion (4,600 ha) is in the M class. Control of the current land clearing activities in the area should be an initial activity once the Forest Service re-establishes the forest boundaries. Staff should also take steps to ensure that any wood from cleared areas is fully captured for the urban market and not otherwise destroyed. Like Area I, this area is also within a relatively short distance of Ouagadougou (60-70 km) and accessible by the Ouagadougou-Po road or the Ouagadougou- Niamey road. These facts, its classification as a national forest, and the relatively good condition of the remaining forest land make it a logical choice for early efforts to bring it under management. Total standing volume for Area II in the N, F, and M classes is estimated as slightly more than 283,000 tons. These lands have an estimated annual production potential of 24, 710 tons of fuelwood per year. 20. The scenario for Priority Area 1I in the Ouagadougou supply zone assumes all 58,500 ha of these natural forest lands could be put into a management plan. Estimated yield the first year with 50% of the standing volume removed, would be about 15,700 tons. If protected and managed for fuelwood, annual yield after 10 years could be as much as 25,000 tons. 21. Area III is part of the proposed buffer zone for the Kabore Tambi National Park Development of a management plan focusing on fuelwood production and protection activities can benefit the future of the Park. As a buffer it would prevent uncontrolled land use right up to the Park border as well as providing for contin -ed use, sustained fuelwood production and a livelihood for the surrounding villages. This area has significant amounts of N classed land (35,500 ha) and smaller amounts of M (7,800 ha) class lands. The supply map also shows a fairly large strip (12,100 * 104 Page 5 of 42 ha) of old fallow (J class) land. The whole area is readily accessible to transporters from the Ouagadougou-Po road, or from the Ouagadougou-Leo road. The 43,300 ha of natural forest are estimated to have a standing velume of 243,888 tons. Based on productivity estimates from Clement (1982), these lands have an estimated annual production of 23,000 tons of fuelwood per year. The 12,100 ha strip of fallow lands identified on the supply map is also capable of producing fuelwood. 22. The data analysis of the management scenarios for the city's Priority III area estimates that an additional 7,200 tons of fuelwood/year might be available from the fallow lands. This assumes that J class lands contain 25% of the estimated average volume (3.1 m3/ha) for natural forests and have 90% of their growth in comnmercial fuelwood species. Management and protection would not only increase available yields over time, but result in an upgraded (cover class) and healthier forest as well. This area is also well within the grass savannah zone which means that fire control will have to be an important management activity. The experience being gained by the BKF Project in Nazinon regarding controlled burning should be applied here as well. 23. Priority Areas IV. V. VI. The last three priority areas are the least populated and contain vast areas of natural forest within the domaine proteg. In-migration and land clearing, however, are rapidly decreasing these forest areas. They also tend to be the farthest from the market, or the least accessible. The Ouagadougou-Leo road, although classed as one of the primary roads in the country, has fallen into severe disrepair. Any improvements made on this route would make larger areas of fuelwood resources (primarily area VI) immediately more accessible. If this happens the priority for managing this area would be much more critical. These three areas (IV, V, and VI) encompass 85 percent of the N, F, and M class lands (695,300 ha) within the priority area established for the supply zone (but only 2 percent of the degraded and old fallow lands). They also contain 87 percent of the annual production potential that could service Ouagadougou's energy appetite. They are lower on the list simplv due to the priority area selection criteria. 24. The 18,600 ha of N classed land near Bouyounou (priority area IV) is higher on the list due to its accessibility and the fact that it is still uninhabited. A good quality dirt road into the area means that transporters are more apt to search for wood here rather than travel over the riskier road surfaces leading into priority areas V and VI. The BKF Project has already started organizing woodcutter groups in this area and has recently received an extension of its mandate to include this Li its management area portfolio. 25. Three forest management projects are underway or planned within or near this area. (This includes extension of the BKF Project into the Bouyounou area.) All three projects will attempt natural forest management within the domaine proted. something which has not yet been done. Additional Management Factors 26. The pilot project zone delineated on the Ouagadougou wood supply map presents important tnanagement alternatives for fallow and degraded lands (Classes J, C, and J-C on the map) close to the city center. Wood supplied to Ouagadougou from these areas appears to be significant, entering, uncontrolled, into the city in small quantities on foot, by bicycle, and in donkey carts. Tlese lands offer an important technical challenge for resource managers and a tremendous economic opportunity for villagers living in the zone. It is designated as a pilot because the cover types it proposes to work within are very typical of areas surrounding the other three large cities 105 AGDeLx Page 6 of 42 in the country. It is also similar to priority Area lb. The pilot project zone is much closer (in contrast to the more distant natural forest area) and lies entirely within donkey cart transport distance. Members of a management cooperative in this area would not only be able to receive the producer price for any surplus fuelwood produced, but also bypass the middlemen and sell directly in the Ouagadougou retail market. With official prices of 4320 CFAF/stere (unofficial price is about 7000 CFAF/stere) there ought to be tremendous incentive to the development of sustainable fuelwood supply in this area provided any existing land and tree tenure issues are resolved in the management plan. 27. Local participation, as mentioned previously, is the key to ensuring the implementation of any fuelwood supply strategy. The local population must have a vested economic interest in the resource if it is to be maintained for the long term. There are a number of positive initiatives with local participation in organizing fuelwood marketing within the Ouagadougou wood supply zone. Cooperatives formed at Nazinon are already receiving direct monetary benefits from the wood cutting and forest improvement activities. There needs to be a more formalized arrangement, however, which will insure the control and use of the forest management fund after the BKF Project leaves. This is critical if the long term sustainability of the forest is to be maintained. 28. The large cooperative at Zarsin is also providing tangible benefits to its members. As mentioned above, however, this has often been at the expense of non-member villages. The group does not however occupy itself with forest management, nor is there any fund set aside from fuelwood sales to do so. Separate groups for each village under the umbrella of the larger cooperative would allow for more equitable participation and benefits distribution. At the same time a management fund also needs to be established, forest resources need to be mapped, and a management plan developed. B. g 29. Principal fuelwood resources in the supply zone. There are three principal areas which supply fuelwood to Koudougou. The major supply zone is the old fallow and laterite areas within a 40 km radius of the city. It is estimated that up to half of Koudougou's fuelwood comes form this area. Surveys indicate that almost a third of all wood entering Koudougou is brought in by pedestrians, while half comes in by truck from greater distances. The remaining quantity (about 17 percent) arrives by bicycle cr donkey cart. 30. A second supply zone is the string of nine national forests (see the Koudougou supply map) located along the Mouhoun River to the west and southwest of Koudougou. Most of these forested lands are rapidly being encroached upon by farmers. Sections of the Tiogo National Forest on the Dedougou road are being exploited by organized woodcutters' groups (one of which is a women's precooperative). Because the Mouhoun serves as a natural barrier to transporters, most of the fuelwood removals are from the eastern side of the river. Wood from the national forests of Baporo and Laba, located on the Ouagadougou-Bobo-Dioulasso road, is collected by wood merchants from both Ouagadougou and Koudougou. Other forests between Bapora and Tiogog are much less accessible and are largely outside the supply zones (for either city). Tey are, nevertheless, being invaded by farmers seeking arable land to cultivate. The third, and most distant, area is the domaie rot= lands that are shared with Ouagadougou consumers in the Bouyounou ^ 106 Page 7 of 42 area. An excellent road system allows easy access to these areas for the larger trucks that transport the wood. This area was previously de! -rtbed in Ouagadougou Priority Areas IV and V. Current Fuelwood Management 31. There are no formal attempts at fuelwood resource management that resemble the efforts in the Ouagadougoui supply zone. A MET/The United Nations Sudano-Sahelian Office (UNSO) project has recently employed a forest manager to direct the development of management activities for the Tiogo National Forest. This action is significant as it marks another "first step' in planned activities for a government-controlled forest. The initial plan calls for a much more participatory approach and the formation of management cooperatives with people from villages surrounding the forest. 32. There are a small number of woodcutter groups operating within the supply zone. These groups sell their wood to transporters at the official producer price (1610 CFAF/stere). The cutting tax accounts for 300 CFAF of this amount and the group also receives 200 CFAF for its operating fund. The woodcutter receives the balance (1110 CFAF); there are no monies set aside for a management fund. As groups become organized in the Tiogo Forest, the forest manager needs to insure that a forest management fund is set aside. These monies could in turn be used to employ cooperative members to do the required management activities in the forest. 33. The fuelwood market in Koudougou is not dominated by a large number of wholesaler-transporters, as is the case in Ouagadougou. There are only 11 officially registered motorized fuelwood transport vehicles for the whole city and, according to Yameogo (1989), the number of wholesaler-transporters who regularly transport firewood is declinin& The current number is probably adequate for the small demand. Consumers pay for their wood at the officially established retail price of 4320 CFAF/stere. The large quantities of wood brought into the city "unofficially", on bicycles, on headloads, etc. can sometimes bring a premium price approaching 6000 CFAF/sttre. These higher prices are most likely to occur when motorized transporters have not been able to bring in wood, thus creating temporary shortages which drive up the price. 34. Fuelwood prices higher than those fLxed by government legislation, however, are usually an exception in Koudougou. The official wholesale price received by truckers is thoroughly enforced. This is the probable explanation for the decrease in the number of motorized transporters: the official price has not changed since 1985 while inflation, transport distances, etc. have definitely increased. Priority Areas for NFM in the Koudougou Supply Zone 35. Koudougou's lower population (about one-tenth the size of Ouagadougou) and the much slower rate of growth means that fuelwood demand is less and will remain relatively low. Consequently a much smaller area is needed to furnish Koudougou's fuelwood needs over the next ten years. Three areas have been identified as priority areas for natural forest management. 36. E&ritArea I. The first area is the Tiogo National Forest located about 50 kn from the city and accessible by a good gravel road. As mentioned above, UNSO, providing assistance to the MET, has already employed a forest manager to develop management activities for the forest in consort with the surrounding population. Controlling land clearing inside the forest's northern boundaries will be a preliminary hurdle. A plan based on a good map of the - 107 - Page 8 of 42 forest and intended uses of various parts of the forest needs to be formulated by the provincial Forest Service staff with cooperative groups. 37. Much of the forest is still in good condition and over half of the total land area (18,800 ha out of 26,900 ha) is in the uninhabited N class. This factor, coupled with the excellent access and the fact that it is already under Forest Service jurisdiction, made it the logical choice to be the number one priority in the Koudougou zone. Total standing fuelwood volume for the whole priority area is estimated to be 141,900 tons (Table 6.2). Average annual growth on N, F, and M class lands within this area is estimated as 14,300 tons (Table 6.3). This is roughly equivalent to 80 percent of Koudougou's projected demand for 1990. Managing and protecting these lands specifically for fuelwood will increase this amount and make the forest more productive over the long term. 38. The management scenario (see Koudougou, Priority Area I) indicates that fuelwood yield from one 1,800 ha compartment on the forest would yield 7,800 tons of fuelwood in the first year, if one-half the volume were removed. Under management and protection, the trees on the same size compartment will grow to yield as much as 16,200 tons after 15 years. 39. Priority Area II. The second priority area also encompasses Government-controlled lands: the Baporo and Laba National Forests. The Forest Service needs to exercise its jurisdiction over these lands and control the land clearing activities that are seriously threatening the long term forest productivity of the area. It is a situation similar to Area I: the forest is in good health overall, but without a rational plan for protection and development, the resource will quickly disappear. The excellent access afforded by the paved national highway between Ouagadougou and Bobo-Dioulasso already attracts wood merchants from both Ouagadougou and Koudougou. Reports and observations suggest that wood from the land clearing is not being wasted, but the supply under these conditions is not sustainable. Management of the forests and the fuelwood removals will insure a long term source of income for the small population of people in the area and funding to cover management expenses. 