phhasse iii · production, marketing and trade of legal timber has increased. outcome 4:...

INCCEPPTIOON REEPOORTT PHHASSE III

European Union / Food and Aggriculture Organizationo of the U United Nations FLEGT Programme (FAO)

(GCCP/GLO/600/MUL)

INCEPTION REPORT PHASE III

European Union / Food and Agriculture Organization of the United Nations (FAO) FLEGT Programme

(GCP/GLO/600/MUL)

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS ROME, 2016

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The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO in preference to others of a similar nature that are not mentioned. The views expressed in this information product are those of the author(s) and do not necessarily reflect the views or policies of FAO. ISBN 978-92-5-109087-9 © FAO, 2016 FAO encourages the use, reproduction and dissemination of material in this information product. Except where otherwise indicated, material may be copied, downloaded and printed for private study, research and teaching purposes, or for use in non-commercial products or services, provided that appropriate acknowledgement of FAO as the source and copyright holder is given and that FAO’s endorsement of users’ views, products or services is not implied in any way. All requests for translation and adaptation rights, and for resale and other commercial use rights should be made via www.fao.org/contact-us/licence-request or addressed to [email protected]. FAO information products are available on the FAO website (www.fao.org/publications) and can be purchased through [email protected].

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Contents

1. INTRODUCTION 4

2. PROGRAMMEDESCRIPTION 52.1 ProgrammeObjective 5

2.2 ExpectedImpact 5

2.3 ExpectedOutcomes 5

2.4 ProgrammeTargetAudience 5

2.5 TargetCountries 6

2.6 SupportMechanisms 7

2.7 Interventionmethodologies 9

2.7.1 AssistanceinVoluntaryPartnershipAgreement(VPA)countries(Outcome1) 9

2.7.2 CountriesnotengagedinVPAs(Outcome2) 11

2.7.3 PrivateSectorSupport(Outcome3) 14

2.7.4 InformationServices(Outcome4) 16

2.8 Coordinationwithregionaloffices 16

3. PARTNERRELATIONS 183.1 RelationswiththeEUandtheGlobalCommunityofFLEGTPractitioners 18

3.2 GlobalCoordination 19

4. COMMUNICATIONSTRATEGY 20

5. PROGRAMMEOVERSIGHTANDMANAGEMENT 21

6. PROGRAMMEMONITORING&EVALUATION 226.1 Programmelevelmonitoring 22

6.2 Projectlevelmonitoring 22

6.3 Monitoringtools 23

ANNEXES 25- ANNEX1.Privatesectorstrategy 27

- ANNEX2.NonVPAcountriesreport 67

- ANNEX3.Programmelogicalframework 101

- ANNEX4.Expertpanelreport 123

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1. Introduction

TheFoodandAgricultureOrganizationForestLawEnforcement,GovernanceandTradeProgramme(FAOFLEGTProgramme)isanextensionoftheACPFLEGTSupportandEUFAOFLEGTProgrammes,referredtointhisreportasPhaseIandPhaseIIoftheFAOFLEGTProgrammerespectively.Thethirdphasehasbeenestablishedasamulti-donortrustfund;commitmentshavethusfarbeenmadebytheSwedishInternationalCooperationAgency(SIDA),theEuropeanUnionandFAO.ThethirdphasewillcontinuetochannelsupporttocountriesengagedinaVoluntaryPartnershipAgreement(VPA)with the EU and other developing countries actively involved in FLEGT-related initiatives (alsoreferredtointhisdocumentascountriesnotengagedinVPAsornon-VPAcountries).

TheProgrammewillbuildon:themomentumandlessonslearntfrompreviousandexistingeffortstonegotiateandimplementVPAs;theexperienceofworkingwithothercountriesengagedinotherareasoftheFLEGTActionPlanandtheresultsofprojectsfundedthroughPhasesIandIIoftheFAOFLEGTProgramme. Furthermore, itwill introducenewandrefinedsupportmechanisms, includingmoretargetedassistancetocountriesnotengagedinVPAswherethereisaneffectivecommitmenttoimproveforestgovernanceandtimberlegalityandademandforsupporttocoordinated,multi–stakeholder initiatives. Increased support to countries not engaged in VPAs is a particularlysignificantdevelopmentfortheProgrammethatstrivestopromoteamoresustainable,holisticandmultiplestakeholderapproach in response to theevidentneed formore tailoredandcoordinatedgovernance processes. In those countries, the Programme will rely on already existing or to-be-established local platforms and entities, to drive governance processes forward. To this end, thePMU will work more actively through FAO’s global network of country Representations. TheProgrammewillalsobuildonthefundingmechanismswhichhaveworkedwellinbothVPAandnon-VPAcontexts,suchastheuseofexternalassistance(e.g.technicalexpertsandthe“expertpanel”)and the two-phase procedures for Calls for Proposals developed in the latter part of Phase II.Improvedmechanismstobetterengagewiththeprivatesectorhavealsobeen introduced inboththe Call for Proposalmechanism and the Direct Assistance requests, for which non-profit privatesectorentities(orinstitutionsworkingwiththeprivatesector)arenoweligible.

This Inception Report describes in detail these mechanisms and processes and presents generalobjectives, standard operating procedures, Programme monitoring and reporting procedures,oversightandguidancemechanismsandapreliminaryCommunicationandVisibilityStrategy.

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2. ProgrammeDescription

This section describes the objective, purpose and expected results of the Programme, theProgrammecomponents,supportmechanismsandoperatingprocedures.

2.1 ProgrammeObjective

Overall objective: The overall objective is to tackle illegal logging, promote trade in legal timberproductsandultimatelycontributetosustainableforestmanagement(SFM)andpovertyreduction.

Specificobjective: Thespecificobjectiveistoimproveforestgovernanceandlawenforcementandtopromotelegalandsustainableforestindustries.

2.2 ExpectedImpact

Programme countries demonstrate improved forest governance, legality of timber produced andtraded on domestic, regional and international markets, andmore equitable forest managementsystems.

2.3 ExpectedOutcomes

Toeffectivelybringresourcestothestakeholders,theProgrammeestablishestargetedapproachesforVPApartner countriesandcountriesnotengaged inaVPAprocess,whichare reflected in thefourProgrammeoutcomes.

� Outcome 1: Voluntary Partnership Agreements contribute to improved forest sectorgovernanceandtimberlegalityondomesticandinternationalmarkets.

� Outcome 2: Initiatives that support legal production and consumption of timber andbetter forest sectorgovernance in countries thatarenotengaged in theVPAprocessarestrengthened.

� Outcome 3: The capacity of the private sector at all scales to participate in theproduction,marketingandtradeoflegaltimberhasincreased.

� Outcome 4: Stakeholders in both consumer and producer countries demonstrate animproved knowledge of benefits from legal logging, international trade requirementsandofbestpracticesforforestlawenforcement,governanceandtrade.

2.4 ProgrammeTargetAudience

While the Programme is designed to benefit a wide variety of stakeholders and provide spin-offbenefitstosocietyasawhole,Programmeinterventionsaretargetedtothreespecificstakeholdergroups: Civil Society (including local communities and indigenous peoples), Private sectororganizations1 and Government institutions. The Programme will put particular emphasis on1 A private sector organization is a non-profit organization representing members of the privates sector includingsyndicates, federations, organizations of chainsaw operators and charcoal producers, or other small scale unions orassociationsrepresentingsmallandmediumsizedenterprisesoperatingexclusively in the forestsector thatproducefor

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increasingtherepresentationofsmall-scaleactors,especiallythoseservingthedomesticmarket,innational,regionalandglobaldialogues.

2.5 TargetCountries

Outcomes1and2clearlytargetseparatesetsofcountries,butalltargetedcountriescanpotentiallyplayasignificantandstrategicroleinreducingillegaltimberavailableoninternational,regionalanddomesticmarkets:

� VPACountries(Outcome1):Outcome1supportsthe16countries2currentlyinvolvedinoneof the three phases of the Voluntary Partnership Agreement process (pre-negotiation,negotiationor implementation). FocusingProgrammeeffortson these countrieswill bringadded benefits of including a multitude of stakeholders in the country level processes –enhancing local contributions andownershipof theprocess. The resourcesusedon theseactionsarejustifiedinthatthese16countriesaccountfor75%3ofthetropicaltimbertradedon international markets and all of them have significant informal domestic marketproductionand consumption (oftenaccounting forup to50%of thenationalproduction). Support in VPA Countries is targeted directly to governments and private sector througheither the Direct Assistance mechanism or to government institutions, civil societyorganizationsandprivatesectororganizations throughcompetitivecalls forproposals (seeSection2.7).

� Countriesnotengaged in aVPA (Outcome2):Activitiesunderoutcome2 address timberlegalityinapproximatively10countries(basedonavailabilityoffunds)selectedonthebasisof their potential to curb illegal timber on global and domestic markets. The list will bedeterminedbythePMU,inagreementwiththeProgrammeSteeringCommittee,usingasetof indicators that review production, consumption and trade of timber, level of illegallogging,butalsopoliticalcommitmenttoaddressforestgovernanceissueandwillingnesstoengagewiththeEUonthistopic (Annex2).FurtherdialoguewiththeSteeringCommitteewillalsoexplorethebest interventionmethods(andtheirfeasibility)toaddresschallengesposedbythemoststrategicmarkets(includingconsumercountriessuchasChinaandIndia).Theprogramwillsupporttheinitialestablishmentofaforestsectorgovernanceandlegalitystrategy that will be agreed through stakeholder processes, or that build upon existingstrategies, platforms or national forest programmes. The two programme mechanismsoutlined below (calls for proposals and Direct Assistance) will also be used in thesecountries.

domesticmarkets or export to regional and/or internationalmarkets. Direct support to private profit companies is notavailablethroughtheprogramme.2Countries implementingaVPA:Cameroon,CentralAfricanRepublic,Ghana, Indonesia,Liberia,RepublicoftheCongo/Countries negotiating a VPA or in a pre-negotiation phase: Côte d'Ivoire, Democratic Republic of the Congo, Gabon,Guyana,Honduras,Laos,Malaysia,Myanmar,Thailand,Vietnam3Oliver,R.2015-ITTO/ECIndependentMarketMonitorfortheVPAprocess:UpdateonFLEGTIMMandopportunitiesforthemarket.

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2.6 SupportMechanisms

Two different mechanisms (Calls for proposals and Direct Assistance) will allow stakeholders’participationintheFLEGTprocessesatthenational,regionalandgloballevelinbothVPAcountriesandcountriesnotengaged inVPAs.Given thediversegeographical reachof theProgramme,withdifferent forest governance structures and stakeholder groups, the fundingmechanismsproposedofferflexibletoolstotailorassistancebasedonlocalneedsandpeculiarities.Thesemechanismsaredescribedbrieflybelowandmorein-depthinSection2.7onInterventionMethodologies.

� Callsforproposals:Callsforproposalsprovideacompetitivemechanismopentoallstakeholders(government, civil society andprivate sector organizations). TheProgrammewill issue calls forproposalstosolicitprojectideasthatcancontributetotheFLEGTprocess.AllCalls,inbothVPAand non-VPA countries, are particularly targeting private sector organizations, civil societyorganizationsandGovernmentoffices tomoreactivelyengage ingovernanceprocessesand topromote timber legality. The Calls for Proposalmechanismwill vary slightly between the VPAcountriesandcountriesnotengagedintheVPAprocess,andwilltypically includethefollowingsteps:

- Informationphase.ThePMUwillpublishaguidelineonhowtoparticipateintheperiodiccalls for proposals and will disseminate this information through formal4 and informal5channels(includingprivatesectornetworks).InformationwillbesharedduringProgrammemissions and via the Programme’s website. Where feasible, PMU staff will conductinformation missions prior to the calls for proposals and meet with stakeholders (inparticular private sector organizations) to help prepare for the call. During theProgramme’sPhaseII,informationmissionswereconductedin10ofthe16VPAcountriespriortothecallsforproposals-304conceptnotesweresubmittedasaresult.

- Tenderofthecallforproposals.PeriodiccallforproposalswillbeopentoallstakeholdersinVPAcountries (dependingonavailabilityof resources); timingwillbecoordinatedwithotherEUglobalandcountryspecificcallsforproposals.

- Evaluation process. In VPA countries, the proposals will be reviewed and scored by anexpertpanel.Theevaluationwill followa two-phaseapproach:call forconceptnoteandsubmission of a full proposal. Based on the results of the evaluation, the proposalsrecommended for funding will be presented to the Steering Committee for finalendorsement.TheEuropeanCommission,EUDelegationsandEFIFLEGTFacility staffwillbe contacted to provide feedback on the proposals, especially with regard to theirconsistency with the country context and their relevance to the priorities identifiedthrough the country’s VPA roadmap. In countries not engaged in VPA, proposalswill beevaluatedbynational‘’ForestGovernancePlatforms’’togetherwiththeFAOFLEGTofficer,EUDelegationandtheFAORepresentation.SimilarlytotheprocessinVPAcountries,the

4 FAO Representation, EUDelegations, permanent representatives, SIDA and other EUMS regional/country offices andprogrammedatabaseofcontacts.5EFIFLEGTFacility,civilsocietyorganizationsactiveintargetcountries,ITTO,UNFF,forestrywebsites,otherUNagenciesandbodies,FAOstaffcontacts,privatesectororganizationsandnetworks,chambersofcommerce,businessassociations,investment/exportpromotioncentresetc.

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proposalsrecommendedforfundingwillbepresentedtotheSteeringCommitteeforfinalendorsement.

- WritingLettersofAgreement (LOA’s)andrecruiting technicalassistance.Thoseproposalsthat have scored 70 or above (out of 100) and have been endorsed by the SC will benotifiedandstepswillbetakentodraft theLetterofAgreementand/orrecruit technicalassistanceasrequiredtoimplementtheproject.

� DirectAssistance:DirectAssistanceprovidesaflexiblefinancingtooltorespondtorequestsforimmediate, specific actions connectedwithVPAnational strategy, suchasprovisionof trainingand technical assistance. Direct Assistancewill be available to governments and private sectororganizations including those representing SMEs that may find difficult to request assistancethrough the Call for Proposals mechanism. Direct Assistance may also be used to supportstrategicactionsthatsupportprocessinVPAornon-VPAcounties,butdonotnormallyfallundera call for proposal opportunity and could also include organizations that are not based in thecountry of action. Any Direct Assistance request developed above EUR 50 000 would bepresented to theSteeringCommittee for “no-objection”. TheDirectAssistancemechanismwilllargelyfollowthesameprocessinbothVPAcountriesandcountriesnotengagedinVPA:

- Informationphase.ThePMUwillpublishshortguidelinesandbriefingmaterialonhowtoaccess Direct Assistance resources and programme resources. It will disseminate thisinformation directly to government institutions through the FAO Representations, EUDelegations, and UN Permanent Representations as well as through private sectorchannels and organizations/institutions that work closer with private sector. Moreover,informationwillbeprovidedtogovernmentinstitutionsduringPMUstaffmissionsandwillbeavailableontheprogrammewebsite.

- Projectidentification.DirectAssistancerequestswillbedevelopedthroughacollaborativedialogue between FAO (PMU and local FAO Representation), the national Ministryresponsibleforforests,theEuropeanUnionrepresentativesandthebeneficiaries(ifotherthan government organization). The PMU staffwill be responsible for final approval andoversightofDirectAssistancerequests.

- SubmissionofDirectAssistanceproposals.After identificationoftheproposedaction,theentityresponsiblefortheactionshallsubmitashortproposaltothePMU.Theguidelinesremain largely the same as in the previous phases of the Programme, with minoradjustmentstofittheProgrammecontext.ItshouldbenotedthatalthoughaGovernmentinstitutions and private sector organizations are the only eligible entities to submit aproposal, the implementation of the activities can be delegated to another institution,includingcivilsocietyorganizations.

- Proposal review, scoring and selection. In both VPA and non-VPA countries, eligibleproposalswillbereviewedandscoredbyatleasttwomembersofthePMU.Thefinalscorewillbebasedontheaveragescoreofallreviewers.Ifthedifferencebetweenthescoresisgreaterthan20points,athirdFAOstaffmember(i.e.oneoftheregionalorsub-regionalforestryofficers)willbeaskedtoscoretheproposal.Thoseproposalsthatreceivedamarkabove70points (outof 100), basedon the selection criteriapresented in the guidelines

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will be recommended for funding. ThePMUwill request a final “noobjection” from theFAORepresentation, theEuropeanCommissionHeadquartersandtheEUDelegations forall proposals recommended for funding. Any Direct Assistance requests received fromprivate sectororganizationswillbe sent to the relevantnational forestrydepartment forinformation(andno-objectionincaseofsensitiveproposals).

- DraftingLettersofAgreement (LOAs)or recruiting technicalassistance.After selectionofproposals, the proponent will be informed and a Letter of Agreement will be draftedand/ortechnicalassistancerecruited,asrequired,toimplementtheproject.

2.7 Interventionmethodologies

2.7.1 AssistanceinVoluntaryPartnershipAgreement(VPA)countries(Outcome1)

� Calls for Proposals: Projects selected through the Call for Proposals mechanism will supportflanking measures to advance the VPA process and encourage the active engagement ofstakeholders.Fundingceiling for the first call forproposalswillbeEUR100000 (approximatelyUSD 110 000) per proposal. For the next calls for proposals, the funding ceiling will bedetermined and agreed by the Steering Committee. The Call for Proposalmechanism in VPAcountriesiscomposedoftwophases:

1) ThePMUwillsolicitconceptnotesthroughacalldisseminatedthroughformalchannels,includingFAORepresentations,EUDelegationsandHeadsofForestry inVPAcountriesaswellasinformalnetworksdevelopedthroughtheProgramme.Theconceptnoteswillbereceived,cataloguedandscreenedforeligibilitybythePMU.

2) Proponents whose concept notes passed the pre-screening process and scored morethan 70/100pointswill be asked to submit a full project proposalwithin twomonthsafter notification.Guidelines for full project proposalswill be established by the PMUduring the launch phase of the Calls for Proposals. The full proposal will be thenevaluated by an external Expert Panel. The PMU will also seek inputs from EUDelegations and from the EU FLEGT Facility on a case by case basis. The informationgathered will be presented in an Expert Report to the Steering Committee for theirconsiderationandfinalendorsementofproposals.

Previous experiences with negotiation and implementation of VPAs have demonstrated theimportanceofamulti-stakeholderapproachintheprojectidentificationandformulationphases.However,recently,duringtheMarch2015FLEGTWeektheneedto increaseparticipationfromtheprivatesectorintheseprocesseshasbeenfurtheremphasized.Inresponsetothiswarning,the PMU has introduced a new element to encourage greater private sector participation. Atargeted‘’Lot’’willbededicatedto initiativessupportingtheprivatesector.Toensureaccurateinformation reaches eligible private sector stakeholders far andwide, the PMUwill conduct arapidreviewofpotentialeligibleinstitutionsintheVPAcountriesandtargetinformationdirectlytotheseinstitutions.

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Thefirstcallforproposalswasdividedintwo‘’Lots’’,asdescribedinthefollowingtable.

Lot TargetSupport Indicativeallocation

1 Privatesectorinitiatives:Thislotisopentoallthree stakeholder groups, with an emphasison private sector not-for-profit organizationsand government agencies responsible forbusinessdevelopmentinthefieldofforestry.

USD1100000Budgeted under cross-cutting Outcome3–supportingprivatesectorinitiatives

2 VPA support actions: This lot is open to allthreestakeholdergroups.ProjectsunderLot2willparticularlyaimatenhancingthesupportin the preparation for, negotiation andimplementation of Voluntary PartnershipAgreements

USD2200000BudgetedunderOutcome1–supporttoVPAprocesses

Theexpertpanel reportpresenting the resultsof the firstcall forproposals inVPAcountries ispresented in Annex 4. Based on the recommendations by the expert panel, 36 projects arerecommendedforfundingforanindicativebudgetofUSD3812000withareverseofrequests–significantlymoreresourcesareneededunderthePrivateSectortheme(Table1).

Table1:Fullproposalsevaluationbycountry

Countries

NumberofProposals

recommended

Budgetofproposalsrecommendedforfunding(USD)

Lot1 Lot2 Lot1 Lot2 TOTAL

Cameroon 4 2 401000 217000 618000CentralAfricanRepublic

1 96000 96000

Côted’Ivoire 1 1 100000 215000 315000Congo,DemocraticRepublicof 2 1 220000 85000 305000Congo,Republicof

1 65000 65000

Gabon 1

110000 110000Ghana 3

297000 297000

Guyana 1 1 110000 110000 220000Honduras 2 2 181000 200000 381000Indonesia 1 3 109000 329000 438000LaoPDR 2 1 214000 109000 323000Liberia 1

109000 109000

Myanmar 1 1 120000 109000 229000Thailand

1 109000 109000

VietNam 2

197000 197000TOTAL 21 15 2168000 1644000 3812000

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� Direct Assistance: Direct Assistance to both government institutions and private sectororganizations in VPA countries will be limited to a maximum of EUR 50 000 per project andshouldaddressurgent,time-boundactionsand/orfillgapsinthecountry’sVPAimplementationstrategy.Followingademanddrivenprocess,DirectAssistancerequestsmaybesubmittedatalltime to the ProgrammeManagementUnit. Proposalswill be reviewed and scored as they arereceived. Theywill address actions thatwould not fall under the traditional “project” themes,suchasshort-termsupportforstakeholderconsultations,recruitmentofconsultantstosupportdevelopmentofTLAScomponents,revisionoflegislationormanualofproceduresrelevanttotheVPA, etc. Direct Assistance interventions are often determined in consultation with partnerorganizationssuchasEFI, recipientGovernmentsandtheEU,orotherdialoguesthat identifiedgapsorweakareasinVPAnegotiationandimplementation.

As part of the cross-cutting option under Outcome 3, private sector organizations in VPAcountries are also eligible for Direct Assistance. The required interventions will be identifiedthrough stakeholder consultationat the country level (includingdialoguebetweengovernmentandprivate sectororganizations throughnationalplatforms).Theseactionswillbe fundedasacomplementtotheactionsidentifiedundertheCallforProposals.

2.7.2 CountriesnotengagedinVPAs(Outcome2)

� Selectionofcountries:TheSelectionprocesswasconducted in threesteps (Annex2.NonVPAcountriesreport).TheProgrammeManagementUnitevaluated109eligiblecountriesbasedon9quantitativeindicatorsthatresultedinalistof51eligiblecountriesfortheexpertopinionsurvey.TheTable2summarizesPMUrecommendationsforpartnerNonVPAcountries,afterreviewandinputsbasedonFLEGTProgrammeandotherFAOstaffexperience.

Table2:NonVPAcountriesrecommendedforpartnershipinthethirdphase

Recommendation Country

1. Bilateralandmultilateralactionsonly,nocountrylevelProgramme

China,Brazil,Mexico,India

2. Year-onecountrylevelProgrammeexploration Mozambique,Colombia,Peru,Uganda,Guatemala,Madagascar,Philippines

3. Year-twocountrylevelProgrammeexploration(andbasedonremainingfunding)

Ecuador,Colombia,Zambia

4. ActivitiescomplementarytoexistingProgrammes

Belize,Panama,PapuaNewGuinea,SalomonIslands

5. NotrecommendedforProgrammeactivities Tanzania,Belarus

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� Operatingprocedures

- Overview:Afterendorsementofthefirsttestcountriesforthenon-VPAwork,thePMUwillfirstcommunicatethedecisionsoftheSteeringCommitteetotheFAORepresentationoftherespectivecountriesandbegindialogueon informing thenationalgovernmentof thenewinitiativesavailable.ThePMUwouldalso informtherespectiveEUDelegations. MostFAORepresentation and forestry departments in the respective countries are aware of thecurrent programme and the objectives and proposed methods for engaging non-VPAcountries in Phase III, therefore little additional communication is required. Second, afterreceiving commitment to participate in the programme from the respective governments,the PMU in will conduct stakeholder consultation and situational analysis of the state ofgovernance, stakeholders engaged, likely leaders (champions) in governance processes,existenceandfunctionofplatforms,andlikelypriorityareasofwork.Theinformationwillbe synthesized in a report that will outline a more detailed description of the operatingstrategy for the country. As a third step, the national strategy will be endorsed locally,projectsconsistentwith thestrategywillbesolicited throughtheprogrammemechanismsandfunded.Additionaldonorsanddevelopmentpartnersatthelocalandregionallevelwillbeincludedineachstepoftheprocessandencouragedtoparticipatethrougheitherdirectlyfundingactionsorensuringsynergiesthroughtheirworkplans.

- National Platforms: thework in countries not engaged inVPAswill be conducted in closecollaborationwith a national ‘’Forest Governance Platform’’. This platformwill encouragemulti-stakeholderdialogueand representsawide rangeof stakeholders.Theplatformcanhave an informal or formal structure andmight have been created to address any of thefollowing issues: natural resource management; climate change mitigation; resource userights; territorial rightsparticularly for indigenouspeople; sustainable forestmanagement;national certification systems; or combatting illegal activities at territorial level. The keynational actors (government, private sector, civil society, communities, and indigenouspeople)willberepresentedbyindividualswithdecision-makingpower.Theplatformcanbealready established, as a result of national strategy development or other commitments.However,platformsmaynotbesufficientlymaturewithdemonstratedresultsorexperienceto date. FAO FLEGTwill strengthen existing platforms or, if such platform does not exist,encourageitscreationforthepurposeofguidingprojectselectionandimplementation.Theplatform will have an agreed operating mechanism which will establish frequency ofmeetings, identify objectives and paths of action, define roles and responsibilities, selectchair function, etc. Themembers of the platformwill support the Programme in decisionmakingatdifferentphasesoftheprojectcyclemanagement.Theplatformwillorganizeaninitial strategic planningworkshop to set governance goals, develop a basic roadmap forpriorityactions6andidentifylikelypartnerstofacilitateimplementationofsuchactions.Theplatform will also support the diffusion of the guidelines for both call for proposals andDirect Assistance mechanisms. Coordination of activities, monitoring of work plan andexperiencesharingwillalsobepartofthetermsofreferenceofthisplatform.

6Usingthe2011jointPROFOR/FAOpublication‘’FrameworkforAssessingandMonitoringForestGovernance’’

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- Call for proposals:will take place locally. A specific stepwill be introduced to encouragegreaterprivatesectorparticipation,muchliketheVPACallforProposalswhichhasrecentlyintroduced a two-Lot system, but this will be determined by the platform directly. Thefunding ceilingunder theCall forproposalsmechanismwill beEUR100,000perproposal.The overall indicative amount made available under each national Call for Proposals andDirectAssistanceisEUR500000tobefinancedbytheProgramme.Theproposalsreceivedthrough the call for proposals will be evaluated by locally recruited experts following asimilar terms of reference as the experts recruited for the global call for proposals. Eachproposalwillbeevaluatedbyatleasttwoevaluatorsusingthesameweightingsystemasforthe global calls for proposals. On the basis of the recommendations of the experts, theregional FAO FLEGT Office will draft a final list of all proposals that passed the requiredthresholds,rankedbyscore.Basedonthisreport,availabilityoffinancialresources,a localTechnical Committee composed by the EU-Delegation FLEGT Focal Point, FAO-Representation, national/regional FAO FLEGT Officer and Government Representative willendorse projects suitable for funding. This report will be made available to the SteeringCommittee members. Agreement or objections to projects should be channeled throughrespectivelocalrepresentations.

- Direct Assistance: limit for these requests is EUR 50 000; thismechanismwill be used totarget complementary actions to support the “road map”. Direct Assistance will targetgovernmentandprivatesectorsimilarlytotheprocessoutlinedunderVPAcountries.DirectassistancerequestswillbesubmittedtotheregionalFAOFLEGTOfficeandwillbeevaluatedbyatleasttwostaffoftheProgramme.TheFAOFLEGTregionalofficewillrequestafinal“noobjection” from the FAO Representation and the EU Delegations for all proposalsrecommendedforfunding.

� Additionalstaffing

- Professional Staff: The current staff managing VPA and NON VPA activities will bemaintainedwithateamof5ProfessionalStaff(oneP5andfourP4positions)

- Nationalconsultants:Additional3nationalconsultantsfulltimeorparttimewillbehiredtocompletetheexistingteamtofollowupactivitiesinNonVPAcountries:

o Americas(Peru,Colombia,GuatemalaandEcuador):onefulltimeandoneparttimepositionsalreadyfulfilledtocoverbackstoppingin3countries(Peru,GuatemalaandColombia).OnemoresharedstaffwithotherFAOProgrammewillbehired.

o Asia (Philippines, Cambodia): one full time consultant already recruited. Anadditionalfulltimenationalconsultantwillcompletetheregionaloffice.

o Africa (Madagascar,Mozambique,UgandaandZambia):TheProgrammewill sharetwonewnationalconsultantswithFFFProgrammeorotherFAOProgrammeshavingsimilar strategies to improve forest sector governance and support SMEsdevelopment.

Typical average national consulting cost are USD 50 000 annually or less depending oncountrycontextandskilllevels.

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2.7.3 PrivateSectorSupport(Outcome3)

� Objectivesandoutputs

The detailed strategy developed by the Programmemanagement Unit for intervention with thePrivate Sector is presented in Annex 1. The program seeks to improve the enabling conditionsunderwhich the private sector operateswithin the timber industry, to promote cultural changewithin global, regional and national forest products markets, whereby legal and transparentoperationisthenorm.The desired Global Outcome is described by Outcome 3 under FAO FLEGT Phase 3 work: “Thecapacityoftheprivatesectortoparticipateintheproduction,marketingandtradeoflegaltimberhasincreased”.TheObjectivesoftheStrategyherein(inlinewiththeProgrammeLogicalFrameworkpresentedinAnnex3)include:

- Output 3.1: Private sector composition, incentives and market dynamics are betterunderstood.

- Output 3.2: Private sector stakeholders understand obligations for legal compliance andthedemandsthatareinfluencingmarkets;

- Output3.3:Policiesandlegalframeworksarereviewedandrevisedtopromotefairaccesstoforestresourcesandincreaseproductiveanddecentemploymentintheforestsectorasanengineforpovertyreduction;

- Output3.4:Privatesectorstakeholdershavetheskillstocomplywithlegalframeworksandaccessmarkets;

� Targetaudience

The targets forFAOFLEGTworkwithprivatesectorunderPhase3are largely smallandmediumforest enterprises (SMEs). The term “Small andmedium size enterprises” (SMEs) as used hereencompasses both small-scale forest resource operators producing raw material, and smallbusinessesengagedinprocessingandplacingforestproductsonthemarket.Thisgroupinherentlyincludesvulnerablesegmentsofsociety(i.e.women,youth,ruralpoorandindigenousgroups)whoface difficulties to complywith legal frameworks and receive little attention in forest policies inmanytimberproducingcountrieswhichfavour large-scaleoperationsorientedtoexportmarkets.Formallyestablishedtimberbusinesses, includinglargeproducersandexporterswhomainlyneedinformation and business links are also targeted. In turn, the Programmewill continue to fosternew partnerships with, among other actors, the European Timber Trade Federation, the GlobalTimber Forum, and the International Wood Products Association. Corresponding public sectorentitieswhichinterfacewithprivatesectorwillequallybetargeted.Organizationsandgroupingsofprivatesectoractors,suchasfederationsandcooperatives,providetremendousleveragepowerforaccessing a greater number and range of actors, particularly when targeting SMEs in producercountries.Inaddition,Federationsandassociationswhichrepresentlargebusinessinterestsorthestrong voice of local populationswhen unified are highly valuable entry points to gain access to

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influentialmarketactorsinconsumercountriesandassuch,areimportantpartnersforFAOFLEGTPhase 3 information and outreach for private sector. Entities which provide services to privatesectors,suchasvoluntarycertificationandtrainingaswellasfinanceandlendingservicesarealsopowerful allies for channeling information sharing and training activities. These service providerswill be targeted forbuildingpartnershipswithFAOFLEGT to jointly increase thebenefit toSMEsand larger businesses of improving practices, increasing legality and formalizing their role in themarket,particularlydomesticandregionalmarkets.

� Operatingprocedure

FAOFLEGT’swork tosupport theprivatesector inPhase3will collaboratecloselywithotherFAOinitiatives which work with private sector actors, particularly SMEs. In practice, FAO FLEGTprogrammewill have an identified focal point or person and a core network of stakeholders andpractitionersrelatedtotheprivatesectorineachprioritycountrywhereweoperatetoprovideuptodateinformationondomesticandregionalmarketsandcommunicatewithkeytargetaudiences.

At this stage, lessons learned to date through initial studies and review of Phases I and II of theProgrammeprovide sufficient direction for thePMU to start Phase IIIwork to engage theprivatesectorinanumberofways:

- Calls for proposals: to ensure competitive opportunities and to seek additional unknownorganizations.ThePMUhasintroducedatwo-lotmechanismforVPAcountriestoencouragesupportspecifically fromthesector.Asimilarapproachwill likelybeused incountriesnotengagedinVPAs;thiswillbedeterminedbythenationalplatforms.

- DirectAssistance:basedontheunderstandingthatprivatesectororganizationshaveoftendemonstrated little capacity/interest to seek funds and implement projects in the“development” context, the Programme will plan Direct Assistance based on informationfromPrivatesectorstudiesaswellasthroughdirectcommunicationwhenPMUstaffareinthefield.Thisapproachwillbeessentialtodrivingprivatesectorworkforward.

- Informationservices: reachout to thePS throughsectormapping/situationalanalysisandneeds assessments, awareness-raising workshops, promotional/information materials(paper and web-based), events (such as the World Forestry Congress taking place inSeptember,2015,theGlobalTimberForum,Fairs,Globalorregionalcoalitions),etc.

- Targetfocalpoints:inadditiontothestandardProgrammemechanismsadoptedinPhasesIand II, focal points will be identified to help organize and coordinate in-country privatesectorwork.Thiscouldalsobeacorenetworkofstakeholdersandpractitionersrelatedtotheprivatesectortoprovideuptodateinformationondomesticandregionalmarketsandcommunicatewithkeytargetaudiences.TheIndividual(s)willworkthroughacollaborativerelationship,notdirecthire,andmaybelocatedwithinFAOcountryofficeteamorapartnerorganization. In addition, theprivate sector strategywill be incorporated into theworkoftheentireFAOFLEGTprogramteamandconsultantsaspartoftheirongoingresponsibilityforprogrammanagement.

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2.7.4 InformationServices(Outcome4)

Outcome 4 is cross-cutting andwill provide support for the communication and information andknowledge sharingaspectsof theProgrammeareaswhereFAOhasa comparativeadvantageandareasthatthePMUbelievesupportwillbemosteffective–(basedonproximitytostakeholdersandpresenceatthecountrylevel).Specifically,thisincludes:

1. Ensure local informationsharingandvisibilityat thecountry levelbyprojectproponents–basedontheProgramme’srelationshipwithlocalorganizations;

2. Stakeholderstoshareinformationwithintheirstakeholdergroupsandregionally;

3. Encourage exchanges of experiences, best practices to and between stakeholders – bringsuccessstoriesatcountry,regionalandgloballeveltohighlightprogress;and

4. Conduct global media initiatives when events occur or events are consistent withProgrammeobjectives(thiswouldbeanoccasional,yearlytypeofaction).

Theseobjectivesinherentlyinvolvesupporttothedevelopment,analysisandsharingofinformationrelevant to key governance and market issues identified by Programme stakeholders. TheProgramme will build on FAO’s renowned knowledge-sharing and information-disseminatingcapacitiesaswell as its roleasaneutralandhonestbroker to increaseaccess to informationandquicklyconvenestakeholders.Priorityactivitieswillinclude:

- BuildingonlessonlearntduringPhaseII,particularlyonprioritytopicssuchasprivatesectorengagement,conversiontimber,FLEGTimpactonemployment,SMEs,genderandyouth;

- Coordinating information exchange fora – business to business dialogues, south–southexperiencesharingandnational, regionaland international level fora toshareexperiencesandlessonslearned;

- SupportingcapacitydevelopmentsuchasmediatraininginconjunctionwithFAOForestry’sMediaandOutreachTeam;

- Supportingthedevelopmentandimplementationofcountry-levelcommunicationstrategiesinassociationwiththeEFIFLEGTCommunicationStrategy.ACommunicationStrategywillbedevelopedand finalizedby the incoming InformationOfficer.Please refer toSection IIIonCommunicationStrategyformoreinformation.

2.8 Coordinationwithregionaloffices

ThePMUwillcoordinatewiththeFAOregionalofficesforAsia-Pacific,AfricaandLatinAmericaandtheCaribbeantoensurethat implementationofProgrammeactivitiesareconsistentwithregionalpriorities and contribute tonational and regional FLEGTactions.Regionaloffices are set toplay agreater role in Phase III, particularly in countries not engaged in VPAs by contributing to thedevelopment of roadmaps and to Calls for Proposals and by steering the Programme at aregional/nationallevelthroughitsrepresentationinthenationalplatforms.

ThePMUwillalsoworkcloselywithregionalofficestofacilitateProgrammeoperationssuchas:

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- DevelopingtheFAOFLEGTProgrammeworkplantobeconsistentwiththeregionalneedsandprioritiesand seek synergiesbetweenTCP,GEF, FFFandUNREDDprojectsaswell asotheractorsactiveinFLEGTrelatedworkorsimilaractivities

- Seeking opportunities for regional staff to participate in the planning, organization andimplementationofprogrammeactivities(supporttoprojectsandinformationservices);

- SeekingjointopportunitiestobuildsynergiesbetweentheFAOregularprogrammeandtheFAOFLEGTprogramme–suchastestingandpromotingtheapplicationofnormativetoolsincountrylevelcontext;

- Liaising with stakeholders at country level to ensure knowledge of the programme andopportunitiesforassistance;

- Organizing information and knowledge sharing fora that include wide representation ofregionalactors.

