Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 9005-KE

STAFF APPRAISAL REPORT

KENYA

FORESTRY DEVELOPMENT PROJECT

NOVEMBER 19, 1990

Operationsica Department.on

s a restricted distribution and may be used by recipents only In the perfonnane of's. Its contents may not otherwise be disdosed without World Bank auth_zaton.

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

CURRENCY EQUIVALENTS

Currency Unit . Kenya Shilling (KSh)KSh 20 - Kenya Pound (KE) 1US$ 1.00 - KSh 22.50 (March 1990)KSh 1.00 * US$ 0.0444US$ 1.00 . SDR 0.695 (October 31, 1990)

WEIGHTS AND MEASURES

Metric System

ha - hectareskm - kilometers1 - litresm - million

ABBREVIATIONS AND ACRONYMS

DFEO - Assistant District Forest Extension OfficerFDB - African Development Bank[DAB - Australian International Development Assistance BureauPM - Assistant Project Manager;AL - Arid and Semi-Arid Lands,AO - Agricultural Sector Adjustment Operation

iP - Annual Work ProgramEDA - Canadian International Development AgencyWIDA - Danish International Development Agency

- District Conm.'ssionerDC - District Development Committee

)F - Deputy Director of Forestry)h - Diameter at breast heightEVFEO - Divisional Forestry Extension Officer

EC - European Economic Community.k0 - Food and Agriculture Organization&'SD - Forestry Extension Services Division

- Forest DepartmentENNIDA - Finnish International Development Agency4p - Forestry Master Plan

K - Government of Kenyarz - Deutsche Gesellschaft fur Technische Zusammenarbeit GmbH

(Federal Republic of Germany)FD - Industrial Forestry DivisionECA - Japanese International Cooperation AgencyUIU - Kenya African National UnionkRI - Kenya Agricultural Researc3 Institute.FRI - Kenya Forestry Research InstituteFC - Kenya Forestry College

;.I - Mean Annual IncrementED - Ministry of Education

FOR OFFICIAL USE ONLY

MENR - Ministry of Environment and Natural ResourcesMOA - Ministry of AgricultureMOE - Ministry of EnergyMOF - Ministry of FinanceMPND - Ministry of Planning and National DevelopmentMRD - Ministry of Regional DevelopmentMRDASAW - Ministry of Reclamation and Development of Arid, Semi-Arid and

WastelandsMRST - Ministry of Research, Science and TechnologyMWT - Ministry of Wildlife and TourismNFMD - Natural Forest Management DivisionNGO - Non-Governmental OrganizationNORAD - Norwegian Agency for International DevelopmentNZDA - New Zealand Development AgencyODA - Overseas Development Administration (UK)OP - Office of the PresidentPIT - Project Implementation TeamPM - Project ManagerPPF - Project Preparation FacilityPPM - Panafrican Paper MillsPSC - Project Steering CommitteePSU - Project Service UnitRAES - Rural Afforestation Extension ServiceRTDS - Rural Tree Development Support ProjectSCF - Standard Conversion FactorSDC - Swiss Development CorporationSIDA - Swedish International Development AgencySOE - Statement of ExpenditureTA - Technical AssistantTO - Technical OfficerUSAID - United States Agency for International Development

GOVERNMENT FISCAL YEAR

July 01 to June 30

This document has a restricted distribution and may be used by recipients only in the performance||of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.|

KENYA

FORESTRY DEVELOPMENT PROJECT

Table of Contents

Page No.

CREDIT AND PROJECT SUMHARY.. . . . . . . . iv

I. BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

A. Project Background . . . . . . . . . . . . . . . . . . . . . . 1

II. THE FORESTRY SUBSECTOR .... . . . . . . . . . . . . . . . . .. . 5

A. Main Features .... . . . . . . .5..... . . . . . . . . . SB. Main Subsector Issues ... . . . . . . . . . . . . . . . .. 8C. Linkages with Key Socio-Economic Areas . .. . . . . . . . . . 9

D. Government Subsector Development Objectives and Strategy . . . 11

E. Past Bank Group Experience with Forestry Projects . . . . . . . 11

F. Rationale for Bank Involvement ... . . . ... . . . . . . . 13

III. THE PROJECT .... . . . . . . . . . . . . . . . . . . . . . . . . 13

A. Project Objectives . . . . . . . . . . . . . . . . . . . . . . 13

B. Summary Project Description ... . . . . . . ..... . . . . 14

C. Detailed Project Features . . . . . . . . . . . . . . . . . . . 15

(a) Farm Forestry Extension ... . . . .1.5... . . . . . . lS(b) Indigenous Forest Management and Conservation . . . . . . 17

(c) Industrial Plantations Development . . . . . . . . . . . 20

(d) Strengthening of FD's Central Functions . . . . . . . . 22

(e) Forestry Education - Kenya Forestry College Londiani . 24(f) Forest Research - Kenya Forestry Research Institute

(KEFRI) ........................ . 24D. Project Costs .... . . . . . . . . . .. ..... . . . . . 26

E. Financing .... . . . . . . . . . . . ...... . . . . . . 27

F. Procurement .... . . . . . . . . . . ...... . . . . . . 28

G. Disbursements .... . . . . . . . . . .. .... . . . . . . 31

H. Accounts and Audit .... . . . . . . . . . .... . . . . . 32

IV. PROJECT IPLEMENTATION .... . . . . . . . . . . . . . . . . . . . 32

A. General .... . . . . . . . . ..... . . . . . . . . . . . 32

B. Organization and Management ... . . . . .... . . . . . . . 33

C. Annual Work Program (AWP), Reporting, Monitoring, andEvaluation .... . . . . . . . ..... . . . . . . . . . . 35

D. Reviews .... . . . . . . . . ..... . . . . . . . . . . . 35

E. Status of Project Preparation ... . . . ..... . . . . . . 36

This report is based on the findings of an appraisel mission which visited Ktnyw in March-April 1990, compriainp Mr. C. Keil. Ms.V. Li, and Mr. E. Asibey (IDA); and Messrs. Z. ul Hasan (IDA consultant), H. Spechly (SCD consultant) A Tilling and R.L.Stirral (ODA consultants). M. Katila (Finnida consultant). and D. Danbury and R. VWdderburn (ES consultantn). Secretarialasistnce was provided by B. Mudd.

KENYA

FORESTRY DEVELOVI.ENT PROJECT

Table of Contents (Continued)

Page No.

V. PRODUCTION AND FINANCIAL ASPECTS ... . . . . . . . . . . .... . 37

A. Production . . . . . . . . . . . . . . . . . . . . . . . . . . 37B. Markets.. . 38C. Prices .... 40D. Cost Recovery and Sustainability . . . . . . . . . . . . . . . 41E. Farm Level Financial Impact.. . . 42F. Fiscal Impact.. .... 43

VI. JUSTIFICATION, BENEFITS, AND RISKS ... . . . . . . . . . . . . . . 43

A. Justification .... . . . . . . . . . . . . . . . . . . . . . 43B. Benefits . . . . . . . . . . . . . . . . . . . . . . . . . I . 43C. Impact on Women .... . . . . . . . . . . . . . . . . . . . . 44D. Environmental Impact .... . . . . . . . . . 45E. Economic Analysis and Sensitivity Test . . . . . . 45F. Uncertainties and Risks .... . . . . . . . . . . . . . . . . 47

VII. AGREEMENTS, ASSURANCES, AND RECOMMENDATION . . . . . . . . . . . . 48

ANNEXES

Annex 1 Estimated Schedule of Disbursements

Annex 2 Project Costs:Table 1 - Summary Accounts by

Project ComponentsTable 2 - Summary Accounts by YearTable 3 - Project Components by YearTable 4 - List of Detailed Cost Tables

in Appraisal Mission Working Paper No. IXTable 5 - Detailed Costs of PPF Activities

Annex 3 Financing Plan:Table 1 - Financing Plan by Project

ComponentsTable 2 - Financing Plan by Summary

Accounts

Annex 4 Financial Analysis and Cost Recovery:Table 1 - Forest Department BudgetTable 2 - Calculation of RoyaltyTable 3 - Cash Flow Projection for

ProjectTable 4 - Agroforestry Farm Models

RENYA

FORESTRY DEVELOPMENT PROJECT

Table of Contents (Continued)

Annex S Economic Analysis; Incremental Benefitsand Costs - Industrial Plantations

Annex 6 Main Subsector Issues and Prospects

Annex 7 Implementation:Chart 1 - Project Implementation

ScheduleChart 2 - Implementation Schedule of Forestry Master PlanTable 1 - Key Performance

IndicatorsTable 2 - Summary of Vehicles and Plant Acquisition and

Rehabilitation ProgrammeTable 3 - Forest Roads Development ProgrammeTable 4 - Implementation Targets:

Farm Forestry ExtensionTable 5 - Implementation Targets:

Indigenous Forest Managementand Conservation

Table 6 - Implementation Targets:Industrial PlantationsDevelopment

Table 7 - Implementation Targets:Forestry Education -KFC Londiani

Table 8 - Implementation Targets:Forest Research - KEFRI

Table 9 - Supervision Plan

Annex 8 Technical Services:Appendix 1 - Summary of Technical ServicesAppendix 2 - Terms of Reference of Major Technical

Services PositionsAnnex 9 Training and Technical Assistance:

Appendix 1 - Summary of In-Service Educationand Training Provisions

Appendix 2 - Breakdown of In-ServiceTraining Proposals

Appendix 3 - Summary of Technical AssistanceProvisions

Appendix 4 - Terms of Reference of Major TechnicalPositions

Annex 10 Summary Contents of Annual Work Plan

Annex 11 Forest Department Organization Chart

Annex 12 Selected Documents in Project File

- iv -

KENYA

FORESTRY DEVELOPMENT PROJECT

CREDIT AND PROJECT SUMMARY

Borrower: Republic of Kenya

Beneficiaries: Ministry of Environment and Natural Resources (MENR), ForestDepartment (FD), Kenya Forestry College (KFC); Ministry ofResearch, Science and Technology (MRST), Kenya ForestryResearch Institute (KEFRI)

Amount: SDR 13.9 million (m) (US$ 19.9 m equivalent)

Terms: Standard IDA terms, with 40 years maturity

Cofinancint: SDC - US$ 5.6 m equivalent; ODA - US$ 13.7 m equivalent;FINNIDA - US$ 6.0 m equivalent; and EEC - US$ 15.8 m equivalent

Proiect Objectives: The proposed project has four main objectives: (a)Description: to enhance conservation and protection of indigenous forest

resources as well as of soil and water on forest, farm andrange land; (b) to alleviate the accelerating fuelwooddeficiency; (c) to improve the efficiency of timber production,including expansion of the revenue base from industrial forestplantations; and (d) to establish a framework for thesubsector's long-term development. It woi1ld constitute thefirst phase of a re-directed, broad-based subsector developmentprogram and provide donors with a long-term plan for theirassistance.

Ccmponents: The project would include investments over a 6-year period to:(a) promote, on a pilot basis mainly, tree farming throughintensified extension services to smallholders and ruralcommunities and support to NGOs; (b) improve indigenous forestconservation, protection and management in the gazetted andungazetted forest areas; (c) improve the physical and financialmanagement of the existing 165,000 ha of industrialplantations; (d) strengthen the institutional capacity of FDthrough physical investments, training, management support andtechnical assistance; (e) upgrade forest research and technicalforestry education; and (f) prepare a comprehensive, long-termForestry Master Plan, including prerequisite studies andsurveys. The components to improve indigenous forest andindustrial plantations (b and c above) include a program torehabilitate 2,340 km. of existing forest roads and theirmaintenance.

Benefits: The main quantifiable bene!its would bes (a) promotion ofsustainable private tree farming, including increasedproduction of fuelwood and poles in the pilot areas; (b)improved management of industrial forest plantations andincreased production of commercial timber of about 13 millionma at stand maturity; (c) higher GOK revenues from intensifiedroyalty collection. The principal non-quantifiable benefitswould include: (a) a halt in the degradation of the indigenousforests and watershed areas and the initiation of theirrehabilitation; (b) a strengthened PD, operating with a clearermandate within an appropriate Forest Policy framework; and (c)improved forest research and technical forestry educationfacilities.

Risks: (a) delay in project implementation due to inability to buildadequate implementation capacity within FD to carry out theproject; though not eliminated, this :isk would be contained byactions to strengthen FD's planning and implementation capacityand to reduce its operational burden by enhancing theparticipation of NGOs and community groups in farm forestry andforest protection; (b) failure of GOK tc allocate sufficientproject funds; this risk would be reduced by conditionalitiesregarding budgetary allocations to the project and relatedservices and by improving cost recovery from industrialplantations; (c) organizational and coordination risks would beminimized by the self-standing nature of project components andthe establishment of an inter-agency Project SteeringCommittee, as well as the practice of joint donor supervision.

Estimated Project Costs v Local Foreign Total--------US $ million---------

1. Farm Forestry 2.5 2.8 5.32. Indigenous Forest Management 10.2 13.7 23.93. Industrial Plantations 11.5 6.4 17.94. Institution Building of FD

Central Functions 3.3 5.1 8.45. Forest Education 0.9 0.8 1.76. Forestry Research 3.8 4.8 8.67. Forestry Master Plan 0.5 4.7 5.2

Total Base Cost 32.7 38.3 71.0Physical Contingencies 2.8 2.6 5.4Price Contingencies 3.7 3.7 7.4Total Project Costs 39.2 44.6 83.8

a/ Includes direct taxes and duties of about US$10.3 million and PPFexpenditures of US$1.5 million

- vi -

Financing Plan Local Foreign Total-US $ million----

IDA 7.2 12.7 19.9EEC 4.1 11.7 15.8ODA 4.3 9.4 13.7SDC 2.3 3.3 5.6FINNIDA 0.7 5.3 6.0Government of Kenya 20.6 2.2 22.8

Total Financing 39.2 44.6 83.8

Estimated Disbursements from IDA Credit (US$ 19.9 million)

IDA FY 9'. 92 93 94 95 96 97

Annual 0.6 2.2 4.8 3.1 2.4 3.6 3.2

Cumulative 0.6 2.8 7.6 10.7 13.1 16.7 19.9

Rate of Return: No rate of return has been calculated for the project as awhole, since it mainly supports institutional strengtheningand the benefits are difficult to quantify. The component forindustrial plantations has an ERR of 17.2 percent.

Staff Appraisal Report No. 9005 - KEIBRD Map No. 22752

KENYA

FORESTRY DEVELOPMENT PROJECT

I. BACKGROUND

A. Project Background

1.01 Following a Forestry Subsector Review, it was agreed between theGovernirert and the Bank that a subsectorwide development project be prepared.Aceordingly, project preparation was initiated in the course of the September1988 supervision mission of the Bank group-supported Third Forestry Project.An initial project proposal rrepared by the Government was submitted to theBank in November, 1988. This was followed by two preparation missions, inFebruary and May, 1989 by the FAO/World Bank Cooperative Programme withparticipation of interested donors. A joint preparation document, which wascommunicated to Governme:.. in August, 1989, formed the basis for thepre-appraisal mission in November-December, 1989. The p:oject was appraisedin March-April, 1990 by an IDA-led mission with participation of thecofinanciers - British Overseas Development Administration (ODA), SwissDevelopment Corporation (SDC), Finnish International Development Agency(FINNIDA), and European Economic Community (EEC).

1.02 The basic project strategy has evolved from a prolonged interactionbetween the Bank and the Government, including discussions on a subsectorstudyl/ and experiences from three preceding forestry projects. Thestrategy is to design a nationwide and subsectorwide program to tackle theproblems of forestry in Kenya, instead of the fragmented and narrow approachadopted in previous projects. The project, for which an IDA Credit of SDR13.9 m (US$ 19.9 m equivalent) is proposed, would be the first phase of thiscomprehensive program.

B. Macroeconomic Setting

1.03 During the mid 1980s, Kenya faced a deteriorating financial andeconomic situation. In late 1986, the Government reeponded by adopting amajor stabilization and structural adjustment program, with the backing of theIMF, IDA and other donors. Kenya's medium-term policy framework is describedin the current three-year Policy Framework Paper (PFP) covering the period1990-92. Under the program, Government is seeking to reduce the budgetdeficit, limit public borrowing from the banking system, rationalize publicexpenditures, remove price controls, strengthen monetary policy and containinflation, manage the exchange rate flexibly and promote exports, limitnonconcessional external borrowing, and improve the performance of statecorporations.

1.04 Performance under the 1989 program was encouraging in terms ofeconomic growth, the budget deficit and its financing, the external sector andthe adoption of structural adjustment measures. Performance with respect tomonetary expansion and inflation was disappointing, however. Real GDP growth

1/ World Bank, Kenya - Forestry Subsector Review, Report No. 6651-KE, February 26, 1988.

in 1089 slowed somewhat to 5 percent. The budget deficit reached 4.7 percentof GDP (including grants) in FY89, and preliminary estimates suggest that itwas contained to 4.2 percent in FY90, lower than the budgeted 4.6 percent.The deficit is targeted to drop to 3.8 percent of GDP in FY91 and 3.4 percentof GDP in FY92. The 1989 current account deficit decreased to 4.5 percent ofGDP (including official transfers) from 5.3 percent in 1988, despitesubstantially lower coffee prices and higher oil prices. On the structuraladjustment front, the Government made substantial progress in implementing itsindustrial and financial sector adjustment program. In industry, quantitativerestrictions on additional imports were replaced by tariffs, the importlicensing system was streamlined, price controls on three additional itemswere removed, and a high-level Cabinet Sub-Committee was established to speedup foreign investment approvals. In the financial sector, interest rates wereraised, a new Banking Act was adopted, a restructuring program for 10 troubledfiLiancial institutions was *.nitiated, and a Capital Markets Authority wasestablished.

C. Agricultural Sector Background

1.05 Importance of Agriculture. Despite progress in the industrial andservices sectors, the agricultural sector remains vitally important for thecontinued growth of the Kenyan economy. Agriculture, which provides the mainlivelihood for about 85 percent of the total population and employs 70 percentof the labor force, in 1987 contributed about 30 percent of GDP. The sectorproduces nearly all of the nation's food and serves as the main source ofexport earnings (60 percent in 1988) and raw materials for the predomi.Lantlvresource-based industrial sector. Small farms (less than 20 ha in size)account for about 60 percent of total farm area. The proportion of land ownedand operated by smallholders is increasing with the continuing subdivision oflarger group-owned farms. Smallholdings account for approximately 75 percentof agricultural production and 85 percent of agricultural employment. Theaverage size of Kenya's two million farms is about 2.0 ha (1987) with overthree quarters of these under 2 ha.

1.06 Farming Systems. The diverse ecological conditions in Kenya permitthe cultivation of widely different crops, varying from food crops and cashcrops to extensive pastoralism with limited subsistence cropping. Intensivefarming, mostly on smallholdings, is practiced over large parts of the CentLalHighlands and in the Humid West, where three fourths of the nation'spopulation are concentrated. It is in these rural areas of high populationdensity where the greatest proportions of farm land are devoted to treecultivation. Extensive farming on medium to large holdings is undertaken inthe upland areas of the Humid West and limited parts of the Central Highlands.Small-scale, low-intensity c'opping patterns are common in coastal areas. Inthe semi-arid zones, extensive pastoralism is practiced with limitedsubsistence cropping at a high risk of crop failure, while very extensivepastoralism is predominant in the arid lowlands; there is considerablepressure on the arid and semi-arid lands (ASAL) for their increasing use forfarmer settlement and more intensive agricultural production.

".07 Recent Performance and Constraints to Growth. The slow rate ofagricultural growth during the first half of the 1980s was a particular cause

of concern. The high growth rates in the first decade of Independencedecelerated to an average of 3.2 percent per annum between 1972-83. At apopulation growth of nearly 4 percent this development signalled a decline inper-capita agricultural production. Agricultural growth has rebounded since1984, when production declined due to severe drought, and has averaged 4.5percent annually during 1986-89. Kenya has been able to maintain itsself-sufficiency in agricultural products and to moderately increase the valueof its agricultural exports during recent years.

1.08 The major constraint now facing agricultural development is theshuirtage of additional arable land to sustain a fast growing population. Onlyabout 20 percent of Kenya's 575,000 Km2 surface area is high potential landand another 9 percent can produce crops at considerable risk, being subject toperiodic drought. Irrigation potential is limited. A related problem is thecontinuous agricultural expansion into forests and woodlands, threatening thepreservation of vital soil and water resources. Kenya is in the process ofdeveloping a coherent land use policy and an institutional framework foraddressing land resource issues under its sector adjustment programs (para.1.11). Other factors contributing to the slow growth have included: (a)limited availability and use of key agricultural inputs, notably fertilizer;(b) insufficient farmer knowledge and financing due to problems in thedeliv: ry of essential agricultural services (extension, research, credit); and(c) declining investment in agriculture caused by inadequate producerincentives and marketing and pricing distortions, partly linked to inefficientperformance of largely mononolistic parastatal and cooperative enterprises inthe marketing, distribution and processing of smallholder agriculturalproducts.

1.09 Government's Development Objectives and Strategy. To reverse thedeteriorating economic situation and generate employment, Governmentformulated and issued in 1986 its policy and strategy paper for long-termeconomic growth.2/ This paper presented a bold strategy for growth over a15-year period and provided the framework for the Government's economicstabilization and adjustment program. The paper stressed the importance ofagricultural growth, setting an overall sectoral growth target of 5 percentp.a., an employment generation target of 3 percent p.a., and an increase inagricultural export earnings of 6 percent p.a. The strategy for attainingthese objectives is threefold: firstly, intensified production of key foodcommodities mainly through improved services to smallholders, notably inputssupply, adequate incentives and improved marketing mechanisms, and extension;secondly, a major research effort toward higher yielding varieties; andthirdly, a limited expansion in area and intensification of higher-value cropsfor both export and local consumption.

1.10 Government, in its current National Development Plan 1989-93, ispaying increased attention to improved management of the agriculturalproduction base. It intends to adopt two approaches: first, resource surveysand environmental assessments would be carried out for all Districts as a database and environmental framework for continuous environmental monitoring, and

2/ Sessional Paper No. 1, 1986: Economic Management for RenewedGrowth."

- 4 -

second, future development programs and projects would be prioritized on thebasis of socioeconomic and ecological analyses. Government has plans toformally prepare and codify its new natural resources management strategyduring the Plan period (para. 2.21). Such guidance would be particularlyneeded for the second generation ASAL agricultural program, which is now underformulation with Bank assistance.

1.11 Agricultural Sector Adjustment. Overall, the First AgriculturalSector Adjustment Operation (ASAO I) has been a useful instrument forpromoting policy and institutional improvements in agriculture which wouldlead to faster growth and improved efficiency in the allocation and use ofsectoral resources. Good progress was made particularly in improving producerincentives (by deregulating pricing and marketing of certain agricultu.alproducts), cost recovery in some sectoral services, and the efficiency of afew parastatals. On the other hand, some parts of ASAO were implemented at aslower pace than intended because of the wavering commitment of the Governmentto certain actions, and from a proliferation of the ministries responsible foragriculture (from one to five) and their weak implementation capacity.Disappointing progress has, for example, occurred in removing constraints onthe supply of fertilizer, reform of most parastatals, and rationalization ofthe composition of sectoral public investments and expenditures. The follow-up ASAO II, which has been appraised by IDA, would continue the reformprocess, taking into account lessons learned from the first one. The focuswould be on accelerating agricultural growth through smallholder productionand improving public sector resource use and institutional capacity inagriculture.

1.12 The Bank's Country Assistance Strategy. The Bank's assistancestrategy emphasizes three areas: (a) improving public sector management tocontain expansionary fiscal policies, rationalize recurrent expenditures,strengthen the public investment program, increase efficiency of publicenterprises, and build institutional capacity; (b) expanding and diversifyingthe export base to increase the incomes of smallholders, and to reduceunemployment and the reliance on external assistance, by encouraging privateinvestment in export activities, and improving export incentives, andrelieving constraints to export production and marketing; and (c) laying thefoundations for sustainable development by strengthening Kenya's humanresource base, addressing equity and gender issues, and improvingenvironmental management. This strategy calls for a lending program thatconsists of two components: sector adjustment lending in areas judged centralto the structural adjustment process (para. 1.04) and investment lending inthe productive and social sectors as well as for essential infrastructure.Such a program seeks to give balance of payments support and at the same timefacilitate the supply side responses required for sustainable growth.

1.13 Sectoral Lending. In the past ten years, the Bank Group hascommitted US$259 million to support projects in the agricultural sector, ofwhich US$47 million has been on Bank terms, and US$212 million on IDA terms.Since FY83, all commitments have been IDA Credits. A subsectoral shift tookplace during the early to mid-1980s away from area development projects, andtoward improved agricultural services, promotion of exports, and sectoradjustment operations, in support of the Government objectives and strategyoutlined above.

1.14 The Bank's sector assistance program is designed to supportGovernment's main agriculture sector objectives - rapid growth, exportearnings, and employment creation. To do this, the sequence followed so farhas been: policies, vital services, and export investments. Investmentprojects of the past five years in key agricultural services (Research,Extension, and Animal Health) and exports (Coffee II) were grouped around ASAOI, which supported the first phase of Government's policy reform program.

1.15 In the past two years, the Bank has been preparing for the nextphase, which, will group projects around ASAO II. The latter will deepenpolicy reforms started under the first operation, and begin new initiatives,especially in stimulating smallholders' production, poverty reduction andenvironmental actions. Complementing this operation would be a series ofprojects to address environment, finance, infrastructure and poverty concerns.These will endeavor to remove remaining constraints to agricultural growth,and deepen the equity and sustainability of the sector's development.Environmental concerns would be addressed through this proposed ForestryDevelopment Project, an ASAL Development Project and a Wildlife Project.Finance constraints are to be addressed through IDA financial sectoroperations. Infrastructure constraints are to be addressed throughAgricultural Marketing, and Agro-Industries Development Projects and povertyconcerns through nutrition initiatives and rural public works, especiallyroads. The Bank will continue its commitment to improve the effectiveness of

vital agricultural services through the ongoing National Agricultural ResearchProject, the forthcoming Second National Extension Project, and the proposedDairy Project.

II. THE FORESTRY SUBSECTOR

A. Main Features

2.01 Forest Resources. Kenya's closed forests are concentrated in themoist Central Highlands where the human population and agricultural productionare also concentrated. In the extensive semi-arid and arid regions, forestsare mainly found on isolated mountains and in discontinuous narrow bands alongriver beds. Open woodlands and scrublands occupy large parts of the semi-arid

and arid regions.

2.02 Kenya's gazetted forests comprise some 1.7 million ha of landcorresponding to about 3 percent of the nation's land area. Thay include some170,000 ha of plantation forest of which about 90 percent are industrialconiferous plantations. In the absence of a forest inventory since the 19608,the true extent of the forests is unknown. Probably some 25 percent of thegazetted area does not consist of forest but of open grassland and scrub. On

the other hand, outside the gazetted area, there are more than half a millionha. of forest tracts in Trust Lands under County Councils, in the NationalParks and National Reserves, and on other Government land. In addition, there

is a relatively high area coverage of trees on smallholder farms mainly in the

Central Highlands. The exact area is not known but it is estimated that in

some densely populated parts, as much as 20 percent of the farm land is underwoody biomass. The aggregated total area of smallholder tree planting

probably exceeds 100,000 ha. Finally, woodlands, defined as areas ofscattered tree cover and scrub growth, cover a large proportion of the 47million ha of the semi-arid and arid zones.

2.03 Importance of Forestry. The forests and woodlands are the sourceof important economic, social and environmental benefits to the country. Theyplay vital, multiple roles: regulating and optimizing the distribution andflow of water; conserving and protecting the soil mantle; and providinghabitat and dry season refuge for wildlife, the foundation of Kenya'simportant tourist industry. They are the source of virtually all the nation'ssupply of about 30 million m3 per annum of roundwood for building and otherpoles, fuelwood, charcoal, sawntimber, wooden panels, pulp and paper, andprovide numerous other commodities, e.g. fodder and fruit that are ofparticular importance to rural people. The value added of the measurableproducts from Kenya's forests was estimated at KSh 1.3 billion in 1986,equivalent to 1.5 percent of GDP or 5 percent of the agriculture sector's GDP,and that of the wood-based industry at over KSh 3.3 billion. Forestry andwood processing provide direct full-time employment to about 35,000 people,excluding those in informal trade and industry.

2.04 Forestry Institutions. The main institution in the forestrysubsector is the Forest Department (FD) in the Ministry of Environment andNatural Resources (MENR). FD's chief functions are the management andprotection of Kenya's gazetted forests; the establishment and management ofindustrial and fuelwood plantations in these forests; promotion of on-farmafforestation; and the development and execution of the country's forestpolicy. FD operates some 160 forest stations reporting to 40 District ForestOffices which in turn report to eight Provincial Forest Offices. Out of atotal work force of about 17-18,000 personnel, about 900 are professional andtechnical staff, 2,800 supporting staff and some 14,000 permanently employedlabor. FD's programs have in the past concentrated on industrial forestry towhich more than 80 percent of its budget has been devoted. This is nowchanging toward greater emphasis on FD's involvement in the ruralafforestation efforts on private land, notably smallholder farm land, andconservation of natural forests.

2.05 Other Government agencies which have a major influence on theplanning and implementation of forestry activities, resource allocation andforest policy formulation, are the Ministries of Finance (MOF), Planning andNational Development (MPND), Energy (MOE), Agriculture (MOA), RegionalDevelopment (MRD), Wildlife and Tourism (MWT), Reclamation and Development ofArid, Semi-Arid and Waste Lands (MRDASAW), Research, Science and Technology(MRST), and Education (MED), and the Office of the President (OP). Many ofthese agencies have been supported by foreign donors in their central orselected district operations with agro-forestry and soil conservationactivities. In the forestry subsector, MOE concentrates on energyconservation, agro-forestry demonstration and renewable energy; MOA providesconsiderable agro-forestry extension services through its agriculturalextension network of over 3750 front line-staff; OP and its Districtorganization have been entrusted with increased development responsibility asa consequence of GOK's 'district focus' policy, particularly in environmentaland energy matters. Political support to rural afforestation has manifesteditself at the local level in the form of Chief's nurseries and innumerable

- 7 -

other institutional nurseries. The Kenyan Forestry Research Institute (KEFRI)has recently been placed under the newly formed MRST. University leveltraining in forestry is offered at Moi Univers'ty in Eldoret under the MED andtechnical level training at the Kenya Forestry College (KFC) at Londiani underFD. There are at present no permanent provisions for formal vocationalforestry training.

2.06 Private Sector Involvement is mainly in the wood-based industrythat produces sawn timber, pazvl boards, and pulp and paper. There are nowover 350 licensed sawmills a, a considerable number of unlicensed mills.Most of the mills are small. There are also four moderate-size plywood mills,some of these integrated with particle board or fiberboard production. Totallog-size roundwood demand is about 700,000 m3 p.a. Pulp and paper areproduced by one large integrated mill consuming almost 500,000 m3 of pulpwoodp.a., and a few smaller mills which are not based on wood. Total industrialroundwood demand at present is 1.3 - 1.4 million m3 p.a., i.e. less than 5percent of all harvested roundwood, and is expected to grow annually at 4-5percent.

2.07 With the exception of two industries (private .ea and tobaccoprocessing enterprises), which have undertaker their own industrial fuelwoodplantation programs, all the other industries depend on the Forest Department(FD) for their wood supply; however, there is a growing supply of industrialroundwood from private, mainly smallholder tree plantings. Practically allmarketed industrial roundwood is plantation-grown, as commercial fellings inthe natural forests have been banned. Involvement of the private sector inforest plantation operations was recently precipitated by the FD's inabilityto clear its backlog of replanting and maintenance. The pulp and papercompany, for instance, has since 1987 carried out at its own cost aconsiderable part of the annual reforestation and early tending of FD'spulpwood plantations, as well as forest road construction and maintenance.Upon FD's request, many of the large sawmillers have since 1989 joined rankson a "harambee" (cost sharing) basis to eliminate backlogs of pruning andthinning as well as replanting in FD's sawlog plantations (Annex 6, para. 8).There is also a marked interest in the private sector to establish plantationsdirectly held by the companies themselves; however, constraints ofavailability of land or suitable finance have been an obstacle to thispotential development.

2.08 NGO's. Outside the public and industrial private sectors, agrowing number of non-governmental organizations (NGOs) and other privateinitiatives play an increasing role in Kenya's rural afforestation program andrelated areas (e.g. improvement of stoves, soil conservation, etc.). Theaggregate area planted through NGO efforts is not known but this couldrepresent a significant percentage of Kenya's fuelwood plantations on farms asNGOs have spontaneously filled a leadership void left by FD's weak trackrecord in forest extension. Despite considerable progress made, thesenon-governmental activities need better focus, coordination and continuity andeffective guidance from the FD, the key line agency for nationaltree-planting, so that the great potential of the NGOs can be harnessed in amore efficient and sustained manner. The proposed project would providetraining on farm forestry to leaders of NGOs, support NGO nurseries, and

- 8 -

monitor and coordinate NGO farm forestry activities (paras. 3.08 and 3.10-3.11).

2.09 Subsector Fundint. Table 1 in Annex 4 shows the Forest Departmentbudget for the last five years. This budget does not represent the totalexpenditures on forestry; some forestry education expenditures fall under theMED while forestry research is separated under MRST. FD's budget has shown adeclining trend in real terms and its composition has been inadequate forkeeping the Department fully operational. Operating expenditures (GOKaccounting excludes labor costs) as a percentage of total expenditures havebeen roughly 10 percent during 1985/86 and 1987/88, dropping to 8 percent in1988/89, and are expected to drop further. The share of developmentexpenditures (which includes labor costs) for industrial plantations in1988/89 was 62 percent while that for local and rural afforestation was 22percent. The share of personnel emoluments has risen to over 80 percent ofFD's total budget, leaving little for operations and investments. De-linkedfrom its budget (para. 3.29), FD's revenue collection, which is essentiallyfrom royalties on timber sold, has been low. In 1987/88 and 1988/89 itrepresented only about 30 percent of the total size of the budget, when itcould be much higher (para. 5.21 and Annex 6, para. 9).

2.10 External Assistance. About 20 multilateral and bilateral donors aswell as a number of external NGOs are assisting Kenya's forestry subsector.In roughly one half of the projects, the recipient has been MENR/FD, whileother ministries and national organizations have benefitted from the otherhalf. In the first half of the 1980s, the majority of the donor-assistedprojects have been directed toward agro-forestry and soil con3ervation.Overall coordination among the many initiatives has been weak or absent (para.2.17). Hence, an umbrella plan and structure for aid coordination in thesubsector is urgently needed.

B. Main Subsector Issues

2.11 This section gives a summary description of the major issues in theforestry subsector. Details are presented in Annex 6.

2.12 Deforestation. The ongoing deforestation of Kenya's indigenousforests and resulting environmental degradation is the principal issue. Themain cause for this has teen population pressure, resulting in encroachment ofagricultural land into forests and increased demand for timber products andwoodfuel. The extent of the denudation is insufficiently known due to thelack of a forest inventory. To halt further environmental damage it isnecessary to: (i) carry out a forest resource inventory; (ii) prepare land useplans for the indigenous forest areas and mark their boundaries; (iii) involvelocal people in sustained forest resource management; and (iv) exercisecontrol over illegal intrusion.

2.13 Woodfuel. A closely related issue is the increasing woodfueldeficiency. Growing stocks are being depleted at an estimated rate of 15million m3 p.a. with serious ecological effects. A large fuelwood developmentprogram needs to be implemented, but this is being held back by three mainconstraints, viz: (i) suitable public land, although existing, has not been

- 9 -

made available for this purpose; (ii) fuelwood plantations have had a lowcommercial profitability due to various disincentives; and (iii) supportingtechnical inputs have been insufficient. The challenge facing the forestrysector is to remove these constraints and to create viable conditions forpromoting the growing of fuelwood.

2.14 Industrial Plantations. The country's 170,000 ha of industrialplantations under FD are being underutilized and inadequately managed.Silvicultural treatments have been delayed, timber harvesting operations arenot well planned, only a small portion of the plantations have validmanagement plans and there has been significant noncollection of timberroyalties, constituting a huge loss to GOK. Measures are needed to achieveimproved operational and financial management of the plantations.

2.15 Forest Department. The problems in Kenya's forests have beenaggravated by FD being a weak line agency receiving limited political support.A static budget which goes mainly to salaries and wages has left littleresources for operations and (re)investments. Forest infrastructure, notablythe forest road network, and assets are in a state of disrepair. Planning,management and supervision systems are not functioning at normal levels andfinancial accountability is inadequate. S_nce mid-1989 FD has been operatingwithout a head office building. FD requires strengthening of practically allits functions to enable it to fulfill its mandate satisfactorily.

2.16 Forestry Research and Education. KEFRI has a program of well-defined research priorities and a strong leadership. However, it lacksappropriate research facilities and adequately trained staff. Similarly, thecountry's two forestry education institutions, KFC at the technical and NoiUniversity at the professional level, lack adequate teaching facilities andtheir staff needs to be strengthened in numbers and quality.

