world bank document · cumulative 0.9 9.4 21.85 31.25 33.8 project development objective(s) the...

Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No: 74600-BD

PROJECT APPRAISAL DOCUMENT

ON A

PROPOSED GRANT

IN THE AMOUNT OF US$33.8MILLION

TO THE

PEOPLE’S REPUBLIC OF BANGLADESH

FOR THE

CLIMATE RESILIENT PARTICIPATORY AFFORESTATION AND REFORESTATION

PROJECT

UNDER BANGLADESH CLIMATE CHANGE RESILIENCE FUND (BCCRF)

February 05, 2013

Sustainable Development Department

Environment and Water Resources Unit

South Asia Region

This document has a restricted distribution and may be used by recipients only in the performance of their

official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS

(Exchange Rate Effective {November 11, 2012})

Currency Unit = Bangladesh Taka (BDT.)

81.2500 BDT = US$1

FISCAL YEAR

July 1 – June 30

ABBREVIATIONS AND ACRONYMS

ADB

ADP

AF

AIGA

AIGG

ARCS

BCCRF

BCCSAP

BDT

BFD

CAS

CBA

CCF

CF

CMO

CMC

CPGs

C&AG

DFO

DPs

EMF

EMP

FAPAD

FAO

FDGs

FM

FMS

FUG

FY

GEF

GIS

GoB

GRM

IBRD

ICDPs

ICR

IDA

IFR

Asian Development Bank

Annual Development Program

Arannayk Foundation

Alternative Income Generation Activities

Alternative Income Generating Groups

Audit Report Compliance System

Bangladesh Climate Change Resilience Fund

Bangladesh Climate Change Strategy and

Action Plan

Bangladesh Currency (Taka)

Bangladesh Forest Department

Country Assistance Strategy

Cost-Benefit Analysis

Chief Conservator of Forests

Conservator of Forests

Community Mobilization Officer

Co Management Committee

Community Patrolling Groups

Comptroller & Auditor General

Divisional Forest Office

Development Partners

Environmental Management Framework

Environmental Management Plan

Foreign Aided Project Audit Directorate

Food and Agriculture Organization

Forest Dependent Groups

Financial Management

Financial Management Specialist

Forest Users’ Group

Fiscal Year

Global Environment Facility

Geographic Information System

Government of Bangladesh

Grievance Redress Mechanism

International Bank of Reconstruction and

Development

Integrated Conservation and Development

Projects

Implementation Completion Report

International Development Association

Interim Financial Report

IP

IPCC

IRR

IURFs

LDCF

MDBs

MoEF

MoF

MTR

M&E

NAPA

NGO

NPV

OM

OP

ORAF

PD

PDO

PIC

PIU

PM

PPMR

PS

PSC

RIMS

RFP

RPF

RS

SA

SOE

SF

SIA

SIMF

TPDP

TSS

UNDP

US$

VCF

Indigenous People

Intergovernmental Panel on Climate Change

Internal Rate of Return

Un-audited Financial Reports

Least Developed Countries Fund

Multilateral Development Banks

Ministry of Environment and Forests

Ministry of Finance

Mid Term Review

Monitoring and Evaluation

National Adaptation Program for Action

Non Government Organization

Net Present Value

Operational Manual

Operational Policy

Operational Risk Assessment Framework

Project Director

Project Development Objectives

Project Implementation Committee

Project Implementation Unit

Project Manager

Procurement Performance Monitoring

Report

Procurement Specialist

Project Steering Committee

Resource Information Management System

Request for Proposal

Resettlement Policy Framework

Remote Sensing

Social Assessment

Statement of Expenditures

Social Forestry

Social Impact Assessment

Social Impact Management Framework

Tribal People’s Development Plan

Targeting and Selection Strategy

United Nations Development Programme

United Sates of America Currency

Village Conservation Forum

Regional Vice President: Isabel M. Guerrero

Country Director: Salman Zaheer

Sector Director: John Henry Stein

Sector Manager: Herbert Acquay

Task Team Leader: Shakil Ahmed Ferdausi

i

PEOPLE’S REPUBLIC OF BANGLADESH

Climate Resilient Participatory Afforestation and Reforestation Project

TABLE OF CONTENTS

Page

I. STRATEGIC CONTEXT ................................................................................................ 1

A. Country Context .......................................................................................................... 1

B. Sectoral and Institutional Context ............................................................................... 1

C. Higher Level Objectives to which the Project Contributes ......................................... 4

II. PROJECT DEVELOPMENT OBJECTIVES ............................................................... 5

A. PDO ............................................................................................................................. 5

B. Project Beneficiaries .................................................................................................... 5

C. PDO Level Results Indicators ..................................................................................... 6

III. PROJECT DESCRIPTION ............................................................................................. 6

A. Project Components .................................................................................................... 6

B. Project Financing ....................................................................................................... 11

C. Lessons Learned and Reflected in the Project Design .............................................. 12

IV. IMPLEMENTATION .................................................................................................... 14

A. Institutional and Implementation Arrangements ....................................................... 14

B. Results Monitoring and Evaluation ........................................................................... 16

C. Sustainability ............................................................................................................. 17

V. KEY RISKS AND MITIGATION MEASURES ......................................................... 18

A. Risk Ratings Summary Table .................................................................................... 18

B. Overall Risk Rating Explanation ............................................................................... 18

VI. APPRAISAL SUMMARY ............................................................................................. 19

A. Economic and Financial Analyses ............................................................................ 19

B. Technical ................................................................................................................... 20

C. Financial Management .............................................................................................. 22

D. Procurement ............................................................................................................... 23

ii

E. Social (including Safeguards) ................................................................................... 23

F. Environment (including Safeguards) ......................................................................... 25

Annex 1: Results Framework and Monitoring ........................................................................ 26

Annex 2: Detailed Project Description ..................................................................................... 33

Annex 3: Implementation Arrangements ................................................................................. 44

Annex 4: Operational Risk Assessment Framework (ORAF) ............................................... 77

Annex 5: Implementation Support Plan .................................................................................. 82

Annex 6: Governance and Accountability Action Plan (GAAP) ........................................... 85

Annex 7. Economic and Financial Analyses ............................................................................ 96

Annex 8. Lessons learned for Alternative Livelihoods to Support Forest Communities

component ................................................................................................................................. 113

Annex 9. Recommended Plantation Types, Common Species and Rotation Period .......... 121

Map

iii

PAD DATA SHEET

Bangladesh

Climate Resilient Participatory Afforestation and Reforestation Project (P127015)

PROJECT APPRAISAL DOCUMENT

SOUTH ASIA

SASDI

Basic Information

Date: 05-Feb 2013 Sectors: Forestry (100%)

Country Director: Salman Zaheer Themes: Climate change (65%), Biodiversity (20%),

Environmental policies and institutions (15%) Sector Manager/Director: Herbert Acquay/John Henry

Stein

Project ID: P127015 EA Category: B - Partial Assessment

Lending Instrument: Specific Investment Loan

Team Leader(s): Shakil Ahmed Ferdausi

Joint IFC: No

Borrower: Economic Relations Division, Ministry of Finance

Responsible Agency: Bangladesh Forest Department

Contact: Mr. Md. Yunus Ali Title: Chief Conservator of Forests

Telephone No.: (880-2) 818-1737 Email: [email protected]

Responsible Agency: Arannayk Foundation (AF)

Contact: Mr. Farid Uddin Ahmed Title: Executive Director

Telephone No.: +880-2-9873275 Email: [email protected]

Project Implementation Period: Start Date: 15-Mar-2013 End Date: 31-Dec-2016

Expected Effectiveness Date: 15-Mar-2013

Expected Closing Date: 31-Dec-2016

Project Financing Data(US$M)

[ ] Loan [X] Grant [ ] Other

[ ] Credit [ ] Guarantee

For Loans/Credits/Others

Total Project Cost (US$M): 35.00

Total Bank Financing (US$M): 0.00

Financing Source Amount(US$M)

Borrower 1.20

BCCRF (Bangladesh MDTF for Climate Change) 33.80

Total 35.00

iv

Expected Disbursements (in USD Million)

Fiscal Year FY13 FY14 FY15 FY16 FY17

Annual 0.9 8.5 12.45 9.4 2.55

Cumulative 0.9 9.4 21.85 31.25 33.8

Project Development Objective(s)

The project development objective is to reduce forest degradation and increase forest coverage through participatory

planning/monitoring and to contribute in building the long-term resilience of selected communities in coastal and hilly areas to

climate change.

Components

Component Name Cost (USD Millions)

Afforestation and Reforestation Program 22.0

Alternative Livelihoods to Support Forest Communities 4.00

Capacity Development for Forest Resource Planning and Management 5.50

Project Management 3.50

Compliance

Policy

Does the project depart from the CAS in content or in other significant respects? Yes [ ] No [ X ]

Does the project require any waivers of Bank policies? Yes [ ] No [ X ]

Have these been approved by Bank management? Yes [ ] No [ X ]

Is approval for any policy waiver sought from the Board Yes [ ] No [ X ]

Does the project meet the Regional criteria for readiness for implementation? Yes [X] No [ ]

Safeguard Policies Triggered by the Project Yes No

Environmental Assessment OP/BP 4.01 X

Natural Habitats OP/BP 4.04 X

Forests OP/BP 4.36 X

Pest Management OP 4.09 X

Physical Cultural Resources OP/BP 4.11 X

Indigenous Peoples OP/BP 4.10 X

Involuntary Resettlement OP/BP 4.12 X

Safety of Dams OP/BP 4.37 X

Projects on International Waterways OP/BP 7.50 X

Projects in Disputed Areas OP/BP 7.60 X

Legal Covenants

Name Recurrent Due Date Frequency

Subsidiary Agreement Before Effectiveness

v

Description of Covenant

The Recipient shall make part of the proceeds of the Grant available to the Project Implementing Entity under a subsidiary

agreement between the Recipient and the Project Implementing Entity under terms and conditions approved by the World Bank.


Project Steering Committee Effective Date


The Recipient shall establish and thereafter maintain, throughout the period of Project implementation, a Project Steering

Committee responsible for providing advice and guidance on Project implementation and for providing policy guidance.


Project Implementation Committee

Effective Date


The Recipient shall establish and thereafter maintain, throughout the period of Project implementation, a Project Implementation

Committee at BFD.


Project Implementation Unit Effective Date


The Recipient shall establish and thereafter maintain, throughout the period of Project implementation, a Project Implementation

Unit at BFD.


Procurement Officer at BFD Effective Date


The Recipient shall assign a procurement officer at BFD as procurement focal point.


Procurement Consultant March 15, 2013


The Recipient shall engage the services of a procurement consultant with qualifications and terms of reference satisfactory to the World Bank.


Reports on Procurement Performance

X Semi-Annual


The Recipient shall submit semi-annual reports on the Procurement Performance Monitoring Report in a format acceptable to the World Bank.


Project Office Effective Date


The Project Implementing Entity shall establish and thereafter maintain, throughout the period of Project implementation, a

Project office responsible for the day-to-day implementation of Part 2 of the Project.

vi


Implementation Manual Effective Date


The Recipient and Project Implementing Entity shall prepare and adopt an Implementation Manual, satisfactory to the World

Bank, for the implementation of activities under the Project.


Sub-grant Agreements X


The Project Implementing Entity shall make Sub-grant(s) to Forest Dependent Group(s) under a Sub-grant Agreement on terms

and conditions approved by the World Bank.


Procurement Focal Point Effective Date


The Project Implementing Entity shall assign a procurement focal point with qualifications and terms of reference satisfactory to the World Bank.


Grievance Redress Mechanism March 31, 2013


The Recipient shall establish and thereafter maintain, throughout the period of Project implementation, a grievance redress mechanism as required by and in accordance with the Social Management Framework.


Retroactive Financing N/A


No withdrawal shall be made for payments made prior to the date of the Grant Agreement except that withdrawals up to an aggregate amount not to exceed US$200,000 equivalent may be made for payments made prior to this date but on or after August 31, 2012 for Eligible Expenditures under Category (1)(a).

vii

Team Composition

Bank Staff

Name Title Specialization Unit

Shakil Ahmed Ferdausi Senior Environment Specialist Team Lead SASDI

Junxue Chu Senior Finance Officer Disbursement CTRLN

Cecilia Belita Senior Program Assistant Operational Support SASSD

Suraiya Zannath Senior Financial Management Specialist

Financial Management SARFM

Ranjan Samantaray Senior Natural Resources Management Specialist

Natural Resources Mgmt. SASDA

Arvind Prasad Mantha Financial Management Analyst Financial Management SARFM

Anna C. O'Donnell Social Development Specialist Social Development & Documentation

SASDS

Marghoob Bin Hussein Senior Procurement Specialist Procurement SARPS

Klas Sander Senior Natural Resource Economist

Forest Economics SASDI

Dora Nsuwa Cudjoe Environmental Specialist Forestry SASDI

Jose Ramon R. Pascual IV Counsel Counsel LEGES

Sabah Moyeen Social Development Specialist Social Safeguard SASDS

Janet Bably Halder Program Assistant Program Support SASDO

Marie Florence Elvie Program Assistant Program Support SASDO

Syed Khaled Ahsan Public Sector Specialist Governance SASGP

Nadia Sharmin Environment Specialist Environmental Safeguard SASDI/SASDC

Ishtiak Siddique Procurement Specialist Procurement SARPS

Non Bank Staff

Name Title Office Phone City

Prof. N H Ravindranath Consultant – Climate Change, Forest Resource Planning and

Capacity Development

+91-80-23341838 Bangalore

James Carle Consultant – Silvi-culture & Forestry Inventory

+64-7-5749446 Mount Maunganui, Bay of Plenty

Teen Kari Barua Consultant- Social Safeguard +880-1758-250015 Dhaka

Asyl Undeland Consultant- Community Development and Livelihoods

Dhaka/Colombo

Lelia Croitoru Consultant – Economist +1- 202-458-8455 Washington D.C.

Aminur Rahman Chowdhury Consultant - Financial Management

+880-2-8159001/Ext. 4320 Dhaka

Md. Bazlul Kadir Consultant – Procurement +880-2-8159001/Ext. 4329 Dhaka

Junaid Kabir Choudhury Consultant – Forestry +880-1711-270739 Dhaka

Locations

Country First Administrative Division

Location Planned Actual Comments

Bangladesh Chittagong & Borishal Cox’s Bazar, Chittagong, Noakhali, Laxmipur, Feni, Barisal, Patuakhali, Barguna and Bhola

X

1

I. STRATEGIC CONTEXT

A. Country Context

1. Bangladesh is a low-lying, riparian country with highly fertile alluvial floodplains that

drain into the Bay of Bengal through a constantly changing network of estuaries, tidal creeks

and an active deltaic coastline. The lower part of the country adjoining the Bay of Bengal is

known as the “coastal zone” and characterized by a delicately balanced natural morphology of

an evolving delta. Its west zone includes the ecologically important Sundarbans mangrove

forest area.

2. Tropical cyclones, storms and surges are major features of the coastal zone’s climate.

These storms have a significant negative impact on the area and its growing population of about

16 million people. As a result of its historically large population and geography, the coastal

area has suffered significantly from cyclone landfalls. Records of cyclones and surges go back

more than four hundred years, and show that in the last two hundred years, the coastal zone has

been affected by at least seventy severe cyclones, of which forty have occurred since 1948. The

most deadly ones occurred in 1970 and 1991, causing over 350,000 and 140,000 fatalities,

respectively.1 Available climate change models suggest that the intensity of super cyclonic

events will increase over the coming decades, while declining forest cover will offer less

protection against winds and storm surges. A thick forest belt along the coastline has a high

potential as a buffer zone to reduce future climate change-induced threats, particularly the

impacts of cyclones and storm surges. Forest ecosystems and biodiversity are also vulnerable to

current climate risks and future climate change.

3. Bangladesh is among the most densely-populated countries in the world, already

vulnerable to natural disasters and now becoming highly-affected by climate change. In

addition to natural disasters and climate change impacts, the pressure on natural resources in

Bangladesh is very high. Two-thirds of the land area is under crops, the highest proportion in

South Asia, and cropping intensity is also the highest in the region, having increased by 25%

over the last thirty years. Available evidence shows an imbalanced use of agricultural inputs

and nutrient depletion. The share of land under forest cover is the second lowest in the region,

with natural forest cover accounting for only half of that in the 1960’s. Moreover, degraded

forests and ecosystems are more vulnerable to climate change. In this context, participatory

afforestation and reforestation in coastal and hilly areas will be a key contributor in meeting the

challenge of climate change vulnerability and depleting forest resources.

B. Sectoral and Institutional Context

Forestry Sector in Bangladesh

4. Forests are very important renewable resources in Bangladesh and play a crucial role for

the livelihoods of communities, providing them with fuel wood for cooking, timber and pulp for

construction and industrial purposes, non-timber products, including fibers, fruits, nuts, honey,

1Riaz, Ali, 2011. “Bangladesh” in Climate Change and National Security: A Country-Level Analysis. Ed. Daniel Moran. Washington, DC:

Georgetown University Press. 103

2

as well as various compounding materials for gums, incenses, latexes, oils, resins, shellacs and

tanning. It also controls or reduces the intensity of the cyclones and tidal surges in the coastal

areas. It is estimated that at least 400,000 people are involved in the trade of forest products.

Non-timber forest products contribute significantly to supporting the economic activities of at

least 600,000 people.2 In addition, forests provide valuable ecosystem services: they maintain

local climate and strongly influence global fluxes of oxygen and carbon dioxide; protect top soil

and hold important nutrients; and act as a stabilizing force for top soil to prevent erosion in hilly

areas. Forests also harbor tremendous biological diversity of flora and fauna, including unique

species, such as the Royal Bengal Tiger in Sundarbans.

5. The past several centuries witnessed significant deforestation in Bangladesh, largely

driven by illegal and unsustainable logging and harvesting, slash and burn agriculture,

conversion of forested areas into non-forest land, including settlements, pastures, croplands,

wastelands, or land used for recreational or industrial purposes.3 As a result, it is estimated that

Bangladesh’s forest cover has been declining by 2.1 percent annually in the last three decades

alone4. Today, forest cover is estimated to be around 2.56 million hectares (m ha),

5 or 17.8

percent of Bangladesh’s total land area.

6. Global climate change models show that declining and deteriorating forest cover

significantly reduces the opportunity to mitigate climate change. Thus, if total forest cover

continues to decline in Bangladesh, the potential for forests’ carbon sequestration will be

reduced in coming years. Further, climate change could adversely affect forest ecosystems,

biodiversity and even mitigation potential of forests.

7. Since 1960, the Bangladesh Forest Department (BFD) has implemented afforestation

programs on the coastal embankments, newly accreted coastal char lands and offshore islands,

along the 710 kilometer (km) of coastline. To date, planted mangrove forests cover more than

0.17 m ha of embankments, chars and islands and represent a unique greenbelt along the

coastline.6 Afforestation of foreshore and of tidal areas outside embankments proved to be a

cost-effective method to dissipate wave energy and reduce embankment flooding during storm

surges. For example, Cyclone Sidr in 2007 and Cyclone Aila in 2009 caused less damage to

property and fewer life losses in Chokoria and surrounding areas compared to the devastating

results of the cyclone in 1991. This was due to afforestation on the foreshore of embankments,

which substantially broke the storm surge velocity.7

8. The Government of Bangladesh (GoB) has recently approved an afforestation project

to establish plantations of mangrove (12,355 ha), non-mangrove (400 ha) and strip (678 km) in

2Junaid K. Choudhury and Md. Abdullah Abraham Hossain. Bangladesh Forestry Outlook Study. FAO, 2011 3Kricher, J. A Neotropical Companion. Princeton University Press, 1997. 4 Global Forest Resources Assessment 2010 of FAO reports annual change in extent of forest in forest department lands is -0.18% during 1990-2005. 5This includes all classified (1.49 m ha) and unclassified (0.73 m ha) state owned forestland, village forest lands or homestead forestry (0.27 m

ha), tea estates and rubber gardens (0.07 m ha). The classified forest includes hill forests (43.8%), natural mangrove forests (39.2%), mangrove plantations (9.2%) and sal forests (7.8%). The unclassified forest mainly concentrates in the Chittagong Hill Tracts, and cover about 29% of the

country’s total forest land. (An Overview of Social Forestry in Bangladesh, Bangladesh Forests Department and University of Chittagong,

2004). 6The species planted under the afforestation programs include Sundri (Heritieraformes), Gewa (Excoecariaagallocha), Keora

(Sonneratiaapetala) and Passur (Xylocarpusmekongensis). 7Cyclone Sidr in Bangladesh: Damage, Loss and Needs Assessment for Disaster Recovery and Reconstruction, Government of the People’s Republic of Bangladesh 2008.

3

coastal areas. UNDP is also supporting the Community-Based Adaptation to Climate Change

through Coastal Afforestation in Bangladesh as a follow-up of the National Adaptation Program

for Action (NAPA). It may be noted that the government plans establishing 500 meter width

mangrove afforestation as a cost effective method to protect embankments in front of sea-facing

polders. Currently, approximately 60 km of the total 957 km of embankments along sea facing

polders are protected by mangrove forests. These include some forest belts that are degraded.8

This indicates the need of afforestation program for the coastal areas of Bangladesh.

9. While the Government is planning to increase the afforested and reforested areas, the

major challenge remains in ensuring proper management and monitoring of existing forest

resources. The improvement of existing forest resources management requires significant

capacity building and sector reform. The specific sector reform activities in forestry include

analytical inputs such as revise of forestry sector plan, establish forestry inventory and

monitoring, ensure local communities participation and institutional strengthening for better

planning and management. These activities are critical because most reforms are well-designed

but proven to be difficult to implement in Bangladesh. Reforms without sector investment also

do not normally get adequate attention in the government system. If investments are not

continued for afforestation and reforestation, Bangladesh may not retain the existing deforested

land for future plantation. Delay in afforestation and reforestation will increase the climate

vulnerability and further reduce the potential for carbon sequestration. As such, afforesting and

reforesting accompanied by improved forest management and participation of forest dependent

communities is critical for addressing the challenges of vulnerability to climate change in

Bangladesh and also preparing the BFD to mainstream climate change in planning and

management of future forestry investments.

Institutional Context

10. Forest legislation in Bangladesh dates back to 1865, when the first Indian Forest Act

was enacted by the British Raj. It provided for protection of tree, prohibition of cultivation, and

grazing in forest areas. A comprehensive Indian Forest Act was formulated in 1927. It aimed

at progressive commercialization of forest use for revenue maximization and expansion of

agricultural land at the expense of forests for commercial farming, ignoring traditional rights of

local communities over forest resources.9 Following Bangladesh’s independence in 1971, an

amendment of the Forest Act of 1927 was drafted in 1987 and approved in 1989. The Forest

Act was further amended in 2000 and some major changes have been brought in the Act. In

addition, Bangladesh adopted the first National Forest Policy in 1979 with the objective of

providing greater protection to forests, and placing more emphasis on conservation of the

country’s forests, whilst developing its rural and industrial economies. However, this policy had

largely remained unenforced, resulting in little changes from the traditional colonial-industrial

approach.

11. In 1994, BFD under the Ministry of Environment and Forests (MoEF) introduced a new

policy that represented a marked shift in the approach to forest management. Its stated

objectives are to contribute to sustainable development and poverty alleviation through people’s

8Economics of Adaptation to Climate Change, Bangladesh Country Study. The World Bank Group 2010. 9Forests and Forestry” in Bangladpedia, The Encyclopedia of Bangladesh (accessed April 28, 2012 at http://www.banglapedia.org/httpdocs/HT/F_0158.HTM)

4

participation in forest protection and management, and support for forestry development from a

broader sector of society. Social Forestry (SF), a unique benefit sharing mechanism for the

community was introduced to share forest based resources (for both non timber forest products

and major forest products) through Forest (Amendment) Act 2000 and the Social Forestry Rules

(approved in 2004 and amended in 2010 and 2011). In addition to the income and employment

generation, SF introduced temporary community rights which are essential for sustaining local

community interest to protect the forest and to optimize the multiple use values as standing

forests rather than clearing it for other land uses. However, existing guiding principles and

policies on forest management and overall forest sector planning are not in harmony with new

incentive mechanisms that are being adopted in social forestry around the world for securing

local community participation in sustainable forest management.

12. In the broader context, forest management in Bangladesh has lacked a consistent plan or

framework demonstrated by weak adoption of Forestry Master Plan and subsequent Forest

Management Plans. For example, the current Forestry Sector Master Plan for the period 1995-

2015 has not gained substantive traction as a guidance tool for managing the forest sector. The

Master Plan which was to provide the road map/framework for optimizing the forestry sector’s

contribution to stabilize environmental conditions and assist economic and social development

has not been reviewed or updated routinely to reflect the new and emerging dimensions of

forest management. As a result, the Plan does not cover new and changing paradigms for social

and participatory forestry, climate change impacts, water resource management, biodiversity

and wildlife conservation, institutional and capacity needs, new financing for forest

management such as carbon financing, REDD and REDD+, etc. Also the absence of a

systematic and routine inventory and monitoring of forest resources weakens the baselines data

for proper forest sector planning. Data when exist, are often scanty, outdated or unreliable10

.

Forest inventory and assessments have been undertaken on an ad hoc basis with no formal and

regular resource monitoring and assessment capability within the Forest Department.11

Existing

data on forest growth rate, forest area, rate of forest loss, forest density are inconsistent or have

significant margins of error. Hence obtaining reliable information on the country’s progress

with slowing deforestation and forest degradation is severely impaired.

13. Considering that coastal and hilly areas are ecologically sensitive and extremely

vulnerable with climate change already manifesting, adhering to a structured approach to

development planning and disaster management is essential. Uncoordinated and disparate

development interventions for afforestation could potentially lead to net degradation of coastal

natural resources with the risk of excluding poor and vulnerable sections of local communities’

from accessing natural resources to support their livelihoods.12

C. Higher Level Objectives to which the Project Contributes

14. The project is aligned with the Bangladesh Sixth Five Year Plan (FY2011-FY2015) with

the specific tasks of conducting climate resilient afforestation and reforestation of hill forest

10 Forest data sources are disparate with varying levels of reliability. Systematizing forest data will help solve the problem with stove piping. 11For example, a detailed assessment of coastal forests was carried out during 1984-85 with no follow-up resource assessment and monitoring.

The Food and Agriculture Organization (FAO) supported another assessment of the national forest and tree resources during 2005-2007 by

using a sampling method and focusing mainly on village forestry. 12 Especially with integrating fisheries and forest management

5

land, coastal areas and plain land forest and creating the Coastal Green Belt and enhancing

access to input materials, including seeds and seedlings to prevent the extent of damage by

cyclones and tidal surges. In addition, the project supports the Bangladesh Climate Change

Strategy and Action Plan (BCCSAP) of 2009, which integrates climate constraints and

opportunities for economic and social development of the country and based on six pillars.13

15. The proposed project will be implemented with grant funding from the Bangladesh

Climate Change Resilience Fund (BCCRF), which was established in 2010 to implement

programs in line with the Bangladesh Climate Change Strategy and Action Plan (BCCSAP).

16. The project is also in line with the second pillar of the World Bank’s Country Assistance

Strategy 2011-2014 (CAS)14

: Reduce Environmental Degradation and Vulnerability to Climate

Change and Natural Disasters.

II. PROJECT DEVELOPMENT OBJECTIVES

A. PDO

17. The project development objective is to reduce forest degradation and increase forest

coverage through participatory planning/monitoring and to contribute in building the long-term

resilience of selected communities in coastal and hilly areas to climate change.

18. The project development objective will be achieved by: (i) establishing newly afforested

and reforested areas using climate resilient species to work as windbreak against cyclones; (ii)

strengthening and diversifying alternative livelihoods of forest-dependent communities; and (iii)

improving the institutional capacity of the forest department to sustainably manage forest

resources in the face of the climate change.

B. Project Beneficiaries

19. The primary beneficiaries of the project are the communities living close to the target

areas, as the afforestation and reforestation will work in the long-run as the natural green belt

(wind breaker) against cyclones and contribute in stabilizing denuded land. Participating

communities will be selected based on clear criteria, such as proximity to areas to be afforested

and reforested, poverty level and degree of impact from climate changes. The project will

directly support the communities by creating around 3.18 million work days in the

afforestation/reforestation program and rehabilitation/reconstruction of office infrastructure.

Around 6,000 poor and forest dependent households in 200 communities will participate in the

alternative livelihoods support program to reduce their dependence on forest resources. These

households will be identified on the basis of participatory wealth ranking and their dependence

on forest resources. Women headed households and other vulnerable groups will be given

priority. The communities close to buffer zone and strip plantation will benefit through their

direct participation in the social forestry program. Around 15,000 forest dependent people will

13 The six pillars: (i) Food security, social protection and health; (ii) Comprehensive disaster management; (iii) Infrastructure development; (iv)

Research and knowledge management; (v) Mitigation and low-carbon development; and (vi) Capacity building and institutional development.

The project address most pillars of the project. 14

Report No. 54615-BD; Bank Board Date 8 July, 2010

6

receive training on participatory forest management, climate change risks and potential benefits,

basic entrepreneurial and business management skills. Finally, the project will develop the

capacity of BFD for better planning and managing the forest resources and 397 staff will

receive direct capacity building support.

C. PDO Level Results Indicators

20. The following outcome indicators are proposed. The indicators marked (*) are core

sector indicators. The results framework is in Annex 1.

a. Area restored or re/afforested (ha) (*);

b. Forest users trained (#) (*);

c. Increased household income of beneficiaries participating in alternative income-

generating activities;

d. Reforms in forest policy, legislation or other regulations supported (Yes/No) (*);

e. Government institutions provided with capacity building support to improve

management of forest resources. (#) (*); and

f. Direct project beneficiaries (number), of which female (percentage) (*).

III. PROJECT DESCRIPTION

A. Project Components

21. The project will focus on enhancing resilience of forest ecosystem and communities in

nine coastal and hilly districts.15

The project will have four components i) afforestation and

reforestation program; (ii) alternative livelihoods to support forest communities; (iii) capacity

development for forest resource planning and management; and (iv) project management. The

project components are designed to complement and support each other.

Component 1: Afforestation and Reforestation Program (US$22.0 million):

22. The objective of this component is to increase the afforested/reforested areas through

participatory forestry and co-management approach in the degraded forestland, marginal, fallow

and newly accreted land in coastal and hilly areas. In achieving the target of participatory

afforestation and reforestation, the component will also support the rehabilitation/

reconstruction of the existing field offices of the Bangladesh Forest Department (BFD).

(i) Participatory Afforestation and Reforestation(approximately US$19.0 million)

23. This subcomponent will contribute to afforestation and reforestation of total 17,000 ha

land and 1,672 km roadside plantation and include two types of forestry technologies (i)

15In coastal region, target geographic area will cover nine coastal districts out of the nineteen coastal districts of Bangladesh. These coastal

districts are Cox’s Bazar, Chittagong, Noakhali, Laxmipur, Feni, Barisal, Patuakhali, Barguna and Bhola. In the hilly area, the project will target

the core and buffer zones of the Reserved Forest Land of Chittagong District and Cox’s Bazar District. The BFD administrative divisions are different from the administrative districts and the above districts are divided in ten Divisional Forest Offices.

7

treatment and reclamation of coastal mangrove land, and (ii) treatment of the undulating terrain

within 20 km radius of coastal zone. Both types of land are affected by frequent cyclones. The

proposed afforestation/reforestation is not a conventional forestry plantation work – rather an

initiative with a clear climate change related productive purpose. The project will plant around

7,000 ha as part of stabilizing the newly accreted land (a type of delta formation), which are

subject to increasing incidence of cyclone and also extremely critical for ensuring a sustainable

mangrove succession process. This will subsequently reduce the impact of the cyclones. The

remaining around 10,000 ha afforestation and reforestation are selected for two districts that fall

between 15 and 20 km of coastline and are frequently affected by cyclones. The afforestation

and reforestation will provide livelihood options for local communities, which will help to

restore degraded natural forests and increase their resilience to climate change. The project will

promote locally proven nursery and plantation techniques with international best practices for

ensuring quality planting stock and successful plantation establishment. For nursery techniques,

the project has proposed specific “Sonneratia Appetala” practice, which is quite common in

mangrove forest, in both India and Bangladesh proven to help in stabilizing Char mangrove

lands. A nursery and plantation manual will guide the overall afforestation and reforestation

program. Special attention will be provided in careful selection of species to enhance resilience.

24. The afforestation and reforestation will be undertaken on available lands that are not yet

covered by other planned and on-going projects of BFD. The lands are already identified and

available to BFD. This component will support nursery raising, tree planting, 2 years of

maintenance, beneficiaries’ selection, and monitoring and evaluation of the plantation program.

25. Community engagement in the core and buffer forests in the hilly areas is critical to the

sustainability of the program. The project will engage local communities in afforestation and

reforestation activities throughout the project cycle. BFD will prepare a list of initial

participants (preferably with voter ID number) who are willing to work as laborer in plantation

program on daily wage basis. This list will be prepared through participatory process and each

participant will have a code number, which will be used as a reference number for payment.

The project will also pilot an open, inclusive and transparent process of participant selection of

social forestry program. Instead of selecting at the Upazila Office, the participants will be

selected consultative process with engagement of local governments and community institutions

in the identification, selection and affirmation processes at Union level. The criteria for the

participant selection are defined in the social forestry rules 2004 (amended in 2010 and 2011).16

These participants in a group will be recipients of the direct benefit of final harvest and will

enter into an agreement with BFD for maintaining the afforested/reforested areas.

(ii) Rehabilitation/Reconstruction of Forest Department Field Infrastructure

(US$3 million)

26. The objective of the subcomponent is to rehabilitate and/or reconstruct the existing field

level offices in the project area to ensure proper operation of BFD. The subcomponent will

follow the design and construction practices and that have no or little residual impacts on the

16(i) Landless, including those who may only have homestead land (vita) or who own less than 0.2 ha (50 decimals) of land, other than the

homestead land; (ii) destitute women (widows, deserted by husband and the like, who are living in poverty); (iii) socially backward/

disadvantaged in terms of socioeconomic condition, etc.; (iv) poor households belonging to the small ethnic groups; (v) poor forest villagers, who have been living within the forests and deforested lands; and (vi) Insolvent freedom fighters, or their insolvent heirs.

8

biological, physical and natural environment that could potentially support forest biodiversity

conservation by (i) minimizing and mitigating adverse impacts of infrastructure through

appropriate site selection and construction methods; and (ii) remediating and compensating for

any residual damage to have a net positive impact. The design options will consider solar

power system and rainwater harvesting. 43 field offices will be rehabilitated and/or

reconstructed under this component. It is anticipated that the civil works will generate local

employment of about 0.18 million work days.

Component 2: Alternative Livelihoods to Support Forest Communities (approximately

US$4.0 million)

27. The objective of this component is to improve and diversify non forest-based livelihood

opportunities of poor forest dependent households in selected forest communities. Scientists

have projected that the frequency of climate change event in Bangladesh is likely to impact all

natural resources and food security systems in the coming decades. There is realization at the

national level on the need for increasing the climate resilience efforts at the community level

particularly in degraded forest areas. The livelihood interventions under this project have been

designed as part of the resilience strategy at the community level. 200 community based groups

will be formed in project areas to demonstrate alternative livelihoods options that not only

conserve the newly planted areas but also help demonstrate reducing the dependency on forest

resources. Piloting such resilience approaches in project areas is critical to mitigate climate

change in a cost-effective way while providing multiple socio-economic and environmental co-

benefits.

