Document of The World Bank rv FOR OFFICIAL USE ONLY Report No. 2148a-MLI STAFF APPRAISAL REPORT MALI FORESTRY PROJECT January 10, 1979 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Currency Unit = IF (Malian Franc) US$1.00 = MF 440 MF 1,000 = US$2.273 WEIGHTS AND MEASURES metric system 1 s ere of fuelwood (st) = 1 stacked m of fuelwood 1 m3 (r) = 1 solid cubic meter of round wood 1/ 1 m (s) = 1 solid cubic meter of sawn wood 1 stere of natural 3 forest fuelwood = 0.50 m (r) = 225 kg 1 stere of plantation fuelwood (Gmelina 3 irborea) = 0.60 m (r) = 350 kg 1 m (r) of natural Sorest fuelwood = 2.00 st = 450 kg 1 m (r) of plantation fuelwood (Gmelina Arborea) = 1.60 st = 560 kg 1/ Quantities of wood, when expressed in cubic metes (m ) in the report, correspond to solid cubic meters of roundwood (m r). LIST OF ABIBREVIATIONS CCCE Caisse Centrale Cooperation Economique FAC Fonds d'Aide et de Cooperation FED Fonds Europeen de Developpement IDA International Development Association IER Institut d'Economie Rurale IPR Institut Polytechnique Rural OAPF Operation Amenagement et Productions Forestieres OPM Operation Peche MOPTI OPNBB Operation Parc National de la Boucle du Baoule FISCAL YEAR (Government and Project) January 1 - December 31 FOR OFFICIAL USE ONLY MALI APPRAISAL OF FORESTRY PROJECT Table of Contents Page No. - I. BACKGROUND ................................................ 1 A. Project Background ................................... 1 B. The Sectoral Context ................................. 1 C. The Forestry Subsector ............................... 2 - Resources ... . ............................... .. 2 - Institutions ..... ................... 4 - Objectives and Strategies .. .................. 5 II. THE PROJECT AREA ...... ................................... 6 Introduction .... ............................. ........... 6 Climate, Topography and Soils .... ................. 6 Population and Wood Consumption ............. * ........ 7 Wood Trade and Processing ............................ 7 III. THE PROJECT ...... ........... 8 A. Design Features ...... ................ 8 - Project Description ............................ 8 - Detailed Features ..... ............. 8 - Implementation Schedule . .10 B. Cost and Financing Arrangements ....11 - Project Costs . .11 - Financing Arrangements. 13 C. Procurement, Disbursenments, Accounts and Audit 14 - Procurement ..... 14 - Disbursements ...... .14 - Accounts and Audit ....15 IV. ORGANIZATION AND MANAGEMENT . .. ...17 Organization . . ......... 17 Staffing ............ 17 Consultant Services ... . . 18 Training .... 18 This staff appraisal report is based on the findings of an IDA/CCCE mission which visited Mali in April-May 1978, comprising Messrs. J. Gorse, A. Otten (IDA), Bailliez (CCCE), C. Bailly ancl B. Faye (Consultants). This document has a restricted distribution and may be used by recipients only in the performance of their omcial duties. Its contents may not otlherwise be disclosed without World Bank authorization. ( ii) Page No. V. PRODUCTION, MARKETS, PRICES AND INCOMES .................. 19 Production .19 Markets .20 Prices ............................................... 20 Income. 21 VI. BENEFITS AND JUSTIFICATION ................................ 22 A. Project Benefits .22 B. Economic Analysis .22 VIII. AGREEMENTS REACHED AND RECOMMENDATION . .24 ANNEX TABLES Table 1. Total Annual Project Costs per Component Table 2. Total Annual Project Costs per Category of Expenditure Table 3. Total Project Costs per Category of Expenditure and per component Table 4. Bamako - Rainfed Tree Plantation Component - Total Costs Table 5. Segou - Rainfed Tree Plantation Component - Total Costs Table 6. Bamako - Natural Forest Management Component - Total Costs Table 7. Segou - Natural Forest Management Component - Total Costs Table 8. Mopti - Partially Irrigated Tree Plantation Component - Total Costs Table 9. Rural Forestry Nurseries Component - Total Costs Table 10. Training, Studies and Audit - Total Costs Table 11. Labor Requirements Table 12. Supervisory Staff Requirements Table 13. Civil Servant Salaries Table 14. Bamako - Rainfed Plantation Component - Total Wood Production Table 15. Wood Sale Reve:nue Table 16. Rainfed Tree Plantation/Costs per Ha Table 17. Natural Forest Management/Costs per Ha Table 18. OAPF Chart Table 19. Schedule of Disbursements Table 20. OAPF Cash Flow Table 21. Bamako - Rainfed Plantation Component - Economic Analysis Table 22. List of Supplermentary Annexes Available in Project File MAPS No. 13713 Project Area No. 13714 Forest Reserves Under Project MALLI FORESTRY PROJECT I. BACKGROUND A. Project: Background 1.01 Following the severe drought of the early 1970's, a conference was held in 1976 on the possibilities for forestry development in the Sahelian countries of West Africa. During this conference, each country submitted a list of project ideas in the forestry sector. A Bank/Cooperative Program mission visited Niger, Mali and Upper Volta in February/March 1977 and con- cluded that a forestry project in each of these countries would be justified if priority was given to: (a) increase fuelwood and building pole supplies, especially for the main urban areas whiere demand for wood is rising fast, through rainfed and/or irrigated plantations; and (b) improve management of natural forests and assist rural forestry activities, which would counteract the gradual destruction of the fragile natural forest cover due to agrarian and grazing pressures. 1.02 A pilot and technical assistance forestry project in Niger was subsequently prepared and appraised, and was approved by the Board on May 16, 1978. A forestry project in Upper Volta is presently under appraisal. For Mali, a feasibility study was prepared by the Cooperative Program and was submitted to the Bank in March 1978. The French bilateral aid agency (FAC) and the "Caisse Centrale de Cooperation Economique" (CCCE) participated in project appraisal in April/May 1978 to examine the possibilities for co- financing. B. The Sectoral Context 2 1.03 Mali has a total area of 1.24 million km and a population of 6.3 million, growing at 2.7% per anntum, but with an urban growth rate of 7%. About 90% of the population is engaged in agriculture or related pursuits, and per capita income is only US$110 per year (1977) which classifies the country as one of the 25 poorest in the world. For the 1973-1976 period which covers the drought and post-drought years, real GDP growth averaged 3.7% per annum, corresponding to an increase in GDP per capita of 1% annually; GDP growth in 1977 is likely to have been less, however, due to a return of drought con- ditions over extensive areas. - 2 - 1.04 Cotton and groundnuts are the country's main cash and export crops. Main food crops are millet and sorghum, and paddy: in years of satisfactory rainfall, output of these crops is estimated at 1 million tons and 250,000 tons re'-"ct-vely, at which levels no significant cereal imports ir' zcs-' sary. Cattle is an important source of revenue, providing slightly less than half of the value of agricultural output; exports of live cattle were significant until the drought of the early 1970's but herds have not yet fully recovered from losses during the drought years. 1.05 Less than 25% of the territory receives over 500 mm of rainfall in normal years and is suitable for crop production; about 75% of the population lives in this area. Yet, because of the size of the country and relatively low population densities, the per capita endowment of land suitable for crop production or pasture is still higher than in other countries (about 5 ha per inhabitant). This is particularly true for land in the Sudano-Guinean zone with rainfall over 800 mm annually (90% probability) and where two thirds of the population lives: with 1 ha of arable land in this zone for each inhabit- ant, Mali is about 50% better off than the Sahelian countries as a whole; and 100% with respect to grazing land. As a result, agrarian and grazing pres- sures on the natural forest cover are significantly less than in other Sahelian countries. C. the Forestry Subsector Resources 1.06 Mali's natural vegetation consists of: (a) 6% Guinean Savannah (annual rainfall above 1,200 mm) in the southern part of the country, characterized by bush vegetation with Isoberlinia Doka, Uapaca Somon, Erythrophleun guineense, and Lophira Alata and some dry but dense forests with Khaya Senegalensis, Afzelia Africana, Pterocarpus Erinaceus, Daniella Olivieri, and Cordyla Pinnata. (b) 27% Soudanian Savannah characterized by: (1) Park savannah (annual rainfall, 750-1,200 mm) with Butyrospermum Parkii, Parkia Biglobosa, Acacia Albida, Tamarindus Indica, Adansonia Digitata and Bombax Costatum and (2) Grass Savannah (annual rainfall 500-750 mm) with bush species such as Combretum species, Guiera Senegalensis, Zizyphus and Acacia. (c) 16% Sahelian steppe (annual rainfall 200-500 mm) with charac- teristic bushes of Acacia, Zizyphus, Calotropis Procera and Hyphaena Thebaica. (d) 21% Tropical subdesert steppe (annual rainfall 50-200 mm); and (e) 30% Desert. - 3 - The forest and fauna reserves and parks cover some four million hectares and represent about 3% of Mali's total area. Man-made forests only cover some 1,500 ha, planted mainly in Gmelina arborea, Teak, Neem (Azadarichta indica) and Eucalyptus. 1.07 The forestry sector accounted only for about 1.9% _f GDP in 1976 and 5.2% of exports in 1975 (mainly sheanuts, sheanut butter and oil, and gum arabic). However, official statistics on the value of forest output do not adequately reflect the important role played by the natural forest savannah and bush in providing fuelwood, building poles and minor forest products to meet the population's basic needs. I'he country's total fuelwood requirements are estimated at about 1.7 million tcon per annum of which 17% are used by the urban population - nearly 800,000 inhabitants - on the basis of a yearly consumption of 360 kg per person in the urban areas and 270 kg per person in the rural areas. About 10% of the total fuelwood production is consumed as charcoal. Building poles represent some 10% of total consumption. Moreover the natural forest provides fruits, tree fodder and dry weather grazing reserves for livestock, protects the soil against erosion, and - as bush fallow - regenerates soil fertility under the traditional shifting cultivation system. 1.08 Due to the size of the country and relatively low population densities (para. 1.05) the cutting of fuelwood in the rural areas has not generally led to a decline in the forest cover with its inherent dangers of ecological destruction, and fuelwood availability is still sufficient. There are, however, two areas in MaliL where the situation is fundamentally different. 1.09 Firstly, there is an accelerating decline in the natural forest cover around the capital city of Bamako. Rapid population growth in this city has led to an equally rapid growth in fuelwood consumption, now esti- mated at 200,000 tons annually and expected to rise to 500,000 tons per year by 1990. This compares with a theoretical wood yield of 250,000 tons per year in the Bamako area but, due to distance and difficulty of access, only about 50% of this is actually being exploited. As a result, distances are getting longer, wood transport to the city is becoming more costly, and fuel- wood prices have been rising by 15% each year on average over the past five years. 