Document of The World Bank FOR OFFICIAL USE ONLY MICROE'ICHE COPY Report No. 10503-GA Report No. 10503-GA Type: (SAR) TALL, MADA/ X35180 / J3811I/ AE'lAG STAFF APPRAISAL REPORT THE GABONESE REPUBLIC FORESTRY AND ENVIRONMENT PROJECT JUNE 10, 1992 Agricultural Operations Occidental and Central Africa Department This document has a restricted distribution and may be tu ed by recipients oniv in the performance of their offici'al duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EOUIVALENTS Currency Unit = CFA Franc (CFAF) US$1 = CFAF 278 (December 1991) WEIGHTS AND MEASURES Metric System ABBREVIATIONS AND ACRONYMS BADEA - Banque Arabe pour le Developpement Economique de l'Afrique CCP - Comite de Coordination du Projet CENA - Club des Ecologistes et Naturalistes Africains CENAP - Centre Natior.al Anti-Pollution CFG - Compagnie Forestiere du Gabon CIDA - Canadian International Development Agency CTFT - Centre Technique Forestier Tropical DGEF - Direction Gdnerale des Eaux et Forets DFC - Direction de la Faune et Chasse DGEPN - Direction Generale de l'Environnement et de la Protection de la Nature EAP - Environmental Action Plan ENEF - Ecole Nationale des Eaux et Forets FAC - Fonds d'Aide et de Cooperation (France) FAO/CP - Food and Agriculture Organization/Cooperative Program FEG - Front des Ecologistes Gabonais GTZ - Gesellschaft fur Technische Zusammenarbeit (Federal Republic of Germany) IADR - Inter-Assistance pour le Developpement Rural IRAF - Institut de Recherches Agronomiques et Forestieres IRET - Institut de Recherche en Ecologie Tropicale IUCN - International Union for the Conservation of Nature MEF - Ministere des Eaux et For&ts METPN - Ministere de l'Environnement, du Tourisme et des Parcs Nationaux MESRS - Ministere de l'Education Secoidaire et de la Recherche Scientifique NEAP - National Environmental Action Plan OCTRA - Office du Chemin de Fer Transgabonais ORSTOM - Office de la Recherche Scientifique dans les Territoires d'Outre-Mer PCU - Project Coordination Unit SAL - Structural Adjustment Loan SHM - Societe de la Haute Mondah SNBG - Soci6te Nationale des Bois du Gabon SOMIVAB - Societe de Mise en Valeur du Bois TFAP - Tropical Forestry Action Plan UNDP - United Nations Development Program WWF - World Wildlife Fund GOVERNMENT FISCAL YEAR January 1 - December 31 FOR OFFICIAL USE ONLY THE GABONESE REPUBLIC FORESTRY AND ENVIRONMENT PROJECT TABLE OF CONTENTS Paae DOCUMENTS CONTAINED IN THE FROJECT FILE . ..............iii..... ..Lii LOAN AND PROJECT SUMMARY ............................................ iv I. INTRODUCTION .................1.................... 1 II. SECTOR BACKGROUND .............................................. 2 A. Economic Setting ................... ..1..................... B. The Agricultural Sector ................................... 6 C. The Forestry and Environment Sector ........................ 7 1. Forest Resources ..................................... 7 2. Other Natural Resources .............................. 7 3. National Parks and Reserves .......................... 8 4. Environmental Legislation ............................ 8 5. Institutions in the Sector ........................... 9 6. Forest Exploitation .................................. 12 7. The Timber Industry .................................. 13 8. The Fiscal System .................................... 13 D. Sector Strategy ........................................... 14 E. Donor Activity ...... ................ ...................... 15 F. Bank Involvement in Gabon ................................. 16 G. Lessons Learned ................... .. ...................... 17 III. THE PROJECT .................................................... 17 A. Project Rationale, Objectives and Description .... ......... 17 B. Detailed Features ....................... 19 (a) Institutional Strengthening .......................... 19 (b) Forestry and Environment Training .................... 20 (c) Forestry and Environment Research .................... 21 (d) Forest inventory and Rehabilitation .................. 22 (e) Creation and Maintenance of Reserves .... ............. 23 IV. PROJECT COSTS. FINANCING. PROCUREMENT. DISBURSEMENT. ACCOUNTS AND 21DITS. AND REPORTING .......................................... 24 A. Project Costs ............................................. 24 B. Project Financing .................. .. ..................... 25 C. Procurement . .............................................. 26 D. Disbursement .................................... 28 E. Financial Ma. ment, Accounts and Audits, and Reporting .. 28 This report is based on the findings of a Bank Appraisal Mission which visited Gabon from November 18 to December 7, 1991. The mission was led by Mr. Madani M. Tall (AFlAG), and consisted o:' Messrs./Mme. M. Grut (AFlAG), F. Wencelius (AFTAG), C. Morin (LEGAF), G. Gloriod, R. Berger, B. Martin (Consultants), and S. Kerpen (UNDP). Ms. Cynthia Cook (AFTEN) was the Peer reviewer. Ms. Tuyet Anh HoanX provided secretarial support. The Project Advisor is Ravmond D. H. Rowe (AGRPS). Messrs Michael. J. Gillette and Theodore Nkodo are Country Director and Sector Division Chief respectively. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.| - ii - Paae V. PROJECT MANAGEMENT AND IMPLEMENTATION .......................... 29 A. Project Management and Implementation ..................... 29 B. Annual Work Programs ........ . ........................ .. 30 C. Monitoring and Evaluation ......... ........................... 30 VI. PRODUCTION. MARKETS AND PRICES, AND FINANCIAL ASPECTS .... ...... 30 Ae Production ................................................ 30 B. Markets and Prices ...... .. . 31 C. Budgetary Implications ........... .. . ...................... 32 VII. BENEFITS, ECONOMIC JUSTIFICATION AND RISKS .. ................... 32 A. Benefits . . ... ... .. ....... 32 B. Economic Justification .................................... 32 C. Risks . .......... . 33 VIII. ASSURANCES, CONDITIONS AND RECOMMENDATION .... ............. 34 ANNEXE§ 1. MEF Organization Chart 2. METPN Organization Chart 3. Terms of reference for a fiscal study 4. Letter of Sector Development Policy 5. Environmental Impact Assessment Summary 6. Terms of Reference of the Resident Technical Assistance 7. Environmental Training Modules S. Cost Estimates Table 1. Summary Accounts by Project Component Table 2. Project Components by year Table 3. Summary Accounts by year 9. Disbursement Profile 10. Implementation Schedule 11. Supervision Schedule 12. Economic Analysis 13. Implementation Arrangements 14. Key Performance Indicators MAP IBRD No. 23575 - iii - THE GABONESE REPUBLIC FORESTRY AND ENVIRONMENT PROJECT DOCUMENTS CONTAINED IN THE PROJECT FILE A. DOCUMENTS AND REPORTS 1. Natural resource Sector Review, Solomon, September 1988. 2. Assessment of Wood Products Manufactuiring and Marketing in Gabon, General Woods, December 1988. 3. Projit For&t/Environnement, Rapport de Pr6paration, FAO/CP, July 1989 4. Rapport de Mission de Pr6parationt Volet Environnement, J. R. Mercier, Octobre, 1989. 5. Conservation before the Crisis: A Strategy for Conservation in Gabon, T.O. McShane and McShane-Caluzi, (WWF US), January 1990. 6. Rapport de Seconde Mission de Pr6paration: Volet Environnement, J.R. Mercier, AoCt 1990. 7. Rapport de Mission: Etude sur le Potentiel Touristique du Gabon, G. Hilz-Ward, AoGt 1990. 8. Rapport National sur l'Environnement, PNUD/Minist4re du Plan/ Breche, Mai 1991. 9. Rapport sur la Formation Forestiere, Banque Mondiale/AFOCEL/ GABON, Decembre 1991 10. GABON - Agricultural Sector Review, Report No. 10629-GA. B. WORKING PAPERS 1. Fiscal System 2. Environmental impact Assessment Report 3. Project Costs 4. Forestry and Environment Training S. Forestry and Environment Research 6. Forest Rehabilitation and Management 7. Institutional Strengthening - lv - THE GABONESE REPUBLIC FORRSTRY AND ENVIRONMENT PROJECT LOAN AND PROJECT SUMMARY Borrowert The Gabonese Republic Beneficiaries: Minletry of Waters and Forestry (MEF) Ministry of Environment, Tourism and National Parks (METPN) Amount: US$22.5 million equivalent Terms: 15 years, including a five-year grace period, at the Bank's standard variable interest rate Proiect Description: The project would: (a) contribute to a better use of forestry resources by implementing, on a pilot basis, a management plan in the depleted coastal zone; (b) reinforce the strategic planning and operational capacity of government institutions in the sector through the restructuring and strengthening of the Ministry of Waters and Foxestry (MEF) and the Ministry of Environment (METPN); (c) resume forestry and environment research activities; (d) make lorestry and environment training more practical and tailo:ed to the needs of the private sector and to conservatior 'needs; (e) help prevent environmental degradatiorn -; rough the implementation of recommendations from key enYx_: amental studies; and (f) support the Government in -he creation and maintenance of wildlife reserves. The project would represent the first phase of a long term effort to bring about the rational utilization of the country's natural resource base. To meet the above okjectives, the project would include the following components: (a) Instit"tional Strenothenina. Assistance would be provided in restructuring MEF to streamline and better define the functions of its directorates; and in supplying other resources (field housing, offices, vehicles, etc.) to increase MEF and METPN operational, planning, and monitoring capabilities, and more importantly increase their presence in the field so as to enable them to better supervise logging operations. In addition, the Directorate of Game and Wildlife at MEF would be provided with the resources needed to: (i) improve its operational capacity; (ii) enforce legal issues related to the environment; (iii) increase its presence in the field; and (iv) prevent poaching and other actions which could have a negative impact on the environment. (b) Forestry and Environment Trainina. Activities under this component would consist of (i) promoting a forestry and environment training program tailored to the needs of the private sector; (ii) providing professional training and retraining for forestry graduates; and (iii) implementing a management and conservation plan for the Mondah Forest. (c) Forestry and Environment Research. Activities envisaged under this component would center on: (i) genetic improvement of Okoum6 trees; (ii) sylvicultural operations on natural forest and plantations with a view to bringing about durable and L rational management of forest resources; and (iii) stabilization of agricultural production systems in forest areas through agroforestry techniques--this need was highlighted during the Environmental Impact Assessment (EA) process. Some equipment and refrigeration facilities would be provided to the National Arboretum to ensure the conservation of its unique collection of plant species. (d) Forest Inventory and Rehabilitation. Project support would include the preparatinn -:d imp% tntation of a management plan subsequent to -,e reha L'ttation and protection of 40,000 ha of natur-X Okc' .' sands identified from an inventory of 275,OC;. a" n th coastal zone; and rehabilitation of 5,000 to 6,000 ha of artificial Okoum6 stands. (e) Creation and Maintenance of Reserves. This component concerns the protection of the Moukalaba and Sett6- Cama reserves and provision of infrastructure for the creation of additional reserves. In concert with the World Wildlife Fund (WWF), the reserves would be strengthened and, in time, be opened for eco-tourism purposes. - vi - Estimated Proiect Costs of- Local Foreign Total Base Costs …- --(US$ million)------- A. Institutional Strengthenina 1. Management Support 0.7 1.5 2.2 7.4 2. Dir. Waters & Forestry 3.9 5.8 9.7 32.5 3. Dir. Wildlife 1.7 2.0 3.7 12.5 4. Dir. Environment 0.6 0.9 1.5 5.0 Sub-Total 6.9 10.2 17.2 57.3 B. Forestry and Env. Training 0.7 1.6 2.3 7.6 C. Forestry Research 0.9 1.2 2.1 7.1 D. Forest Rehabilitation 1. Natural Okoum4 Stands 2.4 1.2 3.6 12.0 2. Plantations 2.0 0.2 2,2 7.5 Sub-Total 4.4 1.4 5.8 19.5 E. Reserves 1. Moukalaba 0.3 1.2 1.5 4.9 2. Sette Cama 0.6 0.5 1.1 3.6 Sub-Total 0.9 1.7 2.6 8.5 Total Base Costs 13.8 16.2 30.0 100.0 Physical Contingencies 0.7 1.1 1.8 6.2 Price Contingencies .1.5 4.9 6.4 21.3 Total Project Costs 16.0 22.2 38.2 127.4 Estimated Disbursements from the IBRDL Loan IBRD Fiscal Year 1993 1994 2995 1996 1997 1998 1999 --------------------US$ million------------------- Annual 1.8 3.8 5.2 5.4 4.2 1.8 0.3 Cumulative 1.8 5.6 10.8 16.2 20.4 22.2 22.5 Benefits and Risks The proposed project would improve the management and protection of Gabon's forest resources and its environment. Measures envisaged under the project would help: (a) stop overexploitation in the coastal zone; and (b) initiate a sound forest management plan for the remaining areas of the country. The project would serve as an important instrument for implementing government policies dealing with forestry and the environment, and would further strengthen the scope of these policies. The project would strengthen NEF and METPN's planning and operational capacity through the implementation of training programs, studies, and the provision of vehicles, equipment, and infrastructure. As a result of the National Environmental Action Plan initiated during project preparation, more appropriate conservation policies would be developed and implemented. The project would also encourage private sector involvement in the - vii - implementation of activities which would have a significant impact on the conservation of the forestry sector, and provide significant employment potential for the rural sector. Through the implementation of a revamped iraining program at ENEF, the project would make forestry and environment training more relevant to the needs of the private sector and to conservation needs. The main risk of the project lies in the fragility of institutions in the sectors. The restructuring of MEF and the reassigning of some of its staff to field offices, represent sensitive issues, but need to be undertaken if the competitiveness of the wood sector and the envisaged conservation objectives are to be attained. To reduce the risk, MEF would be formally restructured prior to negotiations and an acceptable field staff transfer plan would be made a condition of effectiveness. Also, the shortage of adequately trained staff will be minimized through improved training programs and technical assistance. With regard to the environment, the Government's capacity to follow-up on environmental issues and the willingness of private foresters to participate in forest conservation programs pose potential risks. The NEAP would clearly &jtablish each party's role and help formulate policies to better protect the environment. A final risk concerns the timely availability of counterpart funding which, in the past, has been delayed and inadequate for the forestry and environment sectors. This risk is minimized, however, by the fact that the Government has come to realize the importance of forestry and the environment and, therefore, is committed to supporting the sector. Also, counterpart funds are made available in a timely fashion in ongoing Bank-financed projects (Technical Assistance, Road Maintenance). In addition, considerable efforts have been deployed to involve the Planning and Finance ministries since the early stages of project preparation, to ensure that the Government's contribution is properly provided for in the investment program. Economic Rate of Return (ERR I The ERR on the project's natural forest rehabilitation component is estimated at 18% before taking into account non-wood forest products of nutritional and medicinal value for rural communities, and the ecological benefits from reduced deforestation. The ERR on the plantations component is estimated at 13%. - vriii - THR GABONESE REPUBLIC FORESTRY AND rNVIRON"MNT PROJECT KEY FEATURES OF THE AGRICULTURAL AND FORESTRY SECTORS 11990) 1. Poo latLon Total (Thousand) 1,100 Growtn Rate (%, 1980-87) 2.8 Rural as % of Total Population 50 2. Economic Overview Total GDP (USS million) 4,495 GDP Real Growth Rate (%, 1980-90) 2.1 GDP per Capita 2 850 Agricultural/Forestry GDP as % of Total GNP 10.3 3. Forestry Areas Total Land Area (km2) 267,000 Forests - Forestry 2one ('000 ha) 22,000 - Savannah ('000 ha) 4,000 Plantations ('000 ha) 30 4. Proeuction Logs (m3) 1,600,000 Fuel Wood (m3) 1,222,000 Charcoal - tons - m3 equivalent - Processed Timber Plywood (m3) 52,000 Other (m3) 53,200 5. Exports Logs (m3) 995,127 Plywood (m3) 47,170 Other (m3) 392,616 Value of Timber and Wood products (CFAF billion) 48 Total Exports (CFAF billion) 510 Total Timber exports as percent of Total Exports 9.0 6. Goverr me§ Revenues Tax revenues from timber (CFAF billion) 5.0 Total tax revenues (CFAF billion) 278.5 Percent of total tax revenues 2.0 THE GABONESE BPUBLIC FORESTRY AND ENVIRONMENT PROJECT STAFF APPRAISAL REPORT I. INTRODUCTION 1.01 The Gabonese Gov.,rnment has requested assistance from the Bank for a Forestry and Environment Project. The proposed project was identified as a priority investment in the strategy outlined in the Agricultural/Forestry sector review carried out in 1988 by the Bank and the Gabonese Government, and prepared by FAO/CP in 1989. The project reflects the Government's concern with p-otecting and rationally utilizing a valuable resource base, and coping with localized forest depletion and environmental degradatir-. 1.02 Consequently, susti tial emphasis is given in the project to improving the sector's contr4Jution to the economy through a sound forest management program, and the strengthening of institutAons in the sector to enable them to undertake the necessarv policy reforms, increase revenue generation, arad better protect and m.age forest and wildlife reaources. Furthermore, the Government was encouraged during preparation to undertake a National Ervironmental Action Plan (NEAP) which is expected to serve as a catalyst to preserving the country's ecological balance and channeling donors' actions in the sector. II. SECTOR BACKGROUND A. Economic Settino 2.01 The Gabcnese Republic is located astride the Equator, extending from 2N to 4S in latitude and from BE to 15E in longitude. Covering an area of 267,000 km2, it is bounded by Equatorial Guinea and Cameroon to the north, and the Congo on the east and the south. A 750 km Atlantic coastline forms Gabon's western boundary. Approximately 85 percent of the country is covered with tropical forest and the remainder is covered by savannahs. Gabon is an oil pr. iucing country with a sparse population estimated to be 1.1 million inhabitants (1989), more than 50 percent of which is living in urban areas. Demographic growth is estimated to be 2.8 percent per annum. Gabon has historically been an exporter of primary commodities, relying almost entirely on extractive, enclave-type industries. 2.02 Until recently, the combination of political stability, rich natural resource (oil, manganese, uranium, timber), substantial foreign investments, and inflows of cheap labor from neighboring countries has allowed Gabon to achieve a GNP per capita of $2,850 in 1990, down from $4,000 in 1980, but still the highest in Sub-Saharan Africa. Gabon's position as an upper-middle-income country disguises, however, severe structural imbalances associated with its dependence on oil exports and the absence of a sustainable productive base outside the oil and mining sectors. 2.03 The oil price shock of 1. 3 started a new era in Gabon's development, marked by a growing linkage of the domestic economy to swings in the international oil market, an unparalleled growth of the public sector, and emergence of structural rigidities in response to fluctuations in demand. The oil sector became the dominant force in the economy, contributing 45 percent of GDP and accounting for 63 percent of budgetary revenue and 83 percent of export receipts in 1985. The two major oil price increases in 1973 and 1980 led to an acceleration of GDP in succeeding -2- year3, followed Ij periods of major contraction when oil prices dropped between 1977-79 and after 1985. In ;980-85, real GDP growth averaged 2.3 percent p.a. (non-oiE GDP: 4.2 percent); inflation, however, averaged 15 percent. In 1985-89, real GDP declined by 3 percent p.a. (non-oil GDPs -4.1 percent). The recurring economic instability has confirmed the economy's vulnerability to changes in the international oil market, and thus underlined the need for comprehensive policy reform to diversify the economy and remove price and other distortions that have accompanied Gabon's oil prosperity. 2.04 The domestlc recycling of oil windfalls did not lead to a sustained transformation of the economy, primarily because massive government spending ignored the constraints posed by Gabon's limited absorptive capacity. Theae include a narrow, high-cost domestic market, a small labor force, and weal .esponse by the private sector. With fiscal revenues doubling between 1980 and 1985, the Government continued its strategy of financing large-scale, but poorly conceived investment projects and creating a large parastatal sector. Although capital expenditure rose twice as fast as revenue during that period, less than 10 percent of the investment budget was devotad to directly vroductive activities or smallholder services. With a portfolio of 65 public enterprises, the Government acted increasingly as a direct producer of goods. However, most of the expansion of non-oil productive activities through inefficiently operating PEs relied on heavy subsidies and highly protected markets for internationally uncompetitive products. Subsequently, when oil revenues declined, the growth momentum quickly faltered and Gabon's expenditure pattern became unsustainable. 2.05 The 1986 collapse in dollar oil prices (-55 percent), in conjunction with the 23 percent appreciation of the CFAF against the U.S. dollar compared to 1985, triggered severe external and internal imbalances. The current account deficit jumped from 4.4 percent of GDP in 1985 to nearly 31 percent in 1986, as oil export earnings dropped by 66 percent to CFAP 245 billion. Government oil revenue declined by almost a third, causing the fiscal deficit to widen from 5 percent of GDP (1985) to 15 percent in 1986. Hoping that the deterioration in oil prices would prove to be temporary, the Government relied on external financing to cover the fiscal gap. As a result, the stock of external debt, which had dropped to US$ 0.7 billion by 1984, almost doubled between 1985 and 1987 to reach US$1.7 billion (53 percent of GNP) in 1987. Fiscal Stabilization and Structural Adjustment 2.06 Faced with a worsening financial situation, the Government adorted a first stabilization program at the end of 1986 with support from the IMF. It aimed at regaining budgetary control and containing the current account deficit. Prompted by the 75 percent decline in oil revenue in 1987 ove.r their 1986 level (total revenues -50 percent), the Government slashed capital expenditure from CFAF 400 billion (1986) to CFAF 70 billion (1988) and reduced PE subsidies. The 10 percent decline in non-oil revenue in both 1987 and 1988 reflected the deepening recession in the rest of the economy. Although the budget deficit was reduced from 12 percent of GDP in 1987 to 7.5 percent of GDP in 1989, the Government's stabilization efforts stayed below expectations. In particular, the Government failed to tighten control over current non-interest expenditures, notably with regard to public sector wages, and fully implement revenue enhancing measures. A second stand-by program, concluded in October 1989, became inoperative towards the end of the year, owing to increased budgetary expenditure that followed rising social tensions (para. 2.15) and lower-than-programmed oil revenue collection. The uncertainty surrounding the Government's stabilization efforts in turn led to delays in the disbursement of external assistance. As a result, the Treasury had accumulated payment arrears of -3- CFAF 40 billion (3.5 percent of GDP) at the end of 1989, most of which vis- a-vis Paris Club creditors. 2.07 Following a 16 percent contraction of real GDP in 1987, Gabon's economy expanded by 2 percent and 3.8 percent in the following two years, reflecting the gradual resurgence in oil exploration and production activities. In contrast, value added in all other sectors declined further, translating into rising urban unemployment. Most severely affected by this protracted recession, which was passed on via substantially reduced public expenditures, were construction, transport, and service related activities. Figures for 1990 confirmed the growing disparity between a growing oil sector (30.0 percent increase in production) and the continuing recession in the non-oil economy (- 4.6 percent), wAth overall GDP increasing by a real 5.3 percent in 1990. It is important to note that events during the Gulf crisis contributed significantly to the booming of the oil sector. 