INTERNATIONAL TROPICAL TIMBER ORGANIZATION

ITTO

PROJECT PROPOSAL

TITLE: UPGRADING AND STRENGTHENING OF THE NATIONAL FOREST STATISTICAL INFORMATION SYSTEM IN VENEZUELA

SERIAL NUMBER: PD 196/03 Rev.1 (M)

COMMITTEE: ECONOMIC INFORMATION AND MARKET INTELLIGENCE

SUBMITTED BY: GOVERNMENT OF VENEZUELA

ORIGINAL LANGUAGE: SPANISH

SUMMARY The National Forest Statistical Information System was launched in 1992, to plan, coordinate and supervise the statistical databank and develop automatic systems to process such data.

Today the system is centralized in the General Directorate for Forest Resources of the Ministry for the Environment and Natural Resources based in Caracas, since this is the regulating body for the country's forest activity. The system consists of four modules, i.e. National Production in Forest Reserves and Woodlots, National Production outside Forest Reserves and Woodlots, Forest Industries and International Trade. These are set up in a LAN (local area network) with four workstations.

The General Directorate for Forest Resources uses the system as an operational, consultation and activity record tool. Although it has not been possible to coordinate and integrate information management with other government, non- government and private sector institutions handling statistics, and although it does not cover information collected from priority areas such as Barinas, Bolívar, Monagas and Delta Amacuro, which are the states with the largest forest cover and number of protected areas under the Forest Reserve, Woodlots and Protected Forest Areas classification, the system has been found to be beneficial and has gained increasing credibility from forest sector stakeholders in the country.

Having recognized the weaknesses of the present national information system, it is necessary to take the maximum advantage of existing expertise in order to strengthen the system. This will begin with a diagnosis to identify the need for information, improving relationships with information-generating institutions to strengthen existing modules and develop new modules on Forest Plantations, Non-timber Forest Products, Forest Management, Forest Management Monitoring and Control, and Local Communities, as well as four regional nodes in the states of Bolívar, Barinas, Delta Amacuro and Monagas, with a view to decentralizing the gathering, processing and validation of forest statistical information in the relevant institutions in a timely manner.

Therefore, this project proposal aims to strengthen the National Forest Information System with the various institutions generating information in the country, integrating forest information under the same statistical technical and technological criterion so that it may serve as support and measure of the contribution made by the forest sector to the social, economic and environmental development of the country.

EXECUTING AGENCY: GENERAL DIRECTORATE FOR FOREST RESOURCES (DGRF) OF THE MINISTRY FOR THE ENVIRONMENT AND NATURAL RESOURCES (MARN)

DURATION: 24 MONTHS

BUDGET AND POSSIBLE Source Contribution in US $ SOURCE OF FINANCE: ITTO 384,265 Government of Venezuela 154,737 TOTAL 539,002

TABLE OF CONTENTS

PART I. CONTEXT

1. Origin 2. Sectoral Policies 3. Programmes and operational activities

PART II. THE PROJECT

1. Project objectives 1.1 Development Objective 1.2 Specific Objective(s) 2. Justification 2.1 Problems to be addressed 2.2 Intended situation after project completion 2.3 Project strategy 2.4 Target beneficiaries 2.5 Technical and scientific aspects 2.6 Economic aspects 2.7 Environmental aspects 2.8 Social aspects 2.9 Risks 3. Outputs Specific Objective 1 - Output 1 - Output 2 - Output 3 - Output 4 - Output 5 4. Activity 4.1 Output 1 Activity 1.1 Activity 1.2 Activity 1.3 Activity 1.4 Activity 1.5 Activity 1.6 4.2 Output 2 Activity 2.1 Activity 2.2 Activity 2.3 Activity 2.4 4.3 Output 3 Activity 3.1 Activity 3.2 Activity 3.3 Activity 3.4 Activity 3.5 Activity 3.6 Activity 3.7 Activity 3.8 4.4 Output 4 Activity 4.1 Activity 4.2 4.5 Output 5 Activity 5.1 Activity 5.2 Activity 5.3 Activity 5.4

-1- 5. Logical framework worksheets 17 6. Work plan 19 7. Inputs required by outputs/activities with estimated costs 20 7.1 Overall project budget by activities 24 7.2 Annual Budget by source – ITTO 25 7.3 Annual Budget by source – Executing Agency/Government 26 7.4 Consolidated Budget by source of finance 27 7.5 Consolidated and annual project budget 28 7.6 Project Personnel 29

PART III: OPERATIONAL ARRANGEMENTS

1. Management Structure 30 2. Monitoring, Reporting and Evaluation Activities 30 3. Future Operation and Maintenance 31

PART IV: TROPICAL TIMBER FRAMEWORK

1. Compliance with ITTA 1994 Objectives 32 2. Compliance with ITTO Action Plan 32

ANNEXES

A. Profile of the executing agency 33 B. Terms of reference of key staff 35

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PART I. CONTEXT

1. ORIGIN

The National Forest Statistics Information System was launched in 1992 within the Forest Planning and Economics Directorate of the Venezuelan Forest Service with the aim of planning, coordinating and supervising the statistical databank and developing automatic systems to process such data.

In recent years forest statistics have shown a high dispersion and duplication of human effort, out of date and insufficient statistical information systems, lack of relevant and timely information required for decision-making purposes and to serve as the basis for the design and implementation of economic policies, programs and strategies aiming at the social welfare of the population.

Despite the above limitations, forest sector statistics have been prepared on the basis of a centralized National Information System, based at the General Directorate for Forest Resources headquartered in Caracas. The information gathering mechanisms of the Directorate are subjected to validation, upgrading and extension, and also publish information every year as follows: Forest Statistics Yearbook, Forest Statistics Newsletter and Directory of National Forest Industries.

Although other systems are under development in other similar entities, these have not been incorporated into the National Forest Statistics Information System, which offers not only the possibility of recording, manipulating and presenting information of statistical interest, but also data and information inherent to the various roles and competences of the Ministry for the Environment regional bodies.

It must be stressed that in preparing this project proposal, due consideration was given to the last Training Seminar on Tropical Forest Statistics and Tropical Timber Production and Trade (PD 25/95 Rev.1 (M)), which allowed the exchange of expertise and knowledge on other forest information systems (FIS), financed by ITTO. Account was also taken of Decision 8 (XXI) of ITTO, which, among others, ratifies the guidelines for FIS development and for the preparation of projects related to these systems, Project PD 34/00 Rev.2 (M) Extension and Strengthening of the National Forest Statistics Information System of the Government of Bolivia and finally, Project PD 73/89 (M,F,I) Training Workshops for ITTO Project Design, which provided training on the format established by that Organization for Project and Pre-Project proposals.

This proposal, therefore, is aimed at strengthening the National Forest Information System with the various institutions generating information in the country, integrating forest information under the same statistical technical and technological criterion so that it may serve as support and measure of the contribution made by the forest sector to the social, economic and environmental development of the country.

2. SECTORAL POLICIES

The Venezuelan Forest Resource conservation policy is based on environmental policy principles as provided by the Constitution of the Bolivarian Republic of Venezuela (Articles 127 to 129), whereby the attention of the State will be addressed to the defence and conservation of natural resources, guiding utilization and use mainly for the collective benefit of all Venezuelans.

The National Plan for Territory Management regulates these aspects as a function of principles such as: forest ecosystems management and conservation, acknowledgement of the multiplicity of forest uses and functions, appreciation of the latter as an important element of the national economy, the need to launch rational activities to maintain and increase forest cover through reforestation and forestation of unproductive, deforested and degraded lands, employment and social welfare generation, harmonization of national and external demand with resource supply.