1.10 Secondly, there is a noticeable decline in the natural forest cover east of the Inner Delta of the Niger River; the decline is mostly concentrated around the towns of Segou and Mopti and adjacent rural areas. Although urban population levels are considerably lower here than in and around Bamako, urban growth rates are about as rapid while fuelwood supplies are more precarious; most of the Inner Delta is seasonally flooded and has only a sparse forest and bush cover, and, in areas where the forest cover is still in existence, sus- tained wood yields are small due to slow forest regrowth because of low rainfall (700 mm annually at Segou, and 500 mm annually at Mopti). Moreover, the traditional fish smoking industry in the Niger Delta area is an important additional consumer of fuelwood. The supply situation is perhaps the most preoccupying in Mopti: the distance between the town and its fuelwood sources -4- n-dw between 50 km and 100 km, and fuelwood prices are some 40% higher than in BaTnako. nstit lJt:nns 1.11 The Forestry Department under the Ministry of Rural Development has overall responsibility for forest protection, forest products, inland fishing, fauna conservation and wildlife management. It has three divisions at head- quarters, concerned with forestry, fishing and wildlife, and is organized into seven field districts each with its normal policing duties. The Minis- try has, however, delegated important functions in the forestry sector to so-called Ope'rations de Developpement, institutions charged to carry out specific projects, mostly assisted by foreign aid and enjoying a consider- able amount of financial and mianagerial autonomy. Three such "operations" presently exist in this sector: the Forestry Management and Production Agency (OAPF) assisted by French bilateral aid (FAC), the Mopti Fisheries Development Agency (OPM), assiSted by the European Development Fund (FED), and the Baoule Park Wildlife Management Agency (OPNBB), assisted by Dutch aid. 1.12 OAPF was established in 1972 with the task to create some 18,000 ha of tree plantations over a 30-year period, mostly to satisfy the fuel and construction wood requirements of the main urban centers. Since then, it has rehabilitated some 300 ha of old plantations and has planted about 400 ha mostly with a relatively fast growing species of Gmelina, in two forest reserves close to Bamako. Overall planting quality has been quite satisfac- tory, and about 95% of all plantings have been successful. All forestry operations have been carried out by local personnel (it has a permanent staff of about 50 employees) and foreign technical assistance to date has been minimal, limited to equipment maintenance and accounting. Present FAC financing provides for another 900 ha of plantations to be established during 1979 and 1980. 1.13 OAPF is now entering into a phase of rapid expansion: it is pre- sently building a small saw mill in Bamako; it has obtained financing from Swiss bilateral aid to establish two tree plantations and two saw mills, and to manage natural forests in Southern Mali, and it would also be entrusted with the execution of the proposed project. The additional activities would require further strengthening of the organization, especially in the managerial and administrative field (paras. 4.04-4.05). 1.14 Forestry education is provided by the "Katibougou Polytechnic Institute", which delivers university trained graduates ("ingenieurs des eaux et forets") and specialized undergraduates ("ingenieurs des travaux forestiers"). The institute is the only forestry training school existing in the Sahelian countries and, as a result, Mali has a large reservoir of well trained forestry staff: in 1977 some 50 forestry specialists - mostly trained at Katibougou - were working in Mali, compared to only four in Senegal and six in Niger. Furthermore, forestry training for field agents is provided at the OAPF-managed Tabacoro Training Center near Bamako. The quality of training is on the whole sufficient especially in the technical - 5 - field. For key personnel in the forestry services, however, additional training in administrative and financial management would be beneficial. 1.15 Forestry research is formally linked to the Rural Economic Insti- tute (IER) but has its headquarters at Katibougou. Research is presently limited to small scale trials and its most important component, tree growing under irrigated conditions in the Niger delta area, has so far had unsatis- factory results. 1.16 As a whole, Mali is institutionally well ahead in the foresty field compared to other Sahelian countries. Its main asset is the presence of trained Malian forestry staff with the capacity to be efficient in the field. Another important advantage is the existence of a National Forestry Fund which receives all revenue from logging, hunting and fishing permits and by law allocates 50% of its revenue to the Forestry Department for investment and protection purposes. Since the Fund's creation in 1967, it has channeled some MF 500 million (US$1.1 million) to the Forestry Department. Nevertheless, all forestry services suffer from severe budget constraints which make it impos- sible for them to cover operating costs and thus effectively carry out their assigned tasks. The only exception to this is OAPF which has its own revenue from the sale of wood products from plantations and classified forests which it manages: its wood sales, which exceeded MF 77 million (US$0.2 million) in 1977, are sufficient to cover its operating costs. Objectives and Strategies 1.17 The immediate priority in Mali's forestry sector would be the improvement of fuelwood and building pole supplies to the main urban centers by establishing tree plantations. This would help (a) to contain the rapid rise in fuelwood prices in the future, which would be directly beneficial to the lower income urban groups who cannot afford other types of fuel; and (b) to contain and, eventually, remedy the decline of the natural forest cover around the towns, thus preventing further environmental destruction. Experi- ence has proven that rainfall arouncl Bamako (averaging 1,100 mm annually) is sufficient to provide satisfactory wzood yields for selected spesies under rainfed conditions (Gmelina and Eucalyptus yielding about 9.5 m /ha/year) and that there are sufficient grounds to start large scale rainfed tree planta- tions in this area. No such experience, however, exists elsewhere in the country; while rainfed plantations are still thought to be possible around Segou, it is believed that around Mopti tree plantations would have to be irrigated at least during the first years after planting. Pilot plantations would therefore have to be started t:o obtain further data on these areas. 1.18 The next priority would be to devise appropriate actions in the rural forestry field. Although the natural forest cover outside the urban areas is not yet declining, it is expected that within ten to fifteen years, with increased population pressures, a disequilibrium between demand and natural supplies will arise in more regions than has hitherto been the case. It is therefore imperative to start testing rural forestry actions, i.e. aimed at increasing the supply of fuelwood and wood products close to - 6 - villages, and with the active participation of the rural population. Activities carried out in this field in the past, notably the establish- ment of village wood lots and t'he prevention of bush fires, have been largely unsuccessful because of disinterest on the part of the local population. Such actions have therefore to 'be reformulated with a view to provide suffi- cient incentive to the population to participate. 1.19 A third priority is for the forest services to undertake the manage- ment of natural forest reserves in the country. No modern management techni- ques are presently applied in Maili's forest reserves, mainly because of lack of funds. Yet, the application of known techniques would have three distinct advantages: it would substantially improve wood production while still main- taining the forest cover; it woujld put the present trained forestry staff to more effective work; and if properly managed it would produce revenue from sale of wood and wood products at least equal to the management costs. Priority areas to introduce these techniques would be near the urban centers, where effective wood demand is greatest. 1.20 The proposed forestry project emphasizes improved wood production near the urban centers and carri.es components dealing with all the above objectives; it therefore corresponds to the Government's expressed strategy for this subsector. II. THE PROJECT AREA Introduction 2.01 The project's main comlponent, the creation of 3,400 ha of rainfed tree plantations and 1,000 ha of natural forest management, both near Bamako, would be carried out in two forest reserves, one of 14,500 ha located 20 km from the city (Monts Mandingues) and one of 80,000 ha 50 km from the city (La Faya). The Mopti and Segou pilot components and the establishment of rural nurseries would be carried out at various locations in the region between Bamako and Mopti in the northern part of the Soudanian-Savannah Zone (see para 1.06). Two maps are attached indicating the project's locations. Climate, Topography and Soils 2.02 Both the Monts Mandingues and La Faya forest reserves are located in the southern part of the Soudanian-Savannah Zone (para 1.06) alongside the Niger River, as is the city of Bamako. The climate of the area is charac- terized by a seven-month dry spell and a rainy season of five months (June- October) with annual rainfall averaging 1,100 mm. Much of the countryside around Bamako especially north of the Niger River is hilly and about half of the soils are considered unsuitable for cropping or grazing: sizeable areas are made up of eroded skeleton soils and are void of vegetation. Lands in the two forest reserves, however, are relatively flat with soils of better quality, easily accessible by all-weather roads. A survey of soils and vegetation (including detailed mapping) in the two forest reserves, financed by FAC, - 7 - is being carried out and results are expected to be available by the end of 1978. Without prejudging the conclusions of the survey, it can be safely estimated that at least 30% of these lands are of good to excellent quality for tree planting, and that land availability problems are therefore unlikely to arise. Population and Wood Consumption 2 2.03 The Greater Bamako urban area covers about 300 km and has a population of some 550,000 inhabitants (of whom 430,000 live within the city limits). Most of the urban population has migrated to town over the last ten years and urban unemployment is high. A detailed survey on fuelwood consumption and prices in Bamako, made in February 1978, has shown that (a) consumption per inhabitant per year is 370 kg of wood (about 1 kg