Documentof The World Bank

FOROFFICAL USE ONLY

Repat No. 9616 Public Disclosure Authorized

PROJECT COMPLETION REPORT

REPUBLIC OF SENEGAL

FORESTRY PROJECT Public Disclosure Authorized (CREDIT 1103-SE)

MAY 31, 1991 Public Disclosure Authorized

Agriculture Operations Division Sahelian Department V Africa Region Public Disclosure Authorized

This documenthas a restricteddistribution and may be used by recipientsonly in the performanceof their official duties. Its contentsmay not otherwisebe disclosedwithout World Bank authorization. CURRENCY EQUIVALENTSs

Monetary Unit s CFA Franc (CFAF)

Per US$ 1.00

Appraisal Date (April, 1980) s CFAF 210 Average over project duration t CFAF 329 Closing Year (1989) s CFAF 287

WEIGHTS AND MEASURES:

Metric System

1 stere = 1 m3 of stacked roundwood 1 m3 (natural forest firewood) = 1.6 steres = 640 kg 1 m3 Eucalyptus firewooC = 1.6 steres = 720 kg 24 Eucalyptus poles - 1 m3

ABBREVIATIONS

CCCE Caisse Centrale de Coopsration Economique (France); French Loan Aid Agency CNRF Centre National de Recherche Forestibre (Senegal); National Forestry Research Centre FAC Fonds d'Aide et de Cooperation (France); French Governmental Development Fund FAO Food and Agricultural Organization of the United Nations ISRA Institut Sdn6galais de Recherches Agricoles; Senegalese Agricultural Research Institute UNDP United Nations Development Program THEWORLD SANK FOROFCIL USEONLY Waihingion.O.C. 20433 U.S.A

Ollie di Ovctmt.Gowal OPMto ttt"Fki

May 31, 1991

MEMORANDUMTO THE EXECUTIVEDIRECTORS AND THE PRESIDENT

SUBJECT: Project Completion Report on REPUBLIC OF SENEGAL Forestry Prolect (Credit 1103-SE)

Attached, for information, is a copy of a report entitled "Project Completion Report on Republic of Senegal - Forestry Project (Credit 1103- SE)" prepared by the Africa Regional Office with Part II of the report contributed by the Borrower. No audit of this project has been made by the Operations Evaluation Department at this time.

Attachment

"2

This documenthas a restricted distribution and maybe used by recipients only in the performcace of their officialduties Its contentsmay not otherwise be disclosed without World lank authoriation. PROJECT COMPLETIONREPORT FOR OFFICIAL USE ONLY

REPUBLIC OF SENEGAL

FORESTRYPROJECT (CREDIT 1103-SE)

TABLE OF CONTENTS

-PateNo.

PREFACE...... a...... a EFALUATIONSUMMARY ...... *...... *l1 ...

PART I PROJECT REVIEW FROM THE BANK'S PERSPECTIVE ...... I

Project Identity ...... *...*.... *.*...... 1 Background *...... * ...... Project Objectives and Description ...... 1 Project Objectives ...... , ...... 1 Components 2 ProjectDesign and Organization 2 Implementation...... 3 Executing Agency 3...... 3 Credit Effectiveness 4 Unforeseen FactorsAffecting Implementation5...... too 5 Project Reorientation to ...... 5 FinancialManagement and Accounts ...... *...... 5 Project Extension ***a* .. .6 Project Results 0000**..6 State-ManagedPlantations .see...... 6 Rural Forestry...... 7 Natural Forest Management 8 Training 8 Applied Research ...... 9 Planning, Monitoring and Economic Studies ...... 9 Impact ...... 9 Economic Rate of Return .... ooote ** ...... 10 Sustainability.... O1.1...... Bank and Borrower Performance .1...... so....1

PART II PROJECT REVIEW FROM BORROWER'S PERSPECTIVE ...... 13

Relationswith Donors 13 Relations with IDA ...... 13 Relations with CCCE ...... 13 Relations withFAC .... 13 Relations with UNDP/FAO 13 Impact of the Project ...... 13 Expansion and Protection of Senegal's Forest Resources ... ** * *.***** ...... o--- 13 ForestPolicy and Strengtheningof Institutions 15 Conclusions ...... e ...... 18

This document has a restricteddistribution and may beused by recipientsonly in the performance of their officialduties. Its contents may not otherwise be disclosedwithout World Bankauthorization. Tble, of Contents (Cont'd) Pare No.

PART III STATISTICALINFORMATION ...... 21

Related BanikLoans/Credits ...... 21

IDA Credlt Disbursements ...... *..... 23 Project Implementatlon *...... *...... *..*...*.*** Project Ccsts and Financing ...... ~...... , 26

Status of Covenants . ... *.....*...... *.*.. .*.*. *.. 30 Use of Bank Resources ...... 32

ANNEXES 1 Calculationcf Wood Yields for Industrial

2 Calculationof Wood Yields for Rural Plantations ...... 36 3 Rural Forestry Component - Village Nurseries ...... 37 4 Rural Forestry Component - Plantings by Tree Type and Planting Arrangement in the Kaffrlne Region ...... 38

ATTACHMET 1 Comments from CCCE ...... 39

ATTACHMNT 2 Comments from FAC ...... 41

-HA~P- IBRD 15132 PROJECT COMPLETION REPORT

REPUBLIC OF SENEGAL

FORESTRY PROJECT (CREDIT 1103-SE)

PRZFACZ

This is the Project Completion Report (PCR) for the Forestry Project in Senegal, for which credit 1103-8S in the amount of US$ 9.3 million was approved on February 10, 1981. The loan was cldomd on December 31, 1989, three years behind schedule. Only US$ 7.99 million were diobtirsedand an amount of SDR 806,437 (US$ 1.05 million) was canceled.

The PCR was prepared by the Agricultural Operatlons Division of the Sahelian Department of the Africa Region. The Borrower did not prepare its part tf the PCR (1I), although it had been requested to do so.

Preparation of this PCR is based, inter alia, on the Staff Appraisal Report, the President's Report, the credit agreement, supervision reports, correspondence between the Bank and the Borrower and between the Bank and Cofinancers, and internal Bank memoranda. - iii -

PROJECT COMPLETIONREPORT

REPUBLIC OF SENEGAL

FORESTRYPROJECT (Credit 1103-SE)

EVALUATIONSUMMARY

Objectives

1. The Senegal forestry project was designed against a background of rapidly degradingnatural forests in the areas around Dakar and in the groundnut basin. Recognizingthe environmentaland economic threat posed by the rapid destruction of the natural forest cover, the Senegalese Government developed a forestry master plan which aimed at renewing and expanding natural sources of fuel and service wood without further depleting natural forests. To help implement the plan the Government requestedBank assistancefor a ro-Aforestation and natural forest management project.

2. In line with the Government's forestry plan, the project aimed at increasingthe supply of fuelwood and other forest products to the urban center of Dakar and the rural areas in the groundnutbasin. Specificproject objectives were (a) the establishmentof 2,000 ha of state-managedtree plantations;(b) the creation of 1,500 ha of rural family and 1,500 ha of rural community tree plantations; (c) improvement in management and productivity of 10,000 ha of natural forests; (d) financing of applied forestry research relevant to the project area, and (e) strengtheningof .he Forestry Department'splanning and management capacity through the establishment of a training center and a planning, monitoring and economic studies unit.

ImRlementationExperience

3. The project was appraised in April 1980 and approved in February 1981. Project start-up was slow. After three reschedulings the project became effective with a year's delay, in July 1982. The original closing date of December 1986 was postponed three times and the project closed on December 31, 1989. Two years into project implementationit became clear that lower-than- expected rainfall and soil conditionsunfavorable to the productionof the fast growing, but exotic EucalyptusCamaldulensis, would not allow attainmentof the expected results in plantations. The projectwas thereforereoriented away from pure production objectives toward the reconstitution and protection of the natural vegetativecover in the forest reserves of the project area. Except for chronic financial problems, project implementation was satisfactory after reorientation.

Results

4. The project failed to achieve the original productionobjectives, but it also generated a number of benefits which are not directly quantifiable. These include advances made in the development of techniques to reconstitute the natural forest cover in the Sudano-Sahelianzone; excellenttraining of forestry - iv -

techniciansand extensionworkers, and the developmentof an innovativeapproach to engage the rural population in ruralreafforestation and soil management.

5. After the initial failura of the state-managedEucalyptus plantations, project activities focussed on replanting unsuccessful Eucalyptus plots with lower yielding, but more resistant local species, and on enriching depleted natural forests with bands of local species. About 1300 ha of local species were planted in full stands and 2,154 ha of natural forests were enriched.

6. Although rural forestry Eucalyptus plantationswere more successfulthan state-managed plantations (mainly due to better soils in the lowlands), the project increasinglymoved away from planting a maximum number of hectares with high yielding species toward teaching the rural population how to produce and protect trees and appreciate their economic and ecological value. Plantings under this component proved to be more cost-effectivethan industrialplanta- tions. A full-standequivalent of about 2,290 ha of various specieswere planted and 240 village nurserieswere set up.

7. Performance under the natural forest management and the planning, monitoring and economic studies componentwas disappointing. Activities under the natural forest management component never proceeded beyond the elaboration of a management plan for one of the classified forests in the region. The planning, monitoring and economic studies unit suffered from an unclear definition of its activities, little support and interest from the government entity it was supposed to assist and the fact that effectiveproject monitoring and evaluationwere rendered impossibleby the lack of an analyticalaccounting system.

8. Activities carried out under the training component were among the most successful of the project. Almost 1,900 forestry and extension personnel benefittedfrom well-designed,practical training sessions on a broad variety oi topics pertaining to forestry and natural resource management.

