E-202 VOL.28 CHAD EXPORT Public Disclosure Authorized r PRO~RJ ECT Public Disclosure Authorized Public Disclosure Authorized VOLUME 4

Environmental Foundation Plan Offsite Environmental EnhancementPlan ndigenous PeoplesPlan Public Disclosure Authorized

- ._..._.-ENVIRONMENTAL 1 * 28 -H - MANAGEMENT PLAN

CAMEROON PORTION ENVIRONMENTALASSESSMENT EXECUTIVESUMMARY AND UPDATE

Environmental Supporting Environmental Management Plan - Documents MaCagement Plan - Chad Portion __ Cameroon Portion

VOLUME 1 VOLUME I VOLUME 1 * Base Document * Project Description * Base Document * Management Plan for Cultural Properties * Decommissioning * Induced Access Management Plan * Handbook for Site-Specific . List of Studies/Reports * Management Plan for Cultural Properties Environmental Mitigation Actions * List of Consultants/Experts * Handbook for Site-Specific Environmental * Environmental Monitoring Plan VOLUME 2 Mitigation Actions

VOLUME 2 * Alternatives Analysis * Environmental Monitoring Plan * Biophysical/Socioeconomic/Health VOLUME 3 VOLUME 2 Technical Requirements and * Consultation and Public Review Program * Biophysical/Socioeconomic/Health Specifications Technical Requirements and Specifications

VOLUME 3 * Oil Spill Response: Preliminary VOLUME 3 - Compensation & Resettlement Plan Approach * Compensation Plan

VOLUME 4 VOLUME 5 VOLUME 4 * Regional Development Plan: V Chad Biological Studies * Environmental Foundation Plan Near Term Measures * Cameroon Biological Studies * Offsite Environmental Enhancement Program * Revenue Management Plan * Indigenous Peoples Plan * Institutional Capacity Building VOLUME 6 * ChadPublic Health VOLUME5 VOLUME 5 * Cameroon Public Health * Waste Management Plan * Waste Management Plan VOLUMEC6

VOLUME 6 * Environmental Line List * Environmental Line List * Environmental Alignment Sheets * Environmental Alignment Sheets

REFERENCE DOCUMENTS

4/29199 This document is available in English and French. ENVIRONMENTALMANAGEMENT PLAN CAMEROONPORTION VOLUME 4 PART I

ENVIRONMENTALFOUNDATION PLAN

MAY 1999

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TABLE OF CONTENTS

1.0 INTRODUCTION ...... 1-1 1.1 OVERVIEW...... 1-1 1.2 SUMMARYOF FEDEC'SKEY POINTSAND PURPOSE...... 1-1 1.3 FEDEC'SKEY FEATURESAND DESIGNREQUIREMENTS ...... 1-2

2.0 OVERVIEW OF ENVIRONMENTAL FOUNDATIONS AND TRUST FUNDS ....2-1

3.0 ESTABLISHMENT OF AN ENVIRONMENTAL TRUST FUND OR FOUNDATION IN THE REPUBLIC OF CAMEROON ...... 3-1 3.1 LEGAL PRECEDENCE...... : 3-1 3.2 THE PROPOSEDNATIONAL ENVIRONMENTAL FUND ...... 3-1

4.0 LEGAL AND CONTRACTUAL ISSUES RELATED TO FEDEC ...... 4-1 4.1 OBJECTIVESAND SCOPEOF FEDEC . .4-1 4.2 OWNERSHIPOF ASSETS...... 4-1 4.3 SECURITYAND STABILITYOF THE FOUNDATION . .4-1 4.3.1 Locationof the Foundationin the Netherlands.4-1 4.3.2 Investmentmanagement .4-2 4.3.3 Fiscal regime.4-2 4.3.4 Legal statusof the Foundationin the Republicof Cameroon.4-4

5.0 CONTRIBUTIONS TO FEDEC ...... 5-1 5.1 PRINCIPLES...... 5-1 5.2 COTCO'SCONTRIBUTIONS TO THE FOUNDATION . .5-1 5.2.1 Contributionto the Fundingof FEDEC'sEstablishment .5-1 5.2.2 Capitalcontribution .5-1 5.2.3 Othercontributions .5-3 5.2.4 Fiscal regime.5-3

6.0 THE ROLES AND RESPONSIBILITIES OF THE FOUNDATION'S ENTITIES .6-1 6.1 MANAGEMENTSTRUCTURE .. 6-1 6.2 MANAGEMENTBOARD...... M.6-1 6.2.1 ManagementBoard's responsibilities .6-1 6.2.2 The Compositionof the Foundation'sManagement Board .6-2 6.3 THE FOUNDATIONADMINISTRATOR . .6-8 6.3.1 Selectionof the FoundationAdministrator .6-8

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6.3.2 Contractualrelationship with the FoundationAdministrator ...... 6-9 6.4 IMPLEMENTATIONORGANIZATIONS FOR THE FOUNDATION'STWO ENVIRONMENTALENHANCEMENT COMPONENTS .. 6-9 6.4.1 Qualificationsfor ImplementationOrganisations .6-9 6.4.2 Selectionprocess for ImplementationOrganisations .6-9 6.4.3 Contractualrelationship with ImplementationOrganisations. 6-10 6.5 COMMUNITYDEVELOPMENT FACILITATOR . .6-10 6.5.1 Dutiesand qualificationsof the CommunityDevelopment Facilitator... 6-11 6.5.2 Selectionof the CommunityDevelopment Facilitator. 6-11 6.5.3 Contractualrelationship with the CommunityDevelopment Facilitator. 6-11 6.5.4 COTCO'sreimbursement of the CommunityDevelopment Facilitator'sannual service fee .6-12 6.6 THE FUND INVESTMENTMANAGER .6-12 6.6.1 Duties and qualificationsof the FundInvestment Manager. 6-12 6.6.2 Selectionof the Fund InvestmentManager .6-12 6.6.3 ContractualRelationship with the Fund InvestmentManager .6-13 6.6.4 COTCO'sreimbursement of the Fund InvestmentManager's Annual Asset Managementfee Associatedwith COTCO'sCapital Contribution.6-13 6.7 PROCEDURES FOR SELECTINGFINANCIAL AND OTHER PROFESSIONALADVICE .. 6-13

7.0 OPERATIONAL DETAILS OF THE FOUNDATION ... 7-1 7.1 PROJECT MANAGEMENTPROCESSES . .7-1 7.1.1 Project identificationand formulation .7-1 7.1.2 Projectselection and approval.7-1 7.1.3 Project Implementationand control.7-2 7.2 ADMINISTRATIONCOSTS, THEIR CONTROLAND MINIMIZATION.. 7-2 7.3 MONITORING/STEWARDSHIPAND EVALUATION . .7-3 7.3.1 Detailedaccounting of the Foundation'sfinancial activities .7-4 7.3.2 Accountingstandards. 7-4 7.3.3 Annual FinancialAudit. 7-4 7.3.4 Stewardshipand monitoringby the Board. 7-4 7.4 CONFLICT OF INTEREST, DISSEMINATIONOF IINFORMATION,AND LOCALPUBLIC CONSULTATION . .7-5 7.4.1 Conflict of interest.7-5 7.4.2 Disseminationof information.7-5

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7.4.3 Local public consultation ...... 7-5

8.0 IMPLEMENTATION ...... 8-1 8.1 RECOGNITIONOF "PUBLICUTILITY" AND TAX-EXEMPTSTATUS ...... 8-1 8.2 NEGOTIATIONOF A DONOR CONTRACTBETWEEN FEDEC AND COTCO .8-1 8.3 GENERALCONSIDERATIONS RE THE INCORPORATIONOF THE FOUNDATION...... 8-2 8.4 INDICATIVEAGENDAS FOR BOARDMEETINGS ...... 8-3 8.5 PHASING OF THE IMPLEMENTATIONPLAN ...... 8-6 8.5.1 Phase 1...... 8-6 8.5.2 Phase2 ...... 8-7 8.5.3 Phase3 ...... 8-7

List of Figures

Figure 1. Years 1-3 of FEDEC

Figure 2. FEDEC After Year 3

Figure 3. Scheduleof Inputs

List of Appendices

AppendixA - ProposedArticles of Association

Appendix B - Proposed By-Laws

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TABLE OF ACRONYMS AND ABBREVIATIONS

AA Article(s)of Association BL By-Law(s) CDF CommunityDevelopment Facilitator COTCO CameroonOil TransportationCompany S.A. EMP EnvironmentalManagement Plan FA FoundationAdministrator FAO FoundationAdministration Office FCFA Republicof Camerooncurrency unit. Issuedby Bank des Des Etats des l'AfriqueCentral. For the purposesof this document,it is assumedthat $US 1.00 = 600 FCFA. FEDEC Foundationfor Environment& Developmentin Cameroon FIM Fund InvestmentManager MINEF Ministryof Environmentand Forestry(in the Republicof Cameroon) NEF NationalEnvironmental Fund NGO Non-GovernmentalOrganization SORP StatementOf RecommendedPractice UNDP UnitedNations Development Program WWF World Wide Fundfor Nature

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1.0 INTRODUCTION

1.1 OVERVIEW

This document provides an overview of informationon key structural and operational details relatedto the Foundationfor Environment& Developmentin Cameroon(FEDEC). In particular, this documentdescribes:

* The characteristicsof environmentalTrust Funds/Foundations; * The locationand legal natureof FEDECincluding tax aspects; * The structureand responsibilityof the differententities of the Foundation; * The reporting,monitoring/stewardship, and auditingprocedures of the Foundation; and * Financial aspects of the Foundationincluding asset managementand disbursement of monies.

Articles of Association and By-Laws proposed for the Foundation (i.e. the Foundation's governing documents)are appendedto this report. These two documentsset out the proposed legalframework for the Foundation.

1.2 SUMMARYOF FEDEC'SKEY POINTSAND PURPOSE

FEDEC will be an independententity that is designed to provide defined long-term financial supportto defined environmentalenhancement and IndigenousPeoples' developmentactivities within the Republicof Cameroonthat are approvedby its ManagementBoard.

More specifically,FEDEC will be createdto:

* Provide defined long-term financial support for defined environmental enhancement activitiesin the followingareas: - The Mbam-Djeremarea; and - The CampoReserve area. * Provide defined long-termfinancial support for defined Bakola Pygmy-relateddevelopment activities in the regionof the Atlantic Littoralforest betweenLolodorf and in the vicinity of the easementof the CameroonTransportation System's pipeline.

IndigenousPeoples are defined by World Bank Operational Directive 4.20 as socialgroups with a social and cultural identity distinct from the dominantsociety that makes them vulnerableto being disadvantagedin the developmentprocess. Accordingly,Bakola Pygmies inhabiting areas of the AtlanticLittoral Forest-in the southern portion of the Republicof Cameroonfall within this category.

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FEDEC's establishmentis contingenton the approval of the Chad Export Project by its co- venturers.

COTCO will make a Capital contributionto FEDEC in the amount of $US 3.5 million (2100 million FCFA)2. FEDECwill be open to investmentby any legitimatedonors.

FEDEC's design draws upon considerableinternational experience in the management of environmentalTrust Fundsand Foundationsthroughout the developingworld. Overall, FEDEC's design reflectsthe followingdesirable characteristics of Trust Funds/Foundations:

* Optimaltransparency; * A high level of accountabilityfor the Foundation'sorganization and activities; * Minimizationof administrativecosts; and * Best-practicemanagement guidelines for non-profitBoards.

As with any institution,the success of FEDECwill ultimately depend on the people that are responsiblefor managingit. FEDECwill be managedby a five-personBoard of highly regarded individualsdrawn from a cross-sectionof interestsboth within the Republic of Cameroonand internationally.

1.3 FEDEC'S KEY FEATURESAND DESIGNREQUIREMENTS

Ownership,security and stability of the . Foundationto beestablished in the Foundationand its assets Netherlands{AA1.2, BLI.1} Foundation'sCapital to be investedin secureinvestments managed by a professionalasset manager {AA4.2} Financialmeans and disbursed funds exempt . The Republicof Cameroonwill grantthe fromtaxes Foundationtax-exempt status Assetsmanaged by professional3[u party AA4.9,BL7.1 FundInvestment Manager Non-profitentity AA2.3,BL1.4 Suitablegoverning documents for the . Articlesof Associationand By-Laws Foundationare in place drafted{Appendices A andB} Supportswell-defined, targeted projects AA2.1,AA3.2, AA3.5, BL1 3.3(a) associatedwith three defined Components

2 Forthe purposesof this document,it is assumedthat $US 1.00 = 600FCFA.

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Ability of any organization to contribute to the AA2.4, AA3.3, AA4.1(b) Foundation to support one or more of its three defined Components Ability of a donor organization to stipulate the AA4.3, AA4.4, BL3.4, BI13.1(b), BL13.18(d) manner in which its Capital contribution to the Foundation is to be managed and disbursed Scope for enlargement/change of projects AA2.2, AA4.7, AA7.2(m) enabled under exceptional circumstances CONFLICT OF INTEREST

Conflict of interest situations involving the AA5.7, AA5.9, BL10.4, BL1 1.2 Foundation, its Board, its activities and its contractors (including the Implementation Organizations, FA, FAO, FIM and CDF) not permitted INVOLVEMENT OF COTCO WITH FEDEC

COTCO's involvement with the Foundation . COTCO will provide a Capital contribution limited, defined to the Foundation in the fixed amount of $US 3.5 million {AA4.1(a)} . COTCO has defined the specifications by which its Capital contribution is to be managed and disbursed (expendable endowment with a 28 year life to fund the Foundation's 2 Environmental Enhancement Components and its Indigenous Peoples Development Component) {AA4.3, AA4.8, BL13.18(c)} . COTCO can only designate one person to sit on the Foundation's Board {AA5.2(b)} MANAGEMENT BOARD

Credible and effective Management Board . Board responsible for the preparation and AA4.2, AA4.4, BL3.2, BL3.7, BL13.17, approval of an annual work program and BL15.3, , BL16.3 an annual budget . Small size - Nominally five, maximum of AA5. 1, AA5.2 seven members . Credible and qualified members AA5.2 . Members designated by COTCO and the AA5.4(a) Republic of Cameroon not in a position to control the Board . Members changed on a staggered basis AA5.6(a) . Avoidance of conflict of interest situations AA5.7, AA5.9, BL10.4, BL1 1.2, BL1 1.4 regarding the Foundation's activities, its Board, and its Implementation Organizations • No single entity or organization is AA5.8 permitted to have more than one representative on the Board

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Actions requiring unanimous votes by the Board . Amend the Articles of Association AA14.1 . Amend the By-Laws AA14.1, BL2.1 . Change the size of the Board AA5.3 . Dissolve the Foundation AAI 5.2 . Open and close bank accounts AA7.2(n), BL4.1, BL4.5(d) , Procedure to transfer funds to and from BL4.3 the Foundation's offshore account . Designate signatories for the Foundation's AA7.2(n), BL4.5(g) accounts . Change the management and/or AA7.2(m) disbursement nature of donor-designated Capital contributions . Restrict the financial authority of the BL4.5 Foundation Administrator . Designation of one or more persons to AM12.2 represent the Foundation . Determine levels of Capital draw-down AA4.5 and Capital invasion Limited liability of Board members AA12.3

No formal employment relationships - all AA3.4, AA4.3, AA1 1.2, AAI 1.5, BL3.2(d), positions associated with the Foundation are BL3.4, BL4.5, BL7.2, BL13.8(b), BLI3.15, by contract BL13.16, BL14.9, BL14.10, BL15.2 Implementation Organizations selected via AAM1.1,AA11.3, AA11.4, BL13.8(d), transparent processes involving the BLI3.8(e), BL13.8(f), BL13.8(g) solicitation of proposals and the evaluation of the resources that potential Implementation Organizations can bring to bare regarding the realization of the Foundation's objectives Fund Investment Manager, Foundation AA7.2(a), AA7.2(c), AA7.2(e), AA7.2(g), Administrator, and-Community Development BL7.1, BL13.9(c), BLI3.9(d), BLI4.7, BL14.8, Facilitator positions filled via transparent BL15.1 processes_

Administration budget established and AA4.4, BL5.1(c), BL14.1(b), BL14.2, stewarded annually BL14.12(e) No remuneration for Board or Committee AA5.4(c), AA6.4, BLI6.6 members Attendance of Board members at Board AA9.1(b) meetings via electronic media permissible COTCO to reimburse the Foundation for the BL7.9 Fund Investment Manager's annual fund administration fee associated with managing COTCO's Capital contribution COTCO to reimburse the Foundation for the BLI5.4 Community Development Facilitator's annual service fee during Years 1-3 of the Foundation's existence

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MONITORINGISTEWARDSHIPAND EVALUATION Detailedaccounting of the Foundation's AA13.2,AA13.3, BL5.1(a), BL5.1(f), BL6.4, financialactivities BL7.6,BL1 3.18(k), BL14. 11, BL14.12(f) Annualfinancial audit of the Foundation's AA13.3,BL5.1(d), BL5.2, BL6.2(a) financialactivities Auditorto be an internationallyrecognized AA13.3,BL6.1 accountingfirm Definedproject approval procedures BL13 Measurablegoals for approvedprojects BL13.18(g) Stewardship/monitoringof disbursements BL3.5,BL4.5(f), BL5.1(b), BL13.18(e), and the performanceof approvedprojects BL13.18(g),,BL14.12(a), BL14.12(b), versusgoals BL14.12(c),BL14.12(d) Periodicindependent evaluations of the AA7.3 Foundation'seffectiveness DISSEMINATIONOF INFORMATIONAND LOCALCONSULTATION Regulardissemination of informationabout AA7.2(q),BL9.1 the Foundationand its activities, accomplishments,and plansto citizensof the Republicof Cameroonand interested organizations Provisionfor a forum by whichcitizens of the AA7.2(q),BL9.1 Republicof Cameroonand interested organizationscan make their opinionsabout the Foundationand its activitiesknown and can bring forwardideas and opportunitiesfor the Foundationto consider Implementationof local publicconsultation Appropriateprovisions requiring the programsby the Implementation implementationof appropriatepublic Organizationsand the CDF contractedby the consultationprograms will be includedin Foundationin order to allowlocal inhabitants contractswith the Implementation to voice their opinionsregarding specific Organizationsand the Community Foundation-sponsoredactivities in their areas DevelopmemtFacilitator

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2.0 OVERVIEWOF ENVIRONMENTALFOUNDATIONS AND TRUST FUNDS

A Foundation(also known as a Trust Fund under commonlaw) is a legal entity for managing property, money or other assets for a designatedobjective. A Foundation/Trust Fund can be designed to suit almost any particularpurpose and its structure can be simple or complex. In general,though, a Trust Fund or Foundationhas the followingcharacteristics:

* Governing Documents - The Articles of Association, which set out the principles and objects of the Trust Fund/Foundation,and the By-Laws which set out procedures for managing the Trust Fund/Foundation. In general, it is to be expected that the By-Laws would evolve over time to adapt to changing circumstances. The Articles of Association, however,are more permanent. * A ManagementBoard - A group of individualswho have the responsibilityfor managing the Trust Fund/Foundationand ensuringthat its objectivesare met. - Assets - Managedby the ManagementBoard of the Trust Fund/Foundationaccording to the criteria set out in the governingdocuments and/or by stipulationsof donors.

Environmental Foundations and Trust Funds are becoming increasingly common in the developing world and receive substantial investments from international donor agencies includingthe World Bank. More than 40 environmentalfunds have been establishedto date, with a total investmentof over $US 500 milliondollars 3.

Key benefitsof Foundations/TrustFunds regarding the financingof environmentalprograms are that they:

* Provide a long-termcommitment of support; * Leverageother funds by providinga relativelysecure institutional structure for investment; * Enableresources to be targetedat specificobjectives; * Provide a platform for negotiationbetween different parties ensuringgreater transparency and accountability;and * Bringfunding solutionsto a local level.

3 'Evaluationof Experiencewith Conservation Trust Funds', GEF Secretariat, 1998.

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In order to achieve these objectives, however, a Trust Fund's/Foundation'sdesign must accommodatea number of critical factors:

* Clearly definedobjectives, commitments and targets; * Sound and secure legalframework; * Simple,transparent and accountableoperational procedures; * Capable, committed and diligent Management Board and staff able to represent the interestsof all relevant parties;and * Sound financialand asset management.

Given COTCO's commitment to provide defined long-term financial support to defined environmental enhancement and Indigenous Peoples Plan-related activities in defined geographical areas of the Republic of Cameroon, a Capital contribution by COTCO to a Foundation/TrustFund is an attractive option regarding the provision of support for such activities.

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3.0 ESTABLISHMENT OF AN ENVIRONMENTAL TRUST FUND OR FOUNDATION IN THE REPUBLIC OF CAMEROON

3.1 LEGAL PRECEDENCE

Although the Republic of Cameroon has created government administered funds under exceptionalcircumstances, there is no legal precedentfor creating an independentTrust Fund or Foundationin the Republicof Cameroon.

The alternative to a Trust Fund/Foundation,known as a local 'Association',cannot offer the same level of stabilityand securitythat an independentoffshore Trust Fund/Foundationcan.

A Trust Fund or Foundationdoes not necessarilyneed to implement activitiesitself but can support locally registered intermediariesthereby building local capacity. In doing so, it also reduces its own administrativeexpenses by directlyfunding implementationorganizations.

In view of the discussionabove, it is appropriatethat an independent,offshore Foundation be createdto providedefined long-termfinancial support for:

3 Definedenvironmental enhancement activities in the followingareas:

- The Mbam-Djerem area; and - The Campo Reservearea.

3 Defined Bakola Pygmy-relateddevelopment activities in the region of the Atlantic Littoral Forest between and Kribi in the vicinity of the easement of the Cameroon TransportationSystem's pipeline.

Such a Foundation will be known as the Foundationfor Environment & Development in Cameroon(FEDEC).

3.2 THE PROPOSEDNATIONAL ENVIRONMENTAL FUND

In recent years, representativesof WWF, the Republicof Cameroon'sMinistry of Environment and Forests, the Presidencyof the Republic of Cameroon,and the donor communityhave reacheda consensuson the need for establishinga NationalEnvironmental Fund (NEF) in the Republic of Cameroon. It is expected that the NEF will be created in 1999 but it may not becomefully operationalfor sometime thereafter.

The NEF aims to provide a mechanismto support and implement projects defined in the National EnvironmentalManagement Plan. The NEF is proposedas a two-tier structure: an

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The wide-ranging goals and national remit of the NEF make it complementary to the strategically focused and geographically defined objectives of FEDEC5 . Collaboration and co- operation between the two proposed entities should evolve in order to avoid the duplication of efforts and to achieve maximum synergy.

4For additional information regardingthe NEF in the Republic of Cameroon,see the report entitled "FeasibilityResearch and Consultationsfor the Creationof a ConservationTrust Fund in Cameroon", MINEFand WWF-Cameroon,January 1998. 5 The combination of national and local environmentalFoundations is not without precedent - one exampleis in Brazil, where the national Foundation(FUNBIO) is complementedby a local Foundation targetedat a single protectedarea (Mamiraua).

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4.0 LEGALAND CONTRACTUALISSUES RELATEDTO FEDEC

4.1 OBJECTIVESAND SCOPE OF FEDEC

FEDEC is intendedto providedefined long-term financial support to defined activitiesrelated to the followingComponents:

* The Mbam-DjeremEnvironmental Enhancement Project Component; * The Campo EnvironmentalEnhancement Project Component; and * The IndigenousPeoples Development Component.

The precise nature of activities related to the above-listedthree Componentssupported by FEDEC is to be decidedby its ManagementBoard.

FEDEC must always act on a not-for-profit basis. It will act by disbursing funds to ImplementationOrganizations or other granteesunder grant contracts and will not implement activitiesitself in the Republicof Cameroon.

In general there will only be scope for enlargement/changeof projects related to the three Componentsof the Foundationunder exceptional circumstances.

4.2 OWNERSHIPOF ASSETS

Once FEDEC has been establishedand assets are transferred to it, legal ownership of all assets will reside with the Foundation. The ManagementBoard, acting within the Articles of Association,will have discretionover the propertyof the Foundation. All procedures,including disbursement of assets of the Foundation, are defined in the governing documents. If established in the Netherlandsas proposed,the functioning of FEDEC will be govemed by Dutch law.

4.3 SECURITYAND STABILITYOF THEFOUNDATION

4.3.1 Locationof the Foundationin the Netherlands

In orderto ensure maximumsecurity and stabilityof FEDEC,the Foundationwill be established in a third-partycountry. A number of locationsfor the establishmentof FEDECwere considered by an independentconsulting firm 6. The Netherlandsemerged from this analysis as one of the best options. It is worth noting that the Netherlands was selected by the Government of Mongoliaand the UNDPas the seat for the MongolianNational Environmental Foundation. This

6 The Environmentand DevelopmentGroup, Oxford, United Kingdom.

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selection was to a large degree influenced by the high quality legal and financial services available in the Netherlands and the country's flexible rules pertaining to Foundation membershipand management.

EstablishingFEDEC in the Netherlandspresents the followingadvantages:

* Board memberscan be nationalsof any countryand there are no residencyrequirements; * Registrationrequirements are neither onerousnor expensive; • Annualcosts, fees etc. for a Dutch Foundationare not expensive; * It is possiblefor Boardmembers to attendBoard meetings electronically; and * It is possibleto open bank accountsin the nameof the Foundationoutside the Netherlands.

In view of the advantagesthat the Netherlandsoffers regardingFoundations, it is proposedthat FEDEC be establishedin the Netherlands. Accordingly,the Foundation'sproposed Articles of Associationand By-Lawshave been drawn up to reflect the requirementsof the Netherlands (seeAppendices A & B).

4.3.2 Investmentmanagement

Subject to the supervision, requirements and guidelines of the Foundation's Management Board,the assets of the Foundationwill be investedand managedby an independentthird party managementcompany. Assets will held in secure, commingledmutual funds in an offshore locationto reducetax and managementliabilities.

4.3.3 Fiscal regime

4.3.3.1 Foundation

The possibilityof taxationof FEDEC'sassets and incomeexists in three countries:

* The Netherlands(i.e., where the Foundationis establishedand has its registeredseat); * The locationwhere the Fund InvestmentManager is situated;and * The Republic of Cameroon (i.e., the country where the Foundation will make its disbursements).

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COTCO shall not make any contributionto FEDEC before the necessary tax exemption describedin paragraphs(a) and (b) below are granted:

(a) Since the Foundation will be established in the Netherlandsand its assets will be managed by a Fund Investment Manager located off-shore in a country where the Manager'sactivities will be free of tax, the transfer of incomefrom the Foundation'soff- shore account for disbursementin the Republic of Cameroon will not be subject to taxationeither in the Netherlandsor in the locationwhere the Fund InvestmentManager is situated. However,it is necessarythat the Foundationobtain a ruling from the Dutch tax authorities stating that, given the proposed activities/circumstancesof the Foundation,the Foundationwill not carry out an enterpriseand is therefore not subject to Dutch corporatetaxation or to Value Added Tax. This ruling shall also state that the Foundationwill not be subject to Dutch capital tax regarding any contributionsand/or gifts it may receive, and shall also confirm that the Foundation is recognized as a "charityfoundation" under Dutchlaw and that gifts receivedby the Foundationfrom non- Dutch residentsare not subjectto Dutchgift tax. Gifts receivedfrom Dutchresidents will be taxable at an 11% (flat) rate.

(b) The Foundationwill receive donationsfrom a corporationresident in the Republic of Cameroon (i.e., COTCO) and will undertake activities in the Republic of Cameroon through the actions of the FoundationAdministrator and the CommunityDevelopment Facilitator. Therefore the Republic of Cameroonshall grant tax exempt status to the Foundationin orderto ensure that it will not be subjectto any taxationin the Republicof Cameroon.Such exemptionwill includebut will not be limited to any taxes, duties,fees and other charges on any contributionsand/or gifts it may receive, on any income or capital gain from the off-shore account, and on any transfer of funds between the Republic of Cameroon and the off-shoreaccounts of the Foundation.This exemption shall also grant the right for the Foundationto open, maintain, operate and close bank accountsincluding foreign currencybank accounts,both outside and within the Republic of Cameroon,to freely carry out all necessaryoperations on such bank accounts,and to freely convertfunds from one currencyinto anotherat generalcommercial rates.

4.3.3.2 Recipientsof grants of the Foundation

For organizations/entitiesin the Republicof Cameroonthat receive funds from the Foundation, tax exemptioncan be obtainedunder one of the followingscenarios:

* "Conventiond'Etablissement" - Generallysigned between a company/organizationand the Republic of Cameroon for the implementationof activities that are considered to be of strategicimportance by the Republicof Cameroon;

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* "Convention Fiscale" - Signed between sovereign states and the Republic of Cameroon {only France and Canadahave signed such agreementswith the Republic of Cameroonto date}; and

* "Accord de Coop6ration" - Signed between an organization/entity and a particular Ministry of the Governmentof the Republicof Cameroonor betweenthe Republic of Cameroonand a sovereignstate. 7

The Republic of Cameroon will grant (in a timely manner) tax exempt status to those ImplementationOrganizations and other organizations/entitiesthat will receive funds disbursed by the Foundation(if they do not already have such status) accordingto one of the scenarios listed above or via some other appropriatemechanism.

4.3.4 Legalstatus of the Foundationin the Republicof Cameroon

In accordancewith Republic of CameroonLaw No. 90/053 (19 December, 1990) and prior to any disbursementof funds by the Foundation,the Republicof Cameroonwill authorize FEDEC to pursue its activities in the Republicof Cameroonand recognizethe "Public Utility" status of the Foundation(see Article 21 of Law No. 90/053).

7Most internationalNGOs operate within the Republicof Cameroonunder an "Accordde Cooperation" agreement.

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5.0 CONTRIBUTIONS TO FEDEC

5.1 PRINCIPLES

Donorsto the Foundationwill be permittedto designate:

* The manner in which their funds are to be managed(i.e., expendableendowment versus permanentendowment, time-frame for support,etc.); * Supportto one or more of FEDEC'sthree Components;and * Supportto alternativeenvironmental enhancement and/or Indigenous Peoples development activitiesin the definedgeographical areas indicated in Section3.1.

5.2 COTCO'SCONTRIBUTIONS TO THE FOUNDATION

5.2.1 Contributionto the Fundingof FEDEC'sEstablishment

COTCOwill fund activitiesassociated with makingthe Foundationoperational. These activities would include:

* Selectingthe initial membersof the ManagementBoard; * Draftingthe key proceduralmanuals required by the Foundationand its ManagementBoard; * Selectingthe FoundationAdministrator, the Fund InvestmentManager, and the Community DevelopmentFacilitator; * Selectingthe Phase 1 ImplementationOrganizations associated with the Foundation'stwo EnvironmentalEnhancement Components; and * Assisting the Foundation in obtaining "Public Utility" and tax-exempt status from the Republicof Cameroon.

Furtherdetails pertainingto the establishmentof FEDECcan be found in Section8.

5.2.2 Capitalcontribution

COTCO will enter into a donor contract with the Foundationrelated to its $US 3.5 million Capital contribution.8 This Capital will be held within a restricted fund targeted specifically towards FEDEC's environmental enhancement and Indigenous Peoples development Components

8 COTCO'scapital contribution to FEDECis contingenton the approvalof the ChadExport Project by its co-venturers.

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COTCO has defined the following requirements regarding the management and disbursement of the monies associated with its Capital contribution to the Foundation:

* COTCO's Capital contribution to the Foundation is to be managed as an expendable endowment by a (third party) Fund Investment Manager (see below) over a period of 28 years; and

* Monies will be distributed between the Foundation's three Components on the basis of a defined formula set out in the By-Laws.

Flexibility of support across the Foundation's Components could be possible under exceptional circumstances as defined in the Foundation's Articles of Association and By-Laws.

The table below shows financial projections related to COTCO's Capital contribution to the Foundation for Year 4 to Year 28910.All figures are in 1999 $US (they do not reflect inflation - real returns will be higher in dollar terms)".

Real return Annual income Administration as Amount available for % of income12 disbursement after expenses

5% $207,000 28% $148,000

8% $299,000 20% $240,000

It is important to note that these figures are approximations and are in no way a guarantee. The annual income from the Foundation is sensitive to growth in intemational stock markets. Long

9 DuringYears 1-3 of FEDEC'sexistence, COTCO's Capital contribution to the Foundationwill be drawn- down by a total of $US 900,000.This moneywill be used to support initial projectsassociated with the Foundation'stwo EnvironmentalEnhancement Project Components- see the Offsite Environmental EnhancementProgram (Part ll of Volume4 of this EMP)for additionaldetails. 1O Annualadministration expenses associated with FEDECare outlinedin Section7.2. Real returnof assets compensatesfor devaluationover time. In this financial model,long-term inflation has beenassumed to be 2% per annum. 12It is a recommendationof the World Bankthat expensesrepresent less than 25% of the gross income of a Trust Fund/Foundation.It is importantto note, though,that this recommendationis based on an analysis of Trust Funds/Foundationswith endowments over $US 5 million. Given the fixed administrationand accountability-relatedcosts associatedwith operatinga Trust Fund/Foundation,the ratio of these costs to incomeis expectedto be higher'for Trust Funds/Foundationswith smaller capital endowments(e.g., FEDEC).

May 1999 5-2 ENGLISHCameroon EMP DM Volume4 Part l.doc ENVIRONMENTALMANAGEMENT PLAN ENVIRONMENTALFOUNDATION PLAN CHADEXPORTPROJECT CAMEROONPORTION - VOLUME4 term real asset growth in American markets is currentlyestimated at 7% and in Europe it is closer to 4%'3

As part of the process for selectinga Fund InvestmentManager for the Foundation,it will be possible for the ManagementBoard to obtain a better estimate for how well assets can be expected to perform. It will also be possible, at that stage, to better define the investment strategy for COTCO's Capital contributionto the Foundationbased on expectationsof risk versus retum.

5.2.3 Other contributions

COTCOwill reimbursethe Foundationfor:

* The Fund InvestmentManager's annual asset managementfee associatedwith managing COTCO'scapital contributionto the Foundation;and

* The Community DevelopmentFacilitator's annual service fee during Years 1-3 of the Foundation'sexistence.

5.2.4 Fiscalregime

Prior to COTCO making any of the above-mentionedcontributions to the Foundation,the Republic of Cameroon shall confirm to COTCO that such contributions and service fees received by COTCO for administrative, staff and office support for the Foundation AdministrationOffice are within the scopeof the COTCOConvention of Establishmentand that the tax regime described in such Conventionapplies to them. In particular, the Republic of Cameroonshall confirmthat the contributionsare deductibleagainst the 5% corporate income tax applicableto COTCO,that the servicefees receivedby COTCOfor the administrative,staff and office support will be taxed at 5% only, and that no other taxes, duties, fees and other chargesshall be applicableto them.

COTCO shall not make any contributionsto the Foundationbefore the confirmation,described above, is granted.

13 The Economist, December19th 1998

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6.0 THE ROLESAND RESPONSIBILITIESOF THE FOUNDATION'SENTITIES

6.1 MANAGEMENTSTRUCTURE

The proposedmanagement structure for FEDEC during the first three years of its existence is shown in Figure 1. After Year 3, the CommunityDevelopment Facilitator will no longer exist - therefore,FEDEC's organizationwill adopt the proposedstructure shown in Figure2 after Year 3.

FEDECwill be managedby a ManagementBoard (see detailsbelow).

FEDECwill enter into contractswith:

* FoundationAdministrator; * ImplementationOrganizations; * CommunityDevelopment Facilitator; and * Fund InvestmentManager.

The Board will seek specializedfinancial, legal, technical, and/or scientificadvice/expertise on an as-neededbasis.

6.2 MANAGEMENTBOARD

6.2.1 ManagementBoard's responsibilities

The primary responsibilityof the ManagementBoard is to ensure that the objectivesof the Foundationare being met to the best of the Board's ability. In order to fulfill this responsibility, the Boardmust do two things:

* Approve, steward and monitor the annual budget and annual work program of the Foundation.The Board is responsiblefor making the final selectionof projectsfor inclusion in its annualwork programand budget. * Prepare investmentguidelines for the Fund InvestmentManager to ensure that the financial commitmentsof the Foundationwill be met throughoutits lifetime.Guidelines will determine the balance of risk versus reward of the investments,and set out performanceevaluation criteria The Board is expected to obtain professionalassistance from a financial adviser on an as-neededbasis in orderto assist it in this task.

As currently proposed,the ManagementBoard will meet twice a year. The Board can meet more often if necessary.These meetings can be held electronicallyin whole or in part. The

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Board may reach decisions outside meetings providedthat all members are consulted and expresstheir positiveviews in writing.

6.2.2 The Compositionof the Foundation'sManagement Board

In order to facilitate decision-making and to reduce administrative costs, the FEDEC ManagementBoard will be small. It will, in the first instance,be comprisedof five members.As stipulated in the Foundation'sproposed Articles of Association,a maximum number of seven individualscan constitutethe Board. The Foundation'sfive proposedBoard members are:

* A representativedesignated by the Republicof Cameroon; * A representativedesignated by COTCO; * A well-knownand highly regardedcitizen of the Republicof Cameroon;

* A highly regarded,internationally recognized biologist/ecological specialist; and * A highly regarded,internationally recognized socio-economic/lndigenous Peoples specialist.

The ManagementBoard shall have a Presidentwho shall be annuallyelected from the existing membersof the Boardby a majorityvote of the Board.

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r ------Fund InvestmentManager Figure 1. Years 1-3 of FEDEC r ------__ _-, (contractual relationships shown using dashed boxes/lines) -- Foundation Administrator

CommunityDevelopment

II. r I~~~~~~~~~

Mbam-Djerem Campo Environmental Indigenous Peoples Environmental Enhancement Project Development Enhancement Project Component Component Component_

I Grant Contract I I Grant Contract I Grant Contracts with I I with an I with an ' Pygmy Communities I Implementation ' Implementation and I Organization ' Organization ' Organizations/Groups I L ------L------Working With Pygmies I 4 I on Health/Social Issues I

Utilization of Allocated Utilization of Allocated Funds for Approved Funds for Approved Programs/Projects Programs/Projects Utilization of Allocated Funds for Approved Programs/Projects

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|Foundation Management Board |

_ _ | Fund Investment Manager X Figure 2. FEDEC After Year 3 ------(contractualrelationships shown using dashed boxes/lines)

_ _ j Foundation Administrator I

I ~ ~~~~~~~~~~~_I

Mbam-Djerem Carmwpo Indigenous Peoples Environmental Environmental Development EnhancementProject EnhancementProject Component Component Component

,___ ------___------r- -'___ Grant Contract I Grant Contract Grant Contracts with with an I with an I Pygmy Communities and Implementation I Implementation I Organizations/Groups Organization Organization Working With Pygmies I'I' on Health/SocialIssues

Utilization of Allocated Utilization of Allocated Funds for Approved Funds for Approved Utilization of Allocated Programs/Projects Programs/Projects Funds for Approved Programs/Projects

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6.2.2.1 Credibility and qualifications of Board members

Prior to the establishment of the Foundation, an independent consulting firm will compile a list of candidates from which the non-Republic of Cameroon designated and non-COTCO designated Board members will be selected. Initial appointees to these three positions will be consensus selections from this list made by a committee featuring one representative of the Republic of Cameroon, one representative of COTCO, and one representative of World Bank Group.

Board (and Committee) members will not be remunerated for their services to the Foundation.