40. This area, approximately 20,000 ha, contains roughly equal amounts of N, F, and M class lands according to estimatUs obtained from the Koudougou cover type map. Standingvolumes are estimated to be about 78,600 tons and the overall annual production from all three cover types is estimated at almost 11,000 tons. There are no plantations (P class) or fallow/laterite (J, C class) cover types in Priority Area II. Rainfall in this area is fairly good (850 mm/yr) increasing the chances for better regeneration from harvesting operations. The management scenario for Priority Area II lists the fuelwood yield on managed compartments to be 4,300 tons in the first year. Following 15 years of management and protection, the fuelwood harvest on the same size area would increase to almost 16,200 tons. 41. Priority Area III. The third priority area for Koudougou is an area of about 52,000 ha within a 40 km distance north of the city (see the Koudougou supply map). A substantial portion of the area outlined on the map is cultivated (0 cover class). There are also equal parts of fallow and ironstone lands (J and J-C cover classes) and some natural forest with the M cover class designation (27,500 and 24,100 ha respectively). Standing volume on the M class natural forest land is estimated as 47,700 tons. Annual growth from the M class lands alone is estimated to be almost 11,500 tons. Fuelwood yields that could be expected from a 3,440 ha managed compartment in this area would be 4,900 tons in the first year; after 15 years with protection and management, yield from a compartment could be as high as 17,600 tons. 108 Aaana Page 9 of 42 42. Half of the wooded lands in Priority Area III are on old fallows. Due to previous community land use on these areas, a management system different from that which can be applied to natural forest areas will have to be used. In this example the community defines the land use priorities on their lands. MET staff professionals then adapt resource management activities to these priorities, focusing first and foremost on the profitability aspects for the local community. 43. Two additional sites, each having lower priorities than the three mentioned above, also fall within Koudougou's supply zone. They are the areas shared with Ouagadougou and designated as Areas IV and V for both supply zones. C. BoQ-Dioulasso 44. Principal fuelwood resources in the Bobo-Dioulasso supply zone. Supplyingfuelwood to the city's population is not the critical problem that it is in the other three cities. The higher rainfall, fewer people on the land, and a generally larger area of nearby natural forests means that the overall supply situation is much more resilient that the situations that exist in the other three urban areas. Consumers also have the luxury of being much more selective in terms of the species they burn for fuel. Although exact quantities are undetermined at present, considerable amounts of the current wood consumption arrive by foot and by bicycle from areas close to the city center. Donkey carts capable of transporting up to two steres per trip also transport substantial quantities of wood from areas within a 25 km radius of the city. 45. Donkey carts and all motorized transporters are required to be registered with the Forest Service. These registered suppliers transport wood to Bobo-Dioulasso from three areas: all three are connected with the city by good (paved or laterite) road systems (see the Bobo-Dioulasso supply zone map). The largest area lies to the east and southeast of town and is serviced by both the Ouagadougou road and the road serving the Kelesso region. Another, smaller supply area is reported to the northwest of the city in the region just to the east of Koundougou in an area bordering the Tere National Forest. The third is in a hilly region adjacent to (and just north of) the Bobo-Banfora road. Accessibility in this latter region is reported to be a major obstacle, consequently relatively little wood enters from this area. 46. Wood from all three regions is usually transported at distances ranging from 35 to 65 km, substantially less than the motorized supply routes for Koudougou and Ouagadougou. Other rouites also supply some fuelwood, but road conditions are the primary limiting factor. The main road through Satiri to the Maro National Forest is a good example. Even though there are substantial amounts of wood available here (from land clearing activities in the forest), the Satiri road is in such disrepair that it discourages many transporters from trying to haul fuelwood back to Bobo-Dioulasso. Government policy makers should develop a plan for utilizing wood from land clearing operations in the event that transporters don't bring it to Bobo-Dioulasso. 47. Unless road conditions are improved in many areas of the supply zone the majority of the wood will continue to come from the most accessible sites, at least for the foreseeable future. This means that most of the pressure for fuelwood resources will remain on the first area discussed above and on the old fallow and degraded woodlands closest to the city limits. - 109 - Ane x Page 10 of 42 Current Fuelw_od Manage-ment 48. Very little effort has been expended to manage the fuelwood supply chain in Houet Province. Two or three producer groups do operate, but very little has been done to encourage their organization or focus on forest management. In Satir, for example, group members act simply as middlemen. They buy wood from people in the region at the best price they can obtain and then sell it to the wholesaler-transporters. In Taga there is a producer group, but each member sells his own wood with no obvious advantages of belonging to the organization. 49. It is the wholesaler-transporters who represent the best organized part of the fuelwood chain into Bobo-Dioulasso. The wholesaler-transporters pay the fuelwood tax in the province, contrary to other urban supply zones where the woodcutter (or the producer group) pays. Some of these wholesaler-transporters are even able to maximize their advantage further by sellng door-to-door in the city. 50. Other than registering wood transporters and collecting fuelwood and transport taxes, the Forest Service does little to manage fuelwood resources in the region. A stronger emphasis on natural forest management is definitely needed in the province including more aggressive enforcement of the recent legislation that affects fuelwood and fuelwood markets in the rest of the country. Current supplies appear to be adequate and official retail prices (3,000 CFAF/stere equivalent) are rarely surpassed in the city. Priority Areas for NFM in the Bobo-Dioulasso Supply Zone 51. Although the overall fuelwood supply situation for Bobo-Dioulasso is good, there are areas that could definitely benefit from management activities to improve the overall productivity of the forest. The focus of the five priority areas discussed below is on improving the efficiency of the system and capturing the opportunities that currently exist. 52. Priority Area I. The frst priority for managing natural forests in the supply zone needs to be at the Dinderesso National Forest. This 6,000 ha forest is comprised totally of N class natural forest (4,400 ha) and plantations (1,600 ha). The Forest Service has developed fire lanes within the forest and there has been essentially no violation of the forest boundaries by the adjacent population. The forest is also the site of the national forestry school. The forest is intact, it is in good condition with an estimated 30,000 tons of standing volume in commercial fuelwood species, and it is only 10 km from the city center. It is reported that management plans have been developed for Dinderesso in the past. These need to be updated and given a higher priority. The forest is well protected, but in order to be more productive, a complete management strategy needs to be developed. The relatively small size of the forest should lend itself easily to management by compartments. Dinderesso represents a unique opportunity for the Forest Service, or the forestry school staff/students, to work with the local population to manage the forest. 53. Annual productivity, is estimated to be about 3,800 tons for Priority Area I. This is only a vety smali portion of the current total fuelwood demand (106,400 tons) for the city, but it represents one of the best opportunities in the country to develop a forest management model and demonstration area. The nearby market for fuelwood in Bobo-Dioulasso should also enhance working on a for-profit enterprise with the local population. The short distance into the city also means that cooperative members could transport the wood themselves and realize even greater ' 110 - Page 11 of 42 profits. The management scenario for Priority Area I gives an estimated fuelwood harvest of 2,240 tons in the first year on a 400 ha compartment. Assuming continued protection and current growth rates, 5,300 tons could be removed 15 years hence. 54. Priority Area II. The second priority area is also a national forest (Koulima) within 10 km of the city. It is much smaller (1,800), however, and not in as good condition. The remaining natural forest is in the F cover class. Unlike the Dinderesso forest in Area I, substantial areas of Area II have been repeatedly cut over for fuelwood by the surrounding population. There appears to be no control over these wood removals, although the actual boundary has been respected in regards to agricultural land clearing. Regeneration of stump sprouts is vigorous and the number of stemrs per hectare is high (but the average height of the stump sprouts in areas nearest the city is less than two meters). Because of its degraded state, the standing volume estimate (7,900 tons) for commercial fuelwood listed in Table 6.2 may be high. An accurate inventory (and map) of the forest is needed as the management of the area begins. 55. Annual productivity of Area HI remains high. Clement's equation, when applied to this rainfall zone (1,100 mm/yr), gives an estimate of 1,500 tons/year of commercial fuelwood for this cover (F) class. The area is obviously valued for its fue}wood and represents an opportunity for management with the local population. Its proximity to the city means that there should be a ready market for products from this priority area. The existing situation will facilitate the Forest Service in developing a management plan and a fuelwood harvesting schedule. The most difficult part will probably be protecting the forest from illegal cutting. Past patterns will be difficult to break, but establishment of a cooperative with the surrounding population will help to change that. Because they would receive direct cash benefits from the management activities, they will have a vested interest in making sure that the area is protected. 56. Once organized, members can take advantage of the short distance by transporting and seiling fuelwood and other products to retailers or door-to-door themselves. There are no primary or secondary road systems in the area, but the tertiary roads and trails which crisscross the area are all easily accessible by donkey cart. 57. Prioriqy Area III. Tle third priority area is within 50 km of the city center. It is located to the east of town and serviced by two good road systems. Area III does not encompass any national forest land, but there are substantial areas (42,700 ha) of natural forest cover (in the F and M classes) on domaine protft lands. Total standing volume in commercial fuelwood species is estimated to be 116,200 tons on these natural forest lands. The fuelwood supply zone map for Bobo-Dioulasso shows some of this area to be old fallows (J class land). This area can also be assumed to have considerable amounts of commercial fuelwood species growing on it and should not be discounted when developing management plans. Annual growth of fuelwood species on the natural forest lands is estimated to be 37,000 tons/year using the assumptions stated in Table 6.3. Establishing management and protection activities in Priority Area III will insure that this productive potential is maintained and improved. Its easy access from the city means that fuelwood, if found here, will always be in demand. 58. There are no established boundaries (as in the previous two priority areas) that will facilitate management. But the relatively large contiguous area of natural forest with its productive potential and the configuration of the transport links (a major crossroad just outside the area) lends itself to management. Woodcutters also are obviously active in Area III as evidenced from the ' 111' Page 12 of 42 wood now leaving it. All these factors when weighed together represent an excellent opportunity for developing a participatory management scheme for the fuelwood resources found there. 59. When the management model was applied to Area m, including the J class lands, potential fuelwood removals were estimated to be 7,450 tons in the fist year. After 15 years with protection and normal growth the fuelwood harvest could be as high as 34,500 tons, almost a five- fold increase. 60. Priorily Area IV. The fourth priority area is another national forest. lTis one, the Tere National Forest, just east of the town of Koundougou, is located about 70 km north of the city. This distance is relatively great for the Bobo-Dioulasso supply zone, but the paved road to Koundougou is in good condition. Forest Service personnel have indicated that wood merchants do travel to the area to obtain wood for the city. Two-thirds (7,700 ha) of the forest is classed as N lands on the cover type map. The remaining area (3,000 ha) has some portions that have been cleared for agriculture, but its F classification indicates that large tracts of natural woodlands still remain. By working with the surrounding villagers, Forest Service personnel can help ensure that the natural forest areas remain intact and productive. Standing volume estimates for the 10,700 ha are on the order of 65,000 tons for the natural forest areas. Annual productivity on these lands is estimated to be slightly more than 9,000 tons when the assumptions listed in the table are employed. 61. Like Priority Areas I and II above this area will lend itself to management fairly easily because of Forest Service jurisdiction over the area. It also represents a good opportunity because there is a relatively large block of contiguous forest that is little touched by land clearing. A market clearly exists for fuelwood and villagers should appreciate the opportunity that a management cooperative will offer in terms of direct cash benefits. The management fund wili help to finance forest improvement activities and insure a sustainable supply of fuelwood. 62. ELiorily Area V. The last area to be considered as a priority for Bobo-Dioulasso's fuelwood supply strategy encompasses a large zone (90,400 ha) immediately outside of the city to the southwest along the Orodara road. Topography in the area is quite market, often punctuated by small, rocky outcrops and steep hillsides which make access into the area difficult. The lack of land clearing activity in the area is probably due to the inaccessibility and the thin soils which are ill-suited for agriculture. Most of it remains classed as N or F lands on the cover type maps. 63. Tbe standing volume, not all of it accessible, is estimated to be 442,400 tons for the three cover classes of natural forest. Annual production on these lands is good because of the condition and untouched nature of the forest. Total annual growth for these 90,400 ha is estimated at nearly 79,000 tons. Under protection and normal growth conditions, the fuelwood harvest from a managed compartment 15 years hence would be 70,400 tons. 64. This last area represents an opportunity to improve the overall efficiency of the city's fuelwood supply and marketing network by reducing reliance on more distant fuelwood sources. Good transport links currently exist and organizing a fuelwood enterprise would bring more income to local villagers. Assuming that the management cooperative can provide substantial volumes of fuelwood at the start of the management process, management fund monies could be used to build roads that would access still more fuelwood resources. 