28. The success of such resilience approach is mainly determined based on the type of

catalytic organization involved in community mobilization and institution building. Arannayk

Foundation (AF)17

will act as the key catalytic organization to provide such support to the

project since it has proven experience with the improvement of livelihoods of the forest

communities.

29. Third party monitoring and evaluation of AF’s work conducted in 2011 showed a

significant reduction of harvesting of forest resources among projects’ beneficiaries, with a 70%

reduction in logging and a 50-60% reduction in collection of fuel wood, 50-70% collection of

bamboo and canes, and up to 90% reduction of Jhum cultivation. Indigenous communities

participating in the projects almost fully stopped slash and burn practices. Data also shows

reduction of harvesting forest resources by 25% in participating communities in general.

Overall dependency on forest resources of poor households participating in their livelihood

programs has been reduced by three times. This livelihood initiative reduces pressure on

natural forests that can strengthen their resilience to climate change.

17

AF (also known as the Bangladesh Tropical Forest Conservation Foundation) is a not-for-profit making company (limited by guarantee and

not having a share capital). It was established in 2003 by the joint initiative of the Governments of the People's Republic of Bangladesh and the United States of America based on the provisions of the US Tropical Forest Act of 1998, which seeks to contribute to the conservation of

biodiversity assets of tropical forests. AF’s mandate is to promote conservation and restoration of tropical forests and forest biodiversity

through promoting alternative income-generating activities (AIGAs). It has Board of Directors with representatives of civil society, and of Bangladesh and US Governments. Its Secretariat is comprised of eight people, including four technical experts. It has started grant giving

activities in 2006 and by January 2012 it awarded more than 60 grants to organizations (i.e. NGOs, Universities, local government agencies) to

implement field-based projects in or around forests and protected areas. The average grant size provided to partner NGOs is around US$100,000, with some grants higher than US$500,000.

9

30. The design of the component builds on the proven approach of AF to improve

alternative livelihoods in forest communities. This approach is further supplemented by

additional mechanisms and arrangements to enhance sustainability of project results in

decreasing the pressure on forest resources and improving alternative livelihoods. These

changes include better targeting and selection of communities, a more inclusive selection

process of beneficiaries, and strengthening of livelihood activities by proactively channeling

them towards value-added economic activities with higher returns than from forest based

activities.

31. This component will target 6,000 households comprising no less than 25,000 people in

200 forest communities in 9 project districts with a clear and sound selection method. In the

first year, funds will be channeled to promote small-scale AIGAs at the household level (e.g.

goat and poultry rearing, vegetable cultivation, small scale trade). In the second year, the

project will identify the activities which have potential for being expanded at the community

level (e.g. establishing cooperatives for improving marketing channels for local products,

community based eco-tourism, making energy efficient cooking stoves, and agricultural firms).

The component will also improve linkages with BFD through mobilizing the targeted

communities into Forest Dependent Groups (FDGs). These FDGs will benefit from AIGA and

will also participate in social forestry and afforestation works. These groups are expected to

work closely with BFD and play an important role in protecting forest resources.

32. The component will finance i) development of major guidelines and information

materials, selection of communities and beneficiaries, developing work plans and budgets; ii)

social mobilization, FDG formation, organizational development and capacity building at the

community and Union Parishad level, formulation of livelihood plans and establishing mutual

rotating and saving funds; iii) livelihood capacity building and implementation of livelihood

activities; iv) identification of potential economic activities for scaling up and value adding,

support to value adding activities; v) alternative income generating activities that diversify

livelihoods and reduce exposure to climate risks; and vi) component management, monitoring

and evaluation, and reporting.

Component 3: Capacity Development for Forest Resource Planning and Management

(US$5.5 million)

33. The objective of the component is to improve the technical knowledge base on forest

resource assessment, program monitoring and long-term planning for the sustainable

development of the forest sector. This component aims to improve forest management practices

through three specific interventions: (i) improving the current management practices backed by

technological interventions; (ii) building the capacity of the department not only by deploying

appropriate manpower and training plans, but also by proper resource planning, resource

management and human resource (HR) assessment. Such capacity development plan would

also include specific requirements keeping in mind the climate variables evident in Bangladesh

for both mitigation and adaptation; and (iii) reviewing and revising the existing forest master

plan with evolving trend in forestry practices, socioeconomic, livelihood and climate resilience

attributes, increasing land use change pressures and new policies/strategies. This component

would ensure that subsequent forestry subsectors plans can be realistic and within the available

10

budget envelop and potential additional financing. These three interventions will require

extensive technical assessment, studies and stakeholder consultations.

34. The project will establish a forest resource assessment and monitoring system at BFD

with the use of Remote Sensing (RS) and Geographic Information System (GIS) technologies.

The system will be strengthened through cross field verification. This system will provide BFD

with (i) scientific and comprehensive data and information on existing resources in coastal and

hilly areas; and (ii) baseline for determining future afforestation/reforestation needs, thereby

contributing to better planning. The assessments will be carried out in the first and last year of

project implementation. They will determine the extent of changes in plantation cover or forest

density that have occurred during the project timeframe. In addition, the subcomponent will

help BFD to strengthen its overall monitoring system by formulating guidelines for quality

assurance of data, results, mapping and assessment of change in forest. This will be tested at the

pilot level as a demonstration in the application of new scientific knowledge and technology in

monitoring and assessment of forest resources. Furthermore, this component will also help

BFD in disclosing and disseminating the project related information in the website and print

media.

35. The project will support the review and update of the existing Forestry Sector Master

Plan (1995-2015). It will be done by adopting a consultative and inclusive process to prioritize

the relevant issues and challenges. The update will include contemporary issues of climate

change impacts, adaptation measures and carbon sequestration. The analytical studies such as

economic cost-benefit of afforestation/reforestation investment, impacts of climate change,

improved water management in hilly areas, land tenure issues in accreted afforested areas,

policy, institutional and governance structure of BFD for participatory approach and improved

forest management practices will be carried out to strengthen the knowledgebase and contribute

to the relevance of the master plan. The updated master plan will also highlight the importance

of other biota like fish and wildlife of the forest for their sustainable harvest and conservation.

It will explore potential financing support through bio-carbon financing for sustainable forest

sector planning and management. The plan will include a section on short, medium and long

term investment requirements.

36. The project will also strengthen the capacity of BFD and targeted communities to better

manage forest resources in confronting with climate change risks. This component will be

implemented in close coordination with the training circle of BFD and will support capacity

assessment and provide a strategy for capacity development. Some BFD officials and staff will

receive long-term training (i.e., one year masters/diploma program for seven officials18

and two

to three months training for twenty officials), while another 370 officials and staff will benefit

from short-term training on impacts of climate change on bio-diversity and forests, community

mobilization and participatory process, land use planning, methods to design and implement

policy, programs and projects in coastal and hilly areas. Special attention will be given to

quality assurance, RS, GIS, management information systems, performance management/

monitoring and evaluation. The targeted beneficiaries also will receive training on forest

conservation, common resource management and climate risk mitigation.

18 Five BFD officials and two MoEF officials

11

Component 4: Project Management (US$3.5 million):

37. This component will support the establishment of a Project Implementation Unit (PIU)

in BFD for implementation of component 1 and 3. The PIU will provide necessary support for

financial management, social and environmental safeguards, communication and procurement

to AF. The budget will cover consultancy fees, routine monitoring, travel, purchase of office

equipment and vehicles (including small water vessels), emergency maintenance works,

meeting costs, audits and other operating costs necessary for project implementation and

reporting.

B. Project Financing

Lending Instrument

38. The project will be funded through a grant provided by the Bangladesh Climate Change

Resilience Fund (BCCRF) and envisages a combination of technical assistance to forest

conservation and investments in increasing the afforestation and reforestation area. The Bank's

investment lending instrument selected for the proposed project is a Specific Investment Loan

(SIL).

Project Cost and Financing

39. Total project costs are estimated at US$35 million. BCCRF’s projected contribution is

US$33.8million. GoB will provide US$1 million in-kind contribution to the project to cover the

salaries of existing and deputed government staff who will work on the project and the cost of

the office space and existing logistics. AF will contribute US$0.2 million in cash for

Component 2. The table below provides detailed costs estimates, while Annex 2 contains a

detailed cost table.

Component Indicative

Costs

(US$M)

% of

Total

BCCRF

(US$M)

%

Financing

by BCCRF

GoB

(US$M)

Kind

AF

(US$M)

Component 1: Afforestation and Reforestation Program

20.9 59.71 20.9 100.00 0.00 0

Component 2: Alternative Livelihoods to Support

Forest Communities

3.8 10.86 3.61 95.00 0.00 0.19


5.225 14.93 5.225 100.00 0.00 0

Component 4: Project Management 3.375 9.64 2.375 70.37 1.00 0

Total Baseline Cost 33.3 32.11 1.00 0.19

Price Contingency (5%) 1.7 4.97 1.69 99.41 0.00 0.01

Grand Total 35 100.00 33.8 96.57 1.00 0.20

12

C. Lessons Learned and Reflected in the Project Design

40. The Bank’s past experience with Forestry Sector in Bangladesh: IDA supported the

forestry sector in Bangladesh through funding of three forestry projects between 1980 and 2001.

The first project was Mangrove Afforestation Project (Cr. 1042-BD; Credit Amount US$11

million, implemented between 1980 and 1986), which established about 30,500 ha of new

plantations and demonstrated the value of remote sensing (RS). Key lessons learned were: (i)

flexible rotation period for mangrove should be considered since growth is rapid up to 8-10

years and stops thereafter (presently assumed 18-20 years); and (ii) coordination among land

use agencies in the coastal areas should be established to prevent allocation of some mangrove

areas for use in other activities before the plantations are mature.

41. Upon project completion, IDA provided support to the sector by financing the Second

Forestry Project (Cr. 1634-BD; Credit Amount US$28.0 million) between1986 and1992. The

project’s principal objective of expanding the forest resource base was successfully met. The

main lessons were: (i) a five-year project period was too short, particularly in the absence of

annual monitoring; (ii) greater prominence needed to be given to people's participation in

project design and execution; (iii) new staffing and recruitment policies needed to be agreed at

the start of the project; and (iv) a clear institutional mechanism to allocate reclaimed coastal

lands to their most appropriate long-term use consistent with environmental protection.

42. The Forest Resources Management Project (Cr. 2397-BD; Credit Amount US$53.23

million) was implemented between 1992 and 2001, with satisfactory achievement. It established

the basis for an improved forest management system. The project also established 33,570 ha

mangrove forests and 36,500 ha of industrial plantation. The key lessons were: (i) effective

plantation management and achievement of optimal forest products yields require adequate and

timely provision of funds; (ii) sustainable management of mangrove plantations depends on

having a sound legal basis for tenure, within an agreed policy for disposition of the mangroves

and accreted land to their best land use;19

and (iii) effective development and management of

forests and protection of wildlife and protected areas must consider the needs and possible

involvement of marginal and landless people adjacent to the forests.

43. Lesson Learned used in Project Design: One of the major lessons learned from earlier

projects is to involve the forestry community in plantation process. The proposed project

design does involve the forest communities throughout the planning process and includes a

dedicated component to support alternative livelihoods to reduce their dependency on forest

resources. The technical studies under the component 3 takes into account lesson relating to

staffing and institutional mechanism to develop long-term sustainable plan to ensure efficient

allocation of project funds, strengthen design and implementation framework and enhance

opportunities for sustaining project outcomes.

44. The GoB instituted arrangements for reclaiming and stabilizing char/newly accreted

lands and BFD is in control of newly accreted lands for a minimum of 20 years during which

natural and artificial colonization of vegetation is encouraged over the char land to stabilize

while increasing its height above sea-level to make it habitable and or arable for agriculture and

19Such as protective belt, wood production, or conversion to agricultural or grazing use.

13

other land uses. Coastal afforestation programs are guided by the principle that 50% of forested

accreted lands will remain under forest cover in reserve forest status even after the twenty year

forestation and soil stabilization cycle. The remaining 50% would be returned to the Ministry

of Lands to demarcate for other land uses. This ‘50-50’ arrangement is to ensure that the

protective attributes of forest shelter belt system and the land stability in the coastal area are not

compromised after the 20 year period. The project has considered afforestation and

reforestation only in areas which are already under the forest department. In addition, the

project design includes organizing district level project launching meeting to improve the field

level coordination among different stakeholders.

45. BFD has already adopted a flexible approach about the rotation period especially in

buffer zone. Although even a five-year afforestation and reforestation project is very

challenging from implementation point of view, the project is designed only for around four

years considering the current grant agreement between the World Bank and the Government for

BCCRF. BFD has ensured proper maintenance and monitoring work beyond the project period.

46. The Bank’s recent engagement with Forest Sector in Bangladesh: In FY11, IDA

approved an Adaptive Program Loan on ‘Strengthening Regional Cooperation for Wildlife

Protection in Asia.’ Bangladesh received an IDA credit of US$36 million (Cr. 4909-BD) for:

(i) capacity building to address illegal wildlife trade through regional cooperation; and (ii)

habitat protection and management to generate regional conservation benefits and address the

human-wildlife conflict, thereby ensuring the conservation of wildlife in increasingly

fragmented habitats. In addition, the Bank is carrying out a non-lending technical assistance

activity on the Bangladesh Sundarbans that would enable GoB to develop an action plan in that

area to address climate change adaptation, biodiversity conservation, income growth and

poverty reduction.

47. Lesson learned from projects aimed at development of alternative livelihoods

activities in forest communities: The Alternative Livelihoods to Support Forest Communities

component draws on the experience of projects in Bangladesh and the South Asian region (see

Annex 8 for detailed report on lessons learned). Experience was gleaned and assessed in

consultations with development partners, BFD officials at the national and local level, NGOs

and community representatives. The key lessons learned and incorporated in the design of the

proposed component include:

a) Engaging communities and inclusion. A key element for targeting poor and

marginalized persons is the creation of resource users’ groups in conservation and

protection of natural resources. When successful, these groups overcome gaps in social

capital and reinforce positive dynamics in building trust, increasing useful feedback

mechanisms with external entities like BFD, mutual assistance, and implementation of

sustainable forestry practices. For livelihood improvement purposes, these consist of

households which mostly depend on illegal and informal extraction of forest resources

for subsistence and limited surplus trade.

b) Viability and sustainability of alternative income generation activities.

Targeted beneficiaries are poor, vulnerable households who lack education, and often

knowledge and skills about activities besides forest extraction. These households are

14

vulnerable to various shocks and natural calamities. The most frequent livelihood

activities in current and past projects relate to agriculture, such as cropping and

gardening on homestead or leased lands, goat and poultry rearing, cattle fattening, fish

cultivation; small scale trade and services, such as establishment of small shops,

providing rickshaw services, various cottage production, such as sewing, embroidering,

making cloth, weaving, making bamboo baskets, mats and furniture. While such

activities are low risk and do not require substantial inputs and knowledge, they might

not bring high returns to compensate from forest extraction livelihood activities. Thus,

empowering participating households through trainings and skill development is a very

important factor for sustainability of their alternative livelihoods activities. Business

skills and traits are not easy to locate in rural areas and local NGOs often lack

knowledge and expertise in development of income generating activities, especially of

value-added activities.

c) Financing arrangements. Group savings allow individual households to obtain

funds on conditions that are favorable for the start-up of small scale enterprises. There

have been many successful examples in Bangladesh with mutual rotating and saving

funds established and managed by groups, and repayment rates have been very high. AF

has successfully implemented all its projects based on that scheme.

IV. IMPLEMENTATION

A. Institutional and Implementation Arrangements

48. BFD will be responsible for the overall execution and implementation of the project.

AF will implement Component 2. BFD has past experience in implementing World Bank-

funded projects and successfully completed three forestry sector projects between 1980 and

2001. BFD is currently implementing the APL for Strengthening Regional Cooperation for

Wildlife Protection in Asia. However, BFD staff needs training in Bank requirements and

processes, since most of the mid-level officials (Divisional Forest Officer responsible for field

level implementation) are not experienced with implementation of Bank supported operations.

49. BFD will establish a full-fledged PIU headed by a Project Director (not below the rank

of the Deputy Conservator of Forests). The PIU will be equipped with relevant qualified

specialists who will receive market-based compensation. The PIU will support AF in

implementing Component 2. A Project Manager will be hired to coordinate day-to-day

managerial activities and provide technical guidance and input for different components. BFD

officials will work closely with specialists and will receive appropriate on-the-job training to

develop individual and institutional capacity to implement large scale projects. A Project

Implementation Committee (PIC) at BFD with AF representation will also be formed to ensure

overall coordination of project implementation. The PIC, chaired by the Chief Conservator of

Forests (CCF), will be responsible for: (i) reviewing the quarterly and annual progress of the

project based on reports prepared by the PIU and AF; (ii) guiding the PIU and AF on

implementation; (iii) reviewing and approving updated procurement plans and interim un-

audited financial reports (IUFRs); and (iv) making independent field visits to the project areas

to assess field implementation.

15

50. BFD’s ten Divisional Forest Offices, headed by the Divisional Forest Officers (DFOs),

will be responsible for implementing activities on the ground. Assistant Conservator of Forests,

Range Officers, Beat Officers and accounts/admin staff assist the DFO in implementing the

field level activities. Each DFO will be supported by one Community Mobilization Officer

(Junior Consultant) and one Account Officer (Junior Consultant) through project financing.

51. A high-level Project Steering Committee (PSC) will be formed by the Ministry of

Environment & Forests (MoEF) and the Secretary of MoEF will chair the PSC. The PSC will

comprise relevant Government Officials (MoEF, other relevant Ministries, Economic Relation

Division, Planning Commission, Implementation Monitoring and Evaluation Division,

Bangladesh Forest Department etc.), Executive Director of AF and a representative from the

World Bank. The PSC can co-opt additional members from civil society organizations having

relevant experience. The committee will meet at least once a year and if possible twice a year to

take stock of progress of the project and provide implementation advice and guidance and

policy directions.

52. AF, the primary implementing agency for Component 2. AF will develop the project

concept for the component, issue Request for Proposals (RFP) and advertise in mass media.

Using World Bank procurement guidelines, AF will competitively recruit specialized partner

NGOs to implement the component in the project areas. Selected NGOs will establish Project

Sites to reach about 200 communities and to establish 200 Forest Dependent Groups (FDGs).

53. AF will recruit a full time Project Coordinator and livelihood and business development

specialists on a short term basis. AF will ensure quality supervision of all Component 2

activities. It will conduct periodic monitoring of project implementation along established

indicators and review progress against work plans, budgets and other terms and conditions of

the BCCRF grant agreement. The partner NGOs will submit quarterly, annual progress reports

and completion report to AF Secretariat.

54. AF will submit all project guidelines, consolidated implementation quarterly and annual

reports, as well as monitoring reports to IDA for review and approval.

55. Financial Management. The PIU will have a financial management section headed by a

Financial Management Specialist (FMS). The FMS will report to the Project Director and will

be assisted by one Accountant (Consultant) in the PIU, ten Accountants (Junior Consultant)

based in the Divisions and required support staff. The existing Finance Manager of AF will be

responsible for overall FM management in component 2.

56. Procurement Arrangements. The PIU will have a Procurement Specialist (PS) who will

lead the procurement activities under this project and will report to the Project Director. PS will

work closely with 2 (two) procurement focal points assigned by 2 (two) implementing agencies.

Information on the procurement guidelines, planning, particular methods of goods, works,

consultancy, non-consultancy services, prior/post review requirements are included in the

Procurement Plan, which will be updated at least semi-annually, as mentioned in the

Procurement section.

16

57. Environmental and Social Safeguards Management. An Environmental Management

Framework (EMF) and a Social Management Framework (SMF) have been developed because

design and site selection of the specific activities under components 1 and 2 will be undertaken

during the implementation. Specific screening/assessment and mitigation plans will be prepared

and implemented. Assistant Conservator of Forests (ACF) based at each division level along

with Community Mobilization Officer (CMO) will monitor the social and environmental

safeguard issues and ensure the successful implementation of the environmental code of

practice, execution of social and environmental assessment and management plan.

58. Implementation plan. BFD and AF will jointly prepare an implementation plan in

addition to the procurement plan. This plan will serve as a living document, which will be

routinely updated to accommodate ongoing implementation changes. BFD and AF will have

detailed Implementation Manual, which will be approved by the PIC and the World Bank

before inception of the project.

B. Results Monitoring and Evaluation

59. The project will have a comprehensive monitoring and evaluation framework based on

qualitative and quantitative indicators for each sub-component. These include: plantation

coverage, income, employment, participatory management, capacity building indicators. Annex

1 presents the Results Framework and Monitoring to measure achievement of the PDO. It may

be noted here that the project has adopted the definition of ‘Resilience’ from the recent report

‘Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation’

published by Intergovernmental Panel on Climate Change (IPCC). ‘Resilience’ is defined as

the ability of a system and its component parts to anticipate, absorb, accommodate, or recover

from the effects of a hazardous event in a timely and efficient manner, including through

ensuring the preservation, restoration, or improvement of its essential basic structures and

functions.

60. Component 3 will contribute to improving BFD’s data quality assurance and monitoring

system. Forest inventory, socio-economic survey, RS and GIS will provide baseline and change

monitoring of increases in afforested and reforested area and impacts of the project on resilience

of forests and livelihoods of local communities.

61. The PIU will produce the quarterly and annual progress reports in an appropriate format

to the Bank no later than 15 days after the end of each quarter. The Project Director of PIU and

Executive Director of AF will be responsible for the preparation of quarterly reports on overall

progress, site specific progress, major issues, expected completion dates for civil works,

implementation of SMF and EMF, training, technical studies, procurement, and FM issues. The

reports will include: (i) comparison of actual physical outputs and disbursement with updated

forecasts; (ii) financial statements; and (iii) procurement report showing status and contract

commitments.

62. Monitoring and evaluation (M&E) for component 2 on alternative livelihoods will be

based on a relevant and clear-cut strategy and plan developed by AF. AF operates on the basis

17

of its specific rules regarding monitoring and evaluation.20

For this project, AF will develop an

M&E strategy and plan and train partner NGOs for implementation, starting from the base line

survey. M&E strategy and plan will also include arrangements and formats, as well as

indicators for monitoring of implementation processes and progress, the methodology for

evaluation intermediate and final outcomes, as well as impacts. The baseline study will

implement a difference-in-difference approach for comparison between treatment (project

beneficiaries) and control (non-beneficiaries) groups before and after project activities. AF

Secretariat will carry out periodic monitoring of project implementation and review progress by

undertaking field visits. The implementing partner NGOs will submit quarterly and annual

progress reports to AF Secretariat.

63. To monitor project progress, two full implementation support missions will be

undertaken annually by the Bank. Additionally, the Bank will monitor implementation

throughout the year. A mid-term review of the project will be carried out by September 2015.

An Implementation Completion Report (ICR) will be submitted to the Bank no later than six

months after the closing date. Additional detail on the World Bank’s support to project

implementation and monitoring can be found in Annex 5.

64. For an independent assessment on quantitative and qualitative performance of

implementation, third party monitoring is proposed for the project. In addition, BCCRF

secretariat will develop separate monitoring system for the projects to be funded under the trust

fund.

C. Sustainability

65. The afforestation and reforestation is one of the key priorities of the GoB, which is

reflected in the National Strategy, Bangladesh Sixth Five Year Plan (FY2011-FY2015) and

BCCSAP. The project will contribute toward achieving the national targets on afforestation and

reforestation and will complement on-going and future programs of the government. In

addition, the project would contribute to the sustainability of the forestry sector by: (i) updating

the Forestry Sector Master Plan to allow systematic and sustainable investment in the forestry

sector in near future; (ii) strengthening the participatory forest management through transparent

beneficiaries selection and capacity building of the Forest Department and its officials; (iii)

creating alternative employment generation and reduce dependence on forest resources; and (iv)

improving BFD’s system of data collection and monitoring and forest resource assessment.

66. At the end of each rotation period, the project beneficiaries from social forestry will get

a share of the timber products and a set percentage will be invested for new plantation as per the

existing rules.

67. However, there is still a risk of people continuing unsustainable forest harvesting,

especially after the Project completion. The project intends to mitigate this risk by seeking to

change the incentive structure that leads to illegal and unsustainable harvesting in several ways.

First, beneficiaries will be participating in SF program of the project and will monitor own

20

The rules can be found in Arannayk Foundation. 2011. Competitive Grant Making Procedure. January 2011. www.arannayk.org

http://www.arannayk.org/

18

afforested plots. Second, all livelihood activities to be approved must show reasonable chance

of obtaining a significantly higher return to the households than illegal forest harvesting. The

Project also introduces a system of successive tranches to incentivize creation of value and

higher returns through the livelihoods activities. Third, enforcement against illegal logging

must come through a realignment of the incentive structure that abets this behavior. The project

will aim to raise social pressure on beneficiaries’ illegal and unsustainable forest based

activities. Communities will be empowered through conservation awareness program as well as

be engaged in community forest use monitoring to be piloted under component 3. Finally,

mechanisms for social accountability among stakeholders will be prominent. There will be

enhanced transparency in the selection of beneficiaries through involvement of the community

and local government and holding of public decision meetings. Third party monitoring will be

employed to track the implementation of project activities, with particular emphasis on

inclusion and participation. A grievance Redress Mechanism established at the Forest

Divisional Offices would provide avenue for complaints and verification of project related

information. As an organizational mandate, AF will continue to work with communities to

protect the forest and biodiversity after the project has closed.

V. KEY RISKS AND MITIGATION MEASURES

A. Risk Ratings Summary Table

Risk Rating Risk Rating

Stakeholder Risk S 1. Project Risk

Implementing Agency Risk S 2. - Design L

- Capacity S 3. - Social and Environmental H

- Governance S 4. - Program and Donor L

Project Risk

- Delivery Monitoring and

Sustainability S

5. 6. 7. - Other (Optional)

- Other (Optional)

Overall Implementation Risk S

B. Overall Risk Rating Explanation

68. The overall risk rating of the proposed project is substantial. The key risks to achieving

the PDO fall under two main categories: project specific risks and risks in overall governance in

the country and in the sector. The first category includes risks mainly associated with

insufficient capacity of the implementing agencies in terms of logistics and adequate human

resources to manage a large scale project in remote locations, and weak financial management

system. To address these risks, the Project will recruit consultants for the PIU to undertake FM

and procurement trainings, and will provide training to the relevant BFD staff on Bank

processes and requirements, as well as monitoring and reporting systems. Control exercised by

the DFOs, selected for project implementation will be strengthened through collaboration

between the division’s own FM and the project resources. Other project-related and sector-

19

related potential risks include: (i) delays in procurement and other approval processes; (ii) poor

quality saplings and natural hazards; (iii) illegal deforestation; (iv) political and/or other

influence on beneficiaries’ selection; (vi) lack of accountability and oversight within the BFD;

and (vii) opposition and criticism from civil society and NGOs. The risk for implementation

(before mitigation) is substantial.

69. The second category of key risks relate to the overall weak governance in the country

and in the sector, including inefficient funding allocation for institutional development of BFD,

weak internal accountability and integrity mechanisms and insufficient citizen oversight. It may

be noted that some members of civil society and NGOs in Bangladesh expressed earlier their

concerns in regards to weak governance and accountability system in the BFD to implement

effectively conservation projects. In this regard, the Bank may be criticized for being associated

with the BFD in supporting and implementing this project. The detailed risk assessment is

presented in Annex 4: Operational Risk Assessment Framework (ORAF). Governance related

risks are presented in Governance Assessment and Action Plan in Annex 6. Several measures

have been suggested to mitigate the risks. These are: (i) strengthening the oversight function:

Bank review of audit reports and follow-up on actions taken by BFD to address audit

recommendations; (ii) apply RS and GIS technologies to understand the plantation coverage

under project; (iii) use independent third party monitoring for verification of project activities;

(iv) random spot checking etc.

VI. APPRAISAL SUMMARY

A. Economic and Financial Analyses

70.

71. The analysis highlights that the project’s success depends on: i) the ability to maintain

the forests during and after the end of the project; (ii) adopting coastal mangroves under certain

technical parameters, such as minimum width; and (iii) adopting appropriate species on hilly

areas that are able to provide good protection against landslides and erosion. Thus, the CBA is

followed by sensitivity analyses to uncertain parameters such as deforestation and profitability

rate of AIGAs.

21

20

72. Financial analysis. This section discusses the financial viability of the project, to ensure

that afforested lands will be maintained beyond the end of the project. First, the viability

depends on BFD’s ability to cover the costs related to the afforested areas (maintenance) after

the end of the project. An analysis at BFD level indicates a financial IRR of 36 percent. It is

expected that BFD and beneficiaries from the buffer and strip plantations will monitor and

maintain the forests after the project ends.

73. Secondly, the project’s financial viability depends on its ability to provide co-benefits

(e.g. through AIGAs grants) that would reduce pressure on forests. A crude analysis of AIGAs'

beneficiaries indicates that net returns from AIGAs exceed the forgone benefits from forests.

This is the minimum requirement towards maintaining the project’s forests. The experience of

Integrated Conservation and Development Projects (ICDPs) has shown that offering profitable

alternative activities may not be enough to prevent households from continuing environmentally

damaging activities22

. To avoid these problems, the project will incorporate lessons drawn from

the experience of other projects.23

B. Technical

74. The design of the project objectives, components and activities benefited from the

contribution of the government, communities, development partners, NGOs, and a cross-

sectoral IDA team. The proposed project would build upon the successful experience of IDA

forestry projects between 1980 and 2001 and recent experience of afforestation and

reforestation projects financed by the GoB and other development partners (DPs). Component 2

draws on the experience of similar types of projects in Bangladesh and in other South Asian

countries. The project supports second generation interventions to empower the forest

dependent communities to organize themselves, move towards sustainable livelihood options

and to involve communities proactively in forest management.

75. The objective of the project aligns with five24

of the six pillars of the BCCSAP and the

BCCRF Trust Fund which aims to ensure that citizenry are protected from climate induced

adverse impacts. The project scope highlights key issues confronting forest contribution to

mitigating and adapting to climate change in Bangladesh. First, climate vulnerability and

climate change would have multi-dimensional implications on i) vulnerable ecosystems

including the coastal and hilly zones; ii) poor and ultra-poor communities especially living in

fragile landscapes; and iii) reversing trends in economic growth and efforts to reduce poverty.

Second, forests have proven beneficial as biological shields in extreme climate events and for

22

This is because households may well undertake both, thus gaining the benefits of the alternative activity without forgoing those of the

damaging activity. Moreover, there may be a timing problem if the profitability of AIGAs is delayed. 23For example, the Bolsa Floresta Program in the Brazilian state of Amazonas adopted an approach based on conditionality: households that

commit not to deforest receive both assistance in establishing sustainable production systems in agricultural areas and a nominal monthly payment, conditional on complying with the no deforestation rule. 24

The project hinges on five of the six priority pillars of the BCCSAP through its focus on i) ensuring food security, employment and access to

basic services for the poorest and most vulnerable; ii) strengthening capacity of government and communities to manage natural disasters and

through establishment of natural shelter belts; iii) contributing to research and knowledge to predict likely impacts on ecosystems in including

the forest sector and rural economy; iv) expanding social forestry program on government and community lands and expanding the “greenbelt” coastal afforestation program with mangrove planting along the shoreline; and v) capacity building and institutional strengthening to enhance

government agencies (this case Forest Department), civil society and forest fringe communities to handle and mainstream climate change

control measures into development planning.

21

supporting rural livelihoods but, pressure on forest lands for other land uses such as agriculture,

housing, industry and infrastructure are continuing to increase. However, the declining forest

quality and cover cannot be assessed in the absence of reliable forest inventories. Lack of

research, sector and forest management plans, and coupled with scarcity of funding, poor

logistics and weak capacity of BFD field staff have resulted in unsustainable forest

management.

76. Recognizing these challenges, the proposed operation adopts a holistic approach that

draws on improving afforestation and reforestation techniques using scientific nursery and tree

out-planting methodologies involving communities; updating an integrated forest sector

planning and divisional forest management plans to guide both Government and private sector

forest investments; modernizing the capacity and institutional arrangements of BFD to

implement and sustain project outcomes; and supporting implementation of the social forest

policy.

77. While the focus will be on the coastal and hilly areas, the project interventions will

cumulatively tackle underlying weak capacity, research and forest inventory gaps that are

critical for sustainably managing the nation’s dwindling forests. The innovative design and

implementation approaches would generate replicable lessons in terms of using open,

transparent and inclusive project beneficiary selection process and integrating participatory

forest management arrangements with alternative livelihoods generation. The project outcomes

will lay the basis for follow up investments to sustain funding for this sector.

78. Component 1 is designed based on a detailed assessment of the availability of land,

species and costing for different kinds of plantation at different stages (seedlings raising, site

preparation, sapling planting, maintenance etc.) including transportation. An annual and

division-based wise broad plantation plan has been prepared. An implementation manual with

technical specifications of the plantation is under preparation and will be ready before project

launch. The manual will guide for proper site selection, site-species selection, site preparation,

quality control of planting materials, maintenance and protection.

79. Based on the experience of similar projects, component 2 will ensure the following

aspects: establishment of partnerships among local governments, BFD , local NGOs, private

sector and communities in afforestation, reforestation and livelihood development activities for

promotion of forest co- management and sustainability of efforts; mobilization of poor forest

dependent households into self-help groups and their empowerment through alternative income

generating activities for conservation and sustainable use of forest resources.

80. Component 3 focuses on improving forest management practices through specific

policy, planning and institutional interventions. This component will contribute in

strengthening the existing planning and monitoring system of BFD. The sector, policy and

institution specific studies to be carried out under Forestry Master Plan update will lead to a

sectoral dialogue to identify the major challenges to the existing forest management. The study

will also provide recommendations and action plans to address those challenges. The updated

master plan is expected to create an opportunity for BFD to design a sustainable forestry sector

program in the near future. Forest monitoring will be undertaken to establish a baseline and

demonstrate change achieved through the project. The methods will adopt new inventory

22

approaches, technologies and tools for ground survey of forest and tree resources, socio-

economic survey and remote sensing to monitor and map land-use and land-use change. The

techniques piloted within the project will provide the basis for planning a national forest

inventory.

C. Financial Management

81. Financial Management Risk. The Financial Management assessment was carried out

in accordance with the Financial Management Manual for IDA-financed investment operations

issued by the Financial Management Sector Board on March 01, 2010. The objective of this

assessment was to determine whether the two implementing agencies (i) Bangladesh Forest

Department (BFD) under the Ministry of Environment and Forest (MoEF); and, (ii) Arannayk

Foundation (AF) responsible for the overall implementation, management and monitoring of the

Project have adequate financial management capacity in place to execute this Project.