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3. Partnerrelations

3.1 RelationswiththeEUandtheGlobalCommunityofFLEGTPractitionersThe Programmewill continue to promote continuous collaboration and consultationwith partnerorganizationsworkingonFLEGTandforestgovernanceissues,followingongoodrelationsmaturedthroughPhases Iand IIof theProgramme.Thiswill involveclosecoordinationwiththeECandEUDelegations,andtheglobalCommunityofPractitionersworkingonFLEGTandrelatedinitiatives.TheProgrammewillpursuecomplementaryinitiativeswiththeEUFLEGTFacilityatEFItoimplementtheFLEGT Action Plan and joint initiatives with FLEGT partners and civil society organizations. Inaddition,theProgrammewillseektobuildonnewpartnershipswhichhaverecentlybeeninitiated,including:

Internationalagencies:TheProgrammehasestablishedcollaborationwiththeUNREDDProgrammeand associated agencies (FAO, UNEP, UNDP) in addition to UNODC and Interpol to partner ongovernance and law enforcement activities. Currently the FAO FLEGT Programme is leading acollaborative partnershipwithUNREDDpartners,UNODC and Interpol to develop the EastAfricaInitiativeonIllegalLoggingandREDD+.Thisprojectisworkingtoaddresschallengesofillegalloggingand its effects on forest degradation in Kenya, Uganda and Tanzania. The same institutions areworking to review possible options for improved law enforcement and intelligence sharing in theMekongregion.

FAOForestandFarmFacility(FFF):theFFFhasasignificantopportunitytoprovideasupportingandcomplementaryroleintheFLEGTprocessesandassureadditionalrelevantstakeholdersareinvolvedin national dialogue. This collaborationhas been initiated through joint country-levelcoordinationefforts andmissions to enhance synergies of both Programmes. For example, inMyanmar, FFF issupportingForestUserGroupsandsmallenterprisetoestablishcommunityforestrytestpilotsiteswhile the partnership with the FAO FLEGT Programme has helped to develop guidance onregulations that would legally empower these same groups to conduct community forestryoperations.InVietNam,FFF,FLEGTandtheregularProgrammesareallinvolvedincomplementarywaystoexploreoptionsforsmallholderstosimplifyforestcertification,enterlegalsupplychainsandincrease access to market. In Kenya, the FFF in the lead, co-organized with the FAO FLEGTProgramme a regional conference to help on-farm tree growers groups and community forestassociationspromotetheirroleinsustainabletreeandwoodenergyproduction.

The thirdphaseof theProgramme is anopportunity topilot new combined initiatives supportingsustainable management paradigms such as multiple-use forest management that still requirevalidationbutthatwarrantexperiencebeyondtimber.ThePMUisworkingtocoordinatein-countryand global assistance with the FFF by sharing work plans and organizing country level jointinterventionmethodologies.

PrivateSector:TheProgrammeseekstoensureprivatesectorpartnershipstoshareinformationatthe global level and will therefore continue to foster ongoing and new partnerships with theEuropeanTimberTradeFederation,theGlobalTimberForum,andtheInternationalWoodProductsAssociationaswellasotherpotentialprivatesectororganizations.Theobjectiveofworkinginthese

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networks is toensureaprivatesector toprivatesectordialogue,communicationandexchangeofexperiences on priority legality requirements and efficient means to comply with thoserequirements. This dialogue will also promote large enterprise to medium and small enterpriselearninginproducercountries.TheProgrammewillmaintainandfurtherexpandthelargenetworkof timber associations that currently work within the Programme, and seek new partnershipsthroughcallsforproposalsandcountrymissions.Theworkwith localizedtimberorganizationswillbe to support understanding of country level evolving legality standards and support capacitybuildingtocomplywiththesestandards.

Others: In addition to the EU and Sweden, the PMUwill seek to continue collaborationwith theUnitedKingdomDFIDForestGovernance,MarketsandClimateProgrammeandfundedpartners,theUnited States Agency for International Development (USAID), theUS Forest Service, theUS StateDepartment,theInternationalTropicalTimberOrganization(ITTO),theConventiononInternationalTrade inEndangeredSpeciesofWildFaunaandFlora (CITES),andpotentially theGovernmentsofAustralia,Germany,FranceandtheNetherlands.Inparticular,thecoordinationwithITTOinitiatives(e.g.TFLETandREDDES)willbeapriorityinthisnewphaseinordertoavoidduplicationofeffortsandbuildonresultsachievedthroughvariousITTOprojects.ItisworthytonotethatearlierthisyearITTO signed a contribution agreement with the EU on independent market monitoring. TheAgreement seeks to establish independent scrutiny to assess concrete changes in the EU timbermarketandtoseewhetherthemarketrecognizesandappreciatesFLEGTlicensedtimber7.Inlightofthisimportantrole,theProgrammewillengagewithITTOtodeveloplearningdocumentsonFLEGTissuesthroughitsThematicProgrammeonForestLawEnforcement,GovernanceandTrade(TFLET)andinaddition,possiblyundertakejointinitiativesinVPAandnon-VPAcountries.

3.2 GlobalCoordinationGlobal FLEGT coordination will be facilitated by regular meetings organized by the EuropeanCommissionandattendedbyFAO,EFIandMemberStates,themostimportantonebeingtheannual“FLEGTweek”.ThePMUwillpromoteandreinforcecollaborativeactionswithrelevantpartners,i.e.by sharing theannualworkplanandorganizing in-countrymeetingswithdonors, conferencecallswith partner organizations in the regions, bi-annual meetings at the European level and partnercoordination.

7http://www.itto.int/news_releases/id=3860

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4. CommunicationStrategy

TheCommunicationStrategywillbefinalizedduringtheinceptionphaseoftheProgrammeincloseconsultationwiththeForestryDepartment’sMediaandOutreachTeamandtheEUFLEGTFacility’sCommunicationGroup.ThisstrategywillevolvebasedonlessonslearnedfromPhasesIandIIoftheProgramme. Itwillalsobefuelledbyresultsofthestudiesonprivatesectorneedswhichwill takeplaceduringtheinceptionphaseofthenewProgramme,asthesefindingswillinherentlyaffecttheProgramme’scommunicationmandategiven that increasedemphasiswillbeplacedon this targetgroup.

The Strategy will serve as a guide to reaching Outcome 4 of the new Programme but should beconsidered a cross-cutting Strategy, equally vital to fulfilling Outcomes 1, 2 and 3. A preliminarystrategycanbeviewedintheUmbrellaDocument.Highlightsinclude:

- Supporting country-level information sharing and visibility actions by project proponentsthroughmediatraininginthesecountriesaswellasprojectsthatsupportthisend;

- Lessons LearningAgenda ̶ the Programmewill work with stakeholders to contribute toinformationandknowledgesharingonbestpracticesandfacilitatedisseminationoflessonstotheglobalcommunityofpractitionersworkingonforestgovernance;

- Storytelling ̶basedonpreviousProgrammeexperienceandaspecificrequestfromdonors,the Programme will work to ensure experiences at the project level are systematicallysharedthroughappropriatefora,betweenserviceprovidersandotherrelevantstakeholdersand interactive platforms such as Capacity4Dev and/or the Interactive Map of EU FLEGTProjects(IMOF).

ItisimportanttonotethattheProgrammeoperatesinauniquecommunicationenvironmentgivenitsmulti-donormakeup,andthatit isboundtotherequirementsofalldonors,notleastFAO.FAOCorporate Communications requirements are fast evolving; as such, initiativeswill be carried outbasedonfeasibilityunderFAO’snewrequirements.

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5. Programmeoversightandmanagement

Programme Implementation and Management will be overseen by a Steering Committee and aProgrammeManagementUnit(PMU):

� TheSteeringCommitteewillbecomprisedofFAO,theEuropeanCommission(EC),theSwedishDevelopment Agency (SIDA), United Kingdom (DFID), and other donors or invited national orbilateralpartnerorganizations involved inglobalFLEGT implementation.TheEuropeanForestryInstitute(EFI)willbeinvitedtotheSCasanobserver.TheSCwilloverseeandprovidedirectiontoProgrammeimplementationandensureconsistencywiththecontributionagreement.TheSCwillmeetbiannually inBrusselsunlessanalternativevenueisagreedbytheSCmembers.TermsofReferencefortheSCwillbecirculatedbeforetheSCMeetinginOctober2015.

� TheProgrammewill be implementedby theProgrammeManagementUnit,which is apartofthe Forest Economics, Policy and Products Division of FAO’s Forestry Department. As acomponentof theDepartment, thePMU is subject toalloperationalproceduresand reportingrequirements under FAO’s new Strategic Framework as required for regular Programme staff.ThePMU,underasituationoffullfundingoftheproposedProgrammebudget,wouldconsistof:

- ProgrammeManager(P-5)-responsibleforprovidingstrategicdirectionfortheProgrammeandassuringalldeliverablesareaccomplished.

- ForestryOfficers–ThreeForestryOfficers(P-4)responsibleforthecoordinationofactionsineachofthethreeregions–Africa,LatinAmericaandAsia;andoneForestryOfficer(P-4)tocoordinateprivatesectorinterventionsunderOutcome3.

- Information and Knowledge Officer (P3) – responsible for implementing activities underOutcome 4: information, knowledge andmedia training and ensuing the linkage betweenthe communication needs of the Programme overall, FAO institutionally and ensuringappropriatevisibilityforthedonors.

- Database Technician (P-3) - will support the modification of the existing projectmanagement database to accommodate new call for proposal procedures and datamanagementneedsoftheProgramme.TheDatabaseTechnicianwillbeemployedonapart-timebasisandmostlyduringthestart-upphaseoftheProgramme.

- ProgrammeOfficer(P2)–willsupportbudgetmanagement,assistwithdonorcoordinationandassuretechnicalandadministrativequalityandconsistencyofLettersofAgreement.

- OperationsClerks–TwobasedinRomeandtwobasedwiththeregionalForestryOfficersinBangkok,ThailandandPanamaCity,Panama.

However,withpartial funding,notallnewpositionswillbe filled.Thecurrentstaffof thePhase IIprogrammewillbemaintainedandonlytherecruitmentofthePrivateSectorSpecialistisforeseen.If additional funding is available the Steering Committeewill provide a no objection to additionalstaffrecruitment.

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6. ProgrammeMonitoring&Evaluation

The PMU will update theMonitoring and Evaluation strategy to ensure effective tracking of theprogrammes’contributionto improving forestgovernance, legalityof timberproducedandtradedon domestic and international markets, and equity of forest management systems. The M&Estrategyiscomposedofthefollowingelements:

6.1 Programmelevelmonitoring

a. Logicalframework

Thenew logical framework (presented inAnnex3) identifies linksbetween the3 levelsofresults (output, outcome and contribution to FLEGT action plan) and integrates prioritycrosscutting themes. This strategic guiding frameworkwill allow themeasurement of theProgrammeresults,andfacilitatethereportingprocess.

b. Baseline

The baseline studywill be initially tested in non-VPA countries and possible selected VPAcountries(incollaborationwithEFIandmainmemberstatessupportingVPA),andbasedonthe Logical Framework’s higher outcomes indicators. The study will use a mixed-methodapproach primarily based on the joint FAO-PROFOR practical guide: “Assessing ForestGovernance”. Theexercisewillbe repeatedatprogrammemid-term,allowing thePMUtostrategicallyconsiderassistancerequestsandallocationoffunding,aswellasfinalstage,tohelpassesstheprogramme’sresults.

c. ExternalProgrammeevaluations

� Mid-term evaluation: The mid-term evaluation will make an overall independentassessment of the performance of the Programme in the first half term of itsimplementation. It will also identify key lessons and propose practicalrecommendationsfortheremainingimplementationperiod.

� FinalProgrammeevaluation: The finalProgrammeevaluationwillbean independentassessment of the Programme performance in meeting the target programmeexpectations. It will be an analysis of the lessons learned and overall success of theProgramme incontributingtothe implementationof theFLEGTActionPlanandmorespecifically the contribution of the programme to implementation of the VPA inparticipatingcountries.

6.2 Projectlevelmonitoring

a. StrategicProposalformat

Futureproposalswillfitcloselywiththeprogrammelogicalframeworkbyclearlyidentifyinglinks with Programme Outcomes and Outputs, and selecting the relevant, standardised

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indicators.Astandardisedlogicalframeworkincludingalistofcoreindicatorswillbemadeavailablewithproposaltemplates.

b. Duediligenceprocess

PriortothesignatureofaLetterofAgreement,aduediligencecheckofprojectproponents’profilewillensurerelevancetonationalcontextandkeyVPA/FLEGTobjectives.Thisprocesswill also identify potential weaknesses in service providers' management and allow fortailoredsupporttohelpremedythese.

c. Projectsevaluations

� Technical evaluations: A standardized technical evaluation sheet will be used toharmonize the evaluation process and allow reporting against the same performanceindicators, in line with the standard development evaluation process: relevance,effectiveness, efficiency, sustainability and impact. It will guide the PMU in assessingindividual projects’ results, and allow strategic guidance to project implementingbodies.

� Administrative and Financial control of projects: Systematic financial checks after allprojects’ inception phases, and regular audits, will ensure sound management andfacilitatecorrectivemeasures.Further,aspartofthefinalevaluationprocess,areviewof administrative and financialmanagementwill be conductedprior to signing off onfinalreportsandreleasingthelastdisbursements.

d. Capacitybuildingofserviceproviders

ThePMUwillbringoperational support toServiceProviders,withspecificattention to theoneswithoutpriorexperienceofmanagingFAOFLEGTfunds.Systematicinductionsessionson Programme procedures and reporting, or project management trainings wherenecessary,willbegivenpriortothestartofnewproject.Suchactivitieswillbetailoredonanad-hocbasis,according to individualServiceProvider’sneedsdetermined through theduediligence process. The PMU will carry on bringing further support throughout projectimplementation,reinforcedbytheresultsofsystematicevaluations.

6.3 Monitoringtools

a. ForisDatabaseupdate

Alongwiththeongoingprocessofmaintainingcoreprojectinformation,aseriesofupgradesto FORIS will allow the systematic collection of data against core project indicators asdefined in the Programme logical framework, and project performance data throughevaluations. This data will be used to aggregate project outputs and other relevantinformationforreportingpurposes.

b. Projectsupporttools

Asimple,user-friendlymonitoringpackagewillbeprovided,whichwillallowthecollectionof information throughout the implementationofeachproject. Themonitoringpackage is

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designedtobetterintegratetheProgramme’sreportingandcommunicationneeds,aswellasenablingtheuseoftheabove-mentionedgeneric logical frameworktocapturerelevantprojectdata.

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ANNEXES

Annex1.Privatesectorstrategy

Annex2.NonVPAcountriesreport

Annex3.ProgrammeLogicalframework

Annex4.Expertpanelreport

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FLEGTProgrammePhaseIII:StrategyforEngagingthePrivateSectorinForestGovernanceImprovementInitiatives

I. OVERVEW

GlobalactorsincludingtheUN,FAOandtheEuropeanUnion(EU)haverecognizedtheimportanceofintegrating the Private Sector in development strategies. In the context of achieving legality andsustainabilityinforestproductionandcommerce,theEuropeanCommission–throughtheadoptionoftheForestLawEnforcement,GovernanceandTrade(FLEGT)ActionPlanin2003andotherrelatedinitiatives–has longrecognized theneedtoengagewith,andgenerate thesupportof theprivatesector.EffortsbyFLEGTpractitionerssupportingVoluntaryPartnershipAgreements(VPAs)andothernationalforestgovernanceimprovementeffortshavealsosoughttoengagewiththeprivatesectorinallaspectsoftheircountryandregionallevelactivities.However, to date, achievements in this regard have been patchy,withmany actors – particularlysmall andmedium sized enterprises (SMEs) operating in national or regionalmarkets – remainingmarginalizedfromdialogueandchange.Thisisalostopportunity,becauseformanycountries,morethan50percentoftotalforest-relatedemploymentisinSMEs,withapproximately20millionpeopleemployedworldwide.Whentheinformalsectoristakenintoaccount,itisestimatedthatthereareup to 140million people employed by forest-related SMEs.8 In addition, themajority of domesticmarketdemandforforestproductsindevelopingcountriesismetbySMEs,whichtherebyrepresenta significant proportion of themarket share and this trend is increasing. Engaging this productivecapacityisvitalforsustainabledevelopmentoutcomes,includingpovertyreduction.IthasbecomeequallyevidentthatprivatesectorengagementandassociatedreformsareintegraltoSustainable ForestManagement (SFM) goals. As forestmanagement is facedwith the increasinglycomplexchallengeofhavingtoreconcilethedemandsofdifferentusers,includingtheprivatesector,policies, regulationsand institutional arrangementsare required thatensureaneffective incentiveframeworkexiststopromoteSFM.9WithoutmarketdevelopmentSFMwillremainanelusivegoalfornatural forests (due to the costs of implementation) and forests will continue to be graduallyconverted to other uses that deliver higher economic benefits at lower reputational risks. “Good”forestgovernance,inclusiveofprivatesectoractors,ensuresthatanincentivestructureisinplacetomake SFM an economically viable and attractive land-use option. “The New York Declaration” –endorsed by dozens of governments, 30 of the world’s biggest companies, and more than 50influentialcivilsocietyandindigenousorganizations, istestimonytothegrowingrecognitionoftheimportanceofmulti-stakeholderpartnerships,andtheroleof theprivatesector inreversing forestlossbytacklingcommodity-drivendeforestationintheirsupplychains.

8 GTF DA Request Concept 9 http://www.fao.org/docrep/v1500e/v1500e03.htm


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Efforts are thus needed to strengthen components of the FLEGT Action Plan which address theprivate sector, including systematically increasing awareness and understanding of EUTRrequirementstoprivatesectorinproducingcountries,promotingnationallevelpublicprocurementpolicies,andimprovingnationalfinancingandinvestmentopportunitiesforSMEs.Inthefaceofthesechallenges,theFAOFLEGTProgrammewillbuildon:(1)itsdistinctadvantageasaneutralactorinconveningglobaldialogueamongpublicandprivateentitiesfortrustbuildingandpromoting business-to-business dialogue, widely acknowledged as a more effective means oftransferring legality values to private sector stakeholders; (2) FAO’s history of work providingsupporttoSMEs,yetwiththeaddedvalueofdoingsothroughtheprismoflegalitysoastoenableSMEs to achievemarket access and gain the capacities to “go legal”; (3) long standing experiencesupporting national forest policies and incentives to address the needs of the privates sector inlegalitycompliance.TheObjectives of theStrategyherein (in linewith theProgrammeLogical Framework–Output3)include:

Output 3.1: Private sector composition, incentives and market dynamics are betterunderstood.Output3.2:Privatesectorstakeholdersunderstandobligationsforlegalcomplianceandthedemandsthatareinfluencingmarkets.Output3.3:Policiesandlegalframeworksarereviewedandrevisedtopromotefairaccesstoforestresourcesandincreaseproductiveanddecentemployment intheforestsectorasanengineforpovertyreduction.Output3.4:Privatesectorstakeholdershavetheskillstocomplywithlegalframeworksandaccessmarkets.

Within this context, it is important tonote that theProgramme isoperatingunder several explicitassumptionsthatrequiredbothgovernmentandtheprivatesectortoactivelyparticipate(theoryofchange):

1. The demand side incentivewill continue to strengthen – i.e. law enforcement of theEUTR, Lacey Act, Australian Illegal Logging Prohibition Act and additional countries onboard including China, Japan, South Korea and possibly others. The private sector islikelytocontinuewithbusinessasusual,butnotinfrontofregulatoryrequirementswithpenaltiesthatprovideasufficient“deterrenteffect”.

2. National level public procurement policies can be adopted and law enforcement canwork–theProgrammewillsupportthis,butthegovernmentshavetobeonboard.

3. Businesssidedialogueandresultingagreementswill leadtoastrongbusinesscasefor“going legal” – this also encompasses the assumption that greater involvement of theprivatesectorindecision-makingwillresultinregulationthatcompanieswilladopt.

4. Business to Business communication and private procurement policies will result inmoreuptakethantraditionaldevelopmentcommunication.


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5. Formalizing the informal sector will improve SFM, revenue capture, job creation andlegalityatthenationallevel.

II. Privatesectorchallengestolegalitycompliance,needsandopportunities

Thissectionoutlinescommonchallengeswithregardtoprivatesectorinclusioninlegalitycompliance(A),providesspecificexamplesfromdifferentregionsconfirmingtheneedfornuancedapproachestoprivate sector intervention (B)andoutlines findingswith regards to themajorneedsof theprivatesector(C).

A. CommonalitiesThe work of FAO FLEGT Programme and partners to date has shown that there are certaincommonalitiesacrossregionsandcountriesregardingthechallengesfacedwhenstrivingtoengagetheprivatesector inmulti-actordialogueand initiatives tostrengthen forestgovernance, includingVPAs.Thesearegroupedbelowinnospecificorder.Itisimportanttonotethatwhilecommonalitiesexist among challenges facing the private sector, there are no certain common solutions, andinterventionwilllikelyrequirenuancedapproachesgivencountryspecificcontextsandissues.Economic and Regulatory concerns.Many forestry companies, of all sizes, consider that they arealready operating under an excessive regulatory burden tomeetexistingnationalandinternational legalityrequirements.A general concern within private sector is that greateremphasisonlegalityconsistentlyresultsinincreasedregulationand higher costs for doing business. Excessive regulation is infact cited by private sector actors as the main barrier toachievinglegalityintheiroperations.Theseareprimarilyintheform of excessive numbers of permits and formal processesthat have to be passed through in order to complete theirwork; complicated or ineffective public administrationprocesses; lengthytimeframestogainpermissionorcompletea particular administrative process; lack of communication orsupport by public officials; confusing or contradictoryinformation and explanations provided; and lack of capacitywithin both public institutions and the private sector actorsthemselves,particularlySMEs.ThecostsofcomplyingwithregulationsmakeitimpossibleformanySMEsinparticulartosimply“golegal”.Inmanycases,privatesectoractorstendtopreferbusinessasusual: they do not engage because they are too busy and the process of achieving legality is toocumbersome. Inconsistent legality dividend on international markets was also cited as a majorconcern.Lackofnationalprocurementpolicies,incentivizingpolicyorregulations.ManySMEscannotaffordtoprioritizelong-termgoalsovershort-termgains,andotherssimplychoosenottobecauseofthe

BOX1.“RedTape”isthedriverofillegaltimberinHonduras

Asalvageplanisrequiredtorecouponefallentreeinaprivateforest.AtechnicianisrequiredtoconducttheremovalwhichwillcostL.5,000.00(USD$225.00).Inthewordsoftheforestowner,"Itwascheapertobuyrefreshmentsatthepolicestationsotheyturnedablindeye”.Extractionofthissingletreethereforebecameillegal.


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lackof incentivizingpoliciesor regulations.Access to legality and to thebenefitsofoperating in atransparentand legalmarketenvironment in factmaynotbereadilyavailable tomanycompanieseven when seeking to engage. There are few policy changes moreover that provide positiveincentives for behaviour change, such as establishing and enforcing national level procurementpolicies,simplifyinglawsandregulationsorpromotinglegalaccessforSMEs(thatlargelycontinuetooperateunderaninformalmarketsystem).Wherepoliciesexist,theyareoftennotenforced.Atthesametime,theexistenceofregulatorymechanismshaveshowntobean important“wakeupcall”forprivatesectorentitiesasthereisarecognizedcostforlackofcompliance.Informality trap and absence of a level playing field. Lack of legal access to resources, excessivecorruption,lackaccesstolegalmarketsorpromotionwithinlegalmarkets, lackofcapacitiesandinturn, theabsenceofa levelplaying fieldhaveall contributed topushingSMEs intoan“informalitytrap”.Grittenet al. (2015)10, for example, assess the regulatory barriers to communitiesmaking aliving from timber in Cambodia, Nepal and Viet Nam and assert that there are numerous, oftenprohibitiveregulationsinplace.What’smore,theauthorsexplain,theregulations’complexityoftenrequiresalevelofcapacityfarbeyondtheabilityofcommunitymembersandlocalgovernmentstaff. Confusionaboutwhat“system”touse.Manyprivatesectoractorshaveactivelypursuedvoluntarymeasurestoimprovethesustainabilityoftheirpractices,bothintheformofcertificationforforestmanagementandchainofcustody,andincorporatepurchasingpracticesandcommitments.Itisnotalways clear to the private sector how, or if, these efforts are incorporated in national legal andregulatory frameworks to improve legality and forest governance, which increases confusion andfrustration.AUN study11 confirms that this is commonon a global scale:where lawmakers fail todefine appropriate and inappropriate behaviour, it becomes frustrating for businesses, as it isdifficult tounderstandwhat is expectedof them. In additional, standards for compliancewith thediverse demand side measures (albeit a national or international measure or requirements of apurchasingcompany)canadddiverse layersof compliance formalities fora singlecompanysellinginto a variety of markets. Finally, the differences between competing certification schemesintroducesadditionalvariablesintheefforttodemonstratelegality,asrequirementsamongschemesvary, and not all schemes are equally recognized by purchasers or government-developed legalitysystems. Efforts to clarify the role and vigour of voluntary certification schemes within nationalsystems have been tested or are under discussion in several VPA countries including Vietnam,CameroonandtheRepublicofCongo.InVietnam,forexample,workisunderwaytoidentifycriteria,methodologyandmodalitiesforrecognizingvoluntaryandnationalcertificationschemesaspartoftheVietnamTimberLegalityAssuranceSystem(VNTLAS).Theseinitiativesshouldbesupportedandreviewedforlessonsorasmodelstobetestedinothermarkets.Lackofconfidence ingovernment.Historically, inmanyforestproducingcountries, thereexistsanenvironmentofmistrustandconsequently,lackofcommunicationbetweenprivatesectoractorsandgovernment entities, particularly regulatory bodies. A legacy of corruption and inconsistent

10 Gritten et al. 2015. AnUnevenPlayingField:RegulatoryBarrierstoCommunitiesMakingaLivingfromtheTimberfromTheirForests–ExamplesfromCambodia,NepalandVietnam.Forest,6:3433-3451;doi:10.3390/f6103433. 11 www.unglobalcompact.org/docs/issues_doc/Anti-Corruption/UN_Global_Compact_Goal16.pdf


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enforcement methodologies within many enforcement entities contributes to significant levels ofsuspicion and increased costs. This is particularly evident in the control of forest managementpractices and transportation of rawmaterials, where regulatory restrictions are often consideredexcessive, and thereby increasing cost for the primary producers, particularly for SME forestmanagers. In extreme cases, private sector representatives have questioned the governments’resolveand capacity to takeona “levelplaying field”approach, suchas adoptingaVPATLASandconsistentlyenforcingrulesacrossallsegmentsofthemarket.Indeed,manyoperatorsconsidertheVPA as simply another tool by which the public administration is taking advantage of legalitymeasuresfortheirownpersonalbenefit.Othershavesaidtheydonotbelieveinlegalitydiscussions,and do not think the public administration is strong enough tomaintain the rule of law; they seetheseprocessesasbureaucraticexercisesandarejustwaitingforthepracticalconsequencestoact(forexample,theEUTRthatrepresents/canrepresentarealconstraint/risk).ComplexmessagingaboutVPAandcompliancehasalsocontributedtotheproblem:organizationsthat support private sector inclusion in FLEGT processes have consistently missed the messagingneeds for this stakeholder group, and lack understanding of the most significant obstacles thatdissuadestheprivatesectortoengageinthelegalitydialogue.


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BOX2.NEEDSASSESSMENTONFORESTBUSINESSASSOCIATIONSA needs assessment conducted by WRI and the Global Timber Forum (GTF) in July 20151produced valuable insights into forest business associations which help to guide futureapproaches to address this group. Associations ranging from those representing a largepercentageofthewoodtradeofacountrytorelativelysmallorganizationsrepresentingamuchlowertradevolumeweresurveyed.Theywereaskedaseriesofquestionstogaugethelevelofawareness of legality requirements and sustainability forest product certification, marketdemandforlegalorsustainableproducts,andwheretheassociationneedsthemostassistance.Most of the associations’ members are aware of legality requirements and certificationstandards.Withafewexceptions,mostoftheassociationswouldlikemorefundingtosupporttheir legality and sustainability activities. After that, the area with the highest need is incommunicating andmaking a solidbusinesscase formarket demand for legal and sustainablewoodproductstomembers.Other areas that rated high on the needs scale included support in training members and inhelping to establish due diligence systems and supplier assurance. Importers and processorsstated that they need more help understanding producer country forest law. Exporters andprocessors, on the other hand, need help understanding export forest trade law and helpingmembersadoptSFMstandards.PriorityNeedsofforestbusinessassociations

Source:WRI&GTF,2015.


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B. Illustrativeregionalandcountry-levelconsiderationsWhile common challenges are found, as identified above, work on FLEGT related issues and VPAimplementationtodatehasshownthatthecontextofeachregionandcountryisuniqueandcreatesspecific environments (opportunities and challenges) for the private sector, which need to beaddressedindividually.Nationallevelapproachesareneededtoadaptinteractionsadequatelytothedifferent contexts. The following sections highlight some of the trends and examples from eachregion.LatinAmerica:WithagrowingmiddleclassinmanyLatinAmericancountries,domesticdemandforwoodproductsis significantly increasing year by year. A 2013 study ofwood flows in Central America by EFI andIUCN12showsthatwhilethere isarobusttradeamongcountrieswithintheregion,asawholetheregionisanetimporterofwoodproducts.TradedatafromlargetimberproducingcountriesinSouthAmerica,particularlyColombiaandPeru,demonstratea rapidlygrowingsimilar trend tobeingnetwoodimportersinthenearfuture,inordertomeetdomesticdemand.Importstendtobeinlower-value wood products such as pulp for paper production or cheap furniture from China. LatinAmerican countries continue to export high value tropical timber, where high-visibility illegalityissues are found, including record levels of violence against community and indigenous groupsprotesting illegal logging. In addition, there is little control on national SMEs and imports for thedomesticmarket. Therefore, in order to increase legality and transparency in the forest sector, afocusonprivatesectoractorsoperatinginthedomesticandregionalspheresinadditiontoexportswillbeessential.A 2015 study in Honduras provides an illustrative example of private sector actors’ perceptionsregardingbarrierstolegalityandgoodgovernanceinthesector.Themostcommonresponseacrossallfivetypesofactorsinterviewedwastheneedforregulatoryreform,toreducecostsandreduceorimproveofficialprocessesinordertocreateamorelevelplayingfieldwithinthecommercialsector.Costs were considered to be excessive considering the limited governance support or benefitsprovidedbyformalinstitutionalstructures.FindingsfromHondurasarereflectedinananalysisoftheprivatesectorinCostaRicabyIUCNwhichfoundthatthecoststoforestproductcompaniestoobtaintherequiredpermitsforexportincreased150%intheperiodbetween2012and2014withnoperceivedincreaseinbenefittotheexporter.

12 EFI y UICN, 2013. Comercio Internacional de Productos de Madera y su Gobernanza Administrativa en la Región de América Central y la República Dominicana.


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Asia:Asia’soverallforestcovercontinuestodeclinebutplantedforestsareexpandinginsomecountries.Countries such as The Philippines, Vietnam and Thailand have engaged in major plantationprogrammes and recorded a net increase in forest cover during 2005-2010. Annual production ofindustrialroundwoodintheregionhasremainedrelativelystableat250–280millioncubicmetresduringthepast20years.Naturalforestsareincreasinglydepletedandconversiontimberrepresentsanincreasingshareoftimbercomingfromnaturalforests.Timberproductionfromplantedforestsisincreasingandthesmallholdercontributiontoregionalwoodsupplieshasbecomecritical.ThemostrecentFAOdataonforestlandownership(2005)showthatinASEANgovernmentsremainthe dominant forest owners. Household and community tenure and harvesting rights in naturalforestsremainslimitedandoftenunclearandproblematicbutthesituationisimprovingforplantedforestsortrees.Theregulatoryenvironmentforcommunityplantationsorforestsandsmallholdingshasbeenshapedbynativeforestconsiderationsandisthereforeoftenill-adaptedandcomplex.Onthe other hand some smallholder-grown timber species are classified as agricultural commoditiesandfalloutsidetheforestrysector’sregulatoryframework.Thepromotionofregulatoryapproachesand certification to improve forest governance and enhance international market access canexacerbatetheseexistingproblemsandhaveacriminalizingorparalysingeffectoncommunityandsmallholder timber production as well as small scale enterprises further down the supply chain.ManySMEsrelyingonnaturaltimbersourcesareincreasinglystrugglingtofindaffordableandlegalorsustainabletimbersources.OneofthemajorchangesintheforestrysectorinAsia-Pacifichasbeenashiftinfocusfromexportsof industrialroundwoodandotherprimarycommodities–largelytoregionaltradingpartners–to

BOX3.Needs identified by private sector forest actors inHonduras to improve legality andincreaseengagementwithforestgovernancedialogue.

PrivateSectorGroupsinterviewedwere:ForestProducersAssociation;ForestCooperativesFederation;ForestOwnersAssociation;ReforestationandPlantationAssociation;andTimberAssociation.


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theexportofmorevalue-addedproducts–especiallywood-basedpanels,paperandpaperboardandwooden furniture – to markets throughout the world. Several countries have emerged as majorproducersandexportersofwoodenfurnitureduringthelasttwodecades.ASEANcountriesarenowpredominantlyexportersoftimberandwoodproducts,mainlytoChina,EU,US,Japan,CanadaandIndia.However,becauseofscarceforestresourcesinsomekeycountries,largedemand,andmajorinstalled processing capacity, the Asia-Pacific region is a significant net importer of most woodproducts.Asia’sexportandvalue-added forestry sectorhasbeenadriverofdevelopmentandhasbrought opportunities for its smallholder timber producers and SMEs. In an increasingly regulatedmarket small producers andSMESare facing increasing challenges to complywith regulationsandrequirementsandtheirassociatedcost. Africa:ThemajorityofAfricanforestproductexportsareroundwoodandsimplyprocessedproducts,whileimports are predominantly higher-value products. This has led toa negative balance of trade inforestproductsthathasoccurredinalmosteveryyearoverthelastfivedecadesandcurrentlystandsat USD 4.6 billion (FAOSTAT, 2016). Furthermore, in many African countries, artisanal productionconstitutes at least 50percent of total national production and the domestic markets constitutemore demand than the international markets. Some studies estimate that small-scale chainsawmilling may account for as much as 90 percent of forest operations in countries like DRC.13 Theinformal markets also contribute significantly to employment (especially rural employment) thanlargebusinessesasalllabourismanual.ACIFORstudyestimatesthatchainsawmilling,forexample,providescloseto40000moreorlesspermanentjobsinruralareas.14Thesamestudyestimatesthatannualproductionfrominformalchainsawmillingoperations inCameroonreached715000m3by2009(bycomparison,in2009thevolumeofsawnwoodfromtheindustrialsectoramountedto360000 m3). A Programme study carried out by PARPAF (Project dáppui a la Realisation des plansd’amenagement forestier) in collaboration with CIFOR in 2011 confirmed these trends. The studyfound that 44000 m³ of rough-sawn timber enters Bangui, Central African Republic, each year,similartotheamountofindustrialtimberexportedannuallybythecountry;villagesreceive50000–150000FCFAperyearfromoperatorsasaninformalcompensationsystemonloggers.What’s more, recent CIFOR research under the Pro-Formal project suggests that small-scaleoperatorssupplyingdomesticandregionalmarketsinAfricaarebeginningtodemandrecognitionintheformofrightsandresponsibilities,includingthepaymentofgenuinetaxesinsteadofbribes.Itiswidelyacknowledgedthatthe informal,artisanalsectorcangenerateanumberofbenefitsto localcommunities and national economies in the form of employment, empowerment, investment inpublic goods and conservation of forest ecosystems, but not if it they remain invisible andcriminalized.

13Lawson,S.2014L’exploitationillégaledesforêtsenRépubliquedémocratiqueduCongo.ChathamHouse,EERPP2014/3,London.14Cerutti,P.O.andLescuyer,G.2011Thedomesticmarketforsmall-scalechainsawmillinginCameroon:Present situation, opportunities and challenges. Occasional Paper 61. CIFOR, Bogor, Indonesia


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C. Privatesectororganizationalopportunities

ResearchbyWRIandotherindependentorganizationsstronglysuggestthatasignificantnumberofcompaniesandassociationswouldbewillingtoengageonlegalityandsustainabilityweretherightmediumtoreachthemeffectivelytobeavailable.Individualoutreachtoforestbusinessesofanysizeis not a feasible approach to achieve scale of impact. Federations or associations of companiesprovide critical entry points to gaining access to larger groups of companies, andmulti-federationgroupings at regional or global levels multiply this effect even further. Forest businesses areincreasingly creating innovative associations in order to access markets and information for theirmembers, includingSMEa.Forexample, inJuly2014representativesfromforestsectorfederationsinsixcountries inMesoAmericacreatedtheOgranizacionesdelSectorForestalPrivadoResponsiblede México, América Central y el Caribe, known as UNIFOR, to promote and improve responsiblepurchasingatnational,regionalandgloballevel.UNIFORisnowbeinglegallyregisteredwithineachmembercountryandisgainingstrengthamongitstargetaudience.TheGlobalTimberForum(GFT)–anopenaccesscommunicationsplatformcreatedanddevelopedbytheinternationaltimberindustry–wasformedtoaddressthesameissueofscaleandaccesstoinformation.ItsinauguralsummitinRomein2013wassupportedbyFAOandinterestintheconcepthassteadilygrown.AttheGTFmeetinginShanghai,June2015,itwasagreedtoformtheGTFintoaseparatelegalentity.EstablishedthroughDFIDsupporttotheEuropeanTimberTradeFederationinordertoengageprivateindustryinforestsmarketsandgovernance,theGTFlinksassociationsfromdeveloping countries with export markets, engaging the industry globally, and providing valuablesouth-to-south connections. The GTF plays an especially important role, filling the gap incommunication between consumer and producer companies by providing information andknowledge through a business-to-business channel,which has arguably been a keymissing link inengagingtheprivatesectorinFLEGTandrelatedprocesses.The developments of new associations forming among forest business interests of all sizes and atdifferent geographical scales, shows the potential power of grouping together within the privatesector to identify collective needs, and gain access to information and markets. Likewise, theseassociationscreateessentialentrypointsforsupportinterventionsbyserviceprovidersandtheFAOFLEGTProgramme.Throughtheseassociations,afargreaternumberofprivatesectorinterestscanbereached–thisisparticularlyneededwhenseekingtocollaboratewithSMEs.