9. In contrast to the appraisal estimate of 13 percent, the ex-post economic rate of return is estimated at 1 percent. The main reasons for this difference are: (a) all state-managed Eucalyptus plantations had to be replanted with lower-yieldinglocal species, (b) higher-than-expectedcosts for the initially planted Eucalyptustrees, and (c) no directlymeasurable output from the natural forest management component.

Sustainability

10. Although the educationalbenefits of the rural forestry and the training componentwill extend beyond project completion,it is questionablewhether the majority of directly-productiveactivities will be sustainablewithout further assistance. Renewed depletionof the newly establishedforest resourcescan only be prevented if they are managed as an integratedsystem of resourceswith the participationof those who exploit them. Although the project has contributed to a better understandingof the issues involved in natural resourcemanagement, it is doubtful that the understaffedforestry service in the project region will be able to manage effectivelythe newly-establishedresource base. Prospectsfor the sustainabilityof activitiesof the rural forestry componentmay be better, as indicatedby the fact that 40 village nurserieswere consideredas autonomous at project completion. -v -

Findings and Lessono Learned

11. The Senegalese forestry project has shown thats

pedological and climatic conditions in Senegal's Centre-Eat do not allow for cost-effectivewood productionin industrialplantations;

other, more cost-effectiveways to regenerate forest resources in the Sudano-Sahelianzone do, however, exist. They include tree planting on farmland and enrichmentof natural forest reserves with local species;

these techniques remain nevertheless too expensive to produce fuelwood under the current Senegalesewood price system. They are also unlikely to yield enough wood to address effectively the problems associated with the rapidly increasing urban demand for fuelvood;

planting in and around farmland to produce building poles for local markets can be proritable, although these markets may quickly be saturated;

in an environmentwhere the degradetionof natural forests is caused by logging and extensive exploitation of forest resources by agriculturalproducers and pastoralists,forests cannot be viewed as a mere wood reserve. They must be managed as an integrated system of resources with the active participation of those who utilize them;

the rural population is increasinglyaware of the dangers of natural resource degradationand can be effectivelymobilized to contribute to natural resource management. PART I

PROJECT REVIEW FROM THE BANK'S PERSPECTIVE

1. Proiect Identity

Names Forestry Project Credit no.: 1103-8X RVP Units Africa Region, Country Department V Country: Senegal Sectors Agriculture

2. Backaround

2.01 In 1980 Senegal had a natural forest cover of about 14 million hectares, amounting to approximately70% of the land mass. The dLtribution and quality of the forest cover was heavily influencedby climatic conditions and population density. Clearings for agriculture and wood production had lowered the forest cover to only about 50% of the land mass in the relatively densely populated areas of the groundnut basin and to less than 30% in the areas surroundingDakar and Thies.

2.02 Firewood and charcoal met about 60% of Senegal's total energy demand. Charcoal was the key fual for urban households.With over one third of Senegal's 5.5 million people (at the time of project appraisal, 7 million today) living in cities and an urban population growth rate of 4%, urban fuelwooddemand was estimatedto increaseby over 140% between 1979 and 1998. Combined with a steadily growing demand for firewood and building poles in rural areas, this daunting rise in urban fuelwood consumption put a heavy burden on the forests surroundingurban areas. The natural forests in an area of over 200 km around Dakar were being decimated and deforestation was rapidly spreading to more remote areas in the East where it contributed to erosion, loss of soil fertility, lower water tables and declining agriculturalproductivity.

2.03 Recognizingthe increasingonvironmental and economic threat posed by the rapidly advancing destruction of the natural forest cover, the Government of Senegal, assisted by FAC and CCCE, developed a forestry master plan. The plan aimed at renewing and expanding natural sources of fuel and service wood and sought to strengthenthe Forestry Department'scapacity to implement effective forestry protection and production programs. In this context the Government of Senegal approachedthe Bank in 1978 with a request to help finance a reafforestationand natural forest management project.

3. Project Objectives and Description

3.01 Project Objectives:Against thli backgroundof increasingdemand for wood products and rapid degradation of the natural forest cover, the project'o objectives were to increase the supply of fuelwood and forest products to the urban center of D&kar and to the rural areas of the heavily populated groundnut basin. The project also aimed at strengthenLng the planning and management capacity of the Forestry Department. - 2 -

3.02 Component:t The project comkrised seven components.

(a) establishment and maLntenance of 2,000 ha of state-managed tree plantations 1n the forest reserves between Raffrine and Koumpentoum and maintenance of 600 ha of previously established state-managedtree plantations;

(b) establibhmentof 1,500 ha of rural famlly tree plantationsand 1,500 ha of rural community tree plantations in Slne Saluum and Eastern Senegal;

(c) improvement in productivity and management of 10,000 ha of natural forestsa

(d) financingof an applied forestryresearch program dealingwith issuesrelevant to the project area;

(o) establishment of a training center to provide refresher courses for forestry agents and training of extension staff in rural forestry;

(f) assistingthe ForestryDepartmentIs Planning Divisionwith (i) the elaborationand implementationof a regulatory system for the explastationof natural forests, and with (ii) monitoring and evaluatingproject activities;

(g) provision of yearly project audits and consultingservices to carry out studLesin collaborationwith the PlanningDivision.

4. Project Design and organization

4.01 In light of the Government'sincreasing concern with defor:estation and the growing gap between demand and naturally sustainable supply of fuelwood, the timing of the project was clearly appropr'ate.

4.02 Initial project design, however, was overly optimistic and put too much emphasis on rapidly achieving unrealistically defined production objectives.While settingthe objectLves,project designers had failed to pay enough attentionto ecologicalfactors which subsequentlyinfluenced project results. 1983 and 1984 were years with extremely low rainfall, causing many seedlings to die. Project designers had looked at average rainfall, but failed to ask the question of what the effects of rainfall shortagewould be. In addition, soil conditions in most of the area chosen for state-managed plantations turned out to be unfavorable for the production of Eucalyptus Camaldulensis,even though a soil survey had been carried out during project preparation 1/. In 1985 theme shortcomingswere rocognized and the project was reorientedfrom pure productionobjectives towards the reconutitutionand protection of the natural vegetative cover.

4.03 Due to the -ject's strong emphasis on wood productLon, the role and activities of prFuuction oriented components (state-managedand rural plantations)were more clearly defined and better understood by all parties involvod than those of the forest managementor the planning, monitorLngand *conomic studies component. Consequently* neither of theme two components were fully operational during tho whole project life.

4.04 In retrospect,it seems clear that the project, as it was initially designed, focussed too narrowly on the value of forests as mere wood reserves. Not enough attentionwas paid to the fact that forests (especially in areas where extensive agricultural production techniques remain common place) constitutean integratedsystem of reserves (e.g. wood, fodder,soils, etc.) which must be managed as such. ThL became increasinglyclear during the course of the project and was at least partiallytaken into consideration during reorientation.It must be highlightedthat this shortcoming was not unique to the project in question. The forestry project in Senegal was in many ways a product of its time and reflected the approach which was then taken towards deforestation.

5. Implementation

5.01 Ex4cuting Agency: To assure efficient functioning of the project within a relatively heavy administrativesystem, it was decided that the project should be implemented by an autonomous project management unit located in the project area (Kaffrine)and responsibleto the Director of the Forestry Department.The autonomy of the project unit proved to be decisive during project implementation, as it allowed for flexibility and rapid response when it became necessaryto reorient the project. The manager of the project unit had previously been in charge of the FAC/CCC'Efinanced pilot project in the same region and could therefore assure a certain continuity between the pilot project and the new cofinancedforestry project.

5.02 Because previous projects in Senegal, includingthe FAC/CCCE pilot project, had experienced enormous difficultiesand delays in obtaining the funds necessary to cover their expenses, it was decided that the project should be granted financLalautonomy over a revolving fund with a posteriori governmentalcontrol over expenditures.This allowed the project to cover a

1/ Because the original soil surveys were not available when this PCR was prepared, it was not possible to determinewhy the project wae carrled out in an area where a hard lateriticcrust preventedEucalyptus roots from growing deep enough. Possible explanationsare that (i) ths soil survey had not been carried out thoroughlyenough to detect that there were only limited pockets of soil deep enough for the production of Eucalyptus or, (ii) the soil surveys had been carried out correctlybut were interpretedfrom an agronomic rather than a forestry point of view or, (iii) soil surveys were carried out correctly but not used properly by the forestrystaff in charge of the state- managed plantations. signifLcantshare of lte cash needs which was particularlyimportant at times when it was difflcult to obtain dLsbureement of counterpart funds. Availabillty of liquid funds was critical for the hlghly seasonal forestry actLvities, as the planting period was limlted to about six weeks and the whole season would have been lost if plantings could not be carrled out during thli time period.

5.03 Credit Effectlvenest Project start-up was slow. Credit effectiveness,whlch had been set for July 1981, was rescheduled three times and the credit finally became effectivein July 1982. Whlle problems with the mobilizationof counterpartfunds slgnificantlycontributed to the delays in credit effectiveness, it must be recognized that the lnitial timetable, settlng the effectivenessdate only four months after credlt signature,was unreallstic.Given previous experlencewith setting up projects in Senegal, lt is hard to see how one could have expected to meet the extensive llt of effectivenesscondltlone (LncludLngrecruitment of expatriates)wlthin this time frame.

5.04 Among the factors causlng extenslve delays ln offectlveness were dlfflcultleswlth the completion of project preparation activltles, (soil surveys and the deslgn of an adequate accounting system) and problems wlth obtalnlng effectivegovernment guarantees regardlng the financialautonomy of the project. The latter also affected the signature and effectiveness of the CCCE credlt, itself a condltion for effectiveness of the IDA credlt. The decree glvlng the project manager autonomy over the revolvlng fund (with posterlor government control) was lisued with delays because of a dLoagreementabout whlch Lnstance in the Governmentshould have the power to authorlze project expenditures.Slow government action ln openlng a speclal project account with the Treasury and in depositing the inltial counterpart contribution further delayed credit effectiveness.The problem was finally solved when CCCE agreed to finance the initial Government contribution through an exceptionalald program.