82. IDA conducted a financial management (FM) assessment in accordance with OP/BP

10.02 Financial Management and the FM Manual and prepared recommendations for the FM

system for this project (details of Project FM arrangements are in Annex 3). The project is

complex in terms of FM and the overall FM risk rating is substantial, considering the limited

experience of BFD in managing Bank-funded projects and the complex flow of funds to a large

number of people under the afforestation/reforestation program as payments for labor, as well as

for the transfer of grants under the alternative livelihoods program. AF will be responsible for

implementation of component 2. They have their own financial management, monitoring and

reporting system, which is considered as performing well. It has carried out similar projects in

the past and has adequate FM arrangements to support implementation of this project.

However, because AF has never worked with Bank-funded operations and the amount of this

project is relatively large compared with to the average size of projects managed by AF, the

trainings to existing AF FM staff will be essential to ensure that financial management is carried

out in accordance with WB requirements.

83. FM and Disbursement Arrangements. BFD, as the major implementing agency

responsible for coordination, monitoring and consolidation of financial reporting, will require

support in establishing proper FM system for this project. BFD will recruit qualified FM and

accounting staff for the project; financial management and reporting software will be installed

and adapted for the project; there will be arrangements made for regular monitoring by

independent monitoring organization and for annual audit of all project accounts to be

conducted by the Foreign Aided Project Audit Directorate (FAPAD).

84. The project funds will be disbursed to the designated bank accounts of BFD-PIU and

AF. PIU will further transfer funds into the bank accounts of DFOs in the Project sites. BFD

and AF will maintain accounts and records and prepare quarterly Interim Financial Reports

(IFR) and annual project financial statements for submission to the Bank.

23

D. Procurement

85. IDA assessment of procurement arrangements and capacity of BFD concluded that its

procurement management system and capacity are weak (details of procurement management

arrangements are in Annex 3). There are several factors attributing to the weakness: (i) no

procurement staff within the agency, inexperience of present staff with the World Bank-

financed projects and with administering of large and complex contracts; (ii) lack of

arrangements for information dissemination; iii) lack of system for monitoring delivery and

execution of contracts; and iv) lack of processes for handling complaints. In addition, there are

other potential risks for project’s procurement management, associated with vested interests and

political interventions. BFD will have to handle relatively large contracts and considering these

weaknesses, the risk for project procurement operations and contracts administration is rated as

“High”. Mitigation/improvement measures for the efficient procurement management of the

project have been developed and agreed with BFD.

86. Detailed procurement assessment of AF showed that although AF has no dedicated

procurement specialist, its process of recruitment and contracting of implementing partner

NGOs is adequate. This process is stipulated in AF’s Operating Manual (OM), which describes

the principles and processes for accountability, responsibilities and delegation of authority. It

includes process for handling contracts, monitoring and verification through NGOs’ quarterly

progress report, AF field visits and physical verifications.

87. However, AF has no experience in working with the World Bank-financed projects and

the sizes of its previous operations are significantly smaller than the amount to be managed

under the Component 2 (maximum contract size of contract for implementing NGO was

US$600,000). In participating communities, procurement of goods, works and services for

livelihood micro projects will be responsibility of the groups/individuals. AF will be provided

with the training on its requirements and processes.

88. Procurement for the project will be carried out in accordance with the World Bank/IDA

Procurement Guidelines and Consultant Guidelines dated January 2011. Procurement plans will

be reviewed and approved semi-annually by IDA. Quarterly progress reports on procurement

activities will be submitted to IDA.

89. Several measures have been taken to reduce the procurement risks. These are: (i)

Procurement Performance Monitoring Reports (PPMRs) will be prepared by BFD on a semi-

annual basis with indicators aimed at managing procurement-related risks; (ii) Qualified

Procurement Specialist will be recruited at PIU level to support both BFD and AF; and (iii) IDA

will monitor implementation progress through standard supervision and focused capacity

building based on reviews and PPMR findings.

E. Social (including Safeguards)

90. During preparation of the project, a thorough social assessment (SA) was conducted.

The project is expected to bring important opportunities and positive socioeconomic impacts

through creation of jobs, transfer of knowledge and skills, and expanding income opportunities

for the people living in the subproject areas. Component 2 will empower and strengthen social

24

capital of poor, women, vulnerable and marginalized members of forest dependent groups.

However, SA concluded that potential risks related to social issues are also high. These risks

are mostly associated with the following three issues: i) elite capture in process of selection of

beneficiaries for social forestry program and afforestation/reforestation activities, as well as of

beneficiaries for alternative livelihoods support program; and ii) continuation of illegal and

unsustainable harvesting of forest resources; and iii) issues related to resettlement and

indigenous people.

91. Project interventions aimed at community forestry are often prone to elite capture. To

guard against such elite capture, the project will develop beneficiaries’ selection process

decentralized to the Union Parishad level, with engagement of communities and local

government in open, transparent and inclusive selection and decision making process. If

successful, this approach will be institutionalized through modification of Social Forestry Rules.

Improved selection process and strengthened capacity of local governments, NGOs and

community members will have positive impacts in the process of pro poor decision making and

resource allocation.

92. While influential and richer people are often responsible for deforestation, it is also

widely documented that the poorest living in and around the forests often depend on forest-

degrading livelihood activities like collection and selling of fuel woods and other forest

products. These risks will be addressed through capacity building and awareness program, as

well as community run patrolling of forests.

93. Social Safeguards. Although project components do not involve involuntary land

acquisition by the BFD or AF, the project has been triggered the World Bank’s OP 4.12 on

Involuntary Resettlement. BFD has prepared a Social Management Framework (SMF) to

address any social safeguard issues that may arise due to the activities implemented under the

individual subprojects (details of SMF are in Annex 2). BFD and AF will undertake social

screening of all subprojects to identify potential social safeguard issues using guidelines and

screening, and adopt and implement impact mitigation measures as suggested in SMF.

Information on all subprojects will be consolidated and sent to the PIU. PIU will share this

information with the MoEF and World Bank on a quarterly basis. BFD will establish a

grievance redress mechanism (GRM) for all subprojects undertaken to address complaints and

grievances about any irregularities in application of the SMF guidelines for community

consultation, impact assessment and mitigation, beneficiary selection, plot size and quality,

eviction from public lands, and other related concerns.

94. The Project also triggers OP 4.10 on Indigenous Peoples (IPs). In the context of

Bangladesh, indigenous people are referred to as Tribal People. Accordingly BFD developed

the framework of Tribal Peoples’ Development Plans (TPDPs) as part of the SMF for the

subprojects that are to be undertaken in areas and localities inhabited by tribal people. It is

likely that projects sites in Cox’s Bazaar and Patuakhali might have limited number tribal

people living in settlements among the mainstream peoples. The project will follow the Tribal

Development Framework including a consultative process and appropriate documentation to

ensure “free, Prior and informed consultation leading to a broad based community support”.

25

F. Environment (including Safeguards)

95. The proposed project’s interventions anticipate positive long-term contributions to the

environment by protecting against soil and water erosion, working as a barrier during cyclone

and storm surge, reducing atmospheric pollution, and providing habitat for flora and fauna.

Other interventions include: (i) rehabilitation/reconstruction of field level offices; (ii) alternative

income livelihoods; and (iii) technical studies and capacity building. The project has been

categorized as ‘Category B’ project considering risk associated with the site clearance of

plantation, species selection, use of fertilizer/pesticides/herbicides in the plantation program,

minor construction related disturbance and community level livelihood options. Related

negative impacts are expected to be largely on-site and can easily be mitigated with proper

planning and sound environmental practices. It has been agreed that no pesticides or herbicides

will be used during plantation development. The Project has trigger three environmental

safeguard policies for environmental assessment (OP/BP 4.01), Natural Habitats (OP/BP 4.04),

and Forests (OP/BP 4.36).

96. BFD and AF have experience with conservation and exercise due diligence on

environmental issues. However, both BFD and AF need strengthening on the World Bank’s

environmental safeguard policies. The capacity weakness has been overcome by hiring

environmental consultant during preparation phase. An Environmental Management

Framework (EMF) has been prepared by BFD and AF based on consultations with the

stakeholders and community representatives. EMF describes general baseline condition and

typical environmental impacts from different types of activities during preparation, design,

construction and operation. It provides the guidelines to comply with national legislation and

World Bank safeguards policies, and defines the environmental requirements needed for

reconstruction/rehabilitation of infrastructure in the forest. In addition, EMF has laid out the

procedures for simple screening of the co-operative level AIG activities and environmental code

of practice for various project activities. The draft EMF and SMF have been disclosed on BFD

and AF websites (http://www.bforest.gov.bd/ and http://www.arannayk.org/otherdoc.php) for

public comments on May 17, 2012. The field level forest officials with the assistance of the

community mobilization officer will ensure proper implementation of the EMF and SMF. The

Third party monitoring firm will also crosscheck the EMF and SMF implementation.

http://www.bforest.gov.bd/

http://www.arannayk.org/otherdoc.php

26

Annex 1: Results Framework and Monitoring

Bangladesh: Climate Resilient Participatory Afforestation and Reforestation Project (P127015)

Results Framework

Project Development Objectives

PDO Statement

The project development objective is to reduce forest degradation and increase forest coverage through participatory planning/monitoring and to contribute in

building the long-term resilience of selected communities in coastal and hilly areas to climate change.

Project Development Objective Indicators

Cumulative Target Values Data Source/ Responsibility for

Indicator Name Core Unit of

Measure Baseline YR1 YR2 YR3 YR4

End

Target Frequency

Methodology Data Collection

Area restored or

re/afforested

Hectare(Ha) 0.00 1500.00 8750.00 17000.00 17000.00 17000.00

Annually,

Comparison

of satellite

data at

project

inception and

closing

Progress

Report, 3rd

party

verification,

Remote

sensing and

GIS mapping

BFD, Independent

Monitoring Firm

Area re/afforested

(sub-indicator)

Hectare(Ha) 0.00 1500.00 8750.00 17000.00 17000.00 17000.00

Annually,

Comparison

of satellite

data at

project

inception and

closing

Progress

Report, 3rd

party

verification,

Remote

sensing and

GIS mapping

BFD, Independent

Monitoring Firm

Forest users

trained

Number 0.00 0.00 3000.00 9000.00 15000.00 15000.00 Six Monthly

Six Monthly

Progress

Report, 3rd

Party

Verification

Training Firm,

BFD and

Independent

Monitoring Firm

27

Forest users

trained – Female

(sub-indicator)


Six Monthly

Progress

Report,

Training

Completion

Report, 3rd

Party

Verification

Training Firm,

BFD, Independent

Monitoring Firm

Forest users

trained - Ethnic

minority/indigeno

us people (sub-

indicator)


Six Monthly

Progress

Report,

Training

Completion

Report, 3rd

Party

Verification

Training Firm,

BFD, Independent

Monitoring Firm

Increased

household income

of beneficiaries

participating in

alternative

income-

generating

activities

Percentage 0.00 5.00 10.00 30.00 40.00 70.00

At baseline,

MTR and at

the end of

the project

Implementati

on

Monitoring

Reports and

3rd Party

Verification

AF, Independent

Monitoring Firm

Reforms in forest

policy, legislation

or other

regulations

supported

Yes/No No No No No Yes Yes Annually BFD Progress Reports

Government

institutions

provided with

capacity building

to improve

management of

forest resources

Number 0.00 0.00 1.00 2.00 2.00 2.00 Annually Progress

Report BFD

28

Direct project

beneficiaries


Six Monthly

Progress

Report, 3rd

party

Verification

BFD, AF &

Independent

Monitoring Firm

Female

beneficiaries (sub-

indicator)

Percentage 0.00 20.00 22.00 25.00 27.00 30.00 Six Monthly

Six Monthly

Progress

Report, 3rd

party

Verification

BFD, AF &

Independent

Monitoring Firm

29

Intermediate Results Indicators

Cumulative Target Values Data Source/ Responsibility for

Indicator Name Core Unit of

Measure Baseline YR1 YR2 YR3 YR4

End

Target Frequency

Methodology Data Collection

Increase in forest

coverage (km) for

strip plantation in

target areas

Kilometers 0.00 124.00 826.00 1672.00 1672.00 1672.00

Annually,

Comparison

of satellite

data at

project

inception and

closing

Progress

Report, 3rd

party

verification,

RS and GIS

mapping

BFD, Independent

monitoring firm

Community jobs

(million days)

created through

afforestation/refor

estation program.

Days 0.00 0.23 1.54 2.40 3.00 3.00 Annually

Progress

Report and

3rd Party

Verification

BFD, Independent

Monitoring Firm

At least 200

community

groups have been

targeted by the

Project through

capacity building

program and

small grant

funding, with at

least 80% of their

members being

poor and at least

50% women

Number 0.00 20.00 50.00 150.00 200.00 200.00 Annually

Implementati

on and

Monitoring

Reports; 3rd

Party

Verification

AF, Independent

Monitoring Firm

Guidelines for

program

monitoring

developed

Yes/No No No No Yes Yes Yes Annually

Progress

Report;

Approved

Guidelines/

Tools

BFD

30

Forest Master

Plan Revised Yes/No Yes No No No Yes Yes Annually

Monitoring

Report;

Master Plan

Forest

Department

Forest

Department

Official and

MoEF trained on

participatory

process, co-

management,

climate change

impact on forest,

biodiversity etc.

Number 0.00 0.00 50.00 125.00 275.00 397.00 Annually Monitoring

Reports BFD

The number of

cases of non-

sustainable and

illegal use of

forest resources

has been reduced

by 30% in and

around the Project

area through

project

interventions.

Percentage 10.00 10.00 15.00 15.00 25.00 30.00 Annually

Implementati

on

Monitoring

Report;

Forest

Department

Offense

Registry

Records

AF

Number of Forest

field offices

rehabilitated/Reco

nstructed

Number 0.00 0.00 0.00 10.00 35.00 43.00 Annually

Progress

Report and

3rd party

verification

BFD, Independent

Monitoring Firm

31


Results Framework

Project Development Objective Indicators

Indicator Name Description (indicator definition etc.)

Area restored or re/afforested This indicator measures the land area targeted by the Bank intervention that has been restored or

reforested/ afforested.

Area re/afforested This is a sub-indicator of the above indicator, which also measures the land area.

Forest users trained This measures the number of forest users and community members that have received capacity

building through training as a result of the project. The baseline value is expected to be zero.

Forest users trained - Female This is sub-indicator of the above indicator, which measures numbers of women members of forest

users and community have received capacity building through training as a result of the project.

Forest users trained - Ethnic minority/indigenous people This is sub-indicator of the above indicator, which measures numbers of ethnic

minority/indigenous people of forest users and community have received capacity building

through training as a result of the project.

Increased household income of beneficiaries participating in

alternative income-generating activities

This indicator measures the percentage of households who have been able increase their average

monthly income by at least 30% from non-forest related activities.

Reforms in forest policy, legislation or other regulations

supported

This indicator indicates whether the project supports any forest policy, legislation or other

regulations. In this case, this will be updating forest policy and strengthening monitoring system

Govt institutions provided w/ capacity building to improve mgt

of forest resources

This indicator measures the number of government institutions received the capacity building to

improve forest resource management. In this case, the institutions are BFD and MoEF.

Direct project beneficiaries Direct beneficiaries are people or groups who directly derive benefits from an intervention. This

includes the people who are employed as labor to the afforestation and reforestation program,

received training and AIG support. However, the beneficiaries of the climate change adaptation

benefit are not included here since it will be a long-term benefit.

Female beneficiaries Based on the assessment and definition of direct project beneficiaries, this sub-indicator includes

percentage of the beneficiaries are female.

32

Intermediate Results Indicators

Indicator Name Description (indicator definition etc.)

Increase in forest coverage (km) for strip plantation in target

areas

This indicator measures the length of the road targeted by the project that has been brought under

strip plantation

Community jobs (million days) created through

afforestation/reforestation program.

The indicator measures number of man-day work generated for poor vulnerable people as daily

labor in afforestation/reforestation program and rehabilitation/reconstruction of field offices

At least 200 community groups have been targeted by the

Project through capacity building program and small grant

funding, with at least 80% of their members being poor and at

least 50% women

This indicator measures the numbers of forest depended forest groups formation with agreed

criteria.

Guidelines for program monitoring developed This indicator identifies whether forest resource monitoring tools based on participatory

techniques and also using RS/GIS.

Forest Master Plan Revised This indicator checks the completion of revision of forestry sector master plan through

consultative process

Forest Department Official trained on participatory process,

co-management, climate change impact on forest, biodiversity

etc.

Numbers of BFD officials received long-term and short term training both locally and

internationally reputed institutions.

The number of cases of non-sustainable and illegal use of

forest resources has been reduced by 30% in and around the

Project area through project interventions.

The examination of official and unofficial record on illegal and non-sustainable forest resources

extraction issues.

Number of Forest field offices rehabilitated/Reconstructed The field level forest offices rehabilitated or reconstructed to provide better facilities to field level

staff for forest management

33

Annex 2: Detailed Project Description

1. The project is aimed at reducing forest degradation and increasing forest coverage

through participatory planning/monitoring and contributing in building the long-term resilience

of selected communities in coastal and hilly areas to climate change. It comprises four

components: i) Afforestation and Reforestation Program; ii) Alternative Livelihoods to Support

Forest Communities; iii) Capacity Development for Forest Resource Planning and Management;

and iv) Project Management. The project will be implemented in nine districts of Bangladesh:

Cox’s Bazar, Chittagong, Noakhali, Lakshimipur, Barisal, Pakuakhali, Barguna, Bhola, and Feni.

Component 1: Afforestation and Reforestation Program (US$22.0 million):

2. The objective of this component is to increase the afforested/reforested areas through

participatory forestry and co-management approach in the degraded forestland, marginal, fallow

and newly accreted land in coastal and hilly areas. While achieving the target of the

participatory afforestation and reforestation, the component will also support the

rehabilitation/reconstruction of the existing field offices of the Bangladesh Forest Department.

(i) Participatory Afforestation and Reforestation (approximately US$19.0 million)

3. The afforestation and reforestation are expected to contribute in better protecting lives

and property against cyclones and tidal surges in coastal and hilly areas. This will improve soil

stability and water retention in hilly areas. The afforestation and reforestation will be undertaken

in areas that are not yet covered by other planned, on-going and completed projects of BFD or

other development partners. Different types of afforestation with cyclone and surge adapted

species like mangrove plantation, Jhaw plantation, Golpata plantation, enrichment plantation and

strip plantation are planned for the coastal areas. The hilly areas will cover core zone plantation,

buffer plantation, and non-mangrove buffer plantation designed to reduce livelihood pressures on

degraded natural forests to allow restoration. Afforestation/reforestation will cover around 6,767

ha of lands and 1,672 km of roadside area in coastal zone and 3,878 ha of land in forests’ core

zones and 6,352 ha of land in buffer zones in hilly areas.

4. The subcomponent will include two types of forestry technologies (i) treatment and

reclamation of coastal mangrove land; and (ii) treatment of denuded forest lands on undulating

terrain within 20 km radius of coastal zone. Both areas are affected by frequent cyclones. The

proposed afforestation/reforestation is not a conventional forestry plantation work rather an

initiative with a clear climate change adaptation and mitigation purpose. The project area

includes newly accreted land in coastal areas, which are subject to increasing incidence and

impact of cyclones and also extremely critical for ensuring a sustainable mangrove succession

process. This will subsequently reduce the impact of cyclones on coastal communities. The

other parts of the project area in two hilly districts also fall within the 15 to 20 km range of the

coastal zone and are also frequently affected by cyclones. The project will promote locally

proven seed collection, nursery and plantation techniques in accordance with international best

practices for ensuring improved site-species matching, quality planting stock, site preparation

and successful plantation establishment, tending and protection. For the nursery technique, the

project has proposed specific “Sonneratia Appetala” practice, which is quite common in

34

mangrove forests, in both India and Bangladesh. This is proven to help in stabilizing Char

mangrove lands. A nursery and plantation manual will guide the overall afforestation and

reforestation program in both coastal and hill forests.

5. Table 2.1 presents types of plantations proposed under the project. This component will

support nursery raising, plantations, maintenance, cost of beneficiaries’ selection, and monitoring

and evaluation of the plantation program.

Table 2.1: Plantation types and areas for afforestation and reforestation

Plantation Type Areas to be Planted

Ha Km

Mangrove Afforestation 5,700 0

Mound Plantation 427 0

Jhaw Plantation 410 0

Golpata Plantation 635

Enrichment Plantation 260 0

Strip Plantation 0 1,037

Core Zone Plantation 3,878 0

Buffer Zone Plantation 5,925 0

Non mangrove (Buffer) Plantation 400 0

Total 17,000 1,672

6. There are over 300 indigenous species that are common in the natural terrestrial forests of

Bangladesh. Though each of these species is important and valuable for biodiversity, only a few

selected species that exhibited better performance will be used for the purpose of

afforestation/reforestation. The species that have demonstrated climate change resilience and

adapted to proposed afforestation and reforestation sites and meet the required objectives are to

be used in the project. The selection of plantation types and species will be based on technical

expertise and through community consultations. The ten different types of plantation that will be

raised under the project can broadly be divided into two major groups, namely mangroves and

non-mangroves.

7. Out of the 68 species of mangroves that are found in Bangladesh, only a few will be

recommended for the plantations. Most of these species are indigenous and well adapted coastal

species.

8. In non-mangrove hilly areas, two types of plantations will be raised: long rotation

plantations in ‘Core Zone’ area and short rotation plantations in ‘Buffer Zone’ area. The rotation

period in the Core Zone area will be 40 to 60 years. The species that yield valuable timber as

wood and those that will grow in the given areas will be used in raising plantations in the core

zone area. All are indigenous except Teak. The proportion of teak will not be over 10%. The

rotation period in the buffer zone area will be about 10 to 18 years. Fast growing timber species

will be used in raising plantations in buffer zone areas. All are indigenous, except Acacia.

Acacia species have been planted by BFD for more than 30 years and are highly recommended

by participating communities.

35

9. The available degraded forest land in project areas is already identified for project

interventions, GPS surveying is done, maps are prepared (manually) and site species matching

for the first year of plantation is already completed. Mixed species plantings (with age classes

and rotation lengths and varying end uses) will be promoted to strengthen resilience and spread

climate change and market risk. Preference will be given for planting indigenous species, but a

proportion of exotic species will also be planted to meet livelihoods and other local needs.

Timing and duration of seed collection and nursery practices vary markedly throughout the year

depending upon species, site conditions, purpose and season. Seeds from good standing stock

will be collected between January/February and September/October.

10. Nurseries in close proximity to the afforestation/reforestation sites will be promoted

(sown in September/October) to provide quality seedlings for planting from May to August,

depending on the monsoon season. As part of the silvi-cultural practices, weeding will be

undertaken in years 1 (3 times), 2 (twice) and 3 (once). The scheduling and technical

specifications for seed collection, nursery practices, site preparation, planting, tending and other

necessary silvi-culture practices is outlined in the “Nursery and Plantation Manual”. This will

include traditional and new scientific knowledge base and available technologies. BFD,

Arrannayk Foundation, NGOs and local communities will be engaged in participatory planning

and implementation of afforestation and reforestation.

11. The project will engage local communities throughout the project cycle, starting from the

planning phase. A new approach for selection of beneficiaries for the SF program will be

developed and tested to ensure inclusion of poor, vulnerable and marginalized groups. This

process will be decentralized to the Union Parishad level with engagement of communities and

local governments in selection, decision making and affirmation process. The implementation

manual describes the beneficiary selection process for the SF program. The selected

beneficiaries and other poor people living in the target geographic areas will be employed as

daily labor by BFD in nursery raising and plantation establishment. BFD will prepare an initial

participant list (preferably with voter ID number) of those shown their willingness to work in

plantation program on daily wage basis. This list will be prepared through participatory process

and each participant will have a code number, which will be used as a reference number for

payment arrangements. It is estimated that this will generate around 3.0 million work days. The

beneficiaries selected for maintaining the plantations will receive benefits from the earnings of

the afforestation/reforestation program. The key results section provides specific targets on

afforestation/reforestation.

12. The afforestation and reforestation program will also test innovative new approaches and

technologies. These may include: i) refining site-species matching; ii) broadening the climate

change resistant species to be used for afforestation/reforestation; iii) non-mangrove species

succession following siltation of coastal mangrove plantations; iv) improved seed sources for key

plantations species; v) improved nursery practices to provide quality seedlings; vi) alternative

planting mechanisms in different habitats; vii) improved silvi-culture (particularly thinning) in

productive plantations to balance volume/value for beneficiaries; viii) alternatives to improve

benefits to beneficiaries in social forestry mechanisms; and ix) new NTFPs (apiculture, oil

extracts, dyes) from afforestation species.

36

(ii) Rehabilitation/Reconstruction of Forest Department Field Infrastructure

(US$3 million)

13. The objective of the subcomponent is to rehabilitate and/or reconstruct the existing field

level offices in the project area to ensure proper operation of BFD. The field assessment of the

during the project preparation showed that most of the field offices are in poor condition due to

lack of regular maintenance budget. The subcomponent will consider the rehabilitation of the

existing infrastructure and if the structural condition does not permit the rehabilitation,

reconstruction will be considered in the same location. Since the areas are vulnerable to

cyclones, the field office should also function as a cyclone shelter for the field level staff in

remote areas. The following are some criteria proposed for new field infrastructure: (i) the

building should be circular in shape; (ii) the plinth should be at least 8 feet above the ground on

pillars; (iii) floor area should be about 200 square meters; (iv) it should have a doom shaped

roof; (v) it should accommodate at least 4 or 5 BFD staff; and (vi) it should have one common

toilet and a common cooking area.

14. In addition, the subcomponent will follow the design and construction practices that have

no or little residual impacts on the surrounding biological, physical and natural environment and

could potentially support forest biodiversity conservation by (i) minimizing and mitigating

adverse impacts of infrastructure through appropriate site selection and construction methods;

and (ii) remediating and compensating for any residual damage to have a net positive impact.

The design will consider solar power and rainwater harvesting system.

15. A Design, Supervision and Monitoring (DSM) consultant will be hired by BFD for

design and construction supervision under the subcomponent. The physical works will be

divided into 5 contracts, which will be managed through PIU with local DFO involvement.

Although there is huge demand in the field level for the rehabilitation/reconstruction of the field

level offices, the project will support only 43 offices, which are divided into ten divisional forest

offices as (i) Patuakhali Coastal Afforestation Division – 8 offices; (ii) Bhola Coastal

Afforestation Division – 7 offices; (iii) Noakhali Coastal Forest Division – 6 offices; (iv)

Chittagong Coastal Afforestation Division – 6 offices; (v) Chittagong North Forest Division – 3

offices; (vi) Chittagong South Forest Division – 3 offices; (vii) Cox's Bazar North Forest

Division – 3 offices; (viii) Cox's Bazar South Forest Division – 3 offices; (ix) Barisal Social

Forestry Division – 2 offices; and (x) Feni Social Forestry Division – 2 offices. It is anticipated

that the civil works will generate local employment of about 0.18 million work days.

Component 2: Alternative Livelihoods to Support Forest Communities (approximately US$

4.0 million)

16. The objective of this component is to reduce forest dependence and enhance resilience of

selected communities to climate change through the introduction of alternative and diversified

livelihood opportunities. This will reduce pressure on forests, thereby improving its sustainable

use, conservation and protection. The Arannayk Foundation (AF), also known as the Bangladesh

Tropical Forest Conservation Foundation, is a non-profit company (limited by guarantee and not

having a share capital) that seeks to contribute to the conservation of biodiversity assets of

tropical forests. AF’s mandate is to promote conservation and restoration of tropical forests and

37

forest biodiversity through promoting alternative income-generating activities (AIGAs). In

2006, AF developed an approach to support AIGAs for community-based organizations through

USAID-financed-grants, such as vegetable cultivation, small scale businesses, poultry rearing,

and handicrafts. Grants are typically given to communities to be channeled through AIGAs at

the household level, and are often supplemented by participatory savings. By 2010, AF was

actively supporting 27 projects, for a total of US$14 million. The approach proved successful,

with net returns up to two times the investment value.

17. AF will use the same approach in this component by targeting 6,000 households in 200

forest communities located mainly in forest buffer zones. The following criteria will be used in

selecting 200 forest depended communities:

• proximity to proposed afforestation/reforestation site (for instance, scoring will be based

on the range of distance from the site: 0-2km, 2-4; 4-5, and more than 5 km);

• proximity to natural forest (this is important indicator for defining forest dependent

communities and would use similar indicators for scoring: 0-2km, 2-4; 4-5, and more

than 5 km);

• level of current and potential impacts of climate change (proposed indicators are

occurrence of soil erosion/landslides, water retention, probability of tidal surges, and

salinity. They need to be further developed and properly ranged);

• size of area to be afforested/reforested (the minimum size of afforestation land close to

community should not be less than 25 acres= 10 ha to include 30 beneficiaries for

ALSFC component); and

• level of poverty based on the most updated statistical data, such as Poverty Map of

Bangladesh of 2009 and Union Parishad data on village poverty level.

18. In the first year, funds will be channeled to promote small-scale AIGAs at the household

level (e.g. goat and poultry rearing, vegetable cultivation, and small scale trade). In the second

year, the project will identify the activities which have potential for being expanded at the

community level (e.g. establishing cooperatives for improving marketing channels for local

products, community based eco-tourism, making energy efficient cooking stoves, and

agricultural firms). The component will also improve linkages with BFD through mobilizing the

targeted communities into Forest Dependent Groups (FDGs). These FDGs will benefit from

AIGA and will also participate in social forestry and afforestation works and to jointly protect

forest resources. Component 2 will link closely with component 1, to ensure improved linkages

between targeted communities and the social forestry program.

19. Specific activities include:

a) Project preparation activities. At the initial stage of project implementation, AF will

develop an Implementation Manual for the Component, a Targeting and Selection

Strategy (TSS), an M&E Strategy and Plan, and Mutual Rotating Saving and Loan

Fund guidelines. Based on the extent and location of the areas to be afforested, the

38

project area will be divided into ten or more project sites along the administrative

forest divisions. These project sites will be grouped into two clusters with an average

of four to five project sites in each forest division. AF will recruit at least two NGOs

to implement projects at the clusters’ level. The procurement of NGO services will

be carried out as per World Bank guidelines. The AF in cooperation with BFD and

PIU will provide an initial training for selected partner NGOs on all developed

component guidelines, including social and environmental safeguards, financial

management and reporting.

b) Social mobilization. Project resources will be targeted to communities most affected

by climate change, those located in fragile forest and wetland ecosystems, and poor

communities. AF will develop a TSS, which will stipulate requirements and content

for awareness campaign and materials to be disseminated in project areas, criteria for

selection of communities, such as proximity to forest land, condition of forest and

wetland resources, climate change trends, size of area to be affected by plantations,

and poverty levels. Special provisions will be made to inform and engage

communities of indigenous people. The TSS will also stipulate the approach and

selection process as well as eligibility criteria of beneficiaries for alternative

livelihoods support. Priority will be given to already established grass-root level

forest users’ organizations or self-help groups. If there are no such groups established

in selected areas, the Project will form community level FDGs. All beneficiaries will

be selected along the clearly defined eligibility criteria using a scoring system, such

as poverty and well-being level, level of dependency on forest resources, commitment

to participate in Project activities etc. Female-headed households will have a priority.

Each FDG should not exceed 30-40 members. A list of selected members will be

affirmed by communities to verify eligibility to avoid elite capture and misuse of

selection procedures. In addition, all selected beneficiaries will be interviewed in the

course of the baseline survey and results will be used for monitoring purposes, as well

as for cross verification of eligibility of selected participants.

The Project will facilitate creation of informal Community Patrolling Groups (CPGs)

with members of FDGs to organize and undertake community surveillance for

protection of natural and plantation forests under the supervision of BFD.

c) Supervision of component implementation and back- up support. AF will review

and approve work-plans prepared by partner NGOs. It will provide back up support

and ensure monitoring of component implementation. AF will recruit one additional

staff at the national level – a Project Coordinator and three existing officials will

provide a fixed time in each month to supervise and support implementation and

undertake field visits. AF will recruit specialized experts on a short term basis when

needed.

d) Development and implementation of M&E strategy and plan. AF will develop a

simple Monitoring and Evaluation (M&E) Strategy and Plan. It will be based on

AF’s own M&E approach, but be consistent with the monitoring to be undertaken by

BFD for forest status and change as detailed in Component 3. It will include

39

monitoring arrangements and survey formats, as well indicators for monitoring of

implementation processes and progress, intermediate outcomes, and final survey at

the completion stage for impact evaluation. Partner NGOs will implement baseline

study collecting profile of the project area, information on households, existing

livelihood practices, and poverty, etc. AF Secretariat will carry out periodic

monitoring of project implementation and review progress by undertaking field visits.

NGOs will submit quarterly and annual progress reports to the AF Secretariat. AF

Secretariat will submit consolidated reports to PIU and IDA.

e) Identification of livelihood opportunities and capacity building. This activity will

explore the potential for alternative livelihoods activities of the poor and extremely

poor, depending on the existing livelihood practices, traditions, agro-ecological

conditions, marketing opportunities in the project area. Groups will be provided with

intensive awareness and capacity building program on issues of (i) conservation and

protection of forest and wetland ecosystems; (ii) climate change adaptation; (iii)

group organizational development and management of mutual rotating saving and

loan fund; (iv) basic financial management and accounting with special program for

illiterate members of the groups; and (v) livelihood training on selected alternative

livelihoods activities (participants will be able to attend different skills trainings for

selecting the appropriate one and for diversification of their livelihood economic

activities). The alternative livelihoods activities will primarily focus on income

activities outside the forest sector, but will also consider non-extractive forest based

activities.

f) Value adding economic activities support. In the second year of implementation,

after groups have undergone training, AF will announce competition for selection of

organizations and/or individuals to provide support in value adding economic

activities that enhance rural livelihoods and have potential for scaling-up and

replication. The Project will provide resources to engage private and/or public sector

organizations or individuals, who in turn will assist the FDGs to access better market

information and latest technology, obtain higher returns for their produce, and help

the communities better align their produce with market demand.

Specific value adding economic activities envisaged under this direction include

support for eco-tourism, production and marketing of energy efficient stoves,

collective marketing of agricultural and handicraft products, and development of

cooperatives. This support will be provided with project financing and through

specific capacity building, counseling, providing market linkage support, establishing

public-private partnerships. Selection of activities will be carried out to prevent

additional pressure on forest ecosystems based on an IDA- approved environmental

safeguard checklist for non-eligible activities. These activities will aim to develop

and support effective partnerships with the private sector, public sector, and civil

society.

g) Set up and management of funds. The project will provide finances to the mobilized

groups for development of alternative livelihoods options to reduce their dependence

40

on forest and strengthen the participatory forest management. Project financing to

FDGs will be provided in two tranches. The first tranche will be allocated as soon as

groups have been formed and have undergone relevant training, developed own Rules

and Regulations on Management of Mutual Rotating Saving and Loan Program

(MRSLP), selected management group for the program and established own saving

fund. AF and partner NGOs will develop general strategy for the MRSLP, which can

be adopted and modified by FDGs. To ensure that the funds are used properly,

partner NGOs will provide close monitoring and ensure that formal and informal

grievance redress mechanisms are well developed and disseminated to

mitigate/capture problems at an early stage. The second tranche will be provided in

the second year to those groups which have proposals to scale up potentially viable

value adding economic activities.

h) Raising awareness. Within the first 6 months, a workshop will be organized to share

the project activities and expected output with community members, social elite, local

government and other stakeholders. In the following project years, periodic

workshops and meetings will be organized to demonstrate the results on the ground.

