The International Tropical Timber Organization (ITTO)

INTERNATIONAL TROPICAL TIMBER ORGANIZATION

ITTO

PROJECT PROPOSAL

TITLE: PROMOTING BIOLOGICAL AND NON-BIOLOGICAL AGENT PREVENTION AND CONTROL TECHNIQUES IN MECHANICAL TIMBER PROCESSING IN PERU

SERIAL NUMBER: PD 689/13 Rev.1 (I)

COMMITTEE: FOREST INDUSTRY

SUBMITTED BY: GOVERNMENT OF PERU

ORIGINAL LANGUAGE: SPANISH

SUMMARY

Biological and non-biological control is hardly used in timber harvesting and processing; however, several studies have shown that this procedure can prevent the deterioration caused by biological and non-biological agents in roundwood and sawnwood during mechanical processing. Furthermore, among other benefits, this procedure can increase the lifespan of end-products, expand market segments and facilitate the introduction of new species whose main limiting factor is low natural durability levels. Thus, this project proposes “to develop and transfer knowledge on technical procedures for the prevention and control of biological and non- biological agents affecting timber durability in the harvesting and processing of timber forest resources in the Department of Ucayali”. To this end, the project will select low-cost, environmentally friendly and low-toxicity preservatives available in the national market. Good practices will also be identified in cooperation with forest producers and will be validated in the field. Timber species of low natural durability will be tested to assess their use suitability. Project outputs will be transferred to forest producers and the local scientific community, and will also be disseminated through the web pages of the Forest Producers’ Association of Ucayali, the National University of Ucayali and the General Forest and Wildlife Directorate of the Ministry of Agriculture of Peru.

EXECUTING AGENCY FOREST PRODUCERS’ ASSOCIATION OF UCAYALI (APROFU) with the NATIONAL UNIVERSITY OF UCAYALI (UNU) and the GENERAL FOREST AND WILDLIFE DIRECTORATE (DGFFS) as collaborating agencies

DURATION 24 MONTHS

BUDGET AND PROPOSED Source Contribution SOURCES OF FINANCE: in US$

ITTO 456,696 APROFU/UNU 252,178

TOTAL 708,874

TABLE OF CONTENTS

PROJECT BRIEF ...... 4 LIST OF ABBREVIATIONS AND ACRONYMS ...... 6 MAP OF PROJECT AREA ...... 7 PART 1. PROJECT CONTEXT...... 8 1.1 ORIGIN ...... 8 1.2 RELEVANCE ...... 9 1.2.1 Conformity with ITTO's objectives and priorities ...... 9 1.2.2 Relevance to the submitting country's policies ...... 9 1.3 TARGET AREA ...... 10 1.3.1 Geographic location ...... 10 1.3.2 Social, cultural, economic and environmental aspects ...... 11 1.4 EXPECTED OUTCOMES AT PROJECT COMPLETION ...... 13 PART 2. PROJECT RATIONALE AND OBJECTIVES ...... 15 2.1 RATIONALE ...... 15 2.1.1 Institutional set‐up and organizational issues ...... 16 2.1.2 Stakeholder analysis ...... 17 2.1.3 Problem analysis ...... 19 2.1.4 Logical framework matrix ...... 20 2.2 OBJECTIVES ...... 22 2.2.1 Development objective and impact indicators ...... 23 2.2.2 Specific objective and outcome indicators ...... 23 PART 3. DESCRIPTION OF PROJECT INTERVENTIONS ...... 24 3.1 OUTPUTS AND ACTIVITIES ...... 24 3.1.1 Outputs ...... 24 3.1.2 Activities ...... 24 3.2 IMPLEMENTATION APPROACHES AND METHODS...... 27 3.3 WORK PLAN ...... 29 3.4 BUDGET ...... 30 3.4.1 Detailed master budget by component and financing source ...... 30 3.4.2 Consolidated budget by component ...... 35 3.4.3 Yearly project budget by source – ITTO ...... 38 3.4.4 Yearly project budget by source – Executing Agency ...... 40 3.5 ASSUMPTIONS, RISKS AND SUSTAINABILITY ...... 41 3.5.1 Assumptions and risks ...... 41 2

3.5.2 Environmental, social, technical, economic and political sustainability ...... 41 PART 4. IMPLEMENTATION ARRANGEMENTS ...... 43 4.1 ORGANIZATION STRUCTURE AND STAKEHOLDER INVOLVEMENT MECHANISMS ...... 43 4.1.1 Executing agency and partners ...... 43 4.1.2 Project management team ...... 43 4.1.3 Project Steering Committee...... 44 4.1.4 Stakeholder involvement mechanisms ...... 44 4.2 REPORTING, REVIEW, MONITORING AND EVALUATION ...... 44 4.3 DISSEMINATION AND MAINSTREAMING OF PROJECT LEARNING ...... 45 4.3.1 Dissemination of project results ...... 45 4.3.2 Mainstreaming of project learning ...... 45 ANNEX 1. Profile of the executing agency ...... 46 ANNEX 2. Tasks and responsibilities of key experts provided by the executing agency ...... 48 ANNEX 3. Terms of reference of personnel, consultants and sub‐contracts funded by ITTO ...... 49 ANNEX 4. References ...... 52 ANNEX 5. Susceptibility of lesser‐known species ...... 54 ANNEX 6. Recommendations of ITTO Expert Panel ...... 58

PROJECT BRIEF

Forest resource utilization in Peru focuses mainly on primary forests in the Amazon Region. Forest harvesting is highly selective, with no more than 20 species comprising 90% of total production in the Department of Ucayali (MINAG, DGFFS, 2011). Residual primary forests have significant volumes of timber species of potential commercial value. Many of these species are not harvested due to some undesirable properties including limited resistance to decay caused by biological and non-biological agents. However, an adequate prevention and control program could ensure that roundwood and timer products are not affected by these agents and their utilization could contribute to the generation of wealth and permanent employment and to improved efficiency in timber forest production and productivity.

Furthermore, there is a lack of information in Peru on the use of wood preservatives under moist tropical conditions and on the wide range of biological deteriorating agents which act synergistically with non-biological deteriorating agents and threaten timber preservation. Thus, the project proposes to conduct field and laboratory research to assess treatment conditions and good practices for the prevention and control of biological and non-biological agents affecting roundwood and sawnwood.

In view of the above problems, the Forest Producers’ Association of Ucayali – APROFU, an organization that groups forest enterprises involved in roundwood production and primary and secondary timber processing, has led the initiative to develop this research proposal. The development objective of the project is to contribute to the sustainable development of the forest industry in the Department of Ucayali, while its specific objective is to develop and transfer knowledge on technical procedures for the prevention and control of biological and non- biological agents affecting timber durability in the harvesting and mechanical processing of timber resources in the Department of Ucayali. Its expected outcomes are: Two years after project completion, forest producers will have increased their current harvesting volume of 5m³/ha to more than 10m3/ha; One year after project completion, at least three (3) mechanical processing companies will be using the technologies developed by the project; Two years after project completion, at least five forest companies will have increased the profitability of their mechanical processing operations by at least 20%; Upon project completion, at least five companies will have reduced the volume of timber affected by biological and non-biological agents by 70%; Upon project completion, at least five (05) companies will have increased the harvesting of three (03) forest species of low natural durability by applying technical procedures for the prevention and control of biological agents; After the dissemination of project results, training and education, there will be professionals, technical staff, workers and forest operators trained in prevention and ongoing preservation treatments; Upon project completion, technical information will have been generated, validated and made available on an electronic platform for its application in roundwood and sawnwood of susceptible species at the national and international levels; The information generated will be applicable to other susceptible species and for other ecosystems, including in the departments of Madre de Dios, Junín, Loreto, etc., after making the necessary adjustments.

The project target area is the Department of Ucayali, which is located in the eastern section of the central forest region (Selva Central) of the country. It covers a total area of 110,831 km2 and is located between geographic coordinates 08º22’ latitude South and 74º34’ longitude West. Its capital city is Pucallpa, the country’s main sawnwood production center, situated at 154 m.a.s.l. and 842 km from the city of Lima, on the left bank of the Ucayali River. The project will work in the provinces of Coronel Portillo, Padre Abad and Atalaya.

The primary beneficiaries of the information generated by the project will be roundwood producers, primary and secondary timber processors, and timber transport operators, as well as the professional and technical staff of forest companies, government officers, and forest administration professionals and technicians. Secondary beneficiaries will include the scientific community, national professional and technicians, and companies and individuals trading goods and providing services. Tertiary beneficiaries are considered to be civil society at large, as it will benefit from the environmental services derived from sustainable forest management.

Intended project outputs are: Information generated on the prevention and control of biological and non-biological agents affecting roundwood and sawnwood; The knowledge of forest producers and professionals on prevention and control of biological and non-biological agents affecting roundwood and sawnwood has been strengthened; and Forest producers apply good practices for the prevention and control of biological and non-biological agents affecting roundwood and sawnwood.

In order to achieve project objectives, the following implementation approaches and methods will be used: participatory approach – the project will work in cooperation with all directly and indirectly related beneficiaries so as to provide information aimed at preventing the deterioration caused by biological and non-biological agents in roundwood and sawnwood, as well as increasing the shelf life of manufactured timber products that are not in direct contact with the ground; social equity and particularly cultural and gender equity approach – the project will ensure the inclusion of all social categories, in particular, indigenous communities, and will incorporate women concession holders and primary and secondary processors who are duly registered with the relevant producer 4 associations, with the Executive Forest and Wildlife Directorate of the Coronel Portillo and Padre Abad provinces and/or PRODUCE, or who have been identified through secondary sources. During the implementation of consultation, training and dissemination activities, the project will promote the strengthening of the participation of producer associations in future events, for institutional arrangements, for access to formal credit facilities and, in particular, for the establishment of consortiums aimed at dealing with national and export markets; synergies - the project will work in close cooperation with the Eco Industrial Park of Pucallpa, which groups many Pucallpa producers. The Chair and Vice-Chair of the Steering Committee will be provided by APROFU and APEMEPD, respectively. The Consultative Committee will be under the responsibility of the National University of Ucayali. The project will be institutionalized as part of the research program of the National University of Ucayali and will be aimed at continuing with the second stage of research into the management, industrialization and marketing of timber and non-timber forest products from residual primary forests. The project will also work in coordination and consultation with public institutions, private organizations and other projects so as to avoid the duplication of efforts and improve efficiency in the allocation of resources and the implementation of activities.

It is envisaged that the general management plans can be implemented to ensure environmental sustainability and that, at least partially, they can be financed from the additional income that will be derived from forest operations. Planned activities take into account the views of key stakeholders for the solution of problems. In addition, the project aims to capitalize on the experience and knowledge of the population in the research work to be carried out, as well as the traditional knowledge of indigenous communities. The participatory approach of the project gives project beneficiaries a sense of belonging, identifying them with the expected outputs. The project also takes into account the role of women in forest related activities, as it believes it is extremely important to adopt a gender- based approach for the implementation of research, training and dissemination activities. The capacity-building activities envisaged in the project will allow for the continued use of the new technologies introduced as part of the research activities implemented by the project. The field implementation of the knowledge acquired will be achieved through the training of forest beneficiaries, who will receive greater economic benefits from the forest, leading to greater investments, and thus ensuring the long-term sustainability of the project after its completion. The participation in regional forums will create a space for the exchange of views that must be taken into account by the regional authorities in the planning and development of sectoral policies and public investment programs.

The risks identified and defined as assumptions that must take place to ensure the successful implementation of the project are: The willingness of forest entrepreneurs, concession holders, producers, professionals, technical experts and students to actively participate in the project is maintained; Public institutions, concession holders, producers, professionals and technical experts are willing to share information; National environmental policies are maintained and updated; The forest concessions system continues as provided for in the current forest legislation and in the new forestry law and regulations that will come into force.

The budget requested from ITTO for the achievement of project objectives has been estimated at US$ 431,425 US$ 456,696 while the counterpart contribution of APROFU and other sources will be US$ 253,753 US$ 252,178. Thus, the overall budget required for this project is US$ 685,178 US$708,874.

LIST OF ABBREVIATIONS AND ACRONYMS

ABACO Asociación de Concesionarios de los Bosques de Atalaya (Forest Concessions’ Association of Atalaya) ACOFOPA Asociación de Concesionarios Forestales de Padre Abad (Forest Concessions Association of Padre Abad) AG Agriculture APEMEPD Asociación de Pequeños Empresarios Madereros en Madera Pre -Dimensionada (Association of Small Dimension Timber Enterprises) APROFU Asociación de Productores Forestales de Ucayali (Forest Producers’ Association of Ucayali) AWPA American Wood Preservers Association BASF Badische Anilin and Soda Fabrik BWPA British Wood Preserving Association CATIE Centro Agronómico Tropical de Investigación y Enseñanza (Center forTropical Agricultural Research and Education) CCA Chromated copper arsenate CCB Chromated copper DAR & GLOBAL WITNESS Global Witness member in Peru is the NGO DAR DAR Derecho Ambiente y Recursos Naturales (Law, Environment and Natural Resources) DEFFS Dirección Ejecutiva de Forestal y Fauna Silvestre (Executive Forest and Wildlife Directorate) DGFFS Dirección General Forestal y de Fauna Silvestre (General Forest and Wildlife Directorate) DNC Dirección Nacional de Desarrollo de Comercio Exterior (National Directorate for Foreign Trade Development) EAP Economically active population FAO United Nations Organization for Food and Agriculture GIS Geographic information system GMP General Management Plan INEI Instituto Nacional de Estadística e Informática (National Institute of Statistics and Information Technology) INRENA Instituto Nacional de Recursos Naturales (National Institute for Natural Resources) ITTO International Tropical Timber Organization MINAG Ministerio de Agricultura (Ministry of Agriculture) MINCETUR Ministerio de Comercio Exterior y Turismo (Ministry for Foreign Trade and Tourism) NC Native communities ORAU Organización Regional AIDESEP Ucayali (Regional AIDESEP Organization of Ucayali) PENX Plan Estratégico Nacional Exportador (National Strategic Exports Plan) PFR Plan Forestal Regional 2012 – 2017 (Regional Forest Plan 2012 – 2017) PRODUCE Ministerio de la Producción (Ministry for Production) SWOT Strengths, weaknesses, opportunities and threats UNIA Universidad Intercultural de la Amazonia Peruana (Intercultural University of the Peruvian Amazon Region) UNU Universidad Nacional de Ucayali (National University of Ucayali) YPO Yearly Plan of Operations

MAP OF PROJECT AREA

PART 1. PROJECT CONTEXT

1.1 ORIGIN

Forest resource utilization in Peru focuses mainly on primary forests in the Amazon Region. Forest harvesting is highly selective, with no more than 20 species comprising 90% of total production in the Department of Ucayali (MINAG, DGFFS, 2011). A large proportion of production forests are residual primary forests with significant volumes of timber species of potential commercial value. The former National Institute for Natural Resources (INRENA, 2002) estimated production volumes of at least 80 m3/ha, while Project 95/90 (F) “Forest Management in the Alexander Von Humboldt National Forest (ITTO-INRENA 1996) estimated, based on forest inventory data, that harvestable volumes could increase to 27 m3/ha if five blue-stain disease prone species were to be introduced: manchinga (Brosimun alicastum), zapote (Matisia cordata), machín zapote (Quararibea sp), camungo moena (Vochysia lomatophylla) and panguana (Brosimum utile).

The inventories carried out by forest concessions in Ucayali in 2009 revealed significant volumes of species that may have never been harvested due to their low natural durability, including huimba, pashaco, manchinga, almendro, loro micuna, renaco, ojé renaco, zapote, zapotillo, machín zapote, itahuba, caimitillo and cumala. Many species are harvested without taking any measures to prevent biological deterioration. Currently, the best-case scenario is an average harvested volume of no more than 4 m3/ha (Tropical Forest, 2012). In its interaction with forest producers, the National Forestry Chamber has taken note of increasing forest management costs, which jeopardizes sustainability levels. Thus, it is important to create income-generating alternatives to improve production efficiency and forest timber productivity.