2.08 The situation in Gabon's balance of payments remained critical between 1987 and 1990, with little change in the size of the overall deficit (-10 percent of GDP), but a markedly different composition. On the one hand, higher export receipts for oil and other minerals helped improve the current account deficit from 31 percent in 1986 to just 5.5 percent in 1989, with a surplus of around 3 percent for 1990. On the other hand, the capital account deteriorated sharply in 1989-90. This reflects not only reduced drawings on publicly guaranteed loans, but also a decrease in direct foreign investment and considerable private capital transfers abroad. The size of fiscal and current account deficits required continued external support, primarily in form of debt relief obtained through Paris and London Club rescheduling in addition to foreign financing from bilateral and multilateral scurces. Although Gabon's debt service ratio (before rescheduling) rose from 13 percent in 1985 to around 25 percent between 1986 and 1989, actual debt service payments (after rescheduling) averaged less than 7.5 percent over the same period. 2.09 To complement its stabilization efforts, the Government adopted a broad economic reform program in April 1988, supported by adjustment loans from the World Bank, the African Development Bank, and the French Government. Its objective was to help restore the competitiveness of the no--oil sectors and return Gabon to a sustainable growth path by: (a) improving the performance of the parastatal sector through State divestiture and PE rehabilitation; (b) reinforcing public sector resource management; (c) liberalizing the regulatory environment for private sector activity; and (d) reformulating sectoral policies in the non-oil economy. In this regard, the Government has emphasized the importance of the forestry sector as a source of long-term growth. The proposed project has capitalized on the above measures by initiating a policy dialogue with the Government and the donor community to develop a rational approach to forest management and environmental protection, and provide investment funding to strengthen the sector. 2.10 In general, the first phase of the structural adjustment program helped to initiate a broad dialogue between the Government and donors on the fundamental lack of sustainability of past economic policies. The Governm&nt took difficult initial steps in reorienting its economic policies and gradually reducing the scope of state interventions in favor of private sector activities, most notably by agreeing to a comprehensive restructuring of the parastatal sector. However, the severity of the recession and Gabon's deep-seated structural constraints have limited rapid progress towards a more diversified economy. 2.11 The reform of the public enterprise sector represents a significant accomplishment of the structural adjustment program. From near total disarray at the time of the oil price collapse in 1986, the -4- Government has undertaken decisive steps towards the restructuring of public enterprises. On the basis of financial audits for 35 PEs, the Government liquidated five enterprises, opened seven enterprises for private majority ownership, and announced a restructuring program for another ten enterprises. A management contract with Air Gabon was signed in 1989. Similar negotiations with OCTRA (railways) and SEEG (power) are ongoing. The Government successfully committed most PEs to reduce their wage bill by an average of 15 percent in 1988/89, involving in some cases reductions of 30 percent or more for higher level managers. The Government also began to restructure the finances of the sector by settling 20 percent of accrued crosa-debts between parastatals and the Government. 2.12 In support of the policy reform efforts envisaged under the structural adjustment program, the Government strengthened the investment planning process. It adopted a more comprehensive perspective on public resource management by establishing a three-year rolling investment plan in 1988. This plan aligns public investments more closely with broad economic objectives and details their recurrent expenditure in following years. Recourse to suppliers' credit and extrabudgetary expenditure as methods of investment financing were eliminated. The Government increased the share of investment expenditures for road maintenance and smallholder agriculture, while planning to reduce the emphasis on loss-making agroindustrial enterprises. In 1987/88, several measures were introduced aimed at enhancing non-oil revenues, including the transformation of the compulsory loan on salaries and sales into a solidarity tax and a surcharge on the income tax. Finally, the Government has started to reduce the excessive state consumption of public services. 2.13 In the area of incentive reform, the Government has taken measures to liberalize trade and stimulate private sector activities. Quantitative import restrictions on all but five commodities have been replaced by transitional import tariffs. Price controls on locally produced goods and the trade margins on imported commodities ha-a also been removed. In order to encourage non-oil exports, the turnover tts on exports has been lifted except on exports of natural resources. 2.14 The Government has accorded high priority to the restructuring of the forestry sector on an environmentally sound basis and begun to implement measures aimed at improving the competitiveness of Gabon's timber exports. The poor financial and managerial performance of SNBG, the timber marketing monopoly, severely constrained the viabilLty of private forestry companies. The Government has decided to finalize the restructuring of SNGB's marketing activities in 1992 and to reform the sector's fiscal statutes. In addition, it has entered into negotiations with private parties interested in taking over Compagnie Forestiere du Gabon (CFG), a large state-owned wood processing company. Recent Economic and Political DeveloDments 2.15 Triggered by a growing disenchantment with the traditional one- party system and dissatisfaction over worsening employment prospects, Gabon's social and political climate grew increasingly tense at the end of 1989. Led by student protests, strikes spread through the parapublic and civil service sectors. The strikers demanded higher wages for lower salaried employees, reimbursement of the solidarity tax, reductions in the cost of living, and departures of unqualified managers. The Government gave in to most demands in February 1990. 2.16 In an attempt to calm tne political situation, President Bongo convened a National Conference in March 1990, which was attended by more than 150 political groups and professional associations. The Conference participants demanded and obtained: (a) the immediate adoption of a multi- party system; (b) new elections for the National Assembly in October 1990; - 5 - (c) the formation of a transition Government; (d) wide ranging policy reforms in the areas of health and education; and (e) measures to ensure better accountability of public officials. Gabon's first mliltiparty elections, which were held between September and November 1990, resulted in a narrow majority for the former Government party in the National Assembly, with opposition parties gaining 57 of the 120 seats. 2.17 The cost of Government's concessions and, to a lesser extent, the increase in petroleum prices in the wake of the recent Gulf crisis, had considerable impact on Gabon's budgetary situation for 1990. The Government's social concessions, which are estimated at CFAF 38 billion, seriously undermined its fiscal stabilization efforts. In particular, the public sector wage bill rose 18 )ercent above targets agreed to under the IMF program and the Government failed to adopt compensatory measures to enhance non-oil revenue. Similarly, the reduction of wage costs in the PE sector and other rehabilitation measures were partly reversed. These additional expenditures were partially offset by unexpected oil windfalls in the order of CFAF 20 billion and the sale of the Government's 10 percent share of oil produced from the Rabi-Kounga field. Thus, the estimated size of the budget deficit (CFAF 60 billion or 5 percent of GDP) probably understates the erosion of fiscal discipline that occurred in 1990. One indicator is the accumulation of payment arrears to external creditors and domestic suppliers in the order of 6.5 percent of GDP. Medium-term Outlook and Develonment Strateoy 2.18 The 1991-93 Investment Plan identifies three principal objectives for the Government's medium-term development strategy: (a) restoring sustainable growth and reducing the economy's vulnerability to international oil shocks through the promotion of private non-oil activities; (b) strengthening the Government's capacity to i )lement sustainable expenditure policies in priority sectors in the context of increasing, yet highly volatile, revenues; and (c) improving the social welfare conditions through appropriate labor, education and health policies. 2.19 In its attempt to direct the economy out of a protracted five- year recession and stimulate growth in the non-oil sector, the Government has to effectively overcome four major constraints: First, further reduce the size of the public enterprise sector. The Government has to adopt a comprehensive strategy that entails divestiture and privatization of parastatals in forestry, construction, and agriculture; introduction of a new legal framework that allows the creation of financially independent companies under majority private management in the case of OCTRA (railroad) and AIR GABON; and financial reform of public utilities. Second, reduction of Gabon's high wage and cost structure. This requires the implementation of a more rational compensation system for government employees; further otaff reductions in the parastatal sector and civil service reform; and tariff reforms for domestically provided services (electricity, telecommunications). Third, a strategy to address the serious bottlenecks and policy-based distortions that inhibit the private sector's supply response to a shift in relative prices. Chief among them are an inadequate and poorly maintained road network, the lack of agricultural services and marketing channels for agricultural goods, and the lack of incentives for small and medium enterprises. And fourth, implementation of a long-term strategy for the transparent collection and efficient utilization of oil revenue in order to contain the destabilizing effects of future oil price swings. The anticipated rise in oil exports will result in an increase of oil revenues in 1992, compared with 1989, testing the Government's ability to withstand pressures to again increase public spending on civil service wages and unproductive investments. -6- 2.20 Thus, fiscal stabilization will continue to be at the core of the authorities's medium term program. The Government has to tighten budgetary control over current expenditures, restore wage restraint, and adopt an ecc mically sound investment program. Of particular importance are the con-._nued rehabilitation of the road network, a comprehensive review of social sector policies, and increased spending for smallholder agriculture. On the revenue side, the authorities have to strengthen customs administration, eliminate ad hoc exemptions and broaden the non-oil tax base. The restructuring of the public enterprise sector, begun under the first structural adjustment program, has to remain a Government priority in order to reduce the sector's continuing drain on public resources and provide economic opportunities for private entrepreneurs. 2.21 As these fiscai and structural reforms are implemented, the growth prospects for the non-oil economy should gradually improve, reversing the substantial decline in per capita income over the last decade. Untapped growth opportunities exist in the forestry sector, smallholder agriculture, rubber production, and service related activities such as eco-tourism. The prospects for non-oil mining activities (manganese, uranium, other minerals) also remain favorable. However, unless these structural rigidities are effectively overcome and private investments take up the slack of reduced government spending, growth in real non-oil GDP is unlikely to exceed population growth (estimated at 2.8 percent p.a.). 2.22 Notwithstanding the positive impact of a diversification strategy in the non-oil economy, the oil sector will provide for some time the main impetus for overall growth in real GDP, estimated at around 5 percent p.a. over the medium term. Oil production from a major new field (Rabi) started coming on stream in 1989, lifting Gabon's oil production from 8 million MT in 1988 to 14.1 million MT in 1991. Short-term forecasts indicate a stabilization of oil production at about 13.5 million MT through 1995. Provided a stabilization of the political situation in the coming months, Gabon's on- and off-shore territories will continue to attract substantial foreign investment from oil companies, with new wells possibly coming on stream by the mid-1990s. The dominant position of the oil sector and the associated dependence of Gabon's economy to swings in the international oil market is likely to continue throughout the 1990s. 2.23. Although the medium term prospects for fiscal recovery are favorable, they are critically dependent on the return to a rational and more transparent fiscal management. Accordingly, the combination of additional oil and non-oil revenue and tighter expenditure control is expected to result in a moderate fiscal surplus from 1993 onwards. At the same time, the current account is expected to register a rising surplus. However, in order to support this economy-wide recovery and alleviate the Government's serious debt servicing problems in 1992, Gabon will require additional external assistance over the medium-term. This includes the rescheduling of commercial and official debt service obligations as well as limited new financing. Following this period, Gabon should be well positioned to meet its debt service payments without further rescheduling, thereby restoring its international creditworthiness. In addition, the Government should consider using part of the expected oil bonus to retire part of its external debt obligations ahead of schedule and accumulate net foreign assets in a financial reserve fund. B. The Aaricultural Sector 2.24 The combined value-added of agriculture and forestry has been stagnant or declining over a considerable period, and contributed only 6 percent to overall GDP from 1975 to 198E. In 1986, the sector's contribution to GDP rose to nearly 9 percent, although this was mainly -7- attributable to the fall in GDP rather than to an increase in agricultural output. The sector is characterized by low population density, inefficient institutions and deficient infrastructure. As such, agriculture in Gabon has not developed into a viable, commercially oriented sector. Food imports, mainly driven by urban demand, increased by 15.5 percent annually between 1979 and 1986, outpacing the 12.7 percent annual increase in total imports. 2.25 Production activities in rural areas are dominated by the smallholder sector comprising 70,000 households. Smallholders produce most of the food crops (plantains, maize, taro, yams, and cassava) on 61X,000 ha and all of the coffee, and cocoa on 15,000 ha. The agro-industrial sector, which has been the primary focus of government intervention occupies 100,000 ha, of which 7,500 ha is for oil palm, 3,300 ha for rubber, 285 ha for coffee and cocoa, 6,000 ha for soybeans and maize, 80,000 ha for livestock ranches, and 3,390 ha for sugar cane plantations. 2.26 The potential for future agricultural growth is limited. However, some growth may be realized with strong government support for the smallholder sector through better agricultural services, improved infrastructure, and proper incentives. Growth in this sector could generate income levels and sustain an environment which would be sufficiently attractive to retain a significant portion of the population in rural areas, and generate. a slightly larger, and growing, share of the national output. C. The Forestry and Environment Sector 1. Forest Resources 2.27 The country is characterized by coastal evergreen forest in the North, and a close semi-deciduous forest in most of the rest, with high density Okoum6 stands. Dense tropical forest dominated by Okoum6 covers 85 percent of the territory, and contains more than 100 species of potential commercial value. Total dense forest cover is estimated at 22 million ha, of which 12.5 million ha are considered to be valuable commercial stands. 2.28 Forest resources in Gabon can be broadly divided into two categories: the Okoum6-Ozigo complex, and other species (Bois Divers). Okoum6--the-most abundant wood resource--is ideal for peeling and making high quality plywood. 2.29 Although overall extraction rates of all species are well below production potential, deforestation is prevalent in the overexploited coastal zone (map IBRD No. 23575). The low population density (less than 4 inhabitants/ki2) and the resulting lack of agricultural encroachment have prevented significant ecological and environmental degradation in most other areas. Deforestation rates are very low (less than 1% per annumb and of all the African countries, Gabon is expected to lose the smallest cortion of its forest area durino the next 50 years. 2. Other Natural Resources 2.30 The country's flora and fauna benefit from a diversity that is unparalleled in tropical Africa. It is estimated that out of the 120 species of Begonia known in Africa, 50 are present in Gabon and 16 are endemic. It is also estimated that there are 6,000 species of plants. The rich forest of Gabon is also an important sanctuary for 19 different primate species. The gorilla and chimpanzee population is estimated at 35,000 and 64,000 respectively. There are also about 20 indigenous carnivorous species and more than 600 bird species. A number of waterways and a long (750 km) coastline contain a somewhat limited but diverse fish population and other marine life systems. In addition, Gabon possesses significant petroleum, natural gas, and hydro-electric resources. 2.31 Environmental damage is localized mainly because of Gabon's low rural population density (fewer than one inhabitant per km2) and therefore the minimal impact of agricultural practices (shifting cultivation/slash and burn). Logging activities, still below maximum sustainable exploitation levels in most of the country, have however caused environmental concerns in the depleted coastal zone. Extensive logging in this zone, coupled with an increase in commercial game hunting, has led the Government to initiate measures to protect the country's rich and diverse natural resource base. 3. National Parks and Reserves 2.32 There are currently no officially designated National Parks in Gabon. However, an area covering 19, 747 kmi, or 10 percent of the country's total forest cover, has been designated by the Government as reserves and arboretum because of a strong and diverse wildlife presence. This area includes: (a) the fauna and hunting reserve of Lop6 (5,000 ki2); (b) the fauna reserve of Moukalaba (1,000 km2°; (c) the fauna and hunting reserve of Sette Cama (7,000 km2); (d) the biosphere reserve of Ipassa (100 km2); (e) the Presidential reserve of Wonga-Wonga (4,000 kW2); and (f) the Sibang arboretum. 4. Environmental Legislation 2.33 In theory, the Government has established a sound legal framework for forest management and wildlife conservation. It was first established in 1946 by the French Equatorial African administration and modified by subsequent laws of the Gabonese Government (June 1960, November 1962, April 1971, July 1982, March 1987). Under the law enacted in 1982, all classified state forest land is subject to a forest use plan. The law specifies that only zones that have been fully inventoried may be exploited. Several decrees for the implementation of this Law have been signed. Among the few texts which still need to be signed, two decrees defining the areas which may be exploited as well as the specific conditions for exploitation would be signed as a condition of effectiveness of the proposed project (para 8.02 (b)). There is also a legal framework for the conservation of wildlife and other natural resources (Loi Relative A la Protection et A l'Am6lioration de l'Environnement). The adoption and promulgation of this legal framework would be a condition of effectiveness (para 8.02 (a)). Provisions have been made to allocate 6.7 percent of total land area for sanctuaries and hunting reserves. The hunting and the collecting of animal and vegetal materials are also restricted by the Government. However, while both the Ministry of Waters and Forestry (MEF) and the Ministry of Environment, Tourism, and National Parks (METPN) have extensive policing powers to combat poaching and supervise logging practices, they have limited resources with which to pursue their mandate. Therefore, many of the regulations have not been consistently enforced. 2.34 Gabon ratified in February 1989 the African Convention for the Conservation of Nature and Natural Resources signed in Algiers, the -9- Convention of Washington, and the Convention on the International Commerce of Species of Wild Fauna and Flora threatened with extinction. 5. Institutions in the Sector 2.35 The proliferation of institutions, coupled with the lack of a clearly defined strategy on environmental issues, has resulted in an overlapping of institutional functions and competence, in a duplication of efforts, and a waste of resources. While the main institutions responsible for forestry and environment issues are MEF and METPN, several other institutions are involved in the formulation and implementation of policies dealing with the environment: the Ministry of Energy, the Ministry of Mining, the Ministry of Agriculture and Livestock, and the Ministry of Health. 2.36 The Ministry of Waters and Forestry (MEFI is the main institution responsible for implementing the Government's strategy for the Forestry sector. After a 1988 cabinet restructuring, MEF was placed under the authority of the First Vice Prime Ministry so as to emphasize the renewed interest the Government was placing on the forestry sector. In 1990, MEF was merged with the Ministry of the Environment under a provisional Government. However, the consolidation of Environment and Forestry in one Ministry was reversed after the October 1990 multi-party elections. MEF has 319 staff of all grades: 104 professionals, 117 technicians, 59 brigadiers, and 39 support staff. About 90 percent of the professionals are posted in Libreville. MEF organization chart is presented in Annex 1. 2.37 At MEF, the Directorate General of Waters and Forestry (DGEF) operates as a coordinating structure, and is currently responsible for 10 other directorates at the central level. Within MEF, the main implementing institution responsible for environmental issues is the Directorate of Game and Wildlife (DFC) which supervises two services and two field brigades (Moukalaba, Lope), with a total staff of 71, of which 9 are professionals. DFC is responsible for: (a) the formulation of a master plan on wildlife conservation; (b) the implementation of sound management and conservation techniques for wildlife resources; (c) the coordination and supervision of activities pertaining to wildlife, in its affiliated field services; (d) the collection and establishment of wildlife statistics; and (e) the interface with national and international organizations involved in wildlife issues. 2.38 MEF is also present in each of the nine regions of the country. However, only a minimal number of technical staff is actually posted in the field. Most forestry departments at this level are poorly equipped and are not operational. In order to execute viable forest management programs, and decentralize operations, it will be necessary to improve the management and technical capacity of regional forestry departments. The proposed project would address this isbue. 