Communication materials (e.g. photographs, posters, leaflets) will be prepared and

distributed at workshops and other meetings for raising awareness. Use of national

and regional print and electronic media, as well as video shows at the community

level should also be included in awareness program.


(US$5.5 million)

20. Monitoring systems in forestry practices can be segregated into two distinct types, one is

the activity monitoring, which includes monitoring of the quantity and quality of forest

management actions such as seed collection, nursery practices, plantations establishment, silvi-

cultural practices and forest protection and another is resource monitoring, which largely

monitoring of baselines status and change in key biophysical parameters of the forest and tree

resources. The present standard practices of BFD for activity monitoring will be strengthened to

improve the scope of the existing data and information collection, database management and

reporting. However, BFD does not have any long-term or formal and regular resource

monitoring and assessment system. The past assessments were done on ad hoc basis based on

the availability of funds and specific needs of the time. The present monitoring system lacks

time series assessment data, which should be used as a baseline for the subsequent assessment.

BFD recognizes that the monitoring system of the forest resources should be strengthened along

with routine and periodic resource assessment/inventory.

21. The objective of the component is to improve the technical knowledge base on forest

resource assessment, program monitoring and long-term planning for the sustainable

development of the forest sector. This component aims to improve forest management practices

through three specific interventions: (i) improving the current management practices backed by

technological interventions; (ii) build the capacity of the department not only by deploying

appropriate manpower and training plans, but also by proper resource planning, resource

management and human resource (HR) assessment. Such capacity development plan would

41

include specific requirements keeping in mind the climate variables evident in Bangladesh for

both mitigation and adaptation; and (iii) review and revise the existing forest master plan in light

of the changing forestry practices and new policies/strategies and the available budget envelop.

These three interventions will require extensive technical assessment and stakeholder

consultations.

22. The component will help in improving the present knowledge on the climate projections,

impacts of climate change and vulnerability of the forest ecosystem as well as the vulnerability

of the coastal and hilly communities and their settlements in the context of climate risks. This

will lead to incorporation of adaptation strategies in future climate resilient coastal and hilly

region green belt program. It will include the non-timber forest product (NTFP) management as

an adaptation strategy along with a benefit sharing mechanism to ensure that the forest dependent

communities are insulated from the climate change related risks. The component will also

support development of a system in BFD to estimate carbon mitigation potential from the coastal

and hilly areas afforestation/reforestation.

23. The project will establish a forest resource assessment and monitoring system at BFD

with the use of Remote Sensing (RS) and Geographic Information System (GIS) technologies.

The system will be strengthened through cross field verification. This system will provide BFD

with (i) scientific information on existing resources in coastal and hilly areas that are to be

covered by afforestation/reforestation; (ii) future afforestation/reforestation needs, thereby

contributing to better planning. The assessment will be carried out in the first and last year of the

project. Comparison between the two assessments will reflect the changes in the forest growth

expected to take place during the project timeframe. In addition, the component will help BFD

to strengthen its overall monitoring system by formulating guidelines for quality assurance of

data, results, mapping and assessment of changes in forest areas. This will be tested at the pilot

level. The capacity strengthening in monitoring system will include the review of the existing

datasets, staff, infrastructure of the resource information management system (RIMS) unit of

BFD and its effectiveness in forest report mapping and land use planning for appropriate forestry

practices. RIMS unit will be strengthened as one of the key entity for preparing spatial and

temporal maps that will be used in regular monitoring plan. Furthermore, this component will

also help BFD in disclosing and disseminating project related information through website and

print media. BFD will procure services of firm/research institute/joint-venture to support in

carrying out the activities.

24. The project will support to review and update of existing Forestry Sector Master Plan

(1995-2015). ADB-funded the preparation of a Master Plan for the Forestry sector. A team of

26 national and international consultants worked from October 1991 to May 1993 and prepared

the 20-year Forestry Master Plan, which will expire in 2015. This plan provided a frame work

for forestry sector policy guidelines on activities relating to environmental as well as socio-

economic development. For implementing this master plan, roughly BDT. 80,000 million was to

be allocated during this 20 year period starting from 1995. Though various development projects

have been implemented since 1995, there was no systematic approach to implement the Forestry

Master Plan. The proposed update will include contemporary issues such as climate change

impacts, adaptation measures and carbon sequestration. The analytical studies such as economic

cost-benefit of afforestation/reforestation investment, impacts of climate change, improved water

42

management in hilly areas, land tenure issues in accreted afforested areas, policy and

institutional structure of BFD for participatory approach and better forest management will be

carried out to strengthen the present knowledge base and contribute to the master plan. The

updated master plan will also highlight the importance of conservation and sustainable

management other biota like fish and wildlife. It also will explore potential financing support

through bio-carbon financing for sustainable forest sector planning and management. The plan

will include a section on short, medium and long term investment requirements.

25. The project will strengthen the capacity of BFD and targeted communities to better

manage forest resources in order to confront climate change risks. This component will support

capacity assessment and will provide a strategy and framework for capacity development. This

will propose institutional restructuring needed within BFD. Under the project’s capacity

building program, some BFD officials and staff will receive long-term training (one year

masters/diploma program for 7 officials25

and two to three months training for 20 officials),

while another 370 officials and staff will benefit from short-term training on climate change

impact on bio-diversity and forests, community mobilization and participatory process, methods

to design and implement policy and programs/projects in coastal and hilly areas. Special

attention will be given to quality assurance, Financial Management (FM), RS, GIS, management

information systems, performance management/monitoring and evaluation. The targeted

beneficiaries also will receive training on forest conservation, common resource management

and climate risk mitigation. The component will support a general awareness campaign on forest

conservation.

Component 4: Project Management (US$3.5 million):

26. This component will support the establishment of a Project Implementation Unit (PIU) at

BFD for managing the component 1 and 3. The PIU also will provide necessary support for FM,

social and environmental safeguards, communications and procurement to AF. The budget will

cover consultancy fees, routine monitoring, office equipment and vehicles (including small water

vessels), emergency maintenance, travel and meeting costs, audits and other operating costs

necessary for project implementation and reporting. The government will contribute $1 million

in kind contribution for the project management. This contribution will include salaries of the

Project Director and other existing and deputed government officials working in PIU and field

level forest offices. The cost of the field level offices and available logistics will be included in

the kind contributions. The responsibilities and membership of different committees have been

explained in the implementation arrangement.

25 5 BFD officials and 2 MoEF officials

43

Table: Detailed Project Cost Component Component Description Unit Quantity Indicating

Costs

(US$M)

% of Total BCCRF

(US$M)

%

Financing

by BCCRF

GOB

(US$M)

Kind

AF

(US$M)

Component- 1 Afforestation and Reforestation Program:

Forestation in the Coastal Areas(Block Plantation) Hectare 7197 5.03 14.36 5.03 100 0 0

Forestation in the Coastal Areas (Strip Plantation) Km 1672 2.96 8.45 2.96 100 0 0 Forestation in the Hilly Areas (Block Plantation) Hectare 9803 8.95 25.57 8.95 100 0 0

Participant Selection Procedural Cost Nos. 500 0.14 0.41 0.14 100 0 0

Monitoring Cost LS LS 0.97 2.78 0.97 100 0 0

Rehabilitation and Restoration of FD Field Camp Office Building 43 2.71 7.74 2.71 100 0 0

Design, Supervision & Monitoring Consultancy Contract Sum 0.14 0.41 0.14 100 0 0

Component- 2 Alternative Livelihoods to Support Forest Communities

Program Monitoring - Arannayk Foundation MM 81 0.25 0.71 0.25 100 0 0

AIG Support through NGO LS LS 2.57 7.34 2.57 100 0 0

Community Grant LS LS 0.93 2.65 0.74 80 0 0.19

AIG& other Consultant MM 10 0.04 0.11 0.04 100 0 0

Component 3 Capacity Development for Forest Resources Planning and

Management by the FD:

Technical Study for Land use mapping, assessment and monitoring

of proposed afforestation and reforestation

Contact 1 0.40 1.14 0.40 100 0 0

Technical Study for strengthening RIMS and development of

Forest Resource Assessment and Monitoring protocol

Contract 1 0.40 1.14 0.40 100 0 0

Technical Study for developing communication strategy, awareness campaign and web-based information dissemination

system

Contract 1 0.15 0.43 0.15 100 0 0

Third party monitoring Contract 1 0.35 1.00 0.35 100 0 0

Technical Study for Review Forest Master Plan and different

sectoral studies for Forestry Master plan updating

Contract 1 0.70 2.00 0.70 100 0 0

Technical Study for developing strategy and time specific

investment plan

Contract 1 0.70 2.00 0.70 100 0 0

Equipment for RIMS, Networking with 10 DFO offices Contract 1 0.21 0.60 0.21 100 0 0

Consultants-International & National MM 174 1.01 2.89 1.01 100 0 0

Training for BFD Participants 395 0.89 2.54 0.89 100 0 0

Training for community Participants 15000 0.38 1.07 0.38 100 0 0

Workshop/meeting Number 10 0.04 0.11 0.04 1000 0 0

Component 4 Project Management

Consultant and Project Staff MM 1554 2.43 6.94 1.63 67 0.80 0

Vehicles, Boats and Equipment Number 140 0.56 1.60 0.51 91 0.05 0

Operation and Maintenance Costs Sum Sum 0.38 1.10 0.23 61 0.15 0

Project Total Base Cost 33.30 95.14 32.11 96.43 1.00 0.19

Price Contingency (5%) 1.70 5 1.69 99.41 0.00 0.01

Grand Total 35.00 100.00 33.80 96.57 1.00 0.20

44

Annex 3: Implementation Arrangements

BANGLADESH: Climate Resilient Participatory Afforestation and Reforestation Project

Overall Institutional Arrangements

1. The implementation of the proposed project will involve the following institutions:

• MoEF will be the coordinating ministry on behalf of GoB for this project;

• BCCRF will provide funds for this project as well as exercise broad fiduciary controls

and provide strategic guidance through its Governing Council and Management

Committee;

• BFD and AF will receive funds from BCCRF and be responsible for the

implementation of the project. AF will make cash contribution of $200,000 for the

Alternative Livelihoods to Support Forest Communities component; and

• The Government will contribute $1million in-kind contribution for the project

management.

BCCRF

2. BCCRF is a partnership between the Government of Bangladesh, Development Partners

and the World Bank (WB) established in May 2010with financial support from Denmark,

European Union, Sweden, Switzerland, and United Kingdom to address the impacts of climate

change. USAID joined the partnership recently. BCCRF will enable GoB to channel over

$170millionof grant funds to build resilience to impacts of climate changes.

3. The objective of BCCRF is to support the implementation of BCCSAP. GoB leads the

management and implementation of BCCRF. On behalf of the contributing Development

Partners (DPs), and in consultation with GoB, the World Bank is ensuring the due diligence

requirements on the BCCRF and ensuring efficient project implementation.

4. BCCRF has a two-tier governance system: (i) a Governing Council which provides

overall strategic direction and guidance to BCCRF and ensures its alignment with the BCCSAP;

and (ii) a Management Committee which is responsible for developing a work program, ensuring

that the BCCRF is implemented in line with the agreed implementation arrangements and

considering grant requests submitted by various line ministries and other eligible institutions.

5. Both the Governing Council and the Management Committee are chaired by GoB. A

secretariat, based in MoEF, is responsible for providing support to the Governing Council and

Management Committee and for providing advocacy, communication and coordination support

to all agencies implementing the activities funded by BCCRF.

6. The Governing Council is a high-level committee chaired by the Minister of MoEF and

comprise of Ministers from Ministry of Finance, Ministry of Food and Disaster Management,

Ministry of Foreign Affairs and Ministry of Water Resource; Secretaries from Ministry of

Environment and Forests, Economic Relations Division, Ministry of Finance, Ministry of

45

Planning; two representative from Contributing DPs; two representatives from civil society, and

the Country Director of the World Bank as an observer. The primary responsibilities of the

Governing Council are to provide advisory guidance on the program’s strategic goals and

alignment with BCCSAP, establishing grant criteria, and high-level issues such as, transfer of

fiduciary management responsibility to GoB; to oversee overall management and utilization of

BCCRF; approve projects to be funded by BCCRF and review results envisaged by the BCCRF.

7. The Management Committee is a technical committee chaired by the Secretary, MoEF

and includes two representatives from MoEF, one representative each from Economic Relations

Division and Planning Commission, two representatives from contributing DPs, a representative

each from the World Bank and civil society.

8. The primary responsibilities of the Management Committee are to review and endorse the

BCCRF work program and budget allocations; carry out a detailed review of grant requests

submitted by the secretariat; ensure that grant requests submitted are in-line with the agreed

policies and procedures; review and endorse the reports prepared by the BCCRF Secretariat for

submission to the Governing Council as well as for public dissemination. This high-level

Management Committee established for BCCRF will provide strategic direction, undertake

annual review of project implementation and address any issues hampering the progress. The

CCF, Project Director, and ED of AF are expected to join the Management Committee meeting

in which the project will be reviewed and discussed.

9. Bank is responsible for ensuring adequate fiduciary management, transparency and

accountability in executing BCCRF and the projects funded are implemented with due regard to

economy, efficiency and effectiveness. Bank is also providing some analytical and advisory

support for implementation of BCCSAP via BCCRF.

10. An Implementation Manual detailing the governance and operational mechanism for

BCCRF was agreed between GoB, DPs and WB. BCCRF became operational with the first

Management Committee meeting held in February 2011.

Project Steering Committee

11. A Project Steering Committee (PSC) will be formed by MoEF and the Secretary of

MoEF will chair the PSC. The PSC will comprise of relevant Government Officials (MoEF,

other relevant Ministries, Economic Relation Division ERD, Planning Commission PC,

Implementation Monitoring and Evaluation Division IMED, Bangladesh Forest Department

etc.), a representative from the World Bank, Executive Director of AF. The PSC can co-opt

additional members from civil society organizations having relevant experience. The committee

will meet at least once a year, if possible, twice a year to take stock of progress of the project and

provide implementation advice, guidance and policy directions. The key responsibilities of the

PSC will be:

To provide oversight, policy guidance and approve the project’s Annual Work Plan

and Budget;

To facilitate inter-agency coordination to ensure compliance and adherence to the

project’s development objectives;

46

To resolve disputes or conflicts related ``to the project, if any;

To approve any policy, regulatory and institutional recommendations from the

project.

To approve changes in the project implementation arrangements, if requires.

Project Implementation Committee (PIC)

12. A PIC at BFD will be formed to ensure overall coordination of project implementation.

ED of AF will be also a member of the PIC. The PIC, chaired by the Chief Conservator of

Forests (CCF), will be responsible for: (i) reviewing the quarterly and annual progress of the

project based on reports prepared by the PIU and AF; (ii) guiding the PIU and AF on

implementation; (iii) reviewing and approving updated procurement plans and interim un-audited

financial reports (IUFRs); and (iv) making independent field visits to the project areas to assess

field implementation. The proposed composition of the PIC is as follows:

Chief Conservator of Forest, BFD Chairman

Deputy Chief Conservator of Forest, Planning Wing, BFD Member

Deputy Chief Conservator of Forest, Education & Training Wing, BFD Member

Conservator of Forests, Chittagong & Barisal Members

Deputy Chief, MoEF Member

Concern Desk Officer, MoEF Member

Representative from Implementation Monitoring and Evaluation

Division (Agricultural Rural Development and Research Sector) Member

Representative from Arannayk Foundation Member

PD, PIU, BFD Member Secretary

Project Implementation Unit (PIU)

13. A full-fledged PIU headed by a Project Director (Conservator of Forest or Deputy

Conservator of Forest) will be established within BFD. The PIU will be equipped with relevant

qualified specialists (Financial Management Specialist, Account Specialist, Procurement

Specialist26

), compensated at market value. A Project Manager (Forestry Expert) will be hired to

coordinate the day-to-day managerial activities, provide technical guidance and input for

different components. The project will have provision for need-based consultants to provide

technical input and review different reports produced by the firm consultants. BFD officials will

work closely with specialists and will receive appropriate on-job training to develop individual

and institutional capacity to design and implement large scale projects.

14. BFD’s ten Divisional Forest Offices headed by the forest officers and will be responsible

for implementation activities on ground. Each DFO will be supported by one Community

Mobilization Officer (Junior Consultant) and one Account Officer (Junior Consultant) through

project financing.

26 Procurement Specialist will be hired for 36 months.

47

15. As per BFD procedures, 3 Forest Circle Offices (Chittagong Circle, Coastal Circle &

Social Forestry Circle) will supervise 10 Forest Division Offices activities at the field level. In

addition, 2 Management Plan Divisions located at Chittagong and Khulna will monitor the

afforestation and reforestation program regular basis.

16. AF will be the implementing agency for component 2. AF has experience in promoting

alternative livelihoods activities in protected, wetland and forest areas through capacity building

and providing grant funds to groups to match their savings for establishing revolving funds for

individual loans. It provides financial grants to organizations (i.e., NGOs, Universities and local

government agencies) to implement field-based projects in or around forests.27

AF will have

limited staff at the Secretariat to support implementation of the project, but will use part-time

professionals as required. A full-time Project Manager will be recruited by AF. AF plans to

contribute $200,000 in cash for the component 2 of the project.

17. The PIU will support AF in implementing component 2 and will be responsible for its

coordination with other project activities. AF will recruit specialized NGOs to implement the

component in the project area. The process will take place according to specific IDA

procurement guidelines, including call for proposals, evaluation, field verification and grant

agreement. The NGO staff input, cost of logistics and other administrative cost will be part of

the NGO proposal. AF Secretariat will conduct periodic monitoring of project implementation

and will review progress against work plan, budget and other terms and conditions of the grant

agreement by undertaking field visits. The NGOs will submit quarterly, annual progress reports

and completion report to AF Secretariat.

18. Table 3.1 summarizes the key tasks, educational qualification and experience required for

the key PIU officials and consultants.

27 By 2010, AF funded 57 grants, of which 30 were completed by 2009 and 27 were ongoing in 2010. Typically, a grant covers about $100,000 over a period of 1-3 years.

48

Table 3.1: Terms of Reference (TOR) for key PIU Staff and Consultants

Position Key Tasks Education/ Qualifications Experience and Skills

A. Bangladesh Forest Department (BFD)

Project Director

(PD)

• Provide overall leadership to a team comprising

staff and consultants in carrying out project

activities, including procurement and financial

management, reporting directly to the Project

Implementation Committee

• Plan, implement, manage, supervise, monitor, and

coordinate all project activities

• Coordinate with the Divisional Forest Officers

• Be responsible for regular reporting on project

activities to IDA

• Post- Graduation (Masters)

preferably in the field of

forestry or natural resource

management or related field

• Trained in forest resource

planning and management.

• Trainings on project

management, procurement and

FM are additional advantages

• Minimum 10 years’ experience in

project/program planning,

management and monitoring and

evaluation

• At least 5 years forestry experience

• Proficiency in writing and speaking

English

• Basic computer skills (Word, Excel,

etc.)

Assistant

Conservator of

Forest (ACF) -

01

• Assist the Project Director in overall monitoring

and evaluation of the project activities especially

the afforestation and reforestation.

• Working as the Procurement Focal Point of BFD

in the Project and work with the Procurement

Specialist in updating the procurement plan,

preparing bidding documents and requesting for

proposals, short-listing consultants, coordinating

bid evaluation committee meetings, facilitating

evaluation of bids/proposals and awarding

contracts

• Assist PD in procurement monitoring at the field

level

• Report directly to PD

• Post- Graduation (Masters)




• Training on procurement is

preferable (Otherwise, to be

trained within 3 months)

• Minimum 5 years’ experience of

project/program monitoring and

evaluation


English


etc.)

Assistant

Conservator of

Forest (ACF) -

02

• Assist the Project Director in overall monitoring

and evaluation of the project activities especially

the field office rehabilitation/reconstruction and

technical studies.

• Working as the Financial Management Focal Point

of BFD in the Project and work with the Financial

Management Specialist and Accounts for

preparing consolidated financial management

• Post-Graduation (Masters)




• Training on Financial

Management is preferable

(Otherwise, to be trained within

3 months)

• Minimum 5 years’ experience of

project/program monitoring and

evaluation


English


etc.)

49


reports

• Assist PD in Financial Monitoring at the field

level

• Report directly to PD

Project

Manager (PM)

• Coordinating day-to-day activities under the

project to ensure the quality of implementation and

ensure the required process and procedures

• Act as the Team Leader of the Individual

Consultants working in the PIU

• Organize monthly meetings

• Prepare progress reports and annual work plans for

submission to the National Steering Committee

• Extend secretarial service to the Steering

Committee

• Prepare and distribute consolidated, periodic

reports

• Take actions and monitor project activities

• Ensure the timely preparation and submission of

annual audit report

• Ensure accurate and timely compilation of project

indicators by each implementation team.

• Assist the Project Director to prepare project

progress reports two weeks prior to each World

Bank Implementation Review mission;

• Facilitate the preparation of the World Bank

standard Project Implementation Completion

Report (ICR).

• Facilitate procurement of goods and services, etc.

• Post-Graduation (Masters) on

Natural Resource, preferably

Forestry

• Trained in project management,

and M&E

• Minimum 7 years as Project

Manager/Project Director/Project

Coordinator or donor funded project

implementation experience for at

least 10 years

• Experience in forestry sector is

preferred

• Demonstrated capacity to work in

foreign aided projects in a team

environment


English


etc.)

Financial

Management

Specialist

(FMS)

• Operate of the project financial implementation

system following the WB guideline for the project

• Conduct financial and budget planning, Cost

accounting, auditing, etc. under the Supervision of

PD and Project Manager

• Post-Graduation (Masters) in

Accounting, Finance, MBA or

Post Graduation (Masters) with

Accounting Credibility

• Professional accounting

• Minimum 10 years as financial

management specialist or similar

position, preferably with IDA

project

• Have had hands-on experience in

50


• Introduce computerized accounting system

• Prepare of accounting and reporting and fund flow

for the project spending units and design reporting

format

• Monitor and ensure budget implementation

progress

• Ensure timely and efficient administration of

allocated funds and monitor flows of funds from

Bank to the project following appropriate

procedures

• Ensure control and management of proper records

of project assets and purchases, including

inventory records.

• Prepare annual and quarterly disbursement

forecasts and consolidate financial reports.

• Prepare of reports and supporting documents for

the external audit and internal audit in conjunction

with the Procurement Specialist

• Prepare and design a plan for implementing

computerized accounting system

• Report to PM and PD

qualification CA, CMA, ACCA

etc. are preferable

• Trained on operating Financial

Implementation Software

Microsoft or similar computerized

Accounting

• Proven track record of ability to

develop a Chart of Accounts

befitting the relevant computerized

accounting system and the report

• Strong interpersonal communicative

skills, experience in team leadership

and participatory management

• Ability to impart training to the

project staff on financial

management system


English


etc.)

Procurement

Specialist (PS)

• Prepare and update the procurement plan in

consultation with the PD and PM

• Consolidate requests for procurement of goods and

services.

• Prepare procurement documents such as request of

expression of interest, bidding document, and

request for proposals according to the IDA

Procurement Guidelines.

• Act as secretariat of Technical Evaluation

Committee (TEC), Proposal Evaluation

Committee (PEC) and Tender Opening Committee

(TOC)

• Ensure required approval in the government

system and also no-objections from World Bank

• Post-Graduation (Masters) in

Accounting, Finance,

Economics, MBA or B.Sc.

Engineering

• Advanced

academic/professional

qualification(s) in

procurement/purchasing and

supply chain or membership of

renowned institution(s) in the

field of

procurement/purchasing and

supply chain will be given

preference

• Minimum 10 years working as

Procurement Specialist or Similar

position, preferably with IDA

project.

• Experience in preparation of

procurement plans for Government

projects, bidding documents, RFPs

and evaluation reports following

donor agencies’ guidelines shall be

an added advantage

• In depth knowledge of technical,

commercial and legal aspects of

procurement in development

projects, financed by Government

51


for procurement documents

• Act as a member of the central committee(s) for

bids/proposals evaluation.

• Facilitate awarding of contracts

• Review procurement activities conducted in the

field level.

• Provide on the job training to the PFPs and other

filed level staffs dealing with procurement to build

their procurement management capacity.

• Coordinate and manage contract awards and

ensuring submission of contract award information

to Central Procurement Technical Unit- CPTU (all

contracts) and to IDA (for prior-review contracts)

• Prepare procurement performance monitoring

report on a regular quarterly basis

• Track progress of procurement activities against

the plans and highlight variations in progress,

record reasons and identify remedial actions

• Report to PM/PD

and the World Bank is preferred


English


etc.)

Communication

/Information

Specialist

• Review and assessment of the current state of

public awareness and education related to the

participatory forest management and to reduce the

degradation of the forest resources

• Review the work of the firm consultant on the

communication strategy development, the design

and implementation of public awareness

campaign and the web design

• Maintain regular communication with media,

NGOs and other stakeholders and disclose

information in public domain

• Prepare brochure, leaflet, newsletter on project

activities

• Advise the project management on media issues

• Report to PM and PD

• Post- Graduation (Masters) in

communications, journalism,

public relations, social

sciences, international

relations, or a related field

• A minimum of 3 years’ experience

in communications at the national

or international level, including

experience in media relations • Experience in natural resource

management is added advantages

• Excellent communication skills in

English and Bangla, both written

and spoken


etc.)

Accounting • Manage disbursement of loan proceeds following • Post- Graduation (Masters) in • Minimum 5 years in project

52


Expert the WB guidelines and in conjunction with the

relevant ministry

• Establish and manage the project Special Account

(including the preparation of account statements)

Maintain Books of Account

• Regularly review the books of accounts of field

level Accountant

• All other works related to project accounting and

financial management under direct supervision of

PD, PM and FMS

Accounting, Finance,

Economics, MBA or Post

Graduation (Masters) with

Accounting Credibility.

• Trained on Financial

Management/Accounting

software application

accounting and financial

management or similar

responsibilities, preferably with

IDA/ Donor project.

• Ability to work in foreign aided

projects in a team environment


English


etc.)

Accountant

(10

Accountants

will be based in

10 Divisional

Forest Offices)

• Responsible for maintaining the accounts for the

project at Divisional level

• Guide and train the field level staff for maintain

the financial records as World Bank Guidelines

• Carryout field cross-checking for the payments

made against physical progress

• Prepare monthly accounts report and submit the

report to the respective DFO

• Work under supervision of DFO, Account Expert

and FMS

• Bachelor (Graduation) in

Accounting, Finance, BBA or

graduation with accounting

credibility

• Minimum 3 years as Accountant or

Similar position, preferably with

IDA/ Donor project.




English


etc.)

Community

Mobilization

Officer (CMO)

(10 CMOs will

be based in 10

Divisional

Forest Offices)

• Support DFO in implementation of the

participatory afforestation and reforestation

program

• Facilitate the beneficiary selection process

through open public meeting

• Liaison with AF and NGOs for alternative

livelihoods activities

• Coordinate with Union Parishad and field level

forest offices

• Work closely and monitor the community training

and awareness campaign program

• Support environmental and social screening and

monitoring

• Work under supervision of DFO and PM


Social Science.

• Trained on participatory

approach

• Minimum 3 years in the field of

Community mobilization or similar

works, preferably with IDA/Donor

project.

• Experience in participatory rapid

assessment, focus group discussion,

participatory monitoring etc.




English


etc.)

53


Arannayk Foundation Secretariat

Project

Coordinator

(PC)

• Guide and coordinate NGO-based project teams in

all matters pertaining to the smooth operation of

the Project according to the Project Document and

Project Implementation Manual

• Coordinate with PIU of BFD and other

stakeholders associated with the different

components

• Mobilize necessary technical support and material

inputs from relevant resource organizations

(public, private, NGO) to promote alternative

livelihoods development of the forest-dependent

communities

• Oversee the preparation and implementation of

results based monitoring of the project

• Provide backstopping support in implementation

of training program

• Provide backstopping support in implementation

of training program

• Provide backstopping support in preparing annual

plan of operation of NGOs

• Prepare various technical reports of the project

• Document success stories and identify weakness

and potential areas for improvement

• Prepare quarterly and annual progress reports

• Work closely with AF Secretariat Staff, especially

under the guidance of the Senior Program Officer

and the PC shall be reportable to the Executive

Director of AF


Natural Resource Management

or any other related discipline

• With sound knowledge of

contemporary issues in

participatory forest

management and (rural)

livelihood development in

Bangladesh.

• Minimum 5 years’ experience in a

similar position in a relevant

institution

• Proven skills in the management

and coordination of NRM project

Familiarity with the ‘Social Forestry

Rules’ and modalities of

implementing social forestry

projects in partnership with the

Forest Department

• Proven skills in participatory

methods and tools are essential.




English


etc.)

54

Financial Management, Disbursements and Procurement

Financial Management (FM) Assessment

19. A financial management (FM) assessment was carried out to evaluate the overall

financial management environment prevailing in the country and within implementing agencies

BFD and AF. The assessment also identified the financial management arrangements under the

proposed project would need to be in place to meet the Bank's fiduciary requirements in

accordance with OP/BP 10.02.

FM Arrangements

20. The Bank will rely on the Government of Bangladesh’s existing accounting and control

systems, budgeting and auditing framework for implementation of this project. However, the

project will adopt the international best practices to improve the financial management system in

the project.

Budgeting

21. The annual budgets for each fiscal year will be prepared individually by FM staff of PIU

at BFD and AF. These individual budgets will be consolidated by the PIU under the supervision

of the Project Director on the basis of the approved procurement and implementation plans. The

original and the revised budget proposals will be submitted to the planning wing of MoEF. The

Project Director will undertake due diligence in approving realistic budget to ensure that the

project implementation is not suffered by the budgetary constraints while taking adequate care

that only the resources needed for the proposed implementation is budgeted. Budget will be

prepared using the MS excel based accounting system that would be place until the computerized

accounting system is adopted and made operational. Actual expenditures incurred under this

project will be monitored against this budget for each quarter; budget variances and their rational

will be reported and discussed in the Interim financial reports (IFRs).

22. Ministry of Finance (MoF) will monitor the budget implementation through issuance of

authorization for use of the designated account and quarterly release of GoB funds. Any genuine

necessary deviation from the budget will be met by obtaining the approval through the revised

Annual Development Plan.

Disbursement and Fund Flow:

23. This project will be provided 2 (two) Designated Accounts- Convertible Taka Account

(CONTASA) in Nationalized Commercial Bank of the Bangladesh. The DAs ceilings are

specified in the Disbursement Letter. The recipient may request for advances up to the ceilings

based on the project needs. The applications for uses of the advances will be supported by

SOEs, and records (e.g. invoices) evidencing eligible expenditures for identified contracts in

accordance with the Disbursement letter. This would be converted to IFR-based disbursement at

the option of GoB and the Ministry after the project successfully demonstrates capacity to

generate quality and timely IFRs. In addition, the project will be given flexibility to use other

55

disbursement methods including Reimbursement, Direct Payment, and issuance of special

commitment.

24. (i) Designated Account A: This account will be opened by PIU and the Project Director

or any officially designated official of BFD will be authorized to operate/withdraw funds from

this Designated Account to implement the Component 1, 3 and 4 of this project.

25. Component 1, Afforestation and Reforestation Program: This component will be

implemented by PIU in close coordination with ten (10) division forest offices. A separate bank

account for this project will be opened by each division forest office and the funds from the

Designated Account-A will be transferred into these individual bank accounts. These forest

offices are headed by the division forest officers (DFOs) and they will be authorized to

operate/withdraw funds from this bank account. The expenditures incurred by the division forest

offices will paid from these individual bank accounts.

26. The project will engage the services of local communities for afforestation and

reforestation activities. The funds will be withdrawn from the respective bank accounts of the

division forest office by the Range Officer for payments to the local community labors, local

transportation cost, purchase of planting related materials and collection of seeds. The amount

withdrawn by the Range Officer will be accounted as an advance in the books of accounts and

the expenditure against the same must be within 15 days. The funds that have remained

undisbursed will be adjusted from the next cash advance. The DFO and Assistant Conservator of

Forests will periodically monitor the payments made by the Range Officers.

27. Component 3, Capacity Development for Forest Resource Planning and

Management: The expenditures under this component will be incurred at the central PIU level

towards soft activities i.e. consultancies, training and workshops and the payments will be made

directly from the Designated Account-A.

28. Component 4, Project Management: The expenditures under this component will be

incurred at the central PIU level to support the establishment/operating costs of the PIU

including salaries of the personnel appointed for this project. The payments will be made

directly from the Designated Account-A except for salaries and travel cost of field based CMOs

and Accountants. The payment of CMOs and Accounts Officer will be made from the bank

account of the respective divisional office.

29. (ii) Designated Account B: This account will be opened by AF and the person

authorized by the Board of Directors will operate/withdraw funds from this Designated Account

to implement the component 2 of this project.

30. Component 2: Alternative Livelihoods to support Forest Communities: Under this

component, the payments will be made to the specialized partner NGOs as per the terms and

conditions of the consultancy contract. In addition, the grants will be released by AF from the

Designated Account into the bank accounts of the target local communities in 200 communities

for distribution to 6,000 identified beneficiaries on the basis of community proposals appraised

by the NGOs. The NGO will also facilitate communities in the opening of bank accounts. The

56

communities on a periodic basis will prepare the progress reports on grant utilization and will be

reviewed and compiled by the NGOs for submission to AF.

Financial Reporting (IFRs):

31. The project will submit 2 Interim Financial Reports (IFRs) to the Bank for the project

components implemented separately by BFD and AF. These IFRs will provide information on

the sources and uses of funds as per disbursement categories and project components. The

formats of Interim Financial Reports (IFRs) have been agreed by BFD and AF.

32. (i) The IFRs of the component 1, 3 and 4 will be prepared by the PIU on the basis of

expenditures incurred by all cost centers (including division offices) and will be submitted to the

Bank within 45 days from the end of each calendar quarter. The amounts disbursed by PIU to

the individual bank accounts of the division forest offices will be recorded as advances in the

IFRs and will be reported as expenditures only on receipt of the utilization certificates. The

process on monitoring of advances will be detailed out in the project implementation manual.

33. (ii) The IFRs of the component 2 will be prepared by AF on the basis of expenditures

incurred and will be submitted to the Bank within 45 days from the end of each calendar quarter.

The amounts disbursed to the NGOs, as per the terms and conditions of the contract and grants

released into the bank accounts of the target local communities in 200 communities will be

reported as expenditures in the IFRs.

Accounting and Financial Controls

34. The Treasury Rules and General Financial Rules of the Government and existing chart of

accounts/ economic codes followed in Government’s iBAS accounting system will be used for

the accounting and financial controls by PIU. There are clear guidelines prescribed by the

Ministry (MoEF) for the authorization and approval of financial transactions. The MoF’s

existing financial powers, authority and payment responsibility outlined for the development

projects will be followed meticulously by PIU for this project. The DFO is the treasurer and also

drawing and disbursement officer for respective division under BFD. In order to improve the

accountability and transparency of the financial system, the concept of forensic accounting will

be introduced into this project.