Basic and industrial technological studies have been conducted in Peru to introduce new timber species into the market so as to increase the profitability of roundwood production and primary and secondary processing operations. It should be pointed out that projects PD 37/88 Rev.3 (I) “Industrial utilization of new forest species in Peru” and PD 512/08 Rev.2 (I) “Industrial utilization and marketing of ten potential timber species from secondary and residual primary forests” were implemented with technical and financial support from the International Tropical Timber Organization (ITTO). The former concluded that the roundwood and sawnwood of 15 timber species of low natural durability are prone to blue-stain disease, rotting and wood borer infestation.

Biological agents such as fungi or borers can lead to waste due to the damage caused in the wood. This can be prevented to a large extent through adequate wood preservation treatments, which are not commonly applied mainly because of a lack of awareness of the true severity of the damage caused. Thus, wood preservation is a significant factor in forest conservation. The long lifespan of timber, in particular, can substantially reduce the depletion of forest resources. Preservation also increases the profitability of forest logging, opening up markets for many species that otherwise would not be in demand. The possibility of using native species in significant numbers and volumes if adequately treated is an essential factor in the economic viability of harvested forest areas. Therefore, promoting wood preservation should be of concern not only to the timber industry but also to forest services.

The use of ongoing and prevention preservation treatments is currently limited. This is due to the limited availability of commercial wood preservatives in the market and to the significant environmental effects of those that are available. Another factor is the lack of trust in the effectiveness of these treatments as well as the lack of use specifications and restrictions for wood treatments in moist tropical areas, where effectiveness and efficiency are to a great extent influenced by rainfall and temperature conditions. In the SWOT analysis carried out prior to the development of this project proposal, forest producers indicated the following weaknesses of the sector: inadequate information on ongoing and prevention treatments under moist tropical conditions; limited financing for research; lack of technical assistance and training; and reduced harvested volumes in production forests due to low natural durability because of biological and non-biological deterioration agents.

1.2 RELEVANCE

1.2.1 Conformity with ITTO's objectives and priorities

The project is consistent with the following ITTA Objectives in particular: c). To contribute to the sustainable management of tropical forests, by directing the pressure of demand for timber resources towards new species that are currently limited by their susceptibility to deterioration, and by facilitating the restoration of logged-over primary forests and their enrichment through reforestation, as provided for in the current legislation, while at the same time maintaining the sustainability of original high-value species. The project will also help increase the number of species currently used and diversify the sustainable use of natural forests. d). To enhance the national capacity to implement sustainable production of timber products and their exports, using the abundant forest resources of managed secondary forests and managing selected, highly productive species. h) To promote increased and further processing of tropical timber from sustainable sources in producing member countries with a view to promoting their industrialization and thereby increasing their employment opportunities and non-traditional export earnings, which can be achieved by defining suitability for various uses.

Compliance with ITTO Action Plan

The project is related to the Committee on Forest Industry. It is framed in the context of the priorities for research, extension and human resource development. The proposed activities include: Support laboratory research on new species and products; Support industrial trials; and Support extension, training and dissemination programs through short technical courses targeting primary and secondary processing industries.

In addition to the areas covered by the technical committees, the project is consistent with cross- cutting actions such as:

1. Research and development and transfer of technology: The project will support research and development studies as well as activities aimed at improving efficient product processing and industrial utilization of increased volumes of resources.

2. Communication and outreach: A project strategy will be the dissemination of generated information among primary, secondary and tertiary stakeholders. An important project component will be awareness raising among the local population. The project will support the sharing of information, knowledge and technology to improve sustainable forest management, processing and utilization of products in accordance with ITTO priorities.

3. Capacity building: The project will contribute to the development of human resources by implementing capacity-building activities at the local and regional levels. Furthermore, the project will strengthen the capacities of forest-dependent local and indigenous communities so as to ensure the sustainable management of timber producing forests and the establishment of viable forest enterprises.

1.2.2 Relevance to the submitting country's policies

According to the Political Constitution of Peru, the State should promote sustainable development in the Amazon Region and set the conditions for the use of individual concessions. The Forestry Law regulates, controls and monitors the sustainable use and conservation of the country's forest and wildlife resources, aiming for compatibility between their use and the gradual increased valuation of forest environmental services, in consonance with the nation’s social, economic and environmental interests, current legislation and international agreements signed by Peru.

The Ministry of Foreign Trade and Tourism (MINCETUR), through its National Directorate for Foreign Trade Development (DNC), implements inter alia actions for the reactivation of national exports as defined in the National Strategic Exports Plan 2003-2013 (PENX). The National Strategic Exports Plan (PENX) includes the Timber Forest Sector Plan, whose specific objectives include technical

9 promotion of wood drying and preservation, as well as the development of standards to harmonize the quality of timber products in compliance with international standards. In this context, it is imperative to promote increased flows of Peruvian tropical timber in the international trade and establish basic drying and preservation standards, as well as good practice manuals on manufacturing processes. The overall objective is to promote the export supply of Peruvian tropical timber through the adoption and implementation of technical standards for national producers so as to ensure uniform high-quality export sawnwood.

The Regional Government of Ucayali, under the Ucayali Environmental Agenda, has prioritized the development of work plans for forest management, environmental services and research, supplemented with dissemination workshops and production of manuals. It has also proposed technological studies on new species, identification of high value-added products in the global market and the use of new technologies. None of these measures has so far been implemented basically because the participatory allocation of resources has mostly targeted social investment programs, resulting in a lack of resources for industrial technological research.

The Regional Forest Plan (Plan Forestal Regional – PFR) 2012-2017, developed in consultation with forest stakeholders in four provinces of the Department of Ucayali, coordinated by APROFU, financed by FAO and in the process of being approved by the Regional Government of Ucayali, has identified the lack of training, financing, technology transfer and effective enforcement of management instruments as limiting factors in the sustainable development of the forest sector. Furthermore, the PFR states that timber logging in the Department of Ucayali is focused on a limited number of commercial species without considering the totality of forest resources. Therefore, the technological study of new forest species is proposed, among other activities, to facilitate their introduction into the market.

A SWOT analysis has helped the project confirm that the low level of technical development and training are two of the main weaknesses of the forest sector, while the lack of social investment by the State is one of the major threats. One of the weaknesses identified is the lack of studies on wood preservation and drying. On the other hand, the wealth of renewable forest resources is one of its main strengths.

1.3 TARGET AREA

1.3.1 Geographic location

The area selected by the project is the department of Ucayali (see map) and includes two main localities in its area of influence:

Pucallpa, capital of the Ucayali Department - this is considered to be the country's major mechanical timber processing centre, with over 100 sawmills - situated 841 km from the capital (Lima), the main market and embarkation point for exports to Asia, Mexico and the United States, the country destinations for most Peruvian exports. This district has the disadvantage that primary production forests have been selectively logged and transport costs limit the production of commodity timbers; however, the project may encourage industrial activity.

Aguaytía, capital of the Province of Padre Abad: an area of emerging highly selective timber production, where two species are mainly used. This district has experimented with the production of fruit packaging for both domestic and export markets, and most timbers in the project are possibly suitable for packaging. The species used for packaging are of low natural durability, particularly against blue stain disease. The industry mainly uses a group of species that are commonly known as “pashaco”, and include Mimosaceae, Caesalpinaceae and Fabaceae species, of the Leguminosae family.

Villa Atalaya and Sepahua, are the capital cities of the provinces of Atalaya and Sepahua respectively. Traditionally, they are producers of high commercial value roundwood, including species such as mahogany, ishpingo, pumaquiro and cedar, which are river transported to the sawmills of Pucallpa, and the sawnwood then goes out to the national markets, basically Lima and the south of the country. Sawmills and secondary processing plants have been recently established in Villa Atalaya and the production from this center will be transported to the national markets via the Atalaya

Puerto Ocopa roadway, which is a shorter connection to the capital city of Lima and thus reduces transport costs.

PROJECT TARGET AREA

1.3.2 Social, cultural, economic and environmental aspects a) Social aspects

Seventy-four (74) percent of the population of approximately 500,000 in the Department of Ucayali lives in the capital city while the remainder is scattered over provinces, districts and hamlets. More than 60% of the population is in the 15 to 64 years-of-age group and the population growth rate is the highest in the country. The total poverty rate for the year 2007 was 32.50%. Approximately 27% of families are headed by women. Illiteracy rate among women is 6.4% i.e. twice as much as the male rate. Urban unemployment rates sit at 24% while in rural areas figures reach 48%. In 2008, by branch of economic activity, the main sources of employment for the Economically Active Population (EAP) were agriculture, cattle ranching, hunting, forestry and fishing (32.5%), followed by the commercial wholesale and retail sales sector (17.8%), other services (13.6%), manufacturing industries (9.8%), hospitality industry (8.0%) and transport and communications (8.0%) (INEI, 2009). One of the main sources of employment in the urban population is the group of activities related to the forest production chain. The report on the progress achieved towards sustainable forest management and ITTO’s Objective 2000 (2002-2008 assessment period) indicates that around 2,065,383 people depend on forests for their livelihood, 20,601 of whom (79% men - M, 21% women - W) are employed in forest operations, 142,332 (80% men - M, 20% women - W) are employed in the forest industry, 6,746 (77% men - M, 23% women - W) are engaged in indirect employment (transport, warehouses, planning) and finally 1,895,704 (50% men - M, 50% women - W) participate in subsistence activities (mainly rural populations living in forest areas along the coastline, the mountain ranges and particularly in tropical forest areas).

It should be emphasized that women’s involvement is particularly evident in forest management, especially in reforestation activities. Their participation in logging operations is limited to the preparation of food, while in mechanical or industrial processing, they are involved in joinery, assembly and quality control activities, although a limited number of women can also be seen as leaders of planning operations. Thus, this project will promote gender equity prioritizing the participation of women’s representatives from native

communities, population centers, concessions and companies, as well as the involvement of female professionals and technicians to lead production processes in mechanical timber processing plants. b) Cultural aspects

There are 15 ethnic groups in the Department of Ucayali, with a predominance of the Shipibo Conibo ethnic group. The indigenous population amounts to just over 30,000 inhabitants. It could be said that the culture in the Department of Ucayali is a mixture of that of the native population, derived from the ancestral culture of the indigenous peoples and that of the national migration populations, basically from the neighboring departments of Huanuco and Junin, based on agricultural economies, and the departments of Loreto and San Martin whose economies are mainly extraction-based. In view of this, they favor the deforestation of forest lands, one group to convert the Amazon forest areas into agricultural lands and the other group for highly selective commercial extractive activities leading to marked land-use changes.

These communities have important traditional knowledge to facilitate the compilation of information for the harvesting of community forests. For example, they have knowledge on timber durability against damaging biological agents, the influence of the moon in the formation of defects in roundwood etc. However, the communities need training for the introduction of new frequent and abundant species into their traditional production systems so as to increase the volume harvested per unit area.

Thus, during the information collection, prevention treatment assessment and knowledge transfer stages, resources will be made available to ensure the effective participation of male and female community leaders. c) Economic aspects

By 2011, the register of the Executive Forest and Wildlife Directorate (Dirección Ejecutiva Forestal y de Fauna Silvestre) listed 218 primary and secondary timber processing companies, where sawmilling industries are predominant: sawmills (34%) and resaw mills (31%). Over the past few years, there has been a progressive downturn in the extraction of timber resources. However, the latest production volumes recorded (435,621.32 m3 in 2010) are still higher than the volumes recorded years back (for example 1997, when the reported production level was 302,552 m3). Currently, the timber forest species of primary residual forests have no economic value and are only used occasionally at the local level in the construction sector or in the frames used in manual hauling of timber or for the river transport of high density roundwood through rafts. From 2004 to 2007, sawnwood production increased (reaching volumes of around 280,000 m3 per year) and then decreased to the same levels as 30 years ago (volumes of around 160,000 m3 annually). Some of the most prominent species in the timber industry include “tornillo” (Cedrelinga cataeniformis), “cachimbo” (cariniana sp) and “capirona” (Calycophyllum spruceanum), with average production volumes of 54,145.09 m3, 25,711.91 m3 and 18,818 m3 respectively for the period 2006 – 2010. d) Environmental aspects

The project will have a positive impact on the environment as it will improve forest management practices by increasing the sustainable production of timber products as well as contributing to maintain the environmental services provided by forest ecosystems, thus maximizing the carbon reserves that provide both benefits and livelihoods.

Diversified and adequate forest management, financed by additional income, will contribute to preserving the capacity of forests to generate environmental services and will provide economic incentives to make their management profitable.

There are also possible negative environmental impacts that could be generated by the project such as:

- Greater forest intervention without the implementation of a management plan could cause high deforestation rates, soil degradation, the destruction of natural wildlife habitats and the loss of genetic flora and fauna resources. In order to mitigate negative environmental impacts, the project plans to work with sensitized concessionaires who are implementing General Forest Management Plans or who have been sensitized through field work and/or training workshops on how to have a future vision in sustainable forest management.

Agreements will also be reached with competent forest authorities so as to build and strengthen capacities for awareness-raising among officers and concessionaires on the adequate administration of the national forest estate as well as the significance of forest management and its contribution to the conservation of forest ecosystems in general and production forests in particular.

- The use of chemicals, even those of low toxicity, could affect the chemical composition of soils and water bodies, and a good timber preservative by definition should not increase the danger or be more difficult to manage than other chemicals used by the industry such as oil, caustic soda, lubricants, sodium hypochlorite, etc. However, in order to mitigate this risk, the project plans to minimize the loss of timber treatment solution, design systems to eliminate containers and packaging, and adequately equip concession and mechanical processing mill personnel so as to prevent any side effects.

In addition, the project will select biodegradable products such as natural and synthetic piretroids; low-toxicity products such as synthetic organic chemicals derived from triazole groups; products approved by the Environmental Protection Agency (EPA – USA) and/or the National Service for Agrarian Health – SENASA, to verify the toxicity and side effects of products and study their properties, including steam pressure, chemical stability, thermal decomposition, synergistic solvent effects, etc.

The training on industrial safety should focus on basic aspects of the use and management of timber preservatives, including transport, storage, solid waste management, liquid waste management and recycling, disposal of left-over solutions, containers and packaging.

1.4 EXPECTED OUTCOMES AT PROJECT COMPLETION

The following outcomes are expected at project completion:

- Two years after project completion, forest producers will have increased their current harvesting volume of 5m³/ha to more than 10 at least 7m3/ha.

- One year after project completion, at least three (3) mechanical processing companies will be using the technologies developed by the project.

- Two years after project completion, at least five forest companies will have increased the profitability of their mechanical processing operations by at least 20 10%.

- Upon project completion, at least five companies will have reduced the volume of timber affected by biological and non-biological agents by 70 50%.

- Upon project completion, at least five (05) companies will have increased the harvesting of three (03) forest species of low natural durability by 15% through the use of technical procedures for the prevention and control of biological agents.

- After the dissemination of project results, training and education, there will be professionals, technical staff, workers and forest operators trained in prevention and ongoing preservation treatments.

- Upon project completion, technical information will have been generated, validated and made available on an electronic platform for its application in roundwood and sawnwood of susceptible species at the national and international levels.

- The information generated will be applicable to other susceptible species and for other ecosystems, including in the departments of Madre de Dios, Junín, Loreto, etc., after making the necessary adjustments.

Furthermore, the UNU will have the equipment required to continue working on similar studies and on new species, particularly treatments based on the diffusion of environmentally friendly boron compounds, thus promoting the generation of technical and scientific knowledge and social development in harmony with the environment. The income of each concession generated from the harvesting of forest resources will adequately cover, at least in part, the costs of forest management. The State, through the collection of stumpage or forest fees, will have a permanent source of revenue, thus ensuring that the competent public administration body has the financial resources required in a timely manner.