2.39 The Ministry's budgetary allocations have consistently decreased since 1985 when CFAF 5.9 billion (6 percent of the public investment budget) were allocated to the Ministry. This amount was reduced to CFAF 2.4 billion (2.5 percent of the public investment budget) in 1989 and to CFAF 0.8 billion in 1991 (less than one percent of the public investment - 10 - budget). Noteworthy is the fact that two-thirds of budgetary allocations for recurrent expenditures and 95 percent of fuel allocations are used at headquarters, therefore reducing the operating capacity of regional forestry services. These services lack the funds and the mobility to either conduct inventories or monitor commercial logging operations. This has been a primary cause for the depletion of the coastal zone and the poor valorization of forest resources. 2.40 As part of the new strategy for the sector, the Government has agreed to establish a restructuring plan for MEF and assign part of its plethoric headquarters staff to regional forestry services. The restructuring plan's objectives would be to (a) reduce the overlapping of institutional functions so as to avoid conflicts, duplication of efforts, and an inefficient utilization of resources; and (b) increase the Ninistry's operational capacity in the field. It would consist of regrouping all central directorates (9) into three directorates, namely the Directorate of Forestry, the Directorate of Fisheries, and the Directorate of Wildlife. Coupled with the merging would be the progressive transfer of staff from headquarters to regional inspection units which, under the new plan, would be given the status of central directorates. In addition, the Government is working on a series of incentive measures which, if implemented properly, would induce a natural attraction for field assignments. The Ministry of Waters and Forestry (MEF) is discussing with both the Ministry of Finance (MFB) and the Ministry of Labor (MT) the type of incentive framework (promotions, better working environment, logistical support) that would be suited for this purpose. 2.41 Since its establishment in 1985, the Ministry of Environment. Tourism, and National Parks (METPNI has been responsible for: (a) elaborating and implementing government policies pertaining to the environment and the protection of nature; (b) protecting and preserving the natural milieu; (c) studying and monitoring the environment and ecosystems; and (d) promoting and facilitating the interface with the donor community on matters related to the environment. 2.42 METPN's central organization consists primarily of two General Directorates: the Directorate for the Protection of Nature and the Environment (DGEPN) that supervises two services with a total staff of 25, of which 14 are profeasionals, and the Directorate of Tourism (DGT) which holds the essential and immediate responsibility for the formulation and implementation of tourism policy. Presently, it comprises 62 employees of which 40 have civil service status and 22 are contract personnel. METPN has no representation outside of Libreville and is therefore unable to undertake any activity in the field. The National Center for Anti- Pollution, the National Committee on Man and Biosphere, and the National Council on the Environment also fall under the tutelage of METPN. The organization chart of METPN is presented in Annex 2. 2.43 Even though the establishment of a Ministry responsible for environmental issues suggests the Government's commitment to a better environment, METPN has not been able to operate as a full fledged environmental policy setting and implementing agency. The major problems impairing its performance are: (a) the shortage of staff with the proper profile; (b) inadequate funding for operational expenditures; (c) the lack of a strategy and action plan on environmental issues; and (d) the lack of coordination with MEF and other concerned institutions. - 11 - 2.44 The Socift6 Nationale des Bois du Gabon (SNBGI. SNBG, a parapublic enterprise, was established in 1975 to (a) exercise a marketing monopoly on logs of all species; (b) stimulate the development of the national timber industry; (c) assist through its own resources in the expansion of markets for Gabonese timber and timber products; and (d) help stabilize prices of timber and timber products. 2.45 Contrary to its mandate, SNBG not only has done very little to stimulate growth in the forestry sector, but, until recently, stood as a major stumbling block for development in the sector. Its inefficiencies and high operating costs have increased its marketing margins and contributed to Gabon's loss of competitiveness on the world market. Faced with this untenable situation, the Gcvernment initiated a restructuring plan for SNBG, which together with the envisaged transfer of ownership to the private sector is the consequence of a 1988 audit of SNBG, measures called for under the first Structural Adjustment Loan, and discussions with the Syndicate of Foresters. 2.46 In February 1991, the Government of Gabon started the implementation of a restructuring plan that should transform SNBG into a viable and efficient entity. In this regard, the following measures have been implemented during the transitory period (February 1, 1991 - February 29, 1992): (a) a representative of the Foresters Syndicate was named to head SNBG's Board of Directors; (b) a new Director General, chosen by all parties concerned, was named; (c) a private accounting firm was hired to oversee all financial operations; (d) a new salary structure was adopted on July 1, 1991; (e) across the board reduction of operating costs was initiated; (f) transfer of all civil service staff to their departirnt of origin was finalized on August 31, 1991; and (g) a management committee was established to oversee the restructuring plan. These actions are essential for the revival of the sector. 2.47 At the end of the transitory period (February 1992) an assessment of the restructuring program was undertaken by the Government and the Bank. This assessment revealed that considerable progress had been made in the areas of cost reduction, transparency in the budgetary process, staffing and wage reforms, and marketing performance. In particular, SNBG has (a) reduced its wage bill from CFAF 2.4 billion to CFAF 1.7 billion; (b) reduced staff from 357 to 286; (c) shortened delays in payment to foresters from 130 days to 60 days; (d) reduced general operating expenditures by more than 40 percent; and (e) fulfilled its fiscal obligations vis-&-vis the State Treasury. In fact, SNBG is forecasting for Fiscal Year 1992 close to CFAF 240 million of net profit. It would be the first profitable year for SNBG since 1975--when the parapublic enterprise was initially established. 2.48 As the restructuring program proved effective, the Government has decided against a complete privatization of SNBG. Although it welcomes majority ownership of SNBG by the private sector, the Government's position is that under the prevailing conditions where it has weak institutional capacity at the field level to control commercial logging practices, SNBG is the only vehicle through which it has an effective way of monitoring (droit de regard) commercial logging activities. Furthermore, a restructured and efficient SNBG should enable the forestry sector to properly fulfill its social, economic and environmental obligations. The foresters, the Government, and the rural communities are all expected to benefit from the restructured SNBG. 2.49 Forestry and Environment Trainino. Forestry and Environment training in Gabon has had a negligible impact on the sector's development. It comes under the aegis of MEF but its main implementing institution is the National School for Waters and Forestry (ENEF), located 30 miles from Libreville. For the past several years, forestry and environment training - 12 - in Gabon has been plagued by a number of problems due to (a) the lack of a clearly defined training strategy; (b) a training curriculum that has so far been tailored to only fill the needs of the administration; and (c) little relevance to activities in the forestry sector and to conservation practices. 2.50 Forestry and Environment Research. Due to funding limitations, the current forestry and environment research program has been limited to a few experiments dealing mainly with sylviculture on natural Okoume stands and plantations, genetic improvement of trees, tree pathology, and wood technology. It is carried out mainly by the Institute for Agronomy and Forestry Research (IRAF). This institute was created in 1976 to follow-up on research programs undertaken in the past by the French Office for Scientific and Technical Research (ORSTOM) and the Technical Center for Tropical Forestry (CTFT). Unlike most institutions involved in the forestry sector, IRAF comes under the aegis of the Ministry of Higher and Scientific Education (MESRS). To a lesser extent, the National Arboretum (l'Herbier National) and the Research Institute for Tropical Ecology (IRET) are also involved in forestry and environment research. 6. Forest Exploitation 2.51 Virtuall: 1 forest lands in Gabon are owned by the Government, which in turn regul. s forest exploitation by granting a fixed number of permits to forestry .mpanies for logging operations. Although logging permits have been granted for 8.6 million ha, logging operations are being undertaken only on about 4 million ha. Logging concessions are granted for two zones: - The First Zone consists of 5 million ha extending from the coastal plain to 150 km inland. The relatively flat terrain coupled with the proximity to ports and an extensive river network, have resulted in lower transportation and production costs compared with other parts of the country. As a result, timber production was limited to the coastal region until 1962, when extensive exploitation led the Government to curtail logging in this zone and enact legislation which forced large logging companies to relocate to the Second Zone situated more towards the interior. The First Zone was reserved for exploitation by national logging companies as the Government wanted to encourage the participation of the Gabonese population in forestry. This practice so far has not yielded the anticipated results as only very few Gabonese have actually undertaken logging activities. Most have been subleasing their concessions to foreign concessionaires. - The Second Zone encompasses 16.5 aillion ha, much of which has been made accessible as a result of the Trans-Gabonese railroad. Concessions have been granted on 6 million ha, with 1 million allotted to Gabonese companies. The Government has placed a ceiling of 200,000 ha of concession per company. 2.52 Even though there are rules governing logging activities and exploitation rights, the Gabonese authorities, namely the Ministry of Waters and Forestry (MEF) staff, have inadequate resources and capacity to assure compliance with regulations. The short duration of logging permits, which encourages overexploitation over the short-term rather than conservation for future gains, has also been detrimental. The combination of these inadequacies has been the primary cause for the depletion of the First Zone, but more importantly has had a negative impact on the environment and the forestry sector as a whole. - 13 - 7. The Timber Industry 2.53 In Gabon, timber processing for exports is dominated by a few large companies. The Compagnie Forestiere du Gabon (CFG), a parastatal, is the largest wood processing company in the country and the largest plywood producer on the African continent, with 80,000 m3 of finished product per annum. The company's logging operations average 240,000 m3 per annum, of which 88 percent is of Okoum6. Two major expatriate companies (SHM-Leroy and ROG-Rougier, France) are involved in the production of peeled veneers and plywood. The local demand for processed wood is easily met by 28 sawmills scattered throughout the country, averaging an output of 100,000 m3 of sawiawood per annum. SOMIVAB, which is owned by the railroad company (OCTRA-Transgabonais), produces Azobe railway ties for loc 1 use. The sawmills are usually small and are the major users of "Bois Divers". 2.54 The wood industry has experienced some difficulties because of the following structural and logistical constraints: (a) the overstaffing of processing plants; (b) the increasing distance from logging sites to mills as depletion of adjacent forest becomes more pronounced; (c) the ageing of equipment; and (d) the overall downturn of the economy in major urban centers (Libreville, Port-Gentil). As part of its new strategy for the sector, the Government has agreed to a restructuring plan and is currently assessing several proposals for the privatization of the largest wood processing company (CFG). 8. The Fiscal System 2.55 The current fiscal system in the wood sector is tripled-tiered: (a) area based taxes; (b) stumpage fees; and (c) export taxes (Droits et Taxes de Sortie--DTS) on export logs. Area taxes are applied for all size concessions and vary between 4 CFAF and 20 CFAF per ha. For larger industrial concessions, area taxes are negotiated on a case by case basis, depending on the level of investment. A one time fee of 2 CFAF per ha is paid at the time of attribution. Stumpage fees are set according to grade and species and vary from zero to 3,500 CFAF per i3. Lower grades of timber (Choix Economique, Choix Special) are not taxed. This stumpage tax is levied at export along with the DTS. Export taxes, including the stumpage tax, include three fees (six proportional taxes, three fixed taxes, and a custom stamp). Based on FOB prices set by the timber marketing parastatal SNBG, and a mix of species and grades, the average taxation amounts to 2,850 CFAF per i3. 2.56 Efforts have been made to promote local processing through a very low taxation rate and procedures on concession attribution that stipulate a certain transformation rate according to the size of the concession and the level of investment. 2.57 Efficiency of the System. The current system has proved ill- suited to achieve the Government's fiscal and development objectives in the forestry sector for the following reasons: (a) the lack of quality and specification control on a given quantity of logs that some companies are obligated to transform has led to inefficient sawing techniques and conditioning of the finished product which, in turn, contribute to the low competitiveness of Gabon's wood products on the export market; (b) the concession attribution system has not been properly applied and has led to an overexploitation of the readily accessible First Zone. Furthermore, it does not provide an adequate incentive system to develop less accessible forest areas, notably in the eastern part of the country but rather encourages overexploitation in easy to reach areas; - 14 - (c) the very low taxation rate on "Bois Divers" compared to the comparatively high taxation rate on Okoum6 and Ozigo, introduces a distortion in the recovery rate of the taxation system. Some highly valued timber species with FOB prices two or thrse times higher than Okoum6, are taxed at comparatively low levels; and (d) th,e fiscal system is very complex; it includes a multitude of taxes with rates as low as 0.2 percent of FOB value. This complexity results in heavy and unwarranted administrative work, when many of the taxes could be lumped into a single fee. 2.58 The current fiscal system therefore is not optimal. Furthermore, it is not known whether the combined weight of the various forest fees and taxes is too heavy, causing undue strain on the logging firms, or too light, contributing to wasteful logging practices and causing the Government to lose potential revenue. It is of paramount importance that fiscal reforms be undertaken. Consequently, the Government and the Bank agreed on the need for a study of the fiscal system. Recommendations from the study would pave the way for a reform of the forest fiscal system. The reform would address: (a) the overall competitiveness of the rector; (b) the financial viability of timber companies; and (c) the rent capture for the sector. These reforms should be made an integral part of the Government's new strategy for the sector and should address conservation objectives. Terms of reference of the study (Annex 3) have bee.4 approved by the Government. It was also agreed that the study would be financed with PPF funds. Upon completion by March 31, 1993, the study will be communicated to the Bank for ccmments and subsequently, legislative and regulatory measures which reflect the recommendations of the study as determined in agreement between the Bank and the Government will be put into effect. Assurances to this effect were obtained during negotiations (para 8.01 (a)). D. Sector Strateciv 2.59 The Government's long-term objectives for the forestry and environment sector, stated first in its 1976-1980 Development Plan and reiterated periodically, consists mainly of: (a) preserving the ecological balance and maintaining the long-term productive potential of the Gabonese forest; and (b) increasing the contribution of the forestry sector to the national economy through the rational management and conservation of existing forest resources. To date, however, the Government has not developed a clear strategy to achieve its declared objectives. Nevertheless, to its credit, it has initiated policies and taken steps to address some of the prevailing problems in the sector. It has recently established a task force on forestry to review the incentive structure for logging operations and oversee the preparation of a Sector Development Policy (LPGFE - Annex 4) which would set the stage for the establishment of: (a) a land use plan to delimitate boundaries between nature reserves, protected watersheds, commercial logging sites, and agricultural land; (b) a forest management action plan to: (i) define the role of private concessionaires; (ii) develop new procedures and guidelines to grant concessions and exploitation permits; (iii) promote forest protection and enforcement policies; and (iv) promote incentives which encourage the efficient utilization of forest resources consistent with conservation objectives; - 15 - (c) a wildlife conservation strategy in order to preserve its long-term potential; and (d) an awareness campaign to improve people's understanding of the need to safeguard the country's natural resource base. The LPGFE was finalized during negotiations (para 2.68) and a signed copy was presented to the Bank on June 1, 1992. 2.60 Most of the policies envisaged by the Government have been confronted with severe implementation problems, mostly due to the weak planning and operational capacity of institutions in the sector, namely MEF and METPN, and therefore have not yet had a significant impact on the sector. 2.61 At the same time, the Government is committed to policy reforms in the forestry sector introduced under the Bank-supported SAL, notably the restructuring of SNBG. The prescribed measures are expected to go some way toward removing the distortions generated by SNBG and improving the competitiveness of the country's forest resources. In addition, the Government has agreed to a major restructuring of MEF with a view to establishing an organizational structure conducJve to increased efficiency and cost-effectiveness in the management and conservation of the country's forest and wildlife resources. The restructuring and strengthening of MEF and the restructuring of SNBG are key elements in the fulfillment of the proposed strategy and would, therefore, be supported by the proposed project. E. Donor Activities in the Forestry and Environment Sector 2.62 Because of its high per capita income, Gabon has received modest donor assistance. The small emphasis placed on the environment in Gabon is reflected in the lack of investment in environmental projects. A study done by the International Union for the Conservation of Nature (IUCN) and financed by EEC outlines potential areas of action (creation and maintenance of reserves) that could be susceptible to funding. The proposed Bank project would draw on the IUCN recommendations and serve as a catalyst for donor involvement in environmental projects. Still, to date the forestry and the environment sector has received assistance from: (a) The European Community (EEC) which supports a reforestation project in the Moyen Ogoouo region and conducts experiments on the im;rovement of agro-forestry techniques. EEC is also supporting a regional project for the rational utilization and tl'e conservation of forests in central Africa. (b) The French Ministry of Cooperation and Development which is financing a forest management project in the Estuaire region consisting in reforestation activities, the study of prospects for controlled natural regeneration, and sylvicultural operations. The French cooperation will also undertake a major assessment of the forestry sector as part of the Tropical Forestry Action Plan (TFAP). (c) The Canadian International Development Agency (CIDA) which is funding a few but potentially important studies on forest inventories and wood technologies. (d) The World Wildlife Fand US (WWF US) has recently approved funding for a five-year program aimed at (i) improving the - 16 - management of existing reserves and establishing a new protected area in the North-East; and (ii) providing institutional support for the Wildlife Department (DFC). Activities envisaged under the WWF US program would be made an integral part of the proposiad Bank project. 2.63 At the donors meetirg held in Libreville on July 8, 1991, it was agreed by all the donors (IBRD, FAC, UNDP, WWF US, EEC, Germany) that the Bank-prepared project would serve as the basis for channeling all investments in the sector. It was noted that this agreement was already being put in practice as the EEC, WWF US and the German Cooperation were financing activities and/or actions identified in the Bank-prepared project. Furthermore, at that meeting UNDP agreed, in principle, to finance the National Environmental Action Plan (NEAP) envisaged in the Bank project. The NEAP would address all Gn-vironmental issues and would result in a comprehensive "Schema Directeur" for implementing the Government's rid- to long-term environmental strategy (ecosystems, urban and rural environments, local participation efforts, pollution, wastes, etc.). F. Bank Involvement in Gabon 2.64 After a ten-year absence, the Bank resumed lending to Gabon with a SAL in 1988. The Government accepted the challenge of undertaking significant reforms to: (a) reinforce public sector resource management; (b) rationalize the performance of public enterprises; (c) introduce incentive policies to promote private sector activity, especially among small and medium enterprises; and (d) reformulate sectoral policies to encourage growth in the non-oil sectors on an environmentally sound basis. Measures envisaged under the program progressed satisfactorily, and release of the second tranche was approved in December 1989. 2.65 As part of the overall strategy for Gabon, the Bank is supporting a road maintenance project designed to strengthen the institutional and operational performance of the road sector, and introduce new policies and measures to improve the efficiency of the use of road maintenance resources. The Bank is also supporting a technical assistance (TA) project aimed at strengthening key ministries' in critical areas during the adjustment period. The objective of the TA project is the effective training of local counterpart staff in economic management and public investment programming. Suitable Gabonese have been identified and recruited to be trained by the team of expatriate technical assistants in the Ministry of Planning and the Iiistitut d'Economie et des Finances with a view to. (a) transfer more responsibility for the management of the economy to nationals over the medium- to long-term; and (b) reduce the cost of resident technical assistance. The project also provides support for the promotion of small and medium scale enterprises. 2.66 IFC has helped the private sector in Gabon implement projects in three key sectors of the economy. The objectives of these projects were to rationalize and diversify forestry production, reduce transportation and production costs for the manganese sector, and increase production in the oil sector. IFC's net commitments to Gabon, as of February 1992, stood at US$136.9 million, making the private sector in Gabon one of the corporation's largest client in sub-saharan Africa. 