2.17 Inter-agency Coordination and Forest Policy. The multiplicity ofagencies involved in forestry activities has resulted in overlapping mandates,poor coordination, and suboptimal allocation of scarce resources. ForestPolicy and principal forestry legislation date back over 20 years and areobsolete. A new subsector policy is urgently needed to redefine the mandatesof the various agencies active in the subsector, and to respond to the changedpriorities. The large number of poorly coordinated activities by manyexternal donors also aggravates the fragmentation. A subsectorwide,collective planning effort is needed as part of the policy formulationprocess.

C. Linkages with Key Socio-Economic Areas

2.18 Land Utilization. As pointed out in para. 1.08, one of the majorconstraints to agricultural development is the shortage of arable land and itsinefficient utilization. Forestry competes with crop production and livestockfor utilization of high and medium potential land. The Government hasrecognized that there is a need to review land use patterns in order topromote measures which will lead to effective land use. The Sixth Plan re-issued a call to establish an independent Land Commission to address suchissues. In the meantime, a joint study by GOK, the Bank and Danida

- 10 -

investigated reasons for inefficiencies of land use and recommended remediesthrough: intensification of farming and livestock production systems, speedingup of the land registration snd adjudication process and improving extensionservices. These improvements would ease the pressure on forestry land. Inaddition, the Forestry Master Plan (para. 3.44) would carry out land use plansfor the main foz-est areas.

2.19 Population. Population pressure is the main cause of deforestationin Kenya, which has one of the world's highest population growth rates. Inrecent years, however, there are encouraging signs of progress in theeffectiveness of the Government's population program. Data from the 1989Kenya Demographic and Health Survey suggest that there has recently been asignificant decline in the desired family size and an increase in theproportion of married women who wish to have fewer children. Moreover, thetotal fertility rate has fallen from 7.7 in 1984 to 6.7. IDA has supportedthe Government's population program in three completed operations and haslaunched the fourth population project in conjunction with other donors. Onefo the benefits of the project would be the easing of population pressures onthe environment.

2.20 Household Energy. Woodfuel resources supplied 76 percent of totalenergy used in 1984. Over 90 percent of all households use woodfuel and otherbiomass fuels for their domestic needs. Of total wood and other biomass fuelconsumption, roughly one third is in the form of charcoal, used mainly inurban households. Without intervention, the deficit between sustainablesupply and demand for fuelwood is projected to increase from its 1985 level ofabout 11 million cubic meters to 32 million cubic meters in the year 20003/.The imbalance is estimated to lead to a loss of some 2.7 million ha ofsavannah woodland or 450,000 ha of closed high forest by 2000. To cope withthis problem, the government is considering a combination of supply and demandside measures including: (i) improved forestry management, (ii) removal ofprice controls on charcoal, (iii) introduction of incentives to encourageprivate sector investment in forestry, and (iv) increasing use of modern fuelsand more efficient woodstoves and charccal kilns. Issues relating to thepricing aspects of household fuels will be addressed in the pricing study tobe undertaken under the IDA-financed Geothermal Development and EnergyPreinvestment Project. Under the proposed Forestry Development Project GOKwould take further measures to eliminate fuelwood pricing and relateddisincentives to private tree farming.

2.21 Environment. Kenya's environmental problems stem largely frompopulation pressures on its limited land resources. These environmentalpressures are imposing severe constraints on production in the country'sagricultural and livestock sectors and contributing to the destruction ofwildlife and natural habitats. Environmental problems affecting agricultureinclude degradation of arable land through reduced fertility and water-holdingcapacity, coupled with a reduction of dry season water resources. Soilerosion is the main cause of arable land degradation. Increased upstream

3/ World Bank Staff Appraisal Report, Republic of Kenya -Geothermal Development and Energy Preinvestment Project,December 2, 1988

- 11 -

offtake of water and reduced replenishment of ground water are the directconsequence of changes in forest cover. The Government is fully committed topolicies and strategies of sound environmental management and humansettlements. There is now a need to translate broad environmental concerninto specific action plans which can better define concrete policy measuresand investment priorities to support the rehabilitation and preservation ofKenya's fragile environment. To this end, the Government intends to prepare aNational Environment Program to be completed over the next two years. Whilethis work is underway, there are three environmental priority areas wherepolicy and investment needs are particularly urgent: forestry, arid and semi-arid lands and the wildlife sector.

D. Government Subsector Development Obiectives and Strategy

2.22 The Sixth Five-Year Plan states that forestry will play a vitalrole in striking a balance between the nation's development needs andprotection of the environment. It states that the Government's goals inforestry are: continued promotion of farm forestry and re-afforestation,effective management of exploitable forests, and conservation of ecologicallyand genetically important forest areas. Particular emphasis is given toinitiating protection of vegetative cover and afforestation in the ASAL areas.The strategies to attain these objectives include: (a) completion of forestinventories and forest cover monitoring; (b) intensification of ruralafforestation by decentralizing and expanding the Chief's Nurseries Program tocover all locations; and (c) increasing manpower training in forestry.Pending the completion of the comprehensive plans mentioned in para. 2.21, theGovernment has, in consultation with external donors, set three priority areasfor intervention at this stage: first, the rehabilitation and strengtheningof the institutional base for forest conservation and management; second, theimplementation of a realistic physical program covering the whole forestrysubsector; and thirdly, preparation of a program to address broader landresource conservation and management issues.

S. Past Bank Group Experience with Forestry Proiect'

2.23 Projects and Reports. The Bank has supported forestry developmentin Kenya over the past 20 years (1969-89) through three consecutive forestryprojects. The aggregate of the approved loans and credits is US$60.1 million,of which only US$47.2 million were actually used. Forestry I (Ln. 641) waspurely an operation of industrial plantation forestry in a geographicallylimited area. The follow-on Forestry II Project (Cr. 565/Ln. 1132) waslikewise oriented toward industrial plantations but over a wide area; it wasalso aimed at improving forestry infrastructure, institution building, andvital studies needed for subsectoral planning. Forestry III(Cr.1213/Ln.2098),cofinanced with the Swiss and Italian Governments, was conceived as acountrywide project with continuing emphasis on industrial plantations butalso a new focus on FD's Rural Afforestation Extension Service (RAES), forestinfrastructure, and institutional support to FD. Also, since 1969, the IFChas approved a total of US$86 million for loans and equity commitments forpulp and paper production.

- 12 -

2.24 Project Completion Reports and Project Performance Audit Reportsare available for Forestry I and II. A Special Impact Evaluation Report onthese two projects was finalized in 1983. During September 1986-February1988, the Bank jointly with various donor agencies prepared detailedforestry subsector review for Kenya. A PCR on Forestry III is being prepared.

2.25 Overall Experience. The First Forestry Project was quitesuccessful in terms of physical achievements but failed to address the basicissue of cost recovery. The Second Project suffered from poor management,inadequate record-keeping, and substantial cost overruns coupled withdeclining labor productivity which reduced profitability. It also failed tocarry out vital studies, such as the land use survey. The Third Project hasbeen relatively successful in plantation establishment, although the level ofaccomplishment appears to have declined in its later years. The project hasbeen able to increase stumpage rates to nominal cost recovery levels but alarge proportion of royalty revenues remain forgone because of lax timberassessment and collection and a high degree of evasion. Labor productivityhas not improved; performance of the other project components has beendisappointing: plantation maintenance has continuously remained belowtargets; access to the plantations was poor because roads were notrehabilitated and maintained; RAES failed to undertake a planned pilotextension project; the needed surveys and studies were not carried out; andinvestments and non-personnel operating costs were severely curtailed due toGovernment's budget constraints. Disbursements lagged due to these fiscallimitations, the weak performance of FD and the appreciation of the US$against the KSh. Forestry III closed at end-;989, and US$12.9 million werecanceled from the loan. An additional US$10 million of bilateral cofinancingwas also canceled.

2.26 In summary, both the Second and Third Forestry Projects failed intheir aims to improve FD's management performance, achieve more efficientplantations operations including higher labor productivity, and increase costrecovery. The essential precondition of sustained Government support wasmissing. Corrective action, several times agreed between the Government andthe Bank, was not taken. On the positive side, the three forestry projects'most significant impact lies in their physical accomplishment of establishing90-100,000 ha of industrial plantations. The IFC-supported pulp and papermill project was successfully completed. It has maintained a high production,has gone through several expansions and is paying dividends.

2.27 Lessons Learned. The following are the salient lessons gained fromthe Bank's involvement in the subsector: (a) To succeed, the proposed projectrequires strong commitment which needs to be measured periodically againstproject performance criteria; (b) a new project would have to be of moderatesize; FD's capabilities need to be built up in respect of operations planningand management; (c) an action program needs to be agreed upon with theGovernment, as part of the new project, to improve the low productivity ofFD's labor; (d) future forestry projects need to increase involvement ofprivate sector, NGOs and other community groups; (e) complementarity of FD andMOA staff in forest extension is required; (f) arrangements for a suitable FDheadquarter are required for a new project to go ahead; (g) to be successful,forestry projects require a budget structure in which a large proportion ofthe total budget is allocated to investments, maintenance and nonpersonnel

- 13 -

operational expenditures; (h) to improve cost recovery in industrialplantations, there should be incentives for FD to collect along with improvedsystems of collection and royalty assessment; and (i) up-to-date forestlegislation and policy are needed to guide subsector development (para. 2.17).

F. Rationale for Bank Involvement

2.28 The Bank's experience from the implementation of three consecutiveforestry projects and the Forestry Subsector Review provide a good basis forcontinuing Bank Group lending in this important subsector. By virtue of itslong presence as a partner in the development of all sectors in Kenya'seconomy and its current involvement in ASAO II and Government's ASALEnvironmental Action Plan, the Bank is in a strong position to assistGovernment in addressing subsectorwide issues. The primary thrust of theproposed project would be to help Government: (a) translate into action itscommitment to natural resource management, tackling subsector issues relatedto conservation and environmental protection; (b) streamline the process offorest policy planning and legislation; and (c) achieve a better use ofavailable resources, including coordination of donor assistance. The projectwould aim at supporting many of the strategies of the ASAO process and atbringing about desirable structural changes in the forestry subsector. Theproject would be the first of a subsectorwide investment program in forestry.IDA's involvement is important to sustain the efforts needed to support thislong-term process.

III. THE PROJECT

A. Project Obiectives

3.01 The objectives of the proposed project are to:

Ca) enhance conservation and protection of indigenous forestresources as well as of soil and water on forest, farm andrange land;

(b) alleviate the accelerating fuelwood deficiency;

(c) improve the efficiency and financial viability of timberproduction; and

(d) establish a framework for the subsector's long-termdevelopment.

3.02 To attain its objectives the project would employ the followingstrategies: (i) clarification of the role of the institutions concerned inforestry development and improved cooperation among them; (ii) strengtheningof the planning and implementation capacity of the public sector institutionsin forestry; (iii) preparation of land use plans for rational use of forestland; (iv) improvement of forestry infrastructure, forestry research, andforestry extension services; (v) greater farmer, NGO and private sector

- 14 -

participation aimed at more fuelwood and timber production, as well as atimproved conservation practices, in the forestry subsector; (vi) improvementof the forestry data base; and (vii) updating of the Forestry Policy andpreparation of a forestry development master plan.

3.03 The project would provide support for the first phase of a forestrydevelopment program in Kenya, firstly, through financing some urgentinvestments, and secondly, by formulating a framework for the futuredevelopment of the subsector and provide donors with a long-term plan fortheir assistance.

B. Summary Proiect Description

3.04 The project would finance training, institutional support, civilworks, vehicles, equipment and their operating costs over a six-year period.Project compon-nts are detailed in paras 3.05 to 3.45 and summarized below:

(a) Farm forestry extension: strengthening the Forestry ExtensionServices Division (FESD) and re-orienting its activities fromseedling production to provision of technical advice; coordinationand monitoring of existing pilot operations; and providingintensified farm forestry extension packages in three pilotdistricts;

(b) Indigenous forest management and conservation: strengtheningindigenous forest management and conservation; inventory andmanagement plans for all areas of closed indigenous forest; pilotprojects to provide models for participatory management ofthreatened indigenous forest areas of high ecological importance;and rehabilitating and maintaining forest roads.

(c) Industrial llantations development: improving the management andprofitability of industrial plantations; replanting of 19,800 haand new planting of 3,500 ha with commercial species; preparing aframework to promote private sector involvement in commercialforestry; and rehabilitation of forest roads and their maintenance;

(d) Strengthening of FD's central functions: improving FD's technicaland management capacity; arrangements for FD vehicle fleetmanagement; and studies and measures to improve FD laborproductivity;

(e) Forestry education - RFC Londiani: improving teacher quality andfacilities; and developing curricula and reorienting KFC programstowards extension/farm forestry and forest management;

(f) Forest research - KEFRI: improving research facilities andupgrading staff proficiency; and

(g) Forestry Master Plan: determination of subsector developmenttargets and a long-term action plan, including studies and zurveys;

- 15 -

support to Forest Policy formulation, and preparation of investmentprojects for implementation of the plan.

C. Detailed Proiect Features 4/

(a) Farm Forestry Extension (US$5.3m)

3.05 Objectives. The component would aim at strengthening the FESD andre-orienting its activities from direct seedling production to provision oftechnical advice on establishment, management and conservation of trees onfarms to smallholder farmers and various target groups, including NGOs,schools and women's groups, emphasizing FESD's extension role as complementaryto front-line extension by MOA. It would also aim to evaluate and consolidatethe experience from about ten forestry extension pilot operations currentlyunder implementation with support from several donors, as well as tocoordinate with NGOs involved in farm forestry. The component would use thisexperience to provide intensified farm forestry exten ion packages in threenew pilot districts, in order to increase farm tree planting and production oftree products in these districts and also to develop farm forestry approacheswhich could be adopted in other areas. The component, which would be acontinuation and expansion of the ongoing (until mid-1992), SDC-funded RuralTree Development Support Project (RTDS), would comprise the following fourmain activities:

3.06 Strengtheninrg of FESD Headquarters. The project would increaseFESD HQ's present staff of 10 to 14 full-time positions, including a DeputyChief and five graduate Branch Heads. One new branch, the ExtensionMonitoring Branch, would be established. All staff would be given training inthe specialist fields to be covered by their respective branches (84man-mont.Ls of in-country training and 18 man-months for specialist coursesabroad).

3.07 The project would also provide 12 man-years of internationallyrecruited technical assistance (three advisory positions) in farm forestryextension and agroforestry, monitoring and evaluation, and training. Detailedterms of reference are given in Annex 9, Appendix 4. The recruitment would becoordinated with the provision of Advisors under the ongoing SDC-funded RTDSproject. The project would also finance three vehicles and special equipmentfor the preparation and present3tion of extension messages.

3.08 Coordination and Monitoring of Existing Pilot Operations. Thestrengthened FESD HQ would intensify coordination and monitoring of about tendonor-supported pilot schemes in farm forestry extension whicb are ongoing orabout to be implemented in various parts of the country. The component would:(i) train field extension staff where this is not adequately covered in thepilot schemes; (ii) develop a standard monitoring system to be applied to thepilot schemes, and intensify supervision from FESD HQ; and (iii) develop amechanism for regular information exchange between the pilot schemes including

4/ All financial amounts in this section are expressed as basecosts.

- 16 -

the new pilot districts (para. 3.10), and FESD HQ. The project would also aimat tying significant NGO farm forestry activities into this monitoring system.

3.09 Intensified Forest Extension in Three New Pilot Districts. Supportwould be provided to FESD field activities in initially two new pilotdistricts, Kakamega and Laikipia, followed by a third district, Samburu, inthe third project year. The 15 new divisions to be covered vary inagro-climatic and ethnographic zones ranging from high potential, denselypopulated areas in the Humid Highlands to low potential, sparsely populatedarid zones, thereby allowing staff to develop different forms of farm forestryinterventions. The impact of interventions would be closely monitored.

3.10 The following training would be provided: (a) intensive short-termcourses in extension forestry would be given for all FESD field staff from thepilot areas at district and division levels at two occasions, and forextension officers from the other areas at one occasion, totalling 235man-months of training, together with 84 man-months for local consultants toassist in teaching; (b) starting in the third year, 20 candidates would besent annually to undergo the new one-year extension forestry diploma course atKFC Londiani (para. 3.38), with priority initially given to officers from thepilot areas; (c) about 2,150 subordinal.e level FESD field staff would betrained to assist in establishing and running chiefs' and various groupnurseries. This would be a key measure for implementing the strategy ofreducing the FESD divisional nurseries and decentralizing them (para. 3.11).Staff from the pilot districts would be given priority in the early years; (d)bi-weekly two-day seminars on farm forestry in each pilot division would, overthe project's lifetime, give over 3,000 man-months of training to 30,000leaders from NGOs and other groups; (e) to orient MOA extension workers atall levels regarding the role of trees in farming systems and the role of FESDin supporting MOA extension, about 250 man-months of short training courseswould be arranged for 525 MOA front-line extension staff, i.e., TechnicalAssistants (TAs) and Officers (TOs), in the three pilot districts, 150man-months for TAs and TOs from nonpilot districts (para. 3.12), and 58man-months of training for higher level MOA staff mainly from the pilotdistricts; and (f) for farm forestry to receive full institutional supportfrom other government agencies, a total of 34 man-months of workshops would bearranged for local officials in the pilot areas.

3.11 Seedling production in the existing pilot district divisionalnurseries of FESD would be cut back while increased support would be given atlocation and sublocation levels to chiefs' nurseries and the establishment ofNGO, group and private individual nurseries, with concurrent reassignment ofpermanent FESD nursery labor from the divisional nurseries to the locationallevel. The project would provide materials for the establishment orimprovement and the operation of 15 divisional nurseries, about 430 chiefs',NGO and other group nurseries, and for the operation of some 1500 individualfarmer nurseries. Prices for seedlings from the latter would be increasedconsiderably to reduce the present heavy subsidy on FEsD seedlings and

.- ourage the establishment of non-FESD nurseries (para. 5.20). The projectvu.ald also finance 15 office buildings and 15 houses, as well as six vehiclesand 12 motorcycles for the 15 divisions. All FESD and nongovernmentinvestment and extension activities, and achievements, would be tightlymonitored according to an M&E system to be designed and operated by the FESD

- 17 -

HQ Extension Monitoring branch by the second project year following a set ofbaseline surveys in the pilot divisions.

3.12 SuRport to Nationwide Forestry Extension. Outside the pilot areas,the project would provide a limited program of in-service training in forestryextension for FESD field staff, and to MOA extension staff. About 200 FESDnurseries outside the pilot districts would continue to receive materialsupport for seedling production as in the past. As these nurseries becomescaled down and decentralized, an increasing share of the material supportwould be distributed to group and farmer nurseries. Seedling prices in FESDnurseries should follow the pricing principles applied in the pilot districts.

(b) Indigenous Forest Management and Conservation (US$23.9 m)

3.13 Objectives. The component would aim at strengthening FD's NaturalForest Management Division (NFMD). It would also aim at generating anup-to-date information base on indigenous forests to form the basis forplanning and policy making. Pilot schemes would be carried out to find waysof providing for human needs, while maintaining indigenous forest habitat andcover. The component would comprise the four principal activities:

3.14 Strengthening of Indigenous Forest Management and Conservation.The major thrust would be manpower development and the improvement of NPMD'sfield facilities. Six Assistant Chief Foresters (Conservation) would beemployed in years 3 and 4 of the project and deployed to those districts withlarge indigenous forests. The project would also provide in-service trainingin indigenous forest management and conservation for NFMD field staff asfollows: (a) 16 man-months of management coursework overseas for fourprofessional officers; (b) 2-month refresher courses on their basic duties atKFC Londiani for 60 professional and technical field staff; (c) similarshort-term training for 120 neadmen; and (d) training for 750Conservation/Forest Guards, in their new responsibilities. These fornerlyforest guards would have broadened functions including facilitation andsupport roles in respect of interacting with local people, liaising with FESDstaff, and data collection. The project would recruit a technical officer toconduct for the conservation guards a series of training courses during thefirst three years. His terms of reference are given in Annex 9, Appendix 4.Two local Conservation Tutors, who would be provided training abroad for thistask, would take over from him after three years.

3.15 The project would finance 31 new vehicles and ten trailers, as wellas the rehabilitation of 44 vehicles (landrovers and tractors), and theiroperation and maintenance to meet NFMD's transportation requirements in thefield. Other investment items would include the renovation of forest stationbuildings, and tools, equipment and materials needed at the stations.

3.16 Operations in Indigenous Forests. This component supportsoperations to initiate the process of rerenerating or enriching degradedindigenous forests. 330 km of forest roads in priority areas wo4ld berehabilitated by contract and 130 km by force account; no construction of newroads is foreseen. (Roads rehabilitation for industrial plantations isdescribed in para. 3.25. Annex 7 Table 3 shows a summary of the entire roadsprogram.) Road maintenance works would comprise a total of 960 km, one third

- 18 -

by contract and two thirds by force account by FD's restructured road units.The project would finance the repairs of eight graders and their cost ofoperation. It would provide equipment for the .pographical survey andpermanent demarcation of all forest boundaries in Gazetted and UngazettedF3rest Reserves, and boundary planting near villages where encroachment islikely. 250 new conservation posts (office and housing for forest guards)would be constructed. Funding would be made available for tools and equipmentneeded for the rehabilitation or construction of firebreaks and game moats,the latter in indigenous forest adjacent to commercial plantations. Theproject would undertake a limited amount of regeneration in denuded or heavilyexploited natural forests by providing funds for replanting 2,700 ha andenrichment planting over 2,700 ha mainly with indigenous species withcommercial value. KEFRI would be consulted on the selection of species.Eight additional assistant forest officers would be recruited to implementthese forest operations.

3.17 Inventory and Management Plans for Indigenous Forests. Thenational inventory component would undertake ecological, hydrological, timber,nontimber and socioeconomic studies in all the closed indigenous forest areas.Scattered information already exists on some ecological, hydrological andsocial questions. This would be synthesized to identify gaps in knowledgeand, together with the reconnaissance surveys and mapping from satelliteimagery, would be used to determine initial conservation priorities and planthe national inventory program. The timber inventory program would notproceed until the reconnaissance phase has been completed. Forests identifiedat the reconnaissance survey to be of high conservation priority would not besubject to timber inventory. In the event that detailed ecological inventorysuggests that the priority accorded at the reconnaissance stage was mistaken,timber inventory of such forests may be included at the end of the program.The project would provide aerial photo and satellite coverage over theinventory area, estimated to be about 1.5 million ha. (The area of actualtimber volume inventory would encompass only 0.4-0.5 million ha of this.) Aproportion of the sample plots would be established as permanent plots.Provision would be made for 44 man-years of expatriate and local consultantswith expertise in forest inventory, ecology, sociology and nonwood forestproducts, as well as land use planning. A land use planner/economist/humanecologist would be the team leader. The terms of reference for the inventoryexperts are set out in Annex 8, appendix 2. Provision would also be made for60 incremental local staff, to be temporarily attached to FD's InventorySection during this operation, and for 27 man-months to special technicaltraining mostly abroad. The project would finance the purchase of 21vehicles, office and field equipment, and all necessary operational costs forthe inventory.

3.18 In addition to the inventories, the main outputs would beconservation priorities, including the identification of bio-diversityreserves, and forest management recommendations for incorporation into theForestry Master Plan (para 3.44). Close coordination with the Master Plancomponent would be necessary throughout. GOK would ensure the agreedrecommendations from the inventories are fully incorporated in the MasterPlan. The project would also support the installation of a computerizednational forest monitoring system. It is proposed to locate this in theDepartment of resource Surveys and Remote Sensing (DRSRS) in Nairobi. The

- 19 -

inventory of the indigenous forests would be coordinated with the ongoing,NZDA/FAO-UNDP assisted inventory of industrial plantations.

3.19 Pilot Schemes. The pilot project component would be implemented inthree threatened areas of ecological importance: Arabuko-Sokoke, Kakamega,and Mau. The project would provide immediate logistical and financial supportto the FD and Kenya Wildlife Services (KWS) in order to improve operationaleffectiveness. Detailed inventory work, additional management and projectdesign studies, and consultation activities wouli be completed in the firstsix months of the project, with the main output being an agreed projectproposal for ODA/GOK appraisal in month 9. Specific activities to beundertaken during the design phase, for which funding for about 70 man-monthsof expatriate and local consultancies has already been agreed with ODA, wouldinclude:

(i) consultation with local people, NGOs, District governments, ForestDepartment, Kenya Wildlife Services, Ministry of Agriculture, andMinistry of Lands and Settlement;

(ii) detailed ecological, timber, and nontimber inventories;

(iii) socioeconomic studies to identify the current importance of theforest for local people, the nature of local pressures andconflicts, and ways of minimizing the social costs of conservation;

(iv) applied research into sustainable extraction and forestregeneration;

(v) design studies covering extension forestry, forest zoning andmanagement, plantations, education, training, and institutionaldevelopment;

(vi) in the Mau only, design studies covering Okiek resettlement,settler assistance requirements, and the future of hunting andgathering within the reserves.

The second phase of the pilot projects is expected to start in year 2; ODAwould provide additional funds on the basis of the design agreed with GOKduring year 1. This project would follow a process approach, and would aim todevelop a cost-effective and replicable model for indigenous forestconservation in Kenya. An important prerequisite for success will be agreater emphasis on meeting the needs of local people--thus reducing thedemands on the forest-- and on finding a balance between participatory andprotectionist approaches to conservation.

- 20 -

(c) Industrial Plantations Development (US$17.9m)

3.20 Objectives. The component would aim at maintaining a sufficientsupply of industrial timber for the country's future needs and at reducing thepressure on the indigenous forests. Emphasis would be on the improvement ofmanagement and protection of the existing plantations, as well as on timelyand successful replanting after clear felling, rather than on expansion. Thecomponent would consist of the four following main activities:

3.21 Strengthening of FD's Plantation Establishment and MaintenanceCapacity. The focus would be on IFD manpower development and rehabilitationof field facilities. The project would provide in-service training inplantation management, planning and operations of IFD field staff, as follows:an equivalent of 12.5 man-years of intensive refresher courses in generalmanagement and forest management at KFC Londiani for about 200 professionaland technical officers; 30 man-months of training in fire protection for 60staff (para 3.23); 9.5 man-years of short-term technical training inmicro-computer skills and FD documentation, reporting and procedures for150-200 trainees; 16.5 man-years for short-term training of 400 forest guards;and 4.5 man-years for short-term courses for headmen. The project would alsoprovide 3.5 man-years of technical assistance as part of an overall managementpackage (para. 3.33).

3.22 The project would finance the acquisition of 53 new vehicles, 15standard trailers and ten tanker trailers, as well as the rehabilitation of 42vehicles and their operation and maintenance to meet IFD's transportationneeds in the field. Provisions would also be made to renovate some foreststation buildings and construct 50 new forest guard posts to accommodate 100guards. Other investment items would include basic survey and mensurationequipment for forest stations needed for planning and supervision work.

3.23 The project would rehabilitate and upgrade the fire protectionsystem by financing the construction of 50 fire towers, three fully equippedfire tenders with tanks, three pick-ups, fire fighting equipment and twoman-months of technical assistance from a forest fire expert and training for60 staff in fire fighting techniques. Provision would also be made to repair25 existing radio sets and replace 55 old sets to set up an efficient radiocommunication network in fire prone areas; this network would cover the bulkof the plantation areas and would also serve the communication needs ofgeneral management and supervision. A short-term consultant would be providedfor two months to help install the new communication equipment and oversee therepair of existing equipment. These provisions would also cover fireprotection in indigenous forests.

3.24 Operations in Plantation Forest. Funding would be provided fortools, equipment and supplies, including nursery materials, for (i) thereplar.ting of 3,300 ha annually of clear felled areas (1000 ha of pine andcypress for saw logs, 1300 ha of pine and cypress for pulpwood, and 1000 ha ofeucalyptus for poles); (ii) new planting of 700 ha annually during projectyears 2-6 (500 ha of pine and cypress, and 200 ha of eucalyptus), and (iii)silvicultural maintenance operations (pruning, coppice reduction, earlythinnings, fire break clearing, game moat maintenance, etc.) over the entireplantation estate of about 170,000 ha. The area of replanting and new

- 21 -

planting under the project would total 23,300 ha and all of this would beestablished with commercial species. Provision would also be made by theproject for the use of casuals mostly in the sawlog and eucalyptus poleworking circles, especially during the peak planting and tending periods.Part of the establishment and early maintenance work (about one third) wouldbe expected to be carried out by the private sector through the Harambee-typecontributions (para. 3.27).

3.25 The project would also rehabilitate about 1,680 km of forest roadsin priority areas in the plantations, 1,050 km by contract and 630 km by forceaccount. An additional 200 km would be rehabilitated by Pan-African PaperMills (PPM) in the pulpwood working circle. Road maintenance would be carriedout over a total of 3,200 km, one fourth by contract and three fourths by twoFD road units. No construction of new roads is foreseen. The project wouldfinance 7 new vehicles and 4 tipping trailers, as well as the rehabilitationof 18 vehicles, and their operations and maintenance costs. These vehicleswould be placed under the two FD road units to be restructured at Londiani andNyeri (para. 4.08). Provision would also be made for tools, equipment,materials and supplies needed by the road units for the force account portionof these works. In addition, the project would fund vocational training,totalling 27 man-months, for all machinery operators and 10 man-months oftechnical and management training to higher level road unit staff.

3.26 Funds would be included for the acquisition of some specialequipment and improved tools to be used in work method trials in connectionwith a work study investigation. The investigation, which would be part ofthe FMP component, would aim at improving the presently low productivity ofFD's permanently employed labor.

3.27 Commercial Sector Involvement. There is a need to involve thecommercial sector to participate in the establishment and management ofindustrial plantations on a long-term basis. Recently, the FD has cooperatedsuccessfully with private sawmillers in maintenance of industrial plantations.At negotiations, the Government agreed to prepare a framework to encourageprivate sector involvement in industrial forestry by the mid-term review (para4.13). This issue would also be explored under the Forestry Master Plan(para. 3.44).

3.28 Efforts toward Increasing Revenues from Industrial Plantations.The project would strengthen the system of royalty collection. While stumpagerates have been raised to levels roughly in line with replacement costs,actual collection of royalties has decreased to a present low level of aboutor below 40 percent of the value of commercial timber removed. The projectwould strengthen the Forest Inventory Section to assess compartments earmarkedfor felling and to extend the practice of standing volume assessment to alldistricts with industrial plantations. The number of assessment teams wouldbe increased from six to eleven and the position of a Supervisor of RoyaltyAssessment added to intensify the supervision of the teams; for this purpose13 incremental positions would be established and filled by retrained FD staffby mid-1991. Funds would also be included for the purchase of 13 vehicles

- 22 -

S/ plus their operation and maintenance, and computing and field equipmentto render the teams fully functional and improve the Section's data processingspeed. With these measures it is expected that royalty collection wouldimprove rapidly (para. 5.17 (b)).

3.29 FD would introduce separate accounting for IFD's operations fromthose of the rest of the Department by June 30, 1991; assurances to thiseffect were obtained from GOK at negotiations. The PPF includes 6 man-monthsfor the services of an accountant to initiate this process (para. 3.54). Inaddition, FD would complete a review of the method of royalty assessment andintroduce improved methods for the determination of stumpage rates bySeptember 30, 1991 (para. 5.16).

3.30 The ongoing inventory of the industrial plantations (para. 3.19) iscrucial for providing the data base required for the improved management ofthe plantations and as inputs in the FMP component. To accelerate theinventory, the project would provide under the PPF the acquisition of astereoplotter system and of a vehicle to be used for monitoring the work offield inventory teams.

(d) Strengthening of FD's Central Functions (US$8.4 m 6/)

3.31 Objectives. This component is designed to help FD to put in placestaff and management structures to administer its field organization and servethe forestry subsector more efficiently within a reoriented spectrum ofactivities. In particular, the institutional strengthening activities wouldimprove FD's technical and management skills, capacity in planning, policyformulation, as well as of implementation, supervision and monitoring. Thecomponent would also assist FD senior staff in redefining the Department'srole and responsibilities in relation to the private sector.

3.32 Strengthening of PD Headquarter Functions. Considerable supportwould be given to in-service training of HQ professional staff. This wouldcomprise both management and technical specialist training and range fromshort-term workshops to postgraduate studies. Provision would also be made tocover the costs of regular management meetings of the Project ImplementationTeam (PIT). Altogether some 50 man-months of domestic training and 7man-years of overseas training would be financed. Management training wouldcenter on enhancing the skills of FD key officials at HQ and provincial levelsin the preparation and use of up-to-date steering methods, such as Annual WorkPlan, reporting and M&E systems (paras. 4.11 and 4.12).

3.33 A team of six long-term specialists would assist PIT with importantmanagement and operational tasks (para. 4.04). The team would consist of aspecialist in project management planning/M&E (team leader), forestengineering (para. 3.35), procurement, financial control, industrialplantations management and training (Annex 9 Appendices 1 and 2). Terms of

5/ One vehicle tu be procured under the PPF.

6/ Costs in relation to institutional strengthening not included in theother project components.

- 23 -

reference are given in Annex 9, Appendix 4. The majority of these specialistswould be recruited from an overseas organization that is successfullyoperating similar large-scale production forests as in Kenya and is alsoexperienced in conservation forestry. Working with their counterparts, thespecialists would stay with the project until after the mid-term review, i.e.,about 3 1/2 years. In addition, 26 man-months would be provided forshort-term consultancies, including a consultancy for a Labor Profile Study(para. 3.36).

3.34 The project would finance the acquisition of ten new vehicles forHQ needs, and their operation and maintenance. As HQ offices and staff are atpresent dispersed among several separate office blocks in Nairobi, MENR/FDneeds to acquire a central HQ office without which the project as well asother FD operations could not be run efficiently. The FD has receivedbudgetary allocations from the Ministry of Finance to finance the constructionof an office building which is expected to be completed in three years. Inthe meantime, the project would finance under a PPF temporary prefabricatedoffices so that the FD could become fully operational and start implementingthe project. As a condition of effectiveness, GOK would submit evidencesatisfactory to IDA showing that adequate offices for FD have beenconstructed. The project would also finance office equipment, furniture andsupplies, nine man-months of specialist expertise in modern office design andprocurement, and the installation of a new radio-communications networklinking FD's HQ with 19 selected field offices/stations.

3.35 Strengthening of FD Road Development and Transport Functions. AnEngineering Unit would be established at HQ to plan and supervise mattersrelated to FD roads and transport and to take responsibility for themaintenance of FD's fleet of plant and vehicles, including the arrangementsand supervision of contracted work (para. 4.08). The project would fund theemoluments of a senior mechanical engineer as a new position in the unit. Theproject would also finance the services of a forest engineering specialist aspart of the management support package to HQ (para. 4.04). Provision would bemade for the training of all staff of the Engineering Unit at HQ and at theunit's three repair workshops, as well as the operators/drivers of FD's entirefleet of vehicles, totalling 19 man-months of professional and technical leveltraining and 34.5 man-years of vocational training. 7/ The project wouldprovide five new vehicles for the Engineering Unit, and improvement ofworkshop facilities and the acquisition of repair and service tools andequipment for the three workshops.

3.36 Heasures to Improve Labor Productivity. Throughout the project, FDwould endeavor to improve the productivity of its permanently employed laborwhich has been an unresolved, serious issue in previous projects (Annex 6,para. 7, and para. 2.22). Significantly improved FD labor productivity is akey objective and is implied in this component's economic rate of return(para. 6.11). At negotiations, GOK agreed that a monitorable action plan toimprove labor productivity would be submitted to IDA by June 30, 1991 and thatimplementation would commence by September 30, 1991. To provide the basic

7/ This excludes training of the staff in the two road units which isincluded in industrial plantations operations (para. 3.29).

- 24 -

data for such a plan, a study of the productivity and profile of the laborforce would be completed as a condition of effectiveness.

(e) Forestry Education - Kenya Forestry College Londiani (KFC) (US$1.7 m)

3.37 Objectives. Pending the results of the forestry subsector manpowerdemand study which would be one of the input studies of the FMP (Annex 7,Chart 2), this component would, as an interim measure, redress some of themore obvious deficiencies in pre-service forestry education at the technicallevel. It would assist in reorienting KFC programs in various new directions,such as extension/farm forestry and modern management of plantation andindigenous forests, to meet the needs of a changing forestry subsector. Itwould also aim at improving teacher proficiency and reducing teacher turnover.It would be complementary to current GTZ support.

