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World Bank Document Report No. P-2147-PAK(s) Pakistan: Hazara Forestry Pre-lnvestment Project Technical Annexes FILE COPY October 1977 South Asia Projects Department Public Disclosure Authorized Agriculture Division B FOR OFFICIAL USE ONLY Public Disclosure Authorized Public Disclosure Authorized Document of the World Bank Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. PAKISTAN HAZARA FORESTRY PRE-INVESTMENT PROJECT Currency Equivalent US$ = PRs 9.8 PRs 1 US$ 0.10 PRs I million (m) US$302,000 Weights and Measures I acre (ac) 0.405 hectare (ha) I kana] 0.125 acre I mile (mi) 1.609 kilometers (km) 1 foot (ft) 0.3048 meters I inch (in) 2.540 centimeters 1 cubic foot (ft ) 0.0283 cubicmeter (m3) 1 pound (Ib) =0.454 kilograms (kg) 3 liter (]) 0.264 US gallons I maund 82.3 lbs = 37.4 kg Abbreviations ACF - Assistant Conservator of Forests DBH - Tree diameter at breast heilght (4 ft. 3 in.) DFO - Divisional Forest Officer FD - Forest Department of NWFP GOAK - Government of Azad Kashmir GONWFP - Government of North West Frontier Province GOP - Government of Pakistan MAI - Mean annual volume increment of growing trees NWFP - North West Frontier Province PFI - Pakistan Forest Institute Glossary Pulp - Wood pulp produced by mechanical or chemical means. Pulpwood - Wood used in pulp manufacture; usually small dimension roundwood and wood waste from other forms of wood processing. Roundwood - Unprocessed logs in round form. Fiscal Year - GOP and GONWFP July 1 to June 30 FMR 01FfCIAL USE ONLY PAKISTAN: Supplement to Hazara Forestry Pre-Investment Project Technical Annexes containing Working Papers for project imp] ementation October, 1977 South Asia Projects Department Agricul ture Division B The data and other materia7 contained in the technical arnexes have been compiled to give direction to project activities and provide a basis for developing detailed work programs for the various sub-components. Except as specifically provided for in the legal documents for the project, the details of project actions which are described in the annexes are not definitive and it is e.xoected that changes in design and scope will occur as the project deveJopes. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World RIank authorizsation. PAKISTAN HAZARA FORESTRY PRE-INVESTMENT PROJECT TABLE OF CONTENTS Page Introduction 3 Hazara Forestry Development Plan 2 Project Area 2 Project Activities 3 Project Management Costs Financing 6 Benefits 6 Tables 1. Phasing of Project Activities R.etails of PhKIicalCRejultents and Costs J ummary o0 CssOsee Dy eost atgo Annexes l. Site Assessment and Inventory 2. Pilot Plantations, Research Trials and Pulping Tests 3. Training and Fellowships 4. Guzara Forest Owners Task Force 5. Forest Industries Feasibility Study 6. Organization and Management 7. Preliminary Program Evaluation Map IBRD 12496 R PAKISTAN HAZARA FORESTRY PRE-INVESTMENT PROJECT Introduction 1. The Governments of Pakistan (GOP) and North West Frontier Province (GONWFP) have requested a credit for technical assistance through a Hazara Forestry Pre-Investment Project in the Hazara region of the North West Frontier Province. This project would be the first phase of a program of development to bring to the region industrial forest plantations, intensive exploitation operations, and pulp and paper mill. The annexes to this report contain detailed descriptions of the area, background and proposed project activities. These are briefly summarized below. 2. Forestry and forest industry project proposals for the Hazara district have been under consideration for some tine, including the introduction of large scale afforestation and the construction of a pulp mill at Mansehra, based on the lower elevation Chir pine (Pinus roxburghii) zone. These developments would involve exploitation of the existing Chir pine forests, establishment of short-rotation pulpwood plantations in Government Reserved and private "Guzara" forests, and management of the whole area on an intensive sustained-yield basis to meet the needs of the proposed industry as well as the local population. 3. To initiqe the pulp mill project, GOP has had a preliminary feasibility study undertaken. 