PART 2. PROJECT RATIONALE AND OBJECTIVES

2.1 RATIONALE

Natural timber durability is a technical property that is directly related to the shelf life of timber products from its roundwood stage to its end use. In general terms, it is a measure of the ability of timber to resist decay caused by biological and non-biological agents. Durability is also related to the comparative costs of timber when considering the selection of alternative materials. Selective logging has prioritized the harvesting of timber species with high natural durability such as cedar, tornillo, quinilla, shihuahuaco, capirona, caoba, ishpingo etc., as well as some treated and air dried species of low natural durability that are essential for the industry, such as catahua (Hura crepitans) for formwork, lupuna (Ceiba pentandra) for plywood panels and Virola sp. to replace mahogany exports for low cost furniture and moldings. Many timber species that are found in large volumes in production forests do not have presence in markets due to inter alia their low natural ability to resist one or more biological and non-biological agents that cause deterioration. This situation could be reversed if technological packages for the preservation treatment of timber were available and good management practices for the prevention of timber deterioration throughout the different mechanical processing stages up to the production of the end-products were established.

Natural timber durability is a technological property that determines, together with other technological properties, its use suitability. Natural timber durability is an extremely variable property. It depends on the provenance species, their growth conditions (site quality), tree age, provenance area, the sapwood – heartwood ratio, springwood vs. summerwood, and timber conditions such as the presence of wood deteriorating agents, relative temperature and humidity, rainfall levels, maintenance practices, etc. Many tropical species are resistant to attacks from fungi and xylophagous insects due to the presence of natural wood preservation substances that have toxic or repellant effects. According to Gonzáles Flores (1970), these substances are produced in standing trees through complex chemical reactions that take place during the formation of the heartwood from the sapwood, and are derived from shikimic acid, cinnamic acid, caffeic acid, etc. Trujillo (1985) also found a relationship between the polyphenol content of hydro-soluble extracts from five timber species and the degree of durability tested in the laboratory with pure cultures of xylophagous fungi. Cartwright (1962) believes that these substances enzymatically block bio-chemical reactions that are of vital importance for unicellular organisms such as rot fungi and some protozoa that live in the digestive tracts of cellulolytic insects. Gonzáles (1974) states that given the number of intervening factors, the inter-relationships among them and the limited research work carried out on timber uses where the wood is exposed to great biological risks, it is not possible to classify different timber species according to their degree of natural durability, but rather only in very extensive and non- practical groups. FONGOUROSSE (1978) states that at low altitudes there are no timber species that have good natural durability if they are in direct contact with the soil. This has been corroborated by the research of Guevara and Lluncor (1994), in natural durability tests carried out in a stake cemetery in Pucallpa, where they found that 27 timber species did not last more than three years when they were exposed to attacks from fungi and xylophagous insects.

Timber preservation is not common practice in Peru. In the 1980s, both national and imported commercial preservation products were sold on the market. The most common products for preventive wood treatment were stain-repellants and/or insecticides, using organochlorinated compounds from the “dirty dozen” (pentachlorophenol, sodium pentachlorophenate, hexachlorocyclohexane, etc.) which are now banned internationally. In some cases these wood treatments were applied using low concentration solutions to reduce costs, but the results were not satisfactory. For the permanent treatment of wood, chemicals were applied to the glue used to hold together the boards of plywood and tripak; the slats were treated in vacuum/pressure autoclaves with CCA and CCB salts. Poles for overhead electrical and telephone lines were also treated in vacuum/pressure autoclaves with CCA salts and by the sap displacement method, or Boucherie preservation method, with CCB salts. Timber railroad sleepers were also treated in vacuum/pressure autoclaves with CCA and CCB salts. Unfortunately the treatment applied to high quality timber sleepers did not have sufficient retention and penetration of the preservation agent to ensure long-term protection or to justify the additional costs of treatment, so this practice was discontinued. The poles that were treated using the sap displacement method also gave unfavorable results as no research was carried out on the concentration of the treatment solution and on sufficient application times to ensure retention in accordance with the technical standards for products in direct contact with the ground. The above factors undermined consumer confidence in relation to the preservation of timber and gradually these practices were abandoned. The companies that were engaged in the marketing of preservation agents and that provided wood treatment services turned to other pursuits. Even the companies representing imported products for this market, including Bayer Chemicals, the German company BASF and the Peruvian company HOECHST Peruana SA, stopped importing preservation agents and other inputs, and national producers do not have the capacity to import directly.

The promotion of wood preservation must be based on research actions that will determine the treatment conditions required to ensure the success of avoiding biological deterioration, and treatment costs must be compatible with production costs of the frequent and abundant species found in production forests. The increase in production volumes could absorb the additional costs of forest management activities, thus ensuring forest sustainability.

The project proposes to validate the known technologies that are applied without taking into consideration the peculiarities of moist tropical forests i.e. the influence of rainfall levels, temperature, and the incidence of pests and diseases acting synergistically. Furthermore, the project will identify good roundwood and sawnwood management practices that could assist in the protection of timber. These practices will be based on ecological and physiological principles and must be incorporated into production systems without requiring investments in further inputs or equipment, with the only requirements being awareness-raising and training. Furthermore, these practices should be identified in a participatory manner so as to ensure their adoption by timber producers. The non-execution or deferral of the project could entail serious consequences. New areas of virgin primary forest would continue to be opened, selectively logging and depleting residual primary forests with great biomass and environmental services production potential, which could be turned into agricultural exploitations for two or three years and then into unproductive purmas (secondary forests) covered by scrub formations of no economic value except as an indicator and example of highly degraded soils.

In Peru, farmers have access to fungicide and insecticide products for agricultural use through both national (DROKASA, COMISESA, QUIMINPER, etc.) and international (FARMAGRO, INKABOR, BAYER QUIMICA, HOECHST, etc.) companies. These companies provide technical assistance for farmers based on the research they have carried out. However, they have not conducted sufficient industrial studies or validation exercises for the application of these products to timber in moist tropical forest areas.

2.1.1 Institutional set-up and organizational issues

The General Forest and Wildlife Directorate (DGFFS), which replace the former National Institute for Natural Resources (INRENA), is the agency responsible for the administration of forest resources at the national level. To this end, it has decentralized units in the four provinces of the Department of Ucayali under the jurisdiction of the Economic Development Management Office of the Regional Government, which has incorporated the Executive Forest and Wildlife Directorate with administrative autonomy according to Ministerial Resolution No. 019-2010-AG of 11 March 2010.

DAR & GLOBAL WITNESSS, 2009, has reviewed the timber production chain in Peru, noting that the three core components of the chain – Forest, Industry and Trade – are under the responsibility of different ministries: Agriculture, Environment, Production and Foreign Trade, and each of these ministries has its own objectives with forest activities being the last of their priorities.

Figure 1: Sectoral competences and responsibilities

Chain stage Sectoral responsibility Competences

Ministry of Agriculture Authorizes and regulates forest logging Forest DGFFS

Natural Plantation Head of Ministers Supervises adequate logging practices Council - OSINFOR

‐ Monitors transport flows Industry Ministry of Agriculture ‐ Records and supervises processing plants DGFFS

Primary Secondary Ministry of Production ‐ Promotes technological improvement processing processing ‐ Promotes industrial competitiveness

Trade Monitors forest trade through the issue of CITES Ministry of Agriculture DGFFS export certificates

Ministry of Foreign Domestic market Foreign Market Trade and Tourism Promotes timber products trade

The following institutions will participate in the project:

The main role of DGFFS and its decentralized office in the Department of Ucayali is to ensure the sustainable management and harvesting of forest resources in accordance with environmental and regulatory standards in the country.

APROFU, the project executing agency has extensive experience in the formulation of management instruments and in the management and formulation of technological innovation projects. Given the nature of this project, APROFU will implement project activities with the participation of representatives of three of its five committees (Concessions Committee, Industry Committee and Secondary Processing Committee).

ACOFOPA is an agency created at the peak of the forest concessions process (2002); it groups forest concessions in the province of Padre Abad and will assist in the implementation of activities to be carried out in that province.

ABACO groups forest concessions from both Villa Atalaya and Sepahua in the province of Atalaya; a number of its members are also members of APROFU; it will assist in the implementation of activities to be carried out in that province.

APEMEPD coordinates the Eco-Industrial Park Project in the province of Coronel Portillo and together with APROFU, it participates in the Executive Council of that project, which will contribute to the timber manufacturing trials to be implemented.

2.1.2 Stakeholder analysis

Stakeholders Problems, needs, Characteristics Potential Involvement in the project Group interests PRIMARY STAKEHOLDERS Male and Responsible for the Ensure the Knowledge about the Primary project female forest sustainable profitability of forest deterioration beneficiaries, who will concession management of the harvesting susceptibility of participate in research and holders areas under operations through commercial and validation of prevention concession the supply of potentially treatments in their roundwood to the commercial timber concessions and in the industry implementation of good roundwood management practices Native Responsible for Ensure the Innate and Project primary communities the sustainable profitability of ancestral beneficiaries, who will forest forest harvesting knowledge about participate in research management of operations the deterioration and validation of authorized areas through the susceptibility of prevention treatments in supply of commercial and research areas as well as roundwood potentially in the application of good commercial timber management practices for roundwood. Male and Responsible for the Ensure the Knowledge about the Primary project female production of profitability of the deterioration beneficiaries, who will primary timber commercial marketing of quality susceptibility of participate in research and processors dimension timber sawnwood commercial and validation of prevention with reduced value potentially treatments in their added commercial timber processing plants and in the implementation of good roundwood management practices

Stakeholders Problems, needs, Characteristics Potential Involvement in the project Group interests Male and Responsible for the Ensure profitability Knowledge about the Primary project female production of high in the production deterioration beneficiaries, who will secondary value-added timber and marketing of susceptibility of participate in research and timber products long-lifespan timber commercial and validation of prevention processors products potentially treatments in their commercial timber processing plants and in the implementation of good sawnwood management practices SECONDARY STAKEHOLDERS Associations They will participate Generate Producers identified, Secondary project of male and for the benefit of appropriate organized and beneficiaries that will female their members conditions for the associated participate in dissemination producers of development of and training activities roundwood, production activities sawnwood and processed timber products. Local, regional They promote Generate Legal and technical Secondary project and national sustainable forest appropriate competence in the beneficiaries that will forest management conditions for management of participate in the administration sustainable forest concessions dissemination of project services management and outputs in the DEFFS of the the development of Department of Ucayali. production activities PRODUCE They promote the Secondary project development of beneficiaries that will regional enterprises participate in the dissemination of project outputs in the DEFFS of the Department of Ucayali. TERTIARY STAKEHOLDERS Education and Mandated by the Secondary project research national beneficiaries that will institutions government to participate in the implement research dissemination of project and technology outputs in educational transfer activities institutions

2.1.3 Problem analysis

Problem Tree

INCIPIENT SUSTAINABLE FOREST DEVELOPMENT IN THE DEPARTMENT OF UCAYALI

High pressure on timber species of greater natural durability and/or less Low profitability of the forest vulnerable to non-biological agents industry

Limited use of timber species with low natural Lack of trust in the effectiveness of Low timber yield caused by durability and/or preventive and control treatments biological and non-biological vulnerable to biological agents and non-biological agents

Limited use of technical procedures for the prevention and control of biological and non-biological agents in the harvesting and mechanical processing of timber resources in the Department of Ucayali

Limited information on Limited implementation of good prevention and ongoing Limited technical knowledge on the practices for the prevention and control treatments for prevention and control of biological and control of biological and non- roundwood and sawnwood non-biological agents in the timber biological agents in roundwood preservation production chain and sawnwood

Limited availability of Limited resources for training in Poor technical assistance in

roundwood and sawnwood prevention and ongoing control the application of

preservation techniques wood treatments preventive wood treatments

in roundwood and

sawnwood

Limited basic technological Limited resources for the information on the Poor technical assistance in widespread publication of diffusion of boron-based the application of ongoing prevention and ongoing control wood preservatives for the control treatments in wood treatments control of wood damaging roundwood and sawnwood biological agents

Limited knowledge on moon phase influence on sap dynamics and incidence of pathogenic agent attacks during tree felling

Limited specifications and restrictions for the use of Limited knowledge on the chemical preservatives to influence of directional felling on treat timber in moist the attack of biological agents and tropical areas the incidence of non-biological factors during tree felling

2.1.4 Logical framework matrix

INTERVENTION MEASURABLE INDICATORS MEANS OF VERIFICATION KEY ASSUMPTIONS STRATEGY

 Two years after project completion, forest Production statistics from the producers have increased the current Timber processing Forest and Wildlife harvested volume of 5m³/ha to more than industries are willing to Directorate - MINAG Development objective: 10 at least 7m3/ha. participate in studies and

Contribute to the  One year after project completion, at least 3 adopt project outcomes. Reports from technical forest sustainable development mechanical processing industries are using administrations of the of forest harvesting in the the technologies developed by the project Timber processing provinces of Coronel Portillo Department of Ucayali. industries and public  Two years after project completion, at least and Padre Abad institutions are willing to 5 forest companies have increased the share information. profitability of their mechanical processing Industry reports operations by at least 20 10%.

 Upon project completion, at least five companies have decreased the volume of Project monitoring reports timber affected by biological and non- Specific objective: Company reports biological agents by 70 50%. Develop and transfer .  Upon project completion, at least 5 knowledge on technical companies have increased the harvesting procedures for the Consultancy reports of 3 forest species of low natural durability prevention and control of Forest transport waybills by 15% through the application of technical Timber processing biological and non- procedures for the prevention and control of industries are willing to biological agents affecting biological agents. participate in studies and timber durability in forest Upon project completion, at least 100 forest adopt project outcomes. harvesting and processing  Technical report producers (harvesting and processing) and of timber forest resources Training modules 50 professionals have been trained in the in the Department of Evaluation sheets prevention and control of biological and Ucayali Photographic records non-biological agents affecting timber and List of participants the proper use of preservatives. Evaluation forms  Upon project completion, at least 100 university and technology institute students have been informed on project outcomes.  Upon project completion, at least 03 timber species of low natural durability have been subject to 02 validated studies. 01 Technical report roundwood prevention treatment and 01 Timber processing Six studies on three species OUTPUT 1: sawnwood preservation treatment industries are willing to

Information generated on developed. participate in studies and the prevention and control  Basic research on the application of boron- adopt project outcomes. Technical report of biological and non- based preservatives has been published in biological agents affecting the middle of the project implementation Reports and agreements roundwood and period. Trial results are positive. sawnwood.  Upon project completion, a study has been implemented on specifications and Technical report restrictions for the use of chemical preservatives in wood treatments in moist tropical areas.

Producers are willing to attend the training  Upon project completion, at least 100 workshops. producers have been trained on adequate

tree felling seasons, phytosanitary

conditions for roundwood and sawnwood

storage, control treatments for biological Technical report agents, and adequate use of preservatives Training modules for at least 03 timber species of low natural Evaluation forms durability. Attendance list  Upon project completion two outcome Photographic records dissemination sessions have been

organized.

OUTPUT 2:  Upon project completion, a preserved The knowledge of forest timber production guide has been producers and produced. Professionals are willing professionals on  Upon project completion, at least 50 to attend the training prevention and control of professionals have been trained on workshops. biological and non- prevention and control treatments for at biological agents affecting least 03 timber species of low natural roundwood and sawnwood durability. has been strengthened.  Upon project completion, 16 training and knowledge transfer workshops have been Willingness of implemented on prevention and control of participants. biological and non-biological agents affecting roundwood and sawnwood.  Half way through the project implementation period, 01 study has been Availability of implemented on moon phase influence on Technical report based on information, positive trial biological agent attacks during tree felling. results obtained results, producers’  Half way through the project willingness to cooperate. implementation period, 01 study has been implemented on the impact of directional felling on natural timber durability.

 Upon project completion, at least 05 forest producers have received technical assistance in the implementation of good OUTPUT 3: practices (directional felling, moon phase, Forest producers apply preservation, among others) for the correct Technical assistance reports good practices for the use of prevention and ongoing control containing records of prevention and control of treatments of biological and non-biological assistance provided in the field Producers are interested biological and non- agents affecting timber durability. and in processing plants. in applying prevention biological agents affecting  Half way through the project Manuals on adequate and control procedures. roundwood and implementation project, 02 participatory prevention and control sawnwood. workshops have been implemented for the treatments for each company. identification of good practices of prevention of biological and non-biological deterioration of timber – 01 in Pucallpa and 01 in Aguaytía.