112 A Page 13 of 42 D. QiaigXua 65. Principal fuelwood resources. The lower average rainfall (500 mm/year) does not favor abundant natural regeneration and growth of current vegetation stocks. Most of the fuelwood currently entering the city by truck comes from trees that died during the last drought from area that are at least 60 km from the city. 66. The forest cover type and fuelwood supply map is characterized by large areas classed as 0 (or occupied) lands. Lands which still support a significant amount of natural forest vegetation are far from the city and in relatively scattered locations. Other than one area between Tiou and Tou northwest of the city, there are no large contiguous blocks of natural forests. Many of the natural forest areas that do remain are being cleared for agriculture. These appear as M class lands on the Ouahigouya map (indicating little forest cover and a predominance of agriculture). The entire zone is fragile from a land development standpoint. Soils are frequently shallow with considerable amounts of ironstone outcroppings. Historically, extensive agriculture in the region, coupled with the low rainfall, has led to an overall degraded condition. 67. Very poor road conditions exist throughout Yatenga Province. This means that transport costs for wood from the natural forest areas are higher than other cities in the country which benefit from better roads. Poor transport links also diminish the reliability of the supply from these sites. As a result very little fuelwood enters the city via motorized transport. A large portion of Ouahigouya's fuelwood comes into the city almost completely uncontrolled by bicycle, on headloads, and by donkey cart at all hours of the day. The exact supply areas are not well known and the Forest Service has no control over wood entering the city in this manner. 68. Any management efforts aimed at monitoring Ouahigouya's fuelwood supply network are frustrated by the low prices that are officially recognized for Yatenga Province. The 500 CFAF/stere after tax producer price in the Ouahigouya supply zone is less than one-half the price paid in provinces supplying Ouagadougou's fuelwood. All participants in the supply chain say that the prices being paid are not worth the effort. It is no wonder that there are only one or two motorized transporters still operating out of the city. If higher official prices were recognized there would be more registered (licensed) people (and/or groups) in the market arena and more of an opportunity for management. Current Fuelwood Management 69. There are four woodcutter groups operating within the supply zone; all are exploiting dead wood from trees that didn't survive the 1983-84 drought. No attempts at forest management have been made by these or any other entity in the supply zone. Two of the woodcutter groups at Benh, and one at Tou northwest of the city on the Mali road are reported to supply the largest quantities. The supply distance is about 60 km on a poor quality laterite L that is sometimes impassible during the rainy season. The two producer groups operating at Benh here are not really groups at all, but two individuals that hire young men from vilage to village to help them cut wood for the wholesalers. There are no long term provision for group benefits (a cooperative fund or a management fund) for either of the groups. - 113 Page 14 of 42 70. Another area to the northeast (Toulfe and Babo) is also accessible by the best dirt road in the region. Transport distances in this case are further, about 65-75 km. The third woodcutter group operating in the region is located at Toulfe; it is well organized. A fourth group at Babo no longer functions, primarily because the marketing conditions are so poor. All the producer groups are confronted with the same situation. Unless the price structure improves the woodcutters won't have sufficient incentive to collect wood (let alone manage the forest for long term supply); nor will it be worthwhile for the transporters to travel those distances in order to collect it. 71. As reported above, substantial quantities of fuelwood enter the city from nearby sources, transported by carts, bicycles, and on foot. The Forest Service in Yatenga province attempts to police this movement, but with little success. It is reported that transporters often stockpile wood supplies just outside the city and quickly move it in under cover of night, or when they know that Forest Service personnel are absent. These actions allow suppliers to avoid fuelwood taxes and any transport fees and licenses, and still take advantage of unofficial market prices which have been reported as high as 3,500 CFAF/stere (versus the official price of 2,100 francs). Priority Areas for NFM in the Ouahigouya Supply Zone 72. Since there are no national forest lands within the supply zone, transport distance and road condition became the key factors in identifying priority areas for management. Management of any or all of the areas will only become viable if the producer price is increased to more accurately reflect real costs associated with fuelwood production. Before fuelwood management can occur in Ouahigouya's fuelwood supply zone substantial progress in the implementation of a revised fuelwood strategy must take place. 73. Priority Area I. The area northeast of the city near the towns of Toulfe and Babo is suggested as the number one priority. Besides being readily accessible by a good dirt road throughout most of the year, there are still substantial areas under natural forest cover. Most of these lands (see the Ouahigouya map), classed as F (9,400 ha) and M (36,900 ha ), are in relatively small blocks. The producer group currently operating at Toulfe will facilitate organizational and management efforts in the area. Fuelwood growing stock resources are very difficult to estimate. The drought of 1983-84 killed a majority of the trees still standing. Annual productivity or growth, an indicator of the volume potentially available for fuelwood removals, was calculated. Productivity of commercial fuelwood species for Priority Area I is estimated as 9,800 tons/year. The removal of the drought-killed trees is almost complete. 74. Forest Service personnel need to organize the existing woodcutter groups into management cooperatives and begin to improve stocking and productivity on these lands. If agricultural practices are prevented from encroaching here, the productivity of the sites can at least be preserved, and maybe even enhanced. 75. Priori* Am . The second priority area encompasses lands within a 40 km radius of the city. It is recognized that much of the city's current fuelwood needs are met by the residents themselves. That is, farmers who live in Ouahigouya often return to the city carrying wood with them that they have collected from their own lands or elsewhere. Nearly aU families in the city have fields in the surrounding area and collect wood from them. - 114- Page 15 of 42 76. Large areas of natural forest land are lacking (only about 39,000 ha), but there are substantial zones of fallow and uncultivated ironstone areas which support widely scattered, but significant quantities of woody biomass. In order to ensure longer term supplies from this area and to minimize the risk of furher degradation, Ouahigouya decision makers need to develop a management scheme that will capitalize on the resources in the area. 77. Within this 40 km radius encompassed by Area II, there is some standing fuelwood volume on F and M class lands. It is estimated to be about 19,000 tons. lbese, too, present an opportunity for villagers living nearby. Annual productivity from these lands has been estimated as almost 8,000 tons. Members of organized cooperatives could also sell the fuelwood door-to- door and realize substantial profits from direct retail sales in the city. Before any marketing effort is conducted in conjunction with a management plan for Area II, more thorough knowledge is needed about the actual market for fuelwood. If, indeed, most of the city's demand is satisfied by the residents themselves, then a different approach targeting those residents without a "personal' fuelwood supply will be required. At the same time the Forest Service will also need to work with landholders to help them manage their individual supplies. 78. PrioEy.AM II. The third priority area is further away, but is accessible by the Tougan road, a route which is generally not in good repair. According to sources in Ouahigouya, FED funds are scheduled to improve this road substantially over the next fwe years. If this does occur, the increased accessibility will place this area higher on the priority list. 79. Growing stock on natural forest lands in this area is estimated to be about 23,000 tons on slightly less than 42,000 ha. Tlwo-thirds of the area is classed as M in scattered blocks. This area was also less affected (than Areas I and IV) by the severe drought conditions during the last decade. Annual growth (productivity) of commercial fuelwood species on these natural forest areas could be as much as 8,500 tons per year. Unless access and market price improves, incentives for managing this area by the local population will not be great. The area, nevertheless, does have a large contiguous block of natural forest land that would benefit from management activities - particularly if conditions change. It is an area that needs to be monitored by Forest Service staff in Ouahigouya. 80. Priority Area 'M. The area last on the priority list has furnished considerable quantities of fuelwood to the city since price restructuring occurred in 1985. The area is located northwest of the city in a band of forest near the Malian border. Although the terrain is flat and uniform the existing road conditions severely limit access. Many of the standing trees, like those in Area I, are dead, having succumbed to the 1983-84 drought. It merits the priority list, however, because of the large area of uninhabited woodlands. Decision makers should be aware that there is a considerable fuelwood resource located there. As in Area I, this are has also been too radically affected by the drought to allow a meaningful estimate of the standing volume. Annual production, however, has been estimated at about 11,400 tons on the 56,000 ha of natural forest lands. 81. The annual production potential from all the priority areas indicates that there is enough fuelwood to satisfy the city's demands through the year 2000. Management of these areas won't occur, however, unless there are substantially more incentives for producers and suppliers in the region. Until that occurs Forest Service personnel will need to concentrate their efforts on improving the management of the wooded fallow areas surrounding the city. - 115 - Page 16 of 42 82. Because of the intensity of agriculture, the low rainfall, and fragiUe soils, a long-term agroforestry development strateg should be considered. Trees grown on farm lands can support agriculture through their positive soil and water conservation attributes. At the same time, the trees can produce wood for family use and for occasional sale. Table AI.1: Standing Fuelwood Estimates for Priority Areas within the Ouagadougou Fuelwood SuPPly Zone Prlority Class N Class F Class M Total area Hae M3+ Tons# Hae M3+ Tons# Ha- M3+ Torns# tons la 2600 19500 15600 9200 46540 38432 0 0 0 52032 lb 0 0 0 5600 27720 22176 0 0 0 22176 11 29700 222750 178200 24200 119790 95832 4600 11385 9108 283140 III 35500 266250 213000 7800 38610 30888 0 0 0 243888 IV 1B610 139500 111600 0 0 0 0 0 0 111600 V 17600 132000 106600 126400 625680 500544 75800 187605 150084 756228 Vl 2 4Q1217 = 1742400 1Q S6U 542124 &M 72G 2 2 Totala 3944002958000 2366400310100 1534995 1227996 110000 272250 217W0 3812196 * Area estimates from forest cover map + Bsed on: 12,5 a3/ha or 50 of the average standing volume reported for the natural forests in the Center-East, Center, and Center-West Departments (Cameratti 1983) E Assumes: 0,8 tons/a? (DeBaker 1982) Additional assumptions associated uith using Grosenick snd Hagen's (1988b) cover classes: Class N contains 100t of the estimated volume Only 60X of the standing volume in each ctass is Class F contains 661 of the estimated votume commercial fuetwood of usable diameter. Class 1 contains 33K of the estimated volume SAPPLE CALCULATION: Standing volume estimated for Priority Area 11, Class F average cover class X of commercial Estivated Area x standing volume x adjustment x fuetwood volume 24.200 ha x 12,5m x 66K x 60K 119.7Y 0? TaKe Al0-2: Estimated Annuat Productivity of Priority Areas within the Ouagadougou Fuelwood Suppty Zone PrO* Class N Class F Class M Tota area Hae M3+ Tor*# Hae M3+ Tons# Hae M3+ Tons# tons la 2600 1373 1098 9200 4858 3888 0 0 0 4884 lb 0 0 0 600 2957 2365 0 0 0 2365 11 29700 15682 12545 24200 12778 10222 4800 2429 1943 24710 111 35500 23572 18858 7800 5179 4143 0 0 0 23001 IV 18800 12350 S880 0 0 0 0 0 0 9880 V 17600 11686 9349 126400 83930 67144 75800 50331 40285 116758 VI am - j!D 1 727;!1 Q 1i L52 MM Totals 394400 257489 205991 310100 200602 160482 110000 72414 5792 424404 * Area estimates fro forest cover sps + Volumes calculated using average growth estimtes from Clement (1982) Averae growth for Priority Areas 1., tb, It r . i/ha/year (averge al rainfall a 750 am)) Average growth for Priority Areas Itt, IV, V, VI 0 .83 a/ha/year (average annual rainfall a 850 a) Assumes: 0.8 tonsm/u (DeBaker 1902) Additional assusptions: 8 of the orowth Is in comercial fuelwood species (Gosenick and Hagen 196Mb) Rural Fuelwood demand is satisfied from other sources. SAMPLE CALCULATION: Estimated volume in annual growth for Priority Area 11, Class F growth estimate X in conmrcial area x (all species) x fuelwood x Total votume weight equivalent or > 24.200 ha x 0.66 W/~ha/year x an~ x 12.778 a? 10i.z2 -ons 0 4N, tb4 Tabic A10.3: Standing Fuetwood Estimates for Priority Areas within the KoUdouou Fuelwood Suppty Zone Priority Class N C_ass F cass M Totad are Ha* M3+ Tons# H4a* M3+ Tons# Ha M3+ Ton in tons I 18600 141000 11280 6600 32870 26138 1500 3713 2970 141908 n 7700 s575 46200 4000 1980 15840 S400 20790 16632 78S72 III o Q --Q _ gR ... 24100 M 4771 47718 Subtot8l 26500 196750 159000 10600 52470 41976 34000 84150 67320 2686 Ouaga zones IV 18600 139500 111600 0 0 0 0 0 0 111600 V 17600 132000 105600 128400 625680 500544 75800 187605 150084 758 TOaS 62700 470250 3762 137000 878150 542520 109600 271755 217404 1136124 * Area estimates from forest cover amps + Bsed on: 12,5 u/ha or 50% of the average standing vowue reported for the natural forests in the Center-East, Center, and Center-West Departments (Cameratti 1983) a Asasu OJ toresl (DeBaker 1982) Additional essuptions associated with using Grosenick and aHgen's (19t8b) cover classes: Class U contains 100C of the estimated volume Only 60 of the standing volume in each class is Class F contains 66X of the estimated volume commercial fuetwood of usabte diameter. Class N contains 33X of the estimated voltume SAMPLE CALCULATION: Standing votut estimted for Priority Area Kit, Class N average cover cless X of cowaercial estimated are x standing volume x adjustment x fuetwood u volume 24.100 ha x 12,5? x 331 x 601 59.648U 0 _- TIbiliL40 4: Estimated Almum Productivity Areas within the Koudouou Suppty Zo0 PArioty Class N .a F C _ass M Totl aea Ha* M3+ Tors# Hae M3+ Tons# Ha M3+ Tor3+ tons I 1800 12483 9987 6800 4382 3508 1SO0 998 797 14289 11 7700 5113 4090 4000 2656 2125 8400 5578 4462 10877 IlI Q Q a Q QU l0 ila& 11452 Subtotals 26500 17596 14077 10800 7038 5631 34000 20889 16711 36419 Ouaga zonas IV 1860 12350 9880 0 0 0 0 0 0 9880 V 17600 11686 3 124 18400 67144 75800 50331 40265 116758 Total8 62700 41633 3330 137000 9098B 72774 109800 71220 56976 163057 * Area est mtes from forest cover maps * Votuees calculoted using averag growth estimtes from CLamant (1982) Average growth for Priority Areas III 0.j6 W/ha/year (overae awiu rainfall c 750 ma) Average growth for Priority Areas I, II, IV, V 0 _ mit/ha/year (average wanL rainfaLl a 850 ) I Assums: __, tors/f' (DeBaker 1982) AdditionaL asstumtionm: of the growth in Are"s I, II, IV, V, ad 90.. of the growth in Area III i8 in co.rcial fuelwood species (Grosenick & Haen 1988b) Rural fueLwood diemad fs satisfied from other sources. SAMPLE CALCULATION: Estimated voluma In wal growth for PIority Ares III, Ctas8 M growth estimate X in comrcial area x (alt species) x fueluosd x total volum or weight equivatent 24.100 ha x 0.66 W/ha/year x 90X x 14.315 a? 11.452 tona Table A10.5: Standing Fuetwood Estiwates for Priority Areas within the Bobo-Dioulasso Fueltood Supply Zone PrNO Class N Class F Class M Total area HaO M3+ Tons# HaO M3+ Tons# Ha M3+ Tons# tons 4400 360 29568 0 0 0 0 0 0 29568 11 0 0 0 1800 9979 7983 0 0 0 798 111 0 0 0 9700 53777 43021 33000 91476 73181 116202 IV 7700 64680 51744 3000 16832 1330S 0 0 0 65060 V &M I= 7 rL4=6756 QQ2 1; fl 442404 Totas 35100 294840 235872 76W00 426334 341067 38000 106336 84269 6S1208 Ares estimates from forest cover maps 4 Based on: 14 2/ha or 5S% of the avere standing volwue reported for the natural forests in the Haut-Bassin Department (Caratti 1983) * Assumes: 0.8 tons/a? (Deaker 1982) Additional essLutios assoiated with using Groseick an Hogn's (19) cover classe: CLass I contains ,100 of estimated volume OntLy 60 of the standing volume in each class is Class F contains h66 of estimated voluta commercial fuelsood of usable diameter. Class P contains 33J of estimated voluse SAMPLE CALCULATION: Standing volume estim_ted for Priority Area 1, Class N average cover cltss X of commercial estimated Area x standing voluze x adJustment x fuelwood a volume 4.400 ha x 16 m? x 100% x 60% c 36.960 ? 