per day) and 17 kg of charcoal; charcoal therefore only covers some 7% of consumption in calory terms; (b) retail prices of wood average about 14 MF per kg and, at these prices, the satisfaction of fuelwood needs requires between 20% and 30% of an average urban family's income; and (c) most wood and charcoal are burnt on open fires, and ovens are little used, thus accounting for important energy losses. Wood Trade and Processing 2.04 Practically all of the wood trade is in private hands and 75% of wood supplies enter Bamako by motorized transport. OAPF, which presently exploits two forest reserves, transports wood to Bamako for sale to private wholesalers, to the two saw mills and the match factory, and at present covers less than 4% of total consumption. Its share of fuelwood supplies would however more than triple with the implementation of projects now being con- sidered and the projected saw mills (para 1.13) would enable it to enter into the expanding processed construction wood business. - 8 - III. THE PROJECT A. Design Features Project Description 3.01 The proposed project would be the first Bank Group-financed action in Mali's forestry sector. It would be carried out over five years (1980 to 1984) according to the implementation schedule in para 3.10 and would consist of five principal elements: (a) the establishment of 3,400 ha of rainfed tree plantations in two forest reserves near Bamako; (b) the application of modern management techniques on a trial basis over 1,000 ha of natural forest near Bamako, and 200 ha of natural forest near Segou; (c) the establishment, on a trial basis, of 60 ha of rainfed tree plantations near Segou and of 70 ha of partially irrigated tree plantations near Mopti; (d) the establishment of three forestry nurseries at Bamako, Segou and Mopti, and the rehabilitation of an existing one at San to provide trees to villagers through established extension services; and (e) the execution of studies to investigate more efficient wood uses, to examine the set up of rural forestry activities with a view to providing sufficient incentives for the population to participate, and to examine the scope of a possible follow-up project. Detailed Features 3.02 Bamako Rainfed Tree Plantations (see Tables 4 and 16). Of a total of 3,400 ha to be planted mostly with Gmelina Arborea, 1,100 ha would be in the Monts Mandingues forest and 2,300 ha in La Faya forest. Works, which wuld be carried out on force account by OAPF with its own material and material which would be provided by the project, would include the establish- ment of three nurseries of 1.5 ha each, clear felling of the natural forest followed by full destumping, harrowing and subsoil ripping to improve the water holding capacity of the soil. The seedlings would subsequently be planted, and for two years after planting, two weedings per year would be made to avoid weed infestation among the young plants. Simultaneously, all planta- tion tracks and firebreaks would be constructed and accommodations for workers and supervisory staff built. Wood recovered from the low value natural forest would be cut and sorted, and transported to Bamako for sale. 3.03 All plantation establishment works have to be done during the rainy season and only six weeks per year are suitable for the planting of - 9 - seedlings. Experience has showrn that most works have to be carried out with machinery rather than manual la!bour because of (a) the very tight work schedule; (b) the fact that during t.he rainy season few workers are available for hire due to peak labour requirements for cropping; and (c) the lack of manpower availability around plantation sites which would require costly transport and accommodations. It is estimated that in addition to the use of equipment about 90 mandays of labor input would be required over three years to establish 1 ha of rainfed tree plantation (see Table 11). 3.04 Natural Forest Management (See Tables 6, 7 and 17). Natural forest management would be undertaken in the La Faya forest reserve near Bamako and in the Dioforongo forest reserve near Segou. Natural forest management would lead to better natural regeneration and regrowth through protective measures against encroachments and bushfires, intermediate and regeneration cuttings, complementary seeding, harrowing and weeding. The application of these tech- niques would be preceded by the setting up of a working plan including site location, a forestry inventory, the marking of trees, and the construction of roads, tracks and firebreaks. Promising results have been obtained with these techniques in Nigeria, in areas of similar rainfall volume 3and intensity as around Bamako, with sustained yields increasing from 0.5 m /ha/year to 1.0 m3/ ha/year. No experience yet exists in areas with lower rainfall, such as around Segou, and provisions are made for a careful follow up on the results of both trials. It is estimated that about 50 mandays of labor input would be required over three years to manage 1 ha of natural forest (see Table 11). 3.05 Rainfed and Irrigated Plantation Trials (See Tables 5, 8 and 16). For the 60 ha pilot rainfed plantation near Segou in the Diogorongo forest reserve, the same clearing and planting techniques would be used as described in para. 3.02. In view of the absence of planting experience and the more marginal rainfall conditions in this area, however, three different species would be tried: Gmelina arborea, Eucalyptus camaldulensis and Azadarichta indica (Neem), and each species would occupy about 20 ha. Estimated establish- ment cost per ha, excluding contingencies, would amount to US$720 in Bamako and US$560 in Segou without taking account of receipts from sales of salvage wood. 3.06 The 70 ha tree plantation trials near Mopti would, in view of low rainfall locally, be irrigated during the first two years after planting to enable tree roots to reach the groundwater table. Trials would take place at two different locations: (1) along the Niger River at Tongorongo, 40 ha would be planted with Eucalyptus with water provided by pumping from the river to test various irrigation techniques, and (2) at Sevare, 15 km inland from Mopti, 30 ha would be planted also with Eucalyptus but with water provided by tubewell. As the latter site necessitates a higher investment, it would only be started in the thircl project year, when tree growth per- formance on the first site is already known. Both sites, which already belong to the Forestry Department, would be fenced and all-weather plantation tracks and firebreaks would be constructed. A preliminary estimation of establishment cost per ha, including fencing and excluding contingencies, would amount to approximately US$1,000. There will be no competition for water with rice cultivation practiced in the Mopti area. - 10 - 3.07 Rural Forestry NurserLes (See Table 9). One existing rural forestry nursery (at San) would be rehabilitated and three new ones (at Bamako, Segou and Mopti) would be established together with the project plantation nurseries. Each would be designed for a capacity of 50,000 to 100,000 seedlings per year. In order to avoid the poor results obtained in this field previously, the nurseries would (a) as a first stage, only provide shade, fodder and fruit tree seedlings in which villagers are more directly interested; (b) provide seedlings only through established extension services so that advice can be given and results can be followed up; and (c) promote plantings in family compounds rather than in communal (village) woodlots. Meanwhile, a detailed survey would be undertaken on rural forestry possibilities (para. 3.08) and the results of this survey would be taken into account in project imple- mentation as they become available. Field training would be provided for extension workers on rural afforestation techniques and possible approaches to encouraging the participation of rural people. 3.08 Studies and Surveys (See Table 10). The project would execute three studies in the forestry sector: (a) on better uses of wood, ways and means would be sought to obtain more efficient wood usage such as through preserva- tive treatment and the use of wood burning stoves and charcoal, and cost com- parisons would be made between the various alternatives and present methods; (b) on rural forestry possibilities, a survey would be made in a number of villages on wood and wood product requirements, and on the villagers' motiva- tion to participate in projects that would satisfy such need; this study would make proposals regarding practical actions to be taken to promote rural forestry schemes; and (c) a feasibility study would be made in 1983/84 to examine the scope of a follow-up project from the data gathered by the OAPF monitoring and evaluation system. 3.09 It is expected that 12 man-months of consultant services - at an average cost of US$8,900 per month excluding contingencies (of which salary and related benefits are US$6,300) - would be needed to implement the above studies, and assurances were obtained during negotiations that such con- sultants would be appointed on terms and conditions of employment, and with qualifications and experience acceptable to the Association. Implementation Schedule 3.10 Most of the equipment would be procured during the first two years and studies would be started from the first year onwards with priority being given to the rural forestry study. Implementation of the various physical project components is scheduled as follows: - 11 - 1980 19I81 1982 1983 1984 Total Bamako tree plantations - felling and clearing 600 800 1,000 1,000 - 3,400 - land preparation and planting - 600 800 1,000 1,000 Natural forest management - near Bamako - 250 250 250 250 1,000 - near Segou - 50 50 200 Tree plantation trials - near Segou felling and clearing 30 30 - - - 60 land preparation and planting - 30 30 - - near Mopti land preparation and planting - 20 20 30 - 70 B. COST AND FINANCING ARRANGEMENTS Project Costs 3.11 Total project costs over the five-year development period (1980- 1984) are estimated at MF 4,150 million (US$9.4 million) of which the foreign exchange component would be US$6.4 million or 68%. Project costs exclude import duties and all clearly identifiable taxes since Government has indi- cated its intention to waive them. Base cost estimates are based on prices and quotes obtained during appraisal in 1978 and include physical contingen- cies amounting to 10% of base cost estimates on all categories except per- sonnel costs. The expected price increases applied as shown below are those presently foreseen by the Bank. 1979 1980-1984 Vehicles, Equipment 6.5 6.0 Salaries, Technical Assistance and Consultants 6.5 6.0 Buildings 7.5 7.0 Contingencies total US$2.5 million, 26% of total costs or 35% of base cost. Estimated project costs are summarized below and detailed in Tables 1, 2 and 3. SUMMARY OF PROJECT COSTS Local Foreign Total Local Foreign Total % Total % Foreign -- MF million ------- ------- US$ million -------- Costs Exchange Bamako Tree Plantations Buildings and Nurseries 87.4 131.1 218.5 0.2 0.3 0.5 60 Machinery and Vehicles 65.5 589.3 654.8 0.2 1.3 1.5 90 Equipment Operating Costs 165.7 386.6 