3.38 Development Support. In-service training of KFC teachers would beprovided in the form of ten M.Sc. fellowships and two B.Sc. fellowships,pedagogic short-term training for eight staff, and special subject short-termcourses for ten staff, totalling 30.5 man-years, of which 12.5 man-years wouldbe overseas. The project would also finance six months of technicalassistance by a senior forestry educationist to assist with curriculadevelopment early in the project; terms of reference are given in Annex 8,Appendix 2. There would be provision for seven new staff houses to improveteachers' living conditions. The project would fund three new vehicles andthe reconditioning of five existing vehicles for student and stafftransportation, as well as the costs of their operation and maintenance. Itwould also provide additional field teaching equipment to be purchased.

3.39 The project would finance the refurbishment of the existingdormitories, which at a later time could be available for vocational trainingof FD subordinate staff. Funds would also be included for the construction ofa senior staff hostel as accommodation for professional and technical staffmainly from FD, attending in-service training courses under the project (para.4.09).

(f) Forest Research - Kenya Forestry Research Institute (KEFRI)(US$8.6m)

3.40 Obiectives. This component would assist KEFRI in the successfulimplementation of its long-term Strategic Plan 2000 which aims at servicing anumber of clients in addition to FD, including wood-based industries, NGOs andfarmers undertaking tree planting. The component, which would focus onimproving research facilities and upgrading staff proficiency, would be thefirst phase of a longer process of developing KEFRI's capacity for researchand dissemination. The project would assist the institute to branch out intonew priority research areas, such as the conservation and management ofnatural forest ecosystems, the protective function of trees in soil and waterconservation, energy production from wood, and farm forestry utilization,including related social and economic issues.

3.41 Improvement of Research Facilities. The project vauld improve andexpand office, laboratory, greenhouse, and other facilities and staff housingat KEFRI HQ at Muguga, the Forest Products Research Section at Karura, two

- 25 -

National Forest Research Stations at Gede and Turbo, and two Field ResearchCenters at Kibwezi in the ASAL and Londiani. About 1600 m2 of additionalworkspace in new buildings would be created, and four new resthouses and about100 new staff dwellings built, as well as 24 houses renovated. Provisionwould be made for furniture in the new office space and resthouses, for field,laberatory and office equipment, including computers, an equipment repairworkshop, as well as additions to the library and publication facilities.Staff mobility would be ensured by financing the purchase of 38 new vehiclesand 12 motorcycles, the reconditioning of 15 existing vehicles, theiroperation and maintenance cost, and the construction of garage space and twovehicle repair workshops.

3.42 Uptrading of Staff Proficiency. The project would assist KEPRI inthe training of its expanding staff both in the form of formal degree trainingand shorter in-service courses. Overseas fellowships for Ph.D and M.Sc. (73man-years) and Diploma training abroad (60 man-months) and in Kenya (13man-months) would be provided, benefitting 40 suitable staff. Provision wouldfurther be made for short courses (23 man-years of which over 90 percent wouldbe local) for most professional and technical staff. These courses wouldrange from general subjects, such as research methods, statistics and computertechnology, to selected specialty subjects and dovetail with technicalassistance (4.5 man-years) which would be in the form of seven advisoryconsultancies in priority fields of research and research support disciplines;terms of reference for the only long-term consultancy are given in Annex 9,Appendix 4.

(g) Forestry Subsector Haster Plan (FMP) (US$5.3 m)

3.43 Background and Obiectives. The recent Forestry Subsector Reviewhas identified the critical subsector issues and indicated the nature of itsrequired re-direction. The next step would be to formulate a developmentframework with quantified targets and clearly defined investment projects.The definition of long-term development parameters for the subsector would bethe primary goal of the FMP. In particular, the FMP component would help: (a)formulate a long-term development strategy and establish targets, (b) preparean action plan with development and institutional support programs, and (c)prepare investment projects for the implementation ef the plan. The forestrymaster planning process would aim at providing inputs for the resolution ofdifficult sector issues and the formulation of an up-to-date national ForestryPolicy (para. 3.45).

3.44 Contents of FHP. The FMP would be essentially an in-countryexercise of three years' duration involving all agencies, both public andprivate sector including NGOs, active in forestry and the agriculture/ruralsector, as well as interested external donors. In addition to inter-agencycoordination, there would be heavy emphasis on: (i) improvement of thesubsector's data base including a number of studies as a basis for decisionmaking; (ii) development and installation of planning systems, and trainingin their use; (iii) training in various subject matters through workshops,seminars, course work and scholarships; and (iv) District-level forestrydevelopment. Approximately 25 man-years of international and localconsultants would be required during the preparation of the plan. Thecomponent would also provide for the transport and office accommodation and

- 26 -

equipment. The FMP process would commence in November 1990 and is scheduledto be finalized in the first half of 1993. By late 1993, detailed preparationwould be completed for a series of projects. An implementation schedule forthe FMP component is given in Annex 7, Chart 2.

3.45 Forest Policy. The Project Steering Committee (para. 4.02),assisted by its secretariat, would prepare an up-to-daLe Forest PolicyFramework, in consultation with IDA, by July 31, 1991. After the FMP iscompleted, the committee would then develop the Policy Framework into a fullForest Policy Statement and adopt it as the country's Forest Policy bymid-1993; assurances to this effect were obtained from Government atnegotiations.

D. Prolect Costs

3.46 Total project costs during the six-year investment period,inclusive of taxes and duties, are estimated at KSh 1,939 million (US$ 83.8million) with a foreign exchange component of 50 percent. Taxes and dutiesare estimated at KSh 237 million (US$ 10.3 million). Thus project cost net oftaxes is estimated at KSh 1,702 million (US$ 73.5 million). Detailed costestimates are presented in Annex 2 and summarized in Table 1 below.

Table 1: PROJECT COST SUMMARY

(SHILLII4S '040 0SS 000)

2 Total I TotalI Forom 0l,. Z Foreoig DM

Local ForNian Total rchw, Costs Local Forei,n Tot l Ech Costs

A. FM PlST1T

1. FESt 1mS FIEU V WUATImNS - *ILOt 1S8183118 8W241.? 5.101.S 13,343.6 38 1 366.3 226.7 593.1 38 12. s1P91 TO etft FAl£ST 11U1T988 497.6 1,9.4 2,484.0 g0 0 22.1 38.5 110.6 80 e3. FEW ST4f ST16E1111 4604.3 57103.9 103-50.2 55 6 2,062.4 2.518.0 4,600.4 55 6

Stb-Totl F1 FMSRl 55.143.7 64,196.1 119,339.8 54 7 2,450.8 2,853.2 5,304.0 54 71. IDM M FOICST MMw

1. I iSTEII 8 II FAmUST 08 840 I MS t Tl N DIVIS1O 435g2.1 g9,221.3 332,804.0 67 8 1937.0 3,65.4 5,902.4 67 02. FAUSTUT WAUTITS 42,752.2 18,20.4 81,72.6 31 4 1M900.1 836.5 2-736.6 31 43. FOAST IN ENT 39P995.?9.2 8. 49. O .0 20 3 1.m.6 444.4 2,2,l 20 34. FAUST INJET I A09I1 Of N- FORM 52,993.4 12,6W4.7 182,682.0 71 It 2,355.3 5S763.9 8119.2 71 115. PIlOT E0ES 49,06.9 61,47.1 110.484.0 56 7 2,18.8 279.7 4,910.4 56 7

SrTotal D18838193 FOW 9 228,390.4 309,146.2 537.526.6 53 34 10-150.7 13,739.8 23.890.5 5S 34C. nu913 LMIATIU

I. 9. 0 MSIIITWU 89ca818 TIT T 19,746.0 61,846.8 141,554.8 44 9 3-544.3 2.747.1 6,M.3 44 92. IETAUINT OF m8TIOf MMn 2,492.3 4,879.7 7.372.0 66 0 110.8 216.9 327.6 66 03. m18T1111 ff EXISTIS .mAWITAUSS nSl PlDTEtT101 10,179.1 11,406.5 22,215.5 51 1 483.5 507.0 990.5 51 14. FlFT Mu3 IEIIT 151,574.2 55.3J7.9 206,M.1 27 13 6,736.6 2.462.1 9,198.8 27 135. 9184 TO f889LT _EIT WE L A ECTI84 14.432.6 9,494.3 239M.0 40 1 641.4 422.0 1.063.4 40 1

SrTOt UI3IETRI. PUTAT1I 259.124.1 142,987.2 402,111.4 36 25 11.516.6 6t3.0 17.871.6 36 25L ET1I)T1lTN1 419UJ2

1. 8119ST1118 Of FAUST 11,T401 59,112.5 95.407.0 154,599.5 62 10 2.06.2 4.243.9 6,t71.1 62 102. t9OaUES fa .1 fWI T 10WANT ICM 15.250.1 18,241.0 33,491.0 54 2 677.8 810.7 1,418.5 54 2

Sub-Tot4l IJSTIIMJTI UWlltI 74,362.6 113,727.9 101.090.5 64 12 3.305.0 5.054.6 8,359.6 60 12E. FORUSM UENI 5U621.1 108358.2 19139.3 5 II 3,905.4 4,015.9 0-621.3 5t 12F. NES111.11 18n4 212,87.4 17,349.2 3-436.5 45 2 937.2 771.1 1.7t8.3 45 26. FIOUES111 9PLO. t2.m.3 04,8n.3 117,652.5 n 7 567.7 4,661.3 5,229.0 89 7

TOal hLEU 1161 736,502.5 860,644,1 1,57.146.6 54 100 32,733.4 38250.8 70.984.3 54 100POilcl Ctti6ga6s 62,874.0 59.036.5 122.510.5 49 8 2,794.4 2.650.5 5,444.9 49 8Prei Cmtins 109,243.9 110,504.7 219,748.6 50 14 3,7M2.1 3699.1 7,401.2 50 10

Total 1aCT M5 908,620.4 1,030,705.2 I,3,405.7 53 121 39,229.9 44.400.5 83,030.4 53 11

T.v 2. 190M 16:37

- 27 -

3.47 Cost estimates are based on projected October 1990 prices andreflect recent quotations and appraisal estimates. Physical contingencies of10 percent have been applied to the base cost of capital items and operatingcosts and 5 percent to that of salaries. Price contingencies, amounting toUS$7.4 million or 10 percent of total base costs, have been estimated usingthe following rates of inflation per calendar year consistent with latest Bankprojections: 7.5 percent in 1991 and 5.5 percent from 1992 onward for localcurrency, and 4.9 percent from 1991 onward for foreign currency.

E. Financing

3.48 External financing of project costs would amount to US$61.0million, or 83 percent of total project costs and would be shared as follows:

Table 2: PROPOSED PROJECT FINANCING (US$ m)

Source Local Taxes Foreign Total X of Total Z of Total

of Currency and Exchange Project Net Project

Finance Costs Duties Costs Costs Taxes&Duties Costs

IDA 7.2 - 12.7 19.9 27 24EEC 4.1 - 11.7 15.8 21 19ODA 4.3 - 9.4 13.7 19 16SDC 2.3 - 3.3 5.6 8 7FINNIDA 0.7 - 5.3 6.0 8 7

Sub-totalForeign 18.6 - 42.4 61.0 83 73Donors

GOK 10.3 10.3 2.2 22.8 17 27

TOTAL 28.9 10.3 44.6 83.8

3.49 The funds of all external donors would be contributed as parallelfinancing. Financing of the co-financiers would be on grant terms. Projectfinancing by component is shown in Table 3.

3.50 GOK contribution, net of taxes and duties, is estimated at KSh 289million (US$12.5 million equivalent), representing 17 percent of total netproject costs. In total, it would finance about 50 percent of the civil worksand 55 percent of the recurrent costs. GOK has included the project in theForward Budget and has made adequate budgetary allocations in its FY 1990/91budget for the project.

- 28 -

3.51 Project start-up activities would be financed by IDA under a ProjectPreparation Facility (PPF). PPF cost, which has been estimated at US$ 1.5million and is included in the total project cost, is given in Annex 2,Table 5.

Table 3: PROJECT FINANCING BY COMPONENT

Component Category Financiers

Farm Forestry Investment Costs SDC (95Z), GOKOperating Costs SDC (412), GOK

Indigenous ForestManagement:Strengthening Forest Protection Investment Costs EEC (82Z), GOKand Conservation Div. Operating Costs EEC (39Z), GOKForestry Operations Investment Costs EEC (56Z), GOK

Operating Costs EEC (39%), GOKForest Road Developmient Investment Costs EEC (502), GOK

Operating Costs EEC (392), GOKForest Inventory & Assessment Investment Costs ODAof Non-wood Products Operating Costs ODA (712), GOKPilot Schemes Investment Costs ODA

Operating Costs ODAIndustrial Plantations Investment Costs IDA (612), GOK

Operating Costs IDA (382), GOKInstitution Building Investment Costs IDA (892), GOK

Operating Costs IDA (392), GOKForestry Education Investment Costs EEC (802), GOK

Operating Costs EEC (392), GOKForestry Research Investment Costs EEC (772), GOK

Operating Costs EEC (392), GOKForestry Master Plan Investment Costs FINNIDA

Operating Costs FINNIDA

F. Procurement

3.52 A Country Procurement Assessment Review was carried out for Kenyain February, 1987. Where International Competitive Bidding (ICB) proceduresare used, qualified domestic manufacturers would be allowed a margin ofpreference of 7.5 percent for civil works and 15 percent for goods or theexisting rate of import duties, whichever is lower, over the CIF price ofcompeting foreign suppliers. For Local Competitive Bidding (LCB), GOKprocedures were found to be on the whole acceptable, except for theprocurement of vehicles and hiring of, consultants where preference is given tolocal firms.

3.53 Procurement arrangements for items financed by IDA are summarizedin Table 4. It is expected that 50 percent of goods and works financed by IDAwould be procured through ICB and 47 percent through LCB. Procurement byother methods, including training and consultancies, would constitute 28percent of total IDA financing. The proportion of ICB is low because theproject involves a large amount of rehabilitation on roads that are small and

- 29 -

scattered in remote areas and hence not attractive to internationalcontractors (see para. below). Procedures for ICB would follow Bankguidelines. Procedures for LCB shall be reviewed by IDA and include publicbid opening, clear evaluation criteria, local advertising and award shall bemade to the lowest evaluated responsive bidder. Procurement for thoseproject elements financed by the cofinanciers would follow their respectiveprocurement procedures. Pricing indexing mechanisms would not be necessarysince the civil works contracts would not exceed one year. Similarly, withrespect to goods, deliveries are usually over a short period of time.

Table 4: PROCUREMENT METHOD AND DISBURSEMENTS(US$ million)

Procurement Method TotalProject Element ICB LCB Other N.A./a Cost

1. CIVIL WORKSRoads Rehabilitation 7.20 2.60 9.80

(3.60) (3.60)Roads Maintenance 1.20 1.20

(0.40) (0.40)Buildings 1.30 3.80 5.10

(1.10) (1.10)2. GOODS

Vehicles 3.60 0.10 10.20 13.90(3.60) (0.10)/b (3.70)

Equipment & Materials 2.20 0.30 5.70 8.20(2.20) (0.30) (0.30)/c (2.80)

3. TRAINING 9.20 9.20(1.10) (1.10)

4. TECHNICAL ASSISTANCEManagement Support 3.80 3.80

(3.80) (3.80)Farm & Extension Forestry 2.10 2.10Forestry Research 0.80 0.80Curriculum Design 0.10 0.10

5. TECHNICAL SERVICESForest Inventory 4.40 4.40Indigenous Forest Pilot 0.60 0.60Design/Studies 0.60 0.60

(0.40) (0.40)Forestry Master Plan 4.60 4.60

6. SALARIES AND ALLOWANCES 2.10 2.10(0.40) (0.40)

7. OPERATING COSTS 13.30 13.30(2.60) (2.60)

8. PILOT PROJECT FUND 4.00 4.00

TOTAL 5.80 10.10 35.90 32.00 83.80(5.80) (5.50) (5.60) (3.00) (19.90)

la Mainly items rinancea Dy otner aonors ana tnererore follow tneir respectiveprocurement procedures.

lb Procured under the PPF/c Comparative shopping, of which about 50Z is for materials for works

to be carried out by force account

- 30 -

3.54 Civil Works. The Civ!l Works category consists mainly of therehabilitation and maintenance of forest roads (US$4 million IDA financing),the construction and rehabilitation of office buildings and staff houses andvarious forest structures such as fire towers, etc. (US$1.10 million). It isestimated that there would be 50 small contract packages (in about 150 foreststations) for roads to be rehabilitated over the six-year period. Contractsover US$1 million equivalent would be procured through ICB. However, civilworks contracts under the project are not expected to exceed this amount.These works would be procured through LCB, under procedures satisfactory toIDA, and where foreign firms are eligible to bid. The initial LCB documentwould be reviewed by IDA. To the extent practicable, contracts would begrouped in suitably sized packages of about US$200,000 each to improve theresponse from contractors and provide more competition.

3.55 IDA financing would also include materials for a small amount ofrehabilitation of roads (US$.09 million) and buildings ($ 06 million) to becarried out by force account. These materials would be in small packages andprocured through comparative shopping. (The labor is not included in projectcosts as it is already employed by FD's existing road units and is notincremental to the project.) Force account would be used to rehabilitateforest roads and buildings in remote locations with no local contractors,where mobilization costs for outside contracts would be too high. A secondpurpose is to train FD's maintenance crews, which would also be strengthenedthrough inservice training and technical assistance under the project (Annex7, Table 3). At the mid-term review, the costs and efficiency of roadmaintenance through local contracting and force account would be compared anda decision would be made on arrangements for future road maintenance.

3.56 Vehicles and Equipment. Vehicles (US$3.6 million) and equipment(US$2.2 million) would be procured under ICB in accordance with World BankGuidelines. Items would be grouped in packages, to the extent possible, inorder to attract major dealers and suppliers. Contracts for less than$100,000 up to an accumulated total of US$300,000, may be procured through LCBin accordance with procedures acceptable to IDA. Comparative shopping, basedon at least three quotations, or purchasing off the shelf, would be allowedfor goods under US$20,000 up to a cumulative total of US$150,000.

3.57 Technical Assistance and Services. IDA financed consultants wouldbe selected through short listing and competitive procedures in accordancewith the Guidelines for the Use of Consultants by World Bank Borrowers and theWorld Bank as Executing Agency (August 1981). The consultants' qualificationsand experience and conditions of employment would also be satisfactory to IDA.IDA financing would be used for the management support team (US$3.8 million),and technical services for FD headquarters (US$.4 million).

3.58 Review of Procurement. Bidding packages estimated to cost overUS$200,000 for civil works and US$100,000 for goods and equipment procuredunder ICB would be subject to prior IDA mandatory review of documentation.Contracts below these limits would be subject to selective post-award review.Thus about 80 percent of the total contract value of IDA procurement would besubiect to review.

3.59 Procurement Capacity. The FD has little experience in IDAprocurement procedures since little has been procured under previous projects.Technically, the FD has authority for independent action on procurement

- !I -

processing, subject to GOK Tender Board procedures for final approval ofcontract awards. However, the FD lacks capacity and managerial skillsnecessary for expeditious procurement. To remedy this, the project wouldprovide a management support team to assist the PIT in procurement and othermatters. A procurement specialist to be financed under the PPF would helpfinalize procurement packages and preparation of tender documents.

G. Disbursements

3.60 The proceeds of the IDA credit would be disbursed over six and ahalf years against the following categories, net of duties and taxes:

Cat I(i) Vehicles 1002 of foreign expenditure1002 of ex-factory local costs

Cat I(ii) Furniture and Equipment 1002 of foreign expenditure1002 of ex-factory local costs

Cat II Civil Works 502 of total expenditure

Cat III Incremental Operating Costs 1002 of annual aggregates 8/

Cat IV Training and Study 1002 of total expenditure

Cat V Technical Assistance 1002 of total expenditureand Technical Services

Cat VI Refunding of PPF 1002 of total expenditure

3.61 Disbursement categories have been designed so that each categorycorresponds to a group of accounts in the Government ledger. However, in orderthat statements of expenditure (SOEs) may be linked to relevant ledgeraccounts as well as supporting documentation, the Forestry Development Projectitems would be clearly indicated and separated from other sources of funding.Disbursements for incremental operating costs, local costs and local trainingcosts will be made against statements of expenditure, which will be preparedmonthly. The Deputy Director/Project Manager of PIT will certify that thesestatements are in agreement with the relevant ledger accounts. The ledgeraccounts and supporting documentation will, however, be retained forinspection by IDA and for audit purposes. Disbursements against all otheritems would be fully documented except for contracts costing less than US$20,000 equivalent where certified SOEs will be used. SOEs will be certifiedby the Deputy Director PIT and supporting documentation retained by the PITand made available for review by IDA during the course of project supervisionmissions. It is anticipated that the credit would be fully disbursed in a sixand a half-year period (see Annex 1). This schedule is based on the standarddisbursement profile for agricultural operations in Kenya.

8/ A declining proportion of incremental operating costs, amounting todisbursements of up to SDR 0.3 million in FY1991, 0.9 million in FY1992,1.5 million in FY1993, 1.8 million in 1994, 1.925 million in FY1995 and2.025 million in FY1996.

- 32 -

3.62 A foreign exchange special account would be established with acommercial bank through the Central Bank of Kenya on terms and conditionssatisfactory to IDA. Upon project effectiveness and on request of MOF, IDAwould deposit an initial amount of US$1 million equivalent in the specialaccount, representing about three month's expenditure. Replenishment of thisspecial account will be requested in line with IDA guidelines. Replenishmentclaims to IDA would be aggregated in amounts not less than USS 50,000.

H. Accounts and Audit

3.63 Technical assistance would be provided to assist in structuringFD's finances and maintaining accounts (paras. 3.30 and 3.34). KEFRI wouldalso receive assistance in maintaining project accounts. Assurances wereobtained at negotiations that (a) separate accounts would be maintained inaccordance with sound and generally accepted accounting principles andpractices acceptable to IDA; (b) records would be kept permittingidentification of all receipts and payments under the project; (c) financialstatements, including a sources and uses of funds statement, would be preparedat the close of each fiscal year; and (d) a certified copy of the accounts,together with auditors' report, would be submitted to IDA within nine monthsof the close of each fiscal year, including a separate opinion on the SpecialAccount and on the records and accounts used to support disbursements againstSOEs. In addition, as a condition of effectiveness, GOK would submit to IDAoutstanding audit reports (for the period July 1988-December 1989) prepared byindependent auditors for the Third Forestry Project. The responsibility forauditing FD's accounts, as in the case of all Government entities, lies withthe Auditor General. At the end of each fiscal year the Auditor General woulddetermine his office's ability to carry out the audit in time and decidewhether to appoint private auditors, acceptable to IDA, to audit the projectaccounts, the special account at the commercial bank and the statements ofexpenditure.

IV. PROJECT IMPLEMENTATION

A. General

4.01 The project would be implemented over a six-year period, precededby a mobilization period of about six months supported by a PPF (para. 3.51).Two ministries would have direct implementing responsibility: (i) MENR,through FD, for six of the project's seven components, and (ii) MRST, throughKEFRI, for one component, i.e., the forest research component. Theimplementing agencies, i.e., FD and KEFRI, would implement their respectivecomponents essentially under their existing organizational structures, withonly few re-arrangements required at this time (paras. 4.05 to 4.10). Aproject implementation schedule is included in Annex 7, Chart 1. Incrementalproject staff would be recruited mainly from within FD and retrained for theirnew positions.

- 33 -

B. Organization and Management

4.02 Project Steering Committee (PSC). Because of the wide forestrysubsector perspective to be adopted by this project, implementation would becoordinated through a Project Steering Committee (PSC), wnich has beenestablished. This would comprise a high-level, multi-disciplinary grouprepresenting the principal interests in the subsector, including Governmentministries (KENR/FD, MRST/KEFRI, MED/DFMU; MOA, MOE, MRDASAW; MOF, MPND, OP),the wood-using industry, and NGOs. Additional agencies would be co-opted asappropriate. The PSC would be chaired by the P.S. of MENR and have members ofat least Department Director or equivalent level. It would meet at leasttwice a year, but more often if necessary, and have the Project Manager (aDDF) as its Secretary. Its main functions would be to discuss and makerecommendations upon matters concerning: (i) project progress; (ii)high-level inter-agency coordination; and (iii) policy issues. The PSCSecretary would select from FD HQ a small number of managers and technicalspecialists, both staff and consultants, involved in the implementation of theinvestment components and the FMP component to form the secretariat for thePSC. He would also attend to the logistics of donor coordination, e.g. byperiodically calling aid-coordination meetings and by hosting co-supervisionmissions of the project's external donors.

4.03 Project Implementation Team (PIT). The project would be executedby a PIT headed by one of FD's Deputy Directors as its full-time ProjectManager (PM), and including the five HQ Division Chiefs and the Principal ofKFC plus representation in a coordinating role from KEFRI. Although the PITwould manage the FD part of the project as an integrated and balancedoperation, each component would retain a Lonsiderable degree of autonomy toensure its own sustainability.

4.04 Within the PIT, members 9/ would each be responsible for theplanning, execution, supervision and monitoring of project activities withintheir special fields, working through the existing Provincial and Districtfield organization. There would thus be no need to establish a specificproject management unit. The PM, assisted by a full-time Assistant ProjectManager (APM), would establish project implementation routines, guide overallexecution, and maintain linkages with other public and private organizationsin the subsector. A Project Service Unit (PSU) would be installed in the FDto service the PIT with capacities in MIS and monitoring, document production,accounting, and procurement. Management support to the PIT would be providedby advisory TA inputs on a consultancy basis (para 3.33). Finalization ofcontract negotiations for a management strengthening arrangement at FD HQ

9/ These would be the Division Chiefs of: (i) the Forestry ExtensionServices Division for the farm forestry extension component; (ii) theForest Protection & Conservation Division for the indigenous forestmanagement and conservation component; (iii) the Industrial ForestryDivision for the industrial plantations development component; (iv) theManpower Development Division for FD in-service training; (v) KFC'sPrincipal for the forestry education component of KFC; (vi) the ProjectsDevelopment & Monitoring Division for the Forestry Master Plan component(see para 4.10; and (vii) the Director of KEFRI for the forest researchcomponent).

- 34 -

through a management support package from a suitable organization would be acondition of effectiveness.

4.05 Farm Forestry Extension. A new Extension Monitoring Branch hasrecently been set up in FESD because of this division's particular needs forcontinuous assessment of achievements. FESD HQ is still understaffed and fourprofessional staff would be appointed in addition to the existing ten to makeit fully operational (para. 3.06). FESD would in the three pilot districtsformally cooperate in extension activities with MOA's Extension Service (para.3.11). FESD and MOA have agreed on a Memorandum of Understanding defiuing themodalities and extent of cooperation between their extension services.

4.06 Indigenous Forest Management and Conservation. A major changewould be the re-education of 750 forest guards for their new function inconservation and their purposeful redeployment (paras. 3.14 and 3.16).Provision would also be made for the employment of six additional qualifiedprofessionals as conservation foresters (para. 3.14), and for 60 incrementalstaff to carry out the forest inventory (para. 3.17).

4.07 Industrial Plantations Development. Thirteen additional staffwould be transferred to strengthen the royalty assessment and collectioncapacity of IFD (para. 3.28). Separate accounts of IFD from the rest of FDwould be established by 30 June 1991 (para. 3.29). The successfulimplementation of this component would be mainly affected by: (i) the adoptionof efficient planning, management and supervision systems (para. 3.21), (ii)the improvement of FD's labor productivity (para. 3.36), and (iii) thesystematic involvement of the private sector in plantation operations (para.3.27).

4.08 Forest Roads Development and Fleet Management (Annex 7 Tables 2 and3). A Forestry Engineering Unit would be set up at FD HQ project start-upwith initially two sections: (i) a Roads Section responsible for themanagement of FD's field road units as well as administration of contractworks, and (ii) a Fleet Management Section responsible for the rehabilitation,expansion and operation of FD's fleet of plant and vehicles and threeworkshops as well as administration of contracted maintenance, overhaul andrepair works (para. 3.35). Incremental staff required would be only onesenior mechanical engineer. The Engineering Unit could later be developedinto a full Forest Engineering Division. The four existing, almost defunctfield road units would be pooled and restructured into two units based atLondiani and Nyeri for the limited portion of forest road works which would becarried out by force account. Revision of the roads development program wouldbecome necessary as new forest management and timber harvesting plans areforthcoming based on the forest inventories.

4.09 In-service Training. A major initial task of FD's ManpowerDevelopment Division, assisted by the training coordinator (para. 3.50), wouldbe the preparation of a detailed in-service training plan, taking intoconsideration the results, as these become available, from studies concerningforest labor (para. 3.36) and forest manpower development (Annex 7, Chart 2).Being of urgency, in-service training facilities at KFC Londiani would beadded in year 1 of the project (para. 3.39). The training coordinator wouldalso advise KEFRI on their in-service training under the project.

4.10 Forestry Master Plan Team. This component would be located eitherin the Projects Development and Monitoring Division, or it could be a Division

- 35 -

(albeit temporary) on its own. 10/ It would be headed by a full-time FMPDirector with the rank of a Division Chief. He would have a core team ofabout five full-time sp.sialists. Many key FD officers would also be involvedin the FMP work. Additional selected specialists in related agencies would beco-opted as local consultants to the core team. Contractual services would beobtained from local specialist institutions as well as from privateconsultants for special studies, surveys, systems development, teachingassignments, etc. District-level planning teams in about 10 high-prioritydistricts would be headed by District Forest Officers. These field planningteams would work from the bottom up, soliciting advice and information fromthe people most affected. FD and FINNIDA are ensuring full NGO involvement.

C. Annual Work Program (AWP), Reporting. Monitoring, and Evaluation

4.11 Annual Work Programs and Budgets. Both implementing agencies wouldprepare detailed AWPs, including annual budgets, and in the case of FD alsoinformation on revenue estimates. FD's current programming and budgetingsystems are out-dated and the PM, assisted by the PIT and the managementsupport team, would during project year 1 develop an up-to-date, computerizedAWP system of a format satisfactory to IDA, which would tie in with: (i) theaccounting system (para. 3.61), (ii) procurement system (para. 3.53), and(iii) reporting and monitoring system (para. 4.12). Annex 10 explains thetypical contents for an AWP. Preparation of draft AWPs and budgets would betimed to fit the cycle of budget submission to MOF and allow prior comments byIDA . Assurances were obtained from GOK that (i) an AWP would be submitted byFD and KEFRI to IDA for its review no later than by December 1 of thepreceding year and (ii) the annual budget would then be reviewed on the basisof the AWP jointly by the recipient ministries, MOF and IDA. AWP arrangementsat project start-up are dealt with in para. 4.14.

4.12 Monitoring and Reporting. The PM, assisted by the PIT and theadvisors of the management support team, would develop a new, computer-basedmonitoring and evaluation system to generate continuous information for theproject's own needs and for semi-annual progress reports on physical andfinancial progress in a form acceptable to IDA and compatible with the AWPsystem (para. 4.11). The M&E system would cover performance targets helpfulto management, including the performance indicators and implementation targetsgiven in Annex 7, Tables 1-8. The format of the progress reports would bediscussed in detail during the first Bank supervision mission. Copies of the.eports, which would be finalized by March 31 and September 30 each year,would be reviewed by the PSC in draft and finally by IDA; an assurance to thiseffect was obtained at negotiations. The forestry extension component and thepilot schemes in the indigenous forest would install monitoring systems oftheir own, commensurate with the project's overall M&E system, because oftheir specific requirements for rapid feed-back from field activities.

D. Reviews

4.13 Government and the donors would meet annually to review projectprogress and to discuss problems. The FD and KEFRI would, by September 30 ofeach year, prepare for review by PSC and IDA, an analysis of its past and

10/ To be agreed between FD and FINNIDA.

- 36 -

expected performance against the established and agreed key indicators setforth in Annex 7 Table 1. The pilot operations (extension forestry;participatory management of indigenous forests) and action plans (increase oflabor productivity; elimination of woodfuel energy disincentives), as well asthe forest inventories and various studies to be financed by the project wouldfurnish important new information on the forestry subsector. The FMP processwould use this information to define the subsector's long-term developmentparameters and needs for institutional changes. A new Forest Policy Frameworkwould be prepared by July 31, 1991 and a finalized Forest Policy by mid-1993.In addition, the Government's environmental and natural resources managementstrategies and ASAL program would be better defined (with Bank support) bythat time. The new information and changed circumstances are envisaged tonecessitate design adjustments in some of the project components during itssecond half. Accordingly, to provide a better basis for implementing theproject in its last three years, a comprehensive mid-term review would becarried out jointly by the Government and the donors no later than June 30,1994 after the completion of the FMP to assess the project's mid-term impact.The mid-term review would evaluate each project component against the above-mentioned key performance indicators and would also cover items such as policyactions on pricing of forest products, the status of studies and the ForestryMaster Plan and the framework for encourage private sector participation inindustrial forestry. Assurances on the above measures were obtained atnegotiations. Periodic reviews of project progress by IDA and cofinancierswould be coordinated through joint supervision and cooperation between Nairobibased staff of the donors.

E. Status of Project Preparation

4.14 Project activities, physical implementation targets andrequirements for equipment, goods, and services have been defined for theproject period (Annex 7 and Working Document No. 9). Most technologies areknown and have been widely practiced in Kenya; new approaches andtechnologies would be developed by pilot operations using intensivemonitoring. FD and KEFRI have prepared a work program for the firstincomplete project year up to end-June 1991. Finalization of an AWP for thefirst full year (July 1991-June 1992), acceptable to IDA, would be a conditionof effectiveness. This AWP would include finalized detailed designs andtender documents for forest road rehabilitation and other civil works duringthe first full year. Design standards for the rehabilitation of forest roadshave already been prepared and have recently been updated; the bulk of theother civil work contracts would follow standard, existing design. Key PITstaff are in place and further recruitment would follow specifically agreedtime-tables or annual implementation schedules. Procurement of critical itemsfor early project activities would be done under PPF with the assistance of anarchitect/planner and an engineer.

- 37 -

V. PRODUCTION AND FINANCIAL ASPECTS

A. Production

5.01 Industrial Plantations. Assuming that proper silviculturalpractices are employed an hat the planting program under the project (Annex7, Table 6) is carried out, the project would produce about 13 million m8 ofsawlogs, pulpwood, poles and fuelwood as a result of both replanting and newplanting. This project related production is detailed by timber assortmentsand species in Table 5 below. The relative shares of pulpwood and sawlogproduction are based on the assumption that working circles are managed andfelled according to the plan. Incremental net benefits resulting from theproject's production over the 35-year period are shown in Annex 5.

Table 5: TOTAL PRODUCTION IROH REPLANTING AND NEW PLANTING ('000 MP)

Sawlogs Pulpwood Fuelwood TotalSpecies Thinningl/ Clearfell

Pine 726 1,344 4,140 2/ 285Cypress 643 1,407 147Sub-Total 1,369 2,752 4,140 432 8,693

Poles FuelwoodEucalyptus (combined rotations)

Light l2cmx5m 1,483Light 17cmx7m 425Medium 22cmx9m 1,274

1,058Sub-total 3,182 1,058 4,240

Total 4,121 7,322 1,490 12,933

I/ First thinning included in fuelwoodi-i Includes both pine and cypress pulpwood

5.02 These total production figures are based on the mean annualincrements (HAI):

Sawlog Circle Pulpwood CirclePine 24.1 me/ha 24.4 m3/haCypress 23.0 m9/ha 20.0 m3/haEucalyptus First and second rotations 20.0 m3/ha

Third rotation 19.0 m3/ha

These yield figures are based on FD experience on obtainable yields under goodforest management.

5.03 The timely implementation of the plantation maintenance programmeaccording to sound silvicultural practices would be expected to increasetimber yields from plantations of age eight or less by 20 percent; theresulting increase in sawlogs to be clearfelled are shown in Table 6.

- 38 -

Table 6: INCREMENTAL BENEFITS FROM PROPER MU TM.AdNCE OF EXISTING PLANTATIONS

Total Area'l Benefit/ha Totalha m3 '000 m3

Pine 3000 89.6 268.8Cypress 3200 93.8 300.2Total 6200 569

1/ backlog areas not treated by recent harambee operations

5.04 Extension Forestry. Under the forestry extension component,overall seedling production in the pilot districts would increase from 0.4million seedlings in year 1 to 2.6 million seedlings in year 6 withprogressive emphasis on the smaller decentralized and non-FD nurseries. Overthe project period an estimated total of 10.8 million seedlings would beproduced in the 15 divisions (Annex 7, Table 4). It should be emphasized thatthese are indicative figures used as a basis for estimating the project'simpact on production.

5.05 Assuming that a seedling in farmlots can over 30 years produce 0.27m3 of fuelwood, corresponding to a MAI of 18.2 mJ/ha (this is half the MAI ona well-managed fuelwood plantation), the fuelwood production from theproject's seedling output in the three pilot areas would be about 2.9 millionm3 over 30 years, or about 0.1 million m3 a year. This increase represents asmall fraction of current estimated national woodfuel consumption of 37million m3 a year.

