Forest and Wildlife Enterprise

Piloting REDD+ in the Bale Eco-Region of : strengthening community and regional level institutional capacity for Natural Resource governance project

Nine Months (January 01 –November 30, 2013) Activity and Financial Report

FARM-Africa – SOS Sahel Ethiopia Participatory Natural Resource Management Partnership

and

Oromia Forestry and Wildlife Enterprise (OFWE), Bale and Arsi branch Enterprises

Reporting to: The Royal Norwegian Embassy

December, 2013

Acronyms/ Abbreviations BERSMP Bale EcoRegion Sustainable Management Programme BOA Bureau of Agriculture CBO Community Based Organisation CCBA Climate Community Biodiversity Alliance CDM Clean Development Mechanism COP Conference of Parties CPA Cooperatives Promotion Agency CRGE Climate Resilient Green Economy CSA Carbon stock assessment DA Development Agent FCPF Forest Carbon Partnership Facility FMG Forest management Group FPIC Free, Prior, and Informed Consent IDESAM Institute for Conservation and Sustainable Development of Amazonas JFM Joint Forest Management MA&D Market Analysis and Development MOU Memorandum of Understanding NCRC Nature Conservation Research Centre NGO Non Government Organization NTFP Non Timber Forest Products OCAT Organizational Capacity Assessment tool OFWE Oromia Forests and Wildlife Enterprise PDD Project Design Document PFM Participatory Forest Management PNRMU Participatory Natural Resource Management Unit REDD Reduced Emissions from Deforestation and Degradation R-PP Readiness Preparation Proposal S&MFE Small and Medium Forest Enterprise SNNPRS Southern Nations Nationalities Peoples regional State TOT Training of trainers VCS Verified Carbon Standard

Table of Contents 1. Project background information ...... 4 2. Executive Summary ...... 5 3. Introduction ...... 6 4. Major achievements of activities during the reporting period (January – September 2013) ...... 7 3.1. Outcome 1: Forest adjacent communities engaged and their actions and support for REDD+ practiced and sustained ...... 7 3.2. Outcome-2 Organizational and managerial capacity of community based organizations enhanced...... 23 3.3. Outcome-3 Small & Medium Forest Enterprises (S&MFEs) established...... 26 4. Assessment of the efficiency of the project ...... 28 5. Assessment of the result/impact in relation to the planned purpose ...... 28 6. Constraints ...... 28 7. BUDGET utilization ...... 29 8. Annex 1: Activities analysis – progress against plan (January 01, 2013 – October 30, 2013) ... 30 9. Annex 2: Financial Report (January 01 – October 30, 2013) and Liquidity forecast for Six Months (December 01, 2013 – May 30, 2014) ...... 33

List of Figures and Tables List of figures Figure 1 Location map of different divisions of BMERP ...... 6 Figure 2 OFWE DG presenting on Oromia REDD+ project & Workshop participants ...... 10 Figure 3Trainees during theoretical session ...... 14 Figure 4 Community during the experience exchange visit ...... 18 Figure 5 Community meeting for Bale REDD+ FPIC process ...... 21 Figure 6 Sample community representative signature for positive consent ...... 22

Lists of Tables Table 1 Workshop Participants ...... 8 Table 2 Participants of Carbon stock assessment training ...... 11 Table 3 Number of woreda development extension workers trained on FPIC ...... 11 Table 4 Community members trained and Engaged on Carbon Stock assessment ...... 13 Table 5Community training participants ...... 13 Table 6 Participants of the Humbo CDM project ...... 15 Table 7 Kebele level community meeting participants for Bale REDD+ FPIC process ...... 20 Table 8 Community & government staffs participated on FPIC training ...... 21 Table 9 Participants of FPIC second round training ...... 23 Table 10 Lists of JFM CBOs supported ...... 24 Table 11 Participants of - experience exchange visit ...... 26

1. Project background information

Project Name: Piloting REDD+ in the Bale Eco-Region of Ethiopia: strengthening community and regional level institutional capacity for Natural Resource governance project

Project implementing partners FARM-Africa – SOS Sahel Ethiopia and Oromia Forestry and Wildlife Enterprise (OFWE),

Reporting Period: January 01, 2013 – September 30, 2013

Donor The Norwegian Embassy

Project duration: January 2013 – December 2015

Project Location: Oromia Regional State, Bale and West Arsi zones, 16 Woredas

Project Partners: Council of the Regional State of Oromia, Oromia Forest and Wildlife Enterprise and Regional Bureau of Finance and Economic Development

Project Goal: to make significant contribution to enable Ethiopia to realize its Climate Resilient Green Economy strategy at grassroots level

Project Purpose: REDD+ scheme established in the through institutional support to community and regional level bodies

2. Executive Summary 1. The Piloting Reducing Emission from Deforestation and Forest Degradation (REDD+) in the Bale Eco-Region of Ethiopia: strengthening community and regional level institutional capacity for Natural Resource governance project has been developed to curb deforestation and forest degradation in the Bale Mountains Ecoregion of Ethiopia. Despite the delay in starting the implementation on the ground it has shown a significant progress over the last one year.

2. Capacity building support provided forest dweller communities and the government partners for the implementation of the future REDD+ activities. The capacity building was through on job training, classroom theoretical & field practical trainings, experience exchange visit to forest carbon project site in Ethiopia for local experts and community forest management cooperatives. The project also supported Oromia Regional state relevant officials to participate and learn more on different scales (national, Jurisdictional/sub-national and project) of REDD+ dynamics. Accordingly, Oromia Regional State Vice President & Bureau of Agriculture head, OFWE Director General and Deputy Director General) were supported to participate on Jurisdictional Nested REDD+ exchange workshop in Brazil and COP 19 in Warsaw, Poland.

3. As a social safeguard strategy, FPIC has been conducted in the Bale REDD+ project area. It was conducted in 62 kebeles of the Bale Ecoregion where ca 12,000 local community forest management cooperative members participated. During the discussion the detail nature of the project and the benefit sharing modalities were explained to the community and community raised many questions and concerns where detail explanation was given. Finally, the community have given their consent for the implementation of REDD+ project in the Bale Mountains’ forest.

4. Joint Forest Management CBOs in the Bale REDD+ project area/s were supported for institutional and managerial capacity enhancement. The supports were delivered with the initial organizational capacity assessment tool (OCAT) development through which the capacity gaps will be identified for future support strategy. The tool was developed to be used by the government and project staffs for the JFM CBOs capacity assessment. Trainings were also provided to government partners and project staffs on the how to use the tool.

5. Partnership with the Rainforest Alliance (RFA) was also established for Bale Forest certification and future collaboration on the sustainable marketing of the certified coffee. The RFA Ethiopia office has provided trainings to government and project staffs on the processes of coffee certification.

6. In spite of the delayed start of the project implementation on the ground, the current status of the activities implementation indicated that the project is progressing well. From this it can be concluded that the project will finalise as per its plan of original commitment.

3. Introduction Piloting REDD+ in the Bale Eco-Region of Ethiopia is a new project which builds on the solid experience and foundation of the Bale Eco-Region Sustainable Management Programme (BERSMP). The project is proposed by Farm Africa and SOS Sahel Ethiopia in order to continue to support Oromia Forest and Wildlife Enterprise (OFWE) pilot implementation of the first REDD+ project in Ethiopia.