III. PREVIOUSPROGRAMMESUPPORTANDCOMPARATIVEADVANTAGEThissectionoutlinespreviousProgrammesupporttothePrivateSector(A)andhowFAOcanbestsupportprivatesectorengagementinlegalitycompliance(B).

A. PreviousFAOFLEGTSupporttothePrivateSector

During Phase II, 30 projects directly targeted the private sector or addressed their needs. Mostactivitiesfocusedonneedsassessmentandtraining,wheredemandfromtheprivatesectorishigh,


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especially on the TLAS and traceability components. The Programme also continues to help theprivatesectortocomplywithlegalpoliciesandregulations,includingsupporttoassessriskofillegaltimberinthesupplychainsofSMEsandtestingapproachestoincludeSMEsinnationalTLAS.Anotherimportantareaofworkistheproductionofnormativeandinformativematerialsdirectedatthe private sector (companies, operators, federations, and associations) to improve theirunderstandingofFLEGT,VPAandTLASandtoprovidetoolstocomplywithFLEGTrequirements.Thisdemonstrates a gap in specific technical knowledge and skill to address changing legalityrequirements.WhiletheProgrammehasonlyfundedtwoprojectsonnationalpublicprocurement,this area holds great promise for impact with little inputs. The projects have been awarded to avarietyofstakeholdergroupsincludinggovernmentinstitutions(forestryandtraderelated),privatesectororganizationsandNGOs.

B. FAO’sComparativeAdvantage

In addition to building on Programme experienceworkingwith the private sector, the FAO FLEGTProgramme has a distinct advantage to influence private sector inclusion, participation and anenablingbusinessenvironmentforthreemainreasons:

(1) GlobalDialogue–Asaglobal institutionwithahistoryofconveningmultiplestakeholders,FAOcanfacilitatedialoguebetweenpublicandprivateentities,which isessential fortrust-buildingand tacklingprivate sector legalityandcomplianceconcerns suchas theexcessiveregulatory burden and the absence of rule of law. A key part of this is the promotion ofbusiness-to-business dialogue, widely acknowledged as a more effective means of

BOX4.FAOFLEGTPROJECTSSUPPORINGPRIVATESECTORINITIATIVES

Forafullylistofprojects,pleaseseeAnnexII.


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transferring legality values to private sector stakeholders. As an institution, FAO alreadyworkstofacilitatedialoguebetweengovernmentsandtheprivatesectoronaregularbasis,encouraging the use of voluntary standards of best practices and facilitating privateinvestment ingoodand inclusivevaluechains.15TheForestryDepartment inparticularhasplayedaregularroleinthisregard(e.g.theAdvisoryCommitteeonSustainableForest-basedindustriesandrelatedmeetings).FAOFLEGTbuildsonthisrichexpertiseandcapitalizesonitsroleasaneutralconvenor.

(2) SME Support – FAO’s mandate and Strategic Objectives focus on reducing poverty andenablinginclusiveandefficientagriculturalfoodsystems,includingmakingsuresmallholdersarenotexcludedfromimportantpartsofthevaluechainnorpoorercountriesmarginalizedin the global market place where bigger players are accustomed to exerting greaterinfluence. FAO’s Social Forestry and Forest Economics Teams and the Forest and FarmFacility (FFF) already have a robust Programme of work engaging SMEs. The FAO FLEGTProgrammewillcomplementtheseactivitiesprovidingpolicyandtechnicalsupporttoSMEsinthecontextoflegality.

(3) National Policy and Incentives – It is widely accepted that governments have primary

responsibility for creating and supporting enabling environments for sustainabledevelopment–throughaccountableinstitutionsandenforcingtheruleoflaw,forexample.FAO has a history of policy support in the forest sector, helping governments formulate,monitor and evaluate “good” forest policies, identify challenges in the sector, enhancedialogue among stakeholders, develop capacities to deal with policy issues and provideincentivizing legislation. Enhancingmulti-stakeholder dialogue has been a core part of theProgramme since its inception and has long been a cornerstone of regular Programmeactivity through the National Forest Programme Facility and other governance initiatives.This dialogue,moreover, hasmade it possible to bring up contentious issues such as landtenure,accesstoresourcesandinclusiveness.TheFAOFLEGTProgrammehencebuildsonanexisting body of work to continue support to government-led aspects of enablingenvironmentsforlegality.

IV. FAO FLEGT STRATEGY TO ADDRESS NEEDS OF PRIVATE SECTOR IN LEGALITY

COMPLIANCE

This section provides an overview of the needs of the private sector that this Programmewilladdress based on what is viable and realistic from a technical standpoint, in view of itscomparative advantage and outlines the objectives (A), means (B) target audience (C) of thestrategy,roleofactors(D),programmemechanismsandpartnerships(E)andgeographicscope(F).

A. Overview

15 www.fao.org/about/what-we-do/so4/en/


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Attention tobothdomesticand internationalmarkets. Initiatives to improve legality in the forestsectorcanactuallybeattractivetotheprivatesector,asindicatedbythefindingsoftheGTFandWRIstudy, as they will facilitate market access and potentially lead to more rational and fair legalframeworksand levelplaying fields.Thechallengeandopportunities togeneraterealchange fromprivatesectorperceptionsandactionsstartswithprovidinginformation;trainingandoutreachtoallactorsoperatingatallmarketlevels,andpromoteengagementwithgovernmentthroughawarenessofthelikelybenefits.Atthesametime,weknowthatinternationalmarketsarenolongersufficientdrivers of legality given that over 50 percent of production is destined for domestic markets inproducer countries, where there is a lack of demand for legal timber. This makes attention todomesticmarketissuesequallyintegraltoanystrategy.LegalandRegulatoryReform.Supporttoprivatesectortoincreaselegalandsustainablepracticesinforestrywillonlyhavelongtermtractionifaccompaniedwithcorrespondingregulatoryreform.Inturn, technical support provided to the private sector is unlikely to succeed in improving legalitycompliance and benefits of legal operations unless consistent and feasibly applicable regulatoryreformprocessesprecedetrainingprograms.InVPAcountriesLegalityAssuranceSystemsarebeingdesignedand implemented toprovidea systematicmeansof applying and verifying applicationoftheregulatorysystems.Oftenperceivedbytheprivatesectorasincreasedregulationandassociatedcompliancecosts,theyarefoundedonthenationallawsandonlyincorporateadditionalregulationtomeetinternationalbestmanagementstandards.WhilesomeofthisconcernmaybealleviatedbyaccesstoinformationandraisingawarenessofhowaLegalityAssuranceSystemwillbeimplementedin practice, it is such a recurring theme in discussionwith private sector actors that it cannot beignored.Otherconcernsoftheprivatesectorwillrequiremoreskillstrainingaswellasanenablinglegalandregulatoryenvironment.IncentivesandPublicProcurement.Regulatoryandfiscalreformprocesseswhichcreate incentivesfor good legalbehaviour arehighon theagenda for all private sector actors, largeand small, andthereforemustbeincorporatedasabasicgoalforanyinterventiondesignedtoengagethemactivelyin forest governance support initiatives. As part of all regulatory and fiscal reform efforts, publicprocurement strategieswhich favour legally produced timberproducts shouldbe apriority. Theseare currently being promoted in Ghana, Uganda and Colombia through government action andsupport from the FAO FLEGT Programme, but are not yet nationally endorsed and operational.IncipienteffortsarealsobeingmadeatmunicipallevelsinLatinAmericawhichalsoshowpotentialtohavepositiveimpact,andshouldbefostered.BuildingTrust.Fundamentally,gettingprivateandpublicentitiestositatthesametabletoengagein dialogue, through multi-stakeholder platforms for example is critical to successful reformprocesses. The message that must reach the private sector is that discussions regarding legalitydefinitions are actually opportunities to simplify and clarify regulations, and identify needs forreform. These discussions are also opportunities to engage in dialogue on developing technically-viableapproachestolegality.


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Developing Skills. Private sector and particularly SME actors need to remain competitive in theirproduction in order to be able to effectively address reforms and requirements for legality.Improvements toproduction capacity should gohand inhandwith improving legal and regulatoryframeworks.In summary, the private sector requires regulatory and policy reforms to enable them to engageeffectively with national and global efforts to improve legality, and to improve access to fair andtransparent market opportunities. Experience from FAO FLEGT Programme’s work to date,particularly in support of countries implementing a VPA, shows that governments are willing toconsider regulatory reformwhen the challenges andpotential solutions arepresented to thembynationalbodiesandthroughnationaldialogueprocesses.Thisindicatesthatthereispotentialforanarticulate, aware and organized private sector to positively influence governments regardingregulatoryreformshouldtheychosetopursuethisoption.

B. ObjectivesandOutputsoftheStrategy

The following are illustrative proposed interventions, presented byOutput,whichwill be adaptedandrefinedthroughoutimplementationofPhaseIIIinordertobetterdeliverviablesolutionstothechallenges encountered. In addition, these activities are presented in relation to target groups inANNEX1.It is important to note that these actions are illustrative and theymay not all be appropriate forimplementation in each country. Additionally, the programme will prioritize actions based onresources available and need. FAO FLEGT remains a primarily demand driven programme andtherefore specific interventions in each country will reflect needs and demands as identified bystakeholders.ThedesiredGlobalOutcome is describedbyOutcomeThree under FAO FLEGTPhase 3work:Thecapacityoftheprivatesectortoparticipateintheproduction,marketingandtradeoflegaltimberhasincreased.Inotherwords,theProgrammeseekstoimprovetheenablingconditionsunderwhichthe private sector operates within the timber industry, to promote cultural change within global,regionalandnationalforestproductsmarkets,wherebylegalandtransparentoperationisthenorm.ItisimportanttonotethattheProgrammewillseektoaddressthechallenges(outlinedinSectionA)that are viable and realistic from a technical standpoint, based on its comparative advantage.Moreover, the interventions are subject to changes as they are based on country level work,proposalsreceived,stakeholderpreferenceandlocalcontext.Finally,althoughafinalbeneficiaryoftheProgrammearewomenanddisadvantagedsegmentsof society,genderhasnotbeen includedunder the proposed illustrative interventions as it requires preliminary research during the initialphasesofPhaseIIItoallowformoretargetedandrealisticinterventions.Output3.1:Privatesectorcomposition,incentivesandmarketdynamicsarebetterunderstood.The FAO FLEGT Programme and others in the FLEGT arena have identified a significant lack ofinformation and data on the structure and dynamics of actors in the private sector, particularly


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regarding SMEs and informal micro-enterprises. Without a good understanding of the currentsituation of the local and domestic market structures, in addition to regional and internationalmarketswhicharebetterknown,interventionsthroughourworkarelikelytobelessthanoptimallyeffective. Although some very important studies have been carried out and the Programme willcapitalize on information available,16 more country- and regional case studies will need to beconducted to better target support. To allow Programme activities to move forward, rapid riskassessmentswillbeincludedinthecountryandregionalcasestudiestoidentifyweakestaspectsofforestproductscommercialchain,geographicallyandoperationally.Thesestudieswillbeconductedthroughaphasedapproach,conductingseveralstudiesperyearoftheprogramme. Ofnote istheresearch needed to better understand vulnerable segments of society and identify marginalisedgroupswho often face the greatest difficulties to complywith legal frameworks and receive littleattention in forestpolicies inmanytimberproducingcountrieswhichfavour large-scaleoperationsorientedtoexportmarkets.Itwillbeimportanttomaptheirinvolvementandunderstandhowroles,relations, participation, access and benefits in relation to forestry value chains, particularly in thecontextofgender,toallowforspecificinterventionsthatcantrulymakeamarkonpovertyreductionandmitigatethepotentialadverseeffectsofVPAsandassociatedforestgovernancereforms.IllustrativeinterventionsOutput3.1:

� ConductarapidassessmentineachcountrywherePhaseIIIwilloperateinorderto:

� identifypriorandongoinginitiativestoaddressneedsofprivatesectorparticularlySMEs,andcorrespondingdataavailable;

� understandnumberandtypeoforganizedstructuresgroupingprivatesectoractors,andtheirrelativestrengthsandinfluence;

� applytypologyofprivatesectoractorsassessmenttounderstandprofileofsector;� conductinitialassessmentofproportionalcoststoSMEsinallaspectsofbusiness–

tohelpidentifyweakestpartsofproductionchainwhichneedassistance;� determineinitialinterestinorpotentialforpublic-privatealliances,public

purchasingpolicies,orotherpolicydevelopments;� gaugeprivatesectorexpectationsregardingVPAsand/ornationalinitiativesto

addresslegality;� conductrapidriskassessmentofcommercialproductflowincountry,identifying

mostvulnerableaspects,bothoperationallyandgeographically;� collectadditionalinformationasidentifiedduringthedesignoftherapid

assessments.

16Forexample:FAO.2015.Cameroon:Typologyofprivatesectoractorsinforestry.Rome,Italy.;Cerutti,P.O.andLescuyer,G.2011Thedomesticmarketforsmall-scalechainsawmillinginCameroon:Presentsituation,opportunitiesandchallenges.OccasionalPaper61.CIFOR,Bogor,Indonesia.;Lawson,S.2014L’exploitationillégaledesforêtsenRépubliquedémocratiqueduCongo.ChathamHouse,EERPP2014/3,London.;EuropeanForestInstitute’sstudiesonTradeFlowsinAsia


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� Buildunderstandingthroughpartnershipswithexistingorganizationson:

� understandingofdomesticmarketissueswithpartnerssuchasCIFOR,EFI,WRI,

FSC/PEFCbodiesandassociatedauditors;� understandinglocalchallengesthroughworkdonebyindependentmonitoring

organizations,NGOs,andprivatesectororganizations� understandingroles,relations,participation,accessandbenefitsinrelationto

forestryvaluechains,particularlyinthecontextofgender.Output 3.2: Private sector stakeholders understand obligations for legal compliance and thedemandsthatareinfluencingmarkets.Asnotedabove,thereisalackofinformationonprivatesectorstructuresandrelationshipsinmanytimber producing countries. Conversely, there is a lack of information available to these actorsregarding legalityrequirements,marketsdemandsandtrendswhichareessential inordertomakebusinessdecisionsforthefuture.Thereisaclearneedtohelpprivatesectorentitiesofallsizes“golegal”,andunderstandthebusinesscasefordoingso.LargeCompaniestradingatnational,regionalandinternationallevelneedtobeinformedandtrainedontheFLEGTActionPlan,internationaltraderequirements, specific practices to improve legality and sustainability of their operations so as tocommunicate back to and lead producer country industry. SMES in particular need to have betteraccess to information– insimpleandaccessible formats–aswellascommunicationandoutreachresourcestopromotetheirproductsandthebenefitsoflegalproductiontotheirtargetmarket.IllustrativeinterventionsOutput3.2:

� Supportfederations/cooperativearrangementsofgroupingSMEs(i.e.membershiporganizations;technicalserviceprovidersetc.)whicharewellsituatedtodirectlycontactandimpactalargernumberofbusinessesandother,smallerprivatesectororganizationsthantheProgrammeitselfcoulddodirectlyandpromoteinformationonlegalityandmarketdemands.

� Workdirectlywithexistinginitiativesthatsupportsmallforestenterprisesatnational

levelandregionalleveliftheyexist,FFF,FAOSocialForestryProgramme,forestorfarmers’associations,etc.toprovidetechnicaladviceonmarketsandregulatorycompliance.

� Collaborateintrainingandcapacitybuildinginitiativeswithcertificationandverification

serviceproviders,toensurecoherentandconsistentmessagesregardinglegalitycompliance,andtoreachlargerprivatesectoraudience.

� PayparticularattentiontoprovidinginformationandcapacitybuildingtoFederationsof

businessinterestfromStrategicPartnercountries,suchasChinaandBrazil,throughinformationsharingandtrainingmechanismoftheProgramme.


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Output3.3:Policiesandlegalframeworksarereviewedandrevisedtopromotefairaccesstoforestresources and increase productive and decent employment in the forest sector as an engine forpovertyreduction.In order to influence regulatory frameworks, effective dialogue and trust needs to be establishedbetween the private sector and public entities, particularly regulatory bodies. In addition, it isimportant the public entities recognize the benefits to them,which are likely to be generated bybuilding closer alliances with private sector. Positive reform, such as incentives for private sectorthroughpublicpurchasingpolicies,areparticularlyemphasized.Equally,support isrequiredtohelpidentifytheneedsforlegalreformcollectivelywithintheprivatesector,particularlythoseaffectingSMEs,andpresenttheseneedstogovernmentforactionthroughparticipatoryprocesses.Thereisanimportantopportunityheretoensuregender-specificbarrierstoaccessandcontroloverproductiveresourcesandtheneedfordecentemployment(jobsecurity,improvedworkingconditions,etc.)arebroughtupinthesediscussionsandcommunicatedtogovernments.IllustrativeinterventionsOutput3.3:

� Establish/promotenationalleveldialoguebetweengovernment,privatesectorandcivilsocietytoprioritizetopicsandseekcommonperspective:

� categorizeregulatoryobstaclesmostcommonlycitedbyprivatesectoractorsanddeterminetheirfunctionandeffectiveness;

� outreachtocorrespondingpublicentitiestobetterunderstandchallengesfromtheirperspective,andidentifycommonopportunities;

� understandcurrentpublic-privatecommunicationchannelsandpotentialtoinfluencechange

� Identifyadvisoryneedsandhireconsultantwhereappropriatetoworkwithgovernmentto

developappropriatepoliciesandregulatoryreformactionswhichsupportSMEs.

� EncouragedialoguebetweenpublicentitiesandSMEproducersspecificallyregardingaccesstoresourcesandtenuretoidentifybottlenecksandpossiblesolutions.

� Alignmessageswithcertificationandverificationserviceproviderswithregardstoframingrequestsforpublicsectorconsideration,i.e.legalandpolicychanges.PromotecompatibilityVPATLAS,especiallyfortheFSCControlledWoodandPEFCControlledSourcesstandards.

� One-on-onedialoguebetweenFAOFLEGTandpublicregulatorybodiestoassess:

� RelationshiphistoryofinteractionwithprivatesectorincludingSMEs;� Interestinincreasingorganizeddialoguewithprivatesectororganizations(PSOs)and

consideringreductionofregulatoryburdenwhereappropriateratherthancontinuetrendofincreasedregulation;


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� AnticipatedoutcomesofgovernmentrelatingtodialoguewithPSOs,potentialforchange;

� Actualandproposedpolicyincentivesforprivatesector;� Potentialforpublicpurchasingpolicieswhichcreateademandforlegallyproduced

timber,incentivesforSMEcomplianceandpositivereform.Output3.4:Privatesectorstakeholdershavetheskillstocomplywithlegalframeworksandaccessmarkets.Privatesectoractorsclearlyneedaccesstotrainingandinformationonlegalityforimprovedqualityand efficiency of production – particularly SMEs in value-added processing – to increasecompetitivenessoftheirbusinessesandstrengthentheirpositioninthemarket.Indeed,SMEsneedto be supported in their efforts to develop technical capacities to complywith legal frameworks,thereby promoting market access, enabling progression to more sustainable forest managementsystems. This is key, as SMEsarepotentiallymuchbetter suited than largerbusinesses tomanageforests sustainably, particularly if one looks at the importance of the domestic market in manycountries.AsnotedinSectionI,groupingsofbusinessinterestsprovideessentialopportunitiesforFAOFLEGTProgramme tohavea greater influenceonprivate sector actions, capacity anddecisionmaking atnational, regionalandglobal levelssuchasGTFandUNIFOR. Internationalorregionalgroupingsoffederationscreateaneutralspaceforcommonintereststobediscussedwithouttheframeworkofcompetitionamongfederationswhichcanoftenbefoundatnational level. Inaddition,these“self-selected”groupsofprivatesectorrepresentationscreateleadershipwithintheprivatesector.Certain companies and federationsmay havemore experience than others in best practices, andwithin thisneutralgrouptheyhavepotential to influenceamuchwideraudiencethantheywouldindividually.Theleadershipexamplethattheycreate,combinedwithglobalmarkettrends,createsapull on weaker federations and companies to increase their compliance and awareness whilefosteringasenseof“partnership”withinthegroupratherthandominancebycertaininterestsoverothers. For example, companies in emergingmarkets such as Brazil, Mexico and China aremuchmore likely to be influenced by their peers in other countries than by training offered by specificnationalfederationsfromaleadingmarketregion(USAorEU).IllustrativeinterventionsOutput3.4:

� CollaboratewithandprovidesupporttoFederationsandothergroupingsoflargebusinesses

toensuretechnicalandoperationalcapacitytoprovidetheirmemberswithinformationandtrainingonkeycomponentsofFLEGTActionPlan,traderegulations,duediligenceetc.Alsotoencouragelessonlearningamongmemberssothatexperiencesinlegalitycompliance,certificationandresponsiblepurchasingareshared.


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� BuildtechnicalandoperationalcapacityoftargetedassociationsintheforestsectorproductionprocesswhichworkwithSMEs,particularfocusonadvocacyskillsforregulatoryreformanddialogue,andequalaccesstogovernmentdecisionmakersaslargeprivatesectoractorshaveinordertostarttoleveltheplayingfield.

� Supportassociationsandfederationsindevelopinginternalcodesofconductandmonitoringsystemsformembers.

� WorkwithlargeinternationalandnationalbusinessestoidentifyopportunitiestoengageSMEsintheirownsupplychainsandprovideappropriatetrainingandcapacitybuildingforsuppliers,i.e.throughR&Doracorporatefundedtrainingcentre.Alsotoencouragecorporateengagementinnationalprocesses,suchasVPAs,intheirsourcingcountries.

� Outreachtomicro-financeandotherlendinginstitutionsin-countrytoimprovesmallenterprises’accesstofinance(examples–BANRURALandFINCAinLatinAmerica;TREEBANKinThailand),tobetterunderstandrequirements,challengesandopportunitiesforSMEfinanceoptions

Output 3.5: Private sector stakeholders are empowered to self-organize and to participate ingovernanceprocesses.FAOwillsupportMicro,SmallandMediumEnterprises(SMEs)toworktogetherineffectivegroupingstructures which provide technical resources and capacity building, to increase legal operation,marketaccess,andadvocacyforchange. Associationsofprivatesectoractorswillbesupported intheiroutreachandtraining tomembers to increaseengagementof largernumberofbusinesses inincreasinglegalityonnational,regionalandglobalmarkets.Targetedinterventionswillbeneededtostrengthen marginalisedgroups’ bargaining power and participation in decision-making (e.g.stakeholderconsultations).Thereforetheabilitytoself-organizewillbesupported,andenhancedbycollaborating with service providers closer to the informal sector who can identify needs andopportunitiesforassociationwheretheseexist.IllustrativeinterventionsOutput3.5:

� Encouragetheformationofnewassociationsofprivatesectoractorsandofserviceproviders(auditors,creditinstitutions,etc.)orQualityInfrastructure(certificationaccreditationbodies,schememanagers,etc.)wheretherearegapsandwheresustainabilityislikely.

� Promotethebusinesscaseforlegality:providefinancialandtechnicalassistancetoa

federationofSMEstoenablethemtodevelopinstalledcapacityonkeytopicsoflegalityandbusinessdevelopment(efficiency,advocacy,accountability).Thefederationcanthenoffermembersservicestoincreasecapacityofeachindividualbusiness,atreducedratesbasedonscale.


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� Workwithserviceprovidersspecializingintechnicalcapacitybuildingforproduction,particularlyamongSMEs.Trainingcentreshavethecapacitytoinfluencesegmentsofthesectorwhichmaynotbeformallyassociatedwitheachotherandhelptoidentifyopportunitiesandpromotebenefitsofassociationaroundspecificprocessingelements,suchasdryingandprimaryprocessing,whichcancreatecoherenceamonginformalproducersastheyincreasecapacity.

C. TargetAudience

Forthepurposesofthisstrategy,thetargetaudienceforFAOFLEGTworkwithprivatesectorunderPhaseIIIisdividedintotwogroups:“finalbeneficiaries”,intendedasgroupsofactorsuponwhichtheProgramme aims to have an impact on and “direct beneficiaries,” or actors directly funded orsupportedthroughtheProgramme.FinalBeneficiaries:

1. Small and medium forest enterprises (SMEs) encompassing both small-scale forest

resourceoperatorsproducingrawmaterial,andsmallbusinessesengagedinprocessingand placing forest products on themarket. For simplicity, rather than differentiatingbetween SMEs and MSMEs in this document, this grouping also includes micro-enterpriseswhichgenerallyoperateinlocaldomesticmarketsandarelargelyoperatingonthemarginsoflegality.ItshouldbenotedthatwhileattentiontoSMEsmightincludevulnerablesegmentsofsociety(i.e.women,youth,ruralpoorandindigenousgroups),itwillnotbeassumedthatthisiswillautomaticallytakeplace,hencemoretailoredstudiesandsupportforthesesegmentsofsocietyareneeded.

2. Formally established timber businesses, such as large producers and exporters who

mainlyneedinformationandbusinesslinks,asFLEGTislargelyaboutlegaltimberintheglobalmarketplace.BusinesstoBusinessdialoguewillhelpreachthesegroups,largelybyfostering new partnerships with and supporting, among other actors, the EuropeanTimberTradeFederation(ETTF),theGlobalTimberForum(GTF),theInternationalWoodProductsAssociation(IWPA),andATIBT(dependingonitslongertermoutlook).

DirectBeneficiaries:

Pleasenotethattheseentities,insomecases,arealsofinalbeneficiaries.

3. Governmententities ineachcountrywheretheProgrammeoperates, inparticular the

correspondingForestRegulatoryAuthority,wherestrategicPublic-Privatealliancesmaybe built. Government plays a key role in enabling a sound business environment byproviding incentives, ensuring policy/regulatory reform and restoring private sectortrust.TheFAOFLEGTProgrammeintendstobuildonFAO’slongestablishedandstrongrelationship with governments in each country where we operate to promote betterpublic–privatecommunication,dialogue,andpolicies,includingthecreationofalliances


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whereappropriate.Researchmoreovershowsthatincountrieswherepublicpurchasingpoliciesexist,favouringlegalandsustainablewoodproductswhetheratnationalorsub-nationallevel,demandforlegaltimberincreasesacrossallmarketsegments17.Thereforepublic entities are also key target audiences in thiswork as they can serve asmarketdriversanddirectlyinfluencewoodpurchasingdecisionswithinacountry.

4. Private sector organizations18 such as federations, cooperatives, associations or other

entitieswhichgroupactorsofdifferentlevelsaretargeted.ArecentFAOFLEGTStudyinCameroon19 recommends working specifically through federations to influence theprivate sector. Indeed, organizations and groupings of private sector actors, such asfederations and cooperatives, provide tremendous leverage power for accessing agreater number and range of actors, particularly when targeting SMEs in producercountries. In addition, federations and associations which represent large businessinterestsorthestrongvoiceoflocalpopulationswhenunifiedarehighlyvaluableentrypointstogainaccesstoinfluentialmarketactorsinconsumercountriesandassuch,areimportantpartnersforFAOFLEGTPhaseIIIinformationandoutreachforprivatesector.

5. Service providers working alongside the private sector in forestry, particularly those

providingcertificationandverificationservicesforsustainabilityandlegality,trainingandcapacity building, and financial investment. Entities which provide these services, inparticularvoluntarycertificationandtrainingaswellasfinanceandlendingservices,arepowerfulallies forchannelling informationsharingand trainingactivities.ThesewillbetargetedforbuildingpartnershipswithFAOFLEGTtojointlyincreasethebenefittoSMEsandlargerbusinessesofimprovingpractices,increasinglegalityandformalizingtheirroleinthemarket,particularlydomesticandregionalmarkets.

6. CivilSocietyOrganizationswhichfocusonsupportforprivatesectorneeds,particularly

SMEsoperatinginanationalcontext.CSOsaremajorstakeholderinallFLEGTprocessesandhavebeenbroadlysupportiveofFLEGTtodate.Theyneedfurthersupportfortheirfunctionsvis-à-visprivatesectorengagement.

7. Regional environment and trade-based organizations (ASEAN; EGILAT, CCAD; etc.)

oftenhavea strong conveningpowerand institutionalhistory fordialogueon specificFLEGTbasedtopics. Whiletherearenoactivities listedforspecificworkwithregionaltrade based organization FAO often organizes conferences, workshops, technical andoutreachactionsinpartnershipwiththeseorganizations.

17Brack,D.2014.PromotingLegalandSustainableTimber:UsingPublicProcurementPolicy18Aprivatesectororganizationisanon-profitorganizationrepresentingmembersoftheprivatesectorincludingtradeunions,Federations,organizationsofchainsawoperatorsandcharcoalproducers,orothersmallscaleunionsorassociationsrepresentingsmallandmediumsizedenterprisesoperatingexclusivelyintheforestsector.Privatesectororganizationscanproducefordomesticmarketsorexporttoregionaland/orinternationalmarkets.DirectsupporttoprivatecompaniesisnotavailablethroughtheProgramme.19Groutel,E.&Fumey,S.2015.Typologyoftheforestprivatesector’splayer:ChallengesandopportunitiesforsupportingtheprivatesectorwithintheframeworkoftheVoluntaryPartnershipAgreementbetweentheEuropeanUnionandtheRepublicofCameroon.FAO.


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It must be noted that the given the operating structure of the FAO FLEGT Programme and thelimitationstohumanandfinancialresourcesavailable, itwillnotbepossiblefortheProgrammetoworkdirectlywithallofthecategoriesofprivatesectoridentified,butwilldosobasedonprioritiessetbystakeholders ineachcountryandcomplementaritywithEFIandotherpartners (e.g.CIFOR).Nonetheless,aFAOstudy inCameroon20whichassessed thedifferent typesofactors found in theforestprivatesectorprovidesausefulstartingpointforcharacterizingactorsfoundinforestsectorsworldwide and is used here for illustrative purposes. Where necessary, the descriptions will beadapted for different context where the Programme works. The proposed categories of PrivateSectorActorsare:

� Largeinternational/nationalenterprises(LE)� Medium-sizednationalenterprises(ME)� Traders(TR)� Smallenterprises(SE)� Intermediaries(IN)� ArtisansorMicroenterprises(AR)� Smallholderandcommunityforesttimberproducers� Serviceproviders(i.e.technicalsupport;certificationbodies;trainingcentres)

The PMU recognizes thatwhile this strategy presentsmany constraints to producing legal timber,whichwe seek to address to the best of our ability, there exists an entire segment of the timbereconomy that intentionally produce and trade in illegal timber and no measure of dialogue,governance or enforcement will change their operating models. The persistent global traffic inprotectedspeciesofRosewood(i.e.Dalbergianigra),whichisknowntobeillegal,isagoodexampleofthisphenomenon.Thisstrategydoesnotconsiderthisphenomenonaspartofthetargetprivatesector audience, rather addressing these issues falls entirely under law enforcement and anti-corruptionobjectives.

D. RoleofPrivateSectorActors

Thepositionandfunctionofthetargetprivatesectoractorsinthecommercialtimberproductchainispresented,inasimplifiedversion,belowinBOX5.Timberisharvestedbyforestproducers(fromSMEs to larger forest owners/concessions) and may include some level of in-situ processing,particularly in isolated SME-managed forests. While timber may move directly from harvest toprimaryprocessingfacilities,itisimportanttorecognizetheroleofintermediariesatallstepsinthesupply chain, and the possibility that timber and wood products are often stored in yards orrepositoriesforsortingpriortodistribution.

20Groutel,E.&Fumey,S.2015.Typologyoftheforestprivatesector’splayer:ChallengesandopportunitiesforsupportingtheprivatesectorwithintheframeworkoftheVoluntaryPartnershipAgreementbetweentheEuropeanUnionandtheRepublicofCameroon.FAO.


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Next, primary processors (small and large sawmills) filter products and by-products to secondaryprocessors,forexampleinblocksorplanedboards,whereahigherlevelofvalueaddedprocessingtakes place. These products then make their way to domestic or international markets and finalconsumers through buyers, brokers, public entities, construction and furniture companies. Thissupplychainisinfluencedatdifferentpointsbydecisionssuchasgovernmentlegislation,fiscalizationand regulatory frameworks andpublic andprivateprocurementpolicies. Serviceproviders suchascertificationbodies,creditagenciesorcooperationpartnersalsoplayaroleinsupportingprocessorsto reach forest productmarkets, while national federations and in turn, global and regional levelfederationsandassociationsprovidesupporttotheirmembersatallpointsalongthesupplychain.Themessageisthatthesupplychainisnotlinearandtimberflowsthroughdifferentroutestoendusers, at there is potential for illegality at different points in the supply chain. Intermediaries andrepositories are important points for influencing actors’ behaviour along the chain, and have notbeengivensufficientattentioninthepast.Thepurchasersnotedhererepresentthosethatarefoundto have the biggest pull on thewood productmarket at both international and domestic levels –constructionandcontractors,brokersand furnituremanufacturers,andperhapsmostsignificantly,public purchasers. There exists the very real potential to influence supply chain legality throughpublic and private procurement policies, for example, and improving regulatory marketrequirements.


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BOX5.

E. ProgrammeMechanismsandPartnerships:ProgrammeMechanisms.Atthisstage,lessonslearnedtodatethroughinitialstudiesandreviewofPhasesIandIIoftheProgrammeprovidesufficientdirectionforthePMUtostartPhaseIIIworktoengagetheprivatesectorinanumberofways:

� Calls for proposals: to ensure competitive opportunities and to seek additional unknownorganizations. The PMU has introduced a two-lot mechanism for VPA countries to encouragesupport specifically from the sector. A similar approach will likely be used in countries notengagedinVPAs;thiswillbedeterminedbythenationalplatforms.

� Direct Assistance: based on the understanding that private sector organizations have oftendemonstratedlittlecapacity/interesttoseekfundsandimplementprojectsinthe“development”context, the Programme will plan Direct Assistance based on information from Private sector


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studiesaswellasthroughdirectcommunicationwhenPMUstaffare inthefield.Thisapproachwillbeessentialtodrivingprivatesectorworkforward.

� Informationservices:reachouttothePSthroughsectormapping/situationalanalysisandneedsassessments,awareness-raisingworkshops,promotional/informationmaterials (paperandweb-based),events(suchastheWorldForestryCongresstakingplaceinSeptember,2015,theGlobalTimberForum,Fairs,Globalorregionalcoalitions),etc.

� Targetfocalpoints:inadditiontothestandardProgrammemechanismsadoptedinPhasesIandII, focalpointswillbe identifiedtohelporganizeandcoordinate in-countryprivatesectorwork.Thiscouldalsobeacorenetworkofstakeholdersandpractitionersrelatedtotheprivatesectortoprovideuptodateinformationondomesticandregionalmarketsandcommunicatewithkeytargetaudiences.TheIndividual(s)willworkthroughacollaborativerelationship,notdirecthire,andmay be locatedwithin FAO country office teamor a partner organization. In addition, theprivatesectorstrategywillbeincorporatedintotheworkoftheentireFAOFLEGTprogramteamandconsultantsaspartoftheirongoingresponsibilityforprogrammanagement.

Partnerships. FAO FLEGT’s work to support the private sector in Phase III will require closecollaborationwithotherFAOinitiativeswhichworkwithprivatesectoractors,particularlySMEs.Wepropose to implement all threemainProgrammemechanisms for support toprivate sector actorswhere appropriate opportunities arise, and at regional and international level through support tocorrespondingorganizations.Itshouldbenotedthatgreaterdetailabouttheextentofcollaborationwill takeplaceonacase-by-casebasisdependingoncountryandcontextduring therapidcountryassessments.Keypartnersinclude:FAO.FAO’sForestryDepartment, throughtheSocialForestryandForestEconomicsTeamsandtheForestandFarmFacility (FFF),areworking tomobilize investment in small scale forestenterprises(SSFE)andproducergroupsbyencouragingcountriestocreateanenablingenvironment.Concreteactions includemaking forestpolicies, lawsand institutionsmore conducive toSSFEandprovidingrisk mitigation measures to encourage the corporate private sector to invest in the production,processing and value addition of forest products; promoting multi-stakeholder dialogue; andprovidingtechnicalsupportasneeded,includingcapacitybuildingforcommunitygroups,individualsand forest smallholders to improve their organizational, business and entrepreneurial skills todevelop sustainable SSFEs. A regional approach enables interventions to be scaled up acrosscountrieswithinthesameregion,andincreasessustainability.ThisworkishighlycomplementarytoprogrammeneedsparticularlywithregardtoOutput3.1and3.5.FAO’sDecentEmploymentTeam,andcorrespondingworkwiththeUNGreenJobsInitiative incountries likeZambiaandUgandaarealsohighlycomplementarywithregardstotheProgramme’sgenderanddecentworkobjectives.National/Regional/Global Associations and Federations. Through the first two phases of the FAOFLEGT Programme, the PMU built partnerships with European, African, Asian and Latin Americantimber trade federations, syndicates and associations. This strategy will continue to foster thesepartnerships and support to strengthen Business to Business Communication. National/Regional/GlobalAssociationsandFederationswillbetargeted, including,amongotheractors,theEuropean


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TimberTradeFederation,theGlobalTimberForum,UNIFOR,AssociationTechniqueInternationaledesBoisTropicaux(ATIBT)andtheInternationalWoodProductsAssociation.EUFLEGTFacility.TheEuropeanCommissionhas identifiedthecurrentFAOFLEGTProgrammeandEUFLEGTFacility(housedinEFI)asthetwoflagshipProgrammesprovidingassistancetoimplementtheEUFLEGTActionPlan.InAsiaespecially,whereEFIhasalreadycarriedoutprivatesectorstudiesand assistance, there is great potential for collaboration and complementarity between theprogrammes.International agencies: The past phases of the Programme have established collaboration withseveralinternationalagenciesincludingtheUNREDDProgramme,CIFOR,IUCN,ITTO,amongothers.CIFOR in particular has a wealth of experience and knowledge on domesticmarkets and SMEs inAfrica in particular, as aforementioned, and could be further engaged for research-oriented tasks(Output3.1).ITTOinparticularcouldprovideimportantmarketinformationtocomplementcountryassessments.CivilSocietyOrganizations.PastphaseshaveinvolvedsupporttoinstitutionslikeWRI,TropenbosandWWF in research for the Programme. The high calibre of research produced makes theseorganizations important partners for assessing private sector needs in different countries (Output3.1).F. GeographicScopeTheProgrammewilloperateonademand-drivenbasisandafterconsultationwithlocalstakeholdersand will not prescribe priority countries. A nuanced approach will be used based on country-assessments, complementarity with partner initiatives (e.g. EFI’s private sector work in Asia) andnon-VPA country selection. As evidenced inGriffenet al. (2015), there is no common solution foraddressing[privatesectorchallenges]suchasregulatorybarriers,hencetheProgrammewillneedtoevaluateinterventiononacasebycasebasisandwithstakeholders.

