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E862 Volume 2 Public Disclosure Authorized MINISTRY OF AGRICULTURE AND FORESTRY OF BULGARIA Public Disclosure Authorized ENVIRONMENTAL ASSESSMENT OF THE FOREST DEVELOPMENT PROJECT, BULGARIA Public Disclosure Authorized Final Report Public Disclosure Authorized Helsinki January 28, 2004 ' , X TABLE OF CONTENTS ABBREVIATIONS AND ACRONYMS .... v..........................v EXECUTIVE SUMMARY .............................. vii 1. INTRODUCTION .1 1.1 Project Background .1 1.2 Objectives and Scope of the EA .. 2 1.2.1 Objectives .2 1.2.2 Scope .2 1.3 Phases of Environmental Assessment .3 1.3.1 Activities Carried Out .3 1.3.2 Participation of Stakeholders .4 1.4 Contents of the Report .. 4 2. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK ... 5 2.1 Policy and Legislation .5 2.1.1 National Framework .5 2.1.2 International Commitments .7 2.1.3 Requirements of Financing Agencies .8 2.2 Institutional Framework .. 9 2.2.1 Relevant Government Administration .9 3. DESCRIPTION OF THE FOREST DEVELOPMENT PROJECT ... 10 3.1 Project Development Objectives and Key Indicators . .10 3.2 Project Components .. 11 3.2.1 Component 1: Strengthen Public Forest Sector Management . .11 3.2.1.1 Building and Strengthening Nation-wide Forest Extension and Inspection Services .11 3.2.1.2 Building and Strengthening a Nation-wide Forest Fire Management System .11 3.2.1.3 Developing a Forest Information and Monitoring System, Including Updating of National Forest Database .12 3.2.1.4 Illegal Logging Surveillance and Monitoring .13 3.2.1.5 Finalization of Forest National Certification Standard .13 3.2.1.6 Support for Professional Technical Schools .13 3.2.2 Component 2: Strengthening of Capacities of Non-State Forest Owners .. 14 3.2.2.1 Fostering National Association of Private and Communal Forest Owners .14 3.2.2.2 Supporting Community-based and Communal Forest Owners Associations .14 3.2.2.3 SAPARD Realignment and Support .14 3.2.3 Component 3: Supporting State Forest Management Transition to Market Economy . .15 3.2.3.1 Implementation of Restructuring Plan for the National Forest Company .15 3.2.3.2 Upgrading of Forest Road Network .16 3.2.3.3 Thinning of Young and Fire Prone Stands .16 3.2.3.4 Reforestation and Rehabilitation of Destroyed and Devastated Forest Fire Sites .17 3.2.3.5 Implement Pilot Certification in Selected State Forests .17 3.2.4 Component 4: Promotion of Biodiversity Conservation in Forest Management .. 17 3.2.4.1 Mainstreaming Biodiversity Conservation in Forest Management Planning .18 3.2.4.2 Integration of Biodiversity Conservation in Forest Management Operations .20 Environmental Assessment of the Forest Development Project, Bulgaria. Ministry of Agriculture and Forestry of Bulgaria, prepared by INDUFOR. January 28. 2004. 3.2.4.3 Strengthening the System of Forest Nature Parks Managed by the National Forest Company ................................................... 22 3.2.4.4 Development of the Bulgaria Protected Areas Fund Endowment ........... 24 3.2.4.5 Forest Biodiversity Program Coordination and Management ................. 25 3.2.4.6 Joint Implementation Capacity Enhancement and Project Pipeline ........ 25 3.2.4.7 Additional Component Annexed to EA Assignment: Bulgaria Fuel Switch Pilot Project ................................................... 25 3.2.5 Component 5: Project Management and Monitoring . .............................25 3.2.5.1 Project Management ....................................... 26 3.2.5.2 Project Monitoring ....................................... 26 3.3 Institutional Arrangements for Project Implementation . ..................................................... 26 4. BASELINE DATA ............. 27 4.1 Forest Resources .................................. 27 4.2 Forest Management .................................. 27 4.3 Timber Harvesting .................................. 28 4.4 Non-wood Forest Production ................................. .. 29 4.4.1 Hunting and Fishing ................................. 29 4.4.2 Herbs, Mushrooms and Forest Fruits .. ............................... 30 4.4.3 Tourism and Recreation ................................. 30 4.5 Trends in Resource Use ................................. 30 4.5.1 Forest Industries ................................. 30 4.5.2 Harvesting Levels ................................. 31 4.5.3 Illegal Harvesting ................................. 32 4.5.4 Allowable Cut .................................. 33 4.6 Forest Ownership .................................. 33 4.7 Environmental Status ................................... 34 4.7.1 Biological Diversity ......................................... 34 4.7.1.1 Status ........................................ 34 4.7.1.2 Biodiversity Conservation and Management ........................................ 