2.67 In October 1991, the IMF approved a stand-by credit of SDR 28 million (about US$38 million) in support of Gabon's economic and financial reform ,rogram for 1991-92. The program aims at (a) generating growth in the non-oil sector; (b) reducing balance of payments deficit; (c) encouraging fiscal reform; and (d) reducing budgetary dependence on oil revenues. - 17 - G. Lessons Learned 2.68 Because the proposed project would be the first to be financed by the Bank in the Gabonese rural sector, preparation efforts capitalized on experien-e gained in other countries (Cote d'Ivoire, Central African Republic, Congo) during the preparation and implementation of similar operations. In particular, the need to fully involve in the project design, the participation of not only Government institutions but NGOs and local communities alike was stressed during the preparation process. In this regard, an Environmental Impact Assessment of the project was initiated before appraisal so as to: (a) record experiences of past development efforts in the sector; (b) provide a platform to get input from the population concerned by the project; and (c) fully internalize the project at all levels of society. Subsequently, project design was fine iuned to include a mitigation plan for actions that could pose potential risks to the environment. Other lessons incorporated in project design include significant measures in the area of fiscal reform, institutional strengthening, and forestry and environmental legislation. The underpinnings of the above measures are highlighted in the Statement of Sector Development Policy (Lettre de Politique G6n6rale pour le Secteur ForAts et Environnement) discussed and finalized during negotiations (para 2.59). III. THE PROJECT A. Proiect Rationale. Obiectives and Description Rationale 3.01 Forestry has traditionally played a very important role in the Gabonese economy, particularly before the oil boom, by providing foreign exchange and revenues to the Government. In 1986, forestry represented 13 percent of export value, second only to oil. However, in recent years, growth in the forestry sector has been hampered by the lack of a clear forest resource management strategy which resulted in: (a) the overexploitation of the First Zone (the closest to the port); and (b) inefficiencies in forestry institutions and the parastatal in charge of marketing Okoum6 (the country's main timber resource). 3.02 The decline in oil revenues over the years, coupled with the depletion of the coastal zone has led the Government to place a central emphasis on the forestry and environment sector and think of ways by which the sector can be revitalized while at the same time ensuring that conservation guals are not neglected. The proposed project would support the policy and structural measures undertaken by the Government to improve the competitiveness of the sector while safeguarding forest resources. 3.03 Gabon has a substantial reservoir of plant and animal wildlife and a number of ecosystems. So far, pressure on the ecosystems by either agriculture or population has been minimal. However, the potential for environmental degradation in certain areas is strong. To preserve its rich and diverse natural resource base, the Government, in 1985, has set up a Ministry in charge of the environment and has, in theory, drawn up a sound legal framework for its protection. However, most of this legislation has not been enforced. Objectives 3.04 The project would: (a) contribute to a better use of forestry resources by impleibenting, on a pilot basis, a management plan in the depleted First Zone; (b) to this end, reinforce the strategic planning and - 18 - operational capacity of government institutions in the sector through the restructuring and strengthening of MEF and METPN; (c) resume forestry and environment research activities; (d) make forestry and environment training more practical and tailored to the needs of the private sector and to conservation needs; (e! prevent environmental degradation; and (f) support the Government in the creation and maintenance of wildlife reserves. 3.05 Environmental ImDact Assessment (EA). Although the project was initially clar'ified under the environmental category D, indicating a project with positive impact on the environment, the Bank and the Gabonese Government decided to undertake an Environmental Impact Assessment of the project. In FY92, the category D classification was abolished. The project was subsequently reclassified as a category A project. The EA was initiated to ensure the soundness of the project and confirm that activities proposed under the project will not impact negatively on the environment and on local communities in the project area. The EA was initiated in June 1991 by a working group (Noyau Permanent de Travail) comprised of staff from key ministries (MEF, METPN, MPE), and two local consultants (one Environmentalist, and one Sociologist) working closely with an internationally recruited environmentalist. Local NGOs (Club des Ecologistes et Naturalistes Africains-CENA, Front des Ecologistes Gabonais- FEG, Inter Assistance pour le Developpement Rural-IADR) and community groups were involved from the beginning. The local media (press, radio), seminars and large expanded meetings where members of the public where invited (r6unions 6largies) provided a platform through which all interested parties could comment on the project viability/necessity and probable impacts as designed prior to appraisal. 3.06 The EA revealed that the project could have two significant impacts: (a) a possible increase in wildlife poaching (already a serious problem in Gabon) in the project area; and (b) localized pressure on land in areas with relatively high population density, notably around plantation sites envisaged in the project. A mitigation plan was developed for each of these potential impacts and its measures and costs were incorporated into the project design. A detailed description of the EA process is available in the Environmental Impact Assessment Report. A summary of the EA report was distributed to Executive Directors on April 17, 1992. This summary is also available in Annex 5. Proiect Description 3.07 The project would consist of the following components: (a) Institutional Strenothenina. Assistance would be provided in restructuring MEF to streamline and better define the functions of its directorates; and in supplying other resources (field housing, offices, vehicles, etc.) to increase MEF and METPN operational, planning, and monitoring capabilities, and more importantly increase their presence in the field so as to enable them to better supervise logging operations. In addition, the Directorate of Game and Wildlife at MEF would be provided with the resources needed to: (i) improve its operational capacity; (ii) enforce legal issues related to the environment; (iii) increase its presence in the field; and (iv) prevent poaching and other actions which could have a negative impact on the environment. (b) Forestry and Environment Trainina. Activities under this component would consist of (i) promoting a forestry and environment training program tailored to the needs of the private sector; (ii) providing - 19 - professional training and retraining for forestry graduates; and (iii) implementing a management and conservation plan for thb Mondah Forest. (c) Forestry and Environment Research. Activities envisaged under this component would center on: (i) genetic improvement of Okoum6 trees; (ii) sylvicultural operations on natural forest and plantations with the view of bringing about durable and rational management of forest resources; and (iii) stabilization of agricultural production systems around plantation sites through agroforestry technics- -this need was highlighted during the EA process. Some equipment and refrigeration facilities would be provided to the National Arboretum to ensure the conservation of its collection of plant species. (d) Forest Inventory and Rehabilitation. Project support would involve the preparation and implementation of a management plan subsequent to the rehabilitation and protection of 40,000 ha of natural Okoum6 stands identified from an inventory of 275,000 ha in the coastal zone; and rehabilitation of 5,000 to 6,000 ha of artificial Okoume stands. (e) Creation and Maintenance of Reserves. This component concerns the protection of the Moukabala and Sett6- Cama reserves and provision of infrastructure for the creation of additional reserves. In concert with the World Wildlife Fund (WWF), the reserves would be strengthened and, in time, be opened for eco-tourism purposes. B. Detailed Features 3.08 The project would be carried out over five years (1993-1997). It would be the first phase of a long-term program. The components are described below and more details are given in the project preparation report and associated working papers. (a) Institutional Strenatheni q 3.09 The General Directorate of Waters and Forestry (DGEF) would be restructured in order to reduce the overlapping of institutional functions, and to increase its operational and planning capacity and its presence in the field. The restructuring plan would mainly consist of regrouping all central directorates (9) into three directorates, namely the Directorate of Forestry, the Directorate of Fisheries, and the Directorate of Wildlife. Coupled with the merging would be the progressive transfer of staff from headquarters to regional inspection which, under the new plan, would be given the status of central directorates. The submission to the Bank of an acceptable staffing plan including a timetable for the implementation of field staff transfer would be a condition of Loan effectiveness (para 8.02 (c)). 3.10 The project would finance the construction and/or rehabilitation of offices at NEF's headquarters and in the field. It would also finance the construction and/or rehabilitation of housing in selected regional services (Estuaire, ogooue Ivindo, Ogoou6 Lolo, and Moyen Ogoou6). A total of 1730 e2 would be constructed and 830 e2 rehabilitated. - 20 - 3.11 To increase staff mobility, the project would fund the purchase of vehicles for the central and regional offices. Furthermore, the project would induce competent staff to move from central to regional offices, by installing in regional offices a favorable working environment. Provisions would be made for operating costs of vehicles and maintenance costs of buildings and equipment. However, the Government would be expected to gradually cover these costs, so as to indicate its commitment to sustained involvement in the development of the forestry and environment sector. Government would also cover all salary costs. 3.12 Also, the project would support institutions directly responsible for environmental issues, namely DFC and METPN. Training would be provided to staff at DFC and METPN, and to forest rangers. The statistics and documentation service within DFC would be strengthened, and a monitoring unit comprised of staff from both DFC and METPN would be set up to oversee day to day execution of project activities. Provisions would be made to support local environmental assessment efforts and to raise awareness of local communities on environmental issues. In this rsgard, the project will provide support to local environmental NGOs (Club des Ecologistes et Naturalistes Africains-CENA; Front des Ecologistes Gabonais- FEG; Inter-Assistance pour le D6veloppement Rural-IADR) through the financing of seminars, workshops, and environmental publications. The strengthening of these institutions, working together, would improve their capacity to translate environmental policies into a concrete plan of action and better coordination with other government institutions and the donor ccmmunity. 3.13 To complement the institutional strengthening process, several studies would be undertaken, notably, the project would provide funding for two feasibi:ity studies; one for the protection of 15 recommended zones (Working paper No 2, Table 3) and the other for a joint training program between the School of Wildlife Studies in Garoua (Cameroon) and the Tropical Ecology Research Institute of Makokou (IRET-Gabon). In addition, a study on the state of the environment in Gabon would be financed and its findings would be updated every 5 years. Finally, studies would be also carried out on: (i) the needs and habits of the forest dwellers; and (ii) the potential for tourism in identified areas. 3.14 Under this component, the project would finance for five years the position of an internationally-recruited Forest Management Specialist (Terms of Reference in Annex 6). In addition to the above resident position, the project would fund five person-months of short-term consultancies. (b) Forestry and Environment Trainina 3.15 The forestry training component would provide support to the National School of Waters and Forestry (ENEF). The objective of this component is to improve the quality of training at ENEF so as to increase the relevance of its programs to employment and productivity in the private sector, and assist in the process of defining and implementing a forest conservation strategy. This component would consist of establishing a new training program that will be supplemented by the formulation and implementation, by students, of a management plan for the Mondah forest. 3.16 The training program would have the following key features: (i) the restructuring and the revising of the training curricula for the degrees of forestry engineer and forestry technician; (ii) the design and implementation of refresher courses for NEF staffs - 21 - (iii) the design and implementation of training programs for mid- level forestry staff and technical agents in the private sector; and (iv) the definition and implementation of training curricula with several major environmental protection themes (erosion, soil fertility, water conservation, biodiversity, interface between forest and environment, etc..) 3.17 The overall training curricula would be redesigned around specific technical themes. Incoming students would be required to participate in a short initiation internship in the field before actually starting the first school year. This "stage d'immersion" is important because it helps determine whether a prospective student is ready to meet the challenge of the forest milieu. In addition, periodic practical training in the field and/or in private forestry enterprises would be made an integral part of the overall training program. 3.18 The Mondah Forest covers an area of 8,000 ha. Following a presidential decree dated June 24, 1969, the Mondah Forest was placed under the supervision of ENEF to serve as a practical training around for forestry students. ENEF was also given the responsibility of implementing a management plan for the forest and undertake a series of research activities in cooperation with IRAF. The proposed project activities would consist of: (i) astablishing maps of cultivated areas in the Mondah Forest; (ii) carrying out an inventory of 8,000 ha; and (iii) having students participate in the drawing and implementation of a management plan for the Mondah Forest. 3.19 Under this component, the project would finance vehicles, office, field, and camping equipment, tools, training supplies, short-term and long-term scholarships, and the construction and equipment of a small pilot sawmill. Finally, the project would provide technical assistance for overall support to the component. It would finance for three years the position of an internationally recruited specialist (Terms of reference in Annex 6). An additional nine person-months of specialized short-term consultancies would also be provided by the project. 3.20 Project assistance for this component would be complemented by: (i) German and EEC support for the renovation of school buildings and the provision of additional infrastructure support (vehicles, equipment), and some technical assistance; and (ii) French support in the form of trainers. (c) Forestry and Environment Research 3.21 The project would provide some support to MEF with a view to strengthen its capacity to implement a limited research program relevant to Gabon's forestry and environment research needs. 3.22 Project activities under this component would center on: (i) genetic improvement of Okoum6 trees; (ii) sylvicultural operations on natural forest and plantations with the view of bringing about durable and rational management of forest resources; and (iii) stabilization of agricultural production systems around plantation sites through agroforestry technics--this need was highlighted during the EA process. 3.23 Actual field operations, notably agro-forestry, and genetic improvement activities would be carried out in the Mbine research Station. Research work on sylvicultural operations would be carried out in the Ekouk - 22 - research station. A total of 24 ha of experimental plots would be installed by the project. In addition, the project would assist MEF in the rehabilitation, maintenance, and scientific monitoring of 1000 ha of existing experimental plots. 3.24 To execute the component, MEF would employ specialized consultants or establish contractual arrangements with one or several research institutions such as the Institute for Agronomic and Forestry Research (IRAF). Thirty seven person-months of technical assistance would be provided by the project. Four national researchers (three Foresters and one Agronomist) would be assigned to the project. A limited number of vehicles, equipment, supplies, and research material would be provided by the project. 3.25 The project would also provide funding for the design and compilation of a forest dendrology manual to help forestry agents in the identification and the grading of various timber species. The manual would also be used for tourism and educational purposes. An additional six person-months of technical assistance would be required for this purpose. (d) Forest Inventory and Rehabilitation 3.26 The main objective of this component is to help the Gabonese Government build-up a permanent forest domain that is rationally managed. This entails: (i) undertaking inventory and other diagnostic activities with a view to "knowing" the forest and what it contains; (ii) planning of forest development and conservation activities (plantations, sylvicultural operations, natural regeneration, etc.); and (iii) controlling and optimizing logging activities in order to avoid waste, prevent localized depletion and limit exploitation of suitable areas in a manner compatible with their natural regeneration capacity. Through a pilot operation (40,000 ha out of 5 million ha), the project would train, equip, and assist the forestry service in the initiation of a management plan which could, in the future, be extended to the entire coastal zone. 3.27 Natural Okoum6 Stands. The lack of management plans and extensive logging in the First Zone (5 million ha) have led to the partial depletion of the natural forest in that region. Operations under the proposed project would be undertaken and supported by government measures stopping the granting of concessions and logging permits in Zone I. There will be no logging in the Droiect area. Preliminary findings indicate that a total of about 275,000 ha around the city of Foulenzem would be suitable for the initiation of such operations. In addition to these operations, a faunal and floral inventory would be undertaken in the 275,000 ha area. This area has been chosen for the following reasons: (a) its proximity to Libreville, allowing easy monitoring and dep'oyment of staff and other personnel; (b) relatively dense population of Okoume stands; (c) absence of concessions and logging activities; (d) weak population density in the proposed area; and (e) existence of a road network. Activities in the project area would serve as a basis for drawing up a rational management plan for future exploitation and establish a cost- effective program for the rehabilitation of the entire coastal zone. The signing of a Ministerial Arret6 setting aside areas to be rehabilitated under the project would be made a condition of Loan effectiveness (para 8.02 (d)). 3.28 The project would cover, over a five-year period, a total of about 40,000 ha identified from the 275,000 ha and would be implemented as follows: (i) Identification of pilot area through a review of available material at a scale of 1/50,000. This material consists in two sets of aerial photographs (1955 and 1982); a complete mapping - 23 - of the 275,000 ha; and a ground inventory of the 275,000 ha at 0.75 percent sample density. (ii) Ground inventory of 40,000 ha at 6 percent sample density which would be carried out by an inventory brigade comprised of one engineer, 5 technicians, and 5 field teams (for opening up lines and for counting trees). Technical assistance would be provided for inventory design and monitoring. (iii) Demarcation of the 40,000 ha required would be done under the supervision of two forestry assistants and would require two teams of nine people for the opening up and the maintenance of artificial limits. (iv) Sylvicultural operations on 40,000 ha would be carried out by a team of two forestry assistants, six brigadiers, and 30 workers (three man-days per hectare). (v) Construction of four houses and one office at Foulenzem for local technicians and brigadiers, and the purchase of vehicles required for the transport of the labor force. 3.29 Artificial Okoum6 Stands. Since the early 1960s, the Government has undertaken with financing from the donor community a program of artificial plantations. Under the program, a total of about 30,000 ha have been planted mainly in the Bokou6 and Mvoum regions (Coastal Zone/Zone I). The lack of sylvicultural operations and proper management has hampered growth, and has kept plantations from reaching their full development potential. 3.30 The project would undertake sylvicultural operations on 5,400 ha of salvageable Okoum6 plantations out of the total of 30,000 ha planted between 1960 and 1989. Weeding and maintenance operations would take place on 2,000 ha of young plantations, and thinning operations would take place on 3,400 ha of adult plantations. These operations would be initiated to gradually save plantations with development potential. The main area of emphasis would be in the Bokoue, Mvoum, Mbin6, and Haut-Como regions. 3.31 Project activities under this component would be as follow: (i) Aerial photography (scale 1/10,000) and photo- interpretation would be done on approximately 3,500 ha in order to cover the total planted area. The identified treatable areas would then be subject to a full ground inventory. (ii) Weeding and cleaning operations would require nine man-days per ha and would be implemented by a team of three people. (iii) Marking and thinning would be implemented under the authority of a forestry officer assisted by two technicians and six laborers at a pace of five ha per day for marking and 1/3 ha per day for thinning. (iv) Rehabilitation of existing access roads as well as means of transportation to increase personnel mobility and work efficiency. (e) Creation and Maintenance of Reserves 3.32 To support the creation and maintenance of reserves the project, in concert with WWF US efforts, would identify and protect 800,000 ha of - 24 - forest land. These reserves (Moukalaba, Sette Cama) would be strengthened and, in time, opened for eco-tourism purposes. In this regard, the project would finance perimeter tracks, markers, the construction and/or rehabilitation of buildings (housing and offices), vehicles, equipment, and some incremental operating costs. The project would also finance mapping studies and surveys. This component would be carried out through DFC with the cooperation of the World Wildlife Fund. IV. PROJECT COSTS. FINANCING. PROCUREMENT, DISBURSEMENT. ACCOUNTS. AUDITS. AND REPORTING A. Proiect Costs 4.01 The total cost of the proposed project over the 1993-97 period, including all incremental capital and recurrent expenditures, is estimated at CFAF 10.6 billion ($38.2 million), of which CFAF 6.1 billion ($22.2 million) or 58.1 percent of total cost in foreign exchange and about CFAF 479 million ($2.1 million) or 5 percent in taxes and duties. 4.02 Base costs have been estimated at December 1991 prices using the rate of exchange of CPAF 23 prevailing at that date. Physical contingencies have been allowed on investment and operating cost items, except for technical assistance and staff salaries. Tlhe average physical contingency amounts to 6.2 percent of base costs, with individual rates ranging from 5 percent to 10 percent. Price contingencies have been applied to base costs over an estimated implementation period of five years (1993-1997). Price contingencies on foreign exchange costs based on Bank's projections of international price increases have been included at an average of 3.7 percent from 1993 to 1997. Price contingencies on local costs are based on annual price increases of 4.0 percent for 1993, 1994, and 1995, and 5 percent thereafter to reflect current inflation trends in Gabon. Total price contingencies amount to 21.3 percent of base costs. 4.03 Projet costs are summarized below and detailed estimations for each component are given in Annex 8 and Working Paper No. 3. - 25 - Prolect Cost Summarv Local Foreign Total Local Foreign Total XForeign X Total ------(CFAF million) ------ ....