552.3 0.4 0.9 1.3 70 Local Staff Salaries 400.3 - 400.3 0.9 - 0.9 - - Staff Operat'ng Costs 42.8 64.2 107.0 0.1 0.1 0.2 60 Subtotal 761.7 1,171.2 1,932.9 1.8 2.6 4.4 47 60 Pilot Tree Plantations 40.8 58.0 98.8 0.1 0.1 0.2 3 59 Natural Forest Plantations 83.2 55.5 138.7 0.2 0.1 0.3 3 40 Rural Forest Nurseries 23.7 24.3 48.0 - 0.1 0.1 1 51 Technical Assistance Staff, Consultant Services, Audits and Training Salaries and Allowances - 659.1 659.1 - 1.5 1.5 100 Operating Costs 62.6 93.9 156.5 0.1 0.3 0.4 60 Subtotal 62.6 753.0 815.6 0.1 1.8 1.9 20 92 TOTAL BASE COSTS 972.0 2,062.0 3.034.0 2.2 4.7 6.9 74 68 Contingencies Physical 74.1 140.2 214.3 0.8 0.3 0.5 5 65 Expected Price lncreases 302.4 599.6 902.0 0.6 1.4 2.0 21 66 TOTAI, CONTINGENCIES 376.5 739,8 1,116.3 0.8 1.7 2.5 26 66 TOTAL PROJECT COSTS 1,348.5 2,801.8 4,150.3 3.0 6.4 9.4 100 8 - 13 - Financing Arrangements 3.12 FAC and CCCE would participate in the financing of the proposed project. Of total project costs of US$9.4 million, IDA would contribute US$4.5 million, FAC US$1.3 million and CCCE US$1.4 million, while the Govern- ment of Mal, would cover the remaining cost of US$2.2 million. SUMMARY OF PROPOSED FINANCING TOTAL IDA FAG CCCE GOVT. -------------US$ million------------ 1. Tree Plantations, Forest Management and Rural Forest Nurseries 5.0 2.4 - 1.0 1.6 2. Expatriate Staff 1.5 0.4 1.1 - - 3. Consultants Services,Audits, and Training 0.4 0.4 - - - 4. Contingencies 2.5 1.3 0.2 0.4 0.6 5. TOTAL COSTS 9.4 4.5 1.3 1.4 2.2 Percentage 100 48 14 15 23 3.13 Total external financing required would be equivalent to US$7.2 million or 77% of project cost. This amount would include US$0.8 million of local costs. The standard term IDA credit of US$4.5 million would cover 48% of project cost and would be equivalent to 70% of foreign exchange costs. FAC would finance the services of expatriate personnel, at no cost to Govern- ment. The CCE loan, the terms of which are to be defined between CCE and Government, and the IDA credit would finance pari passu categories listed under item 1 in the above summary. The IDA and CCCE funds would be added by Government to the present OAPF capital to improve its financial base. A financing agreement would be signed between Government and OAPF. Fulfillment of conditions preceding initial disbursement of the CCCE loan, assignment of expatriate personnel for the first two years of Project execution by FAC, and the conclusion of a financing agreement satisfactory to IDA between Government and OAPF would be conditions of effectiveness. 3.14 The Malian Government would contribute MF 980 million (US$2.2 mil- lion) or 23% of project costs. Of this amount MF 180 million (US$0.4 million) would be directly appropriated from the national budget to pay the salaries of - 14 - civil service staff seconded to OAPF and the remainder would come from revenue accruing to OAPF from wood sales derived from the clearing of forest areas under the Project. Assurances were obtained during negotiations that OAPF would deposit all such revenue into a separate account (para 3.20). 3.15 Expenditures to be financed in the first project year (1980) would total some MF 825 million including contingencies (about US$1.9 million). Assuming a lag of four months between the time the expenditure is incurred and the time it is reimbursed, and taking into account that machinery and equip- ment will probably be financed by direct payments to the supplier or by letters of credit, the interim financing requirements would be MF 110 million (US$0.25 million). Experience with on-going projects indicates that cash availability is a major factor limiting the pace of project implementation and the rate of IDA disbursements. Therefore, an initial disbursement of US$0.25 million equivalent will be made jointly by IDA and CCCE into the special project account (para. 3.20), wh,ich would serve as a revolving fund to finance project expenditures. The procedure would be similar to that adopted for the Drought Relief Fund (Credit 443-MLI). IDA and CCCE agreed at negotiations that the respective contributions to the revolving fund will be 70% and 30%. IDA would replenish its share of the fund upon receipt of satisfactory evi- dence that expenditures made were eligible for financing out of the proceeds of the Credit. Should, however, any disbursement out of the special account fail to meet this condition, Government would be under obligation to deposit the corresponding amount into thtat account. Assurances to that effect were obtained at negotiations. C. PROCUREMENT, DISBURSEMENTS, ACCOUNTS AND AUDIT Procurement 3.16 Contracts for machinery and vehicles (US$1.6 million excluding contingencies) to be financed jointly by IDA and CCCE would be awarded on the basis of international competitive bidding in accordance with IDA guidelines. Domestically manufactured goods would be allowed a preference of 15% or the level of import duties, whichever is lower. Contracts for the construction of houses, offices and workshops (US$0.6 million excluding contingencies) would not be attractive to international contractors, and would be awarded on the basis of competitive bidding advertised locally in accordance with local procedures acceptable to IDA. For contracts of less than US$20,000 local shopping on the basis of several quotations would be acceptable. Disbursements 3.17 The IDA credit would be disbursed during 1980-1984 as follows, and details are in Table 19. -- 15 - Amount Allocated % of expenditures to be (U'S$ million) financed 1. Plantation Establishment, Forest Management and Rural Nurseries 60% of total expenditures (a) Building and Nurseries 0.5 (b) Machinery and vehicles 1.0 (c) Operating Costs 1.5 2. Consultants' Services, Audits, Training, and Experts's Services (except salaries) 0.8 100% of total expenditures 3. Initial disbursement 0.2 4. Unallocated 0.5 4.5 3.18 Applications for credit withdrawal would be fully documented for vehicles and equipment as well as for expatriate staff, consultants and training, and certificates of expenditures would be required for Category 1 (other than vehicles and equipment).. In the latter case, works would be led by the chief of the Fieldworks Division, accounts would be kept and controlled by the Financial Director who would retain documentation supporting these certificates of expenditure for inspection by supervision missions and external audits. Accounts and Audit 3.19 OAPF, as a state enterprise, is required each year: (1) to have its accounts audited by the State Controller ("Commissaire aux Comptes"), and (2) to prepare a balance sheet and profit and loss statement for approval by its Board. However, while OAPF keeps its regular revenue and expenditure accounts up to date, it does not prepare annual budgets and has not issued a balance sheet or profit and loss statement since 1975, nor have its accounts been audited since 1974. As a result the management has little knowledge of OAPF's financial position through the year.. 3.20 To remedy the situation, IAC has accepted a request from OAPF to send two financial assistance missions which would help (1) to review OAPF's accounting system; (2) to prepare a balance sheet and profit and loss statement for the agency as of December 31, 1978; and (3) to prepare a budget for the agency for FY 1979. The first miss:ion carried out in November 1978 produced a preliminary report which shows that OAPF's financial situation would be sound. - 16 - The second mission, scheduled for February 1979, would produce a final report, including the 1978 balance sheet, on the financial. position of OAPF. A condition of effectiveness of the proposed credit would be that this final report, on the financial position of OAPF would be satisfactory to IDA and approved by the Board of OAPF. Assurances were further obtained dnring negotiations that (1) OAPF would open a special project account which would be a condition of effectiveness of the Credit; (2) OAPF would maintain separate project accounts; (3) the project accounts as well. as the accounts of OAPF as a whole would be audited annually by independent auditors acceptable to IDA; and (4) the audited statements would be submitted to IDA within six months after the end of the financial year. The employment of independent auditors would be initially financed out: of the proceeds of the IDA Credit and then by Government (Table 10). - 17 - IV. ORGANIZATION AND MANAGEMENT Organization 4.01 The project would be implemented by OAPF under the technical and administrative supervision of the Forestry Department, and the Director of OAPF would be the Project Director. Assurances were obtained during negotia- tions that the Project Director would have qualifications and experience acceptable to the Association. 4.02 The proposed project would be implemented by the existing organiza- tional structure of OAPF at its Bamako headquarters, notably the four divi- sions dealing with field works, equipment and input supplies, marketing, and administration and finance. Each of these divisions would be strengthened and the, field works division and equipment and supply division would be expanded with field sections in the La Faya and Monts Mandingues forest reserves. The pilot operations at Segou and Mopti would be managed by OAPF field agents under the administrative supervision of the Forestry District Inspector of the Forestry Department at Segou and Mopti. The design and technical supervision of the pilot operations would however be carried out in association with the consultants (para. 4.07). Similarly, the rural forestry nurseries at Segou, San and Mopti would be managed by OAPF field agents and supervised by the Forestry District Inspector in these towns, while the nursery near Bamako would be fully under OAPF authority. An OAPF organization chart is presented in Table 18. 4.03 The Project Director would be responsible for introducing a project monitoring and reporting system with the assistance of consultants (para 4.07). Assurances were obtained during negotiations to this effect. A further assurance was obtained that Government would, by the completion date, prepare a project completion report. 