1. In addition, GONWFP is presently conducting preliminary studies aimed at : ( i) evaluating the Chir pine forests which fall within a radius of some 40 miles of the proposed Nansehra pulp mill site; ( ii) investigating the potential for utilizing the privately owned Guzara forests lands and forest wastelands in the region; (iii) deve]oping techniques for the establishment of short-rotation plantation forests in the area to replace the long-rotation system presently being followed; and, ( iv) developing an institutional framework which would enable both publicly and privately owned forests lands to be managed intensively to provide for regular local needs and the fibre requirements of the proposed industrial development. lj Feasibility Study for Long Fiber Pulp Project to utilize forest resources of NWFP. Zafar and Associates and Stadler Hurter, 1973. -2- Proposed Development Plan 4. The technical development project would support and extend this work in the Chir pine sone of Hazara and expedite implementation of a development plan. As presently conceived, the plan would comprise three phases as follows : Phase One This phase would begin with the technical development 1977'U-2 project and extend over a five-year period commencing in 1977. The project area would be thoroughly evaluated for inventory and plantation development areas, plantation management techniques would be established, institutional frameworks developed, and project preparation for subsequent large-scale planting and for industrial development would be completed. 2 Phase Two This phase would begin in 1980 with the cmmencement 1980 -- 85 of large-scale planting of both Chir pine and hardwood species and the construction and start-up of the first stage of the pulp mill and associated logging industry. At present, it appears that a 30,000 to 4o,ooo ton per annum long-fibred kraft pulp mill. using Chir pine would be the most logical development but provision has been made in the Phase One of the program for detailed feasibility studies to confirm or modify this preliminary conclusion. Phase Three This phase would include a second-stage forestry 7 90 project which would complete the establishment of the estimated 85,000 acres required to support the proposed pulp and paper mill. The mill would be expanded during this phase by the addition of a 40,000 ton per annum newsprint mil-1 which would use hardwood species pulped by a semi-chemical process, with a proportion of long- fibred pulp added to the furnish. Again, this tentative mill configuration could be modified in subsequent detailed studies to be carried out during earlier phases of the program. ProJect Area 5. The project area is within an approximate radius of 30 miles of Mansehra; it contains some 60,000 acres of existing Chir pine forests of which some 50% is government reserved forests and 50% private Guzara forests, and some 90,000 acres of treeless Guzara land which is considered suitable for reforestation. The area is described in detail in Annex 1 and shown in Map 1. 2/ It will be noted that a two-year "overlap" has been provided extending the Technical Development project into the implementation of Phase Two. This is a contingent safeguard against any unforeseen problems which may deveJop and is intended to add flexibility to the program. -3- Project Activities 6. The project would be for five years and would include the activities described below;. the phasing of activities is presented in Table 1. ( i) a site assesament surwey to select suitable areas for large-scale afforestation and exploitation within the catchient area proposed for the mill, having regard to the physical limitations of the forest lands and the requirements for wood supplies and grazing to neet local demand; compilation of management ago at scale 1:25,000, (see Annex 1); ( ii) complementing the site assessment, there would be a complete updating of the inventory of the existing forest resource to provide reliable data of current timber stocking for the feasibility study, (see Annex 1); (iii) Pilot plantations with back-up research trials extending to some 5,000 acres to achieve early impact of improved technology and establish a sound bases for large-scale afforestation; institute longer-term tree breeding improvement and possible improved species, (see Annex 2); ( iv) training and fellowships to accelerate the implementation of improved technologLes including a specialist in p]antations deve]opment for the first three years; an inventory specialist in Year 1; overseas study tours for project staff in Years 1, 2 and 3, (see Annex 3); ( v) a Ouzara Forest Owners Task Force to assess the position of Guzara forest owners and other forest users and prepare suitable institutional and financial arrangements to ensure the integration, participation and cooperation of the local people with future forest and forest industrial development, (see Annex 4); ( vi) pulping tests to coordinate the suitability of species proposed for planting with their industrial qua]ities, (see Annex 2); (vii) a feasibility study to provide a firm base for
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