B. Markets

5.06 Forest Industries (paras. 2.05). Kenya's sawmilling industry hasexpanded relatively fast during the last decade. Between 1978 and 1988, theproduction of sawnwood increased from about 120,000 m3 a year to about 210,000m3. The supply of sawlogs, however, still exceeds demand and the surplus isexpected to continue during the next two decades (para. 5.11). The number oflicensed sawmills has increased from about 180 in the mid-70s to above 350 in1990. There are a few larger multi-line mills with log intakes varyingbetween 5,000 m3 - 40,000 m3. Most of the sawmills are small, tend to comeand go from the market depending on the economic conditions, and are quiteinefficient utilizers of roundwood resources due to unsuitable technology,poor sawdoctoring facilities, and inadequate technical and managerialknowledge. The main product of the country's wood-based panel industry isplywood (about 35,000 m3 a year), some of which is exported to neighboringcountries. In general, the wood-based panel industries are relatively wellrun operations. Total average demand for log-size roundwood is about 700,000m3 per annum, a quantity which could easily be supplied on a sustained basisfrom FD's sawnwood working circle if the planning and scheduling of timberharvesting operations and plantations management were at a level of normalefficiency.

5.07 PPM, which produces all of Kenya's pulp, has integrated mechanicalpulping, chemical pulping and papermaking. PPM is the largest individualconsumer of wood in Kenya buying from FD in 1989 some 234,000 m3 of pine,

- 39 -

142,000 m3 of cypress and 15,000 m3 of eucalyptus pulpwood. PPM is expanding

its capacity utilizing sugarcane bagasse as raw material, because ofinsufficient supply of pulpwood. The latter is mainly caused by suboptimalplanning of resources management and roundwood allocations by FD; properlymanaged, roundwood from FD's pulpwood working circle, combined withsmall-diameter roundwood from its sawnwood working circle at economic distancefrom PPM, should suffice to sustain the expansion.

5.08 Other Wood Consumers. The main consumers of transmission poles areKenya Power and Lighting Co. and the Kenya Post and Telegraph Co. with anannual demand of 30-35,000 m3. National demand for construction poles isestimated at about one million m3 a year. More than 50 percent of this is

already being supplied from private woodlots, including those on smallholders'farms.

5.09 Fuelwood consumed in rural areas comes mainly from trees and shrubsor other vegetation on public land, farm trees and trees along roads or onidle land. With minor exceptions, it does not enter the cash economy but is

gathered by the consumer. In urban areas, although fuelwood accounts for onlya small proportion of energy consumption, demand is expected to double by theyear 2000. Fuelwood is used mainly by the urban poor who cannot affordcharcoal. FD allows collection of deadwood from reserved forests andplantations equivalent to a headload pec individual per day for a monthly fee

of KSh. 4 per person. Most of the fuelwood consumed in the urban sector is by

industries and institutions, and much of this comes from FD sales of stackedfuelwood. These are generally through contractors or middlemen and areheavily subsidized. Total fuelwood demand (excluding wood for producingcharcoal) is currently estimated at 23 million m3 p.a.; only 10-15 percent of

this is traded.

5.10 Charcoal provides more than 90 percent of urban woodfuel demand.The production and marketing of charcoal is of considerable importance to theeconomy. The wood raw material equivalent needed to satisfy the presentdemand for charcoal is estimated at 14 million m3 p.a. Most of the wood for

charcoal has traditionally come, free or at very little value, from clearanceoperations of forest or savannah woodland for agriculture or from uncontrolledfelling on these lands. As wood supplies become scarcer and the distance to

transport charcoal to the main centers increases, plantation grown wood isslowly entering the market for charcoal.

5.11 Export. Kenya is now self-sufficient in forest products, and

exports small amounts of plywood to neighboring countries. However, in orderto protect its forest resources, GOK has restrictions on most timber exports.The projected wood supply and demand balance up to the year 2020 indicatesthat current plantation areas should theoretically suffice to meet Kenya'sgrowing demand for forest products during the next 20 years or so. However,the balance for pulpwood from FD's pulpwood working circle is expected to be

negative in the near future, and the total surplus is expected to turn into adeficit after the year 2010. 11/ The present information on thepotential supply from industrial plantations is not reliable because of the

11/ Detailed information on supply and demand projections can be found inthe World Bank's Forest Sector Review, Annex 4.

-- 40 -

lack of data on the age/species distribution and average standing volume.After the completion of inventory activities, such information would beavailable and better projections of supply can be made. The Forestry MasterPlan would include studies on markets for industrial forest products andexamine the possibilities for their export. The impact of the timber exportban will be reviewed at the mid-term review.

C. Prices

5.12 The stumpage prices as well as prices of most forest products arenot market prices but are determined by FD. Most of the wood is sold onstanding volume basis. In some districts ground scaling is still used andprices vary accordingly. Stumpage royalties for pine and cypress sawlogs varyaccording to the size and whether the produce is from clearfellings or fromthinnings. At the mean dbh of 20 cm, the royalty rates in 1989 forclearfelled pine and cypress sawlogs were 115 Sh/m3 and 168 Sh/m3 (on standingvolume basis), respectively. The corresponding prices at dbh 60 were 255Sh/m3 and 410 Sh/m3. Royalty for cypress and pine pulpwood was 175 Sh/m3.Royalties for fuelwood are currently set at 13 Sh/m3, and for light andtransmission poles at 130 Sh/m3 and 195 Sh/m3, respectively. Market prices forfuelwood and poles differ considerably from the subsidized prices set by FD.The average market prices for light poles and transmission poles in 1989 wereestimated to be 440 Sh/m3 and 800 Sh/m3 in 1989.

5.13 During the last 8-9 years, royalty rates have been increased from avery low level to a level that is about equal to the replacement value.Royalties were not increased in 1989 but revisions are expected at thebeginning of FY90/91. The royalty levels are based on the principle ofrecovering costs of production (replacement cost principle), except forfuelwood and poles which are subsidized.

5.14 The principle of FD trying to recover production costs contains thefollowing flaws: (a) because FD is the sole supplier of industrial timber, itdoes not have incentives to reduce unit production costs which are now high.When replacement cost pricing method is used costs can always be transferredto sales prices; (b) during a period of oversupply of timber not all theproduction costs can be recovered unless timber or processed products areexported to utilize the surplus; (c) the present pricing method ignores thedemand side, i.e., the market for industrial forest products, because it isonly concerned with recovering sunk costs.

5.15 Local forest industries are also protected from import competition,and there is only one producer of pulp which means that they can alwaysattempt to transfer increased raw material costs to product prices. In theend, it is the consumer who has to pay for the possible inefficiencies in woodproduction and wood processing.

5.16 The above mentioned reasons suggest that alternative ways ofdetermining stumpage prices based on marginal cost pricing need to beconsidered. How this principle could be applied in Kenyan conditions shouldbe studied by a consultant experienced with various pricing methods. Atnegotiations, assurances were obtained from GOK that the FD would complete a

- 41 -

review of the method of royalty assessment and introduce improved methods forthe calculation of stumpage rates by September 30, 1991.

D. Cost Recovery and Sustainability

5.17 Royalty Collection. Although substantial progress has been made inincreasing the stumpage rates, the decline in the rate of royalty collectionhas offset this improvement, with the result that income therefrom has beendeclining in recent years. It is estimated that in 1988 and 1989, the actualrevenue collected was less than 50 percent of estimated revenue. Theshortfall arose from a variety of reasons, including laxity in enforcingcollection rules, exemptions given to the tea parastatal to clear a beltaround the plantations for the tea zone, under-reporting of volumes, pastpractices of royalty assessment, poor inventory and lack of supervision andmonitoring. To demonstrate its commitment to improving royalty collection,FD has recently stepped up efforts to collect overdue royalties, resulting ina considerable increase in revenue in the latter half of 1990. Under theproject, the system of royalty collection would be improved as follows:

(a) Royalty assessment would throughout be based on standing volumeinstead of cut volume. After a licensee receives his allotmentwhich is determined by the FD inventory section, the forest officerwould estimate the royalties based on the standing volume. Thelicensee would pay this amount before harvesting. This practicehas been established in nine districts and should be expanded toall districts;

(b) Strengthening of FD's Inventory Section would reduce theopportunity for under-reporting of volume cut. In addition, theproject Financial Controller would vet the allotment given by theInventory Section against the invoice issued by the forest officerand check for discrepancies; and

5.18 The above modifications should result in full cost recovery for theindustrial plantations. The FD would undertake to collect at least 75 percentof the stumpage royalties for a particular year within that year and up to 90percent of the royalties of that year during the following year. Fulfillmentof this collection target would be reviewed at the annual and the mid-termreviews (para. 4.13).

5.19 Fuelwood and Poles. FD royalties for fuelwood sales are well belowthe replacement cost. In the Nairobi area, the FD price is approximatelyequivalent to KSh 13/m3 solid compared to a recovery cost of KSh 90/m3. Mostof this wood is sold to large, private and parastatal industrial users;therefore, increasing royalties would not disadvantage the urban poor whosefuelwood supplies, if derived from FD plantations, come mainly from monthlyfuel licenses (headload sales of dead wood). Increases in stumpage priceswould stimulate production of commercial fuelwood on farms. GOK has reviewedroyalties concerning both stacked fuelwood sales (to contractors) and monthlyfuelwood licenses, and in July 1990, it adjusted prices to reflect thereplacement cost. At negotiations, assurances were obtained from GOK that a

- 42 -

time-bound, monitorable action plan would be prepared and agreed upon by June30, 1991 (i) to increase fuelwood and pole prices to market value levels bythe mid-term review, and (ii) to eliminate other disincentives to smallholdertree farming and private fuelvood growing at large.

5.20 Seedlings. The action plan mentioned above would include measuresto recover the full cost of seedling production in Government nurseries.These seedlings are currently sold at a highly subsidized standard price ofKSh 0.075 a piece. FD has started to adjust seedling prices and in mid-1990,it adopted a new schedule of prices that takes into account cost differencesbetween species and the need for different subsidy levels based on difficultyof private seedling production in scarce rainfall zones (para. 3.11).

5.21 Sustainability. As new inventory data and up-to-date managementplans become available and the industrial plantations are being put to fulluse, their feasible revenue earning potential at current stumpage rates shouldexceed KSh 300 million a year. If this were realized, the increased revenuefrom industrial plantations would be more than the annual recurrent costsgenerated by the entire project, estimated at KSh 66 million. At the sametime, the anticipated improvement in labor productivity should reduce costsand ensure that forestry operations would continue efficiently after theproject ends. Pilot projects in farm forestry extension and indigenous forestprotection would introduce new approaches in promoting social forestry.Institutional strengthening, through improving FD's management and technicalcapacity and strengthening research and extension would have effects thatwould outlive the project and lay the foundation for future development.

E. Farm Level Financial Impact

5.22 Farm Level Financial Impact. Annex 4, Table 4 shows indicativefarm models which might approximate impact on incremental wood production as aresult of intensified forestry extension in Kakamega and Laikipia, two of thepilot districts. The purpose of the models, which have limitations due toinsufficient data, is to indicate possible returns, measured as increased cashflow, at the farm level. Model A attempts to approximate practices inKirinyaga District in the Central Highlands where Grevillea is widely plantedalong field boundaries and in fields. Similar approaches are suited to theWestern Highlands but have not been adopted, possibly because this species isnot as widely known and seed is not available there. Extension should be ableto increase planting of this species. The model is attractive, showing aninternal rate of return of 68 percent and a return to farm labor of KSh 124 aday, about 6 times the opportunity cost of labor. 12/

5.23 Model B for eucalyptus woodlots, a common feature in KakamegaDistrict, also shows a high rate of return of 60 percent and a return to labormore than twice the opportunity cost of labor. Model C represents the

12/ The rate for casual labor in rural areas is around KSh 30 per day.Since all labor for farm forestry would be provided by the farm familyand much of the work would be carried out during off-peak periods, areduced rate of KSh 20 per day has been used. This also reflects theparticipation of children.

- 43 -

planting of hedges and field trees in semi-arid uplands. She model shows arobust rate of return but marginal financial returns to the farmer's labor,about equal to the opportunity cost of labor. A factor is that a highproportion of the output is fuelwood for home consumption and hence not valuedas a cash income. Other non-wood benefits from tree planting are mentioned inpara. 6.03.

F. Fiscal Impact

5.24 Government Cash Flow. The Government cash flow is set out in Annex4, Table 3. This shows that the main inflow of local funds would be fromincremental royalties from the industrial plantations. Under the improvedsystem of royalty collection established under the project, royalties shouldbegin to increase during the first year of the project until ful collectionis achieved in year 10. This would have a very favorable impact on the cashflow. During the 20-year period, Government inflows are estimated to exceedoutflows by KSh 2,286 million, or KSh 114 million a year.

VI. JUSTIFICATION, BENEFITS, AND RISKS

A. Justification

6.01 Most benefits from the project cannot be quantified. The mainbenefit would be the strengthening of the institutional base, including theinformation base and policy, for managing Kenya's forest resources in anecologically sound way, while at the same time ensuring sufficient productionof wood products to meet the country's needs. The project would assistGovernment to address broader natural resource and management issues, and itwould promote the involverint of non-public sector parties, such as farmersand NGOs in production and conservation forestry, thus reducing theadministrative and financial burden of Governmont's mandate. These measuresshould help slow the rate of environmental degradation in Kenya. It is thismanagement benefit, rather than the direct production benefit, that would bethe main objective of the project.

B. Benefits

6.02 The project would generate quantifiable direct production benefitsfrom two sources. The first, major benefit would be the incrementalproduction of plantation-grown timber (para. 5.01) coupled with increasedroyalty collection and improved labor productivity, for which ar economicanalysis was carried out. The second, for the time being minor source ofquantifiable benefits would be from more intensive farm forestry extensionservices in three pilot districts; these benefits have been quantifiedindicatively through farm forestry models (paras. 5.22 to 5.24) and on thebasis of projected seedling production (paras. 5.04 and 5.05). All otherbenefits would be of indirect, non-quantifiable nature.

6.03 Farm Forestry Extension. The benefits would include a moreeffective coordination of farm forestry and an improvement in approaches,

- 44 -

resulting in increased farm tree planting, improved management of farm treesystems and improved woodland management in the ASAL areas. Farmers andcommunity groups, the final clients of the extension services, would be themain beneficiaries. The activities would increase supplies of tree productsin rural areas, in particular fuelwood and building materials, as well as arange of non-wood benefits including: (i) livestock fodder from planted treesand sustained livestock browse from improved management of woodland systems;(ii) soil enrichwent or soil fertility maintenance; (iii) so'l erosioncontrol; (iv) windbreak effects; (v) live hedging for livestock control andboundary marking; and (vi) supply of traditional items, such as medicine,dyes, fibers and gums. The increased production of fuelwood would also reducethe volume of agricultural residues used as domestic fuel in wood deficitareas. Nursery operation would generate for women's groups and NGOsadditional cash income through sales of excess seedlings. These benefitswould initially accrue to a higher extent in the pilot districts thannationwide.

6.04 Indigenous Forest Management. The conservation of Kenya'sindigenous forests is essential to Kenya's economic, social and environmentalwell-being. Direct, although for the time being non-quantifiable benefitswould include the sustainable yield of wood and non-wood products, thepreservation of gene pools and the protection of wildlife. Indirect benefitsinclude those derived from the conservation of forests in water catchments,with the reduction in soil erosion, sedimentation and water run-off benefitingdownstream users and ecosystems, and scenic values. Benefits would also haveinternational significance, such as the identification of bio-diversityreserves, and improvement of the quality of water that drains into LakeVictoria, affecting nations that border it. Other components of the project,such as industrial plantation development and farm forestry, would ultimatelylead to the conservation of indigenous forests by taking the pressure off themand through the provision of alternative sources of forest products,employment and income.

6.05 Industrial Plantations. The main tangible benefits would beincreased production of sawlogs, pulpwood, poles and fuelwcod amounting toabout 13 million cubic meters. Improved royalty collection would increase FDrevenues while improved labor productivity would reduce costs. Better fireprotection also provides benefits in the form of output losses avoided.Strengthening of plantation management would benefit other afforestation andforest maintenance programs. Employment and income would also be createdindirectly in harvesting, transporting and further processing of timber.

C. Impact on Women

6.06 Particularly the farm forestry extension component would have apos4tive impact on women in household economies, initially in the pilotdistricts and gradually also elsewhere. Gathering fuelwood and fodder is amajor task of women in rural areas in Kenya and they frequently have to walkconsiderable distances to collect these basic goods. By promoting theintegration of multipurpose agroforestry species in farming systems andpropagating on-farm seedling availability, the project would help to increasethe production of fuelwood and fodder close to home. This would reduce thetime women need to gather fuelvood, or cash outlays for fuelwood, particularly

- 45 -

in wood deficit areas. Women's groups would be a principal target group forFESD's and MOA's forestry extension work (para. 3.05). Activities wouldinvolve nursery establishment and on-farm tree planting. Excess productioncould be sold to generate additional cash income. The project would alsogenerate employment for women as they make up a significant proportion of thelabor force involved in nursery operations both of the extension andindustrial plantation components, and in transferring, sorting and packagingmaterials and products in the mills processing timber.

D. Environmental Impact

6.07 A key project objective is to contribute to environmentalconservation and arrest further ecological degradation through sound resourcemanagement. Virtually all project components are designed with environmentalconcerns as an important goal. The project as a whole would therefore have asignificant, beneficial environmental impact and no negative ecologicaleffects would be expected to result from the activities of the project.

6.08 Expanded planting of trees or. marginal, degraded or fallow sites onfarms, as well as boundary planting and the general integration of forestryinto agriculture and livestock farming systems would serve efforts to preventsoil erosion and maintain soil fertility and increase the country's treecover. The resulting, additional supply of wood on village lands would reducethe need to cut timber in natural forest. The inventory would provide theinformation base for long-term indigenous forest and eco-system management.Indigenous forests would not be converted to plantation forest; rather,management practices such as demarcating and planting boundaries, enrichingimpoverished and former encroached forest areas and forest management based onintegrated land use, popular participation and forestry extension programs invillages adjacent to forest areas, would reduce encroachment. The repair andmaintenance of a system of moats would allow the management of indigenousforests to include their use by wildlife even in the proximity of industrialplantations.

6.09 Timely riplanting of clear-felled industrial plantation standswould minimize environmental hazards such as erosion or fire, as well asrodent, insect and pest problems. Timely tending and thinning would havesimilar beneficial effects. No new forest roads would be constructed and oldroads, which frequently constitute a serious environmental problem due tomassive soil erosion, would be rehabilitated using erosion-preventing designs;where road diversions are necessary because of excessive erosion of theexisting roads, mitigatory vegetative measures would be applied for siterestoration. The project would also prepare FD for more intensive action innatural resource management and conservation by training FD staff for thisresponsibility and by helping to formulate a national forest land use plan, acountrywide forestry subsector development master plan and forest policyreforms.

E. Economic Analysis and Sensitivity Test

6.10 Economic analysis was carried out only for the industrialplantation component, where benefits would come mainly from the planting

- 46 -

program. Benefits and costs from the maintenance of existing plantations werenot included in the analysis because of the difficulty in allocating costsseparately to the maintenance, and in estimating reliably these costs and theassociated benefits. An estimate of the value of timber saved has been usedto value benefits from fire protection. No attempt was made to quantifyindirect benefits. Based on the above the economic rate of return isestimated to be 17 percent (Annex 5).

6.11 Assumptions. In the economic analysis the following assumptionsand parameters were used: (i) standard conversion factor (SCF) of 0.92; (ii)shadow wage rate of 0.7 for unskilled labor; (iii) institution building costswere allocated to industrial plantations according to the relative share ofplantation investment out of total investment, excluding headquarterfurnishing and equipment; (iv) costs for the maintenance of the entireplant4tion estate (assumed to be 20 percent of the costs of replanting andmaintenance) were deducted; (v) all the road and vehicle costs relevant toindustrial plantation development were directly included in this component;(vi) recurrent costs to cover the whole period covered by the analysts, 35years, were included; (vii) replacement of vehicles was assumed to take placeevery seventh year, and of plantation tools and office equipment every seventhand tenth year, respectivelv; (viii) labor costs included were based onexpected improvements in labor productivity; and (ix) support to the inventorysection is excluded.

6.12 Valuation of the main output, i.e., sawlogs and pulpwood, is madedifficult because prices of both the roundwood and final products areadministered, and trade in these products is negligible. However, sawlogs andpulpwood are internationally traded commodities. To value project output,economic prices at border-price equivalents were derived from internationalmarket prices. Thinnings were valued at 50 percent of the log size timbervalue at clearfelling. Because of the large divergence between export andimport parity prices of sawlogs and pulpwood, reliable demand and supplyprojections of wood would be essential. However, supply is difficult toforecast reliably at present because of the lack of inventory data. New,comprehensive demand projections are also needed. This information is not

available at present but would be produced by the FMP component.

6.13 The economic price for fuelwood was estimated at KSh 2071m3equivalent to the value of kerosene, which is the likely substitute for partof the population. Pricing of other likely substitutes, as burning cropresidues and dung, was not attempted. Valuation of poles was based onfinancial market prices, which were converted to economic prices using thestandard conversion factor 0.92.

6.14 The opportunity cost of land was not included because theplantations are in gazetted forest areas which by law cannot be used for otherpurposes. As the plantations are in the high potential areas, the opportunitycost of land would be high and would reduce the rate of return significantlyif included in the analysis. As part of the preparation of the ForestryMasfer Plan, the FMP team, assisted by consultants, would review land relatedpolices and legislation to examine their adequacy in balancing the landrequirements for forests, agriculture, wildlife and livestock.

- 47 -

6.15 To value benefits from fire protection, a crude estimate of 100 haof industrial plantations _IV with an average yield equalling 50 percent ofthe respective yields at clearfeiling was assumed to be saved annuallystarting from year 2.

6.16 Results. The results of some of the sensitivity tests show thatthe ERR is robust as shown below:

Table 7: ECONOMIC RATE OF RETURN AND SENSITIvITY TESTS

- Base Rate 17.22- Cost up 202 15.7Z- Benefits down 201 15.3Z- Costs up 201 and

benefits down 202 13.8Z

The analysis also shows that for the net present value of the projectcomponent discounted at 10 percent to be zero, costs would have to beincreased by 112 percent or benefits decreased by 53 percent.

F. Uncertainties and Risks

6.17 Delay in project implementation due to weak absorptive andimplementation capacity of the FD would be the main risk. FD staff havebecome demoralized due to insufficient resources with which to work,deteriorating management systems, and lax supervision. Making use of thelessons learnt from the Third Forestry Project, the proposed project wouldminimize this risk through various elements of institutional strengtheningincluded in all project components and through providing FD staff withequipment, vehicles and operating costs for its normal activities. Measuresof institutional strengthening would comprise a large in-service individualand group training program for most of FD's staff, considerable inputs oftechnical assistance, including a management support team, and the developmentof up-to-date management and reporting systems. Initiatives by the project toregularly involve NGOs and community groups in farm forestry and forestprotection should also reduce the operational burden on FD in the future(para. 3.27). A flexible approach with continuous monitoring of FD'sperformance and a mid-term impact review would facilitate corrective actionduring implementation (para. 4.13). A related risk could be that the sizeabletraining program and the 3-year FMP process might disproportionately draw onthe human resources of the FD headquarters, putting other project componentsunder additional strain. This danger would be controlled through the AWPprocess which would include detailed manpower planning in order to avoidunrealistic manpower demands at any one time (para. 4.11).

6.18 The second major risk could be that the Government would notallocate sufficient funds to the project. This risk has been contained by

13/ Of assumed composition one-third of pulpwood, one-third of cypresssawlogs and one-third of pine sawlogs.

- 48 -

Government's commitment to make sufficient budgetary allocations for theproject and related services in the FY 1990/91 budget and Forward Budget(para. 3.50), and to review the annual budgets jointly with IDA on the basisof AWPs (para. 4.11), as well as through improving the cost recovery mechanismof the industrial plantations and actions toward re-directing their managementalong commercial lines (para. 3.30). Also the composition of the financialpackage, which maximizes funding on a grant basis, would reduce this fundingrisk.

6.19 There could be a significant risk of implementation delays,particularly in respect of policy reforms needed, arising from the involvementof several ministries in the project. This risk would be minimized throughthe establishment of the Project Steering Committee to ensure high-levelinter-ministerial coordination, as well as a Project Implementation Team toensure such coordination at the working level (paras. 4.02 and 4.03). Mostinvestment components concerning different ministries are designed assubstantially self-standing operations, thus reducing the need for complexcoordinatiun during implementation.

6.20 Also the participation of five external donors in the funding ofthe project could signify a risk of implementation delays. This risk would becontained by formulating functionally well separable financing packages foreach donor, parallel financing arrangements, and suitable donor coordinationmechanisms (para. 4.02).

VII. AGREEMENTS, ASSURANCES, AND RECOMENDATION

7.01 The following are conditions of credit effectiveness:

.i) GOK would submit evidence satisfactory to IDA showingthat adequate offices for FD have been constructed (para.3.34);

(ii) FD would complete a labor-productivity study of theworkforce permanently employed in the FD (para. 3.36);

(iii) GOK would submit to IDA oustanding audit reports preparedby independent auditors for the Third Forestry Project(para 3.63);

(iv) GOK would finalize a management strengthening arrangementfor FD HQ with a suitable organization (para. 4.04); and

(v) the AWP, satisfactory to IDA, for the first full projectfiscal year (1991/92) would be finalized (para. 4.14).

7.02 During negotiations, agreement on the following was obtained:

(i) FD would introduce separate accounting for IFD'soperations from those of the rest of the department byJune 30, 1991 (para. 3.29);

- 49 -

(ii) GOK would prepare a monitorable action plan satisfactoryto IDA on measures to improve the productivity of itspermanently employed labor force of FD by June 30, 1991and commence implementation by September 30, 1991 (para.3.36);

(iii) GOK would, in consultation with IDA, prepare a ForestPolicy Framework by July 31, 1991 and adopt a new ForestPolicy by June 30, 1993 (para. 3.45);

(iv) Audited annual accounts, financial statements and report,including a separate auditors' opinion on special accountand SOEs, would be made available to IDA within ninemonths of the close of each GOK fiscal year (para. 3.63);

(v) A draft AWP, including budgetary allocations and targetsfor revenue collection would be submitted by PD and KEFRIto IDA for its comments no later than December 1 eachyear for the following year's program and the annualbudget would be reviewed jointly by GOK and IDA (para.4.11);

(vi) Semi-annual progress reports, acceptable to IDA, would beprepared by FD and KEFRI and submitted to IDA by March 31and September 30 each year (para. 4.12); further the FDand KEFRI shall, by September 30 of each year, preparefor review by PSC and IDA, an analysis of its past andexpected performance against established and agreed keyperformance indicators (para. 4.13);

(vii) A comprehensive mid-term review of the project would becarried out jointly by GOK and the donors not later thanJune 30, 1994, and each project component would beevaluated against established and agreed performanceindicators. The review would also covert policy actionson pricing of forest products, status of studies and theFMP, and the framework for encouraging the privatecommercial sector involvement in industrial forestry(para. 4.13);

(viii) FD would complete a review of the method of royaltyassessment and introduce improved methods for thecalculation of stumpage rates by September 30, 1991(paras. 3.29 and 5.16);

(iX) GOK would prepare a monittrable action plan satisfactoryto IDA by June 30, 1991, on measures to eliminatedisincentives to smallholder tree farming and commercialfuelwood growing at large, including measures to increasePD fuelwood and pole sales prices to market price levelsby the mid-term review (para. 5.19), as well as FDseedlings sales prices (para. 5.20).

- 50 -

7.03 With the above assurances, agreements and conditions, the proposedproject would be suitable for an IDA credit of SDR 13.9 million (US$19.9million equivalent) to the Government of Kenya, on standard IDA terms with 40years maturity.

- 51 -

KENYA

FORESTRY DEVELOPMENT PROJECT

Estimated Schedule of Disbursements

IDA Cumulative Country ProfileFiscal Year Disbursements Disbursements for Agriculture

------------US$ million)------- (Z of Total)

19912nd Semester 0.6 0.6 3.0

19921st Semester 1.0 1.6 8.02nd Semester 1.2 2.8 14.0

19931st Semester 2.4 5.2 26.02nd Semester 2.4 7.6 38.0

19941st Semester 1.6 9.2 46.02nd Semester 1.5 10.7 54.0

19951st Semester 1.6 12.3 62.02nd Semester 0.8 13.1 66.0

19961st Semester 2.4 15.5 78.02nd Semester 1.2 16.7 84.0

19971st Semester 2.0 18.7 94.02nd Semester 1.2 19.9 100.0

Project Completion Date: March 31, 1997Project Closing Date: September 30, 1997

KENYAFORESTRY DEVELOPMENT

Swimary Account by Project Component(SHILLINGS '000)

fARM fORESTRY------------------------------------ INDIGENOUS FOREST MANAGEMENT

FOREST ------------------------------------------------------------------ ----------------EXTENSION STRENGTHENING Of FORESI

FIELD SUPPORT TO FOREST INVENTORY A REPLANTING ANDOPERATIONS - NATIONAL PROTECTION AND ASSESSMENT OF MAINTENANCE Of

PItOr FOREST fESD STAFF CONSERVATION FORESIRY fOREST ROAD NON-MOOO EXISTINGDISTRICTS EXIENSION STRENGTHENING DIVISION OPERATIONS DEVLLOPMENT PRODUCTS PILOT SCHEMES PLANIAIIONS

1. INVESTMENT COSTS

A. CIVIL MORSS 4,518. 0 - - 3.000.0 27. 000.0 41,244.0 - - 8.400.0B. VEHICLES 3,514.0 - 3, 028.0 98.620 0 8.023 0 - 14.850 0 t.687.5 49.364.4C. EQUIPMENT AND MAIERIALS

OFFICE EQUIPMENT - - 617 0 - 2.000.0 - 3.645.0 - -FIELD EOUIPMENI AND TOOLS - - - 1.110.0 8,569.2 29,205.0 - 12.379.0CAMP EQUIPMENT - - - - - - 2. 475.0 225.0 -FURNiSHING 1. 200.0 - - -NURSERY EQUIPMENT 503.9 - .000.0

Sub-Total EQUIPMENT AND MATERIALS 1,703.9 - 617.0 1,110.0 10, 569.2 - 35. 325.0 225.0 13.379.0D. TRAINING - - 41, 172.0 25,375.0 - - 11.880. 0 - 7.721.0E. TECHNICAL ASSISTANCE - - 39,600.0 - - - - - 675.0F. TECHNICAL SERVICES - - 6,720 0 - - 87.642 0 13.320.0 675.0G. PILOI PROJECT FUND - - - - - - 90,000.0 -

Total INVESTMENT COSTS 9.735.9 - 91, 137.0 128. 105.0 45.592.2 41,244.0 149,697.0 105,232.5 80.214.4 1

II. RECURRENT COSTS N)

A. SALARIES AND ALLOWANCES - - 7,747.0 3.649.0 8.451.0 - 16, 605 0 526 5 8,105.4 IB. OPERATION AND MAINTENANCE

VEHICLES 2,045.4 - 2,323.8 - 6.017.4 - 14,850.0 2,025.0 52. 185.0flUILDINGS 1, 221. 0 - - 1,050 0 - 8. 750. 0 - - 1. OSO. 0TOOLS / EQUIPMENT AND MATERIALS - 2,300.4 - 1.512.0 - 1.530.0 2,700.0 -

Sub-lotal OPERATION AND MAINIENANCE 3,266.4 - 4,624.2 1.050.0 7.529.4 8,750.0 16, 380 0 4,725.0 53.235.0C. AGRICULTURAL INPUTS FOR SEEDLING PRODUCTION 341.3 2,488.0 - - - - - -

Total RECURRENT COSTS 3.607. 7 2.488.0 12. 371. 2 4, 699 0 15.980.4 8.750.0 32. 985. 0 5.251 5 61, 340.4Total BASELINE COSTS 13,343 6 2.488.0 103,508.2 132,804.0 61.572.6 49,994.0 182,682.0 110.484.0 141,554.8

Physical Contingencies 1.334.4 248 8 5,588.9 11,829.2 5,734 7 4,999.4 12,461.9 1.356. 1 13,296.7Price Contingencies 2.128.7 548.3 20.904.8 21.555.3 9.831.0 9. 776.8 16. 930 8 2.379.5 20. 537. 6

Total PROJECT COSTS 16. 806. 7 3. 285. 1 130,001.9 166. (88. 5 77. 138.3 64, 770.2 212,074.7 114,219.6 175,389.0

Taxes 3. 321. 5 - 4.635. 1 37,955.8 14.928.0 7,772.4 - - 43,602.3

foreign Exchange 6, 429. 7 2,628. 1 70. 375. 8 111,296.3 23, 171.4 12.954.0 149. 943. 1 64. 513. 0 75. 086. 6

Noveeber 6. 1990 17: 19

I& W n

INDUSTRIAL PLANTATIONS.. ........... ............-.-.---------------------- INSTITUTION BUIlDING

SUPPORT TO ------------------------MAINTENANCE OF ROYALTY VEHICLES AND Physical

ESTABLISHMENT Of EXISTING ASSESSMENT STRENGTHENING Of PLANT FLEET ContingencmesADDITIONAL PLANTATIONS: FORESl ROAD AND FOREST MANAGEMENT FORESTRY fORESTRY FORESTRY ..............PLANTATIONS FIRE PROTECTION DEVEIOPIENT COLLECTION DEPARTMENT SERVICES RESEARCH EDUCATION MASTER PLAN Total 1 Mount

: =: = ::: :::: : : : :: -==:z: : -- :: =z ----- = ==Z== :Z=zz === - : -

- 1, 015. 5 132, 736.0 - 20. 475.0 - 46,946.0 7. 650.0 - 292. 984.5 10.0 29. 298.53.552.0 7, 497.0 16,647.6 10, 842.0 4. 596.0 4.476.0 26. 781.0 3.025.0 2.700.0 259.203.5 10.0 25.920.4

- - 1.472.5 1,660.5 - - 10,887.0 - 8,100.0 28,382.0 10.0 2,838.28,280.0 - 5,963.5 6,072.0 2,400.0 3.000.0 - 76,978.7 10.0 7,697.9

- - - - - - - - - 2,700.0 10.0 270.0- - - - 40.500.0 1. 370.0 1.800 0 - 44,870.0 10.0 4,487.01,209.0 - - - 2,712.9 10.0 271.3

. .... .. ... .. ..... ........ ... ..... ...... ..... ...... ...... -- - - -- - - - ... .. ... .. .. -- -- -- ..... ..... ---- ...... -----------. .... ... .......

1,209.0 8.280.0 1,472.5 1,660.5 46.463.5 6,072.0 14,657.0 4.800.0 8, 100.0 155.643 6 10.0 15,564.4- - 782.0 - 7,232.0 6.340 0 50.880.0 13,680.0 7.312.5 172.374.5 5.0 8.618.7-- - - 60.750.0 12.926.0 15,900.0 1,800.0 - 131,651.0 5.0 6,582.6- - - - 5,820.0 - 160.0 - 90,225 0 204.562.0 5 0 10,228. 1

* - - - -- 90,000.0 0.0 0.0... . . .. . . . -- - - - - - - . - - - - - - - - - - - - - - - - - - ....... . . - - - - - - - - - - - - - - - - ... . ....... - - - - - -

4. 761.0 16, 792 5 151. 638. 1 12,502.5 145. 336. 5 29, 814. 0 155.324.0 30. 955. 0 108. 337.5 1. 306. 419. 1 7.4 96. 212. 5 1

Ln

316.0 120.0 1. 936. 0 5,482.2 816.0 320.0 1,422.0 55. 496. 1 5.0 2.774 8 I

2. 295.0 5. 373.0 33, 398. 0 5. 942. 3 3. 447.0 3. 357. 0 23. 624.0 5. 254. 0 1. 350. 0 163. 486.9 10. 0 16. 348. 7- - 20 000.0 - - - 13,429.3 2. 227.5 - 47, 727.8 10. 0 4 772. 8- - - -5,000.0 - 180.0 - 7,965.0 21.187.4 10.0 2.118.7

..... ....... . ... -- - - - - - - ... .... .... -- - -- - .... .... ....... ........ .... - - - - - - - - - - - - - - - - ........... .... .. ......