4.04 While a reorganization of OAPF for purposes of the proposed project would thus not be necessary, it is likely that, in view of the other activities in which OAPF is about to engage (para. 1.13), additional field divisions would be created which would add to the workload at headquarters, notably of the marketing and the administration and finance divisions. Assurances therefore were obtained during negotiations that, before implementing any organizational reforms during the project implementation period, an organiza- tion plan together with the proposed staffing would be submitted to the Association for approval. Staffing (See Table 12) 4.05 To implement the project, it is estimated that ten additional forestry engineers, graduates from the Katibougou Polytechnic Institute, would be recruited by OAPF, most of which would fill the positions of field sector and subsector chiefs in the La Faya and Monts Mandingues forest reserves. Given the large availability of Katibougou graduates in the country, no diffi- culties are foreseen for their recruitment. - 18 - 4.06 The post of Financial Director would be created: (a) to provide the OAPF director with financial management and accounting information; and b) to strengthen the administration and finance division, and provide in-service training to its members. In addlition, two mechanics would be required to manage the central OAPF workshop at Bamako and the two equipment maintenance umits that would be established in the field. As persons with the desired qualifications for these three positions are not available in the country, it is expected that they would be recruited internationally and serve over the full five years of the implementation period at a total cost, excluding con- tingencies, of US$9,500 per working month for the Financial Director (of which salary and related benefits are 'US $,700) and US$7,700 for the mechanics (of which salary and related benefits are US$4,400). Assurances were obtained during negotiations that these posts would be filled by persons on terms and conditions, and with qualifications and experience acceptable to the Associa- tion. Consultant Services 4.07 In addition to the 12 man-months of consultant services needed to implement the complementary studies (para 3.09), provision has been made under the project for 27 man-months of- consultant services at an average cost of US$8,900 per month excluding contingencies (of which salary and related benefits are US$6,300) to implement the different components of the project. Of these 27 man-months, 12 man-months, ranging from two to four man-months per year over four years, are necessary to design and supervise the irrigated pilot plantation at Mopti; the supervision would include in the last project year (1984) an in-depth analysis of the results obtained. The remaining fifteen man-months have been retained: (1) to monitor the tree plantation and natural forest management techn:iques that will be applied in the forest reserves close to Bamako and Segou; (2) to examine the feasibility of using different tree species for planlting; and (3) to set up a monitoring and evaluation program and supervise its initial implementation by the field works division of OAPF. Draft terms of reference for the services of consultants have been made and assurances were obtained during negotiations that consult- ants would be appointed on terms and conditions, and with qualifications and experience acceptable to the Association. Training 4.08 As specialized training in forestry techniques is already provided at Katibougou, and the Swiss Aid project includes a large component for the training of forestry field agents at the Tabacoro Center, training under the proposed project would be limited to practical in-service training by the OAPF expatriate staff in equipment maintenance and financial management, and by consultants in tree plantation techniques and natural forest management. Furthermore, US$57,000, excluding contingencies, has been included in the project to provide scholarships for OAPF key personnel (visits to African forestry research centers and projects, participation in forestry seminars and workshops). - 19 - V. PRODUCTION, MARKETS, PRICES AND INCOME Production 5.01 Bamako Rainfed Plantations. Gmelina, the main species to be planted over 3,400 ha near Bamako, is a tropical hardwood that can be used both as fuel and for construction purposes. The plantation production program is based on the first results of the ongoing rainfed plantations and the follow- ing assumptions: (a) a distinction of three soil types in descending order of soil quality, whereby onl Type III soils (estimated to occupy 70% of the area) the quality of produce would only permit its use as fuelwood and building poles; (b) a plantation life of 24 years, after which trees would be cut and the land cleared for replanting; (c) a thinning cycle to harvest fuelwood, starting the sixth year after planting and ranging from once every six years to once every two years depending on soil quality; and (d) a cutting cycle to harvest timber starting the eleventh year after planting and repeated once every two to five years depending on soil quclity. 5.02 On the basis of these assumaptions, one average3ha of planted Gmelina would produce a mean annual in5remenl (m.a.i.) of 8.17 m of fuelwood includ- ing building poles, and 1.42 m of timber, or a total m.a.i. of 9.59 m which is in line with wood yields from the existing plantations. Following the im- plementation schedule as outlined in para. 3.10, total production from the Bamako rainfed plantations would be as summarized below. Detailed production data are presented in Table 14. Fuelwood and Poles Timber Total Period --------------------- '000 m ----------------------- 1981-85 83.5 /1 6.8 /1 90.4 /1 1986-90 150.4 - 150.4 1991-95 166.3 4.7 171.0 1996-2000 110.6 12.1 122.7 2001-05 130.0 49.3 179.3 2006-07 110.0 48.8 158.8 /1 From clearing of natural forest before planting. Total of five year period. For details see Table 14. - 20 - 5.03 Plantation and Forest Management Trials. Given the experimental nature of the small tree plantations at Segou and Mopti and the forest manage- ment zones at Bamako and Segou, it would not be feasible to make well-founded production estimates at this stage. However, if managed correctly, a tent.-I4-- m.a.i. estimate of the Segou rainfed plantation would be between 3 and 4 m- per Va, while for the Mopti irrigated plantation it would vary between 6 and 15 m per ha. Management of She natural forest is expected to double present yields; thus, a m.a.i. of 1 m per ha could be reached around Bamako, and 0.7 m per ha around Segou. Markets 5.04 Wood produced by the project is all expected to be absorbed by the domestic market. In view of the growing fuelwood shortage in Bamako, no mar- keting difficulties are foreseen; due to the dearth of regular truck transport facilities, however, OAPF itself would have to transport the wood to Bamako for sale to wholesalers. With the project, OAPF would about double its fuel- wood supplies to Bamako, bringing up its share of the market from 4% to almost 8% on the basis of present (1978) consumption. 5.05 The sale of timber would enable OAPF to become a supplier tg the construction business. The small but growing timber market (20,000 m ) is at present supplied partially through imports from the Ivory Coast; supplies from Southern Mali will become available when the Swiss bilateral aid project has been completed (para 1.13). As transport distances from these two sources of supply to Bamako are longer and transport costs higher than from the project plantation sites, no problems are expected in marketing project produce. Prices 5.06 OAPF presently sells fuelwood to wholesalers at an average price of 2,800 MF per stere of 350 kg, which is equivalent to 8 MF per kg. One stere, as it is cut in the forest, contains about 10% of wood long and straight enough to be used as building poles, which are sold at 450 MF (US$1.02) per pole at wholesale level. Assuming that on average thirteen poles weigh one stere, the actual weighted price of a stere of fuelwood is 3,105 MF (US$7.05). For Gmelina lgs to be used as timber, the actual price is about 25,000 FM (US$57) per m delivered at Bamako mills. 5.07 Average annual fuelwood output from the project, estimated at about 44,500 steres, would not be sufficient to cover annual increases in consumption due to urban population growth (about 51,000 steres). It there- fore cannot be expected that project output would succeed in containing price increases in real terms. Fuelwood prices would continue to rise as a con- sequence of increased fuelwood scarcity so that charcoal and, eventually, -- 21 - kerosene would have to be used as a source of energy. The economic value of fuelwood would thus continue to rise! until it equals the value of imported kerosene in terms of energy equivale!nt; based on IBRD projections of oil prices, this would be the case from 1990 onwards when one stere of fuelwood would be worth 5,600 MF in constant terms. 5.08 Prices for tropical hardwood logs in constant dollar terms, follow- ing IBRD projections, are expected to be between 20 and 30% higher in 1985 than in 1978, depending on the species. Gmelina logs produced on plantations, although not of primary hardwood quality, would be of good construction quality and able to compete with Samba wood presently imported from the Ivory Coast at a jog price equivalent to between 30,000 and 35,000 MF (US$68 to US$80) per m at the Bamako sawmill. Taking into account that the first Gmelina logs would be produced only in the eleventh year after planting (1991), an average conservative price rise of 25% in constant terms has been assumed to value Gmelina timber output at that time. Income 5.09 The project would generate revenue through the sale of wood from plantations and from managed natural forests. Revenue from tree plantations, which would constitute 85% of project-generated revenue, would materialize slowly, as the first fuelwood cuttings would only take place in the sixth year after planting and the first log cuttings from the eleventh year after planting onwards. However, wood from the low value natural forest, cut in order to establish the tree plantations, would be sold and produce revenue during the first five project years, estimated to total about MF 1,080 million (US$2.5 million). Revenue expected to be generated over the life of the plantations would be as follows: Period MF Million US$ Million 1981-85 1,080 2.5 1986-90 1,070 2.4 1991-95 1,310 3.0 1996-2000 1,225 2.8 2001-05 2,560 5.8 2006-07 2,545 5.8 5.10 All revenue would accrue to OAPF. The project cash flow forecast (Table 20) shows that the above revenue would be sufficient to cover OAPF's contribution to the financing of the project as well as maintenance expendi- tures and operating costs on plantations and managed forests from the sixth project year onwards. Assurances were obtained, at negotiations, that OAPF would continue to operate and maintaiLn the project's plantations and managed natural forests after the end of the project period out of this cash-flow. - 22 - VI. BENEFITS AND JUSTIFICATION A. Project Benefits 6.01 The project would generate direct benefits through increased plantation wood production. It would also lay the groundwork for future investment decisions in the forestry sector as it would: (1) provide informa- tion on sustained wood yields and introducing irrigation trials as a means to accelerate tree growth in dryer areas; (2) provide tree plants to villagers and carry out studies that should lead to appropriate actions in the rural forestry field; and (3) introduce natural forest management techniques which if applied successfully would increase wood yields from the natural forest and, at the same time, provide much needed revenue for the Forestry Department. 