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The Ministry for the Environment and Natural Resources (MARN), through the General Directorate for Forest Resources, which is the policy-making body for forest issues in Venezuela, is in charge of supervising, monitoring and implementing management plans developed in the forest areas of the country, and is also in charge of the national forest statistics information system.

The Organic Law for Territory Management provides (article 15) a theoretical definition of areas subjected to a special management scheme in accordance with special laws.

The Environment Organic Law (article 3, paragraph 3 and article 15), Central Administration Organic Law (article 36, paragraph 11), relating to the establishment, protection, conservation and improvement of Areas under Special Administration (ABRAE), with a view to ecological balance and collective welfare of the population.

The Soils and Water Forest Law in force since 1966, states that forest resources are for public purposes and that their sound management, conservation and development, and the sound utilization of forests and soils, introduction of non native forest species, reforestation and preparation of a national forest inventory, are of national interest. Its By-laws regulate the utilization of forest resources, which is subject to technical measures provided by MARN, to obtain optimum use of, and foster the country’s forest wealth, protect its waters and fauna and conserve soils in both public and private lands. It also provides the penalties and sanctions to be applied in case of breaches of the Soils and Water Forest Law.

The Soils and Water Forest Law is divided into Titles and Chapters, and these refer to aspects such as Forest Protection – including National Parks, Protection Areas, Watersheds, Forest Fires, Pastures, Land Clearing; Forest Utilization – including forest utilization in Forest Reserves, lands affected by the Agricultural Reform, Public or Private National Lands and Private Lands; Forest Products Harvesting; Soil Utilization; Waters; Fiscal Provisions and Penalties, Seizures and Auctions of forest products.

Decree 1659 (gazetted in the Official Bulletin of the Republic of Venezuela N. 34,808 of 27/09/91), provides the regulations for reforestation when forest products are harvested from public or private lands and national public or private lands.

The Environmental Care Regulation (Decree 1221 of 2/11/90, gazetted under number 34678 on 19/03/91), provides the regulations for the organization, operation, mandate and coordination of bodies and officials for the prevention, monitoring, control, audit, sanction and repression of actions or omissions that are directly or indirectly liable to degrade the environment and natural resources.

Environmental Criminal Law and its Technical Bylaws (3/01/92, gazetted under number 4358 Ext.), aim to “criminalize acts that are contrary to provisions relating to the conservation, defence and improvement of the environment for the benefit of living standards”, and provides the relevant criminal penalties.

An important event for the forest sector is the classification of the National Forest Statistics Information System as one of the priority programs of the General Directorate for Forest Resources at present. Thus it is assigned the political will that is an indispensable factor for its implementation.

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3. PROGRAMMES AND OPERATIONAL ACTIVITIES

The Government of Venezuela is changing its forest policy; the major changes include:

Present Policy Forest Policy

 Vision of the forest as a simple timber  Holistic vision of the forest as generator producer. of goods and services.

 Forest management based on  Forest management based on sustainable timber yield. environmental, social and economic  Aimed at the industrial processing of sustainability principles. timber.  Aimed at a balance between human  Maximum timber sustainability. needs and forest conservation.

 Large areas of production forest in few  Maximum collective welfare. hands.  Local communities’ involvement in forest  High impact technologies for timber management. utilization.  Application of new, low impact technologies in forest management.  Selective utilization of timber species. Minimum intervention in the forest.

 Integrated utilization of timber, non-  Forest management through concession timber species, and forest environmental companies. services.

 Forest management through new community forms and structures (Cooperatives, Associations, etc.) and Private Concessions.

Two projects have been submitted in the country, with ITTO and Venezuelan Government finance, to wit, Project PD 49/94 Rev. 1 (F) Establishment of an Ongoing Forest Monitoring Network (Permanent Growth Lots) in the Guyana Forest Reserves and Woodlots, with the objective of accessing reliable information on forest responses to interventions, and Project PD 49/96 Rev. (F) I Latin American Workshop on Tropical Forests, with the aim of making a contribution to sustainable management of tropical forests in Latin American countries. Furthermore, Project PD 55/98 Rev.3 (F) Mangrove Evaluation in the North Eastern Delta of the Orinoco in Venezuela, with a view to Sustainable Forest Utilization.

Doubtless one of the key elements of the development of the forest sector is having knowledge of national forest resources. This is why FAO and Government of Venezuela funds are being used to develop the Methodology for the implementation of the national forest inventory, in order to gain accurate information on forest changes, their causes and present status.

Thus, actions may be initiated to monitor and mitigate the degradation and deforestation of the country's forests. Also, the Inventory will show clearly the areas with the optimum potential for commercial plantation development, so that lands that are not suitable for agricultural activities may be diversified.

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PART II. THE PROJECT

1. PROJECT OBJECTIVES

1.1 Development Objective

Strengthening the National Forest Information System with the various institutions generating information on the country, integrating forest information into the same statistical technical and technological criterion so that it may serve as support and measure of the contribution made by the forest sector to the social, economic and environmental development of the country.

1.2 Specific Objective

Specific Objective

To adapt and redesign the present forest statistical information system, introducing uniform processing criteria, strengthening existing modules, creating new modules and developing four regional nodes to decentralize the gathering, analysis, processing and validation of information.

2. JUSTIFICATION

2.1 Problems to be addressed

The existence of different figures for Venezuela's forest resources and the uncertainty generated within public institutions and companies, are the result of the variability of approaches used by institutions in charge of generating the information. Therefore it is necessary to solve the problem of integration of statistical natural and plantation forest information in a consistent manner, so that unified and timely information is available, taking into account the expertise accumulated by the country in compiling, analysing and disseminating statistical forest sector information.

The National Forest Statistics Information System actively interacts with all the government, non- government, private sector and civil society bodies relating to the forest sector (see Table 1), covering collection of information along the whole production chain, from forest management of natural and plantation forests to production, processing and marketing of forest products. The system covers the national territory, with information originating in the 23 State Environmental Directorates and the 91 Administrative Areas of MARN, for the basic gathering of all the information for the sector.

Table 1. Institutions gathering and receiving statistical forest information

Institutions Information generated Information received Public sector Ministry for Planning and Development Statistical Forest Yearbooks and Newsletters National Statistics Institute Import and Export of forest Statistical Forest Yearbooks products and Newsletters Ministry of Production and Trade Statistical Forest Yearbooks and Newsletters National Reforestation Company Reforested Area Statistical Forest Yearbooks and Newsletters Latin American Forest Institute Statistical Forest Yearbooks and Newsletters National Forest Products Laboratory Information on forest species Statistical Forest Yearbooks and products and Newsletters CVG – Forest Products from the East Plantation forests Statistical Forest Yearbooks and Newsletters Central Bank of Venezuela Macroeconomic Forest Sector Yearbooks, Statistical Indicators Newsletters and general statistical information

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Institutions Information generated Information received Private Sector National Association of Pulp, Paper and Statistics on Pulp, Paper and Statistical Forest Yearbooks Cardboard Producers (APROPACA) Cardboard and Newsletters Forest Industrial Managers Association Volume utilized under Statistical Forest Yearbooks ASOINBOSQUES Management Plans and Forest and Newsletters Management Directory of Forest Industries National Association of Forest Planters Plantation forests Statistical Forest Yearbooks (ASOPLANT) and Newsletters National Association of Veneer and Statistics on the Plywood Statistical Forest Yearbooks Plywood Industries (ANICC) Industry and Newsletters National Association of Particle Board Statistics on the Particle Board Statistical Forest Yearbooks Manufacturers (ANFA) Industry and Newsletters National Association of Furniture and Statistics on the Joinery Statistical Forest Yearbooks Similar Industries (ANIMA). Industry and Newsletters Independent Association of Timber Statistical Forest Yearbooks Industries (ASOMAPI) and Newsletters Graphic Arts Industries Association (AIAG). Statistics on the Graphic Arts Statistical Forest Yearbooks Industry and Newsletters

NGOs

Foundation for the Defence of Nature Statistical Forest Yearbooks (FUDENA) and Newsletters

Foundation for the Protection of Trees Statistical Forest Yearbooks and Newsletters

The system is centrally managed from the General Directorate for Forest Resources of the Ministry for the Environment and Natural Resources in Caracas, the regulator of the country's forest activity.

