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