2,295.0 5,373.0 53,398.0 5,942.3 8.447.0 3.357.0 37.233.3 7,481.5 9,315.0 232,402. 1 10.0 23.240.2- - - -- - , .-- - 2.829.3 10.0 282.9

2,611.0 5,493.0 55,334.0 11,424.5 9.263.0 3.677.0 38.655.3 7,481.5 9,315.0 290,727.4 9.0 26.297.97,372.0 22.285.5 206.972. 1 23,927.0 154. 599.5 33,491.0 193.979.3 38.436 5 117,652 5 1.597. 146.6 7.7 122,510.5

721.4 2,222.6 20,561.3 2, 118.6 11,729. 1 2.369.8 15,979.8 3.069.7 6,888.4 122,510.5 0.0 0.0995.0 2,282.0 41 590. 0 3. 771 1 14 918. 0 3. 413. 7 28,637.0 5 931. I 13, 618. 0 219. 748.6 7. 4 16 258. 7

9,088.4 26. 790. 1 269. 123.4 29,816.6 181,246.5 39.274.5 238. 596. 1 47.437.3 138, 158.8 1.939.405.7 7.2 138. 769.2

1. 152. 7 8,688.9 41. 758. 7 7,467.2 20. 125.9 S. 610. 3 33. 707. 4 6. 674. 7 237.400.9 9.0 21. 381.9S,896. 1 13,537.4 70.704.3 11. 608. 2 112,857.3 21. 353.5 133,953.0 21.414. 1 123,063.3 1.030.785.2 6. 5 66, 963. 4

n>-

KENYAFORESTRY DEVELOPMENT

Stummary Accounts by Year

Totals Including Contingencies Totals Including Contungoncies(SHILLINGS D0Dl1 1US$ '000)

1991 1992 1993 1994 1995 1996 Total 2991 1992 1993 1994 1995 1996 Total

I. INVESTMENr cosrs

A. CIVIL WORKS 105.287. 4 74. 259.8 63. 855. 1 60,571.6 48.1240.6 16.953. 0 369.06? 6 4.620. 8 3.211 2 2.745 6 2.589 6 2.046 4 726 6 15. 930 2B. VEHICLES 208. 937. 7 21,863.2 29.055. 0 18. 535. 9 15. 639. 1 16. 499.2 310.330.1 9 . 169.89 936 8 1.249 3 792 5 664 8 697.4 13. 510 5C. EQUIPMENT AND MATERIALS

OFFICE EQUIPMENT 20.727.4 10. 167.3 1.109 4 628.1 485.8 275 5 33,391.5 909 7 439.7 47 7 26 8 20 7 IT 6 1,456 1.FIELD EQUIPHENI AND TOOLS 47.018 1 22,895.6 11.482.0 3,527.6 3,941.3 3.926.3 92,789.9 2.063 5 990.1 493.6 150 8 167.5 166 0 4.031 5CARP EQUIPMENT 2. 824.6 273.4 - 3.098 0 124 0 Ii 8 - - - 135 8FURNISHING 50. 294.9 583 2 205.1 216.4 51. 299.5 2.20? 3 35 2 8.8 9 3 2.250,6NURSERY EQUIPMENT 790.7 532.4 547.5 517.4 556.0 575 7 3.519 7 34 7 23 0 23.5 22 1 23.6 24.3 151.4

SubTotal EQUIPMENT AND MATERIALS 121.655.? 34.451 9 13,343.0 4.887.5 4.983.1 4,777 5 284.098.8 5,339.2 1.489 8 573 7 209 0 222.8 201 9 8.025 4D. TRAINING 30,479.1 40. 721.0 48. 676.5 35,975 4 32,898.8 25. 123 5 223. 864.2 1.337.7 1.760.5 2,092 9 1.538 0 1,398.5 1,061.9 9.189,5

TIECHNICAL ASSISTANCE 40,847.2 40,879.2 39,273.3 20, 282 0 7.558 4 7.974 1 156.813 I 1.792. 7 1.767.? I1 688 6 867 1 321.3 337.0 6,774.5FIECHICNTAL SERVICES 80. 523. 2 78,369.4 74. 716,7 1,342.5 653.7 689 7 236. 305 I 3,534.4 3,388.9 3.212 6 5? 4 27 8 29.1I 10,250.2G PILOT PROJECT FUND - 45,625.2 45.757 5 - 91,382 7 2rC.73 0 1.967 4 - - 3,940.4

lotal INVESTMENT COSTS 587. 740.2 335,959.6 314. 677.1 1241.594 0 109. 873 7 72,016.9 1.561. 862 5 25,794.5 14. 527 9 23,530 1 6,053.5 4,670.6 3.044 0 67,620.6

1I. RECURRENT COSTS

A. SALARIES AND ALLOWANCES 23,024.5 13.964 4 24, 262. 0 8, 566. 5 9. 037, 6 9.442 8 68,296.8 572 6 603. 9 613.2 366 2 384 2 399 2 2.938 28. OPERATION AND MAINTENANCE

VEHICLES 32. 573. 2 35, 937. 3 39. 748.6 34.329,4 36. 161.3 36.1894 8 214,634.6 2.385. 7 1,554.0 1.709 I 1.467 2 1,537.2 1,559.5 9,212.6 4'BUILDINGS 4,782.2 8,640.4 11,048.6 11 838.1 122,629.8 15,356.4 64,293.5 209.9 373.6 475 I 506 0 536.9 649 1 2,750.6TOOLS / EQUIPMENT AND MATERIALS 8.5096,6 5,203.2 5,561.2 2, 357.7 2,401.8 2,533.8 26,567.2 373.5 225.0 239.1 100.8 102. 1 107.1 1.1247.6

Sub-Total OPERAIION AND MAINTENANCE 44. 865.0 49. 780.8 56,358.4 48.513,2 51. 192.9 54, 785 1 305,495.4 1,969 0 2.152 7 2,423,2 2.074.1I 2, 276.2 2,325 6 13. 110 8C. AGRICULTURAL INPUTS FOR SEEDLING PRODUCTION 490.3 551.4 607.2 657.2 699 5 746.3 3,752 0 21 5 23.8 26.1 28 1 29 7 31.5 260 9

Total RECURRENT COSTS 58,379.8 64, 296 7 72.226. 6 57, 736 9 60,930.0 64,974.2 377,544.2 2,562 1 2,780 4 3,062 5 2,468 4 2,590.1I 2.746. 3 16,209.8

Total PROJECT COSIS 646,120.0 400,256.2 385,903.7 199, 330.9 270,803.7 136,991.2 2.939.405.7 28,356.6 17,308.2 26,592 7 8,522.9 7,260.7 5,790.3 83.830 4

Novembter 6. 2990 17: 19

KENYAFORESIRY DEVELOPMENI

Project Components by Year

TotalIs Including Conin ngenci'es Totals Including Contingencies(SHILLINGS '0001 iuSS '0001

1991 1992 1993 1994 1995 1996 Total 1991 1992 1993 1994 1995 1996 Total

A. FARM FORESTRY

I. FOREST EXlENSION FIELD OPERATIONS PILOI DISIRICTS 4,384 7 4.041 4 28973 I 3.089 6 1,17? 8 1.240 I 18.8$06.? 2 92.4 174 8 123 5 132.1 50 I 52 4 725.3

2. SUPPORT TO MAT (DUAL FOREST EXIENSION 473.2 503.8 531 5 560.8 591 6 624 I 3.285. 1 20.8 21 8 22.9 24 0 25 1 26.4 140.9

3. FESC STAFF SIRENGTHENING 19.095 I 21.059.4 25.966 7 20.900 3 23.209 0 19. 771 4 130.001 9 838.0 910 7 1, 116.5 893.5 986 6 835 7 5, 581. 0

Sub-Total FARM FORESTRY 23. 953 0 25.604 7 29.371 3 24.550 7 24.978 4 21. 635. 6 150.093 7 1.051 2 1. 107 2 1, 262. 91.049 6 1. 061 8 914 5 6.44?.2

B. INDIGENOUS FOREST NMAAGEMENT

1. STRENGIIFENING OF FOREST PROTECTION AND CONSERVAIION DIVISION 56.566.9 27. 275. 6 22.661 3 18.801 4 19.906 9 20.976.4 166.188 5 2. 482. 61. 179 5 974 4 803 8 846 2 886. 6 7. 173. I

2. FORESTRY OPERATIONS 22. 327 2 10. 381. 5 19. 271 0 15. 437 6 4,730 4 4.990. 5 77.138,3 979.9 448.9 828.6 660.0 201 1 210 9 3.329. 4

3. FOREST ROAD DEVELOPMENT 12. 831. I 9. 441. 9 1O. 133 0 14. 925B 812. 385 4 5.052 9 64, 770.2 563. 1 408. 3 435.? 638. 1 526.5 213.6 2.785. 3

4. FOREST INVENTORT IT ASSESSMENT Of NON MO00D PRODUCIS 95.573 5 64.638.3 51.862 9 212.074.? 4. 194 5 2.795 I 2.229 9 - 9.219 6

5. PILOT SCHEMIES 20.765 4 46,633.2 46,821.0 .114.219.6 911 3 2. 018.6 2. 013. 2 - 4. 941. 1

SubTlotal INDIGENOUJS FOREST MIANAGEIILNI 208.064 1 15.370 5 150,749. 1 49.1650 37,022.6 31.019 6 634.391 2 9. 131 4 6.848 4 6.481 7 2.101 9 1.573 8 1. 311. 1 27,448.4

C INDUSTRIAL PLANTAT IONS

1. REPLANTING AND MAINTLNANCE 01 EXISTING PLANTAIIONS 74.954.0 24.562.5 21.079 I 18.444 4 17.761 3 18, 587. 6 175, 389. 0 3.289 5S 1.0b2 2 90b 3 79885 755 0 785 7 7.58? 3

2 ESTABLISHMENT OF AODITIONAL PIANTATIONIS 4.743 0 761 6 832 3 847 7 926 4 977 4 9088.4 208.2 32 9 35 8 36 2 39 4 41 3 393.8

3. MAINTENANCE OF EXISTING PLANTATIONS, fIRE PROIECTION 14.694 6 655S3.6 1.623 6 1,236.8 1,304.9 1,376.6 26.790 1 644.9 283 4 69.8 52 9 55 5 58.2 1,164.6

4 FOREST ROAD DEVELOPMENT 44. 191.0 46. 885. 1 49. 927 9 48,210.5 50. 650 2 29. 258. 7 269. 123.4 1.939 4 2.02? 4 2. 146 7 2.061 I 2. 153 I 1.236 7 11. 564 5

5. SUPPORT TO ROYALTY ASSESSMENT AND COLLECTION 11,628.9 1,959.6 4.478 8 6,006.8 3.405 3 2.33? 2 29.816.6 510.4 84.7 192 6 256 8 144.8 98.8 1.288.0

Sub-lotal INDUSTRIAL PLANTATIONS 150,211.5 80. 722.4 77.941.? 74. 746.2 74.048 I 52,537.6 510,207. 5 6,592.4 3,490.7 3,351.3 3,195.6 3. 147 7 2.220.6 21.998. 3

0. INSTITUTION BUILDING..................... ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~U

1. STNENG1HEIIING Of FOREST DEPARTMENI 108,241.1 22. 161. 8 24.995 9 17,625.0 3.497 9 4.724 8 181. 246.S5 4, 750. 4 958 3 1.074 7 753.5 148 7 199 7 7.885 4

2 VEHICLES AND PLANT FLEET MANAGEMENT SERVICES 20,332.1 6,954.3 7,239.1 3.015 7 891 I 842.2 39,274.5 892 3 300 7 311.3 128.9 37.9 356 1.706.?

Sit-Total INSTITUTION BUILDING '128,573 3 39, 116. 1 32. 235 0 20,640.6 4.389 I S.,567. 0 220.521 0 S.642.8 1.259 1 1 386 0 882.4 186. 6 235 3 9,592.1

EFORESTRY RESEARCH 86,678.8 44,345.6 36.784 8 23.620 7 25. 301 2 2T.855. 1 238,5S96. 1 3,8604.1 1,.917. 6 1, 581. 6. 1009.8 a1.075 5 924.2 10,312.9

F. FORESTRY EDUCATION 16, 141. 4 8, 154. 2 7.103.? 6,607.6 5,064.4 4, 366. 0 47.437.3 706.4 352 6 305.4 282.5 215 3 184.5 2.048 8

G. FORESITR MASTER PLAN 32,498.0 53.942.? SI. 718. I 1 38, 158.68 1,426.3 2,332.6 2.223 7 - - S.,982. 6

Total PROJECT Costs 646. 120.0 400,256.2 385,903.7 199. 330.9 170.803.7 136,991 1 1.939.405.7 28,356.6 17, 308.2 16.592 7 8.521 9 7. 260.?7 5,790.3 83,830.,4

Nooeter 6. 1990 17: 19

Annex 2

- 56 - Table 4

KENYA

FORESTRY DEVELOPMENT PROJECT

List of Detailed Cost Tables inAppraisal Mission Working Paper No. 9

1. Table 1 - Farm Forestry Extension/Field Operations -Pilot Districts

2. Table 2 - Farm Forestry - Support to National Extension

3. Table 3 - Farm Forestry - FESD Staff Strengthening

4. Table 4 - Indigenous Forest Management - Strengthening of NaturalForestry Management Division

5. Table 5 - Indigenous Forest Management - Forestry iRoad Development

6. Table 6 - Indigenous Forest Management and Conservation - ForestryOperations

7. Table 7 - Indigenous Forest Management - Forestry Inventory andAssessment of Non-Wood Products

8. Table 8 - Indigenous forest Management Pilot Projects

9. Table 9 - Industrial Plantations Replanting and Maintenance ofExisting Plantations.

10. Table 10 - Industrial Plantations - Establishment of AdditionalPlantations

11. Table 11 - Industrial Plantations - Maintenance of Existing PlantationsFire Protection

12. Table 12 - Industrial Plantations - Forest Road Development

13. Table 13 - Industrial Plantations - Support to Royalty Assessment andCollection

14. Table 14 - Institution Building - Strengthening of Forest Department

15. Table 15 - Institution Building - Vehicle and Plant Fleet ManagementServices

16. Table 16 - Forestry Education - KFC ',ndiani

17. Table 17 - Forestry Research - KEFR.

18. Table 18 - Forestry Master Plan

Annex iTable 5

- 57 -

KENYAFORESTRY DEVEFRENT PROJECT

Dotalled Costs of PPF Activitlos

Component Itom Unit Total Coot Not Cost InQuantity Cost of Taxes US3 O0N

.. '0 KSHS Not ofTaxes

1. Industrial Plantation (a) SterloSupport to Inventory Plotter System Sot 1 1,260 1,260 66

(b) Vehicle No. 1 396 s60 22

2. Equipment FleetManagemnt System (a) Technical

Assistance mm 4 1,126 1,125 56

(b) Vehiclo No. I 96 560 22

8. tr-ngthening of (a) OfficeForest Department Furnishing &

Equipment 84,850 24,826 1,688

(6) Architect/Planner m 6 480 480 21

(') LabourProfileStudy 1,360 1,358 6e

(d) SoparateAccounting mm 6 1,800 1,800 80

(e) Scouting/Contractingfor ManagementSupport Trip 8 676 876 30

(f) Vehicle forKey ProjectStaff No. 8 2,085 1,600 e6

(g) TransportOperationExpenses forVehicles In(f) above 225 226 10

TOTAL 46,240 88,740 1,600

KENYAfORESTRY DEVELOPMENT

financing Plan by Project CorniponentsCUSS '0001

FINNISHINTERNATIONAL OVERSEAS INTERNATIONAL SwissDEVELOPMENT DEVELOPMENT DEVELOPMENT EUROPEAN ECONOMIC DEVELOPTTENI GOVERNMENT OFASSOCIATION ADMINISTRATION AGENCY COMMUNITY CORPORAIION KENYA Total

Amount % Mount 1 Amount 1 Amount 2 Mount I Amount I Amount I for. CxcII.

A. FARM foRESTRY

I. fOREST EXTENSION .IEED OPERATIONS - PILOT DISTRICTS - - - - - -- - 396 554.1 328 945 3 725 3 0.9 277 52. SUPPORT TO NATIONAL fOREST EXTENSION- - - - -- - 64.1 45 5 76 A 54.5 140.9 0.2 112.73. FESD STAFF STRENGTHENING- -- -- - 5.1:2.5 91 6 468 6 A 4 5.SBT.0 6.7 3.028.1

Sub-Total FARM FORESTRY- --- -- - 5.573 D 86 4 874. 2 T3 6 6. 447. 2 7. 7 3. 418. 38. INDIGENOUS FOREST MANAGEMENT

I. STRENGTHENING OF FOREST PROTECTION AND CONSERVATION DiVISION- - - - - 4.236.1 59 1 2.937 0 40 9 7.173. 1 8.6 4.803 42. FORESTRY OPERATIONS- -- - - - 1,706.0 51.2- - 1.623 4 48.8 3,329.4 4 0 1.003.93. FOREST ROAD DEVELOPMENT - . 339. 5 48. 1 - - 1. 445. 8 51 9 2.785. 3 3 3 557.14. FORESI INVENTORY A ASSESSMENT OF NON-WOOD PRODUCTS- - 8,711.4 94.5 -- - - 582 5.5 9,219.6 11.0 6,517.85. PILOT SCHEMES - 4,941.1 100.0-- - - 0 0 0 0 4,941 I 5 9 2,795.2

Sib-Total INDIGENOUS FORESI MIANAGEMENT- - 13. 652. 4 49 7- 7. 261. 6 26.5 - 6.514 4 23.7 27,448.4 32.7 15,677.4C. INDUSTRIAL PLANTATIONS

I. REPLANTING AND NAINTENANCE Of EXISTING PLANTATIONS 4,360.8 57.5 . -- 3.226 5 4.'. 5 7.567 3 9. 1 3.261 02. ESTABLISHMENT OF ADDITIONAL PLANTATIONS 295.2 75.0 - - - - 98. 6 25.0a 393.8 0. 5 256.43. MAINTENANCE OF EXISTING PLANTATIONS: FIRE PROIELTION 670.8 57.6 -- - 493 8 42 4 1,164.6 1.4 589.74. FOREST ROAD DEVELOPMENT 5. 679.0 49.1. . .. 5,885.6 56 9 TI.S564.5 13.8 3.047. 1S. SUPPORT TO ROYALTY ASSESSMENT AND COLLECTION 710.9 55.2- -- -- - 577 2 44 8 T.288.0 1.5 503.7 U

Sub-lotal INDUSTRIAL PLANTATIONS 11, 716. 653.3 - 1 0. 281. 46. 7 21, 998.3 26.2 7, 658. 0D. INSTITUTION BUILDING

1. STRENGTHENING Of FOREST DEPARTMENT 6.738 7 85.5- - -- - - 1. 246 7 14 5 7. 85. 4 9.4 4,892.62. VEHICLES AND PLANT FLEET MANAGEMENT SERVICES 1.398 2 81.9 - -- - 308 6 18 I 1,706.7 2.0 927.4

Sut-Total INSTITUTION BUILDING 8. 136.9 84.8-- - - 1,455.3 IS 2 9.592. 1 11.4 5,820.0E. FORESTRY RESEARCH- -- -- 7. :12.6 69.0- - 3.200 3 31.0 10. 312.9 12.3 5,775.9F. FORESRIR EDUCATION- - - - 1.458.1I 71 2- - 590 8 28.8 2,048.3 2.4 923.8G. FORESRT RYASTER PLAN 5, -S982.6 TOO 0 - --- - - 5,982.6 7.1I 5.327.1

Total Disbursement 19. 853. 523. 7 13, 652. 4 16. 3 5.982. 6 7. 1 IS, 852.3 18. 9 5,573.0 6. 6 22.916 5 27 3 83,830.4 100.0 44,600.,5

Novembe 8, 1990 17.20

'- (

KENYAFORESTRY DEVELOPMENT

Financing Plan by Sizaiaiy AccountslUss * 0001

F INNISHINTERNATIONAL OVERSEAS INIERNAN TONAL SNISS

DEVELOPMENT DEVELOPMENT DEVELOPMENT EUROPEAN ECONOMIC OEVELOPMIENT GOVERNMENT OF

ASSOCIATION ADMINISTRATION AGENCY COMMUNITY CORPORAtION KENYA Total.... ... -- - ----- -- .. .. ..... .... ---- ----- ---- ... .... . . - ---- ---- . ... ... ca.l.lEoca l Dx l tDu ees

Amount 2 Amount 11 bmunt I Amount I Amount I Amount I Amount 2 for Exchi TOROS) lazeS

I. INVESTMENT COSIS

A. CIVIL MORKS 4.682 30 6 - -3.352 9 21 0 119 3 07 7.575 4 47 6 15.930 2 19 0 3.186 0 10.832 5 1. 911 6

B VEHICLES 3.707 2 27.4 828 3 6. 1 135.2 I 0 4.080 2 30 2 218 2 16 4.541 5 33 6 13.510 5 16 I 8.565.? 1,537.8 3.407.0

C. EQUIPMENT AND MATERIALS

OFFICE EOUIPNENT 97 2 67 186.3 12 8 416 6285 396 2 27 2 IA 2 13 342 623 5 1.456 1 I 7 727 2 38664 342 6

FIELD EQUIPMENT AND TOOLS 1.020 4 25 3 1.511.6 37 6 491 5 12 2 - 1.008.) 25 0 4.031 5 4 8 2,217.3 806 2 1.008 0

CAMP EQUIPMENT - 35 8 100 0 0 00 0 135 8 0 2 40 7 95 I

FURNISHING 1.521.4 676 -1)9 1 53 47 52 i 562 725 0 2.250 6 27 562 7 1,125.3 562.7

NURSERY EQUIPMENT 123.2 81 4 . .- 28 I 18 6 - - 151 4 0 2 128 7 22 7 -

Sub-Total EQUIPMENT AND MATERIALS 2.762 234 4 1.833 7 22 8 415 6 5 2 1.006 8 12 5 93 8 I 2 1.913 3 23 8 8.036 4 9 6 3.676 6 2.435 7 1.913 2

O IRAINING 1.143 5 12 4 596 0 65S 370 5 4 0 4,808?7 52 3 2.2708624 7 - 9.189 5 ITO0 6.325 6 2.863 9

E. TECHNICAL ASSISTANCE 3.786.5 559 -- 893.7 132 3.094 3309 6.774 5 Al 6.435 ? 338.7

F TECHNICAl SERVICES 313 4 31 I .004 8 48 8 4.571 4 446 276 0 1 353 0 34 10.250 2 12 2 9.730.5 519 a

G PILDT PROJECT FUND - 3.940 4 100 0 . - 3.940 4 4.7 2,000. 1.940 4

Total INVESTMENT COSTS 16. 595.2 24 5 12. 203.1I 18.0 5.492 8 8 1 14. 149 9 20 9 5. 149 4 7.6 14. 030.1I 20 7 67. 620 6 80 7 39. 920 1 20. 468 8 7,231.8

II. RECURRENT COSTS

A. SALARIES AND ALLOWANCES 388 0 132 350 2 1) 9 33227 11 0 1840b 63 i.693 457 6 2.93F 2 52.740.) 198.1

S. OPERATION AND MAINTENANCE

VEHICLES 2.353 1 25 5 887 3 9 6 71 0 0 8 750 2 8 1 90 2 I 0 5.060 8 54 9 9.212 6 II 0 3.224 4 3.511 9 2.476 3

BUILDINGS 412.6 IS 0 - - 589 6 21.4 25 7 0.9 1.722 762.6 2,750 6 3 3 550 I 1.870 4 330.1

TOOLS / EQUIPMENI AND MATERIALS 104 6 9 1 211 9 la85 418 8 365 40 0 3 5 53 14 46 319 227 8 1.147 6 1 4 777.2 337 8 32.6

Sub-Tolal OPERATION AND MAINIENANCE 2.870 3 21 9 1.099 2 8 4 489 8 3 7 1.379 7 TO 5 169 0 I 3 7.102 8 54 2 13.1It0 8 15 6 4.551 8 5.720 0 2.839 0

C. AGRICULTURAL INPUTS FOR SEEDLING PRODUCTION . 70 6 43 9 90 2 56 I 160 9 0 2 128 7 32 2

Total RECURRENT COSTS 3.258 320 1 1.449 3 8 9 489 6 3 0 1.702 4 105 423 7 2 6 8.886 454 8 16.209 8 19 3 4.680 4 8.492 3 3.037 I

Total Disburaemat .19. 853 5 23 7 13.5652 4 16 3 5,982.6 7 I I5. 852 3 18 9 5.573 0 6 6 22.916 5 27 3 83.830. 4 100 0 44,600.5 28.961.1I 10.268 8

Noveaber 6. 1990 17.20

- 60 - Annex 4KEfA Table 1FOH26r OEVELpEmT PmOjlrFORMT 0WARTM ILW

Actual Actual Actual Actual Printed Forvard Forward Formard

1985/66 198YI/87 1987/6 19U6/69 1989/90 1990/91 991/92 1M92/93

------------- In Kenyan Pound --------

OUTFLOWS

Recurrent672 Headquarters Forestry ODpartment 575,129 6I2.139 549,262 569.075 703.513 715.426 765,117 773,632

674 FITC Nakuru 472.431 609.390 564,254 643.199 60,824 694,693 769,419 846.773

675 Foraatry Train;ng Collogo, Londiani 284.873 327.668 266,825 248,947 BOS.120 320,232 555.17S 844.612

741 KEFRI 0 986,626

Subtotal 1,332.453 2,665.63S 1.349,641 1,390.221 1.650.437 1.750,551 1,o69,714 1,945,117

D,valop-ent /a

672 Hladquartara Forestry Departant 16525 S25.408 1.686 427,489 1.312,000 4,027,002 5.191,500 2,416.500

674 FITC Nakuru 562.921 106.S3 63,226 220.375 453,S0 272.600 240,000 268.000

676 Forestry Training Calloga, Londiani 37,733 63,260 53,193 161,401 616.500 690,025 427.625 246,000

676 Forestry and Plantation Daaelopeant 8,445,067 9.446.272 9,667.606 10,090.645 1,806.179 18,315,751 13.639,572 15.9S9,340

678 Local Afforeatation Sch_*a 957.700 1.065,562 1.267,538 1,290,62 1,745.415 1.609,906 1,689,260 2.048,22

679 Rural Affor.-tation Scheama 2.405.348 2.761,407 2.631U.2 3,163,714 3.9S0,452 4.379,236 4.639,4U6 5.063.425

681 Road Construction Unit 260,996 270,769 2.444 210,620 826.163 306,950 316.701 3S6.854

685 Samill Industry 7.492 6,60 3,898 5.730 6,500 6.830 7.170 7,950

688 Machkoa Integrated Dnveloment Project 55,515 11.640 29,910 74.742 192,606 296.000 S35,569 265,3S9

738 ASAL Forestry Development Scheme 176.472 159,006 126,207 339.547 1,072,615 1.299,099 1,406,778 1,056,959

739 Rural Tree DOe.lopmant 0 86.200 21,581 505.010 310,596 321.560 355,698 440.700

741 KEFRI 0 27.489

Subtotal 12.925,769 14,369.041 14,501.141 16,289.915 23.773,348 26.594.659 26,647,409 26,130,975

Total Outflows 14,258.2 16,94.,674 1.6850.982 17.6d0,U16 25,423.S05 28.325,210 30.517,123 30,096,092

IFFLOWS

Appropriat;ons-in-Aid to Forastry Dapartewnt

RavenuasSale of Sead- and Cuttingo 4,259 2,419 55,242 41,605 19.200 19,200 19.200

310 6.671

2.174 10.000

Sale of Timber and House 409,140 441.521 841,178 405.1568 529.37 600,000 688,086

Salas and Fees for Servicas Randarad 51.966 11,834 3,000 3.000 3,000

Subtotal 415,883 480.oll 626,368 4568,97 551,875 622.200 710,286

Grant FundsFinnida 495,000

Italian 26,619 57,391

Swiss 11,980

FAD 475

120 ASAL Taits Taevts 176.000 299,000

120 Afforestation Program 92.000 890,000 420,000 210,000

120 Kitui ASAL 37.500 14.000 14,000

170 Turkana Forestry Davalopant ASAL 114,750 184,600 150,000

170 Bungoms Rural Developmant Program 105,000 105,000

180 ASAL Kajiado 5,000 5,000

180 ASAL West Pokot forest Davelopment 10.000 10,000 10.000

200 Rural Tree D0valopaant Fund 263.720 260.000 260.000 400,000

210 Foraatry Dovelopaan+ Project II 144I.250 30.920 328,440

230 Forestry Project 519.000 490.025 27.626

250 MachaLo Integrated Davelopment Program III 170.000 S65,000 200.000 200.000

260 FITC Nakuru 42,000 242,000

26Ul Tram Oroming for Soil Protection 500.000 1.520,000 1,320,000 o60,000

260 Master Plan and Pol lomup Project 1.760.000 3,300.000 1.650,000

800 B8ring. Forastry 145,000 100.000

S30 Plantation Forestry Invantory 175.000 160,500 150,000 126,500

850 Hsu Narok Multipurpoe Project 200.000 300,000 300,000 300,000

530 Mangrowa Reaources Wnagemnt 70,000 70,000 70,000 70,000

580 Woody 8iomas n and. 70.000 70,000 70,000 70,000

530 Woody Bionmass H n. 70,000 70,000 70.000

340 Forestry Projact 26,400 614.728

Subtotal 6,749 57,391 0 475 2.802,620 7.143.673 7.055,065 3,696,500

Total Inftlom 949,632 518.002 6268.31 459,072 3.354.195 7,765,687 7,765.351 3.696.500

:FfLOW - OUrFLOWS (13.3080.90) (16,426.672) (15.,22294) (17.221.064) (22,069.610) (20.559,337) (22.751,772) (26.399,592)

0 ~ ~ ~ 0- 9

t~~~ t a

at '. ! :

I , .9 , 3(

a -- e-u -

25 * ;. ' 1.2' o : .e * S i i

Iti3* !t' 3

V 3 - .$

C~~~ ia

0~ ~ ~ S

a O'

- 62- Annex 4KlfA Table 2P5TRY ODEVUa4 PROJM0T

TDI ROYALTY - FYIOW

Area ClearcutTotal Pine Cyprec Eucalyptus

Poles 16O O0 OS 100S

Pulpwood 1,000 uST S6S 10SSeatimb-r 2,S50 s0o WSO 0O

Nectar" Clearcut:Poles 160 0 0 160Pulpwood 1.000 6S0 880 100Sn-timber 2.350 1,178 1.176 0

Average YieldsClearcut Thinninge Merchantable

Rotation MAI Ml/Ha 66/90(1) 35/70(2) Yield

Pulpwood 18 20 E60 324 0 324Sewtlaber 80 20 600 886 lg 495Eucalyptus 0 20 16O 180 0 1EO

Averass Royalty

Pinc Cypress Eucalyptus

Clearfel I i nPolc 024-S2dbh 0 0 195Pulpwood 8 S5dbh 192 192 198Sawtiaber 8idbh 204 290 0

Thinning:Poles c24-O2dbh 0 0 0Pulpwood 8 35dbh 0 0 0Sewtimber SSdbh 122 246 0

Col I ctab le RevenueClearcut Clearcut Thinning Thinning Total

Ha MS/Ha RoylIty MS/He Royalty Revenue

Pole - Eucalyptus 160 180 195 0 0 8.616.000Pulpwood - Pine 850 324 192 0 0 34,214,400

- Cypee 50 824 192 0 0 21.772.800- Eucalyptus 100 18O 190 0 0 8.,10,000

Sawtiaber (8) - Pine 900 8s6 204 139 100 77.909.040- Cypre- 900 886 290 189 150 111.731,400

Sautieber (4) - Pine 275 120 204 189 122 11.382.0S0- cypress 276 120 290 189 246 18.948.290

TOTAL 285.081.960Actual Collection 141.981,0b0

(1) The first number refers to the percentage of the total bio.... thatis recoverable at the tile of clearcutting Pine and Cyprem ewtiaber.The second numbcr refer. to the actual bioee. that i merchantable,decreasing *- fewer thinning are don.

(2) The first number rerementa the percentage of the total bio_a-that as recoverabl, from thinning. The second number rpreeentthe mrchantable volum, given that the first thinning anon-commrciel.

(3) baed on asseesment by stnding volum. Of this. about 1,200 ha of tiaber acrecleared by the toe peraatal and the royaltieo cannot be recovered.

(4) Dameg area eher re alt4ie mre eeemed by ground-al ing.

KENYA

FORM DFJELIIIEIT PRIIJECT

Gowonmt Cash Floin 196. mllion

19t 192 1993 1994 1995 1M 1997 Im 199 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Total

Saoce of fehs

lWroeetal oyaltin laFr esistig plutcttis 97.0 102.0 117.0 126.0 126.0 126.0 126.0 126.0 126.0 162.0 162.0 162.0 157.5 152.8 152.9 152.8 152.8 45.9 2.9 7.5Freo replutin id u 11plutingPupuu 101.0 141.0 141.0lalp 4.5 9.2 9.2 9.2 9.2 I5.1 19.2 13.5Peolu/fluld 9.9 9.9 9.8 10.5 10.5 42.1 32.3 32.3 32.9 33.1 39.5 11.3 11.3 12.1 12.9 40.1

lSd of e ling 0.0 0.1 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.3 * 0.3 0.3 0.3 0.3 0.3 0.3 0.4 0.4'Itwlu

1N 19.0 76.5 72.0 45.0 27.0 9.0 EC 130.5 67.5 63.0 42.9 31.5 19.0a 49.5 36.0 36.0 4.5 2.3 2.3SIC 13.0 22.5 27.0 18.0 20.3 15.9FtUIN 40.5 31.5 31.5Tueltin ea PreJKt Costs 65.5 35.1 34.4 1.5 12.2 6.9

Sutotal 5I.0 371.2 33i.1 253.0 229.1 197.7 136.0 136.7 136.7 204.3 1S4.5 194.6 195.2 195.4 201.9 173.6 173.4 174.4 175.2 202.5 4,505.5

Us of Fuad

For. lo. Project Cost 535.0 *304.0 307.0 201.0 175.0 141.0 60:2 21.6 14.5 14.3 14.3 14.2 60.2 21.6 14.5 14.3 14.3 14.2 60.2 21.6hbt Services

Forntry elopeht Credit 1.5 2.1 2.6 2.9 3.1 3.2 3.2 3.2 3.2 3.2 11.8 11.8 11. 12.9 11.9 11.9 11.9 11.91 11.8 11.8Sbtotal 596.5 30.1 309.6 203.9 271.1 144.2 63.4 24.8 17.7 17.5 26.1 26.0 72.0 33.4 26.3 26.1 26.1 26.0 72.0 33.4 2,219.3

Balance 2.5 65.1 71.5 4.0 51.0 43.5 72.6 111.9 II.0 186.8 169.4 161.6 123.2 162.0 175.5 147.5 147.5 149.4 103.2 169.1 2,236.3Cash if la per year 114.3

/a Assamq 3,300 ha. are cat vry yw d sing existing royalty rate.

W *.

mHA FORESTRY SECTOR PMWECTFill FORESTRY E IISII C INT

- _ . ~~~~~~~~~~~~~~s:fln..3.:nss==e3 sessstssscsecc

Discount Rate tO.02I PW 7,562 KSh

Isic ksuaptims IRR 67.71

seedling Ce t 0.5 KSh ea Discounted gross ha 5,696 Kh ILdar Cost 20 lShlid Discounted Labor 46.01

hrginslLabor 123.82 KSh/day 1Palo Value (5c x 31 2 KSh/pole KEl 339.53 1I3 ,:scssss;3s:1SRgmt3g,;..t

(12cx S*e 5 IShipole Oh 141.47 1I3

Firmnd Yalu 250 KShIU3

SWails Sr.villea riusta

Patters: ldury bidns: 67 trem/100 aField tree, 45 tre/baTotal: 310 trm/ba faruelet

han_aetl Pollrdid at 1.5 e starting at ae 5 P

Inputs: Seelie:ss 411 sedlingslhe faelet

Lder: Idig Collecti 0.5 ed/100 digs * 1.9 adSite Prep. 2 ed/IO digs a 7.6 edPlanting 0.5 ed/100 sdigs * 1.9 adHaintannce 1 1.5 d/100 sdls a 5.7 adhinteaRce 2 1.5 edlOO sdigs a 5.7 edHainteRace 3 0.5 Wd/UiO dips 1.9 ad

Harvestieg 0.5 ud/m3

Productions FoeelodsTrieeing 1.1780 d3/yr starting 3 years t 2.01 incr/annasHarvestig I 05300 d3 at 5 yearsHarveting 2 2.1200 .3 at 9 years

arvustieg 3 2.1200 d3 at 14 yearsIbrvestig 4 2.1200 *3 at 20 years

Large Poles (12 co x S al D:Harvesting 1 281 pole at 5 yearsHarvesting 2 563 poes at 9 yearsHarvesting 3 506 poles at 14 yearsHarvesting 4 422 pales at 20 years

Smll PoleS 5 cO K 3 *1Harvesting I 0 poles at 5 yearsHarvesting 2 563 poles at 9 yearsHaresting 3 619 poles at 14 yearsHarvesting 4 703 poes at 20 years

KON mwa. am FMi FIQSI C1UN Tmm

FMl am1 'Al

VW 1 2 3 4 5 I 7 3 9 0 It 12 13 14 15 16 17 13 19 20

bets

Utwialu 11imp 29.4

Ldws 1.6il CII. 41."fite Fr0 152.1pIutl 3.LeUai2tsuc 114.tt 1224. 33.00Uwniq .O 0o.o 11.73 12.32 174.92 2.50 12.75 ILO 33.53 13.53 13.30 24.4O 1.4 35.35 14.4 15.24 1a.54 15.0 2s.17 32LI2

lw cAuts a4-. 114.1 49.73 IL02 174.92 12.5 2I75 IL.01 33.53 13.53 13.1?0 124. 24.3 35.5 14.94 15.24 12.54 15.US l.27 321.2

Princtim

* Trihiep .1 0.oo 1.L1 1.20 1.23 1.2. 1.23 1.30 1.33 1.35 1.36 1.41 2.44 1.46 1.49 1.52 1.55 1.59 1.62 2.65Kwmstlq I 0 0.oo 0.1? 0.00 0.5s 61A 0.1? 0.1? 0.00 0.eo 0.30 0.oe 6.1 0.oo 0 e0 0. 0.1? 0.1o 0.1? 0.1Eautimg 2 0.1? 0. 0.1? 0 .00 0 .1? LO Lt N 0.1? 2.12 0.00 0.0e 0.1? 0.1o 0.1 0.46 0.eo 0.00 o.1? 0.1o 0.1?flwvatl 3 0.t1 0.1? 0*.1 0.00 0.0 0.1 6. 01 0.1 0.1 0.1? 0.1? 0.00 2.12 0.oo 0.46 0.oo 0.1? 0.1? .1

unstlq 4 0.1? 0*.4 0*. 0.0 0.1? 0.1 L.1? 0.1O 0.1? 0.00 0.oo o.1 0.00 o.tO 0.1 0.1 0.0 0.00 0.1? L12

0.1 0.1? 2.13 1.20 1.74 1.25 1.23 1.30 3.45 2.35 1.33 2.41 1.44 3.3 1.49 1.52 2.55 1.59 1.U2 3.