6.02 Environmental Impact. The impact of the project on the environment would be substantial. Calculations show that fuelwood production from the 3,400 ha of plantations would be sufficient to forego the cutting of large areas of bush fallow -- some 10,000 ha at the beginning of production to some 30,000 ha in later years when population pressure would have obliged farmers to cultivate all the available land in the Bamako area. This would (a) help to prevent soil erosion and (b) lengthen the time that land would remain under bush fallow, thus increasing fertility generation. Under the traditional shifting cultivation system still common in Mali, which depends heavily on natural fertility generation through long fallow periods rather than fertil- izer applications, longer bush fallows represent an important benefit. B. Economic Analysis 6.03 In calculating the economic rates of return, the following assump- tions were made: (a) calculations were made only on the Bamako tree plantation component in view of the experimental nature of the other project components. For the Bamako tree plantation component, both the direct benefits from increased wood production and the benefits derived from longer bush fallow periods in the form of higher crop yields (increase of 100 kg/ha of millet production), have been calculated; (b) project life has been based on the average life of a Gmelina plantation block of 24 years; (c) a standard conversion factor of 0.88 was used for all local costs to express them in terms of border prices; -- 23 - (d) the market wage rate of 545 MF (US$1.24) per manday has been used for project laborers;, this is about 10% above their average opportunity cost and reflects the general scarcity of labor during the tree planting season; and (e) wood output has been valued at import substitution prices. For fuelwood a time lag has been assumed in reaching such prices, expressing the tinle it would take for fuelwood to become so scarce that its price would equate import prices in terms of energy equivalent. For timber, value assumptions are based on actual 1978 prices of comparable hardwoods presently imported and have been adjusted according to IBRD price projections for 1985. 6.04 Based on the above assumptions, the estimated internal economic rate of return on the Bamako tree plantation component is about 11%. Ex- cluding the benefits due to longer bushfallow periods, the estimated eco- nomic rate of return is about 9%. This, however, does not fully express the project's importance to Mali's forestry sector: it excludes probable values to be derived from the trials and experiments; it does not reflect the strengthening of OAPF that would result from the project through better financial management and increased revenues; nor does it account fully for the environmental impact the projeclt would have, notably the prevention of soil erosion which in the area around Bamako is shown to have strong deser- tification effects. 6.05 Sensitivity Analysis. Several tests were made to determine the sensitivity of the rate of return to various alternative assumptions. With a 10% increase in cost, the estimated rate of return would fall to 9.5%. A delay in plantation establishment of one year without any changes in costs would reduce the rate of return to 9.0%. Slower tree growth reducing the benefits by 10% would reduce the rate of return to 9.3%. If benefits would increase by 10% without any increases in costs, the rate of return would increase to 12.2%. 6.06 Risks. There are no known abnormal technical risks for the Bamako tree plantation component as the Gmelina species has proved itself to be well adapted to local conditions and to give satisfactory yields. The results of the pilot plantations are inherently uncertain, given the experimental nature of these plantations. - 24 - VII. AGREEMENTS REACHED AND RECOMMENDATION 7.01 During negotiations, the Bank obtained assurances from Govern- ment that: (a) consultants would be appointed on terms and conditions and with qualifications and experiences acceptable to the Association (paras 3.09 and 4.07); (b) OAPF would deposit all revenue from wood sales derived from clearing of forest areas under the Project into a separate account (para. 3.14); (c) should any disbursement out of the special account fail to meet the conditions for financing out of the proceeds of the Credit, Government would deposit the correspond- ing amount into that account (para 3.15); (d) OAPF would maintain separate accounting of the project funds (para 3.20); (e) the project accounts as well as the accounts of OAPF as a whole would be audited annually by independent auditors acceptable to IDA and the audited statements would be submitted to IDA within six months after the end of the financial year (para 3.20); (f) the Project Director would have qualifications and experiences acceptable to the Association (para 4.01); (g) the Project Director would introduce a project reporting and monitoring system (para 4.03); (h) Government would, by the closing date, prepare a project completion report (para 4.03); (i) before implementing any organizational reforms during the project implementation period, an organizational plan together with the proposed staffing would be submitted to the Association for approval (para 4.04); (j) the post of Financial Director and the two posts for Mechanics would be filled by persons with qualifications and experiences and employed under terms and conditions acceptable to the Association (para 4.06); and (k) OAPF would continue to operate the project's plantations and managed natural forests after the end of the project period (para 5.10). - 25 - 7.02 Conditions of credit effectiveness would be: (a) a special project account: has been opened by Government (para 3.20); (b) the Association has been informed that all conditions precedent to the assignment of expatriate personnel for the first two years of the Project have been met (para 3.13); (c) the Association has been informed that all conditions precedent to the disbursement to Government of the CCCE loan have been met (para 3.13); (d) the financing agreement between OAPF and Government has been signed (para 3.13); and (e) a report satisfactory to IDA on the 1978 financial position of OAPF has been approved by the Board of OAPF (para 3.20). 7.03 With the indicated assurances and conditions, the project would be suitable for an IDA credit of US$4.,5 million to the Government of Mali. MALI PORESTRY PROJECP / PROJETr PoKESriEli Total Annual Project Costs Per C0oneaont rJOOts r LTAUX DJ PROJET PAR ANNEE PT PAR 1OSAN'Ee (In MiliilOn Mti I ENi MILLIONS PM) Total Con r.geeies/IPREVUS Total Component PYO PYl PY2 PY3 PY4 Pefore Contingencies Physical Price After Contin8g..cies cOMPoSANTE 1980 1981 1982 1983 1984 AVANTr IMPREVUS PIIYSIQUES HAUSSE DES PKIX APRES IMPRhVUS 1. Bamako Raintaed Tree Plantation/ PLANTATION FORESTIERE EN SEC 614.3 542.2 428.1 508.4 484.9 2.577.9 183.5 765.5 3.526.9 - AMAKO - 2. Sego. Rai-fed Tree Plantation/ PLANTATION FORESTIERE EN SEC 10.8 7.0 6.1 3.3 2.7 29.9 2.3 7.6 39:8 SECOU 3. Iseako Natoral Forest Manage,sent/ AMENACEMENT FORE'r NATURELLE - 44.6 21.4 22.2 21.6 109.8 9.4 35.6 154.8 RAMAKO 4. Sego. Natural Forest Manage.awt/ to AMENACEMENT FORET NATIIRELLE 8.4 5.0 5.0 5.4 5.1 28.9 2.3 8.4 39.6 SECOU 5. Hopti Partially Irrtiated Tree PlantatioolPLANTATION FOPESTIERE 21.7 35.5 25.0 44.2 4.9 131.3 7.9 37.7 176.9 PARTIELlLEMENT IRRIGUEE MOPTI 6. Kural Forestry Nurseries PEPINIERES RURALES FORESTIERES 6.8 10.3 10.3 10.3 10.3 48.0 4.3 15.5 67.8 7. Traloitng. Studies and Audit FORNATION, ETUDES ET AUDIT 5.0 46.4 25.8 10.2 20.8 108.2 4.6 31.7 144.5 Total before Contingencies TOTAL AVANT IPRLIVUS 667.0 691.0 521.7 604.0 550.3 3.034.0 214.3 902.0 4.150.3 Physical Contin8encies IMPREVUS PHYSIQUES 56.3 47.6 32.7 41.3 36.4 214.3 Price Contingencies IMPREVUS POUR ItAUSSE DES PRIX 101.3 155.1 155.1 232.4 258.1 902.0 Total after Contingencies TOTAL APRES IMPKEVUS 824.6 893.7 709.5 877.7 844.8 4.150.3 . MALI FORESTRY PROJECT / PROJET FORESTIER Total Annual Project Costs per Category of Expenditure / COUTS TOTAUX DU PROJET PAR ANNEE ET PAR CATEMORTE DE DEPENSE (In million k*./EN MILLION FM) PYO PYI PY2 PY3 PY4 Total 1980 1981 1982 1983 1984 Before Contingencies AVANT IMPREVUS 1. Building & Nursery Establishment BATIMENTS ET CREATION DE PEPINIERES 160.9 77.3 11.0 11.5 - 260.7 2.. Machinery & Vehicles ENGINS & VEHICULES 321.9 148.8 27.3 80.1 113.3 691.4 3. Forestry Field Works TAV FDpRT 38. 9O 17R R 9922R 92R8 M9 8 9 l9 4. Supervisory Staff PERSONNEL, ENCADREMENT 30.3 50.1 50.1 50.1 50.1 230.7 5. Expatriates & Consultants EXPATRIES ET CONSUITANTS 74.1 163.8 144.3 140.4 136.5 659.1 6. Staff Operating Costs FRAIS FONCTIONNEHENT ENCADREMENT 40.9 75.2 64.2 63.4 57.2 300.9 Total before Contingencies TOTAL AVANT IMPREVUS 667.0 691.0 521.7 604.0 550.3 3.034 0 Physical Contingencies IMPRLVUS PHYSIQUES 56.3 47.6 32.7 41.3 36.4 214 3 Price Contingencies IMPIREVUS POUR HAUSSE DES PRIX 101.3 155.1 155 1 232.4 258.1 902.0 ro Total after Contingencies TOwAL APRES IMPREVUS 824.6 893.7 709.5 877.7 844.8 4.150.3 AlDtDSiOY P9RO:Ct / 1NW01T ld JEST61 Tuca. pt-octa Coat. par Csotaory ot bO4 ttE. .l- an4 p,r Caet tt.. / OLOUf9 TOTAUt D 0 AM CATtOOiIL E EAlOSES " r E O/HPOl ert (in MilLi.. Hf '1 ER MILLION iH) ENSTISDOdIW1O TRAVAUI P91R011100 SALAUIi PPIRSCNNEL £00ALOt6pif POLS PONCTIONNEMENTtN CALWkM#;`*JftIVU BaIldirga Iaitr & 0b.hina PASrt Ti.. UAl_ iara.. 41 - -E,p.tita ~ ii OO BEATLIftES Otparatiag Cast. Lst.nr.r* Oa.rP..a.ta Cotinoltant- Snarht,nds Cnrs W..ttt.Ita bef ... it-r 0t.t-.sry £atabtiat t .nt tt.Dlinary 0 V.tit. ItHTICOIhIT XiLGtlt O RES SosrtMOSry St-tt 0iAilS EXPA3IIE2 & Superttot Staff WAItIS EXPAT11011 & nA PHtt atn- .;0;. it-it. C-ati.....s.. CREATION DE PEPINIEREiS EINW.S L VENICULES & VENICtE£S SAISft010S tfJidEL D-ENC.ALPHEEIT GENE1AUX CLASttU.AlftS PLIthWL D1 iCAIEI2rT ohkt AUX wONS2TS AVN1if 1 42.: iiomsO DOS A91 AF1RL1 1. B.t k.lnisd T-a PLANTfATION FWOldSTLEti 218.5 654.8 552.3 201.1 034.0 59.2 54.).9 55.2 5t .8 95.1 Z.S79 183.J 755.5 3.5269 hH SEC IAHAEO 2. Sagon Ottnfad Tr.a PlattotatinS IjTrflD?100 855UEIT11ii 1.6 f.7 6.7 2.5 6.2 p p... 5.2 p... p... 29.9 2.1 7.6 39.8 EN SEC S1ll;U 3. b.o Nto-al F-rast AM0Nt5EMENT DE LA tORT 22.5 1.5 36.6 31.6 15.4 p... p... 2.2 p.P. P.-. 1...8 n. 35.6 159.8 t'--WILLt t4tAKXO 4. S" mitt-al Fnt..t AMENAMMENtT fL U t) 0.4 8.3 4.1 4.7 6.2 p... P... 5.2 p... p... 28.9 2. 8.4 30.6 hATtOlEUSE S0GO 5. hIpt I Prtially Irrittad :.. P).ataitao PLANTATION YSI61kiEt 15.4 15.9 16.5 b.0 5.1 P-.. 46.8 12.0 pt. 15.6 t'i ?-9 176-9 PAhTLALlEHfEiT Lt4il- 9 Ut E HOFT I 6. kt r. I F., .t t., . KP1MIEIRES KCdofStIEhl9 2.3 3.2 7.6 7.5 4.6 p... p... 12.8 p... p... 48.0 4. 15.5 67.8 7. Traini.g, St.dsi L *Asit KtO"ATION. CTUDES T- - - _ - p.. 62.4 25.0 20.8 108.2 4.6 31.7 11..5 AUDIT T.L.1 aI r7a 26u 17 6911 I _i5 16 2. TOTL AL IHPE9U5 51.8 111,5 1 0 PE9U.i - S.tIlg...i.. 2L.o 69.2 63.3 25.7 _ _ . 11.2 5.2 11.2 215.3 ILtDusOEV P0011990 PEi-ia 5dt 6 1/b.8 231.2 90.6 51.9 17.0 193.8 ,1.l4 17.2 k2.5 -2.2 151FR6VU1 POO1 HA51116 LIS P91X TGtAL oIoi lUEU l 939.8 PLI fs. 2?3. 76.2 D5n.9 165.? 74.2 107.2 9,151.3 F .. _a , C___-t-. _ Y DO IDES E6IANa3L. 0 90 712 . _ . 1.2 10 9.W 1 71. aDllon tHi z2.1. 845.5 f 47.8 d - . 