6.2.2.2 Limits to Board control by COTCO and Republic of Cameroon Members

No single entity or organization is permitted to have more than one representative on the Board. Each member of the Board shall have one vote. The quorum for a Board meeting will be 3 people. Any question proposed at a Board meeting shall be determined by a majority of votes except for those items requiring unanimous votes as per the Articles of Association.

Neither the Republic of Cameroon's designated representative nor COTCO's designated representative on the Board will be permitted to function as the President of the Foundation's Management Board.

6.2.2.3 Members changed on a staggered basis

Board members will be replaced after a defined number of years on a staggered basis as per the Foundation's Articles of Association/By-Laws.

6.2.2.4 The responsibilities of the Foundation's Management Board

The responsibilities of the Foundation's Management Board are determined by:

* The Foundation's Articles of Association and By-Laws; and

* Generally accepted standards of good practice for govemance 14

The following guidelines for FEDEC's Management Board takes into account requirements of the UK Charity Commission and good practice laid down by the US National Center for Non- Profit Boards:

14 For exampleTen Basic Responsibilitiesof Non-ProfitBoards. R.T. Ingram. NationalCenter for Non- ProfitBoards; 1997.

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General 1. Act in accordancewith the Articles of Associationand By-Laws. 2. Act together, and not delegatecontrol. 3. Managethe Foundation'saffairs prudently and take a long-termview. 4. Take proper professionaladvice about matterson which they are not competent. 5. Orient new Boardmembers as and when appropriate. 6. Ensurethat the Foundationacts with legal and ethical integrity. Objectivesand Planning 7. Elaborate the Foundation's objectives, within the framework provided in the Articles of Associationand the conditionslaid down by donors. 8. Ensurethat there is appropriateplanning of Foundationactivities. 9. Monitor/stewardthe performanceof the Foundationin terms of achievementof objectives. Finances 10. Ensureproper controland care is exercisedover the Foundation'sfunds. 11. Ensurethat properaccounting records are kept. 12. Ensurethat moniesowed are collected. 13. Ensurethat financialaudits are carried out as requiredand that audit reports are followed up on and resultsare reportedto appropriateconcerned parties. 14. Ensure that any irregularitiesidentified via a financial audit are properly and promptly reviewed, investigated, and reported to appropriate parties and implementappropriate control steps to minimizethe possibilityof reoccurrenceof such irregularities. Expenditures 15. Spend money only in accordancewith the purposesset out in the Foundation's Articles of Associationand the stipulationsof donors. 16. Ensurethat moneyis spent fairly amongstbeneficiaries. 17. Ensurethat effectiveuse is madeof resources. 18. Avoid accumulatingincome, except where there is clearspecific justification. Assets 19. Ensurethat assets are usedfor the best advantageof the Foundation. 20. Ensurethat assets are insured. Investments 21. Ensurethat investmentsare prudentand madewith professionaladvice. 22. Ensureinvestment guidelines are preparedand followed. 23. Constantly monitor investment performance. Organization 24. Select the Fund InvestmentManager (FIM), the FoundationAdministrator (FA) and the CommunityDevelopment Facilitator (CDF) usingtransparent processes. 25. Assess the performanceof the FIM, the FA and the CDF regularly. Fund-raising 26. Make effortsto raise additionalfunds on behalf of the Foundation.

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These guidelines are for illustrative purposes only and are subject to the provisions of the Foundation's(proposed) Articles of Associationand By-Laws.

6.2.2.5 Avoidingconflict of interestactivities

Mechanismsfor avoidanceof conflict of interestsituations regarding the Foundation'sactivities are detailed in the By-Laws. In essence, conflict-of-interestsituations will not be permitted under any circumstances.

6.2.2.6 Actions requiringunanimous votes by the Board

The following actionsrequire unanimous votes by the Foundation'sManagement Board:

* Amendthe Articlesof Association; * Amendthe By-Laws; * Changethe size of the Board; * Dissolvethe Foundation; * Open and close bankaccounts; * Procedureto transferfunds to and from the Foundation'soffshore account; * Designatesignatories for the Foundation'saccounts; * Change the management and/or disbursement nature of donor-designated Capital contributions; * Restrictthe financialauthority of the FoundationAdministrator; * Designateone or more personsto representthe Foundation;and * Determinelevels of Capitaldraw-down and Capitalinvasion.

6.2.2.7 Non voting attendanceat BoardMeetings and committees

The FoundationAdministrator will attend Boardmeetings without the right to vote, and will act as secretary.The Board may invite other individualsto attend Boardmeetings without any right to vote. The Boardhas powersto appointcommittees, if it so requires,on any issue.

6.2.2.8 Liabilityof Boardmembers

The membersof the Board,once the Foundationhas been established,shall be liableas per Book 2 of the DutchCivil Code.

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6.3 THE FOUNDATIONADMINISTRATOR

It is anticipatedthat the Foundationwill enter into a servicescontract with a third party, hereafter referredto as the "FoundationAdministrator". The day-to-daybusiness of the Foundationshall be accomplished by the Foundation Administrator (FA) Duties and qualifications of the FoundationAdministrator

The FoundationAdministrator will be expectedto allocateone person approximatelyhalf time to Foundationbusiness and provideadditional support on an ad hoc basis.

The FA's personnelshould have the followingskills and qualifications:

* A suitableeducational and/or relevantwork experiencedbackground; * A sound knowledgeof the objectivesof the Foundation; * Fluencyin Frenchand preferablyin Englishas well; * A familiaritywith the customsof the areascovered by the objectivesof the Foundation; * Experiencein financialmanagement and accounting;and * Well-developedorganizational and communicationskills.

The duties of the FoundationAdministrator are anticipatedto include:

Ensuringthat administrativeexpenditure(s) are kept withinthe limits set by the Board; EEstablishing and operating the FoundationAdministration Office (FAO) on a day-to-day basisas requestedby the Board (see By-Law14.14 for details of the functionsof the FAO); * Acting as Secretaryto the Boardand attendingall Boardmeetings; * Attending the meetingsof any Committeesof the Foundationat the request of the Board; and * Undertakingadditional responsibilities as may arise from time to time at the request of the Board.

6.3.1 Selectionof the FoundationAdministrator

The Board will be responsiblefor establishing and recording proper transparent selection proceduresfor the FoundationAdministrator.

The FA must be selectedby a processinvolving the open solicitationof proposals,the requestfor which must be widely advertised.The Boardmay undertakethis processor the Boardmay hire an independentconsultant for this sole purpose.Suitable candidates must be interviewedby a panel,

May1999 6-8 ENGLISHCameroon EMP DM Volume4 Part l.doc ENVIRONMENTALMANAGEMENT PLAN ENWRONMENTALFOUNDATION PLAN CHADEXPORT PROJECT CAMEROONPORTION - VOLUME4 which includesa minimumof three Boardmembers but may also includeother specialistsinvited by the Boardto participatein the interviewingand selectionprocess.

6.3.2 Contractualrelationship with the FoundationAdministrator

The services of the FoundationAdministrator will be procuredvia a services contract of fixed duration.There will be no circumstanceswhereby a permanentemployment relationship will be establishedbetween the Foundationand the FA.

The term of the contract with the FoundationAdministrator or the term of a contract with an organization to manage the Foundation AdministrationOffice shall be for the Board to determine. Upon the expirationof the term of the contract,the FoundationAdministrator may apply for a further contractualterm or the organizationmay submit a new proposalfor a further contract.

6.4 IMPLEMENTATION ORGANIZATIONS FOR THE FOUNDATION'S TWO ENVIRONMENTALENHANCEMENT COMPONENTS

The Foundation's Articles of Association specifically provide that the environmental enhancement-relatedactivities of the Foundationshould take the form of projects which are implemented contractually under grant contracts with associations or other legal entities hereafter referredto as "ImplementationOrganizations". This meansthat the Foundationitself will not carry out implementationwork itself. Implementationof environmentalenhancement- related activitiesmust therefore be via "ImplementationOrganizations".

6.4.1 Qualificationsfor ImplementationOrganisations

ImplementationOrganizations will be expected to demonstrate the capacity to carry out activitiesthat meetthe operationalstandards of the Foundation(see Section7).

6.4.2 Selectionprocess for ImplementationOrganisations

The Foundation's Management Board will select Implementation Organizations for both phases'5 of the Mbam-Djerem Environmental Enhancement Project and the Campo Environmental Enhancement Project.16 The process for selection of Implementation

15See the OffsiteEnvironmental Enhancement Program (included as PartII of Volume4 of this EMP)for a definitionof the Phase1 and Phase2 activitiesassociated with the Mbam-Djeremand Campo EnvironmentalEnhancement Projects. 16 The Foundation'sArticles of Associationallow for the appointmentof TROPENBOSas the Phase1 ImplementationOrganization for the CampoEnvironmental Enhancement Project Component since this organizationis currentlyconducting pre-gazettement studies in the CampoReserve area. However, the Phase2 ImplementationOrganization for the CampoEnvironmental Enhancement Project Component

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Organizations to undertake projects related to the Foundation's Environmental Enhancement Components shall be transparent and subject to conditions described in Article 11 in the proposed Articles of Association and in proposed By-Law 13.8. A key feature of the transparent process by which the Foundation's Implementation Organizations will be selected is the open and advertised solicitation of proposals from potential Implementation Organizations.

Evaluation of the resources that potential Implementation Organizations can bring to bear regarding the realization of the Foundation's objectives will be taken into consideration in the process used to select the Foundation's Implementation Organizations. These resources may be, for example, in the form of special expertise in relevant fields or access to supplementary funds that could be used to complement the funds available from the Foundation.

The Implementation Organizations selected for both phases of the Mbam-Djerem and Campo Environmental Enhancement Projects will be responsible for all aspects of the implementation of these projects.

6.4.3 Contractual relationship with Implementation Organisations

The services of Implementation Organizations related to the Foundation's two Environmental Enhancement Components will be procured by the Foundation via grant contracts. There will be no circumstances whereby a permanent employment relationship will be established between the Foundation and an Implementation Organization.

Grant contracts between the Foundation and the Implementation Organizations associated with the two Environmental Enhancement Components will set out terms and conditions regarding how the relationship between the parties will be managed.

6.5 COMMUNITY DEVELOPMENT FACILITATOR

It is anticipated that the Foundation will enter into a services contract with a third party, hereafter referred to as the "Community Development Facilitator". This services contract between the Foundation and the Community Development Facilitator (CDF) will exist only during Years 1-3 of the Foundation's existence - thereafter, Pygmy communities and/or organizations are anticipated to have the capacity to deal directly with the Foundation independently or through an intermediary NGO or other entity.

will be selected via a transparentprocess involvingthe open and advertisedsolicitation of proposals from potentialImplementation Organizations.

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6.5.1 Dutiesand qualificationsof the CommunityDevelopment Facilitator

The Community Development Facilitator shall be responsible for all aspects of assisting applicants prepare proposalsfor grant contracts related to Indigenous Peoples development projects/programsand all aspects of grant supervisionas describedin the Foundation'sBy- Laws. Specifically,this includes:

* Ensuringthe widest practicalsolicitation of proposalsfor grants; * Assistingapplicants with the completionof grant proposals; * Preparingthe grant proposalsin reportform for review by the Board;and * Monitoring/stewardingapproved projects/programsto ensure that funds are used for the objectivesauthorized in the relevantgrant contract.

In order to be able to carry out these duties, the CDF's personnelwill be expectedto have the followingqualifications and skills:

* Knowledgeof and experiencewith the BakolaPygmy population and their way of life; , Relevant professional skills and qualifications (e.g., organizational and communication skills); * Experiencewith establishingand runninga grantsprogram; and * Experience working with communitygroups and involving them in the decision-making processwhether through committeesor as community-basedorganizations.

6.5.2 Selectionof the CommunityDevelopment Facilitator

The CommunityDevelopment Facilitator shall be selectedby the Boardfrom a list of candidates short-listed by an independentconsultant. This independentconsultant may be a person or organization and shall be identified and retained by the Board on a specific contract to advertise,interview and preparea short list of three candidatesfor this position.The final list of candidatesshall be interviewedby a panel of three Boardmembers and any other individuals who may be co-opted by the Boardto participatebecause of their experienceor expertise.

6.5.3 Contractualrelationship with the CommunityDevelopment Facilitator

As was mentioned above, the services of the Community Development Facilitator will be procured via a services contract of fixed duration.There will be no circumstanceswhereby a permanentemployment relationship will be establishedbetween the Foundationand the CDF.

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6.5.4 COTCO's reimbursement of the Community Development Facilitator's annual service fee

COTCO will reimburse the Foundationfor the Community Development Facilitator's annual servicefee duringYears 1-3 of the Foundation'sexistence.

6.6 THE FUND INVESTMENTMANAGER

The Foundation'sManagement Board will select a Fund InvestmentManager (FIM), which is likelyto be a reputableinvestment bank, or similarfinancial institution.

The size of FEDEC's initial Capital is likely to be too small to demand dedicated investment managementand so the Foundation'sfinancial means will be invested in commingledfunds.

6.6.1 Duties and qualificationsof the Fund InvestmentManager

The FIM will be responsiblefor investingthe Foundation'sCapital and other monies.

The role of the FIM is to investthe funds in investmentsjudged to representthe best opportunity to achievethe investmentgoals of the Foundation'sBoard, and to presentregular summariesof performance.

6.6.2 Selectionof the Fund InvestmentManager

The Foundation'sFund InvestmentManager will be a reputablefinancial institution selectedby the ManagementBoard via a processinvolving the open solicitationof proposals.

Reputablefinancial institutionsthat are candidatesfor the FIM positionshould be pre-qualified asset fund managers.All pre-qualifiedcandidates must disclose any interest they might have either directly or indirectly whether through a subsidiary or related company, partnershipor organization in either the Foundation, its donors, or any of its present or proposed ImplementationOrganizations. The Boardwill either carry out the FIM selectionprocess itself or appointan outside consultant- this consultantwould be chargedwith producinga short list of at least three candidates. In the case that the Board carries out the selection itself, it must interviewcandidates before a panel of at least three Board membersand any experts the Board may wish to invite.

Competingfinancial institutions for the FIM position shall be providedwith:

* Informationabout the objectivesof the Foundation; * Annual income requirements;and * Selectioncriteria.

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Candidatesinterviewed will be evaluatedon investmentcapability, experience and reputation, safetyand stability,demonstrated track record,proposed management fee and other costs.

6.6.3 ContractualRelationship with the Fund InvestmentManager

The services of the Fund InvestmentManager will be procured via a contractof fixed duration. There will be no circumstances whereby a permanent employment relationship will be establishedbetween the Foundationand the FIM.

6.6.4 COTCO's reimbursement of the Fund Investment Manager's Annual Asset Managementfee Associatedwith COTCO'sCapital Contribution

COTCO will reimburse the Foundationfor the Fund Investment Manager's annual asset managementfee asociated with managing COTCO's Capital contributionto the Foundation while this Capital amount is managed as an expendable endowment and for a term not exceeding28 years.

The likely asset managementfee of the FIM will range between 0.5% and 1.5% of the Foundation'sCapital.

6.7 PROCEDURES FOR SELECTING FINANCIAL AND OTHER PROFESSIONAL ADVICE

The ManagementBoard is free to select the Foundation'sauditor in any manner it considers appropriate,provided the auditor is an internationallyrecognized accounting firm.

The ManagementBoard is free to seek legal, financial,technical, and scientificadvice on an as- needed basis in any manner that it considersappropriate. However, it is anticipatedthat the Board will establish proceduresfor the selection of such advisers as part of the Foundation's procurementguidelines.

The Foundation'sgoverning documents make provisionfor the Board to engage professional assistancein the evaluationof projectsfor funding.

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7.0 OPERATIONALDETAILS OF THE FOUNDATION

7.1 PROJECT MANAGEMENTPROCESSES

Projects will be selected and funded by the Foundation through a pre-determined process of identification, formulation, selection, and approval. Conditions and processes that lead to the approval of projects for funding by the Foundation are described in By-Law 13.

Following the approval and funding of projects, the monitoring and stewardship of such projects will follow the management processes described in the By-Laws.

7.1.1 Project identificationand formulation

Processes and conditions related to the identification and formulation of projects for submission to the Foundation include:

* Projects may be identified and formulated by donors, potential or actual Implementation Organizations, and Pygmy communities and/or their representative organizations;

* Project proposals can be submitted to the Foundation for consideration at any time;

* All project proposals shall be formulated with sufficient detail to form the basis of a contract;

* The Board may review submitted project proposals itself or it may delegate the initial review to an advisory committee, in which case it will still receive all proposals. Proposals may be returned to those submitting them for modification if appropriate; and

* The Board may establish a cost threshold above which proposals require a written independent feasibility evaluation.

7.1.2 Project selection and approval

Projects that have been submitted to the Foundation for funding consideration will go through a process of appraisal and selection by the Board leading to the approval for funding of a limited number of projects that meet the Foundation's specifications.

The primary project selection criterion associated with FEDEC is that all of its programs and projects must meet the overall objectives of the Foundation as stated in Article 2 of the Articles of Association. The Board will also develop more detailed project selection and ranking criteria in order to:

* Ensure that the quality of projects implemented is high, and;

* Where the number of projects submifted exceeds funds available, ensure that the highest quality projects are selected from among those submitted.

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All projectsmust be approvedby a majoritydecision of the Boardbefore implementation.

7.1.3 Project Implementationand control

The implementationof projectsassociated with the Foundation'sEnvironmental Enhancement Componentsshall be conductedby ImplementationOrganizations and not by the Foundation itself.

The CommunityDevelopment Facilitator (CDF) will facilitatethe implementationof projects and grant programs associatedwith the Foundation'sIndigenous Peoples Development Component during Years 1-3 of the Foundation'sexistence. Any other grant programswill be implemented by the CDF or by another organizationselected according to the same transparentprocess and conditionsas was used to selectthe CDF.

All projects funded by the Foundationmust have measurablegoals associatedwith them, a defined schedulefor written reporting,and a statementconcerning monitoring/stewardship and evaluation processes (see Section 7.3). It is the role of the Foundation Administrator to coordinate the submission of stewardship reports and monitoring data by Implementation Organizationsand the CDF.

7.2 ADMINISTRATIONCOSTS, THEIR CONTROLAND MINIMIZATION

Examples of how the administrationcosts associated with the operation of FEDEC will be minimizedinclude: * Ensuringthat all of the Foundation'sfunds and disbursementshave tax exemptstatus; * Allowingfor electronicattendance of BoardMembers at Boardmeetings; * Non-remunerationfor Boardmembers and Committeemembers; * Reimbursementby COTCO of the CDF's annual service fee during Years 1-3 of the Foundation'sexistence; and * Reimbursementby COTCO of the Fund Investment Manager'sannualfund administrative fee associatedwith the managementof COTCO'sCapital contributionto the Foundationfor a 28 year period.

In addition, the Board will have a responsibilityfor devising, approving and stewarding the Foundation'sannual budget.

The administrationexpenses related to FEDECare set out in the table below. These estimates are based on the costs of contractinga third party to provide FoundationAdministrator services and office support for the FoundationAdministration Office. In addition, these expenses

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Recurrent AnnualExpenses for FEDEC1 $US Foundation Administrator Services2 17,300 Secretary to the Foundation Administrator 3,900 Administration costs3 15,330 Audit 3,000 Professional advice 7,000 Financial advice 3,200 Board travel and expenses4 9,330 TOTAL 59,060

1 Based on a scenariowhere, as part of a competitivebidding process, the Foundationhas selected COTCOto provideservices and officesupport to the FoundationAdministration Office. 2 Based on half the salary that a non-expatriateemployee of COTCO would receive for a similar position. 3 IncludesNational Insurance, office space,equipment usage, advertising, security and local transport for the Foundation Administrator as well as miscellaneousoperating expenses including the annualizedcosts associatedwith the evaluationof the Foundationthat will occur once every 5 years (see Article7.3). 4 Two peopletravelling internationally to one Boardmeeting held in the Republicof Cameroon,with the remainingmeetings held by teleconference: - Tripsfrom Europe:$US 3,040x 2 peoplex once per year = $US 6080 - Accommodations:$US 175/dayx 5 peoplex 2 daysonce per year = $US 1750 - Other Expenses: $US 100/dayx 5 peoplex 3 times per year = $US 1500

7.3 MONITORINGISTEWARDSHIPAND EVALUATION

The Foundation's governing documents require that all approved projects have certain measurable goals and that the Implementation Organizations and the Community Development Facilitator provide periodic reports for each project. These reports may include independent audits of the activities and accounts of the Implementation Organizations.

The Board will establish suitable stewardship and performance evaluation procedures for approved projects. The Board will also periodically commission an independent review of impact of the Foundation's activities as a whole.

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7.3.1 Detailedaccounting of the Foundation'sfinancial activities

The FoundationAdministrator is requiredto provide quarterly accountsto the President of the Board, and more detailed half yearly accounts and reports to the full Board prior to Board meetings.FEDEC's Articles of Associationrequire that the financial accountsof the Foundation include at least a scheduleof the revenuesand expenditures,analyzed by fund, and a balance sheet, with a note to analyzeCapital and reservesby fund. The Boardis requiredto approvethe Foundation'sannual accounts.

7.3.2 Accountingstandards

FEDEC's governing documentsdo not specify which accountingstandards and policies are to be adoptedby the Foundation. Neverthelessit is anticipatedthat the Boardwill ensure that its books are maintainedin a mannerthat meets or exceeds InternationalAccounting Standards or the accountingstandards of the countrywhere the Boardmeets most often. Normal accounting standards do not generally cover the specific issues arising in a Foundation;therefore it is anticipated that the Board will direct that the accounts of the Foundation be prepared in accordance with the UK Charity Commission Statement of RecommendedPractices ('The CharitiesSORP') or similar guidancefrom anothercountry.

7.3.3 Annual FinancialAudit

The Foundation's governing documents require that a financial audit of the Foundation be carried out annually by an internationalaccounting firm. However, a local firm may audit the administration budget of the Foundationthat is spent in the Republic of Cameroon. The Foundation'smain auditorwill be an internationallyrecognized accounting firm.

Grant contracts with ImplementationOrganizations will require them to account for funds transferredto them, and the Foundation'sauditors will rely on the accounting informationso provided.

It is anticipatedthat the Fund InvestmentManager's own auditors will provide an annual audit reportto the Boardon the Foundation'sinvestments.

7.3.4 Stewardshipand monitoringby the Board

The Board has the responsibilityto devise, approve and steward the annual work plan and budget of the Foundation.In addition,the By-Lawsrequire that no expenditureshall be made unless it is part of a planned expenditureapproved by the Board. Defined project approval proceduresincluding measurablegoals for approved projectsare an importantfeature of the Foundation.

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A fundamental feature of FEDEC is that the Foundation is accountable for its activities. In support of this, the Board is required to monitor/steward all projects funded by the Foundation. The Board will be assisted in this effort by the Foundation Administrator, Implementation Organizations associated with the Environmental Enhancement Components, the Community Development Facilitator, and when necessary, independent consultants. In any event, the progress of all projects will be stewarded against measurable goals.

7.4 CONFLICT OF INTEREST, DISSEMINATION OF IINFORMATION, AND LOCAL PUBLIC CONSULTATION

7.4.1 Conflict of interest

Conflict of interest situations involving the Foundation, its Board members, its contractors, and any person/entity affiliated with the Foundation and/or its activities are not permitted.

7.4.2 Dissemination of information

There will be regular dissemination of information about the Foundation, its activities, accomplishments and its plans to the citizens of the Republic of Cameroon and to relevant organizations.

In addition, at least once each calendar year, the Board will sponsor a Public Information Session in the Republic of Cameroon. The purpose of the Public Information session is to provide:

* Information relating to the activities, achievements, and plans of the Foundation; and

* A forum in which interested individuals and organizations can express their opinions about the Foundation and/or its activities and bring forward ideas/opportunities that are relevant to the Foundation and its activities.

The date, location, and time of each Public Information Session will be widely advertised. The Board, through its representatives at the Public Information Session, will capture all opinions and ideas/opportunities for further consideration.

7.4.3 Local public consultation

The Implementation Organizations that the Foundation will contract with to undertake environmental enhancement activities in the Mbam-Djerem and Campo areas will be required to devise and implement local public consultation programs. These on-going programs will allow for local inhabitants to provide their opinions on the specific environmental enhancement activities occurring in their areas. Similarly, the Community Development Facilitator will devise

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8.0 IMPLEMENTATION

Getting FEDEC to the point that it is operational will involve the following three activities:

* Incorporation of the Foundation.

* Recognition of "Public Utility" and tax-exempt status for the Foundation by the Republic of Cameroon; and

* Negotiation of a donor contract between the Foundation and COTCO.

The first two activities can be undertaken simultaneously, while the timing of the second activity is contingent on the successful completion of activity #1.

8.1 RECOGNITION OF "PUBLIC UTILITY' AND TAX-EXEMPT STATUS

The Republic of Cameroon will be responsible for conferring "Public Utility" and tax-exempt status upon the Foundation in a timely manner. If appropriate, COTCO will assist FEDEC in this matter.

8.2 NEGOTIATION OF A DONOR CONTRACT BETWEEN FEDEC AND COTCO

Once FEDEC has obtained "Public Utility" and tax-exempt status from the Republic of Cameroon, COTCO will negotiate a donor contract with the Foundation's Management Board.

This donor contract shall provide for the revocation of the donation if one of the following event arises:

(a) The Foundation is not granted or subsequently ceases to enjoy a "Public Utility" status and an exemption from all taxes, duties, fees and charges in the Republic of Cameroon; or (b) The Republic of Cameroon breaches any of its obligations under the Offsite Environmental Enhancement Program (the Mbam-Djerem Environmental Enhancement Plan and the Campo Environmental Enhancement Plan); or (c) COTCO is nationalized or expropriated from all or part of its assets in the Republic of Cameroon.

The amount of the COTCO endowment which has not yet been distributed at the date of such an event shall be promptly returned by the Foundation to COTCO upon COTCO's written request.

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8.3 GENERALCONSIDERATIONS RE THE INCORPORATIONOF THE FOUNDATION

The implementationprocess for FEDECwill involve the appointmentof Board members,legal registrationand the gift of Capital and various other initial activitiessuch as the selectionof the appointmentof Fund InvestmentManager and the EnvironmentalEnhancement Components' ImplementationOrganizations.

Table 1 provides a summaryof the main actionsthat are requiredto establish the Foundation and make it functional.These actionsare also presentedas a scheduleof inputs at the end of this Section.

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Table I Implementation Activities Related To FEDEC

Before Formation After Formation Management . Identification of members . Legally appointed management Board . Preliminary meetings in . Formal meetings steering capacity Legal Final versions for registration Documents (Articles of Association, By- Laws) Manual for Preliminary draft . Interim version Foundation . Final version developed by Administration Foundation Administrator and approved by Board Manual of grant Preliminary draft * Final version developed by Procedures Foundation AdministratorlCDF and approved by Board Implementation . Short list * Selection of organizations Organizations . Solicitation of proposals . Formal contractual commitments . Organizations identified defined, contracts signed | Draft contracts . Disbursements commence | Completed project documents Foundation Candidates identified Candidate selected and contracted Administrator Community Candidates identified Candidate selected and contracted Development Facilitator _ Fund Investment . Short list . Final evaluation, Manager . Solicitation of proposals . FIM selected and contracted . Draft investment guidelines . Final investment guidelines Financial Preliminary draft * Interim version Management . Final version developed by Manual Foundation Administrator and approved by the Board. Deed of Gift Gift made Bank accounts Possible banks identified Accounts opened

8.4 INDICATIVE AGENDAS FOR BOARD MEETINGS

The following agendas have been developed to give an indication of the workload of the initial meetings of the Foundation's Management Board - inevitably changes will occur. The term 'preliminary meeting' has been used to denote meetings held before formal creation of the Foundation.

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PreliminaryMeeting No. 1 1. Introductoryremarks. 2. Commentson Articles of Association,By Laws, ProjectDocuments. 3. Outline of AdministrationManual. 4. Outline of FinancialManagement Manual. 5. Selectionof Fund InvestmentManager (FIM) - generalprocess. 6. Selectionof FoundationAdministrator - generalprocess. 7. Review of Deed of Gift. 6. Future implementationwork plan.

BetweenPreliminary Meetings No. 1 and No. 2 The following tasks would be undertaken: 1. Revisionsto Articles of Associationand By-Lawsgenerated. 2. Preparationof 1st draft of AdministrationManual. 3. Preparationof 1st draft of FinancialManagement Procedures Manual. 4. Pre-qualificationfor the FIM. 5. Preparationof first drafts of InvestmentGuidelines and FIM solicitation documents. 6. Drafting of Fund Administratorjob description,service contract, solicitationdocuments and selectioncriteria.

PreliminaryMeeting No. 2 1. Review of DraftAdministration Manual. 2. Review of Draft FinancialManagement Manual. 3. Outline of grant ProceduresManual. 4. Review of draft investmentguidelines and FIM solicitationdocuments. 5. Definitionof ImplementationOrganization Solicitation Process. 6. Adoption of Articles of Associationand By-Lawswhich wouldthen go for translation. 7. Approval of FoundationAdministrator documents and solicitationprocess. 8.. Opening of FoundationBank Accounts.

BetweenPreliminary Meetings No. 2 and No. 3 1. Draftingof InterimGrant ProceduresManual. 2. Preparationof Initial Budget.

PreliminaryMeeting No. 3 1. Review of InterimGrant ProceduresManual. 2. ImplementationOrganizations. - Review of solicitation documents. - Review of draft grant contracts.

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3. Definitionof CommunityDevelopment Facilitator (CDF) selection process. 4. Review of initial budget. 5. Update on FoundationBank Accounts. 6. Review of InvestmentGuidelines and FIM solicitationdocuments. 7. Approval and signatureof Articles of Associationand By-Laws.

Before "Official' Meeting No. 1 1. Registrationof Articles of Associationand By-Lawsin The Netherlands. 2. Signingof Deed of Gift. 3. Draftingof CDF solicitationdocuments. 4. Assemblyof data on BankAccounts.

"Official" Meeting Number No. 1 Dependingon the level of agreementachieved at the preliminarymeetings, it might be possible for the first officialBoard meetingto be held remotely.

1. Electionof President. 2. Formalapproval of initial operatingbudget. 3. Formal approvalof arrangementsfor implementationmanagement support. 4. Formal approvalof InterimFoundation Administration Manual. 5. Formal approvalof initial budget. 6. Formal approvalof InterimFinancial Management Manual. 7. Formal approvalof ImplementationOrganization solicitation process. 8. Formalapproval of FoundationAdministrator solicitation process. 9. Formalapproval of openingof bank accounts. 10. Formalapproval of FIM solicitationprocess.

Between "Official"Meetings No. I and No. 2 1. Solicitationand evaluationof proposalsfrom potentialImplementation Organizations. 2. Evaluationand interviewsof candidatesfor the FoundationAdministrator position. 3. Depositof COTCOCapital contribution. 4. Solicitationand evaluationof FIM proposals.

"Official"Meeting No. 2 1. Formal selectionof ImplementationOrganizations. 2. Formal selectionof the FoundationAdministrator. 3. Formal selectionof the Fund InvestmentManager.

Between "Official"Meetings No. 2 and No. 3 1. Completionof ImplementationOrganization-related documentation.

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2. Selectionof FoundationAdministrator. 3. Selection of FIM, and discussionswith FIM on investmentguidelines.

"Official"Meeting No. 3 This meeting will be attendedby the FoundationAdministrator. 1. Signatureof ImplementationOrganization contracts. 2. Approval of revisedinvestment guidelines. 3. Approval of Grant ProceduresManual. 4. Approval of Community Development Facilitator solicitation process and other documents.

Between 'Official"Meetings No. 3 and No. 4 1. CDF solicitation. 2. FoundationAdministrator develops Foundation's systems. 3. Developmentof initialWork Plan and Budget. 4. Deposit of endowmentswith the FIM.

"Official"Meeting No. 4 1. Selectionof CDF. 2. Approval of initial Work Plan and Budget.

SubsequentActivities 1. Commencedisbursements to ImplementationOrganizations. 2. Revisionof the FoundationAdministration Manual. 3. Finalizationof the Grant ProceduresManual. 4. Commencegrants relatedto the IndigenousPeoples Development Component.

8.5 PHASINGOF THE IMPLEMENTATIONPLAN

It is anticipatedthat it will take a period of six monthsto make the Foundationfully operational. Those six months are divided into three phases, each of two months' duration. They are presentedin the scheduleof inputsthat follows.

8.5.1 Phase 1

This phase consists of the preparatory work to create the Board, to prepare final legal documentation and to develop the operational proceduresfor running the Foundation, for making appointmentsand for contracting potential EnvironmentalEnhancement Component ImplementationOrganizations. Phase I reaches its completionat the end of two months, with the formal legal registrationof the Foundation(in the Netherlands).

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8.5.2 Phase 2

Once the Foundation is registered, the Board acquires powers and responsibilities, which will be exercised in the second phase to fill positions and reach other formal decisions. The Foundation becomes administratively operational, and this period is therefore used to finalize the financial and other administrative procedures, and to formally solicit the proposals from potential Implementation Organizations. Phase 2 ends with the completion of the deed of gift: the moment at which funds are transferred to the Fund Investment Manager. Interim measures will need to have been taken in order to finance the operations of the Foundation and its development up to this point.

8.5.3 Phase 3

The final phase sees the completion of the Foundation's administrative and financial procedures, and their approval by the Board at its second meeting. Project-related commitments are made, pending the fulfillment of necessary conditions and, once these are met, the Foundation becomes fully operational at the end of the sixth month with the disbursement of the first funds.

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Figure1. SCHEDULEOF INPUTS

IPHASE1 PHASE2 PHASE 3 MONTHI MONTH2 MONTH3 MONTH4 MONTH5 MONTH6 Board Identificationof members

Preliminarymeetings in steeringcapacity

Formalmeetings l_

LegalDocuments Final versionsfor registration

Registration,translation

Finalizationof statusin Republicof Cameroon

Manualfor Foundation Preliminarydraft Administration ______Interimversion

Administrator and approved by Board______i _ _ _ _ Manualof grant Preliminarydraft procedures ______r,~Fial versio deveoe by FA/CDFand______

Implementation Potentialorganizations identified

Draft grant contracts______

Completedproject documents __

Formal proposal, solicitation, and selection _ __ _ 1 i ______

Contractsdeveloped and signed

Disbursementscommence

Foundation Candidatesidentified

Administrator ______Candidateselected and contracted

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Community Preparatorywork including identification of DevelopmentFacilitator candidates.

Candidateselected and contracted

Fund Investment Shortlist Manager Solicitationdocuments

Draftinvestment guidelines

Finalevaluation, selection and contracting

Final investmentguidelines

FinancialManagement Preliminary draft Manual Interimversion

Finalversion developed by FA and approved by Board Deedof Gift Finalversion

Giftmade

Bankaccounts Possiblebanks identified

Accountsopened

MONTH1 MONTH2 MONTH3 MONTH4 MONTH5 MONTH =

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APPENDIXA

PROPOSED ARTICLES OF ASSOCIATION

FOUNDATION FOR ENVIRONMENT & DEVELOPMENT IN CAMEROON

(Unofficial English translation)

1. ARTICLE 1. NAME AND CORPORATE SEAT

DEFINITIONS.

1.1. The name of the Foundation is: "Stichting FOUNDATION FOR ENVIRONMENT & DEVELOPMENT IN CAMEROON."

1.2. The Foundation is constituted under Dutch law and the seat of the Foundation is in The Hague, The Netherlands.

1.3. Definitions

(a) Appraisal shall mean the process of determining whether a Component or grant proposal is suitable for approval and funding by the Foundation.

(b) By-Laws shall mean the rules enacted by the Board to regulate the business of the Foundation and its committees.

(c) Capital shall mean the resources available to the Foundation which are held for investment to provide income for the purposes of the Foundation. Capital may be in the form of an expendable endowment where the Board has the power to convert the Capital into income over a defined draw-down period, or a permanent endowment, where the Board has no such power.

(d) Community Development Facilitator (CDF) shall mean the third party selected and contracted by the Foundation to assist with the implementation of an Indigenous Peoples Development Component as defined in Article 3.2 (b).

(e) Component shall mean a defined set of operational activities of the Foundation.

(f) Donor shall mean any person or legal entity who makes a donation exceeding a fixed amount, determined by the Board.

(g) Draw-down shall mean the amount that the Board has determined is appropriate to draw-down for expendable endowments to provide appropriate funds to support the Foundation's objectives over the draw-down period. The draw-down period is that period during which an expendable endowment must be spent. The

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draw-down amount shall cover income return, capital gains, and invasion of principle of Capital investments draw-down annually.

(h) Environmental Enhancement Component Program Implementation Organization shall mean a third party contracted by the Foundation to implement an environmental enhancement program as defined in Article 3.2 (a).

(i) Evaluation shall mean the process of assessing whether a Component or project that has been implemented is meeting its objectives and having a impact.

(j) Foundation Administration Office (FAO) shall mean the office of the Foundation in the Republic of Cameroon designated as such by the Board.

(k) Foundation Administrator (FA) shall mean a third party contracted by the Foundation to manage the Foundation Administration Office (FAO).

(I) Fund Investment Manager (FIM) shall mean a third party contracted by the Foundation to manage the Capital and any Income invested with the Capital of the Foundation.

(m) Grantees are successful applicants who have submitted a project proposal for a grant to the Foundation and which has been approved by the Board and have entered into a grant contract with the Foundation.

(n) Income shall include investment income; legacies, donations and grants that are not stipulated as Capital; gains from the disposal of fixed assets; assets revaluation gains but not including capital gains on investment of Capital; and annual amounts drawn-down from expendable endowments.

(o) Income Reserve shall mean income from one year that is set aside or retained for use in future years and may or may not be invested with the Capital.

(p) Indigenous Peoples describes social groups with a social and cultural identity distinct from the dominant society that makes them vulnerable to being disadvantaged in the development process as per World Bank Operational Directive 4.20.

(q) Nominating Authority shall mean the person(s) or legal entity nominating Board members as provided for in Article 5.2.

(r) Restricted Funds shall be funds that may comprise Capital, Income and Income Reserve and which are restricted for use on specific activities which are within the objects of the Foundation.

2. ARTICLE 2. OBJECTS

2.1. The objects of the Foundation are:

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(a) To provide long-term financial support for environmental and Indigenous Peoples development improvements in the Republic of Cameroon in the following three geographical areas:

i the Mbam-Djerem area;

ii the Campo Reserve area; and

iii Bakola Pygmy-inhabited areas in the Atlantic Littoral forest between Lolodorf and Kribi.

(b) To provide defined financial support for defined activities of the following three Components:

i the Mbam-Djerem Environmental Enhancement Project Component;

ii the Campo Environmental Enhancement Project Component;

iii the Indigenous Peoples Development Component; and

iv any additional Projects/Components which might be established in accordance with Article 2.1 (a) to give effect to the objects of the Foundation.

2.2. If political or social changes occur in the Republic of Cameroon, which affect Article 2. 1, or there is an international change in approach to the environmental enhancement and/or Indigenous Peoples development activities, which would cause the Board to reconsider its environmental enhancement and/or Indigenous Peoples development activities in the Republic of Cameroon, then the Board shall have the exclusive authority to consider other environmental enhancement and/or Indigenous Peoples development projects which relate to Articles 2.1.(a) and (b) and may decide to provide financial support to some or all of these activities. This provision of financial support may be from a re-allocation of money from Restricted Funds.