5.05 In line with the projectes lnltial production orientatlon, the state-managedplantation and the applled research components took up thelr actlvities shortly after credlt effectLveness.The start-up of the state- managed plantations component was facilltated by the aselgnment of local staff who had galned experlence under the preceding FAC/CCCE project. Maintenance of exlsting state-managed plantations was inltlally rendered difficult by the lack of equlpment. The rural forestry component started during the 1983 plantlng season,but its activitieswere severely hampered by a shortage of staff during the first two years. Initial problems of the plannlng,monitoring and economic studles componentwere due to the fact that the role of the forestry economlc advisor, assigned to assist the plannlng facility of the Forestry Department ln Dakar, had not been sufficiently defined during project preparation.

5.06 The expatriate advisor to the project director left the project after lese than two years. His pooltlon was canceled and replaced by two expatriate field pooitions, one allocated to the natural forest management component and another one assigned to the rural forestry component. The natural forest managementcomponent did not effectivelystart operatinguntil 1984. -5-

5.07 Unforeseenfactors affecting implementation:Two unforeseenfactors significantly influenced implementationof the production oriented project componentst (i) a repeated shortage of rainfall in the project region and, (Li) soil conditionswhich proved unfavorablefor the cultivationof the fast growing but exotic Eucalyptus Camaldulensisin most of the area chosen for Lndustrial plantations. This severely affected the progress of the state- managed plantation. component which had been doeigned with the assumption that high wood yields could rapidly be achievedby planting this species. Two years into project implementationit became clear that low survival rates (around 40%), stunted growth of the surviving plants and excessively high planting costs 2/ made industrial plantations in this part of Senegal an uneconomic enterprise.

5.08 Protect Reorientation:After the 5th supervisionmission (January 1985) the project was therefore reoriented away from unrealisticproduction objectives for fuelwood and building poles towards the reconstitutionand protection of the natural vegetative cover in the reserve forests of the project area. Project implementation succeeded satisfactorily after this reorientation.

5.09 Both the Bank (and other cofinancers) and the project management must be commended on their flexibilityand ability to reorient the project. Key questions are, however, why the risks of erratic rainfall were not more realisticallytaken into account during project appraisal and why the areas suitable for Eucalyptus Camaldulensis were so drastically overestimated.3/ The choice of Eucalyptus was based on encouraging results obtained on small plots in the lowlands and on pilot plantations of the FAC/CCCE project. Trials during this project were also limitedto smaller plots and not enough time was allowed to await and evaluate final results.

5.10 Financial Management and Accounts: During most of its duration the project was plagued by financial problems of three kindss (i) inadequate accountingand financialmanagement, (ii) problems with counterpartresource mobilizationand disbursementand, largely as a result of the latter, (iii) frequent mismanagementof the revolving fund.

5.11 Although an accounting system proper to the project had been designed by a consulting firm during project preparation, significant difficulties were experienced in implementingthe system. This translated into enormous delays in recording of expenditures, inadequate financial management and the virtual absence of an analytical accounting which would have allowed to monitor and analyze the costs of different project components. The contract of the expatriate administrative and financial expert was not renewed in 1985 and after an unsuccessfulattempt of replacing

2/ Direct costs for Eucalyptusplantations amounted to about CFAF 450,000/ha, while the SAR had foreseen a direct cost of only CFAF 168,000/hal High costs for Eucalyptus plantationswere mainly due to capital intensiveplanting and maintenance techniques and difficulties with land preparation caused by unfavorable soils.

3/ See Footnote 1/ for possible explanationsof why the area suitable for Eucalyptus plantations may have been overestimated. him with a local expert his duties were assumed by the project's accountant and his assistants.

5.12 The project experiencedrepeated problems with the disbursementof counterpart funds. Disbursementregularly occurred with substantialdelays, even though CCCE had exceptionallyassumed their financingduring the first two project years.

5.13 The shortageof governmentfunding repeatedlyled project management to abuse the revolving fund, which in turn led to a general cash shortage. Substantialdelays were also experiencedwith tho submissionof requests for reimbursement from IDA and CCCZ and subsequent replenishment of the revolving fund. This further aggravated the cash shortage problem and led to significant delays in payments of local staff and suppliers. Combined with delays in procurements,the postponementsof payments rendered many local suppliers reluctant to submit further tenders.

5.14 Project Extension: Delays in credit effectiveness, unexpected financialand material contributionsfrom the precedingFAC/CCCE project, the appreciationof the dollar and slower spendingthan anticipatedmade for much slower credit disbursementsthan estimated at appraisal.Slower spending was largely due to the fact that planned project facilities were never fully constructedand that less machinery needed to be purchasedbecause production techniquesafter project reorientationwere less capital intensive.As it was expected that some of the newer activitiescould be continuedunder a follow- up project and implementationwas satisfactoryafter the reorientation,the project closing date was postponed three times. This allowed preparationof a follow-up natural resource management project within the framework of the ongoing project. Slow disbursementof the IDA credit and ensuing project extensions rendered a redefinition of IDA and CCCI pari passu rates necessary.

6. Project Results

6.01 Evaluation of the project's output is rendered difficult by its reorientationand the absence of newly-definedoutput objectives at the time of reorientation.In addition, limitedquantitative information is available on actual achievementsand their costs.

6.02 Evaluated against the original objectives,the project was clearly not successful, as it failed to increase availabilityof fuel and service wood to the extent projected.The project should, however, also be evaluated in light of its benefits which are not directly quantifiable.Such benefits include advances made in the developmentof techniques to reconstitutethe natural forest cover in the Sudano-Sahelianzone, training of local forestry technicians, and the development of an innovative approach to engage the rural population in rural reafforestationand soil management. Finally, it must also be recognized that the forest which was reconstituted in the project area has had a positive impact on the ecological stabilityof farming systems surrounding it.

6.03 State-managedplantations: operation of this component occurred in three phases: (i) planting of full stands of Eucalyptus on freshly-cleared - 7 -

land during the first two project years, (Li) limited plantation of full stand Eucalyptus and trials with local species durlng the third and fourth project years and, following project reorientatlon, (iii) reconversLonof initiallyplanted Eucalyptusplots with slower growing but more robust local p ciae and enrichment of degraded natural forests with bands (rather than full stands) of local species.

6.04 Because of insufficient rainfall and unfavorable soils almost all 1,200 ha of full-stand Eucalyptus planted during the first four project yei-S had to be replaced with local species. Where possible, dead Eucalyptus tress were cut to produce poles and av attempt was made to sell them on the local market. No stock was taken of the number of poles produced this way, but there were reports that they were selling slowly. a total of 1,300 ha (including240 ha from the previous FAC/CCCZ project) were reconverted from Eucalyptusto full-standplantations of local species between 1986 and 1989. About 2,154 ha ef depleted natural forestswere enriched with bands of local species and, during the last project year, 300 ha of plantingson farm fields (bands at a distance of 50 m) took placo.

6.05 Increasing efforts were made to associate the rural population adjacent to these piantations with the work carried out. Farmers were contracted to cultivate the spaces between tree bands during the first, second and sometimes even third year after planting. This arrangement permitted to save on maintenance costs of newly planted trees 4/, taught farmers that it was possible to cultivate in the forest without destroying it, and allowed for higher crop yields than on ordinary fields.

6.06 Five tree nurseries were created under the plantations component. Three of them were active until project completion.They produced over three million plants of Eucalyptusand local species.

6.07 Rural ForestrX: Although rural Eucalyptus plantations were more successfulthan state-managedplantations (mainly due to richer and deeper soils in the lowlands)the project'sreorientation also affected the approach taken to rural forestry.The objectiveof planting a maximum of hectares with high yielding species increasinglygave way to the objective of teaching the rural population how to produce and protect trees and appreciate their ecological and economic value.

6.08 This translated into a move away from handing out a maximum number of Eucalyptus seedlings to teaching individuals and groups how to grow a variety of seedlings in their own nurseries.No physical targets were set, because it was decided that farmers had to recognize and define their own needs. Productionof seedlings in village nurseries started in 1986t by 1987 all seedlings used in the rural forestry program were produced in village nurseries,and by 1989 village nurseries were able to sell seedlingsto the project for use under the natural forest enrichment and reconversion component.

4/ Allowing farmers to cultivate between the tree planting lines helped reduce plantationcosts by almost 50% from CFAF 149,000/hato CFAF 78,000/ha. - 8 -

6.09 After project reorientationsignificant efforts were also made to diversify the activities under the rural forestry component. Besides production and plantationof tree seedlings,activities increasingly included interplantingof vegetablesand trees, constructionof firebreaks,plantation of tree strips on agricultural and fallow lands, erosion control and protecting the regeneration of the natural vegetative cover. First steps towards village land managementwere taken in two villages.One of the rural forestry component's principal merits thus clearly is the innovative participatoryapproach which it developed to introducethe rural population to effective methods of rural forestry and natural resource management.

6.10 While the project operated through its own extension workers in the Kaffrine region, attempts were initially made to work through local development organization. in the Department of Tambacounda. These organizationsgave, however, priority to other activitiesand rural forestry results remained unsatisfactory.It was therefore decided to open a project branch in Tambacounda in 1987.

6.11 Little quantitativeinformation exists on rural forestry activities and the benefits they yielded. A full-standequivalent of about 2,290 ha were planted under this component (initial project objective was 3,000 ha, but ignored other activities),about 240 village nurseries were set up of which 40 could be considered autonomous at project completion and about 200 villages were reached by the project's activlties.Rural plantationsproved more cost effective than industrial plantations:the costs of planting a hectare of full stands on farmland amounted to under CFAF 80,000 per hectare, while those of industrialplantations (local species) amountedto almost CFAF 150,000 per hectare. Farmers used most of the wood from Eucalyptusplanted on their land to produce building poles for the local market.