(USS million) ---- Exchange B. Costs A. Institutional Strengthen. 1. Management Support 188.7 427.7 616.2 0.7 1.5 2.2 69.4 7.4 2. DGEF 1091.0 1613.9 2704.9 3.9 5.8 9.7 59.7 32.5 3. DFC 476.7 563.0 1039.6 1.7 2.0 3.7 54.2 12.5 4. DGEN 169.3 243.7 413.0 0.6 _Q. .9L 1.5 L j0 59.0 5.0 Sub-Total 1925.6 2848.3 47M7.9 6.9 10.2 17.2 59.7 57.4 B. For/Env. Training (ENEF) 181.7 447.2 628.9 0.7 1.6 2.3 71.1 7.6 C. For/Env. Research 255.9 332.1 588.0 0.9 1.2 2.1 56.5 7.1 0. Forest Rehabilitation 1. Natural Okoum6 Stands 661.8 340.9 1002.7 2.4 1.2 3.6 34.0 12.0 2. Plantations 569.3 54.4 623.7 2.0 _.2 2.2 _8.7 7.5 Sub-Total 1231.1 395.3 1626.4 4.4 1.4 5.9 24.3 19.5 E. Reserves 1. Moukalaba 89.0 320.8 409.8 0.3 1.2 1.5 78.3 4.9 2. Sette Came 161.0 140.3 301.3 0.6 0.5 1.1 46.6 3.6 Sub-Total 250.0 461.1 711.1 0.9 1.7 2.6 64.8 8.5 Total Baseline Costs 3844.2 4484.1 8328.3 13.8 16.1 30.0 53.8 100.0 Physical Contingencies 201.8 311.1 512.9 0.7 1.1 1.8 60.7 6.2 Price Contingencies 403.1 1367.5 1770.6 1.5 4.9 6.4 77.2 21.3 Total Projects Costs 4449.2 5162.7 10611.9 16.0 22.2 38.2 58.1 127.5 S. Proiect Financina 4.04 Project financing is presented in the following table. Financfna Plan by Catecorv of Goods and Servfces (USS million) Local IBRD EEC Govt HWF Other Total For. (Exclu. Duties Amount Amount Amount hm Amu Amount Exch. Taxes) and Tax Civil Works 2.1 0.9 0.0 0.0 0.2 3.2 1.6 1.5 0.0 Materials & Equip. 2.1 1.5 0.0 0.5 0.3 4.4 3.1 1.3 0.0 Vehicles 4.2 0.6 1.7 0.0 0.5 7.0 5.1 0.2 1.7 TA/Service Contracts - Manag. Asst. 4.9 0.0 0.0 0.6 1.5 7.0 6.7 0.3 0.0 - Forest Inventory 5.0 0.7 0.0 0.0 0.0 5.7 1.4 4.4 0.0 - Studies 0.3 0.0 0.0 0.0 0.0 0.3 0.3 0.1 0.0 - FelloNships/Train. 2.0 0.0 0.0 0.0 0.1 2.1 1.4 0.7 0.0 Operating Costs 1.6 0.6 4.4 0.6 0.9 8.2 2.4 5.7 0.0 PPF 0.3 0.0 0.0 0.0 0.0 0.3L 0.2 0.1 0.0- financing Req. 22.5 4.3 6.2 1.7 3.4 38.2 22.2 14.3 1.7 Share of Fin. CU) Uith Taxes 59.0 11.0 16.0 4.0 8.0 100U Without Taxes 62.0 12.0 17.0 5.0 9.0 100X - 26 - 4.05 A number of donors including FAC, Japan, AfDB, the Federal Republic of Germany, and BADEA, have expressed interest in financing specific activities under the proposed project. These sources are being explored, and the financing plan will be confirmed prior to implementation. 4.06 The proposed loan of $22.5 million equivalent would finance about 62 percent of project costs (net of taxes). The Government's financial contribution to the project would include 100 percent taxes and duties and recurrent expenditures on an increasing basis starting at 30 percent in PY1 and reaching 90 percent in the last year of the project. The Government would channel its contribution through a project account. The opening of this account and evidence of initial deposit of CFAF 150 million would be a condition of Loan effectiveness (para 8.02 (e)). C. Procurement 4.07 The proposed procurement arrangements are detailed on page 27. During negotiations, assurances were obtained from the Government that it will respect these arrangements and apply procurement procedures in accordance with Bank guidelines and that progress reports would include monitoring of the various aggregate amounts and ceiling (para. 4.13). The Ministry of Waters and Forestry would be the executing agency responsible for carrying out project activities, including all procurement. 4.08 Civil works for the construction of buildings (housing, offices) at the central and regional levels are too small and too scattered to attract international competitive bidding. Contractr for these works, each not exceeding US$ 200,000 equivalent, would therefore be awarded through Local Competitive Bidding (LCB) procedures. These procedure have been reviewed and found acceptable by the Bank. There are enough contractors in the country to provide for adequate competition. Foreign contractors would, however, be eligible to bid. Total Bank financing under LCB for the civil works contracts is estimated at the equivalent of US$ 2.1 million. 4.09 Contracts for vehicles and eauiDment would be grouped into lots to the extent possible and those in excess of US$ 200,000 would be awarded on the basis of International Competitive Bidding (ICB). LCB, using r,rocedures acceptable to the Bank, would be used for procurement involving contracts of less than USs 200,000 but greater than US$ 50,000, up to a total of US$ 0.2 million over the life of the project. Contracts for small items of equipment under USS 50,000 each, up to a total of US$ 200,000, that cannot be grouped under the above procedures may be procured by local shopping (minimum three quotations). 4.10 Service contracts for the provision of Forest Inventory and rehabilitation would be awarded through Limited International Bidding (LIB) given their specific nature and the limited number of contractors. The established list of contractors would be subject to prior review by the Bank. Consultants and technical assistance personnel financed by the Bank will be selected in accordance with Bank guidelines. Studies, training, and audits are included in that category. 4.11 Incremental oDeratina costs, including staff travel allowances, vehicle operation and maintenance, equipment and office costs, given their nature, would not be subject to competitive bidding. However, strict budgetary and expenditure control will be applied. 4.12 Local Competitive Bidding would include local advertising, eligibility of foreign bidders, public opening of bids and award to the lowest bidder. A minimum of four bids will be required. Procurement procedures for Bank-financed works and goods contracts and bidding packages estimated to cost over US$ 100,000 as well as technical assistance would be - 27 - subject to prior review by the Bank as would the award of the contract. Works, goods, and services for contracts below US$ 100,000 and above USS 30,000 would be subject to post-review in accordance with paragraphs 3 and 4 of the guidelines. Random post review for goods, works, and services contracts below USS 30,000 would be made by Bank staff on supervision missions and during annual audits and based on certified statements of expenditures (SOE). 4.13 Procurement information would be collected and included in the semi-annual progress report to be prepared by the project management so as to update cost estimates and timing of procurement actions. In particular, various aggregate amounts and ceilings would be Lonitored. Prompt reporting of contract award information would also be realized and a completion report would be prepared within six months of the Loan's closing date. Summarv of Prozosed Procurement Arranoements (USS million eauivalent) Procurement Method Project Element ICs LCB Other N.B.F Total 1. Works 1.1 Buildings 2.1 - 1.11/ 3.2 (2.1) (2.1) 2. Goods 2.1 Vehicles/Equipment 5.9 0.2 0.2 5.1hW 11.4 (5.9) (0.2) (0.2) (6.3) 3. Consultancies 3.1 Management Support - - 4.9 2.1q/ 7.0 (4.9)SV (4.9) 3.2 Studies - 0.3 0.3 (0.3) (0.3) 3.3 Training 2.0 0.1s/ 2.1 (2.0) (2.0) 4. Service Contracts 4.1 Forest Inventory - - 5.0 0.71/ 5.7 - - (5.0)gf (5.0) 5. Miscellaneous 5.1 Incremental Operating Costs - - 1.6 6.6b/ 8.2 (1.6) (1.6) 5.2 Refinancing of PPF - - 0.3 - 0.3 (0.3) (0.3) 5.9 2.3 14.3 15.7 38.2 Total (5.9) (2.3) (14.3) (22.5) Note: Figures In parentheses are the respective amounts financed by the Bank loan. N.B.F.: Not Bank-Financed M/ To be financed by EEC and BADEA under their own procurement arrangements h/ Includes Covernment, EEC, BADEA, and WWF under their own procurement arrangements Li Includes Government, WUF, BADEA under their own procurement arrangements Consultancies would be procured in accordance with World Bank guidelines J To be financed by BADEA f/ To be financed by EEC gi To be procured through Limited International Bidding in accordance with Bank guidelines h/ Includes Goverrment, EEC, WUF, and 8ADEA under their own procurement arrangements - 28 - D. Disbursements 4.14 The proposed loan would be disbursed over a period of six and a half years, which corresponds to the standard regional disbursements profile (Annex 9). Allocation and Disbursement Cateaories % of Expend. Amount To Be Cateaorv Allocated Financed al (US$ million) 1. Civil works 2.0 80% 2. Vehicles and Equipment 6.0 100% FE; 80% LE 3. TA/Service Contracts a) Managemant Assistance 4.0 100% b) Forest Inventory 4.5 100% c) Studies 0.3 100% 4. Fellowship and Training 2.0 100% 5. Operating Costs 1.1 Declining basis k/ 6. PPF Refinancing 0.3 Amount due 7. Unallocated 2.3 Total 22.5 _/ of amount net of taxes. b/ 70% until 12/31/94, 50% until 12/31/96 and 10% thereafter. 4.15 To facilitate project execution, a Special Account equivalent to US$500,000 representing about 3 months of expenditures would be opened in a commercial bank. The terms and conditione for operating this account were agreed during negotiations. This account would be replenished by the Bank against documented expenditures and upon receipt of withdrawal applications. Disbursements would be fully documented except for expenditures under contracts valued at less than USS 30,000 equivalent, local training, and operating costs in which case statements of expenditure (SOEs) would be used. The Bank would not honor direct payment requests below US$ 30,000 equivalent. Documentation would be held for review by Bank supervision missions and verification by external auditors. B. Financial Management. Accounts, Audits. and Regortina 4.16 The Project Coordination Unit (PCU) of the Minietry of Waters and Forestry (para 5.02) would be responsible for overall financial control of the project. It would also maintain accounts, prepare disbursement applications, and manage project funding for all components. 4.17 Detailed budgets would be submitted to the Bank for approval prior to the beginning of each implementation year. The project accounts which would be prepared in simple cash basis, would classify expenditures by component for budgetary and management control purposes. There would be tight physical control of vehicles and equipment. Project accounts would be audited according to international standards acceptable to the Bank. The auditor would be required to express an opinion on the reliability of - 29 - SOE procedures, the legitimacy of expenditures made out of the special account, the utilization of goods and services financed under the loan, and the standards for record keeping and internal controls. The audited accounts and reports would be submitted to the Bank no later than six months after the endc of the financial year (December 31!) Assurances to this effect have bes.: obtained during negotiations (para 8.01 (b)). 4.18 DGF, DFC and DGE would each be responsible for monitoring project implementation, including physical and institutional objectives. With assistance from the Project Coordination Unit, each directorate would prepare semi-annual progress reports assessing progress (physical, institutional, budgetary) against agreed annual programs of operations and targets. To this effect, all technical directorates would communicate to the Bank, through the Project Coordination Unit. V. PROJECT MANAGEMENT AND IMPLEMENTATION A. Proiect Management and Implementation 5.01 The Gabonese Government through its Minietry of Waters and Forestry would be responsible for ensuring that the project would be carried out in accordance with provisions of the loan agreement. The project would be implemented through existing institutions/departments, and the responsibility for executing each component or sub-compouent would rest with the particular institution concerned. The Directorate General of Forestry (DGF) would be responsible for implementing the Forest Inventory and Rehabilitation component and for carrying out the institutional strengthening of its sub-directorates and regional services. The Forestry and Environment training component would be implemented by the National School of Waters and Forestry (ENEF), and the Forestry and Environment research component by the Directorate General of Forestry. The creation and maintenance of reserves would be undertaken by the Directorate of Wildlife (DFC) and WWF US field personnel in concert with the Directorate of Environment (DGE). Overall responsibility for the various studies and the UNDP-funded NEAP would rest with DGE. A preliminary implementation Schedule is presented in Annex 10. 5.02 Overall responsibility for project management and coordination would rest with a Project Coordinator in the Project Coordination Unit to be established. Assurances in this regard have been obtained during negotiations (para 8.01 (c)). The establishment of the PCU and the posting of the Project Coordinator would be a condition of Loan effectiveness (para 8.02 (f)). The Project Coordinator would be assisted by an internationally recruited Forest Management Specialist, a forestry engineer, a financial controller, an accountant, a secretary, and a driver. The Forest Management Specialist would provide specific support to the institutional strengthening component and would give priority to on-the-iob training of national staff. In PY2, this specialist would be also in charge of assisting in the preparation of the project's Mid-Term Review (para 5.06). In addition to the above resident technical assistance staff, the project would finance ten person-months of short-term consultancies to strengthen the administrative and financial management capacity of project staff. In particular, these consultancies would help (a) establieh, and subsequently apply, appropriate financial and accounting procedures; and (b) train national staff in the use of a computerized accounting and budgetary system. Also, in view of the complexity of the project, five person-months of short-term consultancies (one per annum) would be provided to enable both NEF and METPN to capitalize on supervision tasks undertaken by the Bank, and to gradually strengthen their own supervision capacity. - 30 - 5.03 To ensure inter-ministerial coordination and periodically assess progress, a Project Coordination Committee (CCP) would be set up and chaired by the Minister of Waters and Forestry. It would include the Project Coordinator, Directors of DGF, DFC, DGE, IRAF, ENEF, the Director of Investment Programs at the Ministry of Planninsg, a representative of SNBG, the President of the Foresters Syndicate and representatives of local environmental NGOs (CENA, FEG, IADR). The committee would meet at least twice a year to review project progress and address inter-ministerial and other policy issues. B. Annual Work Proarame 5.04 Annual work Programs (AWP) would be prepared by the Project Coordination Unit in conjunction with the concerned technical directorates. The AWP would include: (a) progress to date; (b) the work program for all project components for the coming year; (c) an estimation of staff and equipment needed to achieve project objectives; and (d) the preparation of appropriate budgets. The work programs will be fine-tuned during Bank supervision missions (Annex 11). Assuranceq were obtained during negotiations that draft Annual Work Programs would be submitted to the Bank for comments before September 30 of each year (para 8.01 (d)). After taking into account Bank comments and approval, the Government would submit a revised Work Program to the Bank for final review and approval by September 30 of each year. C. Monitoring and Evaluation 5.05 The Project Coordination Uait would have primary responsibility for the monitoring and evaluation of the project. It would be assisted in this task by the already established Permanent Working Nucleus (NPT) comprised of staff from key ministries (MEF, METPN, MPE) and representatives of local NGOs. Monitoring of forestry and environment training and research components would be carried out through the review of quarterly reports from ENEF and IRAF. Monitoring of the NEAP and the various studies would be carried out through quarterly reports from DFC and DGE. Within six months of project completion, MEF would prepare a Project Completion Report acceptable to the Bank. 5.06 Mid-Term Review. A mid-term review would be undertaken in June 1995 to confirm or improve the orientation of project activities. In this regard, a number of key performance indicators to be assessed would be agreed on (Annex 14). In particular, the Review would cover, inter alia: (a) progress in the implementation of policy actions on fiscal and environmental legislation under the Forestry and Environmental Sector Development Strategy; (b) status of studies and the Forest Rehabilitation program; and (c) progress in the redeployment of MEF field staff; (d) evaluation of consultants' performance; and (e) overall project performance against agreed key performance indicators. Assurances to this effect were obtained during negotiations (para 8.01 (e)). As was done during the EA process, a platform would be provided for all interested parties to comment on the project's achievements and/or shortcomings. VI. PRODUCTION. MARKETS AND PRICES. AND FINANCIAL IMPLICATIONS A. Production 6.01 Natural Okoum6 Stands. Incremental production has been assessed on 40,000 ha of existing young Okoum6 stands (15 years). The "without project" hypothesis assumes that annual production would stagnate at 60 ml - 31 - per ha. With the project, output is expected to rise to 160 m3 per ha starting in year 30. 6.02 Artificial Plantations. Of a total 30,000 ha of existing plantations, the project would undertake sylvicultural operations on 5,400 ha. These operations would consist of weeding and maintenance operations on 2,000 ha of young plantations (7 years) and thinning operations on 3,400 ha of adult plantations (12 years). The "without project" hypothesis assumes that annual output would stagnate at 90 m3 per ha for adult plantations and 50 m3 per ha for young plantations. With the project, output is expected to increase, starting in year 34, from 90 m' per ha to 360 m3 per ha for adult plantations, and starting in year 39, from 50 m3 to 360 m3 per ha for young plantations. B. Markets and Prices 6.03 Okoume, the dominant timber resource in Gabon is marketed by SNBG. Other timber species (Bois Divers) are traded freely. SNBG's marketing abilities and inefficient management practices on Okoum6 have greatly hampered the competitiveness of Gabon's timber exports. As stated earlier (para 2.45), SNBG's lack of effectiveness has reduced its financial viability and has increased the vulnerability of private foresters. However, since February 1991, date when SNBG was obligated to implement a major restructuring program, its marketing position has been greatly enhanced. Its services have been very aggressive in finding new markets. In concert with the Ministry of Waters and Forestry, it has led foresters to rationalize production in function of timber demand. Furthermore, there has been an noticeable upswing in the demand for Okoum6 as clients who had turned to close substitute of the Okoum6 specie in the early 1980s are now demanding more Okoum6 as its quality and durability was found to be unparalleled. This increased demand is reflected in figvres from 1989 onward. The following table summarizes SNBG's activities from 1984 to 1991. VOLUMES AND EXPORTS OF OKOUME 1984 1985 1986 128f_ 1988 1989 199 * Sales (billion CFAF) 42.2 38.1 32.5 32.6 34.3 36.5 38.0 42.7 Log Exports ('000 m) 1,012 902 859 901 859 °95 1,000 950 Av. FOB price per a? (CFAF) 38,700 39,300 35,800 34,300 37,835 36,665 38,000 45,000 Net Gains (minus subsidies) (0.41) (1.26) (4.20) (3.20) (2.30) (1.80) ('..70) (0.6) (billion CFAF) * Estimates. The P0 percent decline in sales from 1984 to 1988 is primarily due to a reduwtion in export volume and FOB prices. A questionable grading system, coupled with high and inappropriate marketing margins on some timber species, has also contributed to the decline. 6.04 The continuing sluggish market for logs in Western Europe, coupled with increasing ecological and environmental concerns, will limit growth prospects for Gabonese timber exports. However, measures envisaged by the Government would increase the competitiveness of Gabon's forestry sector by: (a) removing institutional and marketing (SNBG) bottlenecks; (b) encouraging first processing activities to promote diversification of - 32 - timber exploitation; and (c) preventing the commercial loggers to engage in wasteful cutting practices. C. Budgetarv Imolications 6.05 The total Government contribution, as a result of the project would amount to US$6.2 million (CFAF 1.7 billion). Assurances were obtained during negotiations on the opening by the Government of a project account, and deposit of its share of the project funding quarterly and in advance, based on annual budget and disbursement forecasts for the next three months (para 8.01 (f)). During project execution and after completion, the Government would be expected to maintain adequate funding for the forestry sector. This funding would be primarily used to finance the replasement of vehicles and equipment, and keep an adequate level of maintenance and rehabilitation work in the plantations. Following project completion, MEF and METPN combined recurrent budgets would need to be increased by CFAF 400 million per year to cover incremental cost arising from the project. Appropriate level and timely availability of financial resources for forest management and rehabilitation are requirements for the long-term success of the forest rehabilitation program to be carried out under the project. 6.06 Assuming that no cutting license is granted on areas under the project until natural and artificial Okoum6 stands have reached their full development potential, the Government would start generating considerable revenues on 40,000 ha of natural Okoume stands in PY30, and on 3,400 ha of artificial Okoum6 stands in PY34. The volume and value of annual allowable cut is indicated in Annex 12. VII. BENEFITS, ECONOMIC JUSTIFICATION, AND RISKS A. Benefits 7.01 The proposed project would improve the management and protection of Gabon's forest resources and its environment. Measures envisaged under the project would help stop overexploitation in the coastal zone and initiate a sound forest management plan for the remaining areas. The project would serve as an important instrument for implementing government policies dealing with forestry and the environment, and would further strengthen the scope of these policies. The project would strengthen NEF and METPN's planning and operational capacity through the implementation of training programs, studies, and the provision of vehicles ana equipment and infrastructure. As a result of the National Environmental Action Plan initiated during project preparation, more appropriate conservation policies would be developed and implemented. The project would also encourage private sector involvement in the implementation of activities which would have significant impact on the conservation of the forestry sector, and provide significant employment potential for the rural sector. Through the implementation of a revamped training program at ENEF, the project would make forestry and environment training more relevant to the needs of the private sector and to conservation needs. B. Economic Justification 7.02 Owing to the diversity of the project components, no attempt has been made to estimate an Economic Rate of Return (ERR) for the project as a whole. Rather, the ERR has been estimated for those activities whose benefits are more readily quantifiable. Notably, rates of return have been calculated for two subcomponents: the Natural Okoume Stands subcomponent - 33 - and the Artificial Okoum6 Stands subcomponent. They represent about 20 percent of project costs. 7.03 The assumptions used in the calculation of the ERR and for the sensitivity analysis of selected subcomponents are given in Annex 12. The ERR for the Natural Okoume Stands subcomponent is estimated at about 18 percent and its net present value (NPV) discounted at 10 percent (the estimated opportunity cost of capital in Gabon) is CFAF 2 billion. If investment costs increase by 10 percent or benefits decrease by 10 percent, the ERR falls to 16 percent. With both adverse variations, the ERR falls to 15 percent. The ERR for the Artificial Okoume Stands subcomponent is estimated at 13 percent and the NPV discounted at 10 percent is CFAF 360 million. If investment costs increase by 10 percent or benefits decrease by 10 percent, the ERR falls to 12.4 percent. If both adverse variations are taken into account, the ERR decreases to 11.7 percent. C. Risks 7.04 The main risk of the project lies in the fragility of institutions in the sector. The restructuring of MEF and the reassigning of some of its staff to field offices, represent sensitive issues, but need to be undertaken if the competitiveness of the wood sector and the envisaged conservation objectives are to be attained. To reduce the risk, MEF would be formally restructured prior to negotiations and an acceptable field staff transfer plan would be made a condition of loan effectiveness. Also, the shortage of adequately trained staff will be minimized through improved training programs and technical assistance. 