2.3. This Article describes the sole objects of the Foundation which shall operate at all times on a non-profit basis.

2.4. All and any donations made to the Foundation of whatever kind shall be acceptable to the Foundation only if they are for the objects in 2.1 above.

3. ARTICLE 3: FOUNDATION ACTIVITIES AND OPERATIONS

3.1. All operational activities of the Foundation, shall take the form of distinct Components that are approved by the Board.

3.2. Components shall be of two types:

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(a) EnvironmentalEnhancement Component programs comprising a specified range of activitiesfor a specifiedenvironmental purpose. Environmental Enhancement Componentprograms may be broken down into phaseswhere one function of an earlier phase is to specifyin greaterdetail the activitiesof the later phase.

(b) IndigenousPeoples Development Component programs where the Foundation will solicit proposalsfor grantsto support projectsmeeting specified criteria and purposesand make grantsin responseto proposalsapproved by the Board under a grant contract(IPP contract).

3.3. Componentsmay be identifiedand formulatedby the Foundationor by its Donors.

3.4. EnvironmentalEnhancement Component programs will always be implemented through grant contract(s)with ImplementationOrganisation(s) .

3.5. The activitiesand operationsof the Foundationshall be restrictedto Components meetingthe requirementsof Articles 3.1, 3.2, 3.3, and 3.4; any administrativeor managementfunctions required to implementcomponents; fund raising; and functions and tasks set out in the Articlesof Associationand By Laws.

4. ARTICLE4. FINANCIALMEANS

4.1. The financialmeans of the Foundationshall consistof:

(a) A restrictedfund consistingof a Capitalendowment to be made by the CameroonOil TransportCompany S.A. (COTCO)of US$3,500,000.00(Three million five hundredthousand dollars) under a donor contractwith the Foundation;

(b) Donationsfrom other entitieswhich may or may not be in additionalRestricted Funds; and

(c) Any other revenuesthat mightarise.

4.2. The methodin which the Incomegenerated each year by the investmentof the Foundation'sfinancial means is disbursedby the Board,is subjectto regulationsin the By-Laws,the Foundationbudget approved annually by the Boardand the provisions containedin the agreementsbetween the Board andspecific Donors.

4.3. The Capital of the Foundation,contributed by COTCO,see 4.1.(a) and any subsequent additionalCapital from other Donors,unless otherwisestipulated in the donation agreement,shall be managedby the FIM on the basisof a contractualagreement with the Foundation.

4.4. The Foundationannual budget approved by the Board shall indicate how the budget is allocatedto the various funds of the Foundation.The expenditureagainst each fund shall not exceedthe total of the Draw-downamount, the availableIncome Reserve,

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and any retainedIncome carried forward from the previousyear.

4.5. For each fund with a expendableendowment, the Board shall determineby unanimous vote a Draw-downamount which shall be its best estimate of the amount,constant in real terms, that can be drawn-downeach year.

4.6. The Boardshall decidewhether to disburseall or any of the Draw-downfor a particular year in that year and is not requiredto disburseany or all of the Draw-downamount for a given year in that year. At the end of eachyear, any Draw-downamounts not disbursedmay at the discretionof the Boardbe carriedforward as Incomefor the followingyear; transferredto the IncomeReserve; or returnedto the Capital.The Boardshall conductthe affairsof the Foundationin such a mannerso as to ensure that the Draw-downof an expendableendowment shall occur appropriatelyduring the Draw-downperiod.

4.7. If politicalor social changesoccur in the Republicof Cameroon,or there is an internationalchange in approachto environmental/ IndigenousPeoples development activities,or for whateverreason it is not possibleor consideredinappropriate by the Boardto expend Incomeof a restrictedfund in accordancewith the restrictionsof that fund then the Boardshall:

(a) changethe restrictionon the fund to allow for supportof alternativeactivities that meet the same objectivesof the restrictedfund, and which are in the geographicalareas defined in Article 2.1(a); or

(b) where the changein (a) is not possible,then re-allocatethe fund to otherfunds of the Foundation,so as to keepas far as possible,the ratio of the funds constant with the original Donorfunds.

4.8. The Capital of the Foundationcontributed by COTCO,and expendedduring the fixed twenty-eight(28) year term shall be investedby the FIM but not deemedto be Capital over the draw- down period. In settingthe Draw-downamount the Boardmust take advice from the FIM and may also take advicefrom other financialadvisers. The Draw- down amountmay only exceedthe amountindicated by the FIM if agreed by a unanimousdecision of all Boardmembers entitled to vote.

4.9. The Capitalcontributed to the Foundationby COTCOand all subsequentCapital from other Donorsshall be managedby a third party Fund InvestmentManager/s and not by the Boardof the Foundation.

5. ARTICLE5. THE BOARD

5.1. The Boardof the Foundationshall consistof at least five members.The numberof Boardmembers shall be determinedby a unanimousvote of the Board,but shall not exceed seven (7) members.

Only natural personsmay be appointedto the Board.

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5.2. Boardmembers shall be appointedon the basis of personalmerit and shall include:

(a) One persondesignated by the Governmentof the Republicof Cameroonunless Article 8.2 applies;

(b) One person designatedby CameroonOil TransportCompany S.A. (COTCO) unlessArticle 8.2 applies;

(c) A well-knownand highly regardedcitizen of the Republicof Cameroon;

(d) A highly regardedand internationallyrecognized Biological or Ecologist Specialist; and

(e) A highly regardedand internationallyrecognized Socioeconomic or Indigenous PeoplesSpecialist.

5.3. If, subjectto Article 5.1, the size of the Board is to be increasedor decreasedthen the full Boardshall by a unanimousdecision decide which categoriesshall:

(a) Ceaseto exist in the case of a decreasein size of the Board;AND

(b) Which additionalcategories shall be includedif the Boardsize is increased.

5.4. (a) The Boardshall have a Presidentwho shall be electedfrom the existing membersof the Boardby a majorityvote of the Board. He or she shall hold office for one year in his or her capacityas Presidentand be eligiblefor re-election.

Neitherthe COTCOdesignated representative nor the Republicof Cameroondesignated representativeon the Boardmay be electedor nominatedto serveas Presidentof the Board.

(b) The FoundationAdministrator shall act as Secretaryto the Board,and attendall Boardmeetings. The FoundationAdministrator is not a memberof the Boardand shall not have a rightto vote.

(c) No memberof the Boardshall be paid any remunerationfor any servicehe/she may performfor or on behalfof the Boardduring his/her term(s) of appointmentbut may claimfor reasonablelegitimate expenses incurred as a resultof suchservice.

5.5. All membersof the Boardshall be appointedfor a term of three years.

5.6. (a) Membersof the Boardwill retire by rotationin accordancewith a rotationlist to be drawn up by the President.A Boardmember retiring in accordancewith the rotationlist, shall without prejudiceto the provisionof section5.6 (b) of this Article be eligible immediatelyfor reappointment.When drawing up the rotation list the Presidentshould ensurethat a sufficientnumber of experiencedBoard membersare retainedwith each rotationso that there is effectivecontinuity in the work of the Board.

(b) Future appointmentsto the Boardfor categories5.2. (c),(d) and (e) and other Board membersthat may be appointedin accordancewith Article 5.3 shall be

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appointedby a majorityvote of the Boardfrom a list of nominationsprepared by the Boardwith assistancefrom the FoundationAdministrator. The processfor the solicitationof these nominationsshall be decidedby the Board in consultation with the Donors. (c) No Boardmember shall serve morethan two consecutiveterms.

5.7. No memberof the Board shall be personallyinvolved in any businessmatter concerningthe Foundationor shall be in a positionto realizefinancial benefits as a result of the activitiesof the Foundation.

5.8. No single entity or organizationis permittedto havemore than one representativeon the Board.

5.9. Individualsfrom the Foundation'sImplementation Organizations are not permittedto sit on the Board.

5.10. The Presidentmay, with the approvalof the Board,invite individual/s whose expertise is consideredessential to the Board'swork to participatein any or all of the Board meetings.Such individualsshall not be allowedto participatein the decisionmaking processor be entitledto vote. If the Boardrequires legal or financial adviceit may obtain such advice from time to time on an ad hoc basis.

5.11. Only Board membersare entitledto vote at Boardmeetings. The Boardshall not offer voting rightsto any person(s)or organization(s).

6. ARTICLE 6. COMMITTEES

6.1. The Boardmay if requiredappoint one or more committees.

6.2. The membersof a committeeshall be appointedby the membersof the Board.

6.3. The tasks and responsibilitiesof any such committeeshall be defined in the By -Laws.

6.4. The membersof a committeeshall not be paid any remunerationfor services performedfor the Board but may claim for reasonablelegitimate expenses incurred as a result of such services.

7. ARTICLE 7. AUTHORIZATIONOF THE BOARD

7.1. The Boardis the governingbody of the Foundationand is responsiblefor the managementof the Foundation,its activitiesand the implementationof the objects.

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The Board is authorizedto resolveto enter in the nameof the Foundationinto agreementsfor the acquisition,alienation or mortgagingof registeredgoods. The Board is not authorizedto enter into agreementsin which the Foundationmakes itself a guarantoror pro capitaco-debtor; vouches for a third party or providesa security for a debt of a third party.

In respect of the managementof the Foundationthe Boardhas, within the objects of the Foundation,also the powerto:

(a) Registera representativeoffice in the Republicof Cameroon,subject to the authorizationof the competentauthorities, in accordancewith applicablelaws of the Republicof Cameroon;and/or

(b) Select third partiesto administerits activitiesin the Republicof Cameroon.

7.2. The Boardshall further in respectof the provisionof Article 7.1. havethe exclusive authority:

(a) To select the FoundationAdministrator, subject to a transparentselection procedurebeing followed, which will includeadvertising widely for suitable nationaland internationalcandidates and consideringapplications from all possiblecandidates; or from a list of at leastthree short-listedcandidates who have been identifiedby an independentconsultant selected by the Boardfor this sole purpose;

(b) To terminatethe servicescontract with the FoundationAdministrator, subject to applicablecontract laws of the Republicof Cameroon;

(c) To select the CommunityDevelopment Facilitator, from a list of at least three short-listedcandidates who have been identifiedby an independentconsultant selected by the Board for this sole purpose;the selectionmethods adopted by the consultantshould be transparentand includeadvertising widely and consideringapplications from all possiblecandidates both nationaland international;

(d) To terminatethe servicescontract with the CommunityDevelopment Facilitator, subjectto applicablecontract laws of the Republicof Cameroon;

(e) The Board shall select an organization/sto undertakeone or both the services covered by (a) and (c) on a contractualbasis and only after a widely advertised and transparentprocess involving the open solicitationof proposalshas been undertakenby the Boardor an independentconsultant selected by the Board for this purpose.In any such process,all candidatesmust submit written proposals and all short-listedcandidates must be interviewedby either a panel of all the Boardmembers or three Boardmembers nominated by the Board. The Board may decideto invite specialistsor other interestedparties to sit on the interviewingpanel and provideadvice or guidance.

(f) To select other servicesproviders as may be requiredfrom time to time;

(g) To selectthe FoundationFund InvestmentManager, subject to a transparent

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processinvolving the open solicitationof written proposalsbeing undertakenby the Board. In any process,all candidates,even if they are pre-qualified candidates,must submitwritten proposals to the Boardand all short-listed candidatesmust be interviewedby either a panel of all the Boardmembers or three Board membersnominated by the Board.The Boardmay decide to invite individualswith financialand legal skills to sit on the interviewingpanel. Alternativelythe Boardmay decideto interviewand select a FoundationFund InvestmentManager from a list of three short-listedcandidates who have been identifiedby an independentconsultant selected by the Board for this sole purpose.The processadopted by the consultantmust in every respect be a transparentprocess.

(h) To draw up By-Lawsrelating to subjectsdealt with in these Articles of Associationand relatingto othersubjects to be decidedby the Board;the provisionof the second sentenceof Article 14.1. are applicable.Any provisionsin the By-Lawswhich conflictwith the Articlesof Associationshall be null and void; (i) To amendthe Articles of Associationin accordancewith Article 14 and approve and amend the Foundation'sBy-Laws;

(j) To dissolvethe Foundationin accordancewith Article 15;

(k) To prepareand approvethe AnnualWork Programand the Annual Budgetof the Foundation;

(I) To select and terminategrant contractswith ImplementationOrganizations;

(m) To select alternativeprojects as mentionedin Article 2.2;

(n) To authorizethe openingor closingof bank accountsfor the Foundationand nominatingand approvingthe signatorieson all these bank accounts;

(o) To approveall projectsand grant programs,including, the grants programs overseenby the CommunityDevelopment Facilitator for the IndigenousPeoples DevelopmentComponent;

(p) To re-allocateover-heads on a reasonablebasis to any or all of the Foundation's RestrictedFunds; and

(q) To sponsor a Public InformationSession annually in the Republicof Cameroon.

All decisionsrelating to Article7.2 (i), 0), (m), and (n) shall requirethe unanimousvote of the Board. 7.3. The Boardshall after everyfive yearscommission an independentEvaluation report on the effectivenessof the Foundationand such an Evaluationshall includea review of:

(a) RestrictedFunds;

(b) The FIM;

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(c) The FAO and FA;

(d) Implementation Organization(s);

(e) The CDF;

(f) Funded projects; and

(g) The costs of the Foundation. This report shall be given to the Board members and Donors.

8. ARTICLE 8. TERMINATION OF BOARD MEMBERSHIP AND VACANCY

8.1. Without prejudice to the provisions of Article 298, Book 2, Dutch Civil Code, membership of the Board shall terminate:

(a) By lapse of the term of appointment;

(b) By death;

(c) Through a written notice of retirement, which notice should be sent to the President of the Board, stating the date on which this resignation will become effective;

(d) By bankruptcy; or

(e) Upon written notification by the relevant Nominating Authority that the Board member is no longer authorized to act as a Board member.

8.2. If the Board establishes, by a majority vote, that a Board member has:

(a) Failed to notify the Board of a conflict of interest which relates to any business of the Board; or

(b) Not attended three consecutive Board meetings, given that he/she received notice of such Board meetings at least one month in advance and unless the grounds for failing to attend these meetings are accepted by the Board,

the said Board Member shall be automatically dismissed. For the purposes of this Article, the said Board Member shall not be entitled to vote.

8.3. In case of a vacancy, such vacancy shall be filled through the appointment of a new Board member by the Nominating Authority as mentioned in Article 5.2. In case of failing to select a Board member within four months after termination of Board membership, the Board member will be appointed by the Board.

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9. ARTICLE9. ORGANIZATIONOF THE BOARD'SACTIVITIES

9.1. All voting resultsshall be recordedin the Minutes.

(a) Each memberof the Boardshall haveone vote. There shall be no abstentions. Any questionproposed at a Boardmeeting shall be determinedby a majority of votes of the memberspresent or representedunless otherwisedetermined by the Articles of Association.

(b) Membersof the Boardmay participatein a meetingthrough the use of electronic communicationfacilities, so long as all membersparticipating in such a meeting can communicatewith one anothersimultaneously. Such participation shall be tantamountto a personalpresence at the Boardmeeting. (c) All voting shall be taken orally.The Presidentis howeverentitled to requirethat a vote be taken by ballot. If the vote concernsan electionof persons,any Board membermay demanda vote by ballot.Voting by ballot shall take place by means of secret, unsignedballot papers.

9.2. The quorum requiredfor a Board meetingis three membersof the Boardunless otherwisedetermined by the Articles of Association.

9.3. A Board membermay grant a proxyto anotherBoard member in order to represent him/herat a Boardmeeting. Proxies are not allowedwhen votingon those itemswhich requireunanimity of the Board.

9.4. The Boardmay also reach decisionsoutside meetings provided that this shall be done in writing,telegraphically, by telex, or by facsimile,and providedthat all Board membersshall haveexpressed their positiveviews in writing as to the proposalunder discussionand the resolutionin question.The documentsconstituting the evidenceof such a Boarddecision having been reachedshall be appendedto the registerof the minutesof Boardmeetings.

10. ARTICLE10. BOARDMEETINGS

10.1. The Boardshall hold at leasttwo meetingseach year on regularlyscheduled dates and in placesto be determinedby the Board.

10.2. Specialmeetings of the Boardmay be called by the President,or any Boardmember.

10.3. Boardmeetings, including special Boardmeetings, may be calledon givingat least one (1) monthwriften noticeor lesserprior noticeprovided that each memberconsents in writing. Such notice shall state the time and place,and includean Agenda and the purposefor which the meetingis to be held.

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10.4. Board meetings will be presided over by the President and in his/her absence, a person nominated by the President.

10.5. The Foundation Administrator, shall act as Secretary to the Board, and keep or cause to be kept the Minutes of every meeting of the Board and shall also keep a separate register showing all changes in the membership of the Board. In accordance with Article 5.4(b), the Foundation Administrator is not a member of the Board and shall have no right to vote at Board meetings.

10.6. The Minutes shall be submitted to the Board for confirmation at the next meeting or in accordance with Article 9.4 and when they have been confirmed shall be signed by the President and the Secretary

11. ARTICLE 11. IMPLEMENTATIONORGANIZATIONS AND THE COMMUNITY DEVELOPMENT FACILITATOR

11.1. The Board shall select, using a process, involving the open solicitation of proposals, suitable third parties to work with the Board under a contractual agreement as Implementation Organization(s) to implement the Foundation's environmental enhancement projects which have been approved by the Board and give effect to the Objects described in Article 2 above. The rules governing this process shall be set out in the By-Laws.

11.2. This selection process by the Board to identify, approve and enter into a contractual agreement with a suitable Implementation Organization(s) shall occur at least twice for each of the two environmental enhancement projects mentioned in Article 2 above and below:

(a) The first is an area called the Mbam-Djerem Area and which shall be part of the Mbam-Djerem Environmental Enhancement Project Component; and

(b) The second is an area called the Campo Area and which shall be part of the Campo Environmental Enhancement Project Component.

The Board shall identify Implementation Organization(s) and enter into grant contracts for each of these areas in a two Phase process. Phase I shall require the preparation of an Environmental Management Plan and Phase II the implementation of the approved Environmental Management Plan.

With regard to the Campo Area, if a suitable candidate is already working in the area and is identified by the Board, then the Board may after careful consideration of all available alternatives approve and enter into a contractual agreement with this candidate for Phase I in the Campo Area and request the open solicitation of proposals only for Phase II.

11.3. The Board may after using the transparent process mentioned in Article 11.1 above decide to select the same Implementation Organization(s) for both Phase I and 1i for

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one or bothAreas. If the Boardmakes such a decisionit must be noted in the Minutes of the Boardmeeting at the time, such approvalis given by the Boardand full reasons must also be givenfor such a decision.

11.4. The role of the ImplementationOrganization(s) shall be to managethe activities,which are within the objects mentionedin Article 2 above,supported by the funds providedto them by the Foundationunder grantcontract(s), and where possibleprovide counter- part funding.

11.5. The ImplementationOrganization(s), selected must as a pre-conditionprior to entering into any contractualagreement with the Board,satisfy the Board,that, they have obtainedor alreadyhave the necessarypermission(s) and approval(s)from the relevantgovernment Ministry or departmentto enter the proposedarea to undertake the proposedwork, the subjectof the proposedcontractual agreement. This shall be done by the ImplementationOrganization(s) providing written copies of all such relevantapprovals to the Boardand these approvalsshall be attachedto the contractualagreement signed by the Boardand the ImplementationOrganization(s).

If all the governmentalpermissions have not be obtainedby the Implementation Organization(s)at the time of the signingof the contract,then the contractmust includea clause which providesfor its annulment,in the event,the permissionsare not forthcomingand that no paymentsshall be madeto the Implementation Organization(s)until all such permissionsare obtainedin writing and attachedto the contract. 11.6. The implementationof the IndigenousPeoples Development Component shall be the responsibilityof the CommunityDevelopment Facilitator (CDF) during the Years 1-3 of the Foundation'sexistence. The CDF shall be responsiblefor preparinga written programfor the proposedactivities, which shall includea grants program.This programshall be approvedby the Board and any subsequentgrants contracts related to the implementationof this programmust be submittedto the Boardfor review and approvalby the Board.

11.7. The CDF shall be responsiblefor:

(a) Ensuringthe widest solicitationof proposalsfor grants;

(b) Assistingapplicants with the completionof the grant proposals;

(c) Preparingthe grant proposalsin reportform for review by the Board;and

(d) Monitoringall successfulapplicants to ensurethe funds are usedfor the objectives,authorized in the grant contractsapproved by the Board. The Boardshall requirethe CDF to report, at leastannually, on the specificareas, personsor organizationswhich qualifyfor the existinggrants programand makewritten recommendationson any additionalareas, persons,or organizationswhich in the opinionof the CDF shouldbe includedas qualifyingfor a grant under the grants program.

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12. ARTICLE 12. LEGAL REPRESENTATION

12.1. The Foundationshall be legallyrepresented by the Board.

12.2. The Boardmay by a unanimousvote authorizein writing,one or more persons,to representthe Foundation.

12.3. The membersof the Boardshall be subjectto the liability provisionscontained in Book 2 of the Dutch Civil Code.

13. ARTICLE13. FINANCIALYEAR AND FINANCIALACCOUNTS

13.1. The financialyear of the Foundationshall start on January 1 and end on December 31st each year. 13.2. The Boardshall accountfor the financialposition of the Foundationand also account for all matterspertaining to the activitiesconducted by the Foundationand do this in accordancewith the demandsmade by those activitiesand also to do this in such a mannerthat the administration,including the books,documents and other data carriers shall be kept so that the rightsand obligationsof the Foundationmay be reviewedat any and all times.

13.3. Without prejudiceto that determinedby law, the Boardshall designatean independent and internationallyrecognized auditor, to preparethe annualaccounts and to do this within six monthsof the expiryof eachfinancial year. These annual accountswhich shall compriseschedules of the revenuesand the expendituresof the Foundation, analyzedby Fundand BalanceSheet, with a note analyzingCapital and Reservesby Fund. The accountsshall be on paper.The annualaccounts and other documents shall be furnishedto the Boardand all the membersand the Donors.

13.4. The Boardshall retainthe books,documents and other data carriers,mentioned in this Article for a periodof seven years.

14. ARTICLE14. AMENDMENTSTO THE ARTICLESOF ASSOCIATION

14.1. The Boardis authorizedto amendthese Articlesof Associationand the By-Laws.The resolutionto amendthe Articlesof Associationand the By-Lawsshall be taken by a unanimousvote cast in a meetingin which all Boardmembers are present,without prejudiceto the provisionsin Article9.4.

14.2. An amendmentof the Articles shall be effected by a notarialdeed, oncethe unanimous

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vote in 14.1above has occurred.When such a notarialdeed is required,then each BoardMember has the authorityto executesuch a deed on behalf of the Board.

15. ARTICLE 15. DISSOLUTION

15.1. The Boardis authorizedto dissolvethe Foundation.

15.2. A resolutionto do so shall be taken by a unanimousvote cast in a meetingin which all Boardmembers are present,without prejudiceto Article 9.4.

15.3. NotwithstandingArticles 19 and 301 of Book2 of the Dutch Civil Code,the Foundation shall be wound up by a decisionof the Boardif:

(a) The continuationof the Foundationwould not be in the best interestsof the beneficiaries;

(b) If at the end of the twenty-eight(28) year fixedterm involvementof COTCOwith the Foundationthere are no other Donors.

15.4. After dissolution,the books,documents, and other data carriers of the Foundationshall be kept for a periodof seven years by a personappointed for this purposeby the Board.

16. ARTICLE 16. LIQUIDATION

16.1. If, upon the dissolutionof the Foundationthere remainsafter the satisfactionof all its debts and liabilities,any moneyand propertywhatsoever, the same shall not be paid to or distributedamong the Board,but shall be given or transferredto some other institution(s)with similar objectsto the objectsof the Foundationand which prohibits the distributionof its moneyand propertyamongst its membersto an extent,at least as providedin theseArticles of Association.

16.2. Liquidationis effected by the Board.

16.3. Duringliquidation the provisionsof the Articles shallwherever possible remain in force. 16.4. After liquidation,the books,documents, and other data carriers of the Foundationshall be kept for a periodof sevenyears by a personappointed for this purposeby the Board.

17. ARTICLE 17. OFFICIALLANGUAGES

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17.1. All reports of the Foundationpresented shall be made availablein Frenchand English.

17.2. The businessof the Foundationshall be conductedin Frenchand Englishand translationfacilities shall be providedat meetingsas necessary.

17.3. The official languageof the Articlesof Associationis Dutch. Unofficialtranslation in French and Englishwill be available.

TRANSITIONALPROVISIONS

No disbursementscan be madeand no grantcontracts can be enteredinto by the Foundation until the Republic of Cameroonauthorizes the Foundationto pursue its activitiesin the Republic of Cameroonand recognizesthe "Public Utility"status of the Foundationin accordancewith Republicof CameroonLaw No. 90/053 (19 December,1990).

The Presidentof the Boardshall be elected,in accordancewith the provisionof Articles 5.4(a), in the first meetingof the Board.

Membersof the initial Board are appointedin this deed in deviationwith Article5.2:

The representativedesignated by the Governmentof the Republicof Cameroonis:

1...

The representativedesignated by COTCO(the CameroonOil TransportationCompany S.A.) is:

1......

The well-knownand highly regardedcitizen of the Republicof Cameroonis.

I......

The highlyregarded, intemationally recognized Biological or EcologicalSpecialist is:

1......

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The highlyregarded, internationally recognized Socioeconomic or Indigenous Peoples Specialistis:

1......

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APPENDIX B

PROPOSEDBY-LAWS

FOUNDATIONFOR ENVIRONMENT& DEVELOPMENTIN CAMEROON

1. RELATIONSHIPTO OTHER LEGAL DOCUMENTSOF THE FOUNDATION FOR ENVIRONMENT& DEVELOPMENTIN CAMEROON

1.1. This documentforms the By-Lawsof the Foundationfor Environment& Developmentin Cameroon,registered in The Hague,The Netherlandson the day of.

1.2. The Articles of Associationform the highest authority for the Foundationand any provisionsin the By-Lawswhich conflictwith the Articlesof Associationof the Foundation for Environmentand Developmentin Cameroonshall be null andvoid.

1.3. The Boardhas the rightto authorizeand approve,the preparationof operatingprocedure manual(s)relating to subjectsdealt withinthe Articlesof Associationor the By-Laws;and on any matters decided by the Board. Any provisionsin the operating procedure manual(s)which conflictwith the Articlesof Associationor the By-Lawsshall be null and void.

1.4. TheseBy-Laws shall alwaysconform to the objectsof the Foundationas set out in Article 2 of the Articlesof Associationand that the Foundationoperates on a non-profitbasis.

2. AMENDMENT OF THE BY-LAWS

2.1. The Boardis authorizedto amendthe By-Laws.The resolutionto makeamendments may only be taken by unanimousvotes cast in a meetingin which all Board Membersare present,without prejudice to the provisionsin Article8.4 of the Articlesof Association.

2.2. An amendmentof the By-Lawsshall be effectedwhen registeredin accordancewith the applicablelaws of the Netherlands. Each Board Memberindividually is authorizedto registerthe By-Laws.

2.3. The Boardmay requirea reviewand if necessarya revisionof these By-Lawsprior to any disbursementof the incomeand/or capital associatedwith the capitalcontribution made by COTCOto the Foundationand within twelve months of the dateof establishmentof the Foundation.This revision may be conductedwith the assistanceof independentlegal advisorsand any agreedchanges to the By-Lawsmust be drafted by the independent legal advisorsand subsequently approved by a unanimousvote of the Board.

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3. FINANCIALMEANS

3.1. The Boardshall havethe exclusiveauthority to authorizethe disbursementof any income of the Foundation.

3.2. The Boardis exclusivelyresponsible for preparing,coordinating, assessing and approving all plannedexpenditures through a systemof annualbudgets, which shall includebudgets for:

(a) the FoundationAdministration Office;

(b) all approvedprojects;

(c) the programto be implementedwith the assistanceof the CommunityDevelopment Facilitator;and

(d) projectsundertaken under grants contracts with ImplementationOrganizations.

No expenditureshall be madefrom any Foundationbank account unless it is part of the planned expenditureapproved by the Board,and is within the estimatefor the financial year in which the expenditureis to be made, or, in a supplementaryestimate which has been approvedby all the membersof the Board.

3.3. Prior to any disbursementof the income and/or capital of the Foundation,and within twelve months of the date of establishmentof the Foundationfor Environment& Developmentin Cameroon,the Board must establish guidelines setting Draw-down amounts,and establishthe Draw-downamounts for eachcapital endowment, that can be spent in any given year and providedthat the limitsare consistentwith the requirements of Article3 of the Articlesof Association. 3.4. The Board shall draw up contractual or donor contracts with specific donors or ImplementationOrganization(s) relating to the way in which the financialmeans provided by that donor,Implementation Organization are to be spent. Any provisionsin such grant contractswhich conflict with the Articlesof Associationshall be null and void.

3.5. The Boardshall establishproper procedures to enablethe managementand performance of specificdisbursements to be monitoredand/or stewarded.

3.6. The Board shall require that the procurementof capital expenditureitems above a specifiedamount, such an amountto be set by the Board,be approvedin writing before- hand by the Board,or designatedfor that purposeby the Boardand that all procurement proceduresmust be eitherestablished or approvedby the Board.

3.7. The Boardis responsiblefor preparingan AnnualBudget. Each Annual Budgetmust be approvedby majorityvote of the Board.

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4. BANK ACCOUNTS

4.1. The authorityto open bankaccounts in the nameof the Foundation,wherever situated is vested only in the Board.Bank accountsin the nameof the Foundationmust be opened and closed only on the authorityof a Board resolutionwhich has been approvedby a unanimousvote of the Board.

4.2. Transfers from Foundationbank accounts shall require two signatures and these signatoriesmust be authorizedby the Board.

4.3. Prior to any disbursementof the income and/or capital of the Foundationand within twelve months of the date of establishmentof the Foundationfor Environment& Developmentin Cameroon,procedures must be establishedby the Boardby unanimous vote for

(a) transferringdonations to the off-shoreinvestment account;

(b) transferringthe administrativebudget funds from the off-shoreinvestment account;

(c) transferringapproved funds to specificGrantees under grant contractsfrom the off- shoreinvestment account; and

(d) withdrawingfunds from the administrativebudget account.

These structures must be defined in the By-Laws. If required by specific donors, amendmentsto the By-Lawsmay be draftedby independentconsultants acting on behalf of donor interests,and then mustbe subsequentlyapproved by the Board.

4.4. If all or part of any contributionfrom the Governmentof the Republicof Cameroonto the Foundationis in cash, then it must be paid into a bank account in the Republic of Cameroonopened in the nameof the Foundation.

4.5. The limits and all such restrictions on the financial authority of the Foundation Administratorshall be always establishedby the Boardby unanimousvote. The Board must describein the servicescontract with the FoundationAdministrator at least the following:

(a) the financialauthority of the FA;

(b) the requirementthat the openingof all bank accountsbe kept for the Foundation funds; (c) that there should be at least two separate bank accounts established and maintained,(1) for all operationaland administration expenses and (2) for all project fundsof whatevernature;

(d) the opening of all bank accountsfor or in the name of the Foundationand for whateverpurpose shall be decidedand authorizedonly by a unanimousvote of the Board;

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(e) the circumstancesand on what agreedconditions the FoundationAdministrator can act on behalfof the Foundation;

(f) the requirements that all project funds shall be properly disbursed and monitored/stewardedin accordancewith the relevantgrant contract;

(g) each bank accountrelating to the Foundationmust have two signatoriesand that these signatoriesare designatedby a unanimousvote of the Board;

(h) the term of the contract,the trial period, if any, and the reportingrequirements throughoutthe term of the contract;

(i) the requirementthat all disbursementsmade shall be eitherfrom a budgetapproved by the Boardor, as part of a grant contract whichthe Boardhas enteredinto and requestedthe FA to administer;and

(j) any other requirementsthe Boardmay decideare necessary.

5. FINANCIALACCOUNTS

5.1. The Boardis responsiblefor:

(a) ensuring that the accountsof the Foundationare prepared and maintained in accordancewith the approvedintemational standards and recognizedgood practice for Foundations;

(b) monitoringall accountingrecords for expenditureon all grant contractsapproved by the Board;

(c) monitoringall administrativeexpenditure as budgetedto ensure it is kept within limitsset annuallyin the budget(s);

(d) ensuringthat a financialaudit is completedeach year; (e) ensuringthe draft accountsare preparedwithin three monthsof the year end so the auditcan commenceand be completedwithin six months; (f) approvingthe annualaccounts; and

(g) ensuringthat any irregularitiesuncovered as a resultof a financialaudit are properly and promptly reviewedand reportedto concemed parties and that appropriate control measures are promptly implemented to minimize the possibility of reoccurrenceof suchirregularities. 5.2. The accountsand the audit reportshall be submittedto the auditorsappointedunder 6.1 below, for incorporationinto the consolidatedaccounts and the preparationof their own audit report.

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6. AUDITOR

6.1. Subjectto Article 13.3 of the Articlesof Association,the Board shall, after consultation with the major donors to the Foundationand aftertaking due considerationof the cost implications,be authorizedto appointan Auditor.The Auditorshall be an intemationally recognizedaccounting firm andshall be appointedinitially for a term of three years.

6.2. The Boardshall ensure,that the Auditoris given accessto all the books of accountand other financial records of the Foundation,the FoundationAdministration Office, the CommunityDevelopment Facilitator and the ImplementationOrganization(s), and grant contractbeneficiaries where such booksof accountand financial records are applicableto Foundationprojects and to requireany informationand explanationin relationto them, or, any expenditureof the Foundation.

(a) The Board shall sign a contractwith the Auditor. This contract will require the Auditorto:

(i) submit to the Board,within six monthsafter the end of the financialyear to which it relates,the audit report preparedby them on the accountsof the Foundation;

(ii) incorporate Foundation accounts which shall comprise a schedule of revenuesand expenditureof the Foundation,analyzed by Fund and Balance Sheet,with a note analyzingCapital and Reserves by Fund;

(iii) to statein its reportwhether in its opinionproper booksof accounthave been kept and any other matterconcerning the financialaffairs of the Foundation which in his/heropinion should be broughtto the attentionof the Board. 6.3. The Boardshall be responsiblefor followingup anymatters raised by the audit.

6.4. The Boardwill ensure that the annualreport from the Auditor will be summarizedand presentedin the annualaccounts of the Foundation.

7. FUND INVESTMENTMANAGER

7.1. The Boardshall select a reputableinvestment bank or similar finacialinstitution as the Foundation'sFund InvestmentManager either directly or by contractingthe servicesof an outside consultantfor this sole purpose. The selection process must be a widely advertised, transparent process involving the open solicitation of proposals. The candidatesfor this tenderingprocess should be pre-qualifiedasset fund managers.All pre-qualifiedcandidates must disclose any interestthey might have either directly or indirectlywhether through a subsidiaryor relatedcompany, partnership or organizationin eitherthe Foundation,its donors,or any of its presentor proposedactivities;

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(a) The competinginstitutions should all be providedwith:

(i) the same informationabout the objectivesof the Foundation;

(ii) the annualincome requirements of restrictedfunds of the Foundation; (iii) the criteriawhich will form the basisof the selection; and

(iv) the requirementto respondwith a writtenproposal.

(b) Criteriafor selectinga fund managershall includeat leastthe followinginformation:

(i) investmentcapability;

(ii) experienceand reputation;

(iii) safetyand stability;

(iv) demonstratedtrack record; and

(v) proposedmanagement fees and otherrelated costs.

7.2. The Board shall sign a servicescontract with the Fund InvestmentManager. Any such contractshall includethe unconditionalright to terminatesuch a contractif the Boardso decides.

7.3. The services contract with the Fund Investment Manager shall require the Fund InvestmentManager to:

(a) providequarterly reports to the Boardon the assetsand investmentsheld on behalf of the Foundation,the strategyadopted with regardto their management,the yield or performanceof each asset overthe reportingperiod and recommendationswith regardto distributionor re-investmentof income;

(b) providean annualreport containing an estimateof incomefor the followingyear and such otherinformation as mayfrom time to time be adequateto enablethe Boardto monitorthe investmentand administrationof the investmentcapital; and

(c) providerecommendations relating to Draw-downs.

7.4. The Boardshall instructthe Fund InvestmentManager at its discretion. 7.5. The Boardis responsiblefor regularliaison with the Fund InvestmentManager.

7.6. The Boardwill ensurethat the annualstatement from the Fund InvestmentManager will be summarizedand presentedin the annualaccounts of the Foundation. 7.7. The Boardshall, not lessthan three monthsbefore the end of each financialyear, prepare and submit to the Fund Investment Manager its estimates of expenditure of the Foundationfor the ensuingyear and may,at anytimebefore the end of a financialyear,

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prepare and submit to the Fund Investment Manager any supplementaryestimates.

7.8. The Board shall have the authority to allocate a portion of the income of any fund to the overheads and administrative costs of the Foundation. These costs shall be apportioned by the Board on a reasonable basis and when approved by a majority of the Board should appear in the Minutes of the Meeting.

7.9. COTCO shall reimburse the Foundation for the part of the Fund Investment Manager's annual asset management fee related to the management of the Capital contribution made by COTCOwhile this Capital contribution is managed as an expendable endowment and for a term not exceedingtwenty-eight (28) years.

8. BOARD MEETINGS

8.1. The rules governing Board meetings are set out in detail in the Articles of Association.

8.2. The Board may co-opt a member of any Committee or any other person who is not a member of the Board, to attend its meeting as an advisor and that person may speak at the meeting on any matter in relation to which his/her advice is sought, but shall not have any right to vote.

8.3. Minutes of each Board meeting shall, once they are signed by the President of the Board be kept in a Register maintained by the FoundationAdministrator. The Minutes form part of the records of the Foundation and must have an Agenda attached to them and include at least, the full details of any change in the members; the decisions reached at each Board meeting; votes recorded; notifications of conflict of interest and details of any person authorized to act on behalf of the Foundation.

9. PUBLIC INFORMATION SESSIONS (PIS)

9.1. At least once in each calendar year, the Board will sponsor a Public Information Session in the Republic of Cameroon. The purpose of the Public InformationSession is:

(a) to provide information relating to the activities, achievements and plans of the Foundation; and

(b) to provide a forum in which interested individuals and organization(s) can express their opinions about the Foundation and/or its activities and make suggestions for opportunities which are relevant to the Foundation and its activities.

The date, location, and time of each Public Information Session shall be widely advertised.

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The Boardthrough its representativesat the Public InformationSession shall record all opinionsand suggestionsand havethem referredto the Boardfor their consideration.

10. EMPLOYEES

The Foundationis not expectedto directlyemploy any staff but will enter into servicescontracts with third parties. The Boardretains the right to directlyemploy staff if need be.

10.1. The Board is responsiblefor determiningthe duties, responsibilitiesand authority of employees.All employeesof the Foundationshall have the terms and conditionsof his/heremployment set out in a writtencontract of employment,which shall includea full job descriptionand be signedby the Presidentof the Boardon behalfof the Foundation.

10.2. The Boardmay regulatethe mannerof selection,terms and conditionsof serviceand the disciplineof any employeeof the Foundationin a mannerconsistent with the applicable employmentlaws of the Republicof Cameroon.

Withoutprejudice to the generaleffect of the paragraphabove, the Boardmay providefor the paymentof its employee'ssalaries, allowances, pensions, gratuities or other benefits and may requirethe employeeto makecontributions to a pensionor providentfund.