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ANNEXI.ProposedInterventionsbytypologyofactor

TypeofActorProposedInterventionsthroughappropriate

ProgrammeMechanismsDesiredOutcome Assumptions

FAOFLEGTPHASE3(VPAandSelectedNon-VPAcountries)

LargeNationalandInternationalBusinesses-throughFederations/TradeAssociationssuchasATIBT;GTF;UNIFORetc.

-WorkwithFederationsandothergroupingsoflargebusinesses(i.e.ATIBT,GTF,IWPA)toensuretechnicalandoperationalcapacitytoprovidetheirmemberswithinformationandtrainingonkeycomponentsofFLEGTAP,traderegulations,duediligenceetc.-WorkwithlargebusinessestoidentifyopportunitiestoengageSMEsintheirsupplychainsandprovideappropriatetrainingandcapacitybuildingforsuppliers,i.e.throughR&Doracorporatefundedtrainingcentre.

Federationsprovidemembers,includinginconsumercountries,accurateinformationonduediligenceandlegalitycomplianceandpresentcohesivemessagesregardingregulatoryreform.FederationsandtheirmembershaveincreasedawarenessoftheimportantroleofSMEsandtakeappropriatemeasuretoprovideassociatedbenefitsthroughouttheirsupplychains.

Federations/TradeAssociationswilldisseminateinformationeffectivelythroughtheirmembersGovernmentsarewillingtoactivelyengagewithFederations/TradeAssociationsandconsiderchange

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Micro,SmallandMediumEnterprises(SMEs),brokersandtraders-throughassociationsrepresentingtheirinterests.

-Supportfederations/cooperativearrangementsofgroupingSMEswhicharewellsituatedtodirectlycontactandimpactalargenumberofbusinessesandother,smallerprivatesectororganizations-ProvidefinancialandtechnicalassistancetoafederationofSMEstoenablethemtodevelopinstalledcapacityonkeytopicsoflegalityandbusinessdevelopment(efficiency,advocacy,accountability).-Workdirectlywithexistinginitiativesthatsupportsmallforestenterprisesatnationallevelandregionalleveliftheyexist,FFF,forestorfarmers’associations,etc.-Encouragetheformationofnewassociationswheretherearegapsandwheresustainabilityislikely;-BuildtechnicalandoperationalcapacityofpriorityassociationsworkingworkwithSMEs,withparticularfocusonadvocacyskillsforregulatoryreformanddialogue.

SMEsareorganizedintoeffectiveassociationswhichrepresentsignificantproportionofthesectorandhavestrongadvocacyandcommunicationskillsAssociationsofSMEsprovideequitablebenefitstotheirmembersandcreateopportunityformarketaccess,trainingandimprovedemploymentconditionsRelationshipsbetweenlargebusinessesandSMEsandbetweenSMEsandGovernmententitiesconcerningforestproductionandcommercearestrong,transparentandproductive.

AssociationsrepresentsignificantproportionofSMEsectorAssociationswilldisseminateinformationeffectivelythroughtheirmembersandprovideservicesequitablyAssociationsaresufficientlyestablishedtocontinuelongterminfluenceGovernmentsarewillingtoactivelyengagewithSMEassociationsandconsiderchange

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ServiceProviders–includingcertification,verification,trainingandlendinginstitutionsasopportunitiesarise

-Outreachtomicro-financeandotherlendinginstitutionsin-countrytoimprovesmallenterprises’accesstofinancetobetterunderstandrequirements,challengesandopportunitiesforSMEfinanceoptions

-Collaborateintrainingandcapacitybuildinginitiativeswithcertificationandverificationserviceproviders,toensurecoherentandconsistentmessagesregardinglegalitycompliance,andtoreachlargerprivatesectoraudience

-Alignmessageswithcertificationandverificationserviceproviderswithregardstoframingrequestsforpublicsectorconsideration,i.e.legalandpolicychanges.

ServiceprovidersareuptodatewithcurrentknowledgeofFLEGTAP,duediligenceandtraderegulationsimpactingtheirregionServiceprovidersmakespecificeffortstoimproveaccesstoinformationandservicesbySMEs

ServiceprovidersaresufficientlywellestablishedintheirfieldtocontinuelongterminfluenceServiceproviders,particularlylendinginstitutions,areinterestedandwillingtoheardemandsfromSMEs

GovernmentEntities–includingregulatorybodyandde-centralizedpublicentities

-IdentifyadvisoryneedsandhireconsultanttoworkwithgovernmenttodevelopappropriatepoliciesandregulatoryreformactionswhichsupportSMEs-One-on-onedialoguebetweenFAOFLEGTandpublicregulatorybodiestoassess:o Relationshiphistoryofinteractionwithprivate

sectorincludingSMEs;o Interestinincreasingorganizeddialoguewith

privatesectororganizations(PSOs);o Anticipatedoutcomesofgovernmentrelating

todialoguewithPSOs,potentialforchange.

Governmentishearingpriorityissuesfromprivatesectorstakeholdersandusinginputstoinformdecisions,particularlyregardingregulatorysystems.GovernmententitiesadoptpolicieswhichincreaseSMEinclusioninlegalandsustainableforestproductsmarketsatlocalanddomesticlevel

Governmentiswillingtostrengthencommunicationandcollaborationwithprivatesector.




STRATEGICCOUNTRYPARTNERS21FORFAOFLEGTPHASE3(China,Brazil,India,OtherTBD).

LargeNationalandInternationalBusinesses-throughFederationssuchasGTF;UNIFOR;ATIBT;etc.FocusoncompanieswhichpurchasefromPriorityCountriesand/orhaveregionalmarketinfluence

-EngagekeyFederationsandothergroupingsoflargebusinessesintrainingopportunitieswithintheregionregardingFLEGTAP,traderegulations,duediligenceetc.-ProvideinformationandopportunitiesfortechnicalexchangewithintheregiontoincreaseSouth-Southlearning-SupportdisseminationofinformationregardingStrategicPartnercountryrequirementsorguidelinesonlegalitywhenoperatinginPriorityCountriesfortheProgramme,toincreasecollaborationandtransparencywithintheregion.

Federationsprovidemembers,includinginconsumercountries,accurateinformationonduediligenceandlegalitycomplianceandpresentcohesivemessagesregardingregulatoryreform.FederationsandtheirmembershaveincreasedawarenessoftheimportantroleofSMEsandtakeappropriatemeasuretoprovideassociatedbenefitsthroughouttheirsupplychains.

Federations/TradeAssociationswilldisseminateinformationeffectivelythroughtheirmembersGovernmentsarewillingtoactivelyengagewithFederations/TradeAssociationsandconsiderchange

21 Countries with significant market influence but not recipients of grant funding.

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ServiceProviders–includingcertification,verification,trainingandlendinginstitutions.FocusonthosewhichprovideservicestoPriorityCountriesand/orhaveregionalinfluenceasopportunitiesarise

-Collaborateinregionalleveltrainingandcapacitybuildinginitiativeswithcertificationandverificationserviceproviders,toensurecoherentandconsistentmessagesregardinglegalitycompliance,andtoreachlargerprivatesectoraudience

-Alignmessageswithcertificationandverificationserviceproviderswithregardstoframingrequestsforpublicsectorconsideration,i.e.legalandpolicychanges.

ServiceprovidersareuptodatewithcurrentknowledgeofFLEGTAP,duediligenceandtraderegulationsimpactingtheirregionServiceprovidersmakespecificeffortstoimproveaccesstoinformationandservicesbySMEs

ServiceprovidersaresufficientlywellestablishedintheirfieldtocontinuelongterminfluenceServiceproviders,particularlylendinginstitutions,areinterestedandwillingtoheardemandsfromSMEs

GovernmentEntities–includingregulatorybodyandde-centralizedpublicentities.FocusonthosewhichinteractwithPriorityCountries

-Asopportunitiesarise,fosterrelationshipsbetweengovernmententitiesofprioritycountriesandstrategicpartnercountriesregardinglegaltradeandtechnicalexchangewithintheregion-EncouragegovernmentpolicieswhichsupportSMEsandlegalpurchasingandimpactinclusionofSMEsinregionalproductmarkets

Governmentishearingpriorityissuesfromprivatesectorstakeholdersandusinginputstoinformdecisions,particularlyregardingregulatorysystems.GovernmententitiesadoptpolicieswhichincreaseSMEinclusioninlegalandsustainableforestproductsmarkets,includingregionalmarkets.

Governmentiswillingtostrengthencommunicationandcollaborationwithprivatesector.

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ANNEX2.Projectssupportingprivatesector(bothdirectandfinalbeneficiaries)fundedtodateinPhasesIandII

Stakeholdergroup Thematicareas Proponent Title ThematiclinkedtoPSsupport

Government LAS,traceabilityandcontrolsystems

OfficeNationalduBois(ONAB)

Appuiàlamiseenplaced’unsystèmedetraçabilitéduboisdel’ONABauBénin

Manuals,guides,normativematerials

Government LAS,traceabilityandcontrolsystems MINFOF

Priseencomptedessystèmesdecertificationsprivéesdelégalitéetdegestionforestièredurable,dansladélivrancedescertificatsdelégalité

Legalpoliciesandregulations

CivilsocietyTransparencyandindependentobservation

WildlifeConservationSociety(WCS)

SEGeF-SuividelagestiondelafaunedanslesconcessionsforestièresduBassinduCongo.


Civilsociety Domesticandregionalmarkets

CERAD CibleretpromouvoirlesdemandesdesciageslégauxsurlesmarchésintérieursdeboisduCameroun



Ministèredel'Environnement,ConservationdelaNatureetTourisme(MECNT-CelluleE)

Formalisationdusuividesprélèvementsetexportationsdeboisd’AfrormosiadanslecadredelaCITEScommephasepréparatoireduSystèmedeVérificationdelaLégalité(SVL)del’APVencoursdenégociationentrelaRDCongoetl’Unioneuropéenne


CivilsocietyLocalcommunitiesandcommunityforestryFLEGTactivities

TropenbosInternationalRDCongo(TBI)

APV-FLEGT:exploitationetcommercelégauxdubois,uneaffairedetousenProvenceOrientale

Needassessmentandtraining


Grouped'EncadrementpourleDéveloppementIntégral(GEDI)

Appuiàlapromotiondel’exploitationartisanalelégaleduboisdanslesDistrictsduPlateau,KwangoetKwilu/ProvincedeBandunduenRDCongo



Ministèredel'EnvironnementetDéveloppementDurable,MEDD

AppuiàlaprogressionduPland’ActionFLEGTenRDCongoparlamiseenplaced’unebasededonnéespourlesuividesprélèvementsetducommercedeP.Elatadanslecadredel’AvisdeCommerceNonPréjudiciableapprouvéparlaCITESenjuin2014


CivilsocietyDomesticandregionalmarkets

TropenbosInternationalRDCongo(TBI)

Descoopérativesdesexploitantsartisanauxauservicedelalégalitéetdelarentabilitééconomiquepourtous


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PrivateSector Privatesectorinitiatives

AssociationTechniqueInternationaldesBoisTropicaux(ATIBT)

OrganizationoftheInternationalForumonthesustainabledevelopmentofthewoodindustryintheCongoBasin.

Information,knowledgeandcooperation

PrivateSectorPrivatesectorinitiatives ATIBT-UNIBOIS

Améliorationdel’implicationdespetitesetmoyennesentreprises/industriesàcapitauxcongolaisdanslamiseenœuvredel’APVsignéentreleurpaysetl’Unioneuropéenneàtraversunrenforcementdecapacitésdeleurassociationprofessionnelle


CivilsocietyDomesticandregionalmarkets CIFOR

AppuiaudéveloppementdesréflexionssurlemarchédomestiqueduboisenCôted’Ivoireavecunsoutiendansl’identificationd’optionsstratégiquesetlapropositiond’unpland’action


Government Domesticandregionalmarkets

MinisteriodeMedioAmbienteydeRecursosNaturales

ProyectodeFortalecimientodelMercadoNacionaldelasMaderasCriollasparalaSustitucióndelasImportacionesdeMaderaenlaRepúblicaDominicana



ECOPAR

ApoyoalaimplementacióndelsistemadecertificaciónforestaldeorigenlegaldelMinisteriodelAmbientedelEcuador,paraproductosforestalesmaderablesdecomunidadesypequeñosproductoresforestalesenelterritorioecuatoriano


Civilsociety Domesticandregionalmarkets

Nature&DevelopmentFoundation,NDF(WWF)

SupportingtheimplementationofthepublicprocurementpolicyontimberandtimberproductsinGhana

Procurementpolicies,domestic

markets

CivilsocietyPrivatesectorinitiatives

DomesticLumberTradersAssociation(DOLTA)

PreparingforFLEGTlicensing;whatSMEsneedstoknowaboutVPA


Government Privatesectorinitiatives

ResourceManagementSupportCentre(RMSC)

ImprovingCapacityDevelopmentofSmalltoMediumScaleTimberProcessingEnterprisestowardsEffectiveVoluntaryPartnershipImplementationinGhana


Civilsociety LAS,traceabilityandcontrolsystems

ForestryTrainingCentreIncorporated(FTCI)

DevelopapilottimberharvestingandforestmonitoringmodelforsmallloggersassociationstoimprovecompliancewiththeforestlawsandagreedforestmanagementprescriptionsinGuyana.


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Government Privatesectorinitiatives

InstitutoNacionaldeConservación,DesarrolloForestal,AreasProtegidasyVidaSilvestre(ICF)

ApoyoalsectorprivadorespectosuparticipaciónenelAVAHonduras


CivilsocietyLAS,traceabilityandcontrolsystems

IndonesiaFurnitureIndustryandHandicraftAssociation(ASMINDO)

BridgingTLAStothesmallfurnitureindustryinIndonesiaLegalpoliciesand

regulations

GovernmentInformationandpre-negotiationphaseofVPA

YayasanBioma(YayasanBiosferManusia)-KutaiKartanegaraDistrictofForestryService(KKDS)

PromotionofSVLKImplementationthroughformalizedtimberproductionfromCommunityForestsinKutaiKartanegaraDistrict,EastKalimantan-Indonesia



MinistryofEnvironmentandForestry

NationalStakeholderWorkshoponSVLKCertificationofCommunalandVillageownedforest(HutanmilikDesa)


PrivatesectorPrivatesectorinitiatives

AssociaçãoMoçambicanadeOperadoresdaMadeira(AMOMA)

FortalecimientodelascapacidadesdelosprincipalesactoresdelmercadodelamaderaenMozambique,enespecialdelsectorprivado,paralaimplementacióndelPlandeAcciónFLEGTenelpaís.



FaunaandFloraInternational

ImprovedLegality,GovernanceandTradeforCommunityandSmallholderTimberinMyanmar


GovernmentTransparencyandindependentobservation

DepartmentofTradeandIndustry(DTI)

EURegulations:AwarenesscampaignandComplianceSolutions Manuals,guides,normativematerials

Civilsociety Privatesectorinitiatives

IDCEnvironment&LivelihoodDevelopmentFoundation

BuildingCapacityforTrainingandAuditingChain-of-CustodySystems


Privatesector Informationandknowledge

AssociationTechniqueInternationaldesBoisTropicaux(ATIBT)

ParticipationofEU/FAO/FLEGTkeystakeholdersintheATIBTForum:StrengtheningTrustinTropicalTimber


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CivilsocietyTransparencyandindependentobservation

REM ToolsforImplementationofForestGovernance Legalpoliciesandregulations

CivilsocietyLAS,traceabilityandcontrolsystems WWF

EnhancingcomplianceandregulationoftimberharvestingandtradeinUganda

Procurementpolicies,domestic

markets


ResearchInstituteforSustainableForestManagement(SFMI)

PreparingSMEsforVNTLASimplementationthroughvoluntarygroupcertificationofintegratedChain-ofCustodyandDueDiligenceSystem



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RationaleforFAOFLEGTProgrammeNon-VPAcountryselection

I. Summaryofresults

AkeylessonfromPhaseIandIIoftheFAOFLEGTProgrammesisthatthereisneedformoretailoredandcoordinatedgovernanceprocessesincountriesthatseektoaddressgovernanceissuesthroughalternativemeasuresoftheFLEGTActionPlan.Assuch,PhaseIIIwillprovidetailoredassistancetocountry-led governance reforms, which involve multiple stakeholders (Outcome Two). Thisdocument hence outlines the rationale, process and methodology behind the PMU’s decision toselect the following countries for non-VPA country intervention. A series of quantitative andqualitativeindicators,outlinedinthemethodology,wereusedtomakethefinalselection.

TheSelectionprocesswasconducted in threesteps.TheProgrammeManagementUnitevaluated109 eligible countries based on nine quantitative indicators that resulted in a list of 51 eligiblecountriesfortheexpertopinionsurvey.ThesurveyresultsarepresentedinTable1;alistofthe16highestrankedcountries.Table2summarizesthePMUrecommendations,afterreviewandinputsbasedonFLEGTProgrammeandotherFAOstaffexperience.

ThePMUalsorecommendsthefollowingcountriesforactivitiesaseithercomplementarytoexistingprogrammesandrecommendedcountriesorascomplementarycountriestoongoingUNREDDprogrammeswherefundsforFLEGTactionsareavailable(Table3).


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II. Process&Methodology

As agreed in the Umbrella Programme Document approved in December 2014 for theimplementationofPhaseIIIoftheFAOForestLawEnforcement,GovernanceandTradeProgramme(2015–2020),agroupofcountriesnotengagedintheVPAprocesswillbeselectedtoreceiveFAOsupport for improving forest governance. These countrieswill be selectedbasedon the followingprocess(Figure1)whichincludesamixtureofquantitativeandqualitativecriteria:

� Step 1: The PMU pre-selected candidate countries based on four proxy criteria andassociated indicatorsestablishedby thePMUandendorsedby theSC in the InceptionPhase(Seefigure2).Tobeselected,atleastoneindicatorineachcriteriahadtoreachthe threshold, which represents the median value of the proxy. For a country to be


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selected, at least one indicator within each criterion had to reach its establishedscreening threshold (median value of the indicator). All selected countries wereshortlistedas‘’candidatecountries’’tothePhaseIIIProgramme.

TABLE4.CriteriaandIndicatorsfornon-VPAcountryselection

Criteria&Indicators Value

Min.

Value

Max.

Threshold

(medianvalue)

Criteria1.ImportanceofForest - Indicator1.1.Extentofforest22(%oflandarea) 1 95 >31- Indicator1.2.Forestrysector(%GDP) 0,02 11,49 >1,11Criteria2.Production - Indicator2.1.GlobalTimberproduction(m3RWE) 6000 752106 >1,118106- Indicator2.2.Woodfuelproduction(m3RWE) 0 308106 >5106Criteria3.Trade - Indicator3.1.Exportsoftimberproducts(m3RWE) 60 36106 >37691- Indicator3.2.ExportsoftimberproductstoEU-28(USD) 0 529106 >0,35106- Indicator3.3.Nationalconsumptionoftimberproducts

(m3RWE)0 212106 >0.71106

Criteria4.Governance - Indicator4.1.CorruptionPerceptionIndex(CPI) 8 91 <40- Indicator4.2.GovernmentEffectiveness -2.21 2.07 <0,49

Sources:- Indicator1.1.FAOFRA,2010- Indicator1.2.FAO,2014.ContributionoftheForestrySectortoNationalEconomies,1990-2011- Indicator2.1.FAOSTAT,2013(Industrialroundwood+Sawnwood+Woodbasedpanels)- Indicator2.2.FAOSTAT,2013(Industrialroundwood+Sawnwood+Woodbasedpanels)- Indicator3.1.FAOSTAT,2013(Industrialroundwood+Sawnwood+Woodbasedpanels)- Indicator3.2.UNCOMTRADE2013(Industrialroundwood+Sawnwood+Veneer+Plywood)- Indicator3.3.FAOSTAT,2013(Production+Import–Export)- Indicator4.1.TransparencyInternational,2014- Indicator4.2.WorldwideGovernanceIndicators(WGI),2013

� Step 2: The PMU conducted an expert assessment through a short perception-based

questionnaire23 (see Section III: Results) on likelihood of impacts in the 51 candidatecountries pre-selected by the PMU in Step One. Experts included FAO regional and sub-regional forestryofficers, external experts fromeachof the three regions, and specializedorganizations includingEFI, ITTO,UNDP,UNODC, INTERPOL,CIFOR,GTF,ATIBT,FSC,PEFC,WRI, FERN, GW and Greenpeace. The 12 highest scores were shortlisted as the “prioritycountries”tobetargetedintheProgramme.

22Forest=Landspanningmorethan0.5hectareswithtreeshigherthan5metersandacanopycoverofmorethan10percent(FRA,2015)23SurveyMonkey®


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� Step3:ThePMUmade,herein,afinalrecommendationtotheSteeringCommitteebasedonqualitativeperformancemeasures,including(1)commitmenttoimproveforestgovernanceand address timber legality; (2) existing demand for support to coordinated multi–stakeholderinitiatives;(3)FAOandProgrammeexperienceinselectedcountry,andinturn,likelihoodofimpact.(SeeSectionIII:Results)

� Step4:ConfirmationofGovernmentinterest.


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III. Results

A. Step 1: Countries pre-selected based on quantitative criteria established by the PMU in theInceptionReport.

Outof the10924countriespre-selectedby thePMUaseligible for funding,51countrieswereshortlistedbythePMUaspossiblecandidatecountriesbasedonthefourstandardproxycriteriaidentifiedbythePMUduringtheinceptionreport(seeSectionII:ProcessandMethods).

Table5:Quantitativescreeningresults

AFRICA AMERICAS ASIAAngola Belize BangladeshBenin Bolivia CambodiaBurkinaFaso Brazil ChinaBurundi Colombia DPRKoreaEgypt Ecuador FijiEthiopia ElSalvador IndiaGuinea Guatemala NepalKenya Mexico PapuaNewGuineaMadagascar Nicaragua PhilippinesMalawi Panama SolomonIslandsMali Paraguay SriLankaMozambique Peru BelarusNiger Suriname UkraineSenegal VenezuelaSierraLeoneSomaliaSudanSwazilandTanzaniaTogoTunisiaUgandaZambiaZimbabwe

24Countriespre-selectedincludeallcountriesinsub-SaharanAfrica,LatinAmerica,theCaribbeanandAsia,inadditiontocountrieseligibleforEUfundingsuchastheUkraine,BelarusandRussia.


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B. Step2:Expertassessmentonlikelihoodofimpactsdeterminesalistofprioritycountriesamongthecandidatecountries.

The PMU approached 50 global experts made up of international governmental organizations, UNentities, theprivate sector, certificationbodies, andNGOswith sevenkeyquestions (seeAnnexOne).Questionsasked ranged fromwhat in their viewwas themagnitudeof timber trafficking toextentoftradewith the EU and VPA countries to government commitment to address forest governance andlegal timber.Organizations representedby theexperts includeFAO,UNREDD, INTERPOL,UNODC, theEuropeanForestInstitute,PEFC,FSC,Fern,ForestTrends,theIDLGroupandGreenpeace.

Notsurprisingly,theexpertssurveyedviewedChinaandBrazilastopprioritiesforpossibleProgrammefunds. Others featuring in the top 12 includeMozambique, Colombia, Peru, Uganda,Mexico, India,Guatemala,Madagascar,TanzaniaandthePhilippines.Figure3showsthetop-rankedcountriesbasedonexpertviews.

Ofnotearetheexpertperceptionsonpoliticalcommitmenttoinvestinforestgovernanceimprovement.Seven countries – Colombia, Philippines, Guatemala, Peru, Uganda, Madagascar and Ecuador – allrankedinthetoptenbytheexpertssurveyedandalsofeaturedinthePMU’sfinalselection.

Asked about the magnitutde of timber trafficking across borders, Zambia, Uganda, Magagascar,Cambodia,Mozambique and Belize also featured in the experts’ “top ten”; these countrieswere allselectedbythePMU.

According to the experts,Mozambique, Colombia and Zambia were viewed as top ten countries byimportanceof timberproduction/processingandMozambique,Zambia,ColombiaandMadagascarbyimportanceofthedomesticmarket.Individualresponsesareillustratedbelow.

Toviewthecompletesurveyresults,pleaseseeAnnex1.


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Figure3.ExpertOpiniononselectionofNon-VPAcountries

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

China

Brazil

Mozam

biqu

eCo

lombia

Peru

Ugand

aMexico

India

Guatem

ala

Madagascar

Tanzania

Philipp

ines

Belarus

Ecuado

rCambo

dia

Zambia

Sene

gal

Kenya

Nicaragua

Bolivia

Papu

aNew

Guine

aSierraLeo

ne

Belize

Nep

al

Ukraine

ElSalvado

rSurin

ame

Togo

Paraguay

Panama

Vene

zuela

Solomon

Island

sBu

rkinaFaso

Mali

Guinea

Ethiop

ia

Niger

Fiji

Sudan

Tunisia

Bu

rund

iMalaw

iAn

gola

Benin

SriLanka

Somalia

Banglade

sh

DPRKo

rea

Swaziland

Selec[onofNonVPACountriesExpertOpinion


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C. Step3:ThePMUrecommendscountriesforselectionbasedonthedataaccruedinStepsOneandTwo,andqualitativeperformancemeasuresindicatedintheMethodology.

Basedontheinformationfromtheexpertsurvey,pastexperiencethroughtheFAOFLEGTprogrammes,andotherFAOledinitiatives,thePMUsubmitsthefollowingrecommendations.

� Prioritycountriesrecommendedformultilateralandsouth-southlearningexchange

Althoughprioritycountries(asperceivedbytheexpertssurveyed)suchasChina,Brazil,MexicoandIndiaaremost likely to influence timberdemandand legality issuesduringthetimelineoftheProgramme,thePMUdidnotselectthecountriesduetothelackofpreviousprogrammaticinterventionanddialogueinthe countries and absence of local platforms. The Programme’sbudgetaryandhumanresourceavailabilitywouldmoreovernotenableus to have meaningful engagement in these countries at a nationallevel. Instead the PMU suggests providing south – south learningopportunities with these countries and promoting dialogue betweenbuyerandsuppliercompaniesinthesupplysidecategoriesforinterventions(fromtheVPAandnon-VPAcountries). Stakeholders from these countries should moreover be included in Programme learningactivities (research, support for understanding legality compliance requirements or participation inlearningevents,workshopsandconferencesrelatedtoFLEGT).

� Countriesrecommendedforinitialstart-upactivityinnon-VPAprocesses

Thefollowingcountrieswererankedhighest intheexpertperceptionsurveyapart fromthe4countriesrecommended exclusively formultilateral interventions. FAO FLEGThasoperatedinallcountriesandagreeswiththeexpertperceptions,based also on programme and FAO experience working with thegovernmentsandstakeholdersinthesecountries.OnlyTanzaniawasidentified higher than the Philippines, however the Tanzaniangovernment, in spite of many initial communications through theprogramme,hasneversubmittedanyrequestsforassistanceandhasbeen generally absent from the FLEGT dialogue apart from twoprojects funded to WWF, which were more focused on forestcertification.FAOFLEGTProgrammeexperienceinthePhilippineshasshowngreaterpromise for amore significant impact in the country,andhencethedecisiontoincludethePhilippinesinthePMU’sfinalselection.

� Complementarycountries


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The following countries are recommended as complementary countries to Colombia and Guatemalainitiativesastheyarelinkedtosignificanttransboundaryforestgovernanceissuesthatcannotberesolvedwithoutjointinterventions.

� Countriesrecommendedforstart-upin2017

The following three countries are recommended for country levelinitiativesstarting in2017.Thedecisiontostallstart-up isbasedonexistinginitiativesalreadyunderwayinthesecountrieswhichwouldsuffer from interruption, capacity needs (a scoping study andstrategywillneedtoproceedintervention)andpoliticalreasons(e.g.Cambodia).

� Countriesrecommendedforcollaborativeactions

The following two countries are recommended as countries for complementary intervention based oncollaborative approaches with the UN REDD programmewithin FAO.The FLEGT programme was solicited to provide complementarysupport to address forest governance issues. There is currently EUFunding available to FAO UN REDD to address REDD+ issues, onecomponent of the funding addresses forest governance and morespecifically ensuring that FLEGT related issues are taken into accountthrough the REDD process. The FAO FLEGT Programmewill not usefinancial resources (apart frompossible travel costs) to provide technical support in these countries asrequestedbyUNREDDandthelocalgovernments.


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Countryleveljustification/observations:

The PMU largely shares the opinion of the experts surveyed with regards to priority countries. Inadditional to the perspectives of the experts, other factors were considered in providing the finalrecommendations:

� Likelihoodofimpact

Althoughpriority countries such asChina,Brazil,Mexico and India aremost likely to influencetimberdemandand legality issuesduring the timelineof theProgramme, thePMUopines thatbecause there is currently no country level programmatic intervention, no local platforms existand no formal dialogue has been established, it is less likely that the Programme can have asignificantimpactinthesecountries.Anadditionalconsiderationisthatinterventionsinanationalprogramme in these countrieswouldbe limited, given their size in relation to the financial andhuman resources available for implementation during the third phase of the Programme. ThePMUdeterminedthattheProgrammewouldachievebettervalueformoneybyinvestingfundsincountrieswhere the forest sector isunderstoodandofamanageablesize.Thesame is true forcountrieslikeAngolawherethemagnitudeoftimbertraffickingissignificant,andBelarus,wheretimberproductionissignificant,buttheProrammeisnotwellestablishedandinterventionwouldnecessitate considerable investment in human resources (for Belarus in particular) for theProgrammetohaveanysignificant impact.ThePMUhencedidnotrecommendthesecountriesfor Programme intervention; instead it suggests providing south – south learning opportunitieswiththesecountriesandpromotingdialoguebetweenbuyerandsuppliercompaniesinthesupplysidecategoriesforinterventions(fromtheVPAandnon-VPAcountries).Stakeholdersfromthesecountries shouldmoreover be included in Programme learning activities (research, support forunderstanding legality compliance requirements or participation in learning events, workshopsandconferencesrelatedtoFLEGT).

� Commitmenttoimproveforestgovernanceandaddresstimberlegality

ThePMUgavesignificantweighttoexpertopinionsandpersonalexperiencesregardingcountrycommitmenttoimproveforestgovernanceandaddresstimberlegalityintheircountryselection(Question 2 of the expert survey), not least becauseover eight years of ProgrammeexperiencewithFLEGThasunderlined theneed forcountry-ledgovernanceprocesses,and theprogrammehas historically operated as demand-driven. With the exception of Mozambique, all countriesselectedbythePMUforinitialstart-upofthenon-VPAsegmentoftheProgrammeareinthetopten countries considered to be the most committed to improving forest governance andaddressingtimberlegalitybytheexpertssurveyed.Ecuador,recommendedforstart-upin2017,alsofeaturesamongthetop10.Belize(complementarycountry)andZambiafeatureamongthetop20countries.ProgrammeandFAOexperience in selectedcountrieswasalsoused togaugecommitment to forest governance processes (see country-level considerations below).Commitmenttoimproveforestgovernanceandaddresstimberlegalityfactoredinthedecisiontoexclude Tanzania from the PMU’s recommended list of selected countries for intervention.


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Naturally,commitmentwasalsoweighedagainstothersignificantfactorssuchas importanceoftimber production in the region,magnitude of timber trafficking and importance of tradewithVPAcountriesandtheEUmarket,particularlyinTanzania’scase.

� Country-level considerations (e.g. existing demand for support to coordinated multi–stakeholder initiatives, existence of forest sector governance strategies, forest sectorconsiderations,etc.)

MozambiqueThe UN ranks Mozambique as the fourth least developed country in the world. The EnvironmentalInvestigationAgency(EIA)estimatesmoreoverthataboutUS$29,172,350 inavoidedtaxmayhavebeenlost toState revenues in2012 fromunlicensedexports toChinaworthUS$130834350.25Major tradedatadiscrepanciesrevealthatin2012Chinesecompaniesimportedbetween189615and215654cubicmetresoftimberthathadbeenillegallyexportedfromMozambique–comprising48percentofChina’simports from the country. A CIFOR study26 confirms these trends, adding that more than 80% ofMozambicantimberexportsaredestinedforChina.

The FAO Forest Department has a history of experienceworking inMozambique through theNationalForest Programme (NFP) Facility. This experience contributed to, among other things: increasing thecapacityoflocalcommunitiesthroughaccesstenurecertificatesandlicencesinadditiontoinformationoncompliance,establishingprivatesectorcommunityagreementsforincreasedserviceprovisionandvalueaddition, remarkable stakeholderparticipation through regional andnational forest forumsandgreaterunderstanding of forest laws and regulations through translation in local languages and district-leveldissemination.27ThisprovidesastrongbasisuponwhichtheFAOFLEGTProgrammecanbuildon.

The Programmemoreover has an established track record of experienceworking inMozambiquewithvarious stakeholders to strengthen forest and wildlife law enforcement (government), monitor illegallogging(civilsociety)andstrengtheningcapacities(privatesector).Ofnoteisa2013studyfundedbytheProgramme and carried out by the University of Eduardo Mondlane (UEM)28 into illegal logging inMozambiquewhich found that at least two-thirds of all logging inMozambique is unlicensed and thatillegal harvesting has increased by 88 percent between 2007 and 2012. According to the study, whilearound 300000metres³ of timberwere licensed for harvesting in 2012, almost 900000metres³wereactually felled. Much of the illegal timber is being consumed in Mozambique's cities, although largevolumeswerealsobeingtracedtoexportmarkets.Inadditiontounlicensedlogging,thestudyfoundthatbreaches of regulations by licensed loggers were also commonplace. This includes logging under-sizedtrees,loggingwithoutarequiredmanagementplanandloggingoutsideconcessionboundaries.

25http://issuu.com/eia1984/docs/eia_first_class_connections26http://www.cifor.org/publications/pdf_files/WPapers/WP122Ekman.pdf27http://www.fao.org/forestry/35548-0e4f2f22081315ce82fd18bbe2c40f306.pdf28AssessmentofHarvestedVolumeandIllegalLogginginMozambicanNaturalForest,AreportoftheFacultyofAgronomyandForestryEngineering,EduardoMondlaneUniversity,October2013


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TheProgrammealsomaintainsacloseworkingrelationshipwithFAOrepresentation,EUDelegationsandthe Government in the country. It has demonstrated experience working with partners (e.g. UNODC,Interpol, TRAFFIC, CIFOR) in the context of transboundary timber flows. Against this backdrop, theProgrammeiswell-positionedtohaveapositiveimpactinacountrycurrentlyatthecentreofasignificantcriminal corridor and at the same time grappling with crippling poverty. Past Programme and FAOexperienceinthecountrycoupledwiththegravityofthesituationpositionsMozambiqueasanimportantcandidateforProgrammefunding,asconfirmedbytheExpertPanelEvaluation.

Colombia

Colombia is knownasoneof theworld’smegadiverse regions, hosting some14percentof theworld’sbiodiversity. Forests cover some 55 percent of its land area29. The Colombian Government identifiesseven main drivers of deforestation: Extension of agricultural and livestock frontier; Illicit crops,particularly coca (used to make cocaine); settlement / displacement of populations; infrastructure;Mining;Removaloftimber(bothlegalandillegalextraction)andwildfires30.

Colombia has made significant commitments to improving forest governance through its PactoIntersectorial por la Madera Legal en Colombia (PIMLC) – led by the Ministry of Environment andSustainableDevelopment(MADS).ThisPactwaslaunchedin2009andcountson72signatorymembers/institutionsfromlocalandnationalgovernment31entitiestoSMEgroups.ThePIMLCservesthefunctionof anational strategy toaddress illegal loggingand is guidingactionswithinall sectors. FAOFLEGThasbeen supporting since 2014 with regards to signatory members identifying and completing theircommitmentsaspartof thenationalplan. Thishasgeneratedmuchnational interestandcommitmentwith regard to illegal practices in forest sector and the need for a level playing field. There is also anexisting national forestry dialogue mechanism (Mesa Forestal) which has been supported through theNFP.Indeed,theparticipationofdiversestakeholdersinthenationalandsub-nationaldialogueplatformswasenhancedthroughpreviousFAOsupport.

Forests are also positioned in the peace dialogue with respect post-conflict land use decisions. TheDialogue isalsomovingaheadwellandwillculminate inanagreementpossiblyduringnext12months.Thereisincreasingawarenessoftheimportanceofforestsinland-useandterritorialdecisionsregardingre-settlement,resourceuseandruraldevelopmentoncepeaceisachieved,giventhatmostmarginalizedand conflict-affected areas and communities are in forested areas of the country. FAO has beensupportingthegovernmentinconjunctionwithEUDtoholdtwohighleveldialoguesontheimportanceofforests in post-conflict landscape and envisions more demand for FAO FLEGT’s role as a key neutraltechnicalsupportproviderinthisregardduringthecomingyear.

29FAO2015 30http://theredddesk.org/countries/colombia31http://theredddesk.org/countries/colombia


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Although a national traceability system does not exist yet, the expectation and need is very high,particularlyduringtheimplementationofPactodeMaderaLegal.TheFAOFLEGTProgrammecanhavearoleheretosupportthedesignandimplementationofamorerobustsystemincountryinthecomingfewyears.

Thereisanevidentgrowingdemandforlegaltimberincountry,andthenationcannotmeetthisdemand.Colombiaalsohasastrongdomestictimbermarket,andwillbeanet-importershortly.