2.2 OBJECTIVES

Objectives Tree

Contribute to the sustainable development of the forest industry in the Department of Ucayali

Increase the profitability of timber Reduce the pressure on species of greater natural durability forest resources in the Department of Ucayali

Increase the use of forest Increase the use and application of Reduce roundwood and species of low natural biological and non-biological agent sawnwood waste durability prevention and control treatments

Develop and transfer knowledge on technical procedures for the prevention and control of biological and non- biological agents affecting timber durability in the harvesting and mechanical processing of timber resources in the Department of Ucayali

Information generated on Technical knowledge strengthened for the Implementation of good

prevention and ongoing prevention and control of biological and non- practices for the prevention roundwood and sawnwood biological agents affecting roundwood and and control of biological and

preservation treatments. sawnwood. non-biological agents

affecting roundwood and

sawnwood.

Gathering of Training on ongoing and prevention Provision of technical information on treatments for roundwood and sawnwood assistance on prevention roundwood and of biological and non- sawnwood preservation biological agents. techni ques

Basic technological Sufficient resources for the widespread Provision of technical research on the publication of prevention and ongoing assistance on control of diffusion of boron- wood treatments. biological and non- based preservatives for biological agents. the control of biological agents affecting sawnwood.

Relevant knowledge on moon phase

influence on the incidence of biological

Outlining of agent attacks during tree felling. specifications and restrictions for the use of chemical preservatives in the treatment of wood in

moist tropical areas. Adequate knowledge on the impact of

directional felling on natural timber

durability.

2.2.1 Development objective and impact indicators

Contribute to the sustainable development of forest harvesting through the introduction of abundant production forest species based on technological studies on use suitability and low natural durability.

Long-term impact indicators are: - Two years after project completion, forest producers have increased the current harvested volume of 5m³/ha to more than 10 at least 7m3/ha. - One year after project completion, at least 3 mechanical processing industries are using the technologies developed by the project. - Two years after project completion, at least 5 forest companies have increased the profitability of their mechanical processing operations by at least 20 10%.

2.2.2 Specific objective and outcome indicators

The project seeks to achieve the following specific objective:

Develop and transfer knowledge on technical procedures for the prevention and control of biological and non-biological agents affecting timber durability in forest harvesting and processing of timber forest resources in the Department of Ucayali.

Outcome indicators are: - Upon project completion, at least five companies have decreased the volume of timber affected by biological and non-biological agents by 70 50%. - Upon project completion, at least 5 companies have increased the harvesting of 3 forest species of low natural durability by 15% through the application of technical procedures for the prevention and control of biological agents. - After the dissemination of results, training and education, there are professionals, technicians, workers and forest operators trained in prevention and ongoing preservation treatments. - Upon project completion, technical information has been generated, validated and made available on an electronic platform for its application in roundwood and sawnwood of susceptible species at the national and international levels. - The information generated can be applied to other susceptible species and other ecosystems, including in the departments of Madre de Dios, Junín, Loreto, etc., after making the necessary adjustments.

PART 3. DESCRIPTION OF PROJECT INTERVENTIONS

3.1 OUTPUTS AND ACTIVITIES

3.1.1 Outputs

Output 1: Information generated on prevention and ongoing roundwood and sawnwood preservation treatments for the control of biological agents.

Output 2: The knowledge of forest producers and professionals on prevention and control of biological and non-biological agents affecting roundwood and sawnwood has been strengthened.

Output 3: Forest producers apply good practices for the prevention and control of biological and non- biological agents affecting roundwood and sawnwood.

3.1.2 Activities

Activity 1.1 Gathering of technical and scientific information

A specialized consultant will gather information on products and processes through consultations with fungicide, insecticide, adhesive and dispersant marketing companies. Specialized libraries of national universities, research centers and internet will also be consulted. It is important to gather information on effective products to combat biological degrading agents expected to be found in moist tropical areas. It is also important to identify side effects and environmental impacts of the use of chemicals. Other factors to be considered are price and reliability of supplies.

Activity 1.2 Participatory workshop for the selection of species based on demand according to forest statistics and producers’ feedback in Pucallpa and Aguaytía

A consultation and information-sharing workshop will be organized with the participation of concession holders, male and female community leaders, primary and secondary processors, professionals, researchers, university and technological institute teachers, and officers of the Executive Forest and Wildlife Directorate of the provinces of Coronel Portillo and Padre Abad. A participatory approach will be used to take into account the experience of forest loggers, concessionaires and community leaders, forest inventory data submitted by concession holders for YPO approval over the last three years and forest producers’ preferences, as well as technical and scientific views of professionals, researchers and teachers. To ensure the necessary impact of the study, the timber species to be selected should be frequently found in abundant quantities in remaining primary forests and should have been subject to comprehensive technological reviews to determine their use suitability. Other factors to be taken into consideration are stem form, average phytosanitary status, defects and traditional uses of species, in particular their timber.

Activity 1.3 Gathering of technical background information on the use of boron-based preservatives in manufactured timber products

A specialized consultant will gather information on boron-based preservatives and diffusion processes for broadleaved species and will consult companies marketing nationally produced and imported boron compounds. Specialized libraries of national universities, research centers and internet will also be consulted, and information sharing will be promoted with international research and teaching institutions, especially from moist tropical areas, including the Center for Tropical Agricultural Research and Education (CATIE), the University of the Andes (Merida, Venezuela), the Institute of Technology of Costa Rica, the Autonomous University of Chapingo (Mexico), the University of Technology of Pereira (Colombia), and the Polytechnic University of Madrid, among others. Side effects and environmental impacts of the use of boron-based compounds will be assessed, as well as their price and reliability of supply.

Activity 1.4 Assessment of conditions for boron salt diffusion treatment of timber products of high moisture content

Diffusion treatment will be applied to final dimension timber pieces of high moisture content. This procedure is based on the movement of chemicals of low atomic weight in aqueous solutions; it is suitable for effectively preserving all types of timber species, including those resistant to the most efficient methods such as vacuum/pressure cycle and hot/cold soaking. Full wood penetration will depend on diffusion time and retention is regulated through treatment concentration; both conditions need to be researched for each timber and each piece cut. This is a low-cost simple procedure that does not require equipment and machinery and only requires 24 boron compounds, boric acid and boron salts to regulate pH, reduce undesirable corrosion and improve solubility. Borates are more soluble than boric acid. As a general rule, the treatment solution is prepared in hot water as these compounds are not affected by high temperatures.

Concentration variables of solutions and diffusion time will be tested in rough sawn timber of 1/2, 3/4 and 1” thickness, which are dimensions commonly used in building carpentry and interior and exterior paneling. The information gathered from reference literature on timber of similar densities will be validated. Solid retention will be identified according to AWPA A-5 specifications using an atomic absorption spectrophotometer. Depth and penetration type will be assessed through colorimetric testing using specific reagents for boron according to Peruvian Technical Standard 251.026.

Activity 1.5 Treatment trials on roundwood at the forest site and timber yard using chemical preservatives to determine the most suitable concentration

Roundwood will be treated with selected anti-stain fungicide and/or insecticide preservatives to be applied by spray systems. If necessary, dispersant and/or adhesive additives will be added as these are low-cost and low- toxicity chemicals commonly used in agricultural production. The treatment should be applied to the entire log, including cross-cutting sections and surrounding area. The operator should be trained for safety purposes and to avoid treatment solution waste. Operators will be equipped with rubber aprons, gloves and masks, especially when using organic solvents or emulsions. Good practices will be applied in the disposal of containers and packaging of chemicals.

The trials will be conducted in the forest concessions identified during the workshop. Selected producers should be receptive, cooperative, and able to provide the necessary facilities for data validation and subsequently for the training of other producers through participatory workshops.

The results obtained will help determine treatment conditions, in particular, mode of application and treatment solution concentration; in some cases, the solvent can act synergically and improve effectiveness, for example, aliphatic solvents such as diesel, which is recommended to increase resistance to leaching caused by rainfall and friction caused by non-mechanical hauling, a commonly used practice in production forests in Ucayali and for low density timber and/or small logs. This is determined by non-mechanized producers on the basis of their manual hauling capacity.

To facilitate the implementation of this activity and efficient execution of training events, the purchase of two vessels has been included in the budget: a canoe to cover long distances and a boat for short distances and access to secondary and tertiary rivers during the dry season, as well as motors, headlight and battery, and contracts for driver and assistant.

Activity 1.6 Treatment trials on sawnwood at the mill site using chemical preservatives to determine the most suitable concentration

Sawnwood will be treated with selected anti-stain fungicide and/or insecticide preservatives to be applied by momentary immersion. If necessary, dispersant and/or adhesive additives will be added as these are low-cost and low-toxicity chemicals. The operator should be trained for safety purposes and to avoid treatment solution waste. Operators will be equipped with rubber aprons, gloves and masks, especially when using organic solvents or emulsions. Treated wood will be stacked in horizontal piles with and without separators or in sawhorses depending on timber properties, particularly radial and tangential shrinkage. Separators will be used to show their impact on preservative treatment effectiveness and reduction of wood moisture content, which reduces weight and transport and handling costs. Good practices will be applied in the disposal of containers and packaging of chemicals.

The results obtained will help determine treatment conditions, in particular, treatment solution concentration; in some cases, the solvent can act synergically and improve effectiveness, for example, aliphatic solvents such as diesel, which is recommended to increase resistance to leaching caused by rainfall, especially when the timber is loaded without cover, which is a common practice for timber in transit to be simply marketed as commercial dimension timber with high moisture content. According to official statistics, more than 90% of sawnwood is sent under these conditions to domestic markets as secondary processing is carried out in other regions of the country, particularly Lima and other cities of the coastal and highlands regions.

Activity 1.7 Assessment of fungicide effectiveness in laboratory tests according to AWPA M-1 and M-5 standards

These standard tests are carried out under laboratory conditions in order to assess wood resistance to pure cultures of xylophagous fungi, which are significant and frequent decay agents of wood in moist tropical conditions. These tests can also be used to determine fungicide retention of new commercial preservatives.

The American Wood Preservers Association – AWPA and the British Wood Preserving Association – BWPA have published many proceedings of congresses and annual meetings with research results on new products introduced into the market to replace other preservatives of high toxicity and undesirable environmental effects. There is information available on minimal solid retention levels of commercial preservatives as a benchmark for these trials.

Activity 2.1 Organization of eight training and technology transfer workshops on prevention and ongoing treatments for roundwood and sawnwood

The purpose of these workshops is to train concession holders, community members, operators, technicians and professionals in the management of solid and solution preservatives and their application to roundwood and sawnwood. The workshops will also include the presentation of results obtained in the application of good practices to prevent timber decay from biological agents such as bark borer infestation, cracks and splits caused by tree felling during full-moon periods, incidence of blue stain disease and wood borers due to the stacking of logs in the forest during relatively long periods; cracks and splits caused in logs stacked in the timber yard without cover and without cleaning the plant material, etc.

Furthermore, the purpose of these workshops is to train primary and secondary processors in the handling of solid and solution preservatives and their application to roundwood and sawnwood, as well as boron-based ongoing treatments on sawnwood with high moisture content. The workshops will also include presentations and discussions of results obtained on biological and non-biological agents, such as bark borer infestation, cracks and splits caused by tree felling during full-moon periods, incidence of blue stain disease and wood borers due to the stacking of logs in the forest during relatively long periods; cracks and splits caused in logs stacked in the timber yard without cover, etc. The workshops will be held in Pucallpa, Contamana, Aguaytía, San Alejandro, Villa Atalaya and Sepahua.

Activity 2.2 Development of dissemination, training and technical assistance materials

These dissemination documents will be distributed to forest producers, concession holders, community members, operators, technicians and professionals as permanent reference documents. The technical manual will contain detailed validated information supplemented with additional information; it will also be distributed in digital format. The video will be used for mass dissemination at outreach events.

Activity 2.3 Organization of two dissemination conferences for professionals, students and the scientific community in general

These dissemination conferences will be addressed to professionals, researchers, teachers, university and technological institute students, and public officers. The conferences will be held at the Faculty of Forestry and Environmental Sciences of the National University of Ucayali and at the Faculty of Engineering of the Intercultural University of the Peruvian Amazon Region as a strategy to ensure project sustainability.

Activity 2.4 Gathering of relevant information on moon phase influence on the attack of biological agents during tree felling

A specialized consultant will gather technical and scientific support information available on moon phase influence on the attacks of biological agents during tree felling and will prepare training material as background documentation for the organization of a discussion workshop with the participation of forest producers, concession holders, community members, professionals, officers, researchers and university teachers of the agricultural sector in order to outline practices to be applied during critical moon-phase periods in relation to plant sap dynamics and photosynthesis which becomes intensified from the first quarter to the full moon phase.

Practices will be identified using a participatory approach and will be validated. This information, together with the data on the sawmilling yield of the roundwood under study and the statistical analysis of mean tests, will indicate if there are significant differences between logs produced in different phases of the moon cycle. The information generated will be transferred to producers during training workshops.

Activity 2.5 Gathering of adequate information on the influence of directional felling on natural timber durability

Directional felling is aimed at reducing the overall impact of forest logging; a side effect of this technique is to reduce mechanical damage caused by felling. This is not a practice commonly used in the Department of Ucayali even though the operations are often focused on dominant and codominant trees of large diameter and height (lupuna, huimba, shihuahuaco, ana caspi, tornillo, etc.). The purpose of this validation activity is to show forest producers, in particular, and other project beneficiaries, in general, the influence of directional felling on sawmilling yield, which may result in a reduction of operational costs. As a general rule, felling operations are carried out by untrained workers using inadequate equipment. This leads to damage and destruction of remaining trees and the land, minimizes the volume of harvestable timber and reduces log value, hinders harvesting activities and increases the risk of accidents.

Activity 3.1 Participatory training workshop on good practices in the prevention of biological and non- biological wood decay agents in Pucallpa and Aguaytía

This workshop will promote the sharing of experiences so as to identify proposals for good practices to prevent timber decay caused by biological and non-biological agents, such as bark borer infestation, cracks and splits caused by tree felling during full-moon periods, incidence of blue stain disease and wood borers due to the stacking of logs in the forest during relatively long periods; cracks and splits caused in logs stacked in the timber yard without cover, etc. Based on ecology and physiology principles, good practices for biological decay prevention will be identified as complementary treatment to the use of commercial preservatives.

Blue stain disease and bark borers, often found in roundwood, can be controlled through the adequate organization of hauling immediately after tree felling.

Blue stain disease and basidiomycete fungi found in roundwood and sawnwood with high moisture content can be prevented by maintaining timber yards free of vegetation and organic waste and avoiding water accumulation.

Core cracks and splits can be reduced by stacking roundwood and sawnwood under cover and avoiding direct solar radiation on the heads of the pieces.

All these practices will be validated in the field, the timber yard in the concession, and in the sawnwood stacked in the sawmill. These workshops will be held in Pucallpa, Aguaytía and Villa Atalaya.

Activity 3.2 Provide technical assistance in prevention and control treatments for three timber species

Project beneficiaries, basically forest companies, concessionaires and community leaders, can request personalized technical assistance for the training of field and mill personnel, as well as the development of a work plan for prevention and control treatments in roundwood and sawnwood and ongoing treatments in manufactured timber products.

This technical assistance will be provided by two forest consultants – one in the area of influence of the Ucayali river (Calería, Contamana, Atalaya) and another one for the area of influence of the Aguaytía river (Aguaytía and San Alejandro), working in constant coordination with the Concessionaires’ Association of Atalaya – ABACO and the Forest Concessionaires’ Association of Padre Abad – ACOFOPA.

3.2 IMPLEMENTATION APPROACHES AND METHODS

In order to achieve project objectives both the approach and methods for the implementation of project activities must consider the following aspects:

The project will work in cooperation with all directly and indirectly related beneficiaries so as to provide information aimed at preventing the deterioration caused by biological and non-biological agents in roundwood and sawnwood, as well as increasing the shelf life of manufactured timber products that are not in direct contact with the ground. Through a participatory approach, the project will identify interested project beneficiary representative groups.