The project is proposed to run for 3 years (2013 - 2015). The REDD+ pilot will be the first in Ethiopia and represent a centre of learning for Ethiopia and beyond. The Bale REDD+ pilot will use PFM as a basic strategy to implement the REDD+. The pilot project will strengthen the human and institutional capacities of FMGs, OFWE, the CPO and other relevant actors, in REDD+ cooperative management and business management

The project will target the previous woredas where the BERSMP has been working. The effective REDD+ project area for carbon market is estimated to be 260,000 hectares of forest. The project will focus on three core areas: establishing REDD+ systems, promoting forest based Small and Medium Forest Enterprise business development, and strengthening REDD+ community based organizations.

The project will have multiple roles. It will set a benchmark for REDD+ projects in Ethiopia, generating lessons, knowledge and skills that will be useful for future REDD+ actions in Ethiopia

Figure 1 Location map of different divisions of BMERP

. 4. Major achievements of activities during the reporting period (January – September 2013)

3.1. Outcome 1: Forest adjacent communities engaged and their actions and support for REDD+ practiced and sustained 3.1.1 Set up OFWE REDD unit 3.1.2 Organize training, workshops, panel discussion, forums to increasing awareness and understanding about climate change and the objectives of REDD+ 3.1.3 Organize various capacity building actions to enable government to acquire skills needed to implement REDD+ 3.1.4 Organize various capacity building actions to enable community to acquire skills needed to implement REDD+, with equal involvement of men and women and secure FPIC 3.1.5 Identify risks in REDD+ to local communities and implement appropriate social safeguards 3.1.6 Clarify carbon rights and revenues (between government and communities, and within the community) , especially between men and women) 3.1.7 Facilitating negotiation transparent benefit sharing of carbon credit revenue according to agreement

3.1.1. Set up OFWE REDD unit As it is known, REDD+ concepts and ideas are new to Ethiopia that most of the relevant institutions will be facing the challenges. Currently, except the federal level REDD+ secretariat, no particular unit/department is established to develop and implement REDD+. To support government and community, the Bale REDD+ is working towards establishing the OFWE and JFM CBO REDD+ unit for successful implementation of the REDD+ at all levels.

Towards this end, discussion has been started with OFWE and the enterprise has assigned REDD+ focal person at zone and headquarter level. As per the discussion, OFWE has agreed to establish REDD+ at directorate level under the technical deputy Director General. At the community forest management level, currently the project is working towards establishing a unit/committee under the JFM/REDD+ CBOs. After the establishment of the JFM union & Federation the unit will be established at all levels of the community forest management structures.

3.1.2. Organize training, workshops, panel discussion, forums to increase awareness and understanding about climate change and the objectives of REDD+

Awareness creation and Bale REDD+ inception workshop conducted: Awareness creation and Bale REDD+ inception workshop was conducted in the Bale Eco-region, town for two days. The workshop participants were drawn from both Bale and West Arsi zones relevant government offices, 9 woredas government offices, Meda Walabu University, Agriculture Research Centre, Frankfurt Zoological Society (FZS) and Bale mountain national park.

The objectives of the workshop were:  Introduction of the new piloting REDD+ in the Bale Eco-region  Introduction of the basic concepts of climate change in relation to REDD  The impacts of climate change  Introduction of Free Prior Informed Consent (FPIC)/ stakeholder consultation

Table 1 Workshop Participants Organization/woredas/zones Number of participants Remark Male Female Total West Arsi OFWE & Admin. 10 0 10 woreda 3 0 3 woreda 2 0 2 Agarfa TVET 1 - 1 woreda 2 0 2 Sinana ARC 2 0 2 Goba woreda 0 1 1 Harenna B. woreda 3 0 3 Dodola woreda 1 0 1 woreda 2 0 2 Oromia Forest and Wild Life 6 0 6 enterprise, Bale Branch University 1 0 1 (MWU) Adaba woreda 2 0 2 woreda 1 0 1 Total 36 1 37

During the workshop, presentations were made on Introduction to Climate change and REDD+, the status of Bale REDD+ Project Design Document (PDD) development, and ideas & objectives of Free, prior, informed, consent (FPIC) with regard to REDD+ implementation. Following the presentations on the above topics, different questions were raised and answers were given.

After the questions, detail discussion was also held on the “How to implement REDD+ in the Bale Ecoregion”. The discussion was led by the Agarfa TVET dean and Agriculture Development head. The main issue discussed was how to control illegal settlement in the whole of Bale Ecoregion forest for the successful implementation of the proposed REDD+ project. The illegal settlement challenge is in and Nensebo woredas where people from Hararghe, Southern Nations nationalities Peoples Regional state (SNNPRS), Arsi, North Shewa of Oromia were frequently visiting the area for establishing new settlement in the forest.

All the participants agreed to stop illegal settlement and further conversion of forest land into agriculture as the main driver of deforestation conversion of forest land into agriculture. It was also mentioned that particular attention should have to be given to the above mentioned forest woredas by all stakeholders.

Finally, the Bale Zone Administration representative, Ato Beyene Zembaba, stressed that all the stakeholders at all levels should have to give due attention to the success of the Bale REDD+ initiative as it is one of the Ethiopia’s strategy to achieve the green development. He also underlined that the woreda and community level stakeholders should collaboratively work in an organized way to stop illegal settlement as they are living nearby the problem.

Government officials supported to participate on COP 19 meeting: In 2014 the Nineteenth Conference of Parties (COP19) under the UNFCCC was undertaken from November 11 – 22, 2013 in Warsaw, Poland. During the meeting different countries head of states, delegates, experts, civil society organizations, and indigenous communities participated.

Farm Africa / SOS Sahel Ethiopia has been supporting relevant government officials and experts to participate on COP15, 16, 17 & 18 meetings. In this year the organizations through the Bale REDD+ project financed the participation of two government officials (Oromia Regional State Vice President & BOA head and the OFWE director general) and two project staffs to participate on the COP19 meetings in Warsaw, Poland.

The objective of the support for the officials was for them to understand the status and nature of climate negotiations, particularly REDD+, at the global level so that they can contribute to effective implementation of REDD+ at local level. The idea of inviting both officials from forestry & Agriculture sector was also to link the landscape nature of current inclination of the international community to support the implementation of REDD+ at landscape level which is about consideration of different land uses types. During the period, they have also participated on a global Landscape forum side event which was about REDD+ at landscape.

During the conference, the group attended various side events related to REDD+, Agriculture, climate finance, climate smart agriculture and first of its king global landscape forum. As per the participant perceptions, it was very useful for them, particularly for the Vice president & Head of BoA as it was his first time exposure to COP meetings, to understand climate change, REDD+, nature of the negotiations, different groups of negotiators from developing & developed countries, ... It was also an important event that has increased the capacity of the participants for the real implementation of their own policies relevant to climate change in general and the REDD+ in particular.

REDD+/PFM experience exchange visit to India conducted: In October 2013, Farm/SOS Sahel Ethiopia in collaboration with ministry of Agriculture organized PFM and REDD+ study tour to India. The group which was led by Amhara regional state vice president and head of regional agriculture bureau consisted senior officials from ministry of Agriculture, Oromia, Amhara, Southern Nation and Nationalities and Benishangul Gumuz regional states. The Bale REDD+ project has supported the participation of OFWE director General (DG) and Bale REDD+ field team leader.

During the visit, the team had the opportunity to learn more on forest related policies, strategies programmes and projects of the country. Moreover, the group visited community managed forest areas under joint forest management regime.

3.1.3. Organize various capacity building actions to enable government to acquire skills needed to implement REDD+

Government officials attended South-South Jurisdictional and Nested REDD+ (JNR) Exchange Workshop: The Bale programme has been supporting the federal and regional government bodies for REDD capacity building through technical advice, REDD+ information sharing, organize REDD+ related international exchange visits and on job training. The Bale REDD+ project also continued supporting the government higher officials and technical staffs through various capacity building strategies.