Peru

Peru has high value forest resources combined with high profile exposure of corruption in the forestsector, as evidenced by the recent seizure of largest shipment of tropical wood from the Amazon forsuspected illegality32.Thenewforest legislation(2011)still requiressignificantstakeholdersocialization,andsupportforappropriateassociatedregulationsfollowingreview,asithasnotbeenimplementedandisnotmeetingexpectationofforestsector.Institutionalsupportinforestsectorisessentialrightnowinhighlyconflictiveandoftenconfrontationalenvironment,particularlygiventhefactthatnationalelectionsin July2016will likelyresult inachangeofgovernmentandconsistency in forestgovernancethemes isneeded. The creation of OSINFOR as monitoring body to oversee forest sector was a positive moveprovided for in thenew legislation,now indangerof aweakening roleasdirectorwas fired in January2016 following controversy over the seizure of illegal timber. The de-centralization of newly createdSERFOR (forestry service) is far fromcompletedue to low institutional capacity.Nevertheless, incipienteffortsareunderwaytogeneratemeaningfulstakeholderactiontoaddressingillegalityandcorruptionintheforestsector,includingthedevelopmentofanationalPactodeMaderaLegalinPerú,withsignatoriessimilartothePactoenColombia.

Peru also has one of the highest levels of violence against environmental activists in theworld; recentassassinations include indigenous leadersprotestingagainst illegal logging in areaswhere FAOFLEGT issupporting Indigenous Independent Forest Monitoring (IFM) and Veeduría Forestal (Ucayali and SanMartin).Thereishoweverstrongpotentialforindigenousandcommunityforestmanagement,andtherearealreadygoodexamplesofFSCcertifiedcommunity forests inUcayaliandMadredeDios.Theforestgovernanceagendaisviewedasessentialbythesestakeholders,andoursupportwouldhavesignificantimpact.Inaddition,PeruhasalargeandinfluentialprivatesectorandastrongexportmarkettoUSA,EUand Asia, which creates a demand for companies to meet due diligence requirements to meet thesemarket requirements. The country iswell structured to provide technical support to the private sectorthroughthegovernmententityCITEMaderawhichfocusesoncompetitivenessandproductioncapacity,andanincipientForestExtensionService.TheseentitiescreateaportalforFAOFLEGTtoincreaseaccess

32http://larepublica.pe/impresa/politica/723051-operacion-amazonas-la-historia-de-la-mayor-incautacion-de-madera-de-origen-ilegal


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to legality for private sector actors supplying the domesticmarket, and help tomove SMEs towards aformalstructuremeetinglegalrequirementswithinthesector.

Uganda

Ugandahasaforestcoverofsome3.6millionha,or18percentofthelandarea.33Tropicalforestscover924,000hawhiletheareaoftreeplantationsisaround33,500ha.Treeplantingbytheprivatesectorandlocal communities is being promoted in Uganda on both private and government lands as ameans ofreducing pressure on natural forests, which have witnessed a rapid decline in recent years due touncontrolledharvestingandpressurefromagricultureandhumansettlement.

Most of the timber that is exported fromUganda comprises logs, plywood and other panels (destinedpredominantlyforKenyaandRwanda). Illegal loggingandtradewasrampantduringthe1970sand80s;rigouroflawenforcementlargelyhelpedcounterthesituation.

Uganda“isnotshortofgoodpolicies,plans,lawsandsystems”:thecountryadoptedanewForestPolicyfrom2001,aNationalForestryandTreePlantingActin2003,aNationalForestPlan,initiatedin2000andrevised in 2010, and has restructured governance of the sector to enable decentralization and attractprivatesectorinvestmentsandstakeholderparticipation.34However,ithassufferedweakimplementationdue to the rising andwaning of politicalwill and interest in forest governance reforms, and persistentcorruption.

Of note is the largely artisanal nature of the forestry sector in Uganda. Forestry is an importantcontributortothelivelihoodsofalargepartofthepopulationinUganda,forminganimportantpartoftheinformal sector through the sale of timber, fuelwood, furniture, building poles, crafts, fruits, seedlings,honeyandotherNWFPs.Pit-sawyersprovidethebulkofsawnwood.However,challengesinthesawmillindustry include cheapmobile sawmills operated by low skill personnel, associatedwasteful harvestingtechniques, low recovery rates and low quality timber. As noted in the EUUganda Country Report onTimberTradeflows,althoughUganda’stradewiththeEUandChinaisverysmallanditisanetimporterofwood-basedproducts(muchoftheimportsarelegalandillegaloriginatingfromtheDRCmakingitanimportant country vis a vis the integrity of the VPA process), exporting insignificant quantities, thecountry’sgeopoliticalpositionmaydictateimplementationofotheraspectsoftheFLEGTActionPlan.

FromaFAOperspective,theNFPhadconsiderablesuccessinthecountrywithregardstosupportingandstrengtheningthepartnershipbetweencivilsocietyandtheGovernment,whichworkedverywell.Indeed,stakeholderparticipationincollaborativeforestmanagementimprovedandisbecomingsignificant.Thereis now a strong basis for consultative processes and ownership of decisions in the forest sector uponwhich the FAO FLEGT Programme can build. In addition, the FAO FLEGT Programme has already been

33EU.2014.TimberTradeflowswithin,toandfromEastAfricanCountries–UgandaCountryReport.34 EU.2014.TimberTradeflowswithin,toandfromEastAfricanCountries–UgandaCountryReport.


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operatinginthecountrythroughseveralprojectssincePhaseOne.Themostrecentsupportedaproject,which contributed to revising systems, processes and regulations for timber harvesting and trade;strengthening timber trader associations as entry points for legal trade; and increasing institutionalcollaborationforresponsibletimberprocurement.Inaddition,ithassupportedstudiesontheeconomiccosts of weak law enforcement; a charcoal trade analysis; and participatory mapping of hotspots androutes of illegal timber and charcoal movements. The same study also helped establish a network offunctional community-based monitoring groups and support to a Collaborative Forest Managementagreement,whichseesacivilsocietyorganizationpartnerwiththeNationalForestAuthoritytosupportcommunitiesinundertakingparticipatoryforestresourceassessments.ThemostrecentworkthroughtheFAOFLEGTProgrammehasresulted ina locallyestablishedFLEGTWorkingGroupthat ischairedbythegovernment.Finally,asuccessivephaseof theEUSawlogprogramme is likely tostart inUganda,whichwouldbeauseful complement to theFLEGTprocess.All of theseprojectsprovedextremely successfuland combinedwithpreviousNFPexperience in the country and its geopolitical position, thePMU fullysupportsUgandaasaprioritycountryforintervention.

Guatemala

In2010,Guatemala’sNationalInstituteofForestry(INAB)launchedaPlandeAcciónInstitucionalparalaPrevenciónyReduccióndelaTalaIlegalenGuatemala(PIPRITG),whichformsanationalstrategytotackleillegal logging. FAO FLEGT supported INAB and partners to update and re-launch the strategy in 2015based on new studies on causes and flow of illegal logging, and to generate stakeholder support. Theprocessof consultationhas generatedmuch interest in theplanandapossiblePactodeMadera Legalwithsignatories.

There is considerable interest in technical exchanges and alignment of national forest tracking systemswith Honduras, to generate more transparency and systematize forest sector data collection andreportingwithintheregion.FAOFLEGTissupportingthesetechnicalexchanges.

Thereisalsoastrongdomesticmarket,longhistoryofFSCcertificationincountryandstrongcommunityforestry (in Petén). The history of resettlement following the civil war has resulted in regional forestgovernanceinterestinPeten.FAOFLEGThassupportedinitiativesinPetentolaunchdepartmentalMesadeDialogo, amulti-stakeholder dialogue on forest governance. High level government support for thisand for re-launchof aNationalMesadeDialogo,has vice-presidential backing.Continuedemphasisonforestgovernanceisneededfornewgovernmentwhichwillenterin2016.

Bi-lateralcollaborationwithBelizetomonitorandaddressillegallogginginPeten/ChiquibulboundaryisnowinitsthirdphaseofProgrammefunding.AMoUbetweentheGovernmentsofGuatemalaandBelizetoworkonenvironmentaltrans-boundaryissueswassignedandratifiedbyGuatemalain2015.

FAOhasahistoryofgovernancesupportthroughtheNFPFacility,whichsupported:theestablishmentofthe community forestry alliance (Alianza), actively engaged in the elaboration and implementation ofincentivesprogramme for forest smallholders (PINEP); five sector studies toupdate theNational Forest


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Policy; nine regional multi-stakeholder forestry consultation roundtables (mesas regionales deconcertación forestal); the development of mutually agreed rules and standards related to forestmanagement, forest product use and transport between CONAP, INAB and interested stakeholders;capacity building on topics such as understanding different financial instruments with differentstakeholders, marketing, conflict resolution, administration, forest management and climate change,among other achievements. Currently, the FFF is also active in the country, promoting the activeinvolvementofforestrycommunityorganizationsandINAB,theNationalInstituteofForestry,innationalprocessessuchasREDD+andFLEGT.

Madagascar

Madagascarhasatotallandareaof58millionha,withnaturalforestscoveringsome9.4millionha.Asabiodiversityhotspot,policyandmanagementofforestshaslargelybeeninfluencedbyconservation.35Assuch,SystemsofProtectedAreasofMadagascarareinplacewiththeaimof increasingprotectedareasfrom1.6millionha to6millionha.AForestPolicyandLawwas introduced in1997;a2006Ministerialordermoreovermadetheloggingofrosewoodandebonyforbidden,althoughdemandinChinaespeciallyforrosewood,whichfetchesforaroundUS$45-50000/tonisjustoneexampleofhowconsumerchoicesinAsiaarehavinganeffectonforeststhousandsofkilometresaway.Indeed,theillegalharvestandtradeofprecioushardwoodshasbeenasevereprobleminMadagascar inthepastdecade.“Thescaleof thiscrisis has been so important that the problemhas becomea national political issue andhas promptedwidespread international reactions. The crisis of 2009-2010has receded,but theproblem isnot solvedandremainsverysensitive,”explaintheauthorsofa2014EUstudyonMadagascar.Thisshows,amongother things, that while the policies are in place, law enforcement is weak. As the study pointed out,“legal”woodtradeseemstohaveverylittlemeaninginMadagascar.Accordingtothesamereport,otherkey threats against forest resources are slash and burn cultivation (“tavy”), woodland harvesting forcharcoalmakingandbushfires.

Governanceproblemsarealsoaconstrainttoinclusiveandsustainablegrowth,astheyheightentheriskthattherentsderivedfromconcentratednaturalresourcesbecapturedbyafewindividuals.Forexample,therentsfrompreciouswoodsarecapturedentirelybyanetworkof illegaloperatorsandtheirpoliticalalliesowingtoaprohibitiononexploitationandquasi-absenceof lawenforcement.The involvementofsecurity forces, including senior officials, in the trafficking is often reported in the media, but noprominent actor has been apprehended to date. The judiciary system is incapable of upholding justicebecause the law enforcement side lacks financial and human resources while the traffickers enjoysignificantprotectionthankstotheirfinancialprowess.36

However, national will remains very strong to address these challenges. The Minister of Environmentreached out to the European Union as well as other assistance partners to support actions that will

35EU.2014.MadagascarCountryStudy.36MadagascarSystematicCountryDiagnostic,TheWorldBankGroup,2015


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address illegaltradeinforestproductsandsupporttheministrytocapturerevenueonlegallyproducedandexportedgoods.DuringhisvisittoBrussels,theMinisterexpressedaveryclearinteresttobeinvolvedintheFLEGTprocess.FLEGTisseenasameantoincreasetradeflowoflegaltimberwiththeEU,improveforestgovernanceaswellassendingastrongpoliticalsignalinthecountryandinternationallyabouttheGovernment'scommitmenttocurbillegalloggingandtrade.

The FAO FLEGT Programme’s experience in the country includes a highly successful community forestproject implementedthrougha localNGOParticipationà laGestionde l’Environnement(PARTAGE).Thepilot initiativedevelopeda legalityandverificationsystemforforestproductsintheruralcommunityofDidyontheoutskirtsofAmbohileroforest.Acontractbetweenthelocalforestadministrationandforestcommunitygavewaytothedevelopmentofatrackingsystemandmarkedthedecentralizationofexistingforesttaxationandwood-trackingmechanisms.Establishingarobustlegalityandtraceabilitysystemwasafundamentalsteptowardsultimatelycertifyingallwoodproductsderivingfromthecommunityas“BoisdeDidy”,or“Didy-wood”,andensuringthat theyareproduced legally.Tosupport theprocess, trainingandinformationwasprovidedonsustainabletimberharvesting.Thisprojectwillformthebasisofalargerstudydocumenting“bestpractices”withregardstotimbertrackingsystemsintheregion.

Actions in the frame of the FAO FLEGT Programme could also be an opportunity to develop linkswithactivitiesunderoneofthepriorityobjectivesoftheNational IndicativePlan: ‘’Améliorer lagouvernancedu secteur pour permettre une croissance agricole inclusive et une utilisation durable des ressourcesnaturelles’’.

Philippines

TheUSisthePhilippines’biggesttimbertradingpartnerhowever, inrecentyears,anaverageof25%ofthe total Philippines furniture exports goes to Europe. The Philippine furniture industry, which is 98%categorizedunder SMEs, provides 2.1million indirectworkers nationwide andprovides business to 5.4millioninsupplychain(2011figures).Thelivelihoodsofaround80millionpeoplearehighlydependentonforests37anditsforestindustrysupportsanestimated5millionpeoplethroughoutitssupplychain38.

The Philippines is developing a national Timber Legality Assurance System (TLAS) in response to theASEAN Economic Community Blueprint (2007) committing members to the adoption of a phased-approachtowardsforestcertification.TheForestManagementBureau(FMB)iscurrentlyimplementingatimbertrackinginitiativesupportedbyITTO.TheresultswillguidetheselectionofasystemsuitedforthePhilippines. Thegovernment is alsodevelopingguidelines for thirdparty verification/certificationwhichshouldleadtotheaccreditationofcompaniesandthedevelopmentofacrediblecertificationschemetobesubmittedtoPEFCforendorsement.

37ConservationInternational(http://www.conservation.org/NewsRoom/pressreleases/Pages/The-Worlds-10-Most-Threatened-Forest-Hotspots.aspx)38Pulhin2002(http://pub.iges.or.jp/modules/envirolib/upload/371/attach/03_Philippines.pdf)


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The FAO FLEGT Programme’s support in the country has largely been towards supporting this ASEANcommitment and helping the industry to respond to the growing regulatory requirements in thePhilippines’mainexportmarkets.FAOsupportedthePhilippineWoodProducersAssociation(PWPA)andthe Chamber of Furniture Industries of the Philippines (CFIP), through the Department of Trade andIndustry (DTI), todevelopaGuidebookonRequirements forChain-of-Custody (CoC)SystemsonTimberandWoodproducts&MonitoringCompliancebythePhilippinesTimberAssociations.TheGuidebook isbasedon theexistingnational legal framework, theproposedgovernment legality standardand supplychain control system as well as international CoC standards.While its compliance does not guaranteelegalityorcompliancewithinternationallegalrequirementssuchasEUTRandUSLaceyAct,itshouldhelpbusinesses assess and mitigate risks of sourcing illegal timber and ensure adequate Chain-of-Custodymanagementinresponsetointernationalmarketrequirements.TheassociationsarealsoreflectingontheuseoftheGuidelinesasacodeofconducttomonitormembers.TheFAOalsosupportscapacitybuildingof local CoC trainers and auditors with the intention of making certification more accessible andaffordable to CFIP and PWPA members and providing the trained manpower to roll out theimplementationoftheGuidebook.

ThereareopportunitiestoengagewiththePhilippinesinthenearfuturebyconsolidatingsupporttotheprivate sector leading the response to the changing requirements on internationalmarkets. There areopportunities for theprivatesector tostepupanddevelopvoluntaryorself-governingapproachesthatthegovernmentcouldeventuallyendorseandsupport.

TheMoratoriumonLogginginplacesince2011islikelytobeliftedinthenearfuture.Thischangecouldleadtoarenewedfocusoncommunity-basedforestmanagement(CBFM).Withthisinsight,thecapacityof communities tomanageandharvest resources sustainably couldbe strengthenand thegovernmentsupportedtowardsmovinginthisdirection.Recently,therehasbeensuccessfulparticipatoryformulationof the CBFM Strategic Plan, resulting in the establishment of the “NGO Consortium” supporting CBFM(whichhasbecomethe leading lobby for increasedbudgetandresources forCBFM),enhanced linkageswith financial institutions to strengthen, CBFM implementation, and effective engagement with theASEANSocialForestryNetwork.AdditionalsupportisneededtostrengtheningSFMpoliciesandtechnicalforest management on the ground. Participatory consultations for forest policy formulation (e.g., asdemonstrated in the drafting of the Sustainable Forest Management Act) could strengthen the policyinfrastructureinthePhilippinestobettersupportSFMimplementationontheground.TherehasbeenaneffectiveUN-ledparticipatoryprocess in thedevelopmentof thePhilippineNationalREDD-plusstrategywhichcouldbebuilton.

Panama

Panamahasdemonstratedsignificantinitiativetoimproveforestgovernanceinrecentyears;FAOFLEGThas been supporting country-driven strategies since it first started working in Latin America in 2012.Recently,WWF-MiAmbiente and ITTO launched a regional forest governance Programme in Panama in2014, with FAO FLEGT support. The strategy addresses the critical ecosystem of Darien, one of most


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contiguousandisolatedforestedareas inMeso-America,andwherethereisstrongindigenous(throughtheComarcasystem)andcommunity territorialownership.Thisyear,anational initiative tostrengthenMiAmbientewithWWFandITTOsupport,alignedwiththegovernanceinitiative,willtakeoff.Anationaltraceability system will be developed with support of FAO FLEGT and using South-South learningexchanges.

Thecountryoccupiesanimportantgeopoliticalposition.Notonlydoesitboastsomeoftheworld’smostsignificantbiodiversity,especiallyinDarienandinthecross-borderareaswithColombia,itisatthecentreof narco-traffic from South to Central and North America, making the country very vulnerable tocorruptionandinstabilityofforestcommunities.Panamaisparticularlyimportantforbi-lateralworkwithColombiaandwithregardstoitspositionwithinCentralAmericaasimporterofwoodproducts.Infactitscross-borderecosystemswithColombia,rankedfirstbyexpertswithregardtocountry-levelcommitmentandopportunitiesforsynergies,madePanamaanecessarychoiceforthePMUas impact inColombia isinherentlyaffectedbytheprospectofresponsibleforestgovernanceandimprovedlegalityinPanamaaswell,andviceversa.

ThecurrentclimateofnewministryMiAmbienteismoreovercreatingfertilegroundforforestgovernancesupport,whichwillhavelastingimpactatthispointincountry’shistory.

TheDarienRegionaccountsfor22percentofthecountry’snationalterritoryandasmuchas42.8percentof Panama’s native forests, more than 80 percent of which are located in indigenous territories. TheDarienalsoexperiencesahighlevelofillegallogging(estimatedaround50%)andextremepressurefromexpandingagriculturalfrontiersforcattleranching.InternationalpartnersanddonorssuchasWWF,ITTO,USAID and EC already boast significant experience in the country, and have operated to extend areasunderSustainableForestManagementandwhicharelegallyharvestedintheregion.39

Belize

Belize’sgeopoliticalposition,muchlikePanama,makesthecountryanimportantplayerinstemmingtheillegal flow of timber and narcotics with Guatemala and Mexico. The Maya Mountains cross borderecosystemwith Guatemala is a key strategic area for addressing illegality and the country has had animportantroleasapartnertoprotectthis lastremainingcontiguousforestareainCentralAmerica.Thecountryhassignificantratesofannualdeforestation,approximately2.3percent,which isdoublethatofCentralAmericaasawhole.

TheFAOFLEGTProgrammehasenjoyedstrongpartnershipswithcivil societyandgovernment inBelizesince its inception in these thematic areas. . It continues long-standing support to civil societyorganizations and the local government in border region with the Peten, Guatemala to reduce illegallogging andbuild capacity of communities and institutions tomonitor and control illegal practices. Theprojectshavecontributedtoimprovinglawenforcement,engagingtheJusticeSystemstobuildawareness39http://www.mofa.go.jp/mofaj/files/000023477.pdf


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onenvironmentalcrime,facilitatingtheimplementationofamoreeffectivecommunicationsystemacrossconservationpostsinthecross-borderecosystem,andestablishingabi-nationaldatabasewithGuatemalaonillegalloggingrecords,informationexchangeandillegalityacrosstheborders.

It has also supported the development of a Memorandum of Understanding (MoU) between theGovernmentsofBelizeandGuatemalatoformallycommittoaddressingtrans-boundaryillegalpracticesinenvironmentandNaturalResourceuse.ThisMoUwassignedbytheGovernmentofBelizein2015butstillhasnotbeen ratified,unlikeMoU inGuatemala.Thisputs the trans-boundarywork todateat risk;therefore the PMU considers it essential that programme efforts continue in order to support to thegovernmenttoconsolidatetheworktodate.

Ecuador

AbouthalfofEcuador’slandareaiscoveredbyforests,mainlyprimaryforests.Thecountryisconsideredoneofthemostmega-diverseintheworld.HistoricallyEcuadorhasalsoexperiencedsomeofthehighestdeforestation rates in theworld,mainly due to agricultural expansion and illegal logging, although theannualrateofdeforestationfor2010-2015fellto0.6percentfrom1.5percentbetween1990and200040.The change in land use is one of the sector’smain threats because of the pressure exerted on nativeforests:thebanana,oilandminingboomsareallcaseandpoint.ThethreatoftransboundaryillegaltrafficwithColombiaandPeruistodayespeciallysignificant.EcuadorhenceplaysanimportantroleinregionaleffortstocounterillegaldeforestationthroughouttheAmazonBasin.

Nearly 46 percent of the population lives in poverty, particularly in the Amazon region (where itapproaches60percent).However,theforestrysectorcontributessignificantlytoemployment,providing234,708directandindirect jobs.41 Insecurityofforest landtenure isconsideredoneofthesectorsmainweaknesses;some65percentofnativeforestsareinthehandsofancestralpopulationsandindigenouscommunities andabout50percent areownedby the State, but there are considerableoverlapswhichhaveledtoaseriesofconflicts.

There is currently strong buy-in by theGovernment into strengthening national forest governance andimplementationof legislation.TheMinistryofEnvironment iscurrentlyworkingcloselywithcivilsocietytodesignand implementanational traceabilityand information system for the forest sector– thishasbeen planned for years without commitment to implement, but is now in a very proactive phase ofoperationwhichneedssupporttocontinue.Todatecivilsocietyhasnotbeenstrongandtheseincipientefforts need reinforcement and encouragement to continue, and tomaximize recent developments ingainingvoiceandinfluenceingovernancedecisions.

40FRA,201541http://www.unredd.net/index.php?option=com_docman&task=doc_download&gid=4706&Itemid=53


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Cambodia

ForestcoverinCambodiaisreportedtobe10.36millionhectares(in2010),whichisabout57percentoftotal landarea.Poormanagementandregulatorycontrolof theconcessionsresulted in theCambodianGovernmentdecision to issue a loggingmoratorium in January 2002 for all natural Forest Concessions.The Government has instituted a National Forest Programme 2010–2029 (NFP) to support theestablishment of a policy framework and strategy for sustainablemanagement of Cambodia’s valuableforestresources.AnimportantandencouragingelementofthenationalstrategyisthepromotionoftheCommunityBasedForestManagementapproach.

ThewidespreadallocationofEconomicLandConcessionsacrossthecountry,includinginprotectedareas,hasgeneratedanimportantflowoflegalaswellasillegalconversiontimber.RecentreportsbyEIAhavealso identified Cambodia as a source of as well as corridor for illegal hardwood trade (e.g SiameseRosewood) toVietnamandChina. The joint EFI-FA Timber Flow Study (2014)which revieweddifferenttimbersupplychains,highlightedmanygapsandshortcomings inthecurrentregulatoryframeworkanditsimplementation.ThestudyalsoconfirmedthatCambodiafeedsintoregionalsupplychains(includingillegal flow). Cambodia has not yet expressed interest in engaging in a VPA process despite beingsurrounded by three VPA countries (Vietnam, Lao and Thailand). Direct and indirect engagement withCambodiaremainsimportanttoimprovethelegalityoftimbersuppliedtoitsneighbors.

InCambodia,theProgrammeiscurrentlysupportingtheRegionalCommunityForestryTrainingCenterforAsiaand thePacific (RECOFTC) to strengthen theForestAdministration’s (FA)CommunityForestry (CF)programmewhichhasbeengrowingsteadilysincethelatenineties.Todateatotalof328CFscoveringanareaof296,240hahavesignedagreementswiththeFA.ThisillustratestheincreasedsignificanceofCFasaproviderofsustainablyharvestedtimberandcontributortoruraldevelopment.FAOFLEGTsupportaimsatdemonstratingandsupportingcommercialtimberharvestingbyCF.AnCF-FLEGTTaskForceestablishedbytheFAwillcollectlessonslearnedfromaroundthecountryandFAO-FLEGTprojectpilotsitestoinformanationaldebateonstrengthening thecurrentCFpolicyand legal framework, including the revisionofthe currentCF guidelines. CF seems tobeoneof themost promising entry points for improving forestgovernanceinthecountry.

Zambia Zambia has some fiftymillion hectares of forest land,most ofwhich ismainly state owned. Some tenpercent of the country has been gazetted as forest land. The Zambia Forest Department is mainlyresponsible for management of gazetted natural forests. Zambia Forestry and Forest IndustriesCorporation (ZAFFICO),aparastatalbody is responsible for themanagementof industrialplantationsofexoticspecies.ZAFFICOusedtobepartoftheForestDepartment,butissince1984anindependentbody.The forestry industry, including small, medium-sized and large mills, is of considerable socioeconomic


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importance in Zambia, providing 1.4million jobs, supporting about 60percent of rural households andgeneratingatradevalue(bothdomesticandexport)inexcessofUS$225millionperyear.42

The forestmanagement system in Zambia however is in need ofmodernization. There is little activeforest management in the native forest secotr, even though there are broad policy guidelines.43 Thecountry is facinga significant shortfall in timber supply from itsplantationsdue to lackof regenerationwork.44 The part of formal forest sector that is based on native forests is small, the informal sector ishowever larger with a extensive illegal logging. There is illegal exports of logs of a number of speciesincluding Mukwa Pterocarpus angolensis, Mukula Pterocarpus chrysothrix and rosewood Guibourtiacoleosperma. Duetothe informalnatureofmuchof thenative forestsector there isvery littlereliableinformationaboutthemarketbothintermsoftimberpricesandintermsofthequantitiesoftimberandfromwhereitisbeingharvested.

Therearehoweverpositivesigns.TheRestructuringofForestryDepartment in1997hadgreateffectonforestry in Zambia, includingbringing in greater investment. Thenew forestpolicyof2015designed toenhancethecontributionoftheforestedlandstothewellbeingofthepeopleofZambiawillalsosoonbeenacted into law, showing sound political will and commitment. The Policy encourages the activeparticipationoflocalcommunitiesinthemanagementandutilizationofforestresourcesandatalllevelsof decisionmaking, implementation,monitoring and evaluation. Evident challenges remain – from theneedtodevelopguidelines,codesofpracticeandcertificationtoimprovinghealthandsafetystandards.However,theProgrammehasastrongbasisonwhichtobuild.FAOhasanimportantpastworkingwithstakeholders to improve forest governance through the National Forest Programme (NFP) Facility. TheNFPFacility’ssupport toZambia'sNationalForestProgrammeachieved increasingtrust,confidenceandeffectivepartnershipbetweenGovernmentandcivilsociety,animportantfoundationfortheProgrammetobuildupon.TheNFP’ssuccessor,theForestandFarmFacility,iscontinuingthisworkinfourprovinces:Southern, Lusaka, Central and Copperbelt, influencing legal, policy and institutional reforms to supportForest and FarmProducerOrganizations (FFPOs),workingwith forest-dependent communities to assistthemtoaddvaluetoforestproductsthatcanearnthemmoney,andthroughcapacityandskillbuilding.

The joint UN “Green Jobs Programme” is also active in the territory and an important part of FAOProgramme activities. Through its value-chain approach to improving livelihoods, the Programme isworking to address the informal sector, youthunemployment andgenderdisparities along the forestryvalue chain, particularly through the building construction sector, which has played a central role inZambia’sgrowth inrecentyearsmakingup21.1percentof theeconomy.TheProgramme issupportingsustainable MSMEs along the building construction value chain to become more productive andcompetitive, to grow and create green and decent jobs and improve the safety and health services ofworkers.ThisisaparticularlyimportantplatformonwhichtobuildinlightoftheFAOFLEGTProgramme’scommitmentspovertyalleviation,particularlyforwomen,youthandminorities.By2017,itaimstocreate

42http://foris.fao.org/fff/api/file/54d0eb7976c3d9cb12633221/9bf7464e-116a-4d81-97b0-e6fe843ff67b.pdf;www.unredd.net/index.php?option=com_docman&view=download&alias=14059-benefits-of-forest-ecosystems-in-zambia-and-the-role-of-redd-in-a-green-economy-transformation&category_slug=forest-ecosystem-valuation-and-economics&Itemid=134;43ZambiaGreenJobsReport44Ibid.


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5000 decent and new green jobs, improve the quality of existing 2000 jobs, increase enterpriseperformance,raisehouseholdannualincomeoffamiliesdependantonthebuildingconstructionindustryand cause a positive attitude change towards green business, among other goals. The FAO FLEGTProgrammeisthuswellpositionedtocomplementexistingFAOandUNinitiativesinZambia.


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ANNEX1.Questionsinexpertsurvey,including“Topten”answersaccordingtoexpertperceptions

8.3

8.1

7.7

7.5

7.3

7.3

7.2

7 7

6.5

COLO

MBIA

PERU

GUAT

EMALA

ECUAD

OR

CHINA

MOZA

MBIQUE

BRAZ

IL

BELARU

S

TANZA

NIA

MEXICO

Q1:HOWDOYOUEVALUATETHEOPPORTUNITIESFORSYNERGIES?

7.4

7 6.8

6.5

6.3

6.2

6.1

5.7

5.7

5.5

COLO

MBIA

MEXICO

BRAZ

IL

PHILIPPINES

GUAT

EMALA

PERU

UGA

NDA

CHINA

MAD

AGAS

CAR

ECUAD

OR

Q2:HOWDOYOUEVALUATETHEPOLITICALCOMMITMENTTOINVESTINFORESTGOVERNANCE

IMPROVEMENT?


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9.1

8.5

8.5

8.3

8.2

7.9

7.9

7.6

7.4

7.4

CHINA

ANGO

LA

ZAMBIA

UGA

NDA

MAD

AGAS

CAR

CAMBO

DIA

MOZA

MBIQUE

BELIZE

INDIA

SENEG

AL

Q3:WHATISTHEMAGNITUDEOFTIMBERTRAFFICKINGACROSSTHEBORDERS?

7 7 6.8

6 5.8

5.6

5.2

5.2

5 4.8

GUAT

EMALA

MEXICO

BRAZ

IL

COLO

MBIA

PHILIPPINES

CHINA

FIJI

UKR

AINE

SURINAM

E

BELARU

S

Q4:HOWDOYOUEVALUATETHEPOTENTIALFORPRIVATECERTIFICATION?


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10

10

7.8

7.8

7.5

7.3

7 7 7 7

NIGER

SENEG

AL

MOZA

MBIQUE

ZAMBIA

INDIA

BRAZ

IL

BANGL

ADESH

CHINA

COLO

MBIA

MAD

AGAS

CAR

Q5:HOWIMPORTANTISTHEDOMESTICMARKET?

10

9.5

8.5

7 7 7 7

6 6 5.7

BELARU

S

CHINA

BRAZ

IL

INDIA

MEXICO

MOZA

MBIQUE

SWAZ

ILAN

D

COLO

MBIA

ZAMBIA

TANZA

NIA

Q6:HOWIMPORTANTISTHETIMBERPRODUCTION/PROCESSING?


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10

8 8 7.8

7 7 7

8

6.4

6.1

CHINA

PHILIPPINES

BELARU

S

UKR

AINE

BRAZ

IL

INDIA

PAPU

ANEW

GUINEA

CAMBO

DIA

SOLO

MONISLANDS

PERU

Q7:HOWIMPORTANTISTHETIMBERTRADEWITHNEIGHBORINGVPACOUNTRIESORWITH

THEEUMARKET?

Annex2.NonVPACountriesreport

ANNEX2.SummaryTableofkeydeterminingfactorsforselectionofNON-VPACountries

Country Forestarea(FRA2015)

KeyNotesaboutforestryandforestsector PreviousExperienceorFAO/UNPartnerships

Belize 1.36millionhectares;59.9%oflandarea

� GeopoliticalrelevanceforthefightagainstillegalflowoftimberandnarcoticstowardsGuatemalaandMexicoandtoprotectthelastremainingcontiguousforestareaofcentralAmerica

� Significantrateofdeforestation,doublecomparedtotheaverageforCentralAmerica

� MoUbetweenBelizeandGuatemalatoaddresstrans-boundaryillegalpracticespendingratificationinGuatemala,itdemandsnottolosepoliticalmomentum

� FAOFLEGTlong-standingsupporttocivilsocietyorganizationsinborderareaswithGuatemalatoreduceillegalloggingandmonitorillegalitiesandtopromotebi-lateralcooperationinforestlawenforcementandmonitoringillegalactivities

� FFF;FAODecentEmploymentDivision

Cambodia 9.46millionhectares;53.6%oftotallandarea

� Poormanagementandregulatorycontrolledthegovernmenttoimposeamoratoriumonloggingin2002onallnaturalforestconcessions

� GovernmentlaunchedaNationalForestProgramme2010-2029,keytothestrategyisthepromotionofcommunity-basedforestmanagementapproach

� EIAidentifiedCambodiaasasourceandimportantcorridorforillegaltradeinhardwoodtoVietnamandChina

� CambodiaborderswiththreeVPACountries(Vietnam,LaoandThailand),itsengagementisthuscrucialtoimprovelegalityoftimbersuppliedtoitsneighbouringcountries.

� FAOFLEGTissupportingtheCambodiaForestryAdministration’s(FA)CommunityForestry(CF)Programme,covering328CFsforatotalareaof296,240ha,withaparticularfocusondemonstratingviabilityofcommercialtimberharvestingbyCFs.

� ACF-FLEGTTaskForceestablishedbytheFAisworkingtogatherlessonslearnedfromtheProgrammetoinformanationaldebateonimprovingforestgovernancebystrengtheningtheroleandpolicy,legalframeworkandoperationofCFsintheCountry


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Colombia 58.5millionhectares;52.7%oflandarea

� Oneofthemostbiodiversecountryintheworld� Extentofforestcover(almost53%ofthecountry)� Stronggovernmentcommitment,ledbytheMinistryof

EnvironmentandSustainableDevelopmenttopromotebetterforestgovernancethroughthePactoIntersectorialporlaMaderaLegalenColombia.ThepactpromotescooperationofinstitutionswithSMEstoaddressillegallogging

� NationalForestryDialogueMechanism(MesaForestal)inplaceandworking

� Relevanceofforestuseinpost-conflictland-usemanagementdecisions

� Projectedgrowingdemandforlegaltimberinthecomingyearswillrequirethedefinitionofanationaltraceabilitysystem

� FAOFLEGTsupporttotheNationalPlanagainstIllegalLoggingsince2014

� FAOandtheEUpromotedtwohigh-leveldialoguesonpost-conflictlandscapemanagement

� MoreneedforFAOFLEGTneutralfacilitatorroleinpost-conflictrestoration

Ecuador 12.55millionhectares;50.5%oflandarea

� HalfofEcuadorlandiscoveredbyprimaryforest,oneofthemostmega-diversecountryintheworld.