35 4.7.2 Water and Soil Protection ......................................... 35 4.7.3 Forest Health ........................................ 36 4.7.4 Carbon Management ......................................... 36 4.8 Social Issues .......................................... 37 4.9 Forest Administration .......................................... 38 4.9.1 Structure and Functions ........................................... 38 4.9.2 Management of State-owned Production Forests . ................................38 4.9.3 Management of Protected Areas .......................................... 39 4.10 Other Forest-related Entities .................................... .. 39 4.10.1 Communal Forest Organizations .. .................................. 39 4.10.2 Non-govemmental Organizations .. .................................. 40 4.11 Public Participation ..................................... 40 5. ENVIRONMENTAL IMPACTS ..................................... 41 5.1 Conduct of Assessment .................. 41 5.1.1 Approach .......................................... 41 5.1.2 Methodology .......................................... 43 5.1.2.1 Overview .......................................... 43 5.1.2.2 Impact Assessment .......................................... 43 5.1.2.3 Control of Significant Environmental Impacts ........................................ 46 5.1.2.4 Environmental Management Plan .......................................... 46 5.2 Component 1: Strengthen Public Forest Sector Management . ............................................ 46 5.2.1 Key Issues ...................................................... 46 5.2.2 Coverage and Impacts of the FDP Intervention . .....................................................47 5.2.3 Suggested Mitigation and Enhancement Measures . ...............................................48 5.3 Component 2: Strengthening of Capacities of Non-State Forest Owners ... 49 5.3.1 Key Issues ...................................................... 49 5.3.2 Coverage and Impacts of the FDP Intervention . .....................................................50 Environmental Assessment of the Forest Development Project. Bulgaria. Ministry of Agriculture and Forestry of Bulgaria. prepared by INDUFOR. January 28, 2004. 5.3.3 Suggested Mitigation and Enhancement Measures . ...............................................51 5.4 Component 3: Supporting State Forest Management Transition to Market Economy ..... 52 5.4.1 Key Issues ....................................................... 52 5.4.1.1 National Forest Company (NFC) ....................................................... 52 5.4.1.2 Upgrading of Forest Road Network ....................................................... 52 5.4.1.3 Thinning of Young and Fire Prone Stands .............................................. 55 5.4.1.4 Reforestation and Rehabilitation of Destroyed and Devastated Forest Fire Sites ....................................................... 56 5.4.1.5 Implement Pilot Certification in Selected State Forests .......................... 57 5.4.2 Coverage and Impacts of the FDP Intervention . .....................................................58 5.4.2.1 National Forest Company (NFC) & Pilot Certification ........................... 58 5.4.2.2 Upgrading of Forest Road Network ............................................... 58 5.4.2.3 Thinning of Young and Fire Prone Stands .............................................. 60 5.4.2.4 Reforestation and Rehabilitation of Destroyed and Devastated Forest Fire Sites ............................................... 61 5.4.3 Suggested Mitigation and Enhancement Measures . ...............................................61 5.4.3.1 National Forest Company (NFC) ....................................................... 61 5.4.3.2 Upgrading of Forest Road Network ....................................................... 62 5.4.3.3 Thinning of Young and Fire Prone Stands & Rehabilitation of Destroyed and Devastated Forest Fires Sites .......................................... 63 5.5 Component 4: Promotion of Biodiversity Conservation in Forest Management ... 63 5.5.1 Key Issues .......................................... 63 5.5.1.1 Biodiversity Conservation .......................................... 63 5.5.1.2 Carbon Sequestration .......................................... 65 5.5.1.3 Emission Reduction .......................................... 66 5.5.2 Coverage and Impacts of the FDP Intervention . .................................68 5.5.2.1 Biodiversity Conservation .......................................... 68 5.5.2.2 Carbon Sequestration and Emission Reduction ....................................... 69 5.5.3 Suggested Mitigation and Enhancement Measures . ...............................71 5.5.3.1 Biodiversity Conservation