Towards this end, Farm/SOS, Bale REDD+ project in partnership with the World Bank, through the Forest Carbon Partnership Facility (FCPF) supported OFWE Director General (DG), Deputy Director General (DDG) and Farm Africa / SOS Sahel Ethiopia REDD+ Programme Coordinator participated in JNR workshop in Manaus, Brazil. The workshop was organized by The Institute for Conservation and Sustainable Development of Amazonas (IDESAM), the Verified Carbon Standard Association (VCSA) and the State Center on Climate Change of Amazonas (CECLIMA) which was held between June 12-15 in Manaus, Brazil to facilitate cross learning between Jurisdictional and Nested REDD+(JNR) initiatives and actors. The main goal of the event was to conduct a technical workshop for exchanging actionable information and lessons learned among countries and jurisdictions that are moving forward with structuring jurisdictional approaches on REDD+. During the workshop different countries experiences were presented under three major topics which was followed by a panel discussion and field trip as indicated below:

1. Program approaches to effectively reduce/remove emissions 2. Institutional arrangement and political issues 3. Baseline and Monitoring: Data acquisition and use 4. Panel discussion on financing for Jurisdictional REDD+ 5. Field trip to Tumbiras to visit FAS Bolsa Floresta REDD+ project

The OFWE Director General, Ato Didha Dirriba presented the Oromia REDD+ experience in general, the Bale REDD+ in particular in relation to topic 2 “Institutional arrangement and political issues”.

Figure 2 OFWE DG presenting on Oromia REDD+ project & Workshop participants

The workshop was very useful for OFWE officials as currently OFWE is developing a JNR program/ Oromia Emission Reduction Program.

On Job training on Carbon stock assessment: NCRC provided refreshment training on carbon stock assessment for 16 forestry experts drawn from Eight branches of Oromia forest and wild life enterprise. The trainees acquired skills through learning by doing as a result of their involvement in the Bale REDD+ carbon stock assessment for two months which was backed by refreshment theoretical trainings. In this exercise, six additional experts from woreda environmental protection, land use and administration also took part .

Table 2 Participants of Carbon stock assessment training Number of Attendants Organization Male Female Total OFWE Bale branch 4 - 4 OFWE Borena Branch 1 - 1 Finfinne branch 1 - 1 Hararge branch 1 - 1 Iluababora branch 1 - 1 branch 2 - 2 Arsi branch 4 - 4 Wollega branch 2 - 2 Woreda Environmental 6 - 6 protection, Land use & Administration offices Total 24 24

Training on Free, Prior, informed, consent, Climate change & REDD+: When REDD+ is being implemented, it is very crucial that the all ranges of stakeholders, particularly local communities, should be consulted and their consent for the REDD+ project be secured. To conduct the FPIC work in the field in all the REDD+ project kebeles, training was organized for four days of which two days were for theoretical and two practical sessions trainings for woreda government extension workers on Free, prior, informed, consent (FPIC), climate change and REDD+. The training was delivered to the extension workers drawn from Bale and Arsi forest and wild life enterprises branches and key stakeholders from ten woredas of both zones. The trainings were organized at district level taking into account the existing cluster based operation of OFWE. The number of participants attended the training were 69 (67m& 2F) as indicated in the following table. Table 3 Number of woreda development extension workers trained on FPIC

Woreda Cluster Number of trainees Duration Remark Male Female Total of the training Nensebo Adaba-Dodola 13 0 13 13-16/06/2013 Kokosa Adaba-Dodola 4 0 4 13-16/06/2013 Dodola Adaba-Dodola 9 0 9 13-16/06/2013 Adaba Adaba-Dodola 4 0 4 13-16/06/2013 Mada Wolabu Mena-Angetu 2 1 3 11-13/06/2013 Delo Mena Mena-Angetu 6 0 6 11-13/06/2013 Harena Buluk Mena-Angetu 8 0 8 11-13/06/2013 Gololcha Kubayu 5 0 5 11-13/06/2013 Goro-Bele 6 1 7 11-13/06/2013 Goba Aloshe-Batu 4 0 4 11-13/06/2013 Agarfa Aloshe-Batu 3 0 3 11-13/06/2013

Total 67 2 69 The trainings were on the following topics:  Basic concepts and principles of Free, Prior and Informed Consent  Why is Free, Prior Informed Consent Important  Elements of Free, Prior and Informed Consent  How to explain FPIC to community

Particularly the key elements of the FPIC were clearly explained to the trainees to make sure that they will be back to the community with the right ideas. Finally the trainees were oriented to follow the 10 step plan of REDD+ projects FPIC which include the following steps: Step 1: District and Village Level Awareness Raising about the project; Step 2: Establishment of a Grievance Mechanism to Allow for Objections to be Filed Step 3: Recruitment of Interlocutors that can be Messengers to all Citizens Step 4: Interlocutor Training on the Project Step 5: Villages Meeting Preparation Step 6: Villages Meetings and Awareness-raising Step 7: Village Decision-making Event Step 8: Recording of Decision over the project Step 9: Documentation and Reporting Step 10: Verification and Evaluation

After the comprehensive training delivered to the woreda and kebele level government, the trainees have gone back and delivered similar trainings for community representative. At final stage community consultation in the 61 project kebeles was conducted by the community representatives and kebele level development agents with the support of project staffs and woreda level government staffs.

3.1.4. Organize various capacity building actions to enable community to acquire skills needed to implement REDD+, with equal involvement of men and women.

Community Carbon stock assessment on job training conducted: During the carbon stock stock assessment for the Bale REDD+ PDD development, community representatives were participated. The idea of the participatory carbon stock assessment was for capacity building of the community that they can do the monitoring themselves with the support of government offices and it was also for the community to feel ownership responsibility for the project.

Accordingly, twenty one community members from Berbere, Goba, Harena buluk, Medawalabu, Nensebo and Agarfa woredas with relatively attended carbon stock assessment training held at Goba. The training was delivered by NCRC. Up on completing both theoretical and practical training, community representative were engaged in the carbon stock assessment with technical government inventory team from April - July, 2013.

Those community members who participated in the CSA work got the necessary skills and knowledge on the practical work of the inventory. :

Table 4 Community members trained and Engaged on Carbon Stock assessment Woreda Number of Participants Male Female Total Barbere 4 - 4 Goba 2 - 2 Harena Buluk 4 - 4 Meda walabu 4 - 4 Nensebo 2 - 2 Agarfa 5 - 5 Total 21 - 21

Concept of REDD+ and Community based Participatory carbon stock assessment conducted: It is a requirement for REDD+ to participate the local community from planning to implementation of its activities.

Towards this end, the Bale project organized a five days training for community forest management cooperative members on concept of REDD+ and participatory carbon stock measurement. The participants were drawn from 10 forest woredas of the REDD+ project area.

This was to help them mainly understand what, how, to measure the carbon stock which will help them during monitoring activities.

This training created basic understanding of REDD+, carbon stock assessment and how that relates to emission reduction calculation.

The topics covered during the training included:

1. Climate change and Role of forest 2. What are carbon pools and why we measure each of them? 3. Key steps in on site carbon stock assessment 4. participatory forest boundary demarcation and map preparation, 5. Forest area stratification, 6. Decision of the carbon pool to measure, determination of sample plots, determining measuring frequency, shape and size of sample plot

The training was conducted in a local language using simplified approach for the communities to easily understand

Table 5Community training participants Woredas No of Participants Remark male female Total Agarfa 111 18 129 Goba 62 56 118 Gololcha 129 129 258 Nensebo 0 0 0 Not yet conducted Kokosa 80 10 90 Adaba 89 57 146 Dodola 232 93 325 Harena Buluk 187 179 366 Meda Welabu 26 19 45 Berbere 296 134 430 Delo Mena 166 147 313 Total 1378 842 2220

Figure 3Trainees during theoretical session

Community experience exchange visit to Humbo conducted: The lessons learned during the Farm Africa/SOS Sahel project in the Bale Ecoregion on PFM indicated that experience exchange visit was an effective tool to learn actions from already established projects.