� Countryexperiencedsomeofthehighestdeforestationratesintheworld,duetoland-usechange(cashcrops,oil,mining)

� ImportantroleinregionaleffortstocounterillegaldeforestationintheAmazonBasin

� Renewedgovernmentinteresttodesignandimplementanationaltraceabilityandinformationsystemfortheforestsector

� Conflictsduetoinsecurityofforestlandtenurecoupledwiththefactthat65%ofnativeforestareaisunderthecontrolofancestralpopulationsandindigenouscommunities,whichoverlapswithGovernment-ownedareas

� Civilsocietyonlyrecentlyisbecomingvocalaboutgoodforestmanagementespeciallyinpolicyanddecision-


97

makingfora,requiringsustainedefforttokeepupthemomentum

Guatemala 3.54millionhectares;33%oflandarea

� High-levelinstitutionalandgovernmentcommitmenttowardsbetterforestgovernance

� Anationalstrategytotackleillegalloggingisalreadyestablished(PIPRITG)

� ConsiderableinteresttocreatesynergieswithnearbyHonduraswithregardstotechnicalexchangesandtrackingsystemforbettertransparencyanddatacollection

� Soliddomesticmarketwithlonghistoryofforestandproductscertificationschemes,andstrongcommunityforestrytradition(Peténarea)

� Continuedgovernmentemphasisonforestgovernanceandsustainableuseofforestsalsointhecontextofpost-warresettlement

� Recentre-launchofaNationalMesadeDialogo,withFAOFLEGTsupport

� Governmentbackedbi-lateralcooperationwithBelizetoaddresstrans-boundaryissues,especiallyinforestcoveredareas

� FAONFPFacilitysupportedtheestablishmentofcommunityforestryalliance,facilitatedmulti-stakeholderconsultationsandpolicydialogueandtechnicalcapacitybuilding

� FAOFFFisalsoactiveinthecountrytopromotetheinvolvementofcommunityforestryorganizationsinREDD+andFLEGTactivities

Madagascar 12.47millionhectares;21.4%oflandareaofwhich9.4millionhectaresofnaturalforests

� Conservativeapproachtowardsbiodiversityandforestmanagement

� Longforestpolicyhistory(since1997)� Illegalharvestandtradeofprecioushardwoods

recognizedasanationalpoliticalissue� Weaklawenforcement,lossofrevenuesfromillegal

loggingandtrade� Land-useassociatedrisks:slash/burncultivation,

woodlandharvestingforcharcoalproduction� Strongnationalwilltowardsbetterforestgovernanceand

management

� FAOFLEGTPartageprojecttodeveloplegalityandverificationsystemsforforestproductsinDidy

� AjointeffortbetweenthelocaladministrationandlocalforestrycommunityledtothedevelopmentofatrackingsystemunderwayforDidy-forestproducts“BoisdeDidy”


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Mozambique 38millionhectares;48.2%oflandarea

� Volumeofunrecordedtradeintimberandconsequentiallossinrevenue

� Stronggovernmentsupporttofightillegaltimber� Extentofunregulatedlogging� Receptiveandknowledgeablelocalcommunities(access

rightsandtenureissues,forestlawsandregulations,compliance)

� Mobilizedprivatesectorthroughcommunityagreements� Remarkablestakeholders’participationinnationaland

regionalforestforums� Strategicgeographicalpositiononimportantillegal

timberroute

� FAOForestryNationalForestProgramFacility

� FAOFLEGTProgrammesupporttogovernment(forestandwildlifelawenforcement),civilsociety(monitoringillegallogging)andprivatesector(capacitybuilding)

� CooperationwithUNODC,Interpol,TRAFFICandCIFORontransboundarytimberflows

Panama 4.6millionhectares;62%oflandarea

� Strategicgeographicallocationandimportanceforbiodiversityandinthefightagainstnarco-trafficfromSouthtoNorth-America(withconsequentialcorruptionandinstabilityofforestcommunities)

� StrategicvicinitywithColombiaandstrongbilateraltiesprovideopportunitiesforsynergiesandcooperationtopromoteresponsibleforestgovernanceandlegalityinbothCountries

� Netimporterofwoodproducts

� FAOFLEGTsupporttotothelaunchofaregionalforestgovernanceProgramme,throughWWF-MiAmbienteandITTOinDarien(42.8%ofPanamanativeforestarea)andthedevelopmentofanationaltraceabilitysystem

� WWF,ITTO,USAID,ECpresenceinthecountrytoextendareasundersustainableforestmanagement

Peru 74millionhectares;57.8%oflandarea

� High-valueforestresources� Increasingsignificanceofillegaltimbertrade,especially

associatedwithrampantcorruption� Newforestlegislation(2011)butstrongneedfor

strengtheninginstitutionalcapacityandorganizationstoenforce

� Remarkableviolenceagainstenvironmentalactivists� Strongpotentialandactualroleofindigenousgroupsin

demandingbetterforestgovernanceandmanagementpractices

� Largeandinfluentialprivatesectoradvocatingforbettercompliancewithinternationalmarketstandards,as

� FAOFLEGTissupportingIndigenousIndependentForestMonitoring(VerduriaForestal)


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demandfromexportmarkets(US,EU,Asia)raisesPhilippines 8million

hectares;27%oflandarea

� GrowingimportanceoftheEUmarketfordomesticfurnitureindustry

� 98%furnitureindustrymadeupofSMEs(5.4millionemployedinthesupplychain

� DevelopingTLASwithstrongfocusoncertificationandthirdpartyverification

� Governmentcurrentlytryingtoimplementatimbertrackingsystem

� DespiteaMoratoriumonLoggingsince2011,thereisgrowingrecognitionofimportanceofcommunity-basedforestrythatwillrequireextensivecapacitydevelopmentandtrainingtoharvestresourcessustainably

� Setupofan“NGOConsortium”topromoteCommunity-basedforestmanagementandadvocateforaCBFMstrategicPlan

� FAOFLEGTin-countrylong-termsupporttoprivatesectordevelopmentandcompliancetolegalitystandardsandsupplychaincontrolsystem(ChainofCustodymanagement)inresponsetointernationalmarketrequests

� UN-ledparticipatoryprocessforthedevelopmentofthenationalREDD+strategy

Uganda 2millionhectares;10.4%oflandarea

� Forestplantationspromotedtoreducepressureonnaturalforests

� Rampantillegalloggingandtimbertradeinthe70sand80s

� Solid“corpus“offorestrylawsandregulationsbutdiscontinuoussupporttoenforcementduetoalternategovernmentinterestinforestgovernanceandpersistentcorruption

� Importanceofforestproductsforthelivelihoodsofpeopleemployedintheartisanalsector

� KeygeographicallocationonillegaltimbertraderoutetoDRC(aVPAcountry)

� Growingcollaborativeparticipationofcivilsocietyinforestmanagement

� Cleargovernmentcommitmenttopromotebetterforestgovernancethroughthedevelopmentofresponsibletimberprocurementpolicies

� FAONFPhadgreatsuccessinstrengtheningpartnershipbetweencivilsocietyandgovernment

� MostrecentFAOFLEGT-fundedprojectswereaimedatrevisingsystems,processesandregulationfortimberharvestingandtrade,strengtheningtimberassociationsandpromoteinstitutionalcollaborationforresponsibletimberprocurement,studyingtheeconomiccostsofweaklawenforcementandillegaltimberroutesandcharcoaltrademovements.

� FAOFLEGTalsofacilitatedtheestablishmentofaFLEGTWorkingGroupchairedbythegovernment

� AcontinuationoftheEUSawlogProgrammeisalsoenvisionedforthe


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countryZambia 49million

hectares;65.4%oflandarea

� 10%oflandcoveredbyforests� Forestryindustry(large,mediumandsmall-scalemills)

provides1.1millionjobs(90%informalsector),generating225millionUSD/year(domesticandexport)

� Forestryrelatedillegalandinformalbusinessisthriving,especiallylinkedtologgingactivitiesinthenativeforests

� Governmentisdisplayingsoundpoliticalwillandcommitmenttobetterusenaturalresourcesandtoattractgreaterinvestmentsintheforestsector,throughthedesignofanew(2015)forestpolicy

� Theenactmentofthisnewpolicywillrequireextensivecapacitybuildingandnormativeinterventionstoensureproperimplementationandmonitoring

� FAOFFFProgrammeisworkingin4provinces(Southern,Lusaka,CentralandCopperbelt)toinfluencelegalpolicyandinstitutionalreformstosupportForestandFarmProducerOrganizationsandtocreatenewlivelihoodopportunities

� TheUNGreenJobsisworkinginthecountryforestryvalue-chain,targetingtheinformalsector,toaddressyouthunemployment,reducegenderinequalitiestoincreaseincomeopportunities.

� FAODecentEmployment

Annex3.Programmelogicalframework

Annex3.LogicalFramework

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Annex3.Programmelogicalframework

Mission:Tackleillegallogging,promotetradeinlegaltimberproductsandultimatelycontributetosustainableforestmanagement(SFM)andpovertyreduction.

ResultsChain Indicators Baseline Target Meansofverification(MOV)

Assumptions

Impact

Forestsectorstakeholdersachieveimprovedforestgovernance,legalityoftimberproducedandtradedondomestic,regionalandinternationalmarkets,andmoreequitableforestmanagementsystems

� Nationallyowned,transparent,informed,andinclusiveforestgovernanceprocesses

� Inclusiveandsociallyequitableforestpoliciesandlegislation

� Volumeandvaluetrackingdataoflegaltimberin(a)nationalmarketand(b)exportedinternationallyshowconsistentincreaseby2018

� Programmedeliversenhancedgenderandvulnerablegroupsmainstreaminginpoliciesandlegalreforms

� BaselineinVPAcountrieswillbebasedoncollaborativeeffortswithFLEGTpartners

� Baselineinnon-VPAcountrieswillbeestablishedafterselectionandstart-upofcountrylevelprogrammes,basedonFAO–PROFORguidelinesforForestGovernanceassessment

� Analysisandsummaryoffunded-projectreports,fieldvisitsbyprogrammestaff,assessmentofotherrelevant(non-programme)reportsandstudiescombinedwithuseof‘Dephi’andsimilartechniquesurveys

� ITTOMarketMonitorandothersimilarsourcesofdata

� Projectreporting(especiallyfinalreport)frameworkstoincludespecificresponsesontheseprogrammeleveltargets

� PartnergovernmentsaregenuinelycommittedtoFLEGTprinciplesincludinglong-termgoalofSFM

� Benefitsofcompliancearevisibleandsustained;penaltiesofnon-complianceoutweighpotentialshort-termgainsfromnon-compliance

� TransactioncostsdonotdisadvantageSMEsandsimilar,morefragile,groups

� Statisticalinformationisaccurateandreliable


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Assumptions

Outcome1

VoluntaryPartnershipAgreementscontributetoimprovedforestsectorgovernanceandtimberlegalityondomesticandinternationalmarkets

� NumberofcountrieshavingsignedVPAsanddevelopedthe5functionalelementsofTLAS(LD,SupplyChainControlSystem,Verificationmechanism,LicensingandSystemAuditing)

� NumberofcountriesexportingFLEGTlicensed

timber� Volumeoflegallylicensedtimberonthemarket

throughVPAprocesses� Stakeholdersindicateanimprovedknowledgeofthe

VPAprocessandanincreaseoftechnicalknowledgeandskillsforengaginginlegaland/orsustainableforestmanagement

� 0� TBC

� TBD� Morethan0� Improvement

demonstratedinatleast75%ofVPAcountries

� EU,FLEGTpartnerandFAOprojectreports.

� CountryLAS

statisticsdatabaseinformationisreliable,accurateandup-to-date

� AmalgamatedandanalyzeddatafromITTOandothermarketmonitoringandreviewinformationsources

� Stakeholders’pre-andpost-workshopsevaluations,disaggregatedbygenderandyouthgroups

� Focusgroupsurveys

� FLEGTbringsnational-levelpoliticalandeconomicgainsthatoutweighnational-levelcosts

� RelevantGovernmentInstitutionseffectivelyengageinallformalstepsoftheVPAprocess


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Assumptions

Output1.1

StakeholdersunderstandtheirrespectiverolesintheVPAprocess

� VPArelatednegotiationorimplementationstructures,ToRs,plansandreportsreflectadequatestakeholderrepresentationandparticipation

� Nationalprioritiesidentified,showingattentiontoinclusivity,transparency,andparticipatorymechanisms

� Nationalandregionalmeetingsondemandfromstakeholders

� EU,FLEGTPartnersandFAOprojectreports

� Evaluationandmonitoringreportsincludingvalidatedfeedbackfromstakeholdermeetings

� Improvedunderstandingoftheprocessandindividualrolesisthefirststeptoincreasedparticipationandimplementationoftheprocess

Output1.2

Stakeholdershavetheknowledge,skillsandtechnicalinformationneededtofulfiltheirroleintheVPAprocess

� Numberofstakeholdercapacityneedsassessmentstoidentifytrainingneedsproduced

� Numberandcompositionofworkshopsortrainingevents,basedonneedsassessmentandorganizedtodevelopcapacitiesofstakeholdergroupstoengageinlegaland/orsustainableforestmanagementplanning,decision-makingandimplementation

� 10needsassessmentsconducted

� Basedonstakeholderdemandandneedsassessmentresults

� Increasedshareofvulnerablestakeholdersengaged

� Trainingneedsassessmentskillsauditrecords

� Trainingeventcompositionandcontent,levelanddurationrecordsplusnumbersattendingandtheirbackground

� Pre-andpost-trainingcapacityassessments

� Skillstrainingoninternationalbeststandardswillimprovetheabilityofstakeholderstoeffectivelyengageandimprovegovernanceandenhancequantitylegality-assuredtimberoninternationalmarkets


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Assumptions

Output1.3

Priorityactivitiesthatsupportthenegotiation,developmentandimplementationoftheVPAsareimplemented

� NumberofProgrammegrantsgroundedintheVPAroadmapsand/orJICrecommendations

� NumberofplatformsforFLEGTinterestgroups(civilsociety/SMEs/Indigenousgroups)aimingforcoordinatedengagementinplanninganddecision-makingprocessesoperatingeffectively

� RecordsofGovernmentengagementinrightsandtenureissues,aswellasbarrierstoparticipatorymanagementresolutionactions,andparallelassessmentoftargetgroupsviewsandopinionsonitssufficiency

� TBC� TBC

� 90%ofgrants� 6platforms

supportedbytheProgrammearerecordedandactiveinformalGovernanceprocesses

� Improvementinatleast75%ofVPAcountries

� Contributiontoroadmaps/annualplansandJICmeetingrecommendationsjudgedthroughannualreports

� Projectreports,� Focusgroupsurveys

� StrongstakeholderparticipationandinputtotheVPAprocessarerequiredforsuccessful,permanentimprovementsingovernanceandlegality

Output1.4

Innovative,effectiveandinclusivelawenforcementprocessesaredevelopedandtested

� Effectiveandbroadcoordinationwithpublicsectorbodiesotherthanforestrydemonstrated

� Numberofkeylegalorregulatoryreformsproposedandenactedbasedonprogrammefundedsupporttomulti-stakeholderLD,TLASandIMdevelopmentprocessesorgrants

� EvidenceofProgrammesupporttotacklingcross-borderillegaltradeandtoimprovinglegalityverificationofimportedtimbersources(bothdevelopmentandtesting/piloting)

� TBC

� Improvedcoordinationdemonstratedin6VPAcountries

� Atleast3bi-national

orregionalstrategiesvalidated

� Extendedfocusgroupssurveys(includingstakeholdersfromothersectors)

� CriticalreviewofVPAdraft

� AnalysedresultsfrompilottestsofTLASandreviewofupdatedVPAdrafts

� Bi-national/regionalagreementsdevelopedandappliedeffectively

� Successfullawenforcementprocessesareadequatetocomplementimprovedgovernanceprocesses


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Assumptions

Outcome2

InitiativesthatsupportlegalproductionandconsumptionoftimberandbetterforestsectorgovernanceincountriesthatarenotengagedintheVPAprocessarestrengthened

� Numberofprogrammegrantsresultinginsignificantadvancementtowardlegaltimberproduction(includingpolicies,systems/schemesandlegalframeworksrevisedtopromotelegalproduction,tradeandconsumptionoftimber)

� Localstakeholdersconfirmtheirperceptionthat

forestsectorgovernanceisonapositivetrend� Awarenessoflegislation,policies,regulations,rights

andresponsibilitiesimproved,inparticularamongvulnerablegroups

� TBC� TBC

� Tenpilotcountries� Demonstrated

improvementin75%ofcountriesengaged

� Increasedawareness

andinclusivitydemonstratedin10countries

� IndependentevaluationandProgrammemonitoringactions

� Useoflocal

perceptionsurveyswithkeystakeholdersfocusgroups

� Events/projectsreports

� (Groupsarecomposedofatleast30%ofwomenandyouth,andoverall50%ofsmallholders(SMEs,CFOs…)

� Qualitativeassessmentsofevents&focusgroupsurveys

� Improvedgovernanceandmoreequitableforestmanagementsystemswillleadtopovertyreductionthroughintelligentdesignandappropriateregulation


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Assumptions

Output2.1

Agovernancestrategyisagreedthroughamulti-stakeholderprocess

� NumberofnationaleventssupportedbytheProgrammewhereFLEGT-relatedexperiencehasbeenshared

� InclusiveMulti-stakeholderassessment,developmentandrevisionprocessesofgovernancestrategiesdemonstratedinengagedcountries

� 0� TBC

Atleast2percountryengaged

� Projectreports,eventreports

� Qualitativeassessmentsofevents

� focusgroupsurveys� Compositionof

eventsaudience,demonstratinginclusivityandgendersensitivity

� Divergentinterestscanbebridgedleadingtobuy-infromallstakeholdergroups

Output2.2

Processestodefinelegaltimberproductionandtradeproceduresaredevelopedandadoptedforimplementation

� Numberofguidelinesforimplementationofforestlawsandpoliciesproduced

� Nationalparticipatorydialogueonlegaltimber

production� Traceability,Control&Verificationsystemsdesigned

,testedandvalidatedthroughtransparentandparticipatorymechanisms

� Atleast1percountryengaged

� EU,PartnersandFAOprojectreports

� Countryagreements� Pilotteststudies

demonstratinginclusivity(withparticularattentiontoSMEs)

� Projectreports/Government

� Proceduresareeffectiveandcanbeappliedbyallengagedalongthesupplychain,includingSMEandcommunitylevelactors


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Assumptions

Output2.3

Implementationofforestsectorgovernancestrategiesareinclusiveandwell-coordinated

� Availabilityoftimelyinformationandappropriatetoolsandtechnology

� Effectiveandbroadcoordinationwithotherpublic

sectorbodiesdemonstrated

� TBC� TBC

� 6countriesestablishinformationplatformsand/ortoolsby2018

� Improvedcoordinationdemonstratedin10countries

� Informationplatformsortools(web,socialmedia,appsetc.)

� Surveyswithextendedfocusgroups(includingothersectorstakeholders)

� Governancestrategieswillbereviewedregularlytoensurefullandequitableinclusivity

Output2.4

Stakeholdersareempoweredtoparticipateinprocessestopromoteinclusiveforestgovernanceandlegaltimberproductionandtradeprocedures

� Numberofprojectscontributingtoindependentforestmonitoringorconflictresolutionsystemsdevelopedandvalidatedbyconcernedgroups

� Numberofdifferentstakeholderprofiles/groups

representedinMulti-stakeholderplatforms(citedin2.1)

� 50%ofengagedcountriesvalidateaconsensusbasedsystem.

� 5initiatives

supportedbytheProgramme


� Focusgroupssurveys� Pilotstudies/

projectreports

� Pressuresfrommorepowerfulinterestgroupscanbeidentifiedandcontrolledandgroupslackinginfluencewillbegivensupportandencouragementtoengage


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Assumptions

Outcome3

Thecapacityoftheprivatesectortoparticipateintheproduction,marketingandtradeoflegaltimberhasincreased

� IncreasedknowledgeofFLEGTactionplan,EUTRandrelatedstandardsandduediligencerequirementinprivatesectorgroups

� Availabilityoftechnicalknowledgeandskillsfor

engaginginlegaland/orsustainableforestmanagement

� Increasedproportion/percentageofSMEsoperating

intheformalsector

� Increase/improvementdemonstratedinatleast10countriesengaged

� Increaseof25%inat

least6countries

� Focusgroupsurveys� Qualitative

assessmentsofworkshopsandtrainingeventsplusfocusgroupsurveys

� Governmentstatistics

� Certificationorganizationstatistics,countrystatistics,industryorganizationstatistics

� FLEGTrelatedinitiativesfostersufficientincentivesforPrivateSectoractorsatallscalestocommittoandengageexclusivelyinlegaltrade

Output3.1

Privatesectorcomposition,incentivesandmarketdynamicsarebetterunderstood

� Timberflowsatlocal,national,andregionallevelareunderstood,andbarrierstocomplianceidentified,withvolumes,values,efficiency,profitabilityandimpactoflegalityrequirementscharacterised

� Improvedunderstandingofwomen’sroleinthe

differentsegmentsoftimbertrade� Impactofmarketrequirementsandcertification

systemsonSMEsisbetterunderstood

� 3regionalstudies� 1studypercountry

engaged� 1globalstudy� 3?Nationalstudies

commissionedanddelivered

� Researchresults–conductedthroughPMU

� Timberflowstudies(includingsupplyandprocessingsectors)

� Roleofwomenbetterunderstoodandspecificopportunitiesforwomenandyouthareidentified

� Programmestudy(ies)complementedbyexistingpublications

� Promotinglegalitywithinprivatesectorwillonlybesuccessfuloncethedynamicsofthisgroupofactorsisbetterunderstood,includingtheroleofwomenandwomen-ownedbusinesses,whichispresentlylittleknown


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Assumptions

Output3.2

Privatesectorstakeholdersunderstandobligationsforlegalcomplianceandthedemandsthatareinfluencingmarkets

� Numberofmanualsofprocedures/handbooksforlegal/sustainablepracticesinthetimberindustryproducedthroughProgrammesupport

� Numberofnationalandregionaltimberfederations

orassociationswhohavereceivedinformation/training/technicalexchangesandeffectivelyengageinplanninganddecision-makingprocessesandlegalcompliance

� TBC � Manualsproducedorupdatedinatleast10countriesengaged

� Atleast20federations/associationssupported


� Projectreports

� Privatesectoractorsarecommittedtomeetingtheirobligationsandinterestedintakingupopportunities

Output3.3

Policiesandlegalframeworksarereviewedandrevisedtopromotefairaccesstoforestresourcesandincreaseproductiveanddecentemploymentintheforestsectorasanengineforpovertyreduction

� NumberofCost/Benefitstudiespavingthewaytolegalreforms

� Numberoflegalreformsproposedand/oradopted

incountriesengagingwithFAOFLEGT,whichareachievedthroughparticipatorymechanisms

� Atleast1policybriefpercountryengaged

� Atleast10countries

� Comprehensiveandrelevantstudies/policybriefsproducedandvalidated

� FAOprojectsreports,showingsolidparticipationofSMEs,CFOs,womenandyouthinlegalreforms

� Equitableaccesstoresourcesintheprivatesectorwillimproveincentivesforlegalityandopportunitiestoreducepoverty


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Assumptions

Output3.4

Privatesectorstakeholdershavetheskillstocomplywithlegalframeworksandaccessmarkets

� Numberofstakeholdercapacityneedsassessmentstoidentifytrainingneedsproduced

� Numberoftechnicaltrainingeventsorganizedto

respondtocapacityneedsofprivatesectoractors(particularlythosethatfocusonSMEs)toengageinlegaland/orsustainableforestmanagementimplementation.

� Compositionofstakeholdersgroupsparticipatingin

trainingeventsshowhighinclusivity

� TBD � 10needsassessments

� Atleast1per

countryengaged� Groupsare

composedofatleast20%ofwomenandyouth,andoverall50%ofsmallholders(SMEs,CFOs…)

� EU,FLEGTPartnersandFAOprojectreports,informationoninternet,governmentreporting

� Trainingevent

reportsdemonstratingsolidinclusionofSMEs,CFOs,womenandyouth

� Pre-andpost-

trainingskillsandknowledgeassessments

� Targetgroupisinterestedinandwillingtoattendevents


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Assumptions

Output3.5

Privatesectorstakeholdersareempoweredtoself-organizeandtoparticipateingovernanceprocesses

� Innovativemicro-financemechanismsforSMEsandchainsawmillerstestedthroughtheprogramme

� Numberofknowledge–exchange/lessonslearnt

events,andcompositionofaudience� Programmesupporttothedevelopmentofinternal

guidelines,regulations,andcodesofconduct

� TBD

� 4testpilots� Atleast1eventper

countryengaged,showingsignificantparticipationofSMEs,CFOs,womenandyouth

� Projectreports;targetedimpactstudyreports

� Eventsreports,

demonstratingsolidinclusionofSMEs,CFOs,womenandyouth

� Qualitative

assessmentsofreports

� SMEsinsomeeconomiesdonotdevelopbeyondsubsistencelevelduetoalackofcapitaland/ornoownershipstakeinthecapitalorthebusiness

Outcome4

Stakeholdersinbothconsumerandproducercountriesdemonstrateanimprovedknowledgeofbenefitsfromlegallogging,internationaltraderequirementsandofbestpracticesforforestlawenforcement,governanceandtrade.

� Extentofinclusion/useofFLEGTknowledgeandlessonsindecision-makingonVPA’sandotherFLEGT-relatedactions.

� ExtenttowhichtheFAOFLEGTProgrammeasa

globalinitiativeisaddingvaluetotheinternational‘FLEGTlandscape’

� TBD � Reportsfrominformationsessions,projectreports,independentevaluationandimpactmonitoringprocesses

� Improvedinformationtostakeholders,exchangebetweenstakeholders(includingsupplysideanddemandside)willimproveuptakeofbestpractices,etc.


114


Assumptions

Output4.1

Country-levelFLEGT-relatedstakeholdersdevelopandimplementFLEGT-relatedcommunicationplans.

� NumberofcommunicationstrategiesdevelopedwithProgrammesupport

� Increasedawarenessandknowledgeamong

differentstakeholdergroups

� Tobe

determinedthroughsurveys

� 6strategies � Programmereports,trainingandmediasupportreports

� Focusgroupssurveys

� FLEGT/VPAwillhaveanaccelerateduptakeifcountrystakeholders,mediahousesandthegeneralpublicunderstandtheprocessandbenefitsmoreclearly

Output4.2

FLEGT-relatedinformation,knowledgeandexperienceseffectivelycollected,analysedandsharedatnational,regionalandgloballevel.

� Numberofreports,briefingnotes,orothertechnicalguidanceandcountriesdocumentinglessonslearnedfromFLEGTactions

� Numberofinternational,regionalornationalevents

whereFLEGTexperienceshavebeenshared

� TBD � TwoGloballevelFLEGTmeetings;National&Regionalmeetingsondemandfromstakeholders

� EUFLEGTActionPlanevaluationreports

� FLEGTnewslettersandwebsites

� ProgrammereportsIndependentevaluationsProgrammeimpactmonitoring

� Informationisproducedinappropriateformatsspecificallydesignedforthetargetaudiences


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Assumptions

Output4.3

Experienceonnationaltimbertraceability,controlandverificationsystemsconsolidatedandcommunicatedespeciallyatregionallevel

� NumberofregionaleventsincludingtechnicalexchangesonTCVsystems

� Numberofstudiesproducedwhichaddressissuesof

linkbetweentraceability,controlandverificationandimprovedforestgovernance

� Programmenumber:Zero

� Allotherinstitution:TBD

� Oneeventannuallyorasrequested

� Reportsoneventsincludingtopics,timetable,participantsandfeedback

� ResourcesaremadeavailabletoencourageandsupportengagementespeciallybySMEsandcommunityscalegroups

Output4.4

RelevantstudiesundertakenthatenhanceunderstandingandhavewidervalueforFLEGTrelatedprocesses

� Studiesonsynergyandmutualcomplianceoflegalityandcertificationundertaken

� Pilotandpreliminarystudiesundertakenonrevenue

collection,illegalactivities,etc.leadingtomorecost-effectivecontrol

� Programmenumber:zero

� Allother

institutions:TBD

� Fourstudiesconductedannuallyinthefirst2yearsoftheprogrammeonrelevanttopics

� ReportsaresubjecttoQAandthenpublishedormadeavailableinternally

� Agreementcanbereachedontopicstobecoveredthathavegenuinelywidervalue


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Actions PMUActionsProjects’Actions

InceptionPhaseandProgrammeManagement

0.1.1-ReviewandintegraterecommendationsfromthecurrentFAOFLEGTProgrammemid-termevaluation(andtothedegreepossibletheoutcomesofthereviewoftheFLEGTActionPlan)intoPhaseThreeoftheProgramme

ü

0.1.2-Developadetailedtwoyearworkplan(2016to2017),reviewandfinalizethelogicalframeworkandidentifyingappropriateindicatorsforimpactmonitoring(reviewingwithEFIthepossibilityofcommon,globalindicators)

ü

0.1.3-Completeaninitialbaselinesurveyfortheindicators ü

0.1.4-Finalizetheprivatesectorneedsassessmentanddevelopingastrategicapproachtosupportingprivatesectororganizations ü

0.1.5-EstablishpossibleinitialpriorityVPAcountriesforinterventionsbasedondialoguewiththeSteeringCommitteemembers ü

0.1.6-FinalizethemethodologyandcriteriatoidentifyprioritypilotcountriesoutsidetheVPAprocess ü

0.1.7-EstablishStandardOperatingProcedures,visibilityrequirementsandcommunicationplanfortheProgramme,TermsofReferencefortheSteeringCommitteeandotheradministrativeproceduresasrequired

ü

Outcome1–VPACountries

VoluntaryPartnershipAgreementscontributetoimprovedforestsectorgovernanceandtimberlegalityondomesticandinternationalmarkets

Output1.1-StakeholdersunderstandtheirrespectiverolesintheVPAprocess

1.1.1-Conductstock-taking(deskstudy)ofprojectresultsthroughphases1and2oftheProgrammetobettertargetprojectselectionmechanismsandthematictopicsinVPAcounties

ü

1.1.2-Countryprioritiesidentifiedthroughinclusiveconsensus-basedapproachestogetherwithidentifiedactionstomeetchallengestoimprovedforestgovernance

ü

1.1.3-Differingawarenessofrolesisclearlydefinedandfollowed ü

1.1.4-AwarenessraisingonallaspectsofforestgovernanceandFLEGTActionPlan,includingstakeholderrightsandresponsibilities,throughappropriatemodalitiesatalllevels

ü


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Output1.2-Stakeholdershavetheknowledge,skillsandtechnicalinformationneededtofulfiltheirroleintheVPAprocess

1.2.1-TrainingneedsassessmentsandskillsauditsforFLEGTVPAatarangeoflevelsundertaken ü

1.2.2-Potentialalliancesacrossandwithstakeholdergroupsidentifiedandsupportedthroughimprovedcoordinationandactivecreationofalliances

ü ü

1.2.3-ConducttrainingactionsthataddressneedsofVPAimplementation ü

Output1.3-PriorityactivitiessupportingtheimplementationofVPAsundertakenbycommunitiesandindigenousgroups

1.3.1-Platformsandmechanismsdevelopedforimprovedlocallevelforestgovernanceincludingrightsandtenureissues,conflictresolutionandparticipatorymanagement

ü ü

1.3.2-ModalitiesandcommunicationsystemsstrengthenedtoenhanceeffectiveengagementofcommunitiesandindigenousgroupsinVPAdesignanddelivery,includingcommunityscaleloggingactivities

ü

Output1.4-Innovative,effectiveandinclusivelawenforcementprocessesaredevelopedandtested

1.4.1-DevelopjointstrategiestosupportlawenforcementactivitiesinVPAcountrieswithotherUNAgencies ü

1.4.2-Knowledgeofandcapacityforindependentmonitoringbuilt,especiallywithincivilsocietyandcommunity/indigenousgroups,includingeffectivecollection,exchangeanduseofinformation

ü

1.4.3-Civilsociety-ledindependentmonitoringofforestresourcesinconnectiontotheGhanaVoluntaryPartnershipAgreement-CSOsactivelymonitoringtheissuingofatransparent,credibleandacceptableFLEGTlicense

ü

1.4.4-Strengthenfemaleparticipationandgenderequalityinstakeholderdiscussions,projectactivitiesandgovernancedialoguethroughsupporttowomanandcommunityrightstoforestmanagementandgovernance,inparticularinLiberia

ü ü

1.4.5-Existingforestrylegalframeworksandnationalstrategiesanalysedandimprovedtoaddressillegalloggingthroughbroad-basedapproaches

ü

1.4.6-Strengthentheefficiencyofinvolvedpartiesinthemonitoringoflarge-scaleinvestmentsinforestedareas,inordertoreducetheriskofillegallogging-monitorillegalloggingandforestcoverchangefornon-logginginvestments-Congobasin–Cameroon,CentralAfricanRepublic,Gabon,RepublicofCongo

ü ü

1.4.7-Supportcross-bordercollaborationtoreduce/eliminateopportunitiesforillegaltrade ü

Outcome2–NonVPACountries

InitiativesthatsupportlegalproductionandconsumptionoftimberandbetterforestsectorgovernanceincountriesthatarenotengagedintheVPAprocessarestrengthened


118


Output2.1-Agovernancestrategyisagreedthroughamulti-stakeholderprocess

2.1.1-Conductstock-taking(deskstudy)ofprojectresultsthroughphases1and2oftheProgrammetobettertargetprojectselectionmechanismsandthematictopicsinnon-VPAcounties

ü

2.1.2-Organizecountry-levelstakeholderinformationworkshops,coordinationmeetingsandinformationsessionswithpolicymakerstoraiseawarenessandunderstandingonFLEGT/Improvedgovernanceprocesses

ü ü

2.1.3-Inclusive,consensus-basedapproachestoimprovedforestgovernanceidentifiedanddeveloped ü

2.1.4-AwarenessraisedandgroupdiscussionsorganisedtoaidimprovedforestgovernanceandimplementationofaFLEGTactionplan ü

Output2.2-Processestodefinelegaltimberproductionandtradeproceduresaredevelopedandadoptedforimplementation

2.2.1-Appropriatetimberlegalitydefinitiondevelopedthroughtransparentprocessesandagreedbyallrelevantstakeholdersandactors ü

2.2.2-Supportdevelopmentandpilotingofnationaltraceabilitycontrolandverificationsystems,includingindependentandcommunity/indigenousgroupmonitoring

ü

2.2.3-Investigateandadaptsystemstoensureapplicabilityandfacilitateuptakeincludingbysmallandmediumenterprisesandlocalgroupsengagedinsmall-scalelogging

ü

Output2.3-Implementationofforestsectorgovernancestrategiesiswellcoordinated

2.3.1-Awarenessofandinformationflowsonlegislation,policies,regulations,rightsandresponsibilitiesimproved ü

2.3.2-Transparentandparticipatoryreviewofrelevantlegislationandregulationsconducted,leadingtorevisionandadoptionofimprovedforestgovernanceframework

ü

2.3.3-Coordinationwithotherpublicsectorbodiesinadditiontoforestry(interaliaagriculture,mining,landuseplanning,finance)improved,toincludebroaderrangeofactorsingovernancestrategyimplementation

ü

Output2.4-Stakeholdersareempoweredtoparticipateinprocessestopromoteinclusiveforestgovernanceandlegaltimberproductionandtradeprocedures

2.4.1-Platformsandmechanismsdevelopedforimprovedlocallevelforestgovernanceincludingconflictresolutionandparticipatorymanagement

ü ü

2.4.2-Raisingawarenessandbuildingskillsinlocal/indigenouscommunitiesforapplicationofFLEGTtotheirloggingactivities ü

2.4.3-Trainingneedsassessmentsandskillsauditsatarangeoflevelsundertaken ü

2.4.4-Supportcross-bordercollaborationtoreduce/eliminateopportunitiesforillegaltrade ü


119


Outcome3-PrivateSectorActorsinVPAandNon-VPAcountries

Thecapacityoftheprivatesectoratallscalestoparticipateintheproduction,marketingandtradeoflegaltimberhasincreased

Output3.1-Privatesectorcomposition,scale,incentives,economicsandmarketdynamicsarebetterunderstood

3.1.1-Completejointlearningandstocktakingofprivatesectorsupportactions,assessmentwhathasstimulatedengagementingovernanceprocesses,gapsandneededactions

ü

3.1.2-Commissionand/orundertakestudiesonthewoodsupplyandprocessingsectors,includingartisanallevel,tocharacterisevolumes,values,efficiency,profitabilityandimpactoflegalityrequirements

ü ü

3.1.3-Characteriseanddocumenttimberflowsatlocal,nationalandregionallevelsandidentifyinterventionpointstoimprovecompliancewithFLEGTandsimilarsystems

ü

3.1.4-Undertakestudiesonbarriersandimpedimentsintimberproducttradeanddevelopharmonisedparametersanddatacollectiontofacilitatecompliancechecking

ü

Output3.2-Privatesectorstakeholdersunderstandtheirobligationsforlegalcomplianceandthedemandsthatareinfluencingmarkets

3.2.1-RaiseawarenessonallaspectsofFLEGTActionPlanthroughimprovedaccesstoinformationandenhancedcommunicationwithinandbetweenprivatesectoractorsandvariousscalesandothers

ü ü

3.2.2-PromotebetterunderstandingofEUTRandrelatedtradeandcertificationstandardsleadingtomorecost-effectivesystems ü ü

Output3.3-Policiesandlegalframeworksarereviewedandrevisedtopromotefairaccesstoforestresources,increaseproductiveemploymentintheforestsectorandactasanengineforpovertyreduction

3.3.1-Commissionand/orundertakecomprehensivereviewsofrightsandtenureleadingtoidentificationofbarriersandprovidingbasisforequitablereform

ü ü

3.3.2-Investigateandadaptsystemstoensureapplicabilityandfacilitateuptakeincludingbysmallandmediumenterprisesandlocalgroupsengagedinsmall-scalelogging

ü

3.3.3-Cost-benefitstudiesconductedtounderpinlegalreformsleadingtosimplifiedandincentivisedlegalitycomplianceprocesses,includingbarriersandopportunitiesaroundcompliance

ü

Output3.4-Privatesectorstakeholdershavetheskillstocomplywithlegalframeworksandaccessmarkets

3.4.1-SupporttrainingandskillsbuildingincludingtrainingoftrainersforallaspectsofFLEGTActionPlan,includingnationallegislationandregulationsandchangedpracticessuchaslegalityaudits

ü

3.4.2-UndertaketrainingandskillsbuildingrelatingtochangedfieldactivitiesandbusinessadministrationthatsupportFLEGTrelatedoutcomes ü


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3.4.3-Fosterresponsibleforestmanagementandmarkettransformationthatincreasesthesupplyofanddemandforlegaltimber–supportdemandandsupplysideinnovationsthatpromotelegaltimberonregionalmarketsinCôted’Ivoire,GhanaandLiberia

ü

3.4.4-ThroughpartnershipwiththeForestandFarmFacility–provideorganizationalandcapacitysupporttomicroandsmallenterprises

Output3.5-Privatesectorstakeholdersareempoweredtoself-organize,toparticipatefullyinrevisedgovernanceprocessesandimproveaccesstonecessaryfinanceforFLEGTcompliance

3.5.1-SupporteffectivetradeandindustrybodiesinexchangeofknowledgeandexperienceonFLEGTActionPlanandsecurerepresentationingovernancediscussionsinproducingandconsumingcountries

ü ü

3.5.2-Supporttoimproveinternationalcommunicationandnetworkingbetweentimbertradefederations-Supportprivatesectororganizationstocontributetomarketreformsthatreducetheillegaluseofforestresourcesandbenefitpoorpeopleandwhichpromotelegalandsustainableindustry

ü

3.5.3-SupportthedevelopmentandtestofcompliancemodelsforprivatesectorSMEs;supportunderstandingandimplementationofcompliancemodels-SupporttoassessandsupportimprovedcompliancewithinternationalbestlegalitystandardsintheHandicraftandWoodcraftindustryassociationofVietnam

ü

3.5.4-Identifybarrierstocomplianceandseekinnovativesolutionsincludingaccesstofinanceandotherresourcesthataidandsupportcompliance

ü

Outcome4–AllCountriesandGroups

Stakeholdersinbothconsumerandproducercountriesdemonstrateanimprovedknowledgeofbenefitsfromlegallogging,internationaltraderequirementsandofbestpracticesforforestlawenforcement,governanceandtrade

Output4.1-Country-levelFLEGT-relatedstakeholdersdevelopandimplementFLEGT-relatedcommunicationplans

4.1.1-Assistindevelopingandimplementingcountry-levelcommunicationstrategiesinassociationwiththeEFIFLEGTCommunicationStrategy ü

4.1.2-Provideforafornationalleveltrainingandsupportformediaoutreach–inpartnershipwithEFIandotherUNAgencies ü

4.1.3-HarmonisedcommunicationplansonFLEGTrelatedissuesdevelopedbystakeholdersprovidingcoherentinformationthrougharangeofmediaencompassingtheneedsofallstakeholders

ü

Output4.2-FLEGT-relatedinformation,knowledgeandexperienceeffectivelycollected,analysedandsharedatnational,regionalandgloballevel

4.2.1-PromoteinformationexchangeopportunitiesonFLEGTleadingtonationalpolicychangesontimberprocurement,useandtradethatincorporatelegalityrequirements

ü


121


4.2.2-SupportinformationcollectionandsharingmechanismstooptimiseexchangesoflearningandexperienceonFLEGTactions ü

4.2.3-Conductregionalseminarstoprovideinformation,exchangeexperiencesandshareknowledgeaboutexistingandemergingissuesincludingFLEGT,REDD+,Illegalforestconversion,foresttenureandlandrights,etc.