Lap PIn 1.1* Uwmtlmg 0 0 0 0 231 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

3wntll 2 0 0 0 0 0 0 0 0 543 0 0 0 0 0 0 0 0 e 0 0Iwnwut 3 00 0 o 0 0 0 0 0 0 0 e 0 0 0

ent"ti 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 * 42

* 0 0 0 211 0 0 0 543 0 0 0 0 SU 0 * I 0 0 422

batullsln (1Kwwntill 0 0 0 0 0 0e0 0 o a I 0 0 0 0 * 0 0Nwsntm 2 0 a * 0 0 0 0 0 3 0 0 0 0 * 0 0 0 0 0Nu'vti% 3 0 0 0 0 0 0 0 0 0 0 0 0 42 0 0 0 0 0 0llwwstlmg 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6 7M

0 0 0 0 0 0 0 0 53 a 0 0 0 42 0 0 0 0 0 7M3

F.lu. 0.O *.0. 294.50 0.n39 433.9 312.53 312.73 325.25 01.65 3.29 345.05 352." 3M." 1.17 373. 30.97 33059 39.34 40.29 942.37Lap PsIN 0.1 O 0. 0.00 0.01 2,24.00 0.01 0.00 0.O1 4,54.00 0.10 0.00 0.01 0.10 4,0.t 0 0.?0 0.00 0.1O O.t 3,374.4thl 11 0eln *.46 00 .1? *. 00 0.00 0.?0 0.00 0.001,426.00 0.00 0.00 0.0 0.it 1,233.1? 0.1O 0.00 0.00 0.00 0.3 1,460.46 1

Totl _un 0.40 0.00 29.50 300.39 2,61.90 312.53 321.73 325.15 4,491.5 331.29 345.05 351.95 3W0.9 9,12.? 373.53 330.97 SJ.59 39. 464.29 5,724.37

n.s Irpins 554101 (21411.30 244.7 203.372,511.9 300.02 306.03 312.IS6,100.13 324.76 331.25 33 344.635,3S5.U 3.5 35.3 373.04 30.3 333.215,440.23

Firacial btire 1209.00£ .0 0.00 0.00 2,243.00 0.00 0.00 0.10 5,630.1? 0.10 *.00 0.0 0.00 5,23.0 0.00 0.1? 0.0 0.tO 0.tt 4,712.1?Nhmays 17.29 5.70 2.49 0.60 9.75 0.3 0.64 0.65 29.23 0.. 0.69 0.70 0.72 27.82 0.75 0.76 0.73 0.79 0.1 15.31