In particularand without prejudice to their other powersin this paragraphthe Boardshall select,subject to the approvedannual budget, any such employeesas may from time-to- time bejudged necessaryto executethe businessof the Foundation.

10.3. Personnelengaged by the Boardshall in all cases meetthe higheststandards in terms of qualificationsand competenceand be acceptableto the Board.

10.4. Personnelengaged by the Boardshall not be in a conflictof interestwith the Foundations activities,its Board,or its ImplementationOrganization(s).

11. CONFLICTOF INTEREST

11.1. The followingperson(s) must, if they are involveddirectly or indirectlywith any matter concemingthe Foundation,in any way whatsoever,declare their interestor involvement in writingto the Presidentof the Boardas soonas is reasonablypossible:

(a) membersof the Board;

(b) all employeesof, or applicantsfor employeepositions with the Foundation;

(c) the FoundationAdministrator;

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(d) the CommunityDevelopment Facilitator;

(e) any of the ImplementationOrganizations;

(f) membersof any committeewhich may be establishedby the Foundation;and

(g) Grantees.

Furtherany or all offerof payments,or specialpreferences or promisesof such payments or specialpreferences which are madeby any of the above,either directly or indirectlyto any governmentofficial, politicalparty or official thereof, or for any candidatefor any politicalparty, shall constitutean interestwhich mustbe declaredto the Board.

All of the above mentionedin 11.1 shall exercise all reasonablecare and diligenceto preventany actionsor conditionswhich could result in a conflict of interest arising.This obligationshall apply to the activitiesof the employees,agents, all contractors,Grantees and their familiesand/or third parties,arising from any contractor grant, they have with the Foundation.Such effortsshall include,but not be limitedto, establishingprecautions to preventtheir own employees,agents, or subcontractors,making receiving, providing or offering any substantial gifts, extravagant entertainment,payments, loans or other considerations. All conflictsof interestof whatevernature must be notifiedto the Presidentof the Board shall be recordedin a registeralong with the wriftennotification, and such registershall be maintainedby the FoundationAdministrator under the supervisionof the Board.

11.2. A Conflictof interestof whatever kind,disclosed by whatevermeans and which relates directlyor indirectlyto personsmentioned in (a), b), (c), and (d) above shall result in the immediatedismissal of the person(s)or terminationof a contractor grant. If a grant(s)has been approvedby the Boardand funds disbursedthen the grant(s)shall be disqualified and no furtherfunds disbursedto the Grantee.

11.3. All contracts entered into by the Foundationshall includea conflict of interest clause, which statesthat a conflictof interestundisclosed by eitherside shall once disclosedor discoveredin whatevermanner, constitute a breachof a fundamentalterm of the contract and constitutegrounds for the Boardto terminatethe contract(s).The contract(s)shall, as a resultof this breachbecome null and void from the datethe contractwas signedand no further moneysshall be paid and all moneyspaid shall becomedue and owing in full to the Board. Further these natural person(s),and entity(ies)shall be disqualifiedfrom applyingfor future employmentand/or contract with the Foundation.

11.4. A failure by a memberof the Boardto disclosea conflictof interestand such a conflictof interestis subsequentlydiscovered by the Board shall constitutegrounds for immediate dismissalof that memberby the Board.

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12. REPRESENTATIONTOWARDS THIRD PARTIES

12.1. The Boardshall requireperson(s) or legalentity(ies) implementing projects funded by the Foundationto observethe practiceof competitivebidding in the procurementof goods or rental of suppliesand equipmentor in contractingfor servicesapproved by the Board, except in cases where the Board decidesthat it is impracticaland providesfor another system of procurementdesigned to ensure efficientoperations and the minimizationof administrativeand othercosts.

12.2. The Boardshall requireperson(s) or legalentity(ies) implementing projects funded by the Foundationto cause all goods and equipment,funded by the Foundation,whenever possible,to be insured againstloss or damagewhile in transit and upon anival on site, and for the durationof the projectactivities. Vehicles and other movableequipment shall additionallywhenever possible be insuredagainst third party liability and collision.The terms and conditions of such insuranceshall be consistentwith sound commercial practicesand shall cover the full deliveryvalue of the goods and equipment.Such terms and conditionsshall providefor the proceedsof the insuranceof importedgoods and equipmentto be payablein a fully convertiblecurrency. Any insuranceproceeds shall be creditedto the Foundation. 12.3. The Board may delegate powers referredto in this By-Law to a committee or the FoundationAdministrator.

13. PROJECTSASSOCIATED WITH COMPONENTS

The FoundationHas Three Components As DefinedIn Article2.1

IdentificationAnd Formulation 13.1. The identificationand formulation of projectsshall be subjectto the followingprovisions:

(a) all projectsmust be approvedby a majoritydecision of the Boardbefore implementation; (b) projectsmay be identifiedand formulated by donors;

(c) the Foundationwill only identifyprojects in the circumstancesthat it has available unrestrictedfunds; (d) no projectmay be identifiedby the Foundationwithout a reviewof alternative possibilities; (e) the formulationof any projectby the Foundationshall be carriedout by a

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contractorwith suitableskills and experienceacting on behalf of the Foundation; and

(f) all projectsshall be formulatedwith sufficientdetail to form the basisof a grant contractwith an ImplementationOrganization, and where a projecthas been formulatedby a donor does not meet this requirement,the Boardshall in the first instancerefer the matterto the donor andthe otherwisemay makeany arrangementsit considersappropriate to make it a suitablebasis for a grant contract.

13.2. Grant programsassociated with the projectsshall specifyat least the following matters:

(a) the maximumsize of any grant contractthat may be enteredinto under the program;

(b) the minimumrequirements that any applicantmust meet in terms of organizationalcapacity;

(c) the minimumrequirements for counterpartfunding;

(d) arrangementsfor the monitoring/stewardshipof the implementationof grant contract(s);and

(e) the uses to which grantsmay be put. Such specificationsmust be includedin the descriptionof eachgrant contractapproved by the Board. 13.3. All projectsshall meet the followingrequirements:

(a) They mustmeet the overallobjectives of the Foundationas stated in its Articles of Association;and (b) All projectsshall includea statementof monitoring/stewardshipand evaluation procedures.

13.4. The Board may direct that proposedprojects are reviewedby a Committeeestablished by the Boardfor appraisal.If forwardedto a Committeethen the Committeewill review the proposedproject(s), and may seek clarification,or ask for modificationsfrom the FoundationAdministrator. The Committeewill then forwardproposals together with their reviews,comments and recommendationsto the FoundationAdministrator who shall make them availablein reportform to the Boardmembers for discussionand approvalby the Boardat its next meeting. 13.5. The Boardmay requirea writtenfeasibility study (basedon site visits) be done, by one or more independentappraisers before approving any project.

Implementation

13.6. The implementationof projectsassociated with the Foundation'sEnvironmental

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EnhancementComponents shall be conductedby ImplementationOrganizations through grant contractsand not by the Foundationitself.

13.7. The implementationof projectsand grant contractsassociated with the Foundation's IndigenousPeoples Development Component will be facilitated by the Community DevelopmentFacilitator (CDF) during Years 1-3 of the Foundation'sexistence.

SelectionOf EnvironmentalEnhancement Program Implementation Organizations.

13.8. The selectionof ImplementationOrganizations that undertakeprojects related to the Foundation'sEnvironmental Enhancement Components shall be subjectto the following provisions:

(a) the selectionof ImplementationOrganizations shall be subjectto the provisions of Article 11 in the Articlesof Association;

(b) the Boardhas the exclusiveauthority to authorizeor enter into grant contracts with third partiesfor the implementationof its EnvironmentalEnhancement Components;and

(c) no grant contractshall be enteredinto with any entity that is not not-for-profit. (d) the FoundationAdministration Office shall be authorizedby the Boardto undertakea transparentprocess which involvesthe open solicitationof written proposalsfrom suitablethirdparties, to serve as an ImplementationOrganization, for Phase I activitiesassociated with the Foundation'sEnvironmental EnhancementComponents. Even if the Boardhas identifiedpossible ImplementationOrganizations, either because of their special expertiseor becausethey are alreadyworking in one of the areas mentionedin Article 2 of the Articles of Association,a transparentprocess, as mentionedin this paragraph must be observedand the final selectionmust confirm such a processwas undertaken;

(e) upon the successfulcompletion of PhaseI activitiesassociated with the Foundation'sEnvironmental Enhancement Components, the Boardshall authorizethe FoundationAdministrator to undertakea further transparent processto identifysuitable candidates to be ImplementationOrganizations for Phase II activities. ImplementationOrganizations which were contractedin PhaseI are not excludedfrom applyingfor PhaseII, howeverthe processby which ImplementationOrganizations are selectedfor PhaseII activitiesmust still involvethe open solicitationof written proposalsfrom suitablethirdparties.

(f) similar provisionswill apply for the solicitationof any third or subsequentphases; and

(g) the Boardmay decideto contractout the selectionof Implementation Organizationsto an independentconsultant retained by the Boardfor this sole purpose.If this is decidedby the Boardthen any servicescontract with an independentconsultant must includethe requirementsthat the processbe

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transparentand involvethe open solicitationof written proposalsfrom suitablethirdparties. Any servicesfees paid to the independentconsultant must be allocatedas a costto the particularproject(s).

Selectionof CommunityDevelopment Facilitator

13.9. The selectionof a CommunityDevelopment Facilitator (CDF) shall be subjectto the followingprovisions:

(a) the selectionof the CDF shall be subjectto the provisionsof Article 11 in the Articles of Association;

(b) the Board has the exclusiveauthority to authorizeor enter into contractswith third partiesfor the facilitationof grant programs.

(c) the FoundationAdministrator shall be authorizedby the Boardto use a process which involvesthe open solicitationof written proposalsfrom suitablethird parties to providethe requiredCDF services; and

(d) the Boardmay decideto contractout the selectionof CDFs to an independent consultantretained by the Boardfor this sole purpose.If this is decidedby the Boardthen any servicescontractwith an independentconsultant must includethe requirementsthat the processbe transparentand involvethe open solicitationof written proposalsfrom suitableentities. Any servicesfees paid to the independentconsultant must be allocatedas a cost to the particularproject(s).

13.10. The CommunityDevelopment Facilitator shall be responsiblefor:

(a) solicitinggrant proposals;

(b) assistingpotential grants applicantsin writing their proposals;

(c) preparationof all grant proposalsand giving them to the FA for review by the Board;

(d) ensuringthat all successfulGrantees complete regular progress reports; (e) monitoring/stewardingall grant budgetsto ensurethat the grant remainswithin budget;and (f) ensuringfull and accuraterecords are maintainedby the Granteesfor the Foundationaccounts.

Approvalof Grants

13.11. For project(s)or activitiesrelating to the Foundation'sIndigenous Peoples DevelopmentComponent or any grantsprogram associated with it, then the CommunityDevelopment Facilitator shall managesuch grants programsusing a standard proposalformat preparedin consultationwith the FoundationAdministrator.

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13.12. The approval of grant proposals will be subject to the following provisions:

(a) all grant proposals will be pre-screened by the Community Development Facilitator during Years 1-3 of the Foundation's existence to ensure that they are complete;

(b) the Foundation Administrator shall forward, as requested by the Board, the grant proposals to the Board or a Committee established by the Board for appraisal for such proposals;.

(c) if forwarded to a Committee then the Committee will review the proposals, and may seek clarification, or ask for modifications. The Committee will then forward all proposals together with their reviews, comments and recommendations to the Foundation Administrator who shall make them available in report form to the Board Members for discussion and approval at the next Board meeting.

(d) if the proposals are to be given directly to Board Members for review, then the Foundation Administrator shall prepare all submitted proposals in a format for review by the Board and make these reports available to the Board Members prior to the next meeting of the Board to enable them to review the reports before the Board meeting; and

(e) where a grant proposal exceeds a certain amount, to be determined by the Board, the Board may require a written feasibility study (based on site visits) to be done, by one or more independent appraisers not affiliated with the entity submitting the proposal. In any case the Board reserves the right to provide only a portion of the money being sought by a proposer.

Budgeting and Commitments

13.13. No project may be approved by the Board unless there are reasonable grounds to believe that the project as proposed has a high likelihood of being successful and that the Foundation has adequate resources to support the activities needed to implement the project over its anticipated life.

13.14. The Foundation may not enter into contracts that commit the Foundation to providing more than the funds it will have available from income reserves and Draw-down from expendable endowments after taking into account allocation to overheads at any time.

13.15. No grant contract with any Grantee will exceed five years.

13.16. Where a grant contract with an Implementation Organization is for a period of less than five years, the grant contract may contain a provision to extend the arrangement at the mutual consent of both parties up to a period of five years, without the requirement for further open solicitation as laid down in By-Law 13.8. Any such extension must be approved by the Board.

13.17. The Board will establish an annual cycle that links the approval of the annual budgets for grant contracts associated with approved projects to the Foundation's annual work plan and budget. Any budget approved by the Board for grant contracts will make reference to specific grant proposals, but may include reserve proposals to be funded

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in the event that any approved proposals are withdrawn or not taken up in a stipulated time frame.

Responsibilities of the Board

13.18. The Board is responsible for:

(a) ensuring that for each project all the necessary systems and procedures are implemented and maintained, and, if the Board deems it necessary, that these systems and procedures are approved by the Board;

(b) ensuring that criteria are established for evaluating and prioritizing projects in accordance with the objects of the Foundation;

(c) ensuring that the proportion of income, and/or Capital from the COTCO Capital only, which is available for disbursement under the Foundation's Environmental Enhancement Components and the Indigenous Peoples Development Component uses the following formulae for disbursement:

(i) during Years 1-3 of the Foundation's existence, disbursements shall be allocated according to the following Schedules:

- up to a total of $US150,000 will be disbursed over a three year period to fund activities associated with the Foundation's Indigenous Peoples Development Component;

- up to a total of $US500,000 will be disbursed over a three year period to fund activities related to the preparation of an Environmental Management Plan for the Mbam-Djerem EnvironmentalEnhancement Project Component;

- up to a total of $US400,000will be disbursed over a three year period to fund activities related to the preparation of an Environmental Management Plan for the Campo EnvironmentalEnhancement Project Component.

(ii) if, during Years 4-28 of the Foundation's existence, the annual net amount to be disbursed is less than or equal to US$250,000 (in 1999 terms) then the annual net amount available for disbursement shall be allocated according to the following Schedules;

- the funds to be disbursed under the Indigenous People Development Component shall be equal to twenty percent (20%) of the total amount available for disbursement;

- the funds to be disbursed under the Mbam-Djerem Environmental Enhancement Project Component shall be equal to forty percent (40%) of the total amount available for disbursement;

- the funds to be disbursed under the Campo Environmental Enhancement Project Component shall be equal to forty percent (40%) of the total amount to be disbursed.

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(iii) if, duringyears 4-28 of the Foundation'sexistence, the annual net amountto be disbursedis greaterthan US$250,000(in 1999terms) then the annualnet amount available for disbursementshall be allocated according to the followingSchedules:

- the funds to be disbursedunder the Indigenous People's Development Componentwill be equalto US$50,000(in 1999terms);

- the funds to be disbursed under' the Mbam-Djerem Environmental EnhancementProject Component will be the annualnet amount availablefor disbursementless US$50,000(in 1999terms), divided by two;

- the funds to be disbursedunder the Campo EnvironmentalEnhancement ProjectComponent will be the annualnet amountavailable for disbursement less US$50,000(in 1999terms), divided by two.

(d) ensuringall otherincome, unless otherwise stipulated by a donor, and then relating only to the specific income provided by or from the donor's Capital, shall be apportionedto the Component(s)and their project(s)which give effectto the objects of the Foundationand not on the basisof any fixed formulaor percentageallocation of the incomeavailable for disbursement;

(e) ensuringall approvedproject activities shall be listedin a register,to be maintained by the FoundationAdministrator, which includesthe detailed particularsof each project;a copy of the grant contract;the budget;schedules of disbursementsand details of financial reporting and accounting requirements; and monitoring/stewardshiprequirements; (f) ensuringthat all approvedprojects are implementedonly by the entity authorizedby the Boardand are, if requiredunder the operationalmanagement of the Foundation Administrator;

(g) requiringthat all approvedprojects are given certainmeasurable goals which shall be incorporatedinto the relevantgrant contract,which includewritten reportingand monitoring/stewardshiprequirements and proper accounting procedures for all moneysreceived; (h) ensuringthe FoundationAdministrator receives periodic stewardship reports from the variousprojects, describing the progressor not in implementingprojects funded by the Foundation,according to proceduresto be establishedby the Board. In additionafter these reportshave been receivedby the Board,it may commissiona detailed written evaluationof a project (based on site visits) by one or more independentevaluators not affiliatedwith the Grantee;

(i) ensuringthat all projectsfunded by the Foundationare evaluated and audited accordingto proceduresto be establishedby the Board;

(j) where appropriate,require in grant contractsthat funding for approved project activitiesbe given in several installments,rather than in a lump sum, and that the release of further installmentsbe conditionalon certain measurablegoals being reached;

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(k) monitoring/stewardingthe accounting records for expenditure on all projects approvedby the Board.

14. THE FOUNDATIONADMINISTRATOR (FA) AND FOUNDATIONADMINISTRATION OFFICE(FAO)

14.1. The FoundationAdministrator shall be responsiblefor establishingand operatingthe FAO on a day-to-daybasis as requestedby the Board.This shallinclude:

(a) the day-to-daymanagement and administrationof the Foundationand the FAO in the Republicof Cameroon;

(b) organizingmeetings and coordinatingactivities of the Board,and the Committeesof the Foundation,as directedby the Board;

(c) solicitingcontributions for the Foundationfrom donorsand othersources;

(d) workingin closeliaison with donorsto the Foundation;

(e) working in close liaison with such supporting agencies, Implementation Organization(s),consultants and professionaladvisors as the Boardmay selectand reviewing the qualificationsand performance of such supporting agencies, ImplementationOrganization(s), consultants and professionaladvisors;

(f)l working in close liaison with the Community DevelopmentFacilitator and the ImplementationOrganization(s) on the various projectimplementations in each of the areasdesignated in Article2 (a) of the Articlesof Association;

(g) disseminatinginformation about the Foundation;

(h) monitoring/stewardingall project budgets and funding for the Foundation's approvedprojects and activitiesand ensuringthat all funded projectsof whatever natureremain within their agreedbudgets;

(i) ensuringthat administrativeexpenditure(s) are kept within the limits set by the Board;

(j) ensuring full and accurate accountingrecords are kept for the FAO and its operationsand makesure all accountingrecords are madeavailable to the Auditors designatedby the Board; (k) actingas Secretaryto the Boardand attendingall Boardmeetings;

(I) attendingthe meetingsof any Committeesof the Foundationat the requestof the Board;and

(m) undertakingadditional responsibilities as may arisefrom time to time at the request

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of the Board.

14.2. The servicescontract with the FA will includean annualbudget, approved by the Board andfunded from the approvedannuai budget of the Foundation.This budgetshall include an item for Board operatingcosts and where the FA shall provideservices to, or incur costsfor obtainingprofessional advice for any of the Foundation'sapproved projects, then an allocation must be made for these servicesin the annual FA budget.Any additional costs must not be incurred by the FoundationAdministrator without the prior written approvalof the Board.

14.3. The FA will be responsiblefor obtainingfrom the competentauthorities of the Republicof Cameroonan authorizationfor the Foundationto conductits activitiesin the Republicof Cameroon.

14.4. The FA will be responsiblefor obtainingfrom the competentauthorities of the Republicof Cameroona "PublicUtility" decree for the Foundation.

14.5. Unless otherwise agreed by the Board, the FA will operate the FAO from Douala, Republicof Cameroon.

14.6. The FoundationAdministrators personnel should possess the followingqualifications:

(a) a suitableeducational and/or relevant work experienced back-ground;

(b) a sound knowledgeof the objectivesof the Foundation;

(c) fluency in Frenchand preferablyin Englishas well and a familiarityof the customs in the areascovered by the objectsof the Foundation;

(d) experiencein financialmanagement and accounting;

(e) well developedorganizational and communicationskills; and

(f) any otherqualifications that the Boardmay suggest. 14.7. The Board shall be responsiblefor selectingthe FA in accordancewith the Articles of Association. 14.8. The term of the contract with the FoundationAdministrator shall include a trial period, before confirmationof the contract,and a system of regular written assessmentsor reportsand performancereviews which must occurduring the term of the contract. The Boardwill be responsiblefor preparingsuitable performance evaluation criteria for the FA.

14.9. Uponthe expirationof the term of the contract,the FoundationAdministrator may apply for a further contractualterm or it may submit a new proposalfor a further contract. However such re-contractingmay only occur if proper selection proceduresfor the position are followedor in the case of requestingproposals, if the proposalsolicitation processhas been widely advertisedand the proceduresassociated with such a process are transparent.

14.10. The Board shall be responsiblefor determiningthe reporting requirementsof the

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FoundationAdministrator, which may be changed from time to time. The reporting requirementsfor it should be outlined in the services contract with the Foundation Administrator.

14.11. The FoundationAdministrator shall presentquarterly financial reports to the Presidentof the Board.

14.12. The FoundationAdministrator shall preparea report for the Board at least twice per calendaryear. Suchreports shall include:

(a) Report on the progress of the projects associated with the Foundation's EnvironmentalEnhancement Components;

(b) a Reportsummarizing the progressof the projectsassociated with the Foundation's IndigenousPeoples Development Component;

(c) full detailsof all disbursementsto eachapproved project;

(d) confirmationthat eachproject is withinbudget;

(e) details of administrativeexpenditures and whether they are withinbudget;

(f) a copy of the bankstatements for the all the Foundationor other Foundationrelated accountsopened in Cameroon,e.g., the bank accountwith any contributionsfrom the Governmentof the Republicof Cameroon;

(g) a reporton fund-raisingactivities, giving details of all new donations;and (h) detailsof all newly proposedprojects.

14.13. The Boardmay changethe reportingrequirements of the FoundationAdministrator from time to time as it seesfit.

15. COMMUNITYDEVELOPMENT FACILITATOR (CDF)

15.1. The CommunityDevelopment Facilitator shall be selected by the Boardfrom a list of candidatesshort-listed by an independentconsultant. This independentconsultant shall be identifiedand retainedby the Boardunder a servicescontract to advertise,interview and preparea short list of three candidatesfor this position.The final list of candidates shall be interviewedby a panelof three Boardmembers and any other individualswho may be co-optedby the Boardto participatebecause of theirexperience or expertise.

The criteria for selectingthe CommunityDevelopment Facilitator should include the following:

(a) knowledgeof and experiencewith the Bakola Pygmy populationand their way of life;

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(b) relevantprofessional skills and qualifications;

(c) experiencewith establishingand runninga grantsprogram;

(d) experienceworking with communitygroups and involvingthem in the decision- makingprocess whether through commiftees or as community-basedorganizations; and

(e) any otherrequirements the Boardmight stipulate as relevant.

15.2. The Community Development Facilitator shall have a services contract with the Foundation. The contractfor the CDF shall be during Years 1-3 of the Foundation's existenceonly andwill havea trial period.

15.3. The Work Programto be implementedby the CDF shall be preparedby the CDF and approvedby the Board.Any Work Programmust includea grantsprogram outliningthe types of grantswhich shall be considered,the minimumand maximumgrants proposedto be disbursedand the monitoring/stewardshipprocedures.

15.4. COTCO shall reimburseto the Foundationthe CommunityDevelopment Facilitator's annual servicefee duringYears 1-3 of the Foundation'sexistence.

16. COMMITTEES

Establishment

16.1. The Boardmay createCommittees from time to time on an ad hoc basis.All Commiftees shall be establishedfor a specificor sole purposeand shallexist onlyfor a limitedterm.

Budget

16.2. Each Committeemay requirea budgetto undertakeits designatedtask. If any fundingis requiredit shall be on the basis of a budgetprepared by the FA, approvedby the Board and fundedfrom the annualbudget of the Foundation.Any additionalcosts must not be incurredby the Committeewithout the priorwritten approval of the Board. 16.3. The FA is responsiblefor ensuringthat the administrativeexpenditure associated with each Committeeis keptwithin the budgetapproved by the Board.

Composition

16.4. The size andcomposition of a Committeewill be determinedby the Board.

AdditionalCommiftee members may be co-optedwhenever specific expertise is required. Appointment

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16.5. The Boardmay select andappoint Committee members from a list of nomineesprepared by the FoundationAdministrator.

16.6. The members of a committee shall not be paid any remuneration for services performedfor the Boardbut may claim for reasonablelegitimate expenses incurredas a result of such services.

16.7. Committeemembers for eachCommittee shall electa Chairperson.

Meetings 16.8. Each Committeeshall establishits ownworking schedule. This schedulemust be givento the FoundationAdministrator.

16.9. The FoundationAdministrator must attend all Committeemeetings and keep, or causeto be kept, Minutes of such meetings.Attendance of the FoundationAdministrator at Committeemeetings via electronicmeans is permissible.

Reporting

16.10. EachCommittee shall providewritten reports to the Boardon all its activities,including the Minutesof all Committeemeetings.

16.11. The Chairpersonof eachCommittee shall prepare the requiredreports.

17. ADDITIONALCONTRACTS

17.1. In accordancewith Articlesof Associationand with By-Laws4.1., 6.1., 7.2., and 10.1.,the Boardis responsiblefor ensuringthat, where necessary,contracts are enteredinto by the Foundation with appropriatedonors and third parties. Such contractsare expectedto include,but are not limitedto, contractsbetween: (a) the FundInvestment Manager and the Foundation;

(b) the Auditorand the Foundation;

(c) the initialdonor (COTCO)and the Foundation;

(d) the FoundationAdministrator and the Foundation;

(e) the CommunityDevelopment Facilitator and the Foundation;

(f) the ImplementationOrganizations and the Foundation;and (g) extemaladvisors and the Foundation.

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OFFSITE ENVIRONMENTAL ENHANCEMENTPROGRAMS

MAY 1999 OFFSITEENVIRONMENTAL ENHANCEMENT PROGRAM ENVIRONMENTALFOUNDATION PLAN CHADEXPORT PROJECT VOLUME4 TABLEOF CONTENTS

1.0 INTRODUCTION...... 1-1

2.0 SEMIDECIDUOUSFOREST OF THE DENG DENG REGION...... 2-1 2.1 DESCRIPTIONOF ENVIRONMENTALENHANCEMENT PROGRAM ...... 2-1 2.2 COTCO PROPOSED FUNDING ...... 2-3 2.2.1 Phase1 Funding...... 2-3 2.2.2 Long-termFunding ...... 2-3 2.3 SCHEDULE...... 2-4

3.0 ATLANTICLITTORAL FOREST REGION ...... 3-1 3.1 DESCRIPTION OF ENVIRONMENTALENHANCEMENT PROGRAM ...... 3-1 3.1.1 Historyand Description of the Campo Reserve ...... 3-2 3.1.2 Present-Day GEF Program InvolvingTROPENBOS Participation...... 3-4 3.1.3 COTCO's Proposed Program in the CampoReserve ...... 3-5 3.2 COTCO PROPOSED FUNDING ...... 3-5 3.2.1 Phase1 Funding...... 3-6 3.2.2 Long-termFunding ...... 3-6 3.2.3 Environmental Education Program ...... 3-7 3.3 SCHEDULE...... 3-8

4.0 REPUBLICOF CAMEROONPROTECTION MEASURES FOR THE CAMPO AND MBAM-DJEREMSITES ...... 4-1

5.0 REFERENCES...... 5-1

OEEP ENGLISH 05-06.doc i May 1999 OFFSITEENVIRONMENTAL ENHANCEMENT PROGRAM ENVIRONMENTALFOUNDATION PLAN VOLUME4 CHADEXPORT PROJECT LIST OF TABLES

Table I Mbam-DjeremGazettement and ManagementPlan Activities Table 2 Mbam-Djerem$500,000 Phase 1 EstimateBreakdown Table 3 RecommendedRecurrent Expenditures Per Year for the ProposedMbam- DjeremNational Park Table 4 ProposedSchedule for Mbam-DjeremPhase 1 Activities; ProvisionalSchedule for 1-3Years Table 5 Campo NationalPark $400,000Phase 1 Cost EstimateBreakdown, using informationprovided by the GEF Campo-Ma'anProject Table 6 RecommendedRecurrent Expenditures Per Yearfor the CampoNational Park

LIST OF FIGURES

Figure 1 ProposedMbam DjeremNational Park in Relationto Pipeline Figure2 ExistingCampo ReserveArea in Relationto Pipeline Figure3 ProposedManagement Scheme for the Campo NationalPark

LIST OF APPENDICES

AppendixA MinisterialDecision 0373/D/MINEFIDAJ AppendixB MinisterialDecision 0372/D/MINEF/DAJ AppendixC MinisterialDecision 0676/NS/MINEF/CAB AppendixD Letterfrom MINEFRegarding the Initiationof the GazettementProcess for Mbam-Djerem AppendixE FrameWork AgreementsKey Features

May 1999 ii ENGLISH Cam EMP Vol 4 Part II text.doc OFFSITE ENVIRONMENTAL ENHANCEMENT PROGRAM ENVIRONMENTAL FOUNDATION PLAN CHAD EXPORT PROJECT VOLUME 4 1.0 INTRODUCTION

COTCO is proposing to undertake two offsite environmental enhancement programs in Cameroonto mitigatefor low level residual impacts to biodiversityand natural habitat value resulting from constructionand operationof the oil TransportationSystem associated with the Chad Export Project. One of the areas through which the TransportationSystem's pipeline passeswhere biodiversityand natural habitatvalue is high includesthe semideciduousforest of Deng Deng and the area in the forest/savannamosaic in the vicinity of the Pangar River between the Deng Deng forest and the small town of Mararaba. Another area includes the Atlantic Littoral Forestregion along the Lolodorfto Kribi corridorin the southwestempart of the Republicof Cameroon.

The goal of the offsite environmentalenhancement programs is to establish a mechanismby which the biodiversityand natural habitat valuesof some sensitiveand vulnerableecosystems in the Republic of Cameroon can be enhanced and protected. To accomplishthis goal, COTCO'soffsite environmental enhancement program will allow for the establishmentand long- term protectionof a new "Mbam-Djeremprotected area", a proposed353,200 hectare area of forest/savannamosaic habitat in the central portion of the Republicof Cameroon,which has a similar habitat to portions of the Deng Deng region traversedby the TransportationSystem's pipeline.

The offsite environmentalenhancement program will also provide funding to assist in the completionof ongoingenvironmental studies in the existingCampo Reserve and adjacentarea, and assist the implementationof an environmentalmanagement plan being developed for a new protectedarea proposedfor this regionof the AtlanticLittoral Forest. The Campo Reserve and adjacent area is an important and vulnerable ecosystem. However, with proper management, this area could support eco-tourism and become a source of sustainable employmentand incomefor local people.

The offsite environmental enhancement programs proposed by COTCO will be partially supportedvia a capitalcontribution by COTCOto an EnvironmentalFoundation (see Volume 4, Part 1 of this EMP). A capital contributionto the EnvironmentalFoundation by COTCOwill help attract other donors/participantsto contribute to it, thereby increasing its capital base and making it a source of sustainable,long-termn funding. The programsproposed by COTCOwill also help to inform and educate the local populationon the need to create protectedareas and curtail illegal logging and hunting activitieswithin them in order to help conserve and protect biodiversityand naturalhabitat values.

The following sectionspresent a descriptionof the offsiteenvironmental enhancement programs for these areas, along with the proposedCOTCO funding, Republicor Cameroonactions, and schedulefor their implementation.

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2.1 DESCRIPTIONOF ENVIRONMENTALENHANCEMENT PROGRAM

There are no activeconservation projects aimed at the protectionof wildlife and natural habitats within the Republic of Cameroon's forest/savanna mosaic zone, despite the biological importance attached to this area. Consequently, an appropriate offsite environmental enhancementprogram would involve initiatinga new project in this ecosystem. The Mbam- Djeremarea consistsof a forest/savannamosaic similar to that found in the Deng Deng region, has already been identified by the Republic of Cameroon as a potential site for the establishmentof a protectedarea, and this area is listed as Action Item No. 7 in the Republicof Cameroon'sNational Forestry Management Programme, giving it a high priority in the Republic of Cameroon'sgoal to place up to 30 percentof Republicof Cameroonlands in protectedarea status. Therefore, the Mbam-Djeremarea is an appropriate location for COTCO's offsite environmentalenhancement program for the Deng Deng region. The locationof the proposed Mbam-Djeremarea in relation to the alignmentof the TransportationSystem pipeline in the Deng Deng regionis shown in Figure1.

Backgroundinformation on the Mbam-Djeremarea indicates that it has a habitat mosaic of semideciduousforest, gallery forest, sparselywooded savanna, riparian habitats and isolated rock outcrops (Enoka, 1989). Wildlife species present in the late 1980s included elephants, gorillas, chimpanzeesand bongos. The current size of the large mammal population is not accuratelyknown. According to the same sources,the Mbam-Djeremarea is potentially very rich, even though the area is known to have had heavy hunting pressure during the past 10 years. The resident human populationwithin the proposedprotected area is reportedly very small. These indicators suggest that the Mbam-Djerem area is suitable for protection, dependentupon the resultsof initialbaseline/feasibility studies.

The proposed Mbam-Djeremprotected area encompassesapproximately 353,200 hectares generallybounded to the west by the Tibati - Yoko road, to the east by the Djerem River, to the north by the Migiri River and to the south by the Mbi and MekieRivers (Gartlan,1989). Initiation of the project's offsite environmentalenhancement program requires that the Republic of Cameroondeclare, by a legal instrumentthat conformsto applicablelegislation, the proposed Mbam-Djeremprotected area to be an exclusionzone. This effort has begunwith a signature by the Minister of the Environment and Forestry regarding Ministerial Decision 0373/D/MINEF/DAJpertaining to "ProhibitedAccess to the Mbam and Djerem Forest Zone to be establishedas ProtectedArea." A copy of this MinisterialDecision is includedas AppendixA to this document. Initial declarationof this area as an exclusionzone and/or protectedarea is important in that it establishesa legal frameworkto help provide enforcementagainst illegal huntingof bushmeatresources prior to the protectedarea being permanentlygazetted. Illegal logging activities are not expected to occur in the Mbam-Djeremarea because the forest/ savanna mosaic in that area is expected to be a habitat similar to that found in the

OEEP ENGLISH 05-06.doc 2-1 May 1999 OFFSITE ENVIRONMENTAL ENHANCEMENT PROGRAM ENVIRONMENTALFOUNDATION PLAN VOLUME4 CHADEXPORT PROJECT forest/savannamosaic north of the Lom River in the Deng Deng region, which currently does not supporttimber productionon a large commercialscale. However,illegal hunting/poaching of bushmeatresources in the Mbam-Djeremarea is an ongoingproblem. This is primarilydue to access to the area providedby the Tibati - Yoko road, which forms the westem boundaryof the proposed Mbam-Djeremprotected area. Not only does this road provide access to the proposed protected area, it also provides a direct road link to the railroad at Ngaoundal, approximately75 km away.

This initial declaration of the Mbam-Djeremas a protectedarea ("Mise en defens") will be followedby further stepsto declareit a NationalPark by Decreefrom the Prime Minister after an informationand technical processis completedconsisted with applicablelegislation (Appendix D - letter from MINEF regarding the initiation of the gazettementprocess for Mbam-Djerem). After this procedureis completed,baseline surveys will begin in order to collect information neededfor the developmentof a managementplan. It is estimatedthat baselinedata collection could take between one and three years. In addition to conducting baseline studies, an evaluationwill be madeby the ImplementationOrganization selected by the ManagementBoard of the EnvironmentalFoundation for the area (see Volume4, Part I of this EMP) to determineif it is appropriateto developand implementmeasures to help stop the illegal huntingof bushmeat when the baseline surveys begin, or wait until the baseline studies are completed. Initial measurestaken at the beginningof the baselinesurveys could includea conservationeducation program to specificallycurb the bushmeattrade. However,once the nature and extent of these illegal activities are better understood,more direct and effective measurescan be developed and implemented.

The Mbam-DjeremOffsite EnvironmentalEnhancement Program would be implementedin two phases. A list of likely Phase 1 activitiesis presentedin Table 1. This list comprisesthe kinds of activitiesnormally associated with the gazettementprocess, and includesthe developmentof the informationbase neededto developthe environmentalmanagement plan for the proposed protected area. This list will be refined for specific local conditionsin the Mbam-Djeremarea following preliminary site surveys by the ImplementationOrganization. This organizationwill then developa definitivelist of Phase1 activities,timeframes and costs.

The activities listed in Table 1 constitutethe first phase (up to 3 years) of the program. The timing and design of Phase 2 activities (i.e., long-term protected area management and associated community activities) will depend upon the outcome of Phase 1 activities, the successful gazettement of the Mbam-Djeremarea by the Republic of Cameroon, and the developmentand approvalof an appropriate environmentalmanagement plan for the Mbam- Djerem protectedarea.

May 1999 2-2 OEEP ENGLISH 05-06.doc OFFSITEENVIRONMENTAL ENHANCEMENT PROGRAM ENVIRONMENTALFOUNDATION PLAN CHADEXPORT PROJECT VOLUME4 2.2 COTCO PROPOSED FUNDING

COTCO will contribute $1.5 million USD to the Environmental Foundation to provide defined long-term financial support for defined environmental management activities for the proposed Mbam-Djerem protected area. The Foundation's Management Board will approve annual budgets pertaining to Mbam-Djerem-related activities for the Implementation Organization prior to any expenditure in a year. The organizational nature of the Foundation will ensure that overhead/administrative costs are minimized and that the funds are being allocated for necessary baseline programs and the implementation of management plan objectives for the new protected area. Complete details pertaining to the Environmental Foundation can be found in Volume 4, Part I of this EMP.

2.2.1 Phase I Funding

An amount limited to $500,000 USD will be made available by the Foundation to fund Phase 1 activities in the Mbam-Djerem area as outlined above. The estimated expenditures associated with Phase 1 activities are shown in Table 2. If Phase 1 activities require less than $500,000, then the remaining amount will remain in the capital account of the Foundation and become part of the principle for funding long-term operations in the Mbam-Djerem area. The results of Phase 1 activities will be sufficient for the Republic of Cameroon to officially gazette the Mbam- Djerem protected area and the $500,000 USD is estimated to be sufficient funds for these activities. A breakdown of estimated Phase 1 costs is presented in Table 2.

The Phase 1 costs presented in Table 2 are estimates. Actual Phase I budgets will be developed by the Implementing Organization selected by the Foundation's Management Board for the Mbam-Djerem environmental enhancement project and approved by the Foundation's Management Board prior to dispersing funds.

2.2.2 Long-term Funding

Phase 2 of the Mbam-Djerem program will involve the implementation of an environmental management plan through a well-focused conservation program. The permanently gazetted Mbam-Djerem protected area will be approximately 300,000 hectares in size in its entirety. Culverwell (1998) has recommended that the recurrent expenditures per year for the entire Mbam-Djerem should be 78,270,000 FCFA, (approximately $130,450 USD per year), as shown on Table 3. The annual recurrent costs shown in Table 3 are an estimate of the minimum funding needed to support the conservator for the area and his staff in their activities. It does not include any provision for technical assistance, research activities, tourism development, community activities or education programs.

As shown in Table 3, 18,940,000 FCFA ($31,560 USD) of the 78,270,000 FCFA ($130,450 USD) annual recurrent costs will be the responsibility of the Republic of Cameroon. The remaining 59,330,000 FCFA ($98,880 USD) balance will have to be obtained from donor funds.