The four workstations are connected to a LAN (local area network) that operates with a Novell Netware 3.11 operating system, installed in 1993, with a linear bus topology, RG-58 cabling and IPX protocol. The workstations use DOS 6.0 operating system in a Windows 95 environment.

The collection of information in the field is done through surveys, to feed the four operating modules of the system, i.e.: National Production in Forest Reserves and Woodlots, National Production outside Forest Reserves and Woodlots, Forest Industry and International Trade, and they constitute the primary source of information (see Table 2).The surveys have been designed for compatibility, with minimum national information requirements, and provide a suitable framework for the collection of figures in the field.

Table 2. Modules of the Present System of Statistical Forest Information

Existing Modules Information processed Production in Forest Reserves and Woodlots . Production of Logs by species and federal institution within Forest Reserves and Woodlots . Production of Secondary Products in Forest Reserves and Woodlots Production outside Forest Reserves and . Production of Logs by species and federal Woodlots institution outside Forest Reserves and Woodlots . Production of Secondary Products outside Forest Reserves and Woodlots

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Existing Modules Information processed . Import of forest products International Trade . Export of forest products . Balance of Trade . Sawmilling Industry Forest Industries . Joinery Industry . Plywood Industry . Particle Board Industry . Charcoal Industry

The information generated by the system is published annually as Forest Statistics Yearbook, Forest Statistics Bulletin and Directory of Forest Industries, and it is distributed to the Documents Centres of the various government, non-government, and private sector bodies, and international organizations involved in the issue.

Although there are no mechanisms to validate the information in the field, thus leading to subjectivity in certain types of data such as prices, employment, volumes, and species, the System has shown its efficiency since it satisfies internal and external demand for information, thus lending it increasing credibility.

Regarding personnel, since 1992 there have been four full-time technical experts working exclusively with the system, in management, transcribing, programming, validation, maintenance and dissemination of forest sector statistical information.

Furthermore, system resources originate from the National Budget allocated by the Ministry for the Environment and Natural Resources, to the equivalent of 9,514,678 dollars for 2002 from the ordinary budget and its own income, of which 3% is allocated to the General Directorate for Forest Resources and the Directorate in turn, allocates 11% of its budget to the National Forest Statistics Information System.

A diagnostic study prepared by National Forest Statistics Information System personnel in December 2001, detected certain weaknesses, as follows:

. Difficulty in integrating information on forest plantations and non-timber forest products coming from other government institutions and the private sector.

. Insufficient communication infrastructure and equipment for the transfer and continuous updating of information.

. Inconsistencies in the use of measuring methods and unit conversion systems between government, non-government and private sector institutions.

. Obsolescence of the current data processing technological platform and software.

. A lack of mechanisms aimed at maintaining and strengthening inter-institutional relations.

. A lack of mechanisms for the field validation of information.

Despite these weaknesses, the General Directorate for Forest Resources has adopted the system as an operating, consultation and activity record tool. However, it has not reached other government, non- government and private sector institutions that handle statistics (see Table 1), and even less priority regions such as Barinas, Bolívar, Delta Amacuro and Monagas that are the timber states and areas with the largest number of protected areas under Forest Reserves, Woodlots and Protected Forest Areas where forest management plans are under current implementation.

Furthermore, difficulties have arisen in completing the Joint Forest Sector Questionnaire sponsored by ITTO, FAO, EUROSTAT, UNECE and the United Nations during 1998-2000, because in some cases the information is not available in time or is scattered and, in other cases, outdated, thus making it impossible to supply reliable and timely information to these institutions. In spite of these difficulties, the country has supplied adequate responses to the questionnaire in the last two years, considering the indicators for data quality established by the ITTO in the Annual Review and Evaluation of the World Timber Situation.

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Above mentioned weaknesses shall be considered in the implementation of the proposed project.

Problem Tree

The information currently generated by the National Forest Statistical Information System does not contribute to adequate forest management practices.

The statistical information available is not being widely used by key forest sector stakeholders such as government agencies, non-government organizations and the private sector.

The information generated by The forest statistical information the system is not reliable. is not timely produced to assist in decision-making.

The current Forest Statistical Information System is deficient.

Lack of integration of forest The current Forest Statistical Inadequate and outdated sector information. Information System is technology. centralized.

2.2 Intended situation after project completion

Upon completion of the project, the National Forest Statistics Information System will be consolidated as a result of the integration of information originating from other public and private institutions related with the sector.

There will be reliable technical statistics to enable the collection, analysis and processing of data as well as the dissemination of information; there will be qualified and trained personnel in government, non- government and private sector institutions that participated in the project, in areas such as gathering, processing, analysis and validation of information.

The General Directorate for Forest Resources will have specialist statistics software to support management activities for the conservation and sustainable development of the country's forests.

The project will gather information originating from different sources and, therefore, of various degrees of detail, for example, international trade data classified by species and products, responding to the growing need for information of the stakeholders involved with the system.

The System will help improve resource information validation and updating techniques as well as explore alternatives that contribute to improving the quality and quantity of available information, carrying out pilot tests in one region, using data originating from different sources and the relevant processes and procedures in the field.

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The project will identify the need for information, strengthen the relationship with institutions generating information in order to consolidate existing modules and constantly contribute to new modules, as well as accessing four regional nodes in the states of Bolívar, Barinas, Delta Amacuro and Monagas, decentralizing the collection, processing, analysis and validation of statistical forest information in a timely manner.

Finally the project will provide a web page for the National Forest Statistics Information System, to enable users to access an electronic yearbook of forest statistics in a fast and timely manner, reducing the cost of publications printing.

2.3 Project strategy

The project will be implemented to integrate substantial information generated by the various institutions, into one single system, incorporate uniform information processing criteria, improve present statistical information compilation and processing, to decentralize transcribing, processing and reporting activities and facilitate decision making and forest policy formulation.

The strategy of the project is based on providing reliable information for decision making, enabling the user to prepare statistical analyses and interpret data in order to apply analytical criteria to understand environmental processes, determine key products of forest activity and future trends, and implement national forest policy.

In its first phase, the project will decentralize information into four nodes established in priority regions, selected on the basis of the forest activity carried out, as follows: Barinas, Bolívar, Delta Amacuro and Monagas. These regions would be provided with the latest state-of-the-art equipment with the following minimum configuration in order to ensure an optimal level of communication with the MARN central node: Pentium IV Processor, 256 Mb RAM Memory, 40 Gb Hard Disc, 10/100 Red Fast Ethernet Card, 15" Color Monitor and Hewlett Packard Laser Printer.

In order to establish the link between the central node and the four regional nodes, the project will use the SIMAR communications infrastructure (Sistema de Información del Ministerio del Medio Ambiente y de los Recursos Naturales - Information System of the Ministry for the Environment and Natural Resources) which is currently being installed. This infrastructure will provide on-line communication with each of the four priority regions (Barinas, Bolívar, Delta Amacuro and Monagas), thus facilitating the immediate transcription and processing of information for the monitoring of relevant forest activities. It is envisaged that the whole country will be linked to the system during the second phase.