6.12 Natural Forest Management: Performance under this component was disappointing. One of the reasons for this was the lack of a readily available framework for the management of forests under the ecological conditions prevalent in the project region. The project was not given formal authority to proceed with the managementof the Koumpentoum forest until the vast majority of the area had been extensively exploited. After some preliminary work it was decided that field activities should be put on halt until a management plan had been established. Inventory work proceeded so slowly that the actual forest management plan was not completed until September 1989. During the elaborationof the forest managementplan, complex technical studies (e.g. overly sophisticated forestry and pasture inventories)were given preference over the search for a multisectoraland participatoryapproach to natural forest management.

6.13 Training: Although the activities and scope of this component had not been clearly defined at the outset, it turned out very successful. The seminars and refresher courses for forestry personnel in and outside the project were of high quality and extremely practice oriented.They covered a wide range of topics, including traditional forestry techniques, economic, sociological and extension issues related to forestry policy and new approaches to involvingthe rural population in natural resource management. Almost 1,900 forestry techniciansand extensionworkers benefitted from this component during the course of the project. - 9 -

6.14 Applied Research: Although this unit produced some useful experiments and technical notes, it was lacklng a coherent operational framework and failed to join efforts with other research institutions in the area (notably ISRA and CNRF). During the first half of the project the unit mainly focussed on experiments with Eucalyptus and local species. After the reorientation it increasingly assisted the plantations component with the selection of appropriate local *pecies and planting sites and the establishmentof project nurseries.The unit also carried out an inventoryof the plots planted under the state-managedand rural forestry components. It failed, however, to produce a synthesis of this informationand thus did not allow conclusionsto be drawn on such importantissues as relative importance of different speciesplanted, average survival rates, expected wood yields or cost effectivenessof different operations.

6.15 Planning, Monitoring and Economic Studies: This unit suffered from an unclear definition of its activities and little support and interest from the government entity it was supposed to assist. In addition, its relationship to other project components was never clearly defined. The unit's major task consisted in monitoring and evaluating the activities of other components, especially with respect to their cost effectiveness and sustainability. This task was rendered impossible by the project's unsatisfactory accounting system and the absence of detailed analytical accounting.The unit's main achievementwas a study on fuelwoodprices which later served as a basis for a new decree on prices for wood cutting permits. The unit ceased to exist after the departureof the expatriateeconomist and the reorganizationof the Ministry of Nature Protection.The remainderof the funds which had been allocated to it were used to financethe preparationof a follow-up natural resource management project.

6.16 Impact: The project resulted in the reconstitutionof a full-stand equivalent of about 2,226 ha of natural forests (1,589 ha of full stands in local species and 2,154 ha of enriched forests) and rural plantations of a full-stand equivalent of about 2,290 ha. However impressive these figures might be, it is clear that they only had a small impact on the reconstitution of Senegal's forest cover. The full-stand equivalent of 2,226 ha reconstitutednatural forests amounts to less than 2% of the total area of reserve forests in the project area (the actual area touched by the operations amounts to about 7% of the natural forest reserves in the area).

6.17 In the absence of informationon actual wood yields of the project plantings, the following example with relatively optimistic wood yield estimates of 2m3/ha/year for local species and 5m3/ha/year for successful Eucalyptusplantations shows that the project's impact on wood production is minimal compared to growth in demand. Under the above assumptions project plantations would yield about 13,800 m3 5/ of wood per year compared to an expected annual increase of urban fuelwood consumption of about l00,000m3. The message is clear: large-scaleindustrial wood plantationsare too costly

5/ The 4,043 ha planted under the plantations component amount to a full- stand equivalent of about 2,226 ha of local species. 71% of the 2,290 ha full-standequivalent of rural pLantations are Eucalyptus and 27% are local species. Total wood yields would thus be about 2,226x2+0.71x2,290x5+0.27x2,290x2-13,818. - 10 -

to address the rapidly increasing demand of household energy in Senegal. Other strategies,such as promotingalternative household energy sources and a wood price policy consistentwith the economic value of wood must be used to address these issues. 6/

6.18 On the other hand, the reconstitution of the natural vegetative cover and the rural plantations have had a poeltive ecological impact and prevented the forests ln the project region from being totally depleted. The enriched forest reserves have yielded direct )snef its to the rural population in the area in terms of higher crop ylelds on land cultivated between tree lines, increasedavailability of forest products and the acquired know-how in rural forestry.

6.19 The project has also had a positive impact on human resource development among local forestry technlcians and extension workers. It has contributed to a better understanding of the iesues involved in natural resource management and to the development of a more global and participatory approach to resource management in the rural areas of Senegal.

6.20 Economic Rate of Return: Calculation of an ERR comparable to the one at appraisal is rendered difficult by the aboence of project data on wood yields from any of the planted species and enormous differences in project cost data from different sources. Because of the poor quality of the accounting system, it was not possible to determine project costs by component,so that the calculationof rates of return by project component is not possible. Table 6b in part III shows that the ERR taking only into considerationincreased wood production (andthus ignoringall other benefits due to lack of data) is about 1% under the most reasonable (but probably still optimistic) wood yield assumptions.7/ The main reasons for the difference between the projected (12.8%) and the actual ERR are (i) all state-managedEucalyptus tree plantations had to be replanted with lower- yielding local species; (li) higher-than-expectedcosts for the initially- planted Eucalyptus trees and; (iii) no directly measurable output from the natural forest management component.

6/ Although project specific data to calculatethe minimum necessaryprice of charcoal which would allow full coverage of wood production costs do not exist, data from the Urban Household Energy Strategy Study give an indication: production costs of wood range from 11 to 21 CFAF per kg of standing wood, depending on whether this involves rural reforestation, development of natural forests or state-managed plantations. This would require a Dakar retail price of charcoal between 77 and 133 CFAF per kg of charcoal. Under the now decree regulating wood cutting permits, retail prices for charcoal are expected to amount to about CFAF 64 to CFAF 68 only.

7/ ERR calculationsassume wood yields of 2m3/ha/year for local species and 5m3/ha/yearfor successfulrural Eucalyptusplantations. The SAR had assumed wood yields of 6m3/ha/year for state-managed Eucalyptus plantations and 4m3/ha/year for rural Eucalyptusplantations. - 11 -

7. Sustainability

7.01 Future productivityof the state-managedand rural tree plantings will to a large extent depend on the quality of maintenanceand managementto be provided by a local forestry service which remains understaffed and underequipped.In an environmentwhere extensive agriculturaltechniques and wood cutting are common practice,higher yields on forest lands, availability of fodder for livestockand, of course, wood reserves are likely to reinforce depletion unless a global and integrated resource management strategy is developed. Although the forestry project ha. contributed to a better understandingof the issues involved in natural resource management, it is questionable whether the current resources of the Senegalese Forestry Service will allow to manage effectivelythe newly-establishedforest resources.

7.02 To what extent the rural populationwhich participatedin the rural forestry component will be able to keep it. activities up without further assistance is not known. The fact that 40 village nurserieswere autonomous at project completion suggests that prospects for surtainability of the activities under this component are better than for the state-managed plantations.

8. Bank and Borrower Performance

8.01 The Bank (togetherwith other cofinancers)bears responsibilityfor overly optimisticproject objectivesand a somewhat inappropriateassessment of project risks. The SAR mentioned the danger that the rural population might not be motivated to participate in rural plantationsas the main risk. No mention was made of the risks of drought (or at least inadequaterainfall) and the rlike involved in replicating on a large scale reforestation techniqueswhich had been successfulon some pilot plantations.

8.02 Once it became clear that the conditions in the project area were not conducive to large-scale industrialplantations of fast-growingexotic species, the Bank and cofinancers were quick to respond and showed commendable flexibilitywith respect to the developmentof less conventional techniques and redefinitionof project objectives.

8.03 Supervision missions generally followed up well on the production oriented activitiee but seem to have put less emphasis on issues like effective monitoring and evaluation or assessment of various techniques developed during the course of the project. Similarly,not enough emphasis and follow-up was given to the urgent need to develop a pricing policy for wood products consistentwith the scarcity value of this resource.

8.04 The borrower provided very proficientand highly motivated staff for project management and for field work. The Government also showed great willingness to abandon unsuccessful project activities and reorient the project. However, problems with disbursement of counterpart funds emerged frequently and led to severe cashflow problems at the project level. In addition, slow proceseingof requests forwardedto the Ministry of Planning often made it difficult to effect timely procurements and obtain quick replenishment of the revolving fund. An unclear definition of responsibilities among different government bodies associated with the construction of project facilities prevented regular follow-up on these - 12 - constructions and led to procurement delays, problem with governmental quality control and poor performanceof some contractors.As a result, some planned buildingswere never constructed and others (for example the training center) remalned half-finishedat project completion. - 1.3 -

PART II

PROJECT REVIE1WFROM BORROWER'S PERSPECTIVE

IX. Relations with Donors

9.1 Relations with IDA

Until September 1989, the Project Operations Unit had every reason to congratulate itself on its relationswith IDA, even at the critical point which preceded rewriting of the objectives and working methods of the project.

However, difficultiesemerged the following month with regard to payment of the initial advance, with eight months elapsing before seasonal workers received their final wage payments.

9.2 Relations with CCCE

Relations with CCCE were excellent at all times.

For example, all credits made available to the Project Unit under the "guaranteedborrowing arrangements"were very closely monitored by CCCE, and this explains how the Unit, in late 1988 and again in late 1989, had the agreeable surprise of finding its Treasury deposit account replenishedwith a total of CFAF 80 million, the sum it had lost through a reallocationof the proceeds of the Credit. Without this financing, the Unit would have had a difficult time of it as the project came to a close.