9 19 2,., 112.3 ,91.1 lIt~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ MALI FORESTRY PROJECT / PRO.JET FORESTIER BAMAKO - Rainfed Tree Plantation Component / COMPOSANTE PLANTATION FORESTIERE EN SEC Total Costs / COUTS TOTAUX (In '000 MF/EN '000 FM) PYO PYI PY2 PY3 PY4 Total 1980 1981 1982 1983 1984 Before Contingencies AVANT IMPREVUS 1. Building & Nursery Establishmient 153,000 54,500 11,000 - - 218,500 BATIMENTS ET CREATION DE PEPINIERES 2. Machinery & Vehicles 300,650 141,650 21,400 78,050 113,000 654,750 ENCINS & VEILICULES 3. Forestry Field Works 37,800 141,060 190,240 224,380 165,920 759,40 TRAVAUX FORESTIERS 4. Supervisory Staff 27,549 41,433 41,433 41,433 41,433 193,281 PERSONNEL ENCADREMENT 5. Expatriates & Consultants 66,300 120,900 120,900 120,900 120,900 549,900 EXPATRIES & CONSULTANTS 6. Staff Operating Costs 28,950 42,650 43,150 43,650 43,650 202,050 FRA'IS FONCTIONNEMENT ENCADREMENT T trl before Contingencies 614,249 542,193 428,123 508,413 484,903 2,577,881 ru'iiL AVANT IMPREVUS Physical Contingencies 52,040 37,986 26,579 34,608 32,257 183,470 IMPRL'VUS PHYSIQUES Price Contingencies 93,280 121,838 127,316 195,487 227,550 765,471 IMPREVUS POUR IIAUSSE DES PRIX Total after Contingencies 759,569 702,017 582,018 738,058 744.710 3,526,822 TOTAL APRES IMPRLVllS '-I 4> MALI FORESTRY PROJECT / PROJET FORESTIER SEGOU - Rainfed Tree Plantation Component / COMPOSANTE PLANTATION FORESTIERE E'N SEC Total Costs / COUTS TOTAUX (In '000 MF/EN 'i000 FM) PYO PYI PY2 PY3 PY4 Total 1980 1981 1982 1983 1984 Before Contingencies AVANT IMPREVUS 1. Building & Nursery Establishment BATIMENTS & CREATION DE PEPINIERES 1,575 - - - - 1,575 2. Machinery & Vehicles ENGINS & VEHICULES 7,050 300 - 375 - 7,725 3. Forestry Field Works TRAVAUX FORESTIERS 898 4,145 3,565 408 180 9,196 4. Supervisory Staff PERSONNEL ENCADREMENT 690 1,380 1,380 1,380 1,380 6,210 5. Expatriates & Consultants EXPATRIES ET CONSULTANTS pm pm pm pm pm pin 6. Staff Operating Costs FRAIS FONCTIONNEMENT ENCADREMENT 575 1,150 1,150 1,150 1,150 5,175 Total before Contingencies TOTAL AVANT IMPREVUS 10,788 6,975 6,095 3,313 2,710 29,881 Physical Contingencies IMPREVUS PHYSIQUES 1,010 560 471 193 133 2,367 Price Contingencies IMPRLVUS POUR HAUSSE DES PRIX 1,652 1,582 1,838 1,262 1,251 7,585 Total after Contingencies TOTAL APRES IMPREVUS 13.450 98117 8_0 4,768 4,094 39,833 _ALI FORESTRY PROJECT / PRO.JET FORES'I'ER BAMAKO - Natural Forest Management Component / COMPOSANTE AMENACEMENT FORET NATURELLE Total Costs / COUTS TOTAUX (In '000 MF/EN '000 FM) PYO PY1 PY2 PY3 PY4 Total 1980 1981 1982 1983 1984 liefore Conitingencies AVANT IMPREVU S 1. Building & Nursery Establishaiieits BATIMEIITS ET CREATION PEPINIERES - 22,500 - 22,500 2. Machinery & Vehicles ENCINS & VEHICULES - 750 - 750 - 3. Forestry Y'ield Works TRAVAUY FORESTLERS - 16,930 17,008 17,085 17,163 18h 4. Sjipe) -v y Staff PERSONNEL ENCADREMENT - 3,840 4,840 3,840 3,840 15,360 5. I.xpatt i tes & Consul tats EXPATRI ES El CONSULTAkNlTS - pm pm. pm in pm 6. Staff Operating Costs FllA!S PONCTIOBNUIN4ENT ENCADMEMENT - 550 550 550 550 2 90 Total before Contingencies TOTAL AVANT IMPREVUS - 44,570 21,398 22,225 21,553 109,746 Physical Contingencies - 4,073 1,756 1,839 1,771 9,439 IMPREVUS PHYSIQUES Price Continigencies IMPREVUS POUR IIAUSSE DES PRIX - 10,215 6,483 8,663 10,263 55,624 Total after Contingencies TOTAL APRES IMPREVUS - 58,858 29,637 32 72733 3407 9 o-1 (1 FORESTRY PROJECT PROJET FORESTIER SEGOU - Natural Forest Mngment Component /_COMPOSANTE AMENAGEMENT FORET NATURELLE Total Costs / COUTS TOTAUX (In '000 HF/EN '000 FM) PYO PYI PY2 PY3 PY4 Total 1980 1981 1982 1983 1984 Before Contingencies AVANT IMPREVUS 1. Building & Nursery Establishments BATIMENTS & CREATION DE PEPINIERES 375 - - - 375 2. Machi yery & Vehicples ENGINS & VEHICULES 6,750 300 300 675 300 8,325 3. Forestry Field Works TRAVAUX FORESTIERS - 2,145 2,181 2,217 2,253 8,796 , 4. Supervisory Staff PERSONNEL ENCADRE4ENT 690 1,380 1,380 1,380 1,380 6,210 5. Expatriates & Consultants EXPATRIES & CONSULTANTS pm pm -. pm pm pm pm 6. Staff Operating Costs FRAIS FONCTIONNEMENT ENCADREMENT 575 1,150 1,150 1,150 1,150 5,175 Total before Contingencies TO'I'AT. AVAN'r IMPRLVUS 8.390 4,975 5,011 5,422 5,083 28,881 Phiysical Contingencies IMPREVUS PIIYSIQlJES 770 360 363 404 370 2,267 Price Contingencies ` IMPREVUS POUR 1IAUSSE DES PRIX 1,282 1,120 1,505 2,097 2,399 8,403 Total after Contingencies --I TOTAL APRES IMPREVUS j10i4 6,455 6,879 7,9 3 7,852 39 551 MALI FORESTRY PROJECT / PROJET FORESTIER MOPTI - Partially Irrigated Tree Plantation Component / COl'OSANTE PLANTATION FORESTIERE PARTIELLEMENT IRRIGUEF Total Costs / COUTS TOTAUX (In '000 MF/EN '000 FM) PYO PYI PY2 PY3 PY4 Total 1980 1981 1982 1983 1984 Before Contingencies AVANT IMPREVUS 1. Building & Nursery Establishments BATIMENTS & CREATION DE PEPINIERES 3,640 270 - 11_85 _ - 15,395 2. Machinery & Vehicles E'NGINS & VEIIICULES 4,250 5,800 5,600 250 -15,900 3. Forestry Field Works TRAVAUX FORESTIERS - 5,262 5,588 8,205 1,434 20,490 4. Supurvisory Staff PERSONNEL ENCADREMENT 1,020 1,020 1,020 1,020 1,020 5,100 5. Expatriates & Consultants EXPATRIES ET CONSULTANTS 7,800 15,600 7,000 15,600 - 46,800 6. Staff Operating Costs FRAIS FONCTIONNEMENT ENCADREMENT 4,992 7,592 4,992 7,592 2,392 27,560 Total before Contingencies TOTAL AVANT IMPREVUS 21.702 35,544 25.000 44,152 4.846 131,244 Physical Contingencies IMPREVUS PHYSIQUES 1,288 1,892 1,618 2,753 383 7,934 Price Continigencies IMPREVUS POJR IIAUSSE DES PRIX 3,219 7,862 7,453 16,885 2,301 37,720 Total after Contingencies TOTAL APRES IMPREVUS 26,209 45,298 34,071 63,790 2,530 178,898 PH a 0l MALI FORESTRY PROJECT / PROJIT FORESTIER Rural Forestry Nurseries Component / COMPOSANTE PEPINIERES FO[IESTIERES RURALES Total Cost / COUTS TOTAtlX (In '000 MF/EN '000 FM) PYO PYI PY2 PY3 PY4 Total 1980 1981 1982 1983 1984 before Contingencies AVANT IMPREVUS 1. Building & Nursery Establishments BATIMENTS & CREATION DE PEPINIERES 2,350 - - - -2,350 2. Machinery & Vehicles ENGINS & VEIICULES 3,200 - - - - 3,200 3. Forestry Field Works TRAVAUX FORESTIERS - 6,250 6,250 6,250 6,250 25,000 4. Supervisory Staff PERSONNEL ENCADREMENT 510 1,020 1,020 1,020 1,020 4,590 5. Expatriates & Consultants EXPATRIES & CONSULTANTS pm pm pm pil pm pm 6. Staff Operating Costs FRAIS FONCTIONNEMENT ENCADREMENT 750 3,000 3,000 3,000 3,000 12,750 Total before Contingencies TOTAL AVANT IMPREVUS 6,810 10,270 10,270 10,270 10,270 47,890 Physical Contingencies IMPREVUS PIIYSIQUES 630 925 925 925 925 4,330 Price Contingencies IMPREVUS POUR HAUSSE DES PRIX 1,042 2,351. 3,135 4,C30 4,926 15,484 Total after Contingenicies TOTAL APRES IMPREVtlS _8,482 13546 1 5,225 16,121 67,7040w MALI FORESTRY 1'ROJEC'T / PROJET FOREST'TER Training, Studies and Audit / FORMATION, ET'UDES ET AtJDIT Total Costs / COUTS TOTAUX (In '000 MF/EN '000 FM) PYO PY1 PY2 PY3 PY4 Total 1980 1981 1982 1983 1984 Before Contingencies AVANT IMPREVUS 1. Building & Nursery Establismnients BATIMENTS ET CREATION DE PEPINIERES 2. Machiinery & Vehicles ENGINS & VEIIICULES - - - - - 3. Forestry Field Works TIAVAUX FORESTILRS 4. Supervisory Staff PERSONNEL ENCADREMENT - - - -- - 5. Expatriates & Consultants EXPATrRIES & CONSULTANTS - 27,300 15,600 3,900 15,600 62.400 6. SLaff Operating Costs FRALS FONCTIONNEMENT ENCADREMENT 5,000 19,000 10,200 6,300 5,200 45,800 Total before Contingencies 5,000 46,400 25,800 10,200 20,800 108,200 TOTAL AVANT IMPREVUS Physical Contingencies IMPREVUS PrYSIQUES 500 1,910 1,020 630 520 4,500 Price Contingencies IMPREVUS POUR HAUSSE DES PRIX 770 10,145 7,510 3,899 9,381 31,705 Total after Contingencies TO'T'AL APRES ltMPREVUS 6,270 58,455 341330 14,729 30701 1j4j85 H PO MAIT FORESTRY PROJE(T / PROJET FORESTIER Labor Requirements / BESOINS EN MALN D'OEUVRE PYO PYl PY2 PY3 PY4 TOTAI. 1980 1981 1982 1983 1984 Bamako Rainfed Tree Plantation '000 man-day] PLANTATION FORESTIERE EN SEC BAMAKO HOMME-JOUR 12.0 55.3 73.7 87.2 67.6 295.8 Million MF/FM 207.1 Segou Rainfed Tree Plantation '000 man-day / PLANTATION FORESTIERE EN SEC SEGOU HOMME-JOUR 0.3 1.7 1.5 0.1 - 3.6 Million MF/FM 2.5 Bamako Natural Fcrest Management '000 man-day / AMENAGEMENT FORET NATURELLE BAMIAKO HOMME-JOUR - 11.3 11.3 11.3 11.3 45.2 'f Million MF/FM 31.6 Segou Natural Forest Management '000 man-day / AMENAGEMENT FORET NATURELLE SEGOIU HOMME-JOUR - 1.7 1.7 1.7 1.7 6.8 Million MF/FM 4.7 Mopti Partially Irrigated Tree '000 enan-day / Plantation HOMME-JOUR PLANTATION FORESTIERE PARTIIELLEMENT - 1.8 1.7 1.9 0.3 5.7 IRRIGUEE MOPTI Million Mr/FM 4.0 Rural Forestry Nurseries '000 man-day / PEPINIERES FORESTIERES RURALES HOMME-JOUR - 2.7 2.7 2.7 2.7 10.8 tlil lion Ilf(FL 7.5 1978 prices TOTAL '000 mnan-day / IIOMMIE JOUR 12.3 74.5 92.6 104.9 83.6 367.9 Million FM/MF 8.6 52.1 64.8 73.4 58.5 257.4 (1968 conistant prices) 37 Table 12 MALI FORESTRY PROJE'T / POr1ST PORESTIER Super,isory Staff Requirsment ' SESOINS LN PERSONNEL D'ENCADREZENT ?TO no Pm 2 PT3 PY4 1980 1981 I19A ORQ5t 1984 1. Bamako Rainfed rre. Plantation PIANTATION EN SEC Foreet Officers INGENIEUR FORESTlERS Cat A 9(6.) 9 9 9 9 Technicians ,/ tlICMS Cat 52 10 (6.) 10 10 10 10 Clerks 'COM11S 6(6.) 6 6 5 6 Drivers / CHAUFFEURS 6(6.) 6 6 6 6 2. SEGOU Rainfed Tree Plantation PLANTATION EN SEC t-chicntaan TECliNICIEN C-at 1 (6m) 1 I 1 1 "Yrepo.i Cat C sf 0,5(6.) 0.5 o.5 0.5 0.5 Forest District Sc5ff / PERSONNEL 1NSPECTIONj P...p p FORESTI.EEP 3 AUMM= Natural Foret ll na ent AlMEN&ORNRST2 FORET NAIJRELLE Forescry' Officer Cat A - I I INGENIEUR FORESTIER Technicir.. TECENICIEN Cat B 2- 2 2 2 4. SEGOU Natural Forest Mangeent AMENAGEJENT FORET NATURELLE Technician TECRHNlCEN Cat B 1(6.) 1 I I I "?repood" Cac.C 1/ 0,5(6.) 0.5 0.5 0.5 0.5 Forest District Staff PERSONNEL INSPECTION p... p... p.m. p.m. p.C. FORFESTIERE 5. DPTI Partially Irrigated Plantation PLANTATION PATIELL 1MT IREECG'ES rechnic-an SRECHNICIEN Cat 5 1 1 1 1 1 Forest District Sta£f f PERSONNEL INSPECTISN p... p... p... p.m. p.m. FORESIRE 6. Rural Forestry Nur3eries PEPINIERES FORESTIERES RURALES Technician TEChNIC.EN Cat b 1 I I I 1 OAPF and Forest District Staff PERSONNEL OAPF -T INSPECTION pm p.. p.'. p.m. p.m. FORESTIERE Total Supervisory Staff TOTAL PERSONNEL ENCAORENtENT 34(6) 39 39 39 39 2 7. OA?P Headquarters (OAPP arho sperd 50 of their tim on the project) / SIEEC OAPF (PERSONNEL OAPF rRAVArLLANT A 506 POUR LE PROJET) Director / DIRECTEUR Cat A, 1 1 1 1 1 Division Chief 'CHIEF DE DIVISIUN Cat A 5 5 5 5 5 Division Deputy Chief CEZF ADJOINT DE DIVISION Cat 51 2 2 2 2 2 Cat C 7 7 7 7 Clerks =,IefTD S 3 3 3 3 Drivers , CSAUFFEURS 5 Subcotal SOUS TOTAL 28 23 28 28 26 MALI FORESTRY PROJECT / PROJET FORESTIER Civil Servants Salaries 1 SALAIRES DES FONCTIONNAIRES (In Millioa NF / EN MILLION PM) including contingencies PYO PYl PY2 PY3 PY4 TOTAL 1980 1981 1982 1983 1984 Bamako Rainfed Tree Plantation 17.7 28.6 30.3 32.2 34.0 142.8 PLANTATION FORESTIERE EN SEC BAMAKO Segou Rainfed Tree Plantation 0.5 1.2 1.2 1.3 1.4 5.6 PLANTATION FORESTIERE EN SEC SEGOU Bamako Natural Forest Management - 3,1 3.3 3,5 3.7 13.6 AMENAGEMENT FORET NATURELLE BAMAKO Segou Natural Forest Management 0.5 1.2 1.2 1.3 1.4 5.6 AMENAGEMENT FORET NATURELLE SEGOU Mopti Partially Irrigated Tree Plantation 0,8 0.9 0.9 1.0 1.0 4.6 PLANTATION PARTIELLEMENT IRRIGUEE MOPTI Rural Forestry Nurseries 0.4 0.9 0.9 1.0 1.0 4.2 PEPINIERES FORESTIERES RURALES 19.9 35.9 37.8 40.3 42.5 176.4 t- Table 14 FORESTRY PROJ7ECT PROJET FORESTIER BAMAKO - Rainfed Tree Plantation Component / COMPOSANTE PLANTACIION FORESTIERE EN SEC Total Wood Production / PRODUCTION TOTALE DE BOIS 1/ 2/ Fuelwood and PoLes Timber TOTAL St 3/ mJ m3 m3 0 1 33,000 L6,500 1,200 17,700 2 44,000 22,000 1,600 23,600 3. 