The project is totally viable in relation to the availability of equipment and purchase of the software, as it will be implemented on the basis of what is currently available (SIMARN and National Forest Statistics Information System communications infrastructure), as well as the purchase of new equipment with the aforementioned specifications and software upgrade licenses, to satisfy the requirements of the activities envisaged.

Through the project it will be possible to apply statistical analyses to the main system variables, establishing useful links for decision making. There will be special emphasis on personnel training, so that they can obtain reliable information and carry out critical analyses of the information obtained.

To this end, the Project operational activities will provide for the National Coordinator and two National Technical Experts to carry out four visits, of one-week duration each, to similar forest statistics information projects in Bolivia, Colombia, Panama and Peru, in order to exchange knowledge and experiences on the design of the systems, implementation modalities, technologies used, outputs, implementation efficiency, publications and the impacts and results obtained through the improvement of forest sector information.

There will be special emphasis on resource management, following managerial criteria that maximize capacity, and to comply with the decentralization process.

Monitoring of dynamic social and environmental processes may be evaluated once a tool such as this is available, with information gathering the key element to know these processes and for decision making.

With the establishment of new modules (see Table 3) and consolidation of existing modules as mentioned in paragraph 2.1, the capability of the present national forest statistical information system will be updated and consolidated, relating to: National Production, Forest Industry, International Trade, Plantation forests, Non-Timber Forest Products, Forest Management, Forest management Monitoring and Control, and

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Local Populations, improving its capacity for information collection, analysis, processing, relevance and dissemination.

Table 3. Proposed modules

Proposed modules Information to be processed  Area under forest plantations Forest Plantations  Volume by species  Location of plantations  Objective of plantations  Age  Main products Non-timber forest products  Quantity  Location  Management modality  Area under forest management Forest management  Research projects  Silvicultural programmes  Other economic activities carried out in the areas under forest management  Number of inhabitants in areas under forest Population management  Economic and subsistence activities undertaken by these communities  Area they occupy  Benefits derived from forest management  Level of compliance with the commitments Forest management monitoring and control established in the Forest Management Plan  Areas managed using reduced impact technologies  Protection measures for the control of forest fires, pests, diseases, illegal logging and other activities

The on-time analysis of trends will provide government, non-government and private sector bodies with information on forest sector evolution, perspectives and contribution to the national economy.

The information generated with this project will also serve as the foundation for the monitoring and definition of new environmental policies for the country and their relationship with international treaties signed with other countries in this area. Domestically, it will have a positive impact on the population's socio-economic circumstances, through the design of suitable forest policies.

Considering the need to strengthen inter-institutional coordination with organizations mentioned in Table 1, it is necessary to establish coordination mechanisms to improve such relationships.

Such mechanisms could be to include members of these organizations on the Project Executive Committee, or to conclude cooperation agreements between these institutions and the System, as well as inviting such institutions to become part of the Forest Statistics Subcommittee coordinated by MARN, which is aimed at achieving consultation, coordination, cooperation, integration and harmonization of forest statistics in Venezuela. Therefore, this proposal aims to upgrade and strengthen the capacity of the present national forest statistical information system, relating to: National Production, Forest Industry, International Trade, Plantation forests, Non-Timber Forest Products, Forest Management, Forest Management, Monitoring and Control, and Local Populations, improving its capacity for information collection, analysis, processing, relevance and dissemination, establishing new modules and consolidating existing ones, also extending their coverage through the decentralization of information into four nodes established in priority regions, from the point of view of forest activity carried out, i.e.: Barinas, Bolívar, Delta Amacuro and Monagas.

This project will be coordinated by the Ministry for the Environment and Natural Resources of Venezuela, which will coordinate activities through the General Directorate for Forest Resources. The implementation of this project happens at a time when the country is undergoing a process of transformation where

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Finally, it may be stated that, through this project, the country will access an updated and improved system that will serve as a forest conservation tool, to design forest sector policies, have a positive impact on the population, foster internal and external exchange, encourage foreign investment and, in general, contribute to Venezuela's economic growth.

2.4 Target beneficiaries

Direct beneficiaries are government, non-government and private sector institutions linked to the forest sector, as described in Table 1.

International organizations such as ITTO, FAO, CIFOR, ICRAF, with an interest in accessing statistical forest sector information.

Indirect beneficiaries will include society in general and particularly forest users such as forest labour and forest-dependant communities. With respect to the Development objective, it seeks to improve the population's living standards with an increase in production and share in the benefits derived from sustainable forest management.

Governor's Offices, Mayor's Offices, universities, research institutes, institutes of technology, consultancy offices, the National Parks Institute, the Simón Bolívar Geographical Institute, basic and diversified research centres, grassroots organizations such as cooperatives, producer associations, women's groups, etc.

These beneficiaries will receive reliable and timely information from the National Forest Statistics Information System, both in printed form (yearbooks, newsletters, directories), and in digital form (electronic publications).

2.5 Technical and scientific aspects

Implementation of the project will enable the evaluation of the strengths and weaknesses of the present forest statistical information system, encouraging a unified and permanent information registry with other government, non-government and private sector bodies related to the forest sector.

Information reliability has been a major issue for at least 10 years, and lately it has had a significant impact on the forest sector for the design of the National Forest Policy.

The information system will have a database that will store information gathered in the field and new data relating to forest sector variables resulting from the integration of new modules to the information system such as: Plantation forests, Non-Timber Forest Products, Forest Management, Forest Management Monitoring and Evaluation, and Local Populations. Furthermore, its scope will be extended by decentralizing information into four nodes set up in priority regions, from the point of view of forest activity that is to say: Barinas, Bolívar, Delta Amacuro and Monagas.

This system will have application programs to capture data and process them to produce information of interest to each one of the units under forest concessions that carry out management plans and forest management and to other areas under annual permits for forest utilization.

It is envisaged that the planned project activities will satisfy the forest statistical information needs at the central and regional levels in the various phases of the forest production chain, through the application of statistical theories and methods that will lead to the improvement and optimization of information gathering and processing activities. This will be achieved through the use of the advanced technological communications capabilities provided by the Internet, which will not only facilitate the dissemination of information but will also allow for consultations between the central node and the regional nodes established in the states of Bolivar, Barinas, Delta Amacuro and Monagas, thus ensuring the timeliness of information and optimum quantity and quality standards, which will in turn facilitate the decision-making process in the forest sector.

Furthermore, the aim is to upgrade the system that generates national forest statistics by creating a web page for the National Forest Statistics Information System to enable users of an electronic yearbook on forest statistics to access it in a quick and timely manner, thus reducing publication printing costs.

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2.6 Economic aspects

The project is based on the development of a unified information system on forest resources, integrating data originating from different sources within government, non-government and private sector institutions, extending and consolidating the existing data model and defining logical and physical integration procedures for the database and the computer platform.

Because of its features, the system does not seek immediate economic benefits, and its benefits will be long-term, a characteristic of the country's forest activity.

The collection, processing, analysis and dissemination of reliable information that allows decision-making in the forest sector is one of the short and medium-term benefits of the project, since by defining suitable policies, foreign investment will be encouraged and there will be a greater contribution of the sector to the National Gross Domestic Product.

In the regulation and monitoring area, the project will strengthen National Production within and without Forest Reserves and Woodlots, the Forest Industry and International Trade in accordance with existing and consolidated modules, and this will increase with the establishment of new modules as indicated in paragraph 2.1. Thus a contribution will be made through the evaluation of management indicators, conservation and development of the country's forests, on the basis of reliable statistics that have been compiled according to strict techniques in the field.