9.3 Relations with FAC

In order to be able to meet the obligations it assumed under its agreements with the Government of Senegal, FAC contracted with CTFT for consultancy services to be made available to the Project Unit.

Relations with FAC were very satisfactoryat all times and especially from 1985 onward, after the second team of technical assistants arrived.

9.4 Relations with UNDP/FAO

These relations were very satisfactorythroughout the project and made it possible to operate the Training Center under the best possible conditions.

X. Impact of the Project

10.1 Expansion and protection of Senegal's forest resources

The following areas were reforested in the course of the project: approximately 5,050 ha of government-runplantations and 2,540 ha of - 14 -

plantations run by individuals ,r communities in rural areas -- altogether a total of 7,590 ha. It is not yet known what yield can be expected from them.

Assuming that the 2,540 ha of rural plantationswill yield 7 m3/ha/year (the figure recorded for the best eucalyptus stands) and that the 5,050 ha of local species will yield 2 m3/ha/year,then the 7,590 ha can be expected to give approximately28,000 m3 of wood annually.

However, the most recent estimates indicate that annual consumption of fuelvwoodand constructionwood in Senegal will total 3.4 million m3 , of which 1.6 million m3 will be wood fuel consumed in urban areas, the main culprits as far as inroads into the country's forest capital are concerned.

The figures given in this paragraph and the following one are taken from the study S6negal: Energie domestique, 616ments de strat6gie, issued by the Ministry of Industrial and Artisanal Development in August 1987 (pp. 25, 35 and 71).

Urban consumption of wood fuel is likely to increase at a rate of about 100,000 m3 per annum, totaling 2.7 million m3 in the year 1998.

The country is usually regarded as possessing 14 million ha of forests, but the stands from which urban demand can be met total about 3 million ha (regions of Koalack, Tambacounda,Kolda, Ziguinchor and Saint Louis).

These 3 million ha produce an estimated natural surplus of 2 million m3 a year (0.94 m3/ha/annum, a 70% offtake rate).

Fuelwood consunption in urban areas in the coming years is therefore going to exceed the natural surplus produced by exploitable forest reserves to a greater and greater degree.

In 1992, demand is expected to total 2.2 million m3 , exceeding the 3 natural surplus by 200,000 m -- and so resulting in the destruction of an equivalent proportion of forest capital.

The 28,000 m3 of wood produced annually on the project plantations would reduce this deficit by 14%, a figure that is a long way from being negligible.

The four systems of forest management tested in the course of the project show that there are other ways of reconstitutingforest resources in the Sudano-Saheliantype of zone than by resorting to state-managed plantations of eucalyptus.

Reforestation in agriculturalzones and enrichment of natural forests with local species are other alternatives. Although it remains to be seen just how productive they are, they certainly cost less. - 15 -

Furthermore,whatever their value in terms of wood yield, these plantings have led to the appearance of new forest, similar in composition to the original forest, over an area of more than 5,000 ha.

However, this reconstitutedcapital is clearly threatened by the same types of degradation as caused the loss of the original forest, and it should therefore be protected in the course of the new PICOGERNA project.

The signs of this degradation are numerous: massive clearing and the presence of charcoal burners in the immediatevicinity of the new plantings, damage to local species in areas where there is excessive presence of livestock, and persistent brush fires all around.

Millet and groundnut yields obtained without fertilizer from forest soils also give an idea of the attraction these forests are likely to have for farmers in search of fertile land but without the financial resources to buy fertilizers.

Although it clearly gives cause for concern, this situation in any event demonstrates that the value of a forest and the returns to be obtained from it cannot be measured merely by the volume of wood it produces. Given the still very extensive types of cropgrowing and stockraisingsystems used in this region of Senegal, the forest is first and foremost a collection of resources in reserve -- soil, wood and fodder (to mention only the most important) -- and it is very difficult for the moment not to manage it as such.

10.2 Forest Rolicy and strengtheningof institutions

The means of direct action on Senegal's forest policy available to the Project Unit were comparatively limited, although they were instrumental in implementationof the desired reforms.

In the field itself, the project also helped show that it was not unrealistic to hone that the rural population could manage its forest resources more economically.

Backed by the project, farmers who engaged in intercropping operations in the newly planted forest areas were able to prove that crops could be grown in a forest without destroying it.

More importantly,the extension programs included in the project's rural forestry component, which focused on tree cultivation and the various techniques of natural resource management, provided individuals in rural areas with skills they may not have needed previously but which ecological degradationhas made necessary from now on.

The Project Unit chose to explain and to instruct, taking the chance that there were individuals in the rural world concerned at the degradation of natural resources or motivated by the possibilitiesafforded by the new knowledge being disseminated. - 16

There is every sign that such concern does indeed exisc. Although it has not given rise to any comprehensive vision of natural resource management on a national scale, it is manifesting itself in the voicing of very specific needs arising out of concrete problems.

The continuous presence of project extension agents in the field, their awareness of developmentproblems, and the confidence created by successful experimentsboth on plantations and in nurseries encourage awareness of needs and lead to the acquisitionof new skills.

All the same, there is room for improvement: simplificationof nursery materials and techniques;takeover by nurseries of the business of supplying seed and equipment; and adaptation not only of planting techniques (indirect seeding early in the season appears to be the most practical solution for small farmers) but also of the choice of species (not all of them are satisfactoryas hedges). Further room for improvementwill doubtless be discovered and instructionwill hqve to be provided for farmers in such areas as tree management (size of hedges, size of forage trees), fire prevention, keeping down of grass, and erosion control.

This gradual type of approach, which respects the freedom of initiative of rural communitiesand individuals,appears to be the natural path toward more appropriatemanagement of natural resources (although in the early stages it is inevitablyselective, since some communitiesand individualsremain untempted by such change).

It can also be regarded as paving the way for regional development plans, founded on what is doubtless a more realistic way of proceeding than using studies and surveys as a basis for interveningsuddenly and massively to create a new setting which the rural target groups would hardly have time to comprehend.

The instruction-basedapproach is also preferable to that of other projects, which, to counter the lack of interest in reforestationamong the rural population, multiply the benefits they offer (distributior.of plants, reimbursementof planting costs, food-for-workprograms, and equipment) in order to encourage local people to plant trees.

These two approaches,whose one goal is the reforestationof more and more land, trade on the distressed economic situation of the target groups, which they remedy temporarily. However, they have no lasting educational impact, since the rural population does not really plant for itself, nor does it abandon those very habits which lead to the squandering of natural resources.

The damaging of ecological resources and the economic difficulties faced by the rural world clearly go hand in hand. Project staff were constantly reminded of this, either when new forests suffered at the hands of impatient users or when communities preferred to have help with the problems they saw as most urgent (e.g. water supply, soil fertilization,development of off-season crops). - 17 -

Marketing conditions and prices, the terms of trade, the vagaries of the climate, and soil deteriorationhave come together in recent years -- more in some areas than in others -- to impoverish farmers and undermine their chances of achieving higher standards of living.

Although reforestationwas its chief goal, the project also helped bolster local economies to some degree: planting programs created numerous job opportunities,both seasonal and permanent; food-for-workprograms were set up; and growers were given subsidies on plants and nursery materials (under the rural forestry component).

Reconstituted forest areas, approximately5,000 ha, are a potential new source of land, pasture and trees which neighboringcommunities should shortly be able to profit from under better management conditions, especially as a result of the Koumpentoum forestry development plan. On plantations established since 1986, growers have already had an opportunity to put in crops among the trees, achieving significantlyhigher yields than on regular farmland.

Finally, the nurseries established (approximately250 each year since 1986) and the 1.6 million trees planted by project beneficiaries have brought some of them gross gains of up to CFAF 100,000 a year from the sale of eucalyptus plants or poles.

Eventually, these new activities and new plantings will prove to be sources of higher incomes (orchards, fuelwood, enclosure of bottomlands, soil fertilization,animal feed, etc.).

In this way, the project has helped in the quest for immediate solutions at economic strangulationpoints.

In Kaffrine Department, since SODEVA has now disappeared,the rural population can count only on NGOs (16 subproject loan applicationswere presenced in 1988, channeled through the Centres d'expansion rurale) and on various grant programs.

In the Tambacounda Department,SODEFITEX has expanded its operations to include all crops and stockraising,and is also supporting producer associationsand their public-interestprojects.

The possibility that rural communitiesmay eventually be made accountable for the management of forest areas makes it all the more necessary that the rural economy should be set on a firm footing.

In both direct and indirect ways, the project has also provided an opportunity to reinforce the abilities of those institutionsin Senegal which are responsible for its forests.

The importance of the Training Center at Kaolack, the only institutionin Senegal specificallyconcerned with refresher training for forestry agents, is recognized by everyone. Its existence is fully justified - 18 -

not only by the isolation in which foresters work but also by the level of their initial training.

The project components focused on government-runand rural forestry gave the Forestry Department the opportunity to acquire new skills. As well as being an important gain, the approach developed to rural forestry is also an asset that can be built on further in the course of other operations.

The plantations which were reconstitutedand enriched with local species of trees are also very important in the sense that chey provide Senegal with initial experience in the cultivationand management of these species.

The plantation areas affected by the project constitute a capital fund of knowledge, of which every possible advantage should be taken.

On this score, it may be noted that the very extensive involvement of se Applied Research Division in monitoring activities in government-run forest areas and in the execution of project works, while possibly not indispensable,undoubtedly reduced the time devoted to the business of evaluations -- for instance, of village plantation cost prices, success with local tree species, and the future value of forest stands.

Forest development is obviously a long-termbusiness, but this project has provided lessons on which tue eventual success of the venture will depend.

Finally, the Koumpentoum fo:est program has thrown new light on one field of knowledge, namely the manarement of natural forests, which must obviously be a fundamentalpart of any . forest management policy suited to the conditions existing in Senegal.