In order to ensure the participation of women and comply with international gender equity requirements, the project will ensure the participation of women concession holders and women primary and secondary processing entrepreneurs who are duly registered with the relevant producer associations, with the Executive Forest and Wildlife Directorate of the Coronel Portillo and Padre Abad provinces and/or PRODUCE, or who have been identified through secondary sources. 27

The species will be selected with the participation of stakeholders from the timber processing chain, taking into account the following criteria:  Their abundance and frequency in production forests, according to the information and forest inventories of concession holders;  Timber producing species that are susceptible to biological deterioration;  Species that have been subject to technological studies to determine their use potential.

During the implementation of consultation, training and dissemination activities, the project will promote the strengthening of the participation of producer associations in future events, for institutional arrangements, for access to formal credit facilities and, in particular, for the establishment of consortiums aimed at dealing with national and export markets. The project will work in close cooperation with the Eco Industrial Park of Pucallpa.

The project will be institutionalized as part of the research program of the National University of Ucayali and will be aimed at continuing with the second stage of research into the management, industrialization and marketing of timber and non-timber forest products from residual primary forests.

3.3 WORK PLAN

YEAR 1 YEAR 2 RESPONSIBLE OUTPUTS /ACTIVITIES Quarter Quarter PARTY 1 2 3 4 1 2 3 4 Output 1 Regional A1.1 Gathering of technical and scientific information coordinator A1.2 Participatory workshop for the selection of species based on demand Regional

according to forest statistics and producers’ feedback in Pucallpa and Aguaytía coordinators A1.3 Gathering of technical background information on the use of boron-based Regional

preservatives in manufactured timber products coordinators A1.4 Assessment of conditions for boron salt diffusion treatment of timber Regional

products of high moisture content coordinators A1.1.5 Treatment trials on roundwood at the forest site and timber yard using Regional

chemical preservatives to determine the most suitable concentration coordinators A1.6 Treatment trials on sawnwood at the mill site using chemical preservatives Regional

to determine the most suitable concentration coordinators A1.7 Assessment of fungicide effectiveness in laboratory tests according to Regional

AWPA M-1 and M-5 standards coordinator Output 2 Regional A2.1. Organization of eight training and technology transfer workshops on coordinators, prevention and ongoing treatments for roundwood and sawnwood director Regional A2.2. Development of dissemination, training and technical assistance materials coordinator Regional A2.3. Organization of two dissemination conferences for professionals, students coordinators, and the scientific community in general director A2.4. Gathering of relevant information on moon phase influence on the attack Regional

of biological agents during tree felling coordinators A2.5. Gathering of adequate information on the influence of directional felling on Regional

natural timber durability coordinators Output 3 Regional A3.1. Participatory training workshop on good practices in the prevention of coordinators, biological and non-biological wood decay agents in Pucallpa and Aguaytía director A3.2. Provide technical assistance in prevention and control treatments for three Regional

timber species coordinators

3.4 BUDGET

3.4.1 Detailed master budget by component and financing source

Qty Unit Cost Total Cost ITTO Description unit US US$ Budget Agency Outputs/ Activities Executing Component Component Year 1 Year 2 Year 1 Year 2

Output 1 Information generated on prevention and ongoing roundwood and sawnwood preservation treatments for the control of biological agents.

A1.1 Gathering of technical and scientific information

Consultant 20 1 m/m 2500 2500 2500

Data entry operator 10 1 m/m 600 600 600 Technical assistant 10 1 m/m 800 800 800 Office supplies 50 1 overall 150 150 150 Sub-total 4050 3300 750

A1.2 Participatory workshop for the selection of species based on demand according to forest statistics and producers’ feedback in Pucallpa and Aguaytía

Consultant 20 1 m/m 2500 2500 2500 Data entry operator 10 1 m/m 600 600 600 Technical assistant 10 1 m/m 800 800 800 Facilitator 10 1 day 200 200 200 Land transport 30 20 unit 25 500 500 DSA 30 20 day 72 1440 1440 Venue services 60 2 day 192 384 384 Refreshments 60 72 unit 12 864 864 Local transport 60 1 overall 50 50 50 Office supplies 50 1 overall 200 200 200 Dissemination materials 60 60 unit 4 240 240 Sub-total - - - - - 7778 6728 0 1050 A1.3 Gathering of technical background information on the use of boron-based preservatives in manufactured timber products Consultant 20 1 m/m 2500 2500 2500 Data entry operator 10 1 m/m 600 600 600 Technical assistant 10 1 m/m 800 800 800 Office supplies 50 1 overall 150 150 150 Local transport 60 1 overall 50 50 50 Sub-total - - - - - 4100 3300 0 800

A1.4 Assessment of conditions for boron salt diffusion treatment of timber products of high moisture content

Consultant 20 4.5 m/m 2500 11250 11250 Technical assistant 10 2 m/m 800 1600 1600 GIS specialist 10 2 m/m 1500 3000 3000 Sawnwood 50 300 fb 1 300 300 Boron-based preservatives 50 5 kg 8 40 40 Organic fungicide 50 0.5 l 60 30 30 Laboratory expert 10 12 daily wage 50 600 600 Industrial safety equipment 50 2 unit 38 76 76 Atomic absorption spectrophotometer 40 1 unit 16478 16478 16478 Local transport 60 1 overall 50 50 50 Sub-total - - - - - 30424 30074 0 350 A1.5 Treatment trials on roundwood at the forest site and timber yard using chemical preservatives to determine the most suitable concentration

Consultant 20 6 m/m 2500 15000 15000 Data entry operator 10 6 m/m 600 3600 3600 Technical assistant 10 6 m/m 800 4800 4800 GIS specialist 10 3 m/m 1500 4500 4500

Qty Unit Cost Total Cost ITTO Description unit US US$ Budget Agency Outputs/ Outputs/ Activities Executing Executing Component Component Year 1 Year 2 Year 1 Year 2 Roundwood 50 54000 pt 0.35 18900 18900 Fuel and lubricants 50 1 overall 3500 3500 3500 Land travel 30 24 ticket 16 384 384 Meals 60 128 day 5 640 640 Local transport 60 1 overall 50 50 50 Preservatives 50 60 kg 5 300 300 Solvents 50 240 gl 4 960 960 Adhesives and surfactants 50 12 l 18 216 216 Unskilled workers 10 258 daily wage 13 3354 2322 1032 Backpack pump 40 4 unit 60 240 240 Industrial safety equipment 50 8 unit 38 304 304 Medicines and anti-ophidic serum 60 4 unit 12 48 48 Halogen flashlight 60 4 unit 15 60 60 Alkaline batteries 60 2 dozen 21 42 42 Sub-total - - - - - 52398 28816 0 23582 A1.6 Treatment trials on sawnwood at the mill site using chemical preservatives to determine the most suitable concentration

Consultant 20 2 m/m 2500 5000 5000 Technical assistant 10 2 m/m 800 1600 1600 GIS specialist 10 2 m/m 1500 3000 3000 Industrial safety equipment 50 8 unit 38 304 304 Preservatives 50 60 kg 5 300 300 Solvents 50 240 gl 4 960 960 Adhesives and surfactants 50 12 l 18 216 216 Sawnwood 50 10800 bf 0.70 7560 7560 Semi-circular immersion bathtub 40 1 unit 200 200 200 Workers 10 21 daily wage 8 168 168 Sub-total - - - - - 16308 8748 0 7560 A1.7 Assessment of fungicide effectiveness in laboratory tests according to AWPA M-1 and M-5 standards Consultant 20 1 m/m 2500 2500 2500 Technical assistant 10 1 m/m 800 800 800 Laboratory equipment 40 1 equipment 16200 16200 500 15700 Laboratory inputs and materials 60 1 sundry 1988 1988 1796 192 Rubber gloves 50 4 a hundred 6 24 24 Laboratory expert 10 1 m/m 1000 1000 1000 Sub-total - - - - - 22512 6620 0 15892 The knowledge of forest producers and professionals on prevention and control of biological and non-biological agents affecting roundwood and Output 2. sawnwood has been strengthened.

A2.1. Organization of eight training and technology transfer workshops on prevention and ongoing treatments for roundwood and sawnwood

Consultant 20 3 month 2500 7500 7500 Facilitator 10 24 m/d 200 4800 4800 Air travel 30 4 ticket 270 1080 1080 Fuel and lubricant 50 1 overall 4000 4000 4000 2 unskilled workers 10 1 month 870 870 870 Land travel 30 30 unit 10 300 300 DSA for project staff 30 90 DSA 72 6480 6480 Meals 60 72 unit 12 864 864 Office supplies 50 1 overall 150 150 150 Local transport 60 1 overall 100 100 100 Venue services 60 8 day 192 1536 1536 Dissemination materials 60 60 unit 4 240 240 Transport for native comm. 30 9 person 25 225 225 participants 31

Qty Unit Cost Total Cost ITTO Description unit US US$ Budget Agency Outputs/ Outputs/ Activities Executing Executing Component Component Year 1 Year 2 Year 1 Year 2 DSA for native comm. participants 30 9 person 50 450 450 Sub-total - - - - - 28595 0 23545 5050 A2.2. Development of dissemination, training and technical assistance materials Consultant 20 1 m/m 2500 2500 2500 Expert in technical editing 10 1 m/m 2000 2000 2000 Expert in graphic editing and printing 10 1 overall 5000 5000 5000 Office supplies 50 1 overall 150 150 150 Recording disks 50 10 a hundred 40 400 400 Local transport 60 1 overall 50 50 50 Audio-visual editing / 30 min of film 60 1 service 600 600 600 Distribution 60 1 overall 1200 1200 1200 Publication printing services 60 150 cm2 2 300 300 Audio-visual publishing services 60 21 day x 3 rep. 50 1050 1050 Sub-total - - - - - 13250 0 12150 1100 A2.3. Organization of two dissemination conferences for professionals, students and the scientific community in general

Facilitator 10 2 m/d 200 400 400 Venue services 60 2 day 192 384 384 Refreshments 60 200 unit 4 800 800 Local transport 60 1 overall 100 100 100 Office supplies 50 1 overall 200 200 200 Sub-total - - - - - 1884 0 1184 700

A2.4. Gathering of relevant information on moon phase influence on the attack of biological agents during tree felling

Consultant 20 3 m/m 2500 7500 7500 Forest Techn. 10 3 m/m 800 2400 2400 GIS specialist 10 3 m/m 1500 4500 4500 Unskilled workers 10 62 m/m 20 1240 600 640 Roundwood 50 18000 bf 0.10 1800 1800 Sawmilling services 60 18000 bf 0.10 1800 1800 Timber transport and hoisting 60 18000 bf 0.10 1800 1800 Meals 60 90 days 5 450 450 Medicines: anti-ophidic serum and antibiotics 60 4 unit 12 48 48 Fuel and lubricants 50 1 overall 500 500 500 Sub-total - - - - - 22,038 0 21,398 640 A2.5. Gathering of adequate information on the influence of directional felling on natural timber durability

Consultant 20 3 m/m 2500 7500 7500 Forest Techn. 10 3 m/m 800 2400 2400 GIS specialist 10 3 m/m 1500 4500 4500 Unskilled workers 10 30 daily wage 20 600 280 320 Sawmilling services 60 18000 bf 0.10 1800 1800 Roundwood 50 18000 bf 0.10 1800 1800 Timber transport and hoisting 60 18000 bf 0.10 1800 1800 Meals 60 42 days 5 210 210 Medicines: anti-ophidic serum and antibiotics 60 4 unit 12 48 48 Fuel and lubricants 50 1 overall 200 200 200 Sub-total - - - - - 20,858 0 20,538 320

Qty Unit Cost Total Cost ITTO Description unit US US$ Budget Agency Outputs/ Outputs/ Activities Executing Executing Component Component Year 1 Year 2 Year 1 Year 2

Output 3. Forest producers apply good practices for the prevention and control of biological and non-biological agents affecting roundwood and sawnwood.

A3.1. Participatory training workshop on good practices in the prevention of biological and non-biological wood decay agents in pucallpa and aguaytía Consultant 20 1 m/m 2500 2500 2500 Data entry operator 10 1 m/m 600 600 600 Technical assistant 10 1 m/m 800 800 800 Facilitator 10 3 day/h 200 600 600 Venue services 60 1 day 80 80 80 Refreshments 60 160 unit 4 640 640 Land travel 30 20 ticket 15 300 300 Local transport 60 1 overall 50 50 50 Office supplies 50 1 overall 200 200 200 Dissemination materials 60 1 overall 48 48 48 Sub-total - - - - - 5818 3728 0 2090

A3.2. Provide technical assistance in prevention and control treatments for three timber species

Consultant x 2 20 4 m/m 2500 20000 20000 Forest technician x 2 10 4 m/m 800 6400 6400 GIS specialist 10 4 m/m 1500 6000 6000 Fuel and lubricants 50 1 overall 400 400 400 Medicines 60 1 overall 120 120 120 Meals 60 1 overall 200 200 200 Sub-total - - - - - 33120 0 32920 200 A3.3. Establish project coordination and monitoring (Non-activity based expenses) Rental of premises - Pucallpa 60 12 12 month 320 7680 7680 Rental of premises - Aguaytía 60 6 12 month 260 4680 1560 3120 Rental of premises - Atalaya 60 12 month 180 2160 2160 Utilities - Pucallpa 60 12 12 month 120 2880 2880 Utilities - Aguaytía 60 6 12 month 60 1080 1080 Utilities - Atalaya 60 12 month 60 720 720 Steering Committee meeting 60 1 1 meeting 300 600 300 300 Consultative Committee meeting 60 2 2 meeting 300 1200 600 600 Director 10 12 12 m/m 3000 72000 72000 Regional Coordinator - Pucallpa 10 12 12 m/m 2500 60000 30000 30000 Regional Coordinator - Aguaytía 10 6 12 m/m 1800 32400 10800 21600 Regional Coordinator - Atalaya 10 12 m/m 1100 13200 13200 Accountant 10 12 12 month 500 12000 12000 Consultative Committee participants 60 30 30 m/d 50 3000 1500 1500 Audit reports 60 1 1 report 1500 3000 1500 1500 Equipment maintenance 60 12 12 month 100 2400 2400 Printer 40 1 unit 200 200 200 Laptop 40 1 unit 1500 1500 1500 Computer 40 1 unit 1000 1000 1000 Photocopier 40 1 unit 1400 1400 1400 Photographic camera 40 1 unit 320 320 320 Video camera 40 1 unit 480 480 480 Multimedia projector 40 1 unit 2000 2000 2000 Office furniture 40 1 overall 1200 1200 1200 Boat (intermediate distances) 40 1 unit 1300 1300 1300 Canoe (direct trips) 40 1 unit 25000 25000 17500 7500 Outboard motor 70Hp 40 1 unit 10400 10400 7280 3120 Motor 10Hp 40 1 unit 600 600 600 33

Qty Unit Cost Total Cost ITTO Description unit US US$ Budget Agency Outputs/ Outputs/ Activities Executing Executing Component Component Year 1 Year 2 Year 1 Year 2 Power generator 4 KW 40 1 unit 1500 1500 1500 Motorcycles 40 2 unit 1800 3600 3600 Thesis researchers x 4 10 3 3 month 300 7200 3600 3600 Accessories and programs 60 3 overall 500 1500 1500 Headlight + battery 50 2 unit 180 360 360 Plastic container for fuel – 5 gl 50 10 unit 5 50 50

Plastic container for fuel – 10 gl 50 2 unit 15 30 30 Collective tents 4 * 6 50 2 unit 120 240 240 Individual tents 50 4 unit 70 280 280 Beds/mats 50 1 dz 165 165 165 Mosquito nets 50 1 dz 70 70 70 Accessories and spares 50 1 overall 700 700 700 Helmets 50 1 dz 200 200 200 Sub-total - - - - - 280295 92135 77580 110580 Total 543428 183449 189315 170664