55,000 22,500 2,000 24,500 4. 55,000 22,500 2,000 24,500 5. 6. 37,800 23,625 - 23,625 7. 50,400 31,500 - 31,500 8. 69,600 43,500 - 43,500 9. 71,800 44,875 - 44,875 10. 11,000 6,875 - 6,875 11. 17,000 10,625 480 11,105 12. 47,000 29,375 1,000 30,375 13. 62,000 38,750 1,240 39,990 14. 75,000 46,875 1,400 48,275 15. 65,000 40,625 600 41,225 15. 7,200 4,500 1,500 6,060 17. 9.600 6,000 2,080 8,080 18. 44,400 27,750 2,600 30,350 19. 55,200 34,500 2,600 37,100 20. 60,600 37,875 3,240 41,115 21. 62,800 39,250 4,320 43,570 22. 11,000 6,875 5,400 12,275 23. 11,000 6,875 5,400 12,275 24. 52,800 33,000 14,640 47,640 25. 70,400 44,000 19,520 63,520 26. 88,000 55,000 24.400 79,400 27. 88,000 55,000 24.400 79,400 1/ Clearing Of existing natural forest (from Year O to Year 4) Fueiwood and poles 55 st/ha, Timber 2 m3/ha. 2/ Tree plantation mean annual increment (MAI)iACCROISSEMENT MuY0N ANNUEL DE LA PLANTATION FORESTIERE Year Fuelwood and Poles 'st) Timber (m3) 6 63 8 11 11 10 0.8 12 65 0.6 16 12 2.6 18 54 - 20 11 5.4 24 88 24.4 TOTAL 314 st 33.8 m3 or 196.3 m3 3,' Mean annual incurrent/ 136.3 x 33.8 9.59 m3/ha/year ACCROISSEMENT MOYEN ANNUEL 24 From Year 0 to Year 4 1 m3(r) 2.0 st (Natural Forest Wood/BOIS FORET NATURELLE) From Year 5 to Year 27 1 1 mZ3(r) 1.6 st (Plantation Wood/BOIS DE PLANTATION) MALI FORESTRY PROJECT / PROJET FORESTIER Wood Sales Revenue / RECETTES PROVENANT DES VENTES DE BOIS (In Million MF I EN MILLION FM) (1978constant prices) PYO PYI PY2 PY3 PY4 TOTAL 1980 1981 1982 1983 1984 Bainako Rainfed Tree Plantation PLANTATION FORESTIERE EN SEC BAMAKO - 120.5 160.6 200.8 200.8 682.7 Segou Rainfed Tree Plantation PLANTATION FORESTIERE EN SEC SEGOU - 0.9 0.9 - - 1.8 Bamako Natural Forest Management - 28.6 28.6 28.6 28.6 114.4 AMENAGEMENT FORET NATURELLE BAMAKO Segou Natural Forest Management AMENAGEMENT FORET NATURELLE SECOU - 1.2 1.2 1.2 1.2 4.8 - 151.2 191.3 230.6 230.6 803.7 H cr MALI F'ORESTRY ltwjEfcT / PKOJl'l FORESTIE[K Rainfed Tree planTado, / PLANTATION FOREST1IERtE EN SLf; DiOect EstabIa ahImW.it CoUtC & ktevel,ae ftoin l'xtraciioni of Ex1stis,g Ve tariu,, COUTS DIlELTS DE PLAllTATIlN ET BECETrES PROVENAN 0l)E L' EXPl.OlTA'l'0HN DE IA VEf'LTATr1ON 7XI STANITE/la (1, M1F/EN FM) 1 9 7j l rr ice s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ BAMAttO _ SEiWOU Before A,,,ortizatiunl Afrer AmorLization Befure Amortization After Asmortization AVAN't AOwnrSSEMENT APRES AMOkTISSRMEN'f AVAN'i' AM)K'rSSEMFtTr APKES AMOIrISSIEiIT1 1. DII iecL CquLa CfOUTS IHIIIEC`TS 1. Planc Supply LOIJ:OtlNUItE DES PlAN'lS 21,590 31.880 20,000 28.900 2. toada, Tracts & Flrebreaku Conlstructioa CREATION IOUTES, PISTES ET PAlE-FELU 14,250 18,355 14,250 18,355 3* tead Preparationt/ REPARATION W TEiKtlN 72,870 111,220 97,935 33,880 4. Wood Extrectioe/ EXPLOITATION FOlES'rlEIlE 36,390 40,450 12, ffl 12,600 Wood Trnsapnrc/ 'rltANSPOINt bU BOIS 33,930 55,445 5. Plantinig Weeding & Mainteiiance Year I / Pl.ANTATION, 34,84i) 44,620 32,740 39,545 IESLEKACE NI ENTKEPIEN ANNEE I b. Weedinlg & Maintenance Year 2 ENTIE'IIEN LT DESEIIBACE ANNEE 2 _10570 14,030 10,57 14,030 Intel Direct Costs/ COOTS DIRILcTs MF/FM L 40 316 AU0D 17. 247,310 US$ 510 71b 399 562 11. I4cvenue/KLClTII'S MIIFl:/l H200 _775 ___ _ 30,000 US$ 45t 68 t/ 5 crx 105 rm I 15,000 IFM BAMAKO 2/ ]4 t x1000 FMI load Side I BORO bE llOUTE *:1 MAI. [ FORESTRY PRO.LECT / UROJFT FOREST'IlEl Nat,oral For-est Manageme,nL / AtENAGE_IEN'T DE LA FORE'l' NATURELLE Direct Mawagesenr Costs & Revenue rom Extraction of Existin g Vegetatiol COU'I'S I)TRECTS DAMENAGENIENT ET RECETTES PROVENANT DlE L'EXPl.OITATION I)E LA VECiE.t'ATTON EXISTANTE/hIa (fIn MF/EN E'M) 1978 prices B_ AMAKO E_ SGOU Before Amortization After Amortizatioa Before A ortization After Amortization AVANT AMORTISSEMENT APRES AMORTISSEMENT APRES AMORTISSEMENT APRES AMOR'lISSEMl'N'l' I. Direct Costs/COUTS DIRECTS 1. Site Selection/LOCALISATION 280 280 280 280 2 'l'ree Marking/MARTELACE 175 175 175 175 r' 3. Roads & Firebreaks/ ROUTES Er PARE-FEU 11,950 16,395 19.170 26,560 4. Logging 'I'racks/ PISTES DE DEBARDAGE 2,130 3,382 850 1,350 5. Cuttinig & Stacking/ 11,900 16,800 8,400 8,400 COUPE ET ENS'l'ERACE Wood Transportation TRANSPORK' BOfS 24,050 31,300 - - 6. Hlarrowing/PUDIERISAGE 3,170 4,987 7. Seeding/SEMIS 60 60 8. Weediig/ DESIIERBAGE 14,000 14,000 14,000 14,000 Total Direct CostsI COUlTS DI RECTS MF/FM 1 87379 42,875 50,/65 US$ 154 199 97 115 11. Reven,e/RECE7TES 1/ 2/ MFW/FN t14,360 23500 US$ 280 53 3 I/ I in x 15,000 4 32 st x 3,105 IAWOAK, 2/ 235 st x 1,000 Road Side / BORD Dl' ROUtIE ’ MALI FORESTRY PROJECT PROJET FORESTLER OAFF Chart, ORGANIGRAMME nE L'OAFS CMientrly f R.lv1 D-lsp-t | tDTRROTAIR DEAS EAUX ET RT FGETAS |doluistrar Ion and Fina non Siv istR n R arketan g O SvSsIoe FL a Ro C og, D istra inI |od Stu die| Styls O on C q ent and SutOA PF D h y L SERVICES RENTAAUv NECI FOREP ES A S DPFATI _ __ __ _ _ _ _ _ _ _ _ _ J iirilo DIRRCTEUR CnrlDEvsi= SE aratn W Fed 1k. D.,. rtstn I 5 SINS RurallhXhFI Forestry NurseryS ReotorA'u I | DEPARTRMRNT DES EYTRR AT N- S AU r Adinisrarin -d Fltc iiin || M-BktinEg DfviNi-n | tPlann,; Traindng an Studies- Divi;i-n E|i,O r. S.ppll-=i Division- DIV CSION ADMINIS TRATVIVEET TIR D|DCN I_~~~~~~~~~~~~~~~~RILSTO IO I RMTO ETt TUE __NI I T--iSg C..t-S-ill ..d JNint ny Secrion ECTE CFNTRE PEROE FOTRMALT. LONsDETARACDECTION STERIE ET MENUTSERb| SECTECO~~ ~ ~ ~ PLAEGTIO FOETIR ES SSC l SN l l la AECTEISE |LA FAYAT _ FORS TISRE DIOFORONGO E I RPNS I/ NFMS 2_1 RF'Ps RFPS _, 2a NPMR av' RPPS , RPNS 1 PIFPS 4RFN S/ ? S FNS RSuI Foreatry Nursery S 5ECTEUR FTRESTIERE RCE RUALE NPMS N.tu-il F_ et M...eet eco SECTEUIR ~WACEAG"EtT FORET NATURELI E RFPS R.! ftd Pl..t.ti-n Sector- SECnTER ILANTATION FORESTIERE EN SEC 4 Pl#PS P_rFluly IrriT t.d PFr--ty Plantatinn Sector SECTEITR PLANTAT ION PORSIE PARTIELLEMtENT IRRIGLEE I RFN Rul ... restrl y N__ser STER PEPINIERE FORESTIERE RUKALE 44 Table 19 MALI FORESTRY PROJECT / PROJET FORESTIER Estimated Schedule of Disbursements / PREVISIONS DE DEBOURSEMENT IDA Cumulative % Fiscal Year Semester Disbursements Disbursements 1980 Second 1,270 1,270 1/ 28 1981 First 500 1,770 39 i) Second 500 2,270 50 1982 First 330 2,600 58 Second 330 2,930 65 1983 First 410 3,340 74 Second 410 3,750 83 1984 First 375 4,125 92 Second 375 4,500 100 / of whick 250,000 revolving fund 910,000 machinery and vehicles (direct IDA payments to the suppliers) 1,160,000 900 9Ž09 DY3 91Ž Ž04 9 9 90 1Ž 4Ž 2 19 15 98 17 10 99 '9 '1 Ž1 Ž3 Ž4 Ž8 28 09~~~~~~~~~1 6 7 ie19 - 1~24 F2n 19Ž0 191 9 , 18 00 90097 Ž09 A. -h.9 I,9o09900 6109 Ž910L,9o/Ž190Ž0 100 9~~~~~~ ~ ~ ~~4Ž 4990 9Ž -~ - - - - - - - - - - 00b9 MM P9/9049 'IO 9095Ž0 900 /13 17 973 - - - - - -1 - - - - - - 0906M 6Ž0Žd MI 4 Ž 0 41 Ž9 .Ž 7 47 9 ~ 18 _~ L IZ1 12 77l r17 "a .12 12 3879 2424 763 99 Ž ~ 9o L 57 9,09909919909 9Ž9044 80Ž 14075738Ž~~~~~~~~1,~ 'I. _-L L94 i,4 17 134 17 7 14 127 La VU i17 Ut 17 123 19 7 47 61 9_9 19 9 9,966,06900 9994 091 909Ž - 135 ~~~~~~~~~-, __ 777 - 98 ŽŽŽ~~2 91 400 - 4 04 13 7 4 17 _9_2 49 00 79 00 4 J1 _ _T 720I-2 12 1 w i Wi L- l C M 1, 9~~~~~~1 n7 _ a e 1 U Z- ~ L 1- 21 1 6 1 S1 77, 7152 1.71 '.93Ž4 _3- ~ ) 1 il 13 4I0) (1) 4 4 4 7 __ ll1241 6 __, 4004Ž72- " W 12~ 4 9-4 ,4 09969 066099-dz -0 1980 1011 ISCO 1983 1984 1998 2000~~~~~~~~~~~~~~~~~~~~~ 1 1 1 1 e 20030e p00 900 090 003 094 5 7 8 9 101112 ~~~~~~~ ~~~ ~~~ ~~ ~ ~~~ ~ ~~131415 16 0 18 9 0 2 C 6 3 17 04 16 2 91s,11.OOo,9*0*014.l,.s,1 6~73-7 54 11 10 1 1 (4l3 -7 -4 -1 -1 - - -- -2 . -7 -M -- --1 - 9 - 0. m.1,o,1 - psI.. 1,o.o9.1 - 32,000 ~~~11,00 55,90 0.00 - 37.89 50.400 6060 71,101 11,10 10-8 47,08 60.00 2900 00 ,0 91 7~ ,098 0090 1100 6.60 61.9 -100 01,00 51,.00 7040 32,0 98,0 09190109 00o./09999980999 CsI0 1090 '.413 3,94 9,774 3.963 1,1416 ,6 4,517 ,117 7055 5,310 4,600 5,600G~ s,600 160 100 ,0 ,0 5,60 0,60060 slo 5,600 ,600 5,69 5,08 169 o,6o 5,6099 09009 000209 200 90101001 - 140 0~~~~~66 008 -0 - 7 243 30 8et ~ 13 317 120 564 CO 14 04 339 3F1 C~ -6 1098 39 493 09' 90119999993 (80 10598 2, 40 23,10 2,980 01.50 . - - . 43.700 ~ 4370 43,700 4 1370 3,5 4,50 370 43,750 03,750 43M. 45,759 03,750 03,790 0,5 339 359 0,9 0.0984099,998 199.0101,67 . 27 47 10 . . . - - . 01 44 514' 51 0571 4 C7O 91 1 1139 10 2 5 30 9 90 100 0.00. 004909 (090 sOlIlool - 4~ ~ ~~3 57 72 72 9 4 0 0 ' 2 1 8 01 Is 0 02 90 72 79 82 10 0 69 I9I '04 19 8 7~~~9 POso (0-90 4~~~~~~6774 1377) 141 1203) 40871 23 (1 001 178 07 14 0 60 260 344 43 349 49 87 31 04 031 IVj 014 29e50 9,9 AA20 9, wo M 00-0.0 s 1.0.lo 91.9./090 00084 0 9009999499 I. . ~09191s 00 05090 0.0, 05 9129999..90.9 1 9~1.00.909 909*4590 90 1090 0.0.oo,, I..1,1i1t W09 S9~~~~~010l4 9.95 90990~~~~~V e Ml0s49 9998399..0,91. . 9. 47 TABLE 22 MALI Forestry Project /Projet Forestier List of Supplementary Annexes Available in Project File I Background Documents II Forestry Department III OAPF IV 1978 BAMAKO Wood Selling Prices V Project Basic Costs VI Rainfed Tree Plantation - Technical Note (in French) VII BAMAKO Rainfed Tree Plantation Supporting Tables VIII SEGOU Rainfed Tree Plantation Supporting Tables IX Natural Forest Management - Technical Note (in French) X BAMAKO Natural Forest Ma:nagement Supporting Tables XI SEGOU Natural Forest Management Supporting Tables XII MOPTI Partially Irrigated Tree Plantation - Technical Note (in French) and Supporting Tables XIII Rural Forestry Nurseries - Technical Note (in French) and Detailed Cost Table XIV Training, Studies and Audit - Detailed Cost Table XV Research - Technical Note (in French) XVI Technical Assistance - Job Descriptions and Qualifications XVII Draft Terms of Reference for Consultants N 4*~~4 'f f h w of the w ow f i t s "m ett"dWhe usd w fthe" MALI - J - th#st 5..*d N m a ftsU Say an -4 O * . or F OR E S TRY PROJECT AIEI -2X' rUnc; I ^ w r nvJs | S i . ~~~~~~~~~~~~A L G E R t A PROJET FORESTIER PROJECT AREA / ZONE DU PROJET N W Roinfed Tree Pontation / Plantotion foe n se’ D j A trriatd Tree Plantation / Plantaion foestier. r6u j * Noturcd Forest Manageermn / Arenogent n Ifat (faturele L. -a i Rurl Foestry Nursery t PopiniEr# forestier. ruwate Isotyeis in nmm / Isohyetes eo nm mm Rivers J Flees j M G Regiotal Coptals J Chef- Iiei de region @ Notional Capital Capitol. j -. - Regionol Boundaries I Limites de rigion N200 - - International Boundaries / Frontieres d'Etat 1 - 14. ~~ ~ ~ ~ ~ ° °-i - < Gao - 40 o4 Goo O 1O0 200, 300o 400 _ . _ <' KiLOMETER$ t - (/,, 800 4 . 0 Koyes r 0~ (-. * N l G E RMopti SENEG4L#%' _GRI e * - 7SENEGAL1 I r N_ I i N,~~~~~ 1000 .L~~~~~~~Sego 'X. 0~~~~~~~~~~~~~~~ BAMAKO San0 MAURITANtA %O UPPER VOLA z / f M A L I - 0 ) . SE ~~~~12* A GUIA '/j 4 i G Uff N E A Sikasso. . COAST Ci - t rB E NIN LIBER,IA) ,_ \s .t--TOGO ,_._ \ ./- 8 s.r v \ \ G H A N A | jqiEONE\ 12 IVORY COAST TOGO :,. _*__ _ _ _ _ _ t*|"h 1. _ 1 I I . i. _ \' D-~ X ' 0a3 Ds ; X œr >~~~~~~~~~3 ( ~~~~0 o'',"ns'"s..3~ -an , A o '-_, g °' X oat~/of X ro m q 'n i ( , R ~~~~/ vIg u%o L~~~~~~~~~~~~~~~~~~~~~~~~~~~~ k I A OK r- -j to.or o*o; 0zesS; ~ - /e =j/ aww