XI. CONCLUSIONS

Given the scale of its government-runreforestation component, this project was highly labor-intensive. At its peak periods, 600 workers a month were needed for an entire quarter.

The payroll for seasonal and contractualworkers alone amounted to CFAF 1.206 billion, over 90% of it spent in Kaffrine Department.

The completion of the project will therefore have a severe impact at all levels of the population in this Department.

Thanks to the project, a high proportion of rural inhabitants,and particularlywomen's groups, have become sensitized to the need for reforestation. - 19 -

Community or individual niurseries,and community or family plantations,have been established almost everywhere, and the income they produce has begun to improve living standards for certain communities.

Throughout 1990, despite the completion of the project, the AVAFs who were kept in their jobs (with a view to the requirementsof the PICOGERNA program) oversaw the establishmentof 147 nurseries (107 in Kaffrine and 40 in Tambacounda)expected to produce over 200,000 plants, consisting of all species (and more than 7,000 fruit trees). This is proof of the sustainabilityof sensitizatior.and extension programs.

Because of its systematicprotection of all man-made forest stands and their associated natural stands against bush fires and excessive encroachmentsby outsiders, the project has contributed largely to the repopulationof the forests by game birds. Even large carnivores have been seen. Forage and thatching materials for roofs are available to communities occupying an area extending as far away as Birkelane, and livestock can be watered at the Malem Hodar and Kaffrine tubewells. These improvementscan be ascribed to the impact of the project on just three forest areas, namely Kaffrine, Sagna and Malem Hodar.

Priority has to be given to preserving project gains through the PICOGERNA program, in particular by monitoring the last plantations established, in 1988 and 1989, and protecting them against fires.

In conclusion, it should be noted that failure of the eucalyptus plantations led the Project Unit to experiment with new stands consisting of local species, better adapted -- as far as both their cost and their characteristicsare concerned -- to the conditions prevailing in eastern Senegal.

To these stands, which helped reconstitutesome of the natural forest cover, can be added the new tree plantationsestablished by rural communities and individualsat reasonable cost and with good yield potential.

The rural forestry experiment conducted through the project has demonstrated that it is possible to teach the rural population how to manage natural resources more economically.

However, at the same time, it highlighted the need for a development program that will consolidatethe overall rural economy, otherwise production activities will continue to involve exploitationof natural resources on an unsustainablescale. The integrated approach adopted through the PICOGERNA program meets this need. - 21 -

PART UII

STATISTICAI INFORMATION

1. Related Bank Loans/Credits

Loans/Credit Title Purpos Year of Approval

Drought Relief Project Bushfire control sub- 1973 Cr. 446-SE project to conserve dry season pasture and retain tree cover.

Sine Saloum Agricultural Promote intensification of 1975 Development Project agricultural practices. Also Cr. 549-SE/ provided financing of rural Ln. 111-SE tree plantations.

Eastern Senegal Livestock Promotion of pastoral groups and 1976 Project assistance for improved grazing Cr. 633-SE and water management techniques and development of firebreaks.

Small Rural Operations Provision of funds to 1980 Project small groups of rural Cr. 991-SE producers for a variety of productive activities, including establishment of woodlots.

Second Agricultural Development of various applied 1990 Research Project research programs, including Cr. 2107-SE a research program for natural resource management. - 22 -

2. Project Timetable

Item Date Date Date Planned Revised Actual

Identification 1979

Preparation 1979-1980 1979-1980

Appraisal Mission 1/1980 4/1980 4/14-5/4/1980

Credit NegotLatlon 1/1981 11/1980 11/21/1980

Board Approval 3/1981 2/1981 2/10/1981

Credit Signature 3/1981 3/11/1981

Credit Effectiveness 7/11 3/1982 7/1/1982 5/1982 Completion 6/86 12/31/1989

Credit Closing 12/1986 12/1987 12/31/1989 12/1988 Comments:

Identification: The Government of Senegal first approached IDA with a request to assist it with reafforestationefforts in 1972. A project identifiedby FAO in 1977 was not deemed adequate for Bank financing because it focussed too much on exploitation rather than afforestationand forest management. In 1978 the Government of Senegal asked IDA to help finance a project for reafforestation and natural forest management. A joint IDA/CCCE reconnaissance mission visited Senegal in February 1979 and recommended that preparation work be started on a project for possible external financing.

Preparation: A Project PreparationFacility of US$50,000 was approved in September 1980. It provided financingfor soil surveys and the establishmentof an accounting system.

Effectiveness: Credit effectivenesshad to be rescheduledthree times because effectiveness conditions were not fulfilled in time. Particular problems arose with the effective establilhmentof an accounting system and the initial deposit of counterpart funds.

Completion: The project's reorientation,the appreciationof the USS and the fact that supplementaryfinancLal sources became available from the preceding FAC/CCCE pilot project made for a much slower disbursement of the IDA credit than foreseen. Because project implementation was satisfactory after the reorientation and because it was deemed that a follow-up natural resource management project could be effectivelyprepared within the frameworkof the ongoing project, credit completion was postponed three times. - 23 -

3. IDA Credit DLiburs-mnts

Cumulative EstLmated and Actual Dlaburements

Bank FY and Estimated Revla d Zat. Actual Actual as % Quarter Cumulative Cumulatlve CumulatLve of Natimated from BAR March, 1983

(US$ million)

FY81 1 0.05 (a) 0.05 (a) 0.05 (a) 100% 2 0.05 (a) 0.05 (a) 0.05 (a) 100%

FY82 1 1.20 0.05 (a) 0.05 (a) 4% 2 2.25 0.05 (a) 0.05 (a) 2%

FY83 1 3.37 0.27 0.30 9% 2 4.82 0.50 0.37 8%

FY84 1 5.07 1.50 0.60 12% 2 5.97 2.00 0.85 14%

FY85 1 6.92 3.00 1.14 16% 2 7.87 4.00 1.29 16%

FY86 1 8.82 5.50 1.57 18% 2 9.30 6.00 2.02 22%

FY87 1 7.00 2.38 26% 2 7.50 3.01 32%

FY88 1 8.00 3.48 37% 2 8.50 4.37 47%

FY89 1 9.00 5.13 55% 2 9.30 6.06 65%

FY90 1 6.73 72% 2 7.99 86%

Date of Last DlsbursementsMay 11, 1990 (b)

Notest (a) Project Preparation Faclilty (b) An undlibursedbalance of SDR 806,437 (US$ 1.05 mllion) was cancelled ln May 1990. - 24 -

4. Project Implementation

Indicator AppraLeal Actual Estimate State Managed Tree Plantatlonst (a) (e)

Land prepared and planted (Zucalyptum)(ha) 2000 1200

ReconversLon (ha) (b) 1300

Pure stands of local specLes (ha) (b) 289

Enrichment (ha) (c) (b) 2154

Llne plantatLons (ha) (d) (b) 300

Pure stand equLvalent of local species 2226

Pilot State-Managed 600 360 Tree Plantations (f) maintenance

Rural Family and Communlty Tree Plantations (g) (h) ha of full stand plantation equLv. 3000 2290 of which eucalyptus 3000 1638

Natural Forest Management

PrelimlnaryWorks (ha) 10,000 (i) Firebreaks and Tree Marklng 10,000 (i) Forestry works 16,000 (i)

Notes: (a) After three plantlng seasons lt became clear that persiatent drought and unfavorable soLls wouldn't allow to achleve the estimated results with industrial Eucalyptus tree plantatlons. Consequently, the project was reorlented from fuelwood and bullding pole productionto the reconstLtutionand protectionof the natural vegetatlve cover ln the gazetted forests of the project area. - 25 -

(b) Due to thls reorlentatlonroplantlng of unsuccessfulEucalyptue stands wlth local species and enricbment of natural forests with local specles became important activities which had not been foreseen at the time of project appraLsal. Consequontly no appraLsal estLmates exlst for these actlvltles.

(c) gnrichment consists of plantlng strips of local specLes at a dlitance of l4x4 metors (as opposed to plantlng ln full stands wlth a dlitance of 4x4 metors).

(d) Line plantations are plantatlons on farmed fields with a dLstance of 50x4 meters.

(e) No revised estimatesfor plantlng and reconverslon were made at the time of the project reorlentation, as it was decided to proceed on an experimentalbasls.

(f) The project was expected to maintain the 600 ha of Eucalyptus tree plantations grown durlng the FAC/CCCE pllot project. However, 240ha of these plantatLons also had to be replanted wlth local species.

(g) At the time of appraLial lt was estLmated that each cm of thne two components would result ln 1,500 ha of plantlng. Actual project results do not allow to dlfferentiatebetween community and family tree plantations, as the data for the Tambaco mnda regLon was not kept separately for the two components.Data from the RaffrLne region lndlcate that approximatelyhalf of a 1 1 plantings were executed by famliles between 1985 and 1987.

(h) At least 1,684,000seedlings were distributedover the duratlon of the project. Accounting for losses and following the BAR assumptionof 625 plants/ha,one arrivesat an estLmate of 2,290 ha of full-standequivalent. In reallty, however, a signlficant share of rural planting was realLzed as strip, infarm and other plantings. Also note that about 2% of trees planted under the rural forestry component were frult trees, not necessarily planted for wood production.

(i) This component didn't effectively start working until 1985. Durlng thli year 234 km of fLre-breakswere reestablished and 187ha of natural forests were enriched. After these LnitLal activities it was, however, declded that further plantlngs should not be undertaken untll a management plan for the Koumpentoum forest was elaborated. The plan was barely fLnished at the time of project completion, so that no further plantings took place under this component. - 26 - 5. Project Costs and Financing ______

A. Project Costs

Appraisal Actual (b) A/E Estimate (a)

US$ million

Civil Works 1.62 0.64 402 Machinery and Vehicles 1.62 1.05 65X Field Forestry Works 4.86 7.28 150? Expatriates and Consultants 4.28 2.99 70Z Other Operating Costs 4.72 4.15 882

Total Project Costs 17.10 16.12 94Z

Notest (a) Contingencies included in each expenditure category (b) Best estimates based on project balance sheet upon closure. Project accounts and audits do not allow to separate costs into domestIs and foreign currency components.