35. Component 1, 3 and 4: Separate books of accounts and registers will be maintained for

this project by the PIU and the division offices. The project will follow cash basis of accounting

to record the project expenditures using double-entry bookkeeping principles and the

transactions will be supported by approved vouchers. The books of accounts will be initially

maintained manually. Within three months of the project effectiveness a computerized

accounting system (off –the-shelf package) will be procured by PIU and chart of accounts will be

configured to this software to generate the financial reports for PIU and divisional forest offices.

These financial reports will be used for the preparation of IFRs.

36. The FM manual which will be part of the Implementation Manual will be ready by the

project effectiveness. This will provide complete details/procedures to be followed by the

57

project on the financial management arrangements: (i) Budgeting; (ii) Fund flows; (iii)

Accounting; (iv) Internal controls; (v) Financial reporting (quarterly IFRs); and; (vi) External

audit based on statement of audit needs agreed with Comptroller and Auditor General (C&AG)

of Bangladesh.

Funds Flow

Information Flow

37. Component 2: The AF currently has a computerized accounting system in place which is

being used by the entity. There are effective checks and balances, with adequate audit trails in

place to account, record and report the financial transactions. It has been agreed with the entity

Steering Committee chaired

by Secretary MoEF

PIU-BFD

Project Implementation Committee chaired by CCF

World Bank

Component-3 & 4 Component 1

Designated A/C-A

Designated A/C-B

Project Office-AF

Vendors NGO Bank

A/C Community Bank A/C

DFO’s

Range Officer

Beat Officer

Implementing

Activities

Component 2

58

that a separate module/field will be opened for recording of the expenditures incurred for this

project. The quarterly IFRs will be prepared based on the financial details/trial balances

generated from this system.

Staffing

38. It has been agreed with the project that the staff strength of the finance section will be

increased at the PIU through appointment of one qualified FM consultant; and one account

officer. These staff members will be adequate to maintain appropriate records for the project

expenditures, coordination with the respective division forest offices, preparation of IFRs and

project financial statements etc. In addition, the staff strength at the divisional forest offices will

be increased through appointment of one Accountant at each location who will work under the

close supervision of the division forest officer and will support the office in maintenance of

books of accounts, submission of periodic reports to the PIU. The job descriptions and the

requisite qualifications for these staff positions will be specified in the ToRs. Appropriate

provisioning for these staff positions have been made under this project. These selected staff

will be provided adequate training in financial management and disbursement related aspects to

meet the Bank’s minimum requirements.

39. The finance staffing at the AF is adequate and it has been agreed that the existing finance

staff will provide support for this project. The finance manager in AF will be the overall in-

charge for the financial management aspects of this project.

Internal Audit:

40. The Chartered accounting firm(s) will be engaged to carry out audits in accordance with

ToRs in agreement the Bank. The firm will be selected through appropriate competitive process

to be initially reviewed by the Bank. The audit will cover the expenditures incurred under all the

project components with a special focus on the amounts disbursed and spent by the division

forest offices.

41. Since a large part of the funds under component 1 are being spent in cash by 10

divisional forest offices (DFOs) for afforestation and reforestation activities, the scope of the

audit will be comprehensive and involve field-level review of financial operations and efficiency

of the internal control arrangements. The project performance, operational aspects including the

element of forensic accounting will also be covered under the audit.

42. The audits will be conducted semi-annually and will provide feedback to the project

management on any control weaknesses and issues, if any, that require management attention.

PIU at BFD and AF will take effective steps to address the weaknesses highlighted by the

auditors. It has been agreed that the internal audit reports along with the corrective actions taken

by the project to address the control weaknesses (if any) will be shared with the Bank.

59

External Audit:

43. The C&AG have mandate to conduct the audit for all the donor-financed projects in

Bangladesh. The annual external audit for the Component 1, 3 and 4 of this project will be

carried out by the C&AG through its Foreign Aided Project Directorate (FAPAD). A Statement

of Audit Needs (SAN) will be agreed with FAPAD within 6 months of the project effectiveness.

The PIU will be responsible for providing the audit report, project financial statements and

management letter to the Bank within six months from the end of the each fiscal year (July 01 to

June 30).

44. The audit report for the component 2 of this project will also be carried out by the C&AG

through its Foreign Aided Project Directorate (FAPAD). A Statement of Audit Needs (SAN)

will be agreed with FAPAD within 6 months of the project effectiveness. The Arannyak

Foundation (AF) will be responsible to submit the audit report, project financial statements and

management letter to the Bank within six months from the end of the each fiscal year (July 01 to

June 30).

45. The following audit reports will be received by the Bank and will be monitored in Audit

Report Compliance System (ARCS):

Table 3.1: Audit Reports Schedule

Implementing

Agency

Audit Report Auditor Due Date

PIU, BFD Audit report and project

financial statements

C&AG of

Bangladesh

December 31,

of each year

AF Audit report and project

financial statements

C&AG of

Bangladesh

December 31,

of each year

Project Audit Committee:

46. To ensure that the audit reports provided by the internal, operational and external audits

of the project have met ToRs and reports have been reviewed and audit recommendations have

regularly been followed up, a project audit committee will be set up under this project and will

meet at-least twice in a year. This committee will report its findings to the Project Steering

Committee.

Retroactive Financing:

47. The project has requested for a retroactive financing of $200,000. It has been agreed

with PIU that the payments made from August, 2012 till signing date will be eligible for Bank

financing, provided; (i) these activities are included in the project description/costing; (ii) the

procurement procedures of the Bank are appropriately followed to finance such expenditures;

and, (iii) these expenditures will be audited and a combined audit report for the first year

(covering expenditures for retroactive and proactive period) will be submitted to the Bank.

60

Public Disclosure:

48. In line with the Bank’s Access to Information policy, it has been agreed with BFD and

AF that the annual audit report and project financial statements of this project issued by the

C&AG of the Bangladesh and Private Auditor will be disclosed in the implementing agencies

website.

Project Supervision:

49. During the initial stages of project implementation, the FM supervision will focus on

compliance with the agreed action plan, including training on FM related aspects and addressing

any disbursement related issues. As implementation progresses, the supervision would involve

six monthly field visits to review the adequacy of the agreed Financial Management

arrangements, reviews of SOEs, IFRs, internal and external audit reports etc.

Financial Management Action Plan:

50. The following actions have been agreed with the implementing agencies:

Table 3.2: Financial Management Action Plan

SL.

No Agreed Actions Responsible Due Date

1 Required clearance and formalities for project

bank account opening BFD and AF in

coordination with

MoEF, MoF

Within 2 months of

Negotiations

2 Develop formats of Interim Financial Reports

(IFRs) in consultation with Bank BFD and AF Prior to Negotiations.

(Discussed and agreed

in Negotiations) 3 Appointment of one qualified FM consultant and

Account officer in PIU-BFD and 10 Accountant

in DFO under ToRs acceptable to the Bank.

PIU-BFD Within 2 months of

project effectiveness

4 Procurement of computerized accounting system

(off the Shelf) for PIU and Divisional Forest

Offices

PIU-BFD Within 3 months of


5 ToRs for Internal Audit acceptable to the Bank PIU-BFD Within 6 months of

project effectiveness 6 An agreement on Statement of Audit Needs with

C&AG (FAPAD) acceptable to Bank PIU-BFD and AF

in coordination

with C&AG

Within 6 months of


7 Training to PIU-BFD and DFO’s on Financial

Management aspects Bank Within 3-4 months

from project

effectiveness

61

Procurement

51. Total value of the project is US$35 million; BCCRF’s projected contribution is US$33.8

million. Procurement under this project will largely involve consultancy services, non-

consulting services, goods and works. Procurement for the proposed project would be carried

out in accordance with the World Bank’s “Guidelines: Procurement of Goods, Works, and Non-

consulting Services under IBRD Loans and IDA Credits & Grants by World Bank Borrowers”

dated January 2011 (“IDA Procurement Guidelines”) and “Selection and Employment of

Consultants under IBRD Loans and IDA Credits & Grants by World Bank Borrowers” dated

January 2011 (“IDA Consultant Guidelines”) as well as the provisions stipulated in the Grant

Agreement. For each contract financed by the grant, the respective procurement or consultant

selection method, the requirements on prequalification, cost estimate, prior review and time

frame are agreed between the Borrower and IDA within the Procurement Plan. The Procurement

Plan will be updated semi-annually or as required to reflect actual project implementation needs

and improvements in the capacity of BFD and AF.

52. The assessment of BFD’s procurement covered the legislative framework, procurement

planning, procurement processing, organizational functions and staffing, internal control and

support system, record keeping, and contract administration. The following weaknesses were

identified: (i) inexperience with IDA-financed projects except the recently commenced

Strengthening Regional Cooperation for Wildlife Protection Project (P121210); (ii) absence of

dedicated procurement staff within the agency to deal with procurement activities; (iii)

inadequate capacity for administering large and complex contracts; (iv) absence of processes for

handling complaints; (v) vested interests; and (vi) political intervention. In addition, the areas

comprising information dissemination, delivery follow up and payments will need to be

improved.

53. The assessment of AF’s procurement covered the policy framework, procurement

planning, procurement processing, organizational functions and staffing, internal control and

support system, record keeping, and contract administration. The following weaknesses were

identified: (i) inexperience with projects funded by Government funds or multilateral

development banks (MDBs); (ii) absence of dedicated procurement staff within the agency to

deal with procurement activities (very lean organization – required staff are hired on project

basis and requirement); (iii) inadequate capacity for administering large and complex contracts

(historically largest contract administered by AF costs less than $100,000); (iv) absence of

processes for handling complaints; (v) absence of documentation policy (except financial

records); and (vi) unfamiliarity with bidding documents of IDA or Government (Central

Procurement Technical Unit- CPTU).

54. In view of the weaknesses and the relative size of the contracts envisaged under this

project, the project is rated as “high risk” from the standpoint of procurement operation and

contract administration. Several measures to mitigate the risks are either in place or will be put

in place as described below. The procurement arrangements are described in the following

paragraphs.

62

55. Measures completed during project preparation include: (i) agreement with the agency

that most of the procurement will be centralized under the project implementation agencies,

namely BFD and AF; (ii) delegation of one person from each agency as Procurement Focal Point

(PFP) during project preparation and to work on procurement issues and report to PD on all

procurement matters during project implementation; (iii) finalizing the Procurement Plan during

appraisal mission; (iv) agreement on the Procurement Performance Monitoring Report (PPMR)

for procurement risk mitigation; and (v) incorporation of the PPMR into the Government’s

Development Project Proposal (DPP) for BFD component and the project proposal document for

AF.

56. Measures envisaged for grant effectiveness include: (i) Assigning PFPs; (ii) hiring a

procurement specialist/consultant with experience in international procurement of projects

financed by MDBs or bilateral development partners to support the BFD and AF on procurement

activities and guide PIU and AF on procurement issues for 36months with provision of extension

based on requirements.

57. The following measures would be carried out during implementation: (i) PFPs would

undergo national (and if practicable, international) level procurement training before significant

procurement takes place; (ii) BFD will submit semiannually Procurement Performance

Monitoring Report (PPMR) status report to IDA starting from six months after project

effectiveness; (iii) The procurement consultant will be a mandatory participant in the

bid/proposal evaluation committees; (iv) For contracts following IDA’s Procurement or

Consultant Guidelines, the latest editions of publicly available Standard Bidding Documents

(SBDs) and/or Request for Proposal (RFP) shall be used. For all contracts (either prior review or

post review), IDA’s standard format for evaluation report (or model format agreed with IDA)

should be used; (v) IDA will organize procurement orientation or training workshops as and

when required to enhance the procurement capacity of the project staff and members of the

evaluation committee; and (vi) The procurement plan will be updated semi-annually or as

required.

58. Methods for procurement of goods, works and non-consulting services. Except as

otherwise agreed in the procurement plan, works and goods and non-consulting services may be

procured on the basis of International Competitive Bidding (ICB). Procurement of goods, works

and non-consulting services with an estimated value that falls below the ceiling stipulated in the

Procurement Plan may follow National Competitive Bidding (NCB) and Shopping (RFQ).

Direct Contracting (goods/ works/ non-consulting services) and Single source Selection

(Consultants) would be allowed under special circumstances with prior agreement with IDA.

Force Account and Direct Cash Purchase following Bangladesh Procurement Rules, 2008

applicable mainly for payment of labor and goods respectively under participatory afforestation

and reforestation sub-component of the project. NCB would be carried out under IDA

Procurement Guidelines using procedures provided in Bangladesh Public Procurement Act 2006

(incl. 1st Amendment 2009) and the Public Procurement Rules, 2008 (as amended in August

2009) and use standard bidding documents satisfactory to IDA. The “Request for Quotation”

document based on the PPA is acceptable to IDA for local Shopping. NCB may be applied under

the following conditions: (i) post bidding negotiations will not be allowed with the lowest

evaluated bid or any other bids; (ii) bids should be submitted and opened in public in one

63

location immediately after the deadline for submission; (iii) rebidding will not be carried out

except only with IDA’s prior agreement; (iv) lottery in awarding contracts will not be allowed;

(v) bidders’ qualifications and experience requirements are mandatory; (vi) bids will not be

invited on the basis of percentage above or below the estimated cost and contract award will be

based on the lowest evaluated, compliant bid price from eligible and qualified bidders; and (vii)

single stage two envelope procurement system will not be allowed.

59. Methods for procurement of consultant services. Consultant procurement will follow

IDA’s Consultant Guidelines. The following methods will be applied: Quality and Cost-based

Selection (QCBS), Quality-based Selection (QBS), Fixed Budget Selection (FBS), Consultants’

Qualification (CQ), Least Cost Selection (LCS), Selection of Individual Consultant (IC) and

Single Source Selection (SSS). The short list of consultants for services estimated to cost less

than US$200,000 equivalent per contract may be composed entirely of national consultants. For

selection of any consultant, IDA’s standard RFP including standard contract forms shall be used.

The Procurement Plan will specify the circumstances for using each specific method.

60. Incremental operating costs. The term operating cost will include the incremental

overhead costs incurred by the (i) Project Implementation Unit and Divisional Forest Offices of

the Bangladesh Forest Department and, (ii) Arannayk Foundation for the implementation of the

project activities. These will cover the costs of incremental project staff, operations and

maintenance of vehicles (fuel, maintenance and insurance), renting of vehicles, office utilities,

office supplies and stationeries, unforeseen printing of materials, souvenirs, events, workshops,

rental of office buildings, bank charges, advertising costs or any other operational cost agreed

with IDA. This may not include salaries of permanent government officials that are paid out of

government’s own budget.

61. Prior review thresholds. The Procurement Plan will set forth those contracts which

shall be subject to IDA’s prior review. All other contracts will be subject to post review by

IDA. The initial Procurement Plan agreed with the Borrower for the first eighteen (18) months

indicates the following prior review thresholds which will be updated annually. The thresholds

are based on the assessment of the capacity and performance of the implementing agencies and

will be reflected in the updated Procurement Plan as appropriate. The thresholds are applicable

to the following: (i) each contract for goods and works procured on the basis of ICB; (ii) the first

contract for goods purchased by each implementing agency following NCB, regardless of the

value, and thereafter, all contracts estimated to cost $300,000 equivalent or more, regardless of

the procedure; (iii) the first contract for works following NCB, regardless of the value, and

thereafter all contracts for works estimated to cost $2,000,000 equivalent or more, regardless of

the procurement method; (iv) each contract for consultant services provided by a firm estimated

to cost the equivalent of $200,000 or more; (v) each contract for services of individual

consultants estimated to cost the equivalent of $100,000 or more; and (vi) all contracts for

goods/works procured through Direct Contracting and all contracts for consultant services

procured under single source selection.

62. Post review. To determine compliance with procurement procedures/methods/ Guidelines

mentioned above, IDA will carry out sample post reviews of contracts that are below the prior

review threshold. A post review (ex-post and procurement audit) of contracts below the

64

threshold will constitute a sample of about 20% of the post-review contracts in the project.

Procurement post-reviews will be done on annual or semi-annual basis depending on the number

of post-review contracts.

63. Procurement Plan. The procurement plans for the project, prepared by BFD and AF,

have been reviewed and accepted. These plans will be updated semi-annually or as required to

reflect the latest circumstances. The following table indicates procurement of some major

contracts under the project at PIU-BFD and AF as agreed till the preparation period. The

procurement plan will be subject to public disclosure following project effectiveness.

65

Table 3.3: Procurement Plan – Goods (for BFD) Sl.

No.

Contract

Package

Number

Contract Description Unit Qty/

Nos.

Estimated Price

in US$ ‘000

(Actual Contract

Price in Contract

Currency)

Procedure/

Method

Procurement

Guideline

(PPR / BG)

Prior

Review2

(Yes / No)

Planned Date

of Bid Opening

(Actual Date of

Bid Opening)

Remarks

1 2 3 4 5 6 7 8 9 10 11

1 BFD/G1 Laptop & Printers No 40 &12 50 NCB PPR Yes 02/15/2013 First NCB

contract

2 BFD/G2 Vehicles (1 jeep and 1 pick-up) No 2 142 NCB PPR No 03/01/2013

3 BFD/G3 Motor cycles No 40 74 NCB PPR No 03/01/2013

4 BFD/G4 Engine boats No 40 148 NCB PPR No 03/01/2013

5 BFD/G5 Photocopiers and Multimedia

projects

No 12 & 2 32 NCB PPR No 03/01/2013

6 BFD/G6 Furniture ls ls 25 NCB PPR No 03/01/2013

7 BFD/G7 Air cooler No 2 2 Shopping/RFQ PPR No 03/01/2013

8 BFD/G8 Equipment for RIMS upgrading

and ICT equipment for field

networking

ls ls 210 ICB/NCB BG Yes 05/01/2014

Table 3.4: Procurement Plan – Works (for BFD) Sl. No.

Contract

Package

Number


Nos.

Estimated Price

in US$ ‘000

(Actual Contract

Price in Contract

Currency)

Procedure/

Method

Procurement

Guideline

(PPR/ BG)

Prior

Review2

(Yes / No)

Planned Date

of Bid Opening

(Actual Date of

Bid Opening)

Remarks

1 2 3 4 5 6 7 8 9 10 11

1 BFD/W1.1

- W1.5

Rehabilitation/ reconstruction

of field offices

Building 43 2707 NCB PPR Prior 10/01/2013 5 packages

66

Table 3.5: Procurement Plan – Services (for BFD) Sl.

No.

Contract

Package

Number


Nos.

Estimated Price

in US$ ‘000

(Actual Contract

Price in Contract

Currency)

Procedure/

Method

Procurement

Guideline

(PPA / BG)

Prior

Review2

(Yes / No)

Planned Date

of Bid Opening

(Actual Date of

Bid Opening)

Remarks

1 2 3 4 5 6 7 8 9 10 11

1 BFD/S1 Climate Change Awareness,

Participation and Afforestation

awareness training and

Introductory package- Package

Contract.

contract single 375 QBS BG Yes 04/01/2013

2 BFD/S2 Capacity Development

Specialist- Individual Local

mm 48 119 IC BG Yes 02/01/2013

3 BFD/S3 Technical Study for Land use

mapping, assessment and

monitoring of proposed

afforestation/reforestation sites

contract single 400 QCBS BG Yes 04/14/2012

4 BFD/S4 Technical Study for

strengthening RIMS and

development of Forest

Resource Assessment and

monitoring protocol


5 BFD/S5 Technical Study for developing

communication strategy,

awareness campaign and web-

based information

dissemination system

contract single 150 QCBS BG No 02/15/2013

6 BFD/S6 Technical Study for third party

monitoring


7 BFD/S7 Resource Assessment

Specialist (Individual

International)

mm 18 270 IC BG Yes 03/15/2013

8 BFD/S8 MIS/GIS Specialist (Individual

Local)

mm 39 120 IC BG Yes 02/15/2013

9 BFD/S9 Technical Study for Review

Forest Master Plan and

different sectoral studies for

Forestry Master plan updating


67

Sl.

No.

Contract

Package

Number


Nos.

Estimated Price

in US$ ‘000

(Actual Contract

Price in Contract

Currency)

Procedure/

Method

Procurement

Guideline

(PPA / BG)

Prior

Review2

(Yes / No)

Planned Date

of Bid Opening

(Actual Date of

Bid Opening)

Remarks

1 2 3 4 5 6 7 8 9 10 11

10 BFD/S10 Technical Study for developing

strategy, update Forestry

Master plan and prepare time

specific action plan


11 BFD/S11 Forest Management policy/

Institution (Individual

International)

mm 24 360 IC BG Yes 04/01/2013

12 BFD/S12 Forest Management policy/

Institution (Individual

National)

mm 45 140 IC BG Yes 12/15/2012

13 BFD/S13 Design, Supervision and

Monitoring Consultant for field

infrastructure

contract single 143 QCBS BG No 08/01/2013

14 BFD/S14 Project Manager (Senior

Individual Consultant)- 54 mm

mm 54 186 IC BG Yes 03/15/2013

15 BFD/S15 Financial Management

Specialist (Senior Individual

Consultant)- 54 mm

mm 54 186 IC BG Yes 02/15/2013

16 BFD/S16.1

-16.10

Procurement Specialist (Senior

Individual Consultant) -36

months

mm 36 120 IC BG Yes 02/15/2013

17 BFD/S17.1

-17.10

Communication/Information

Specialist- 30 mm

mm 30 82 IC BG No 03/15/2013

18 BFD/S18 Accountant (Individual

Consultant)- 54 mm

mm 54 112 IC BG Yes 03/01/2013

19 BFD/S19.1

-19.10

Accountant (Individual Junior

Consultant) – 10 Nos- 540 mm

mm 540 447 IC BG No 02/01/2013

20 BFD/S20.1

-20.10

Community Mobilization

Officer (Individual Junior

Consultant) – 10 Nos. 420 mm

mm 420 339 IC BG No 02/15/2013

21 BFD/S21 Need based Individual

Consultants- 2mm

mm 2 5 IC BG No 12/15/2013

22 BFD/S22 Financial Audit Firm Contract Single 20 QCBS BG Yes 06/01/2013

68

Table 3.6: Procurement Plan – Services (AF)

Sl.

No.

Contract

Package

Number


Nos.

Estimated Price

in US$ ‘000

(Actual Contract

Price in Contract

Currency)

Procedure/

Method

Procurement

Guideline

(PPA / BG)

Prior

Review2

(Yes / No)

Planned Date

of Bid Opening

(Actual Date of

Bid Opening)

Remarks

1 2 3 4 5 6 7 8 9 10 11

1 AF/S1 Project Coordinator mm 54 60 IC BG Yes 01/31/2013

2 AF/S2 NGO for AIG activities (south) 1,550 QBS BG Yes 03/25/2013

3 AF/S3 NGO for AIG activities

(southeast)

1,157 QBS BG Yes 03/25/2013

4 AF/S4 AIGA Consultant 35 IC BG No 09/23/2013

5 AF/S5 Financial Audit Firm 12 LCS BG Yes 06/01/2013

69

Social and Environment (including safeguards)

Social

Introduction

64. The project is being prepared to help selected local communities in the coastal areas of

Bangladesh to improve their resilience to climate change impacts. Its operational objectives are

to (i) strengthen the institutional capacity of the Bangladesh Forests Department (BFD) and

selected communities in the coastal and hilly areas of the country for participatory afforestation

and reforestation; and (ii) increase the size of reforested areas in selected communities through

participatory afforestation and reforestation. The activities under Participatory Afforestation and

Reforestation will mainly focus on the degraded forest lands, marginal and fallow lands, and

most importantly on the newly accreted lands in the coastal areas. The target geographic areas

will be selected in 9 coastal districts. Plantation will also cover accreted offshore islands which

are not inhabited.28

In the hilly areas, the subprojects will target the core and buffer zones of the

Reserved Forest Lands of Chittagong and Cox’s Bazaar districts. The Afforestation and

reforestation program will create about 3.0 million workdays for the forest depended

communities.

65. From social perspective it is observed that forestry-related interventions are often made

problematic by “elite capture” in community forestry or in cases of joint management. While

influential and richer people are often responsible for deforestation, it is documented that the

poorest living in and around the forests depend on forest-degrading livelihood activities like

collection and selling of fuel woods and other forest products. To guard against elite capture, the

project will support develop, test and introduce a modified beneficiaries’ selection process

decentralized to the Union Parishad level, with engagement of communities and local

government in a transparent, open and inclusive selection and decision making process.

66. Component 2 is expected to bring positive socioeconomic impacts through creation of

jobs, transfer of knowledge and skills, and expanding income opportunities for the people living

in the project areas. It will also empower and strengthen social capital of poor, women,

vulnerable and marginalized members of forest dependent groups. The project will provide

technical and financial support to the selected forest communities to build sustainable livelihoods

without relying on illegal and unsustainable harvesting of forests and wetland resources. The

project will facilitate social mobilization of poor forest dependent households into groups,

engage them in afforestation and reforestation activities, provide them with relevant training, as

well as technical and financial support to improve their livelihoods.

28

Plantation in these islands will consist only of mangroves that have very little market value. As a result,

community involvement, which is based mainly on the benefit sharing incentives provided in the Social

Afforestation Rules, is highly unlikely.

70

Social Safeguard

67. All plantation activities will be undertaken on available public lands under the BFD

control. These lands are not included in any on-going or planned projects. BDF has decided that

no private lands would be acquired for plantation, but has still agreed to adopt certain guidelines

to obtain private lands where they are absolutely necessary to maximize and sustain the benefits

of a given subproject, which are included in the SMF prepared for the project.

68. Policy, Legal and Administrative Framework. It is likely that public lands may not be

free of encumbrances and that some of these lands may be under authorized and unauthorized

use, as well as not formalized for use by local peoples for living and livelihood.29

It is also likely

that some of the coastal districts, especially Cox’s Bazaar and Patuakhali, may have indigenous

peoples (IPs) living in settlements among local people. Social safeguards compliance

requirements therefore have been triggered WB Policies on Involuntary Resettlement (OP 4.12)

and Indigenous Peoples (OP 4.10). In the context of Bangladesh, indigenous people are referred

to as Tribal People.

69. Social Management Framework. Although the compliance requirements would remain

unknown until specific subproject locations are identified and screened, BDF has prepared a

SMF to address any social safeguard issues that may arise due to the activities implemented

under the individual subprojects. Social safeguards will also be applicable to the Alternative

Livelihoods to Support Forest Communities component, to be implemented by AF and partner

NGOs. Consistent with the Bank’s OP 4.12 and OP 4.10, pertinent provisions of GoB’s Social

Forestry Rules 2004 (amended in 2011) and those of other DPs, the SMF proposes principles,

policies, guidelines and procedure to identify and address impact issues concerning involuntary

resettlement and indigenous peoples. The SMF will apply to the project as a whole and provide

the bases to determine applicability of the safeguard policies, and prepare and implement impact

mitigation plans like Resettlement Plans (RPs) and Tribal Peoples’ Development Plans (TPDPs)

as and when subproject activities are found to cause adverse impacts on public land users and

private landowners, as well as indigenous peoples. These safeguard policies, procedures and

instruments will also be integrated into the implementation of the Alternative Livelihoods to

Support Forest Communities component.

70. The objective of the SMF is to ensure that subprojects are planned, designed, screened,

and implemented to enhance positive social outcomes from project activities; ensure

participation of the target communities, including poor, women, vulnerable and marginalized

groups, and proper selection of core afforestation/reforestation beneficiaries in a transparent,

socially inclusive and verifiable process. It aims to avoid or minimize negative social impacts,

prevent or compensate for loss of livelihood, which may result from displacement of public land

users and use of private lands, and severely restrict access to common property resources, and

ensure compliance with the relevant GoB policies and those of the World Bank on social

safeguards and social inclusion issues, including those with gender implications.

29

It was seen during field visits, plantation in one degraded hilly site (Chunati Range in Cox’s Bazaar) has been carried out without displacing the

two poor households that have been living in the site. Rather, they have been accepted among the beneficiaries. In another potential site (Kumira

Range in Chittagong), there is a small number of households living in the narrow strips of valleys between the hills. BDF has decided not to displace them, but accept them as beneficiary of the plantation program.

71

71. The SMF provides a framework of applicable policies, rules and regulations; guidelines

to be followed in order to use private and public lands, guidelines on the preparation of

indigenous people’s plans, consultation and communication, grievance redress and monitoring

and evaluation. It also provides screening mechanisms for specific sub-projects; beneficiary

selection methodology; institutional and implementation arrangements for the implementation of

the SMF via the site specific plans; and the process of clearances and disclosure required both for

the SMF and the site specific plans. The draft SMF has been disclosed on BFD and AF websites

(http://www.bforest.gov.bd/ and http://www.arannayk.org/otherdoc.php) for public comments on

May 17, 2012.

72. Implementation and Monitoring. BFD will implement the project and ensure that the

SMF is implemented in its entirety or to the extent applicable for each subproject. Component 2

will be implemented by AF and its partner NGOs on the ground. Along with other project

activities, BFD and AF will supervise and monitor SMF implementation. AF will design,

supervise and monitor the income generating activities, and carry out periodic audit of the fund

utilization by CBOs during the project period. The PIU at BFD will be responsible for overall

supervision and monitoring of all activities under the alternative livelihoods subcomponent.

73. Grievance Redress Mechanism: For effective impact mitigation and a fair resolution of

complaints, BDF will establish a grievance redress mechanism (GRM) for all subprojects

undertaken in a range, to address complaints and grievances about any irregularities in

application of the SMF guidelines for community consultation; impact assessment and

mitigation; beneficiary selection; plot size and quality; eviction from public lands; and other

personal/community concerns. Based on discussion and consensus, GRM will help to resolve

the issues/conflicts amicably and quickly to ensure unhindered project preparation and

implementation process. If resolution attempts at the Range level fail, the concerned Range

Officer will refer the complaints to the DFO or next higher authority along with the minutes of

the hearings. If a decision made at this level is found unacceptable by the aggrieved person,

DFO will refer the case to BFD with the minutes of the hearings at both range and division

levels. A decision agreed with the aggrieved person at any level of hearing will be binding on

BFD. SMF provides a suggested composition for the GRM.

74. Safeguards Capacity: BFD has successfully implemented three Bank-supported forestry

sector projects during 1980 – 2001. However, most of the present mid-level staff, such as DFOs

and others who would support project preparation and implementation at the local level, are not

familiar with Bank-supported operations. Thus, there would be a need to train the present BFD

staff to the Bank procedures and requirements. On the other hand, with a network of partner

organizations AF has reasonable experience with promoting projects/programs on alternative

livelihoods for forest conservation. The latter will train partner NGOs, and they will train

participating FDG in screening of livelihood micro projects.

Environment

75. Applicable Environmental Category and Safeguard Polices. The proposed project is

expected to make a positive long-term contribution to the environment such as protecting against

http://www.bforest.gov.bd/

http://www.arannayk.org/otherdoc.php

72

soil and water erosion, working as a barrier during cyclone and storm surge, reducing

atmospheric pollution and providing habitat for flora and fauna. The activities will be mainly

focus on the degraded forestland, marginal, fallow and newly accreted land in coastal and hilly

areas. The project has been classified as “Category B” considering risk associated with the site

clearance of plantation, species selection, use of fertilizer in the plantation program, minor

construction related disturbance and community level livelihood options in areas of high

ecological sensitivity and vulnerability. The Project has triggered three environmental safeguard

policies for environmental assessment (OP/BP 4.01), Natural Habitats (OP/BP 4.04) and Forests

(OP/BP 4.36). It has been agreed during project preparation, no pesticides or herbicides will be

used in the project.

76. BFD and AF prepared an EMF that describes the general baseline condition and typical

environmental impacts from different types of activities during preparation, design, construction,

and operation. EMF also provides the guidelines to comply with national legislation and World

Bank safeguards policies, and defines the environmental requirements needed for

reconstruction/rehabilitation of infrastructure in the forest. In addition, EMF has laid out the

procedures for simple screening of the alternative livelihoods support activities and

environmental code of practice for various project activities.

77. Activity Specific Environmental Safeguard Issues and Resolution Approach. The

afforestation and reforestation activities may create possible environmental issues from (i)

inappropriate site selection; (ii) plantation of non-native species; (iii) monoculture plantations;

and (iv) disproportionate use of fertilizer causing damage to sensitive and valuable ecosystem.

To safeguard against the possible environmental issues that may arise from the afforestation and

reforestation activities a three step resolution approach will be prepared and followed. The three

steps are (i) accumulation of site specific ecological baseline (ii) preparation of a plantation

guideline and (iii) development of environmental code of practice to mitigate the environmental

issues at any stage of project implementation and operation.

78. Environmental issues such as deterioration of natural drainage system, sedimentation of

surface water, and cutting of trees may trigger from the rehabilitation/reconstruction of existing

field infrastructures. Without knowing the specific site and design of the infrastructure, it’s not

possible to ascertain the exact environmental impact. To avoid the probable adverse

environmental impacts the implementing agency has developed a construction related

Environmental Code of Practice (ECP) as part of EMF, which will delineate the methodologies

for site selection and construction to minimize the adverse environmental impacts due to

construction of infrastructure.

79. The activities under Alternative Livelihoods to Support Forest Communities component

will be implemented both individually and at community level. The selection of possible

activities at community level will require environmental screening. The community will follow

the activity specific Environmental Management Plan (EMP) in consultation with Community

Mobilization Officer (CMO).

80. Stakeholder’s Capacity on Environmental Safeguard.The implementing agencies BFD

and AF have experience on conserving the natural resources and pay due diligence to

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environmental issues. BFD also implemented three IDA supported projects during 1980-2001

and presently implementing a regional wildlife project. However, both BFD and AF require to

be further oriented on bank environmental and social safeguard policies. The capacity weakness

has already been covered by hiring both social and environmental specialist during preparation

phase. The Community Mobilization Officer (CMO) and DFOs will be further trained on the

implementation of EMF and ECP. BFD will share the EMF with DoE for concurrence.

81. Environmental Safeguard Supervision and Monitoring. Assistant Conservator of

Forests (ACF) based at each division level along with Community Mobilization Officer (CMO)

will monitor the environmental safeguard issues and ensure the successful implementation of the

environmental code of practice, execution of environmental assessment and environmental

management plan. ACF will submit a semi-annual environmental report to the respective DFOs.

The DFOs will ensure the quality and authenticity of the report and share the final report with the

PIU.

82. Consultation and Disclosure: BFD and AF have prepared the EMF in consultation with

different stakeholders and communities of the selected districts. The EMF along with Bangla

version has been disclosed by the BFD and AF on their website and hardcopies are also be

available at BFD and AF headquarters and district offices (project area). Advertisements

requesting public comments are published in two daily Newspapers (English and Bangla). The

EMF is also disclosed in Infoshop.

Results Monitoring and Evaluation

83. Monitoring and evaluation are fundamental to assess implementation progress and to

provide necessary corrective measures during implementation. Annex 1 presents the Results

Framework and Monitoring to measure achievement of the PDO. These include: plantation

coverage, income, employment, participatory management, capacity building indicators. It may

be noted here that the project has adopted the definition of ‘Resilience’ from the recent report

‘Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation’

published by Intergovernmental Panel on Climate Change (IPCC). ‘Resilience’ is defined as the

ability of a system and its component parts to anticipate, absorb, accommodate, or recover from

the effects of a hazardous event in a timely and efficient manner, including through ensuring the

preservation, restoration, or improvement of its essential basic structures and functions.