0 O X Tabte A10.6: Estimated Annual Productivity Areas within the Bobo-Diou(asso Fuetwood Supply Zone Prbfity Class N Class F Class M Total area Ha M3+ Tons# Ha* M3+ Tons# Ha M3+ Tons# tons 1 4400 4787 3830 0 0 0 0 0 0 3830 11 0 0 0 1800 1958 1567 0 0 0 1567 III 0 0 0 9700 10554 8443 33000 35904 28723 37168 N 7700 8378 6702 3000 3264 2611 0 0 0 9313 V 20 22 2001 iQ 432 l Totals 35100 38189 30551 76900 83667 66934 38000 41344 33075 130560 e Area estimates form forest cover maps s Volumes caLculated using average growth estinates from CLeent (1982) Average growth for Priority Areas 1. It, 111, IV, V .36 a/ha/year (average emnial rainfall -1100 lO) * Assumes: O.B tons/dt (Deaaker 1982) Additional assuWptions: 8 of the growth is In couaercial fueltood species (Grosenick & Nagen 1988b) Rural fuelwood demand is satisfied from other sources. SAMPLE CALCULATION: Estimated votume in anrual growth for Priority Area 1, Class N growth estimate X in coumercial Area x (all species) x fuetwood x total volume or weight equivalent 4.400 ha x 1.36 W/ha/year x BOX x 4.787e d? 3.830 tons > 0 t' IL* AJ10.: Standing Fuetwood Estimates for Priority Areas within the oumhigouya Fustwood Supply Zone PrOfty Cl N Clas F CssM Tota woa Ha- M3+ Tons Hae M3+ Tons Hae M3+ Tons# tons 1600 2438 1951 9400 9455 7564 36900 18558 14846 24361 11 0 0 0 9000 9053 7242 29900 15037 12030 19272 111 0 0 0 15200 15289 12231 28600 13378 10702 22933 tv~~~~Z j=Q 2M 121Q 12171 = = _ f1_70 49252 Totas 28500 43434 34747 45700 45967 36774 110100 55371 44297 115818 * Arce estimates from forest cover maps. e lased on: 1, mai/ha or 50X of the average standing voluse reported for shrub savemah lands (Cameratti 1983) # Assu: Q tons. (DeBaker 1962) figures presented are highly speculative given the Large amouts of drought-killed trees in this area. AdditionaoL asuaptions associated with using Grosenick ard Wegen's (1988b) cover classes: CLass N contains 100% of the estimated volume only X of the standing volue in each class is Class F contains _ of the estimated voluse camircaL fuetwood of usale difmeter. Closs N contains 33X of the estimated volau SAMPLE CALCULATION: Standing volae estimated for Priority Area IV, Class F average cover clas X of couwrcial estimated area x standing volume x adJustmnt x fuelwood a volus 12.100 ha x 2,54 d x 66X x 60% a 12. Iv i. ? > Tabl A102J: Estimted Annual Productivity Aras within the Ouahigouya Fuelwood Supply Zone Prty Class N Class F Clbss M Tota aG Hae M3+ Tons# Ha* M3+ Tons# Ha M3+ Tons* tons I 1600 410 328 9400 2406 1925 36900 9446 7557 9810 11 0 0 0 9000 2304 1843 29900 7654 6124 7967 Ill 0 0 0 15200 3891 3113 26600 6610 5448 8561 IV 2 jj8 1 21Q 2478 1700 427 11407 Totals 28500 7296 5837 45700 11699 9359 110100 28186 22548 37745 Area estimates from forest cover waps * Yolumes calculated using average growth estimates from Clement (1982) Average growth for Priority Areas I, II, ItI, IV - 0.32 Wt/ha/year (average anmual rainfall u 500 am) * Assumes: 0.8 tons/t? (DeBaker 1982) Additional assuzptions: 88X of the growth is in comzercial fuetwood species (Grosenick & Hagen 1988b) Rural fuelwood dewmad is satisfied from other sources. SAMPLE CALCULATION: Estimated volume In annual growth for Priority Area IV, Cless F Growth estimate X In coamercial area x (alt species) x fuelwood x total volume or weight equivalent 12.100 ha x 0.32 uI/ha/yeer x 0o% x 3.098 a? * 2.478 tons o 124 ngX Page 25 of 42 NATURAL FORESST MANAGEMENT OUTPUrw SCENARIO: OUAGADOUGOU COUNTRY: BURKINA FASO Priority area la, lb TECHNICAL AND BIOLOGICAL ASSUMPTIONS Time Period 15 years Total forest area 61.200 ha No. compartments 15 Average compartment 4080,00 ha Forest cover classes represented Total Avg. cpt Average standing volume Class Stocking Area area 12,5 nmi/ha N: 100% 2.600 ha 173,3 ha F: 66% 14.800 986,7 ProductIvity (m3/ha/an) M: 33% 0 0,0 High Medium Low Sub-totals: 17.400 1.160,0 1,0 0,66 0,5 '-, J-C: 25% 39.700 2.646,7 P: 100% 4.100 273,3 Miscellaneous assumptions: Equal distribution of all cover classes in each compartment One compartment is harvested per year 50% of the standing volume is removed during each commercial fuelwood cut 3,2 steres/1,0 3 REVENUE ASSUMPTIONS WrrH OFFICIAL PRICES 610 CFAF/stere to woodcutters 500 CFAF/stere forest management fund 300 CFAF/stere for the fuelwood tax (permis de coupe) 200 CFAFfstere for the cooperative fund 1610 CFAF/stere total official producer price for fuehvood 4320 CFAF/stere total official retail price in Ouagadougou PrduZMi assumed rb*a OWpWs 0,66 /ha/yew 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Uis Commndal fuewood no147 N Clm Ia4s m 1093 1141 5098 M7S 1532 3696 627 149 667 Li0 16M 1753 1779 1837 188 F Cibs ad 4070 4396 472 5047 5372 569 8 6024 6349 6675 700 76 762 Tm 8303 862 MCam lands .3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Subtotal .3 5153 5536 5919 6302 6685 7067 7450 7833 8216 8599 8981 9364 9747 10130 10313 J, iC Ia %7 4135 5009 582 6756 7629 M502 9376 10249 11123 11996 12869 13743 14616 5490 16363 Platatio (P) m3 1708 1799 1889 1979 2069 2159 2250 2340 2430 2520 2610 2701 2791 28i8 2971 Toal rluwood n3 10997 12MO 1690 15036 16383 17729 19075 20422 21768 23115 24461 25807 2714 28500 29647 dem 35191 3949 4380 48116 52425 56733 61042 65350 69659 73679 78275 82584 86892 91201 95509 tons 8798 9675 10952 1209 13106 14183 15260 16338 17415 18492 19569 20646 21723 22800 23877 15 yr vohlumec tder 980250 Age moved/ba gtem 16,0 125 Anntx X Page 26 of 42 NATURAL FOR3SI MANAGEMENT OUPUT SCENARIO: OUAGADOUGOU COUNTRY: BURKINA FASO Priorily area II TECHNICAL AND BIOLOGICAL ASSUMPITONS rune period 15 years Total forest area 58.500 ha No compartments is Average compartment 3900,00 ha Forest cover classes represented Total Average Average standing volume Class Stocking area compartments 12,S5m/ha area N: 100% 29.700 ha 1980,0 ha F: 66% 24.200 1613,3 Productivity (m3/ha/year) M: 33% 4.600 306,7 High Medium Low Subtotal: 58.500 3.900,0 1,0 0,66 0,5 J, J-C: 25% 0 0,0 P: 100% 0 0,0 Miscellaneous assumptions: One compartment is harvested per year 50% of the standing volume is removed during each commercial fuelwood cut 3,2 steres/1,0 m3 REVENUE ASSUMPIONS WITH OFFICIAL PRICES 610 CFAF/stere to woodcutters 500 CFAF/stere forest management fund 300 CFAF/stere for the fuelwood tax (permis de coupe) 200 CFAF/stere for cooperative fund 1610 CFAF/stere total ofricial producer price for fuehwood 4320 CFAF/stere official retail price in Ouagadougou Productvt assumed Phys Outputs 0,66 m'/hs/year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Units Commercial fuewood e a N Class Iandi m' 12375 13028 13682 14335 14989 1564 16295 16949 17602 18256 19 19562 20216 20669 21523 F lands m 3 6655 7187 77 8252 8785 9317 9849 10382 10914 11447 11979 125I1 13044 13576 14109 M Cas lands 633 734 835 936 1037 1139 120 1341 1442 143 1645 1746 1847 1948 2049 Subtotas wm 19663 20950 22237 23524 24811 26098 2735 28672 29959 314 32533 33820 3507 36394 376S1 J. -C 1andg 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Plantatiom(P) ml 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total fetwood m3 19663 20950 22237 23524 .811 26098 27M5 28672 29959 31246 32533 33820 35107 36394 37681 dtem 62920 67038 71157 775M I94 83512 87630 91749 95867 99966 104104 108222 IU341 116459 120578 tos 15730 16760 17789 1i881 19648 20878 21908 22937 23967 24996 26026 27056 265 29115 30144 15 year volume cut atn 1376232 Avers, rmed/ha sem 23,5 - 126 Page 27 of 42 NATURAL FOREST MANAGEMENT OUTrPT SCENARIO: OUAGADOUGOU COUNrRY: BURKINA FASO Priority area III TECl NCAL AND BIOLOGICAL ASSUMPTIONS Time Period 15 year Total forest area 55.400 ha No. comparments 1S Average compartment 3693,33 ha Forest cover classes represented Total Average Average standing volume Class Stocking area area/ 12,5 ne/la compartments N: 100% 3S500 ha 2366,7 ha F: 66% 7.800 520,0 Productivty (m3/ha/year) M.. 33% 0 0,0 High Medium Low Subtotals: 433Q0 2886,7 1,0 0,83 0,5 J, J-: 25% 12.100 806,7 P: 100% 0 0,0 Miscellaneous assumptions: Equal distributions of all cover classes in each compartment One compartment is harvested per year 50% of the standing volume is removed daring each commercial fuetwood cut 3,2 steres/1,0 m3 REVENUE ASSUMPTIONS WTrH OFFICIAL PRICES 610 CFAF/stere to woodcutters 500 CFAF/stere forest management fund 300 CFAF/stere for the fuchwood tax (permis de coupe) 200 CFAF/stere for the coopertive fund 1610 CFAF/stere total offtcial producer pfice for fucehood 4320 CFAF/stere, official retail price in Ouaadougou Assums4z productvi pj1~~ Outpt 0,83An/ua/year 0 1 2 3 4 5 6 1 8 9 10 11 12 13 14 N ama 111ds Ut' 14792 13774 16756 17738 IS720 197 206 21667 2269 23631 24613 255 27 27560 285 F Clmh 2143 2361 2577 2792 30 3224 40 3656 387 408 43 4519 4735 49 516 Mcima ow1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SUNbta 19 1813 13 231 21729 2292 24124 2 322 6 278 28916 31 3131 32510 378 J, -C lans 11 1260 1595 1930 2265 2599 M4 3269 3604 3939 43 4608 4943 5278 5612 5947 plbstIow (') 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 TOWl fmwood U 18197 19730 21263 22795 24328 25861 27393 28926 30459 31592 33524 350s7 36590 38123 39M5 deM 8231 63135 68040 72945 77850 82754 876V9 9254 97469 102373 107278 112183 1170 121992 126837 tom 14558 1578 17010 18236 19462 269 21915 23141 2437 25593 26820 280 292 3049 31734 15 year volumeA utem 13884 Avea weumed/ba sem 25,1 127 hnex Page 28 of 42 NATURAL FOREST MANAGEMENT OUTPUT SCENARIO: OUAGADOUGOU COUNTRY: BURKINA FASO Prrity area IV TECHNICAL AND BIOLOGICAL ASSUMPTIONS rime period 15 yeas Total forest area 18.600 ha No. compartments 15 Average compartment 1240,00 ha Forest cover classes represented Total Avage Av Stadi volume Class Stocking Area area/ 12,5I /ha compartments N: 100% 18.600 ha 1.240,0 ha F: 66% 0 0,0 Productivity (n?/ha/year) .M: 33% 0 0,0 High Medium Low Subtotals: 0 1A0,0 1,0 0,66 0,5 J, -C: 25% 0 0,0 P: 100% 0 0,0 Miscellaneous assumptions: Equal distnbutions of all cover class in each compartment One compartment is harvested per year 50% of the standing volume is removed durin each commercial fuelwood cut 3,2 steres/1,0 mn REVENUE ASSUMPTIONS WITH OFFICIAL PRICES 610 CFAF/stere to woodcutters 500 CFAF/stere forest management fund 300 CFAF/stere for the fuelwood tax (permis de coupe) 200 CFAF/stere for the cooperative fund 1610 CFAF/stere total official producer price for fuelwood 4320 CFAF/stere, official retail price in Ouapdougou Prodvdfa,* md oP 0,64 31iia/ - r 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Unts foKwod d 1 N I f _ M s75 am am 9%7 gm 110 io614 nom i1433 11842 12251 12660I 13479 F Caad Id 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Mcml bo 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Subiotab 750 8139 86 87 98 97 10 10614 11024 11433 1184 M11 12660 I30 1 1, I-C we* 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Pltati(P) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Tod fueiwood WI ?750 81S9 8568 897S 93 97Om 10120 10614 11024 11433 1184 12251 12660 13070 13479 gem 24800 26109 27419 28728 30038 31347 32637 33966 35276 36 9 39204 40513 4123 43132 too 6200 6527 655 7182 7309 7837 8164 S82 8819 9146 944 901 10128 1045 107 IS yar volue gem 509491 AvoW mmovl/bh dem 27.4 128 Anne X Page 29 of 42 NATURAL FOREST MANAGEMENT OUTPUT SCENARIO: OUAGADOUGOU COUNTRY: BURKINA FASO Pnority area V TECHNICAL AND BIOLOGICAL ASSUMPTIONS rume period 15 years Total forest area 221.200 ha No. compartments 15 Average compartment 14746,67 ha Forest cover classes represented Total Average Avera"e standing volume Class Stocking Area area 12,5 m /ha compartments N: 100% 17.600 ha 1,173,3 ha F: 66% 126.400 8.426,7 Productivity (m/ha/year) M: 33% 75800 5.053,3 High Medium Low Subtotals: 219.800 14.653,3 1,0 0,83 0,5 J, J-C: 25% 1.400 93,3 P: 100% 0 0,0 Miscellaneous assumptions: Equal distnbution of all cover classes in each compartment One compartment is harvested per year 50% of the standing volume is removed during each commercisl fueJwood cut 3,2 steres/1,0 nm REVENUE ASSUMPTIONS WITH OFFICIAL PRICES 610 CFAF/stere to woodcutters 500 CFAF/stere forest management fund 300 CFAF/stere for the fuelwood tax (permis de coupe) 200 CFAF/stere for the cooperative fund 1610 CFAF/stere total official producer price for fuelwood 4320 CFAF/stere, official retail price in Ouagadougou Prduciy* asumed Pfjc OulpubA 0,83 melbahyear 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Units CoUUKdalC Aueiwood temoved N comm elalds 7333 7820 8307 8794 9281 9768 10255 10742 11229 11716 12203 12690 13177 U136 14150 F Cla la"d 34760 38257 41754 45251 48748 52245 55742 59239 6u 66234 69731 73228 76725 222 819 M Clm IsO& 10423 12520 14617 16714 18811 20908 23005 25102 2720 29297 31394 33491 35518 37685 39782 Subtdais .3 52516 58597 64678 70759 76840 82922 89003 9504 101165 10726 113327 1194 125489 13571 137652 1, i.CIands . 146 185 225 262 301 340 378 417 456 494 533 57 611 649 688 Plantatoms(P) .9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Todal etwood m3 52662 58782 64901 71021 77141 83261 89381 9 101621 107740 113860 119980 26100 220 138340 ste 168517 188101 207694 227268 246852 266435 286019 305602 325186 344769 36453 383937 403520 423104 442687 Iota 42129 47025 51921 56817 61713 66609 755 76401 8129 86192 91088 994 100880 176 110672 15 year vouel cutdes 4584035 A ae tmved/ha aes 20,7 129 Page 30 of 42 NATURAL FOREST MANAGEMENT OUTPUT SCENARIO: OUAGADOUGOU COUNTY: BURKA FASO Priority area VI TECHICAL AND BIOLOGICAL ASSUMPlIONS Time period 15 year Total forest area 456.900 ha No. compartments 15 Average compartmenl 30460,00 ha Forest cower dasss represented Total Average Avere standing volume Class Stoddng Area compartment 12S, /ha area N: 100% 290.400 ha 19360,0 ha F: 66% 136.900 9.126,7 Productivity (n3/ha/year) >M: 33% 29.600 1.973,3 High Medium Low Subtotals 456.900 30.460,0 1,0 0,83 0,5 J, J4C: 25% 0 0,0 3.