OEEP ENGLISH 05-06.doc 2-3 May 1999 OFFSITE ENVIRONMENTALENHANCEMENT PROGRAM ENVIRONMENTALFOUNDATION PLAN VOLUME4 CHADEXPORTPROJECT Assuming the Foundation's capital account for this program will generate an annual 5 percent real return on the -$1,000,000 capital, this program would generate approximately $59,200 (or approximately 60 percent) that would be available for annual long-termnoperational funding over the 28 year (construction and operation) life of the Chad Export Project that will be required for this protected area. This funding will be spent on management of the protected area as outlined in the environmental management plan.

The annual 5 percent real rate of retum, which generates approximately $59,200 as mentioned above, is considered to be conservative. It is expected that an annual 8 percent real rate of return could readily be achieved. This rate of return would generate approximately 57,600,000 FCFA ($96,000 USD) annually. COTCO will provide supplemental funding if necessary, in addition to that provided by the Foundation, to ensure that 59,330,000 FCFA ($98,880 USD) is provided during the first 2 years after EMP implementation begins.

2.3 SCHEDULE

A preliminary schedule showing Phase 1 activities for the Environmental Enhancement Program proposed for the Mbam-Djerem protected area is presented on Table 4. This schedule will be revised by the Implementation Organization selected by the Foundation's Management Board for the Mbam-Djerem Environmental Enhancement Program.

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3.1 DESCRIPTIONOF ENVIRONMENTAL ENHANCEMENT PROGRAM

The first stage in the selectionprocess for identifyingan appropriateoffsite environmental enhancementprogram in the Atlantic Littoral Forest region was to gather informationon conservationprojects in this zone of the Republicof Cameroon. Candidateprojects were identified and evaluatedfor suitabilityfor inclusion in COTCO's offsite environmental enhancementprogram, starting with those projectsclosest to the routeof the Transportation System'spipeline.

A preliminarylist of candidateprojects (see below)was established,and the sites were evaluatedusing the following criteria:

* The siteshould support relatively undisturbed forests typical of the area * The offsitearea should be as closeto thepipeline alignment as feasible * Forestconservation rather than sustainable logging should be the managementobjective * Resettlementof villagesshould be avoided.

This initialevaluation yielded six potentialprojects (the first six listedbelow). Two of these(the Lokoundje-NyongPilot Project and the NyongForest Reserve) were quickly eliminated since it was determinedthat the managementobjective of theseprojects is sustainabletimber harvest rather than conservation. The YaoundeMountains project was subsequentlyeliminated becauseof its relativelylow importancefor forestmammals. The Lac OssaReserve was also eliminatedbecause it lackssignificant forest and consists only of a lake surroundedby a narrow riparianforest within a largeplantation.

PreliminaryList of AtlanticLittoral Forest CandidateProjects ConservationProiect Suitabilityfor EnvironmentalEnhancement Program Campo Reserve Suitable Douala-EdeaReserve Unsuitable,would require resettlement YaoundeMountains Suitable,but relativelylow importance for forestmammals LacOssa Reserve Suitable,but a verysmall site Lokoundje-NyongPilot project Unsuitable,timber production NyongForest Reserve Unsuitable,timber production Dja Reserve Unsuitable,mostly mixed forest, not evergreen MountKupe Unsuitable,too distant MountCameroon Project Unsuitable,too distant KorupProject Unsuitable,too distant MbalmayoForest Reserve Project Unsuitable,timber production Kilum-IjimProject Unsuitable,montane, not lowlandecosystem

OEEPENGLISH 05-06.doc 3-1 May1999 OFFSITEENVIRONMENTAL ENHANCEMENT PROGRAM ENV7RONMENTALFOUNDATION PLAN VOLUME4 CHADEXPORT PROJECT Therefore, the two most suitable projects for considerationwere the Campo Reserve and Douala-EdeaReserve. The Douala-EdeaReserve has a large villagewith many hunters in the middle of it that would require resettlementbefore any effective conservationcould occur. Therefore,the Douala-EdeaReserve does not satisfy an importantcriterion for COTCO'soffsite environmentalenhancement program. The Campo Reserve,however, was determinedto be suitable for COTCO's environmentalenhancement program based upon the selection criteria presentedabove. Furthermore,the CampoReserve has the followingfeatures:

* The Campo Reserveis an evergreenforest with very high biodiversity * It supportspopulations of importantforest mammalspecies * It has an existingconservation program involving MINEF and an NGO * It has partial fundingthrough the World BankGlobal EnvironmentalFund (GEF) program * It is in relativelyclose proximityto the pipelineroute (Figure2).

Therefore,the Campo Reservehas been selectedas the prime locationfor a conservationsite in the Atlantic Littoralforest for COTCO'soffsite environmental enhancement program.

3.1.1 Historyand Descriptionof the CampoReserve

Historv

The Campo Reservewas created in 1932. By the 1980s,effective reserve managementhad ceased. There was uncontrolled poaching of bushmeat resources and a large logging concessionhad been awarded within the boundariesof the Reserve. Although the Reserve was identifiedas having internationalimportance for forest conservationby the IUCN (Gartlan, 1985),there was considerabledoubt concemingits long-termviability. In 1992 and 1993, the World Bank studied the Campo Reservefor possibleinclusion in the GEF program (Thomas & Thomas, 1993). The results of the studies indicatedthat the Campo Reserve was a site of exceptional importance for forest and coastal biodiversity,and still offered one of the best chancesfor protectingthis type of biodiversityin Cameroon. However,lack of managementof the Campo Reserve allowed portions of it to be compromisedby logging concessions,towns, roads and proposed mines. However,the Campo Reserve still containedlarge portions of relatively undisturbedold growth evergreenforest. The GEF program therefore focused on rationalizingthe existing boundariesof the Campo Reserveto create a new protected area in the less disturbed portions of the Reserve and other areas of less disturbed forest currently outside but directlyadjacent to the Reserve. Figure3 representsGEF's proposedmanagement scheme for this area, which clearly depicts the proposed new protected area. The GEF program will also protect and manage coastal resources along the western boundary of the Campo Reserve. More degradedforests surroundingthe new protectedarea will be managed for sustainable production of timber and other forest products. This degraded forest would serve as a buffer zone aroundportions of the protectedarea (Figure3).

May 1999 3-2 OEEPENGLISH 05-06.doc OFFSITEENVIRONMENTAL ENHANCEMENT PROGRAM ENVIRONMENTALFOUNDA TION PLAN CHADEXPORT PROJECT VOLUME4 Flora/Fauna

The existing Campo Reserve and its surroundingareas contain biodiversity of international importancefor conservation. The vegetation in this area representsa range of types from coastal, estuarineand swamp forests to lowland evergreenforest on portions of the coastal plain and inland on steep hills. The vegetationis exceptionallyspecies rich, and a number of rare and/orunique plant speciesare knownto occur in the Campo Reserveand adjacent areas. The mammalianfauna is also rich, and containsa full complementof evergreenforest species. Because portions of the Campo Reserveare relativelyundisturbed and isolated, species have survived here that are locally extinct, or in serious decline elsewhere in the Atlantic Littoral Forest. These include forest elephants,gorillas, mandrills, leopards and the black colobus monkey. The Campo Reserve is also importantfor other groups of animals. The evergreen forest avifauna is well-represented,including the IUCN-listedPicathartes oreas. The forest is very important for amphibians and reptiles, including the IUCN-listedgoliath frog, and it is presumedto be exceptionallyrich in insectspecies.

Three or four species of marine turtles (IUCN protectedspecies) also use the Campo Reserve coastline for nesting, and manatees probably occur in the Ntem estuary. Marine turtles are endangeredand vulnerable because they are killed in large numbers by people when they come onshore to lay their eggs. Populations of all species of marine turtles are in serious declineworldwide.

Human Populations

The populationdensity is low in the Campo Reservearea (less than 2 inhabitants/sqkm), and all the villages are clustered on the two main roads (Kribi to Campo, and Campo to Mvini- Nyabessan-Ma'an). Based on their socioeconomicactivities, four kinds of populations can be distinguished:

* Fishermen. Two closely related Bantu groups live on the coast between Kribi and Campo: the Batanga who live betweenKribi and Lolabe;and, the Yassa who live between Lolabe and Campo. They share many cultural traits, and their languages are related. They fish locally and also practicesubsistence agriculture.

* Farmers. At leastfive Bantugroups of agriculturalistscultivate various food crops and some cocoa in the area.. These farmer groups are also hunters (snares,traps and gun), and fish in the rivers of the Reserve.

* Hunters: Bakola Pygmieshave a few settlementsin the southempart of the area. Between 5-10 settlements are found along he northem border of the Reserve, about 10 near the coast, and some in the interior portions.They use the Campo Reserveprimarily as a hunting area. The census of all settlementsin the Campo Reservearea is currently being updated

OEEP ENGLISH 05-06.doc 3-3 May 1999 OFFSITEENVIRONMENTAL ENHANCEMENT PROGRAM ENVIRONMENTALFOUNDATION PLAN VOLUME4 CHAD EXPORTPROJECT by GEPFE, is not yet completed. However, there are probably in between 300 and 500 BakolaPygmies in and aroundthe CampoReserve.

* Urbanized populations. A logging company named "La Forestiere de Campo" with an associated sawmill is headquarteredin the small city of Ipono on the Ntem river. Wood productsare also shippedfrom here. The populationin Ipono and its immediatevicinity are of very mixedorigin, the majority of which are immigrantsfrom other parts of the Republicof Cameroon. They are employed as drivers, traders, office employees and in the wood productsindustry. The village of Campo is a small sous-prefecturewith very few activities. However,there is a small publichospital and a high schoollocated there.

3.1.2 Present-DayGEF ProgramInvolving TROPENBOS Participation

The first phase of the GEF program is aimed at redefining the boundaries of the Campo Reservewith a primary goal of definingand establishinga viable protectedarea and managing and controllingland use adjacentto it. This effort is currently underway. GEF has a project office in Kribi that works in close collaborationwith the conservatorof the Campo Reserve.

There is a large budget currently available for the development of the Campo area environmental managementplans. The total funding available through Dutch govemment funding,World BankGlobal EnvironmentalFund (GEF)funding and from the Govemmentof the Republic of Cameroonis approximately$7,500,000 USD. At the present time however, this amount applies to the entire project area, includingthe proposedprotected area, reserves for sustainabletimber harvest, and rural developmentzones. As a matter of principle,COTCO's contributionto the EnvironmentalFoundation can only be used to fund activities to protect biodiversityand natural habitatvalues within the protectedarea. It is difficult to calculate the amount of funding earmarked and currently available for developing the environmental managementplans, and for gazettementof the protectedarea. However,it is safe to assume that it is only a small fractionof the total budget.

Currently,the managementof the GEF Campo-Ma'anproject is contractedto TROPENBOS.At the moment,their interestextends through the gazettementeffort to the initial implementationof environmentalmanagement plans (i.e. Phase 1 and the beginningof Phase 2 of the COTCO offsite environmentalenhancement program intendedfor this area). It is unclear how a project in the new Campo protectedarea will be managedafter the TROPENBOScontract ends.

Discussions with the GEF Campo-Ma'an project manager and the Reserve's Cameroon Conservator indicated that the information-gatheringprocess for defining and gazetting a protectedarea and for appropriatelyzoning the rest of the Campo Reserveand adjacentareas is relatively well-funded. However, two problem areas were identified where environmental managementissues are muchgreater than originallyanticipated. These areas are specifically

May1999 3-4 OEEPENGLISH 05-06.doc OFFSITEENVIRONMENTAL ENHANCEMENT PROGRAM ENVIRONMENTALFOUNDATION PLAN CHADEXPORT PROJECT VOLUME4 related to the protectionof endangeredspecies 1. The existingfunding for these surveys is not sufficient to fully evaluate the habitat, distribution, and behavioral pattems of the identified endangeredspecies in the new protected area. In addition, although funds are available to develop an environmentalmanagement plan for the new protectedarea once the surveys are complete,there is no funding availablefor the long-termimplementation of the plan.

3.1.3 COTCO's ProposedProgram in the CampoReserve

COTCO's proposedoffsite environmentalenhancement program in the Atlantic Littoral Forest will have 2 phases. The first phase of the offsite environmentalenhancement program will provide involve undertakingfunding for the above-mentionedendangered species surveys within the Campo area (Figure 3). It is expected that these surveys will take 3 years to complete. The results of these endangeredspecies surveys are necessaryfor the drafting of protectedarea environmentalmanagement plans for the Campo Reservearea, as well as input for the developmentof an environmentalmanagement plan for the new protectedarea. Phase 1 activities will involve the development of a formal environmentalenhancement program contract between the EnvironmentalFoundation and TROPENBOS(i.e., the foundation will contract TROPENBOS to be the Phase I ImplementationOrganization for the Campo EnvironmentalEnhancement Program). This contract would include specificationsfor funding requirementsand ensure that the Foundation'sfunds were utilized in Phase 1 specificallyto supportthe requiredendangered species surveys.

The second phase of COTCO's offsite environmentalenhancement program in the Atlantic Littoral Forest area will involvethe implementationof the managementplan developed for the new protectedarea, once it is gazetted. The timingand designof Phase2 activitieswill depend upon the outcomeof Phase1 activities,the permanentgazettement of the new protectedarea by the Republicof Cameroon,and the developmentof an environmentalmanagement plan for the protected area. The Implementation Organization selected by the Environmental Foundation's Management Board for Phase 2-related activities may be different from TROPENBOS. This Phase2 ImplementationOrganization will be selectedby the Foundation's Management Board in accordance with a documented procedure.2 Key features of the FrameworkAgreement between the ImplementingOrganizations and the Republicof Cameroon (MINEF)are depictedin AppendixE.

3.2 COTCOPROPOSED FUNDING

COTCO will contribute $1.4 million USD to the EnvironmentalFoundation to provide defined long-termfinancial supportfor defined environmentalenhancement activities in the proposed

Thestudies that TROPENBOS has identified as needingadditional funds to completeinclude primates andmarine turtles. 2 Seethe EnvironmentalFoundation Plan contained in Volume4, PartI ofthis EMP.

OEEP ENGLISH 05-06.doc 3-5 May 1999 OFFSITEENVIRONMENTAL ENHANCEMENT PROGRAM ENVIRONMENTALFOUNDATION PLAN VOLUME4 CHADEXPORT PROJECT Campo Reserve protectedarea. The Foundation'sManagement Board will approve annual budgets pertaining to Campo-relatedactivities for the ImplementationOrganization prior to any expenditures in a year. The organizational nature of the Foundation will ensure that overhead/administrativecosts are minimized and that the funds are being allocated for necessary baseline programsand the implementationof managementplan objectives for the new protectedarea. Completedetail pertainingto the EnvironmentalFoundation can be found in Volume 4, Part I of this EMP.

3.2.1 Phase 1 Funding

An amount limited to $400,000USD will be made availableby the Foundationto fund Phase 1 activities in the Campo Reserve area as discussedabove. The $400,000 USDwill be granted to TROPENBOS concurrentlywith funding already available through the World Bank GEF program. The results of Phase 1 activitiesin addition to the activitiesalready funded through the GEF Campo-Ma'anprogram, will be sufficient for the Republic of Cameroon to officially gazette the new protectedarea. If Phase 1 activities require less than $400,000, then the remainingamount will remain in the capital account of the Foundationand become part of the principle for funding long-termoperations in the Campo area. An approximatebreakdown of Phase1 costs is given in Table 5.

The Phase 1 costs presentedabove are estimates. Actual Phase 1 budgetswill be developed by TROPENBOSand approved by the Foundation'sManagement Board prior to dispersing funds.

3.2.2 Long-term Funding

Phase 2 of the Atlantic Littoral forest offsite environmentalenhancement program will involve the implementation of an environmental managementplan for the protected area. - The permanentlygazetted new protected area (shown in blue on Figure 3) will be approximately 275,000 hectares in size. Culverwell(1998) has recommendedthat the recurrentexpenditures per year for the Campo Reserveshould be 153,075,000FCFA ($255,125USD). However,this estimate is based on the original protectedarea, which features many roads. Conversely,it is estimatedthat the new protectedarea will have very few roads. Therefore,the estimated road maintenance budget identified by Culverwell (1998) can be reduced by at least 90,000,000 FCFA ($150,000) per year (Table 6). This reduces the annual total recurrent costs to 63,075,000FCFA (approximately$105,125) as shown in Table 6. 18,340,000FCFA ($30,565) of this amount is attributedto salariesfor civil servantsand other costsnormally provided by the Govemment of Cameroon. The remaining costs of 44,735,000 FCFA ($74,560) would be requiredfrom donor organizations.

Assuming the Foundation'scapital accountfor this programwill generatean annual 5 percent real return on the -$1,000,000 principal,this program would generate approximately$59,200 (or approximately79 percent)of the annual long-termoperational funding requiredfor this new

May 1999 3-6 OEEPENGLISH 0S-06.doc OFFSITE ENVIRONMENTAL ENHANCEMENT PROGRAM ENVIRONMENTAL FOUNDATION PLAN CHAD EXPORT PROJECT VOLUME 4 protected area. It should be noted that Culverwell's (1998) costs are a considered a minimum estimate of the minimum funding needed to support the conservator and his staff in their activities. The estimates do not include provisions for technical assistance, research, tourism development, or community activities and education, all of which are activities normally associated with a protected area.

The annual 5 percent real rate of return, which generates approximately $59,200 as mentioned above, is considered to be conservative. It is expected that an annual 8 percent real rate of return could readily be achieved. This rate of return would generate approximately 58,320,000 FCFA ($96,000 USD) annually, or 12,864,000 FCFA ($21,440 USD) more than the annual 44,735,000 FCFA ($74,560 USD) that would be required from donor funds to support long-term funding. However, COTCO will provide supplemental funding if necessary, in addition to that provided by the Foundation, to ensure that the 44,735,000 FCFA ($74,560) are met during the first 2 years after EMP implementation begins.

3.2.3 Environmental Education Program

Wildlife management in the Campo Reserve area has been identified as a problem in the short term. Consequently, it is important to carry out an environmental education program in the local communities of the Campo area. An environmental education program would demonstrate the local, national and international importance of the wildlife in the areas, show how the local people will benefit overall from the Campo Reserve area (especially the new protected area),; explain why the new protected area is necessary and, explain how wildlife regulations will be enforced following gazettement of the new protected area. An environmental education program for the Campo Reserve area could have the following elements:

* A 3-year program to provide capacity building for the Conservator and education for the local population on wildlife issues. * A basic environmental conservation education program for local villagers, officials, industries and townspeople in the Campo Reserve and adjacent area. It would focus on the goals of the current GEF program regarding wildlife management, and would encourage cooperation between local resource-users and the Conservator.

* The program would inform the local population and local Government officials about Cameroon laws conceming listed wildlife species.

* The program would enable the Conservator to play a more active role in the GEF/ TROPENBOS program, and would increase his capacity to work closely with research workers and consultants for capacity building.

* It would provide training for the Conservator's staff for participation in the GEF program and for future protected area management activities.

OEEP ENGLISH 05-06.doc 3-7 May 1999 OFFSITEENVIRONMENTAL ENHANCEMENT PROGRAM ENVIRONMENTALFOUNDATION PLAN VOLUME4 CHADEXPORT PROJECT COTCO will fund an environmentaleducation program similar to the one describedabove as part of Phase I activitiesassociated with its proposedenvironmental enhancement program in the AtlanticLittoral Forestregion.

3.3 SCHEDULE

A schedulefor implementingPhase 1 activitieswill be preparedand included as part of the environmental enhancement program contract developed between TROPENBOS and the EnvironmentalFoundation. The schedulefor implementingPhase 2 activitieswill be prepared and included as part of the environmentalmanagement plan developedfor the new protected area as a result of Phase 1 activities. This (Phase 2) schedule will be revised by the ImplementationOrganization selected by the Foundation'sManagement Board.

May 1999 3-8 OEEPENGLISH 05-06.doc OFFSffEENVIRONMENTAL ENHANCEMENT PROGRAM ENVRONMENTALFOUNDATION PLAN CHADEXPORT PROJECT VOLUME4 4.0 REPUBLICOF CAMEROONPROTECTION MEASURES FOR THE CAMPO AND MBAM-DJEREMSITES

As part of the implementationof the offsite environmentalenhancement program in the Atlantic Littoral and Deng Deng forests,the Campo Ma'an and Mbam-Djeremsites have been declared "exclusion zones" by the Republic of Cameroon, pursuant to Ministerial Decision Nos. 373/D/MINEF/DAJand No. 372/D/MINEF/DAJ,(Appendices A and B, respectively)respectively. These Ministerial Decisionswere issued by the Minister in charge of the Environmentand Forests on March 12, 1999, in preparationfor the gazettementprocedure to classify both sites as NationalParks (seeAppendix D Letter).

To ensure enforcementof these MinisterialDecisions, a site protection MonitoringCommittee was createdon March 17, 1999 by Circular No. 676/NS/MINEF/CABissued by the Minister in charge of the Environmentand Forests(copy of this circular is attachedas AppendixC).

The MonitoringCommittee is headedby the Minister in charge of the Environmentand Forests and includesgovemment and NGOrepresentatives, as well as representativesof the interested economicoperators.

This committee held its first meeting in Kribi on March 25 and 26, 1999 and discussed the immediatemeasures that needto be implementedto ensureeffective protection of the sites.

The conservationmeasures currently adopted by the CameroonGovemment for these sites include:

- Annulmentof Public Notice No. 00304/MINEF/DF/SDIAF,dated March 04, 1999, regarding the call for bids referencedunder No. 0031/AAO/MINEF/DF/SDEIFfor awardinga "vente de coupe" logging permit in the area of Akom II (inside the area declared as an "exclusion zone"). * The ongoing preparationof the locationmap of all "ventes de coupe" logging operationsin the Campoarea by the above mentionedcommittee. * The decisionto extend the HEVECAMplantations (28000 ha) to the north of the area, to avoid possibleencroachment on the Campo Reserve * Involvementof nationalNGOs in the protectionof the sites, in particularin the environmental awarenessactivities targeting riverine populations. * Reinforcementof controlsin the Campoarea, including: - Use of the rolling stockacquired through GEF and DGIS donationsand assignedto the Campo Ma'anproject - Increasethe size of the personnelin charge of monitoring,by recruitingon a contract basis currentlyunemployed graduates of the Ecoledes Eauxet Foretsin Mbalmayo.

OEEP ENGLISH 05-06.doc 4-1 May 1999 OFFSffEENVIRONMENTAL ENHANCEMENT PROGRAM ENVIRONMENTALFOUNDATION PLAN VOLUME4 CHADEXPORTPROJECT * Requiringsystematic environmental assessments for any future developmentprojects in the Campo area, accordingto applicablelegislation.

These measuresreflect the commitmentof the CameroonGovernment regarding the protection of the Campo-Ma'an site, as expressed by the Minister in charge of the Environment and Forestsduring the above-mentionedfirst meetingof the MonitoringCommittee.

A few projects that are currently planned in the area were also discussed at the meeting, including:

* Developmentof the iron ore deposit knownas "Mamelles"; * Constructionof the Memve'elehydroelectric dam on the Ntem river.

The iron ore deposit known as the "Mamelles" is located northeast of the town of Campo, outside the completelyprotected Campo-Ma'an area. The company previouslycreated for the evaluationof this deposit (SEFERCAM)has now been dissolved.

As to the constructionand operationof a hydroelectricdam in the area, it is not expected that any such plans will be carried out in the near term. However, should the above project be carried out, environmentalassessment studies would first need to be performedas indicated above,taking into considerationthe presenceof the Campo-Ma'anreserve.

In the event that the Memve'eledam is built, the water body that would be created along the extremesouth border of the Reservewould be usedfor the developmentof ecotourismand the managementof aquaticecosystems, as part of the plannedecological development of the area through the current program developedby the GEF-BiodiversityProject on the Campo-Ma'an site.

The Republicof Cameroonhas startedthe activitiesrelated to the processof gazettementof the Campo and Mbam-DjeremNational Parks. Within the frameworkof this process,the Republic of Cameroonaccepts that the local inhabitantscontinue to reside and exercise their usage rights and the neighboring population exercise their usage rights in these National Parks according to applicable legislation and the National Parks' ManagementPlan which will be developed.

The gazettementprocess of the above NationalParks will be pursuedin an expeditiousmanner. The Republicof Cameroonshall be solely responsiblefor all costs relatedto the gazettementof the Campoand Mbam-DjeremNational Parks.

Once the permanentgazettement process is completedand as the environmentalmanagement plan implementation process begins, the Republic of Cameroon will fund and provide the requiredstaff for Conservators,technicians and game guards as requiredby the environmental managementplan for each of these sites (see Tables 3 and 6 for current estimates). The

May 1999 4-2 OEEP ENGLISH 05-06.doc OFFSITEENVIRONMENTAL ENHANCEMENT PROGRAM ENWRONMENTALFOUNDATION PLAN CHADEXPORT PROJECT VOLUME4 Republic of Cameroonwill also be responsiblefor providingthe required administrativeoffice space and related utilities costs necessary to support the long-term environmental implementationprocess at eachof these sites (seeTables 3 and 6 for currentestimates).

OEEPENGLISH 05-06.doc 4-3 May 1999 THIS PAGE INTENTIONALLYLEFT BLANK OFFSffEENVRONMENTAL ENHANCEMENT PROGRAM ENWRONMENTALFOUNDATION PLAN CHADEXPORT PROJECT VOLUME4 5.0 REFERENCES

Culverwell,J. 1998. Long-termrecurrent costs of protected area managementin Cameroon. Reportto \AWF-Cameroon on project33.06.01.

Enoka, N. 1989. Etude du Project de Classemantde la zone de Mbamet de Djerem en Parc National. Thesis, Universityof Dschang.

Gartlan, S. 1989. La Conservationdes Ecosystemesforestiers du Cameroun. Le programme de i'UICN pour les ForetsTropicales.

Thomas, D.W. and ThomasJ.M. 1993. Botanicaland Ecological Survey of the Campo-Ma'an Area. Reportto the World BankGEF program.

OEEP ENGLISH 05-06.doc 5-1 May 1999 THIS PAGE INTENTIONALLYLEFT BLANK TABLES OFFSITE ENVIRONMENTAL ENHANCEMENT PROGRAM ENVIRONMENTAL FOUNDATION PLAN CHAD EXPORT PROJECT VOLUME 4 TABLEI MBAM-DJEREMGAZETTEMENT AND MANAGEMENTPLAN ACTIVITIES

1. Temporary gazettement of the Mbam-Djerem area by the Republic of Cameroon. (Completed) 2. Identificationof the type of protectedarea to be created.(Completed-will be NationalPark) 3. Identificationand descriptionof the boundariesof the proposedprotected area. 4. Consultation processwith the villagers and with local officials concerningthe location and managementof the proposedprotected area. 5. Acquisitionof all remainingnecessary documentation by the Republicof Cameroonneeded for gazettingthe area as a NationalPark. 6. Gazettementof the areato a NationalPark by the Republicof Cameroon. 7. Formal selection of organizationsto be involved in this project and discussions with potentiallyqualified Camerooniannational organizations. 8. Formalizationof a relationship between the selected ImplementationOrganization and MINEF (see Appendix E), and the Pipeline Oversight and MonitoringCommittee for this projectand the developmentof a projectmanagement team and staffing needs. 9. A plan for the operations of the project managementwith other Republic of Cameroon GovernmentAgencies in the area, and with local communities. 10. Productionof a detailedbudget and projectimplementation schedule, indicating the various sourcesof funding and allocationof fundsto the various agreedupon cost items over the life of the project. 11. A study of infrastructureneeds, and the implementationof those items neededfor the first three years (headquarters,buildings, vehicles, permanent field camps etc.) 12. For the Mbam-Djeremarea: detailedbiological surveys on the current status of the wildlife populations;development of land use, vegetationand natural habitat maps, developmentof a sensitive species lists, descriptionsof wildlife and vegetationtypes/distributions; detailed surveys of hunting in and aroundthe proposedNational Park; and a socioeconomicsurvey of the communitiesin and aroundthe proposedNational Park. 13. Preparationof a comprehensivemanagement plan for the NationalPark. 14. Adjustmentof NationalPark boundaries(if needed)to reflectthe ManagementPlan.

OEEP ENGLISH 05-06.doc May 1999 OFFSITEENVIRONMENTAL ENHANCEMENT PROGRAM ENVIRONMENTALFOUNDATION PLAN VOLUME4 CHADEXPORT PROJECT

TABLE 2 MBAM-DJEREM $500,000 PHASE I ESTIMATE BREAKDOWN'

Potential One-time Costs Vehicle Purchase (2 4x4) ...... 60,000 Field/Camping ...... 5,000 Computers ...... 10,000 Buildings ...... 15,000 Other Supplies ...... 20,000

Total One Time Cost Subtotal $110,000 Potential Recurring Costs Over Years 1-3 Expats/Senior Staff 60,000 per year .180,000 Local Scientists 25,000 per year .75,000 Assistants, Drivers 7,000 per year .21,000 Local Labor 10,000 per year .30,000 Per Diems 15,000 per year .45,000 Vehicle Fuel! Maintenance 10,000 per year .30,000 Rent/Utilities 3,000 per year .9,000 Recurring Costs Subtotal $390,000 Three Year Total $500,000

All amounts are expressed in USD. $1USD = 600 FCFA

May 1999 OEEPENGLISH 05-06.doc OFFSITEENVIRONMENTAL ENHANCEMENT PROGRAM ENVIRONMENTALFOUNDATION PLAN CHAD EXPORTPROJECT VOLUME4 TABLE 3 RECOMMENDEDRECURRENT EXPENDITURES PER YEAR FOR THE PROPOSED MBAM-DJEREMPROTECTED AREA (x '000 FCFA) 12

ITEMS Mbam-Djerem STAFF COSTS Salaries Cons 1&2 1,440* Cons3/Tech 1,080* Game Guard 15,120* Community 0 Salary Supps. 8,820 SUBTOTALS 26,460 Training 1,500 Uniforms 2,250 ADMINISTRATION Utilities 1,200* Office 100* COMMUNITY 0 SUBTOTALS 5,050 VEHICLES 4x4 Fuel 2,880 Spares 4,000 Replacement 4,000 Boat Fuel 0 Spares 0 Replacement 0 Mlcycle Fuel 480 Spares 350 Replacement 400 SUBTOTALS 12,110 MAINTENANCE Roads 30,000 Trails 0 Buildings 150 Equipment 4,500 SUBTOTALS 34,650

TOTALS __78,270

Source: Culverwell(1998) Table 6.12

Includes boththe Republicof Cameroonexpenditures (18,940,000 FCFA/yr) and items necessaryfor donorsupport (59,330,000FCFA/yr). The Republicof Cameroonresponsibilities are indicatedwith a *.

2 $1USD = 600 FCFA

OEEPENGLISH 05-06.doc May 1999 OFFSITEENVIRONMENTAL ENHANCEMENT PROGRAM ENVIRONMENTALFOUNDATION PLAN VOLUME4 CHADEXPORT PROJECT TABLE 4 PROPOSEDSCHEDULE FOR MBAM-DJEREMPHASE I ACTIVITIES PROVISIONALSCHEDULE FOR YEARS 1-3

Year 1 Year 2 Year 3 Gazettementof Mbam-Djerem .. Formalselection of NGO .. FrameworkAgreement between NGO, MINEF .. Developbudget schedule es Coordinationplan, GOC .... Infrastructure,equipment plan for years 1-3 ...... Infrastructure,equipment acquisition * * .. ****.*** .. Acquisitionof maps, images,literature ...... Wildlifesurvey of Mbam-Djeremarea ...... ***.*. ************..- ...... Vegetation/habitatsurveys/mapping ...... ______...... Huntingsurveys *...... Socioeconomicsurveys ...... Local consultationprocess *...... **0****0*00***********0 ...... Preparationof NP ManagementPlan ...... Review/Acceptanceof NP ManagementPlan by ...... GOC AdjustGazettement of Mbam-DjeremNP 0000.. (if necessary)

MINEF= Ministryof the Environmentand Forestry GOC= Governmentof Cameroon NP = NationalPark

May1999 OEEPENGLISH 05-06.doc OFFSITEENVIRONMENTAL ENHANCEMENT PROGRAM ENVIRONMENTALFOUNDATION PLAN CHADEXPORT PROJECT VOLUME4 TABLE 5 CAMPO RESERVE AREA $400,000 PHASE 1 COST ESTIMATE BREAKDOWN, USING INFORMATION PROVIDED BY THE GEF CAMPO-MA'AN PROJECT 1

Yr1 Yr2 Yr3 2 wildlife biologists (gorillas) $55,000 $55,000 $55,000 Wildlife biologist (marine turtles) 10,000 10,000 10,000 Biologist's travel 15,000 15,000 15,000 Turtle technician 4,000 4,000 4,000 2 students 6,000 6,000 6,000 Local labor 2,000 2,000 2,000 Supplies 20,000 20,000 20,000 Vehicle Maintenance 15,000 15,000 15,000 Vehicle (pick-up) 19,000 0 0 Totals $146,000 $127,000 $127,000

TOTAL $400,000

1 All amounts are expressed in USD. 1 USD = 600 FCFA.

OEEP ENGLISH 05-06.doc May 1999 OFFSITEENVIRONMENTAL ENHANCEMENT PROGRAM ENVIRONMENTALFOUNDATION PLAN VOLUME4 CHADEXPORTPROJECT TABLE6 RECOMMENDEDRECURRENT EXPENDITURES PER YEAR FOR THECAMPO RESERVE (x '000 FCFA)123

ITEMS CAMPO RESERVE STAFF COSTS Salaries Cons 1&2 1,440* Cons3/Tech 1,080* Game Guard 15,120* Community 1,200 Salary Supps. 9,420 SUBTOTALS 28,260 Training 1,500 Uniforms 2,475 ADMINISTRATION Utilities 600* Office 100* COMMUNITY 1,500 SUBTOTALS 6,175 VEHICLES 4x4 Fuel 2,880 Spares 4,000 _ Replacement 4,000 Boat Fuel 0 Spares 0 Replacement 0 M/cycle Fuel 960 Spares 700 Replacement 800 SUBTOTALS 13,340 MAINTENANCE Roads 10,150 Trails 500 Buildings 150 Equipment 4,500 SUBTOTALS 15,300 TOTALS _ 63,075

Source: Culverwell(1998) Table 6.9.