ü

4.2.4-Supportsouth-southexperiencesharing–bringingstakeholderstogethertoexchangeinformationontechnicalandpolicyissues

Output4.3-Experienceonnationaltimbertraceability,controlandverificationsystemsconsolidatedandcommunicatedespeciallyatregionallevel

4.3.1Promoteexchangeofexperienceandlessonslearnedontraceability,controlandverification ü ü

Output4.4-RelevantstudiesundertakenthatenhanceunderstandingandhavewidervalueforFLEGTrelatedprocesses

4.4.1-Promotesynergiesandmutualcompliancebetweenlegalityandcertificationsystemstominimiseduplicationandcomplexity ü ü

4.4.2-Undertakestudiesthatleadtoimprovedknowledgeofrevenuecollection,illegalactivities,licensing,prosecution,etc.andprovideabasisforrevisionofcurrentcontrolsystemsincludingincorporationofartisanalandlocalproduction

ü

4.4.3-Promoteoperationallinkageswithotherinitiatives,toencompassbroaderrangeofhigh-levelactorsfromothersectorsandensurecomplementarityofFLEGTrelatedactions(REDD+;povertyreduction;foodsecurity;landuseandlandtenure,sustainablesupplychains,etc.)

ü ü


122

Annex4.ExpertPanelReport


125


EXPERTPANELREPORTEvaluationofproposalsfromthefirstcallforproposals

VPACountries

04February2016

DraftedbytheProgrammeManagementUnitfortheSteeringCommitteemeetingoftheFAOFLEGTProgramme(GCP/GLO/600/MUL)


126

ThedesignationsemployedandthepresentationofmaterialinthisinformationproductdonotimplytheexpressionofanyopinionwhatsoeveronthepartoftheFoodandAgricultureOrganizationoftheUnitedNations(FAO),theEuropeanCommission(EC),theSwedishInternationalDevelopmentCooperationAgency(SIDA)andtheDepartmentforInternationalDevelopment(DFID),concerningthelegalordevelopmentstatusofanycountry,territory,cityorareaorofitsauthorities,orconcerningthedelimitationofitsfrontiersorboundaries.Thementionofspecificcompaniesorproductsofmanufacturers,whetherornotthesehavebeenpatented,doesnotimplythatthesehavebeenendorsedorrecommendedbyFAO,theEC,SIDAorDFIDinpreferencetoothersofasimilarnaturethatarenotmentioned.Theviewsexpressedinthisinformationproductarethoseoftheauthor(s)anddonotnecessarilyreflecttheviewsorpoliciesofFAO,theEC,SIDAorDFID.


127

Contents

1. INTRODUCTION 128

2. MAINCHARACTERISTICSOFTHECALLFORPROPOSALS 128

3. EVALUATIONPROCESS 130

4. RESULTSOFTHEEVALUATION 1334.1 Conceptnotes 133

4.2 Fullproposals 134

5. EXPERTPANELGENERALRECOMMENDATIONS 147


128

1. Introduction

TheFoodandAgricultureOrganizationForestLawEnforcement,GovernanceandTradeProgramme(FAO FLEGT Programme) is a continuation of the ACP FLEGT Support and EU FAO FLEGTProgrammes.Thethirdphasehasbeenestablishedasamulti-donortrustfund(SIDA,EU,DFIDandFAO) to continue to channel support to countries engaged in a Voluntary Partnership Agreement(VPA)andotherdevelopingcountriesactivelyinvolvedinFLEGT-relatedinitiatives.

TheProgrammeprovidessupport togovernments,civil societyandprivatesectororganizations toimplementprojectsthataddressFLEGT-relatedissues.Projectsareawardedthroughacompetitiveprocess initiated by issuing a “call for proposals” through formal FAO and EU Delegationcommunicationchannels.

The Programme supports calls for proposals through three funding lines, the first dedicated tofunding actions in countries engaged in the VPA process, the second is dedicated to otherdeveloping countries that are not engaged in the VPA process and the third one targets privatesectorinitiatives.ThepresentcallforproposalswasissuedthroughthefirstandthirdfundinglinesforcountriesthatareengagedintheVPAprocess.

ProposalssubmittedtotheProgrammewereevaluatedbyanExpertPanelusingastandardizedsetofcriteriaandscoringprocedure.Thisreportcontainsbackgroundinformationontheevaluation,adescription of proposals submitted, a summary of the evaluation and results, proposalsrecommendedforfunding,andgeneralcommentsontheevaluationprocess.

This final report from the Expert Panel and its recommendations are presented to the SteeringCommitteeforfinalevaluationandendorsement.

2. Maincharacteristicsofthecallforproposals

Objective:Theobjectiveofthiscallforproposalswastoensurethatgovernmentalinstitutions,civilsocietyandprivatesectororganizationscontinuetoidentify,throughademanddrivenprocess,thehighestpriorityactionstosupportandparticipateintheimplementationoftheVPAprocess.

Approach:Atwo-phaseapproachwasadoptedtoimprovetheefficiencyandspeedoftheselectionprocedure:submissionofshortconceptnotesfollowedbysubmissionoffullproposals.

Deadlines:Thecall forconceptnoteswasannouncedon20thAugust2015andwasclosedon30thSeptember 2015. The organizations with selected concept notes were invited to submit a fullproposalbefore11thDecember2015.

Priorities: Applicants were requested to identify a clear link with elements of the FAO FLEGTProgrammeLogicalFramework(atleastoneoutputandrelatedsupportedactions)andtobuildtheirproposaltargetingoneofthetwoproposed“lot”:


129

� Lot 1 ‘’Supporting the private sector participation in the VPA process’’: enhancing theunderstandingofandcompliancetolegalframeworksbysmallandmediumsizebusinessesand promoting legal production and best management practices throughout the woodproductvaluechain

� Lot2 ‘’SupportingtheVPAnegotiation/implementationprocess’’:enhancingthesupportinthepreparationfor,negotiationandimplementationofVoluntaryPartnershipAgreements.

Proposedfunding:Originally,thepotentialfundingthroughthiscallforproposalswasapproximatelyEUR3,000,000,distributedaccordingtothefollowingindicativeallocationperlot:

- Lot1(privatesector):EUR1000000- Lot2(VPAprocess):EUR2000000

Grants:AvailablegrantsperprojectshallnotexceedthemaximumlimitofEUR100000(orapproximately110,000USD)andthemaximumimplementationperiodof15months.

Eligible countries: VPA countries are countries that have already negotiated or are in the pre-negotiation / negotiation phase of a Voluntary Partnership Agreement (VPA) with the EuropeanUnion.Thefollowing16countrieswereconcerned:

Countries Acronym

Cameroon CAMCentralAfricanRepublic CAR

Côted’Ivoire CDICongo,DemocraticRepublicof DRC

Congo,Republicof PRC

Gabon GABGhana GHA

Guyana GUYHonduras HON

Indonesia IND

LaoPDR LAOLiberia LIB

Myanmar MMRMalaysia MYS

Thailand THAVietNam VIE


130

3. Evaluationprocess

Thefigurebelowsummarisesthestepsinvolvedintheproposalevaluationandprojectselectionprocess.

Callforconceptnotes(20/08/2015)

Registrationofconceptnotes

EvaluationofconceptnotesbyPMU

Selectionofsatisfactoryconceptnotes

CallforFullproposals(04/11/2015)

Fullproposalssubmission(11/12/2015)

Registrationoffullproposals

Evaluationofeligibleproposalsbyexternalexperts

PanelsofexpertsprepareanevaluationsummaryreportandadvicetotheSteeringCommitteeonevaluationofsatisfactoryproposals

ProponentsinformedafterendorsementbytheSCofproposalssuitablefor

funding

ProponentsinformedafterSteeringCommitteerejectiondecision

FeedbackfromEUDelegations/EFI

FeedbackfromEUDelegations/EFI

NegotiationanddraftingoftheLetterofAgreement(LOA)

NonobjectionfromFAORepresentation

SignatureoftheLOA

AdministrativecheckoneligibilitybyPMU

SteeringCommitteemeeting(19/02/2016)

Conceptnotessubmission(30/09/2015)

Guidelinesdevelopment

DueDiligenceProcess(Legalstatus,Managerial,AdministrativeandFinancialcapacity)

Internalqualityassurancecheck


131

Evaluationofconceptnotes

Aftertheconceptnotesubmissiondeadline(30/09/2015),theProgrammeManagementUnit(PMU)conductedthefollowingactions:

1. Registeredallconceptnotes;

2. Completedtheadministrativescreeningtoverifythatproposalsmeettheeligibilitycriteriareferredtointheguidelines.Thefollowingcriteriaarerigorouslyappliedandanyproposalfoundtobeineligibleisexcludedfromfurtherevaluation;

a. Theapplicantisregisteredinaneligiblecountry;

b. The applicant is a government institution , a civil society organization or anorganization/federationoftheprivatesector;

c. Theconceptnoteiscompleteandfollowstherequiredformat;

d. ThebudgetdoesnotexceedthemaximumlimitofEUR100,000(approximatelyUSD110,000).

e. Actionsshouldtakeplaceinthecountrywheretheapplicantisbased.

3. Completed the technical evaluationwith respect to the criteria defined in the guidelines.EachconceptnoteisevaluatedbyatleasttwomembersofthePMUtoattest:

a. RelevanceandcomplementaritytotheVPAprocess

b. Proposedmethodology-feasibility

c. Sustainabilityandpartnershipsdeveloped

4. Requested the feedback fromEUDelegationandEFI FLEGTFacility. The list of all conceptnotes that passed the administrative screening is shared with all EU Delegations in VPAcountriesandwiththeEFIFLEGTFacility;

Evaluationoffullproposals

In earlyNovember, thePMUasked theorganizations,whose conceptnotewas selected (met theeligibility criteria and scored at least 70/100 points), to submit a full proposal by the 11th ofDecember2015.Specificguidelinesandanupdatedtemplatewereproducedandsenttoapplicants.Formonitoringpurposes,applicantwererequestedtoprovidealinkbetweentheobjectiveoftheirprojectandoutputsofthenewlogicalframeworkoftheProgramme.

An independent panel of external experts was appointed by the PMU to evaluate the quality ofthoseproposalsthatfulfilledtheconceptnotes’eligibilitycriteria(seebelowforevaluationcriteria).Thetasksoftheevaluationpanelincluded(seealsoAnnex1:ExpertPanelTermsofReference):

� Evaluate each project proposals according to pre-established criteria and provide a scoreand observations per criterion and an overall description of the quality of the proposal,includingasummarylistofitsstrengthsandweaknesses.

� Provide a list of recommended proposals that should be considered for funding by theSteeringCommittee(withjustificationfortheselectionofthoseproposals).


132

� Contribute toa finalExpertPanelReport.Thereportwillgivegeneral statisticaldetailsonthe proposals received (number, priority themes covered, background of proponents,budgetrequested,etc.)andthoseselected,ontheevaluationprocedureandontheexperts.

The 5-member panel was further divided into three teams based on the experts’ languageproficiency(English,French,andSpanish)andknowledgeofthecountry/region:

Team1–Dr.PatrickHardcastleandDr.ArthurBlundellevaluatedEnglish-writtenproposals

Team2–Dr.JürgenBlaserandMr.Jean-MarieNoiraudevaluatedFrenchproposals

Team3–Dr.JürgenBlaserandMr.FilippoDelGattoevaluatedSpanishproposals

ThePMUassignedeligibleproposalstothedifferentevaluationteams.Eachproposalwasevaluatedby at least twoevaluators. Theevaluators scored theproposalsusing anonlinedatabase system(FORIS): the evaluators were able to view and download proposal documents and backgroundinformationandscoretheproposalsonline,withtheabilitytoinsertcommentsforeachproposal,tobesharedwithotherevaluators.

Each proposal was scored independently using a weighting system based on the seven criteriabelow:

1. Relevance(/30)2. Effectiveness(/15)3. Methodology(/15)4. Sustainability(/10)5. Innovation(/10)6. Efficiency(/10)7. Gender(/10)

Proposalsscoringabove70,outofamaximumof100possiblepoints,areconsideredforfunding.

Toenhancetransparencyoftheevaluationprocessandincreasetherateoffeedbackreceived,thePMU circulated all full proposals among relevant EU Delegation, EFI FLEGT Facility and/or FLEGTFacilitators intherespectivecountries.TheEUDelegationsandEFIcolleaguesineachVPAcountrywere informedabouttheproposalevaluationprocessand invitedtoscoreproposalsbasedontheselectioncriteria,providerelevantfeedback,givetheirnon-objectionorsimplyobservetheprocess.Of the 14 countries concerned by the evaluation, 8 EU Delegations focal points jointly with EFIexperts,providedgeneral feedbacksand2othersgaveanon-objectiononpre-selectedproposals.All feedbackwas sharedwith the expert panelmembers. The supportwaswelcome and inmostcasesconsistentwiththefindingsoftheevaluators.

OnthebasisoftherecommendationsoftheexpertsandfeedbackfromtheEUDelegationandEFI,thePMUdrafteda final listofallproposals thatpassed the required thresholds, rankedby score.TheadviceoftheexpertsandotherfeedbackwasfullysetoutinwritingbythePMUatthemomentofpreparingthefinalrankedlisttobesubmittedtotheSteeringCommittee.


133

Based on the experts’ panel report, availability of financial resources and the geographical andthematicbalance,theSteeringCommitteeendorsesprojectssuitableforfunding.

Proponentsareinformedoffinalresultsbyemail.

Duediligenceandcontractnegotiation

Before initiating the contracting phase, the PMU will perform due diligence on prospectivebeneficiaries.Thisbackground reviewwill focuson technicaland financial capacitiesespecially fornewserviceproviders.ItwillleadtoaclassificationofServiceProvidersaccordingtotheircapacitiesand will determine the effort needed in terms of training and monitoring in the initial stage ofproject start up. In case of an agreement is not reached or the due diligence processes resultsconcludethattheprojectshouldnotcontinue,theproponentwillbeinformedinwriting.

Basedontheproposal,aletterofagreementwillbenegotiatedwiththeserviceproviderfollowedbyaninternalqualityassuranceandanon-objectionfromthelocalFAORepresentation.

4. Resultsoftheevaluation

4.1 Conceptnotes

A total of 269 concept notes were received and evaluated by the PMU. Concept notes arecategorizedasfollows:

� Countries:16differentcountries� Regions:206Africa,32Asiaand31LatinAmerica� Proponentgroups:189CSO,50governmentinstitution,29privatesectororganization,and

1undefined

Of the 269 concept notes submitted, 239 passed the administrative screening process and fromwhich 72were selected to submit a full proposal. The remaining 72 proposals are categorized asfollows:

� Countries:15countries;� Regions:47Africa,15Asia,and10LatinAmerica;� Proponentgroups:49CSO,15governmentinstitutionsand8privatesectororganization

The Figure 1, 2 and 3 show the distribution respectively by region, by stakeholder group and bycountry. As for the previous calls for proposals, African countries submitted the largemajority ofconceptnotes(65%)with3countries(DRC,CameroonandGhana)sendingtogethermorethan50%of theconceptnotessubmitted.Unfortunately,noneof thetwoMalaysianprojectswereselectedfor the next phase of the process. Civil society organizations were the most active to proposeprojectsideaswith68%ofthetotalnumberofconceptnotes.


134

Withthiscallforproposals,weobservedaverygoodsignintermsofPrivateSector’sinvolvement.While not all 29 submitted concept notes were selected, it shows increased interest and alsoopportunitiesforfollowupwiththeorganizations.

4.2 Fullproposals

Of the 72 organizations requested to send a full proposal, only 66 full proposals respondedpositively.Interestingtonotethat2organizationsdecidedtomergetheireffortbysubmittingonlyonecommonfullproposal.

Table 1 summarizes the results of the evaluation. Based on the review by the Expert Panel, 37proposals scored above 70/100. Of the 37 proposals, 36 are recommended for funding. OneproposalfromCameroondespiteascoreabove70receivednegativefeedbackbytheEUDelegation(seeTable2).

Thedegreeofsuccessofproposalssubmittedunderthelots1(Privatesector)isaround65%whiletheproposalsfromlot2(VPA)wererecommendedforfundingonlyabout45%.

In termsofbudget, thePMUallocatedan indicativeUSD3,300,000 for thiscall forproposals.Thetotalamountrequested inthe36proposalsrecommendedforfunding isUSD3,812,000andthere

Africa65%

Asia21%

Americas14%

FIGURE1.CONCEPTNOTESDISTRIBUTIONBYREGIONS

CSO68%

Gvt21%

PS11%

FIGURE2.CONCEPTNOTESDISTRIBUTIONBYSTAKEHOLDERGROUPS

0

10

20

30

40

50

60

DRC CAM GHA HON CDI IND PRC VIE CAR LIB GUY LAO GAB MMR MYS THA

Num

bero

fcon

ceptnotes

Countries

FIGURE3.CONCEPTNOTESDISTRIBTUTIONBYCOUNTRIES:SUBMITTEDVSSELECTED

Submimed Selected


135

was a reverse of requests – significantly more resources are requested under the Private Sectortheme.

4.2.1 Table1:Fullproposalsevaluationbycountry

Countries Numberofproposalssubmitted

NumberofProposals

recommended

Budgetofproposalsrecommendedforfunding(USD)

Lot1 Lot2 Lot1 Lot2 Lot1 Lot2 TOTALCAM 7 5 4 2 401,000 217,000 618,000CAR 3 1 96,000 96,000CDI 2 3 1 1 100,000 215,000 315,000DRC 2 4 2 1 220,000 85,000 305,000PRC 1 1 1 65,000 65,000GAB 1 1 1 110,000 110,000GHA 7 4 3 297,000 297,000GUY 1 1 1 1 110,000 110,000 220,000HON 3 3 2 2 181,000 200,000 381,000IND 2 4 1 3 109,000 329,000 438,000LAO 2 1 2 1 214,000 109,000 323,000LIB 1 1 1 109,000 109,000MMR 1 1 1 1 120,000 109,000 229,000THA 1 1 1 109,000 109,000VIE 2 2 197,000 197,000TOTAL 33 33 21 15 2,168,000 1,644,000 3,812,000Intermsofpriorities,theFigure4showsaclearfocusfromtheproponentsonoutput3.4‘’Privatesectorstakeholdershavetheskillstocomplywithlegalframeworksandaccessmarkets’’andoutput1.4‘’Innovative,effectiveandinclusivelawenforcementprocessesaredevelopedandtested’’.


136

Table2presentsthe37proposalsthathavebeenscoredabove70,rankedbylotandbyscore.Foreachproject,theobjective,ageneralappreciationandsomerecommendationsarepresented.ThistableshowsthatmanyprojectswillneedadjustmentsduringthenegotiationphaseoftheLetterofAgreement.Somemainrecommendationscanbehighlightedhere:

1. Alargemajorityofbudgetpresentedarepushedtothehighestpossibleandwillneedtobescaleddown,insomecasesdrastically.Infact,theevaluatorshaveidentifiedbudgetissuesin 23 projects on the 36 recommended for funding. Themain excessive budget lines arelinkedtomeetings,travelsandDSA.Somecostspresentedare insomecase ineligible, likevehiclespurchases.These lineswillneed tobecarefully scrutinizedwhencontractingwithserviceproviders.

2. For some projects, the ambition will need to be revised to achieve more focused andconcreteresults inthetimeframeof15months. Insomecases, therevisionof the logicalframeworkcanevenleadtodropsomeoutputswithanautomaticbudgetscaledown.

3. Finally, some projects submitted by Governmental agencies or by Private Sectorassociation/syndicatewouldbebetterframedundertheDirectAssistance(DA)mechanismbecause of their nature (a study, amanual etc.) or because the budget and the durationpresentedcorrespondbetteroftheDAspecificities.ThoseprojectcouldbeallocatedtoDAbudgetlineoftheProgramme.

Forall the reasonsmentionedabove, thePMUexpects that theProgrammewillmeet thebudgetexpectations(3.3millionUSD)afterthenegotiationoftheLettersofAgreement.

Table2:Proposalsrecommendedforfunding

# Country Serviceprovider Proposaltitle Expertobservations Score

-

2

4

6

8

10

12

Stakeh

olde

rsund

erstand

theirrespe

cnvero

lesinthe

VPAprocess

Stakeh

olde

rshavethe

know

ledgeandskillsto

fulfilthe

irroleinth

eVP

Aprocess

Priorityacnvinessu

ppornn

gtheim

plem

entano

nofVPA

sun

dertaken

bystakeh

olde

rgrou

ps

Inno

vanve,effe

cnveand

inclusivelawenforcemen

tprocessesa

redevelop

ed

andtested

Privatesectorcom

posin

on,

scale,incenn

ves,econo

mics

andmarketd

ynam

icsa

re

bemerund

erstoo

d

Privatesectorstakeh

olde

rs

unde

rstand

theiro

bligan

ons

forlegalcom

plianceandthe

demandsth

atare

Policiesa

ndlegal

fram

eworksarere

view

ed

andrevised

Privatesectorstakeh

olde

rs

haveth

eskillstocomply

with

legalframew

orksand

accessm

arkets

Output1.1 Output1.2 Output1.3 Output1.4 Output3.1 Output3.2 Output3.4 Output3.5

Num

bero

fPropo

sals FIGURE4DISTRIBUTIONOFPROPOSALSSELECTEDBYOUTPUT


137


LOT1:SupportingtheprivatesectorparticipationintheVPAprocess

1.1 VIE InstituteofPolicyandStrategyforAgricultureandRuralDevelopment

ScatteredTimberSourcesinVietnamandPotentialDevelopmentundertheVPAwithEuropeanUnion

Objective:Understandtheextenttowhichscatteredtimbersourcescontributetothewoodprocessingindustryanditslegality.ProvidepolicyadviceforinclusionofthistimbersourcesintheTLAS.Observation:Thisisaverysolidproposal.Recommendations:-

83.5

1.2 GHA FriendsoftheEarth

InfluencingSustainableMarketPoliciesthroughInnovativeSocio-TechnicalSolutions

Objective:Supportinnovativesocio-technicaloptionsthroughinterdisciplinaryresearch,technicalworkinggroupsanddecision-supportsystemsaimedatdeliveringpolicyrecommendationsforachievinglegalityinthedomesticmarketObservation:ImportantproposalwithsolidelementintheproposedstudytocharacterisetheinformalsectorRecommendations:Thegenderandyouthsectioncouldbestrengthenedwithspecificattentiontomarginalisedgroups.ThevalueofOutput3isunclearandwouldbebetterdropped.

82.5

1.3 HON FederaciónHondureñadeCooperativasAgroforestales

ApoyandoeldesarrollodeunSistemaNacionaldeRastreabilidad,ControlyVerificacióndelaMaderaqueseaequitativoyviableparalaspequeñascooperativasqueconformanelsectorcomunitariodelPaís

Objective:ContributetothepreventionofpotentialproblemidentifiedinissuesrelatingtolegalityandthesustainableuseoftheresourcesObservation:Verystrongproposal.FEHCAFORistheoldestandmostimportantfederationofcommunity-basedforestenterprisesinHonduras.TheprojectreflectstheprioritiesoftheVPAinitiative,andcomplementsongoingactivitiesbeencarriedoutaspartoftheVPAprocess.Recommendations:-

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1.4 LAO EnvironmentalConservationandCommunityDevelopmentAssociation

SupportlegaltimberproductionthroughimprovedcompetitivenessforsmallandmediumtimberprocessingenterprisesinLao

Objective:SupportSMEstoimprovetheircompetitivenesswithincreasedlegalcomplianceandimprovedproductioncapacitywithproductsfromlegaltimberObservation:Awell-presentedproposalthataimstotacklelegalityissuescreativelybyanalysisofthesupplychainandthedevelopmentofnewapproachesthroughhands-onmentoringanddiscussion.Recommendations:Somenecessaryadjustmentsneededduringcontractnegotiation.

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1.5 CAM ActionforSustainableDevelopment

Renforcementdelalégalitédanslemarchédomestiqueettransfrontalierduboisdanslarégionforestièredel’EstCameroun

Objective:HelpinformalsmallloggersandtraderstotransformthemselvesintolegalentitiesthathaveaccesstoresourcesandmarketsatdomesticandtransboundarylevelObservation:Overallaninterestingandinnovativeapproach.ItrepresentsalsoapriorityfortheGovernment.Theimplementationwillbequitechallenging,

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consideringtheverydemandingobjective.Recommendations:Morecoherencerequiredbetweenactivitiesandoutputs.

1.6 CAM FédérationCamerounaisedesAssociationsetdesProfessionnelsdelaSecondeTransformationduBois

Appuiàl’implicationdesartisansdeladeuxièmetransformationduboisdansleprocessusFLEGTetl’organisationdumarchéintérieurduboisauCameroun

Objective:DevelopafunctionalframeworkforalastingworkingrelationshipbetweensmallscalewoodusersofsecondtransformationandcommunityforestsObservation:Theprojectiswellformulatedandinteresting,inparticularunderresult1and2.Theresult3onthepromotionoftradeoffinishedproductsisprobablytooambitiousfortheNGOskills.Recommendations:Result3shouldbeentirelyeliminatedorscaleditdowntonationalpromotionalactivities.Thebudgetwouldneedtobescaleddownaccordingly.

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1.7 MMR MyanmarForestProductsMerchantsFederation

EmpoweringWood-BasedSMEsthroughParticipationandEngagementinVPAprocess

Objective:Strengthentheinstitutionalcapacityoftheprivatesectortomakevaluablecontributionstothelonger-termviabilityoftheindustryandVPAprocessObservation:Theproposalisrelevantandlogical;themethodologysuggestedisclearandfeasiblewithinthetime-frame.Theprojectwillcanvassviewswithinitsmembershipandtheprivatesectormorewidelyandalsoseekvalidationthroughinternationalcomparisons.Recommendations:Staffcostsandworkshopcostsappeartobeexcessiveandinadequatelydetailed.

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1.8 GAB SyndicatsdesForestiersAménagistesetIndustrielsGabonais

Secteurprivéetmobilisationenfaveurdel’APVauGabon

Objective:Betterrepresentasa"sector"anyissuesthatconcernmembersoftheplatform,whetherasmallbusinessoralargecompany,domesticorforeign-owned,includingtherevisionoftheForestryCodeandawareness-raisingactivitiesontheVPA.Observation:ProjectsubmittedbyaplatformcomposedbythreeGaboneseprofessionalassociations,SIAG,UFIGAandUFIAG.WellinlinewiththerenewednegotiationcalendaroftheVPAandtheintegrationofsmallentrepreneursandChineseloggingoperationsinawiderFLEGTapproachthroughadequateinformationsharingandcollaboration.Recommendations:Whilethepertinenceisconfirmedforsuchinitiative,theproposalneedstoberevisedinsomekeyaspects:thebudgetiswronglyaddedup,someactivitiesarenotpertinent,someimportantothersaremissingandcomplementaryinitiativesarenottakingintoaccount.

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1.9 DRC TropenbosInternational

Exploitationettransformationduboisartisanal:appuiàlacréationdepetites

Objective:Havingabetterunderstandingofthestructure,scope,incentives,economicsandmarketdynamicsrelativetotheprivatesector.Itwillsupportthecreationofmicro-

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entreprisesformellesetlégales

enterprisesandtheirinitialfunctioning.Observation:TheprojectiswellformulatedandtheproponentisanexperiencedimplementingagencythatalreadyimplementedtwopriorFAOprojectsinthearea.Recommendations:Budgetrevisionisnecessarytomakesomesavingsconsideringthattheprojectcanbuildonexistingprojectinfrastructure.

1.10 DRC AssociationdeCoopérationetSolidarité

Projetpiloted’appuiausecteurforestieràl’estdelaRDC(ProvincesduNordKivuetdel’Ituri)pourfavoriserl’exploitationlégaledubois

Objective:Promotionofcapacitiesofsmallartisanloggerstobecomelegalandpartnershipwithaprivatesectorcompanythatbuysclearlyidentifiedlegalityproducedhardwood.Observation:Wellformulatedproposalinacomplementaryregion(NordKivuandIturi)totheotherinterventionsoftheProgramme.Recommendations:ThebudgetneedtobemoretransparentonthesharebetweenFAOandcounterpartcontribution(WWF,Caritas,ETIFORandprivatesectorENRA).Theglobalambitionoftheprojectneedtobescaleddown.

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1.11 CAM FoodForestry,EnvironmentProtectionandConservationSociety

IntegratingcarpentersinalegaltimbervaluechainintheSouthregion

Objective:Downstreamlocalindustriesonlegalprocurementoftherawmaterialtimberandregulatinganimportantlocaleconomicsector.Observation:Honestproposalwithextremegoodeffectiveness/efficiencyratiowhichcanhavealsodemonstrationeffectsforotherregions.Recommendations:Tooambitiousespeciallyconcerningtheresult3‘’Atleast40%ofaddedvalueobtainedfromthesaleoflegallyverifiedfurniture’’.Modificationsneedtobedonewhennegotiatingthecontractwhichconsistsineliminatingeitherresult3entirelyortoscaleitdowntonationalpromotionalactivities.Thebudgetwouldneedtobescaleddownaccordingly.

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1.12 CDI AVSICôted'Ivoire Promotiondelalégalitéetdesbonnespratiquesenmatièredegestiondurableparlamiseenplaced'uncadred'échangeetformationentrelesclientsdel'UE,lesexportateursetlesPME

Objective:BuildcapacitiesofSMEstobetterenforcelegalityrequirements,improvestructurationofthesector,increasetheaccesstoEUmarketandstrengthentheirvoiceintheVPAprocess.Observation:Solidproposalwithgoodinnovationelement,overallfeasibleandimplementableinthetimeframeavailableRecommendations:-

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1.13 CAM Serviced’AppuiauxInitiativesLocalesdeDéveloppement

Miseenplaced’unSystèmedeVérificationCommunautairedela

Objective:Workontraceabilityoftimbercomingfromcommunal/communityforestsinonespecificregionofCameroon.Observation:Interestingproposalthatcan

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légalitédesboisdesForêtsCommunautaires

generateimportantnewinformationiftheprojectiswellimplemented.Theresultsoftheworkcanfeedthenationaltraceabilitysystemwithinformationonsmallforestproducersandcanalsohelptoimprovelocalunderstandingonlegalityissues.Recommendations:Themethodologicalsectionisnotsufficientlydeveloped.ThelinktoanongoingcommunityforestprojectfinancedbytheEUintheKadeyregionshouldbedone.

1.14 LAO LaoFurnitureAssociation

PrivateSectorleadingbetterpracticeforSmallholdersandSmallMediumEnterpriseslegalcomplianceintheplantationindustryofLaoPDR

Objective:CoordinatetheprivatesectordemandtoimproveandformaliselegalityprocessesforsmallholdersandSME’stoaccessmarketsObservation:Thisproposalmeetsaclearlyidentifiedneedandlaysoutalogicalandcomprehensiveapproachwhichshouldbefeasiblewithinthetimeframe.Itiswell-describedandincudesafocusontheimportantissueofcost-effectiveness.Recommendations:Budgetneedarevision.Thepresentationofthecostsfortheworkshopsisratherconfusing.ItwouldbeusefultohaveoutlineToRsfortheseandanindicativeprofilefortheconsultantthatwouldundertakeeachstudy.

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1.15 GUY ForestProductsAssociationofGuyana

BuildingtheawarenessandcapacityofprivatesectoroperatorstoparticipateintheVPAprocessinGuyana

Objective:VPAawarenessraisingofprivatesectoroperatorsintheforestrysector.Observation:Thisisaverywellconceptualisedproposalbutisseriouslyletdownbythepoorconversionoftheunderlyingideaintoausefulproject.Recommendations:Thisprojectneedsaseriousbudgetrevisiontoincreaseresourcesallocatedtothecoreactivitiesofawarenessraisingandskillsbuildingandcutinallotherexcessivelyexpensivecosts(openingandclosingevents,staffcosts,andtrips).

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1.16 GHA KumasiWoodClusterAssociation

EmpoweringSMEsthroughtrainingandsupervisionfortheireffectivecomplianceandactiveparticipationinVPAimplementation

Objective:TobuildtheoperationalandtechnicalcapacitiesofSMEstouseGhana’slegalitystandardsObservation:Thereisagoodideainthisproposalbuttheapproachneedscompletelyrethinkingifistobeeffective.Recommendations:Theprojectneedsconsiderablerefiningtogivemoretimetocompaniesandtotrainingevents,whichshouldbebasedaroundsmallergroups.ThebudgetneedtoberedesignedtoreducetravelcostsanditemssuchaslunchesandDSA.

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1.17 GHA GhanaTimberMillers’Organization

Strengtheningtheoperationalcapacityfortimberoperatorsforeffective

Objective:ToequipSMEswithpracticalknowledgeandskillsforeffectivecomplianceofVPAoperationalrequirementsObservation:Interesting,wellthoughtoutbut

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complianceofFLEGTVPA

poorlypresented.Coretrainingeventsaretooshortandhavetoomanyparticipants.Thebudgetrequestscoffee/lunchcostsalmostone-thirdofthetotalfunding;thisexemplifiesthecoreproblem.Logframeisavaliantattempt.TimberTradeBulletinisapossiblygoodideabutunclearonsustainabilityofthisandhowitcomplementsothersources.Recommendations:ThebudgetneedtoberevisedandthereisalsoapossiblyusefullinkwiththeproposalsubmittedbyGhanaForestryCommissionthatmightbeexplored.

1.18 CAM Centred’appuiàLaGestionDurableDesRessourcesNaturellesetauDéveloppementLocal

AméliorationdelagestioninternedelatraçabilitédesPMEforestières

Objective:TheprojectproposestodevelopanelectronictooltosupportSMEsinrespecttotraceabilityandcommitmentsintheframeworkofVPA.Observation:Wellformulatedproposalanduseful,howevertherearedoubtsthattheproponentcanfindtherightexpertisetoconductthecomplexmethodologicalwork.Efficiency/effectivenesslinkisnotveryfavourable,inparticulartheveryhighcostforpersonal.Allexpertisehastobeboughtin.Thequestionofsustainabilityofthetool(e.g.maintenance,updating)needtobementioned.Recommendations:ThisprojectcancreateconfusionwithactivitiesunderthelargerEUfundedprojectontraceability.Thetimingisnotadequateforsuchinitiative.ObjectionformulatedbytheEUDelegation.

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1.19 VIE TheCenterforEducationandDevelopment

PromotingprivatesectorengagementintheVPAprocess

Objective:Enhancetheunderstandingofandcompliancetolegalframeworks,topromotelegalproductionandbestmanagementpracticesthroughoutthetimberproductvaluechainObservation:ThisisagoodproposalthatidentifiesandpromotestheneedtoengagethesmallerprivatesectorplayersandalsoidentifiesthevalueoftheVPAintermsofimprovedforestgovernance.Recommendations:Theweightinggivenintermsofresourcesallocatedtothedifferentelementsseemspoorlybalanced.Thebudgetneedsadjustmentsalongthelinessuggestedbytheexpertsinordertobeacceptableforfunding.Thekeyaspectsthatneedrevisionaretogivemoreresourcestoknowledgetransfer,tostrengthenthesustainabilitysectionandtoreviewandrevisethebudgettoreducecostswerepossible,suchasundertravelanddissemination,andusetheresourcesreleasedforknowledgetransferevents.

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1.20 HON FundaciónHondureñadeAmbienteyDesarrollo(FundaciónVida)

EstudiodemercadodelosproductosforestalesysussubstitutosenHonduras:oferta,demanda,barrerasyplanparaincrementarelusodemaderalegal

Objective:Improvingdatatransparencytopromoteforestgovernanceandparticularlythetimberlegalityassurancesystem(TLAS)besidesanumberofwidereconomicissuesthatwillinformtheVPA-FLEGTprocessObservation:TheprojectiswellwrittenandaddressesanimportantconcernoftheVPAprocessinthecountry.TheworkproposedbyFundacionVidaisthereforemuchneededtobetterinformtheVPAprocessinHonduras.ResultsofthisprojectwillbeimportantforfinalnegotiationandproposedsigningofVPAmid-2016.Recommendations:Thebudgetneedtobelowered(perhapsaroundUS$60K)andwithaslightlyhigherproportionofthebudgetorientedtowardsfield-leveldatacollection.Theeffectiveness(studies)/efficiency(costs)ratioandthefactthatthestudieswillgooverthelongperiodof15monthswithconsiderablecostsfromFAOsideshouldbequestioned.Thetimeframeshouldberevised.TheroleofIUCNasabackstoppingsupportershouldbefurtherspecified.MoreemphasisshouldbegiventosynergieswithotherHonduranorganizationsthathaveexperienceandknowledgeinthefield.