- 100% 0 0,0 Miscellaneous asnsmions Equal distribution of all cover dasses in each compartrnent One compartment is harvested per year 50% of the standing volume is removed during each commercial fuelwood cut 3,2 steres/1,0 to3 REVENUE ASSUMPONS W1TH OFFICIAL PRICES 610 CFAF/stere to woodcutters 50 CFAF/stere forest management fund 300 CFAF/stere for the fueiood tax (permis de coupe) 200 CFAP/stere for the cooperative fund 1610 CFAF/stere total offcial producer price fo fuelwood 4320 CFAF/stere, official retail price in Ouagadougou Pwdvdb* anumd PW*W OUW o,83 vel/blym 0 1 2 3 4 5 6 7 8 9 10 it 12 13 14 Uns CoawmeW tAlwood remwed N am kg& .5 121000 129034 137069 145103 133138 161172 169206 177241 185275 193310 201344 209378 217413 225447 2342 F Clm 3n& 3768 41435 45223 49010 52798 56585 60373 64160 6748 71736 75523 79311 83098 8686 90673 M cs ln& 4070 4863 5708 6527 7346 8165 8984 9803 10621 11440 12259 13078 13897 14716 15535 Subtotb ml 162718 175358 187999 0 213281 225922 238563 251204 263845 27646 289127 301767 314408 32704' 339690 J.l ad Ws 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Planlbtos(P) iw 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 TOtal dwood a? 162718 175358 187999 200640 213261 22MM2 238563 251204 263845 276486 289127 301767 314408 327049 3360 da S320696 561147 6038 640 68750 22 76401 8 2 803 884754 9205 956 ***s ** **** tom 130174 140287 15039 160512 170625 180738 190150 200963 211076 221188 231301 241414 251527 261639 m752 15ear wvn. cut dem 12057M AmW mwvd/hastems 26.4 - 130 ' Page 31 of 42 NATURAL FOREST MAAOGEMENT OUrPULT SCENARIO: BOBO-DIOUILASSO COUNTRY: BURKINA FASO Priority area I RECHNICAL AND BIOLOGICAL ASSUMPTIONS Time period 1S yars Total fore area 6.000 ha No. comprtments 1S Average comportment 400,00 ha Fors cover daes reprned Total Average A e sanding volume Class Stodigu uea compartmts 14,0 m/ea area N: 100% 4.400 ha 293,3 ha F: 66% 0 0,0 Productivity (m/ha/year) M: 33% 0 0,0 High Medium Low Subtotals 4.400 293,3 1,0 0,83 0,5 J, JC: 25% 0 0,0 P.. 100% 1.600 106,7 Miscellaneous assumptions Equal distrbution of aU cov dasses ia each compartment One compartment Is harvested per year ,50% of the standing volume is rmoduoing each comnercial fuelwood cut 3,2 steres/1,0 m? REVENUE ASSUMPTIONS Wr1T OFFICIAL PRICES 610 CFAF/stere to woodcttes 500 CFAF/stere forest manaement fund 30 CFAF/steae for the fuehwood ta (pamis de coupe) 200 CFAF/stere for the coerativ fund 1610 CFAF/stere total official producer price for fuelwood 4320 CFAF/stere, officil ret price in Oua0dougo hf6 d/bh4tear 0 1 2 3 4 S 6 7 8 9 10 11 12 14 Unt Comme fld d o maced N 1M bho 2053 2253 2452 2652 2851 3051 3250 34 369 389 4048 4247 4447 Pa bCh .n3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 am ham ku& 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sibtctl m 20S 3 23 2452 2652 2851 301 3250 3450 3649 3849 4048 4247 4447 44 44 J, iCC ." 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 PItlom (P) J 74 819 892 964 1037 1109 1182 1254 1327 139 1472 1545 1617 1690 1762 TOl towd a 2W0 3072 3344 3616 3888 4140 4432 4704 4976 5 5M 57Y2 6064 4336 4608 daerem 8940 9830 1071 1U71 12442 13312 14182 15053 15923 1674 174 1534 1945 2075 21146 tm 220 2458 2675 2893 3110 3328 3546 3763 3981 4198 4416 4634 4851 59 56 15 yew wuer cut _em 2257gQ Aw maced/ba gems 37,6 131 AQ Page 32 of 42 NATURAL FOREFS MANAGEMENT OUTPUT SCENARIO: BOBO-DIOULASSO COUNTRY: BURKA FASO Priority area U TlCll CAL AND BIOLOGICAL ASSUMPIMONS Tune Period Total forest ares 1.800 h15 years No. compatments 15 Average compartment 120,00 ha Forest cover las reprented Total Avrage Averae standing volume Class Stcdng Area Compartnent 14,0 /ha area N: 100% 0 ha 0,Oha F: 66% 1.0 120,0 Productviy (M/ha/year) M: 33% 0 0,0 High Medium Low Subtotals 180 120,0 1,0 1,36 0,5 i, i-C: 25% 0 0,0 P. 100% 0 0,0 Miwsellaneous assumptios Equal distriution of all cover dlasses in eachomparment One compartment Ii harvested per year 50% of the stang volume i rmoved durin each commerial fuehwood cut 3,2 /1,0 a REVENUE ASSUMPTIONS WITH OFFICIAL PRICES 610 CPAF/stere to woodcuttes 500 CFAF/stere forest mangment fund 300 CFAF/stere for the fuewood tas (permis de coupe) 200 CFAF/stere for the coopetive fund 1610 CFAF/stere total official producer price for fuehwood 4320 CFAF/stere, official retil price in Ouagadougou P= A*6 pO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 U1at Comu_rSc ftftsd mo%ed N a na od0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 P ai ln v 554 636 718 799 881 962 1044 1126 17 129 1 142 134 1615 197 m ai.h be& 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sdutbo 554 636 718 799 881 962 1044 1126 207 128I9 13 0 1452 134 1615 1697 J, J,C M& 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Praniom(P) n0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 TeJal twewod n 554 636 718 799 Sel 962 1044 1126 1207 1289 1370 1452 134 161S 1697 Sim5 1774 2035 2296 2557 2819 3060 3341 3602 3863 4124 4385 4646 49"8 5169 5430 tom 444 509 574 639 705 770 835 900 %6 1031 1096 1162 1227 1292 1257 15 yew whem te dem 54028 AW reoed/Ia deft 300 132 Anne X Page 33 of 42 NATURAL FORES; MANAGEMENT OUrPUT SCENARIO: BOBO-DIOULASSO COUNTRY: BURKINA FASO Priotily area 111 TECHNICAL AND BIOLOGICAL ASSUMPTIONS: rime period 15 years Total fore area 5330 ha No. compartments 15 Average compartment 3553,33 ha Forest cover classes represented Total Average Average standing volume Class Stodcing Area Compartment 14,0 n/ha area N: 100% 0 ha 0,0 ha F: 66% 9.70 646,7 Productivity (m?/ha/year) M: 33% 33.000 2.200,0 High Medium Low Subtotals 42.700 2.846,7 1,0 1,36 0,5 J, 1-C: 25% 10 600 706,7 P:. 100% 0 0,0 Miscelaneous assmptions: Equal distribution of all cover classes in each compartment One compartment is harvested per year 50% of standing volume is removed during each commercial fuelwood cut 3,2 steres/1,0 im REVENUE ASSUMPI1ONS WITH OFFICIAL PRICES 610 CFAF/stere to woodcutters 500 CFAF/stere forest management fund 300 CFAF/stere for the fuehwood tax (permis de coupe) 200 CFAF/stere for the coopetive fund 1610 CFAF/stere total official producer price for fuehvood 4320 CFAF/stere, official retail price in Ouagadougou P a_e POu 1,36ui/behs 0 t 2 3 4 5 6 7 8 9 10 11 12 13 14 UnU C _aueaia 1woed N cama 1 ? 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 F aim b3.b 2968 3427 3867 4307 4747 5186 5626 6066 65 6945 7395 7S25 8264 874 9144 M f bs 5082 67 8074 9570 11066 12562 140S8 LW4 1700 146 20042 21S38 230 24530 206 s tab ail 8070 10005 11941 13877 15813 17748 19684 21620 2355 0 2541 27427 29363 31298 33234 35170 J, JC tI o 1237 1717 2198 2678 39 369 41X 460 508 56 6042 653 7 7484 794 PbIutdiou(1) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Todal twood a 9306 11723 14139 16555 18971 21388 23804 26220 28636 31053 33469 35885 38301 40718 43134 dem 297m 37512 45244 52976 60706 68440 76172 83904 91636 99369 107101 114833 122565 130297 138029 tons 7445 9378 11311 13244 1177 17110 1903 20976 22909 24842 26775 28708 30641 32574 34507 15 yewr va ct daem 12566 AW. retaowd/bh dem 23,6 133 Page 34 of 42 NATURAL FOREST MANAGEMENT OUTPUr SCENARIO: BOBO.DIOULASSO COUNTRY: BURKINA FASO Priority arcs IV TECHNICAL AND BIOLOGICAL ASSUMPTIONS ulme period 15 years Total forest area 10.700 ha No. cowmrtments 15 Avage mpam ent 713,33 ha Forest cover dass represented Total Average Averae standing volume Class Stodting Area compartmen v4,0lm/ha uea N: 100% 7.700 ha 513,3 ha F: 66% 3.000 200,0 Productivity (m3/ha/year) M: 33% 0 0,0 High Medium Low Subtotals: 10.700 713,3 1,0 1,36 0,5 3, J-C : 25% 0 0,0 P: 100% 0 0,0 Miscellaneous assumptions: Equal distnrbution of al cov classes in each compartment One conmartment is harvested per year 50% of standig volume is removed during each commercial fuelwood cut 3,2 steres/1,0 mi REVENUE AsSUMPTONS WITH OFFICIAL PRICES 610 CFAF/stere to woodcutters 500 CFAF/stere forest management fund 300 CFAF/stere for the fuehvood tax (permis de coupe) 200 CFAF/stere for the coeative fund 1610 CFAF/stere total official producer price for fueh ood 4320 CFAF/stere, offidal retail price in Ouawpdougou pmq* md Pb u IN36 W'ha8"t 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Uis C _mpdal aelsood remowd N ba bio 3593 3942 4291 4641 4"0 5339 6 607 636 6733 70 7433 77 8131 940 F lCnd kn 924 1060 1196 1332 1468 1606 1740 1676 2012 2148 2284 2420 256 2692 28 M Mmnd3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Subttab mlS 4517 502 5487 5973 648 6943 7428 7913 8M 93 953 103 10823 1138 J, C bads Ml 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Pladleam (P) m9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Totl fa*wood ? 417 5002 5467 93 6f48 6943 7428 7913 88 883 9368 9653 10338 10823 11308 germ 14455 16008 17560 19112 20664 22217 23769 25321 26873 242 29297 315 33082 34 36166 to 3614 4002 4390 4778 5166 5554 94 6330 6718 7106 7494 782 8271 8659 90M7 15 yr n_va cut oes 379814 AwNV wed/hb gem 35,5 134' Page 35 of 42 NATURAL FOREST MANAGEMT OUTPUT SCEARIO: BOBO-DIOULASSO COUNTRY: BURUA FASO Pority area V TECNICAL AND BIOLOGICAL ASSUMPMIONS Tune period 15 yea Toa fost area 90.400 ha No. ompartme 15 Average compartment 6027,67 ha Fore corw dass represented Total verage A Stn volume gArea Compartmen 140 Am N: 100% 23.000ha 1533,3 ha F: 66% 62.400 4.160,0 Productivi (ni/ha/year) M: 33% 5.000 333,3 High Medium Low Subtotal: 90.400 6.026,7 1,0 1,36 0,5 3, -C: 25% 0 0,0 P: 100% 0 0,0 Miscelneus auumptlon Equal disibution of all cover dases in each comn rment One cmartmen is harvested per year 50% of the standing volume is removed during eich commercial fuchood cut 3,2 teres/1,0 m' REVENUE ASSUMTIMONS WITH OFFICLAL PRICES 610 CFAF/tere to woodoutr 50 CFAF/stee forest mangent fund 300 CPAF/stere for the fewood tus (permis de coupe) 200 CFAF/stern for the copeati fhud 1610 CFAF/stere total official producer price for fuelwood 4320 CFAF/stere, official rtail prie in Ouapdoo 1,36 m/lbahea O . 2 3 5 6 7 8 9 10 11 12 13 14 UMla Cmdal a te4d C h o h in 1073 11776 I 13B61 14904 147 99 IS32 1907 20117 21160 == 23W 2428 25331 am F k026 19219 2M8 247 27" 33 3363 36192 39 415 44678 47507 S 331 MM 5= amM hmb a' 70 W 123 1450 1677 1903 2130 2357 2513 2610 7 3263 30 37 3943 Subtotab '30 341 3919 45017 4nl75 51U 5311599 63 67 n74 75 79 89 60 J. J3C MM& 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 PranMm (0'n SI 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 TalD zleod S 30W73 34121 33919 43017 4711S 5121 55311 59409 63506 67606 71704 752 79900 63996 696 M 9312 111436 124540 137654 150768 163862 1769 190110 20324 21633 2294M2 242566 255660 266794 261908 tol 24578 2757 31135 34414 37692 71 4449 47528 54085 57363 60 390 67M19 77 15 year vumt a do= 2|51654 AVW _mara do= 31,5 ' 135 ' Page 36of 42 NATURAL FORESr MANAGEMENT OUPUIT SCENARIO: OUAHIGOUYA COUNTRY: BURKI FASO Prioy aea I TECHNCAL AND BOLOGICAL ASSUMPnONS Time period 15 yeus Total foramt aea 47.900 ha No. ompan ts 15 Averp mpartnt 3193,33 ha Forest cr dases represented ToWal Average Averp standing n class Stoddng Area comare Co 2r5 tmea Ama N: 100% 1.600 ha 106,7 ha F: 66% 9.400 626,7 Produaiviy (m3/ha/yer) M: 33% 36.900 2.460,0 High Medium Low Subtotals 47.900 3.193,3 1,0 0,3 0,5 J, i-C: 25% 0 0,0 PI 100% 0 0,0 Misllaeous aumptions: Equal diswibution of all over dasses in each compartment One compartment Is haivested per year 50% of the standig volume Is removed drig each commercial hdwood cut 3,2 steres/1,0 m REVENUE ASSUMPTIONS W1TH OFFICIAL PRICES 610 CFAF/stere to woodttens 500 CFAF/stere forest management fund 300 CFAF/stere for the fuetwood tax (permis de coupe) 200 CFAF/stere for the _opative fund 1610 CFAF/stere total official producer price for fuchvood 432D CFAF/stere, official retail price in Ouspdowu o 0,32 w0 2 3 4 5 6 7 8 9 to U u 13 14 U1. Qaml ftwood nd N cnlalnds 15 153 170 187 204 221 238 235 2 239 30 323 340 3s7 14 P aCm hbn 5 25 626 726 826 926 1I 1127 12 7 14 168 1728 818m 1829 m Ch bob 1031 145 1818 2212 26tO 2999 3393 3786 4180 4573 4967 5361 54 6148 41 Sbotkb m" 1692 2203 2714 =325 3735 af6 4757 5265 5779 62S0 001 73U 7a3 8334 8 J, I C loads 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Pbdib= (P) 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Told fiebood 1692 2203 2714 3225 3735 4246 4757 5268 5779 6201 7312 723 8334 804 dam 5414 7049 863 10318 11953 1W48 1 161 143 228 21763 23398 25W 268 30 toes 133 1762 2172 2580 2988 2397 3806 4215 4623 5053 5441 580 6258 67 71 ve_ar iim. cat tem 252876 AW remd/be de. 53 136 Ae Page 37 of 42 NATURAL FOREST MANAGEMET OUTPUT SCENARIO: OUAHIGOUYA COUNTRY: BURIWNA FASO Priority area II TECHNICAL AND BIOLOGICAL ASSUMP'I1ONS Time period 15 years Total forest arem 38.900 ha No. compartmnts 15 Avea compartmn 2593,33 ha Fors cover dasses represented Total Aveae Averae standing volume class Stodeft area Conmament 2,5 mt/ha area N: 100% 0 ha 0,0ha F: 66% 9.040 600,0 Productivity (m/ha/year) M.. 33% 29.900 1.993,3 High Medium Low Subtotals 38.900 2593,3 1,0 0,32 0,5 J, i-C: 25% 0 0,0 P: 100% 0 0,0 Miscelaneous assumptions: Equal distnbution of all cover classes in each comparment One compartment is haresed par year 50% of the staning volume is removed during each commerial fuehwood cut 3,2 steres/1,0m3 REVENUE ASSUMPTlONS W1TH OFFICIAL PRICES 610 CFAF/stere to woodcutters 50 CFAF/stere forest manageent fund 300 CFAF/stere for fuelwood tax (permis de coupe) 200 CFAF/stere for the cooperative fund 1610 CFAF/stere total officia producer price for fuetwood 4320 CFAF/stere, official retai pnce in Ouagadougou Prodszd44y asumed P4y*W Outpt 0,32 /ba/year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Units Coumldal fhuawo4 em Dl,d NClinianda V O 0 0 0 O 0 0 0 0 O 0 0 0 0 0 F Cass lands a 03 S99 695 791 887 9M3 1079 1175 1271 1367 1463 1539 1655 1751 1847 M c ns WI 835 1154 1473 1792 2111 2430 2749 3066 3387 3706 40 4344 4663 4982 3300 Subtsoea nr1 1338 1753 2168 2583 2996 3413 3828 4243 4658 5073 5488 5903 6318 6732 7147 ),3I-C lads 8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 P .sdallaiu(P) WI 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 TOWal Ielwa1 1753 2168 2183 29S9 3413 328 4243 4658 50 5 3903 6318 6732 7147 de_ 4283 3610 68 8266 9594 10922 12249 1357 14905 1623 17561 18888 20216 215 22872 to 1071 1403 1735 067 2398 2730 3062 34 726 4058 4390 4722 5054 5386 5718 15 year volme cut des 203657 Aveca rvedha deme 5.2 - 137 - X Page 38 of 42 NATURAL FORESI MANAGEMENT OUTPUT SCENARIO: OUAHIGOUYA COUNTRY: BURKINA FASO Prority area III TECHNICAL AND BIOLOGICAL ASSUMPTIONS Time period 15 years Total fores area 41.800 ha No. compartments 15 Average compartment 2786,67 ha Forest cover classes represented Total Average Average standing volume Class Stocking Area compartment 2,S mJ/ha area N: 100% 0 ha 0,0 ha F: 66% 15.200 1.013,3 Productivity (m3/ha/year) M: 33% 26.600 1.773,3 High Medium Low Subtotals: 41.800 2.786,7 1,0 0,32 0,5 J, J-C: 25% 0 0,0 P: 100% 0 0,0 Miscellaneous assumptions: Equal distribution of all cover classes in each compartment One compartment is harvested per year 50% of the standing volume is removed during each commercial fuelwood cut 3,2 steres/1,0 n3 REVENUE ASSUMPTIONS WITH OFFICIAL PRICES 610 CFAF/stere to woodcutters 500 CFAF/stere forest management fund 300 CFAF/stere for the fuehwood tax (permis de coupe) 200 CFAF/stere for the cooperative fund 1610 CFAF/stere total official producer price for fuelwood 4320 CFAF/stere, official retail price in Ouagadougou Produd*y asumed Physca Oulpus 0,32 m'/ba/yw 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Uni commerci huewod dnmovd NClaslands 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 F Cs lands 849 1012 1174 1336 1498 1660 1822 1964 2146 2309 2471 2633 2795 2937 3119 M C lands 7 743 1027 1311 194 178 2162 2446 2729 3013 3297 3S81 3864 4148 4432 4715 Subtotak m 1393 2038 2484 2930 3376 38M2 4268 4714 5160 3605 601 6497 6943 7389 7135 J I,Cd kWh 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Plantallo(P) m3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Tca talweood m L93 2038 2484 2930 3376 3822 4268 4714 3160 560S 6051 6497 6943 7389 785 dees 3096 6523 950 977 10803 12230 13637 15084 16310 17937 19364 20791 22218 23644 2507 too 1274 1631 1987 2344 2701 30SS 3414 377 4128 4484 4841 3198 3354 5911 6268 15 yea volme cut d etes226255 Avae emoved/ha oeam 5 4 138 &= x Page 39 of 42 NATURAL FOREST MANAGEMENT OUTPUT SCENARIO: OUAHIGOUYA COUNTRY: BURIaNA FASO Priority area IV TECtNCAL AND BIOLOGICAL ASSUmPTONS Thme period 15 years Total forest area 55.700 ha