7.05 With regard to the environment, Government's capacity to follow- up on environmental issues and the willingness of private foresters to participate in forest conservation programs pose potential risks. The NEAP would clearly establish each party's role and help formulate policies to better protect the environment. 7.06 A final risk concerns the timely availability of counterpart funding which, in the past, has been consistently delayed and inadequate for the forestry and environment sectors. This risk is minimized, however, by the fact that the Government has come to realize the importance of forestry and the environment and, therefore, is committed to supporting the sector. Also, counterpart funds are being made available in a timely fashion in other Bank-financed projects (Technical Assistance, Road maintenance) in Gabon. In addition, considerable efforts were deplf,yed to involve the Planning and Finance Ministries since the early stages of project preparation, to ensure that the Government's contribution is properly provided for under the investment program. - 34 - VIII. ASSURANCES. CONDITIONS AND RECOMMENDATION 8.01 Assurances obtained during neaotiations (a) The Government would complete its fiscal study by March 31, 1993 and take measures required to implement the study's recommendations as agreed with the Bank (para 2.58); (b) Audited accounts and the audit reports would be submitted to the Bank within six months of the end of each fiscal year (para 4.17); (c) Responsibility of daily project management would be entrusted to the Project Coordination Unit located within the Mi,uistry of Waters and Forestry (para 5.02): (d) Detailed programs of operations and budgets would be submitted annually to the Bank for review and approval (para 5.04); (e) A Mid-Term Review would be undertaken by June 30, 1995; (f) The Government would open and maintain a project account in local currency and deposit into it its share of the project funding quarterly and in advance, based on annual budgets and disbursement forecasts for the next three months (para 6.05); (g) The Government would complete its National Environmental Action Plan by June 30, 1993. 8.02 Conditions of Loan Effectiveness (a) Adoption and promulgation of the environmental law (Loi Relative A la Protection et a l'Am6lioration de l'Environnement) (para 2.33); (b) Signature of two decrees defining the forest areas which may be exploited as well as the specific conditions for exploitation (para 2.33) (c) Submission to the Bank of an acceptable staffing plan resulting from MEF restructuring including a reasonable timetable for the implementation of field staff transfer (para 3.09); Sd) Signature of a Ministerial arrBt6 setting aside areas to be rehabilitated (para 3.27); (e) Opening of a project account and evidence of initial deposit of CFAF 150 million (para 4.06); (f) Establishment of the Project Coordination Unit and posting of the Project Coordinator (para 5.02). 8.03 Recommendation With the above agreements, the project would be suitable for a Bank loan of US$22.5 million equivalent to the Gabonese Republic. GABON FORESTRY AND ENVIRONMENT PROJECT IPFE) MINISTRY OF WATERS AND FORESTRY IMEFI ORGANIZATIONAL CHART CABINET TRE ~~~~~~~~~~~~~~~ERVBICSE ENT0S ETASTJE . ' | ~~~~~~~~SOCIETES SOUS TUTELLE IRCONSEIL AERO SERVICE DES ECIVSSET |ET ATTAC TES D R S E LA C ETATION R INTERNATIONACE DIRECTION CU DEVELOPPEMENT -LSERVICE CEPVENTI AL |DU PERSON:NEt | SECRETARIA EEA .ES RE E C REE ET RECHERCHE A SERVICE DE LA REGLEMENTATION Cu UET DU CONTENT1EthX SERVICECARTMO IE SRIEC ACRORPI GENERALE DIRECTION GENERALqE D G | | DIREC T I O H D EA DIREC TION S DES FORET l ES PECHES LIA FALNE PR WINCIALE 9 DIRECTION DES INVENTAIRES l IRECTION DES PECHES SERVICE DE PROTECTION |rSRIEDES FORETS | DES AHENAGEMENTS _ IMDUSTRIELLES ET D'AENEAGEMENT ET DE LA REGENERATION MARIT114ES DE LA FAUNE DES FORETS_ DIRECTION BE LA GESTIOH DIRECTION DES P E CE SERVICE DE tA SERVICE DE;ECEi|oi DE L'EXPLOITATION ARTISANALES ET |GESTION DE LCHSSE |F FORESTIERE DE L'AOUACULTURE OF 0 DIRECTION IW DEVELOPPENENT SERVICE DE PREVENTION |SERVICE DE LA FAUNE| DES INDUSTRIES ET DU COMMERCE ET OE *UTTE ANTI-_ DU BOIS BRACOWHAGE ~~~~~~~~~~~~~~~~~~SERVICE OE LA CARTOGRPI | |ET DES STATISTIQUES FORESTRY AND ENVIRONMENT PROJECT (PFEI MINISTRY OF ENVIRONMENT. TOURISM AND NATIONAL PARKS (METPNI ORGANIZATIONAL CHART CABINIET COSI NA ZIZIS RE CENTRE NATIONL AIT I-POL LUT lGN CON1ITE NAtTIONAL . ~~~~~~DE L'NEM ET DE LA BIOSPHERE IDIRECTIO GEEL lKL |DE L'ENV IRXENT U I DIRECTION DES DSERVICE I OIRECTION DES ETUDES DIRECTION ADMINISTRATIVE AFFAIRES ADMINISTRATIVES L'EWIRONNMNI DU CONTENTIEUX ET ET DE LA FORMATION ET FINAUCIERES ET DE LA PROTECTION DU DROIT DE DE LA NATURE L'ENVIRONNENENT SERVICE DES AFFAIRES SERVICE DE SERVICE DES ETUDES DIRECTION DES ETUDES ADMINISTRATIVES L'ENVIRONNENENT DE LA CARTOGRAPHIE ET DE LA LEGISLATION ET DU PERSONNEL URBAIN ET DE LA DOCUMENTATION SRIEDES AFFAIRES SRVICE DE SERVICE DU ODROl DE DELEGATIONS REGIONALES V AINISTRATIVES ET DU LSENVIRONC EENT I LENVIRONCEMENT DiE DU TISE ET DES LOISIRS 9 n WGET IINDUSTRIEL ET CONTENTIEUX ET DE MARITIME LA REGLEMENTATION 0 SERVICE DES ESPECES PROTEGEES - 37 - Annex 3 Page 1 of 2 THE GABONESE REPUBLIC FORESTRY AND ENVIRONMENT PROJECT STUDY OF FOREST FISCALITY Terms of Reference Obiectiveg This study, which has been requested by the Government, would have three objectives: 1. To recommend how the present system of forest fiscality can he rationalized and simplified. 2. To determine if the current level of forest fees and taxes in too high, causing undue strain on the logging firms, or too low, leading to wasteful logging practices and loss of potential Government revenue, or about right. 3. To arrange for a concession allocation by international competitive bidding. These three objectives will be dealt with in turn. 1. Rationalization and Simplification of Forest Fiscalitv System Confirm or modify the recommendations made during December 1991 appraisal mission. 2. Level of Forest Fees and Taxes 2.1 Direct Evidence For three logging concessions (hypothetical or - preferably - real), situated in accessibility Zones I, and II respectively, estimate the following: 2.1.1 Costs (a) Costs in connection with obtaining the concession, including the costs of prospecting, mapping and inventory. (b) Road construction, felling, crosscutting and transport to roadside. (c) Transport to port. (To simplify matters, it will be assumed that log export and not log processing is the production objective, as it generally is in Gabon.) (d) Area- and volume-based fees and taxes, including the log export tax. (e) Other relevant costs. 2.1.2 Revenues - 38 - Annex 3 Page 2 of 2 2.1.3 Rate of return Determine the rates of return p.a. in the three zones in real terms, i.e. excluding inflation, and advise on whether these rates are likely to remain attractive to the concessionaires in the long run. 2.2 Indirect Evidence Provide information on entry into and exit from the logging sector in Gabon. How many of the exits were by bankruptcy? How were the bankruptcies distributed according to Zone? 3. Concession Allocation by International Comoetitive BiddinQ The study would take place during a period of six months. The report would be written in French. - 39 - MINISTERE DES EAUX ET FORETS REPUBLI' 3ABONAISE CABINET DU MINISTRE UNION-TRAVAIL-JUSTICE LETTRE DE POLITIQUE GENERALE POUR LA FORET ET L'ENVIRONNEMENT I. INTRODUCTION Los grandes lignes de la politique du GABON dans les domaines de la Foret et de I'Environnement ont et6 d6finies dans le cadre de diverses reflexions ongag4es par le Gouvemement au niveau des doux sectours. En co qui conceme le sectsur des Eaux et Forets, cette politique est fondee sur la Loi 1/82 du 22 Juillet 1982 dite Loi d'Orientation on matiere des Eaux et Forets dont les grandes lignes sont reprises dans les differents plans de ddveloppement adoptes par le Gouvemement. Los joum0es de Reflexion sur los Eaux et Forets organisdes a Libreville on mai 1987 ont permis de mieux prdciser les grands axes de cette politique. L'objectif gen6ral vis6 par cette lo! est de promouvoir et de developper, dans un cadre global et coherent d'amenagement du territoire, une gestion rationnelle des ressources forestieres, fauniques et halieutiques afin d'accroitre la contribution du sectour au developpement economique, social, culturel et scientifique du pays. En matiere d'Environnement et sur la bass des recommandations de la Conference des Nations Unies sur I'Environnement tenue a Stockholm (Su6de) en 1972, le Gouvernement a mis au poin- une politique nationale de protection de la nature. Cette politique s'est materialiseo par Ia creation et la structuration progressive du Ministere de I'Environnoment et de Ia Protection de la Nature, chargE des missions de conception, d'elaboration et de mise en oeuvre de la politique nationale dans ce domaine. Le premier Colioque National sur l'Environnement tenu A Makokou en 1981 a eu pour tache d'approfondir la comprehension du concept onvironnomental et de prdciser les grandes orientations de la politique on matiere d'environnement, lesquelles s'articulent autour des quatre missions essentielles suivantes: - connaissance du milieu; - amenagement et conservation des ressources; - lutte contre les pollutions et nuisances; - education et formation on matibre d'onvironnement. D'une mani6re generale, la politique du GABON dans les domaines de la Forft at de l'Environnement vise A assurer uns gestion soutenue et durable qui garantisse la conservation des ressources et des EcosystAmes afin de contribuer a ameliorer le cadre et les conditions de vie des populations gabonaises. Enfin, cette politique s'inscrit dans le cadre de la politique d'ajustement et de ralance economique adoptde par le Gouvemement et dont les principes de base sont 1'0conomie de marche, la rEorientation.1 des interventions de l'Etat et la rdorganisation des services publics. - 40 - II. ETAT ACTUEL DE L'ENVIRONNEMENIT E DIAGNOSTIC DU SECTEUR DES EAUX ET FORETS 1 / - Imoortance des ressources Le Gabon regorge d'importantes ressources naturelles qu'il importe de gdrer rationnellement pour prevenir les menaces qui p6sent sur leur conservation et assurer un niveau soutenu de revenus. a) Importance ecoloaiaue Autant par la fauns quo par la flore, le GABON constitue le sanctuaire d'une diversite biologique exceptionnelle dont la richesse est l'une des plus importantes de toute la fornt tropicale africaine. La superficie du GABON est de 267.000 km2 et la foret couvre environ 85% de cette superficie. Avec uwse population estimee A 1.360.000 habitants, le GABON est ainsi au premier rang des ,.ays d'Afrique pour la surface de foret par habitant. Si l'on ajoute a ce constat que 37% de cette poputation vit dans les grandes villes, on peut affirmer quo son territoire figure parmi les rares pays du monde qui offrent encore d'enormes possibilites pour la conservation. La flore et la faune sont riches avec un taux d'endemicit6 et une diversite tris elevds. On estime g6n6ralement quo, sur le plan des especes vegitales, c'est la r6gion la plus riche d'Afrique; ce qui en fait un refuge pour plusieurs d'entre elles. On a denombr6 jusqu'A ce jour plus de 8.000 especes vdgetales sans compter les algues, lichens et bryophytes ainsi qu'une faune de plus de 150 especes de mammiferes parmi lesquels on compte 19 esp6ces de primates. La population des grands primates est estimde a 35.000 gorilles et 64.000 chimpanzes. De plus, selon les estimations, le GABON abrite la population d'6l1phants la plus importante et probablement la plus stable d'Afrique avec plus de 80.000 individus. L'avifaune est 4galement repr6sent6e avec plus de 600 espices d'oiseaux. Pris de 40% de la superficie des fornts est restie dans un dtat primaire et le taux de dEforestation est estime A environ 0,1 % par an. Par ailleurs, le GABON posside uns facade maritime longue de 800 km, un plateau continental de pr6s do 40.000km2 et des eaux riches en ressources halieutiques. Les stocks sont estimes A 250.000 tonnes de petits p6lagiques (sardinelles, anchois, chinchards), 400.000 A 500.000 tonnes de thonides durant six A huit mois par an, 65.000 tonnes d'espices ddmersales et 2.000 tonnes de crovettes. On trouve egalement des quantitis importantes de langoustes, crevettes, crabes et seiches en esaux profondes. Les ressources halieutiques des estuaires et des lagunes n'ont pas 6te entibrement inventorides. II en aSt de mime des stocks de poissons dans les eaux continentales qui constituent un important reseau hydrographique de nombreux cours d'eau et de lacs. Toutefois 10 nouvelles espices de poissons, dont 4 enddmiques, ont ete decouvertes recemment. La presence de nombreux reptiles et de la tortue Luth en particu:ier contribue 6galement A la richesse faunique du GABON. b) Imoortance 4conomiaue Sur Is plan economique, la fornt a longtemps constitue la principale richesse du pays avant d'Atr-I devancee par lo petrole au debut des anndes 1970. - 41 - Aujourd'hui, le secteur forestier occupe la deuxi6me place dans les recettes d'exportation (55 A 60 milliards de FCFA) et surtout demeure le premier employour du secteur privd avec prAs de 28% de la population active et plus de 10 milliards de FCFA de salaires distribu0s par an. Le secteur de la peche no joue pas encore un role important dans l'economie nationale et les stocks disponibles sont sous-exploites. De co fait, le GABON est oblig6 d'importer chaque ann6e plus de la moitin de ses besoins en poisson pour assurer sa securite alimentaire, ce qui represonte uns perte en devises de pros de 10 milliards de FCFA. Enfin, la forOt et les eaux maritimes et continentales constituent le support essentiol des activitds des populations vivant en milieu rural. D'abord, elaes lour apportent l'essentiol de leur nourriture grAce A l'agriculture, la chasse, Ia pAche et des produits de cueillette; puis elles leur procurent des revenus substantiels par la commercialisation des surplus de production; enfin elles fournissent les plantes mddicinales et d'autres produits necessaires A leur sant6. 2/ - Menaces sur l'environnement et les r2ssaurces Malgre la faible densit6 de la population (4 hab/km2) et le developpement mod6rd de l'agriculture, cortaines activites humaines menacent l'int6grit6 de 1'environnement. Ces menaces s'expriment sous trois formes: - les pollutions diverses des milieux urbains engendrant I'appauvrissement ou la disparition totale des ecosystemes naturels, ou encore mettant en peril la sante publique; - I'4puisement progressif de la premiere zone forestiere situde le long du littoral du fait d'une exploitation trop rdpdtitive et sans r4pit qui menace la r6gen4ration de Is foret et par 1a moms sa perennite; - l'intensification du braconnage favorisd par la demande de consommateurs urbains qui risque de faire disparaftre a moyenne echeance et de maniere definitive certaines espOces animales du GABON (par example le lamentin, I'hippopotame). 3/ - Obstacles A la aestion du secteur des Eaux et ForAts La gestion du secteur des Eaux et Forets est confrontee a un certain nombre d'obstacles qui 1'empOchent de jouer pleinement le rOle que I'Etat est en droit d'attendre de lui. En premier lieu, I'Administration des Eaux et ForOts a une connaissance insuffisanto du patrimoine qu'olle gOre ainsi que de sa repardtion sur l'ensemble du territoire, faute d'inventaires fiables des ressources forestieres, fauniques et halieutiques. De cette situation decoule une abscence de planification de sa gestion et une repartition inadequate des activitEs sur le terrain. Le volume annuel du bois produit par 1'exploitation forestiOre oscille autour de 1,5 million de m3 dont environ 80% d'okoume. Ce volume est largement en-deSa de la possibilit6 forestibre du GABON. La quasi totalitd de cotte production est exportee sous forme de grumes et une faible proportion, soit 15%, est transform6e par les industries locales alors quo le taux de transformation se situe au-dessu de 50% dans la plupart des pays forestiers africains. a es - 42 - Bien que le taux de ddboisement de la foret gabonaise reste encore faible du fait essentiellement d'une pression limitde de la population agricole et d'une exploitation sdloctive de la foret, I'Administration des Eaux et ForOts a entrepris depuls 1953 des opdrations de reboisement pour faire face A l'epuisement progressif des forkts naturelles et notamment de la premi6re zone. Plus de 30.000 ha de plantations artificielles ont ainsi dtd .rdalis6es de fa;on soutenue jusqu'en 1975. A partir de cette date, les opdrations ont enregistrd un net ralentissement puis un arrOt dOs essentiellement A la diminution des moyens financiers allouds et aux coOts de plus en plus dlevds de leur rdalisation. Enfin, sur le plan des investissements lids au sectour des Eaux et ForOts, on note uno trbs faible participation des nationaux dans l'exploitation forestiAre, l'industrie du bois et les activites de pOche. Par ailleurs, les services de terrain chargds de la gestion du domaine forestier, de la faune sauvage et des ressources halieutiques manquent de structures d'accueil et de moyens d'intervention. Ill. LES GRANDES LIGNES DE LA POLITIUE -DU GABON DANS LE SECTEUR FORET/ENVIRONNEMENT 1/ - Les orands axes de cette rolitiaue L'objectif fondamental de la politique du GABON dans le sectour ForOt/Environnement est l'amdlioration du cadre de vie des populations et l'utilisation raisonnde des ressources naturelles afin quo celles-ci contribuent A la rdalisation d'un ddveloppement economique durable. Pour atteindre cet objectif, le Gouvernement Gabonais a mis en oeuvre un stratdgie globale dont les grands axes sont: - la protection et l'amdlioration de l'environnement; - la conservation et la gestion rationnelle des ressources; - la mise en valeur economique de celles-ci. a) La orotection et l'amdlioration de l'environnement La politique en matifre de protection at d'amdlioration de 1'environnoment se ddfinit comme une politique de protection et de lutte contre les pollutions et les ddgradations de toutes sortes. Pour accroTtre l'efficacitd de la lutte contre ces dernieres, le Gouvemement s'attache a intigrer dans sa stratdgie le concept de l'impact environnemental. C'est ainsi que l'evaluation de l'impact sur 1'environnoment a Mtd institude comme mesure obligatoire dans la procddure de rdalisation sur le territoire national de tout projet a caractere industriel.. b) La conservation et la oestion rationnelle des ressoujrU Les principaux axes d'activitds autour desquels s'articule la politique de conservation et de gestion rationnelle des ressources sont notamment: - I'etude et la recherche en vue d'accrottre leas connaissances scientifiques et le5% capacites biotechnologiques propres A assurer l'amdlioration des ressources; - 43 - - la gestion rationnelle des ressources s'appuyant sur lour amdnagement et se traduisant par une intervention directe des services publics dans leo opdratTons d'inventaire, de reboisement, d'agroforesterle, d'assistance A la rdg6n0ration naturelle, ainsi que par une redefinition des conditions d'acces aux ressources et un ronforcement du contrOle des activit0s des secteurs concernes; - la constitution d'un r6seau d'aires prot6g6es bas6 sur des sites critiques reconnus comme importants pour la conservation des 6cosystAmes. c) La mise en valeur economiaue des reLsources natursllas Du fait quo les ressources naturelles sont la base mat0rielle sur laquelle repose lo developpement d'un pays, la mise on valeur economique de ces dernieres a toujours constitu0 un aspect essential de la politique du GABON dans le domaine de l'utilisation et de la gestion du patrimoine naturel national. Sur cette base et prenant pleinement en compte les contraintes li6es A l'environnement et A l'6cologie, le Gouvernement entend poursuivre et diversifier l'exploitation de ses ressources naturelles notamment: - on d0veloppan. la filire bois (bois d'oeuvre et bois d'energie) et on orientant la production vers une diversification et une transformation locale toujours plus importante et plus Alaborde bas0o sur une exploitation durable de la forat; - en organisant les activites de pAche afin de leur assurer un d0veloppement optimal bas0 sur le potentiel de capture biologiquement tolerable; - on developpant la filibre touristique par la mise en valour des potentialites naturelles et exceptionnelles disponibles dans ce secteur. 2/ - Los outils La r0alisation des objectifs d4finis ci-dessus ndcessite la mise en oeuvre de moyens r6glementaires, financiers et humains trAs importants. Elle requiert dgalement la participation active A tous les niveaux de l'ensemble des citoyens et des operateurs economiques tout en pronant appui sur des institutions nationales efficaces et une cooperation internationale soutenue. a) L0oislation ot fiscalit4 Un certain nombre de d0crets d'application de la Loi 1/82 fixant la r6glementation forestiere ont deja 6t6 pris et d'autres sont en cours d'adoption. En ce qui concerne le secteur de l'environnement, le Gouvemement a mis au point avec le concours du Programme des Natioa3 Unies pour l'Environnement (P.N.U.E.) un projet de loi relatif A la protection et A I'amelioration de 1'environnement qui vise A cr0er un cadre coh6rent et efficace de gestion de l'environnement. Le projet est en cours de discussion A l'A3sembl4e Nationale. Sur le plan de la fiscalite, le systAme de taxation dans Is secteur des Eaux et Forets est relativement complexe. A cot effet, une 4tude sera realisde dans le cadre du projet Forkts et Environnement en vue notamment de rationaliser et de simplifier le r6gime fiscal en vigusur. Le nouveau rigime devra int4grsr notamment des incitations A la protection de la nature par les opdrateurs dconomiques, les preoccupations de financement de la revalorisation sur place des ressources forestidres et desl op6rations d'am6nagement durable. - 44 - En matiere de nuisances et de pollution environnomentales, Is Gouvernement se propose d'etudier et de mettre en place des mdcanismes adequats de prdvention, d'indemnisation et de restauration. b) Commercialisation La politique de commercialisation vise les objectifs suivants: - prot6ger durablement 1'exploitation et la r6gen4ration de la forOt gabonaise; - d6velopper une industrie compdtitive de transformation du bois; - maintenir un niveau satisfaisant des prix a I'exportation de l'okoume et l'ozigo; - renforcer la participation effective des gabonais, notamment des zones rurales A I'activit6 du secteur forestier. A cette fin, le maintien A moyen terme du monopole sur le commerce de l'okoum4 et de l'ozigo a ete confirmn par is Gouvernement. En outre, des mesures complementaires ont et6 prises notamment concernant la restructuration de la Soci6te Nationale des Bois du Gabon (SNBG) et la mise on place d'un comite interministeriel charg6 de veiller A l'application stricte des mesures du redressement financier et commercial de cette societe. c) Education et information L'dducation et l'information visent a etablir les meilleurs rapports possibles, d'une part, entre i'homme et son environnement naturel et, d'autre part, entre les administrations charg4es de la gestion des ressources naturelles et l'ensemble des citoyens. Pour cola, il conviendra d'introduira et de renforcer l'snseignsment en matiere d'environnement dans les programmes scolaires. De mOme, des programmqs specifiques de sensibilisation seront congus pour toucher les populations concermes. d) Formation La formation des ressources humaines on quantite et de qualit6 satisfaisantes cons.itue une condition essentielle pour la reussite de la politique en matiOre de ForOt/Environnement. 