Regarding marketing, critical analyses will be possible on market behaviour, by species, forest product preference, timber price, product destination and potential export markets. Furthermore, forest sector trends will be analysed for a definite period of time, with medium-term projections for the sector and showing its recovery in the context of the country's economy.

2.7 Environmental aspects

Untimeliness of forest statistical information and the lack of complete information on the sector have an impact on forest management and on the management of forest resources.

On the other hand, the forest sector’s small share in the Gross Domestic Product (GDP) is the result, in some cases, of under-recording of data in the forest sector. This results in the reduced reliability of national accounts on the subject.

The aim is to find possible options to increase the forest sector’s contribution to the GDP by the end of the project. Also certain statistical indicators will be prepared to assess the sector’s performance and, therefore, to determine any necessary corrections to the current National Forest Policy.

2.8 Social aspects

Statistical forest information will be available to all natural and juridical persons in the country, and it will be possible to identify weaknesses in forest resources conservation and management, detecting problems and presenting alternative solutions for each community and region in the country. In this respect, information users become the direct beneficiaries of the project.

2.9 Risks

Factors that may affect the implementation of the project could be changes in ministerial cabinet or institutional positions, in which case the project would have to adapt to these changes. However, these changes may favour decentralization processes and could more clearly define the roles of the different project stakeholders.

Furthermore, the Venezuelan forest sector has experienced a number of changes over the past four years, including: the formulation and implementation of the National Forest Policy, the reformulation of the 1966 Forest Law on Soils and Water Resources, the establishment of the National Commission on Environmental Technical Regulations, the separation of the roles between public sector institutions in relation to the management, control, production promotion, trade and industrial promotion of forest activities and the active participation of the public and private sectors aimed at consolidating undertakings and commitments in order to improve the quality and timeliness of national statistical information that will

-13- contribute to the consolidation of an information base that will benefit sustainable forest management and development.

Another risk that may affect the project could be a lack of institutional cooperation (institutions described in Table 1), by failing to provide reliable and timely statistical information.

To minimize this risk, as indicated in paragraph 2.1, interested parties will be invited to become permanent members of the Forest Statistics Subcommittee that will be coordinated by MARN - National Forest Statistics Information System, in accordance with the provisions of the Venezuelan Public Statistical Functions Law of 2001. Furthermore, members of these organizations will also be included on the Executive Board of the project, and cooperation agreements will be concluded between these institutions and the system, in order to satisfy the needs of the institution concerning the updating and consolidating of the National Forest Statistics Information System.

Another negative effect could arise from the economic crisis affecting the country, which creates a certain instability in the sector and there could be a risk regarding the actual involvement of the stakeholders listed in Table 1, as a source of information and/or as users, since cooperation with such organizations could be weakened because of economic reasons.

Financial resources are another determining factor for the achievement of the objectives of this project; however, there is an explicit will from government, non-government and private sector bodies to support the System. There is also full time personnel managing and maintaining the current system that has been improving for the last ten years thanks to local financing.

The System's legal and institutional sustainability is ensured by the fact that it has been classified as one of the General Directorate for Forest Resources current priority programs, as indicated in paragraph 2. This gives it the political will indispensable for its implementation.

Other risks are considered to be minimal, since most of the information is gathered in regional offices of the Ministry for the Environment and Natural Resources, through the headquarters of the General Directorate for Forest Resources and, since the National Forest Statistics Information System has been under development since 1992. This provides the institution with experience in information collection, processing, analysis, validation and dissemination.

3. Outputs

Specific Objective 1

To adapt and redesign the present forest statistical information system, introducing uniform processing criteria, strengthening existing modules, creating new modules and developing four regional nodes to decentralize the gathering, analysis, processing and validation of information.

Output 1 Identification of the National Forest Statistics Information System needs and requirements to update it and consolidate it.

Output 2 Supply of computer hardware and software at the central and four regional nodes levels: Bolívar, Barinas Delta Amacuro and Monagas.

Output 3 Training of the personnel in charge of operating the system.

Output 4 Validation of the information in the field for the various forest activities.

Output 5 Creation of the Web page and electronic publication.

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4. Activities

Output 1 Identification of the National Forest Statistics Information System needs and requirements to update it and consolidate it.

Activity 1.1 Definition of mechanisms for the integration of information from other government agencies, non-government organizations and the private sector.

Activity 1.2 Assessment of existing methodologies, including information collection, processing and analysis stages.

Activity 1.3 Standardization of measurement procedures and unit conversion systems.

Activity 1.4 Strengthening of inter-institutional relations.

Activity 1.5 Consolidation of existing modules: National Production in Forest Reserves and Woodlots, National Production outside Forest Reserves and Woodlots, Forest Industry and International Trade.

Activity 1.6 Establishment of new modules: Plantation forests, Non-Timber Forest Products, Forest Management, Forest Management Monitoring and Evaluation, and Local Populations, in the information system.

Output 2 Supply of computer hardware and software at the central and four regional nodes levels: Bolívar, Barinas Delta Amacuro and Monagas.

Activity 2.1 Specification of connecting devices to be used for communication by the selected means of communications.

Activity 2.2 Selection of necessary hardware and software to extend the system.

Activity 2.3 Installation and configuration of the communications and network infrastructure.

Activity 2.4 Tests of network operation for the National Forest Statistics Information System, with the new nodes.

Output 3 Training of the personnel in charge of operating the system.

Activity 3.1 Visit to Forest Information Systems in Latin America, to find out the impact and effects of the establishment and maintenance of such Systems.

Activity 3.2 Selection and assignment of duties to the project operational personnel

Activity 3.3 Preparation of the project training program

Activity 3.4 Preparation and printing of training material

Activity 3.5 Implementation and technical follow-up of training workshops

Activity 3.6 Definition of information validation mechanisms in the field

Activity 3.7 Design of field training workshops on information gathering.

Activity 3.8 Evaluation of the personnel within the National Forest Statistics Information System.

Output 4 Validation of the information in the field for the various forest activities.

Activity 4.1 Visit to pilot regions and sources of information.

Activity 4.2 Information validation tests in the four regional nodes: Bolívar, Barinas, Delta Amacuro and Monagas and at the central level where information is consolidated.

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Output 5 Web page and electronic publications design.

Activity 5.1 Preparation of the electronic publication content and format.

Activity 5.2 Integration and update of the new modules developed with the system's Web page. Activity 5.3 Preparation of electronic publication. Activity 5.4 Maintenance of the Web page and electronic publication.

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5. Logical Framework Worksheets

PROJECT ELEMENTS INDICATORS MEANS OF VERIFICATION IMPORTANT ASSUMPTIONS

Development objective .- By the 24th month the .- Inspection reports to key states. At the end of the project, the National Forest Statistics Ministry for the Environment and Strengthening the National Forest Information System (SNIEF) will .- Online update with priority states. Natural Resources through the Information System with the be updated and consolidated, General Directorate for Forest various institutions generating to respond to the need for .- Joint Forest Sector Questionnaire Resources, provides ongoing information on the country, information of stakeholders support to the National Forest integrating forest information into related to the forest sector Statistics Information System the same statistical technical and technological criterion so that it may serve as support and measure of the contribution made by the forest sector to the social, economic and environmental development of the country. Specific Objective .- Four modules of the current .- User manual on the National Forest .- The upgraded and consolidated System are 100% upgraded Statistics Information System modules. System is a previous phase To adapt and redesign the present and five new modules are forest statistical information added to the System, on: .- Reports on Plantation forests, Forest .- Full cooperation and good system, introducing uniform Plantation forests, Non-Timber Management, Non-Timber Forest synergy among other processing criteria, strengthening Forest Products, Forest Products, Monitoring and Control, and government, non-government and existing modules, creating new Management, Forest Local Populations. private sector organizations modules and developing four Management Monitoring and handling information on the regional nodes to decentralize the Evaluation and Local .- Publications of the Central Bank of subject. gathering, analysis, processing Populations. Venezuela. and validation of information. .- The central server is located in Caracas and is 100% interconnected with the four regional nodes: Barinas, Bolívar, Monagas, and Delta Amacuro.