Annex 4Table 4. Page Three

~~~~~~~~~V

n~~~~~~~~~~ u

* 1 .--

3~~~~~~~~~~~- V

" O s - - I

5.3~ - S 7 15 £

E~~~~~~ :, ** - m -

1S va , ; _ _ _ _ _ _ - -

ffi ! w 0 f hy. fiI 0 0 :=

o I -- ° C; - ~ . a :

4 A~~~~~~~~~~~~~~~~

s'. A a: z g. z . j ~IJ * r j =

KEN IA FORESTRY SECTOR MRJECTFARN FORESTR EITENSION CORPOIST

FARRI IWIL V

YEAR 2 2 3 4 5 6 7 a 9 1 0 II 12 13 14 15 16 17 to 29 20

Costs

fNatmrialsu Soomlials 900

Tool, so 0 0 0 20 0 0 0 0 20 0 0 0 0 20 0 0 0 0 20

Labws hedIzto CoIl 160Site Pr"p 240Plating 160Kauntmua e 440 440 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300Harvesting 0 0 36 0 616 208 0 0 0 647 208 0 0 0 647 209 0 0 0 647

Tctol Costs 1,950 460 3ju 300 936 509 300 S00 300 967 509 300 300 300 967 509 300 300 300 967

Prodactioo

Larp. Poles toolNarmtalmI 0 0 0 0 1,200 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0liarvnstial 2 0 0 0 0 0 0 0 0 0 1,155 0 0 0 0 0 0 0 0 0 0lIureting 3 0 0 0 0 0 0 0 0 0 0 0 0 0 021,255 0 0 0 0 0Narvmtiaq 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,155

0 0 0 0 1,100 0 0 0 0 1,255 0 0 '; 0 2,255 0 0 0 0 2,255

Small Pole, lao)ltavnkiaglI 0 0 600 0 0 0 0 0 0 0 6 0 *) 0 * 0 0 0 0 0Harvttnhi2 0 0 0 0 0 3,415 0 0 0 0 0 0 0 0 0 0 0 0 0 0llvartiql3 0 0 0 0 0 0 0 0 0 0 3,465 0 0 0 0 0 0 0 0 0Harvetiqg4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,415 0 0 0 0

0 0 600 0 0 3,465 0 0 0 0 3,465 0 0 0 0 3,415 0 0 0 0

kvmnu

Large Polus 0 0 0 09,9000 0 0 0 0 9,240 0 0 0 0 9,240 0 0 0 0 9,240Small Palm 0 0 1,200 0 0 6,930 0 0 0 0 6,930 0 0 0 0 6,930 0 0 0 0

Total hveoue 0 0 1,700O 0 89,00 6,930 0 0 0 9,240 6,930 0 0 0 9,240 6,930 0 0 0 9,240

6ross Rargies 21,9502 44601 864 (3001 7,e64 6,422 2300) (3(02 2300) 9,273 6,422 (300) 2300) (3002 9,273 b,422 i300) (3002 2300) ,273

Financial Return (9002 0 1,200 0 9,900 6,930 0 0 0 9,240 6,930 0 0 0 9,240 6,930 0 0 0 9,240I2ways 50 23 17 15 46 25 IS 15 15 47 25 15 15 15 47 25 15 25 15 47------------ ------------------------------- --- ------- -------------------- I.-- --------------------------------------------------- - -

KEllA FOKSMT SMCT0R fOJECTFARR FEESTRY EITENlItN CWUIT

FAR NOtEL 'C ' , -a t.=.fl:.:.s.. n... .. :,= .......... :Dhuscot Rate lO.I

9nic kwoptti 'I 2,v21 KSh :. ........ ERR 32.71

W liag Cost 0.5 tSh aLar Cnt 20 (ShIed Illistnted Bross Marqin "7.21

:Oiscounted Lbwr 47.5SPalo VeRa 15cn * Jl 2 Ish/pole itncomehaday 20.911 KSItda

112w * So | ISII :,-gh ,..,FtrUeu Value 250 KSh1l3

Species: kHiracta lodicatestis simsocalyptes casaldtleesif

Bresillee rosta

Pattnt rdAy badles 67 trslDo1 a C. SmaiHented tre 20 trees per belot E.c. + ki.OField trefte 0 tre/ba Lr..

tot&l: 502 trees24& f relot

Naagesemt: Hedis crop"ed fw Iulo lsull polesHometead tret itr large polnField tre tried for fwlooolpollardod fI poles

epats: Sedlings: 552 eedinnp/ba farelot

Lbor: Sdig Collectn 0.5 ntl/00 sdls s 2.76 adSite Prop. 2.5 ad/100 $dis | 13.8Plating 1.5 iId00 isdsp 8.29KAistentce l 1.5 IdIOP Ip s 9.28kaintetnce 2 1.5 ed/IO %dgs ' 8.28Hanteonncoe 3 1 eIM104 stIp t 5.52

Karvntieg 0.5 .:Vts

Prodlctiont Feloodst Canis beddge 2.5000 3 anually fro. S yearsHomestea tte 0.0300 3 anually Irn IFiell trm 0.1200 d anmally rma 5

Larg oe, (12 c t 5 at CCnssa adgen 101 poles at 10 20 30 yeaWsHosb tea tree lO poles at I l 24Field teem 20 poles At tO 20 50

Sall Plesn I c I I nlCaissa hod%es 201 poln at 5 10 15 20 yearsIhonstea tre 10 poln at B 12 16 20Fheld tre 40 poen at 10 15 '20 25

................ ....................... *... .. ........ ............ .... .... ... ....... ...... ....

KEA FETY SECTOR PROECTFIII FORESTRY EITENSIM COiFM DEL 'C'

YE. 1 2 3 4 5 6 7 B 9 10 11 12 13 14 15 16 17 13 19 20

Coats

hatarialat hu4biie 271.00

Lubors S631 Call 55.20Situ Prop 251.00Plti. 150.60hintustu 150.60 150.60 1OO.0Narvtilg 0.00 0.00 0.00 0.00 39.26 26.20 26.20 32.70 26.50 109.44 26.50 27.10 26.50 26.50 40.96 32.70 26.50 26.50 26.50 96.38

Tatd Csts *L84 150.60 100.0 0.00 33.26 26.20 26.20 32.70 26.50 106.44 26.50 27.10 26.50 26.50 40.96 32.70 26.50 26.50 26.50 S6.31

Fueli (t31Cassd hwe 0.00 0.00 0.00 0.00 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50

aaunte tr 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 a'Field trtts 0.00 0.00 0.00 0.00 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 tD

0.00 0.00 0.0 0.00 2.62 2.62 2.62 2.65 2.65 2.65 2.65 2.65 2.65 2.65 2.65 2.65 2.65 2.65 2.65 2.65

Larp Prln lea)Cussia hundp 0 0 0 0 0 0 0 0 0 101 0 0 0 0 0 0 0 0 0 101

astaa tr n 0 0 0 0 0 0 0 10 0 0 0 0 0 0 0 1o 0 o 0 0Field trm 0 0 0 0 0 0 0 0 0 20 0 0 0 0 0 0 0 0 0 20

0 0 0 0 0 0 0 10 0 121 0 0 0 0 0 10 0 0 0 121

Sull Poin tso)Cassia tde 0 0 0 0 201 0 0 0 0 201 0 0 0 0 201 0 0 0 0 0Nmte trem 0 0 0 0 0 0 0 10 0 0 0 10 0 0 0 10 0 0 0 0Field tre 0 0 0 0 0 0 0 0 0 40 0 0 0 0 40 0 0 0 0 40

0 0 0 0 201 0 0 10 0 241 0 10 0 0 241 10 0 0 0 40

Fhlood 0.00 0.00 0.00 0.00 655.00 655.00 655.00 662.50 662.50 662.50 662.50 662.50 662.50 662.50 662.50 662.50 662.50 662.50 662.50 662.50Sall Poln 0.00 0.00 0.00 0.00 402.00 0.00 0.00 20.00 0.00 432.00 0.00 20.00 0.00 0.00 462.00 20.00 0.00 0.00 0.00 9o.00Lrge Paln 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 964.00 0.00 0.00 0.00 0.00 0.00 90.00 0.00 0.00 0.00 964.00

Total Ibu 0.00 0.00 0.0 0.00 1,057.00 655.00 655.00 762.50 662.50 2,108.50 662.50 662.50 662.50 662.50 1,144.50 762.50 662.50 662.50 662.50 1,706.50

6ra Nargins IR83.40) 1150.601 (100.401 0.00 1,019.74 629.90 628.80 72M.3 636.00 2,000.06 636.00 65.40 636.00 636.00 1,103.54 729.90 636.00 636.00 636.00 1,610.12 i

Fiamial Rturn 0.00 0.00 0.00 0.00 402.00 0.00 0.00 100.00 0.00 1,446.00 0.00 20.00 0.00 0.00 492.00 1OO.00 0.00 0.00 0.00 1,044.00fhmm 30.37 7.53 5.02 0.00 1.91 1.31 1.31 1.64 1.33 5.42 1.33 1.36 1.33 1.33 2.05 1.64 1.33 1.33 1.33 4.82

_~~~~~~~~~~~~~~~ _- - -_______-__-__-____-_ -____- -- _____ ___

VEIIYAFORESTRY DEYELOPIENT PROJECT

IlCEEIIThL OEIEFTTS ANG COSTS(KSn. million)

1 2 3 4 5 6 7 a 9 10 it 12 13 14 15 16 17 18

Incrental EenefitsNow and Replanting 10.8 10.9 10.8 11.5 15.0 89.5 78.7 78.7 89.2 101.9 109.3 34.7 34.7 195.6Fire Lasses Avoided 9.6 9.6 9.6 9.6 9.6 9.6 9.6 8.6 9.6 9.6 9.6 8.6 9.6 8.6 8.6 8.6 9.6Residual Vaue

Total 0.0 9.6 9.6 8.6 19.4 19.4 19.4 20.1 23.6 9*.1 07.3 87.3 97.8 110.5 117.9 43.3 43.3 194.2

lnueental CostsInvestuent Costs:Roads 29.6 27.3 26.6 23.5 23.4 7.7Industrial Plantations 37.5 6.6 4.2 2.2 1.1 1.0Additional Plantations 4.3 0.7 0.7 0.7 0.7 0.7Fire Protection 8.9 3.0 0.3Institutioep Building 12.0 2.6 2.9 2.0 0.2 0.3

Subtotal 91.2 40.2 34.7 29.4 25.4 9.7

Recurrent Costs _Roads 5.4 6.7 7.8 7.9 7.9 9.9 9.9 9.9 9.9 8.9 8.9 9.S 8.9 9.9 8.9 8.9 9.9 8.9Industrial Plantations 5.3 6.3 6.3 6.4 6.4 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5Additional Plantations 0.4 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5Fire Protection 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7Institution Building 0.1 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3Labor 11.1 12.7 14.3 14.6 14.8 15.9 6.6 5.2 3.4 3.0 2.1 1.6 1.7 1.3 1.2 1.6 1.6 1.4Replaceunt Costs 48.6 9.2 0.7 0.6 0.5 0.4 48.6 9.2 0.7 0.6 0.5 0.4

Subtotal 23.0 27.2 29.9 30.3 30.5 32.8 72.1 30.3 21.0 20.5 19.5 18.9 67.2 26.4 19.8 19.1 19.0 19.7

Total 114.2 67.5 64.7 58.7 55.9 42.5 72.1 30.3 21.0 20.5 19.5 18.9 67.2 26.4 19.8 19.1 19.0 19.7

Nt Benefits (114.21 (58.9) (56.1) (50.1I (36.51 (23.11 (52.71 (10.21 2.6 77.6 67.9 69.4 30.6 84.1 99.1 24.2 24.3 175.5

ERR 17.21

* iDon I

19 20 21 22 23 24 25 26 27 29 29 30 31 32 33 34 35

Increetal 8nuf itslkn nd Replanting 250.3 311.5 1,181.3 1,191.3 1,219.3 175.7 122.8 49.2 48.2 t9.2 IO.3 926.6 916.3 916.3 916.3 916.3 916.3Fire Losos Avoided 9.6 9.6 33.5 33.5 33.5 33.5 33.5 33.5 33.5 33.5 33.5 33.5 33.5 33.5 33.5 33.5 33.5Iesidual Vaue 13.5Total 259.9 320.1 1,214.0 1,214.1 1,252.9 209.2 156.3 81.7 91.7 81.7 43.9 960.1 949.9 949.9 949. 949.8 963.3

Incremental Costslnestent Costs?boadslndustrial PlatatimsAdditional PlantationsF'ru ProtKetion -Institution Building

Subtotal

Rkeurrent Costsods 9.9 B.9 9.9 9.9 B.9 9.9 8.9 9.9 8.S 9.9 9.9 8.9 9.9 9.9 8.9 8.9 8.9

Industrial Platations 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5Additional Platations 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5Fire Protectiom 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7Institutim Buildirg 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3Labr 1.3 1.3 1.1 1.1 0.9 0.9 2.2 1.6 1.6 1.3 1.2 1.2 0.7 0.3Replacbmnt Costs 49.6 9.2 0.7 0.6 0.5 0.4 49.6 8.2 0.7 0.6 0.5 0.4 4N.6 9.2 0.7 0.6 0.5

Subtotal 66.8 26.4 19.7 19.6 19.3 19.1 66.7 26.7 19.2 3.B 19.6 19.5 66.2 75.4 17.6 17.5 17.4

Total 66. 26.4 18.7 18.6 19.3 19.1 66.7 26.7 19.2 19.9 18.6 19.5 66.2 25.4 17.6 17.5 17.4

lit Belefits 192.1 293.7 1,296.1 1,196.2 1,234.5 191.1 99.6 55.0 62.5 62.9 25.2 941.6 03.6 924.4 932.2 932.3 945.9

'Ut

Annex 6Page 1 of 6

KENYA

FORESTRY DEVELOPMENT PROJECT

Main Subsector Issues and Prospects

Deforestation of Indigenous Forests and Environmental D3gradation

1. Kenya's natural forests and woodlands have been reduced in areaand protective tree cover at a large scale over the past decades andthis trend continues, perhaps at an accelerating rate. The overridingcause for this has been population pressures, resulting in increasingdemand for conversion of forests to agricultural land, for timberproducts and for woodfuel. The denudation has had a negativeenvironmental impact. Critical watersheds are in danger of beingdamaged irreparably, resulting in loss of top soil, downstream flooding,disruption of dry season water supply, and loss of indigenous flora andfauna. It has been estimated in the Subsector Review that, if thisprocess is not halted, resulting damages to the tourist industry and toagricultural production alone could total over US$ 50 million p.a.There has been no inventory of the natural forests to provide a basisfor sustained yield management since the 1960s, and their protection hasbeen inadequate, as has been control of cutting. However, since1988/89, Government has moved the illegal squatters out of large partsof the gazetted forests, and this process continues.

2. T.; prevent further environmental damage and economic losses, it isnecessary to institute effective control by FD against all forms ofillegal int:usion over all surviving key forest areas and to improveforest management. As a prerequisite, a rapid timber and ecosystemsinventory of the indigenous forests and a broad bio-mass survey of thewoodlands are needed for the preparation of a nationwide forest land useplan and forest management plans. Special remedial measures include thedeployment of forest guards, including a broadening of their roles toprovide forestry extension services to people living adjacent to theforest areas, (re-)definition of forest boundaries, gazettment ofadditional forests or of changes in boundaries, and regeneration ofdenuded natural forest land. Furthermore, present pricing policies,which make the indiscriminate cutting down of natural trees financiallyattractive, need to be changed, and ways of involving the local peoplein the sustained management of the indigenous forests need to bedeveloped.

Woodfuel Shortage

3. A woodfuel deficiency is building up in Kenya because within 5-10years most of the lands from which charcoal for urban use have been

- 73 -Annex 6Page 2 of 6

obtained in the past will be cleared and converted to agricultural landuses. Clearing of trees for charcoal is already moving to ecologicallyfragile woodlands with detrimental effects on soil and water resources.Fuelwood stocks are being depleted at an estimated rate of some 15million m3 p.a. and this is projected to more than double in the nextten years, a trend that cannot be sustained. In the next 15 years, ifthe country's fuelwood development program is not accelerated to createsustainable sources of fuelwood to meet demand, the equivalent of threemillion ha of open savannah forests, or up to half a million ha ofhighland catchmpnt forest (or some combination of the two), wouldprobably be cleared, entailing disastrous ecological consequences.

4. There are three main constraints holding back the implementationof a large fuelwood development program: (a) the limited availability ofpublic land for this purpose; (b) the low commercial profitability ofgrowing trees for fuelwood; and (c) insufficient supporting technicalinputs. The bulk of the fuelwood supplies required in the future canonly be generated through private sector plantation initiatives.Farmers in Kenya do grow trees on their farms and the nationwideintensification of this activity could be the most efficient means tosatisfy the fuelwood demand.

5. The profitability of growing fuelwood by the private sector couldbe improved by correcting present imbalances in the pricing systemthrough upward adjustments by FD of stumpages on their fuelwood sales,which are now subsidized, and more efficient stumpage collection;deregulation of charcoal sales prices and abolition of limitations onthe transport of charcoal made of plantation wood; closure of vulnerableand other key forests and woodlands to woodfuel production; andintroduction of a permit-and-fee system for wood legally gathered inforests and all woodlands. Also, more work has to be done in the formof studies and pilot schemes on economic models of agro-forestry andpure fuelwood plantation schemes to quantify costs and benefits ofdifferent investment approaches and justify possible incentives, likecredit and other input services or possible fiscal support.

6. To make on-farm tree growing a massive popular activity on asustained basis depends critically on extension services available tothe tree farmers. While FD's Forest Extension Services Division (FESD)has recently extended its network of extension stations, its extensionapproaches remain largely undefined. Various modes of farm forestryhave been promoted in Kenya by many public and NGO agents. There isneed to consolidate extension by adopting a few dominant approacheswhich can be replicated widely. In cases where a particular approach'sfeasibility and replicability have not yet been well established,selected pilot operations should be pursued. Another urgency is todefine the lead agency (agencies) for tree farming extension and themodes of cooperation or division of labor among the agencies active inthis field. Horeover, in order to justify a given intensity ofextension, it is becoming necessary to continually gauge the extensioninputs and costs against outputs, i.e. seedling survival and woodproduction, as well as against impact, i.e., the direct and indirectphysical and socio-economic effects. This would require instituting a

- 74 - Annex 6Page 3 of 6

wide-spread and long-term monitoring and evaluation system. Alsoresearch irtto, and genetic improvement of fuelwood species need to beintensified, including species suited to semi-arid and arid zones.Finally, the promotion of tree planting for fuelwood should becoordinated with programs for energy conservation and improvedproduction methods of charcoal from plantation-grown wood in terms ofyields per m3 of wood and charcoal quality.

Inefficient Management of Industrial Plantations

7. Kenya's 1.70,000 ha of industrial plantations under the FDconstitute an enormous asset. Currently, this asset is underutilizedand inadequately managed. For example, delays of prescribed thinningsand final harvests at maturity, as well as omissions of prunings, allresult in huge forgone benefits due to retarded growth, late revenue,poorer quality, and increased mortality. These losses, combined withthe use of an expensive and poorly supervised, permanently employedplantation labor force of low productivity, and significantnon-collection or arrears in the collection of timber royalties, haveled to a situation where the management of the plantations is inevitablybeing subsidized by the Government. At the same time, most woodprocessing mills cannot expand in the face of difficulties in obtainingsufficient timber. Timber shortages occur due to shortcomings inplaianing and sequencing of operations, non-maintenance of forest roads,and weak control of plantation management and harvesting by FD.

8. FD's inefficiency in managing its plantations had by 1989 in thesawnwood working circle led to accumulated backlogs in silviculturaltreatments and plantation re-establishment of such magnitude that FDrequested forest licensees (sawmillers) to take responsibility forclearing substantial parts of the backlogs on harambee basis (voluntarycontribution). The industry, facing suspension of its timber harvestinglicenses from FD, responded swiftly and with using casual labour inefficient operations, the total extent of which is not well documented.In the pulpwood working circle, Panafiican Paper Mills (PPM) has beeninvolved at a large scale in the re-establishment and early tending ofplantations also on a contribution basis already for several years. FDis interestec. in continuing this type of cost-sharing whenever needed.

9. In the absence of an inventory only A small portion of theplantatioas have valid management plans. There is an urgent need for aplantation inventory as a basis for accurate management plans, and theirupdating at regular intervals. The FD should improve the financialviability of its plantations by tightening their management, increasinglabor producu;ivity, improving the forest roads, introducing integratedsawlog/pulpwood harvesting where practicable, intensifying royaltycollection, and timely implementation of tending and felling operations,and replanting. Studies have shown that the existing industrialplantations, at current royalty rates and at a normal level ofmanagement efficiency, could be financially self-supporting and inaddition generate sufficient funds to cover most, if not all of FD'sather expenditures. The accumulated volumes and fuiture growth of theexisting sawlog stands should be able to sustain the industry for

- 75 -Annex 6Page 4 of 6

another 30 years. There appears to be no immediato need for asubstantial expansion of the total area of plantations. Instead,efforts should be directed to improved management of the existingstands, to the timely replanting of clear cut areas, and only a moderateexpansion of pulpwood plantations at this point of time.

Weakness of the Forest Department as the Principal Line Agency

10. Many of the problems in Kenya's forests have been aggravated bythe fact that FD is a weak line agency, with limited political support.FD has been suffering from static budgets in real terms, compounded bystructural imbalances caused by 80-85? of the budget being spent onsalaries and wages. Consequently, the department's development has beenretrograde in the past five years to a point where its operations areseverely hampered by run-down and insufficient infrastructure andvehicles, lack of materials, low morale among staff and particularly thelabor force, and a continuous state of crisis management. The systemsof coordinated planning of work, execution, supervision, monitoring andreporting have almost broken down, and accountability of staff isinadequate. The restructuring of FD's organization at HQ level in 1989,a sound measure, has however had little impact to stem theadministrative and management negligence. Since mid-1989, FD has beenwithout a head office, but an unfinished building for this purpose is inthe process of being acquired. As a result of these developments, FD isno longer adequately equipped to cope with the challenges of meeting thedevelopment requirements of an environmentally sound and efficientlyproducing forestry subsector. FD's host Ministry, MENR, is equally weakand has not been able to ensure the strengthening of the FD. OtherGovernment agencies and NGOs have built up capacities to partly fillthis gap, particularly in agro-forestry extension (MOA, MOE).

11. The FD requires functional strengthening and selectedrestructuring in areas of improved accounting and planning;establishment of management info-mation and steering systems, includingmonitoring and evaluation; strengthened forest extension and woodfuelmanagement; better forest protection and management; and roadengineering. Also a system of increased delegation and more efficientcommunication between HQs and the field offices should be introduced.Another priority area is in-service training in management and selectedsubject matters for managers and supervisors throughout the department.Career streams need to be streamlined according to specialization.There is a need to invest in civil works, facilities, vehicles,training, etc. to support improved operational efficiency.

Inadequacy of Forest Research and Forestr Education

12. Kenya's priorities in forest research, which have recently (1990)been determined by a major programming effort of KEFRI, pertain toenvironmental concerns, tree growing on farms, wood-based energyproduction, indigenous species and management of industrial forests andembrace biological, economic and social research. At present theseresearch needs are poorly met. KEFRI was only in 1986 separated fromthe Kenya Agricultural Research Institute (KARI) and is now facing the

- 76 -Annex 6Page 5 of 6

task of growing into an independent organization. It has a meagrebudget, depends much on the frequently short-lived assistance fromexternal donors and has so far not well supported the areas of forestrywith the most pressing research needs. It also suffers from lack ofre._earch facilities. Its assets are a strong leadership, dedicatedstaff and a clear vision of its role.

13. There is no alternative to obtaining the needed research resultsbut, over time, from a strengthened KEFRI. This can only be achieved bya firm commitment to funding KEFRI to embark on a limited but manageableresearch program that focuses on the above priority developmentobjectives. The institute will have to establish closer contact withthe main users of research results. Its network of research stationsneeds to be consolidated to avoid spreading scarce resources too thin.Many staff require additional training. It is also necessary for KEFRIto establish linkages with other research organizations.

14. The subsector's development also hinges critically on theavailability of competently trained forestry personnel at all levels.The educational contents and graduate crtput of the country's twoinstitutions providing forestry educat ,n at the professional andtechnical levels, the Department of FoLtestry at Moi University (DFMU) inEldoret and the Kenya Forestry College at Londiani, need to be tied moreexplicitly to the staffing requirements in the subsector, particularlythose in FD. Both institutions provide little specialization in theircurricula and suffer from a lack of qualified teaching staff andadequate facilities and equipment. These limitations on projected needsof specialized forestry personnel in Kenya will have to be redressed andthe two institutions built up so as to respond to these needs. Acomplicating factor is the recent expansion of student numbers at theuniversity level which severely overloads FDMU facilities and staff thatmaintenance of standards may not be possible. Also the issue ofvocational training in forestry, at present unavailable in the country,will need to be addressed.

Deficient Inter-Agency and Donor Coordination

15. The sub-sector is characterized by the multiplicity of ministries,line agencies and other governmental entities involved in forestryactivities. In some instances, despite a satisfactory division of workbetween the agencies, there is weak or no coordination; in other cases,the respective responsibilities of the agencies are poorly defined (e.g.the presence of three ministries in on-farm extension forestry). Thissituation has resulted in (partly) overlapping mandates, duplication ofefforts, confusion, even competition, and inoptimal allocation and useof scarce development resources. Inter-agency cooperation is weakest atthe ministerial and line agency central levels but is more successfullytaking place in the Districts where the different agencies' fieldofficers have closer contact with each other either on a personal basisor out of the DC offices. In any case, the present fragmentation offorestry activities renders it difficult for the agencies concerned toadequately address the major subsector issues and resolve them.

- 77 -Annex 6Page 6 of 6

16. The activities of the many external multilateral and bilateraldevelopment agencies and NGOs have aggravated the afore-mentionedfragmentation process. Donor funds have been used to finance operationsof limited scope and duration outside a broad subsector developmentprogram. With few exceptions, the plethora of support operations haveoverwhelmed the recipient agencies and have on balance contributed todisjointed and geographically uneven development in the subsector.Above all, once the external support has ceased, project operations havefrequently been unsustainable.

17. The situation is sufficiently serious to warrant attention by bothGOK and the donor community. What are required are operations based ona strong, subsectorwide planning effort. If a strong subsectoraldevelopment program and its efficient funding and implementation are tobe ensured, agreement is needed amongst various Government organizationson the mandates and on mechanisms securing effective cooperation andcoordination of efforts amongst them.

Obsolete Subsector Policies and Legislation

18. It is more than 20 years since either the Forest Policy (1968) orthe Forests Act (1962) have been revised, and the Forest Policy isdefinitely in need of revision. Up-to-date Government subsectorobjectives have not been spelt out in a specific manner for a long time.The Forests Act deals only with demarcated and gazetted Forest Reserves,and does not pertain to forestry activities outside these reserves, suchas tree farming on private land and forestry operations in forests andopen woodlands on Trust Land under customary communal tenure. The oldForest Policy does concern itself with these forms of forestry but isnot sufficiently explicit on them for practical guidance.

19. The absence of a clearly defined policy and strategies carry withthem the risk of conflicts, or of gaps in the responsibilities of publicadministration. This seems to be what has been happening in Kenya;formulation of a clear policy is, therefore, critical in view of theincreased number of implementing agencies in the subsector, on the onehand, and the new challenges and changed priorities, on the other. Inaddition to the Forests Act, it is also exigent to revise or clarify theforestry-related parts of the Chiefs' Act, to provide the legislativebasis for applying the Forest Policy.

- 78 -

KENYA----- Annex 7

FORESTRY DEVELOPMENT PROJECT............................

Project Implementation Schedule Chart 1................ ...................... .

I I ~~~~~1)!efore Main P. Yr I P. Yr 2 P. Yr 3 P. Yr 4 P. Yr 5 P. Yr 6

lParoJect 11 it III IV 11 11 III IV 11 11 III IV It 11 III IV 11 11 III IV it 11 III IVI

Project Components and theirMain Activities

T.7Firm Forestry Extension:-a. Strengthening of FESD HOs -_-_-_-_-_-_-_-_-_-_-_-b. Coord. and Monitoring of . __ _ __ __ ___ _ _______

Existing Pilot Operationsc. Intensified Forest Exten- -.

sion in New Pilot Distr.d. Support to Nationwide .. _ _

Forest Extension

Z. Indigenous Forest Manage-ment and Conservation:

a. Strengthening of Indig. ..Forest Mgt. and Cons.

b. Operations in Indigenous .. _ _Forest

c. Inventory and Management -.. _-_-_- .- - - .--

Plansd. Pilot Schemes .| -_____-

3. Industrial PlantationsDevelopment:

a. Strengthening of Plant. --_-_-_-_-_- -_-_-_-_-_-_Establ. and Maint. Capac.

b. Operations in PlantationForest

c. Commercial Sector Involve- -.

ment/Participationd. Intensified Revenue

ColtLection

4. Stregthening of FD'sCentral Functions:

a. Strengthening of FD's HQ _ . . . . . . .Functions - - - - - - - - - - -

b. Stregthening of Road Dev't ......_ __ _ . . . . . . . . . . . .and Transp. Funct.

c. Measures to Improve Labor -_-_-_-_-_- _-_-_-_-_-_

Productivity

S. Forestry Education-KFCLondiani: Dev't support - - - - - - - -

6. Forestry Research-KEFRI - -- -- - -- -- -Dev t Support -_

7. Kenya Forestry Master Plan |

Common Activities................

Road Rehabititation & Maint. Civil Works Construction .I._. ._._.Vehicte Procurement -.-_-_--- _ - - - - - -

Equipment Procurement - -_ -_ _ _ _ . . . . . .TechnicaL Services _____ ____ _ __. . . . . .

In-Service Training (non- - -_ -l__degr. & degree training)

Technical Assistance . .. .. .. .. .._.._.._.._Monitoring & Evaluation . .

KEY DATES

EffectivenessAnnual Work PlansProgress ReportsAnnuat Project Progress

ReviewMid-Term ReviewRevised Forest Poticy *

Adopted F PlcCompletion and Closing l

1) assumed to begin1 April 1991

- 79 -

KENYA Annex 7

FORESTRY DEVELOPMENT PROJECT Chart 2

Implementation Schedule of Forestry Master Plan~~~~~~~~~~~~... ... .. .. ............. ....................... -... ....... . ...

Activity a) Year I Year 2 2 Year 31 11 III IV I1 11 III IV I 1 11 III IV I

PART 1. FORESTRY MASTER PLAN1. Preparatory Phase:

Issues PaperDetailed Work Plan

2. Base Studies/Surveys Phase:Resource Assessment ...... ...... ...... ...... ...... ......Other input studies/surveys . ...... ......

& technical information

3. Policy Review/Revisions: ...... . ...... ....... ......

4. Analysis Phase:Development strategies ...... ...... . ...... ......and prograffmes

Institutional support ...... ...... . ......programmes

5. Master Plan Formulation Phase:Preparation of nationwide . ... ...... . . ......Plan

District-level plans ...... ......

6. Project Formulation Phase:Project preparation ...... ...... ...... ......Imptementation plan

PART 11.INSTITUTIONAL STRENGTHENING

1. Development of Management . ..... ..-. . . . . . ...... ............ .....and Information Systems

2. Training Courses, Seminars * *** ** *** ** ** * ** * * * * *& Workshops

PART III. TASK SUPERVISION

1. Steering Committee * * * * * * * * * * * *2. Monitoring3. Evaluation _ _ _ _ _ _ _ _ _ _ _

a) 1st quarter of year I is Oct.-Dec. 1990

KENYA

FORESTRY DEVELOPMENT PROJECT____________________________

Key Peformance Indicators

-;-;----------------- ----Targe t------------------------ ----- Targe t------Project Component. and Activities Unit By End of PYr 1 By End of PYr 2 By End of PYr 3 By End of Project

Unite X Units X Units X Units X

I. Farm Forestry Extension

1. Phasing In of pilot divisions No. 5 33 11 73 13 87 15 1002. Nurseries operating/established

a. Divislonal nurseries No. 5 83 11 73 18 87 15 100b. Location nurseries No. 10 14 40 57 60 86 70 100c. NGO/group/school nurs ries No. 20 6 80 23 146 41 356 100d. Individual nurseries No. 90 6 820 21 600 40 1,600 100

8. Seedling produceda. Dlvisional nurseries '000 160 S 580 16 1,100 32 3,410 100b. Location nurseries '000 1SO 4 660 17 1,405 37 3,780 100c. NGO/group/school nurseries '000 40 2 175 11 420 26 1,625 100d. Individual nurseries '000 3S 2 190 18 S1S 35 1,S00 100

4. Civil worksa. Office buildings - new No. 5 a8 11 73 13 87 15 100b. Housing - new No. 5 88 11 73 13 87 15 100 c0

S. Vehicles & plant procured No. 10 48 16 76 19 90 21 100 06. Equipment A furniture procured Xof costs 30 45 52 1007. Technical Services _ 16 19 34 40 69 70 84 100S. Training

a. FESO HQ staff - 16 16 34 33 65 64 102 100b. FESD field staff - prof.tebch. - 35.5 3 98 7 420.6 31 1,3365. 100

FESD field staff - subordinate - 105 7 456 30 806 63 1,S06 100c. Other agoncies, Inc. MOA _ 61 12 181 27 159 33 488 100d. NWO A group leaders - 120 4 646 20 1,270 40 3,200 100

9. Technical Assistance 386 25 72 SO 102 71 144 100

II. Indigenous Forest Management and Conservation

1. Phasing In of pilot scheme No. a 100 3 100 8 100 3 1002. Reforestation

a. Planting of doeuded areas ha 300 11 700 26 1,200 44 2,700 100

b. Enrichmnt planting ha 800 11 700 26 1,200 44 2,700 100

8. Boundar, demarcation o

a. Beacons No. 1,900 23 3,800 47 6,300 78 8,100 100 M i C

b. Survey point. No. 200 7 400 14 1,000 36 2,800 100 m X

e Boundary pIanting Km 360 35 750 75 8S0 85 1,000 100 -J4. Forest roZd dedvelopmnt

a. Rehabilitation Km 83 25 107 42 154 60 267 100b. Repairs Km 86 17 70 34 106 51 206 100c. Bridgs - repairs No. 6 28 8 44 11 61 18 100d. Maintenance Km 80 8 240 26 406 42 960 100

-T_r___-_-------------------------- -Target----

Project Component. and Activiti.t Units By End IP PYr 1 By End of PYr 2 By End of Pyr 3 By End of ProjectUnits % Units X Units X

5. Civil Worksa. Conservation post. - now No. 26 2o 76 g0 175 70 260 100

b. Staff housing - now No. 6 100 6 100 6 100 6 100

C. Station buildings - renovation X of costs 17 33 S0 100

6. Vehicles A plant procured/rehabilitated

a. Now v. A p. No. 67 100 67 100 67 100 67 100

b. Rehabilitated v. p. No. 26 100 S0 100 s0 100 S0 100

7. Equipment A furniture procured X of cost. ea 8s 92 loo

S. Technical services _ 156 88 816 66 476 99 480 loo

9. Traininga. FPCD HQ staff - 20 5o 40 100 40 1oo 40 100

b. FPCO field staff (prof.& techn.) - 12 10 24 20 48 40 120 100

c. Conservation Assta. A headmn _ 130 17 260 34 385 51 760 100

10. Technical Assistance - 12 83 24 67 3S loo 36 100

11. Forest Ecosyste Inventory compIte 100

III. Industrial Plantations Development o

1. Plantinga. Ropy anting ha 3,300 17 6,600 33 9,900 S0 19,800 100

b. Now planting he 0 700 20 1,400 40 3,600 100

2. Plantation mintenancea. Coppleo reduction ha 1,650 17 a,300 33 4,950 S0 9,900 100

b. Pruning ha 20,000 18 40,500 37 58,750 54 106,850 100

c. Thinning ha 8,600 21 16,200 38 19,150 48 39,900 100

S. Forest roads devolopmenta. Rehabilitation Km 71 10 228 33 378 56 683 100

b. Repairs Km 90 9 276 28 486 47 996 loo

. Bridge - repairs No. 6 12 18 g3 3o 60 60 100

d HMaintenance K 250 8 750 23 1,300 41 3,200 100

4. Civil Worksa. Foret guard poste - now No. 26 S0 S0 loo S0 100 S0 100

b. Fire ters - new No. 16 2 as 6e so 100 50 100

c. Station buildings - renvation S of costa 17 33 s0 100

S. Vehicles A plant procured/ 100rehabilitated. NW v. p. No. 106 96 106 95 108 97 1ll loo

b. Rehabilitated v. A p. No. a3 64 56 100 X.. 100 66 100

6. Equlpmnt & furniture procured X of cost. 46 68 78 100 - %

7 Traininga. Prof. A techn. HQ A field staff - 46 15 149.5 48 254.5 82 308.5 100

b. Vocational staff m 92 83 182 66 232 82 282 100

8. Royalty collectiona. Royalties from current year X 76 76 75b. Royaltie from previous year cumul. X 90 90

-- -- --- - ------- Target_- ------ --Tr0Project Components and Activities Unit. By End of PYr 1 By End of PYr 2 By End of Pyr 3 By End of Project

Units X Unit. X Units X

IV. Strengthening of FD's Central Functions

1. Ne Hq off ice equIpment A furn. X of coats 100 100 100 1002. Vehicles - new No. 1S 100 15 100 16 loo 1S 1003. Other than HQ. equipment X of costs 76 76 100 1oo4. Technical Services _ 24 92 24 92 26 loo 26 100S. Training

a. Professional a technical _ 42 27 s8 37 8 5 1S5 100b. Vocational (fleet mgt.) - 145 as 280 67 415 100 416 1oo

6. Technical assistance: MST - 76 29 148 s5 220 84 262 100V. Forestry Educttion - KFC Londiani

1. Clvil Worksa. Staff houses - nMm No. 4 57 7 100 7 1oo 7 100b. St.ff hostel - now No. 1 100 1 100 1 100 1 100c. Dor-itory - renovation No. 1 100 1 100 1 100 1 100

2. Vehicles A plant procur*o/rehabilitated °°

a. Vehicle -nM No. 1 a3 2 67 3 100 a 100b. Vehicles - rehabilitated No. 5 100 5 100 5 100 5 100

S. Equipment A furniture procurc- X of costa 48 S8 69 1004. Training

a. MSC local * overses * 24 11 72 83 108 S0 216 100b. BSC local - 12 12 24 2S 48 S0 96 100c. Other training _ 12 22 24 44 36 67 54 100

S. Technical assisunce - 6 1oo 6 loo a 100 6 100VI. Forest Reserch

1. Civil worksa. Work space - now .2 1,277 73 1,757 loo 1,757 100 1,757 100b. Staff houe - now No. 77 78 99 100 99 100 99 100c. Rest hous - nw m2 1S0 25 6o0 loo 60 100 600 100d. Work space renovation .2 200 S0 400 100 400 100 400 100*. Staff house - renovation n2 1,830 74 2,480 loo 2,480 loo 2,480 1oo

2. Vehicles A plant procured/rehabilitateda. A p - ne" No. 39 63 89 68 62 loo 62 100b. v A p. - rehabilitated No. 15 100 1S 100 15 100 1s 100

3 Equipment A furniture procured X of costs 56 eS 89 loo 1 0 X4. Training :

a. PHD overs s 24 7 72 20 144 40 360 100 Lib. USC local ovrasos - 60 13 156 34 240 S3 456 100a. Diploma 0 12 20 24 40 8o 100d. Other training mm 30 11 76 27 122 44 278 100

5. Technical assistance m 18 34 35 68 47 89 53 100---------------------------------------------------------------------- __-----..-------------------------------------------------------------

- 83 -Annex 7

KENYA Table 2

FORESTRY DEVELOPMENT PROJECT

Summary Vehicle & Plant Acquisition and Rehabilitation Programme(Quantity in Numbers)

YR1 YR2 YR3 YR4 YR5 TOTAL

1. Farm and ExtensionForestryNew vehicles & plant 10 *6 3 2 21

2. Indigenous ForestManagement andConservation 11New vehicles & plant 84 84Rehabilitation of v.&p. 29 24 53

Subtotal 93 24 117

3. Industrial PlantationsDevelopment 1/New vehicles & plant 106 2 3 111Rehabilitation of v.& p. 35 20 2 3 166

Subtotal 141 20 2 3 166

4. Strengthening of the FDNew vehicles & plant 15 15

5. Forestry Education - KFCNew vehicles & plant 1 1 1 3Rehabilitation of v.&p. 5 5

Subtotal 6 1 1 8

1-5 Entire Forest DepartmentNew vehicles & plant 216 7 6 5 234Rehabilitation of v.&p. 69 44 113

Subtotal 285 51 6 5 347

6. Forestry Research - KEFRINew vehicles & plant 39 23 62Rehabilitation of v.&p. 15 15

Subtotal 54 23 77

Entire ProjectNew vehicles & plant 255 7 29 5 296Rehabilitation of v.&p. 84 44 128

All vehicles & plant 339 51 29 5 424

1/ Nunbhre Includo wvh;c I *and plant nd- -d for forest road d-v-lopmnt.

Remark: Number of v-hicleo Include notocycles (12 for Farm and Extension Forestry and 10 for IndigenousForest Mnagement and Conservation).

Annex 7Table 3

- 84 - Page 1 of 5

KENYA

FORESTRY DEVELOPMENT PROJECT

FOREST ROADS DEVELOPMENT PROGRAM

1. Background. A total of 7,200 km of access roads, feeder roads andplantation roads and tracks exist in FD's Forest Estate. 5,300 Km (74Z) ofthese are situated in the industrial plantations and 1,900 km (26Z) in theindigenous forests. The majority of these roads, 5,600 km (78X), are in astate of disrepair and inaccessible during most part of the year. A largeprogram of forest road rehabilitation and repair is needed, coupled withsubsequent routine maintenance, to render normal forest management operations,such as protection, silvicultural treatments, harvesting and (re-)planting,possible.

2. Proposal and Prioritization. The rehabilitation of all forest roads indisrepair would be excessive as a physical task and in cost terms during the6-year project. Following a set of selection priorities a program has beenproposed of rehabilitating/repairing 2,340 Km, i.e. 44' of the roads in needof improvement or 33% of the total road network. About 460 km (20Z) of theprogram would be carried out in the indigenous forests and 1,880 km (80Z) inthe plantations. As about 200 km of plantation roads would be improved by theforest industry, the FD would be responsible for 2,140 km of the program. Themiain priority criteria for selecting specific roads for inclusion in theprogram were.

Indigenous Forests - access to forest stations- roads which have become erosion hazards- protection of sensitive areas

Industrial Plantations - access to forest stations- access to areas scheduled for (re-)planting- roads with serious erosion problems- access to areas of continuing and inter.sive

silvicultural and haLvesting operations.

3. Basei on the above criteria, it has been possible to formulate a fairlyfirm investment proposal for roads development during the first three projectyears, and a more general proposal for the second 3-year period. Finalidentification and staking out of the bulk of the roads to berehabilitated/repaired will also be affected by new management and harvestingplans which will be prepared under the project. The latter will be based onthe forest inventory, initiated in November 1989, results from which arestarting to be available in late 1990/early 1991 (para 7).

4. All of the rehabilitated and repaired roads wcj1d be properlymaintained. There would be no construction of new forest roads.

Annex 7- 85 - Table 3

Page 2 of 5

5. Implementation. The program, which is presented in the table part ofthis annex, would be implemented through a combination of contracting andforce account. Emphasis on contracting would be in the case of heavier workswith high per-km costs, and where attractively large contract packages couldbe formed. Conversely, force account would be the predominant mode for lightworks, such as maintenance, and in scattered areas where contractors could notbe found or would not be interested in fragmented packages. Envisaged sharesof contracting vs force account are as follows, expressed as approximatepercentages of physical tasks:

- rehabilitation with gravel 802 c.120Z f.a- rehabilitation without graveling 702 c./30Z f.a- repairs 60Z c./40Z f.a- bridges and culverts 702 c./30Z f.a- maintenance 302 c./70X f.a

The distribution of costs would not be in the same proportions, i.e. theshare for force account works would decrease as the project would have thediscretion of directing most of the more difficult road sections to contracts.

6. While contracting would be the preferred and major mode for road works,FD wishes also to maintain a considerable force account capacity. FDcurrently has a substantial number of staff and equipment in its overextendedand poorly performing four road units and are not agreeable to laying andwriting these off; these units would be pooled into two functionally well-structured units and operationalized with moderate additional investment,utilizing the existing capacities to the best advantage. Given the properoperating conditions, funds, training and T.A. (para 9) the performance of thereconstituted units would be judged by the mid-term review, and appropriateaction taken. The project has the flexibility to accommodate this change,i.e. phase the road units out if found to be unsatisfactory.

7. Status of Roads Design. Design standards for the rehabilitation,repairs and maintenance of forest roads exist and have recently been updatedas part of the pre-engineering study, on which the formulation of the roaddevelopment program is based. The road works program would be finalized asmanagement plans become available (para.3). kinalization of the first fullproject year's road program (which is of modest size) including final detaileddesigns and prepared tender documents for the sections in question, would bepart of the project's AWP for 1991/92 which would be a condition of projecteffectiveness. The PPF includes funds for the preparation of this design andtender documentation.

8. Equipment Fleet Management. Repair and maintenance of the projectfleet, including the vehicles and plant of FD's reconstituted road units,would be mainly done by contracting. However, as facilities are onlyavailable in major cities and large towns and the private sector cannot extendthese services to remote forest areas on a routine basis, the repair andmaintenance would be split up into first-aid repairs and routine maintenanceby force account, and major repairs and normal overhauls by private workshops.In this way FD's equipment would be adequately serviced without delay, and

Annex 7Table 3

- 86 - Page 3 of 5

first-aid repairs could be carried out for continued operations and also tomake the equipment fit to travel to the nearest private workshops, whennecessary. It is estimated that no more than ZOZ of the total operating costsfor FD's fleet of vehicles and equipment would be required for light routinemaintenance and first-aid repairs by force account. Similarly, since vehiclesand equipment of popular makes are well represented in Kenya, it would not benecessary for FD to stock large quantities of spares. The long-term T.A.(para 9) would assist in the introduction of a sound inventory contrcl system.

9. Organizationi and Training. FD's Engineering Unit, which would have aRoads Section and a Fleet Management Section, would be built-up drawing on theexperience of an internationally recruited forest engineering specialist whowould stay with the project for 3 1/2 years. He would be part of the projectmanagement support team whose appointment would be a condition of projecteffectiveness. Only few additional key personnel need to be recruited, themajor task being (re-)training of existing staff and the development andinstituting of steering and supervision systems. All existing management andclerical staff as well as operators of the unit would undergo through (re-)training mainly during the early years of the project.

87 - Annex 7

KENYA TagJe 4eFORESTRY DEVELOPMENT PROJECT Page 4 of 5

Summary of Forest Roads Development Programme(Quantity In Kilometers)

Yrl Yr2 Yr3 Yr4 Yr5 YrB Total

Indigenous Forest AreasBy Contract:

Rehabilitation with 20 10 10 20 10 70gravel

Rehabliatlon without 30 20 20 20 20 110gravelIing

Repairs 30 20 20 30 30 20 150

Sub-total 80 50 50 70 60 20 330

Bridges - Repairs (No.)5 3 3 4 3 18

Maintenance 30 60 65 65 65 65 350

By Force Account:Rehabilitation with 7 14 11 11 11 11 65

gravelRehabilitation without 6 6 12

gravellingRepairs 5 15 15 20 55

Sub-total 18 29 32 31 11 11 132

Bridges - Repairs (No.)2 2 2 1 1 1 9Maintenance 50 100 100 110 100 150 610

Industrial PlantationsBy Contract:

Rehabilitation with 30 60 60 50 50 250gravel

Rehabilitation wIthout3O 60 60 50 50 250gravelIln6

Repairs 50 100 100 100 100 100 550

Sub-total 110 220 220 200 200 100 1,050Bridges - Repairs (No.)6 12 12 10 10 50

Maintenance 50 100 150 150 150 200 800

By Force Account:Rehabilitation with 3 4 4 4 4 4 23

gravelRehabilitation without 8 33 26 31 31 31 160

gravellingRepairs 40 85 90 90 90 50 445

Sub-total 51 122 120 125 125 85 628

Bridges - Reparis (No.) 1 4 4 3 3 3 18Malntenance 200 400 400 400 500 500 2.4U0

Annex 7-88 - Table 3

Page 5 of 5

Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Total

Total Road Progranmme Executed by FDBy Contract:

Rehabilltatio.u with 50 70 70 70 80 320gravel

Rehabilitation wlthout60 80 8s 70 70 360gravelling

Repairs 80 120 120 130 130 120 700

Sub-total 190 270 270 270 260 120 1,380

Bridges - Repairs (No.)11 15 15 14 13 68

Maintenance 80 160 215 215 215 265 1,150

By Force Account:Rehabilitation with 10 18 15 15 15 15 88

gravelRehabilitation withoutl4 33 32 31 31 31 172

gravellingRepairs 45 100 105 110 90 50 500

Sub-total 69 151 152 156 136 96 760

Bridges-Repairs (No.) 3 6 6 4 4 4 27Maintenance 250 500 500 510 600 650 3,010

By Contract & ForceAccount:

Rehabilitation with 60 88 85 85 75 15 408gravel

Rehabilltation without74 113 112 101 101 31 532graveliing

Repairs 125 220 225 240 220 170 1,200

Total Rehabilitationand Repairs 259 421 422 426 396 216 2,140

Bridges - Repairs (No.) 14 21 21 18 17 4 95

Maintenance - Total 330 660 715 725 815 915 4,160

By Forest Industry -

In Industrial Plant-ations only

Rehabiltatlon with 87gravel

Rehabilitation without 114gravelillng

Grand Total: Rehabilitation and Repairs of Forest Roads 2,341

- 89 -

Amex 7Table 4

KENYAFORESTRY DEVELOPMENT PROJECT

Imp lementatlion Taraets% Farmn Forestry Extensilon

Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Total

Phasing In of Divisions InPilot Districts (No.) 5 6 2 2 15

Nurseries OoeratIna/Established (No.)Division nurserIes 5 6 2 2 15Decentralizednurseries:

Location nurseries 10 30 20 10 70NGO/Group nurseries 10 30 35 35 40 40 195School nurseries 10 30 30 30 30 30 160Individual nurseries 90 230 280 300 300 300 1,500

Seedllngs Produced ('000)Divisional nurseries 160 370 570 770 770 770 3,410Decentralizednurseries:

Location nurseries 150 510 745 765 795 815 3,780NGO/Group nurseries 25 80 145 195 240 290 975School nurseries 15 55 100 130 160 190 650Individual nurseries 35 155 325 495 6 8 2Q510

Total 385 1,170 1,885 2,355 2,630 2,900 11,1325

Civil Works (No.)Divislonal off Ice

buildings 5 6 2 2 15Housing (DivFEOs) 5 6 2 2 15

-90- Annex 7

Table 5

KENYA

FORESTRY DEVELOPMENT PROJECT

Implementation Targets: Indigenous Forestry Management and Conservation

YR1 YR2 YR3 YR4 YR5 YR6 Total

Civil Works (No.)

Construction of Conservation 25 50 100 75 250posts

Planting (ha)Replanting of denuded areas 300 400 500 500 500 500 2,700Enrichment planting of under-stocked areas 300 400 500 500 500 500 2,700

Boundary DemarcationBeacons (No.) 1/ 1,900 1,900 2,500 600 600 600 8,100Survey points (No.) 200 200 600 600 600 600 2,800Boundary planting (km) 350 400 100 50 50 50 1,000

1, Number of beacons correspondes to kilometers demarcated at one beacon per km.

-91 - Anex 7

Table 6

KENYA

FORESTRY DEVELOPMNT PROJECT

Imilementation Targets: Industrial Plantations Develonment

Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Total

Planting Programme (ha)l/Replanting:

SawlogsPlne 500 500 600 500 500 500 3,000Cypress 500 500 500 500 500 500 3,000

PulpwodPine 650 650 650 650 650 650 8,900Cypress 650 650 650 650 650 650 3,900

Enclyptus poles 1.Q000 1Q000 .1000 LQ000 .Q000 Q000 6f000

SLbtotal 3.300 3,300 3,300 3,300 3,300 3,300 19,800

New Planting:Pulpwood

Pine 300 300 300 300 300 1,500Cypress 200 200 200 200 200 1,000

Encalyptus poles 2QQ 2Q 2QQ 2 200 1000

Subtotal 700 700 700 700 700 3,500

Total Planting 3,300 4,000 4,000 4,000 4,000 4,000 23,300

Plantation MaintenancePro=anim (ha) 1 /Coppice reductIon 1,650 1,650 1,650 1,650 1,650 1,650 9,900PrLnning 20,000 20,500 18,250 17,200 16,450 16,450 108,850PrLmning selection 14,100 13,300 11,650 10,000 9,150 9,150 67,350Marching 15,300 13,050 10,450 12,300 13,200 13,200 77,500Thiming 8,500 6,700 3,950 8,150 6,550 6,500 39,900Game moat maintenance 250 250 500 500 500 500 2,500

Civil Works (No.)Constr. of Forest

Guard posts 25 25 50Fire towers 2/ 16 17 17 50

1/ Includes assistance by the private sector

2/ Includes fire towers in indigenous forests

-92 - AnneX 7

Table 7

KENAFORESTRY DEVELOPWT PROJECT

Implementation Targets: Forestrv Educatlon - KFC Londlan

Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Total

Civil .orks (No.)Constructlon:

Senior staff houses 4 3 7Senior staff hostel 1 1

Renovatlon- dormitory 1 1

- 93 - AM= 7Table 8

KNtFORESTRY DEVELOPMENT PROJECT

lnmlementation Targets: Forest Research - KEFRI

Yr i Yr2 Yr3 Yr4 Yr5 Yr6 Total

Civil WorksWork space construction (m2):

Office 590 370 960Laboratory 340 80 420Workshop 122 30 152Greenhouse etc. 225 ;

Subtotal 1,277 480 1,757

Resthouse construction 150 450 600(m2)

Staf f house construction(No.):

Senior house 17 4 21Medlum house 20 2 22JLnlor house 40 16 56

Subtotal 77 22 99

Work space renovation 200 200 400(m2)

Staff houses renovation(m2) 1,830 650 2,480

Annex 7Table 9

94 ~ Page 1 of 5

KENYA

FORESTRY DEVELOPMENT PROJECT

SUPERVISION PLAN

1. Bank Supervision Input. The staff input indicated in the Table below(page 3 to 5 of this Annex) is in addition to regular supervision needsout of the office for the review progress reports, procurement actions,correspondance, donor coordination outside of supervision missions, etc.These activities are estimated for this project as follows:

Project year 1: 5 staff-weeksProject year 2: 4 staff-weeksProject year 3: 4 staff-weeksProject year 4: 5 staff-weeksProject year 5: 3 staff-weeksProject year 6: 3 staff-weeks

Due to the complex system of parallel co-financing with four different donoragencies, each supervising the project component funded by itself, donorcoordination activities are expected to require considerable time throughoutproject implementation. IDA supervision missions will normally be composedof the task manager and a procurement/disbursement expert. Both are postedat RMEA/Nairobi. Bank and consultant specialist staff will be used as neededand indicated in the Table below.

2. Borrower's Contribution to Supervision

(a) Annual Work Plans (AWP) and Budgets are to be submitted as follows:

(i) in the form as outlined in Annex 10;

(ii) (with the exception of the first Project year) by December 1of the preceding year for submission to !DA for its review;

(iii) by the Project Implementation Team (PIT), comprising the fiveHQ Division Chiefs of FD and the Principal of KFC plusrepresentation from KEFRI, under the direction of the ProjectManager (PM).

(b) Progress Reports are to be submitted as follows:

(i) in a format, acceptable to IDA, to be discussed in detail duringthe first supervision mission after project effectiveness;

(ii) semi-annually by March 31 and September 30 of each year;

(iii) by PIT under the direction of the PM.

(c) Project monitoring and coordination will be the responsibility ofthe PM with inputs from all chiefs of the individual projectcomponents. Review meetings will be held by the Project SteeringCommittee (PSC) normally in mid-March and mid-September of each yearand chaired by the P.S. of MENR.

Annex 7Table 9Page 2 of 5

(d) Certified project accounts (together with auditors' report andseparate auditots' opinion on the Special Account and SOEs for eachFiscal Year would be submitted to IDA by MENR/FD and MRST/KEFRInot later than by end-March of the following year.

MENR/FD and MRST/KEFRI will be responsible for coordinating arrangementsfor IDA supervision missions and for providing information required bymissions, Missions will also work closely with MOF. Missions willnormally be accompanied by the PM, and individual PIT members and FDor KEFRI specialists, as needed. Mission initiation briefings, andwrap-up meetings, will normally be chaired by the P.S. of MENR with theparticipation of a representative of MOF, the representative of the twoexecuting agencies, including the PM and the PIT members/HQ level.

Efforts will be made to conduct supervesion missions jointly with FEC,ODA, SDC and FINNIDA cofinancing the project.

Annex 7- 96 - Table 9

Page 3 of 5

BANK SUPERVISION INPUT INTO KEY ACTIVITIES

ApproximateDates Expected Skills Staff Input

(Month/Year) Activity Requirements (Staff-weeks)

FY91

1-2/91 Identification, contact and Forestry 5arrangements with organization Organization/providing Management Support Team Management