Towards this end, the Piloting REDD+ project in the Bale Ecoregion conducted an experience exchange visit to Humbo forest carbon projects from September 22 – 25, 2013. The Humbo Community Managed Natural Regeneration project is a forest based carbon project that seeks to restore natural forests through afforestation/reforestation activities in the Humbo area of Southern Nations nationalities and peoples Regional state of Ethiopia.

The objective of the exchange visit was to build the capacity local forest communities and extension workers for the implementation of the REDD+ project in the Bale Ecoregion. The specific objectives were fore the Bale Forest management communities to understand the following;

 The general concept of the carbon trading from forests.  The practical implementation of the forest carbon project on the ground  The community involvement in the implementation  The benefit sharing arrangement that they can learn  The activities that the local community are doing to reduce deforestation and /or to enhance carbon stock, etc

The exchange visit participants were mainly the forest management cooperative members in the bale Eco-region which includes PFM CBO chair persons, elders, youth and women groups and government staffs working with the community forest management cooperatives. The communities were drawn from 61 kebeles of the 11 woredas of the Bale Ecoregion where REDD+ is going to be piloted.

Table 6 Participants of the Humbo CDM project Woreda Number of Administrative Remark Participants zone Male Female Total Adaba 11 3 14 West Arsi Agarfa 13 6 19 Bale Berbere 34 18 52 Bale Delo Menna 23 17 40 Bale

Dodola 36 7 43 West Arsi Develop Goba 13 6 19 Bale ment Gololcha 22 12 34 Bale workers Harenna Buluk 27 17 44 Bale are Kokosa 13 0 13 West Arsi included Meda Walabu 5 3 8 Bale Nensebo 47 10 57 West Arsi Total 244 99 343

Areas visited and the experiences learned On arrival at the Humbo project, Ato Kebede, representative of world vision in the area and Ato Beyene , the Humbo project community cooperative executive committee chairperson, have given us an explanation of how the project was came into being. They explained to the visiting community that before the project the area was degraded and unproductive. A group of experts from Australia who visited the area suggested that the local community need to work on the reforestation and regeneration of the degraded forest land as an option for carbon trading business. Following the advise World vision Ethiopia conducted a preliminary study on the feasibility of the forest carbon opportunity.

Based on the suggestion and the study made world vision involving the local community has conducted successive meetings on the possibility of establishing a CDM project and consus was reached.

Based on the consensus ca. 2,728 ha of forest area was set identified as project area. To manage the demarcated forest initially seven and later Nine forest management cooperatives were established.

Each forest cooperative has a general committee having 19 members as indicated below:  Executive committee (7 members)  Forest protection committee (3members)  Forest development committee (3 members)  Audit committee (3 members)  Saving and credit committee (3 members)

The local community developed different forest management strategies as explained below:

Forest development strategy: Strategy developed to start reforestation works by local communities supported by forest technicians and experts.

This strategy focuses on:  Establishing sufficient tree nurseries.  Raising fast growing tree seedlings, mainly Eucalyptus spp and Grevillea robusta.  Carry out seedling planting in the proposed project sites and private holdings.  Carry out closure area to protect the area from human and animals’ interference so as to seeds get germinate and regenerate to cover the deforested area. Live stumps get chance to sprout new shoots.  Promote community experience of managing Eucalyptus plantation in private and communal holdings.

Utilization strategy  As per the bylaw cattle are not allowed to graze in the delineated and protected forest areas but cut and carry system is allowed for all members to feed own animals and even can sell in the market.  Pruned tree branches and thinned trees are allowed for free for members.  From the project site tree cutting for construction and consumption is forbidden rather anyone can use his private plantation for any use he/she requires.  Private farm field owners have been trained on how to properly use the land and manage the forest around the farm field in the project site.

Forest protection strategy: The forest project site is generally protected by the community based forest management cooperatives involving the members.  Group members assigned to patrol the forest resource on daily basis.  Timely supervision by authorized members.  Monitoring and evaluation of the whole system.

The forest cooperatives, after about seven years of discussion & negotiations, were certified as legal institutions for carbon trading. Currently, ca. 2.17 million Ethiopian Birr from carbon trading has been transferred to the cooperatives from the World Bank through world vision in three installations. The fourth round 1.7million Ethiopian Birr from carbon sale payment is on process to be transferred to the cooperatives’ account. Of course the payment is a result based payment after the report is approved every year.

In case if world vision terminates its function to sustain the cooperatives, strategies have already been developed as indicated below:  15% of the fourth round carbon revenue will be retained for management purpose.  Income from the CBOs grain mill is a guarantee for continuing the coops.  Profit from grain sale, tree seeds sale, fruit and fruit seeds sale, gum and incense sale, improved seeds sale, bull fattening and honey production incomes are alternative for the coops.

Benefit sharing According to the explanation of the host community representatives, the above mentioned incomes generated from various sources are agreed to be deposit in the bank. The forest management communities agreed to use the fund for different business establishment and community development works such as grain mills, grain stores and road infrastructures. Later on the fund will be divided among the members as a dividend.

After the explanations given by the host community members questions were raised by the visiting community members. Some of the questions raised were as follows:

Questions rose from the visitors 1. Are all dwellers of the kebele members of the coop? 2. Do committees have salary? 3. At what interval does the coop receive the carbon revenue? 4. Why some of the members fail to appear on this meeting? 5. How is the women participation in every aspect of the coop? 6. Are people currently living in the forest? 7. Have you conducted benefit sharing at individual level? 8. Who destroyed the original forest? 9. How much money do you deposited in the bank? 10. What plan do you have to maximize your income?

Replies from the host farmers were: 1. No, some are still not members but our door is open for any kebele resident. 2. No, there is no committee member paid salary. We are working for our common development agenda. 3. Every year. 4. As you know today is Sunday, some people didn’t heard of the meeting so they are at church. 5. Like the men members women are also have obligations to perform what they have been ordered to do. 6. No, mostly people live outside and near the forest edge. 7. Not yet, however when the money in the bank is enough to distribute, we do it. 8. People from anywhere else because there was open access and no institution was mandated to manage the forest. 9. This moment the coop has about 3,218,253.29 Ethiopian Birr 10. We have a plan to buy a bus to transport people of our kebele to the woreda and zone

At last, the visiting farmers from the Bale Ecoregion have also shared their PFM experiences and success stories for the sustainable forest management. They have also explained to thr host community that they are aware about forest carbon trading. They have told that the forest in Bale eco-region is the second largest stand of moist forest in the country so that if we are successful in establishing the already started Bale REDD+ project, we hope that a huge amount of revenue will be generated which can considerably change our lives and livelihoods.

Lessons learnt from Humbo forest management cooperatives . Visiting farmers have realized that forest community can really benefit if every members of the PFM CBOs is committed for the implementation. . Participatory forest management is the basis for forest carbon trading. . Common assets established and services delivered to the community with reasonable price can be the result of working for the common goals. . Obeying and respecting own bylaw leads to a successful result

Finally they appreciated and thanked the host community and world vision staffs for the wealth of experiences they shared.