.- 80% monthly availability of the updated information on the forest sector, for decision making and policy implementation purposes.

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PROJECT ELEMENTS INDICATOR MEANS OF VERIFICATION IMPORTANT ASSUMPTIONS Output 1 Identification of the Scope of the National Forest Assessment report on the status of forest Information is supplied by the National Forest Statistics Statistics Information System information in the regional bodies main information generating Information System needs and within the structure of regional generating information. Barinas, Bolívar, bodies requirements to update it and bodies generating information Delta Amacuro and Monagas consolidate it.

Output 2 Supply of computer .- 100% of the four regional .- Operating hardware and software No important assumptions hardware and software at the nodes transmit data efficiently inspection reports. central and four regional nodes and in a timely fashion, to the levels: Bolívar, Barinas, Delta central headquarters of the .- Report and account of regional bodies Amacuro and Monagas. National Forest Statistics generating information. Information System within two years. Output 3 Training of the personnel .- 100% of the System's .- List of participants in training workshops. No important assumptions in charge of operating the system. operational personnel is trained to manage it and to use .- Final training report. technology for its development. .- Training manuals.

Output 4 Validation of the .- 75% of forest activity related .- Information collection formats. .- Full cooperation of regional information in the field for the to National Production, Forest directorates, forest industries, various forest activities. Industries, International Trade, .- Inspection reports. private forest industries and the Plantation forests, Non-Timber private sector. Forest Products, Forest .- Report and account of the regions. Management and Local Populations will be validated in the field.

Output 5 Web page and electronic .- 100% of the information .- Web page .- No important assumptions publications design. resulting from the System is available on the Web page. .- Electronic publication.

.- Number of users who access .- Report on the number of Web page the web page and electronic users. publication during the year. .- Material for dissemination

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6. Work plan: Schedule of Activities Year 1 (Months) Year 2 (Months) OUTPUTS/ACTIVITIES 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1. Identification of the National Forest Statistics Information System needs and requirements to update it and consolidate it. 1.1 Definition of mechanisms for the integration of information from other government agencies, non-government organizations and the private sector.

1.2 Assessment of existing methodologies, including information collection, processing and analysis stages.

1.3 Standardization of measurement procedures and unit conversion systems.

1.4 Strengthening of inter-institutional relations. 1.5 Consolidation of existing modules: National Production in Forest Reserves and Woodlots, National Production outside Forest Reserves and Woodlots, Forest Industry and International Trade. 1.6 Establishment of new modules: Plantation forests, Non-Timber Forest Products, Forest Management, Forest Management Monitoring and Evaluation, and Populations to the information system. 2. Supply of computer hardware and software at the central and four regional nodes levels: Bolívar, Barinas, Delta Amacuro and Monagas. 2.1 Specification of connecting devices to be used for communication by the selected means of communications. 2.2 Selection of necessary hardware and software to extend the system. 2.3 Installation and configuration of the communications and network infrastructure. 2.4 Tests of network operation for the National Forest Statistics Information System, with the new nodes. 3. Training of the personnel in charge of operating the system. 3.1 Visit to Forest Information Systems in Latin America, to find out the impact and effects of the establishment and maintenance of such Systems. 3.2 Selection and assignment of duties to the project operational personnel. 3.3 Preparation of the project training program. 3.4 Preparation and printing of training material. 3.5 Implementation and technical follow-up of training workshops. 3.6 Definition of information validation mechanisms in the field. 3.7 Design of field training workshops on information gathering. 3.8 Evaluation of the personnel within the National Forest Statistics Information System. 4. Validation of the information in the field for the various forest activities. 4.1 Visit to pilot regions and sources of information. 4.2 Information validation tests in the four regional nodes: Bolívar, Barinas, Delta Amacuro and Monagas and at the central level where information is consolidated. 5. Web page and electronic publications design. 5.1 Preparation of the electronic publication content and format. 5.2 Integration and update of the new modules developed with the system's Web page. 5.3 Preparation of electronic publication. 5.4 Maintenance of the Web page and electronic publication.

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7. INPUTS REQUIRED BY OUTPUT/ACTIVITY WITH ESTIMATED COSTS UNIT COST Quarter Total Total OUTPUTS/ACTIVITIES INPUTS Quant. ($) Year Budget Item Amount ($) Output ($) 1. Identification of the National Forest Statistics Information System needs and requirements to update it and consolidate it. 1.1 Definition of mechanisms for the integration of information from other overnment agencies, non-government organizations and the private sector. . National Coordinator 1 3,000 Q1-Y1 11 6,000 Economic Statistics Analysis International Consultant 1 2,500 Q1-Y1 16 1,750 National Information Technology Consultant 1 2,500 Q1-Y1 12 2,500 National Forest Information Systems Consultant 1 2,500 Q1-Y1 12 2,500 International travel 1 2,000 Q1-Y1 32 2,000 1.2 Assessment of existing methodologies, including information collection, rocessing and analysis stages.

National Coordinator 1 3,000 Q1-Y1 11 3,000 Economic Statistics Analysis International Consultant 1 2,500 Q1-Y1 16 1,750 National Information Technology Consultant 1 2,500 Q1-Y1 12 2,500 National Forest Information Systems Consultant 1 2,500 Q1-Y1 12 2,500 National Technician 1 2 1,000 Q1-Y1 13 2,000 Transport costs 8 200 Q1-Y1 33 1,600 DSA 24 50 Q1-Y1 31 1,200 1.3 Standardization of measurement procedures and unit conversion systems. National Coordinator 1 3,000 Q1-Y1 11 3,000

Economic Statistics Analysis International Consultant 1 2,500 Q1-Y1 16 1,750 National Information Technology Consultant 1 2,500 Q1-Y1 12 2,500 National Forest Information Systems Consultant 1 2,500 Q1-Y1 12 2,500 National Technician 1 2 1,000 Q1-Y1 13 2,000 Transport costs 8 200 Q1-Y1 33 1,600 DSA 24 50 Q1-Y1 31 1,200

1.4 Strengthening of inter-institutional relations National Coordinator 1 3,000 Q2-Y1 11 9,000 National Technician 2 1 1,500 Q2-Y1 13 4,500 Communications 2 200 Q2-Y1 21 400

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UNIT COST Quarter Total Total OUTPUTS/ACTIVITIES INPUTS Quant. ($) Year Budget Item Amount ($) Output ($) 1.5 Consolidation of existing modules: National Production in Forest Reserves and Forest Lots, National Production outside Forest Reserves and Forest Lots, Forest Industry and International Trade.

National Information Technology Consultant 1 3,000 Q2-Y1 12 3,000 National Forest Information Systems Consultant 1 2,500 Q2-Y1 12 2,500 Economic Statistics Analysis International Consultant 1 2,500 Q1-Y1 12 2,500 National Technician 2 1 1,500 Q2-Y1 13 4,500 Administrator 1 1,000 Q2-Y1 13 3,000 Secretary 1 600 Q2-Y1 13 1,800 Transport costs 3 200 Q2-Y1 33 600 DSA 9 50 Q2-Y1 31 450 Communications 2 200 Q2-Y1 21 400 1.6 Establishment of new modules: Forest Plantations, Non-Timber Forest Products, Forest Management, Forest Management Monitoring and Evaluation, and Populations to the information system.