B. Project Financing

Appraisal z Actual X Estimate (a)

US$ million

Government 1.80 10.5? 1.71 10.6? IDA Credit 9.30 54.4Z 7.99 49.6? CCCE Credit 3.40 19.9? 2.17 13.4? FAC 1.80 10.5? 2.05 12.7? UNDP/FAO 0.80 4.7Z 1.39 8.6Z Carried over from 0.00 0.0? 0.37 2.3? previous projects (b) 0.00 0.0? 0.43 2.7? PAM program (c)

Total Financing 17.10 100.0 16.12 100.0?

Notes: (a) Actual financing based on 1989 audit report. The average exchanges rate of the project duration (FCFA 329/$) was applied. (b) Machinery, Equipment, Furniture and inputs from FAC/CCCE pilot project. (c) Value of food from world food programs distribured to participants of rural forestry program. - 27 -

6. Proiect Results

a. Direct Benefits

Indicator Appraisal Xstimated at ZFtimated at Zstimates ClouLng Date Full Development

Rural Forestry area 3,000 ha 2,290 ha 2,290 ha planted (ha of full stand equivalent) (a)

Industrial Plantations 2,000 ha 2,226 ha 2,226 ha ha of full stand equi- valent planted (b)

Natural Forest Manage- 10,000 ha 0 ha 0 ha ment (ha managed) (c)

Wood Production:

- Rural Forestry (d) 192,000 m3 27,330 m3 147,165 m3 - Plantations (e) 192,000 m3 28,447 m3 96,306 m3 - Natural Forests 285,000 m3 0 m3 0 m3

Total 669,000 m3 55,777 m3 243,471 m3

Village NureerLes established NA 240 240 of which autonomous NA 40 NA

Training Seminars NA 112 112 No. of particlpantsin seminars NA 1867 1867

Notes: (a) The appraisalestimate foresaw mainly plantlngsof Eucalyptustrees. The actual plantings in the rural forestry component consist of 71% eucalyptus, 27% local speciesand 2% fruit trees.

(b) The appraiLal estimate foresaw plantings of Sucalyptus tress.The aecual plantlngs conslst of local species. The 1200 ha of Sucalyptus trees whlch were planted and subsequently were replanted wlth local specLes are not lncluded in the above flgure. - 28 -

(a) The natural forest management component never got beyond the establishment of an inventory and a management plan for the Koumpentoum forest. No incremental wood production can thus be expected from the work carried out under this component during the project period.

(d) No figures of actual wood productionare available.The above estimates assumea wood yield of 5m3/ha/year for Uucalyptus and 2m3/ha/year for local species. Fruit trees are assumed to have been planted for fruit production, not for wood production.

(s) Wood yields for local species are assumed to be 2m3/ha/year. Wood yields from the early harvested Eucalyptus tr-ee are assumed to be 2m3/ha/year over 3 years. - 29 -

b. EconomicRate of Return of ProductlonOriented Compononts (State-ManagedPlantations, Rural Forestryand NaturalForest Meonagomnt)

Wood Yield Assumptions(1) ECONOMICRATE OF RETURN IF State-monaged Local Specloo Euealyptus s EucalyptusCutting EucalyptusCutting Euclyptuo state-oanaged Rural In Yoers 5 10,15 In Years 6 11,16 Plantations(2) nnd rural Plantatlons Locel Specleo In Local Sp eoe In plantations(3) (3) t yoer 20 (4) year 20 d8/ha/yr m8/ha/yr m3/ha/yr

2 2 5 0.7# 1.0X 2 2 a s 1.7X 2.0# 2 8 6 2.1X 2.8x 2 8 6 2.9X .2X 8 2 6 0.8X 1.1# 3 2 6 1.8X 2.21 a 8 5 2.2X 2.4# s 8 6 : 8.1X 3.S#

Notes: (1) No projectdate on actuallyachlevd or expectedwood yllds Is available theroforethe ERR'is calculatedunder variousassumptions. Likely scenariosappear to bo wood yields of 2,2,658/heor 2,2,e 8/ha for each of the above categorlo. The most likelyERR Is thus about 1X. (2) It Is assumedthat Eucalyptuetreo planted In state managd plantations at the beginning of the projectyielded 2a8/ha/yoar for three years beforethey hod to be replaced. (3) Woodyields per ha of full-standequivalent (625 plants/ha). (4) Scatteredobservations In the project ares see to indicat, that thie Is the more likelycutting schedule. The other schedule(6,11,16) was assoumdIn the SAR. (5) Project costs of tho forestrycomponents were derivedfro audit reports. They are likely to be understimatedbecauso audit reportsonly accountfor amortizationof vehicleo machinery, equlpment and infrastructure,not actualexpenditure. CGenrally,the someforofgn exchange compononts as In the SARwere assumed. The foreign exchange premium ued is 401. (6) The data avallablo do not allow to calculate ERRofor individual components. The overall ERR io obviouslyquite heavily Influencedby expenditureon the naturalforest *onagement componentwhich did not yield any directlymeasurable output during project lmpleentation. (7) Due to lock of data the above calculationsIgnore benofits other than wood yields. The above calculotionsalso assumethat fruit tres were plantedfor the fruit and not for wood production.Their wood ylolds are thus not taken Into consideration.Fruit troe plantationsamount only to 1.90 of rural plantations. Foregoneproduction on land on which farmersplanted their tree In Ignored, but It can be arguodthat benefitsfrom incroosedyields from productionbetween newly planted tree line my just about net out forgone production on other land. (8) It Is assumedthat 80X of wood yields from Eucalyptusare used for buildingpoles and 20X for firewood.In the case of localspecies it Is assumedthat 90X of wood yields are ue d for firewoodand 10X for building poles. (9) Due to lack of projectdata the economicprice of wood io adjustedfrom the SAR. It io calculated In 1989 prices with a for*'gn exchangepremium of 40X whero rolevont. All othor assumptionspertaining to the economicprice of wood are unchangedfrom tho SAR. The adjustedeconomic price of buildingpoles Is about CFAF 20,600per mg and CFAF 14,200per m3 of fu-lwood.

,-W 7. Status of Covenants

Section No. of Credit Covenant Status Agreement

Sect. 3.01 The borrower should carry out the Project through Complied with the Forestry Department. Sect. 3.02 (a) Director of Forestry Departmentassisted by an Complied with until 1985 when expatriate economist. economist left and was not replaced. (b) Project Operationsunit at KAFRINE Complied with (c) Project provided with: - Operations Manager Complied with - Forestry Technical Adviser Complied with until 1983, when position was abandoned with agreeient of donors. - Finance Expert Complied with until June 1985. - Natural Forest Management Specialist Complied with. - Workshop Manager Complied with. - Forestry Researcher Complied with. (d) - Counterpart to the Economist Complied with - Counterpart to the Expert in Charge of Finance Complied with. and Administration. - Counterpartto the Forestry Researcher Compliedwith. - Counterpart to the Forestry Training Specialist Compliedwith. (e) Borrower makes annual budgetary allocations to Partially complied with, often significant cover operating costs delays in disbursement of counterpart funds, leading to cash flow problems in project unit. Sect. 3.03 (a) Project accountwithin the Borrover'sTreasury. Compliedwith (b) Initial deposit Compliedwith, after CCCI financing. Sect. 3.04 Consultants Compliedwith. Sect. 3.05 (a) Insurance Compliedwith (b) Goods and services to be used exclusivelyfor the Compliedwith. Project. 7. bPratusof Covenants (Cont'd.)

Section No. of Credit Covenant Status Agreement

Sect. 3.06 Borrower provides IDA with; (a) Plans, specifications,reports, contract documents Mostly compliedwith. work and procurement schedules (b) Program of the works and documentsin connection Complied with with studies (c) Records, visits and information Partially compliedwith. Frequent delays and incompleteness (d) in record keeping. Half-yearlyprogress report Complied with. (e) Completion Report Not complied with. (f) Publicity on awarded contracts Compliedwith Sect. 3.07 Acquisitionof land necessaryto carry out Project. Complied with Sect. 3.08 Seedlings provided to farmers at cost Only complied with towards end Sect. 3.09 Provision of Pro;ect. of machinery and equipment to rural Partially complied with. comaunities upon partial repayment from proceeds of wood sales. Sect. 4.01 (a) Separate accounts H for POU Partially complied with, often significant delays and inexactitude. Establishment of accounts often left to auditors, absence of analytical (b) accounting. Retention of all records Compliedwith. Sect. 4.02 Auditing Compliedwith Sect. 4.03 Maintenanceof roads, facilities,equipment and Compliedwith. vehicles. Sect. 4.04 (i) Review of the stumpagepricing policy not Study on price/taxpolicy completed, not later than December 1982. though with delays. (ii) Raise of the currentprices of wood cutting Price raised in 1987, but significantly permits by the end of the project to less than stipulated. approximately 302 of sale price. - 32 -

8. Use of Bank Resources: ______

A. Staff Inputs

FY80 FY81 FY82 FY83 FY84 FY85 FY86 FY87 FY88 FY89 FY90 FY91 Total

Preparation 4.1 4.1 Appraisal 32.1 14.6 46.7 Negotiation 0.7 0.7 Supervision 1.5 11.0 7.3 7.3 7.8 5.3 9.5 8.2 6.7 2.5 0.1 67.2 Other 0.9 7.9 0.4 0.1 0.8 0.7 10.8