11 convient donc d'assurer la formation ot le recyclage des agents chargds de la gestion des ressources naturelles. e) Particioation des nationaux La participation des nationaux consisto d'abord A leur assurer une place dans les activit6s d'exploitation des ressources naturelles. Elle vise igalement A les associer aux activites de protection et de conservation des ecosystemes. Los populations rurales cnt notamment un rOle primordial A jouer dans I'dlaboration et la miss en oeuvre de tout projet lid au secteur. f) Institutions nationales 11 imports de restructurer et de renforcer le cadre institutionnel de fonctionnement des Administrations chargeos de la gestion du secteur ForOt/Environnement afin d'assurer une meilloure animation et coordination de l'Administration centrals. De meme, cette restructuration doit viser une plus grande responsabilite des services de terrain afin de rapprocher l'Administration des opdrateurs dconomiqueg 1 et des populations. - 45 - Par aillours, le caractere multidisciplinaire des problemes relatifs au secteur ForettEnvironnement requiert l'adhesion et la participation de tous les autres secteurs concernes. A ce titre, une structure de coordination interministerielle devra assurer en permanence la concertation intersectorielle indispensable A la mise en oeuvre d'une politique coherente dans le secteur. g) Cooo4ratioL internationals La mise en oeuvre des programmes de d4veloppement du sectsur Forat/Environnement n6cossite bien entendu d'importants moyens financiers A des conditions approprifies. En dehors des ressources qu'il consacre au sectsur, le GABON a besoin de la cooperation Internationale, qu'elle soit bilaterale ou multilaterale, pour financer los differents projets de developpement. ris mOme, compto tenu de la dimension et de la complexite des problemes lies au secteur, il importe qu'une coop6ration scientifique soit d6veloppde avoc les pays amis, les organisations internationales et les ONG pour appuyer les actions initibes par le Gouvernement et l'aider a developper ses propres capacit6s techniques de gestion. IV. LE PROJET FORETS ET ENVIRONNEMENT 11 apparatt donc que le GABON regorge d'importantes ressources naturellEs et quo sa flore et sa faune figurent parmi les plus riches au monde avec un taux d'endAmicit6 et une diversit6 tres dIeves. De mOme, ses eaux maritimes et continentales recelent d'immenses ressources biologiques. Le diagnostic dtabli ci-dessus a mis en evidence les potentialites offortes par les ressources du secteur ForOt/Environnement ainsi quo les contraintes auxquelles iI faut fairs face pour quo co secteur Joue pleinement le rOle quo l'Etat est on droit d'en attendre pour assurer le developpemant du pays. Le projet Forets et Environnement dont l'laboration et la mise en oeuvre ont ete decidees par Is GABON avec l'appui de la Banque Mondiale vise A appuyer les objectifs A long terms fixes au secteur Foret/ Environnement par le Gouvernement. 11 s'agit: - d'assurer une meilleure utilisation des ressources foresti6res par des travaux d'amdnagement et de recherche dans la premiOre zone qui est surexploitee, travaux qui porteraient sur les pouplements naturels et les plantations d'okoumd existantes; - de retablir l'autorite de l'Etat en matiere de controle de 1'exploitation forestiere et de protection de l'environnement, par la restructuration et Is ronforcoment des moyens du Ministere des Eaux et ForOts et du Ministere de l'Environnement, du Tourisme et des Parcs Nationaux; - de renforcer et reorienter les programmes de l'Ecole Nationale des Eaux et Forks (ENEF) vers une formation plus pratique d'agents de brigades et d'inspectours repondant mieux au besoins du secteur privd et aux exigences de conservation. - 46 - - de realisor et mettre en oeuvre Is Plan National d'Action Environnemental (PNAE); et - d'appuyer l'action gouvemementale dans Ia protection des rEserves existantes et la cr0ation des parcs nationaux, Il o ils so justifient. Libreville, le ler juin 1992 Le Ministre des Eaux t Fets Eugine CAPI - 47 - Annex 5 Page 1 of 6 THE GABONESE REPUBLIC FORESTRY AND ENVIRONMENT PROJECT ENVIRONMENT IMPACT ASSESSMENT Executive Summary Introduction 1. Gabon is covered with vast areas of tropical forest, and this, coupled with its low human population and one of the highest standards of living in Africa, makes it one of the few countries in the world that still offer exceptional potential for conservation. Forestry has traditionally played a very important role in the Gabonese economy, although its importance diminished under the oil boom. Forest products still represents 12% of export value (1987), second only to oil. Total closed forest cover is estimated at 20.5 million ha, of which approximately 12 million are considered to be valuable commercial stands. Gabon also possesses significant petroleum, natural gas, and hydro-electric resources. 2. The biodiversity represented by the country's ecosystems is among the highest in Africa. Gabon is found entirely within the Guinea- Congolian regional centre of endemism. The rich forests of Gabon is an important sanctuary for primates (19 species), about 20 carnivorous species and more than 600 bird species. A number of waterways, lakes and a long coastline contain relatively rich freshwater and marine life systems. 3. The most recent botanical studies confirm that Gabon's rich flora is more varied-than that of West Africa and the Zaire Basin. In a recent floral study of 17 botanical families represented in central and West Africa, Gabon had 888 species in 236 genera on 230,000 sq. km., compared to 885 species in 225 genera on 600,000 sq. km. in West Africa. It is estimated that Gabon has about 8000 higher plant species of which about 20% are endemic to the country. 4. Gabon has a small rural population of less than one person per square kilometer causing only minimal impact of slash and burn agricultural prar'ices. Environmental damage is localized and limited to areas surrounding urban centers and main roads. Deforestation rates are very low (about 1I Der annumi and of all the African countries. Gabon is exnected to lose the smallest 2ortion of its forest area during the next 50 years. 5. Logging activities are however causing environmental concerns, particular in the depleted forest area of the First Zone nearest to the coastline and urban centers. Extensive logging in this zone, coupled with intensive and illegal commercial game hunting, has led the Government to initiate measures to protect the rich and diverse forest and wildlife rasources, although implementation is still weak. 6. Responsibility for forestry and conservation in Gabon rests with two ministries, the Ministry of Water and Forestry has primary responsibility for forestry activities, logging concessions etc., while the Ministry of Environment, Tourism and National Parke is responsible for conservation activities and protected areas. - 48 - Annex 5 Page 2 of 6 Prolect Descriotion 7. The Gabon Forestry and Environment Project has as its main objective to contribute to better and sustainable use of forestry and wildlife resources in the country; to reinforce the strategic planning and operational capacity of government institutions; to improve forestry research and training opportunities; and to support the creation of wildlife reserves and a national environmental action plan. 8. To meet the above objectives, the project includes the following components: - Inventory and rehabilitation of Okoume forest plantations. This will include the rehabilitation and protection of 5-6000 ha of deteriorated plantations and 40,000 ha of secondary Okoume natural regrowth forests. - Forestry and environmental research, including the rehabilitation of 1000 ha of existing research plots, and the testing of various agro-forestry techniques in collaboration with the local population. - Forestry and environmental training and retraining at professional level, including the promotion of training programs tailored to the needs of the private sector. - Institutional strengthening of the Ministry of Waters and Forestry and the Ministry of Environment, Tourism and National Parks, with the specific aim of assisting these ministries to better supervise and control logging concessions and operations, to prevent poaching and other negative environmental impacts. = Environmental studies that would include the elaboration of a national environmental action plan, faunal and floristic surveys, preparation of national enviranmental status reports, and feasibility studies for the establishment of 15 priority ecological protected areas. - Creation, implementation and maintenance of the Gamba protected area complex with important adjacent areas (Moukalaba, Sette Cama). 9. The project will be implemented by the Government of Gabon through the Ministry of Waters and Forestry as loan agreement coordinator, but with the Directorate General of Forestry responsible tor the forest inventories and plantation rehabilitation components, the National School of Waters and Forestry responsible for training, and the Institute of Forestry and Agronomy Research responsible for forestry, agro-forestry and environmental research. 10. The creation and management of reserves and national parks would be undertaken by the Directorate for Game and Wildlife with the support of the World Wildlife Fund field personnel in concert with the Directorate of Environment. This Directorate will also have the main responsibility for the environmental action plan and biological surveys. The monitoring of the environmental impact assessment will be done by the inter-ministerial environmental working group established as a result of the impact assessment (Noyau Permanent de Travail). - 49 - Annex 5 Page 3 of 6 11. The oroiect comoonents will not include supoort to any forest operations in primarv tropical forest areas. Any forestry activity envisaged within the project frame will be in secondary forest areas that have been subjected to 3 to 5 previous logging operations, mostly for okoume harvesting. 12. The oroiect will not lead to any resettlement of people. Where people and forest interact, agro-forestry activities under the research component will seek to enhance the economic and environmental sustainable production potential of the land for the benefit of the local population. Proiect Area 13. Management, plantations and research areas included in the project are mainly spread out in the Estuaire Province in which the capital city of Libreville is located. Some plantations and agro-forestry sites are also located in adjacent areas of the Moyen Ogooue Province. The main conservation areas (the Gamba complex) is located on and near the coast south of Port Gentil in the Ogooue Maritime Province (see attached map). 14. The project region is located in the equatorial zone receiving 2500 - 3500 millimeter of rainfall annually, and with an average annual temperature of 26 centigrades and more than 85% relative humidity. The project area locations are all within the rainforest zone. Probable Proiect ImDacts 15. Limited attention has been paid to conservation of natural resources within Gabon, either by the government or international organizations. However, the low population pressure and the resulting lack of rapid and uncontrolled rural development has resulted in the country being relatively untouched by the environmental problems that have affected other developing countries. The Gabonese government has nevertheless begun to realize that development must take the country's natural heritage into account and has begun to make investments in conservation, this project being a major added effort in this direction. 16. The Environmental Impact Assessment concentrated its attention on the secondary forest management component, and the plantation rehabilitation component. The other components were not considered likely to have any negative environmental impacts. 17. Likewise, the Assessment's main conclusion is that neither the secondazly forest management component, nor the plantation rehabilitation component are likely to have any major negative environmental impacts. 18. T.ie study has therefore concentrated its attention on the possibility of some negative impacts that could occur as secondary effects because of the different activities that will have to be performed in order to realize the project. 19. The forests affected by the project activities are all deteriorated secondary forests, exploited 4-5 times over for Okoume and other valuable tree species for export, and the population which used to live in these areas has migrated to the urban areas. As an example, the village of Foulenzem on the south side of the estuary across from Libreville once was home for a thriving population of 1500-2000 inhabitants dependent on a forest industry that left the area in the early nineteen seventies. Today there is only a dozen people left in this ghost town and the forest is returning. - 50 - Annex 5 Page 4 of 6 20. The Assessment has divided the likely impacts in two categories: (a) project induced impacts; and (2) broader impacts. The first group lists the following: - Impacts caused by infrastructure improvements. This would include an increased human accident risk due to increased vehicular use and speed. - Health and sanitation impacts caused by the establishment of workers camps and temporary settlements. - Possible damage caused by the use of heavy machinery in forest operations. - Possible secondary impacts caused by an inadequate community infrastructure in the villages that would have some relationship with the project (lack of dispensaries, schools, etc.). The second group lists two long term impacts: - Wildlife poaching. Illegal but widespread hunting for game meat (bush meat) is a serious threat to wildlife whenever there is adequate human access. The bush meat hunters supply a high price market in all the major towns and trading centers. Increased access provided by the project will increase poaching unless strict control measures are put in place. The possibility of localized overuse of soils for cultivation. Much of the soil in the project region is leached and of poor nutritional quality. The absence of proper soil conservation techniques applied in agricultural production in areas of project concentration could lead to increased soil erosion and sedimentation. Recommended Mitiaation Measures 21. Most of the expected impacts can be mitigated with simple cautionary measures during the detailed project planning and design phase. Particular recommendations include the following: - The wildlife poaching activities should be better controlled through a regular access road control system of vehicles leaving the forests. other specific measures will depend partly on the outcome of the ongoing WWF study on the bushmeat trade and markets in Gabon. - As a broader counterweight measure to the negative impacts that may happen to wildlife and the flora as a result of economic development activities anticipated in the project, it is essential to secure the creation and implementation of the Gamba conservation reserves complex. This would include the implementation of the Petit Loango National Park and adjacent wildlife reserves including the Moukalaba reserve. New boundaries responding to present realities and biodiversity considerations should be agreed upon for the complex, and a comprehensive master management plan prepared. This work should be done in close collaboration with WWF. - 51 - Annex 5 Page 5 of 6 - Agroforestry research and experimentation should be strengthened to make the local population less dependent upon wildlife poaching. In addition, an agricultural improvement program should be included for villagers and agriculturists in the project area that would include farmers not directly engaged in the project's agro-forestry component. - All project induced activities, including improvement of infrastructure, establishment of workers camps, the use of heavy machinery etc. have to follow written and acceptable standards as to permissible environmental impacts, and mitigation measures must be implemented. These measures may include reseeding and replanting, terracing of cut slopes, use of wide rubber tires on heavy machinery, proper drainage facilities, human waste disposals etc. as the situation may warrant. - A data-bank should be established for the project, incorporating forestry, biodiversity and sociological data for the entire project area. The data assembled would include both background literature, baseline data as well as long term monitoring data, and include economic as well as experimental forestry research reot"-s. - Surveys of the fauna and floral composition should be done in the project area, as well as of the local inhabitants and villages that relates to the project. = An environmental education and extension program should be implemented in the wider project area. This should particularly have the objective of making the local people better aware of the importance of sound and sustainable natural resource management for their own long term benefits. - The human population living in villages within the project area represents mostly migrant worker families from other regions of Gabon. Their social cohesiveness is very weak, and the communal facilities and village infrastructures are of low standard. The project should include actions destined to improve basic village infrastructure situation. Monitoring 22. Regular periodic monitoring should be done as a follow-up to the recommendations in the Environmental Impact Assessment. This should take the form of regular field visits to forest operations sites, and an inventory of changes in faunal, floral, and soil composition at regular intervals after forest operations has halted. An environmental status report should be prepared every five years for the project region. Interaoencv Coordination and Public Particination 23. The established Noyau Permanent de Travail (NPT) is a permanent coordinating body for interministerial and NGO coordination and project implementation monitoring. The NPT consists of personnel from the Ministry of Water and Forests, and the Ministry of Environment, Tourism and National Parks. It also includes persons from NGOO (CENA, FEG, IADR) and research institutions etc. when dealing with relevant topics. 24. Several interministerial meetings have already been carried out by the NPT during the EA preparation an appraisal. These meetings will be organized on a regular basis throughout project implementation. - 52 - Annex 5 Page 6 of 6 25. The local population in the project area was consulted through several on-site interview sessions organized by the EA team sociologist. Apart for NGOs participating in several technical meetings, NGOe, universities and the public were also invited to one special hearing session during the EA process, and one at the end. Broad participation in these public meetings was secured through individual invitations, through announcements in the press, and through the local radio. All of these meetings are duly recorded. _ 53 - Annex S Page 1 of 2 THE GABONESE REPUBLIC FORESTRY AND ENVIRONMENT PROJECT RESIDENT TECHNICAL ASSISTANCE - SUMMARY TERMS OF REFERENCE 1. Forest Manaaement Specialist, 5 years as of PYl, based in Libreville in the Ministry of Waters and Forestry (MEF). Responsibilities: He/she would assist the project coordinator in the analysis of policy issues and the planning of activities under the project. He/she would assist in the management and coordination of the various studies to be undertaken under the project. He/she would participate in the organizational assessment of the project components and their development impact. He/she would also oversee day to day project financial management. Finally he/she would be assisting in the preparation of the project's Mid- Term evaluation. He/she would also give specific emphasis to the training of counterparts. Oualifications: Forest Management Specialist or Resource Economist with knowledge of environmental issues. A minimum of 12 years experience, of which at least six in Africa would be required for this assignment. French language is essential. 2. Forest Inventory Specialist, 3 years as of PY1, based in Libreville, with frequent trips in the field, at DGF. Responsibilities; He/she would assist: (a) in all technical operations relating to the preparation of inventories, the start-up of sylvicultural operation, and the forest management activities; and (b) assist in elaborating monitoring guideline for assessing the environmental impact of field activities. Oualifications: Forest Engineer/Inventory Specialist with at least 10 years experience of which at least 5 in Africa. French is essential. 3. Forest Training and Manaaement Soecialist, 3 years as of PYl based in Cap. Esterias (Libreville) at the National School for Forestry Training (ENEF). Responsibilities: He/she would head the Management Department at ENEF, would assist in planning and organizing all Forest Management Training activities at ENEF. He/she would be expected to teach a given number of hours per week and initiate training program in the context of the management plan for the Mondah Forest. 54 - Annex 6 Page 2 of 2 guallfications: Forest Management Specialist/Trainer with experience in Tropical Forestry and training in Forest Schools. 10 years experience with at least 5 years in Africa. French is essential. 4. Forest Enoineer, 5 years as of PYI based in Libreville at DGF. ResRonsibilities: He/she would be responsible for assisting the Directorate of Forestry in the design and implementation of work programs. He/she would work in close liaison with the Forest Inventory Specialist on the implementation of Inventory and Forest management activities. Oualifications: Forest Engineer with experience in management and sylvicultural operations. A minimum of 12 years experience of which at least 6 in Africa would be required for this assignment. French language is essential. 5. Environmental Specialist, 5 years as of PY1 based in Libreville in support of DFC and DGE. Resoonsibilities: He/she would be responsible for coordinating actions for the creation of reserves and would assist in the implementation of the various environmental studies and surveys. He/she would establish close liaison with WWF field staff. oualifications: Environmental specialist with sound knowledge of reserves and national parks. At least 12 years experience of which at least 5 in Africa. French language is essential. - 55 - Annex 7 Page 1 of 2 THE GABONESE REPUBLIC PROJET FORETZENVIRONNEMENT MODULES DE FORMATION ENVIRONNEMENTALE PROPOSES A L'ENEF 1. EROSION Eolienne, pluviale. Cause, occurrence au Gabon. Intensit6 en fonction du type de sol, de la v6g6tation, de la topographie, de la pluviom6trie. Comment cette intensit6 peut Otre accrue par de mauvaises pratiques en matiere de g6nie civil, en particulier dans le domaine routier. Pr6paration des terres agricolee, exploitation forestiare. Comment minimiser l'6rosion, en particulier par des methodes v6g6tatives. 2. FERTILITE DES SOLS Lee arbree en tant que pompes a nutriments, par exemple dans lee jach6res foresti6re. La d6forestation entratne une volatilisation de l'azote et le lessivage dautres 416ments. L'agroforesterie comme moyen d'entretenir la fertilit6 des solo. 3. CONSERVATION DE L'EAU Lea forAts consomment plus d'eau que la v6g6tation contenant moins de biomasse, par exemple les pAturages. Cependant les arbres r6duisent lea crues, en particulier en am6liorant la r6tention de l'eau (la for&t comme chateau d'eau). La d6forestation a large 6chelle (en Afrique en particulier et en Amazonie), peuvent avoih un effet global sur le climat, en particulier en r6duisant la pluviom6trie. 4. EFFET SUR LES EMISSIONS DE C02 Les forets stockent le C02. La d6forestation, suivie d'une combustion ou d'une decomposition du bois, relfche le C02 dans l'atmosphere. Effet de serre. S. GESTION DE LA BIODIVERSITE Richesse de la faune et de la flore au Gabon. Int6rat international pour cette biodiversit6. Eco-tourisme. Legislation environnementale gabonaise et internationale. D6eimitation des aires prot6goes. Gestion dea parcs et r6serves. 6. MANGROVES Repartition dans le pays. Importance pour la p&che, la pr6vention de l'6rosion c8t1&re. 7. PRODUITS SECONDAIRES DE LA FORET Miel, plantes m6dicinalee, fruits comestibles, fourrage, petit bois. Utilisations possibles, valorisation 6conomique. 8. ENVIRONNEMENT COMME SYSTEMES Les 6l4ments constitutife d'un ecosystemes biotope et bioc6nose (anatomie). Les flux (matiAre, 6nergie) dane un 6cooyst&me (physiologie). Tole de i'activit6 humaine. Maximisation de la valorisation de 1'4nergie primaire (solaire) renouvelable. Applications pratiques. - 56 - Annex 7 Page 2 of 2 9. LES INTERFACES FORET-AUTRES UTILISATIONS DES SOLS R81e 6cologique des lisiares (en particulier habitat pour la fauna). Transfert des matiAres (fertilisation foreatiera par les animaux de pSturage, utilisation des branches et feuillos comme source de matiare organique). La protection locale des for6ts contre 16rosion et l'ensablement des terres basses. vinsu Anss vmmum muany amrIt Acmaxt projet Cqianmn ADUI A SIhECllQ DlfECTI10 11 fdSE" 11"A In Canto e. I LA I EVIU I I 1 SMfE ftARTM7ATI NA. .. CESTUO S faETS 9 CUUSE EM (1EKIE) RESEA STADS S A CANA T otl I lanat X ....................5.auuuuama3uu *u aa m uu ssai...nii A. EWPIUNTI 5.3 411.4 224.4 9.5 167.9 S9.0 10.6 0.6 37.0 16.8 11.7 5.6 So.7 14.9 150.9 B. GEIE CtIVL 6.0 5a 1 0.0 0.0 43.S 0.0 47.2 10.0 12.0 43.0 742.4 6.6 50.1 11.6 U6. C. wEuIaaS 7a.0 ZC.0 231. 