3.4.2 Consolidated budget by component

Item Description Total Year 1 Year 2 10 Personnel 111 Director 72000 36000 36000 112 Regional Coordinator - Pucallpa 60000 30000 30000 113 Regional Coordinator - Aguaytía 32400 10800 21600 114 Regional Coordinator - Atalaya 13200 0 13200 121 Facilitator 6000 5600 400 122 Technical editing expert 2000 2000 123 Graphic editing and printing expert 5000 5000 124 Laboratory expert 1600 1600 0 25500 12750 12750 131 GIS specialist 15,000 0 15,000 141 Forest Techn. 11200 11200 142 Thesis researchers 7200 3600 3600 143 Data entry operator 6000 6000 144 Technical assistant 12000 12000 0 151 Accountant 12000 6000 6000 161 Unskilled workers 6232 3522 2710 272332 127872 144460 19 Sub-total 269332 126732 142960 261832 115122 146710 20 Sub-contracts 2 technical-scientific information consultations on preservation treatments and 21 5000 5000 0 gathering of background information on boron compounds Consultant in participatory workshop for selection of species based on demand 22 2500 2500 0 according to forest statistics and producers knowledge in Pucallpa y Aguaita 2 Consultancies. 01 to determine treatment conditions for diffusion of boron salts in 23 timber products with high moisture content and 01 to assess fungicide 13750 13750 0 effectiveness in laboratory tests according to AWPA M-1 and M5 standards 2 consultancies for roundwood and sawnwood treatment trials in the forest, timber 24 yard and mill using chemical preservatives to determine most suitable 20000 20000 0 concentration 02 consultancies: 01 to organize 8 training and technology transfer workshops on prevention and ongoing treatments for roundwood and sawnwood and 01 to 25 10000 2500 7500 implement participatory workshop for selection of species based on demand according to forest statistics and producers knowledge in Pucallpa y Aguaita Consultancy for the preparation of dissemination, training and technical assistance 26 2500 0 2500 materials 02 consultancies: 01 to assess knowledge on moon-phase influence on the 27 incidence of biological agent attacks during tree felling and 01 to assess knowledge 15000 0 15000 on the influence of directional felling on natural timber durability 2 consultants to provide technical assistance on prevention and ongoing treatments 28 20000 0 20000 for 03 timber forest species 29 Sub-total 88750 43750 45000 30 Duty travel 312 Land travel 1709 1184 525 312 Air travel 1080 0 1080 312 DSA 8370 1440 6930 39 Sub-total 11159 2624 8535 40 Capital items 411 Atomic absorption spectrophotometer 16478 16478 0 412 Backpack pump 240 240 0 413 Laboratory equipment 16200 16200 0 421 Semi-circular immersion bathtub 200 200 0 422 Printer 200 200 0 423 Laptop 1500 1500 0 424 Computer 1000 1000 0 425 Photocopier 1400 1400 0 426 Multimedia projector 2000 2000 0 427 Office furniture 1200 1200 0 431 Photographic camera 320 320 0 432 Video camera 480 480 0 441 Boat (intermediate distances) 1300 1300 0 442 Canoe (direct trips) 25000 25000 443 Outboard motor 70Hp 10400 10400 35

Item Description Total Year 1 Year 2 444 Motor 10Hp 600 600 0 445 Motorcycles 3600 3600 0 451 Power generator 4 KW 1500 1500 0 49 Sub-total 83618 83618 0 50 Consumable items 511 Office supplies 1200 808 392 512 Recording disks 400 0 400 521 Chemicals (boron salts) 40 40 0 522 Organic fungicide 30 30 0 523 Preservatives 600 600 0 524 Solvents 1920 1920 0 525 Adhesives and surfactants 432 432 0 531 Safety equipment 684 684 0 532 Gloves 24 24 0 541 Roundwood 22500 18900 3600 542 Fuel and lubricants 8600 3500 5100 543 Sawnwood 7860 7860 0 551 Headlight + battery 360 360 0 552 Collective tents 4 * 6 240 240 0 553 Individual tents 280 280 0 554 Beds/mats 165 165 0 555 Mosquito nets 70 70 0 556 Accessories and spares 700 700 0 557 Helmets 200 200 0 561 Plastic container for fuel – 5 gl 50 50 0 562 Plastic container for fuel – 10 gl 30 30 0 59 Sub-total 46385 36893 9492 60 Miscellaneous 601 Venue services 2384 464 1920 602 Dissemination materials 528 288 240 603 Medicines and anti-ophidic serum 264 48 216 604 Halogen flashlight 60 60 0 605 Alkaline batteries 42 42 0 606 Laboratory inputs and materials 1988 1988 0 615 Audio-visual editing / 30 minutes of film 600 0 600 616 Distribution 1200 0 1200 617 Publication printing services 300 0 300 618 Audio-visual publishing services 1050 0 1050 619 Sawmilling services 3600 0 3600 620 Timber transport and hoisting 3600 0 3600 Rental of premises - Pucallpa 3600 3600 621 7680 3840 3840 622 Rental of premises - Aguaytía 4680 1560 3120 623 Rental of premises - Atalaya 2160 0 2160 Utilities - Pucallpa 960 960 624 2880 1440 1440 625 Utilities - Aguaytía 1080 360 720 626 Utilities - Atalaya 720 0 720 627 Steering Committee meeting 600 300 300 628 Consultative Committee meeting 1200 600 600 629 Consultative Committee participants 3000 1500 1500 630 Audit reports 3000 1500 1500 631 Equipment maintenance 2400 1200 1200 632 Accessories and programs 1500 1500 0 633 Local transport 500 250 250 634 Meals 4668 2144 2524 18364 31880 69 Sub-total 51684 19084 32600 83089 70 National Management Costs 82639 81514

Item Description Total Year 1 Year 2 80 Project Monitoring and Administration 10000 81 Project coordination and monitoring 20000 7500 82 ITTO mid-term, final, ex-post evaluation 15000 17500 Sub-total (11–82) 35000 30661 83 ITTO Programme Support Costs (8% de 1–82) 45632 48932 48161 100 Sub-total 80632 83932 685178 GRAND TOTAL 714199 708874

3.4.3 Yearly project budget by source – ITTO Item Description Total Year 1 Year 2 10 Personnel 113 Regional Coordinator - Pucallpa 60000 30000 30000 114 Regional Coordinator - Aguaytía 32400 10800 21600 115 Regional Coordinator - Atalaya 13200 0 13200 122 Technical editing expert 2000 2000 123 Graphic editing and printing expert 5000 5000 124 Laboratory expert 1600 1600 0 25500 12750 12750 131 GIS specialist 22,500 11,250 11,250 15000 0 15000 141 Forest Techn. 11200 11200 142 Thesis researchers 7200 3600 3600 144 Technical assistant 12000 12000 0 162 Unskilled workers 4240 2490 1750 174340 73240 101100 19 Sub-total 171340 71740 99600 163840 60490 103350 20 Sub-contracts 2 technical-scientific information consultations on preservation treatments and 21 5000 5000 0 gathering of background information on boron compounds Consultant in participatory workshop for selection of species based on demand 22 2500 2500 0 according to forest statistics and producers knowledge in Pucallpa y Aguaita 2 Consultancies. 01 to determine treatment conditions for diffusion of boron salts in 23 timber products with high moisture content and 01 to assess fungicide effectiveness 13750 13750 0 in laboratory tests according to AWPA M-1 and M5 standards 2 consultancies for roundwood and sawnwood treatment trials in the forest, timber 24 20000 20000 0 yard and mill using chemical preservatives to determine most suitable concentration 02 consultancies: 01 to organize 8 training and technology transfer workshops on prevention and ongoing treatments for roundwood and sawnwood and 01 to 25 10000 2500 7500 implement participatory workshop for selection of species based on demand according to forest statistics and producers knowledge in Pucallpa y Aguaita Consultancy for the preparation of dissemination, training and technical assistance 26 2500 0 2500 materials 02 consultancies: 01 to assess knowledge on moon-phase influence on the 27 incidence of biological agent attacks during tree felling and 01 to assess knowledge 15000 0 15000 on the influence of directional felling on natural timber durability 2 consultants to provide technical assistance on prevention and ongoing treatments 28 20000 0 20000 for 03 timber forest species 29 Sub-total 88750 43750 45000 30 Duty travel 312 Land travel 1709 1184 525 312 Air travel 1080 0 1080 312 DSA 8370 1440 6930 39 Sub-total 11159 2624 8535 40 Capital items 411 Atomic absorption spectrophotometer 16478 16478 0 412 Backpack pump 240 240 0 415 Laboratory equipment 500 500 0 421 Semi-circular immersion bathtub 200 200 0 422 Printer 200 200 0 423 Laptop 1500 1500 0 424 Computer 1000 1000 0 425 Photocopier 1400 1400 0 426 Multimedia projector 2000 2000 0 431 Photographic camera 320 320 0 432 Video camera 480 480 0 441 Boat (intermediate distances) 1300 1300 0 442 Canoe (direct trips) 17500 17500 443 Outboard motor 70Hp 7280 7280 444 Motor 10Hp 600 600 0 445 Motorcycles 3600 3600 0 451 Power generator 4 KW 1500 1500 0 49 Sub-total 56098 56098 0

50 Consumable items 512 Recording disks 400 0 400 521 Chemicals (boron salts) 40 40 0 522 Organic fungicide 30 30 0 523 Preservatives 600 600 0 524 Solvents 1920 1920 0 525 Adhesives and surfactants 432 432 0 531 Safety equipment 684 684 0 532 Gloves 24 24 0 541 Roundwood 3600 3600 542 Fuel and lubricants 8600 3500 5100 551 Headlight + battery 360 360 0 552 Collective tents 4 * 6 240 240 0 553 Individual tents 280 280 0 554 Beds/mats 165 165 0 555 Mosquito nets 70 70 0 556 Accessories and spares 700 700 0 557 Helmets 200 200 0 561 Plastic container for fuel – 5 gl 50 50 0 562 Plastic container for fuel – 10 gl 30 30 0 59 Sub-total 18425 9325 9100 60 Miscellaneous 601 Venue services 2384 464 1920 602 Dissemination materials 528 288 240 603 Medicines and anti-ophidic serum 264 48 216 604 Halogen flashlight 60 60 0 605 Alkaline batteries 42 42 0 606 Laboratory inputs and materials 1796 1796 0 616 Distribution 1200 0 1200 618 Audio-visual publishing services 1050 0 1050 619 Sawmilling services 3600 0 3600 620 Timber transport and hoisting 3600 0 3600 622 Rental of premises - Aguaytía 4680 1560 3120 623 Rental of premises - Atalaya 2160 0 2160 627 Steering Committee meeting 600 300 300 628 Consultative Committee meeting 1200 600 600 629 Consultative Committee participants 3000 1500 1500 630 Auditing 3000 1500 1500 632 Accessories and programs 1500 1500 0 634 Meals 3828 1504 2324 69 Sub-total 34492 11162 23330 70 National Management Costs 80 Project Monitoring and Administration 10000 81 Project coordination and monitoring 20000 7500 82 ITTO mid-term, final, ex-post evaluation 15000 17500 Sub-total (11–82) 35000 30661 83 ITTO Programme Support Costs (8% 12% of 1–82) 45632 48932 48161 100 Sub-total 80632 83932 431425 GRAND TOTAL 460896 456696

3.4.4 Yearly project budget by source – Executing Agency

Item Description Total Year 1 Year 2 10 Personnel 111 Director 72000 36000 36000 121 Facilitator 6000 5600 400 143 Data entry operator 6000 6000 151 Accountant 12000 6000 6000 161 Workers 1992 1032 960 19 Sub-total 97992 54632 43360 40 Capital items 413 Laboratory equipment 15700 15700 0 427 Office furniture 1200 1200 0 442 Canoe (direct trips) 7500 7500 443 Outboard motor 70Hp 3120 3120 19 Sub-total 27520 27520 0 50 Consumable items 511 Office supplies 1200 808 392 541 Roundwood 18900 18900 543 Sawnwood 7860 7860 0 59 Sub-total 27960 27568 392 60 Miscellaneous 608 Laboratory inputs and materials 192 192 615 Audio-visual editing services – 30 minutes of film 600 0 600 617 Publication printing services 300 0 300 3600 3600 621 Rental of premises - Pucallpa 7680 3840 3840 960 960 624 Utilities - Pucallpa 2880 1440 1440 625 Utilities - Aguaytía 1080 360 720 626 Utilities - Atalaya 720 0 720 631 Equipment maintenance 2400 1200 1200 633 Local transport 500 250 250 634 Meals 840 640 200 7202 8550 69 Sub-total 17192 7922 9270 170664 116922 52302 Sub-total All Items 117642 53022 83089 70 National Management Costs 82639 81514 253753 GRAND TOTAL 253303 252178

3.5 ASSUMPTIONS, RISKS AND SUSTAINABILITY

3.5.1 Assumptions and risks

The main assumptions to ensure that the project will be implemented in accordance with the established work plan are as follows:

- The willingness of forest entrepreneurs, concession holders, producers, professionals, technical experts and students to actively participate in the project is maintained; - Public institutions, concession holders, producers, professionals and technical experts are willing to share information; - National environmental policies are maintained and updated; - The forest concessions system continues as provided for in the current forest legislation and in the new forestry law and regulations that will come into force.

There is a certain risk that these assumptions may not be met. If this were to be the case, the project management team would apply the following measures:

- Special care will be taken in the selection of forest entrepreneurs, concession holders, native communities, producers, professionals, technical experts and students in order to identify early warning signs about who is not willing to participate in the project and/or share information so as to analyze the causes and find solutions, and develop an awareness raising and motivation strategy to reverse the situation or, failing this, work only with those who have overcome these difficulties. - If public institutions are not willing to provide information, a request for information will be made to the highest decision-making bodies, justifying the request in accordance with the current legislation. - If the forest concessions system is discontinued, the new system for the allocation of forest resources will be reviewed to determine whether the regulations of the recently adopted forestry law contain provisions that could affect project objectives; for example, whether it favors highly selective logging systems.

3.5.2 Environmental, social, technical, economic and political sustainability

Environmental sustainability During the formulation of this project proposal both the positive and negative environmental impacts and the measures envisaged for their mitigation were duly taken into account. It is envisaged that the general management plans can be implemented to ensure environmental sustainability and that, at least partially, they can be financed from the additional income that will be derived from forest operations.

Social sustainability Local needs were taken into account during the formulation of this project proposal and were identified through an analysis of the needs, interests and potential of the different stakeholders. Native communities own 12% of production forests in the Ucayali Region. Due to their inability to integrate into the national economic model, these communities do not harvest their resources on a sustainable basis, and apply instead selective logging and ‘creaming’ practices based on a system of direct sale of standing trees of commercial timber species at ridiculous prices. It is generally recognized that these are the country’s poorest communities in spite of the potential of their natural resources. It should also be considered that small agricultural farmers still conserve residual primary and secondary forests in their farms. It is necessary to revalue timber resources of potential commercial value whose limiting factor is their low natural durability against biological and non-biological deterioration agents, so that these timber species can be introduced into the regional and national markets through direct harvesting by the holders of forest harvesting permits issued by competent authorities. This scheme would become more attractive by increasing the volumes to be harvested with the introduction of new species of low natural durability against biological and non-biological deterioration agents.

Planned activities take into account the views of key stakeholders for the solution of problems. In addition, the project aims to capitalize on the experience and knowledge of the population in the research work to be carried out, as well as the traditional knowledge of indigenous communities. The participatory approach of the project gives project beneficiaries a sense of belonging, identifying them with the expected outputs. The project also takes into account the role of women in forest related activities, as it believes it is extremely important to adopt a gender-based approach for the implementation of research, training and dissemination activities. 41

Technical sustainability The capacity-building activities envisaged in the project will allow for the continued use of the new technologies introduced as part of the research activities implemented by the project.

The methodology designed for the transfer of knowledge, through workshops with the active participation of concession holders, primary and secondary processing producers, professionals and technical experts, conferences and other regional forums, the publication of manuals and technical guides and through the free access website, will ensure that the information will be available to all interested users.

The field implementation of the knowledge acquired will be achieved through the training of forest beneficiaries, who will receive greater economic benefits from the forest, leading to greater investments, and thus ensuring the long-term sustainability of the project after its completion.