3-5/91 Project effectiveness and start-up Forest Roads 0.5Design/PY1

5-6/91 1st Supervision Mission Forestry 5(Project Launch Workshop) Procurement/

DisbursementInformation &Steering Systems

FY92

7-9/91 Review of Action Plans for:(a) Private Commercial Sector Forestry 3

Involvement.(b) Improvement of Labor Economics/Financial

Productivity Analysis(c) Elimination of Disincentives

to Private Tree Growing.

Review of:(d) Forest Policy Framework(e) Improved Method for Stumpage

Calculation.

10-11/91 2nd Supervision Mission and 1st Forestry 5Annual Project Progress Procurement/Review with GOK and Donors Disbursement(also inputs into preparation Forestry Trainingof AWP, and review of TrainingProgram).

4-5/92 3rd Supervision Mission (review Forestry/Environment 5of Information and Steering Procurement/Systems) Disbursement

Information SystemsAccounting

Annex 7- 97 - Table 9

Page 4 of 5

ApproximateDates Expected Skills Staff Input

(Month/Year) Activity Requirements (Staff-weeks)

FY93

10-11/92 4th Supervision Mission and 2nd Forestry 4Annual Project Progress Review Procurement/with GOK and Donors (also inputs Disbursementinto preparation of AWP)

1-3/93 Review of Draft Forestry Master Forestry/4Plan (FMP) (inc. list of project Environmentproposals) and of Draft Forest Forest PolicyPolicy

4-5/93 5th Supervision Mission Forestry 4Procurement/Disbursement

FY94

10-11/93 6th Supervision Mission and 3rd Forestry 4.5Annual Project Progress Review Procurement/(inc. review of projects prepared Disbursementby FMP; also inputs into Economicspreparation of AWP)

4_5/94 7th Supervision Mission and Mid- Forestry/ 5term Review (inc. possible Environmentrestructuring of project acc. Procument/to FMP parameters, Disbursementand adjustment of AWP) Economics/Financial

AnalysisOrganization/Management.

FY95

10-11/94 8th Supervision Mission and 4th Forestry 8Annual Project Progress Review Procurement/

Disbursements

4-5/95 9th Supervision Mission

Annex 7Table 9

- 98 - Page 5 of 5

ApproximateDates Expected Skills Staff Input

(Month/Year) Activity Requirements (Staff-weeks)

FY95

10-11/94 8th Supervision Mission and 4th Forestry 8Annual Project Progress Review Procument/

Disbursements

4-5/95 9th Supervision Mission

FY96

10-11/95 10th Supervision Mission and 5th Forestry 7Annual Project Progress Review Disbursements

4-5/96 11th Supervision Mission

FY97

10-11/96 12th Supervision Mission and 6th Forestry/Environment 7Annual Project Progress Review Economics/Financial

AnalysisDisbursements

4-5/97 13th Supervision Mission, inc.preparation of PCR

- 99 - Annex 8

KENYA

FORESTRY DEVELOPMENT PROJECT

Technical Services

1. The investment comPonents of the project include a number oftechnical service contracts, ranging from short-term assignments tolong-term tasks (a maximum of 3 years) assigned to a team ofspecialists. These technical services total almost 60 man-years and aresummarized in Appendix 1. Over 80 percent of this total would be neededfor the inventory of t;. indigenous forests and their ecosystems, aswell as the pilot schemes in the indigenous forest (which are basicallya project preparation process for follow-on investments). It isexpected that more than 502 of the technical services can be locallycontracted. About 952 of the technical services would be financed ongrant basis. Terms of reference for major technical services positionsare given in Appendix 2.

2. The Forestry Master Plan project component would, in addition,require about 25 man-years of various technical services consultancies,of which 40-45Z could be locally obtained.

- 100 - Annex aAppendix 1

KENYA

FOItESTRY DEVELOPMENT PROJECT

Summary of Technical Services Provisions(Exclusive of Forestry Master Plan Component)

Expertise Man-Months

Farm and Extension ForestryShort-term consultancies (local & expatr.) 84

34

Indiaenous Forest InventoryTechnical Coordination officer a/ 36Tropical Forest Ecology 36Forest inventory 36Mensuration/tropical plant ecology 36Socio-economics 36Wildlife conservation 12Long-term -onsultnacies - local 252Short-term consultancies - expatr. 63Short-term consultancies - local 24

531

Pilot SchemesTechnical Cooperation officers 36Short-term consultancies - expatr. 17Short term consultancies - local 16

69

Industrial PlantationsShort-term consultancies 2

2

Strenothenino of the FDOffice design & equipment 9Short-term consultancies 17

26

Forest ResearchShort-term consultancy 2

2

Total 714(59.5 man-years)

a/ Coordinates also Pilot Schemes

- 101 - Annex 8Appendix 2Page 1 of 6

KENYA

FORESTRY DEVELOPMENT PROJECT

TERMS OF REFERENCE OF MAJOR TECHNICAL SERfl'CES POSITIONS

A. Inventory and Management Plans for Indigenous Forests

1. TECHNICAL COORDINATOR

Location: Nairobi

Starting Date: November 1990.

Durations 3 years.

Duties: (a) Assist the FD Project Manager;

(b) Act as national coordinator ofspecialist and pilot project inputs;

*c) Work with FD, EEC, and Pilot Projectcoordinators, and draw up nationaland local training program for year2;

(d) Work and liaises with GOK personnel,collaborating institutions, anddonors;

{e) Advise and support the Pilot Projectcoordinators in preparation of phase2 pilot projects;

(f) Monitor the progress of pilotprojects, inventories and surveys;

(g) Be responsible fir coordinating thereconnaissance and final inventoryand survey reports, and forcoordinating with the Master Plan;and;

(h) Exercise financial control of thepilot projects, inventories andsurveys and be responsible foroperational support at the districtlevel of FD, KWS, NMK and otherpersonnel involved.

- 102 - Annex 8Appendix 2Page 2 of 6

Qualificationas The Coordinator should have a broad multi-disciplinary background with a degree inland-use planning/resourcemanagement/human-ecology and have hadprevious work experience in tropicalforests. He/she should have had extensiveprevious work experience in a developingcountry, in program management, and incoordinating the inputs of otherprofessionals.

2. TROPICAL FOREST ECOLOGIST

Location: Nairobi

Starting Date: January 1991

Duration: 3 years

Duties: (a) Act as team leader for the naturalresources inventory and survey team;

(b) Provide a methodological frameworkand overview for other team members;

(c) Supervise and coordinate the inputsof other team members;

(d) Work with the Pilot Projectcoordinators in preparing phase 2projects for appraisal; and

(e) Liaise and work with GOK personnel,collaborating institutions, andconsultants as required.

Qualifications: He/she should have a degree and post-graduate qualification in tropical forestecology or related discipline, have had atleast 5 years of previous overseas workexperience in tropical forests, must haveundertaken field studies of tropical floraor fauna, and have first-hand experienceof managing staff and coordinating theinputs of other professionals.

-103 - Annex 8

Appendix 2Page 3 of 6

3. FORESTRY INVENTORY SPECIALIST

Locations Nairobi.

Starting Dates January 1991.

Duration: 3 years.

Duties: (a) Act as team leader for the timberinventory and assessment team;

(b) Provide methodological framework andoverview for other team members;

(c) Supervlse and coordinate the inputsof other team members;

(d) Work with the Pilot Projectcoordinators in preparing phase 2projects for appraisal; and

(e) Liaise and work with GOK personnel,collaborating institutions, andconsultants as required.

qualificatlons: he/she should have a degree and post-graduate qualification inforestry or other relateddiscipline, have had at least5 years previous overseas workexperience in tropicalforests, must have undertakentimber inventory work, andhave first hand experience ofmanaging staff andcoordinating the inputs ofother professionals.

4. SOCIO-ZCONOHIST

Locations fairobi.

Starting Date: January 1991.

Durations 3 years

Duties: (a) Act as team leader for the socialscience team;

-104 - Annex 8

Appendix 2Page 4 of 6

(b) Provide methodological framework andoverview for other team members.

tc) Work as part of the nationalinventory team;

(d) Supervise and coordinate the inputsofother team members;

(e) Work with the Pilot Projectcoordinators in preparing phase 2projects for appraisal; and

(f) Liaise and work with GOK personnel,collaborating institutions, andconsultants as required.

Qualifications: He/she should have a degree and post-graduate qualification in natural resourceeconomics and social anthropo-loogy/sociology. Particular experience insocial forestry, land use, conservation,and rural development issues would be anadvantage. He/she should have 5 yearsoverseas work experience, and experienceof managing staff and coordinating theinputs of other professionals.

5. MENSURATION SPECIALIST

Locationt Nairobi.

Starting Datet January 1991.

Duration: 3 years.

Dutiess (a) Act as team leader for the appliedecology studies;

(b) Provide methodological framework andoverview for other team members;

(c) Supervise and coordinate the inputsof other team members;

(d) Work with the Pilot Projectcoordinators in preparing phase 2projects for appraisal; and

- 105 - Annex 8

Appendix 2Page 5 of 6

(e) Liaise and work with GOK personnel,collaborauing institutions, andconsultants as required.

Qualifications: He/she should have a degree and post-graduate qualification in tropical plantecology, mensuration forestry, or relateddiscipline. Experience in tropical forestdynamics and mensuration is essential.He/she should have 5 vears overseas workexperience, and experience of managingstaff and coordinating the inputs of otherprofessionals.

B. PILOT SCHEMES

1. PILOT PROJECT COORDINATOR

Locations Arabuko-Sokoke.

Starting Date: January 1991.

Duration: 12 months.

Duties: (a) Liaise with GOK personnel and attendmeetings of District DevelopmentCommittees and other organizationsand groups;

Cb) Identify specialist inputrequirements and provide support forspecialist teams as necessary;

(c) Design and prepare a communityparticipation program for theidentification and implementation ofproposed projects, with theassistance of the social scienceteam leader;

(d) Identify district and local trainingrequirements for phase 2;

le) Assist the natural resourcesinventory and survey teams, and thesocial science teams, with theirinputs into pilot projects forappraisal; and

- 106 - Annex 8

Appendix 2Page 6 of 6

(f) Provide operational support forimmediately identified programs andsite activities, based on the adviceof an discussions with FD, KWS, NMKand other personnel involved in thepilot projects.

Qualificationst The pilot project coordinator should havea degree in resource management, land-useplanning, socio-economics, human-ecologyor social forestry. Le/she should have atleast 3 years work experience overseas,preferably on a rural development orconservation project. He/she should havelinguistic abilities, and preferably aworking knowledge of Kiswahili.

2 * PILOT PROJECT COORDINATOR

Location: Kericho, Mau.

Starting Date: January 1991.

Duration: 12 months.

Duties: as for Arabuko-Sokoke.

Coordinate the Mau re-settlement andassistance study.

Monitor the on-going Mau Forest Projectionand Management Project.

Qualifications: as for Arabuko-Sokoke.

3. PILOT PROJECT COORDINATOR

Location: Kakamega.

Starting Dates January 1991..

Duration: 12 months.

Duties: as for Arabuko-Sokoke.

Qualifications: as for Arabuko-Sokoke.

- 107 - Annex 9Page 1 of 2

KENYA

FORESTRY DEVELOPMENT PROJECT

Training and Technical Assistance

1. Training. A major deficiency in FD's activities over the past decadeand in KEFRI's initial years of operation has been the absence ofcomprehensive in-service training programs, resulting in fundamental technicalweakness of their staff in discharging their normal duties in an increasinglydemanding environment. Wide-ranging arrangements for the development of staffskills to ensure project implementation, therefore, form an integral part ofall components. This amounts to 187 man-years of formal degree training(Diploma, B.Sc., M.Sc., Ph.D.) for 138 staff, and 327 man-years of non-degreein-service training for about 4,900 staff 1/ of FD and KEFRI in varioustechnical disciplines of forestry education during the 6-year period. Inaddition, training courses in farm forestry, equivalent to 41 man-years, wouldbe financed for MOA and other governme:t staff, and a total of 267 man-years,affecting an estimated 30,000 group leaders, for NGOs and local groups activein farm and community forestry in the three pilot districts.

2. Training inputs related to the investment components of the project aresummarized in Appendix 1 and details of the non-degree course work and numberof FD and KEFRI staff participating in such courses are in Appendix 2. Totaltraining would cost US$ 7.6 million 2/, corresponding to 12Z of total projectcost. Pivotal to the success of this training program would be the earlyappointment of the Training Coordinator; this specialist would also coordinatethe training under the investment components with training included in theForestry Master Plan component. Arrangements for training abroad could becontracted to a suitable, internationally operating enterprise specialized inthis field.

3. Technical Assistance. The financing of technical assistance is designedto fill specific skill gaps and to transfer skills. TA inputs would thus beof temporary nature and fall mainly into the first half of the projectimplementation period. A summary of TA provisions is given in Appendix 3, andthis followed by terms of reference for the most important TA positions inAppendix 4. Technical assistance under the investment project componentstotals 42 man-years; 20 man-years of this would comprise TA provided on agrant basis. Thus IDA financed TA expenditures would cover a total of 22

1/ cumulative number, i.e. one person may attend several courses

2/ base cost

- 108 - Annex 9Page 2 of 2

man-years, comprising 4.0X of project costs. Although substantial, this levelof TA, extended mainly in the form of top level management support by a teamof specialist advisers in key areas, is essential to the strengthening of FDmanagement until FD managers would be sufficiently experienced in effectivemanagement methods needed in large-scale operations, such as forestry underthe mandate of FD. Training of counterpart staff would form a significantpart of the terms of reference of the experts on the management support team.

KENYAFORESTRY DEVELOPMENT PROJECT

Summary of In-Service Education and Training Provisions(exclusive of Forestry Master Plan Component)

Local Overseas Total Total Dipl. BSc MSc PHD Total

-----man-months----- man-years -------------- numbers---------

1. Degree In-ServiceEducationFD Operational 960 96 1,056 88 80 6 86

FD - KFC Londiani 216 96 312 26 _ 2 10 12

Sub-Total: FD 1,176 192 1,368 114 80 2 16 98

KEFRI 156 720 876 73 5 _ 25 10 40

Total: Formal 1,332 912 2,244 187 85 2 41 10 138

Education

2. Non-Degree in-Service Training Total, Cumulative Number ofTrainees on Various Courses

FD Operational 3,522 99 3,621 302FD - KFC Londiani - 54 54 5

Sub-TotalsFD 3,522 153 3,657 307KEFRI 260 18 278 23Sub-TotalsFD+KEFRI 3,782 171 3,953 330 about 4,900

MOA 458 45 38b/ about 705

Other Govt. Agencies. 34 34 3b/ about 120

Sub-Total:MOA+Oth.G.A 492 492 41 about 825

NGOs, Local Leaders 3,200 3,200 267b/ about 30,000Sub-Total:Others 3,692 00 3,692 308 about 30,825

than FD and KEPRI X x

Total Non-Degree 7,474 171 7,645 638 about 35,725

Training

a/ about 502 of this is training for farm forestry extensionb/ 100Z of this is training for farm forestry extension

KIENYA

FORERY DEVELfPUT PROJECT

Breakdown of n-Service Tratnine Proposals for FD and K1I

AppioxCOU= T)?E Projot Mbn/iNombe Cou.. To" I

Compoent 1 1R2 TM 134 TR ll TJAL L_egt Tra iees

AEIL-PWSSUL TEOSRA

Umsoe.est & Spwrvleee (Sealor) FlI/SJF 4 2 2 is 2 26Uesage.mat&Sa PoVIe).s (Middle) EovSFD 4 4 4 4 4 4 24 2 48

Project Mmsegemest UX/IP/WD s0 1 2 2 1 38 2 72

Fvrest Emmagemast Plas MRSflF/IP/ED 4 45 30 120 6 OD

Fore" em agemt IP/SP 10 10 10 s0 4 30

Pleaati. leat I/M 210 20 40 4 40

IsW.st.CP aed llolad PieFl-do IP/IF/ESJ/B 2 23 9 a 0 37

Ratesoles- (OVervIew) SMI/EXv 7 7 7 21 1 *4

E el.o - EXrtt ) E 106 350 30 35 uo 35 16 12 ft6

Ist tl.a Teess ln EB 22 22 22 as 2 132

Oraduat. I_u. SF 10 10 l 10 10 10 so 2 120

Viaer_opptoo skill Sl/IP/hESmEX/IF a 24 28 28 me a 11?

Subtotal 224 500 506 446 64 2401 Avg. 6.9 1404

SPECV1IST CURES.

Forety Down t 3 RE6 6 as 2 35

Biometric NW Setiolce I/F 1s a 6 6 6 6 4a 2 so

Fire P otesti.. I 15 1s 30 2 0o

Radlo C iletiee EX 1 1 2 2

See mesemes eV, 2 2 4 2stem _9_sMA nAMII 4 4 4 4

Vifto Ftl-s P &-blem 1 1 4 1

Dee Top Pblibls EX 1 1 2 2

Sprvwlle et o See Cetles t 6 10 2 20

Sul 2s 41 31 6 6 6 11 Avg. 2.1 23

VOCATIIUL CURS

meeaeliemplast oporatle.. SO/Ip 14 135 1i 415 4 415

Faresterds iF SD s0 50o so 200 2 400

CaeeIvatlo Ameistet IF 125 1n 1 125 12i 70 4 750 io

Headman IP/F a so 6 1 200 x

Subtotal 55 30 310 17 125 1M1 1480 Avg. 1.0 32

TEM TOTALS Total 04 681 3S0 627 490 496 4602

rrojez W Omporens:Etension 'EX'; Indig ans Forest Managment (IF); Industrial Plantations (IP); Strengthening of Foret Dpartment (SFD);Rerch (ES5: and RFS Loani (ED).

- 111 -Annex 9

Appendix 3

KENYAFORESTRY DEVELOPMENT PROJECT

Summary of Technical Assistance Provisions(Exclusive of Forestry Master Plan Component

Expertise Man-months

Farm and Extension ForestryExtension forestry 72Monitoring and evaluation 36Extension training 36

144

Indigenous Forest ManagementConservation training 36

36

Industrial PlantationsShort-term consultancy 3

3

Strengthening of the FD

Management Support TeamProject management, monitoring & evaluation 48Financial control 42Training co-ordination 42Industrial plantaions 42Procurement 42Forst engineering 46

262

Forest ResearchTree physiology 36Short-term consultancies 17

53

EducationCurriculum design 6

6

Total 504(42 man-years)

- 112 -

Annex 9Appendix 4Page 1 of 14

KENYA

FORESTRY DEVELOPMENT PROJECT

TERMS OF REFERENCE OF MAJOR TECHNICAL ASSISTANCE POSrrMONS

A. Strenmhenin2 of the Forest Departmnent: Management Sugoort Team (MST)

1. PROJECT MANAGEMENT SPECIALIST (PMS)

Location: Nairobi

Starting: At project start-upDate

Duration: 48 months

Duties: The specialist would assist the national Project ImplementationTeam (PIT) through the Project Manager (PM - a Deputy Directorof Forests) on matters concerned with overall project co-ordination and implementation according to plan, with particularemphasis on the project's "Institutional Strengthening of theForst Department" component. Under the general direction i thePM and in co-operation with the other specialists engaged toprovide management support, whose group leader he would be, thePMS would:

(a) Assist the PM to prepare, plan and make adequatearrangements for the rapid mobilization of project resourcesafter Credit Effectiveness;

(b) Assist the PM with the development and gradual installationand operationalization of modern management and steeringsystems, covering planning, reporting, monitoring andevaluation, and building on relevant ministerial anddepartmental Standing and Technical Orders and Notesappropriate to project execution;

(c) Assist with the design and timely preparation of Annual WorkPlans, budgets, progress reports, and other periodic reportsconnected with the project at Headquarters, Province andDistrict levels in a manner ensuring compatibility andconsistency among these documentation and informationsystems, as well as with the management and steering systemsmentioned in item (b) above;

(d) Improve the quality and regularity of information flowbetween Districts, Provinces and Headquarters, and also ofthe analysis and storage of and feed-back from suchinformation;

(e) Strengthen links between individual project components, andbetween the project and other departments, organisations anddonors involved with project-related implementation; liaiseparticularly with the systems planning activitiesunder the Forestry Master Plan component to ensure zfficientcoordination of efforts and avoid duplications

- 113 -

Annex 9Appendix 4Page 2 of 14

(f) Run workshops for professional staff from Headquarters andother levels at which (i) project issues, constraints andsolutions would be identified, and clear objectives andtarget dates agreed upon for project activities; and (ii)modern management etc. systems to be adopted would beintroducedl

(g) Ensure consultants provided under component donor fundedassistance are used effectively;

(h) Assist the PM with meeting the agreed, time-bound actionprogrammes and other agreed covenants or conditions underthe Credit Agreement, and assist in the preparation andconduct of the mid-term review; and

(i) At all times remain alert to environmental considerationsand ensure that the PIT is made aware of any actions whichcould have environmentally deleterious effects.

Qualifications: The specialist would have a university degree in forestry(covering forest economics/statistics), with at least 15years experience of forestry in the tropics and/or countrieswith fast growing conditions, including substantialexperience from developing countries. His experience shouldenco:-ipass both production and conservation aspects offorestry. His previous service would include at least 5years of successful performance in a senior forestryexecutive administrative position. The ability to relate toand communicate orally and in writing, in English, withgovernmental staff and procedures would be essential.Previous experience of forestry projects financed by theWorld Bank or other international organizations would be anadvantage. The specialist would be required to beproficient in computer applications to management etc.systems.

2. FINANCIAL CONTROL SPECIALIST (FCSI

Location: Nairobi

StartingDates At project start-up

Duration: 42 months

Duties: The specialist would assist the Project Manager (PM) and FD'sChief Accountant in matters related to financial operations ofthe project through internationally financed (and others ifrequired) inputs, as well as to financial control. Within theManagement Support Team MST he would be answerable to the PMS.Under the general direction of the PM and PMS and in co-operation with the other MST specialists and their counterparts,the FCs would:

(a) Assist FD's Chief Accountant in managing the financialoperations of the project, including the design andimplementation of budgeting and accounting systems

- 114 -

Annex 9Appendix 4Page 3 of 14

compatible with those operated by the Government of Kenya,the World Bank, EEC and other interested donors;

(b) Develop and operationalize a financial planning systemcompatible with the Annual Work Plan, Progress Report andProcurement Systems;

(c) Liaising with the Training Co-ordinator, provide trainingfor Forest Department Headquarters accounting staff inmeeting the financial planning, reporting and auditingrequirements of relevant national authorities and fundingagencies, develop and conduct in-service training programmesfor staff in out-station accounting units;

(d) Ensure timely preparation of monthly and other periodicaccounts, and of the detailed Annual Budget;

(e) Assist the Forest Department in all financial mattersconnected with the project, including management of SpecialAccounts;

(f) Ensure the funding is available, and that the flow of fundsis smooth for project operation;

(g) Ensure proper recording and maintenance of all storesinventories and fixed assets;

(h) Prepare quarterly, bi-annual and annual written reports onprogress of the financial aspects of the project;

(i) Continuously maintain an up-to-date forward budget coveringthe entire project period; and

(j) During part of his time, assist KEFRI in matters related tofinancial operation and financial control of the forestresearch project component.

Qualifications: The specialist must have professional qualifications inaccounting and/or an equivalent university degree, and atleast five years proven experience as a Chief Accountant orController, including substantial experience from developingcountries. Previous experience of financial operations andcontrol from projects financed by the World Bank or otherinternational organisations, and from foreotry projectswould be an advantage. The specialist would be required tobe proficient in computer applications to budgeting,accounting, financial reporting and the monitoring of flowof funds.

3. TRAINING CO-ORDINATOR (TCI

7. ..cation: Nairobi

S,arting: At project start-upDate:

Duration: 42 months

- 115 -

Ann2x 9Appendix 4Page 4 of 14

ess The specialist would assist the Project Manager (PM) and theHead of the FD Training Branch on all aspects .f in-servicetraining under the project for FD staff of all levels. Theproject would provide, over 6 years, for non-degree trainingprogramme involving over 4,500 FD and KEFRI trainees andtotalling some 4,000 man-months (330 man-years) of traineecourse work. Almost 60% of this programme would be carried outin the first three years of the project. In addition, theproject would provide for degree in-service education, and fornon-degree training of staff from other agencies and NGO's.Within MST the TC would be answerable to the PMS. Under thegeneral direction of the PM and the PMS and in cooperation withthe other MST specialists and their counterparts, the TC woulds

(a) Develop a comprehensive in-service training plan for thesix-year project period with, for each year in advance, adetailed programme of courses to be mounted;

(b) In the light of results from the labout profile study(conducted under the PPF), and the preliminary results fromthe forestry manpower survey and development studies(conducted under the Forestry Master Plan component), reviewand refine the outline proposals for in-service training;

(c) Arrange for course staffing and implementation, wherenecessary in collaboration with other appropriateinstitutions and individuals including universities andcolleges, private training organisations, KEFRI, SocialForestry Training Centres, FITC and KFC Londiani;

(d) Maintain close liaison with the training specialistsattached to the Extension and Indigenous Forest Managementcomponents of the project; assist and advise these officersin running the intensive programmes proposed for thesedisciplines. Co-ordinate with training activities under theForestry Master Plan component;

(e) Liaise with the various short-term consultants employed bythe project for technical assistance inputs and ensure,where appropriate, their contributions to training courses,workshops and seminars in their particular specialisms;

(f) Give guidance to course leaders and instructors in coursedesign, preparation of teaching materials, and instructionaltechniques, and examiration and grading principles;

(g) Assist FD Division Chiefs, the Head of the Training Branchand other FD managers in the selection of candidates for in-service training;

(h) Assist FD and KEFRI in arrangements for overseas trainingunder the Project!

(i) Co-ordinate the preparation of a comprehensive ForestDepartment Training Manual detailing available courses, aimsand objectives, outline syllabus and expected learningoutcomes, target participants, length, location and probablecost; and

- 116 -

Annex 9Appendix 4Page 5 of 14

(j) Devise a computer-based system for the planning, monitoringand evaluation of the in-service training process, and givetimely inputs for the project-wide system of planning,budgeting, monitoring and reporting.

Qualifications: The specialist would have a university degree in forestrywith a minimum of 10 years experience in field forestry. Hewould have proven competence and at least 5 years experiencein the planning and implementation of in-service trainingcourses within a large forestry organisation. Someexperience of East African conditions would be desirable.The ability to speak and write English clearly is essentialas well as good communication skills. Thorough familiaritywith instructional techniques, including the use of modernpresentation and training/learning equipment, would be arequirement.

4. INDUSTRIAL PLANTATIONS MANAGEMENT SPECIALIST (IPS

Location: Nairobi, with frequent field visits

Starting: At project start-upDate:

Duration: 42 months

Duties: The specialist would assist and advise the Project Manager (PM)and the Chief of the FD Industrial Forestry Division on mattersconcerned with implementation of the Industrial PlantationsDevelopment component. Within MST he would be answerable to thePMS. Under the general direction of tne PM and the PMS and inco-operation with the other MST specialists and theircounterparts the IPS would:

(a) Assist with the execution of the ongoing forest plantationinventory and the preparation of an overall managementframework for the plantations, based on the inventoryresults and the principle on sustainable timber harvesting;

(b) Assist with the preparation/revision and implementation offorest plantation management working plans, including alloperations from the nursery, through establishment andmaintenance, to intermediate and final harvesting;

(c) Revise, in relation to present day knowledge and therequired end products, techniques appropriate to seedlingproduction, plantation establishment, subsequent treatmentsincluding thinning and pruning regimes, and finalharvesting;

(d) Ensure that commercial timber harvesting operations(intermediate and final harvesting) are spatially plannedand sequenced so as to facilitate both efficientimplementation of forest road works and continuity in theallocation of harvestable blocks to commercial operators;

(e) Assist with the installation of modern systems to record, bytimber assortments and on a continuous basis, actual

- 117 -

Annex 9Appendlx 4Page 6 of 14

removals (volume and value) of timber, and to project, on acomparable basis, future timber harvests;

(f) Ensure that proper systems of plantation assessment andreporting are introduced and continuously complied with atall levels from the Compartment level upwards;

(g) Assist with the installation of a modern system of costplanning and control in forest plantation management;

(h) Assist with the formulation of appropriate measures wherebyfees and royalties may be correctly assessed and dulycollected;

(i) Co-operate with the Training Coordinator and otherspecialist advisers in the design and conduct of in-servicetraining for all levels of personnel associated withindustrial plantations in both public and private sectors;

(j) Assist with the design and implementation of measures torationalize the conduct of plantation operations so as toincrease the efficiency of the FD as a whole and theproductivity of its labour force in particular; and

(k) Ensure that all forest operations recommended areenvironmentally sound.

Qualifications: The specialist would have a degree in forestry and a minimumof 12 years experience, of which at least 5 years in asenior executive position, in coniferous (and preferablyalso eucalypt) plantation management in the tropics and/orcountries with fast-growing plantation forests, includingsubstantial experience from developing countries. Anability to relate to and communicate (in English) withexisting governmental staff and procedures would beessential. The specialist would be required to be versed incomputer applications to operations and cost scheduling andrecording, as well as systems analysis. He should have astrong commercial orientation as a forest resource manager.

5. PROCUREMENT SPECIALIST (PS)

Location: Nairobi

Starting: At project start-upDate:

Duration: 42 months

Duties: The specialist would assist and advise the Project Manager (PM)on matters related to procurement. Within the MST he would beanswerable to the PMS. Under the general direction of the PMand the PMS and in co-operation with the other MTS specialistsand their counterparts, the PS would:

(a) Assist MENR's/FD's Supplies Officers in all projectprocurement matters including schedule of requirements andacquisition/execution programme, recruitment of consultancy

- 118 -

Annex 9Appendix 4Page 7 of 14

services, preparation of specifications and TORs,identification of potential suppliers and consultants,preparation of bid documents and publication of invitationsto bid, preparing bid evaluation reports, preparation ofcontract documents, contract administration, monitoring,inspection and expediting of delivery of goods etc.;

(b) Coordinate procurement under parallel financing followingdifferent procurement regulations;

(c) Set up a proper warehouse management and inventory system;

(d) Design and develop procedures and systems for controllingand recording procurement action;

(e) Prepare monthly and quarterly statements of procurementaccounts;

(f) Prepare quarterly reports on procurement achievements;

(g) Liaising with the Training Co-ordinator, organise andconduct in-service training sessions on procurement andrelated matters; and

(h) During part of his time, assist KEFRI in matters related toprocurement for the forest research project component.

6. FOREST ENGINEERING SPECIALIST (FES)

Location: Nairobil with frequent field visits

Starting: At project start-upDate:

Duration: 42 months

Duties: The Forest Engineering Specialist would assist the ProjectManager in the establishment of an engineering unit within theframework of the Forest Department and assist the ProjectImplementation Team with all aspects of forest engineering and,in particular, upgrading of skills of the staff so as to preparethem for the implementation of the roads development programmeand the management of the equipment fleet and transport needsunder the project. Within the MST he would be answerable to thePMS.

Specifically the FES would be required to:

(a) Work in close collaboration with the Chief of the IndustrialForestry Division and the Industrial Plantation Specialist,and advise the Project Manager and the Chief of theengineering unit on matters of selection, procurement,operation and maintenance of vehicles and plant;

(b) Assist MENR's/FD's Supplies Officers and the ProcurementSpecialist in the preparation of bidding documents andevaluation of tenders for vehicles and plant, includingspare parts;

- 119 -

Annex 9Appendix 4Page 8 of 14

(c) Formulate a sound standardisation policy for all vehiclesand plant of FD;

(d) Assist in establishing and organising FD's mechanicalworkshops to prepare them for the fleet maintenance needs ofthe project, and help them cater for these needs;

(e) Set up maintenance and repair records, and prepare andoperate a sound job costing system;

(f) Introduce appropriate maintenance systems and procedures forall the project vehicles and plants including repair andpreventive maintenance schedules, recommend procedures forthe use of the private sector for major repairs andoverhauls, and supervise execution of such repair andservice contracts;

(g) Establish a spare parts and other stores procurement anddistribution system with adequate inventory control;

(h) Carry out detailed studies with regard to the use ofcontractors vs force account for the rehabilitation andmaintenance of forest roads;

(i) Assist in the reorganisation of those FD roads unitsselected for rehabilitation and set up strategies for theimplementation of the roads development programme of theproject;

(j) Assist in the detailed planning and implementation of theproject's road development programme, including thecontracting of road works to private contractors and thesupervision of such contracts, as well as the execution ofroad works by FD's road units;

(k) Ensure that all road construction, rehabilitation andmaintenance works are environmentally sound;

(1) Establish an improved management information system for boththe roads units as well as the vehicles operation andmaintenance;

(m) Liaising with the Training Co-ordinator, organise and/orconduct local training in roads construction andmaintenance, as well as vehicle operation and maintenancefor all project operational staff; and assist in planningand training of professional staff of the engineering unitin foreign countries; and

(n) During part of his time, advise KEFRI in establishing anefficient vehicle fleet management system.

cations: The specialist should have an appropriate formalqualification, probably of university level in mechanicalengineering or corresponding discipline. He should haveconsiderable, proven experience internationally in forestengineering (forest roads, vehicles and plant). Experiencefrom the tropics, preferably Africa, would be a merit. Hewould be required to be ve;sed in computer applications totask programming, record keeping, inventory keeping, cost

- 120 -

Annex 9Appendix 4Page 9 of 14

control system, information system for roads, vehicles andplant, etc.

FARM AND EXTENSION FORESTRY

1. FORESTRY EXTENSION SPECIALIST (FEXS)

Location: Nairobi, with frequent field visits

Starting Date: Upon effectiveness of the Farm Forestry Extension projectcomponent

Duration: 6 years (two periods of 3 years)

Responsible: The Chief, FESDto:

Dutiest To advise and assist the Chief FESD in all aspects of farmforestry and rural forestry extension. This will includebut may not be restricted to:

(a) Establishment of overall objectives for FESD, the HQbranches of FESD and the FD extension services in thedistricts;

(b) Based on these objectives, up-date activity/job descriptionsfor the branches in FESD and their personnel and forDistrict Forest Officers-Extension and Divisional ForestExtension Officers and assist with the planning ofactivities;

(c) Outline approaches to forest extension suited to the pilotdistricts and assist in drawing up work programs for theextension field staff;

(d) Assist in arranging coordination with organizations involvedin social forestry and agroforestry research and developmentwithin Kenya and abroad, and advise FESD on appropriatemodels to be used in different situations in Kenya;

(e) Assist the Monitoring and Evaluation Expert in thedevelopment of an M & E System including appropriateroutines for reporting activities in the districts; and

(f) Co-operate with PIT and the MST.

Qualifications: The specialist would have a degree in agriculture orforestry, preferably with training in extension. Hisexperience should comprise ten years of work in agricultureor rural forestry extension in developing countries with atleast three years in Africa. He should be fluent in spokenand written English. Knowledge in Kiswahili would bedesirable.

- 121 -

Annex 2Appendix 4Page 10 of 14

2. MONITORING & EVALUATION SPECIALIST/FARM FORESTPY EXTENSION (MEXI

Locations Nairobi, with frequent travel to all parts of Kenya.StartLng Upon effectiveness of the Farm Forestry Extension project

component.Datet

Durations 3 years

Responsible The Chief - Forest Extension Services Division (FESD)tot

Duties: The specialist will introduce a monitoring and evaluationsystem for this project component aimed at evaluatings (a)the effectiveness of alternative approaches to forestryextension in encouraging the adoption of treeplanting/management packages and (b) the overall projectimpact interms of increased tree planting, tree conservationand woody biomass production. The spcialist will alsodesign baseline and impact evaluation surveys to be carriedout in the pilot districts. Detailed activities includes

(a) Desia and Installation of a Farm Forestry ExtensionMonitoring System

(i) based on the overall objectives of the projectcomponentf identify major targets for projectimplementation and appropriate indicators to measureprogress against these gargetsl

(ii) develop routines for the collation, summarization andanalysis of information regarding implementation offorestry extension from staff in the differentbranches of FESD, in the districts and divisions andalso from other agencies involved in forestryextension;

(iii) develop routines for retrieval of information informats useful for making management decisions andevaluating project performance;

(iv) advise on the preparation of reports making use ofthe data and analyses;

(v) design this special M&E system such as to achievemaximum compatibility with th eproject's overall M&Esystem;

(vi) assist in the identification of problems andconstraints encountered in project implementation,identified through the monitoring , and in thedevelopment of solutions to these problems; and

(vii) liaising with the Training Coordinator, train staffat all levels in the use of the system.

(b) Baseline Survey

Mi) design surveys to be carried out by FESD staff in thepilot districts to be used in establishment of

- 122 -

Annex 9Appendix 4Page 11 of 14

baseline conditions and in the design of approachesto project implementation;

(ii) train staff of the Monitoring and Evaluation Branchof FESD in design and implementation of baselinesurveys and analysis of surveys data; and

(iii) assist the Monitoring and Evaluation Branch insupervising implementation of the surveys andcollation and analysis of the data.

(c) Evaluation of Proiect Impact

(i) design surveys to be implemented in the final year ofthe project to assess the impact of the project inachieving its objectives and to evaluate theeffectiveness of alternative approaches to extension;

(ii) train M&E staff in carrying out the survyes iandcollating and analysing the data;

(iii) examine the stated project rationale in the light ofdevelopments during implementation and evaluate thead3luacy of the project design to overcome theidentified constaints;

(iv) compare the actual attainments with targets set andidentify reasons for shortfalls or over-achievements;

(v) assess the effciciency of project implementationprocedures and management performance;

(vi) determine the economic efficiency of th eproject; and

(vii) present lessons learnt and recommendations for futureimplementation arising out of them.

Timing: Systems to be designed, installed nad operationalized withintwo years from start; adequacy of the system to be tested byfield survey 6 months prior to the mid-term review (projectyear 3); evaluation survey 6 months into project year 6.

Qualifications: The HEX would have degree in one of the social sciences withbackgroun or training in agriculture, forestry or relateddisciplines. H eshould have five years experience in M&E ofrural community forestry or agrculture extension projects,with at least 3 years in Africa. He would be required to beproficient in computer applications to M&E. He should befluent in written and spoken English; knowledge of Kiswahiliwould be desirable

3. EXTENSION TRAINING SPECIALIST (EXTS)

Location: Nairobi

Starting Upon effectiveness of the Farm Forestry Fxtension ProjectDate: component.

- 123 -

Annex 9Appendix 4Page 12 of 14

n: 3 years

ible Chief - Forest Extension Services Division (FESD)

To advise and assist the Head - Extension and TrainingBranch in the development of courses and carrying outtraining of FESD staff at all levels, staff of otheragencies and various target groups; in doing so, liaise withth eoverall project's Training Coordinator. Tasks willinclude:

(a) Determine the need for training of FESD staff at all levelsand outline a broad training strategy, taking into accountthe specialist techncial and management needs at FESD HQ andneeds for strengthening extension and techncial skillswithin the field organization;

(b) Identify training facilities and resources available withinthe Forest Department, other government agencies (inlcudingMinistry of Agriculture and Kenya Forest ResearchInstitute), NGOs and the private sector;

(c) Assist in preparation of training programs for FESD staffincluding recommendations on types, locations and durationsof both domestic and overseas courses;

(d) Determine the need ofr training in farm forestry and relatedsubjects for staff at different levels of the Ministry ofAgriculture Extension, schools, other government agenciesand NGOs and the priage sector;

(e) Develop courses or seminars for district and localgovernment officials aimed at explaining the goals andrequirements of farm forestry extension and engendering thenecessary support;

(f) Assist in the detailed preparation of initial trainingcourses of different types;

(g) With the assistance of the Extension Monitoring Branch,prepare routines for evaluating the impact of the differentaspects of the training program; and

(h) Devise a computer-based system for the planning, monitoringand evluation of the above training process, includingbudget inputs.

cationss Nairobi, with frequent field visits

kg Upon effectiveness of the Indigenous Forest Management and

Conservation project components

on: 3 years

ible The Chief - Forest Protection and Conservation Division

- 124 -

Annex 9Appendix 4Page 13 of 14

Duties: Liaising with the overall project's Training Coordinator andthe Forestry Extension Training Specialist,

(a) Develop an in-service training curriculum coveringindigenous forest management and conservation/socialforestry, suitable for sub-professional staff, on theprinciples of forest conservation and rural extensiontechniques and the basic methods of information gatheringand monitoring of forest processes and activities;

(b) Conduct training courses for Conservation Assistants; and

(c) Assist with on-the-job training of local personnel

Qualifications: The specialist should have a degree in social forestry orother rrelevant discipline and have had first hand teachingexperience among sub-professionals. H eshould have hadprevious working experience in tropical forestry, includingforest conservation and manaqgement, preferably includingEast Africa experience. He should be fluent in spoken andwritten English. A working knowledge in Kiswahili would bea distinct advantage.

D. Forest Research

TREE PHYSIOLOGIST (TPI

Location: KEFRI National Research Centre, Huguga, with considerablefield work

Starting Upon effectiveness of the Forest Research project componentDate:

Duration: 3 years

Responsible The Director, KEFRIto:

Duties: (a) Develop the capacity of KEFRI to undertake fundamental andsustainable reserach into the physiology of both indigenousand exotic tree species;

(b) Advise and assist other sections where physiological aspectshave a bearing on the planning and execution of theirresearch;

(c) In association with th eEcology section, develop andparticipate in a program of investigation into theautecology of the major speciies int the indigenous forestand woodland of the highlands and ASAL zones; and

(d) In association with other research staff, and staff from theIndigenous Forest Management and Conservation component ofthe project, develop recommendations for the regeneration ofthese forests.

Qualifications: Degree in forestry or related subject, and PhD in treephysiology.

- 125 -

Annex 9Appendix 4Page 14 of 14

Minimum of five years experience in tree physiology researchrelated to silvicultural applications, including experienc-with tropical forestry. Fluent in spoken and writtenEnglish.

E. Forestry Education

FORESTRY EDUCATIONIST: CURRICULUM DESIGN (FECD)

Location: Kenya Forestry College, Londiani, with occasionalfamiliarization visits to forest operations.

Durations Six months - three months upon effectiveness of the ForestryEducation project component and a further three months aftera suitable interval for staff preparatory work (withpossible extension).

Responsible The Principal, Kenya Forestry Collegeto:

Dutiest To advise and assist the Principla and staff of KFC in thepreparation of new curricula for the Diploma and Certificatecourses. In particular:

(a) Appraise the strengths and weaknesses of the existingcurricula in relation to the changing needs of the forestrysubsector and in the light of the differing admissionstandards following the introductionof the 8:4:4 educationalsystem in Kenya;

(b) In close collaboration wit the Principla and teahing staff(including GTZ assistance), design curricula for a new two-year Certificate course, and new one-year Diploma courseswith options in both beneral and extension forestry;

(c) For each course a published curriculum is required, with afully time-budgeted syllabus including expected learningoutsocomes by individual units, teaching approaches andmethods, and assessment procedures. Detailed teachingshcemes of work (and instructionmanuals where appropriate)should be prepared as separate documents;

(d) the process of developing the new curricula should beclosely monitoried so that all documents are complete by theend of the consultancy; and

(e) Advise the Principal on staff development and the selectionof appropriate training courses for 1^FC lecturers andinstructors in relation to the new curricula.

Qualifications: Degree in forestry and a minimum of 15 years experience infield forestry including five years experience of teaching,preferably at technical level. A minimum of three yearsexperience in forestry educational mangement includingcurriculum developmebnt work, and well established contactswith forestry training colleges and universities. Knowledgeof East African conditions is also desirable. Fluent inspoken and written English.

- 126 -

Annex 10

Summary Contents of the Annual Work Plan (AWP)

1. Implementation of all project components would be carried out on thebasis of annual work plans and budgets prepared by component managers bymid-October each year. These documents would be consolidated by theProject Manager into a projectwide draft AWP and budget by mid-November for(i) submission to the Project Steering Committee and, after possibleamendments, (ii) submission not later than by December 1 to IDA and MOF.

2. The AWP and budget would include:

(i) an evaluation of the previous year's performance and adiscussion on how the new program builds on that experience;

(ii) a statement of specific objectives (quantified targets) tobe pursued during the year in question and a description, bycomponents, of the activities to be undertaken in order toachieve those objectives. This should be cross-referencedto the relevant sectors of the Development Credit Agreementand Grant Agreements as well as the Staff Appraisal Report.Significant deviations in the AWP from provisions in theDCA/GAs and the SAR should be flagged with supportingjustification;

(iii) detailed investment and recurrent (operating) budgets bycomponent, showing the human, financial, and physicalresources required to carry out the proposed annual program;

(iv) training and staffing plans;

(v) a financing plan, which indicates the source of funds foritems in the investment and operating budgets (IDA creditcategories, other donors grant categories, Governmentcounterpart funds etc.); and

(vi) targets for revenue collection; and

(vii) procurement plans for plirchases, works and servicesscheduled in the AWP, including type of procurement/biddingand timetables.

3. The annual planning and budgeting system, to be practical, shouldform part of an integrated planning, financial control/accounting andmonitoring/reporting system. This system would be established andoperationalized during the first project year and should be computer-based.

O*G*UAZATION CHART OF THE FOEST DEMRTMENIT

RECTOR O FOREST"

[ U D i -QT*LYlIS S (COB SECTION

{ E } PLANIS . LKCINSINC SECTIONIj IkOIIISP9CIONk&1I & PROTECTION .AgsTh

Dtt I OtMIYY m

U~~~~~~~~~~~~~~~~~~~~~~~~~~L~ B t tt W t

13 =1 ~~~~~

L v v 2 X |'~~mm Lxim

Annex 12- 128 - Page 1 of 2

KENYA

FORESTRY DEVELOPMENT PROJECT

Selected Documents in the Project File

Project Preparation Phase

1. The Fourth Kenya Forestry Development Programme. Facts, figuresand proposals for developing specific projects in the variouscomponents of the forestry subsector. GOK document/MENR-FD.November 1988.

2. Kenya - Forestry Subsector Development Project. ProjectPreparation Report. FAO/World Bank Cooperative Programme. July1990.

3. Forest Roads Study. KOP Consultants. GOK document/MENR-FD.January 1990.

4. Kenya - Third Forestry Project: Draft Project CompletionReport/Part 1. FAO/World Bank Cooperative Programme Report.October 1989

Project Pre-appraisal/Appraisal Phase

5. KEFRI Strategic Plan 1989-2000. GOK document/MSRT-KEFRI. August1989.

6. Natural Forest Project Component. World Bank!ODA pre-appraisalworking document. December 1989.

7. Kenya Forestry Master Plan. Detailed terms of reference. FINNIDAdocument. (April 1990).

8. Timber Royalty System in Kenyan Industrial Forest Plantations.Consultant report/World Bank document. May 1990.

9. Appraisal Mission Working Papers (May 1989):

I. Farm Forestry Extension. World Bank - SDC document.

II. Indigenous Forest Management and Conservation. World Bank- ODA document.

III. Industrial Plantations Development. World Bank - FINNIDAdocument.

- 129- Annex 12

Page 2 of 2

IV. Transport and Forest Road. World Bank document.

V. Institutional Strengthening of the Forest Department.World Bank - EEC document.

VI. Forestry Research. World Bank - EEC document.

VII. Forestry Education - Kenya Forestry College. World Bank -EEC document.

VIII. Environmental Impact; plus Supplement (July 1990). WorldBank documents.

IX. Detailed final cost tables (Novermber 1990). (Annex 2,Table 4)

Post-Appraisal Phase

10. Indigenous Forest Conservation Project. ODA document.August 1990.

NAP SECTION

so | Q s ~ ~~~ ETHIOPIA ,

L Tu ~~N

1UGANDATURrxAN 4T J N /% E/ d r e t < * / sJ 14i

Conservonancycyidb W -bd \ jSOMALI

< D S O 8 tA PE N G uasANrtb 5'ae n; Z w ;X)\g tCo~~~~~~nyu c Conservanc

n.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~'

Nakuru , B , \ ) 5 ( wM

. Conservancy a d wRa aS 7

K E N Y A 0. t' DFO.sm 0. IFORESTRY DEVELOPMENTs Ga9ad ,AN,+N < < \ \ \ / ( S FO

- Conservonr.y Bounduries 4; 4 ~~~~~~~~~~~~~Malindi 2r____

* ForeotStetions Kib A _________,_________

o RA.E.S. Stations C5 A.t Forest and R.A.E.S Stations S ETHIOPIA

= Railroads Tj - oes>/C 1t uLm{

*9 National Capitaxl N< tWALE 0S (hnr5 KEr4N}IETA!

Parks~~~~~~~~~~~~~~~~~~~~~~~~~AR

@ Province Capitol N- 3i/g,. oci

Cosrovinc Boundaries

- D.- International Soundaries o M lindiKFlotsn a 4o e0 20 160Sta

TANZs 0 20 F0 80 100 C TANZANIA

-- ! e" IP -- -a-