84. BFD has its monitoring system to track the physical progress of the afforestation and

reforestation. The overall monitoring system of BFD will be further strengthened with scientific

and comprehensive data and information on existing resources in coastal and hilly areas.

Component 3 will support the forest inventory, socio-economic survey, RS and GIS, which will

baseline and change monitoring of increases in afforested and reforested area and impacts of the

project on resilience of forests and livelihoods of local communities.

85. Special attention will be provided to improve the reporting system and the PIU will

produce the quarterly and annual progress reports in an appropriate format to the Bank no later

than 15 days after the end of each quarter. The Project Director of PIU and Executive Director

of AF will be responsible for the preparation of quarterly reports on overall progress, site specific

progress, major issues, expected completion dates for civil works, implementation of SMF and

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EMF, training, technical studies, procurement, and FM issues. The reports will include: (i)

comparison of actual physical outputs and disbursement with updated forecasts; (ii) financial

statements; and (iii) procurement report showing status and contract commitments.

86. Monitoring and evaluation (M&E) for component 2 on alternative livelihoods will be

based on a relevant and clear-cut strategy and plan developed by AF. The component will have a

comprehensive monitoring and evaluation framework based on qualitative and quantitative

indicators of the results to be achieved, i.e., the project’s development objective and intermediate

results related to alternative livelihoods development and consequent impact on forest

conservation.

87. The AF will elaborate the M&E plan including implementation strategy/process and data

collection formats and train partner NGOs in its implementation. The M&E process will include

baseline survey, quarterly and annual progress against the indicators defined in the results

framework and final survey at the completion stage for impact evaluation. Partner organizations

will implement baseline study collecting profile of the project area, information on households,

existing livelihood practices, poverty, etc. The baseline study will implement a difference-in-

difference approach for comparison between treatment (project beneficiaries) and control (non-

beneficiaries) groups before and after project activities. AF Secretariat will carry out periodic

monitoring of project implementation and review progress by undertaking field visits. The

partner organizations will submit quarterly and annual progress reports to AF Secretariat. The

AF Secretariat will verify the reports of the partner organizations and submit consolidated

reports to the Project Implementation Committee and the World Bank simultaneously. In

addition, the component will adopt participatory monitoring by project participants in different

aspects.

88. Monitoring of annual development plan implementation: In their monthly meetings,

the FDGs and their Union-level federations will review the progress and problems (if any) of

implementation of their annual development plan (ADP) and will plan actions to solve the

problems. The common activities to be monitored by the FDGs and their Union-level

federations include: progress in implementation and effectiveness of training and exchange

visits; collection of participatory savings from the FDG members; disbursement and recovery of

credit; implementation AIGA; and adoption of improved cook stoves and sanitary latrines and

use of safe drinking water by the FDG/community members.

89. Monitoring of participatory savings, credit recovery and AIGA effectiveness: In

monthly meetings of the FDGs, the FDG leaders will take feedback from their members about

the effectiveness and problems of their AIGAs and will document important observations and

issues such as those that require organizing skill development trainings or dealing with

marketing problems. In each monthly meeting, the status of participatory savings and credit

recovery shall also be reviewed and follow up actions shall be planned in a democratic manner.

90. Monitoring of forest resource extraction: Extraction of forest resources by people shall

be monitored mainly through ‘trail guarding’ method and discussion in the regular meetings of

the FDGs and their Union level federations. In trail guarding method, period monitoring of

forest resources extraction is done at the exit points of the forests using local volunteers. The

process involves identification and mapping of the exit points (through which people bring out

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forest products from the forests) and counting the number of stems, bundles, sacs, wagon/van or

head loads of different forest products while carried out through the exit points, with subsequent

estimation of volume or weight of those materials through sample measurements either at the

exit points or in the marketplace where those are traded.

91. In each month, the trail guarding operation (monitoring) will be conducted in a market

day and a non-market day, selected randomly. One or two Community Volunteers will take

position at each exit point of the forest for the whole day and will observe and record (in a data

sheet) the number of persons coming out from the forest and the forest goods being carried by

them. The volunteers will record the name and distance (from the forest) of the communities the

forest resource collectors came from, the distance of the place of collection of the forest goods

from the exit points and the time spent in collection of the forest goods by asking those people in

a friendly manner.

92. In the market place, the volunteers will collect complementary data such as the

weight/quantity of forest goods in a bundle, sac or head load as brought by the forest resource

collectors and the prices of the forest goods. The price data shall be collected once in every

month but for data on weight/quantity of forest good per bundle, sac, etc., one time data will be

sufficient unless a change in the standard sizes of the bundles, sacs, etc. are observed.

93. To monitor project progress, two full implementation support missions will be

undertaken annually by the Bank. Additionally, the Bank will monitor implementation

throughout the year. A mid-term review of the project will be carried out by September 2015.

An Implementation Completion and Results Report (ICR) will be submitted to the Bank no later

than six months after the closing date. Additional detail on the World Bank’s support to project

implementation and monitoring can be found in Annex 5.

94. For an independent assessment on quantitative and qualitative performance of

implementation, third party monitoring is proposed for the project. In addition, BCCRF

secretariat will develop separate monitoring system for the projects to be funded under the trust

fund.

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Project Organizational Chart

Steering Committee (Chaired by Secretary, MoEF)

World Bank

Project Implementation Committee (Chaired by CCF, BFD)

Project Implementation Unit, BFD

(Component 1, 3 & 4) (Headed by Project Director &

supported by Project Manager & other specialists and staffs)

Project Office, AF (Component 2)

(Headed by Executive Director & supported by a full-time Project

Coordinator, AIG Specialist & other officers)

10 Divisional Forest Offices (Headed by Divisional Forest Officer & supported by Community Mobilization officer, Account Officer & regular staff)

Patuakhali Coastal Afforestation Division, Bhola Coastal Afforestation Division,

Noakhali Coastal Afforestation Division, Chittagong Coastal Afforestation Division,

Chittagong North Forest Division, Chittagong South Forest Division, Cox’s Bazar North Forest Division, Cox’s Bazar

South Forest Division, Barisal Social Forestry Division and Feni Social Forestry

Division.

2 Partner NGO Offices (Headed by Program Manager)

NGO (South): Patuakhali Coastal Afforestation Division, Bhola Coastal

Afforestation Division, Noakhali Coastal Afforestation Division, Barisal Social

Forestry Division and Feni Social Forestry Division

NGO (Southeast): Chittagong Coastal Afforestation Division, Chittagong North Forest Division, Chittagong South Forest

Division, Cox’s Bazar North Forest Division, Cox’s Bazar South Forest Division,.

Site Offices (Site Coordinators & Field Facilitators)

Range and Beat Offices (Range and Beat Officer with Forest Guards)

3 Forest Circle Offices (Headed by

Conservator of Forest) Chittagong Circle, Coastal Circle

& Social Forestry Circle

RIMS Unit (Headed by Deputy

Conservator of Forests & supported by technical

specialists

2 Management Plan Divisions

(Headed by Deputy Conservator of Forest at

Chittagong and Khulna)

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Annex 4: Operational Risk Assessment Framework (ORAF)

Operational Risk Assessment Framework (ORAF)


Project Stakeholder Risks

Stakeholder Risk Rating Substantial

Description: Risk Management:

Selection of beneficiaries of the social

forestry has a high political pay-off.

Political capture at selection of

beneficiaries would lead to exclusion of

real poor people.

Selection of beneficiaries based on transparent criteria, and done at the union level. Greater emphasis

on consultation with communities and close monitoring by Project Consultant.

Resp:

Client

Status:

Not Yet Due

Stage: Implementation

Recurrent

Due Date:

Frequency:

Implementing Agency (IA) Risks (including Fiduciary Risks)

Capacity Rating Substantial

Description:

Although Bangladesh Forest Department

successfully 3 IDA funded forestry projects

during 1980-2001, the department has

limited experience on implementation of

large-scale donor funded projects in recent

years.

Financial Management: The overall

accountability and financial controls are

weak for this project. A large component

(component 1) is implemented by 10

division forest offices spread across various

locations. There is a substantial risk

involved in delay of timely submission of

financial reports and adherence to internal

Risk Management:

Project implementation itself will be supported by dedicated Project Implementation Unit (PIU) that

will receive significant technical assistance, training and separate budgets. A Project Implementation

Committee at BFD will be formed to ensure overall coordination of project implementation

Resp:

Client

Status:

Not Yet Due

Stage:

Implementation

Recurrent Due Date:

15-Jan-2013 Frequency:

Risk Management:

While this remains an inherent risk, it has been agreed that a qualified accountant will be engaged at the

PIU-BFD who will be responsible for the accounting, reporting and auditing functions. It has also been

agreed that a computerized accounting system will be procured by PIU-BFD & divisional forest offices

and the chart of accounts will be configured to this software which would assist in timely submission of

IFRs.

Similarly, each divisional office will be staffed with 1 Community Mobilization Officer (CMO) &

Accountant (AO) who will oversee the operational and financial aspects and will report to the

78

controls (for e.g. non-reconciliation of bank

accounts, delay in settlement of advances

etc).

In addition, to implement the project

activities, it is expected that large amounts

of cash will be withdrawn by the division

forest offices from the bank accounts

towards payment to local community

labors, local transportation costs, purchase

of seeds etc.

Procurement: BFD has no dedicated

procurement staff to deal with procurement

activities and has inadequate capacity for

procurement and administration of

contracts funded from IDA or IDA-

administered trust funds.

Divisional Forest Officer (DFO). The Accountant will maintain adequate books of accounts and will

report to the PIU-BFD on a periodic basis on the expenditures incurred under this project. In case of

cash withdrawal, the agreed arrangement is to disburse all payments within two days of withdrawal and

daily update cash in hand and bank balance, which will be monthly reconciled with Bank statement.

The additional fiduciary assurance will be obtained through internal/operational audit as per ToRs

agreed with the Bank.

Resp:

Client

Status:

Not Yet Due

Stage:

Implementation

Recurrent Due Date:

31-Mar-2013 Frequency:

Risk Management:

Procurement Performance Monitoring Reports (PPMRs) will be prepared by BFD on a semi-annual

basis with indicators aimed in managing procurement-related risks.

Qualified Procurement Specialist will be recruited at PIU level to support both BFD and Arannayk

Foundation.

IDA will monitor implementation progress through standard supervision and focused capacity building

based on reviews and PPMR findings.

Resp:

Both

Status:

Not Yet Due

Stage:

Implementation

Recurrent Due Date:

28-Feb-2013 Frequency:

3.2 Governance Rating Substantial

Description:

Bureaucratic and slow decision making

process can affect the project progress.

Lack of accountability and oversight may

affect the quality of project outputs.

Risk Management:

Oversight function will be strengthened in the project. Bank review of audit reports and follow up on

actions taken by BFD to address audit recommendations.

Resp:

Both

Status:

Not Yet Due

Stage:

Both

Recurrent Due Date:

31-Dec-2013 Frequency:

Risk Management:

The project will make use of an independent third party monitoring system for verification of project

activities. The project will support in strengthening the participatory monitoring in the BFD and will

introduce social accountability tools.

79

Resp:

Client

Status:

Not Yet Due

Stage:

Implementation

Recurrent

Due Date:

Frequency:

Risk Management:

An in-country consultant will conduct random spot checks on the progress of the afforestation and

reforestation.

Resp:

Bank

Status:

Not Yet Due

Stage:

Implementation

Recurrent

Due Date:

Frequency:

Risk Management:

Oversight function will be strengthened in the project. Procurement Risk Mitigation Framework will

be prepared and implemented.

Resp:

Both

Status:

Not Yet Due

Stage:

Both

Recurrent

Due Date:

Frequency:

Risk Management:

A Governance and Accountability Action Plan (GAAP) has been prepared that outlines key agreements

on Governance issues. Regular monitoring during implementation.

Resp:

Both

Status:

Not Yet Due

Stage:

Both

Recurrent

Due Date:

Frequency:

Project Risks

Design Rating Moderate


No major technical complexity is foreseen

for the project. BFD is familiar with

afforestation program. BFD is mainly

responsible for the project implementation

and Arannayk Foundation will implement

the livelihood subcomponent. The project

design is flexible in terms of

accommodative nature for afforestation,

Continued dialogue with the implementing partners to ensure smooth implementation

Resp:

Both

Status:

Not Yet Due

Stage:

Both

Recurrent

Due Date:

Frequency:

80

livelihood development, studies etc. There

will be good linkage between the plantation

program and alternative livelihoods

components.

Social and Environmental Rating Moderate

Description:

Environment: The project will make a

positive long-term contribution to the

environment such as protecting against soil

and water erosion, working as a barrier

during cyclone and storm surge, providing

habitat for flora and fauna etc. Some short

term impact is expected due to minor

construction works.

Social: The project will bring positive

changes by reducing climate change risk

and providing employment opportunities.

Resettlement will be avoided; however,

some resettlement may be required.

Risk Management:

BFD prepared an Environmental Management Framework (EMF) and conduct screening/assessment

and mitigation measures during implementation

Resp:

Client

Status:

In Progress

Stage:

Both

Recurrent

Due Date:

Frequency:

Risk Management:

BFD prepared Social Management Framework during project preparation, which will provide guidance

for conducting social impact assessment, resettlement plan etc. The project will screen the locations

where activities are slated to be carried out in order to avoid as much as possible any sites where the

displacement or involuntary resettlement of people may be expected

Resp:

Client

Status:

In Progress

Stage:

Both

Recurrent

Due Date:

Frequency:

Program and Donor Rating Low


The project will be implemented under

BCCRF (a Bangladesh specific MDTF).

The contributing donors and other secotral

donors will be consulted on regular basis.

Close collaboration with other on-going programs and donors. Disclosure of project update in BCCRF

and BFD website.

Resp:

Both

Status:

In Progress

Stage:

Both

Recurrent

Due Date:

Frequency:

Delivery Monitoring and

Sustainability

Rating Substantial

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Description:

Sustainability: BFD have demonstrated

commitment by successfully implementing

the afforestation program through social

forestation program. However, Financial

sustainability of the BFD is at stake

although the government developed

mechanism distribution of 100% income

from social forestation to community,

department and afforestation fund. AF also

working to continue support to forest

depended community through different

projects.

Contract Management: BFD has no

experience in recent times in with dealing

Bank-financed contracts. AF also does not

have experience of large scale contract

management.

Difficulty to satisfy quality assurance of the

contracts scattered in remote areas.

Risk Management:

Studies in the project will develop model for strengthening management and explore the carbon finance

and other innovative funding sources for sustainable forest management.

Resp:

Client

Status:

Not Yet Due

Stage:

Implementation

Recurrent Due Date:

31-Decl-2016 Frequency:

Risk Management:

The Consultant will be engaged to provide support to BFD in ensuring quality control and close linkage

with afforestation and livelihood component. Capacity development of BFD and AF will be supported

through the program.

Resp:

Client

Status:

Not Yet Due

Stage:

Implementation

Recurrent Due Date:

01-Jul-2013 Frequency:

Overall Risk

Preparation Risk Rating: Moderate Implementation Risk Rating: Substantial

Description: Description:

The overall risk rating of the proposed project is substantial. The key risks to achieving the PDO fall

under two main categories: project specific risks and risks in overall governance in the country and in

the sector. The first category includes risks mainly associated with insufficient capacity of the

implementing agencies in terms of logistics and adequate human resources to manage a large scale

project in remote locations, and weak financial management system. The second category of key risks

relate to the overall weak governance in the country and in the sector, including inefficient funding

allocation for institutional development of BFD, weak internal accountability and integrity mechanisms

and insufficient citizen oversight. This ORAF and the GAAP will help in tracking the risks and

mitigation measures.

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Annex 5: Implementation Support Plan

A. The strategy and approach for implementation support

1. The proposed project will require intense supervision, given there are two implementing

agencies (BFD and AF) and both of them have limited capacity especially in terms of Bank

procedures.30

In addition, most of the plantation sites especially in the coastal areas are far away

from the main land and require substantial travel time. Adequate Bank resources and staffing to

ensure this level of supervision will be made available throughout the project implementation

cycle.

2. The Implementation Support Plan (ISP) provides the support required for implementation

of all mitigation measures identified in the ORAF in the three following areas: (i) institutional

capacity; (ii) program delivery and monitoring; and (iii) governance, in order to ensure all major

risks are addressed. The design of the project contains safeguards against each of these risks.

The ISP is designed to review and ensure the safeguards are effective and to reinforce them

where necessary. The ISP is also designed to enhance BFD’s capacity in a range of technical

and specialized areas. The ISP will be undertaken by Bank staff and is based on three major

principles: (i) continual high level policy dialogue with BFD on institutional development and

sustainable forest management; (ii) frequent local level and field based supervision including

consultation with forest based communities; and (iii) consistent review of fiduciary procedures

and controls.

3. The institutional capacity development and fiduciary support through Bank’s

implementation support will focus on procurement and financial management. The strategy

includes:

Procurement. Implementation support will include: (i) providing training to relevant

staff of the PIU and AF; (ii) reviewing procurement documents and providing timely

feedback to the PIU and AF; (iii) providing detailed guidance on IDA’s Procurement

Guidelines to the PIU and AF; and (iv) monitoring procurement progress against the

detailed procurement plan.

Financial management. Implementation support will review the project’s financial

management systems, including but not limited to, accounting, reporting and internal

controls. The project will introduce forensic accounting, which will ensure better

transparency especially in field level transaction. Supervision will also cover pilot

projects on a random sample basis.

4. The strategy will also include frequent supervision through field visits, considering (i)

potentially large number of sub-projects in the field, especially in the context of Component 2,

which will promote several AIGAs; and (ii) remote and diverse afforestation and reforestation

sites. Bank supervision will need to rely on frequent field visits and dialogue with local

30

Despite having successfully implemented three forestry sector projects, the present BFD mid-level officials (Divisional Forest Officer

responsible for field level implementation) in the BFD are not familiar with Bank-supported operations.

83

stakeholders and on AF’s monitoring system. In addition, fostering a transparent communication

between the two implementing agencies and developing an effective monitoring and reporting

system will be emphasized. Each field visit will involve focus group discussions with the project

beneficiaries to gauge project’s impact and beneficiary satisfaction. This information will be

used to continually improve project practice.

5. The strategy also includes regular supervision of the implementation of the agreed

Governance and Accountability Action Plan (GAPP) and provides guidance in resolving any

issues.

B. Implementation Support Plan

6. Team Composition. The core implementation support team will be based in the

Bangladesh country office and within the South Asia region. The staff based in Washington DC

will also provide technical input from their working location and will also participate in selective

missions. The Team will consist of Task Team Leader (TTL), Natural Resource Management

Specialist, Forestry Specialist, Forestry Economist, Environmental Safeguard Specialist, Social

Safeguards Specialist, Procurement Specialist, Financial Management Specialist, and

Governance Specialist. The team will be complemented by consultant support on issues

associated with capacity building especially with forest resource planning and management,

climate change, RS, income-generating activities and disbursement.

7. Frequency of implementation support. Supervision missions will be carried out at least

twice a year. Country-based staff and consultants will monitor implementation progress on a

continuous basis and will have monthly/quarterly meetings with PIU to review annual work

program progress and address emerging issues. Safeguard and technical field visits (during

afforestation phase) will be undertaken quarterly.

8. Implementation Support Plan. The supervision mission will provide the following

inputs to help achieve the project development objective:

Technical inputs: The team will provide technical inputs in several areas, e.g. by

reviewing the criteria based on which project beneficiaries are chosen, monitoring the

success of AIGAs, quality and extent of plantation and nursery practices, maintenance

and survival rates of the project plantations through field visits. The technical studies i.e.,

monitoring system based on RS, GIS and field cross-checking, monitoring guidelines,

several studies under master-plan and the final master plan will be extensively reviewed

by the Task Team. The team will share the international best practices in improving the

quality of the documents. The team will provide input for the content and process of the

capacity building program.

Fiduciary aspects: The team will review the implementation of FM and procurement

arrangements (hiring FM and procurement specialists at PIU) and their performance. The

team will identify corrective actions and will monitor fiduciary risk. Monitoring

implementation progress will involve reviews of PPMRs findings and other documents.

84

Safeguards: Timely implementation of all provisions of the SMF and Environmental

Management Framework (EMF) will be supervised through review of project annual

work plans, progress reports and site visits, as appropriate.

GAAP: The Governance Specialist based in Bank’s Dhaka Office will be member of the

project team to support implementation of the GAAP and the risk mitigation measures

related to governance and corruption throughout the project period.

C. Implementation Main Focus

9. Considering the risk associated with extraordinary visibility vis-à-vis external partners

and media for climate change and required substantial work and follow-up during

implementation, the IDA team would need significant resources to carry out proper

implementation support. Most of the IDA team members will be based in the Bangladesh and

South Asia to ensure timely, efficient and effective implementation support to the clients.

Table 5.2: Skills Mix Required

Skills Needed Number of Staff Weeks Number of Trips Comments

Task Management 60 20 Country Office

Natural Resource

Management Specialist

30 10 South Asia

Procurement Specialist 30 10 Country Office Financial Management

Specialist

30 10 Country Office

Governance Specialist 10 5 Country Office

Forestry Specialist 10 4 Washington DC

Forestry Economist 6 4 Washington DC

Afforestation Specialist 50 30 Country Office

Community

Development,

Livelihoods and AIG

Specialist

40 10 South Asia

Forestry Policy,

Capacity Building &

Climate Change

Specialist

40 10 South Asia

Silvi-culture and

Inventory Specialist

15 8 New Zealand

Environment specialist 20 10 Country Office Social safeguard

Specialist

20 5 Country Office

85

Annex 6: Governance and Accountability Action Plan (GAAP)

Introduction

1. The project aims to reduce forest degradation and increase forest coverage through

participatory planning/monitoring and to contribute in building the long-term resilience of

selected communities in coastal and hilly areas to climate change. The project development

objective will be achieved by: (i) establishing newly afforested and reforested areas using

climate resilient species to work as windbreak against cyclones; (ii) strengthening alternative

livelihoods of forest-dependent communities; and (iii) improving the institutional capacity of the

forest department to sustainably manage forest resources. The GAAP, if properly implemented,

will contribute to enhancing efficiency of the institutional organization and performance of the

project as well as strengthening the forestry sector governance. It will remain a living document

and will be updated as issues emerge or are resolved and additional mitigation measures are

developed during project implementation.

Country Context

2. Bangladesh has historically scored poorly on international governance indices, albeit with

modest progress in recent years. There are entrenched difficulties in improving public sector

performance. The Government of Bangladesh’s efforts to bolster its legal framework to counter

corruption, including the empowerment of an Anti-Corruption Commission, and joining the UN

Convention against corruption have yet to yield measurable gains. Institutions of accountability

are weak and country systems to deter corruption such as asset statements or prosecution of

corruption cases are rarely enforced. These capacity and governance challenges in the

Bangladesh’s public sector, combined with the susceptibility of civil works projects worldwide

to fraud and corruption, emphasize the importance of a GAAP that harnesses a range of sound

measures to strengthen governance in the forestry sector and prevent and mitigate corruption at

the project level.

3. The Bank’s strategy for improving governance in Bangladesh, laid out in its 2011-2014

Country Assistance Strategy (CAS), focuses on developing accountability mechanisms in public

sector operations, especially through increased transparency. The Bank seeks to align with

Government priorities in developing the means of accountability, especially strengthening of

public financial management, support for local government, use of information and

communication technology (ICT) and the adoption of a Right to Information (RTI) regime. In

particular, the Bank is working with the Government to improve budgeting practices among line

agencies in conjunction with enhanced accountability mechanisms. Bank is working to increase

the role and quality of oversight of public finances by the Parliamentary Accounts Committee,

improve capacity of the Comptroller and Auditor General’s Office, and promote greater public

understanding of public financial management to build more informed demand and ability to

hold Government accountable. The Bank’s strategy also focuses on improving public service

delivery, a key component which is fostering greater accountability to recipients of services

including through a strengthened role for local government. The Bank supports the

Government’s efforts to establish functioning RTI regime, including building capacity in all

86

agencies to provide information more fully and efficiently. The Bank also continues to

emphasize the importance of building demand for good governance among civil society. This in

turn requires engaging with the civil society and monitoring the performance of, the public

sector.

Objectives of GAAP

4. The GAAP’s main objective is to contribute towards strengthening governance and anti-

corruption systems in the project and in the forestry sector for achieving project development

objectives. It will achieve this objective by:

Strengthening transparency mechanisms through provision of information to all

stakeholders about the Project, its objectives, process and requirements in a timely

manner, understandable form and using appropriate means for reaching all in Project

areas; disclosing information on BFD web site and in mass media.

Ensuring meaningful participation of all eligible beneficiaries in all stages of the Project

through developing, testing and introduction of a new approach to selection of

beneficiaries for social forestry program through transparent, open and inclusive process

at the lowest level of government, i.e., Union Parishad level with engagement of

communities in all stages of selection and affirmation; developing and implementation of

Targeting and Selection Strategy with clear indicators and scoring system for selection of

beneficiaries for alternative livelihoods program, introducing participatory affirmation of

selected beneficiaries at the community level with participation of local government

representatives; introducing and strengthening participatory management of group level

funds; ensuring equity in sharing forest benefits among the local population.

Enhancing accountability through continuous monitoring of project implementation,

procurement monitoring and input tracking for ensuring that resources allocated by the

project are spent for the intended purposes and directed to the beneficiaries of the project;

RS system will be used for monitoring and verification of project outcomes in

afforestation and reforestation of areas; improving feedback flow mechanisms between

beneficiaries, civil society, and project authorities, as well as establishment of grievance

redress mechanisms.

Key governance issues in the project

4. Institutional weaknesses in the implementing agencies can pose risks to the project.

These risks can lead to poor oversight and resulting problems with the delivery of payments and

goods which in turn undermine project effectiveness. Although BFD implemented three IDA

projects successfully during 1980-2001, the present mid-level officials do not have experience in

managing large scale project and IDA procedures. In absence of transparent monitoring system

and information dissemination system, the general perception about the forestry program is not

very encouraging.

87

5. The major governance and corruption related risks will be in fraudulent practices in

carrying out afforestation and in procurement of works. These and other governance risks are

listed below:

There is risk of nonperformance and potential fraud and corruption owing to weak

institutional capacity for control and accountability and poor internal incentives for staff.

BFD is seriously underfunded. Funding for its afforestation and reforestation activities

mostly come from the development projects outside of its usual operations, with poor

control systems apparently contributing to mixed results. The area of actual afforestation

is in practice difficult to verify and attribute to specific investments. BFD field staff has

no strong institutional incentives to carry out afforestation and reforestation in terms of

either reward or punishment for correspondingly good or bad performance. In that

connection, BFD comes under criticism from the civil society on tangibility of its

performance. The Project will mitigate this risk of nonperformance through a RS

monitoring approach using GIS for verification of all afforestation and reforestation

activities to ensure achieving project targets. It will also build capacity in terms of

additional staff, accounting systems, and use of audits to monitor against abuse.

There is substantial risk in institutional arrangements for land tenure and use of forest

resources. There is significant confusion, overlap and conflict in policy and legal acts

related to forestry which inhibits many afforestation and reforestation activities. The

rights to some forest covered lands are not legally formalized and under conflicting

claims, resulting in mostly taking them by the Land Ministry to be leased out to private

interests for agricultural and other productive purposes. BFD will ensure that all lands to

be afforested and reforested using project funds will be public and not under conflicting

claims, as well as clearly under BFD jurisdiction. Project will introduce screening

process for verification of tenure status of affected lands to be executed before

afforestation/reforestation activities start.

There is potential abuse in the application of social forestry and inclusion of intended

beneficiaries in the project. Social Forestry Rules (latest version is of 2011) clearly define

eligibility criteria for people participating in afforestation and in sharing benefits from the

planted trees. These criteria are indeed pro-poor and gender-sensitive, but the selection

process is being heavily influenced by local political powers and vested interests.

Currently this process is not transparent or inclusive and in most cases leads to significant

delays in the affirmation process and in some cases to exclusion of really poor and

vulnerable members of community. According to the Rules, the final approval of the

selected beneficiaries is to be made by the Upazila Parishad. However, this is where

selection process gets sometimes manipulated and misused due to political pressure and

other vested interests. In addition, the beneficiary selection process has been delayed in

many cases at the Upazilla level for many years, which significantly hampers the

community participation in afforestation and reforestation program. The Project will

provide a model for good forest governance in selection of beneficiaries for social

forestry program through decentralized decision making, and engagement of

communities. It will also institute monitoring mechanisms through Forestry Department

officials, an extensive transparency/right to information campaign to appraise all persons

88

on the procedures, benefits, and performance of the project, and a robust grievance

mechanism and response protocol.

Poor governance and enforcement mechanisms pose a threat to forest resources in general

and specifically for those areas which are targeted by the project. Illegal harvesting of

timber and other forest resources leads to deterioration of forest ecosystems and depletion

of its resources. With limited resources and manpower BFD is not capable to prevent

such illegal and unsustainable use. Project will develop and support community

protection of forest resources, especially of fragile and ecologically important forest areas

through general awareness raising, capacity building and mobilization of informal

Community Patrolling Groups (CPGs) to aid forest rangers and beat officers.

There is substantial financial management and procurement risk owing to weak Forest

Department capacity. This lack of capacity can lead to delays in project implementation

or provide opportunity for misuse of funds, as well as more generally hindering

achievement of project objectives. There is a risk for fraud and corruption among parties

engaged in procurement process. The procurement, financial management and

monitoring systems in BFD need to be strengthened. Project will develop financial

management and procurement manual with guidelines and reporting formats. PIU will

employ Procurement Specialist who will be responsible for preparation of all tenders,

review of bidding documents and administer contracts. Procurement documents will be

verified by the Bank during supervision process. Bank will also employ consultant for

providing support to the PIU on implementation issues who would also monitor

following agreed procurement guidelines. In order to strengthen financial management,

PIU will employ two persons: Financial Management Specialist and Accountant. In

addition, all 10 Forest Divisions will employ Accountant for proper accounting and

financial reporting.

5. A major implementing entity will be AF. The channeling of resources for beneficiaries

in communities through this established NGO is an important governance and fraud & corruption

risk mitigation measure for the project. Its institutional performance and capacity are strong. AF

has demonstrated successfully managing small scale contract for NGO selection and contract

management. The AF operates under a strong internal control framework and follows

Operational Manual that has transparency mechanisms required for accounting from the AF and

its implementing partners. There are Finance Standing Committee and Program & Operation

Standing Committee that oversee AF operations. Implementation Manual includes detailed

procedure for managing, monitoring and controlling the financial activities of the Implementing

Partners (IP) to ensure that funds are used for intended purposes and mitigate any risk of

corruption, misuse and misappropriation of AF funds by the IPs.

6. AF operates with own Grant Management Software (GMS) for planning, recording and

reporting financial activities of the IPs, which allows it to electronically monitor and analyze the

financial activities and progress of the IPs. The GMS is updated by the IPs with details of the

financial planning & actual transactions and are critically reviewed by AF on a quarterly basis

before disbursing any fund to the IPs.

89

7. AF will provide supervision and back stopping to partner NGOs with periodic monitoring

in the field. There is a risk of not including really poor, marginalized and forest dependent

households in alternative livelihoods program under the pressure from local elite and power

holders. To enhance participation of communities in project activities, AF will take among

other, the following measures:

AF will develop Awareness Strategy and Plan, and train partner NGOs in its

implementation at the inception workshop. This strategy will contain information to be

disseminated about the Project, its objectives, processes and benefits for the target

population, details of selection process of participants; target audience to reach, such as

local government offices, local civil society organizations, community based

organizations, community members in generals, and especially Indigenous Peoples’ (IP)

communities, poor and women; and means to reach them (through messaging to mobile

phones, using loud speakers, focus group discussions with poor, women and vulnerable;

separate community meetings with IP communities). Awareness Strategy will be also

posted on the AF and BDF web sites for wider disclosure purposes.

AF will develop TSS, which will clearly define the selection process, starting from

identification and ending with community affirmation of project beneficiaries. It will

also have a set of eligibility criteria and scoring system for selection of members of

Forest Dependent Groups. TSS will be based on participation of community in the whole

process. TS Plan will have dates for community meetings and for all steps in selection

process.

8. There are risks of sustaining the benefits from the project in communities. AF will

develop exit strategy, where it will clearly stipulated steps and procedures to conduct full transfer

of ownership of Project endowment funds to community groups. Partner NGOs will implement

exit strategy under the monitoring of the AF. At the levels of FDGs, all financial decisions will

be recorded in the minute books and access to books and records will be available to all members

to ensure that transparency and oversight are maintained. Necessary financial information

including funds released to FDGs; and annual audit report of the project will be made available

in public domain through the AF website.

9. While it has strong capacity, AF has no experience in working with Bank funded

projects. It’s Finance and Administration Officer will participate in initial training on

procurement and financial management to familiarize with the IDA competitive procurement

process of bigger size contracts and financial management and reporting. AF will be working

closely with the Financial Management Specialist at PIU.

10. There is a clause for misuse and misappropriation of AF fund in Implementation Manual

and always in each Grant Agreement between the AF and IPs resulting in refund.

11. As it is stipulated in SMF, Project will establish grievance redress mechanism at the local

level to address issues on participation, inclusion and benefits sharing. Complaints will be

recorded at Project site level. According to the nature and seriousness of the complaints they

will be prioritized and addressed by enquiry group, comprised of partner NGO representative,

90

project site coordinator, FD officer, local government representative and other local

representatives.

12. Bank will apply sanctions as per its guidelines if it determines incidences of fraud,

corruption, collusion, coercive, and obstructive practices. Information on the Bank’s sanction

process can be found at the website www.worldbank.org/sanctions. In addition, the Bank will

coordinate with BCCRF Management Committee in the event of misconduct issues.

13. These sanctions may include fines, blacklisting, suspension of disbursements, or

ultimately cancellation with respect to that contract. The Bank will seek first to remedy cases of

corruption through cooperation with the implementing agency. Any entity that is found to have

misused funds may be excluded from subsequent funding. Information regarding such cases,

where lessons are learned and funds are retrieved, will be widely disseminated.

14. The GAAP proposes actions for each of these issues, timeline for each action, and

responsible agency for implementation. There are also some “early warning indicators” which,

if monitored properly, would enable timely actions for course correction.

Monitoring arrangements

15. The GAAP will be monitored regularly against agreed actions which will be reflected in

the project’s periodical progress reports and aide-memoires. This will be a joint responsibility of

PIU of BFD and AF. The GAAP matrix will be used widely for monitoring purposes. Project

intermediate indicators include governance indicators on participation, inclusion, accountability.

Any ‘early warning’ indicators of governance and accountability risks will be monitored

regularly so that corrective measures could be carried out promptly.

16. PIU, Bank Implementation Consultant, and designated AF staff will undertake field

supervision and verification of Project results. Monitoring shall include both quantitative

measures of implementation of actions (e.g. numbers of complaints received, followed up and

resolved, numbers of persons at accountability meetings), recording of benchmarks (e.g.

establishing scientific baseline of plantation areas with RS and GIS, establishment of third party

monitoring), as well as qualitative reporting on the efficacy of measures and instances where

problems were corrected through these mechanisms. Its reports shall be submitted to PIC,

BCCRF Management Committee, and Bank simultaneously.