Figure 4 Community during the experience exchange visit

3.1.5. Identify risks in REDD+ to local communities and implement appropriate social safeguards and secure FPIC

Organize community consultation and obtain their consent: The Bale REDD+ project is working to finalize the development of its Project Design Document (PDD), go through validation with VCS and CCBA standards and start implementation. However, there were a number of key inputs required before PDD could be developed for the REDD+ project. Among them is stakeholder consultation, particularly communities who are directly affected by the project. The community consultation was done through the FPIC processes.

FPIC can be described as the establishment of conditions under which people exercise their fundamental right to negotiate the terms of externally imposed policies, programs, and activities that directly affect their livelihoods or well-being, and to give or withhold their consent to them.

The right to FPIC can therefore be viewed as an additional component to any effective, on- going consultation process, or as an extension to sound community engagement strategies. The more participatory the process of change is, the less emphasis and time is needed to secure ‘consent’, as communities will have already actively defined the processes and outcomes of any proposed change.

The key elements of FPIC are the following:  Free should imply no coercion, intimidation or manipulation;  Prior should imply consent has been sought sufficiently in advance of any authorization or commencement of activities and respect of time requirements of indigenous consultation/ consensus processes;  Informed – should imply that information is provided that covers (at least) the following aspects: a. Nature, size, pace, reversibility and scope of any proposed project or activity; b. Reason/s or purpose of the project and/or activity; c. Duration of the above; d. Locality of areas that will be affected; e. Preliminary assessment of the likely economic, social, cultural and environmental impact, including potential risks and fair and equitable benefit sharing in a context that respects the precautionary principle; f. Personnel likely to be involved in the execution of the proposed project (including indigenous peoples, private sector staff, research institutions, government employees, and others); and g. Procedures that the project may entail.  Consent -Consultation and participation are crucial components of a consent process. Consultation should be undertaken in good faith. The parties should establish a dialogue allowing them to find appropriate solutions in an atmosphere of mutual respect in good faith, and full and equitable participation. Consultation requires time and an effective system for communicating among interest holders. Indigenous/local peoples should be able to participate through their own freely chosen representatives and customary or other institutions. The inclusion of a gender perspective and the participation of indigenous women are essential, as well as participation of children and youth as appropriate. This process may include the option of withholding consent. Consent to any agreement should be interpreted as indigenous peoples having reasonably understood it.

Therefore, as the bale REDD+ project is to be developed and implemented in the bale Eco- region forest areas, it is very critical that the community consent should be sought at this stage of the REDD+ project stage.

The consultation process for the Bale REDD+ project was conducted for different stakeholder at different levels: Federal, Regional, Zone and woreda government levels and at local community levels. The government level consultation was conducted in Addis with the presence of federal and regional government stakeholders in Global Hotel and the zone level was conducted in Bale Zone for bale and West Arsi stakeholders.

Community level FPIC work has been conducted in all the REDD+ project kebels. The FPIC process was not challenging in the Bale Mountains REDD+ project area due to the fact that the programme has been working closely with the community to establish participatory forest management when the trust was built. During the planning phase the FPIC facilitators were selected and trained. After the training the facilitators were sent back to kebele / community where they were assigned to conduct the FPIC process with the community.

The facilitators from woreda and community level conducted massive awareness raising on Bale Mountains Eco-region REDD+ Project (BMERP) for the wider community in all the 61 kebeles. Kebele level. The kebele level meetings resulted in nomination and appointment of five individual as a REDD+ committee members from each kebele to represent the local forest management cooperatives and wider community in their respective kebeles in the FPIC process. The committee members were mandated with planning and implementation of FPIC with the consent of kebele community that represent them.

The Bale REDD+ piloting project provided week long training to the community representatives in August, 2013. The training covered the following topics: climate change and forest, introduction to REDD+, the role of forestry in combating climate change and FPIC

After the training FPIC plans were prepared incorporating: Decision making process, information and communication strategy, grievance handling mechanism, Transparency and Forest management plan , capacity building plan, benefit sharing and took back the doc to their respective kebele community for comments.

During the kebele level consent seeking meeting discussions, awareness creation on general climate change and detail explanations were given on the proposed bale REDD+ project on what, how, where and when of the project. After the community understood the whole idea of the project, extensive discussion on the project contents and ideas were held among the community groups. During the meeting community questions and clarifications were properly handled and the communities were satisfied by the responses and explanations given.

The outcome of the wider community level discussion has revealed that the majority of the community has expressed their interest of acceptance of the project and willing to work with the project. As a witness for their willingness they have nominated five community representatives per kebele to sign the consent document on the wider community behalf. In some of the kebeles, high number of community members attended the meeting that makes the event very special in that it the first of its kind where such high number of community members attended a meeting.

Some of the questions raised by the community during the FPIC process were: 1. We need to see agreement signed off for the REDD+ project that should state “only sale of the clean air and not the forest land’ 2. How can we be sure that we are exchanging of our clean air with the polluted air of the polluters 3. Why the REDD+ implementation was is late as it was long time since we heard of it? 4. Can the non-members of the forest management cooperatives get the benefit of the carbon credit sale 5. What evidence we have if you change your mind of sharing the income from sale? 6. Is there any problem on us if we sell the carbon credit? 7. Etc...

Table 7 Kebele level community meeting participants for Bale REDD+ FPIC process Woreda Cluster Number Number of community Remark of members attended the meeting kebeles Male Female Total Nensebo Adaba-Dodola 12 2047 151 2198 Kokosa Adaba-Dodola 2 221 27 248 Dodola Adaba-Dodola 6 1283 178 1461 Adaba Adaba-Dodola 3 314 17 331 Mede Wolabu Mena-Angetu 1 0 0 0 Delo Mena Mena-Angetu 7 1734 200 1924

Harena Buluk Mena-Angetu 8 2917 1130 4047 Gololcha Kubayu 6 349 101 450 Berbere Goro-Bele 10 543 205 748 in 4 kebeles. Goba Aloshe-Batu 3 114 277 391 Agarfa Aloshe-Batu 3 168 11 179 Total 61 9690 2297 11977

Figure 5 Community meeting for Bale REDD+ FPIC process

Table 8 Community & government staffs participated on FPIC training Woreda No of Number of community Experts Kebele participants M F T M F T Meda Walabu 1 3 2 5 3 3 D/Mena 7 21 14 35 4 4 H/Buluk 8 24 16 40 4 4 Berbere 9 25 18 43 6 6 Goba 3 9 6 15 4 4 Agarfa 3 9 6 15 3 3 Gololcha 6 18 7 25 4 4 Nensebo 11 39 7 46 Dodola 7 31 5 36 4 4 Kokosa 2 9 1 10 4 4 Adaba 3 3 3 Total 60 188 82 270 39 39

In all the project kebeles’ community level FPIC discussion, the local community gave their consent positively and agreed to participate in the implementation and benefit sharing of REDD+ project.

Figure 6 Sample community representative signature for positive consent . Second round FPIC implementation training conducted: The FPIC process has progress steadily but surly over the last couple of months .In order to enhance community's understanding a second round FPIC training was held in all 61 REDD+ project kebeles . In abide to address as many people as possible on average twenty five participants were involved from each kebele . A total of 1560 (956 M & 591 F) community member took part in the training.