National Information Technology Consultant 1 3,000 Q2-Y1 11 3,000 National Forest Information Systems Consultant 1 2,500 Q2-Y1 12 2,500 Economic Statistics Analysis International Consultant 1 2,500 Q1-Y1 12 2,500 National Technician 2 1 1,500 Q2-Y1 13 6,000 National Technician 3 1 1,500 Q2-Y1 13 6,000 Administrator 1 1,000 Q2-Y1 13 4,000 Secretary 1 600 Q2-Y1 13 2,400 Transport costs 3 200 Q2-Y1 33 600 DSA 9 50 Q2-Y1 31 450 Communications 2 200 Q2-Y1 21 400 Subtotal 104,350 2. Supply of computer hardware and software at the central and four regional nodes levels: Bolívar, Barinas, Delta Amacuro and Monagas. 2.1 Specification of connecting devices to be used for communication by the selected means of communications. National Forest Information Systems Consultant 1 3,000 Q3-Y1 11 3,000 National Information Technology Consultant 1 2,500 Q3-Y1 12 2,500 Economic Statistics Analysis International Consultant 1 2,500 Q1-Y1 12 2,500 National Technician 3 1 1,500 Q3-Y1 13 3,000

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UNIT COST Quarter Total Total OUTPUTS/ACTIVITIES INPUTS Quant. ($) Year Budget Item Amount ($) Output ($)

2.2 Selection of necessary hardware and software to extend the system. National Coordinator 1 3,000 Q2-Y1 11 3,000 National Forest Information Systems Consultant 1 2,500 Q3-Y1 12 2,500 National Information Technology Consultant 1 2,500 Q1-Y1 12 2,500 National Technician 3 1 1,500 Q3-Y1 13 1,500 Purchase of Software 2 6,000 Q3-Y1 22 12,000

2.3 Installation and configuration of communications and network infrastructure. National Coordinator 1 3,000 Q2-Y1 11 3,000 National Information Technology Consultant 1 2,500 Q4-Y1 12 2,500 National Forest Information Systems Consultant 1 2,500 Q2-Y1 12 2,500 National Technician 3 1 1,500 Q4-Y1 13 3,000 Computers and printers 16 2,500 Q4-Y1 44 40,000 UPS 8 350 Q4-Y1 44 2,800 Network and electrical connection 3,000 Q4-Y1 44 3,000 Transport costs 8 200 Q4-Y1 33 1,600 DSA 24 50 Q4-Y1 31 1,200 Communications 2 200 Q4-Y1 21 400 2.4 Tests of network operation for the National Forest Statistics Information System, with the new nodes. National Coordinator 1 3,000 Q2-Y1 11 3,000 National Information Technology Consultant 1 2,500 Q4-Y1 12 2,500 National Forest Information Systems Consultant 1 2,500 Q4-Y1 12 2,500 National Technician 3 1 1,500 Q4-Y1 13 3,000 Administrator 2 1,000 Q4-Y1 13 4,000 Secretary 2 600 Q4-Y1 13 2,400 Transport costs 12 200 Q4-Y1 33 2,400 DSA 36 50 Q4-Y1 31 1,800 Subtotal 114,100

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UNIT COST Quarter Total Total OUTPUTS/ACTIVITIES INPUTS Quant. ($) Year Budget Item Amount ($) Output ($) 3. Training of the personnel in charge of operating the system.

3.1 Visit to Forest Information Systems in Latin America, to find out the impact and effects of the establishment and maintenance of such systems.

National Coordinator 1 3,000 Q1-Y1 11 750

National Technician 1 1 1,000 Q1-Y1 13 250 National Technician 2 1 1,500 Q1-Y1 13 375 Administrator 1 1,000 Q1-Y1 13 250 Secretary 1 600 Q1-Y1 13 150 International travel 12 1,000 Q1-Y1 32 12,000 DSA 60 140 Q1-Y1 31 8,400 Communications 2 200 Q1-Y1 21 400

3.2 Selection and assignment of duties to the project operational personnel. National Coordinator 1 3,000 Q2-Y1 11 11,250 National Forest Information Systems Consultant 1 2,500 Q2-Y1 12 1,250 National Information Technology Consultant 1 2,500 Q1-Y1 12 1,250 Transport costs 6 200 Q2-Y1 33 1,200 DSA 18 50 Q2-Y1 31 900 Communications 2 200 Q2-Y1 21 400

3.3 Preparation of the project training program. National Coordinator 1 3,000 Q2-Y1 11 1,500 National Forest Information Systems Consultant 1 2,500 Q2-Y1 12 2,500 National Information Technology Consultant 1 2,500 Q1-Y1 12 2,500 National Technician 3 1 1,500 Q2-Y1 13 1,500 Administrator 1 1,000 Q2-Y1 13 1,000 Secretary 1 600 Q2-Y1 13 600

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UNIT COST Quarter Total Total OUTPUTS/ACTIVITIES INPUTS Quant. ($) Year Budget Item Amount ($) Output ($)

3.4 Preparation and printing of training material. National Coordinator 1 3,000 Q2-Y1 11 3,000 National Forest Information Systems Consultant 1 2,500 Q3-Y1 12 2,500 National Information Technology Consultant 1 2,500 Q1-Y1 12 2,500 National Technician 3 1 1,500 Q3-Y1 13 1,500 Administrator 1 1,000 Q3-Y1 13 2,000 Secretary 1 600 Q3-Y1 13 1,200

3.5 Implementation and technical follow-up of training workshops. National Coordinator 1 3,000 Q3-Y1 11 3,000 National Information Technology Consultant 1 2,500 Q3-Y1 12 2,500 National Forest Information Systems Consultant 1 2,500 Q3-Y1 12 2,500 National Technician 1 1 1,000 Q3-Y1 13 1,000 Administrator 1 1,000 Q3-Y1 13 1,000 Secretary 1 600 Q3-Y1 13 600 Training courses on the system 4 5,000 Q3-Y1 14 20,000 Transport costs 16 200 Q3-Y1 33 3,200 DSA 48 50 Q3-Y1 31 2,400

3.6 Definition of information validation mechanisms in the field. National Coordinator 1 3,000 Q4-Y1 11 12,000 National Forest Information Systems Consultant 1 2,500 Q4-Y1 12 2,500 National Information Technology Consultant 1 2,500 Q1-Y1 12 2,500 Economic Statistics Analysis International Consultant 1 2,500 Q1-Y1 16 2,500 National Technician 2 1 1,500 Q4-Y1 13 6,000

3.7 Design of field training workshops, on information gathering. National Coordinator 1 3,000 Q4-Y1 11 6,000 National Forest Information Systems Consultant 1 2,500 Q4-Y1 12 5,000 National Information Technology Consultant 1 2,500 Q1-Y1 12 5,000 Economic Statistics Analysis International Consultant 1 2,500 Q1-Y1 16 2,250 National Technician 2 1 1,500 Q4-Y1 13 3,000

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UNIT COST Quarter Total Total OUTPUTS/ACTIVITIES INPUTS Quant. ($) Year Budget Item Amount ($) Output ($) Administrator 1 1,000 Q4-Y1 13 1,000 Secretary 1 600 Q4-Y1 13 600 Transport costs 12 200 Q4-Y1 33 2,400 DSA 36 50 Q4-Y1 31 1,800 Communications 2 200 Q4-Y1 21 400

3.8 Evaluation of the personnel within the National Forest Statistics Information System. National Coordinator 1 3,000 Q1-Y2 11 9,000 National Forest Information Systems Consultant 1 2,500 Q1-Y2 12 7,500 National Information Technology Consultant 1 2,500 Q1-Y1 12 7,500 Transport costs 9 200 Q1-Y2 33 1,800 DSA 27 50 Q1-Y2 31 1,350 Subtotal 177,175 4. Validation of the information in the field for the various forest activities.