No. compatments 1S Averge compartment 3713,33 ha Forest cover class reprsented Total Average Average standing volume Class Stodcing Area compartment 2,5 mf/ha area N: 100% 26.900 ha 1.793,3 ha F: 66% 12.100 06,7 Productity (nd/hahrear) M: 33% 16.700 1.113,3 High Medium Low Subtotals 55.70 3.713,3 1,0 0,32 0,5 I, J.C: 25% 0 0,0 P: 100% 0 0,0 Miscellaneous assumptions: Equal distribution of all cover claes in ea compart me One compartment is halesed per year 50% of the standiig volume Is removed during each commercal fuelvood cut 3,2 steres/1,0 m' REVENUE ASSUMPTIONS WITH OFFICLAL PRICES 610 CFAF/stere to wood cutters 500 CFAF/steme fores m _ana fund 300 CFAF/stete for the fuelvood tax (permis de coupe) 200 CFAF/stere for the cooperatvie fund 1610 CFAF/stere total official producer price for fuelwood 4320 CFAF/stere, official retail price in Ouaodougou ox3t 0 hawl 0 1 2 3 4 5 6 7 8 9 10 U 12 1 14 Ua8 C*.uch uod ummo_ N am b 227 5 2564 2851 3138 342s 3712 399 4286 4573 4860 5147 543 SM 608 GM F ac 1 ,ut 676 S03 934 1063 1192 1321 1451 1580 1709 1838 1967 2096 2225 23S4 243 M am (286 467 645 823 1001 1179 7 1535 1714 I82 200 z4 2426 2604 2782 296 Sab 3420 4014 460 5203 s77 6391 6985 7s9 8173 877 9362 9956 to50 44 11m1 J, I-C h& 0 0 0 0 0 0 0 0 a 0 0 0 0 0 0 Pknln m i(P) .9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ToWaluod n w3420 4014 409 520a s77 6391 6985 779 8173 876 9362 9956 15o U144 11738 _i 1094 12846 14747 1669 1 20451 2232m 24253 26155 2806 29957 3188 33760 35661 3752 toI 2736 322 3687 4162 4637 5113 5588 W 603 6539 7014 7489 7965 840 81 93 1 yp* vdm Ca d 368 ANew NoWad/lm do= 6.5 139 An= X Page 40 of 42 NATVRAL FOREST MANAGEMENT OUTPUT SCENARIO: KOUDOUGOU COUNTRY: BURKNA FASO Prioriy area I TECHNICAL AND BIOLOGICAL ASSUMMONS Time period 15 years Total forest area: 26.900 ha No. compartments 1S Average compartment 1793,33 ha Forest cover dasses represented Total Aveage Averae standing volwne Class Stocing Area Compartment 12,5 nm/ha Area N: 100% 18.800 ha 1.253,3 ha F: 66% 6.600 440,0 Productivity (m3/ha/year) M: 33% 1.500 100,0 High Medium Low Subtotals: 26.900 1.793,33 1,0 0,83 0,5 J, J.C: 25% 0 0,0 P: 100% 0 0,0 Miscellaneous assumptions: Equal distribution of all cover classes in each compartment One compartment is harvested per year 50% of the standing volume is removed during each commercial fuelwood act 3,2 steres/1,0 mn REVENUE ASSUMPTIONS WITH OFFICIAL PRICES 610 CFAF/stere to woodcutters 500 CFAF/stere forest management fund 300 CFAF/stere for the fuehvood tax (permis de coupe) 200 CFAF/stere for the cooperative fund 1610 CFAF/stere total official producer price for fuehwood 4320 CFAF/stere, official retail price in Ouagadougou Pwdudb* umdB PbgT -_ 0,83Om /ha/e 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Uns C _mmecl tdwoo4 emoved N aaB lam 7833 8333 8874 9394 9914 1043 10954 11474 11994 t2515 13035 1355 14075 14595 15115 FC hnm ni 1815 1998 2180 2363 2545 27 2911 3093 3276 3458 3641 3824 4006 4189 437 ?4CIm km& 206 248 289 331 37 414 455 497 538 580 21 663 704 746 787 Sub teob t 955 10599 11363 12087 12832 13376 14320 1064 15 453 17297 18041 18785 19530 20274 J,JiCb at' 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Phallm(P) a 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Tetal hinod 9855 10 1343 2087 12 13576 14320 1064 L158 14553 17297 18041 18785 19530 21174 WM 315335 33916 36298 38679 41061 43442 424 4825 S7 52969 55350 57732 60113 62495 6486 f.m 7184 8M 974 9670 102 10861 11456 12I 12647 3242 13 14433 10S8 15624 16219 - 140 Annex A Page 41 of 42 NATURAL FORESr MANAGEMENT OUT SCENARIO: KOUDOUGOU COUNTRY: BURKINA FASO Priority area 11 TECHNICAL AND BIOLOGICAL ASSUMMIONS Time period 15 years Total forest area 20.100 ha No. compartments iS Average compartment 1340,00 ha Forest coer classes reptesented Total Average Averwe standing volume Class Stocking Area compartment 12,5 n'/ha area N: 100% 7.700 ha 513,3 ha F: 66% 4.000 266,7 Productivity (m'/ha/year) M4: 33% 8.400 560,0 High Medium Low Subtotals: 20.100 1340,0 1,0 0,83 0,5 J, J-C: 25% 0 0,0 P: 100% 0 0,0 Miscellaneous assumptions: Equal distnbution of all cover cases in each compartment One compartment is harvested per year 50% of the standing volume is removed during each commercial fuetwood cut 3,2 stemes/1,0 nm REVENUE ASSUMPTIONS WrrH OFFICIL4 PRICES 610 CFAF/stere to woodcutters 500 CFAF/stere forest management fund 300 CFAF/stere for the fuehrood tax (penmis de coupe) 200 CFAF/stere for the cooperive fund 1610 CFAF/stere total offiil producer price for fuelwood 4320 CFAF/stere, official retail price in Ouapadou Pdu md Pbk) OW4mb %,83 Wfayw 0 1 2 3 4 5 6 7 S 9 10 it 12 13 14 Unib Commerdw taeiwood mwed N Clans a 3208 3421 3634 3847 4060 4274 4487 470 4913 5126 53 555 S 57 6191 F Cla.m hna 1100 1211 1321 1432 1343 1653 174 1986 209 220 2317 2428 2539 2 M ca IR u 1lS5 1387 1620 182 205 2317 259 2782 3014 3247 3479 3711 3944 4176 4409 Sublat* 5463 6019 6576 7132 7618 8244 8800 9356 9912 106 11024 lW0 12137 12693 J, IC Ian m 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Pbntafioe(P) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 TOWal bw 563 6019 6576 7132 7688 824 8800 9356 5912 10468 11024 11580 12137 O693 1324 _em 17483 19262 21042 22821 24601 263 28160 2999 31719 33496 35278 37057 38837 40616 42396 tm 4371 4816 5260 57 6595 70 485 7930 8375 8819 9264 9709 1 10599 141 A Page 42 of 42 NATURAL FOREST MANAGEMENT OUTPUT SCENARIO: KOUDOUGOU COUNTRY: BURKINA FASO Piority area III TECHNICAL AND BIOLOGICAL ASSUMPTIONS Tume period 15 years Total forest area 51.600 ha No. compartments 15 Average compartment 3440,00 ha Forest cover classes represented Total Average Avera"e standing volume Class Stocking Area Compartment 12,5 mr/ha Area N: 100% 0 ha 0,0 ha F: 66% 0 0,0 Productivity (m3/ha/year) M: 33% 24.100 1.606,7 High Medium Low Subtotals: 24.100 1.606,77 1,0 0,66 0,5 J, J-C: 25% 27.500 1.833,3 P: 100% 0 0,0 Miscellaneaous assumptions: Equal distnbution of all cover classes in each compartment One compartment is harvested per year 50% of the standing volume is removed during each commercial fuelwood cut 3,2 steres/1,0 m3 REVENUE ASSUMPTIONS WITH OFFICIAL PRICES 610 CFAF/stere to woodcutters 500 CFAF/stere forest management fund 300 CFAF/stere for the fuehwood tax (permis de coupe) 200 CFAF/stere for the cooperative fund 1610 CFAF/stere total official producer price for fuelwood 4320 CFAF/stere, official retail price in Ouagadougou Pwdu assumed PbyW Ou0 0,66 ne/ha/year 0 1 2 3 4 S 6 7 8 9 10 11 12 13 14 Units Commerca fuwo ,enwved N Clama a 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 F Claaa 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 M Clas lans 3314 3844 4374 4904 5U5 S96S 649S 75 755 06 8616 9146 9676 10206 107 Subtotal W 3314 3844 4374 4904 S435 5 6495 7025 75 86 8616 9146 9676 10206 17M J, i.C land m 2865 3470 4075 4680 5285 S90 649f 7100 7705 8310 8915 9520 10125 10730 11335 Plantatom (P) m3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Todal hwood W 6178 7314 8449 9584 10719 11854 12990 14125 15260 1639 17530 18666 19801 20936 221m seam 19771 23403 27036 30669 34301 37934 41567 45199 48832 52464 56097 59730 632 66995 7062 tons 4943 5851 6759 7667 87 9483 t0M 10 12208 13116 14024 14932 1 16769 17657 ' 142- THE OUTLINE OF A BASIC MANAGEMENT PLAN Basic Information Name of the Forest/Title of the Project Participants Plan Prepared by ; Approved by __ Date Period covered by the Plan (operating years) Background Information Location of the forest/map/topography Area, with compartment detail Past use Local conditions affecting the forest Intended utilization of outputs Background on participatory management agreement Forest Situation Type(s) of forest with areas/percentages by type Stand history/condition Stocking information by compartment Growth and yield information (as available) Actual Management Objectives of the management plan Restrictions and special circumstances Cutting methods/regulation Rotation/cuttin cycle Regeneration plan Protection plan Rehabilitation/restoration plan (if any) Grazing plan Secondary products management Some major elements of a management plan. THE ECONOMICS OF NATURAL FOREST MANAGEMENT Averag votu In per he. a 12,5 Anust productivity In U per ha. a 0,a3 Rotation ao 15 years Total hecteres a 15 Case 1: Annuat cut the first 15 years urder mangement - 50X, from year 1S I lOOX Case II: Sam as Case 1, but Ifth 100X cleerance on each plot from year 1. Alnual Yields in u? Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 12,5 13,33 14,16 14,99 15,82 16,65 17,48 18,31 19,14 19,97 20,8 21,63 22,46 23,29 24,12 12,45 touvemet S6,25 6,66S 7,08 7,495 7,91 8,325 8,74 9,155 9,57 9,985 10,4 10,815 11,23 11,6$5 12,06 18,7 _emnagd 187,5 0 0 0 0 0 0 0 0 0 124,5 0 0 0 0 0 Difference -181,2 6,665 7,08 7,495 7,91 8,325 8,74 9,155 9,57 9,985 -114,1 10,815 11,23 11,645 12,06 18,7 Suetotal 23770 Reaining forest cover: 87,15 Difference 2 -175 13,33 14,16 14,99 15,82 16,65 17,48 18,31 19,14 19,97 -103,7 21,63 22,46 23,29 24,12 12,45 Suetotal 2 6918.0 Remfinfng forest cover: 87,15 Increase .20Z 7,5 7,998 8,496 8,994 9,492 9,99 10,408 10,966 11,484 11,982 12,48 12,978 13,478 13,974 14,472 22,44 Decreese Z20 150 0 0 0 0 0 0 0 0 0 99,6 0 0 0 0 0 Difference -142,5 7,998 8,496 8,994 9,492 9,99 10,488 10,986 11,484 11,962 -87,12 12,978 13,476 13,974 14,472 22,4 Year 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 12 6S 12,45 12,45 12 ,4 1 12,4 12 4S 12 5 545 12, 12,5 _anagemmnt 19,115 19,53 19,945 20,36 20,77M 21,19 21,605 22 02 22,43S 22,85 23,265 23 68 24,095 24,51 28,45 Lrtwinagd 0 0 0 0 124,5 0 0 0 0 0 0 0 0 0 124,5 Difference 19,115 19,53 19,945 20,36 -103,7 21,19 21,605 22,02 22,435 22,85 23,265 23,68 24,095 24,51 -98,05 SumtotaL Difference 2 12,4S 12,45 12,4S 12,45 -112,0 12,4S ¶2,45 12,45 12,45 12,45 12,4S 12,45 12,45 12,45 -112,0 Sustotal 2 Increase +20X 22,938 23,436 23,934 24,432 24,93 25,428 25,926 26,424 26,922 27,42 27,918 28,416 28,914 29,412 31,74 Decrease -20% 0 0 0 0 99,6 0 0 0 0 0 0 0 0 0 99,6 Difference 22.938 23.436 23.934 24.432 -74.67 25.428 25.926 26.424 26.922 27.42 27.918 28.416 28.914 29.412 -67.86 87.15 SuLatotat 1499,7 IRR 0,0416 including value of reminfng forest cover: IRR a 0,0614 X N.B. This calculation of the econmic value of natural forest magemmnt calculates only the volume fipact of ntsural forest manapgment over time. It takes neither the labour and material costs of forest mnagement into account, nor the external benefits, e.g. contimued access to medicinal plants an environmentatly beneficial impects into account. 144 Al Page 1 of 9 PROJEC1[ PROPOSALS: DETAILED DESCRIPTION Urban Fuelwood Savings Prolect 1. The problem: Previous urban fuelwood savings programs have not taken adequate account of consumer needs and motivations for stove purchase and use and have, therefore, been an ineffective instrument to promote long-term woodfuel savings. They have also not considered the potential for energy savings amongst those segments of the population who continue to use traditional cooking methods. 2. These programs have paid insufficient attention to consumption of fuelwood and charcoal in the -.:ban informal sector and the potential role this sector could play in advertising the advantages of energy saving equipment and behavior. It is estimated that they represent nearly 20% of total urban fuelwood consumption, a figure that can be expected to rise as the population grows. Activities such as food processing, and roadside restaurants are illustrative. There are, in addition, informal sector activities that could be expected to switch to modern fuels when provided the right incentives. 3. The informal sector beer brewers, who are largely women, are strong candidates for energy savings campaigns. They represent 12% of total urban fuelwood consumption and 60% of informal sector fuelwood consumption. While relatively few in number, these producers use significant amounts of fuelwood in their productive processes. To date, energy savings measures targeted at this group have been few, notwithstanding the existence on the market of a commercial stove, the Burkido, for beer production. 4. Proposed approach: The proposed project would include three components: (a) Based on marketing studies, urban stove dissemination and energy savings campaigns would be designed for each of the four major urban centers, using contemporary advertising techniques and approaches. The campaigns would be tailored to the energy consumption patterns of each city and would have as their objectives to (a) increase stove sales; (b) reinforce energy savings by emphasizing the correct use and maintenance of fuelwood stoves; and (c) expand energy conservation by strengthening energy savings opportunities in traditional cooking practices. Monitoring mechanisms would be developed to assess performance of each campaign and an evaluation of the results would be carried out to assess the impact of these campaigns. Training would be provided to ensure the development of a monitoring capability over the longer term. (b) A survey of the major biomass-consuming informal sector activities would be carried out to identify the most energy-intensive activities and actors, the nature and extent of their biomass consumption; prospects for inter-fuel substitution; incentives needed for more energy efficient productive processes and fuel switching; and other measures to increase productivity and income. A strategy and action program would 145' Anne l Page 2 of 9 be defined and pilot operations funded. An in-country seminar would be held at the condusion of the activity to present findings and preliminary conclusions from the pilot activities. (c) A dissemination program to introduce the dolotleres to the BIWkdo in the urban centers would be designed and would include (i) a sales campaign; (ii) training in use and maintenance; (iii) a small line of credit to stimulate stove sales; (iv) identification of other measures to improve efficiency in beer production, (e. literacy training; basic bookkeeping; organization of cooperatives); and (v) development of monitoring mechanisms to ensure projected energy savings. 5. ipl t amngementw The MET would be the implementing agency and would collaborate with NGOs working on stove programs. The Ministry of Commerce and IBE would be the imnplementing agencies responsible for the urban informal sector action program and doloieres' improved stove activities and would collaborate with NGOs for implementation. National technical assistance and limited expatriate technical assistance (e.g. design of advertising campaigns) would be required including an advertising/media specialist; a sociologist; home economist; an economist; a training specialist; a small-scale enterprise specialist and a stove technologist. 'tal estmated cost US$ 1.5 mllion implementation period: 2 years Funding source: to be Identified 146m Page 3 of 9 6. Th problm: An array of soctoral ministries and state agences operate within the household energy and natural resource management sectors The expansion of pilot activities executed under the Village Land Management Program into a full-scale national program and the preparation of a National Environment Action Plii will heighten the need for inter-agency coordination and cooperation. 7. Proposed approach: An analysis of the responsibities and activities of the ministries and agencies in the household energy sector will be carried out, together with an evaluation of their capacity to execute their mandate in terms of manpower availability and sklls and experience required to undertaken the expanded household energy program both for demand-side as well as supply-side activities. The extent to which in-country NGOs can assist in this process will also be evaluated. This analysis will be carried out using a partKiipatory approach that will bring together staff from the concerned ministries and agencies and NGOs to identify the issues and develop appropriate solutions including requirements for short and long term training where appropreate. 