Topics covered in training are:  Decision making institutions  Resource management plan  Communication plan  grievance handling  benefit sharing  capacity building

Table 9 Participants of FPIC second round training Woreda Number of Participants Remark Male Female Total Agarfa 69 8 77 Goba 40 35 75 Gololcha 117 44 161 Nensebo 148 142 290 Kokosa 43 7 50 Adaba 49 26 75 Dodola 149 23 172 Harena Buluk 109 103 212 Meda Welabu 16 9 25 Bebere 130 120 250 Delo Mena 99 74 173 Total 969 591 1560

3.2. Outcome-2 Organizational and managerial capacity of community based organizations enhanced.

3.2.1 Establish a working partnership with Regional / Zonal / Woreda Cooperatives Promotion Offices 3.2.2 Working with CPO develop FMG – CBO organizational capacity assessment tool, with specific reference to implementation of REDD+ 3.2.3 Working with CPO to carry out organizational capacity assessment in order to baseline CBO capacity, and to develop CBO capacity building plans 3.2.4 Working with CPO to develop and carry out organizational capacity training and support in response to CBO capacity building plans 3.2.5 Working with the CPO to develop a clear Gender mainstreaming component within the Cooperative set up process 3.2.6 Working with CPO to facilitate the set up of Bale REDD+ Cooperatives Forest Union. 3.2.7 Promote CBO to CBO partnership and learning through exchange and networking 3.2.8 Working with the Regional CPO to develop clear REDD CBO legal status with recognised rights associated with REDD+, and ensure appropriate policy revision

3.2.1. Establish a working partnership with Regional / Zonal / Woreda Cooperatives Promotion Offices

Draft MOU negotiated and agreed: Bale REDD+ project with Oromia cooperative promotion agency (OCPA) has developed a memorandum of understanding of collaboration which detailed the roles and responsibility of each party for the strengthening and support of the REDD+ - PFM CBOs for successful implementation and sustainability of the Bale REDD+ project.

The OCPA agreed to assign a counterpart staff at all levels(Region, Zone & woreda) to work with the project & OFWE staffs to support the local community forest management cooperatives & forest based small and medium enterprises through institutional capacity strengthening for sustainable forest management and forest based businesses.

3.2.2. Working with CPO develop FMG – CBO organizational capacity assessment tool, with specific reference to implementation of REDD+

Organizational Capacity assessment tool Developed: In the first phase of the BERSMP intervention in the Bale Ecoregion 62 forest management cooperatives were established. During the life of the Bale REDD+ project, the plan is to closely work with all the JFM CBOs to assess the CBOs organizational capacity & based on the assessment strengthen their organizational capacity for effective implementation of the proposed Bale REDD+ project, sustainable forest management and sustainable livelihood improvement. Therefore, in the year 2013 it was planned to develop an organizational capacity assessment tool (OCAT).

Towards this end, a consultant was employed to develop the OCAT/manual. The contracted firm has finalized the development of the tool and submitted to the project. During the process of tool development, the project organized a two days consultative meeting in Shashement where both project and cooperative promotion agency staffs drawn from Bale and West Arsi zones provided inputs to the tool to serve the purpose of REDD+ implementation.

3.2.3. Working with CPO to develop and carry out organizational capacity training and support in response to CBO capacity building plans

Cooperatives financial support: Preliminary organizational assessment report indicated that most of the existing joint forest management cooperatives have no office which is a requirement for the CBOs to properly run their managerial and administrative duties. There CBO have lack of finance to construct them.

The Bale REDD+ project field office decides to provide some financial support through a cost share system where the community provide local materials (stone, wood, labour, …) and the project to provide financial support for the procurement of industrial materials ( Cement, corrugated iron sheets, sand, and nails).

Accordingly, the project provided a total of 780,000 ETB to 30 Joint Forest Management CBOs through their Bank account.

Table 10 Lists of JFM CBOs supported Zone Woreda Name of CBOs Amount allocated(ETB) Bale Berbere Woltai Burkitu 20,000 Bale Berbere Hambela 20,000 Bale Berbere Awash Kolati 20,000 Bale Goba Shedem 20,000 Bale Goba Wajitu Shabe 20,000 Bale Goba Woltai Hoboro 20,000 Bale Goba Adaba Gefecha 20,000 Bale Goba Meda Kitita 20,000 Bale Goba Gadisa Hora 20,000 West Arsi Nensebo Nensebo Chebi 25,800 West Arsi Nensebo Refisa 25,800 West Arsi Nensebo Nensebo Gorte 25,800 West Arsi Nensebo Bedesa 25,800 West Arsi Nensebo Korema 25,800 Bale Harena Buluk Buluk 29,000 Bale Harena Buluk Kumbi 29,000 Bale Harena Buluk Angetu 29,000 Bale Harena Buluk Sodu Lelaftu 29,000 Bale Harena Buluk Anole 29,000 Bale Harena Buluk Gerbi Galo 36,000 Bale Harena Buluk Hero 29,000 Bale Harena Buluk Sorbira 29,000 Bale Harena Buluk Sodu Welmel 29,000 Bale Delo Mena Burkitu 29,000 Bale Delo Mena Erba 29,000 Bale Delo Mena Oda Dima 29,000 Bale Delo Mena Woltai Gudina 29,000 Bale Delo Mena Bobiya 29,000 Bale Delo Mena Deyyu 29,000 Bale Delo Mena Chiri 29,000 Total 780,000

Coffee technology material support provided to coffee producer farmers: The project is working with the PFM/JFM CBO members who are engaged in forest coffee production businesses to improve quality of coffee which in turn fetch better price. Towards this end, the project has been/is supporting the coffee farmers technically and through provision of coffee materials.

During the coffee harvest of 2013, the project purchased two thousand hessian sacks for proper storage for ca. 87,400 ETB and three thousand kgs of plastic sheet to cover during night to prevent moisture absorption for ca. 192, 855 ETB.

It is it is believed that for the forest management CBOs to be organized under one strong organization than having many but weak organizations. This helps them present their issues, strongly lobby their rights and negotiate their benefits.

Towards this end, the project started working with woreda level Cooperative Promotion Office (CPOs) to organize the individual JFM CBOs in to union/s. Currently Joint forest management cooperatives in Harena Buluk and Dello Mena woredas of Bale zone have started the process of forming forest management unions so as to solve problems which cannot be resolved by individual cooperative/s unitarily. Harena and D/Mena woreda as well as Bale zone cooperative promotion offices are facilitating the process of formation of the union.

The Bale project will continue facilitating the formation of union/s across the Bale Ecoregion.

3.2.4. Promote CBO to CBO partnership and learning through exchange and networking

Experience exchange visit conducted: A study and learning visit was organized for joint forest management cooperatives leaders and government staffs to already established Adaba- Dodola, called Faracha Rayya, forest management cooperative union. The union was established in 2006 by 9 individual cooperatives and currently four more have finalized preparation to join. .The union has over 2046 active members.

The purpose of the visit was to enable cooperative leaders understand and capture lessons on organizational and functional aspect of forest management union which help them for the establishment of their own cooperative union/s. Particularly the visiting CBO leaders gained experience on requirements and steps to be followed in the establishment of forest management cooperative union, asset and document management , business management and conflict resolution mechanisms.

Based on the experience learned and understanding the benefit of union formation some cooperatives, for instance in Harena Buluk and D/Mena woredas have started process of cooperative union formation of their own.

Table 11 Participants of Adaba-Dodola experience exchange visit Woreda CBO members Woreda COP experts Male Female Total Male Female Total Nensebo 13 11 24 1 0 1 Kokosa 4 2 6 1 0 1 Dodola 11 5 16 1 0 1 Adaba 3 3 6 1 0 1 Goba 8 8 16 0 1 1 Agarfa 4 4 8 1 0 1 Gololcha 6 6 12 1 0 1 Berbere 10 10 20 1 0 1 Delo Menna 8 8 16 1 0 1 Mede Wolabu 0 0 0 0 1 1 Harenna Buluk 11 11 22 1 0 1 Total 78 68 146 9 2 11

Participation on National PFM day Celebration: It was to be recalled that the Farm Africa/SOS Sahel Ethiopia, Bale programme has initiated PFM day celebration last year in Bale Zone, town. During the celebration, the Federal Ministry of Agriculture announced that the PFM day is recognized by the government and celebrated annually in different regional states. On the event the Southern nations Nationalities People Regional State (SNNPRS) took the responsibility to host the 2013 event. Accordingly, the region organized the event in Kaffa Zone, Bonga town.