' Assumedto be representativefor the new proposedprotected area of the Campo Reserve,except for roadmaintenance costs, which will be much lowerin the newpa. ThereforeCulverwell's cost estimates have beenreduced from 100,150,000to 10,150,000FCFA. 2 Includes both the Republicof Cameroonexpenditures of 18,340,000FCFA per yr. and items suitable for donorsupports (44,735,000 FCFA/yr.). The Republicof Cameroonitems are markedwith an *. 3 $1USD= 600 FCFA

May1999 OEEPENGLISH 05-06.doc FIGURES -~ s

Dang Garoua-Bou

BetareOya

- ~~~~~~~~~~~~~~~~~~~Chad

9> Nigeria

Goyou u DengDeng area of nterest

Ocean4/ | | 4 < t ^Arican

Nanga Eboko ftean

|LEGEND r LEGEND Proposed Mbam Djerem National Park International Boundary | Rail * City Chad Export Project | in Relationto Pipeline

Pipeline River > Reserve DAMES& MOORE Figure1 Lolodorf Lokoundje /

Bipindi

Kienk6 ~~~~~~~~~~~~~~~~~~~~~~~~~Chad

F DA~~~~bA~~~ moUdou Atlantic Nigeria -

~~ka~~Jfl~AfricanloeCentral Existing Campo RRepubelc fIJI~ ~~~...... u..N-og.

Alantic re ofAKA Ocean ~~Interest Equatorial Guinea______

LEGEND ExistingCampo Reserve Area

--- -~ International Boundary Reserve * City Chad Export Project in Relationto Pipeline Pipeline River P e DAMES& MOORE Figure2

AOAMTS A MOt,KEAOl')?Figure 2 KEY Kri0000bi,00h W 1-- a L;X:1 No Data trees Areawith a permitfor thesale of marketable Kenk6e MiningZone I Plantations ProposedBuffer Areas ProposedNew National Park TimberProduction Forest

Notes: ApproximateArea of ExistingCampo Reserve: 266,630hectares

TotalProposed New NationalPark: 275,150hectares ApproximateProposed New National Park withinExisting Campo Reserve: 122,430hectares ProposedNew National Park Outside Existing CampoReserve: 152,720hectares

EquatorialGuinea

LEGEND 1ProposedManagement Scheme for

--- InternationalBoundary * city the CampoNational Park

- Pipeline Chad Export Project River I & ~~~~~~~~~~~~DAMES& MOORE River~~~~~~~~~~~~~~~~~~~~~~~~~~~~lA~ ORERU'OPN Figure 3 THIS PAGE INTENTIONALLYLEFT BLANK APPENDIXA

MinisterialDecision 0373/DIMINEF/DAJ

PERTAININGTO PROHIBITEDACCESS TO THE MBAM AND DJEREM FORESTZONE TO BE ESTABLISHEDAS PROTECTEDAREA REPUBLIC OF CAMEROON PEACE-WORK-FATHERLAND MIN[ISTRYOF THE ENVIRONMENT AND FORESTRY

RESOLUTION No. 0373/D/MNEF/DAJ PERTAINING TO PROHIBITED ACCESS TO THE MBAM AND DJEREM FOREST ZONE TO BE ESTABLISHED AS PROTECTED AREA

The Minister of the Environmentand Forestry,

Pursuant to the Constitution; Pursuant to Law No. 94/001 of January 20, 1994 pertaining to the plan for forests, fauna and fishing; Pursuant to Decree No. 95/466/PM of July 20, 1995, establishing the methods of applications of the fauna plan; Pursuant to Decree No. 95/53 1/PM of August 23, 1995, establishing the methods of application of the Forest system; Pursuant to Decree No. 97/205 of December 18, 1995, pertaining to the organization of the Government; Pursuant to Decree No. 97/207 of December 7, 1997, pertaining to the formation of the Government; Pursuant to Decree No. 98/345 of December 21, 1998, pertaining to the organization of the Ministry of the Environment and Forestry; Pursuant to the Convention on biological diversity of June 14, 1992; Pursuant the Cameroon National Forestry Action Plan of June 1994; Pursuant to the service requirements;

RESOLVES:

ARTICLE 1: Prohibited access is established, effective from the date of signature of this Resolution, on a forested zone named MBAM AN-DDJEREM, with an approximate surface area of 353,000 (three hundred fifty thousand [SIC]) hectares, to be established as protected area ARTICLE 2: (1) The Mabam and Djerem forest zone extends on the provinces of: Adamaoua (Djerem Departnent), of the center of the Departnent of Mbam and Kim and of the east (Lom And Djerem Department).

(2) The boundaries of this forest zone are defined as follows, such as entered on the 1:200,000 scale map attached herewith:

TO THE WEST: Point A, called base point, is located in the Djampan Village at the intersection of the Yoko- Tibati road and a tributary of the Mbi river. From Point A, following the Yoko-Tibati road, as far as the Lena Village, Point B. From Point B, following the Allemande trail as far as the Mbam Village, Point C. From Point C, following the Yoko-Tibati road as far as the Mbatimbang Village, at the intersection of the Yoko-Tibati road with the Migiri water course/???, point D.

TO THENORTH: - From Point D, following the Migiri downstream, as far as the confluence with the Miyere, Point E; - From Point E, following the Miyere downstream as far as the confluence with the Djerem, Point F; - From Point F, following the Djerem downstream as far as the confluence with the Malo, point G. - From Point G, following the Malo upstream as far as its source, point H.

TO THE EAST: - From Point H, following the crest as far as the source of the Merou river, Point I. - From Point I, following the Merou downstream as far the confluence with the Djerem, Point J.

TO THE SOUTH: - From Point J, following the Djerem upstream as far as the confluence with the Mekie, Point K. - From Point K, following the Mekie upstreamas far as the confluence with the Mbi, Point L. - From Point L, following the Mbi upstreamas far as the confluence with one of its named tributaries, Point M. - From Point M, following this tributary upstream as far as Point, called base point. ARTICLE 3: Hunting and lumber operations are prohibited in the forest zone defined in the above Article 2. However, the autochthonous population retains the normal rights of usage in accordance with the Forest and Fauna Regulations.

ARTICLE 4: A Committee in charge of monitoring the application of this Resolution will be created by special ordinances from the Minister.

ARTICLE 5: For classification of the Mbain and Djerem zone as protected area, the reference terms of the design studies to be performed will be defined by the Committee created in accordance with the above Article.

ARTICLE 6: This prohibition remains in effect until the results are submitt.edfor classification as protected area.

ARTICLE 7: This Resolution will be recorded and published in French and English wherever it this will be needed.

Done in Yaounde, on March 12, 1999

[s] THE MINSTER OF THE ENVIRONMENT AND FORESTRY SYLVESTRE NAAH ONDOA THIS PAGE INTENTIONALLYLEFT BLANK APPENDIX B

MinisterialDecision 0372/D/MINEF/DAJ

PERTAININGTO PROHIBITEDACCESS TO THE ZONE OF INTERVENTIONOF THE PROJECTFOR CONSERVATIONAND MANAGEMENTOF CAMPO-MA'ANBIODIVERSITY REPUBLIC OF CAMEROON PEACE-WORK-FATHERLAND MINISTRY OF THE ENVIRONNENT AND FORESTRY

RESOLUTION No. 037;YD/MINEF/DAJ PERTAINING TO PROH[BITED ACCESS TO THE ZONE OF INTERVENTION OF THE PROJECT FOR CONSERVATION AND MANAGEMENT OF CAMPO-MA'AN BIODrVERSITY.

The Minister of the Environment and Forestry,

Pursuant to the Constitution; Pursuant to Law No. 94/001 of January 20, 1994 pertaining to the plan for forests, fauna and fishing; Pursuant to Decree No. 95/466 of July 20, 1995, establishing the methods of applications of the fauna plan, Purut to the Convention on the diversity of the Biodiversity of June 14, 1992; Pursuant to Decree No. 95/678/PM of December 18, 1995, defining the southem zoning plan of Camneroon, Pursuant to Decree No. 97/205 of December 7, 1997, pertaining to the organization of the Government; Pursuant to Decree No. 098/345 of December 21, 1998, pertaining to the organization of the Ministy of the Environment and Forestry; Pursuant to Decree No. 97/207 of December 7, 1997, pertaining to the formation of the Government; Pursuant to Resolution No. 091A/AffNEF/DAJ of February 8, 1995, creating the priority site of Campo-Ma'an (see enclosed description); Pursuant to the service requirements;

RESOLVES:

ARTICLE 1: Prohibited access is established, effective from the date of signature of this Resolution, on the zone of intervention of the Campo-Ma'an project with a surface area of 709,760 hectares, consisting of two parts:

- A full protection zone - A peripheral zone. ARTICLE 2: The full protection zone with a surface area of 290,232 hectares includes four (4) essential protection zones as follows:

(a) The essential zone of the Dipikar island (35,000 ha (hectares); (b) The essential zone of the mountain or protection forest (139,848 ha); (c) The North-East essential zone or a full ecological reserve (81,536 ha); (d) The essential protection zone called Corridor (33,856 ha.).

ARTICLE 3: The boundaries of these zones are those defined in Resolution No. 091/AIIINEF/DAJ of February 8, 1995, creating the "Priority Site of the GEF Project/ Campo- Ma'an Biodiversity". ARTICLE 4: Hunting and forest development activities are strictly prohibited inside the above- defined protection zone. ARTICLE 5:This prohibition remains in effect for the duration of the studies in progress, until said perimeter is classified as protected area ARTICLE 6: The peripheral zone included within the outer boundaries of the full zone described in Article 2 of this Resolution and the outer boundaries of the zone of intervention of the CAMPO- MA'AN project, such as specified hereinbelow and entered on the 1:200,000 map attached herewith.

To the West: The Atlantic coastline starting from the mouth of the NTEM to the South, as far as the mouth of the LOBE to the North.

To the Northwest: The North boundary of the Socapalm plantations starting from the mouth of the LOBE as far as to Bidou Village.

To the North: The Kribi- road, starting from Bidou as far as the Nkong-Yebay Village, passing through Akom II.

To the Northeast and to the East: The road from the Nkong-Yebay Village as far as the City of Ma'an, starting from Nkong-Yebay as far as the Okong Village, and hence East as far as the bridge on the River .

To the East: The MIELA River from the above-mentioned bridge to its intersection with the NSOO River and hence as far as the NSOMESSOK Village to the East. To the Southeast: The foot trail starting from the NSOMESSOK Village toward Mincomesseng in Equatorial Guinea, as far as its intersection (Point P) with the Cameroon-Equatorial Guinea border.

To the South: From the above-mentioned Point P, along the Cameroon-Equatorial Guinea border, westvard as far as the mouth of the NTEM.

ARTICLE 7: In accordance with the provisions of Resolution No. 091/A/MINEF/DAJ of February 8, 1995, any activities other than those regarding research, education, information on conservation and management of biological resources are prohibited in the peripheral zone described in Articles 1 and 6.

However, taking into account the actual existence of a certain number of activities in the zone, a Management and Monitoring Committee (CGS) created by a special ordinance from the MINEF, is in charge of monitoring the application of the provisions of this Resolution. Article 8: This Resolution will be published in French and English wherever this may be needed.

Done in Yaounde, on March 12, 1999

[s] THE MINISTER OF THE ENVIRONMENT AND FORESTRY SYLVESTRE NAAH ONDOA THIS PAGE INTENTIONALLYLEFT BLANK APPENDIXC

MinisterialDecision 0676/NS/MINEF/CAB.

TO CREATEA COMMITTEEFOR THE MANAGEMENTAND MONITORINGOF THE CAMPO-MA'ANAND MBAMAND DEREMSITES REPUBLICOF CAMEROON PEACE-WORK-FATHERLAND MINISTRYOF THE ENVIRONMENTAND FORESTRY

CIRCULARNO. 0676/NSIMINEFICAB.

TO CREATEA COMMITTEEFOR THE MANAGEMENTAND MONITORINGOF THE CAMPO-MA'ANAND MBAMAND DJEREMSITES

1. As of the signingdate of this circular, a Committee(Management and Monitoring Committee or CGS) shall be created to manage and monitor development, planning, and conservation activities on the "Campo Ma'an" and "Mbam et Djerem" sites, which have been declared as "exclusion zones" pursuant to Resolutions No. /D/MINEF/DAJ, dated , and No. ID/MINEF/DAJ,dated , respectively.

2. (1) The compositionof the aforementionedCommittee is as follows: A: GOVERNMENTREPRESENTATIVES Al Both Sites:

The ForestryDirector- MINEF Chairman The ExecutiveSecretary of the GEF Program Spokesman The Wildlife and ProtectedAreas Director Member The PermanentSecretary to the Environment Member The Headof the Legal Department Member The MINEFRepresentative on the PipelineOversight and MonitoringCommittee (CPSP) Member

A2 Campo- Ma'an Site: The South ProvinceDelegate - MINEF Member The South ProvinceDelegate - MINAGRI Member The Commissionerof the CampoWildlife Reserve Member

A3 Mbamet Djerem Site The Adamaoua,Central, and East Province Delegates - MINEF Members

B: IMPLEMENTINGAGENCIES B1 Campo-Ma'anSite

The Campo-Ma'anTROPENBOS Representative Member The Campo-Ma'anSNV Representative Member The CETELCAF B2 Mbamet Djerem Site To de Determined.

C: ECONOMICOPERATORS C1 Campo-Ma'an Site: The Directorof the Forestierede Campo (HFC) Member The COFA Director Member The WIJMA Director Member The BubingaDirector Member The UTC Director Member The HevecamDirector Member The SocopalmDirector Member FADES-AFRIQUE(Local NGO) Member FAGAPECAM(Local ONG) Member

C2 Mbam et Djerem Site To be Determined.

(2) The chairman may ask any expert of its choice to take on a consultativerole in the work of the Committeeon relevantsubject matters.

3. The Committeehas the followingmissions:

Establishthe basis for a harmoniouscooperation to define the work objectives, contributions,and responsibilitiesof the partiesinvolved, Developa chronogramfor field interventionsconsistent with the implementation objectivesof the planneddevelopment studies, Manageany conflictsthat may arise betweenthe partiesinvolved, Ensurethe implementationof the provisionsof Arrete No. 091/MINEF/DAJ,dated February 8, 1995, the resolutionsto declare the Campo Ma'an and Mbam et Djeremsites as "exclusionzones", and any resolutionstaken by this Committee, Definethe methodologiesand standardsto be usedfor carryingout field studies, Define the frameworkfor the implementationof the developmentplans on the sites involved, Facilitateany additional supportneeded for the sustainabledevelopment of the area.

4 Fundingfor the Committee'soperating costs will be providedby the Ministry of the Environmentand Forestry,and by any other sourcethat may be requiredfor carryingout the Committee'sactivities. 5 This circularwill be recordedand publishedas appropriate.

Yaounde March 17, 1999

THE MINISTER OF THE ENVIRONMENT AND FORESTRY /Seal and signature/ SylvestreNAAH ONDOA APPENDIX D

LETTER FROM MINEF REGARDINGTHE INITIATIONOF THE GAZETTEMENTPROCESS FOR MBAM-DJEREM Free Translation

MINISTRYOF THE ENVIRONMENTAND THE REPUBLICOF CAMEROON FORESTS ------Peace-Work-Fatherland WILDLIFEAND PROTECTEDZONES DEPARTMENT

Yaounde,27 May 1999

No.1390/MINEF/DFAP

The Ministerof the Environmentand the Forests

To the GeneralManager of the CameroonOil TransportationCompany (COTCO) BP 3738 Douala - Cameroon

Object: Chad/CameroonPipeline Project Implementation of the Environmental Enhancement Plan (gazettement of the Campo Ma'an and Mbam Djeram sites)

Dear Sir,

I have the honor to informyou that in order to implementthe Plan cited in the Objectrelated to the Chad/CameroonPipeline Project, and followingthe protection("mise en defens")of the Campo Ma'anand Mbam Djeram sitesby DecisionsN° 372/D/MINEF/DAJand 373/D/MINEF/DAJrespectively, both dated March 12, 1999,I requestedthat the appropriatesections of my Departmentas well as those of the other concernedgovernment organizations begin the process of gazettementof these sitesinto NationalParks as soon as possible.

Theprocess of classificationwill be performedin accordancewith Law N°94/01 dated January 20, 1994 dealingwith the Forests,Wildlife and Fishingregulations, as well as with one of its related decrees, specificallyDecree N° 95/466/PMdated July 20, 1995establishing the implementationof the wildlife regulations.

Oncethis processcompleted, the documentsnecessary to the making of the decreesclassifying both of these sites intoNational Parks will be forwardedto the PrimeMinister, Head of Government,for his timely approval.

THE MINISTEROF THE ENVIRONMENTAND THE FORESTS

//signature// [SEAL]

SylvestreNAAH ONDOA CertifiedCopies to:

- SG/PR - SG/PM - MINAT - MINAGRI - MINUH - ADG/SNH - World Bank (Atn: Ms. Cynthia COOK) Fax n° (202) 473 81 85

9322s000.docFLC/c Page I of 1 MINISTEREDE L'ENVIRONNEMENTET DES FORETS REPUBLIQUEDU CAMEROUN

DIRECTIONDE LA FAUNE ET DES AIRESPROTEGEES Paix - Travail - Patrie 2 7 MAI1999 Yaoundd, le-

NJ 3 9 o : !WMINEF/DFAP

LE MINISTREDE LEN VIRONNEMENT ET DES FoRErs

A Monsieurle Directsur G6ndralde la Objet: Projet PipelineTchad/Cameroun CAMEROONOIL TRANSPoRTATiONComPANY Mise en wuvredu Programme (COTCO) d'Am6liorations Environnementales BP 3738 DOUALA-CAMEROUN (classementdes sites de Campo Ma 'an et Mbam Djetern).

Monsieur Is Directeur General,

J'ai I'honneur de vous informer qu'en vue de la mise en cuvre du Programme citd en objet lid a la realisation du Projet Pipeline Tchad/Cameroun,et 3 la suite de la mise en d6fens des sites de Campo Ma'an et de Mbam Djerem per D6cisions respectivesn°s 372lD/MlNEF/DAJ et 373/D/MINEF/DAJdu 12 mars 1999, j'ai demande aux services compktents de mon departement ministdriel ainsi qu'& ceux des autres administrations concem6es, d'entreprendre dans les meilleurs delais la procddure de classementde ces sites en Parcs Nationaux.

Cette procedure de classement sera r6alis6e conform6ment a la Loi n° 94/01 du 20 Janvier 1994 portant rigime des forkts, de la faune et de la peche, ainsi qu'A I'un de ses ddcrets d'application, h savoir le decret no 951466/PM du 20 Juillet 1995 fixant les modalites d'application du r6gime de la faune.

A l'issue de cette procedure, la documentation n6cessairea la prise des d6crets de classement de ces deux sites en Parcs Nationaux sera transmise 3 Monsieurle Premier Ministre, Chef du Gouvernement pour sanction dans les meilleurs delais.

Je vous prie de croire, Monsieur le Directeur G6n6ral,a ['assurance de ma consid6ration distinguee.

LE E DE L'ENVIRONNEMENTET DES FORETS,

Ampliations: A

- SGIPR i /t * ' SG/PM L - MINAT - MINAGRI Trhe WNrsr / - MINUH - ADG/SNH AAlinntx2A I 0A4H - Banque Mondiale (Attn. Mme Cynthia COOK) Fax n (202J( 473 8185 APPENDIX E

FRAMEWORK AGREEMENTS KEY FEATURES APPENDIXE

FrameworkAgreements Key Features

* A FrameworkAgreement will be entered into betweenthe Republicof Cameroon(MINEF) and each ImplementationOrganization selected for the implementationof the Management Plans in the Mbam-Djeremand the Campo NationalParks.

* ImplementationOrganization will be selectedafter a public and transparentprocess open to organizationswith a proventrack record in environmentalprotection and biologicaldiversity conservation. This process will be undertaken by the Management Board of the EnvironmentalFoundation.

* The FrameworkAgreement will preciselydefine the boundariesof the NationalPark; these boundariesshall not be altered or any portionof the National Park alienated,except by the appropriate competent authority consistentwith the applicable laws and regulations and respectinga consultationprocess inclusive of all relevantstakeholders and National Parks dwellers.

* ImplementingOrganizations will developthe managementplan after a consultationprocess inclusiveof all relevantstakeholders and NationalPark dwellers.

- Implementing Organizationswill aim at the propagation, protection, conservation and management of vegetation and wildlife, as well as the protection of sites, landscapes, geologicalformations of particularcultural, social, scientific or aestheticvalue for Cameroon.

- ImplementingOrganizations will work with dwellerswithin the NationalPark for scientificand managementof the environmentpurposes in the frameworkof the managementplan.

* Implementing Organizations will monitor the implementation of applicable laws and regulations,including those related to the prohibitionof the killing, hunting, and capture of animals, andthe destructionor collectionof plants.

* ImplementingOrganizations will coordinate its activities with MINEF representatives(at NationalParks level) in chargeof the implementationof applicablelaws and regulations.

* For the Mbam-Djerem and Campo National Parks, all the activities of Implementation Organizationswill be tax-exemptedfor all their revenuesfrom all sourcesof funding.

* The Republic of Cameroon(MINEF) will ensure the integrity of the Mbam-Djeremand the Campo NationalParks, by allocatingappropriate staff and resources. THIS PAGE INTENTIONALLYLEFT BLANK ENVIRONMENTALMANAGEMENT PLAN VOLUME4 PART III

INDIGENOUSPEOPLES PLAN

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3.2.1 PotentialOrganizations And IndividualsContacted ...... 3-10 3.2.2 Bakola PygmySettlements Consulted ...... 3-11 3.2.3 ConsultationResults ...... 3-11 3.2.4 CoordinationWith Local CommunityContact's (LCCs) ...... 3-15 3.2.5 ImplementationSchedule ...... 3-15

4.0 BASELINE INFORMATION ...... 4-1 4.1 PROJECTAREA ANDAFFECTED POPULATIONS ...... 4-1 4.2 RELATIONSBETWEEN BANTU POPULATIONS AND BAKOLAPYGMIES .. 4-2 4.3 ECONOMICS...... 4-3 4.4 HEALTH...... 4-4 4.5 HOUSING...... 4-4 4.6 EDUCATION...... 4-4 4.7 SACREDSITES ...... 4-4 4.8 POLITICALAND SOCIALORGANIZATION ...... 4-5 4.9 LANDOWNERSHIP ...... 4-5 4.10 LEGALAND INSTITUTIONALFRAMEWORK ...... 4-5

5.0 POTENTIAL PROGRAMS ...... 5-1 5.1 TYPESOF PROGRAMS...... 5-1 5.2 SPECIFICSOCIOCULTURAL CONSTRAINTS OF AND NEEDSOF BAKOLAPYGMIES ...... 5-2 5.2.1 SocioculturalConstraints ...... 5-2 5.2.2 Specific Needs...... 5-2 5.2.3 ExistingVulnerabilities ...... 5-3 5.2.4 Implementationand Impacton Changesin Way of Life...... 5-3 5.3 MEDICALPROGRAMS ...... 5-4 5.3.1 TuberculosisControl Program...... 5-4 5.3.2 Training In CommunityHealth Care ...... 5-5 5.3.3 Opening Of Small Local Pharmacies...... 5-5 5.3.4 Water Supply...... 5-6 5.4 CHILDREN'SAND ADULT EDUCATION ...... 5-7 5.4.1 Children'sEducation ...... 5-8 5.4.2 Adult Education...... 5-8

May1999 ii IPPfinaleng 05-04.doc INDIGENOUSPEOPLES PLAN ENVIRONMENTALMANAGEMENT PLAN CHADEXPORT PROJECT CAMEROONPORTION - VOLUME4

5.4.3 Place Of The BakolaPygmies In The CameroonianSociety ...... 5-8 5.5 AGRICULTURE...... 5-9 5.6 CONCLUSION...... 5-10

6.0 FINANCIAL NEEDS OF THE IPP ...... 6-1 6.1 TYPES OF PROGRAMS ...... 6-1 6.2 ESTIMATEDCOSTS ...... 6-2 6.2.1 Health Care...... 6-2 6.2.2 Education...... 6-2 6.2.3 Agriculture...... 6-3 6.3 EXPECTED CONSEQUENCES ...... 6-3

7.0 BIBLIOGRAPHICAL REFERENCES ...... 7-1

Table 1: Exampleof Timelinefor PossibleExpenditures

Figure 1: Locationof Chad Export Project Figure2: Locationof PygmyGroups in SouthernCameroon Figure3: Location Pygmy Settlementsand HuntingAreas in the Lolodorf - - Kribi Area Figure4: Bakola in Ocean Province

AppendixA: General Provisions Of Cameroonian Legislation Concerning The Rights Of NativePeoples AppendixB: ExcerptsFrom SurveyOf PygmyPopulations

IPPfinaleng 05-04.doc iii May1999 THIS PAGE INTENTIONALLY LEFT BLANK INDIGENOUSPEOPLES PLAN ENVIRONMENTALMANAGEMENT PLAN CHADEXPORT PROJECT CAMEROONPORTION - VOLUME4

1.0 INTRODUCTION

1.1 BACKGROUND

This document presents a proposalfor an IndigenousPeoples Plan (IPP) for the Cameroon Portionof the Chad Export Project. The IPP intendsto:

* Describea processto address concernsthat local Bakola Pygmies (and the Bantus upon whomthe Bakola Pygmieshave a historicalinterdependent relationship, within the Project's area of influencein the Atlantic Littoral Forest),do not suffer adverse effects due to the constructionand operationof the Project;and, * To provide Bakola Pygmies with opportunitiesto attain "culturally compatiblesocial and economicbenefits" (according to World Bankguidelines).

The Chad Export Project has developeda comprehensiveenvironmental and social strategy to ensure that the Project is environmentallyviable and meets Cameroonianlaws and regulations as well as World Bankenvironmental policies and guidelines. In the Republicof Cameroon,the Project involves the installation of 890 km of undergroundpipe and associated facilities to transport crude oil from the Republic of Chad to a floating storage and off-loadingvessel (Figure1).

To minimize and mitigate environmental and socioeconomic impacts, the Environmental Assessment(EA) for the Project (See the "ReferenceDocuments" portion of the Chad Export Project's environmentaldocumentation) includes the following mitigation elements,which are describedin separateattachments to the SummaryEA. Examplesinclude:

* EnvironmentalManagement Plan (EMP) * CompensationPlan (CCP) * InducedAccess ManagementPlan * Oil Spill Response

These four plans addressProject impacts relatedto the biophysicalenvironment, compensation associatedwith land acquisition,and loss of use along the right-of-way. In additionto EA/EMP mitigation measures,this Indigenous Peoples Plan further supports mitigation of potential adverse impactsto the local Bakola Pygmy and Bantu communitieswithin the Project'sarea of influencein the Atlantic Littoral Forest. One goal of this IPP is the provisionof opportunitiesfor advancingthese communities'health, education, agriculture, and generalwelfare.

IPPfinal eng 05-04.doc 1-1 May 1999 INDIGENOUSPEOPLES PLAN ENVIRONMENTALMANAGEMENT PLAN CAMEROONPOR7TON - VOLUME 4 CHADEXPORT PROJECT

This IPP covers Bakola Pygmiesand Bantu villagers in the rural Project area between Kribi and Lolodorf. However,the primaryemphasis of the Plan is to address health,education, and agricultural needs issues specific to an estimated 1,000 Bakola Pygmies living in the area. This is because:

* Of their sensitivityto the ecologicalenvironment and dependenceon forest resources. * Of their limited ability to enter into and participate in many aspects of mainstream Cameroonianlife due to pre-existingsocioeconomic prejudice based on their way-of-life and physical appearance. * They experience higher rates of disease, which when coupled with poor access to health facilities,places them at higher risk that neighboringBantu villagers. * They have limited access to schooling;hence little formal schooling,and little motivation to seek it. * Their agriculturalproduction is poor, in part due to having little limitedtraining in methodsto promoteeven averageyields and long-absencesfrom settlementsto hunt.

In addition, this IPP will address some health issues of Bantu groups living in the vicinity, with whom Bakola Pygmies share economic and social relations. It is estimated that there are about 10,000 Bantu living in the rural Project areas and in general, they have much greater accessto educationand agriculturalimprovement opportunities; hence the emphasison health issues. Health issuesare of particularimportance in the area because:

- Lack of safe water supplies, limited sanitation training, and endemic diseasesof the area have created strong demandfor health care. * Control of diseasesmust be madeon a regional basis.

1.2 THE IPP AS PART OF THE ENVIRONMENTALMANAGEMENT PROCESS

The IPP is considered an integral part of the Project's overall environmentalmanagement process. As listed in Section2.2 of this Plan, Bakola Pygmyconsultation has been ongoing in the Project area since late 1997. Duringthe Project'sCenterline Survey (CLS)to establish the location of the pipeline easement, over 40 Pygmy settlementswere visited. Compensation was also discussedand issues relatedto compensationof Bakola Pygmiesare describedin an appendix of the Compensation Plan. Specific Republic of Cameroon and COTCO responsibilitiesrelated to potential Project impacts in the region are set forth in the Project's EnvironmentalManagement Plan.

May1999 1-2 IPPfinaleng 05-04.doc INDIGENOUSPEOPLES PLAN ENVIRONMENTALMANAGEMENT PLAN CHAD EXPORTPROJECT CAMEROON PORTION- VOLUME4

The measures described in this Plan are in addition to those described in other EMP documents. They are designed to mitigate any potential long-term indirect construction or operation-related impacts. Overall implementation of the IPP is expected to result in net long- term benefits to Bakola Pygmies in the Project area and the Bantu villagers with whom they are associated.

1.3 LOCATION OF THE BAKOLA IN OCEAN DEPARTMENT

There are three major groups of Pygmies in Cameroon (Baka, Bakola and Medzan). One group, the Bakola Pygmy, is located throughout southwestem Cameroon in an area covering about 12,000 sq. km (Figure 2). According to a census conducted in the mid-1980's, it is estimated there were somewhat less than 4,000 Bakola Pygmies at the time; the population size is probably now close to 4,500. The Project area is near the geographic center of settlements inventoried, and is inhabited by Bakola Pygmy and Bantus from a point just east of Kribi to 10 km north-east of Lolodorf following the Kribi-Bipindi-Lolodorf-Mvengue road.

All Bakola Pygmy settlements visited in 1997-1998 by Groupe d'Etude des Populations Forestieres Equatoriales (GEPFE) in the Project area were permanently occupied, and almost all were already existing 15 to 20 years ago (census in 1982-1984, see Loung, 1987, 1996). Several have been known for over 30 years. Many of these villages feature large and old fruit trees (mango, avocado, and breadfruit) which illustrate the long occupation of these settlement sites.

Pipeline routing through any portion of southwestem Cameroon will result in potential impacts to Bakola Pygmy populations. The purpose of this Plan is to mitigate any potential adverse effects and provide assistance to these communities to implement programs to assist in meeting ongoing health, education, and agricultural assistance needs of these communities.

1.4 BAKOLA PYGMIES IN THE PROJECT AREA

Twenty-three Bakola Pygmy settlements of the minority Bakola (Bagyeli) ethnic group are located 2 km or less from the Cameroon Transportation System's easement. In addition, there are an additional 20 settlements whose primary access or egress is the Kribi-Bipindi-Lolodorf- Akongo road. An estimated 1,000 Bakola Pygmies live in these 43 settlements. All would benefit from this IPP. Locations of Bakola Pygmy settlements germane to this IPP are illustrated in Figure 3.

1.5 BAKOLA PYGMIES AS AN INDIGENOUS PEOPLE

The organization and scope of this IPP follows the intent and requirements of World Bank OperationalDirective 4.20 "IndigenousPeoples" (OD 4.20). OD 4.20 recognizesthat no single

IPPfhnaleng O5-04.doc 1-3 May 1999 INDIGENOUSPEOPLES PLAN ENVIRONMENTALMANAGEMENT PLAN CAMEROONPORTION - VOLUME4 CHADEXPORT PROJECT

definition encompasses or describes all indigenous peoples. OD 4.20 indicates that indigenous peoples may be identified by their presence in varying degrees based on characteristicslisted in the following table. The Bakola Pygmies within the Project's area of influencein the Atlantic LittoralForest exhibit most of these characteristics.

WorldBank Characteristic BakolaPygmies A closeattachment to ancestralterritories and to Applicableto BakolaPygmies. the naturalresources in theseareas. Self-identificationand identification by othersas BakolaPygmies view themselves, and are membersof a distinctcultural group. recognizedby others,as a distinctcultural group. An indigenouslanguage, often different from the The Bakolalanguage is closeto the Kuassio nationallanguage. language. Presenceof customarysocial and political Somecustomary social and political institutions institutions. exist. Primarilysubsistence-oriented production. Primarilya subsistence-orientedlifestyle, with agriculturegaining in importance.

In addition, the World Bank is consideringan additional characteristicto identify indigenous peoples which applies well to Bakola Pygmies. The characteristic is "vulnerabilityto being disadvantaged as social groups in the development process" (Wordd Bank Policy on Indigenous Peoples, Approach Paper for Revision of OD 4.20. (July 14, 1998).

This IPP also considers the interactionswith Bantu communitieswithin the applicable Project area. The Bakola and Bantusay they migratedtogether into the Atlantic Littoral Forestarea in the 18th or 19th century, and they maintaina close associationtoday. In this area the Bakola and the Kuassio (Ngumbaand Mabea Bantu group) farmers speak closely related mutually comprehensiblelanguages.

Accordingto World Bank recommendations,specific actionstowards agricultureand education will be proposed, if they wish, to Bakola Pygmies, because, compared to Bantus, Pygmies usually have poor access to servicesin these sectors. Conceming health aspects, it is clear that the IPP will encompassboth BakolaPygmy and related Bantu communities.

1.6 PROJECTDOCUMENTS RELATED TO BAKOLAPYGMIES

The following Chad Export Projectdocuments address issuesrelated to Bakola Pygmies.

Sectionon initial consultationwith The Chad-CameroonPipeline Project Environmental Assessment: BakolaPygmies. Socioeconomicand CulturalIssues. Institutefor Development Anthropology, Binghamton, New York (1996).

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Reporton late 1996-1997survey Surveyof PygmyPopulations. Groupe d'Etude des Populations efforts to identify settlements. Forestieres Equatoriales, Paris (June 1997).

Summary of socioeconomic Environmental Assessment, Chad Export Project: Cameroon impacts,including Bakola Portion,Dames & Moore,for COTCO/EssoPipeline Company, Inc. Pygmies. (October 1997).

Specific Project actions to Chad Export Project, Environmental Management Plan, Cameroon minimize/manage socioeconomic Portion. Exxon Production Research Company, Houston (February impacts, including Bakola 1998). Pygmies. Summary of consultation efforts in Pygmy Survey November 1997 - February 1998. Groupe d'Etude over 40 villages in 1997 and 1998. des Populations Forestieres Equatoriales, Paris (March 1998). Summary of work-to-date and Draft Report on Bakola Pygmy Populations in the Vicinity of the rerouting efforts around Bakola Chad-Cameroon Pipeline Project. Exxon Production Research Pygmy villages. Company (May 1998). Describes compensation process. Cameroon Compensation Plan, Chad Export Project. COTCO/Esso Appendix C discusses in-kind Pipeline Company (June 1998). compensation to Bakola Pygmies.

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2.0 CONSULTATIONAND EVALUATIONOF IMPACTS

2.1 1997 STUDY

A number of potential short- and long-term impacts were identified in a report entitled Survey of Pygmy Population,Lolodorf to Kribi Area, Republicof Cameroonby GEPFE (Koppert et al., June 1997). Section IV of this report, entitled "Potential Impacts of the Project" and Section V "Recommendations," is reproduced as part of this IPP as Appendix B.

2.1.1 PotentialShort-Term Impacts

Several short-term impacts on Bakola Pygmies that are potentially associated with the Project were identified:

* Short-term impacts include the potential for disturbing wildlife for a 30- to 60- day period resulting in temporary reduction of hunting catches.

. The presence of numerous construction workers for periods of weeks or months will noticeably increase the local population, with the following potential effects:

- Increase in hunting pressures.

- Impacts on Bakola supply of starchy food if prices rose due to construction workers buying cassava.

- Exposure to disease vectors from outside workers.

Proposed mitigation measures for these potential short-term impacts include:

* Providing food to non-local workers,

* Prohibition of hunting and fishing by non-local workers, and

* Monitoring health effects.

2.1.2 Potential Long-Term Effects

Potential long-term effects on Bakola Pygmies that are potentially associated with the Project include:

* Potential for Bakola Pygmy settlements to move because of the Project.

* If permanent employment occurred, the influx of workers could unbalance long-term wild species survival, including some species that are officially protected. At present, animal

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resources in the area do not renew sufficientlyfast to copewith the nutritionalneeds of the larger populationcenters in the area. Temporarymodifications in the trade and exchangesystem between Bakola Pygmiesand Bantu villagers.

2.2 CONSULTATIONAND PIPELINEREROUTING, 1997-1998

2.2.1 Scope Of Program

During late 1997 and early 1998, GEPFE conducted an extensiveconsultation program with the Bakola people in associationwith the CLS for the CameroonTransportation System's easement. Joining the team was ProfessorJean-Felix Loung, a Camerooniansociologist and respected member of the local community. The consultation effort was conducted from November 1997 through February1998. The results of this work are reported in detail in the report entitled Draft Report, Notes SummarizingConsultations with Bakola Pygmy Settlements in the Vicinity of the Chad-CameroonPipeline Project Coridor (Koppert et al., 1998). This report can be found in the "Supporting Documents" portion of the Chad Export Project's environmentaldocumentation.

In addition to local village/settlementleaders, others, such as representativesof CoDeBaBik (the Bakola Pygmy Development Committee), were consulted conceming pipeline route location options that were being considered. In particular, advice regarding the proposed changeswas soughtfrom the "Petites Soeursde Jesus" (LittleSisters of Jesus),who belong to the Catholic mission in Bipindi. They have been involved in Bakola Pygmy community developmentfor the last 50 years.

2.2.2 Initial VisitsTo The Bakola Pygmy Settlements

Of the 73 Bakola Pygmy settlementsidentified in the Project region, many were located more than 3000 m from the proposedpipeline route. During the CLS, the decision was made to consult with every Bakola Pygmy settlement identified by GEPFE in early 1997 that was located within roughly 3 km of the proposed route; 23 of the 561 settlementsidentified by GEPFEwere scheduledfor additionalconsultation.

After the CLS began, locations of another 17 settlements were reported to COTCO and GEPFE teams. Since these 17 settlementshad never been visited since Pr. Loung's census of 1982-84, the decisionwas made to visit each of them regardlessof their proximity to the

1 The GEPFE report states 52 settlements were identified. The correct number is 56.

May 1999 2-2 IPPfinai eng 05-04.doc INDIGENOUSPEOPLES PLAN ENVIRONMENTAL MANAGEMENT PLAN CHADEXPORT PROJECT CAMEROONPORTION - VOLUME4 proposed pipeline route. A summary of the consultation efforts at these 40 settlements (23 original settlements < 3000 m from the pipeline and the 17 newly reported settlements) can be found in Draft Report on Bakola Pygmy Populations in the Vicinity of the Chad-Cameroon Pipeline Project Exxon Production Research Company (May 1998). Thus, in all, 40 settlements in the general vicinity of the proposed pipeline route were visited at least once during the consultation effort.

Before visiting a Bakola Pygmy settlement, the consultation team met with the chief of the Bantu village associated with the Bakola Pygmy settlement as a courtesy and in recognition of the special relationship between the Bakola Pygmies and the Bantu villagers. In addition to alerting the Bantu villagers to the team's presence and intentions, these meetings permitted the team to give an additional explanation of the Project to the Bantu chiefs, some of whom had not attended the Public Information Program (PIP) meetings that were part of the Project's public consultation program.

In keeping with local cultural traditions, on the first visit, the team left soap, salt, sweets and other gifts. On subsequent visits, usually no special gifts were distributed.

2.2.3 Topics Discussed And Input Solicited

During each visit to a Bakola Pygmy settlement, a number of topics were discussed. These included a general explanation of the Project as well as discussions conceming potential impacts of the project, routing issues, and compensation issues. Two local guides, including one Bakola Pygmy from the Log Ndiga settlement and one Ngumba from Bidjouka village, usually accompanied the team to ensure that the information was communicated effectively with the local peoples. The latter guide, a former assistant of an anthropologist, was able to provide instant translation of the discussions between French and the local languages and vice versa.

The explanation of the Pipeline project was provided in detail to the Bakola leaders, using information leaflets with photos and drawings. Often, a drawing on the soil was made, in order to clearly explain the different stages.

* During the visits, issues of concern to the Bakola Pygmies and the Bantu villagers were discussed. Their main worry was not to be resettled and that graves would not be moved. They were reassured that all important and irreplaceable sites (such as villages, houses, graves, and sacred sites) would be avoided and spared, and that sufficient compensation would be paid to replace useful plants and crops and start new fields.

* In most, though not all, Bakola Pygmy settlements the population was very interested in the work opportunities. During the discussion about the pipeline they were shown how the

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pipelinewould be constructed,the trench dug, the pipe laid, and how it would be welded and buried 75 cm belowthe ground in order to preventleaking and to assure the safety of the population. The consultationteam explainedthe Project's need to keep 15 m free from high vegetationin orderto surveythe pipelineon foot and by helicopter. * The influence of the Pipeline constructionon the hunting activitieswas discussed at each settlement. The Bakola Pygmieshave a long experiencewith the logging companieswho have been in the area for a very long time. In fact, most of the Bakola Pygmy settlements in the forest are built near logging roads, but these roads are usually overgrown a few years after the logging activity ceases. In general, the Bakola Pygmiesindicated during consultationmeetings that they thoughtthe damageto wildlife would be temporaryand that gamewould return after the constructionphase. With regard to routing issues, the team indicatedthat, where possible, the Pipeline would be sited to avoid Bakola Pygmy settlementsby approximately500 m and that efforts would be made to avoid other resources important to them. The team requested information about hunting areas, graves, sacred trees and other sacred sites so that the location of these resourcescould be consideredif routingchanges were required.

2.2.4 ConsultationConceming Compensation

The Bakola and Bantu villagers will receive compensationfor lost land or crops at the same standard rates as all other Cameroonian citizens, as described in the Cameroon Compensation Plan, Chad Export Project (COTCO/Esso Pipeline Company, 1998).

In addition, special compensationprovisions are suggestedto meet the special needs and concemsof the Bakola Pygmies,as describedin AppendixC to the CompensationPlan.

With regard to compensation,the team explainedthat:

* Compensationwould be paid for damages done to improvementsand other replaceable items, includingcrops/fields and importantmedicinal and fruit trees, and * That compensationcould be receivedeither as cash and/or in-kind.

During this consultationthe Bakola Pygmiesexpressed a preferencefor in-kind compensation instead of cash. Sincethere are no banks in the area, moneycan be stolen, and local leaders indicatedthat money tends to be spent on non-essentialitems such as alcoholic beverages. To the extent practical, Bakola Pygmieswill be paid in-kind such as with building material (corrugatediron sheets for the roofs), machetes,and lamps.

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In addition to this IPP, benefits the Bakola Pygmies can obtain through the compensation process, are:

1. Individual compensation: but this was limited due to the fact that the pipeline routing avoided Pygmy settlements.

2. Regional compensation: It provides for Pygmies, as well as Bantus, hence it is not a Pygmy specific compensation.

During the pipeline construction phase, it is important to proceed with recruitment of Pygmies from each settlement, which would provide them substantial benefits. Consideration can be given for payment of wages in cash and/or in kind, such as building materials. This would help address the Pygmies' interest in housing improvements.

2.2.5 Consultations With Settlements Nearer To Pipeline And Rerouting

As per GEPFE recommendations made in 1997, the Project was considered to have negligible effects on settlements greater than 2000 m or more from the route of the pipeline. As a result, the majority of consultation efforts focused on 23 of the 73 settlements which were located less than 2000 m from the pipeline. GEPFE further stated that impacts would be limited to the construction and immediate post-construction period if the pipeline was between 500 and 2000 m of the pipeline (15 settlements) and that the Project must avoid coming any closer than 500 m to a permanent Bakola Pygmy settlement (9 settlements). The only exception being the case of Bakola Pygmies living in Bantu villages or next to a main road. In the latter case, GEPFE considered Bakola Pygmies as living in disturbed environments (See Koppert et al., 1997).

Bakola Pygmy settlements within 2000 m (23 total settlements) from the centerline were visited multiple times, typically before, during, and after the passage of the CLS. These settlements lying closest to the pipeline route received considerably more attention than those more than 2000 m distant. For example, each settlement within 500 m was visited at least five times and as many as eight times.

Changes to the pipeline routing were ultimately made at 8 of the 13 settlements located less than 1000 m from the pipeline. Building on criteria established by GEPFE, the 13 Bakola Pygmy settlements could be divided into two broad classes: those for which no rerouting was needed (5) and those for which rerouting needed to be considered (8).

Following consultation, it was assessed that rerouting would not be necessary around five settlements because the settlements were:

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* Separatedfrom the pipelineby a major road or major natural barrier,such as a river or hills (Kour Mintoum,Bokoui, and Log Ndiga),or * Located on the main roadand within a Bantu village(Nkoul Mbong and Mougo Liang).

Changeswere made in eight cases. In five of the eight cases, the Bakola Pygmy settlements were located within 500 m of the Kribi-Lolodorf road and could already be considered "roadsidesettlements." However,like all other villages,efforts were made to move the pipeline away from houses, and this was accomplished. In the remainingthree of the eight cases, the pipeline was moved closer to the road and was located 500 m or more from the settlement. For additional informationsee the report entitledDraft, Report on Bakola Pygmy Populationsin the Vicinity of the Chad-CameroonPipeline Project (Exxon Production Research Company, 1998).