8. Implementation smets: The Ministry of Plan will have overall responsibility for execution and will ensure coordination with the concerned mnistries and agencies (Ministty of Environment and Tourisn, Ministry of Agrculture, Ministry of Commerce, lBE, and others that may be identifled the course of the study. Expatriate and local technical assistance will be required including 2 consultants experienced in the methodology of action-planning workshops; a household energy specialist; a forester; and a legal expert. This assessment will be executed within the organizational framework that will be established to execute the donor-assisted Natural Resources Management Project that was appraised in June 1990. Total estmted cost: lS$ 100,00 Implemetatltio period: 12 months Funding source: to be Identified 147'l.- Pag 4 of 9 LPG stbructur Strensierazw1 9. The problem While LPG consumption in the household setor is currently restricted to a minority of the urban population, rapid population growth will see a rise in demand. To acosmmodate this demand, certain inrstructure investments will be required to eand handling capacity. 10. P d approac: Financing will be needed to: (a) expand storage capacity at the Bingo depot by two cigars (50 ton capacity each) (USS 200,000); (b) botde maintenance equipment and a manual painting installation (USS 50,000); and (c) intalation of a manual filling line for 3 and 6 kg (US$ 25,000) bottles with a capacity of 700 tons. 11. Implementatio amngements: SONABHY will be implementing agency and will tender the civil works. Tot esthmated cost US$ 275,0 Implementtio perlo& 12 months Funding source: to be identikd - 148 mm X Page S of 9 LGStov Deeopet and Pro imoto oeita 12. lle problem: 'here are formidable psychological/cultural barriers to increased LPG use amongst households already possessing an LPG stove. These obstacles must be removed to ensure that the population identifies the advantages of LPG and intensifies its use. In addition, the LPG stove models on the market are ill suited for the different pots used in the Burkinabe cuisine; adjustments are required to ensure a correct fit. Moreover, an important share of the urban population not now acquainted with the advantages of LPG will be obliged to shift to this fuel over the longer term. 13. Proposed approadu An advertising campaign would be developed and launched to introduce the higher income population groups to the advantages of LPG and to promote its more extensive use in LPG-using households. Investigations would also be carried out to identify the adjustme.nts required to LPG stove models to make them compatible with the different pots used for cookhig. Expatriate and national technical assistance would be required including: a stove technologist; an advertising specialist and a sociologist. 14. Implementation arrangements: SONABHY will be responsible for coordinating the execution of the activities vith IBE, and the private oil companies. Tot esthmated cost: US$ 75,000 Implementation perod-. 10 mouths Funding source: to be idented - 149- x Page 6 of 9 15. lbe problem: There are several obstacles to broad scale penetration of kerosene. The first is the absence of a kerosene stove adapted to local cooking requirements. The second concerns kerosene prices: the price advantage of kerosene at the service stations is largely eroded by the high margins in the retail chain. Gwen the high transaction costs of retail operations, reducing the retailers' margins is not an option. A reduction in these costs can only come about by improving the service provided by the wholesalers, e.g. by serving retail stores directy from pumps mounted on small pick-ups. price advantage of kerosene at the service stations is largely eroded by the high margins in the retail chain. 16. Proposed approach: Two components would be developed. The first would test kerosene stove models both in the laboratory and on the market to ensure maximum energy efficiency and consumer acceptability. A kerosene promotion campaign would be developed. The second component would consist of a study to review and analyze the true cost structure of kerosene retailing, current levels of weekly sales and identify and make recommendations on ways to capture kerosene's price advantage through improvements in wholesalers' services. 17. Implementation arrangements: IBE and SONABHY would be responsible for the kerosene stove component. The services of a stove technologist, sociologist, and advertising specialist would be needed. SONABHY would be responsible for the promotion campaign and for contracting a petroleum products expert to carry out the study. Total estimated cost USS 100,0 Implementatio perlod: 10 months Funding source: to be Identfed Page 7 of 9 18. The problem 'he management and conservation of natural resources requires the collective action of many miistties and agencies that frequently have few avenues of coordination. One key issue to the success of the proposed urban household energy strategy is the establishment of mechanism to ensure the recovery of wood that is the by-product of land clearing for agricultural development. In many cases, land areas targeting for agriutural development are i zones that have been identified as priority areas for active woodland management to supply fuelwood to the urban centers To ensure that this wood is recovered, arrangements have to be identified to ensure that the responsible ministries take the necessary steps to ensure the availability of wood as an energy source. 19. Propose apprach: A 5-day workshop would be held in which designated officials from concerned ministries would engage in a participative process of planning and decision making that will aim to identify the problems and constraints involved in expanding agricultural output, while at the same time, ensuring a sustainable supply of fuelwood for the urban and rural populations over the longer term. Alternatives will be identified to improve inter-ministerial coordination and oowperation on this question and an action plan will be designed and presented for consideration to the inter-ministerial committee for the Lutte Contre la DNsertification. 20. Implementation amngments: The Ministry of Plan would be responsible for management of the seminar and would contract the services of two consultants experienced in the methodology of action-planning workshops. The MET and the Ministry of Agriculture would be the principal participating ministries. Total estimaed cost US$ 4S0 Implementatio period: 6 weeks Funding soure: to be Identfed - 151- Page 8 of 9 21. The problem: Faced with rapid population growt, new alternatives and more efficient management tecluiques need to be identified and tested. There are lVe areas of old fallow and degraded lands found within a 50 mile radius of the urban centers that supply fuelwood to urban area. Fuelwood coming from these areas already contributes substantily to overall supply. Iere is, however, no formal management of wood resources on these lands and they are exploited without attention to ownership or susainability. Although there is little information on the growth, biomass production and management of these degraded areas, their location, less tan 50 km from the city centers, provides an economic incentive for managing any wood product surpluses. 22. The introduction of sustainable management techniques, both for fallow and degraded woodlands as well as for national forests and do proaep e zones wdi require institutional strengthening as well as the possibility of a realignment of funcions and responsibilities. This aspect of natural resource management is being examined within the framework of the National Environment Action Program. Nonetheless, there are a number of institutional issues that can be addressed over the short term that will be consistent with the objectives and guidelines of this Plan. 23. Proposed approach: A project would be undertaken as a complement to on-going management experiments in the national forests. It would: (a) oontinue the process of preparing forestry management plans for the four urban supply zones, (b) strengthen the famework of the MET through a series of measures that would aim to identify training needs of MET personnel to carry out their expanded mandate and (c) test the feasibility of managing a large area of old fallow and degraded lands found within a short distance of Ouagadougou. Ihe keystone of the management process will be local participation and the development of a partnership between village-based management structures and the national ministry. 24. The primary objective would be to develop (or improve) village-level multiple use management of forest, fallow, and field trees in areas having a potential for producing a fuelwood surplus for the Ouagadougou markets. The specific management objectives in each village wil be determined through an assessment of local needs and desires. A secondary focus will be to develop management options for products identified as important by local villages. A foresay management plan would be prepared by the MET in close collaboration with the resident populations. lhe management plan would consist of the technical social, fnancial, and economic guidelines for managing the woodlands in the identified zone. This plan would be implemented by a woodlands management cooperative that would be created under the project and would be made up of volunteers from a local village. The rights and obligations of the cooperative and the MET, with specl attention to land and tree tenure, would be the subject of a 'cahier de charge. The experience would be closely monitored and periodic seminars held to review findings and conclusions and discuss policy implications. - 152- A 1 Page 9 of 9 25. The ptoject would consist of three components: (a) institutional strengthening; (b) forestry management planning and (c) management of a pilot zone of old fallows and degraded woodlands. (a) lg'; This component would assist in (i) the creation of the Urban Fuehwood Workig Group and (ii) identification of staffimg and trainag issues anchored in a needs assessment seminar to be organized for MET personnel; (iii) the design of short and longer term training programs for national and local forestry staff, (iv) establisUment of a computerized monitoring and control stem for transport permits and training of local staff in its operations; (v) streamlining of forestry fine recovery stem; (b) aLes managenent I nningi This component would include (i) satellite imagery and preparation of maps to delineate forestry management areas in the four urban supply zones; (ii) definition of lega/administrative framework for creation of natural woodlands management cooperatives within the village land management structure including a model agreement setting out rights and obligations of govermment and the cooperative network; (iii) design of research program for forestry management including, interg establishment of permanent sample plots to collect data on species response to treatment; sylvo-pastoral management techniques and the impact of grazing on forest productivity; development of field guidelines for preparation of forestry management plans; and (iv) review of exsting regulatory framework and recommendations for modifications/consolidation/deletion together with national level seminar for concerned staff on their interpretation and application; and (c) Vie-based fallows and deaded lands pilot eWeriment: A pilot zone covering about 20,000 hectares of marginal agricultural areas has been identified in an area located between 2040 kms northwest of Ouagadougou. Land is, for the most part, communally owned with disputes settled by the vilage chief. Dead wood for fuel is collected throughout the year by women and is used largely for self-consumption; none is sold. Short and long poles for construction are harvested at the begining of the dry season and is cut green. Activities will include: woodlands management for fuelwood and construction wood; field and forest fruit tree management; production of secondary forest products e.g. bark, seeds leaves roots flowers etc; rangeland and fire management; planned fallow; and management and restoration of denuded areas. 26. ImplementatIon arageents: ITe Direction des Forets et du Reboisement (D/EF) of the MET will be the main executing agency and will liaise closely with other Burkinabe institutions in the rural sector. Totl esd cost: US$ 5 minio ImplmentatIon period 5 yea Funding arrnements: To be Idetllled -153 - 153-ay IMPACT ON FUELWOOD DEMAND OF DEMAND SIDE INTERVENTIONS Year 1987 1988 1969 1990 1901 1S92 1993 1804 1S9S 1896 1897 i8 Tot Fuetwood Demand, 4 CIties 275674 296397 3239 360262 3796 411892 4466 484566 525946 671047 S020567783 ToW Urban Demand 331473 368 382763 411661 443071 4728 514068 564246 597864 646287 696601 752643 D sman aftr Impvovd Stoes Program 331473 3560 382763 411661 433231 462974 494625 52922 5S613 6o0s72 648366 804141 Demand after LPG Program 331473 366086 382763 411691 433231 460642 487 520778 563728 566763 6S015 866624 Demand after LPG and Kerosene Progrm 331473 366086 382763 411691 433231 46s122 488666 515637 546462 5791o9 613717 660394 Growth Rate Pogression 0,06976 1990 2030 Demand Wxresse Told Urban Demand 411661 880145 468456 Demand after Impovd Stoves Program 411691 79620Q 384611 Overapping Area 341157 Denumd after LPG & Kerosene Progran 411691 735618 323927 83943.63 Inremental Improved Stove Savngs 932 3913 7473 116S0 16687 22546 29400 37366 Impoved Stove Savings nci. Other CItis 1068 4535 6603 13382 189 25476 33031 41775 Savings In Ifomial Sedor 8752 S617 10687 11611 12759 14019 15404 1896S TotW IrVoved Stove SrAings 9640 14152 19170 24893 31727 39486 48X36 6S7 incremental LPG Promotion Savings LPG Promotion Impact on Improved Stove Progran Net Incrlmental LPG poti Incremental Kerosen & LPG Savings Impact on Improved Stove Savings Net Saings of Keosene & LPG Promoton Year 1999 2000 2001 2002 2D03 20D4 2006 2008 2007 2008 2009 2010 Total Fuedwood Demand 4 ClUea 732231 796969 865473 941312 1024067 1114384 1212970 132600 1436124 156*470 17086661669766 Tota Urban Demand 813807 880145 962363 10309731116697 120975131151614223001543076 16747831818461975154 Demand afer Impved Stove Program 743331 796202 929896 10062B9 1089674 11e0919 12e028138261 150148 1634701 1774916 512784 Demand after LPG Program 707740 760360 Demand afte LPG & Kerosene Proga 689262 735618 Growlh Rate Pgram 0,06976 Total Urban Demand Demand after Improed Stove Progrun - Are Demand after LPG & Kerosene Prognam WInreme kntlIproved Stov Savings 46677 57433 Imovsd SOv Saings ne. Othr C 61877 63608 Savinp in bfOfW Sedor 18699 20436 22456 24674 27112 Tota Ipod Stov" Savnp 70476 83944 22456 24874 27112 Inremea LPG Promton Savbngs 45615 Lp9 Prmoion Impgc on Inproved Stm Progran 9764 mm irwramenial LPG PromoUGon 36861 bWWWns41 Keoee & LPG Savng 77814 hnpau on hMroved Stove Sags 17230 Nat sam* of Ifroen & LPG Prom. 6064 ECONOMIC VALUE OF MPROVED STOVE PROGRAM Irtat for , d Bob-Woulasso, Kouougou, *iahisouya Staves pe use: 1,9 Averabe lifetica: 3 yers Fualtsod Savirs per yar vW per stove: 235 kg 5875 CFAF Ec=ic vaWu of I kg fulood: 25 CFAF Cost of oleacho stow: 300 CFAF Avare cost of ioproved matal stove: 1125 CFAF 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 TOTAL Population of the 4 cities 709311 779392 656396 941008 1033979 1136136 1248386 137172 1507254 1656870 1819800 Nouseholds fn the 4 cities 84442 9275 101952 112025 123093 135254 148617 163301 179435 19724 216643 Unchauged penatration rate 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 Penetration rate with progression 0.35 0.395 0.44 0.48S 0.53 0.575 0.62 0.665 0.71 0.755 0.8 Stove users without program 2955S 32475 35683 39209 43062 47339 52016 57155 6280. 