94.0 49.0 n7.0 111.0 39.6 4.3 69.0 1397.7 6.7 121.5 31.6 442.3 O; Epwths LI 225.0 225.0 0.0 0.0 135.0 0.0 0.0 0.0 225.0 0.0 8O0.0 7.2 56.S 38.5 311.6 2. Ceathn do l.n-alasr 0.0 1U.4 0.0 0.0 42.6 0.0 647.6 553.1 0.0 0.0 1427.9 0.3 4.3 11.2 uo.S 3. gEpwrtlam CT 127.7 22.S 117.2 67.S 70.5 216.0 0.0 0.0 3.S 42.0 676.9 S.6 39.2 30.7 201.6 ~~~~~~~~~W. .............................. ...................................................................................................... .................. Srtetel IS2.; 4}1.9~~~~ ~ l1t. r.s a.3 216.0 Ur.6 SSM. 23O.S 42-0 M4.8 3.S 102.0 25.3 079.S i C. 101A86to IS.0 62.5 n5.0 140.0 S9.9 37.0 0.0 0.0 16.0 0.0 407.4 9.6 39.1 20.9 317.9 1. of UA 3 .0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 63.4 0.0 o.e 0.0 0.0 .................................................................. ..................................................................................................................................,,,,,,,,,,,,,,,,,,, ,. Total SI M DSS 434.4 2155.5 UO.1 321.0 5.1 339.0 6O.S .7 151.6 1.6 6559.5 S.7 31.s 22.5 1476.9 ' it. - UPS A. FUilLe. EMIETIEnS 1.0 16S.0 35.0 35.0 S.S 36.3 21.5 0.0 3.0 7.S 404.7 10.0 U.S 2t.0 U.9 D. fmc. wmaUaES 35.0 21.6 50.2 39.0 0.0 42.5 164.0 20.0 20.0 71.S 72.6 7.6 5S.2 17.5 127.2 C SALAIMS 0.0 0.0 0.0 0.0 0.0 87.3 0.0 0.0 15.0 51.5 153.6 10.0 1S.4 11.3 17.3 0c fUlS OE 6I155 21.0 U10.7 1S.1 1.0 4.7 33.0 0.0 0.0 0.0 0.0 200.S 2.M S.4 10.4 20.9 E. OhEUS 0.0 0.0 233.2 q.0 0.0 0.0 0.0 0.0 0.0 0.0 23.2 8.0 2S.0 15.3 43.4 ......... ................................................ .............................................. Totalt *ECUu C01 #2.0 549.3 391.5 92.0 40.1 199.0 186.3 20.0 S.0 130.5 170.6 0.0 141.5 16.6 23.7 Total 6ASLIE MS 616.4 2104.9 1039.6 413.0 626.9 561.0 1002.7 S 3.7 409.6 301.3 32.3 6.2 512.9 21.3 171.6 fphyscal cmuhaiuicle 16.0 137.3 93.9 32.7 60.6 56.6 35.S 7.1 41.0 30.1 512.9 fri eCust1q.IaI 162.4 431.5 21.0 117.4 16.9 15S.S 191.9 12.s 137.2 4S 177.6 7.4 3I0.S ....;Y............................................................................................................................................ total ""ECT cts 05.7 3273.6 144.S S63.2 85. 116.1 1230.1 703.2 S5.0 39S.9 10611.9 6.1 "43S 16. IM .6 _.niia.m.mf....__.......... .. . .......... _... . _ .............a..u.m ...e.n ....a.. _..s.f.....a....s..a...w... ... 5 1AM 29.1 182.1 106.S 33.2 3.S 3.6 33.9 I3.6 10.2 10.1 410.0 9.1 43.5 P oewsl Ita q 579.3 204.0 019.0 3SS.2 6S.6 485.7 477.8 76.6 419.1 203.4 6162.7 6.0 416.8 0Q Valua S.Ualed-y- 1000000.0 312711M.9 14a00 .. x 0 GAO FORESTRY AND EWIRONMENT PROJECT Projects Coaponhnts by Year Totats Including Contirgencies Totals Including ContingencJes CFAF Ust 1992 1993 1994 1995 1996 Total 1992 1993 1994 1995 1996 Total -- -- --- - ---- -=_=#__ C A. INSTITUTIONAL STRENGTHEN. 1. APPUI A LA GESTION 255.8 115.5 117.3 182.0 126.1 796.7 0.9 0.4 0.4 0.7 0.5 2.9 2. DIRECTION EAU11 & fORETS 1373.4 865.7 283.7 U49.5 281.3 3273.6 4.9 3.2 1.0 1.6 1.0 11.8 3. DiRECTION fAINIE & CHASSE 527.8 191.2 179.7 336.1 169.6 1404.5 1.9 0.7 0.6 1.2 0.6 5.1 4. DIRECTION ENVIRONNENIT 159.0 76.7 86.3 155.7 85.S S63.2 0.6 0.3 0.3 0.6 0.3 2.0 . . ........... ... ...................... W .............................. . . .............................................................................._ _ SbTotal 2316.1 1269.0 667.0 1123.3 62.6 6038.0 8.3 4.6 2.4 4.0 2.4 21.7 0. FOREST TRAINING E11 EF) 433.5 195.0 137.6 57.6 34.9 858.6 1.6 0.7 0.5 0.2 0.1 3.1 C. FORESTRY RESEARCH 275.2 169.9 102.3 153.3 97.4 M.1 1.a 0.6 0.4 0.6 0.4 2.9 D. fOREST REUA8ILITATION 1. NATURAL OKOU STANDS m.6 261.4 304.0 202.4 169.7 1230.1 1.1 0.9 1.1 0.7 0.6 4.4 2. PLNTATIONS 126.2 223.0 134.3 118.8 101.0 703.2 0.5 0.8 0.5 0.4 0.4 2.5 _........................ ,.... ............._..,.. _..... ....,,............................... 6ub-Total 418.8 484.4 438.3 321.2 270.7 1933.3 I.S 1.7 1.6 1.2 1.0 7.0 E. RESERVES 1. NMIALABA 181.6 91.4 90.4 135.S 89.0 588.0 0.7 0.3 0.3 0.5 0.3 2.1 2. SETTE CAM 202.9 48.4 39.8 S0.5 54.3 395.9 0.7 0.2 0.1 0.2 0.2 1.4 Sub-Total 384.S 139.8 130.2 186.1 143.3 983.9 1.4 0.5 O.S 0.7 0.5 3.5 Total PROJECTS COSTS 32.1 2258.2 1475.4 1841.4 1208.9 10611.9 13.8 8.1 5.3 6.6 4.3 38.2 1 .... ....... ................................................................................................... .................................................... ---------------------......... ------------------------ Values Scaled by 1000000.0 3f2611992 18:56 00 tD X 0 bibo w GABON FORESTRY AND EUVIROUNEWT PROJECT Sumry Accounts by Year lotats Includino Cantingm les Totals Including Contingencles CFAF US$ 1992 1993 1994 1995 1996 Total 1992 1993 1994 1995 1996 Total 1. INVESTNENT COSTS .................... A. E0IPENT 595.1 463.6 47.5 64.6 32.6 1223.4 2.1 1.7 0.2 0.3 0.1 4.4 S. GENIE CIVIL 629.2 227.9 12.1 9.2 0.0 878.5 2.3 0.6 0.0 0.0 0.0 3.2 C. VENICUIES 999.0 107.8 139.1 630.3 85.5 1961.5 3.6 0.4 0.5 2.3 0.3 7.1 D. ASSISTIACE IECUNWE 1. EXPswtfses LT 245.8 254.9 264.3 203.8 211.3 1180.1 0.9 0.9 1.0 0.7 0.8 4.2 2. Sestlon des Invtentires 393.0 417.5 337.8 242.0 202.4 1592.7 1.4 1.5 1.2 0.9 0.r . 5.7 3. Expurties CT 328.5 210.4 134.8 122.8 127.3 923.8 1.2 0.8 0.5 0,4 0.5 3.3 ;i............................................... .... ................................................................................................ SUb-Total 967.2 882.8 73t.9 568.6 541.1 3696.6 3.5 3.2 2.7 2.0 1.9 13.3 E. FONATION 101.9 124.6 129.2 112.3 96.4 564.4 0.4 0.4 0.5 0.4 0.3 2.0 F. PPF 83.4 0.0 0.0 0.0 0.0 83.4 0.3 0.0 0.0 0.0 0.0 0.3 Total INVESTNENT COSTS 331.9 1806.7 1064.7 1405.0 755.6 8407.9 12.1 6.5 3.8 5.1 2.7 30.2 It. RECURRENT COSTS ................... A. FOEC. ENTRETIENS 92.2 105.5 106.8 110.7 114.8 530.1 0.3 0.4 0.4 0.4 0.4 1.9 t S. FOC. VERICULES 230.7 201.0 146.0 162.6 168.6 908.9 0.8 0.7 0.5 0.6 0.6 3.3 '0 C. SALARIES 28.5 32.0 39.4 41.9 4.1 186.5 0.1 0.1 0.1 0.2 0.2 0.7 D. PRAIS DE NISSI1 32.6 44.6 48.1 49.8 51.7 226.8 0.1 0.2 0.2 0.2 0.2 0.8 E. DIVERS 68.3 67.6 70.4 7.3 74.1 351.6 0.2 0.2 0.3 0.3 0.3 1.3 Ttol RECURRENT COSTS 452.2 451.4 410.7 436.4 453.3 2204.0 1.6 1.6 1.5 1.6 1.6 7.9 Total PROJECT COSTS 3828.1 2258.2 1475.4 1841.4 1208.9 10611.9 13.8 8.1 5.3 6.6 4.3 38.2 : _ _ ......... ..... ..................................... ............. Ve^luss Scgled by 1000000.0 3 2611992 18:56 'OD 0 olih LA)I - 60 - Annex Page 1 of 1 THE GABONESE REPVBLIC FORESTRY AND ENVIRONMENT PROJECT DISBURSEMENT SCHEDULE AND PROFILE A. Eatimated Disbursement Schedule ISRD's IBRD's Project Estimated Profile Standard Profile LFt Semesters Per Sgm, Cumuatfiv X of Loan Per Sem.Q umsattva X of Loan 1993 1 0.4 0.4 2 0.0 0.0 0 11 1.3 1.8 8 0.6 0.6 3 1994 1 1.8 3.6 16 1.3 2.0 J 11 2.0 5.6 25 2.0 4.0 18 1995 1 2.4 8.1 36 2.7 6.7 30 11 2.7 10.8 48 2.9 9.6 43 1996 1 2.9 13.7 61 2.7 12.3 55 it 2.4 16.2 72 2.2 14.6 65 1997 1 2.2 18.4 82 2.0 16.6 74 it 2.0 20.4 91 1.8 18.4 82 1998 1 1.1 21.6 96 1.5 20.0 89 11 0.6 22.2 99 1.3 21.3 95 1999 1 0.2 22.5 100 1.1 22.5 100 B. Disbursement Profile 24 - is 14 a 4 - 2 19M I lo" I ISO I 130 I l3ow I 130 I 1933 a igi,,~~~~~ * Fhu. - 61 - Annex I10 Page I of I REPUBLIC OF GABON FORESrRY AND ENVIRONMENT PROJECT IMPLEMENTATION SCHEDULE Task Comlvetion Date Agencv Resronsible Approval of LPGFE Before Board Presentation MEF/METPN Signing of Arr6te Before Loan Effectiveness NEF Laurching of ICB Before Loan Effectiveness MEF/PCU for Vehicles and Equipment Establishment of short Before Loan Effectiveness NEF/PCU lists for consultant services Budget forecasts and work September 1992 PCU plan for CY93 to NPE Signing of contract with December 1992 PW Research Institute and/or Consultants Arrival of Forest January 1993 PCU Management Specialtst Arrival of Forest Inventory January 1993 PCU/ENEF Specialist. Training Specialist, Forest Engineer Arrival of Enviromiental January 1993 PCU/DGE Specialist First Audit of Accounts Decesber 193 PCU First bi-annual supervision Narch 1993 PCU/Executing mission of each component agencfes Budget Forecast and work June 193 PCU plan for CY94 Second bi-annual supervision September 1993 PCU/Executing mission for each component agenrcies Review of Envirormiental December 193 NPT/NPS Inpact Project Mid-Term Review June 195 P0J/Executfng agencies Legend: PCU ProJect Coordination Unit NEF - Ministry of Waters an Forestry NETPM - Ninistry of Environment, Tourism and National Parks NPE - Ministry of PlannIng and Economy NPT - Noyau Permanent de Travail NPS - Noyau Permnent de Suivi SUPERVISION SCHEDlE IBRO's Supervision irout Into Key Act'itiles year Nissions Activitv Exwected Skill ReuireoentsS first Year 1 Project start-up Task Manager 6 Procurement Review Forestry Specialist Finamcial Naement Environment Specialist Procurement Specialtat financial Antyst 2 Orgenization/lanagement Task Naaer 6 Launching of Fletd Activities Forestry Specialist Enviroauntsl Workshop Envireamntat Specialist -________________________________________ Agronomist/Research Speciallst Secord Year I liplemetation Fieid Activities Task Mwager 8 of Enviravastal iqmct Envirorental Specialist Review Studies Forestry Specialist 2 Review of Field Activities Task Nager 6 Finarcial Performance Financial Analyst | ________________ _______________ __________________________________________ Trainin g_Specialist __in g S e a s Third Year I Nid-Term Revieu Task Manager 15 Confiration/Reorienting of Forestry Spec., E,wironmentalist Project Design Sociologist. Agronomist Financils Analyst N 2 Ilptementation of Field Acti. Task Manager 8 Review of Studies Financial Anatyst Procurement end Financial Review Forestry Specialist Fourth Year I Implementation of Field Activit. Task Manager 6 Environmental Envirormental ist Monitoring Forestry Specialist 2 Fnancial Management Task Manager 6 Implementation of Field Forestry Specialist _ Activities Financial Analyst Fifth Tear I loplementation of Field Activit. Task Manager 8 Envirornental Monitoring Forestry Specialist initiation of Phase 11 Erviroruental Specialist Preparation Study Agrnmist 2 lIplementation of Field Activit. Task Manager 8 oo P Fotlow-Up Preparation of Phase Forestry Specialist 00 it Study Envirosrentallst PCR Training Specialist Agronomist o - 63 - Annex 12 Page 1 of 5 Adi GABONESE REPUBLIC RROJET FORET/ENVIRONNEMENT ANALYSE ECONONIOUE I. CONPOSANTE AMENAGEMhNT A. Analyse Economiaue Hvpothises de base 1. La composante porte sur 40.000 hectares de peuplbments naturels d'Okoum6 d'un Age moyen de 15 ans sur lesquels l'lintervention du projet consisterait en un inventaire, la d6limitation des blocs, et, l'am6lioration des peuplements par 6claircies. L'encadrement n6cessaire existe d6j&, mais il est n6cessaire de construire des logements en brousse et d'acheter les v6hicules et motos pour le fonctionnement de cet encadrement. 2. L'6chelonnement des actions est resumee dans le tableau ci- dessous 1 2 3 4 5 Constructions x - - - - Achat vehicules & x - - - - Materiel divers x - - - - Inventaire (ha) x 5.000 5.000 15.000 15.000 D6limitation (ha) x 5.000 5.000 15.000 15.000 Eclaircies (ha) x 5.000 5.000 15.000 15.000 3. L'ann6e 1 est r6serv6e aux constructions et a la mise en place du personnel et de ses moyens de fonctionnement. A l'exception des operations de delimitation qui n6cessiteraient la location de gros mat6riel, les autres actions entrainent seulement des d6penses de main d'oeuvre. Les Coats 4. On appliquera aux coOt. financiers les facteura de conversion suivants afin d'6liminer les taxes. Constructions et entretien 0.5 ouverture des limites 0.7 Achat v6hicules, motos 0.5 Fonctionnement v6hicules 0.6 5. Le coOt 6conomique de la main d'oeuvre a 6te estim6 a 50 % du coOt d'une main d'oeuvre permanente (6.000 FCFA par jour) en raison de la faible possibilite d'emploi dans la zone du projet. 6. On a ajout4 10 % d'Lmpr6vus physiques sur les coOts d'investLesement. Lee Beneficee 7. Quelle que soit la denait4 d'arbres A l'hectare, la surface terriLre maximale atteinte par un peuplement d'Okoum6 est de l'ordre de 55 - 64 - Annex 12 Page 2 of 5 m2 par hectare. Si Vlon considere qu'avec ou sans 6claircie, ce maximum serait atteint il eat connu qu'un peuplement naturel sur lequel on n'intervient pas, a une croissance qui tend vers zero lorsque le diamatre moyen atteint 55 cm alors quo les 6claircies permettent d'atteindre le diamAtre d'exploitabilit5 (60 et plus) vets l'age de 50 ans. 8. En consequence, on estimera que sans projet, l'exploitation de 3/4 du volume sur pied serait repouss6e tres loin dans le temps, et en tous cas au dela d'une p6riode oa les b6n6fices peuvent etre comptabilises par actualisation. Les b6nefices sans projet se limitent donc a un maximum de 60 m3 par hectare. Avec projet, les b6n6fices correspondent a l'exploitation d'un volume de l'ordre de 160 m3 par hectare (moins de la moitie d'une plantation artificielle) a l'fAge de 50 ans soit, avec un echelonnement de l'exploitation, entre les annees 30 et 33 du projet. (Age suppos4 lors du d6but du projet : 20 ans). 9. La valeur economique du bois our pied apres application des projections de prix de la Banque mondiale a et6 estimee A : 11.400 FCFA par m3 Les RMsultats 10. Le flux 6conomique des coats et benefices apparait dans le tableau 1. 11. La taux de rentabilitf economique atteint 18 %. Si l'on diminue les b6n6fices de 10 % le taux descend a 16.3 %. En augmentant les coats de 10 % le taux atteint 16.4 %. En diminuant lee b6n6fices de 10 %, et en augmentant les coats de 10 %, le taux s'6tablit a 15 S. Conclusiono 12. L'am6nagement des peuploments naturels d'Okoum6 en zone 1 ost une operation acceptable du point de vue purement 6conomique, malgr6 des hypothises conservatrices sur les b6nefices : il est tree probablo en effet, que dans la situation sans projet, le volume exploitable a l'ann6e 40 serait beaucoup plus faible que celui estim6 dans cette analyse. 13. Cotte op6ration apparait essentielle si l'on veut sauvegarder le potentiel de volume exploitable dans une zone r6servee aux exploitants nationaux. I1 n'est pas possible dans le cadre du present projet, de couvrir des surfaces plus importantes, car la composante absorberait une part trop elev6e des coats du projet. II. TRAVAUX SUR PLANTATIONS DIOP-UM HypothAses de Base 14. Sur un total d'environ 30.000 ha de plantations existantes, le projet interviendrait our la surfane totale on ce qui concerne la couverture a6rienne et la d6limitation, sur 3.400 ha pour les 6claircies (pouplements de 12 ans d'age moyen) et our 2.000 ha pour l'entretien 'peuploments de 7 ans d'Age pond6r6). 15. L'infrastructure logements fait partie du renforcement g6neraI du service foreatier, tandis quo loe d6penses de couverture a6rienne peuvent etre assimil6es & des 6tudes qui ne sont pas prises en compte dans l'analyse 6conomique. - 65 - Annex 12 Page 3 of 5 16. I1 est d'ailleurs impossible de meaurer les b6n6fices qu'entraineraient une meilleure connaissance, la d6limitation et une surveillance accrue sur les plantations trop ag6es pour qu'on y intervienne par entretiens et 6claircies. 17. On se limitera donc aux b6n6fices quantifiables (6claircies, entretien) sur un total de 5.400 ha. 18. Los d6penses (coats de d6limitation, d'achat do v6hicules et leurs frais de fonctionnement) ont et6 divis6s par 5 pour tenir compte du ratio 5.400/30.000. 19. Les coats financiers ont ete convertis en coats 6conomiques par lVapplication des principaux facteurs de conversions suivants s Achat V6hicules : 0.5 Entretien et Fonctionnement : 0.6 Ouverture Limit6s : 0.7 Main d'Oeuvre : 0.5 20. Pour les 2.000 ha dlentretien, on ajoutera en anne, 7 les dpeonses d'6claircie qui seraient a r6aliser sur des peuplements alors ag6s de 12 ans. Benefices 21. Eclaircies (3.400 ha) : L'exploitation aurait lieu en ann6e 34 du projet et porterait sur 360 m3 par hectare. Sans projet, le volume exploitable n'atteindrait que 90 m3 soit le quart du potentiel normal. 22. Entretien (2.000 ha) s apres l'intervention en eclaircie a l'ann6e 7 lVexploitation aurait lieu en ann6e 39. Sans projet, le volume exploitable atteindrait un maximum de 50 m3, a la mAime annee 39. 23. La valeur 6conomique du bois sur pied a 6te estim6e a 11.400 FCFA par mbtre cube. R6sultats 24. Le taux de rentabilite atteint 13.3 % si l'on diminue les b6n6fices ou augmente les d6penses de 10 % ce taux tombe respectivement a 12.4 % et 12.6 %. L'augmentation des coats de 10 % et la diminution simultanee des ben6fices de 10 % donnent un taux de 11 t. Meme si l'on peut toujours contester les hypothAses de b6n6fices sans projet, l'op6ration apparait rentable. III. VALEUR ECONOMIOUE DU BOIS SUR PIED Okoum6 Valour Economiatue du Bois sur Pied 25. Bases de Calcul : Le prix FOB moyen a et6 calcul6 & partir du mix de qualit6s livr6as en 1990 a la SNBG. Meme s'il est probable que les pourcentages par qualit6 augmenteront pour les QS et CI, au d6triment des basses qualit6s (CE et CS) par suite d'une meilleure commercialisation (minimum de d6classements), il faut tenir compte d'une 6volution des march6s vers la banalLsation de essences utilis6es pour le contreplaqu6. - 66 - Annex 12 Page 4 of 5 Prix FOB Pourcentage au N3 Pond6r6 Qualit6 % IFCFA) FCFA LM 0.3 58.400 1.752 QS 8.4 53.800 4.519 CI 45.7 42.300 19.331 CB 35.2 35.700 12.566 Cs 10.4 25.200 2.621 Total 100.0 40.789 26. On a donc adopt6 le chiffre moyen de 40.000 FCFA par mAtre cube au niveau FOB. 27. La d6composition des coats a partir du niveau FOB a 6t6 effectuee hors taxes et droits de sortie. Une etude sur la fiscalite montre que les taxes sur lsexploitation forestiAre s'4leveraient (hors DTS) a 5.400 FCFA par matre cube. On a en consequence d6duit ce montant du prix de revient d'exploitation evalu6 a 29.000 FCFA. 28. Lee marges foresti6res et de commercialisation ont 6t6 estim6es A 6 % du prix FOB. 29. La *aleur 6co.:omique du mAtre cube dOkoum6 our pied apparait ci-dessous (FCFA) Prix FOB 40.000 Frais de Mise a FOB 1.200 Marge Forestiere 2.400 Frais d'Exploitation 23.600 Total Coats 29.600 Valeur Economique sur Pied 11,400 30. Les projections de prix de la Banque mondiale pour les grumes sont donn6es pour 2 essences (Meranti et Sapelli) en prix constants 1985. Apres application d'un facteur de conversion (1.495), qui mesure l'linflation entre 1985 et 1990 le. projections de prix apparaissent comme suit : Annee Annee Augment. (US Dollars) 990 2000 l Meranti 246.7 276.6 12 Sapelli 290.0 310.9 7 31 La moyenne entre ces deux projections, soit 9.5 % d'augmentation, a 6te adopt6e pour l'Okoume, et en l'absence de projections au delA de l'an 2000, Aucun changement de prix nla 6te pris en compte. En cons6quence, la valeur economique de l1Okoum6 sur pied a 1'ann6e 40 du projet a 6te estimge A 10.400 + 9.5 % soit 11.400 FCFA (arrondi). - 67 - Annex 12 Page 5 of 5 Tableau 1 Flux Nconomiaue des CoOts et Benefices Amrnagement Peuplements Naturels Plantation d'Okoum6 (40.000 ha) (5.200 ha) B6ndf ice Economique Bdn6fice Economique Volume (W3) ('000 FCFA) Vo(ume ') (1000 FCFA) An Sans Prolet Aveirolet Sons Pro] Avec Proi SP At SP (60W3/ha) C16003/ha) (5003/ha) (360r3/ha) I - (45.000) - - - (45.100) 2 - - (55.400) - - - (68,600) 3 - (85.000) - - (35.470) 4 - - (85.000) - - (55.470) 5 - - (97.500) - - - (29.650) 6 - - - (20.000) - - - 0 7 - - - - - - - (38.040) 8 9 . . . . . . . 10-29 - - - - - - 30 300.000 800.000 3.420.000 5.700.000 - 31 300.000 800.000 3.420.000 5.700.000 - - 32 900.000 2.400.000 10.260.000 17.100.000 33 900.000 2.400.000 10.260.000 17.100.000 - 34 - - - 20.000 144.000 228.000 1.413.600 35 - - - - 30.000 216.000 342.000 2.120.400 36 - - - - 40.000 288.000 456.000 2.827.200 37 - - - 80.000 576.000 912.000 5.654.400 38 - . - 39 - - - 100.000 720.000 1.140.000 7.068.000 40 Pa wlements Naturels Taux de Rentabilit5: 18 i Valeur Actualis6es FCFA 2 milliards. Plantations Taux de Rentabilit6: 13.3 % Valeur Actualis6e: FCFA 360 millions. - 68 - Annex 13 Page 1 of 2 THE GABONESE REPUBLIC FORESTRY AND ENVIRONMENT PROJECT IMPLEMENTATION ARRANGEMENTS 1. MEF: The Ministry of Waters and Forenitry is the main Institution responsible for implementing the government's strategy for the forestry sector. It would coordinate and oversee vaL.ous studies to be undertaken under the project, undertake planning activities, participate in the assessment of the project components and their developmental impact. 2. DFC : The Directorate of Wildlife under the aegis of MEF, is primarily responsible for the enforcement of legal issues related to the environment, the prevention of poaching and other actions which could have a negative impact on the environment, the formulation of the master plan for wildlife conservation, the implementation of sound management and conservation techniques for wildlife resources. DFC would be responsible for coordinating actions for the creation of reserves envisaged under the project, and would assist in the implementation of the various environmental studies and surveys. 3. DGF : The Directorate General of Forestry. Under the tutelage of MEF, this Entity is primarily responsible for the implementation of forest inventory and rehabilitation programs. DGF would be responsible for the design and implementation of work programs defined under the project. It would carry out all technical operations related to the preparation of the inventories, the start-up of sylvicultural operations, and the forest management activities. Finally It would assist other directorates (DFC, DGE) in elaborating monitoring guidelines for assessing the environmental impact of field activities. 4. METPN : The Ministry of Environment, Tourism and National Parks. It is mainly responsible for the strategic planning of environmental issues. This Ministry would, in concert with DFC oversee day-to-day execution of project activities in the reserves areas and through DGE, have the primary responsibility in the undertaking of environmental studies. 5. PCU : Project Coordination Unit of the Ministry of Waters and Forestry. This Unit would have primary responsibility for the monitoring and evaluation of the project. It would be assisted in that task by a Permanent Working Nucleus (NPT) comprised of staff from (MEF,METPN,MPE). The PCU would provide assistance to DGF,DFC and DGE in preparing the semi- annual progress report and assess progress against agreed programs of operations and targets. Finally, the PCU would be responsible for financial management, p2rocurement, and audits. - 69 - Annex 13 Page 2 of 2 6. DGE s The Directorate General of Environment. Under the tutelage of NETPN, this Directorate is responsible for the elaboration and implementation of Government policies pertaining to the environment and the protection of the nature. It would have overall responsibility for undertaking various environmental studies envisaged under the project. DGE would in con3crt with DFC be responsible for coordinating actions for the creation of reserves. 7. ENEF: The National School of Waters and Forestry. ENEF is the main implementing Institution under the tutelage of MEF responsible for promoting and carrying out a Forestry and Environment Training Program. ENEF would implement a management Elan for the conservation for the Mondah Forest. S. NGOB. Environmental NGOs (CENA, FEG, IADR). The primary responsibility of the NGOs is to raise the awareness of local communities on environmental issues. They would comment on the project viability/soundness and probable impacts during its implementation, review project progress, and address other policy issues related to the forestry and Environment Sector. - 70 - Annex 14 Page 1 of 1 THE GABONESE REPUBLIC FORESTRY AND ENVIRONMENT PROJECT Key Indicators ActivitvICbiectjye Indicatonr Target /I Aehiee Achievement Rate X Praoram Inuts Construction of Fietd Office No. Fielding of NEF fietd Staff No. Procuretent of Vehicles arm Equipnt No., value, timing Recurrent costs by Category plarwed budgets Investment costs by coponents plamed budgets/value Proarme Deliverv Project Coordination Committee dates, miuites Seminars, Workshops dates, conclusions, No. of participants Induction training for staff dates, No. of participants Forest Inventory area covered, phasing Studies dates, conclusions Reserch No. trials, results Training No. students placement In private sector Reserves No., level of protection Progrm I,act lqpat of Institutiavml strengthening in field areas trend analysis, redcktion in poaching, better statistics an logging practices Status of studies nu*ber of new projects, actions in the sector Forest N_nagent knwwledge of forest ability to devise piEot rngeMt plans Progrm Review and Reportino Arnnal program an budget date by Septemer 30 Quarterly report date Barik sapervision date Aital closing of accounts date Coeliance with Covenants Sect! Submission of external audit to the Baw 4.01 Cb) date Establtfheent of Project Coordination Comittee 5.01 (a) date Deposit of 150 million CFAF 5.01 (b) date Adopt Environwental law 5.01 (c) date Staffing Plan to the Bank 5.01 Cd) date, timetable Kid-term review 3.04 Jure 19°5 / As specified in R adlor Amual Work Programs an Budgets. 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