2.2.6 Bakola PygmyInteractions With CLS Personnel

Interactionsbetween BakolaPygmies and the CLS staff included:

* Employmentas bush cutters. * Paymentof compensationfor CLS damages. * Preparationand reviewof individualinventory forms for compensableresources. * Consultationduring pipelinerouting

The primary interaction betweenCLS staff and Bakola Pygmieswas during their employment as bush cutters. During initial consultationit had been agreed that two bush cuttingjobs would be reserved for Pygmies. Initial employmentefforts were problematicand on two occasions, Bakolaemployed to work on the project abandonedthe project. This has been attributedto an incomplete understandingof the physical effort required of bush cutters, as well as uneasy relations with the other local populations. After the initial difficulties were resolved, Bakola Pygmiesfrom other settlementswere able to effectively participatein the Project in the Kribi- Bipindiarea.

During the CLS, Bakola Pygmieswere also asked to check the area cleared for the CLS for damages. In several cases compensationadjustment were necessary. One example being a case where a compensationwas paid only to a Bantu village chief, instead of both the Bantu and Bakola Pygmies, for spontaneously growing Raffia Palms used by both. In addition, contactswere madewith eachland user during preparationof the IndividualInventory forms.

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3.0 IPP ORGANIZATION

The next sections describe the proposedorganization to successfullyimplement the IPP, the baseline conditionswithin the Project's area of influence in the Atlantic Littoral Forest, the programsto be implemented,and the estimatedcost and financing mechanismnecessary to fund the IPP effectively.

In order to support effectivenessof the IPP programs on site, it is important to involve the existing governmentinfrastructures specialized in the fields addressedby IPP, and to support their actions. The reinforcementof capacity building, at the central and local level, will be supportedby the World Bank Group.

3.1 IPP PROGRAMSAND PROJECTS

3.1.1 Objectives

The Project'sprimary potential impactsregarding Bakola Pygmiesare related to an increased exposure of the local communitiesto outsiders. Impacts may include added health risks, changes in social/politicalinstitutions or lifestyle, and in general,the potential for unfavorable interactionswith the outsiders. This IPP has establishedthe followingspecific strategies:

- Assist identified Pygmy and associated Bakola communitiesregarding health matters in order to help them counter potential health pressurescaused by the Project and generally promotetheir health status. * Promote and support educationand training initiativesin identifiedPygmy communitiesin order to contribute to an increase in their ability to make informed decisions regarding issues of their interest. * Support local initiativesin identifiedPygmy communities to improveagricultural production.

3.1.2 General Principles

An EnvironmentalFoundation will be establishedto providedefined long-termfinancial support for defined IPP - related projects/programs.COTCO will contribute$US 600,000 (360 million FCFA)2 to the EnvironmentalFoundation in support of IPP-related activities. A complete discussionof the EnvironmentalFoundation and COTCO'srelationship with it can be found in Volume 4, Part I of this EMP.

2For the purposesof this document,it is assumedthat $US 1.00 = 600FCFA.

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The Foundationwill enter into servicescontract with a Community Development Facilitator (CDF) in order to facilitate IPP-related activities during Years 1-3 of the Foundation's existence; thereafter, Pygmy communitiesand/or organizations are anticipated to have the capacity to deal directly with the Foundationeither independentlyor through an intermediary organizationor other entity.

Every year, through a process of local participation,potential projects will be identified and funding proposalswill be submittedto the EnvironmentalFoundation for consideration. The Foundation's ManagementBoard will select individual projects for funding. The number of projects that will be funded in any given year is dependent on the funds that the Foundation has availablefor IPP-relatedactivities.

The final design of the IPP has taken into considerationtwo significantissues:

* Identification of community organizationsto promote intra- and inter-village consensus between Bakola Pygmy settlementsand Bantuvillagers across villages and settlementsin the IPP area concemingprograms of benefitto all.

* The need to identify well-qualified NGO's or organizations,capable to reach all affected communitiesin the IPP area, and to developand implementprojects.

In the following sections, examplesof potential IPP programs that could be implementedare described. These examples are based on ideas presented or perceived during GEPFE's consultationin Bakola Pygmy settlementsand on knowledgegained during the CLS.

3.1.3 Definitionof a Baseline

Since there is a wide range of variabilityin the needs of particular Bakola Pygmy settlements; and the purpose of the IPP is to target specific settlement needs; program emphases may change. For example, access to elementarylevel education is already available in several villages; others have little access. Some settlementshave a sophisticatedagricultural system, other settlementsdo not.

Compilation of basic demographic information in the IPP Project area is considered an important step in assessing the potential importanceand scope of programs proposed for funding. A census of Pygmy settlementsand their populationwould provide informationon the location and names of settlements, number of individuals, ages, and date-of-birth. On the basis of this information,the numberof individualsto be immunizedand childrento be taught can be accurately estimated. Another important benefit of this census would be to gather population information necessary for participation in govemment programs, and identify a

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Accordingto GEPFE surveysand other sources,a rough estimateof 1,000 Bakola and 10,000 rural Bantu people live in the IPP projectarea, more than half under 18. The Bantu population living in Project area towns like Kribi, Bipindi or Lolodorf are not included in this estimate,first becausethey live in far better conditionsin terms of accessto health and school servicesthan the rural population, and second, because they are not directly involved in contacts with Pygmies. As currently envisioned, the proposed program would target rural Bakola Pygmy settlementsbetween Kribi and Lolodorf.

Basicdemographic data on associatedrural Bantu settlementseligible to participatein the IPP has not yet been collected, but will be collected following final Project approval. The last census of these villageswas completedin and needs to be updated.

An initial survey, which could be conducted by qualified personnel from the Ministery of Scientific Research(MINREST) or from the university,will collect before the beginning of the IPP implementation, all the socio-economic data that could be influenced by the IPP development, among Bakola as well as Bantu communities. Based on an appropriate sampling, a case-control study will allow to evaluate the effects of the IPP in concerned villages and settlements,as comparedto those which are not involvedin the Plan. This would be part of the World Bank Group capacitybuilding programs.

Given the number of communitiesinvolved, it is inevitable that implementationof the IPP will have an economicand social influenceon populationsin the Projectarea over the its 25 - 30- year lifespan. Expansionof elementary-levelschooling by providing scholarshipsto children will result in a better educated adult population. If itinerant teachers are proposed, it will facilitate interactionswith outsiders and assist communitiesin negotiating with development interests. Simple improvementsin water supply and making basic medicationsavailable will reduce disease. As a result, the IPP can be viewed as benefitingall of the communitiesin the region.

3.1.4 IPP Programs

The IPP includes three programs: health, education, and agriculture and are described in Section 5.0. Within each, an initial set of potential projects has been identified as a result of studiesand consultationsponsored by the Project.

Potentialprojects were proposedby GEPFEand based on:

* Observationsand discussionsmade with Bakola Pygmiesduring 1997-1998,

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• Bakola Pygmy needs expressed by the Catholic Nuns in Bipindi (now located in Kribi) during discussions, * Discussionswith the Bakola Pygmy NGOCoDeBaBik, * Knowledgeof NGO programsin the area, * Knowledgeof recent health and educationprograms in the area, as well as, * Knowledgeof existing health risks.

No specific program came up duringthese discussions,but global issues raised concernedthe water supply, educationand health.

It is stressed that these are only ideas for potential projectsand that it is up to the concerned populations, Bakola and Bantu, to decide which of the projects is relevant to them or to propose others that concem them more than the ones proposed here through informed participation. The scope of potentialprograms will be further defined in consultationmeetings to be implementedas part of this IPP.

3.1.5 Project Funding

Guidelines for preparing and submitting project funding proposalswill be developed by the EnvironmentalFoundation and distributedto interested NGOs,to identified Bakola Pygmy and Bantu communitiesand to NGOscurrently working with these communitieswithin the IPP area. Proposals will be submitted at least annually to the EnvironmentalFoundation for funding consideration. Project proposals may be developed and submitted to the Foundation for considerationin the following ways:

* Throughthe CommunityDevelopment Facilitator (CDF), during the initial period. * Directly from Bakola Pygmy and Bantu communitieswho may organize themselves and executespecific projectsof their interest. * NGO'sworking in the communities.

The planningwould be as follows:

* 1st year: Full-timejob with participationof communityrepresentatives and beginningof the trainingfor communitymembers who shall take over the duty. * 2nd year: Part-time (about 60%) job. The Facilitatorplays the role of animationand leaves certain executionactions to the responsibilityof communitymembers.

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* 3rd year: Local representatives are more involved and insure the monitoring of programs decided with the Facilitator. The latters role will be to create favorable conditions for the take-over at year end.

Progress will be monitored by the Environmental Foundation as discussed in Volume 4, Part I of this EMP. At the end of the 3rd year, an evaluation will be made by the Foundation, in order to determine if a facilitator should be kept for a longer period.

Project proposals to the Foundation will follow a simple format to allow maximum participation by affected communities.

3.1.6 IPP Proposal Ranking

Submitted proposals will be prioritized and ranked by the Environmental Foundation's Management Board based on a series of pre-established criteria. The highest priority projects will be funded up to the year's funding limit. Additional funds can be sought from other sources (at the initiative of the local community) to supplement monies received from the Foundation. Special attention will be devoted to the objectives of the funded programs, to ensure they fit into the perspective of the general objectives of the IPP.

Grantees will be asked to:

* Sign a simple project funding contract with the Foundation in order to receive the money necessary to begin the project.

* Submit a project completion report.

3.1.7 IPP Reporting

Simple but precise reporting to the Foundation's Management Board will be required for each project at its completion. The recipient of the funds, be it a local community or an organization, will have to prepare and submit a brief report to the Environmental Foundation at the end of the project. This includes:

* A brief description of the project's goals and activities,

* A description of how the funds were spent, and

* An assessment of whether the project achieved its goals.

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HYPOTHETICAL EXAMPLE OF A PROJECT COMPLETION FORM ProjectTitle/Goal: PREPAREAND DELIVERA TRAININGCLASS ON SIMPLEHYGIENIC PRACTICESTO BAKOLAPYGMIES ProposedProject Cost: $US10,000 Fundingprovided by the EnvironmentalFoundation: $US 8,000(additional funding of $2,000by an NGO) Actual ProjectCost: $US9,500 ProiectObiectives ProiectAccomplishments Prepare400 brochures Prepared350 brochures Conductclass sessionsin 30 settlements Reached32 settlements Reach300 adult Bakola Reached304 adult Bakola Comments:Preliminary assessment of the numberof adults in the targetedcommunities suggested that fewer brochureswere required. Producedsufficient materialsfor all participants. Local collaborationfor mobilization helpedreduce costs. Classwas well receivedby the participants(see attachedcomments and list of participantsby settlement).

The project completionreport should be concise and should not represent a burden for the recipient, especiallyif the beneficiaryis a communityor group of communitiesrepresented by an NGO with limited resources. A project completionform may be provided to facilitate the reporting process. The Board of the Foundation may request more detailed information regardingthe projectsit funds, if it so desires.

3.1.8 IPP Project Report Review, Evaluation, And Verification

IPP reportswill be reviewedon an annualbasis by the:

* ManagementBoard of the EnvironmentalFoundation in orderto determineif IPP goals are being achieved,or * The Board may choose to seek advice from another group or set up a group to provide advice.

Such reviews will include all project completionreports and will evaluate whether the projects have met their intendedgoals. While the IPP will be executed under the general assumption that fund recipients will manage the funds and perform the projects in an appropriate and ethical manner, safeguardswill be put in place. Dependingupon project size, complexity,or participants, appropriate safeguards will be included as conditions in the project funding agreement,and will typicallyinclude the following:

* Projects of long duration (i.e., greater than one year) or with high budgets (greater than $US 10,000) can only receive funding in installments,with the subsequent installments releaseconditioned on meeting partial projectgoals or milestones.

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* Beneficiaries who mismanage project funds or that otherwise do not comply with the project funding agreement may not be eligible for further funding for a predetermined number of years. * At the discretion of the Board, a Board member or their designated representativemay make inspectionvisits to verify a specificproject's activities.

Finally,the ManagementBoard will prepare a brief evaluationof the year's activities,to which all project completionreports will be attached. A copy of this report will be provided to the World Bank Group.

3.1.9 IPP Project Monitoring

It is anticipated that the Board will monitor overall program implementation by gathering informationfrom time-to-timeconcerning:

* Numbers of Bakola Pygmy and other communities participating/benefitingfrom Plan programs, * Programsthat have resulted in improvementsin health, education,or agriculture, Peoples use of information leamed during community education programs and use of communityimprovements, Changes in key indicators such as diet, use of bush meat, contribution of agricultural productsto the diet.

During the first three years of the Foundation's existence, this monitoring will be the responsibilityof the CDF who will prepare an annual report and make recommendationsfor considerationat Board meetings. If warranted, the CDF may make recommendationson a more frequentbasis, especiallyduring the first year of the Foundation'sexistence.

Though 23 Pygmy settlements have been identified in the vicinity of the easement of the CameroonTransportation System, this figure may change in the future because of the intrinsic mobility of Bakola, and because the IPP or the construction work could be a lead to settlementseither movingcloser to or farther from the constructionarea.

GEPFE considersit probablethat settlementspresently located deeper in the forest may move closerto the constructionarea.

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3.1.10 Definition of Key Indicators

Depending upon the nature of funded projects, a number of key indicators may be selected by the Environmental Foundation's Management Board to monitor their success. These indicators may include:

Health Indicators

* Incidence of diseases,

* Vaccination coverage,

* Growth (stature, weight) of children,

* Use of dispensaries, and

* Volume of drugs delivered.

Economic Indicators

* Agriculture yields,

* Percentage of households self sufficient for agriculture

* Variety and number of improved crops used and/or brought to market,

* Income associated with introduction of new and/or improved crops,

* Use of and availability of bush meat, and

* Consumption of manufactured goods or alcohol.

Social Indicators

* Number of Pygmy children going to school, * Adult literacy rates,

* Improvements in housing, and

* Percentage of Bakola having identification documents or paying taxes.

These indicators may be collected by researchers, students, or consultants, as requested by the Board.

3.2 LOCAL INFORMEDPARTICIPATION

Consultation for the IPP will take into account:

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* The numberof Bakola Pygmysettlements (23) involved, * Bakola Pygmy non-hierarchicalpolitical structure, * The difficultyof scopingprojects that can be carried out by local NGOs,and * The strong relationshipbetween Bakola Pygmiesand Bantuswhen definingprograms.

Key elements of the participationprogram prior to preparationof the final plan included:

* Identifying NGO's interested in assisting and currently working with local communitiesto develop proposals. * Informal and formal contacts with selected organizations working on community developmentin Cameroonand with Bakola Pygmies. * Visits to the 23 individualBakola Pygmiessettlements and discussionswith the locals on the proposals. * Consultationmeeting in Kribi with BakolaPygmies, Bantu representatives,and NGOs. * Definingand prioritizingprograms. * Consultationwith Bakola Pygmy NGOs about the potential programs, revision of text to includenew programsproposed or modifications/clarificationsto those proposed.

The consultation process involved the Bakola Pygmy NGOs, and other NGOs involved in Pygmies'development, which, with their experience in dealing with potential programs could help with comments and ideas. Visits were then made to each of the 23 Bakola Pygmy settlementswithin 2 km from the pipelineto explain the purpose and objective of the IPP, ask opinions and ideas, and invite participantsto a general meeting in Kribi. This preparatory processtook four weeksto complete.

After completionof this phase of the consultation,a general consultationmeeting was held in Kribi in April 1999. Representativesof the 23 villages,and Bantus(see list below)were invited and included Bakola Pygmy NGOs and other interested Bakola Pygmies,Bantu villagers and local administrtion and technical services. The purpose of the meeting was to increase transparency,summarize inputs received,and solicit suggestions,and proposalsfor additional programs. Minutesof the consultations,and an account of this Kribi meeting,can be found in two separate reports: "DraftReport on the IPP PresentationConducted in the Kribi-Lolodorf Area, March 7 to April 1st 1999" (GEPFE, Paris, April 1999, 37 p.), and "Consultationand SynthesisMeeting IndigenousPeoples Plan, Kribi April, 7 1999" (GEPFE,Paris, April 1999, 12 P).

Followingthe meeting,the IPPwas revised.

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3.2.1 Potential OrganizationsAnd IndividualsContacted

The following organizations,NGOs, and individuals,and others not included in this list, have been or are to be contactedconceming the proposedIPP to solicit input:

* CoDeBaBik(Bakola Pygmy NGO) * Subi Baba (Bakola PygmyNGO) * Care Intemational,Cameroun * Agence Frangaisedes Volontairesdu Progres * InstitutPanafricain de Developpement,Douala * INADESYaounde * Centre Pasteurdu Cameroun,Yaounde * PharmaciensSans Frontieres,(Pharmacists Without Borders),France * SAILD/APE

3 Planet Survey * TropenbosFoundation * Foyer Notre Dame de la Foret, Bipindi * Boardingschool of the CatholicMission in Kribi * KTM (NGO of the Eglise ProtestanteAfricaine) * Catholic missionsof Bipindiand Ngovayang * Associationfor the Developmentof Lolodorfand Kribi (ADLB) * Teachersfrom Bakola and Bantu communities * NationalAgricultural Extension Services * IRAD . ADEJEPY

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3.2.2 Bakola Pygmy Settlements Consulted

Two representatives from each settlement were invited to participate in the major meeting in Kribi discussed above.

Estimated Estimated Settlement Population Settlement Population Kundung-Kundung 17 Bitombo 15 Kour Mintoum 22 Maboulo 54 Nkaga 6 Bakossi(Bakola)I 30 Bokoui (Ngumba) Bilolo/FuhGiende 4 Basili 40 Guiango 25 Soungue(Bakola) 13 Schoungou(Ngumba) Nkoulmbong(route) 14 Loundabele6 6 Bidou 28 Namayo 7 BouaraBouara I 11 Yanit 3 Angoua Mvour 20 Bingambili 23 Sum Mimbo 12 Log Ndiga (bord de route) 24 Bandevoun 47 Mougo Liang (bord de route a 25 Nkouambpoer) Ndtouah 39 EstimatedTotal Population 485

3.2.3 Consultation Results

This section is reprinted from the conclusion of the "Draft Report on the IPP Presentation Conducted in the Kribi-Lolodorf Area, March 7 to April 1st 1999" (GEPFE, Paris, April 1999, 37 P.),

The IPP was well received by Bakola Pygmies, Bantu villagers, NGOs, traditional and government authorities, and technical services.

In general, the villagers accepted that Pygmies had specific problems and needs conceming education and agriculture. Villagers understood that Pygmies lagged behind the Bantus in these areas and this justified that these programs only concemed them.

The following synthesis summarizes the main conclusions from the consultation process and does not take into account the amount of funding available or the way these needs comply with the objectives of the IPP.

Bakolas' Comments

The interviews conducted in each Bakola settlement are very consistent. Problems, common to many settlements, that were raised during the interviews include:

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1. Global poverty and the impossibilityof affording school expenses or medical care. This is partly explained by the increasingrarity of game huntingas a cash source.

2. A strong desire to improve agriculture. They need: tools, seeds and regular technical assistance to improve agricultural production.As it becomes more and more difficult to survivefrom a hunting-gatheringeconomy all settlementswish to increasetheir agricultural fields. Many askedfor chain saws to clearthe forest.

3. Improved of agriculture would not only lead to better nutrition, but many insist on its importanceas a sourceof revenue.

4. The need to revitalizethe Strophanthusand other non-timberforest products trade, which used to be an importantsource of income

5. A generaldesire to send childrento school,if possible,far from the parents' settlements,to avoid the temptation of escaping. Either schools with boarding facilities for Pygmies or villageschools (withaccommodations for childrenin villagers'families) are convenient.

6. A pre-schooleducation is considerednecessary to help the childrenadapt to school life.

7. The lack of decent clothing and school suppliesfor Pygmy children makesthem subjectto mockeryfrom other childrenand ashamedto go to school.

8. Bad housing; there is a generalwish to receive a corrugatediron roof.

9. Lack of appropriatemedical care becauseof the distance to health centers, and especially because of the price of treatments. For example, the cost of the first two months of treatmentfor tuberculosisis 40,000 FCFA(later the amount of drugs is decreased,but the treatment has to be conductedover one year). The treatmentof a hemia (which, in case of strangulation,is a medicalemergency, and the causeof death for many people), is 40,000 FCFAfor Pygmies(and more for villagers).

10. Fear of embezzlementand concemabout the qualityof the implementationof the project.

Bantu Villagers' comments

These commentscan be summarizedas follows:

1. The importanceof medicalcare and the need for inexpensiveor free drugs.

2. The importanceof health centersclose to the villages.

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3. The importanceof good roadsto be able to transportpeople in case of illness.

4. Improvement of the water supply, especially through improvement of existing water sourcesand not through the constructionof newwells.

5. Improvementof agriculturalproduction for the Pygmieswould diminishstealing in the fields of villagers,and the many problemsrelated to this.

6. Like the Pygmies, the villagers consider that the lack of decent clothing and school supplies for Pygmy children makes them subject to mockery from other children and ashamedto go to school.

7. Villagers also fear embezzlementand the lack of quality in the implementationof the project.

8. The Bantu take into accounttheir ancestralrelationship with the Pygmies.Most agree with how the IPP tries to improve the living conditionsof the Pygmies,but some still want the Pygmiesto remain in a state of dependency.

Administration's Comments

1. Favorableopinion of the project.

2. The satisfaction to be involved in the conception and the desire to assist in the implementationof the project.

3. The necessity to control the quality of the implementation of the project and fear of embezzlement.

4. The need of the Pygmies to use administrative authorities in case of problems is recognizedand the importanceof resolvingland issues emphasized.

5. There is a desire to extend the IPP to a wider area outside the pipeline zone.

Technical Services' Comments

1. For both health and agriculturalservices, the lack of means (human and material)to reach Pygmies.

2. As the IPP plans to consider global health for Bakola and Bantu villagers in the Kribi- Bipindi-Lolodorfarea, it is importantto support existing health centers instead of creating village pharmacies, except between Bandevouri and Kribi (35 km), where no medical facility exists.

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3. Each center should have at least a petrol refrigeratorand appropriatesmall equipmentfor sterilization,deliveries, and small surgery,and a microscopefor biologicalinvestigations on blood and stools.

4. An electric generator would be very useful, and each center's principal nurse (in Kribi, Bandevouri,Grand-Zambi, Bipindi, and Bidjoukaat least) should receive a motorcycle.

5. A system to deliver medical care to Pygmies at lower prices should be studied. Very expensivedrugs (for tuberculosisand AIDS)should be providedfree for everybody.

6. Some funding should be devoted to epidemiologicalsurveys (AIDS in particular, because medical authorities have no precise idea of the prevalence of the disease among the population).

7. Importance of the involvement of local services in epidemiological studies of national instituteshas been emphasized.

8. It is also very importantthat local health professionalsreceive regulartraining.

Non-Governmental Organizations, Boarding Schools and Missions' Comments

The following points are mentioned:

1. Importanceof financial help to boarding schools, and the difficulty to obtain enough help over a long period.

2. Importanceof adult educationand technicaltraining.

3. The need for boardingschools to generaterevenue through agricultural production.

4. The need to have qualified personnelfor agriculture,health, and education.

5. The difficulties to monitorthe good use of given tools, seeds, and plants for agriculture.

6. The risk of Pygmies becoming marginalized, as on the one hand, forest products disappear, and on the other hand, as difficulties about access to agricultural land remain important.

7. Importanceof a good organizationalstructure of the Pygmysettlements.

8. Fear that the developmentof the Pygmiesis too rapid and will lead to confusion.

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9. Necessity to contact all educated Pygmies in order to have a significant number of Pygmies that can communicate with the outside world.

10. Need for Pygmies to have birth certificates and identity cards.

11. The desire of NGOs to be consulted and involved in the IPP.

3.2.4 Coordination With Local Community Contact's (LCCs)

During the pre-construction and construction phases of the Project, one of the many responsibilities of COTCO's LCCs will be to communicate project-related programs and schedules to communities directly affected by construction activities. Feedback will be solicited conceming interactions with Project personnel and assist in resolving issues. The LCCs will have ongoing dialogue with the Foundation's field personnel as part of their overall responsibilities.

3.2.5 Implementation Schedule

A draft implementation schedule for the Environmental Foundation, that will provide defined financial support for IPP-related activities, can be found in the Environmental Foundation Plan (see Volume 4, Part I of this EMP).

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4.0 BASELINE INFORMATION

4.1 PROJECTAREA AND AFFECTEDPOPULATIONS

Bakola Pygmy settlementsstretch from the southern bank of the Nyong River to the Ntem River which is the border between Cameroonand EquatorialGuinea throughout southwestern Cameroon. To the west settlements can be found from shoreline of the Atlantic Ocean eastwardto, but not crossing 110East.

A census of these settlementswas completedin the 1980s (see Loung 1996:177), however results were not published, with the exception of a map illustrating the general location of settlements(Figure 4). Based on this map it appearsthe majority of settlementsare between the Nyong River and the Kribi - Akom II road.

The IPP Projectarea stretchesfrom Kribi to an area about 10 km west of Lolodorf, about 120 km. This area is near the geographiccenter of the settlementsinventoried by Loung. About 45 percent of the settlementsillustrated by Loungare near the road; 25 percent North and 30 percentSouth.

Bakola Pygmies have been practicing agriculturefor several decades, and live in an area widely open to external influences;their way of life is then closer to that of Bantu farmers than other CameroonianPygmy groups. However,they suffer from marginalisationand therefore get only a small benefitfrom this socialtransformation, and there is no clear indication that this situationwill improve in the next future.

Bakola Pygmiesin the Projectarea live in overcrowdedhousing, and with very poor sanitation conditions,which explainsthe observedoutbreak of tuberculosisamong them. They have a limited access to hospitals and dispensaries,mainly for financial reasons,and their life span appearsto be shorterthan that of other Cameroonians.

At the current time there appears to be little possibility of Bakola Pygmies improving their general standard of living within the Camerooniansociety because of the current economic situation. Adaptation has come largelythrough outside missionaryinfluences.

Some Bakola Pygmies do not welcome change, however, most do. Most Bakola Pygmies contactedby GEPFEwould like to improvetheir life. They are interested in improvingsanitary conditions,have a source of incomeand hence the ability to purchaseconsumer goods. The majority appear to want to have their children educated to be able to benefit from the local economicsituation. However,this is a decisionthe Bakola Pygmiesmake themselves.

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In addition,about 25 Bantu villagesoccur along the pipeline route. These Bantu are of several ethnic originsand include (fromwest to east) the: Batanga,Mabea, Fang, Ngumba,Bassa and Ewondo. Their population can be roughly estimated to be between 10,000 and 15,000 individualsbased on the 1987 census.

4.2 RELATIONSBETWEEN BANTU POPULATIONSAND BAKOLAPYGMIES

In general, Bakola Pygmies live in close association with many ethnic groups throughout Southwest Cameroon. In the Project area, Bakola communitiesare associated often with Bantu farmers, Fang, Ewondo, Bassa, and especially Kuassio,who speak the closest related language to that spoken by Bakola Pygmies. Near Kribi, Bakola groups are associated to some Batanga and mainly with Mabea villages. Some live in associationwith Bassa villages north of Bipindi.

"Are the Pygmies obliged to be subservientto the Bantu villagers or do they have to adopt agriculturethemselves in order to survive" is a socio-politicalimportant question which has been discussedby Bahuchet,et aL. (1991) and Ngima Mawoung(1993). Until recently, each Bakola family was dependent on a Bantu village family through which reciprocal exchanges occurred. Now, traditionalrelationship is often abandoned,but Bakola are still dependent on the Bantu farmers for their supply of starchy food, as well as tools, salt, tobacco, and clothing. But partly and to various degrees the Bakola are still dependent on the Bantu villagers for a part of their energy-rich,carbohydrate foods. Central African Pygmies studied by Cavalli- Sforza have been found to devote up to 20 percent of their time for Bantu villagers (Cavalli- Sforza 1986:424).

Examplesof some of the interrelationshipsinclude:

* Bakola Pygmiesshare the same clan names as the Bantu Kuassio, and the people who belongto the same clan considerthemselves as related,or cousins. * Bakola Pygmiesare often buried near their Bantufamily's compound. * Some Bantu farmers marry Bakola Pygmy women (the reverse, Bakola Pygmy men marrying Bantu women, is very rare but occurrs), which is generating closer mutual exchanges. * Bakola Pygmiesfrequently develop privilegedrelationships with several Bantu families, in different villages. This allows them greater flexibility, in case of resource shortages. If shortagesoccur in one area they can moveto another and obtain food from another Bantu family.

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* Accordingto ProfessorLoung's (at the Institutefor Human Sciences,Yaounde, at the time) surveysconducted in the Kribi-Lolodorfarea in the 1980's, about half of the Bakola could not rely on their own food productionto be self sufficient. They needed to barter game for cassavagrown by the Bantu, who are also hunters. The terms were usually fair to both parties. * Currently,Bakola sell their game to Bantusand buy food with the money when needed.

However,these relationshipsare in the process of change as the impact of the local cash economy shifts this relationship,often to the economicdetriment of the Bakola. For example, some Bantu now employ Bakola Pygmiesas workers on their plantations,paying wages which are not consideredby some as a fair price for their labor.

4.3 ECONOMICS

Bakola Pygmy economicsare varied and based on a combinationof:

* hunting and gathering, * exchangeand selling of forest products, * agriculture, * labor for the Bantus, and * traditionalmedicine.

Exchanges are both barter, and monetary: Bakola Pygmies can exchange or sell forest products(meat, honey, nuts),and obtain or buy cassava,salt, tobacco, alcohol,etc.

Beside their own farming activities,they sell also their labor for activitiessuch as slashing and maintaining the fields for the Bantu villagers, harvesting the cocoa as cheap workers, or helpingwith manual labor. For this work they may be given some moneyor cassava. In either case, the rate is very low, and generallyunfavorable to the BakolaPygmies.

By contrast,healers and traditional doctors can be very famous and they treat patients from various origins, coming from very far away. Treatments may be expensive and these individualBakola Pygmiesused to be relativelywealthy.

Another notable source of income was the gatheringof seeds of Strophantus,which are used by the pharmaceuticalindustry for medicalpurposes, but this trade is not active any more.

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4.4 HEALTH

Bakola Pygmiessuffer from manytransmissible diseases, primarily:

* bacteria like salmonellasand treponemas,and tuberculosis(TB) * viruseslike measles,hepatitis A, B, C, D and others, and * many parasites:malaria, intestinal worms, etc.

Waters are polluted, and cause a lot of diarrhea, the first cause of mortality among young children. Diet is fairly good but such a burden of diseases impairs its effect. The health care opportunitiesavailable to the Bakola Pygmiesare less than for the Bantu populations,at least partly because of the remote locationsof the Bakola Pygmyvillages.

Health workers have observed that Bakola Pygmymortality seems to be much higher, and life expectancy shorter, when comparedto the other local populations. However,additional work is necessaryto confirm this observationdue to the small size of the population and long-term follow-up needed.

4.5 HOUSING

Generally speaking, some houses are still made of palm leaves and bark panels, fixed on wooden poles. However, mud houses,similar to those found in the Bantu villages along the road, are the majority. Roofs are made of palm leaves. Sometimes,houses are covered with corrugated iron sheets.

4.6 EDUCATION

Formal education of Bakola Pygmies in the area started some 40 years ago. Today, a significant proportion of the Bakola Pygmies receive some formal education (pre-school, primary school, some secondaryand technical schools) with the help of the Catholic Mission and more recently,of the internationalNGO SAILD. Duringthe 1997 GEPFE survey, it was estimated30 percentof five to 15 year-oldchildren attendedschool. During the 1998 surveys it was observedthat school attendancehad reducedsignificantly due to lack of funding. As an example, only 14 pupils were presentat the mission boardingschool of Bipindi comparedto up to 60 pupils some years ago.

4.7 SACREDSITES

The most importantsacred sites for Bakola Pygmiesare the tombs of their ancestors. Bakola Pygmiessometimes bury their dead near their settlement;sometimes in the Bantu village near

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In the past, Bakola Pygmies used to immediatelyabandon their settlement when someone died. Today, Bakolawill move their settlementif too many unexplaineddeaths occur, but they usually remain closeto the original settlementsite.

Sacredtrees exist, but their location is usuallykept secret.

4.8 POLITICALAND SOCIALORGANIZATION

Bakola Pygmieshave a non-hierarchicalegalitarian society. There is one chief in each Bakola settlement,though this function is not a traditionalone. Chiefs are not always representative of the population, and important decisions are taken together by all adult men of the settlement, with a preponderancefor the elder men. Bakola Pygmies have very limited personalproperty, but on the contraryan importantcollective asset base.

4.9 LAND OWNERSHIP

Bakola Pygmiessometimes live on their own land, sometimesin areas closer to the Bantu fields where they are allowed to use land by the Bantus. When, in the 1960s the government asked the Bakola Pygmiesto move closer to the roads, they were allotted unoccupied land between Bantu villages that is now theirs. In case of land disputes between Bantus and Bakola Pygmies,the latter usually moveto another site, if the land occupiedis not their own.

4.10 LEGAL AND INSTITUTIONALFRAMEWORK

Under the CameroonConstitution, Bakola Pygmieshave the same rights and obligations as other Cameroonian citizens. The new Constitution also identifies the need to protect "minorities and natives," both of which describe the Bakola Pygmies. Several laws and regulations,which could be to their advantage,are applicableto the Bakola Pygmies.

A summaryof these laws is presentedin AppendixA.

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5.0 POTENTIALPROGRAMS

5.1 TYPESOF PROGRAMS

Preparation, selection, and implementation of IPP-related programs will be based on the process described in the Environmental Foundation Plan (See Volume 4, Part I of the EMP) and be based on informed participation. Programs selected will be carried out by local or international institutions and NGO's in collaboration with representatives of the Bakola Pygmies and other concerned populations.

Potential programs would:

* be developed and chosen with the concemed populations,

* concem health, education and agriculture,

* would be open to both Bakola Pygmies and Bantu, and

* would be simple programs that do not force the populations to observe a radically different lifestyle or create any new dependency. A variety of programs might be developed including those listed below.

Program Examples Health relatedissues - Tuberculosiscontrol for BakolaPygmies and Bantus. - Surveillanceand applicationof child vaccinations(extended vaccination program). - Surveillanceand controlof endemicand epidemicdiseases (cholera, yaws,tuberculosis, STD, and skin diseases). - Assistancein equipmentand suppliesof local healthcenters available to both BakolaPygmies and Bantus. - Supply of clean water. Communitycapacity - Literacyclasses for the adult populationusing itinerant teachers that visit buildingthrough the BakolaPygmies in their settlements. schoolingand - Counselingon hygienein and aroundthe house. education Agricultureand - Improvementin traditionalfood crop agriculturethrough extending the agroforestry cultivatedarea and improvementof techniques. - Use of improvedseeds for betteryields. - Implementationof agroforestrysystems to improvethe useof traditionally availableplants.

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Censusof Bakola - Censusof the BakolaPygmy population,help with obtainingof identity Pygmy settlements papersand developmentof a system of birth registrationand birth and population certificatesthat are importantfor vaccinationand public health campaigns. Incomegenerating - Bakola Pygmiesare famousfor their dancing.Traditional dance groups activities could benefitfrom the developmentsof the tourist industry and help Bakola Pygmieseam an income. Handicraftscould also be developed,as well as the commercializationof some forest products.

The programs proposed are the first step in the overall development of practicable and well- defined programs. During years 1-3 of the Environmental Foundation's existence, it will be the responsibility of the CDF to work with communities to develop practicable, thought-out project and programs which have undergone in-depth community review for funding. Ideally, there would be community consensus before any proposal submitted for consideration for funding.

5.2 SPECIFIC SOCIOCULTURAL CONSTRAINTS OF AND NEEDS OF BAKOLA PYGMIES

5.2.1 SocioculturalConstraints

Potential programs must be designed to recognize some of the specific sociocultural constraints around the Bakola Pygmies which include:

COstracism by some Bantu villagers and civil servants.

* Seasonally mobile and have permanent settlements and hunting camps in the forest.

* Frequently settled away from the villages and roads.

* Historically dependent and have inter-relationships with Bantu villagers.

* Possess very limited personal property.

This IPP recognizes that it is extremely important not to interfere with the equilibrium that exists between Bakola Pygmies and Bantus villagers by giving help and equipment to the Bakola Pygmies without equivalent compensation to the villagers. Such an action could result in significant social and inter-ethnic tension.

5.2.2 Specific Needs

Bakola Pygmies could benefit from:

* Better participation in the Cameroonian society.

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* Simplificationof proceduresto obtain identificationcards. * Education to understand how to deal with other ethnic groups, local authorities, and outside interests. * Help in all judicial matters that concern litigation among Pygmies and between Pygmies and Bantus. * Hygiene and public health are lacking more for the Bakola Pygmies than for other populations. * Increased agricultural production to increase food self-sufficiency and their purchase power. * Enhancementof self confidence.

5.2.3 Existing Vulnerabilities

Todaythe major vulnerabilityof Bakola Pygmypopulations comes from a number of sources:

* there is a generaldegradation of the forest all around them, * the developmentof logging in the region, * existing over exploitationof wild game and its eventualdisappearance, * extemal and intemal influences,and

* general cultural change.

Dancingfor tourists, and otherwiseparticipating in the tourist trade has become one source of income for Bakola Pygmiesin the Kribi area. However,it has also become a quick source of acculturation. As observed by GEPFE, many Bakola Pygmy traditional healers travel to Yaounde or Douala and are themselves deeply involved in modemization. Ideally, the Environmental Foundation could provide the opportunity to implement programs to help Pygmiesto negotiate this transition and become fully participatein the developing economy without losing the basis of their culture.

5.2.4 Implementation and Impact on Changes in Way of Life

Careful implementationof this IPP would benefit existing Pygmy populations and lead to improvementsin their quality of life. But it is also a factor of acceleratedacculturation. It is expected that some Bakola communitieswill wish to accept this process,and other will prefer to keep their traditionalway-of-life. However,it can be consideredthat the Bakola settlements already living closeto the road, and thus involvedin the Project impacts,have implicitlychosen interactionswith outsiders.

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One of the key elements of this IPP is that through the Environmental Foundation's support of small grant developmental projects/programs, Pygmies will decide their future by themselves, and will be pro-active participants in determining the improvements they would like to see.

5.3 MEDICAL PROGRAMS