A team representing Bale-Eco region participated on the second national PFM day celebration held in Bonga town of Kaffa Zone. The event brought together PFM practitioners from all over the country. The event brought enormous opportunity of experience learning from each other and networking.

Participants from the Bale Eco-region were drawn from community joint forest management cooperatives members as well as government partners’ offices. A total of 27 people attended the event out of which 23 were community (15 m & 8F) and the remaining are from government side

3.3. Outcome-3 Small & Medium Forest Enterprises (S&MFEs) established.

3.3.1 Establish S&MFE unit within OFWE / CPO 3.3.2 Introduce the FAOs Market Analysis and Development (MA&D) approach – ToT OFWE / CPO 3.3.3 Implement MA&D 4 phase process in each Woreda 3.3.4 Set up and run financial management for small business training courses – link to existing Micro Finance institutions 3.3.5 Identify and strengthen business sector development with Trade and industry / investment bureau in the establishment of partnerships with private sector and BDS service providers, encouraging greater participation off women across S&MFEs, but also in particular niche value chains or processing stages. 3.3.6 Facilitate credit accessibility to S&MFEs: expand the range of credit and saving services available, explore the potential of public-private partnerships regarding investments in CBOs – S&MFE 3.3.7 Seek programmatic linkages with other business development interventions, such as USAID Agriculture and Livestock growth programmes 3.3.8 Facilitate multi-stakeholder Bale Eco-Region Business expo’s.

3.3.1. Introduce the FAOs Market Analysis and Development (MA&D) approach – ToT OFWE / CPO

Technical training on Market Analysis & Development (MA&D) conducted: The Market analysis and development (MA&D) is an innovative process that assists field-level facilitators and forest users to systematically identify and develop sustainable tree and forest product enterprises. By taking into consideration not only the commercial aspects of an enterprise, but also the environmental, social and technological aspects, MA&D helps communities to directly link forest management and conservation activities to opportunities for income generation. In short, it enables local people to identify potential products and develop markets that will provide income and benefits without degrading the resource base. It is a flexible approach with an emphasis on capacity building of forest users.

In order to introduce the approach to key government and project staffs, Bale REDD+ project organized week long training in November. For this training, participants drawn from cooperative promotion agency as well as forest and wild life enterprises of Bale and west Arsi zones took part.

Topics covered in the training were:

1) What Market Analysis and Development (MA&D) is? 2) Purpose of MA&D method 3) Four phases of MA&D process was explained as follows;  Phase 1: Identifying products  Phase2: exploring market  phase 3: developing business plan  phase 4: supporting the start up phase of the enterprise In the training, participants drawn from cooperative promotion agency as well as forest and wild life enterprises of Bale and west Arsi zones took part. A total of 56 (53m&3f) trainees attended the training.

3.3.7. Seek programmatic linkages with other business development interventions, such as USAID Agriculture and Livestock growth programmes

The Bale REDD+ project has established linkage with Sustainable Agriculture Network and Rainforest alliance with a purpose of certifying Bale eco-region wild forest coffee for sustainable & reliable coffee supply for international market where the coffee farmers could be benefited from the premium price. The Sustainable Agriculture Net work (SAN) is a coalition of independent non-profit conservation organization that promote the social and environmental sustainability of agriculture activities by developing standard. A certification body certifies farmers or group administrators that comply with SAN's standards and policies. Certified farmers or group administrators can apply for use of the Rainforest alliance certified trademark for products grown on certified farms.

As a result of established linkage, forest alliance expert based in Addis Ababa, Ethiopia provided coffee inspection training to government staffs and community representatives.

Topics covered under the training were:  How to carry out internal inspection  social and environmental management system  Ecosystem conservation, wildlife protection, water conservation,  fair treatment and good working conditions for workers, occupational health and safety

After the training, internal inspection activities were completed in both Harena Buluk and Dello Mena woredas and readily available for external inspection or auditing.

During the training, a total of 2072 (1700 M & 372F) coffee farmers and 29 (27M &2F) government workers participated.

4. Assessment of the efficiency of the project During the year the project progressed very we, inspite of delays in starting the project implementation on the ground, in terms community client and government services capacity building for the implementation of REDD+ strategy. Particularly, the implementation of FPIC in 62 kebeles of the REDD+ project area has increased the understanding and confidence of the local community for the implementation of REDD+ activities. The effective achievement of smooth implementation was the result of the PFM foundation during when the trust was developed.

Based on the current result/achievement, the project is confident to deliver the initial commitment of the Bale REDD+ implementation

5. Assessment of the result/impact in relation to the planned purpose Significant progress has been made towards achieving project's set out results, even though the delay in starting the project implementation on the ground. It is early to achieve significant impacts, however, the following results/impact indicators were observed:  Enormous capacity building work delivered to government and community, as a result community & government effectively conducted Carbon stock assessment

 Effective FPIC conducted with the local community, ca. 27, 000 communities participated through which consent is given

 Managerial capacity of JFM CBOs committee enhanced

 As a result of Market Analysis and Development approach NTFP harvesters (producers) have started producing their own business plan

6. Constraints

6.1. During the beginning of the project year, it was very difficult to get the document to be signed by the government body due to the new government Charities & Societies law with regards to cost categorization to 70 % ( the operation cost) / 30% ( administration costs). This has contributed to delay the start up of the project on the ground that had a negative impact on the under spending. We were also obliged to reduce and /or cut some budget line, for example the vehicle purchase was cancelled, to comply with the law. The old BERSMP vehicles are in use instead. However, after several back and forth discussions, it is signed and the implementation of the project on the ground is going very smoothly that the project aim will be achieved over the stated period of time.

6.2. The Bale REDD+ PDD completion has taken time to be finalized. This was due to the nature of the work that securing the community consent (through FPIC process) and negotiation on the benefit sharing have taken long time. Currently, action plan was developed to finalise the PDD.

6.3. The extended rainy season in Bale has delayed the finalisation of the FPIC process which was conducted in 61 kebeles.

6.4. The busy schedule of government in different meetings, particularly the higher officials, delayed the decision on the benefit sharing modalities on the Bale REDD+ pilot project which also contributed to the delay in finalizing the PDD.