Economic sustainability The larger volume of timber harvested per unit area of natural forest under management will ensure greater economic benefits and lower operational costs, will promote increased investments and a long-term vision of tangible and intangible benefits, and will foster the long-term sustainability of the project.

Given that these are all business management practices, with improvements to forest operations, the sustainability of project outputs will be ensured by the beneficiaries themselves, including entrepreneurs, concession holders, primary and secondary processing producers and indigenous communities in charge of managing their community forests, thus guaranteeing the economic sustainability of forest management.

Political sustainability The participation in regional forums will create a space for the exchange of views that must be taken into account by the regional authorities in the planning and development of sectoral policies and public investment programs.

PART 4. IMPLEMENTATION ARRANGEMENTS

4.1 ORGANIZATION STRUCTURE AND STAKEHOLDER INVOLVEMENT MECHANISMS

4.1.1 Executing agency and partners

The Forest Producers’ Association of Ucayali – APROFU will be the agency responsible for project administration and implementation in coordination with the host government and ITTO. APROFU has been working in the forest sector since 1998. Its headquarters is located in the city of Pucallpa and it has inter- institutional coordination links with the districts of Atalaya, Sepahua and Bolognesi, through its sub- headquarters located in Villa Atalaya. The Association also has a close relationship with ABACO, ACOFOPA, APEMED and UNU, which will participate as collaborating agencies in the implementation of specific activities. APROFU will work in cooperation with DGFFS of the Ministry of Agriculture – MINAG, which is the technical agency responsible for forest and wildlife related activities in the country and therefore, the implementation of this project falls under its mandate. APROFU’s main responsibilities in the implementation of the project will be as follows:

 Setting up of the project technical and administrative team  Recruitment of consultants and planning, monitoring and evaluation of project progress  Project financial management  Implementation of project activities  Coordination with collaborating agencies and Steering Committee  Submission of reports to ITTO as described in section 4.2

The project organizational structure is shown below:

APROFU

Steering Committee

Coordinator

Administrator Consultants

Technical Team

4.1.2 Project management team

The project management team will include APROFU personnel, consultants and subcontractors. The team will be led by a coordinator, who will be responsible for coordinating the work of the technical team and will keep the Steering Committee informed on project progress. In addition, the Association will coordinate with collaborating agencies and other institutions, with which agreements will be concluded in due course.

The project management team will include the following:

- Director - Regional Coordinator of Pucallpa - Regional Coordinator of Aguaytía - Regional Coordinator of Atalaya - Consultants - Experts - Specialists - Unskilled labour - Forest technicians - Technical assistant

4.1.3 Project Steering Committee

The Project Steering Committee will be made up as follows:

 A chairperson appointed by the executing agency (APROFU)  An ITTO representative  A DGFFS representative  A representative of the indigenous communities – ORAU  A representative of ACOFOPA  A representative of APEMED  A representative of UNU  A representative of the Concessionaires’ Committee – APROFU  A representative of the Industrialists’ Committee – APROFU  A representative of the Secondary Processing Committee - APROFU

This Committee will be responsible for the approval of annual plans and reports. In addition, the Committee will be responsible for ensuring that project actions are consistent with the basic guidelines established for the achievement of project outcomes and objectives. Furthermore, the Committee will provide guidance and recommend remedial actions if the project is deviating from its basic guidelines

4.1.4 Stakeholder involvement mechanisms

The Steering Committee will include representatives of indigenous community organizations, associations of forest enterprises, forest concessionaires, and primary and secondary processors, who are the main stakeholders and beneficiaries of the project. This will guarantee stakeholder involvement in the management of the project.

In addition, during the implementation of the project, planned activities will include consultation workshops, which will promote discussion and participation of all project stakeholders so as to seek their feedback and contributions for decision-making.

4.2 REPORTING, REVIEW, MONITORING AND EVALUATION

Progress reports Based on the project work plan, the first progress report will be submitted by the end of the first year of the project, when objectively verifiable tangible outputs should start to be produced. The reports of participatory workshops, consultancies, and training and result dissemination events will also be submitted.

Project completion report The Project Completion Report will be submitted within the period established by ITTO (within three months of project completion). This report shall mainly describe project achievements in terms of outputs produced and objectives attained, as well as all aspects related to project implementation, including methodology, organization, costs/expenditures, conclusions and recommendations.

ITTO monitoring and review Based on the project work plan, it is considered that the best timing for monitoring reviews would be every 12 months, after the submission of progress reports, when objectively verifiable results should be available.

Evaluation It is recommended that the project be evaluated two months after completion, when most of the project results should have been achieved.

Monitoring and reporting schedule A preliminary monitoring and reporting schedule is given below, indicating possible dates for visits to the executing agency:

Description Date First progress report By the end of year 1 First monitoring mission 12 months after project start-up Project completion report 1 month after project completion Final evaluation 2 months after project completion

4.3 DISSEMINATION AND MAINSTREAMING OF PROJECT LEARNING

4.3.1 Dissemination of project results

Throughout the implementation period, the information generated by the project will be disseminated through different media taking into account the characteristics of beneficiaries and the nature of the information. The data generated and validated as part of the implementation of the project will be disseminated at the local and regional levels through specific sessions for the presentation of partial results and upon project completion. Project outcomes will also be posted in the web page of APROFU and the National University of Ucayali, which are both freely available to the general public.

4.3.2 Mainstreaming of project learning

As part of the implementation of the project, the organization of workshops is envisaged for mainstreaming and dissemination of project information through the various implementation stages. Furthermore, the possible involvement of different stakeholders will be reported in advance and their participation will be facilitated, financing in some cases transport costs and DSA of indigenous community representatives and in other cases the transport of participants. The progress made in the achievement of expected outcomes will be mainstreamed among other institutions and organizations directly or indirectly related to the implementation of the project, including students, teachers, researchers and public servants. In addition, the mainstreaming of project results will create synergies with other institutions involved in the same areas, as well as ensuring replication of successful project research and validation activities in other regions with similar forest ecosystems.

ANNEX 1. Profile of the executing agency

FOREST PRODUCERS ASSOCIATION - APROFU

Address: Jr. Independencia 128, Pucallpa, Peru RUC: 20351381451 Date of establishment: 23/09/1998 Telephone: 61-573628 E-mail: [email protected] Website: www.aprofuperu.org

The Forest Producers Association of Ucayali (Asociación de Productores Forestales de Ucayali –APROFU) is a non-profit private association whose mission is to analyze, propose, develop and promote forest activities in Ucayali and the Amazon Region. In 2012, APROFU is nationally and regionally recognized as a unified and organized representative association with a sound basis, clear principles and transparent procedures. Its members ensure consistency between forest development and corporate-social, environmental and economic ethics, contributing to society integration and promoting the well-being of the population in Ucayali. Its main activities include:

 Defending the rights of its members and the forest sector from irregularities of authorities and institutions.  Improving the corporate and strategic vision of its members.  Implementing international and national internships.  Formulating and implementing projects to contribute to increased competitiveness in the forest sector.  Maintaining direct dialogue between producers and institutions.  Strengthening technical knowledge and standardization of criteria between members and other relevant stakeholders.  Developing technical training modules, systems and plans for entrepreneurs in the department of Ucayali.

APROFU Organizational Chart: Forest Concessionaires ASSEMBLY Committee, Primary & Secondary

Processing Committee, Plywood Producers Committee, Forest Board of Directors Consultants Committee

MANAGER

Administration

Projects Area Forestry Area Industry Area Event Organization Trade Press Area Area Area

The main projects implemented by APROFU in the last 3 years include:

AMOUNT SOURCE OF PROJECT DURATION FUNDED FINANCE Systematization and dissemination of forest research 2010 - 2011 $25,000.00 FAO and promotion work Timber Forest Technological Mission, Argentina, 2011 $13,875.72 FINCyT 2011 Development of Regional Forest Plan for Ucayali 2012 – 2017 $ 28,000.00 FAO Development and validation of prototypes for the Under INNOVATE PERU- manufacturing of timber blockboards in the Ucayali $ 197,880.00 implementation FIDECOM Region. Development of thermal treatment protocol and adjustments to plywood (Triplay) production process Recently INNOVATE PERU- $ 196,254.23 for the use of non-traditional forest species in the approved FIDECOM Region. Technical assistance and services in the identification, reporting, analysis, FSC pre- Under The Amazon $ 19,828.00 assessment and development of action plan towards Implementation Alternative TAA FSC certification for 5 forest enterprises in Ucayali.

ANNEX 2. Tasks and responsibilities of key experts provided by the executing agency

CURRICULUM VITAE OF THE PROJECT DIRECTOR – APROFU PERSONNEL

PROPOSED OFFICER: ING. JOSÉ CARLOS SAAVEDRA PAREDES

GENERAL INFORMATION

Address: A.H. La Inmaculada Mz G Lt 21 Mobile: 995236254 E-mail: [email protected] D.N.I. No.: 07330771

HIGHER EDUCATION

Higher education: Forest Engineer, National Agrarian University of La Molina. 1976 - 1981

PROFESSIONAL EXPERIENCE

Head of the Timber Division, Maderera Sullana, achieving the development of wood drying and preservation techniques, 1982-1983.

Forest Harvesting Supervision, MASERCO, achieving the development of mechanized extraction systems, 1985-1988.

Head of Production, Maderas Exóticas S.A., achieving the management of the laminating industry, 1990- 1994.

Ongoing Coordinator of the Secondary Processing Mill in Pucallpa Export Woods – development of production flows for flooring frieze exports. 2010 – to date.

ANNEX 3. Terms of reference of personnel, consultants and sub-contracts funded by ITTO

TERMS OF REFERENCE FOR REGIONAL PROJECT COORDINATORS

A. Qualifications

 Forest engineer, preferably chartered.  Preferably with an advanced academic degree.  Experience in formulation and implementation of forest industry development projects, technical timber research, and forest management, leadership skills and good verbal and written communication skills.  Experience in international technical cooperation projects

B. Duties

 Leading project implementation at the technical and administrative levels  Leading project activities in close coordination with the institutions involved  Representing the project at local and national events  Promoting and organizing inter-institutional meetings  Managing the project, fulfilling the timely preparation and delivery of reports, operational plans and other project documents in accordance with the ITTO Manual for Project Formulation

TERMS OF REFERENCE FOR THE WOOD PRESERVATION PREVENTION TREATMENT SPECIALIST

A. Qualifications

 Chartered forest engineer  Preferably with an advanced academic degree  At least five years experience in forest industry and research on timber durability, drying and preservation  Good verbal and written communication skills.

B. Duties

 Participate in studies on prevention preservation treatments for roundwood and sawnwood and ongoing treatments for sawnwood  Represent the project in local and national events  Participate in meetings organized by the project  Submit and support the report of the study on prevention preservation treatments for roundwood and sawnwood and ongoing treatments for sawnwood

TERMS OF REFERENCE FOR THE WOOD PRESERVATION SPECIALIST

A. Qualifications

 Chartered forest engineer  Preferably with an advanced academic degree  At least five years experience in wood technology  Good verbal and written communication skills.

B. Duties

 Participate in wood technology studies  Represent the project in local and national events  Participate in meetings organized by the project  Participate in information processing, development of database and identification of use potential of timber species  Participate in the identification of appropriate technologies for specific timber species  Submit and support the report of the wood technology study

TERMS OF REFERENCE FOR THE WOOD TECHNOLOGY ASSISTANCE SPECIALIST

A. Qualifications

 Chartered forest engineer  Preferably with an advanced academic degree  At least five years experience in the wood technology area  Good verbal and written communication skills.

B. Duties

 Participate in studies on prevention and control of non-biological wood decay agents  Participate in wood technology studies  Represent the project in local and national events  Participate in meetings organized by the project  Submit and support the report of the wood technology study

TERMS OF REFERENCE FOR THE WOOD TECHNOLOGY ASSISTANCE SPECIALIST

A. Qualifications

 Chartered forest engineer  Preferably with an advanced academic degree  At least five years experience in the wood technology area  Good verbal and written communication skills.

B. Duties

 Participate in technological studies on prevention and control of non-biological wood decay agents  Represent the project in local and national events  Participate in meetings organized by the project  Participate in information processing, development of database and identification of use potential of timber species  Participate in the identification of appropriate technologies for specific timber species  Submit and support the report of the wood technology study

TERMS OF REFERENCE FOR THE GIS EXPERT

A. Qualifications

 Forest engineer specialized in Geographic Information Systems  A minimum of three years experience in the field  Verbal and written communication skills

B. Duties

 Participate in the activities related to information processing, development of database and identification of potential uses for target timber species  Participate in meetings organized by the Project

TERMS OF REFERENCE FOR THE FACILITATORS

A. Qualifications

 Professional with experience in the facilitation of events  Knowledge of the subject matter  Knowledge of the social and cultural context of communities involved in forest activities  Ability to manage and use communication and training techniques  A minimum of 05 years experience in workshop coordination and facilitation

B. Duties

 Propose programs/agendas for project events  Organize and facilitate project events

TERMS OF REFERENCE FOR THE PROJECT EVALUATION EXPERT

A. Qualifications

 University degree in social or communication sciences or related discipline or forest engineer with experience in participatory evaluations  Professional experience in the coordination and facilitation of events  Knowledge of the social and cultural context of communities involved in forest activities  Ability to manage and use communication and training techniques  A minimum of 05 years experience in the area of participatory evaluation

B. Duties

 Facilitate the participatory evaluation of the project, assessing the standard and quality of outputs and results obtained in accordance with the indicators established by the project  Submit recommendations for better project impact and management

SUBCONTRACT REQUIREMENTS

Subcontract 1 Technical editing for the preparation of a technical manual

Requirements

 Individual or company  Expertise in the forestry field  Experience in technical document editing  Good drafting and spelling skills

ANNEX 4. References

ASTM. NORMA – D1413-96 Standard Method of Testing Wood Preservatives by Laboratory Soil – Block Cultures. American Society for Testing on Materials.

AWPA. NORMA M10-91. Standard Method of Testing Wood Preservatives by Laboratory Soil-Block Cultures. American Wood-Preservers’ Association. 1991.

BAZAN, S, 1970. Mancha azul de algunas maderas peruanas. In: Revista Forestal del Perú 4(1/2): 32/41, UNALM. Lima.

BECKER G. 1976. Los termes y la madera. IN: UNASYLVA 28(1):2-11.

CALZADA, J. 1985. Métodos estadísticos para la investigación. 3rd Ed. Editorial Jurídica S.A. Lima. 644 pp.

CARTWRIGHT, K. FINDLAY W, P. 1958. Decay of timber and its prevention. Forest Products Research Laboratory. London. 101 pp.

DIRECCION GENERAL FORESTAL Y DE FAUNA SILVESTRE. Perú Forestal en números. Ministry of Agriculture. Lima. 2011.

GONZALES, R. 1970. Durabilidad natural de 53 especies forestales de Yurimaguas. IN: Revista Forestal del Perú. 4(1-2): 75-89.

------1974. Preservación de la madera. Convenio UNALM-MEM.101 pp.

GUEVARA C. 1987. Evaluación toxica e ignifuga de dos preservadores hidrosolubles para maderas. Forest Engineering Thesis. UNALM. Faculty of Forestry. Lima. 92 pp.

------1995. Estudio del efecto preservador de los extractos hidrosolubles de aserrín y corteza de cedro y tornillo. Convenio IIAP-FUSEVI-RAAA. Pucallpa. 9 pp.

------. Características de preservación de 30 maderas. In: Folia Amazonica 8(1):63-74. GUEVARA L. y LLUNCOR D. Durabilidad natural y adquirida de 27 maderas tropicales en condición de campo. IN: FOLIA AMAZONICA 5(1-2):197-207

HUNT, G.M.; GARRAT, G.A. 1964. Preservación de la madera. Salvat Editores. Barcelona. 486 pp.

JUNTA DEL ACUERDO DE CARTAGENA.1988. Manual del grupo andino para la preservación de maderas. Proyecto subregional para la promoción industrial de maderas para la construcción. Lima. 150 pp.