The Bakola Pygmies are famous for their traditional medicine and treat many people from inside and outside the area. However, their traditional medicine is not very effective against most infectious diseases. A program that would give key representatives of the Bakola Pygmy community better knowledge of health and disease would not only benefit the Bakola Pygmies themselves, but also their patients, as many of them suffer from disorders that might benefit from modem medicine.

Disease is an important issue for the Bakola Pygmies, and life expectancy is low. Public health programs could be adopted with emphasis on child vaccinations and control of endemic and epidemic diseases: measles, tuberculosis (presently an epidemic), sleeping sickness and cholera (both presently threatening), and yaws (endemic treponematosis).

The Bantu populations in the area have partial access to modem medicine (hospitals in Kribi, Bipindi, Ngovayang, and Lolodorf; health posts in Grand Zambi, Bandevouri, and Bidjouka), have their own traditional medicine, and go to the Bakola Pygmies for specific cases.

The objectives for this program are:

* to help the local population in promoting health and coping with disease through training of key individuals

* to make medical drugs available at affordable price to the local population.

The medical projects might include options on attacking specific endemic diseases, improved water supply, training in community health care and nutrition, and establishing a local pharmacy.

5.3.1 Tuberculosis Control Program

During the consultation work for the CLS conceming the Bakola Pygmies in the Kribi-Lolodorf area, the team was alerted to a significant health problem affecting the local Bakola Pygmy population. Specifically, an outbreak of tuberculosis (TB) was occurring, with at least 6 diagnosed cases affecting the Bakola Pygmy population. There were no funds available to screen the population in general or even to treat the known cases.

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Based on current data, it is expected that the incidence of TB in the Bakola Pygmy population is about two percent. This translates to approximately 50 cases in the local population of 2,500. The incidence is lower for the villagers and is estimated to be between 0.5 and 1.0 percent.

The Chad Export Project has recently initiated a tuberculosis control program for the benefit of both the Bakola Pygmies and Bantu villagers in the Lolodorf-Krbi area. This program could be expanded.

The control program is centered in Ngovayang, Bipindi, and Lolodorf. At each location, a medical team including a physician, a nurse, and two lab technicians, will spend three days performing TB screening tests. About 10 percent of the local Bakola Pygmy population (or -250 persons) and four percent of the villager population (or -400 persons) will be screened by skin test. Bacterial diagnosis will follow for those who test positive.

Following the screening effort, a health trainer will visit each of the screening locations. The trainer will educate the community regarding the signs and symptoms of TB and measures to reduce exposure for the families of TB-infected patients. He/she will also dispense the medication to the patients and train the patients in the proper administration of the TB treatment.

5.3.2 Training In Community Health Care

The training of a number of representatives of various Bakola Pygmy communities, both men and women, on practical aspects of health and disease would be through specific short training courses (1-3 months). Provision should be made for follow-up after the training courses and contacts with the local health authorities of the hospitals of Kribi, Bipindi, and Lolodorf and the health centers of Bandevouri, Grand Zambi, and Bidjouka.

The training would address issues that concem all populations, Bakola Pygmies and Bantus, and it can be foreseen that the number of beneficiaries will have to be limited.

An integrated approach to health and disease would include infectious diseases, water bome diseases and so integrate the improved water supply project, nutrition and the need of growth monitoring and agricultural development.

5.3.3 Opening Of Small Local Pharmacies

Drugs are available in Kribi, Bipindi, and Lolodorf, and in some community health centers like Bandevouri and Bidjouka. Pharmacists Without Borders would help the local population to setup and administrate a stock of drugs, that can be sold inexpensively to the local

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communities located too far from the above mentioned health centers (like Makoure and Bissiang),and with the proceesnew drugs can be bought.

Advantages Disadvantages - Availableto all localpopulations. - Potentialdifficulty including both Bakola - Investmentin initialstock of medicine. Pygmiesand Bantus in dailyadministration of - Renewalof the stockfrom sale of drugs. healthpost. - Lowstart-up costs - requiresa specialistin area for aboutone year. - BothBakola Pygmies and Bantus included in healthpost administration.

5.3.4 Water Supply

There are over 20 Bakola Pygmy settlementsand about 20 Bantu villages within 2 km of the pipeline centerline. Lack of supply of clean water is a major problemin the area where:

a most drinkingwater comesfrom rivers, streams, * water collectedfrom natural springsthat are not protectedfrom pollution,and * use of latrinesis rare and not very appreciatedby the population.

Natural springs, where water usually seeps from the ground is the normal water supply for many Bakola Pygmiesand Bantu. This water can be of good quality,but is easily polluted.

In the villages between Kribi and Lolodorf, good drinking water is only available in Bipindi, Bidjouka and Ngovayang. Improved water supply would benefit Bakola Pygmies most in permanent settlementsand could be also be made availableto area Bantu villages that lack clean water supply.

Outbreaks of diarrheaand cholera are frequent in the area. In December1997, several local peopledied from a disease attributedto cholera.

The objectiveof the programwould be to provideas many people as possible,access to good quality drinkingwater. Two options for improvingthe water supply are:

* drilling of newwells, and/or * improvingthe existing water supply by protectingit from direct pollution.

Drillingof New Wells: Constructionof water wells, equipped with simple pumps of proven quality and easily maintainableis a potentialprogram to be implemented.

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Advantages Disadvantages - Good water quality and protectionagainst - Maintenanceis sometimesdifficult as many pollution. modelsexists in Cameroonand spare parts are - Experiencein drilling is presentin Cameroon. not alwayseasy to find. - Expensive(estimates vary from US $8,000- $11,000/well,4-6 M FCFA). - Dueto cost,would requiremany years to providewells to all Bakola Pygmysettlements and Bantu villages. Difficultto prioritize.

Improvement of Existing Water Supplies: Existing wells can be improved by piping the water from the area where it seeps occur to an area where water can be collected under more hygienic conditions. Improvements such as cementing an area have been created by villagers in the Belabo area with the help of the French NGO "Association Francaise des volontaires du Progres" (AFVP), in Yaounde.

Advantages Disadvantages - Materials(cement, plastic pipes, and sand) - The quality of the water is lessguaranteed than neededfor improvementsis readilyavailable when a closedwell is used. and low cost (aboutUS $50-100/well). - The local populationneeds to be aware of - Could benefit many settlementsand villages at protectionmethods against pollution. low cost and are easyto maintain. - The AFVP interventionmay be expensive. - RequiresBakola Pygmiesand Bantus - The improvedwells would only be presentin involvementduring the construction. the permanentsettlements. - Local masonscould be trained by an NGO such as AFVP to completethe work.

The number of wells built and water supplies improved will be the benchmark.

5.4 CHILDREN'S AND ADULT EDUCATION

Two groups of Bakola Pygmies especially affected by education are young children and adults. Currently, a frequent way Bakola Pygmy children can obtain schooling is to attend a boarding school. This is because the villages are located some distance from schools, and the children's parents are often away in forest hunting camps.

Currently there are two boarding schools available for Bakola Pygmy children to attend. One is located in Kribi; the other in Bipindi. One possible method to further enhance educational opportunities which could be addressed through the IPP process would be to build one or several schools so schools will be closer to Bakola Pygmy settlements.

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Adults that have no formal education have difficulties in their contacts with the outside world, with health, and with government authorities. Some education would help them understand how to locate and use government resources and deal with govemment officials, logging companies, development interests, and others. Topics related to health, nutrition, and agriculture could also be taught. This education could help to diminish dependency on others and boost self confidence.

The objective of education programs would be to:

* Help parents send their children to school through scholarships.

* Help schools in their effort to teach Bakola Pygmy children.

* Train adults in their village on community development through a native language education and literacy program.

5.4.1 Children's Education

* Scholarships that pay partly or completely annual school fees.

* Help schools with educational supplies.

- Help boarding schools with food necessary for the pupils.

5.4.2 Adult Education

- Bakola could be educated to teach other adults basic reading and writing skills in their own seKtlements, as well as reinforce past leaming.

* Education in practical matters as:

- rights and obligations as Cameroonian citizens.

- health, hygiene, nutrition, children's education, and agriculture.

5.4.3 Place Of The Bakola Pygmies In The Cameroonian Society

* Provide assistance to help Bakola Pygmies obtain National identity papers necessary for employment and other services.

* Local agents, preferably Bakola Pygmy, to assist the Bakola in their contacts with the administrative authorities.

* Conduct a census of Bakola Pygmy settlements and locations at the whole community level to verify the presence and population of seKtlementsfor use in obtaining govemment

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services, use in planning, etc. An updatedcensus would also assist in planning effective vaccinationand public health campaigns. * Register all births and providefor the issuanceof birth certificates. * Relationsbetween the Bakola and the villagers should conform to a fair managementin employment conditions. As this is not an easy issue, specific ways of action should be considered.

5.5 AGRICULTURE

As game has become less abundantin the Projectarea over the last two decades, the Bakola have become increasinglydependent on agricultureto supply food, gradually increasing it's contributionto their diet. The objectiveof agriculturalimprovement programs would be to raise agricultural output through extension of areas cultivated, improved agricultural practices and better inputs.

Improvement in traditional food crop agriculturewould be possible through extending the cultivatedarea and time allocatedto agriculturalactivities. Agriculturaltools, locally in use, are limited to hoes, machetes, axes, spades and rarely wheelbarrows. The use of improved varieties of seeds and fruit trees would boost yields. With the help of the Catholic Mission, oil palms of improvedvariety are raised and adopted in many Bakola Pygmy settlements, thus showingthe interest in plantinggoods.

* Actions should include information, demonstration, training and implementation by Cameroonians. Representativesof MINREST(Ministry of Research),MINAGRI (Ministry of Agriculture and IRAD (Institute of AgriculturalResearch for Development)are especially concerned. * A program on small animal husbandry, eventually including wild animals, could be developedto mitigatethe disappearanceof game. * Implementationof agroforestrysystems that improve the use of traditionalavailable plants like fruit trees (Irvingia gabonensis, wild African mango, Dacryodes edulis, (safou or bushbutter), Ricinodendron, Spondias, Strophantus grattus (important for the pharmaceuticalindustry), Rattan for basketry, Coula edulis (wild nut), Trema sp. (attracts game).

One issue to be potentiallyaddressed is the identificationof the means to provide Pygmies permanent access to their own land. Pygmy settlements near the Kribi-Lolodorf road are located on Bantu land where the Bantu let them live until they decide otherwise. This creates a dependencyon the Bantu, which would be reduced if the Pygmieshad access to their own land.

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For those Pygmies,who have indicateda wish to become more sedentary,such a program would assist them in meeting their needs. If a program were initiated to seek methods to guarantee Pygmies access to their own land it would be necessary to involve the local authoritiessuch as the prefet and sous-prefet.

5.6 CONCLUSION

The IPP represents an opportunity for the Bakola Pygmies to implement a number of improvementsthey care to make over a periodof 25 - 28 years, using defined monies provided by the EnvironmentalFoundation.

Changeis inevitableeven in the absenceof the pipeline. The Projectwill acceleratechange in the Project area, but through the IPP, negative impacts can be minimized and beneficial impacts maximized. In the long-term,the IPP can be implementedin a manner which will improvethe existing conditionsof the Pygmiesin the Projectarea.

The Chad Export project can then be a special opportunityto increase knowledgeof Pygmy societies undergoingchanges, beforethe processbecomes irreversible.

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6.0 FINANCIALNEEDS OF THE IPP

6.1 TYPESOF PROGRAMS

In the previous sections a wide variety of potential programs were identified which would improve the health, education, and agriculture of Bakola Pygmies and the health needs of Bantu villagers in the Project area covered by the IPP. In summary, the sum of the basic needs identifiedinclude:

Medicaland Health-RelatedPrograms (Bakola Pygmiesand Bantu)

* Control of specific endemic diseases (e.g., tuberculosis,treponematoses like yaws and syphilis,AIDS and STD, intestinalworms, malaria, diarrheadiseases), * Immunizationthrough vaccinationprograms, - Improvedwater supplies, * Trainingin communityhealth care and nutrition, GCounseling on hygiene, • Constructionof latrines,and - Establishmentof local pharmacies.

Adult and Child Education(Bakola Pygmies)

* Maintenanceof existingsupport to schools for Pygmies, • fund to hire teachers * Scholarshipsthat pay for part or all of annual school fees, * Provisionof educationaland food suppliesto schools, * Basic literacytraining for adults, * Education in practical matters (e.g., health, hygiene, nutrition, children's education, and agriculture),and * Civic education.

Agriculture(Bakola Pygmies)

* Improvementof techniquesin food crop agriculture, * Introductionof agroforestrytechniques,

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* Distribution of agricultural tools, and improved varieties of seeds, and

* Information, demonstration, training and implementation.

As previously discussed, these are potential programs only. The actual programs will be determined based on consultation and requests from local communities. The Management Board of the Environmental Foundation will select those projects it judges to be of the highest quality.

6.2 ESTIMATED COSTS

The following section is designed to give some idea of how the estimated $US 40,000 - 50,000 per year to be provided by the Environmental Foundation can be used to support IPP- related programs. It is anticipated that these funds will support a number of individual projects/programs, very few of which would exceed $US 10,000 in total. In the following section, examples are given of how a hypothetical $50,000 could be spent in one lump sum, either for health care, or education, or agriculture. Table 1 illustrates how some of the following might be implemented over a four-year period.

It is anticipated that capital expenditures for items such as construction of several new schools and dispensaries would be funded under the Regional Compensation Program as described in the Cameroon Compensation Plan.

6.2.1 Health Care

* A basic immunization program, including a supply of vaccines or medicine for targeted diseases (at $3 to $5/person) could be extended to the entire local Pygmy and Bantu population.

* Health care aides funded, dispensary technicians trained; and several local dispensaries could be supplied (@ $2,000 to $3,000/year) and latrines constructed.

* Water supplies could be improved in all villages supplied by springs and one or two new wells drilled.

6.2.2 Education

* Almost every Bakola Pygmy child could be sent to boarding school at the rate of $100/pupil/year assuming space would be available.

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* The salaries of 10 teachers (@$3,000/year), educational supplies for five schools (@2,000/year),and funds for maintenanceof five schools (each @$2,000/year),could be paid on a yearly basis.

6.2.3 Agriculture

* Agricultural training, and a one-time supply of tools, improvedseed and trees for each of the 40 settlements.

Many programs require a substantialone-time input of funds (e.g., the vaccinationprogram) after which the overall costs drop, requiring vaccination of new arrivals, children, and scheduled boosters. It is also expected that some programs would become self-supporting after a number of years (e.g., pharmacysupplies).

The estimate for salaries for local teachers and training is based on current local salaries of $2,000 to $3,000/yearfor individualspossessing the necessaryskills.

6.3 EXPECTEDCONSEQUENCES

The purpose of the IPP is to provideBakola Pygmieswith some of the tools they need to make informed decisionsconceming their future. In the face of rapidly changing conditionsaround them, they need information and education to act on their own behalf within Cameroonian society. They need to build self-esteemand confidencein representingtheir needs,whether it be access to health care or to negotiatewith others seekingto use their traditionallands.

It is inevitable that Bakola culturewill change like all cultures change. Some elements of the current lifestylewill be kept and incorporatedinto new life-styles,others will fall out of use and maintained only through oral-traditionsor in the notes of some researcher. It is proposedthat as part of the IPP, a program would be instituted to document this change and record elements of the life-stylesfalling into disuse.

It is probable,given the generaltrend towards modemization,and the 25 - 30-year life-span of the Project, that very significantchange in Bakolatraditions will occur regardlessof whether or not the IPP is implemented. Implementationof the IPP can assist Bakola in directingsome of this change and collectinginformation to make informed decisions. In order to documentthis change, GEPFE has recommendedthat a part of the funds available for IPP programs be devoted to research on Bakola knowledgeand life. This would include the collection of a corpus of information, which could be disseminatedthrough oral histories, books, scientific papers, films, and video.

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Perhapsthe most importantaspect of this type of effort is not the scientificor academicaspect of the work, but the knowledgethat future descendentsof living Bakola will seek out these data to reconstructtheir historical past. It is inevitablethat one or two generations from now significantaspects of Bakola culturewill fall into disuse, change, or be modified. As has been demonstratedthroughout the world, when these types of histories are documented,historical traditions, songs, and practices are often reincorporated(often in a modified form) into the cultural traditions of that generation.

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Table 1. Example of Timeline for Expenditures

Yr. Health Education Agriculture EstimatedCost (17K) EstimatedCost (19K) EstimatedCost (6K) - BasicImmunizations (25% of population)(1 OK) - Fund2 teachers(6K) - Fundagricultural Improvewater supply at 40 villages(4K) - Fundeducational supplies for 2 schools(4K) improvementspecialist - Fundhealth care aide to providehealth, hygiene and - Fundmaintenance costs for 2 schools(4K) to providetraining In sanitationtraining in communities(3K) - Send20 childrento boardingschool (2K) settlements - Fundan adultliteracy trainer to workwith settlements (3K) - Provideone-time supply of improvedseeds and treesto selected settlements. 2 EstimatedCost (18K) EstimatedCost (19K) EstimatedCost (6K) - Basicimmunizations (25% of population)(1 OK) - Continuefunding of teachers(6K) As above. - Trainingfor onedispensary technician (2K) - Continuefunding of supplies(4K) - Supplyof basicmedications, one dispensary (3K) - Continuefunding of maintenancecosts (4K) - Fundhealth care aideto providehealth, hygiene and - Continuepayment of costsfor 20 studentsat boarding sanitationtraining In communities(3K) school(2K) - Fundan adultliteracy trainer to workwith settlements (3K) 3 EstimatedCost (18K) EstimatedCost (21K) EstimatedCost (6K) - Basicimmunizations (25% of population)(1 OK) - Continuefunding of teachers(6K) As above. - Fundhealth care aide to providehealth, hygiene and - Fundeducational supplies for eachschool (4K) sanitationtraining in communities(3K) - Fundmaintenance costs for eachschool (4K) - Trainingfor onedispensary technician (2K) - Fund40 childrenin boardingschool (4K) - Supplyof basicmedications, one dispensary (3K) - Fundan adult literacy trainer to work withsettlements (3K)

4 EstimatedCost (13K) EstimatedCost (21K) EstimatedCost (6K) - Basicimmunizations (25% of population)(1 OK) - Fundtwo teachers for each school (6K) As above. - Fundhealth care aide to providehealth, hygiene and - Fundeducational supplies for eachschool (4K) sanitationtraining in communities(3K) - Fundmaintenance costs for eachschool (4K) - Fundof 40 childrenin boardingschool (4K) - Fundan adultliteracy trainer to workwith settlements (3K) 5-30 EstimatedCost (?) EstimatedCost (?) EstimatedCost (?) - Routineboosters, children and new immigrants Programsas proposedthrough consultation based on needs. Programsas proposedthrough - improvementof existingwater sources, etc. consultationbased on needs. - Implementother proposals

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7.0 BIBLIOGRAPHICALREFERENCES

BAHUCHET,S., 1991. Les Pygmeesd'aujourd'hui en Afriquecentrale. Journal des Africanistes, 61-1:5-35.

CAVALLI-SFORZA,L. L. (Ed.). 1986. African Pygmies.Academic Press, New York, 461 p.

COTCO/Esso PIPELINECOMPANY, 1998. CameroonCompensation Plan, Chad Export Project. (June).

DAMES& MOORE,1997. Draft EnvironmentalAssessment, Chad Export Project: Cameroon Portion, for COTCO/Esso Pipeline Company, Inc. (October)

EXXONPRODUCTION RESEARCH COMPANY, 1998. Draft, Chad Export Project, Environmental Management Plan, Cameroon Portion, Houston. (February)

EXXON PRODUCTION RESEARCH COMPANY, 1998. Draft, Report on Bakola Pygmy Populations in the Vicinityof the Chad-CameroonPipeline Project, Houston. (May)

FROMENT A., G. KOPPERT, J.-F. LOUNG "Draft Report on the IPP PresentationConducted in the Kribi-Lolodorf Area, March 7 to April 1st, 1999" Groupe d'Etude des Populations Forestieres Equatoriales, Paris. (April).

KOPPERT, G. AND J. F. LoUNG,1999. Consultation and Synthesis Meeting Indigenous Peoples Plan, Kribi April 7, 1999. Groupe d'Etude des Populations Foresti6res Equatoriales, Paris. (April)

KOPPERT, G. AND J.F. LOUNG,1997. Draft Report, Evaluationof SocioeconomicImpacts at the Lolodorf, Bipindi, and Ngoumou Storage Yards, B6eabo Pump Station, and Knibi Pressure Reduction Station. Groupe d'Etude des Populations Forestieres Equatoriaies, Paris. (June)

KOPPERT, G. AND A. FROMENT, 1997. CameroonMarket Survey, Kribi to Meiganga,Republic of Cameroon. Groupe d'Etude des Populations Forestieres Equatoriales, Paris. (December)

KOPPERT, G., A. FROMENT, S. BAHUCHET, AND G. NGIMA-MAWOUNG, 1997. Survey of Pygmy Populations, Lolodorf to Kribi Area, Republic of Cameroon. Groupe d'Etude des Populations Forestieres Equatoriales, Paris. (June)

KOPPERT,G., A. FROMENT, LOUNG, J. F., AND G. NGIMA-MAWOUNG. Draft Report, Notes SummarizingConsultations With Bakola Pygmy SettlementsPygmy SurveyNovember

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1997 - February1998. IN: Draft, Reporton Bakola Pygmy Populationsin the Vicinity of the Chad-CameroonPipeline Project, Appendix A. Groupe d'Etude des Populations ForestieresEquatoriales, Paris (March1998).

LOUNG,J. F., 1996. L'insuffisancedes feculents sauvages comestibleset ses consequences chez les PygmeesBakola du Cameroun. IN: FromentA., I. de Garine, Ch. Binam Biko6 et J.F. Loung (eds.), Bien manger et bien vivre. Anthropologie Alimentaire et Developpementen Afriqueintertropicale, Paris, ORSTOM-L'Harmattan,pp. 173-194.

LOUNG,J. F., 1987. Le nom authentique du groupe Pygmee dans la region c6tibre camerounaise.Revue de G6ographiedu Cameroun,Universite de Yaounde.

NGIMAMAWOUNG G. 1993. Le systemealimentaire des groupespygmees Bakola de la Region de Campo (Sud-Ouest du Cameroun), Universit6 de Paris-Sorbonne, These de Doctoraten Anthropologie,614 p. + Annexes,multigraph.

SALEM-MURDOCK,M. ET AL., 1996. The Chad-CameroonPipeline Project Environmental Assessment:Socioeconomic and CulturalIssues. In: Draft EnvironmentalAssessment, Chad Export Project: Cameroon Portion, Appendix B. Institute for Development Anthropology,Binghamton, New York.

WORLDBANK

1990 OperationalDirective 4.30 "InvoluntaryResettlement." IN: The World Bank Operational Manual. (June)

1991 Operational Directive 4.20 "Indigenous Peoples." IN: The World Bank Operational Manual. (September)

1998 World Bank Policy on IndigenousPeoples, Approach Paper for Revision of OD 4.20. (July 14)

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Villageimnportant j ~'Limitedi- l air de peuplement i Amm Carnpementr6sidentiel bakola (1983) APPENDIXA INDIGENOUSPEOPLES PLAN ENVIRONMENTALMANAGEMENT PLAN CHAD EXPORT PROJECT CAMEROONPORTION - VOLUME4

APPENDIX A

General Provisions Of Cameroonian Legislation Concerning The Rights Of Native Peoples

[ Marie-Andree NGWE ]

This appendix summarizes a few of the general provisions conferring upon the pygmy people the same legal protection as other citizens of Cameroon.

1. CONSTITUTION

Its preamble stipulates/guarantees, among other things, the following fundamental principles/rights and duties which apply to all citizens of Cameroon, without discrimination:

* All citizens have the same rights and duties. The State provides all citizens with the conditions necessary for their development.

* The right to a fair trial and to be treated humanely in any circumstance.

* The right to private property. The right and the duty to work: the duty to pay taxes according to one's ability.

* The right to a safe environment and the duty to protect the environment.

Article 2 paragraph 3 grants the right to vote to any Cameroonian citizen over 20 years of age.

The preamble specifies however that the State protects minorities and preserves the right of native peoples according to the law.

2. POLITICAL OR CIVIL RIGHTS LAWS

2.1 Law 90/042 of December 19, 1990 relative to the national identity card.

Article 1 of thereof specifies that having a national identity card is mandatory throughout the land, for any citizen over 18 years of age.

2.2 Law 90/053 of December 19, 1990 relative to freedom of assembly

Article 1 grants all Cameroonians the right to freely create, join or not join an association.

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2.3 Law 90/56 of December19 relativeto politicalparties

Articles 2 and 3 grants the freedom to create, join or not join a political party. Article 9 forbids political partiesthat work against national unity and integration by discriminatingaccording to tribal origins.

2.4 Law 91/020 of December 16, 1991 relativeto the conditionsfor electing deputies to the NationalAssembly.

Article 5 Paragraph4 stipulatesthat each list musttake into accountthe various sociologicalcomponents of the electoraldistrict it represents.

Article 11 allows any citizen over 23 years of age who can read French or Englishto be a candidatefor the electionsof deputies.

2.5 Law 92/002 of August 14 1992 relativeto the conditionsfor electingcity council.

Article 3 Paragraph2 stipulatesthat each list must take into accountthe various sociologicalcomponents of the electoraldistrict it represents.

2.6 Law 96/06 of January 18, 1996 relativeto constitutionalamendments

Article 57 stipulatesthat the regional council reflectsthe various componentsof the region (decentralized territorial grouping throughout a province). The regional council is chaired by a nativefrom the region.

3. TRIBUNALLAWS

Decree 76/521 of November9, 1976 relativeto legal assistanceregulations.

According to this decree, legal assistance may be granted to physical persons who do not have enoughresources to defend their rights in court or to pursue the execution of any ruling, even those obtainedwithout legal assistance.

To obtain legal assistance,the applicantmust put in a request before the commissionhaving jurisdiction,and must supply documentsshowing his/her state of destitution. The commission makes a justified determinationwhich cannot be appealed by either party.

The recipient of legal assistance is partially or completelyexempt from paying legal fees, as well as any other form of court-relatedfee (to attorneys,notary public, bailiff, etc.)

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4. REAL ESTATE LAWS

4.1 Ordinance 74/1 of July 6, 1974 relative to real estate

Article 15 and 17 grant members of traditional communities who have been occupying or working on public land prior to August 5, 1974:

- the right to continue to work or occupy the land, and the right to obtain legal ownership of that land;

- hunting and gathering rights on public land that is neither occupied nor used.

4.2 Ordinance 74/2 of July 6, 1974 relative to state-owned land

Article 7 stipulates that people occupying the land in good faith and who have been enjoying rights over state-owned land prior to August 5, 1974 cannot be dispossessed except in case of public interest and with a compensation equivalent to that of an expropriation.

4.3 Decree 76/165 of April 27, 1976 relative to private ownership titles.

Chapter II, Section 11 of that decree defines the process for obtaining private ownership titles for public land occupied by traditional communities and their members according to Point 4.1. In order to do this, the latter must file an application at the Sous-pr6fecture of the arrondissement(administrative division) where the land is located.

This application indicates their civil status and a description of the land involved. Once the application is reviewed, the land is registered, unless the Minister of Land Registry decides against it by ruling in favor of a third party opposed to it. That decision may be appealed to the Supreme Court's Administrative Chamber.

4.4 Decree 76/166 of April 27, 1976 relative to public land management

Article 23 determines that in case of incorporation of land belonging to public domain or owned by the State or by other public entities, the expropriated persons must receive a compensation equivalent to the value of the structures or crops that can be found on the land.

5. ENVIRONMENTAL AND HEALTH LAWS

5.1 Law 96/03 of January 4, 1996 providing a framework for health-related topics

The national policy is based in particular on the principle of improving health among disadvantaged and vulnerable groups (article 4, paragraph 3).

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5.2 Law 96/12 of August 5, 1996 providing a framework for the management of the environment

Articles 5 through 9 of that law establish rules relative to each citizen's rights and obligations regarding the environment:

Laws and regulations must provide a safe environment to everybody.

The whole population must be sensitized to environmental issues. It must have access to information about the environment and it has the right to be informed about the negative impacts on health, humans and the environment, by harmful activities, as well as measures taken to prevent and compensate for these impacts.

It is the duty of each citizen to protect and conserve the environment.

6. Employment and Social Welfare Laws

6.1 Law 77111 of July 13, 1977 relative to the prevention and compensation of work-related accidents and diseases.

Article 8 allows any Cameroonian citizen with or without a job to subscribe to an insurance policy regulated by the same law (mainly for workers who are protected by the Labor Code). Unemployed citizens must pay the full premium.

6.2 Law 84/007 of July 4, 1984 amending Law 69/LF/18 of November 10, 1969 establishing a social security regime for the elderly, invalids and widows and orphans.

Article 3 allows any Cameroonian citizen to voluntarily subscribe to the regime established by that law. In that case, the citizen must pay the full premium.

6.3 Law 92/007 of August14, 1992 relative to the work code

Article 2 stipulates that each individual enjoys the right to work as a fundamental right and that the States must do everything in its power to help each individual find a job.

6.4 Decree 94/199 of October 7, 1994 about govemment jobs

Article 12 stipulates that govemment jobs are open to all Cameroonian citizens, without discrimination.

7. Education Laws

Law 98/4 of April 14, 1998 relative to educational goals in Cameroon

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Each citizen has the same right to gain access to education regardless of his or her social cultural, linguistic or geographic origin (article 7).

8. Consumer Protection Laws

Law 90/031 of August 1990 relative to business in Cameroon

Article 3 forbids business owners to discriminate against people in the sale of their goods or services. This provision applies to banks, since they are qualified as doing businesses.

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APPENDIXB

ExcerptsFrom Survey Of PygmyPopulations

Ill. CONCLUSIONS

The "project area" as discussed below is defined as a strip of land 10 km wide between Lolodorf and Kribi,centered on the road from Lolodorfto Kribi via Bipindi.

1. Determinationof the numbersof pygmiespresent in the projectarea:

52 permanentsettlements containing 1343 Bakolapeople. 2. Identificationand plotting of the locationof Pygmyvillages and settlementsin the project area:

Map 3 shows the approximate locations of Pygmy permanent settlements (villages) in the projectarea recordedduring this survey Locationshave been recordedusing GPS equipment. 3. Identificationand plotting of the locationof "Bantu"villages and settlementsin the project area:

The non-Pygmyvillages and their boundariesare plottedon map 3. 4. Identification and plotting of the location and usage of temporary Pygmy hunting encampments:

Temporary hunting camps of each Pygmy permanentsettlement (village) were identified by questioning.Approximate locations are plottedon map 3. 5. Assess and describethe economicstatus of the Pygmypopulation of the projectarea:

Bakola Pygmiestemporarily move to hunting campsfor hunting and gathering; no Kola family is exclusively hunter-gatherer:all of them rely upon agriculture to some extent for their carbohydratesupply. Diet is good even if meat seemsscarce during the presentfield survey.

6. Assess and describethe health statusof the Pygmy populationof the projectarea:

Health status and life expectancy among the Bakola are poor. They suffer from many transmissiblediseases (mainly bacteria like salmonellasand treponemas,viruses like measles, hepatitisA, B, C, D and others, and many protozoalparasites: malaria, intestinalworms, etc.). Water supply is bad, and causes a lot of diarrhea,the first cause of mortality among young children. Diet is fairly good but such a burdenof diseasesimpairs its effect.

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IV. Potentialimpacts of the project

Short-term effects

Duringconstruction, the projecthas the potentialto impactthe pygmypopulation as follows:

1. 6 Bakola permanentsettlements have been mapped as lying on or near the proposed30- meter wide pipelineroute i.e. some 110 persons,and 22 houses.The locationswill have to be confirmed during pipelinesurvey work and the pipelineshould be movedto avoid these permanent seKtlements.Residents of these permanent settlements will have to be consultedduring the survey.

2. A further 5 permanentsettlements are located less than 1000 m (600 to 800) from the pipeline route, with 5 others at less than 2000 m and 9 others at less than 3000 m from the pipeline route. Likewise, the locations of these permanent settlements will have to be confirmed duringthe pipelinesurvey work and the pipelineshould be moved to avoid these permanentsettlements. Residents will have be consultedduring the survey.

3. The comingsand goings of workers, trucks and other constructionequipment will have the effect of frightening and disturbing wildlife, thus decreasing the catches of hunting activities.This effect should by temporaryduring the 30 to 60 day construction period, but has to be monitored. Bush meat consumptionand game abundance in the construction area will haveto be investigatedduring the preliminaryconsultation period.

4. The presence of numerous construction workers for periods of weeks or months, will noticeablyincrease the local population,with the followingpotential effects:

4.1 Huntingpressures may increase,first by the Bakola Pygmiesattempting to meet any bushmeat demand generated by the constructionworkers, and second by someworkers who will themselvestrap for their own use during their stay in the region. (It should be kept in mind that wild meat is the major source of protein used by all populationsin Southem Cameroon).The project should providefood to, at least, all of its non local workers. Huntingand fishing by non local workers should be prohibited.

4.2 The workers will shop in the Bantu villages, and may compete with the Bakola for the supply of starchy food - unfavorablyfor the Bakolawho cannot afford the same prices. Conversely,the workers will give some Bakola the opportunityto sell their products.The effect on prices will have to be closely monitored during the construction period. The effects can be limited by providing food to the workers.

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4.3 Inside the rain forest, there are many health hazards,mainly with parasitic and infectiousdiseases. Workers who will come from other zones, like savanna, and who have no immunityagainst many of the encounteredviruses, are speciallyat risk. Workers coming from drier areas can in turn bring some diseases, like bilharziasis,which is presentlyvirtually absent in the region. Health status of all populations (Pygmiesand Bantus)will have to be monitored during and after the constructionperiod. A complete vaccinationprogram, which would prevent measles,could be financed by Exxonfor the project area and carried out by the Govemmentof Cameroon.

4.4 The forest environment, as a rich biological reserve, is also favorable to the transmissionof numerous infectious diseases.An outbreak of very dangerous epidemics, like Ebola, cannot be excluded, as such an outbreak happened a few months ago in Makokou, NorthemGabon, 350 km south of Lolodorf; the source was a dead chimpanzee, an animal currently hunted in the Bipindi- Lolodorf,by Pygmiesas well as Bantu people.

4.5 Conversely,while most of the human populationof the area does not live deep in the forest, the grouping of villages along the road is more favorable to epidemicoutbreaks, like measles,which is the third cause of child mortality in the area. Therefore, the medicalmonitoring which will be set up will have both to prevent the workers from getting diseases from the unhealthy forest environment, but also to protect the local population from infections brought from outside.

4.6 This last aspect concems namely STD, as prostitution is expected to develop along the route of the working team. Female sex workers coming from Douala and even Yaounde, or smaller cities, use to come around the plantationsand industriesaround Kribi and Campo, twice a month, when salaries are paid to workers.The presenceof a large and presumedwealthy project will attract a lot of prostitutes;their impactwill also involve surroundingvillagers. The prevention against AIDS and others STD designedby the health program has to be aware of that issue.

Long term effects

1. Any Bakola permanentsettlements that might move becauseof the project (point 1) will competewith other villages for their new agriculturalterritories. The project shall avoid movingthem.

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2. At present in the area, animal resourcesare not renewedsufficiently fast to cope with the nutritional needs of the larger populationcenters that are the town of Kribi and the great agro-industral complexes of the region (Hevecam for rubber, Socapaim for palmoil). Our studies show that although the diet of the populationsthat live in the forest environmentis on the whole satisfactory,it are those societiesthat are changing (Pygmiestowards sedentarization)who manifest insufficiencieson a nutritional level. Should it be permanent employment, the influx of workers (point 3 and 4) could unbalance on the long term the wild species survival, and specially some which are officially protected.

3. The effect of any temporarymodifications in the trade and exchangesystem between Bakola and villagers (point5) is not known.Some Bakola permanentsettlements could settle closer to the road side, looking for more trading opportunities,while others may move closer to their hunting territories, thus increasing their independencefrom the Bantu villages. It is not possibleto predictthis beforehand.

4. It is importantto monitorein the remainingPygmy settlements(about 50 to 80 between Eseka, Edea, Campo and Ma'an, map 2) in the region if any population movements take place in relation to the project. These Pygmy populations can be used in a comparisonto the Pygmies in the pipeline area. An extra consultation is needed for this. This could help to evaluate the impact of the pipeline on living conditions of the Pygmies.

V. Recommendations

1. Considerationshould be given to locating project facilities to avoid direct impacts on Pygmy settlements. Where project facilities are located in the vicinity of Pygmy settlements, those facilities should ideally be at least 2000 m distant from the settlementsin orderto minimizesecondary impacts. Direct impactsof the projectwill be negligible when the distance is at least 2,000 m, impacts will be limited to the constructionperiod if the distanceis between500 and 2,000 m and it must be avoided to come closer than 500 m to a Pygmy permanentsettlement. In case of Pygmiesthat live in Bantu villagesor next to the main road, and thus in a disturbedenvironment, the limit of 500 m can be less.

2. Fair and appropriatecompensation for impactson any affected permanentsettlements is required.Though not studied in this report, impacts on Bantu villagers is expected to be at least as important as on Pygmies. Compensation should involve community projects: schools,health posts, church,football field.

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3. The projectshould ban huntingand fishing by non local workers.The supply of produce from local marketsto workers should be organized(mainly beef and chicken meat), to limit the demandfor game.

4. There is no easy way of monitoringmeat consumptionand hunting. Monitoringof meat consumptionbefore and after the project,can only be done through direct observation in a sample of permanentsettlements within and outside the project area, before and after the construction.Questionnaires are unreliableto measure meat consumptionin Pygmies. This will involve the presence of a scholar or PhD student for 6 months/2 years in the area.

5. Regular nutritional anthropometry(monitoring of growth and nutritional status, before and after the project period), within and outside the area can pinpoint food provision problems when they become serious. However, this method might be more cost effective than the monitoringof huntingand meat consumption.

6. The introduction of new techniques of resource management (improved game protection,improved seeds and plantsfor damagedcrops, agroforestry)would help the existing rural populationsto better exploitforest resources.Compensation could include the distributionof improvedplanting material for damagedcrops.

7. Consultationwill be necessary before the commencementof project construction in order to fully assess the impact of the pipelineon the Pygmycommunity as a whole, as the present report is based upon the rapid appraisal of only the area adjacent to the Kribi-Lolodorfroad. The location of fields and gardens has not been assessed in this study, but their locations in respect of the pipeline will have to be known before the project starts, in order to fully inform the local population.We suggest to make a first visit of the Bantu villagesand Pygmysettlements before the centerlinesurvey starts, so that the whole population can be fully informed of the development of the work. A second visit should be done as soon as the route of the pipelinewill be materializedon the ground, in order to be sure that it is acceptable by the population without any importantchange.

8. Specifictechniques for consultationshould be developedto explain to both the Bakola and the villagersthe consequencesof the projecton their way of life.

9. Excavationsfor the pipeline can be expected to lead to the discovery of many Pygmy sociocultural and archaeologicalsites. Protocolsto be followed when such sites are intersectedshould be developed.

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