7. BUDGET utilization Total amount of fund transferred from Royal Norwegian Embassy to Farm Africa was NOK 3,770,596. Total expenditure (fund utilization) during the year was NOK 3,612,081 which means ca. 67% of the annual budget and 95% of the amount transferred. The total amount of fund requested for reimbursement for the next six months is NOK 5,228,994. (For details, see annex 2)

8. Annex 1: Activities analysis – progress against plan (January 01, 2013 – October 30, 2013) Activities Unit 2013- Year I Achievements Deviation/ Reason for Corrective Actions Taken 2014 ( In Cumul Deviation 3 yrs target the ative )Targe year t 2013 Output 1: Forest adjacent communities mobilized and their actions and support for REDD+ practiced and Sustained 1.1 support the setting up of OFWE REDD+ Unit tranches 2 1 0 0 Organize trainings/workshops on CC and REDD+ for Trainings/w 3 1 2 2 community orkshops Organize panel discussions and forums sessions 4 2 - - TV/Radio programs programs 2 0 - - Organize community consultation and obtain their consultatio 1 1 1 1 consent ns Organize in-country trainings for OFWE staff on sessions Community trainings & FPIC Will be conducted in the REDD+, climate change, MRV, Carbon stock 3 3 0 0 work prioritised January 2014 assessment Organize specialized short term training overseas courses 1 1 1 1

Prepare and distribute CC and REDD+ related publications publications 2 1 1 1 Support COP participations participant 9 3 4 4 Support for Bale and Arsi forest enterprises support 6 2 - - Develop PFCA and REDD+ manual in local language docs The English is being under Will be done in January published and the local 2014 2 2 - - language translation will continue Organize experience exchange visits e.g. to Humbo participants 50 50 61 61 CDM project CBOs Train community members on PFCA, MRV and REDD+ CBOs 50 25 23 23 Publish and disseminate manuals, brochures, leaflets docs 3 1 1 1 Support development of REDD+ social safeguard doc 1 guideline support study on possible risks of Bale REDD+ project study on communities and design and introduce appropriate 1 1 - - safeguard actions Consultations Meetings/w FPIC priority and the higher Will be done in December 4 3 - - orkshops government level will 2013/January 2014 Activities Unit 2013- Year I Achievements Deviation/ Reason for Corrective Actions Taken 2014 ( In Cumul Deviation 3 yrs target the ative )Targe year t 2013 continue REDD+ benefit sharing implementation design 1 1 50% 50% Bale RDD+ Validation certificate PDD not yet finalized due to 1 1 - - delay in Benefit sharing agreement Bale REDD+ verification certificate 1 0 - - Organize overseas experience exchange visits for visit 1 1 1 1 policy makers Support action research on gender and climate study 2 1 - - change/REDD+ Sponsor MSc field work and other relevant research study 4 1 - - activities Organize seminars seminars 3 1 - - support national REDD+ working groups and network support 4 1 - - Output 2: Organizational and Managerial capacity of community based organizations enhanced Establish working partnership (MoU) between MoU 1 1 1 1 Community Forest Management cooperatives, Regional / Zonal / Woreda Cooperatives Promotion Offices Develop community Forest Management – CBO OCAT 1 1 1 1 organizational capacity assessment tool, with specific reference to implementation of REDD+ carry out organizational capacity assessment in order to assessmen 50 30 - - baseline Joint Forest Management Community Based ts Organization (JFM CBO) capacity and to develop capacity building plans Develop and carry out organizational capacity training Training 16 6 1 1 Difficulty in getting the Planned to conduct the rest and support in response to Forest management expert with the right trainings in December Community Based Organization (CBO) capacity building experience and busy time of 2013/January 2014 plans government in meetings Working with community and develop clear REDD legal Meetings 8 4 2 2 Delay of MOU signing with Planned to conduct the rest status for Community Based Organization (CBO) with Oromia coop head office trainings in December recognised rights associated with REDD+

Supporting community forest management groups & Forest 10 3 1 1 Government is planning to Agreed with Oromiya Coop CPO to set up Bale Eco-Region Forest management Union review the old unions to assess the status of cooperative Union performance and forest CBOs to decide the recommend the formation of formation of Forest unions Activities Unit 2013- Year I Achievements Deviation/ Reason for Corrective Actions Taken 2014 ( In Cumul Deviation 3 yrs target the ative )Targe year t 2013 new ones in an other forms Promote Forest management Community Based Events 16 4 4 4 Organization(CBO) to CBO partnership and learning through exchange and networking Develop appropriate policy revision to support legal Policy 1 - REDD CBOs documents Output 3: Small and Medium forest enterprise / forest based business' established Establish S&MFE unit within OFWE / CPO S&MFE 20 6 unit Introduce the FAOs Market Analysis and Development MA&D ToT 1 1 1 1 (MA&D) approach – ToT OFWE / CPO Implement MA&D 4 phase process in each woreda MA&D 16 8 1 1 trainings Set up and run financial management for small Course / 16 8 0 0 Under discussion with micro Discussion will be business training courses – link to existing Micro training finances and coop office undergone in December Finance institutions about set up of micro ,on set up of enterprises enterprise and the strategy to support them , with coop and micro finance institutions Identify and strengthen business sector development Partnership 4 - with Trade and industry / investment bureau in the support establishment of partnerships with private sector and BDS service providers Facilitate credit accessibility to S&MFEs: expand the Credit 6 - range of credit and saving services available, explore facilities the potential of public-private partnerships regarding investments in CBOs – S&MFE Seek programmatic linkages with other business Partnership 4 - development interventions, such as USAID Agriculture support and Livestock growth programmes Facilitate multi-stakeholder Bale Eco-Region Business Business 1 - expo’s. Expo 9. Annex 2: Financial Report (January 01 – October 30, 2013) and Liquidity forecast for Six Months (December 01, 2013 – May 30, 2014)

Budget November Total Forecast expenditure 2013 expenditur (December ( January expenditure e to date 01, 2013 – 01 – ( not (NOK) May31st, 2013 October 30, included in 2014 Budget 2013) the audit) ITEM plan(NOK) (NOK) 1 1. Activity Based Budget 1.1 Outcome 1: Forest adjacent communities 1,828,289 523,069 557,379 1,080,448 1,250,000 engaged and their actions and support for REDD+ practiced and sustained

1.2 Outcome-2 Organizational and managerial capacity of community based 571,067 137,318 383789 521,107 1,200,930 organizations enhanced 1.3 Outcome-3 Small & Medium Forest 284,347 62,772 2,302 65,074 795, 707 Enterprises (S&MFEs) established. A Sub Total outcome 1-3 2,683,703 723,159 880,912 1,604,071 2,370,930 1.7 Technical Field & Addis Level Project 781,174 488,735 79,575 568,310 510,666 Staff B Total Activity Based Budget (A+1.7) 3,464,877 1,211,894 960,487 2,172,381 2,881,596 1.8 Audit fee 7,479 - - 7,479 2 Computer & Forest Equipment for project office

2.1 Laptop computers 22,424 6,202 - 6202 - 2.2 CBO Field Equipment, e.g. GPS & 473,726 0 473,800 473,800 1,512,862 Forestry Equipment 2.3. Camping Equipment for CBOs 298,981 0 183,370 183,370 115,611 C Total Computer & Forest Equipment for project office(2.1+2.2+2.3) 795,131 6,202 657,170 663,372 1,628,473

3 Local office costs 3.1 Vehicle Running Costs- field 179871 118,542 6845 125,387 104,248 3.2 Vehicle Running Costs - PNRMU 53948 21,362 - 21,362 35,160 3.3 Vehicle hire 28907 18,450 - 18, 450 31,975 3,4 Per diems 33525 55,240 10,393 65,633 42,850 3.5 Consumables 51075 25,604 790 26,394 28,567 3.6 Utilities 85096 22,416 1,860 24,276 16,481 D Total Local office costs(3.1+…+3.6) 432,422 261,614 19,888 281,502 259,281 4 Administrative Support Staff Costs 416,289 261,624 61198 322,822 203,165 Total Recurring Expenditure (D+4) 848,711 523,238 81,086 604,324 462,446 Total Direct Project Costs (DPC) 5,116,198 1,741,334 1,698,743 3,440,077 4,979,994 Admin 5% 255,810 87067 84,937 172,004 249,000 Grand Total 5,372,008 1,828,401 1,783,680 3,612,081

NB: Summary for the above table 1. Total Budget transferred from RNE to Farm Africa = 3,770, 090. NOK 2. Total Budget utilized/expenditure = 3,612,081 NOK 3. Total Budget requested for disbursement = 5,228,994NOK 4. The November financial report is no included in the audited document