69036 75825 Stove users with proorm 29555 36650 44859 54332 65239 77771 92143 100595 127399 148921 173314 am stoves without program 4400 5548 6096 669 7360 68? 86 9764 10729 11845 12699 92314 Oe stoves with program 4400 13481 1SS97 179 20724 23811 27306 31259 35727 40892 46347 277543 Replacemnt stoves without program 4000 4200 4400 4400 SS48 6096 6696 7360 87 886 9764 69441 Replcement stoves with program 4000 4200 400 8400 9748 10496 11096 12906 14184 SS85 17125 1121t Total stoves sold without program 8400 9748 10496 11098 12906 14184 15585 1712S 1817 20731 22663 161755 Total sotd stoves with program 6400 17681 19997 26399 30472 34307 804 166 49911 S677 63472 388 Additional w stoves due to program 0 7933 950 101 13363 15723 18420 21495 24998 29048 33449 185230 Additiona reptacemnt stovs 0 0 0 4000 4200 00 4400 5548 6096 6698 730 42703 Additional total stowes 0 7933 9S01 15301 17563 20123 22820 27043 31094 35746 40809 2273 Additional fuslwood s.vwngs/ton 0 932 3913 7473 11649 16687 22546 29400 37369 46677 57433 234150 Value of fuel savings in millions CFAF 0 23 98 187 292 417 S64 735 935 1167 1436 5854 Cost of stoves in itllion CFAF 0 7 8 13 14 17 19 22 26 29 34 186 Cost of promotions, willion CFAF 0 30 30 30 30 30 30 30 30 30 30 300 Net value of progrm in millions CFAF 0 (13) 60 144 248 371 S15 683 879 1107 1372 UPN at 10 percent discount rate 2595 milL CFAF u ZUS 8650 .1Lt. IRR 569,27% ENERGY SECTOR MANAGEME ASSISTANCE FROG COMNPLETED ACTIVITIES Country Activy Date Number SUB-SAHARAN AFRICA Africa Regional Anglophone Africa Household Energy Workshop 07/88 085/88 Regional Power Seminar on Reducing Electric Power System Losses in Africa 08/88 087/88 Institutional Evaluation of EGL 02/89 098/89 Biomass Mapping Regional Workshops 05/89 - Francophone Household Energy Workshop 08/89 103/89 Interafrican Electrical Engineering College: Proposals for Short- and Long-Term Development 03/90 112/90 Biomass Assessment and Mapping 03/90 - Angola Energy Assessment 05/89 4708-ANG Benin Energy Assessment 06/85 5222-BEN Botswana Energy Assessment 09/84 4998-BT Pump Electrification Prefeasibility Study 01/86 047/86 Review of Electricity Service Connection Policy 07/87 071/87 Tuli Block Farms Electrification Study 07/87 072/87 Household Energy Issues Study 02/88 - Urban Household Energy Strategy Study 05/91 132/91 Burkina Faso Energy Assessment 01/86 5730-BUR Technical Assistance Program 03/86 052/86 Urban Household Energy Strategy Study 06/91 134/91 Burundi Energy Assessment 06/82 3778-BU Petroleum Supply Management 01/84 012/84 Status Report 02/84 011/84 Presentation of Energy Projects for the Fourth Five-Year Plan (1983-1987) 05/85 036/85 Improved Charcoal Cookstove Strategy 09/85 042/85 Peat Utilization Project 11/85 046/85 Cape Verde Energy Assessment 08/84 5073-CV Household Energy Strategy Study 02/90 110/90 Comoros Energy Assessment 01/88 7104-COM Congo Energy Assessment 01/88 6420-COB Power Development Plan 03/90 106/90 C6te d'Ivoire Energy Assessment 04/85 5250-IVC Improved Biomass Utilization 04/87 069/87 Power System Efficiency Study 12/87 - Ethiopia Energy Assessment 07/84 4741-ET Power System Efficiency Study 10/85 045/85 Agricultural Residue Briquetting Pilot Project 12/86 062/86 Bagasse Study 12/86 063/86 Cooking Efficiency Project 12/87 - Gabon Ener Assemet 07/88 6915-GA -2- Country Activ Date Number The Gambia Energy Assessment 11/83 4743-GM Solar Water Heating Retrofit Project 02/85 030/85 Solar Photovoltaic Applications 03/85 032/85 Petroleum Supply Management Assistance 04/85 035/85 Ghana Energy Assessment 11/86 6234-GH Energy Rationalization in the Industrial Sector 06/88 084/88 Sawmill Residues Utilization Study 11/88 074/87 Guinea Energy Assessment 11/86 6137-GUI Guinea-Bissau Energy Assessment 08/84 5083-GUB Recommended Technical Assistance Projects 04/85 033/85 Management Options for the Electric Power and Water Supply Subsectors 02/90 100/90 Power and Water Institutional Restructuring (French) 04/91 118/91 Kenya Energy Assessment 05/82 3800-KE Power System Efficiency Study 03/84 014/84 Status Report 05/84 016/84 Coal Conversion Action Plan 02/87 - Solar Water Heating Study 02/87 066/87 Peri-Urban Woodfuel Development 10/87 076/87 Power Master Plan 11/87 - Lesotho Energy Assessment 01/84 4676-LSO Liberia Energy Assessment 12/84 5279-LBR Recommended Technical Assistance Projects 06185 038/85 Power System Efficiency Study 12/87 081/87 Madagascar Energy Assessment 01/87 5700-MAG Power System Efficiency Study 12/87 075/87 Malawi Energy Assessment 08/82 3903-MAL Technical Assistance to Impove the Efficiency of Fuelwood Use in the Tobacco Industry 11/83 009/83 Stats Report 01/84 013/84 Islamic Republic of Mauritania Energy Assessment 04/85 5224-MAU Household Energy Strategy Study 07/90 123/90 Mauritius Energy Assessment 12/81 3510-MAS Status Report 10/83 008/83 Power System Efficiency Audit 05/87 070/87 Bagase Power Potential 10/87 077/87 Mozambique Energy Assessment 01/87 61^8-MOZ Household Electricity Utilization Study 03/90 113/90 Niger Energy Assessment 05/84 4642-NIR Status Report 02186 051/86 Improved Stoves Project 12/87 080/87 Household Energy Conservation and Substitution 01/88 082/88 Nigeria Energy Assessment 08/83 4440-UNI Rwanda Energy Assessment 06/82 3779-RW Status Report 05/84 017/84 Improved Charcoal Cookstove Strategy 08/86 059/86 Improved Charcoal Production Techniques 02/87 065/87 -3- Country Actvty Date Number Sao Tome and Principe Energy Assessment 10/85 5803-STP Senegal Energy Assessment 07/83 4182-SE Status Report 10/84 025/84 Industrial Energy Conservation Study 05/S5 037/85 Preparatory Assistance for Donor Meeting 04/86 056/86 Urban Household Energy Strategy 02/89 096/89 Seychelles Energy Assessment 01/84 4693-SEY Electric Power System Efficiency Study 08/84 021/84 Sierra Leone Energy Assessment 10/87 6597-SL Somalia Energy Assessment 12/85 5796-SO Sudan Management Assistance to the Ministry of Energy and Mining 05/83 003/83 Energy Assessment 07/83 451 1-SU Power System Efficiency Stu. 06/84 018/84 Status Report 11/84 026/84 Wood Energy/Forestry Feasibility 07i87 073/87 Swaziland Energy Assessment 02/87 6262-SW Tanzania Energy Assessment 11/84 4969-TA Peri-Urban Woodfuels Feasibility Study 08/88 086/88 Tobacco Curing Efficiency Study 05/89 102/89 Remote Sensing and Mapping of Woodlands 06/90 -- Industrial Energy Efficiency Technical Assistance 08/90 122/90 Togo Energy Assessment 06/85 5221-TO Wood Recovery in the Nangbeto Lake 04/86 055/86 Power Efficiency Improvement 12/87 078/87 Uganda Energy Assessment 07/83 4453-UG Status Report 08/84 020/84 Institutional Review of the Energy Sector 01/85 029/85 Energy Efficiency in Tobacco Curing Industry 02/86 049/86 Fuelwood/Forestry Feasibility Study 03/86 053/86 Power System Efficiency Study 12/88 092/88 Energy Efficiency Improvement in the Brick and Tile Industry 02/89 097/89 Tobacco Curing Pilot Project 03/89 UNDP Terminal Report Zaire Energy Assessment 05/86 5837-ZR Zambia Energy Assessment 01/83 4110-ZA Status Report 08/85 039/85 Energy Sector Institutional Review 11/86 060/86 Power Subsector Efficiency Study 02/89 093/88 Energy Strategy Study 02/89 094/88 Urban Household Energy Strategy Study 08/90 121/90 Zimbabwe Energy Assessment 06/82 3765-ZIM Power System Efficiency Study 06/83 005/83 Status Report 08/84 019/84 Power Sector Management Assistance Project 04/85 034/85 Petroleum Management Assistance 12/89 109/89 Power Sector Management Institution Building 09/89 - Charcoal Utilization Prefeasibility Study 06/90 119/90 Country Activiy Date Number ASIA AND THE PACIFIC Asia Regional Pacific Household and Rural Energy Seminar 11/90 - Bangladesh Energy Assessment 10/82 3873-BD Priority Investment Program 05/83 002/83 Status Report 04/84 015/84 Power System Efficiency Study 02/85 031/85 Small Scale Uses of Gas Prefeasibility Study 12/88 - China County-Level Rural Energy Assessments 05/89 101/89 Fuelwood Forestry Preinvestment Study 12/89 105/89 Fiji Energy Assessment 06/83 4462-FLJ India Opportunities for Commercialization of Nonconventional Energy Systems 11/88 091/88 Bagasse Cogeneration Preinvestment Study 07/90 120/90 Indonesia Energy Assessment 11/81 3543-IND Status Report 09/84 022/84 Power Generation Efficiency Study 02/86 050/86 Energy Efficiency in the Brick, Tile and Lime Industries 04/87 067/87 Diesel Generating Plant Efficiency Study 12/88 095/88 Urban Household Energy Strategy Study 02/90 107/90 Biomass Gasifier Preinvestment Study 12/90 124190 Malaysia Sabah Power System Efficiency Study 03/87 068/87 Myanmar Energy Assessment 06/85 5416-BA Nepal Energy Assessment 08183 4474-NEP Status Report 01/85 028/84 Papua New Guinea Energy Assessment 06/82 3882-PNG Status Report 07/83 006/83 Energy Strategy Paper Institutional Review in the Energy Sector 10/84 023/84 Power Tariff Study 10/84 024/84 Solomon Islands Energy Assessment 06/83 4404-SOL South Pacific Petroleum Transport in the South Pacific 05/86 - Sri Lanka Energy Assessment 05/82 3792-CE N Power System Loss Reduction Study 07/83 007183 Status Report 01/84 010/84 Industrial Energy Conservation Study 03/86 054/86 Thailand Energy Assessment 09/85 5793-TH Rural Energy Issues and Options 09/85 044/85 Accelerated Dissemination of Improved Stoves and Charcoal Kilns 09/87 079/87 Northeast Region Village Forestry and Woodfuels Preinvestment Study 02/88 083/88 Impact of Lower Oil Prices 08/88 -- Coal Development and Utilization Study 10/89 Tonga Energy Assessment 06/85 5498-TON Vanuatu Energy Assessment 06/85 5577-VA Westem Samoa Energy Assessment 06/85 5497-WSO -5-- Country ActiWty Date Number EUROPE, MIDDLE EAST AND NORTH AFRMCA (EMENA) Morocco Energy Assessment 03/84 4157-MOR Status Report 01/86 048/86 Pakistan Household Energy Assessment 05/88 - Assessment of Photovoltaic Programs, Applications, and Markets 10/89 103/89 Portugal Energy Assessment 04/84 4824-PO Syria Energy Assessment 05/86 5822-SYR Electric Power Efficiency Study 09/88 089/88 Energy Efficiency Improvement in the Cement Sector 04/89 099/89 Energy Efficiency Improvement in the Fertilizer Sector 06/90 115/90 Tunisia Fuel Substitution 03/90 -- Turkey Energy Assessment 03/83 3877-TU Yemen Energy Assessment 12/84 4892-YAR Energy Investment Priorities 02/87 6376-YAR Household Energy Strategy Study Phase I 03/91 126/91 LATIN AMERICA AND THE CARIBBEAN (LAC) LAC Regional Regional Seminar on Electric Power System Loss Reduction in the Caribbean 07/89 - Bolivia Energy Assessment 04/83 4213-BO National Energy Plan 12/87 - La Paz Private Power Technical Assistance 11/90 111/90 Natural Gas Distribution 03/91 125/91 Prefeasibility Evaluation Rural Electrification and Demand Assessment 04/91 129/91 Chile Energy Sector Review 08/88 7129-CH Colombia Energy Strategy Paper 12/86 -- Costa Rica Energy Assessment 01/84 4655-CR Recommended Technical Assistance Projects 11/84 027/84 Forest Residues Utilization Study 02/90 108/90 Dominican Energy Assessment 05/91 8234-DO Republic Ecuador Energy Assessment 12/85 5865-EC Energy Strategy Phase I 07/88 -- Energy Strategy 04/91 Haiti Energy Assessment 06/82 3672-HA Status Report 08/85 041/85 Honduras Energy Assessment 08/87 6476-HO Petroleum Supply Management 03/91 128/91 Jamaica Energy Assessment 04/85 5466-JM Petroleum Procurement, Refining, and Distribution Study 11/86 061/86 Energy Efficiency Building Code Phase I 03/88 - Energy Efficiency Standards and Labels Phase I 03/88 -- Management Information System Phase I 03/88 Charcoal Production Project 09/88 090/88 FIDCO Sawmill Residues Utilization Study 09/88 088/88 Panama Power System Efficiency Study 06/83 004/83 - 6 Country Activiy Date Number Paraguay Energy Assessment 10/84 5145-PA Recommended Technical Assistance Projects 09/85 - Status Report 09/85 043/85 Peru Energy Assessment 01/84 4677-PE Status Report 08/85 040/85 Proposal for a Stove Dissemination Program in the Sierra 02/87 064/87 Energy Strategy 12/90 -- Saint Lucia Energy Assessment 09/84 5111-SLU St. Vincent and the Grenadines Energy Assessment 09/84 5103-STV Trinidad and Tobago Energy Assessment 12/85 5930-TR GLOBAL Energy End Use Efficiency: Research and Strategy 11/89 Women and Energy--A Resource Guide The International Network: Policies and Experience 04/90 060791 IBRD 22468 3. To Gour ) 2 A 'Yako Nflou 1 , As.i, Atbl v \ai To foum(a T iemba I R / / N W ^1~~~~hdilo(to o ouusse Dapel0og / (t) Dldir { 9 * / \Pu~~~~flbre + oumbil a 9 ' ~~~~~kindi() J nf t To A(outw i_ g RoBngo) -)\AG D()(.OU Koudougoiu n*gani' in- \ ktede - Ko~~~~~~~~~~~~ubri lenado ),, / Kolvl)logo kurgdtdf)gd TO df.dADe ANSdpFR (OCOE - R98 s ( 2~f KIO\fl '- Prority Zonos fnga gd1 Forest .anagm_ 7io C1t lotPo,ars dAmngmw / "'' star ou Oad Fara oo (Sdp/outaI Xf ~~~~~~~~~~~~~~~~~~~~o -_ hjt*g 0dLeo BURKINA FASO LAND USE AND FORESTRY RESOURCFS (OCT013ER -NOVEMBER 1987) OCCUPATION DU SOL *'T DES RES5OURCES FOR,ES1FRES (OCTOBRE - ANOl'EItBRE 1987) ACTUAL AND POTENTIAL SUPPLY ZONE FOR OUAGADOUGOU AND KOUDOUGOU ZOIVE O'APP1ROtI//5'1NEAfFANTAC JiJfLLf7 ET POTEAL-T/ELE POUJR OLACAG4COLlJ fET A'OULDOOGOLU Supply /one B3oundar) Rikelrs I Imite de lId one d4pprot stonnenit toir, didu n IO 2t)14 .n HiOMFIERS , Priorit), Zo nes foar t)uagadougou Forestrn Nanagernent National Cdplldl ,; -,,. lonf . 1)hogawrjes >od me n gement /zore,1/1r-(iptte ,§ ,, S,, . PriorIlV Zones blr Fhrostr) Management lor Koudougou Region Capitalte zones Ptiortirar dA4mendgeme7h forestier 0 ,ep aes pour kouduugou ROADS. Important Villages- Paved I 'Il/g.es Impwianls ,_ _ Birhm(V forest Plantations Unpaved 1IVdwaatons forvslteres *ALI Gl A Ordrnaire National forests IASO Unpaved Class A Dtmtdln (dasse tas se A Ameblotee c::cMc== Internatioinal Boundaries Upgraded Cldss B fctranonaionleo N ('Iade , Amelior6e' July 1991 IBRD 22469 3' ,07 2130' 2' MA LlI Ban -14 1 r~~~~~~~~~~~~~Rma Segenega (^ TO/ (orT Kongoussi \ 2,5Zagore~~~~~~~Ig Me> To Tougan / ~~~~~ 4 "is-, , \~ ~ 10 20 30 - ^ t ~~~~~~~KILOMETERS To Yako BURKINA FASO IAND USE AND FORESTRY RESOURCES (NOVEMBER 1987) OCCUIPATION DU SQL FT DES RESSOURCES FORES TIERES (NO VEMBRE 1987) ACruAL AND POTENTIAL SUPPLY ZONES FOR OlJAHIGOUYA J ~~~~ZONES D'APPROVISIO NNEAt ACULLf FT POENT/FIE POR OUAHGLY lht,¢,/d,arl.,k,tJn l,>i; iTSupply Zone Boundary Rivers lr,ZvJ 2|¢A;~¢t>d$Ursit iinite deIa,&ii= dAo siarnwnt GxagsdEau (~~~~~~~~___ Nv,~ -,l raeti onlsfo aesr .le Natr;;pital Kiem t1rntns d Arr taier C#241e %sEsouzlwe sepvr ~ ~ ~ ~ ~ ~ ~ ~ ~~~orc xr>ol I Ztv fw- ~~~Roads: Region Capital d 4t ^ ~~~~~~~Roultes: Capitale RBegionale I _~~~~~~~ Paved Important Villages +; , ~~~~~ eiPtumee 0 ~ V;/lages Importants 1s1 A L i GIGEIA IJUnpaved Villages f~~~~~~~~~~~~~~~~~~~~ ~ 111 20IIs 30 ,>y o 2 _~~ Upgraded Class A _____ International Boundaries ( BURKINA F O Classe A Ameioree .frontieres Internationa/es 7 @ ( _ ~~~~~~Upgraded Class B3 ( 3 ~~~~~~~~~C/asse B Ame/ioree < GHANA \RgM ~~~2-30' 2 July 1991 IBRD22470 10 30 To lo . MA LI To 8ena Kouka RKIN Dougouy/~~~~~~~~~~~~~~~~~~~~~~~ , +/ / lugo To &HAut Koun-* Dande 0 - 4 to > -u/ sBala 0 To Hlounde Banzo"d Orodr ; _ Kelesso , / \E, _ S ~~~~~~~~~~~~~~~~~~~Bondigui 2,z,ebO'dS BURKINA FASO LAND USE AND FORESTRY RESOURCES (OCTOBER - DECEMBER 1987) OCCUPA TIONI DU SOL fT DES RESSOLRCES FORESTIERES (OCTOBRE -DECEMBRE 1987) A '0 t}ACTUAL AND POTENTIAL SUPPLY ZONE FOR BOBO-DIOULASSO ZONE D'APPROVISIONNEMENTACTUELLE FT POTENT/WE POUR BOBO-DIOU,LA550 I.uppfh Zone Boundarn err !/mite de /d Zone d 4pprousrnrnnelnent (ours difu Prmnrulo lones tor F(mr'.tr\ Mdnigement Pegon capital Zone. Irnor,tfjnrs dnmewndgtrient fure.twer R(gpionk Regiondle .fnpmlitant \Villages ftt9t~~~~~~~~~~~~~~~~~~~~ 'ilieV.2po.di Pa\ed O f (re'It l'iantahlmn flitumve Pm,ntdtfOnm forestikrei tj_Ipaded Nadt(ondl rorv ts Ojrdmnawrr ODmaimn ( lasso Lipgradted Class A International Boundartie (-Id.e 4 Ame/lOreY fIrontiereu InfcnIdtloJna ;.i. Ltipg.aded Cllajs B t/a., f Amellur ;r 10t 20 10 Kit()IO1I I RI' L I I July 1991