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1.21 IND TheIndonesianFurnitureandHandicraftAssociation

EngagingVoluntaryPartnershipAgreementtoIndonesiaFurnitureandHandicraftindustryValueChain

Objective:IncreaseawarenessoffurnitureandhandicraftindustryvaluechainoftheimportanceoftheVPA.Observation:Thisisawell-conceivedproposalthatisneatlypresentedandappearsfeasiblewithinthetimeframe.Ithassomeinnovativeideas.Recommendations:Thestaffbudgetistoohighand,especiallygiventhatASMINDOstatesitwillprovidelongtermsustainability.Thenumbersattendingtheone-dayworkshopsaretoohigh.Thebudgetneedstobereframedtogivemoreopportunityforindepthdiscussions.LimitingtheprojectareastoJavawouldalsohelp.Thisisafundableproject,subjecttorevisionswithinthescopeofcontractnegotiation.

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1.22 LIB LiberiaForestryDevelopmentAuthority

StrengtheningthecapacityofWood-basedenergyproducingcommunitiestoensurethatproductionsareincompliancewiththeRegulationonSustainableWood-basedBiomassenergy

Objective:Ensurethatwood-basedbiomassenergyarelegallyproducedandtrade/marketingareincompliancewiththetermsandconditionsofthenewlyformulatedSustainableWood-basedBiomassEnergyProductionandMarketingRegulationinLiberiaObservation:Thisisavaluableproposalintermsofwhatitproposesbutascurrentlyformulatedneedofrefocusing.Thebudgetneedacompleterevisiontocutmotorcycles,

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productionandmarketing

portablemetalkilnsandpowersawsthatarecapitalexpenditurenoteligibleforsupportthroughthisgrantscheme.Recommendations:EquipmentrequiredwouldneedtobepurchasedseparatelybyFDAoradevelopmentbankoraCSOandlease-purchasedbycommunities.Thetrainingelementneedstobestrengthenedandanumberofitemsinthecurrentproposalreconsidered.Extraneousitemsshouldbeeliminated.

LOT2:SupportingtheVPAnegotiation/implementationprocess

2.1 MMR Fauna&FloraInternational

FLEGTpreparednessforCommunityTimberProducersInMyanmar

Objective:TestCommunityForestTimberLegalityOperationalProceduresthatwillallowthiscategoryoftimbertobeharvestedandtradedlegallyfromlicensedcommunityforestsinthedomesticmarket.Observation:Theprojectbuildsoncurrentwork.Highlyrelevant,veryclearlypresentedandwithacoherentandfeasiblestrategy.Recommendations:Thebudgetneedstobeslightlyrevised.

86.5

2.2 THA RegionalCommunityForestryTrainingCenterforAsiaandthePacific

Enhancingsmallholders'accessibilitytotimberlegalityandtradeforeffectiveimplementationofVPAprocessinThailand

Objective:ProduceinformedandconsolidatedlegalityrecommendationstoeffectivelyaddressthelegalandtenurechallengesforVPAimplementationObservation:Thisisawell-thoughtoutandclearlypresentedproposalthatisveryrelevantandimportant.Recommendations:Necessarychangesinthebudgetcouldbemadeduringcontractnegotiation.

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2.3 CAM ForêtsetDéveloppementRural

Miseenœuvredusystèmenormaliséd'observationindépendanteexterne(SNOIE)

Objective:Putinplaceanormalizedsystemofexternalindependentobservatory(IO).ItimpliesaconsolidationofthealreadyongoingsystemofIOconductedbyaconsiderablenumberofNGOsinthefunctioningIOnetworkinCameroonObservation:Thisprojectisapriorityinthecurrentcontextwherenoofficialindependentobserverisactive.Recommendations:Thebudgetshouldbecarefullyreviewedduringthecontractnegotiation.Thereisaproblematthelevelofefficiency:theFAObudgetispushedtothehighestpossibleamount.

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2.4 CDI WildChimpanzeeFoundation

ObservationIndépendanteMandatée(OIM),renforcementdescapacitésetcréationdesynergiesentrelesopérateursforestiers,lesagentsdela

Objective:Involvinggovernmentalagency(SODEFOR)andcivilsocietypartnersontheimportantissueofforestreservemanagement.Observation:Interestingproposalonanimportantissue.Wellformulatedandpresented,thoughoverallquiteambitious.Recommendations:Rolesandresponsibilities

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SODEFORetl’OIMpourunegestiondurabledesforêtsclassées

ofthe2mainpartners(SODEFORandWCF)willneedtobewelldefinedbeforethestartoftheproject.

2.5 HON AlianzaSustentabilidadEcológicayJusticiaSocial

Promocióndederechoscolectivos,gobernanzaterritorialyparticipacióndelospueblosindígenasenlosprocesosdeAVA-FLEGTenHonduras

Objective:Capacitybuildingandinformationsharingwithindigenouspeopleleadersand‘’afrohondureños’’communitiesonissuesrelatedtoindigenousrightsandtheobjectivesoftheVPAprocess.Observation:TheprojectfocusesonkeyprioritiesoftheVPA.Theproponenthastheauthorityandknowledgetoconductsuchwork.VeryambitiousresultshavebeenformulatedincludingamainstreamingoftheFPICapproachandamappingofindigenouspeopleterritories.TheprojectcancreatealotofsynergiesbetweentheFLEGTandREDDmainstreamapproaches.Recommendation:Theeffectivenessvsefficiencyrationeedtoberevised.Someimportantbudgetlinesareeitherunderestimatedorabsent.

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2.6 PRC CelluledelaLégalitéForestièreetdelaTraçabilité

Développementd'unmanuelsurletraitementdescasdenon-respectdesindicateursdelagrilledelégalitéAPV

Objective:Elaborateaproceduralguidelinesfornon-respectoflegalityandsanctions,andvalidatetheguidelinesandembeddingitintheinformationsystemforverification.Observation:Theproposalisreasonableandproposesanintegrativeapproachtodevelopproceduralguidelinesonalegalprocesswhichisneededsince2010.Recommendations:Budgettoohighconsideringtheshortperiodofimplementation(6months).Someexistingwork(thefirstdraftoftheManualalreadyexists)shouldbeconsidered.Activitiesneedtobere-orientedtotheawarenessraisingofthemanualandnotsomuchonthedevelopment.

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2.7 CAM WildlifeConservationSociety

SuividelaGestiondelaFaunedanslesconcessionsforestièresauCameroun(Phase2)

Objective:Supporttheconservationofanimalpopulationsinforestconcessions.ItincludesthemonitoringandevaluationofWildlifeManagementsystem(SEGeFprogramwhichisintegratedintotheSIGIFII),themonitoringanti-poachingusingtheparticulartoolSMART,trainingofforestagentsandstaffofforestconcessionsandstrategicmonitoringofwildlife.Observation:Clearlydefinedresultsandactivitiesbasedonasolidmethodologicalapproach.Amajoroutputwillbethedevelopmentofamanualthatdirectsadministrationinmonitoringofwildlifemanagement,alsotoestablishclosecooperationwiththedecentralizedservicesofMINFOF,forestconcessionairesandcommunal

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forestmanagers.Recommendations:-

2.8 CAR Centrepourl’InformationEnvironnementaleetleDéveloppementDurable

Appuiàlamiseenœuvredelastratégied’observationindépendantedesactivitésforestièresparlasociétécivilesuivantl’annexeIXdel’APV/FLEGT

Objective:DevelopthenecessaryframeworkforindependentobservatoryoflegalityintimbermanagementinCAR.Observation:Verypertinentandtimelyprojectinthecurrentcontext.AneventualofficialIndependentMonitoringwillnotbeinplacebefore2017.Thisprojectclearlyrespondtoanurgentneed.Recommendations:Alotofemphasisinthebudgetisgivento8OImissions.Whiletheactivitiesproposedarelogical,theindicatorsshouldbebetterformulated.Also,thesustainabilityaspectforcontinuingafunctioningindependentmonitoringshouldbedevelopedfurther.

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2.9 DRC OrganisationCongolaisedesEcologistesetAmisdelaNature

ObservationindépendanteetGouvernanceconcertéepouruncontrôleefficacedelalégalitédanslafilièredel‘exploitationforestièreartisanale

Objective:Strengthenindependentobservatoryforsmall-scaleloggers.Observation:Interestingandinnovativeidea.Recommendations:TerritorialoverlapwiththeproposedprojectofTropenbos,eventuallypossibilitytocreatesynergiesifbothprojectsgetfinanced.

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2.10 IND JURnaLCelebes StrengtheningIndonesiaIndependentForestryMonitoringNetworktoEnsureaCredibleTimberLegalityVerificationSystem(SVLK)andEffectiveVPAImplementation

Objective:AchievesituationwhereIndonesiancivilsocietycanplayacentralroleindevelopmentandimplementationofpoliciesrelatedtoforestgovernance.Observation:Thisisaveryinterestingproposalonatopicofgreatimportance,aimingtodocumentillegaltradeandtryandovercomesuspectedtimberlaundering.Recommendations:Theproposalisverycomplexforasmallprojectof15months'duration;ithas4Outputsand12Activities,althoughanumberofthesearerelativelyminorandcouldbesubsumedintobroaderonestosimplifythestructure.Theprojectwouldbebettertofocusonfewerlocalities,whichwouldreducethetravelcostsandallowmoreintensivework.Thebudgetneedtobedownscaled.

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2.11 IND YayasanBioma ScalingupSVLKtimbersupplyfromCommunityForestinEast-Kalimantan

Objective:ImproveforestmanagementandformalizetimberharvestingthroughcommunityforestryandtoassistcommunitiesinordertoreachSVLKcertificationinDistrictofMahakamUluandDistrictofKutaiKartanegara.Observation:Theproposalistimelyandrelevantbutseemstobeover-optimisticinrespectofwhatcanbeachievedwithinthe15monthtime-frame.Thetimeprovidedfortraining,two-days,isinsufficientevenfor"tech-savvy"youngsters.Thefundamental

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conceptsarevaluableandtheproposalgenerallywellthought-outbutthelogframeistooformulaicandlackssufficientqualitycontrolmeasuresduringtheprocessesleadingtotheoutcome.Recommendations:Theproposalshouldberevisedsufficientlyaspartofcontractnegotiation.

2.12 LAO NationalUniversityofLaos

BuildingCapacityforTimberSpeciesIdentificationtoStrengthentheTimberLegalityAssuranceSysteminLaoPDR

Objective:Toimproveknowledgeandexpertiseontimberidentificationamongthoseresponsibleforcheckingtimbertraffic,especiallyknowledgeofhighvalueandprotectedspecies.Tobuildwoodidentificationcapacityinanationalcentreandineducationalinstitutions.Observation:Theproposalistryingtodotoomanythingswithinalimitedbudget.Recommendations:Theproportionofresourcesdevotedtothetrainingthetargetpersonnelistoolimited.Thecriticalelementsforthiswouldbesubstantialtraininginsmallergroupsthanproposedandperhapsclosetokeylocations,supportedbyreferencematerial.Thebudgetforequipmentisexcessiveandunnecessaryandneedsamoredisciplinedreview.

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2.13 GUY AmerindianPeoplesAssociation

Promotingcommunity-basedmonitoringoftimbertradelegalityinGuyana

Objective:ToenableAmerindianvillagesinGuyanatodesign,developandtestapproachestocommunity-basedindependentmonitoringObservation:Potentiallyvaluableprojectwithmanyusefulideas.Asthisprojectiscurrentlypresented,wearescepticalastoitsusefulnessatthecurrentleveloftheVPAnegotiationsasitisquiteconfrontational.Recommendations:ItisrecommendedtoconditionallyaccepttodevelopanindigenousmechanismofIFMbutwithintheboundsofthecurrentlegalstructure.Theproposedsystemwouldhavetobeveryclearandrealisticonwhattheywouldmonitor–notjustvagueimplementationoftheVPAandLAS.ThereisnoIFMbyindigenouspeopleinGuyanasothiswouldbeausefulstartingpoint.Thebudgetwillneedtobereducedaswellasthescopeofwork.

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2.14 HON FundaciónDemocraciasinFronteras

LaPlataformadeGobernanzaAmbientaldeOlanchogeneramayorparticipacióndeactores,contribuyeconpropuestasenlasnegociacionesAVAFLEGT

Objective:ImproveparticipationofstakeholdersintheVPAnegotiationObservation:Theprojectisoverambitiousandabitvague.Ithasastrongemphasisonawareness-raisingandcommunication,butthereislittleattentiononhowtogeneratetheinformation.Itisalsoquestionablewhatkindofinformationsharingactivitiesthisprojectcanreallyundertakeatthecurrentstageof

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slowprocess.Ontheotherhand,gainingconsensusoncertainelementsoftheVPAarestillmuchneededinthisfinalrunuptosigningtheagreement.FDsFiswellpositionedtoleadonthiscollaborationastheyalreadyhavea“leadership”roleamongmulti-stakeholderplatformsandstronglinkstothegovernment.Recommendations:ItisrecommendedtoapprovetheprojectbutwithcaveatthatitwillbeforasignificantlyreducedbudgetandtimeframetofocusonarevisedResult1:ENCTIimplementationandmulti-platformdialoguetofeedintothefinalnegotiationanddesignoftheVPA,withclearmethodologyinthecontractregardinghowinformationwillbegeneratedanddisseminated.

2.15 IND AURIGA/WorldResourcesInstituteIndonesia

SupportingImplementationoftheVoluntaryPartnershipAgreementandFLEGTActionPlanbyStrengtheningCapacitiestoDetectandSuppressForestrySectorCorruption

Objective:StrengthenimplementationandcredibilityoftheSVLKsystemandtheVPAprocess,andincreaseincentivesforduediligencebyforestrysectoractors,byincreasingthecapacityandlevelofeffortintheforestrysectoroftheCorruptionEradicationCommission(KPK),relatedenforcementauthorities,andselectNGOstoexposeandcombatcorruptionandotherirregularities.Observation:Theproposalrelatestoanimportantaspectofcontrolofillegalloggingbutprovidesextremelylimitedinformationbeyondthebackgroundandjustificationfortheproject.Recommendations:-

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5. Expertpanelgeneralrecommendations

TheexpertpanelmembersrecommendthePMUtakeintoaccountthefollowingobservationswhendevelopingtheLettersofAgreementforendorsedproposals:

Gender section:Despite all proponents acknowledged the relevance of the topic, no one offeredclear insight and considerationonhow they intend to address the issue in their proposals, apartfrom generic reference to ensuring equal representation for women and youth in their projectimplementation.The panel recommended to include in the next call for proposal format a section in whichproponentscandescribetheirpastperformancewithregardstogender/youthinclusion.Thiscanbeused as amore telling indicationof theproponent’s actual record and attention to gender/youthissuesandcouldbefurtheremployedasaparameterintheselectionofpotentialcandidates.Reiteratingtheimportanceofensuringbalanceofgenderandagestructurecannotbeconsideredasa sufficient sign of commitment to overcome this problem. Proponents should be encouraged tocomeupwithconcreteactionstoachievetheirwrittencommitments.


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Logframe:Forthesakeofconsistencythepanelrecommendedthatproponentsaligntheir logicalframeworkstotheactivitiespresentedinthebudgetwhilenegotiatingtheworkplanwiththePMU.It is importantthattheproponentsclearlydemonstratehowthebudgetwillbeusedtoundertakethe activities listed in the logical framework and the budget break-down is fully justified andmatchesthemostimportantactivitiesinthelogicalframe.Framing the proposals in terms of “behavioral change”: The panel recommended encouragingproponents to creatively reflect in terms of long-term incremental and behavioral changes whileformulatingtheirproposals.IndeedtheimplementationoftheFLEGTActionPlanrequiresalongerterm vision that cannot be fulfilled with short-minded ad hoc interventions. To achieve thisobjective,itwouldbeusefulandmoreeffectiveforproponentstodeveloptheproposalsaroundarisk/assumption framework that could help identify and prioritize interventions based on thelikelihood of actually achieving those expected changes. From an FAO standpoint having arisk/assumption framework of reference can also promote a better understanding of necessarystepsandpreferredactionstoguidetheformulationofproposalsastoensurethemostsuccessfulimplementationoftheFLEGTActionPlan.Encouragescalablesolutions:This isparticularlyrelevantwhendealingwithSMEswhosefinancialcapacitymaybenefitfromincreasingthesizeoftheinterventions,perhapsbygroupingwithotherSMEs toachieveacertainoutcome inamorecost-effectiveway, through“economiesof scale”.ArecurrentargumentthatemergedfromtheproposalevaluationwastheextensiveupfrontcoststhatespeciallySMEswouldneedtobeartopilottheirproposedprojectsolutions.

Buildonlessonslearned:Inordertoallocatefundsmoreefficientlyandintheabsenceofanimpactmonitoring system, theprospectiveproponents that have already received financial support fromthe Programme should provide a detailed account of previous milestone or outcomes achievedthroughtheProgrammefunds.Theyshouldclearlyemphasizethecausalrelationsbetweentheuseofthefundsandanyintendedincrementalpositiveornegativechangethatmighthaveoccurredasa resultof the support received. Systematically and constructively reflectingupon lessons learnedalsoenablesproponentstopresentmorerelevantsetsofactivitiesthatcanbuilduponthesuccessandfailureofpreviouslyimplementedinterventions.

The programme should urge such a reflection already at the early stage of the concept notepresentation.


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Listofall66proposalsrankedbyscore

Country ProponentAcronym

Proposaltitle Score

MMR FFI FLEGTPreparednessforCommunityTimberProducersInMyanmar

86.5

VIE IPSARD ScatteredTimberSourcesinVietnamandPotentialDevelopmentundertheVPAwithEuropeanUnion

83.5

GHA FoE-Gh InfluencingSustainableMarketPoliciesthroughInnovativeSocio-TechnicalSolutions

82.5

HON FEHCAFOR ApoyandoeldesarrollodeunSistemaNacionaldeRastreabilidad,ControlyVerificacióndelaMaderaqueseaequitativoyviableparalaspequeñascooperativasqueconformanelsectorcomunitariodelPaís

81

THA RECOFTC Enhancingsmallholders'accessibilitytotimberlegalityandtradeforeffectiveimplementationofVPAprocessinThailand

80.5

LAO ECCDA SupportlegaltimberproductionthroughimprovedcompetitivenessforsmallandmediumtimberprocessingenterprisesinLaoPDR

80

CAM ASD Renforcementdelalégalitédanslemarchédomestiqueettransfrontalierduboisdanslarégionforestièredel’EstCameroun

77.5

CAM FECAPROBOIS Appuiàl’implicationdesartisansdeladeuxièmetransformationduboisdansleprocessusFLEGTetl’organisationdumarchéintérieurduboisauCameroun

77

CAM FODER Miseenœuvredusystèmenormaliséd'observationindépendanteexterne(SNOIE)

77

MMR MFPMF EmpoweringWood-BasedSmallandMediumEnterprises(SME)throughParticipationandEngagementinFLEGTVPAprocess

77

CDI WCF Réplicationdel’ObservationIndépendanteMandatée(OIM),renforcementdescapacitésetcréationdesynergiesentrelesopérateursforestiers,lesagentsdelaSODEFORetl’OIMpourunegestiondurabledesforêtsclassées

76

PRC CLFT Développementd'unmanuelconsensuelsurletraitementdescasdenon-respectdesindicateursdelagrilledelégalitéAPV-FLEGT

76

HON ALIANZAVERDE Promocióndederechoscolectivos,gobernanzaterritorialyparticipacióndelospueblosindígenasenlosprocesosdeAVA-FLEGTenHonduras

76

DRC TBI Exploitationettransformationduboisartisanal:appuiàlacréationdepetitesentreprisesformellesetlégales

75.5

DRC ACS Projetpiloted’appuiausecteurforestieràl’estdelaRDC(ProvincesduNordKivuetdel’Ituri)pourfavoriserl’exploitationlégaledubois

75.5

GAB SIAG Secteurprivéetmobilisationenfaveurdel’APVauGabon 75.5CAM FFE-PCS IntegratingcarpentersinalegaltimbervaluechainintheSouth

region75

CDI AVSI Promotiondelalégalitéetdesbonnespratiquesenmatièredegestiondurableparlamiseenplaced'uncadred'échangeetformationentrelesclientsdel'UE,lesexportateursetles

74.5


150


Proposaltitle Score

PetitesetMoyennesEntreprisesivoiriennesCAM SAILD Miseenplaced’unSystèmedeVérificationCommunautairede

lalégalitédesboisdesForêtsCommunautaires74

LAO LFA PrivateSectorleadingbetterpracticeforSmallholdersandSmallMediumEnterpriseslegalcomplianceintheplantationindustryofLaoPDR

74

CAM WCS SuividelaGestiondelaFaunedanslesconcessionsforestièresauCameroun(Phase2)

73.5

CAR CIEDD Appuiàlamiseenœuvredelastratégied’observationindépendantedesactivitésforestièresparlasociétécivilesuivantl’annexeIXdel’APV/FLEGT

73

DRC OCEAN ObservationindépendanteetGouvernanceconcertéepouruncontrôleefficacedelalégalitédanslafilièredel‘exploitationforestièreartisanaledanslesterritoiresaffectés

72.5

GHA KWC EmpoweringSmall-MediumForestEnterprisesthroughtrainingandsupervisionfortheireffectivecomplianceandactiveparticipationinVPA/FLEGTimplementation

72.5

GUY FPA BuildingtheawarenessandcapacityofprivatesectoroperatorstoparticipateintheVPAprocessinGuyana

72.5

IND CELEBES StrengtheningIndonesiaIndependentForestryMonitoringNetworktoEnsureaCredibleTimberLegalityVerificationSystem(SVLK)andEffectiveVPAImplementation

72.5

CAM CAGEDEL AméliorationdelagestioninternedelatraçabilitédesPMEforestières

71.5

GHA GTMO StrengtheningtheoperationalcapacityfortimberoperatorsforeffectivecomplianceofFLEGTVPA

71.5

HON VIDA EstudiodemercadodelosproductosforestalesysussubstitutosenHonduras:oferta,demanda,barrerasyplanparaincrementarelusodemaderalegal

71.5

VIE CED PromotingprivatesectorengagementintheVPAprocess 71.5LIB FDA StrengtheningthecapacityofWood-basedenergyproducing

communitiestoensurethatproductionsareincompliancewiththeRegulationonSustainableWood-basedBiomassenergyproductionandmarketing

71

IND ASMINDO EngagingVoluntaryPartnershipAgreementtoIndonesiaFurnitureandHandicraftindustryValueChain

71

IND BIOMA ScalingupSVLKtimbersupplyfromCommunityForestinEast-Kalimantan

71

LAO NUoL BuildingCapacityforTimberSpeciesIdentificationtoStrengthentheTimberLegalityAssuranceSysteminLaoPDR

71

GUY APA Promotingcommunity-basedmonitoringoftimbertradelegalityinGuyana

70.5

HON FDF LaPlataformadeGobernanzaAmbientaldeOlanchogeneramayorparticipacióndeactores,contribuyeconpropuestasenlasnegociacionesAVAFLEGT

70

IND WRI SupportingImplementationoftheVoluntaryPartnershipAgreementandFLEGTActionPlanbyStrengtheningCapacitiestoDetectandSuppressForestrySectorCorruption

70


151


Proposaltitle Score

PRC AMC RenforcementdescapacitésdesébénistesduCongopourl'accèsauboislégal,leursformalisationsetlatraçabilitédeleursproduitsfinis

69.5

IND LEI Developthetimbertraceabilityinsmallandmediumscaleenterprise(SME)ofwoodindustriesbycombiningtheIndonesiaTimberLegalityAssuranceSystem(ITLAS)withtheIndonesianEcolabellingInstitute-ChainofCustodyCertification(LEI-CoC)

69.5

GHA TIDD UpscalingArtisanalMillingtoimprovethesupplyoflegallumbertothedomesticmarket

69

GHA RESCONI SupportingSupplyofLegalTimbertotheDomesticMarketthroughtheDevelopmentofTimberDepots

68.5

GHA GFC BuildingthecapacityoftheCoalitiononDomesticLumberSupplyinGhanaforthesupplyandproductionofLegalTimberintheWoodProductValueChainforafunctionalVPA

68

CAM IUCN Establishingabenchmarkagainstwhichtomeasurechangesinforestgovernance,includinglevelsofillegalloggingandtrade,catalysedbytheFLEGTVPAinitiativeinCameroon

67.5

DRC DCVI Auditdusystèmedecontrôle,devérificationettraçabilitéduboisetmiseenplaced’unsystèmepilotederécoltededonnéesparapplicationsmobilespourlesuividubois

67.5

GHA WG BuildingsynergybetweenGhana’svoluntaryforestcertificationandFLEGT-VPAtoacceleratelegaltimberproductioninthecountry

67

GHA TBI-GH StrengtheningRegulatoryMechanismsonOverlandtimbertradeforenhancedFLEGT/VPAimplementationinGhana

66.5

CAM SAPED Promotiondel’offreetdelademandeenboislégaldanslesmarchéspublicsauCameroun

65

DRC OGF Miseenœuvred’uneObservationIndépendantedelamiseenapplicationdelaloiforestièreenRépubliqueDémocratiqueduCongo

65

CAM CEW ImplicationdesmenuiseriesetdesdépôtsdeboisdelavilledeYaoundédansladynamiquedel’APV-FLEGT

64

GHA TCi PrivateSectorLegalityTrainingandLegalWorkingGroup(PSLWG)

63.5

HON CONADEH DesarrollodeinstrumentosdeverificacióndelosproductosmadererosconlaparticipacióndelosactoresqueconllevealaestructuracióndelSistemaparaAsegurarlaLegalidaddeHonduras(SALH)

63.5

CAR CODICOM Projetd’appuiàlaréglementationetàlastructurationdelafilièreartisanaleduboisenRépubliqueCentrafricaine

63

CDI MINEF Appuiaurenforcementdescapacitésetàl'améliorationdelacollaborationentrelesecteurprivéetl'Administrationsurlessujetsdelégalitéettraçabilité

62.5

THA KUFF EngagingThailand’ssmallproducersinlegalandsustainablesupplychains

62.5

LIB GAI EnsuringthattheLiberiaChainSawregulationandthedomesticchainsawsectorareinharmonywiththeimplementationoftheLiberianVPAprocess

62


152


Proposaltitle Score

GHA RUDEYA TowardsTheEstablishmentOfCivilSociety/CommunityLedIndependentMonitoringMechanismsInSupportOfTheVoluntaryPartnershipAgreementProcesses.

61.5

CDI AOE Extensiondeladynamiqued’observationindépendanteauseindescommunautésriverainesdesconcessionsforestièresdudomaineruraldanslarégionduTonkpi

60.5

CAM FLAG Appuiàlaproductionetàl’utilisationdesinformationsforestièrespertinentespourlamiseenapplicationdesloisforestières,lagouvernanceetlecommercedubois

60

GHA UCC AlternativeLivelihoodOpportunitiesforForestFringeCommunitiesandCapacityBuildingforSustainableforestResourceManagementinGhana

60

GAB AGNU Mobilisationenfaveurdel’APVetappuiàlagouvernanceauniveaulocal

58

CAM RFC Appuiàlamiseenplaceetàl'opérationnalisationd'uneconfédérationnationaledesForêtsCommunautaires

57

CAR ODE GouvernanceetobservationindépendanteexternedanslaforêtdeproductionenRépubliqueCentrafricaine(RCA)–enparticulierdanslaMambéré-KadeietlaSangha-Mbaéré

57

DRC GASHE Appuiàl’observationindépendantecommunautairedanslaluttecontrelesillégalitésdel’exploitationforestièreindustrielledansl’ancienneProvincedel’EquateurenRDC

56.5

CDI CAVIE Consultationdespopulationslocalesdesaxesforestierssurlaloiportantcodeforestier

50.5

IND YMI IndependentMonitoringStrengtheningforSVLKImplementationinSumateraRegion

48.5

HON ANASILH Proyectodefortalecimientodelascapacidadesdelfomento,legalidad,comercioygobernanzaforestaldelossilvicultoresorganizadosenlaAsociacióndeSilvicultoresdeHonduras

45


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ExpertPanelTermsofReference

Objective

TheFAOFLEGTProgrammeisseekingprojectevaluationexpertswithstrongknowledgeinforestlawenforcement,governanceandtrade,andtoserveontheExpertPanelresponsibleforthereviewofproposals.

Context

TheFAOForestLawEnforcement,GovernanceandTrade(FLEGT)Programme,startedin2015andfundedthroughtheEuropeanCommission(ContributionAgreementGCP/GLO/600/MUL),andothernational Donors (UK DfiD, Swedish SIDA) support eligible country government, civil society andprivate sectororganizations to implementprojects that address FLEGT-related issues.Projects areawardedthroughacompetitivecall forproposals.Submittedproposalsarescreening foreligibilitybytheProgrammeManagementUnitandscoringbytheExpertPanel.Seeprogrammewebsiteforadditionaldetails(http://www.fao.org/forestry/fao-flegt/en/).ThisTermsofReferenceoutlinestherequirements of the expert panel members to complete the evaluation of proposals submittedthroughthecallforproposals.

Responsibilities

UnderthesupervisionoftheProgrammeManger,theExpertPanel isresponsibleforthetechnicalreview and evaluation of proposals received under the “call for proposals” and for drafting theExpertPanelReport.

Tasks

All submittedprojectsareuploaded inanonlinedatabasewhichcanbeaccessedbyExpertPanelmembers through internet. The database provides for online information about the proposal,proponent, a copy of the proposal and the budget. All information can be downloaded andreviewed via this onlineprocess. Online scoring formsare available for eachproposal.Using thissystem,eachExpertPanelmemberswillworkindividuallyandasagrouptocompletethefollowingtasks:

1. Evaluateeachproposalandprovide:a. ascoreandobservationspercriterion;andb. anoveralldescriptionof thequalityof theproposal includingasummary listof its

strengthsandweaknesses.2. Reconcileoutlyingscoresoranyissuesarisingduringtheevaluationprocess.3. Finalizescoresforeachproposal4. ProvidealistofrecommendproposalsthatshouldbeconsideredforfundingbytheSteering

Committee5. ContributetoafinalExpertPanelReportthatwillcontainatleast:

a. generaloverviewoftheevaluationmethodology;b. resultsandrecommendations fromtheExpertPanel (includingashortexplanation

forselectionofeachprojectrecommendedforfunding);


154

c. comments to the ProjectManagementUnit on the effectiveness and efficiency ofthe proposal selection process and recommendations for improvements, asappropriate;and

d. anannexwith thescores forallprojects, the recommendedaction regardingeachproposal (recommended for funding – not recommended for funding) andobservations.

6. TheLeadExpertPanelmemberwillberesponsibleforcompilingcommentsandcompletingthefinalExpertPanelReport.

Methodologyoverview

� All proposals will be uploaded into the online database system by the ProgrammeManagementUnit. EachExpertPanelmemberswill receiveanaccesscodeandpasswordfromtheProgrammeManagementUnit.

� EachExpertPanelmemberwillbeassignedalistofproposalstoreviewbytheProgrammeManager.

� Eachproposalwillbereviewedandscoredbyatleast2panelmembers.� ScoresfromthetwoExpertPanelmembersareautomaticallycompiledandaveragedbythe

databasesystemandalistofproposalsscoring70orhigherwillbeautomaticallygenerated.� Panelmemberswillwork throughemail,onlinedatabaseandphonecalls tocomplete the

tasksassignedintheTermsofReference.� The Programme Manager will coordinate online fora as required to facilitate

communicationswithandbetweenExpertPanelmembers,howeverallPanelMembersareexpectedtoestablishcommunicationsasrequiredtocompletetheTermsofReference.

Contractduration

TheExpertPanelmembercontractswillbebasedondaysworkedduringaspecifiedperiodandwillbedeterminedbasedonthetotalnumberofproposals tobeevaluated.There is thepossibilitytoextendthecontractforsubsequentproposalevaluationcycles.

Worklocation

ExpertPanelmemberswillevaluateproposalsfromtheirofficeandareexpectedtobeavailableforconference calls or during other scheduled working sessions. Any required travel during thiscontract period will be approved prior to travel and covered through the FAO-FLEGT SupportProgramme.

Qualifications

1. University degree (MS or PhD) in Forestry, Economics, Anthropology, Social Sciences orrelatedfield

2. Demonstratedunderstandingofsmalltomediumsizedprojectevaluation,developmentandmanagement

3. Stronganalyticalandevaluationcapacity4. Knowledge of FLEGT-related issues and experiencewith implementation of FLEGT-related

initiatives5. Abilitytoprepareclearandconcisecommentsonproposalsanddraftreports6. Ability towork in English and at least one of the other programme languages (French or

Spanish)


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ExpertPanelmemberbiographies

Blaser Jürgen Dr, BAMA PhD, is Professor for International Forestry and Climate Change at theSchoolforAgricultural,ForestandFoodSciencesoftheBernUniversityofAppliedSciencesandalsoactsastheGlobalAdvisoronForestsandClimateChangetotheSwissAgencyforDevelopmentandCooperation. Between2002and2011hewas theheadof the Forest andEnvironment TeamandVice-DirectorofSwiss Intercooperation.From1996 to2001hewasSeniorForestryAdvisorat theWorld Bank. Previously, he worked for more than 15 years in international forest developmentcooperation with assignments in Latin America, Africa, Asia and Russia. He was chair of theInternationalTropicalTimberOrganisationandledthedevelopmentoftheStatusofTropicalForestManagementReports2005and2011forITTO.Morerecently,hehasadvisedtheWorldBankonthedesign of the Forest Investment Programme, and was a core member of the Technical AdvisoryPanelfortheForestCarbonPartnershipFacility.HealsoledtheexternalevaluationofFAO’sworkinforestsandforestry in2011-2012.JürgenBlaserhaspreviouslyservedontheBoardsofCIFORandTropenbos, and is currently serving on the Board of the Tropical Forest Foundation and theSustainabilityPanelofPreciousWoods.

BlundellArthurGDr,PhD(NaturalCapitalAdvisors,LLC) ledtheUN’sPanelofExpertsmonitoringsanctions,includingtimber,inLiberiafortheSecurityCouncilintheearly2000s.Hecurrentlyworkswith the Government of Canada and the Indonesian Corruption Eradication Commission oninternational best practices in governance of mining, and with Forest Trends on forestry reformpost-conflict/post-transition from military dictatorship. He has worked with the AfricanDevelopment Bank to incorporate forestry into the Extractive Industries Transparency Initiative(EITI); with FAO on forest governance monitoring; with the World Bank's Profor on conflict andforestry; andwith Transparency International on anti-corruptionmonitoring. He has a PhD fromDartmouth College where he had a Fulbright Scholarship, conducting research in Kalimantan,Indonesiainthe1990s.

DelGatto Filippo,has lived andworked in Latin America formore than 20 years. A forester andeconomist by training, in the 1990s his worked focused mainly on supporting community-basedforestenterprises,while in thepast15yearshegotprogressivelymore involved inpolicyanalysisand forest governance issues. In recent years, following Honduras’ decision to simultaneouslyengage in REDD+ and FLEGT processes, Filippo has worked closely with several Honduranorganizations,supportingtheirengagementinbothinitiativesandprovidingtrainingonindigenousrights,landtenureissues,andlivelihoodimpactassessments.

HardcastlePatrickDr,BSc(For)MScMBAFICForisaBritishforesterwithover40years’experienceof forestry worldwide and is a well-known and highly respected figure in international forestrycircles and in many forestry departments around the world. He worked for theMalawi ForestryDepartmentfor12years,thenspent10yearsteachingatuniversitylevelatOxfordandatAberdeen.He has been an international consultant since 1991working for awide range of clients includingbilateral andmultilateral donors, commercial enterprises and civil society organizations. His wideexperience encompasses temperate and tropical plantations and natural forest management,economicsandplanning,ruraldevelopmentforestry,institutionalchange,nationalandinternational


156

policyandrelatedprocesses.Hebringsclearunderstandingofthelinkagesfromforestleveltopolicylevel as well as of the place of forestry in wider environmental and national developmentframeworksandhasrecentlybeenincreasinglyinvolvedinclimatechangerelatedissues.

HehasextensiveexperienceofprojectandprogrammeM&Eandofworkingonprojectassessmentpanels, includingforDFIDForestryResearchProgrammeandCongoBasinForestryFund, ITTO,theUKDarwinInitiative,EU,FAOandtheScottishGovernment’sInternationalDevelopmentFund.Heiscurrently overall team leader of the Real-time Evaluation of Norway's International Climate andForestInitiative.

Noiraud Jean-Marie is a tropical agronomist engineer and consults as a planning specialist. Mr.Noiraud hasworked for 28 years in nine countries of COMIFAC in Central Africa and has lived inBurundi, Equatorial Guinea and Cameroon. Based in Yaoundé, he manages a consulting firmspecializedinplanning,ruralandsustainabledevelopment,forestryandagriculturewithprojectandsurvey teams. He provides planning support to forestry policy development for COMIFAC andmemberstatesandvariousdonorstoprepare,evaluate,design,monitorforestryandconservationprograms and projects. His firm is also contracted to provide technical support to private forestcompanies on environmental impact surveys and FSC processes, and with conservation anddevelopmentNGOtoplananddraftactivities.Recently,insupportofFLEGTactivities,Mr.NoirauddevelopedthelegalitymatrixinCameroontoassistthegovernmentpreparefortheVPAnegotiationprocess and managed a multitude of meetings and workshops addressing FLEGT, AFLEG, FSC,sustainable forest management policy, strategy and operational planning in Central Africancountries.

ThisactivityisfundedbytheSwedishInternationalCooperationAgency,theUnitedKingdomDepartmentforInternationalDevelopmentandtheEuropeanUnion.TheviewsexpressedhereincaninnowaybetakentoreflecttheofficialopinionoftheSwedishInternationalCooperationAgency,theUnitedKingdomDepartmentforInternationalDevelopmentorthe

EuropeanUnion.

phhasse iii · production, marketing and trade of legal timber has increased. outcome 4:...

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