Total 37.1 24.7 11.4 7.4 7.3 7.8 6.1 10.2 8.2 6.7 2.5 0.1 129.5

Note: No MIS .nformationis available for FY79 during which the identificationmission and other preparationwork took place. D. MISSIONS

Perforeance Rating mbnthl No. of Days in Specialization Pyp. of Year Persons Field LeDresented (a) Status (b) Trend tc) Problems (d) Identification 02179 1 8 PS Preparation 1 09175 1 3 PS Preparation 2 11/79 1 7 FS Preparation 3 04180 1 1 VS Appraisal 04180 4 20 PS, VS. FT. E Post Appraisal 1 02/81 1 2 PS Supervision 1 el 07181 1 3 VS - Supervision 2 10/81 1 3 VA - Supervision 3 e/ 06/82 2 3 VS. PA - Supervision 4 11/82 1 4 E - Supervision S el 03/83 1 7 FS 2 Supervision 6 el 11183 2 MV 2 9 FS, VA 2 Supervision 7 11/84 2 HFT 1 1 VS - Supervision 8 e/ 01/85 2 11 PS, FA 2 Supervision 9 el 2 MFT 12/85 1 7 VS 2 Supervision 10 e/ 01/87 MV 2 6 FS, VA 2 Supervision 11 04/87 FT 2 4 VS 2 Supervision 12 el 12/87 1 7 VS 2 Supervision 13 f/ 05/88 MY 2 7 VS, LS 2 Supervision 14 el 12/88 MV 1 7 VS _ Supervision 15 e/ 01/90 1 6 VS 2 MF

(a) FS - Forestry Specialist VT - Forestry Training Specialist E - Economist VA - Financial Analyst LS - Livestock Specialist

(b) Statuss 1 - Problem Free or Minor Problems 2 - Moderate Problem 3 - Major Problems (c) Trend: 1 - Improving 2 - Stationary 3 - Deteriorating

(d) Types of Problems:F - Financial H a Managerial T - Technical P - Political 0 - Other.

(e) Full SupervisionMission; carried out jointlywith CCCE. Above figuresonly includeIDA staff time.

(f) Combinedmission for identificationof follow-upproject and supervisionof ongoingproject. c:\wpSO\doc\mhsenpcr.tab Caleulation of WVodYtolds for Industrial Plantations Total wood production (full grown): Eucalyptusyields: 2 aS/ha/yearfor 3 years Eucalyptus: 7,248 Local speciesyiolds: 2 m3/ha/yoarfor 26 years Local specioe: 89,058 Total: 96,366

Year 1982 1983 1984 1986 1986 1987 1988 1989 Total

Eucalyptus(ha) 266 442 458 116 1,208 wood yield yr1 400 884 9g0 232 2,416 yr2 400 884 906 232 2,416 yr3 406 84 906 232 2,418 7,248

Reconverted 28J 820 460 2d6 1,806 (diet. 4x4) Localspecies so 166 10 11 32 289 pure tands (dist.404)

Enriched 196 618 56m 56 340 2,154 (diet. 414)

FormPlantfag 306 3' (diet NWx4)

Full standequivalent a * Go 242 408 473 024 371 2,226 of local species Wood yield local 0 * 106 44 932 947 1,249 742 4,45U speciesyrl 0 a 200 967 1,864 1,894 2,498 7,423 yr2 * 0 206 967 1,864 1,894 4,926 yr8 0 0 206 907 1,864 3,031 yr4 0 6 20 967 1,167 yr5 0 6 206 206 yre 6 0 Totalwood loel op. 21,199 Totalwood yield 28,447

------~~1 Calculationof Wood Yieldsfor RuralPlantations

Totalwood yields (fullgrown) Eucalyptuswood yiold: 6 .3/ha/year for 15 years Eucalyptus: Localwood yiold 122,828 2 .3/ha/yoar for 20 years Local Species 24,337 Total 147,165

Year 1983 1984 1985 1986 1987 1988 1989 Total no. of sedlings 61,600320,0W 287,006 190,000 285,000 261,000 310,000 1,664,000 ha equlvalent 83 436 390 268 860 341 422 (625 plants/ha., 2,290 85Xof sedlings planted)(1) X of Eucalyptus 106s 95X 8SX 76X esx s0X 6eX 71.5X ha equivalent 83 413 332 194 incr_mental 234 171 211 1,688 woodproduction 415 2,087 1,869 969 1,171 853 (ass. 5.3/ha/year) 7,136 X of local species es 5X 13X 23X 33X 47X 471 27X ha equivalent 0 22 61 S8 117 161 199 608 incremental wood production 0 44 101 117 236 323 (ass 23/ha/yer) 820

X of fruit t 0.0 OX 2.061 2.4X 2.41 2.7X he 2.9X 1.9X equivalent 0 0 a 6 9 9 12 44

Total wood production 0 415 2,526 4,28S 6,872 6,778 7,964 27,330

Notes: (1) Ihile it is known how manyplants wereactually planted in the Krffrine region,It Is only knownhow many were distributed in Tabacounds, to account for losse only 65Xof seedlings*r, considered.

1xl 37 ANNEX3

PARCE PROJECT RURALFORESTRY COMPONENT VILLAGE NURSERIES

1985 1986 1987 1988 1989

Kaffrine:

No. of Nurseries 8 90 157 186 204 No. of Plants Produced 8228 155059 244651 229000 270500 X of Eucalyptus 85 76 69 50 50

Tambacoundas

No. of Nurseries 0 NA 33 50 NA No. of Plants Produced 0 17499 49487 62300 NA I of Eucalyptus 0 71 48 54 NA

Total:

No. of Nurseries 8 NA 190 236 NA No. of Plants Produced 8228 172558 294138 291300 NA v of Eucalyptus 85 75 65 51 NA

Note: The rural forestry program started in 1983 but production of plants in village nurseries ald not start until 1985. RURALFORESTRY COMPONENT Plantingsby Tro. Type and Planting Arrangemnt in the KaffrinoRogion

Year EUCALYPTUS LOCALSPECIES FRUIT TREES TOTAL Co_munity Fnmily Coemunity Family Coemunity Family Comunity Family 1983 18,600 34,600a 0 I 0 1964 NA 0 28,6" 34,60 NA NA NA NA NA 168,760 1981 185,882 93,419 22,576 88,126 2e,262 0 0 k2S,178 113,7W1 196 70,484 46,348 21,448 14,528 544 1987 1,307 92,476 61,183 94,69W 64,900 34,400 22,700 G6M 2,300 1968 68,411 129,960 89,886 63,866 44,449 34,679 2,723 2,998 156,683 1960 71,742 06,813 91,633 62,817 68,096 8,630 2,603 127,689 128,412

w w l ATTACHMENT 1 - 390 Page 1 of 2

COMMENTS FROM CCCE

World Bank Paris, March 15, 1991 Washington, D.C.

Attention: Mr. Graham Donaldson Division Chief, Agriculture,Infrastructure and Human Resources, Operations Evaluation Department

Refs.: Your letters of February 25 and March 14, 1991

Re: Project Completion Report, Forestry Project (Credit 1103-SE)

Dear Sir:

I read your draft Project Completion Report on the PARCE (Project for Forest Management and Reforestationin Senegal's Centre-Est)with interest.

CCCE evaluated this project at the end of 1988, and the resulting April 1989 report will have been forwarded to you. In the main, we concur with your conclusions.

It could have been indicatedunder "Background"that the PARCE was preceded by two generationsof forestry projects. Like these, it focused on reforestationusing exotic species and applying the results of tropical forestry research which, in Senegal as in other Sahelian countries, revealed their shortcomingsin the following two areas:' the behavior of eucalyptus when grown in the soils of the region, and planting cost control.

Like subsequent projects, PARCE also provided for forest management activities and rural forestry. The former were unsuccessful because of a lack of experiencewith the preparationof simplified management plans, and the latter served to confirm how important extension activities were to tree-growingin farming areas.

1/ These errors have been partly offset by timely experimentswith Sahelian forest species for restockingplantations. - 40 - ATTACHMENT 1 Page 2 of 2

The project also foreshadowedfuture projects, which nowadays emphasize multipurposeforest management (i.e., agrosylvopastoralism)and the involvementof local communities. This is currently viewed as the most promising approach for the long-termmanagement of the remaining forest stands in Africa.

Nevertheless,it requires changes in forestry policy with regard to legislation (with local authoritiesassuming real responsibilityfor the forest resources on their lands) and the various subsectors (i.e., wood processing, the self-financingof management areas, and the terminationof extraction outside the management areas), following the pattern applied.in Niger, for example. Currently, this approach is ruled out in the case of Senegal (possiblybecause of the charcoal producers' lobby, which is not referred to in the report by the Directorate of Water Resources and Forests).

Finally, the example of the PARCE shows that henceforth land use planning (am6nagementdu territoire) must be regarded as an essential basis for the management of forests as ecological reserves (safeguardingwatersheds, water resources, farmland, timber, etc.), in view of current trends toward overpopulationand the degradationof natural resources.

Very truly yours,

/s/ J.C. Deveze - 41 - ATTACHMENT 2 COMMENTS FROM FAC

DATE: March 12, 1991

FROM: Ministry of Cooperationand Development: DEV/RUR-H

TO: World Bank

ATTENTION: Mr. C. Donaldson Division Chief, Agriculture, Infrastructureand Human Resources, Operations Evaluation Department

RE: PARCE Project Completion Report (Senegal)

We have received your Evaluation of the forestry project implemented in eastern Senegal, and have no particular comments to make. As regards the conclusions referring to the desirabilityof a shift from production activities toward a forest management approach involving local communities and taking account of other users (i.e., pastoralists),these issues are addressed in the PICOGERNA (NaturalResource Conservationand Management Project), which we are cofinancing.

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