NOVOA, L. 2006. Manual de buenas prácticas de manufactura para la preservación de madera aserrada; acorde a los estándares expresados en las propuestas de normas. Dirección Nacional de Desarrollo de Comercio Exterior. Vice Ministerio de Comercio Exterior. 36 pp

LEON W y ESPINOZA N. 2001. Anatomía de la madera. Universidad de los Andes. Consejo de Publicaciones. Mérida. 397 pp.

INSTITUTO NACIONAL DE INVESTIGACIONES TECNOLOGICAS Y NORMAS TECNICAS. NORMA 251.026-74. Penetración y retención de los preservadores en la madera. Lima 3 pp. ------251.032-79. Clasificación de las maderas nacionales por sus características de preservación. Lima. 3 pp. ------251.035-87. Preservación de maderas. Composición química de los preservadores. ------251.020-88. Preservación de maderas. Preservadores. Definiciones y clasificación. Lima. 3 pp.

NTP 251.026.1974. Penetración y retención de los preservadores en la madera. INDECOPI.Lima 3 pp.

NORMA TÉCNICA NACIONAL 251.001. 1989. Madera. Terminología. ITINTEC. Lima. 12 pp. 52

NTP 251.010. 2004. Maderas. Método para la determinación del contenido de humedad. INDECOPI. Lima. 3 pp.

KOLLMAN, Franz F.P. And COTE Jr. W.A. 1986. Principles of wood Science and technology – Solid wood. Vol. I Knew York, Springer Verrlag. 592 pp.

LOAYZA V, M.1982. Resistencia natural de maderas de diez especies forestales al ataque de termitas. Revista Forestal del Perú. V 11(1-2): 32-47.1982-83.

MINISTERIO DE AGRICULTURA. INSTITUTO NACIONAL DE RECURSOS NATURALES, Intendencia Forestal y de Fauna Silvestre Centro de Información Forestal-CIF. Anuario Forestal 2012. Lima. 123 pp.

PESSON P. 1998. Ecología forestal. Ed. Mundi prensa. Madrid. 393 pp.

Project PD 95/90 – Forest Management in the Alexander von Humboldt National Forest.

Project PD 37/88 – Industrial Utilization of New Forest Species in Peru.

Project PD 512/08 Rev. 2 (I) – Utilization and Marketing of Ten Potential Timber Species from Secondary and Residual Primary Forests.

RENGIFO, J. 1990. Durabilidad natural de la madera de nueve especies forestales de la familia Bombacáceos. IN: Revista Forestal del Perú 19(1):54-59.

REYNEL 2006 Arboles promisorios de la Amazonía peruana. UNALM. Lima. 78 pp.

RODRÍGUEZ B., J. 1998. Patología de la madera. Ed. Mundi Prensa. Co – edition. Fundación Conde del Valle de Salazar. Madrid. 349 pp.

ROSADO, E. 2009. Eficacia y costos de tratamiento antimancha en madera rolliza y aserrada de dos especies suceptibles Hura crepitans l. (catahua) y Ficus anthelmintica mart. (oje) en la concesión David Paucar Nestares en Puerto Zungaro – Huanuco. Forest Engineering Thesis. UNU/FCF. 89 pp.

TOLEDO, E. 2006. Mercado y desarrollo de la industria forestal con especies de maderas no tradicionales. CIID. Lima. 18 pp.

TRUJILLO, F., F. 1987. Durabilidad natural de cinco maderas tropicales. Forest Engineering Thesis. National Agrarian University of La Molina. Faculty of Forestry. Lima. 94 pp.

ZAMBRANO, L. 2007. Determinación de las características de preservación de la madera de Croton lechleri Mull Arg. (sangre de grado) por el método de difusión con compuestos de boro. Forest Engineering Thesis. UNU/FCF. 82 pp. http://redalyc.uaemex.mx/pdf/621/62101205.pdf

ANNEX 5. Susceptibility of lesser-known species

Susceptibility to biological deterioration agents Ecological MCD Commercial SCIENTIFIC NAME Common name FAMILY Powderpost Uses Blue Bark range (cm) value Rotting beetle stain borers (Lyctus spp.) Laminated veneer, Ceiba samauma Huimba negra BOMBACACEAE x x x x TmF 41 Potential non-structural uses Laminated veneer, Chorisia insignis Huimba blanca BOMBACACEAE x x x x TmF 41 Potential non-structural uses TmF Laminated veneer, Ceiba pentandra Lupuna blanca BOMBACACEAE x x x x 41 Ongoing non-structural uses TmF Laminated veneer, Cavanillesia sp Lupuna colorada BOMBACACEAE x x x x 41 Potential non-structural uses TmF Non-structural uses, Matisia bicolor Ducke Zapote BOMBACACEAE x x x x 41 Occasional sawmilling TmF Laminated veneer, Pachira acuatica Huimba colorada BOMBACACEAE x x x x 41 Occasional non-structural uses TmF Non-structural uses, Quararibea cordata Zapote BOMBACACEAE x x x x 41 Occasional sawmilling TmF Non-structural uses, Quararibea sp. Zapotillo BOMBACACEAE x x x x 41 Occasional sawmilling TmF Non-structural uses, Dialyanthera parviflora Favorito MYRISTICACEAE x x x x 41 Potential sawmilling TmF Non-structural uses, Iryanthera laevis Caupuri MYRISTICACEAE x x x x 41 Potential sawmilling TmF Non-structural uses, Virola calophylloides Cumala amarilla MYRISTICACEAE x x x x 41 Potential sawmilling Virola pavonis Cumala colorada MYRISTICACEAE x x x x TmF 41 Ongoing Timber for export Schyzolobium Packaging and Pashaco blanco CAESALPINACEAE x x x x TmF & DF 41 Ongoing amazonicum containers Non-structural uses, Hymenolobium sp. Pashaco negro FABACEAE x x x x TmF & DF 41 Occasional sawmilling Non-structural uses, Pithecellobium sp. Pashaco MIMOSACEAE x x x x TmF & DF 41 Occasional sawmilling Non-structural uses, Piptadenia sp Pashaco colorado MIMOSACEAE x x x x TmF & DF 41 Occasional sawmilling Macrolobium sp Pashaco cutanillo MIMOSACEAE x x x x TmF & DF 41 Potential Unspecified Inga sp. Shimbillo MIMOSACEAE x x x x TmF & DF 41 Potential Unspecified Parkia pendula Shimbillo pashaco MIMOSACEAE x x x x TmF & DF 41 Potential Unspecified Enterolobim sp. Vilco pashaco MIMOSACEAE x x x x TmF & DF 41 Potential Unspecified Non-structural uses, Plagioceltis sp. Paujil ruro ULMACEAE x x x x TmF 41 Potential sawmilling Non-structural uses, Sorocea quilliminiana Yanchama MORACEAE x x x x TmF 41 Occasional sawmilling Non-structural uses, Poulsenia armata Yanchama MORACEAE x x x x TmF 41 Occasional sawmilling Non-structural uses, Apeiba menbranaceae Maquizapa ňaccha TILIACEAE x x x x TmF & DF 41 Occasional sawmilling Maquizapa ňaccha Non-structural uses, Apeiba tibourbou TILIACEAE x x x x TmF & DF 41 Occasional blanca sawmilling Sources: Peru Forestal en numeros 2011. Forest and Wildlife Directorate. MINAG, SYBILLE A. RODRIGUEZ M. 1996. Manual de identificación de especies forestales de la subregión andina. Project PD 150/91 Rev. 1(1). INIA - ITTO.

National Timber Confederation. 1998. Compendio de información técnica de 32 especies forestales - Volumes I & II. CITE Madera. Ministry for Production.

Dongo G. Nombres cientificos de especies forestales del Bosque Nacional Alexander von Humbolt. ITTO Project PD 95/90 (F) / INRENA Project – Forest Management in the Alexander von Humbolt National Forest.

Forest Research and Training Center . CICFOR Macuya. 2006. Forest Inventory. National University of Ucayali /University of Praga, Czech Republic. Project on technological and market study of ten species from secondary and residual primary forests. 2012. ITTO/ DGFF/ AIDER. Prepared by: In-house

BASELINE CRITERIA TO BE CONSIDERED FOR THE PARTICIPATORY SELECTION OF THE SPECIES TO BE USED IN THE RESEARCH TO BE CARRIED OUT ON PREVENTION AND ONGOING TIMBER PRESERVATION TREATMENTS

In accordance with the project “Promoting Biological and Non-biological Agent Prevention and Control Techniques in Mechanical Timber Processing in Peru”, the selection of species shall be carried out in a participatory manner, taking into account the experiences of both loggers and forest concessionaires, the information contained in the forest inventories submitted by concessionaires for the approval of their YPOs over the past three years, the preferences of forest producers, and the technical and scientific opinions of professionals, researchers and educational experts. In order for the study to have the required impact, the selected timber species should be abundant and commonly found in the remaining primary forests and should have been subject to in-depth technical studies so as to determine their use suitability. The selection process will also take into account characteristics such as stem form, the average phytosanitary condition of the species, and species defects and traditional uses, particularly of the wood.

The preliminary list of species to be proposed for participatory selection shall follow the aforementioned criteria and shall be organized into botanical families of commercial and industrial potential.

The Bombacaceae family comprises species that reach large diameters and good heights; they are abundant and common in the tropical forests of Latin America; in Peru their range area includes the departments of Madre de Dios, Loreto, Ucayali and San Martin. These species grow in alluvial forests and areas of natural or man-made clearings; logging and hauling operations are therefore simplified and costs reduced, thus increasing the competitiveness of the roundwood. With the exception of Lupuna (Ceiba pentandra), which has been used since the last century for the manufacturing of plywood and is considered to be a vulnerable species, the remaining Bombacaceae species are found in abundant volumes and can be harvested and used to replace Lupuna. The National Timber Confederation has carried out complete, documented and systematized wood technological studies on some Bombacaceae species (black huimba, punga, red lupuna, etc.). The timber from these species can also be used for the production of sawnwood for non-structural uses.

The Miristicaceae family is comprised of semi-sciophytic species that grow in the medium stratum of the forest. They reach medium size diameter and height; they are abundant and commonly found in the tropical forests of Latin America. In Peru their range area includes the departments of Madre de Dios, Loreto, Ucayali and San Martin. They grow in seasonally flooded forest clusters, and logging and hauling operations are therefore simplified and costs reduced, thus increasing the competitiveness of the roundwood. The Red Cumala species has been used since the last century for the production of sawnwood; this species is primarily geared towards domestic markets where the temperature and relative humidity conditions do not favor biological deterioration. The species is also exported to international markets, particularly to Mexico and the United States of America, after being treated and air-dried. Complete technological studies have been carried out for some Miristacaceae species (favorito, cumala caupuri, white cumala, IIAP, 2004; C).

Caesalpiniaceae, Fabaceae and Mimosaceae are all sub-families of the Leguminosae family and are widely present in the tropical and sub-tropical moist forests of Central and Latin America. In Peru they are found in the departments of Madre de Dios, Loreto, Ucayali and San Martin. Helophytic by nature, these are pioneer species in the colonization of natural or man-made clearings. They are very commonly found in logged-over primary forests and secondary forests. Many of these species produce edible fruits. These species are also suitable for urban tree planting projects aimed at providing environmental services. They reach medium size diameter and height and are harvested locally for use in the construction industry. The demand for Pashaco (Schizolobium parahyba (Vell:) S.F.Blakeesta) is rapidly increasing, particularly in the department of Madre de Dios. It is used for the manufacture of packaging for agricultural and agro-industrial products. Complete technological studies have been implemented for some species (shimbillo, tanner pashaco, IIAP, 2004; vilco pashaco, black pashaco, Arostegui et al 1980). Some of these species may potentially become important producers of tannin for the tanning industry as their bark can be used for this purpose (Panduro, 2012, UNU).

The Ulmaceae family of plants has not been widely studied, with the exception of the wood from the Pujil ruro species (Ampelocera ruizii) (Arostegui et al 1980). This species has been found to be abundant in highly logged-over primary forests (APROFU, 2012; CICFOR Macuya, 2006). Forestal Gil SSRL, in cooperation with the Forest Producers Association of Ucayali and the National University of 56

Ucayali (UNU), is currently implementing a complete technological study on the use suitability of this species.

The Moraceae family of plants has some timber producing species that are widely found in the tropical and sub-tropical moist forests of Latin America and are occasionally traded in the market (congona, manchinga, mashonaste, capinuri, panguana, etc.). In Peru their ranbge area includes the departments of Huanuco, Madre de Dios, Loreto, Ucayali and San Martin. Complete technological studies are available for the Yanchama species, which has been classified as an ideal timber species for the manufacture of school furniture (National Agrarian University of La Molina, 1997).

The Tiliaceae family is widely found throughout the tropical and sub-tropical moist forests of Latin America. In Peru their range area includes the departments of Huanuco, Madre de Dios, Loreto, Ucayali and San Martin. Timber from the Maquizapa ñagcha species (Apeiba menbranaceaey, Apeiba tibourbou) is occasionally traded in the market; it is particularly suitable for uses that require thermal or acoustic insulation. Furthermore, its anatomical structure, particularly of the parenchyma tissue, gives it an attractive appearance for ceilings, doors and linings. Complete technological studies have been carried out on Apeiba menbranaceae timber (Arostegui et al, 190, Project on the Technological and Market Study of Ten Species (ITTO-DGFF-AIDER, 2012).

ANNEX 6. Recommendations of ITTO Expert Panel

PD 689/13 (I) Promoting Prevention of biological and non-biological and control techniques in mechanical wood processing in Peru.

Tabular presentation of modifications made in response to the 45th Expert Panel’s recommendations

Comment Modification made The social equity and gender equality approach Requested modifications have been included in mentioned under the Project Brief should be reflected sections 1.3.2a & b, 2.1.2 and 3.1.2. in the proposal by having clear mechanisms for ensuring the participation of local/indigenous communities, and women. These actors should be also included in the Stakeholder analysis. The proposal cites relevant literature; however a list of Consulted references have been included as references should be incorporated. Annex 4. Under Social, cultural economic and environmental Mitigation measures have been included in section aspect, it is mentioned that the implementation of the 1.3.2d. proposal could have some negative environmental aspects, and it would be desirable to further elaborate on the mitigation measures to avoid them. The problem tree presents some overlaps which are Weaknesses have been addressed and then also reflected in the Logical Framework Matrix corresponding modifications have been included in (LFM), in particular in outputs 2 and 3, and this could sections 2.1.3 and 2.1.4. be revised for clarity purposes. In the LFM some of the measurable indicators used for The increase in harvestable volumes has been the Development and Specific Objectives are reduced to 7 m3/ha, which is an achievable value. aspirational, out of the scope and control of the project The increase in profitability has been reduced to (i.e. increase of harvested volume from 5 to 10 m3/ha, 10%, which is an achievable value. increase of profitability to 20%, etc.), therefore these The increase in species harvesting has been set at need to be revised in terms of realistic achievements 15%. within the ambit of the proposal. These modifications have been made in sections 1.4, 2.2.1 and 2.2.2. As for the budget, the proposal needs to justify the It was decided to remove the GIS specialist from involvement of a GIS Specialist for activity 1.4, and if activity 1.4. not needed, modification should be done accordingly across all budget tables. Totals and subtotals should Section 3.4 has been modified as requested. be included in the Master budget. ITTO monitoring and evaluation cost should be increased at an average of US$10,000/year, Ex-post evaluation should be increased to US$15,000.00, and Programme Support should be calculated at a rate of 12%. Under sustainability there is a need to further elaborate The information on social sustainability has been on social sustainability, and evidence should be further elaborated in section 3.5.1. attached on how local needs were taken into account when drafting the project proposal. Baseline information of LUS in the area of the project Presented in tabular form as Annex 5. should be attached. Include an Annex that shows the overall assessment This annex includes the EP recommendations and and specific recommendations of the Forty-fifth Expert corresponding modifications, which have been Panel and respective modifications in tabular form. highlighted in bold and underlined in the text. Modifications should also be highlighted (bold and underline) in the text.