Bank Supervision and Surveillance

17. Supervision arrangements, particularly for plantation at the field level, will be extensive.

The Bank will also conduct regular monitoring between supervision missions, including random

visits by local consultant to the plantation sites on a regular basis in the first three years of the

project, when plantation will be taking place, to keep the Bank informed of issues arising in

afforestation and reforestation. The Bank will conduct a mid-term review of the project in

September 2015. Detailed plans for supervision by the Bank are given in Annex 5.

18. In terms of monitoring progress on the GAAP, Bank will conduct six-month reviews for

the first 18 months and then successive annual reviews of GAAP implementation. The review

http://www.worldbank.org/sanctions

91

will assess progress, gauge the efficacy of measures, agree among all parties on areas for

improvement, and make adjustments as appropriate. Bank will update its assessment of GAC

risks on an ongoing basis, and anticipates that adjustments to the GAAP will be likely to reflect

what will be most effective in the context of the project.

92

Governance and Accountability Action Plan Issues/Risk/

Objectives

Actions to address the issues Responsible

agency

Timeline Early warning signs

Institutional Risks

Weak institutional

capacity and internal

incentives for

performance

Project will establish RS System to track and verify

afforestation/reforestation results

Random verification of sites by external party

PIU

IDA team,

Independent

Monitoring Firm

At the beginning and

end of project period

Several times a year,

Six-monthly

Discrepancy in areas under planned

and actual afforestation

Poor tenure regime

for forest resources

Project will ensure that only land areas with formalized tenure and

under jurisdiction of BFD are selected for afforestation and

reforestation through screening

Information on sites to be covered by afforestation and reforestation

is disclosed on the BFD and AF web sites with feedback

mechanisms installed.

PIU/Project site

offices

As soon as area is

identified

Feedback received on specific land

plots

Strong political

influence on local

level on selection of

project areas leading

to changing sites

leading to delay and

ineffective use of

resources

BFD will be bound to a map with areas agreed for

afforestation/reforestation with maximum 15% discrepancy.

Livelihood activities will start only when areas is confirmed for

Afforestation activities.

BFD, IDA team,

and AF

Map will be agreed

within 2 months of

Project inception

Requests to change land plots are

received from the BFD

Lack of transparency

and governance

arrangements in

selection of

beneficiaries for

Social Forestry

program

AF will develop Targeting and Selection Strategy (TSS) and Plan

with clear objectives, processes, indicators and scoring system for

selection of areas and beneficiaries for Project activities.

Joint planning by BFD and AF in participants selection as

Afforestation/Reforestation beneficiaries and AIG activities

Instead of beneficiaries selection at the Upazila level, selection of

participants at union level through an transparent process

Proper assessment and verification of potential applications of

participants. Well documentation of assessment and selection

process.

BFD, AF, Third

Party Monitor

First 3 years Delay in receiving progress report

on public meeting and participation

selection

Report of third party monitoring

93

Issues/Risk/

Objectives


agency


Establish proper Grievance Redress Mechanism to handle the

complaints.

Third party monitoring for cross verification

Fiduciary

Lack of procurement

and financial

management capacity

Establish PIU in the BFD and Project Office in AF with qualified

staff and externally hired consultants

One Financial Management Specialist and one

Accountant will be hired at PIU who will support both the

BFD and AF

10 Accountant will be hired at 10 Divisional Forest

Offices for physical verification and reporting in

appropriate formats

One Procurement Specialist will be hired at PIU who will

support both the BFD and AF

10 Community Mobilization Officers will be hired at 10

Divisional Forest Offices for community awareness,

monitoring and safeguard support

One Project Manager will be hired at PIU to strengthen

the overall management and technical support.

Financial management and procurement training will be provided to

the PIU staff engaged in the project and a project-specific training

will be provided during the initial stage of the project

implementation.

Computerized financial management system will be introduced

with adequate training facilities.

Payment for goods including materials for plantation shall be made

only after inspection of goods on receipt by the accountant officer.

System to be developed for keeping all procurement related records

and making available of records and documents for internal and

external audit and procurement post reviews by the Bank.

Data quality assurance and monitoring system to be developed by

adopting new monitoring guidelines and strengthening RS and GIS

BFD, AF

BFD, AF

BFD

BFD, AF

BFD, AF

BFD

Within 2 months of

Project Inception

Within 6 months of

Project Inception

Within 6 months of

Project Inception

Throughout Project

Implementation

Throughout Project

Implementation

Throughout Project

Implementation

Delays in conduct of procurement,

execution of contracts, processing of

payments, filing reports

Delays in reporting

94

Issues/Risk/

Objectives


agency


Internal Accountability System

Need to improve

internal

accountability

mechanisms

Regular reporting on the progress and issues to the BCCRF

Management Committee by BFD and AF

Establish a PIC chaired by the Chief Conservator of Forests to

regular activity review and provide guidance to PIU and AF

BFD, AF Throughout Project

Implementation

Committee to be set-

up before Project

Inception

Delay in reporting

Committee not set-up timely

Information Dissemination and Transparency

Citizens lack

information for

project results and

implementation

Undertake regular reporting by PIU and AF project Office on

implementation

Appointment of Designated Officers to implement the Right to

Information Act and oversee proactive disclosure of budget,

program, and performance information through means suitable to

reaching the citizens

Regular information dissemination through website, meetings with

stakeholders, and posting of information in UP and Upazila offices

in targeted communities

AF will develop and implement Information Dissemination and

Awareness Strategy and Plan, including designation of an RTI

Designated Officer, which will include all messages, means and

audience for delivering information to local government, target

communities to enhance participation and inclusion.

BFD, AF Throughout Project

Implementation

By Project

effectiveness

Within 2 months from

Project inception

Lack/delay of routine reporting

Delays in appointing Designated

Officer

Delays in uploading and updating of

information on website

Afforestation and Reforestation

Poor quality seeds

resulting less

germination and

seedling

Poor Nursery

practices

Training of BFD field staff for identification and collection of

mature and quality seeds

At least 10 percent seeds and site checking by the DFO to ensure

quality

Third party monitoring for quality control

Hiring an international nursery expert to review the nursery and

operations manual

BFD, Third

Party Monitor

First 3 years Field visit report of DFOs

Field supervision of the Bank

Consultants

Third Party Monitoring Results

95

Issues/Risk/

Objectives


agency


Improve monitoring

of actual plantation

Identification of the proposed land during the project preparation

Mapping of the proposed plantation sites by RS, GIS and field

verification at the beginning of the project. Similar exercise and

comparison at the end of project to identify the difference

Third party monitoring for cross-checking the actual plantation

areas

BFD

BFD, Firm

Third Party

Monitor

During Preparation

and Done

First year and last year

of Project

Throughout project

implementation

Strong baseline for comparison later

on

Third party monitoring results

Illegal Forest Resource Extraction

Illegal deforestation

and forest resource

extraction

Local communities and other stakeholders will be made aware of

the value of forest resources and the potential benefits of

sustainable forest management through capacity building and

awareness program, reporting to community assemblies.

During plantation, involving local communities as labor, and in

Community Patrolling Groups to protect from illegal and

unsustainable use.

Alternative livelihoods support to the forest dependent communities

Support the community to work as forest guard (volunteer) in order

to protect forest and new plantation.

Capacity of the BFD Field staff strengthened to protect and

communicate about the illegal deforestation and forest resource

extraction.

BFD, AF

Throughout

implementation

Absence of community monitoring

Reporting for the different sources

including media

Fund Management at Community Level

Management and

ownership of assets

and finances at the

community level

provided by the

project

AF will develop Guidelines for Rules and Regulations on

Management of Mutual Rotating Saving and Loan Program

(MRSLP). These guidelines will ensure arrangements for effective

and transparent management of funds at the local level, information

dissemination on allocation and repayments.

AF will develop Exit Strategy with clear procedures, mechanisms

for transfer of ownership over finances and assets provided by

project.

AF Three month of

Project inception

Third year of Project

implementation

AF and partner NGOs will monitor

compliance of group MRSLP with

general guidelines

Partner NGOs will review book

keeping at the community level for

updated records

Third party monitoring reports

96

Annex 7. Economic and Financial Analyses

1. The economic and financial analyses of the project are based on the Cost-Benefit

Analysis (CBA) approach. The economic analysis includes separate CBAs for

Components 1 and 2, and then captures the results into an aggregated CBA at project level.

The financial analysis addresses the financial viability of the project from the perspective

of the main stakeholders involved: Government (Forest Department, BFD) and

communities.

Economic analysis

2. The economic analysis includes four CBAs, relating to: (i) Component 1.

Participatory afforestation and reforestation (US$22 million); (ii) Component 2.

Alternative livelihoods to support forest communities (US$4 million); (iii) Integrated

analysis for Components 1 and 2; and (iv) Integrated analysis at project level (except for

Component 4. Project management). All analyses use a discount rate of 10 percent and a

time horizon of 30 years, to account for the climate change benefits of the project.

(i) Component 1. Participatory afforestation and reforestation

3. Table 7.1 identifies the main costs and benefits related to Component 1. The

indirect benefits from coastal forests (e.g., off-shore fishery, storm protection) differ

substantially from those provided by hilly forests (e.g., landslide protection). Thus, the

CBA is carried out separately for coastal and hilly forests.

Table 7.1: Benefits and costs linked to Component 1 Type of benefit Coastal areas Hilly areas

Costs

Afforestation costs Afforestation costs

Opportunity cost of land Opportunity cost of land

Rehabilitation of field infrastructure Rehabilitation of field

infrastructure

Beneficiaries’ selection, monitoring

and evaluation

Beneficiaries’ selection,

monitoring and evaluation

Benefits

Direct uses Wood (strip zone)

NWFPs

Wood (buffer)

NWFPs

Indirect uses Off-shore fishery Protection from landslides

Storm protection

Non-use Biodiversity Biodiversity

Note: Forests may provide additional benefits compared to those mentioned in the table. For example,

forests may protect against storm surges also in hilly areas that are close to sea and vulnerable to cyclones.

Coastal areas

4. This section estimates the costs and benefits related to coastal forests on 7,200 ha

and 1,672 km. They include mangroves (5,700 ha), mound (427 ha), Jhaw (410 ha),

97

enrichment (260 ha), non-mangrove plantations (400 ha), golpata (635 km) and strip

(1,037 km). Wood will be harvested from the strip zone, with a rotation period of 15

years. Table A at the end of this Annex presents the detailed distribution by year of the

estimated costs and benefits.

Costs

5. Afforestation and harvest. Afforestation costs refer to nursery raising, plantation

and maintenance. Thirty percent of total area is afforested in the second project year, 50

percent in the third year and 20 percent in the fourth year. Each plantation is preceded by

nursery raising and followed by two-year maintenance. Labor cost varies from as low as

32 percent of total cost of nurseries and plantation (for golpata) to 99 percent of the total

cost of maintenance (for strip plantations).31

We use a conversion factor of 0.75 to express

the opportunity cost of unskilled labor in coastal areas.32

Accordingly, the PV of the cost

of afforestation is estimated at BDT. 380 million and that of the harvest cost is BDT. 30

million. Adding up these estimates, total cost of afforestation and harvest attains BDT.

410 million.

6. Opportunity cost of land. This is the value of activities or land uses that will be

forgone on the areas afforested by the project. Currently, this area is used primarily for

grazing and fishing. We assume that only grazing will be restricted for 3 years (plantation

and maintenance years), to allow for natural growth. The net returns from fodder grazed in

this area are roughly estimated at BDT. 18,000 per hectare per year.33

Therefore, the

opportunity cost on 7,200 ha of land is BDT. 269 million.34

7. Rehabilitation of field infrastructure. Assuming that the efforts of rehabilitation

(about US$3 million) are equally distributed between coastal and hilly areas, the PV of the

cost related to coastal areas is BDT. 93 million.

8. Beneficiaries’ selection, monitoring and evaluation. Selection of project

beneficiaries occurs in the first project year. Monitoring and evaluation cover the

successive years of the project. The PV of this cost is estimated at BDT. 38 million.

9. Overall, the economic cost on coastal areas is BDT. 811 million.

31

Labor cost varies according to the type of forests. It represents 45 percent of the total nursery and plantation cost for mangroves, 83

percent for mound, 40 percent for jhaw, 32 percent for golpata, 45 percent for enrichment, 43 percent for non-mangrove, and 40 percent

for strip plantation. Labor cost accounts also for 79 percent of the total maintenance cost for mangroves, 89 percent for mound, 84

percent for jhaw, 90 percent for golpata, 97 percent for enrichment, 91 percent for non-mangrove and 99 percent for strip (Choudhury 2012). 32

It represents the shadow wage conversion factor for skilled and unskilled labor in the construction and crop cultivation sectors in

Bangladesh. It is estimated by dividing the shadow wage of unskilled labor (BDT150) to the market wage (BDT 200). The former is calculated based on the market wage during peak and lean seasons, unemployment rate and the social cost of consumption. Reference is

made to the detailed calculations are provided in the economic analysis of the Coastal Embankment Improvement Project (CEIP). 33

It corresponds to the difference between the gross benefit of BDT. 30,000 (2000 bags of fodder at a price of BDT. 15 per bag) and the

labor cost of BDT. 12,000 (60 days). 34

It is assumed that grazing does not affect the strip plantations.

98

Benefits

10. The estimation of the benefits below is based on the assumption that forests are

maintained during and after the end of the project. This is particularly important in case of

intangible services such as storm protection benefits provided by mangroves. To account

for any uncertainty, the CBA is followed by a sensitivity analysis to different deforestation

rates.

11. Timber. Timber will be extracted from strip plantations in the 15th

year. According

to the FD, yields include poles (7-8 m3/km), saw logs and peeler logs (19 m

3/km) and fuel

wood (11 m3per hectare). Average stumpage prices are BDT. 70 per pole, BDT. 12,600

per m3 of saw logs and peeler logs and BDT. 1,260 per m

3 of fuel wood. Accordingly, the

PV of wood benefits from 1,037 km of strip is estimated at BDT. 239 million.35

12. NWFPs. Statistics on harvested NWFPs in Bangladesh are scarce and outdated. It

is however acknowledged worldwide that mangrove forests provide a wide range of

benefits, such fisheries, bamboo, honey, coastal protection, etc. Table 7.2 provides

available estimates for different NWFPs from mangroves in Asian countries. Rönnbäck’s

(1999) summary of mangrove valuation studies reveals that the marketed value of fisheries

dependent on mangroves ranges from US$850 to US$16,750 per hectare per year. Other

estimates are substantially more conservative, such as for India and Southern Thailand.

Adjusting the most conservative estimate (US$88 per hectare in Southern Thailand) to year

2011, and considering a survival rate of 80 percent (World Bank 2002), the annual NWFPs

benefit would be US$87 per hectare in 2011. Assuming that mangroves will provide these

benefits starting with the fifth year, the PV of these benefits is BDT. 374 million.

Table 7.2: NWFPs provided by mangroves Country Type of benefit Results (US$/year) Author

Thailanda aquaculture, mollusks,

crustaceans, mangrove forest

products

1,336-6,011/ha IUCN 2006

Several

countriesb

fish, crustaceans, mollusks 750 – 16,750/ha Rönnbäck 1999

India fodder, fuel wood, construction,

crabs and mudskipper

420/ha Gujarat Ecology

Commission 2004

Southern

Thailand

in-shore fish, shrimp, crab,

mollusks, honey, wood for fishing

gear

88/ha Sathirathai and Barbier

2001

Bangladesh and

India

fuelwood, fish, shrimp, crab,

honey

284/ha Santhakumar et al. 2005

India in-shore fish 1.9/ha Badola and Hussain 2003

Notes: a

Ban Naca and Ban Bang Man; b

review of studies carried out in Indonesia, Malaysia, Philippines,

Thailand, South Africa, Australia, etc.

35

Additional benefits include wood removals from thinning, for which no data is yet available.

99

13. Off-shore fishery. By fertilizing the sea, mangroves serve as breeding and feeding

grounds to support off-shore fishery36

(Ramaiyan et al. 2002). Fish diversity tends to be

higher during winter season and lower during monsoon (Saravanakumar et al. 2009;

Kathiresan and Rajendran 2002). No study has estimated the value of off-shore fishery

provided by mangroves in Bangladesh. Sathirathai and Barbier (2001) estimated this value

in Southern Thailand at US$21-69, averaging to US$45 per hectare of mangrove37

.

Assuming that the project’s mangroves will provide these benefits starting in the fifth year,

the PV is BDT. 191 million.

14. Storm protection. Available literature focuses mostly on the linkages between

mangroves and storm protection benefits. Though their ability to protect against storm

damages has been much debated, recent studies argue that mangroves can provide

significant protection from surge during cyclones (Box 1). We estimate the protective role

of the project’s mangroves in terms of averted deaths and house damages based on the

most comprehensive work to date (Das and Vincent 2009; Das 2009).

Box 1. Do mangroves protect against storm surges? (Findings from available

literature)

Efforts to estimate the coastal protection benefits of mangroves are difficult, due to a high degree of spatial

variation in impact, depending on topography, vegetation properties, and the types of storms involved. For

example, Kabir and others (2006) model the effect of mangroves in reducing storm surge from a 1970

cyclone on Hatia Island in Bangladesh. They find that while in some locations mangrove afforestation with a

width of 133-600 meters leads to reduction in storm surge height of 0.18-0.45 meters, in other locations the

protective benefits were negligible.

Mazda and others (1997) study mangrove zone on the Tong King delta in Vietnam, and find no significant

reduction in storm surge in areas with immature mangrove cover, but wave height reduction of 20 percent per

100 meters of mangrove in areas with sufficiently tall trees. Badola and Hussain (2005) measure economic

losses in three villages in Orissa hit by a 2005 cyclone, and find the greatest loss per household was suffered

in a village with an embankment but no mangroves ($153.74), followed by a village with no embankment

and no mangroves ($44.02) with the least damage occurring in a village with mangroves ($33.31). Barbier

(2007) estimated the storm protection value at US$14,200 per hectare of mangroves per year, through the

cost of constructing artificial breakwaters to prevent coastal erosion.

The above studies are however constrained by several drawbacks, including non-consideration of socio-

economic, environmental factors and meteorological variables such as sea level elevation and radial wind.

More recent research (Das and Vincent 2009; Das 2009) incorporated these influences in more

comprehensive statistical analyses. The authors find that in case of 1999 Orissa cyclone, mangroves in

Kendrapada district significantly reduced the number of deaths within 10 km of the coast. Based on the same

cyclonic event, they estimate that mangrove width should be at least 0.35 km to avoid human death and 3 km

to provide protection to houses. In addition, a recent review found that mangroves can protect against

erosion, storm surges and potentially small tsunami waves (Gedan et al. 2010).

15. Averted deaths. Das and Vincent (2009) analyzed statistically the role of coastal

mangroves in averting deaths caused by the 1999 super cyclone Orissa. They predicted

36

This function is an indirect use value, which is different than the in-shore fish catch, estimated within the NWFPs section. 37

The benefit remains the same after adjustment with the survival rates and differences to 2011.

100

that mangroves within 10 km of the coast saved 0.0148 lives per hectare38

. We assume

that the project’s mangrove plantations provide a similar protective value against super

cyclones in Bangladesh.

16. Cyclones hit the coastal regions of Bangladesh every year. Table 7.3 provides basic

information about the different types of cyclones that make landfall in the country. Each

year, the probability of a super cyclone is at least 10 percent (Dasgupta 2010). Thus, the

project’s mangroves (5,700 ha) would be able to save 84 lives with a probability of 10

percent in the fifth year of analysis.

17. Coastal population in Bangladesh is projected to grow 1 percent per year until

2050. At the same time, the development of alternative protective measures over time (e.g.

cyclone shelters, more resilient houses) is expected to reduce forests’ lifesaving benefit.

Accordingly it is assumed that, over time, the protective role of mangroves will decrease

proportionately with the trend of more resilient houses,39

until 2050.

Table 7.3: Types of cyclones in Bangladesh

Type of cyclone Wind velocity (km/h) Storm surge (m)

Probability of occurrence every

year (%)

Super cyclone > 220 6-7.8 10

Very severe cyclone 119-220 2.5-6 20

Severe cyclone 90-119 1.5-2.5 30

Source: MCSP (1993) for wind velocity and storm surge. Dasgupta (2010) for probability of occurrence.

18. Attaching a monetary value to human life is difficult. The most appropriate

measure of the benefit from reduced risk of fatality is the “Value of Statistical Life” (VSL),

which seeks to estimate the monetary equivalent of improved well‐being for individuals

from reduced mortality risk. Local surveys estimating the VSL for Bangladesh are not

available. Thus, the VSL for Bangladesh is estimated at US$230,000, after updating the

United States central estimate of US$7.4 million (2006) available from the Environmental

Protection Agency (EPA) with price adjustment between 2006 and 2011 and GDP

differential between United States and Bangladesh.40

38

The model predicted that there would have been 1.72 additional deaths per village within 10 km of the coast if mangrove width had

been reduced to 0. 39 ‘Pucca’ houses are currently the most resilient houses and form about 4 percent of total houses. Over 30 year period,

they are expected to increase to 71 percent (based on data collected from the country’s Household Income and

Expenditure Survey (2005) and the Statistical Yearbook of Bangladesh (2006). 40Other studies in Bangladesh (World Bank 2010). Bangladesh: Economics of Adaptation to Climate Change Study;

BDS. 2012. The Cost of Adapting to Extreme Weather Events in a Changing Climate; DEC Research Policy Working

Papers 5280 and 5469) use the same method for estimating the VSL. It is expected that the estimated VSL will grow over

time, as a result of improved education and income due to economic growth. However, because no information is

available on the predicted increase in the VSL, this analysis conservatively assumes a constant VSL value over time.

101

19. Conservatively assuming only 50 percent of the VSL estimated above, the life-

saving benefit of mangroves is valued at US$5million or BDT. 382 million. This value is

just a rough estimation of the protective role of mangroves.41

20. Averted house damages. Das (2007) estimated the protective benefit of mangroves

in terms of averted damages to residential property caused by the 1999 super cyclone

Orissa. She found that mangroves significantly averted the number of fully collapsed

houses, to the extent of US$23,200 per kilometer width of forests or US$1218 per hectare

of forests. Assuming a similar protective value for this project means that one-hectare of

mangroves in Bangladesh would avert US$560 worth of housing damages caused by super

cyclones, after adjusting for GDP differentials.

21. The number of households in the districts worst affected by cyclone Sidr was 12.4

million in 2007 (GoB 2008). Projection of population in coastal regions by 2050 indicates

that an additional 7.1 million inhabitants will be exposed to significant damages from

storm surges in a changing climate. Considering an average family size of 4.9, this

corresponds to 1.5 million houses. In addition, the larger areal extent of a cyclone under

climate change means that an additional 1.6 million houses could be damaged from a 10-

year return period cyclone due to climate change (Dasgupta 2010). Thus, by 2050, the

number of houses vulnerable to storm surge from a 10-year return period cyclone would be

15.5 million. This corresponds to an average annual increase of the number of houses of

0.5 percent per year.

22. We assume that the protective value provided by mangroves start in the fifth

project year (US$560/ha) and increase by 0.5 percent per year for the 30-year period.

Accordingly, the PV of house protection benefits is estimated at US$2.1 million, or BDT.

168 million (b). As in the case with the benefit of averted deaths, this valuation is a rough

approximation of the overall benefit.

23. Overall, the economic benefits in coastal areas add up to BDT. 1.4 billion.

Cost-Benefit Analysis for coastal areas

24. The results of the CBA in coastal areas are positive, with a NPV of BDT. 544

million, a benefit-cost (B/C) ratio of 1.7 and an Internal Rate of Return (IRR) of 13 percent

(Table 7.4).

Cost-Benefit Analysis for hilly areas

25. The analysis includes the costs and benefits related to the core (3,878 ha) and

buffer zones (5,925 ha). Timber will be harvested from the buffer zone, with a rotation

period of 15 years. Table B at the end of this Annex presents the distribution by year of

the estimated costs and benefits.

41

It may easily underestimate the benefit, by not including averted losses in terms of injured people.

102

Costs

26. Afforestation and harvest. Afforested lands on hilly areas are distributed similarly

to those on the coast: 30 percent of total area in the second project year, 50 percent in the

third year and 20 percent in the fourth year. For both core and buffer zones, labor cost is

about 40 percent of the total cost of nurseries and plantation and about 90 percent of the

total cost of maintenance. We use a conversion factor of 0.75 to express the opportunity

cost of unskilled labor in coastal areas42

. Accordingly, the PV of the cost of afforestation

is estimated at BDT. 473 million and that of the harvest cost is BDT. 333 million. Adding

up these estimates, total cost of afforestation and harvest attains BDT. 644 million.

27. Opportunity cost of land. The land to be afforested on hilly areas is currently used

for grazing and fuel wood collection. The returns from these activities have been roughly

estimated at about BDT. 20,800 per hectare per year.43

Considering that the project will

forgo the benefits from these activities during plantation and maintenance, the opportunity

cost of land is BDT. 424 million.

28. Rehabilitation of field infrastructure. Similarly to the case of coastal afforestation,

the PV of this cost is BDT. 93 million.

29. Beneficiaries’ selection, monitoring and evaluation. As in the case of coastal

forests, The PV of this cost is estimated at BDT. 38 million.

30. Overall, the economic cost in hilly areas is BDT. 1.2 billion.

Benefits

31. Timber. Timber is expected to be extracted from buffer zone in the 15th

year.

According to the Forest Department (FD), yields include poles (210/ha), saw logs and

peeler logs (17 m3/km) and fuel wood (13 m

3/ha). Average stumpage prices are BDT. 70

per pole, BDT.12,600 per m3 of saw logs and peeler logs and BDT.1,260 per m

3 of

fuelwood. Accordingly, the PV of wood benefits is estimated at BDT. 1.3 billion.44

32. NWFPs. Forests in Bangladesh provide many NWFPs such as food, medicine,

honey, essential oil, spice, resin, gum, latex, fiber and floss, bamboo and cane, broom-

grass, sun-grass, mushrooms, tamarind (Zashimuddin 2004). Though the important

NWFPs generate only about 6 to 8 percent of the total revenue of the BFD, they support

the economic activities of at least 0.6 million people (FAO 2011). No statistics on the

NWFPs collected from hilly forests exist in Bangladesh. In addition, attaching a monetary

42

It represents the shadow wage conversion factor for skilled and unskilled labor in the construction and crop cultivation sectors in

Bangladesh. Detailed calculations are provided in the economic analysis of the Coastal Embankment Improvement Project (CEIP). 43

This corresponds to the net returns from grazing (BDT. 20,000) and from fuel wood (BDT. 2800/ha, similar to the benefit estimated

for Karnataka Watershed project in India). 44

Additional benefits include wood removals from thinning, for which no data is yet available.

103

value to the NWFPs is extremely difficult, primarily because many of these products have

subsistence rather than market uses. A review of the NWFPs estimates provides a mean

value of US$200 per hectare of forests in India (Chopra 1993, adjusted to 2011 prices).

Assuming that the buffer and core plantations will provide similar benefits starting with the

fifth year, the PV is BDT. 1.5 billion.

33. Protection against landslides. It is commonly known that in steep terrain, forests

protect against landslides by modifying soil moisture regime, by providing root cohesion to

soil and by maintaining secondary permeability in the soil (Siddle et al. 2006). However,

recent research shows that in extremely vulnerable zones, erosion from steep slopes occur

independently of the land use. Under certain circumstances, deforestation may increase

erosion; reforestation helps moderate the effects of some extreme rainfall events, but

without stopping erosion and destructive sediment transport45

(Wasson et al. 2008). Thus,

the role of reforestation in protecting against landslides is not yet thoroughly understood.

Estimating the forests’ benefit in preventing landslides is thus very difficult.

34. Landslides are common phenomena in Bangladesh, particularly in Chittagong and

Chittagong Hill Tract region. Unsustainable land use, hill cutting and deforestation are

blamed as major factors aggravating landslide vulnerability in these areas (Mahmood and

Khan 2008). The frequency and intensity of landslides have increased dramatically in

recent years: a landslide inventory prepared by the Disaster Management and Relief

Division (DMRD) reveals 24 major landslide events in Cox Bazar and Chittagong districts

during 2003-2010 (DMRD 2011). The landslide in 2007 in Chittagong was the worst,

causing 128 deaths and damaging about 900,000 houses.

35. Forests’ benefit in preventing landslides can be estimated through the avoided

damages that these landslides would cause in the absence of forests. In South Asia, the

effects of forest conversion on landslides have been little studied, thus uncertainties exist

related to effects of land cover change46

. Evidence of the landslide impact caused by

deforestation has been found only in Indonesia47

and Thailand48

(Sidle et al. 2006). In

central Japan, forest cover is estimated to reduce landslide erosion 4-5 times compared

with sites that lack substantial tree root strength49

(Imaizumi et al. 2008). In North

America, clear cutting in steep terrain has been shown to increase landslide erosion by 2-

10 folds (Sidle et al. 1985). However, none of these studies estimated these benefits in

monetary terms. These examples confirm the difficulties to predict the reduction in the

45

In other cases, reforestation may trigger erosion and landslides, if undertaken inappropriately, because of the weight of the trees. 46

For example, the 1988 landslides in northern Thailand during an intense monsoon storm yielded somewhat different conclusions

related to the role of converted forest cover to landslide erosion: DeGraff (1990) suggested that forest conversion to weaker-rooted

rubber plantations was responsible for a higher level of land sliding ; conversely, Phien-Wej et al. (1993) noted that landslide density

appeared independent of vegetation cover, implying that the storm magnitude overwhelmed the stabilizing influence of the different root strengths. 47

In Sumatra (Indonesia), conversion of tropical forests to coffee plantations produced 3 shallow landslides with a soil loss of 31-113

m3 per landslide occurring 14-16 years after conversion. 48

In northern Thailand, river incision and deforestation caused 16 landslides with a soil loss of 25-5260 m3 per landslide. 49

These benefits appear to be primarily associated with reducing the frequency of smaller landslides.

104

frequency and magnitude of landslides caused by the project activities. Thus, this

valuation will make use of estimates from other studies in contexts as similar as possible.

36. In North African countries, forests’ protection against erosion, floods and

landslides have been estimated in the range of US$35-42 per hectare of forests (Croitoru

and Merlo 2005). The economic value of forests for preventing avalanches is estimated at

around US$100 per hectare year in open expanses of land in the Swiss Alps up to more

than US$170,000 per hectare per year in areas with valuable assets (ProAct 2008). In

Indonesia, the annual value of forests’ protection function against floods and landslides

was estimated at US$34 per hectare of forests (IES 2009). Conservatively assuming that

the project’s hilly forests provide US$34 per hectare per year in terms of erosion, floods

and landslides prevention, the PV of this benefit after the 5th

year would be BDT. 254

million. This is a very conservative estimate, as it does not capture the lifesaving and

other avoided damages that could be potentially high.

37. Overall, the economic benefits in hilly areas add up to BDT. 3.08 billion.

Cost-Benefit Analysis for hilly areas

38. The CBA in hilly areas provides a NPV of BDT. 2.6 billion, a B/C ratio of 2.6 and

an IRR of 14 percent (Table 7.4). Afforestation costs account for the majority of the total

cost.

Coastal and hilly areas

39. Overall, Component 1 provides net economic benefits of BDT. 2.4 billion over 30

years. It has a B/C ratio of 2.2 and an IRR of 14 percent (Table 7.4). It should be

emphasized that these benefits depend on (i) the ability to maintain the plantations during

and after the end of the project50

; (ii) adopting coastal mangroves under certain technical

parameters, such as minimum width; and (iii) adopting appropriate species on hilly areas

that are able to provide good protection against landslides and erosion.

Table 7.4: Cost-Benefit Analysis of Component 1 (present value, BDT. million) Coastal forests Hilly forests Total

Costs 811 1,200 2,011

Afforestation 410 644 1,054

Opportunity cost of land 269 424 693

Rehabilitate field offices 93 93 187

Beneficiaries selection 5 5 11

Monitoring 33 33 66

Benefits 1,355 3,080 4,435

Wood 239 1,322 1,561

NWFPs 374 1,504 1,878

Off-shore fishery 191 n.a. 191

50

In absence of accurate information, the economic analysis was based on a survival rate of 80%, according to the Forest Department.

105

Storm protection (averted deaths) 382 n.a. 382

Storm protection (averted house damages) 168 n.a. 168

Landslide protection n.a. 254 254

Net benefits 544 1,880 2,424

B/C ratio 1.7 2.6 2.2

IRR 13% 14% 14%

Notes: n.a. = not applicable

40. Sensitivity analysis. The success of this component is largely dependent on the

ability to maintain these forests. Thus, we conduct a sensitivity analysis to different

deforestation rates, assuming constant deforestation rate every year after project ends51

.

Table 7.5 shows that investment in coastal forests becomes unprofitable if deforestation

rate exceeds 3 percent per year on average. In hilly areas, the NPV is less sensitive to

deforestation rates. However, the investment may become less attractive than alternative

investments at deforestation rate higher than 8 percent on average.

Table 7.5: Sensitivity analysis to different deforestation rates Deforestation rate in

coastal areas

IRR in coastal areas Deforestation rate in

hilly areas

IRR in hilly areas

1% 12% 1% 14%

2% 11% 3% 12%

3% 10% 5% 11%

4% 9% 8% 10%

5% 8% 9% 9%

(ii) Component 2. Alternative livelihoods to support forest communities

41. To maintain natural growth of afforested areas under Component 1, access of forest

communities to these lands will be limited for at least 3 years. As a result, communities

will forgo benefits such as grazing and fuel wood collection in afforested areas. To

compensate for these losses, Component 2 provides communities other income-generating

activities and benefits from plantation thinning. This section estimates the economic IRR

of this component, focusing only on small-scale livelihood activities at household level.52

About US$936,400 (BDT. 76 million) will be channeled as endowment fund to

communities. It is conservatively assumed that the endowment fund will be replenished

and used for at least the project lifetime, namely 5 years. If an average-size grant of BDT.

7,000 per household is considered53

, the endowment fund would cover about 11,000

households.

51

In addition, we simply assume that benefits will be lost proportionally to the deforestation rate, because of lack of more accurate data. 52

It was not possible to carry out an analysis of the economic activities at the community level, due to lack of data. 53

A review of the activities carried out in 2010 shows that generally, investments ranged between BDT. 4,000-10,000, or BDT.7000 on

average (AF 2011).

106

Costs

42. Direct costs of this component include the funds channeled as endowment funds

and all other administrative costs (e.g. selection of NGOs in different areas, supervision,

training), which total US$ 4 million, or BDT. 328 million. The PV of these costs amount to

BDT. 298 million.

43. Indirect costs include forgone benefits of grazing and fuel wood during the 3-years

limited access in the afforested land. Forgone benefits are estimated at BDT.

2,700/household (hh)/year - and include BDT. 2,100 worth of grazing54

and BDT. 600

worth of fuel wood.55

Total forgone benefits for 11,000 households amount to BDT. 30

million per year. The PV of these costs amount to BDT. 74 million.

44. Overall, the PV of the total cost is BDT. 372 million.

Benefits

45. Improved communities’ welfare. AF has a long track record on promoting

alternative income generating activities (AIGAs) among forest dependent people and

reducing their dependence on forest resources. According to crude estimates, gross returns

of AIGAs ranges from 1.2 to 3.1 times the investments, averaging 2.1. Assuming the

average profitability rate and an investment of BDT. 7,000, the annual gross returns for

11,000 households reach BDT. 161 million from the second to the fifth year.56

The PV of

these benefits would be BDT. 511 million.

46. Forest protection benefits. AIGAs are meant to increase protection of the project’s

afforested lands by releasing pressure on forests. These benefits have been already

included and estimated in the economic analysis of Component 1.

Cost-Benefit Analysis

47. Overall, Component 2 provides net economic benefits of BDT. 139 million. It has

a B/C ratio of 1.4 and an economic IRR of 22 percent (Table 7.6). Because the above

analysis is based on crude estimates, no strong conclusions can be drawn.

54

Hossain et al. (2005) estimate that the net benefit per cow is about BDT.10/hh/day. The average number of cattle per household is

about 1.07 in Bangladesh (BBS 2009). Considering a grazing period of about 200 days per year, the benefit from fodder is estimated at

about BDT. 2,100/hh per year. 55

Annual fuel wood consumption in Bangladesh is about 0.1 m3 per capita (Sohel et al. 2006), or 0.5 m3 per household. At a price of

BDT.1,260 per m3, the net benefit from fuel wood consumption would be around BDT. 600 per year. 56

Communities will benefit also from wood from thinning from strip plantations on coastal areas and from the buffer zone in hilly

areas, in the 4th and 7th year after plantation. Unfortunately, it is not known how much wood can be derived from thinning, on a per

household basis.

107

Table 7.6: Cost-Benefit Analysis of Component 2 (present value, BDT. million)

Costs 372

Direct costs (endowment fund and administrative costs) 298

Indirect costs (forgone benefits) 74

Benefits 511

Improved communities welfare 511

Net benefits 139

B/C ratio 1.4

IRR 22%

48. A sensitivity analysis to changes in AIGAs’ profitability rates shows that

Component 2 becomes unattractive when gross returns from AIGAs are less than 1.5 times

investment (Table 7.7).

Table 7.7: Sensitivity Analysis of Component 2 (present value, BDT. million) AIGAs’ profitability ratio NPV (million BDT.)

Base analysis (profitability ratio 2.1) 139

1.75 54

1.5 -7

1.25 -68

(iii) Integrated CBA for Components 1 and 2

Table 7.8 presents the results of the economic analyses carried out for Components 1 and

2. The integrated IRR is estimated at 15 percent57

.

Table 7.8: Cost-Benefit Analysis for Components 1 and 2 (present value, BDT. million)

COSTS 2,306

Component 1

- Afforestation 1,054

- Opportunity cost of land 693

- Rehabilitate field offices 187

- Beneficiaries selection 11

- Monitoring 66

Component 2

- Direct costs (endowment fund and administrative costs) 298

- Indirect costs (forgone benefits) 74

BENEFITS 4,946

Component 1

- Wood 1,561

- NWFPs 1,878

- Off-shore fishery 191

57

Calculated as a weighted average of the IRRs calculated previously by the cost of each component (1 and 2) [14% * (22/26) + 22%*

(4/26) = 15%]

108

- Storm protection 550

- Landslide protection 254

Component 2 - Improved communities welfare 511

Net benefits 2,564

B/C ratio 2.1

Integrated IRR 15%

(iv) Integrated CBA at project level58

49. Table 7.9 integrates Component 3 in the CBA conducted at the previous step. This

component (US$5.5 million) aims at improving forest management through technical

studies and capacity development. However, these benefits are not measurable and are

expected to take place in the long run. The integrated CBA shows a NPV of BDT. 2.2

billion, a B/C ratio of 1.8 and an IRR of 12 percent. This are conservative results, by not

capturing several benefits that will take place in the future, e.g. strengthened institutional

capacity for monitoring, etc.

Table 7.9: Cost-Benefit Analysis for Components 1, 2 and 3 (present value, BDT.

million)

COSTS 2,740

Component 1 - Afforestation 1,054 - Opportunity cost of land 693 - Rehabilitate field offices 187

- Beneficiaries selection 11 - Monitoring 66

Component 2 - Direct costs (endowment fund and administrative costs) 298 - Indirect costs (forgone benefits) 74

Component 3

- Capacity Development 357

BENEFITS 4,946 Component 1 - Wood 1,561 - NWFPs 1,878 - Off-shore fishery 191

- Storm protection 550 - Landslide protection 254

Component 2 - Improved communities welfare 511

Component 3 - Strengthened capacity of FD and communities Not measurable

Net benefits 2,206 B/C ratio 1.8

IRR 12%

58

except for Component 4. Project management

109

Financial analysis

50. This section discusses the financial viability of the project, to ensure that afforested

lands will be maintained beyond the end of the project. The financial viability depends on:

(i) the BFD’s ability to cover the costs related to the afforested areas beyond the end of the

project activity; (ii) the project’s ability to provide co-benefits to the forest community that

would stimulate the maintenance of the project’s forests. Thus, the following paragraphs

conduct a financial CBA at the levels of BFD and of AIGA grant beneficiaries.

Financial Analysis of FD

51. This analysis includes the financial costs that will be effectively covered by the

BFD and the benefits that will be received.

52. Costs. As previously mentioned, 30percent of project area is afforested in the

second project year, 50 percent in the third year and 20 percent in the fourth year.

Afforestation is followed by 2-year maintenance, implying that plantations carried out in

the 4th

year will need to be maintained during the fifth and sixth years. Since the project

extends on 5 years only, BFD needs to cover the cost of maintenance for the sixth year,

which is equivalent to a PV of BDT. 44 million.

53. Benefits include revenues from wood harvest, occurring in the fifteen year from

strip and buffer zones. As estimated in the economic analysis, the value of these benefits

reaches BDT. 1.6 billion. It is expected that BFD receive 45 percent of these benefits,59

or

BDT. 703 million.

54. Overall, the CBA is positive, with an NPV of BDT. 158 million and a Financial

Internal Rate of Return (FIRR) of 36 percent. After project closes, some resources need to

be allocated for forest maintenance. This issue has been discussed during project

preparation.

Financial Analysis of AIGAs-related grant beneficiaries60

55. To ensure natural growth, access to forest communities to the project’s plantations

will be limited for at least 3 years. As a result, communities will forgo benefits such as

grazing and fuel wood collection in areas designated for afforestation. To compensate for

these losses, the project will provide communities grants to support AIGAs and benefits

from plantation thinning. We assume that each targeted household receives an average

grant of BDT. 7000 in the 1st project year which provides revenues during second-fifth

years. Costs include forgone grazing and fuel wood benefits during the first 3 project

59

Another 45% goes to the selected beneficiaries and 10% to a tree farming fund. 60

This section focuses only on small-scale livelihood activities, at household level. It was not possible to carry out financial analysis of

the economic activities at the community level, due to lack of data.

110

years, which are estimated at BDT. 6,700/ha in PV terms. Benefits include revenues from

AIGAs, which are valued at about 1.7 times the investment61

, or BDT. 37,600 in PV terms.

Thus, the financial CBA is positive with an NPV of BDT. 27,600 per household. The

NPV could be substantially higher with the increase in the loan size and profitability rate

of the AIGAs. For example, an increase in the loan to BDT. 10,000 per household and of

the profitability rate to62

3.1 would lead to an NPV of BDT. 82,600 per household over 5

years.

56. Because the above discussion is based on crude estimates, no strong conclusions

can be drawn. However, it appears that on average, the net returns from alternative

livelihoods cover the forgone benefits from afforestation in both coastal and hilly areas.

Adopting AIGAs that provide higher benefits compared to deforestation is the minimum

requirement towards maintaining the project’s forests. However, the experience of

Integrated Conservation and Development Projects (ICDPs) has shown that offering

profitable alternative activities may not be enough to prevent households from continuing

environmentally damaging activities, as households may well undertake both, thus gaining

the benefits of the alternative activity without forgoing those of the damaging activity.

Moreover, there may be a timing problem if it takes some time for AIGAs to become

profitable. To avoid these problems, the project will incorporate lessons drawn from the

experience of other projects63

.

61

Based on individual grants of BDT 7,000 per household and a profitability rate of 1.7 (less than average), according to data from past

projects of AF. See section (ii) of the economic analysis for more details. 62

based on AF data. 63

For example, the BolsaFloresta Program in the Brazilian state of Amazonas adopted an approach based on conditionality: households

that commit not to deforest receive both assistance in establishing sustainable production systems in agricultural areas and a nominal monthly payment, conditional on complying with the no deforestation rule.

111

Table A. Component 1: Detailed CBA of afforestation in coastal area (base analysis, BDT. million)

Years

COSTS BENEFITS

NET

BENEFITS

* Afforestation

costs

Opp

cost

land

Rehabilitation

field offices

Beneficiaries

selection

Monitoring

and

evaluation

(4)

TOTAL

COSTS

Wood

(strip)

NWFPs

(mangroves)

Off-

shore

fishery

Storm

protection TOTAL

BENEFITS

1 20 0 25 6 50 -50 2 95 39 25 159 -159 3 155 104 25 13 297 -296 4 142 130 25 13 310 -310 5 88 91 25 13 217 41 21 96 158 -59 6 25 26 51 41 21 95 157 105 7 41 21 94 156 156 8 41 21 93 155 155 9 41 21 92 154 154

10 41 21 91 153 153 11 41 21 90 152 152 12 41 21 89 151 151 13 41 21 88 150 150 14 41 21 87 149 149 15 58 58 263 41 21 86 411 352 16 41 21 85 146 146 17 41 21 83 145 145 18 41 21 82 144 144 19 41 21 81 143 143 20 41 21 80 142 142 21 41 21 78 140 140 22 41 21 77 139 139 23 41 21 76 138 138 24 41 21 74 136 136 25 41 21 73 135 135 26 41 21 71 133 133 27 41 21 70 132 132 28 41 21 68 130 130 29 41 21 67 129 129 30 41 21 65 127 127

NPV 410 269 93 5 33 811 239 374 191 550 1,355 544

IRR 13% Note: * calculated as total benefits – total costs

112

Table B. Component 1: Detailed CBA of afforestation in hilly area (base analysis, BDT. million)

Years

COSTS BENEFITS NET

BENEFITS

*

Afforestation

costs

Opp

cost

land

Rehabilitation

of field

infrastructure

Beneficiaries

selection

Monitoring

and

evaluation

TOTAL

COSTS

Wood

(buffer) NWFPs

Landslides

and flood

protection

TOTAL

BENEFITS

1 44 0 25 6 76 -75 2 179 61 25 267 -265 3 224 163 25 13 428 -425 4 121 204 25 13 366 -362 5 44 143 25 13 230 164 28 192 -33 6 13 41 59 164 28 192 139 7 7 164 28 192 192 8 8 164 28 192 192 9 9 164 28 192 192 10 10 164 28 192 192 11 11 164 28 192 192 12 12 164 28 192 192 13 13 164 28 192 192 14 14 164 28 192 192 15 333 348 1,454 164 28 1646 1313 16 16 164 28 192 192 17 17 164 28 192 192 18 18 164 28 192 192 19 19 164 28 192 192 20 20 164 28 192 192 21 21 164 28 192 192 22 22 164 28 192 192 23 23 164 28 192 192 24 24 164 28 192 192 25 25 164 28 192 192 26 26 164 28 192 192 27 27 164 28 192 192 28 28 164 28 192 192 29 29 164 28 192 192 30 30 164 28 192 192

NPV 644 424 93 5 33 1,200 1,322 1,504 254 3,080 1,880

IRR 14%

113

Annex 8. Lessons learned for Alternative Livelihoods to Support Forest Communities

component

1. The Alternative Livelihoods to Support Forest Communities component draws on the

experience of similar types of projects in Bangladesh and the South Asian region. Experience

was gleaned and assessed in consultations with development partners, such as UNDP, EU,

USAID, with Forest Department officials at the national and local level, NGO in Dhaka and in

the regions, local government representatives, as well as with community representatives around

the country. Of particular focus were three development partner-funded initiatives working on

co-management of protected areas and forest resources in Bangladesh: the USAID-funded

Integrated Protected Area Co-Management Project (IPAC), the UNDP/GEF funded Coastal

Wetlands and Biodiversity Management Project (CWBMP), and work undertaken by the

Arannayk Foundation working in the Inani National Park in Cox’s Bazar area. IPAC has been

operational since 2008 and builds on earlier work to develop a model for co- management of

protected areas. All three interventions focus on establishing and sustaining community

involvement in management of resources to maximize benefit and sustainability from those

resources.

2. Forest resources are under pressure in Bangladesh. The extremely dense population

prompts encroachment of people for agriculture, habitation and industry purposes. According to

the Bangladesh Forest Department, about 40 percent of forest land has been encroached upon

with rate of forest depletion is about 2 percent every year, and it especially concerns deciduous

forests. Reforestation and afforestation activities supported by the Project will therefore not be

sustainable without addressing this pressure. It is necessary to find ways to alleviate poverty and

help local communities build sustainable livelihoods without relying on illegal and unsustainable

harvesting of forest resources. Such livelihood activities should be centered on the poor

households heavily depending on forest and wetland natural resources in order to provide them

with other sources of income than from these resources.

3. Achieving this goal is a formidable task given the large number of people, many of them

poor, weak institutional framework and social capital at local levels. However, there are several

important lessons from past and ongoing interventions about addressing this challenge better.

These lessons inform how best to obtain the development objective of this component and the

project has a whole in five key areas: engaging communities and inclusion; linkage between

livelihoods and afforestation and reforestation; livelihoods activities; financing arrangements;

and capacity building.

Engaging Communities and Inclusion

4. Reaching poor and marginalized segments of the communities, dependent on forest

resources requires substantial social mobilization efforts. Many of these people live in relative

isolation, often do not benefit from public services and may have difficulties with market access.

Moreover, frequently these persons are not organized in groups. A key element for targeting

poor and marginalized persons is the creation of resource users’ groups in conservation and

protection of natural resources. When successful, these groups overcome gaps in social capital

and reinforce positive dynamics in building trust, increasing useful feedback mechanisms with

114

external entities like the Forestry Department, mutual assistance, and implementation of

sustainable forestry practices. These groups are formed for effective participation in co-

management of the resources, lobbying users’ interested and protecting rights, and for

engagement in benefits sharing arrangements from the resources. For livelihood improvement

purposes, these groups are formed of households which mostly depend on illegal and informal

extraction of forest resources for subsistence and surplus trade.

5. In and around protected areas of Bangladesh there are such institutions. Projects have

organized households into Forest Dependent Groups (FDG) or Forest Users’ Groups (FUG),

which together with community leaders and local elite make Village Conservation Forum (VCF).

Representatives of these forums are sent to Co- Management Councils and Co Management

Committees (CMC), which have legal framework promoted by the IPAC program. The process

of forming CMCs is very complex, multi staged and requires extensive outside support. It starts

at the community level with identification of forest dependent households who form Forest

Dependent Groups (FDG), these are at large poor households who in additional to mostly labor

works are engaged in illegal tree felling for timber and collection of fuel wood and other

resources. There have been cases in different projects, especially at the initial stage with

inclusion of not eligible households, while excluding those who indeed depend on forest

resources due to local favoritism. Such occurrences have been later fixed but could be avoided if

there was a clear selection process stipulated from the start of the Project. These groups are

engaged in livelihood activities, capacity building and awareness programs on conservation and

resources degradation, climate change issues. They are provided with technical and financial

support with development of alternative to forest resources income generation opportunities.

The members of these groups are facilitated to arrange monthly meetings which are accompanied

by capacity building and awareness efforts. Usually these groups are comprised of 20-30

households, though the number of members in the group is more steered by available project

resources than the actual number of forest dependent families in the community.

6. The IPAC and other projects establish various community groups, such as informal

Community Patrolling Groups (CPG), which usually includes members of forest users’ groups.

BFD offices lack staff for effective designated area patrolling and CPGs jointly with forest

officials undertake patrolling to prevent illegal extraction of forest resources. As a form of

compensation, they are usually included in Alternative Income Generating Groups (AIGG) and

get access to project resources. In exchange of work of 32-36 hours a month patrolling they

receive assets, such as rickshaw vehicles or lease of fishponds, or get involved in revolving funds

grant schemes from the project. They are also engaged in Social Forestry activities on a priority

bases. Interviewees on the ground note that the CPGs provide significant support in protecting

forest resources from illegal use.

7. There are considerable challenges in ensuring inclusion of poor, women, and other

vulnerable groups, including indigenous people in project activities. While the vast majority of

communities living in targeted areas are poor, there is substantial variation among community

members’ relative influence and involvement of several segments, particularly indigenous people

and women is difficult. Furthermore, there is a good deal of variations in terms of forest users as

some extract directly or indirectly resources for commercial purposes and others use forest

products for their own consumption and survival. This challenge has been addressed through

115

several means. Inclusion of poor in project activities is either mandated by project’s

requirements, using village census data on households’ poverty level, access to land, or through

selection process of poor households by local governments and community institutions. In some

projects engagement was ensured through intensive awareness campaigns on the project’s

objectives, tasks and processes. Other projects undertake intensive social mobilization process to

engage all members of communities in selection or affirmation process.

8. In Bank-funded Empowerment and Livelihood Improvement “Nuton Jibon” Project

(Social Investment Program Project), one of the criteria of eligibility of beneficiaries is that they

should not have any other sources of income for joining group. Since a majority of rural women

usually have no stable source of income, they automatically become eligible for the project

benefits. In other projects, there are requirements for both members of household to participate in

different activities, or there are activities specifically tailored for female members of

communities, such as sewing, weaving, making crafts. At the same time such participation

requires the agreement of their male partners, so not to put women in a difficult situation in their

households as well as in the community.

9. Communities can be engaged in SF programs. Individuals or groups residing within one

kilometer range from the forest land can apply to the Forest Department to be allocated land

plots for plantations. SF Rules establish rotation period for different types of trees up to sixty

years for Sal forest. Meanwhile, participants of the SF Program can harvest wood from thinning

and pruning of these trees, and from sanitary felling. Benefits from these plantations are to be

shared between participants of the program, Forest Department, local government, land owners

and Tree Farming Fund. Benefits are different for different type of land and trees.

The lessons learnt on targeting benefits and inclusion for the Afforestation and Reforestation

Project:

Information dissemination about Project must be conducted intensively and with

sensitivity to effective means of communication at the outset and seek to reaching all

members of targeted communities. The Project design envisages wide awareness

campaign to inform all targeted communities about the Project, its activities and various

possibilities to participate in it. The choice of tools is important because information

dissemination is challenging. Many persons who should be informed are illiterate or

barely literate; penetration of ICT is minimal; even mobile telephony which is successful

for outreach on other interventions is ineffective due to poor coverage in most forest

areas. The Project will need to prepare brochures particularly targeted to low literacy and

disseminate them to community leaders, through schools and other public institutions.

Special efforts will be made to reach vulnerable groups and respect traditional decision

making systems in IP communities.

Owing to the difficulties of establishing and sustaining forest dependent groups, focus

should be on using existing groups where possible. In forest protected areas, where there

are co- management organizations established by IPAC, the Arannayk Foundation and

other development agents, there is no need to form forest dependent groups but just to

work with existing one. In other areas FDGs might be formed based on other types of

116

existing livelihood development community based groups, since forest dependent

households are largely poor, they might have been already organized into groups by other

projects or initiatives. For example, the Project can build on existing Jibon groups

established by the Empowerment and Livelihood Improvement Project.

Local government, including Union Parishads, as well as Ward Committees will be

engaged in social mobilization process, selection of beneficiaries and delivering services

to these beneficiaries.

The selection process and criteria should be communicated clearly to communities and

communities should be empowered to play a key role in selection and in affirmation of

selected participants. Selection of participants for the groups should be inclusive and

transparent. The Project will need to develop a detailed Targeting and Selection Strategy

with scoring system for assessment of eligibility criteria, such as poverty and well-being

level, level of dependency on forest resources, commitment to participate in Project

activities. A list of selected members will need to be affirmed by communities to verify

eligibility to avoid nepotism and misuse of selection procedures. In addition, all selected

beneficiaries should be interviewed in the course of the baseline survey and results will

be used for monitoring purposes, as well as for cross verification of eligibility of selected

participants.

Only members of concerned community can participate in project activities. The Project

would need to ensure that only affected communities participate in afforestation and

livelihood activities to avoid influx of people from other areas, which in turn can further

increase pressure on fragile forest ecosystems. Establishing this rule clearly at the outset

and incentivizing and empowering the communities to enforce this approach are key

ingredients for success.

Linkage between Livelihoods and Afforestation and Reforestation

10. Measures are needed to establish a clear linkage of Project afforestation and reforestation

activities with livelihoods development in order to achieve overall project development

objective. Without community members’ recognizing benefits from and placing a value on

afforestation, they will continue to engage in harmful logging and other unsustainable utilization

of forest resources. This linkage can be ensured through engagement of local communities in

forestry management, i.e., in afforestation and patrolling activities, participatory monitoring,

through information and awareness campaigns, and educational programs, especially for youth.

11. Various projects have tried to link social forestry activities with other directions of

support and with the target beneficiaries. However, that was not always possible, since BFD

makes decision on social forestry areas and Upazila makes decision on participants, the process

is not transparent. But when and where the Social Forestry and alternative livelihoods activities

were combined, they significantly complemented each other and have led to better results.

117

The lessons on linking afforestation and reforestation activities with the AIGs component for

the BCCRF Project:

Opportunities for employment on afforestation and reforestation are an important

contribution to livelihoods unto themselves. The afforestation and reforestation is

expected to generate around 3 million work-days employment for the poor. Identification

of participants for project funded afforestation and reforestation should be done with the

participation and approval of the Union Parishads and Ward Committees, community

based organizations. In addition, all members of the forest dependent groups need to be

included in the afforestation and reforestation activities to raise their awareness on forest

conservation and to ensure their income earning to supplement knowledge, skills and

financing received for livelihood activities.

Mechanisms to provide for long term sustainability of the CPGs, especially in areas of

endangered forest plantations, need to be integrated into project design. Where possible,

CPGs members need to be eligible on a priority bases for the afforestation and

reforestation activities.

Alternative income generating activities

12. Targeted beneficiaries are poor, vulnerable households who lack education, and often

knowledge and skills about activities other than forest extraction. These households are

vulnerable to various shocks and natural calamities. The most frequent livelihood activities in

existing and past projects relate to agriculture, such as cropping and gardening on homestead or

leased lands, goat and poultry rearing, cattle fattening, fish cultivation; small scale trade and

services, such as establishment of small shops, providing rickshaw services, various cottage

production, such as sewing, embroidering, making cloth, weaving, making bamboo baskets, mats

and furniture. The type of activities depends on project objectives, local conditions, such as

climate and terrain specifics, availability of and easy access to inputs, infrastructure, market

demand, and most importantly existing skills.

13. There are two major livelihood models supported by various projects:

Option one is to provide support to poor groups of forest users to initiate or scale up

small scale activities for generating income mostly for subsistence purposes with little

surplus traded. These activities are mostly diversified within a group, are of low risk, they

build on available skills and require small investments. These are safe options for poor

and illiterate beneficiaries to provide them with secured subsidiary income. However,

there is a danger that a size of received alternative income can be incomparable to

benefits they would receive by extracting forest resources to keep them out of forest. For

instance, women weaving bamboo baskets for carrying fish receive about BDT. 50 of

profit from one product. She can do 2-3 baskets a day with support of other members of

households. But she would earn about BDT. 200 from fuel wood collected within a day

from the forest. In addition, extraction of fuel wood does not require any inputs but labor.

118

Option two is to provide support to either existing but very small scope or to establish

new business activities, with a larger scope and thus with higher returns. Such activities

are either group based to accumulate more funds for investment or individual businesses

but with local entrepreneurs, who have skills, knowledge, and just need additional

financing to start up such business and support in market linkages establishment. These

are mostly group activities such as joint cropping on leased land, fish cultivation,

ecotourism, and production of energy efficient stoves. These activities are more complex

and require additional or new skills, and larger investments.

Lessons learnt on AIGAs for Climate Resilient Participatory Afforestation and Reforestation

Project

Project might provide two windows of support to targeted areas: one for simple

livelihood activities and one for economic enterprises development. Economic enterprise

development activities should be economically sound and applied only with beneficiaries

who have entrepreneurship skills. There need to be continuing monitoring of micro

enterprise activities with providing technical support and counseling if there are

difficulties occurring and replicating successful enterprises.

Having several households, groups engaged into one activity can improve marketing of

produce and increase beneficiaries’ profit. Group activities will be encouraged for larger

investments and for maintaining social cohesion of group and solidarity. Group produced

products can be taken to the markets in bulk to decrease transportation cost, building

specific links with markets can be facilitated by the Project. AF has successful

experience in organizing that in some of its project sites. However, such group activities

have to be very carefully assessed to avoid failure risk due to over saturating local market

and have clear schemes for benefit sharing among group members to avoid conflict.

Project would seek some economic group activities based on rapid value chain

assessments for each area.

The selection of activities should be carried out very carefully not to increase pressure on

forest ecosystems. Alternative livelihoods activities to be sustainable and indeed

alternative to forest extraction income need to bring higher income that natural resources

extraction activities, be less challenging and safer. In addition some of these activities

can provoke more need in extracting of forest resources, such as bethel leaf production,

which requires bamboo pole for construction or cattle fattening which can lead to grazing

in forest areas and require more collection of fodder from the forest, cropping if

individual has no own land can lead to further encroachment on forest lands. Thus,

project would need to develop and follow environmental checklist for non-eligible

activities.

Financing arrangements

14. Since forest dependent households are mostly poor people, they need financial support in

changing sources of livelihood. There are different ways of supply of these households with

financial support. IPAC provides groups with in- kind inputs for their livelihood activities or

119

matching grant for Alternative Income Generating business (it provides BDT. 50,000 of

matching funds to business people who invest into eco cottage construction).

15. Since poor are not able to generate sufficient savings for productive investments,

accumulating group savings allows them to obtain funds in amount and on conditions which are

favorable for start- up small scale enterprises. The AF provides groups with the “revolving

fund” at around BDT. 120,000 (about US$1,500) for a group of about 30 members. Each

member is eligible for a loan of BDT. 5,000 which has to be repaid in a year with no interest

rates. These loans are taken either for expansion of their activities or for a new. Some group

introduced service charge to cover cost of banking transactions, and it is not higher than 5

percent of the received amount.

16. This scheme is very similar to traditional to development mutual savings scheme

(ROSCA). The AF groups also accumulate saving fund. In IPAC Project, some groups

organized such saving funds as its own initiative. Groups have different amount set as savings

per member from BDT. 5 to BDT. 50 monthly. Many groups just lack knowledge and need

support on appropriate use of these funds and productive investments.

17. An interesting model of financing was applied in the Rural Employment Opportunities

for Public Assets Project (REOPA) funded by the EU and UNDP. Under this project, destitute

women groups have been provided with cash-for-work employment for two years. They

maintained a mandatory saving fund with deposition of money from their earnings and voluntary

saving fund. Such saving funds provided women with microenterprise development

opportunities without credit resources. One of the advantages of this mechanism is that it

doesn’t require accounting and making group decisions. All saving funds have been financially

sustainable with the small amounts allocated to each member and group pressure on repayments.

Lessons learned for financial arrangements:

The Project should seek to establish mutual saving funds for each group with savings

from earnings received from afforestation and reforestation works and from other

sources. Investments of own funds into rotational saving fund would ensure higher

ownership of the group members. The amount of monthly saving contributions will be

decided by the groups’ members. There should be clear strategy developed for use of

saving funds jointly with participating groups. All collected money monthly should be

allocated to member on rotational basis. Allocation of funds should be based on

technical feasibility and financial viability of the proposal and can be made on lottery

basis to avoid biased decisions or on priority bases but it should be decided by group

itself to ensure ownership.

In order to ensure that grants provided by the project stay with intended beneficiaries and

not captured by implementing partner NGOs or local group leaders, Project will develop

an exit strategy with full transfer of ownership over funds to community groups. A key

element to build trust as well as ensure sustainability and growth of livelihood initiatives

in target community groups is establishing clear rules for the transfer of ownership of

Project endowments/funds to them from the beginning.

120

Capacity building

18. Empowering participating households is a very important factor for sustainability of their

AIGAs. The capacity building programs exercised in various projects have many topics in

common starting from organizational trainings, forest conservation to livelihoods capacity

building programs. However, in many projects training program organized for self-help groups

are either too short or too general. Many groups cannot operate their own saving funds, it is

difficult for them to make decision on further investments and expansion of business activities,

and they have difficulty in managing own funds and understanding financial flows. Business

skills and traits are not easy to locate in rural areas and therefore most of livelihood activities are

the same.

19. There is a shortage of qualified business development staff in regional and local NGOs.

They often lack knowledge and expertise in development of income generating activities,

especially value adding activities which need solid support in exploring and establishment

market linkages, improved processing and marketing of products. Such lack of in house

expertise leads to relocation of simple, but not highly effective solutions.

Lessons learned for capacity building:

Effective training programs for FDGs are most needed on the following topics: i)

organizational development and management of rotating mutual saving and credit fund;

ii) basic financial management and accounting with special program for illiterate

members of self-help groups; iii) livelihood training on selected livelihood and value

adding economic activities; iv) forest conservation and climate change awareness.

Beneficiaries will be trained in several alternative livelihoods activities to provide them

with a broader range of skills for diversification of their enterprises and for making solid

choice on major activity.

Project would need to recruit qualified business development experts on need basis at the

central level, who would train and provide back up support to implementing partners in

the areas.

Selected value adding activities would need to be supported by specialized organizations

from public and private sector.

121

Annex 9. Recommended Plantation Types, Common Species and Rotation Period

BANGLADESH:

Climate Resilient Participatory Afforestation and Reforestation Project

Sl

No

Type of

Plantation

Common Species Suggested rotation Direct benefits that will accrue to

the participants

Remarks

1. Mangrove

Afforestation

Keora (Sonneratiaapitala)

The sites that are comparatively

compact and harder and at the same

time subjected to more saline condition

should be planted with species such as

Baen (Avicenniaofficinalis), Moricha

Baen (Avicennia marina ), Shada Baen

(Avicennia alba), Gewa

(Excoecariaagallocha), etc.

If the site is not soft enough to let the

ankle dip into the mud, species such as

Excoecariaagallocha may be used for

planting

Cannot be felled.

The plantations will

be retained to

function as wind

break and combat

cyclones and tidal

surges.

Fishing and collection of fodder

for livestock. Occasional

collection of lops and tops as fuel.

BFD may

allow local

communities to

collect NTFP

(lops and tops):

100% for first

tinning

Ref: Social

Forestry Rules

2004. Section

15(3), 20(1)

2. Mound

Plantation

Koroj (Pongamiapinnata), Babla

(Accaciasinegal), Akashmoni

(Accaciaauriculiformis), Katbadam

(Termilariacatappa), Shingra

(Cynometraramiflora), Puti jam

(Eugenia spp.), etc.

18 to 20 years when

these are inland and

away from the sea

front.

Some climber type agricultural

crops may be raised during first

two years. Fish may be reared in

the ditches. When the felling is

possible 45% of the produce will

the shared with the participants.

Participants

will get 45% of

the harvest.

Ref: Social

Forestry Rules

2004. Section

20(2)d

3. Jhaw Plantation Jhaw (Cassuraniaspp) To be retained and

no felling. These

plantations are

supposed to function

as wind break and

combat tidal surges.

These plantations are supposed to

function as wind break and

combat tidal surges. The lower

branches may be pruned and used

as fuel wood.

122

Sl

No

Type of

Plantation


the participants

Remarks

4. Golpata

Plantation

Golpata (Nypafruticans) To be harvested

from 4 to 5 years of

planting following

the felling rules.

At least 45% of the harvest may

go as share of the participants.

Participants

will get 45% of

the harvest.

Ref: Social

Forestry Rules

2004. Section

20(2)d

5. Enrichment

Plantation

Baen (Avicenniaofficinalis), Moricha

Baen (Avicennia marina), Shada Baen

(Avicennia alba), Gewa

(Excoecariaagallocha). Kakra

(Bruguierasexangula), Sundri

(Heritierafomes), Dhundul

(Xylocarpusgranatum), Kholshi

(Aegicerascorniculatum), Shingra

(Cynometraramiflora), Goran

(Ceriopsdecandra), Hetal (Phoenix

Paludosa) etc.

Not to be felled. Collection of dead lops and tops

as fuel wood and fodder for their

livestock.

BFD may

allow local

communities to

collect dead

lops and tops:

100% for first

tinning

Ref: Social

Forestry Rules

2004. Section

15(3), 20(1)

6. Core Zone

Plantation (Long

rotation)

Gorjon (Dipterocarpus spp.), Sal

(Shorea robusta), Dhaki Jam

(Syzygium grande), Telsur (Hopea

odorata), Champa (Michelia champa),

Mehagony (Swietenia mahagoni),

Chikrasia (Chikrassia tabularis),

Jarul (Lagerstromia speciosa), Teak

(Tectonia grandis), Civit (Swintonia

floribanda), Bash Pata (Podocarpus

neriifolius), Puti Jam (Syzygium spp.),

Amloki (Emblica officinalis), Bohera

(Terminalia belerica), Haritaki

(Terminalia chebula), Haldu (Adina

cordifolia)

40 to 60 year

rotation

Communities will not get direct

financial benefits

123

Sl

No

Type of

Plantation


the participants

Remarks

7. Buffer Zone

Plantation

(Short rotation)

Chittatian (Alstonia scholaris), Kodom

(Anthocephalus chinensis), Ghora

Neem (Melia sempervirens),

Akashmoni (Acacia auricoliformis)

10 to 20 year

rotation

Approximately 45% of the

harvests including thinning are

shared with participants.

Participants

will get 45% of

the harvest.

Ref: Social

Forestry Rules

2004. Section

20(2)a

8. Non Mangrove

Buffer Zone

Plantation

(Short rotation)

Chittatian (Alstonia scholaris), Kodom

(Anthocephalus chinensis), Ghora

Neem (Melia sempervirens),

Akashmoni (Acacia auricoliformis)

Koroj (Pongamia pinnata)

12 to 15 year

rotation

Approximately 45% of the

harvests including thinning are

shared with participants.

Participants

will get 45% of

the harvest.

Ref: Social

Forestry Rules

2004. Section

20(2)a

9. Strip Plantation Neem, Mehagony (Swietenia

mahagoni), Chikrassia (Chikrassia

tabularis), Amloki (Emblica

officinalis), Tetool (Tamarindus

indica), Hartaki (Terminalia

chebula), Arjun (Terminalia arjuna),

Harbarooi, Kala Jam (Syzygium spp.),

Akashmoni ((Acacia auricoliformis),

Rain tree (Samania saman), Palm

(Borassus Fladellifer)

12to 15year The participants may grow some

agricultural crops in first two

years. Approximately 55% of the

harvests will be the share of the

participants.

Participants

will get 55% of

the harvest.

Ref: Social

Forestry Rules

2004. Section

20(2)c