4.1 Visit to pilot regions and sources of information. National Coordinator 1 3,000 Q2-Y1 11 6,000 National Forest Information Systems Consultant 1 2,500 Q2-Y1 12 5,000 National Information Technology Consultant 1 2,500 Q1-Y1 12 2,500 Economic Statistics Analysis International Consultant 1 2,500 Q1-Y1 16 1,750 National Technician 3 1 1,500 Q2-Y1 13 3,000 Transport costs 16 200 Q2-Y1 33 3,200 DSA 48 50 Q2-Y1 31 2,400 4.2 Information validation tests in the four regional nodes: Bolívar, Barinas, Delta Amacuro and Monagas and at the central level where information is consolidated.

National Coordinator 1 3,000 Q1-Y2 11 6,000 National Forest Information Systems Consultant 1 2,500 Q1-Y2 12 5,000 National Information Technology Consultant 1 2,500 Q1-Y1 12 2,500 Economic Statistics Analysis International Consultant 1 2,500 Q1-Y1 16 1,750 National Technician 3 1 1,500 Q1-Y2 13 3,000 Transport costs 12 200 Q1-Y2 33 2,400 DSA 36 50 Q1-Y2 31 1,800 Subtotal 46,300

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UNIT COST Quarter Total Total OUTPUTS/ACTIVITIES INPUTS Quant. ($) Year Budget Item Amount ($) Output ($) 5. Web page and electronic publications design.

5.1 Preparation of the electronic publication content and format. National Forest Information Systems Consultant 1 2,500 Q3-Y2 12 7,500 National Information Technology Consultant 1 2,500 Q1-Y1 12 5,000 Economic Statistics Analysis International Consultant 1 2,500 Q1-Y1 16 1,750 National Technician 2 1 1,500 Q3-Y2 13 6,000

5.2 Integration and update of the new modules developed with the system's Web page. National Technician 2 1 1,500 Q4-Y2 13 3,000 National Technician 3 1 1,500 Q4-Y2 13 3,000

5.3 Preparation of electronic publication. National Technician 3 1 1,500 Q4-Y2 13 3,000

5.4 Maintenance of the Web page and electronic publication. National Technician 2 1 1,500 Q4-Y2 13 1,500 National Technician 3 1 1,500 Q4-Y2 13 1,500 Subtotal 32,250 TOTAL ($) 474,175

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7.1 OVERALL PROJECT BUDGET BY ACTIVITY

10. Project 20. Sub- 30. Duty travel 40. Capital 50. Consumable GRAND TOTAL OUTPUTS/ACTIVITIES Personnel contracts items Items

1. Identification of the National Forest Statistics Information System needs and requirements to update it and consolidate it. 1.1 Definition of mechanisms for the integration of information from other government agencies, 12,750 2,000 14,750 non-government organizations and the private sector. . 1.2 Assessment of existing methodologies, including information collection, processing and 11,750 2,800 14,550 analysis stages.

1.3 Standardization of measurement procedures and unit conversion systems. 11,750 2,800 14,550

1.4 Strengthening of inter-institutional relations 13,500 400 13,900 1.5 Consolidation of existing modules: National Production in Forest Reserves and Forest Lots, 17,300 400 1,050 18,750 National Production outside Forest Reserves and Forest Lots, Forest Industry and International Trade.

1.6 Establishment of new modules: Forest Plantations, Non-Timber Forest Products, Forest 26,400 400 1,050 27,850 Management, Forest Management Monitoring and Evaluation, and Populations to the information system.

SUBTOTAL 93,450 1,200 9,700 104,350 2. Supply of computer hardware and software at the central and four regional nodes levels: Bolívar, Barinas, Delta Amacuro and Monagas. 2.1 Specification of connecting devices to be used for communication by the selected means of communications. 11,000 11,000 2.2 Selection of necessary hardware and software to extend the system. 9,500 12,000 21,500 2.3 Installation and configuration of communications and network infrastructure. 11,000 400 2,800 45,800 60,000 2.4 Tests of network operation for the National Forest Statistics Information System, with the new nodes. 17,400 4,200 21,600 SUBTOTAL 48,900 12,400 7,000 45,800 114,100 3. Training of the personnel in charge of operating the system. 3.1 Visit to Forest Information Systems in Latin America, to find out the impact and effects of the establishment and maintenance of such systems. 1,775 400 20,400 22,575 3.2 Selection and assignment of duties to the project operational personnel. 13,750 400 2,100 16,250 3.3 Preparation of the project training program. 9,600 9,600 3.4 Preparation and printing of training material. 12,700 12,700 3.5 Implementation and technical follow-up of training workshops. 30,600 5,600 36,200 3.6 Design of training workshops in the field, on information gathering. 25,250 25,250 3.7 Definition of information validation mechanisms in the field. 22,850 400 4,200 27,450

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10. Project 20. Sub- 30. Duty travel 40. Capital 50. Consumable GRAND TOTAL OUTPUTS/ACTIVITIES Personnel contracts items Items

3.8 Evaluation of the personnel within the National Forest Statistics Information System. 24,000 3,150 27,150 SUBTOTAL 140,525 1,200 35,450 177,175 4. Validation of the information in the field for the various forest activities. 4.1 Visit to pilot regions and sources of information. 18,250 5,600 23,850 4.2 Information validation tests in the four regional nodes: Bolívar, Barinas, Delta Amacuro and Monagas and at the central level where information is consolidated. 18,250 4,200 22,450 SUBTOTAL 36,500 9,800 46,300 5. Web page and electronic publications design. 5.1 Preparation of the electronic publication content and format. 20,250 20,250 5.2 Integration and update of the new modules developed with the system's Web page. 6,000 6,000 5.3 Preparation of electronic publication. 3,000 3,000 5.4 Maintenance of the Web page and electronic publication. 3,000 3,000 SUBTOTAL 32,250 32,250 TOTAL ($) 351,625 14,800 61,950 45,800 474,175

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7.2 PROJECT BUDGET BY YEAR AND BY SOURCE – ITTO

Annual disbursements

TOTAL YEAR 1 YEAR 2 Budget Components 10. Project Personnel 242,500 155,200 87,300 20. Sub-contracts 14,800 14,652 148 30. Duty Travel 41,414 38,515 2,899 40. Capital Items 45,800 22,900 22,900 50. Consumable Items 60. Miscellaneous Subtotal 1 344,514 80. ITTO Admin., Monitoring and Evaluation 81. Monitoring and review costs 18,000 82. Evaluation Costs Subtotal 2 362,514 83. Programme Support Costs (6% of subtotal 2) 21,751 90. Refund of pre-project costs ITTO TOTAL 384,265

7.3 PROJECT BUDGET BY YEAR AND BY SOURCE – EXECUTING AGENCY /GOVERNMENT

Annual disbursements

TOTAL YEAR 1 YEAR 2 Budget Components 10. Project Personnel 109,125 86,843 22,282 20. Sub-contracts 30. Duty Travel 20,536 18,996 1,540

50. Consumable Items 60. Miscellaneous 70. Executing Agency Management Cost (5.1% of the total 25,076 12,538 12,538 overall project budget by activity) EXECUTING AGENCY/HOST GOVERNMENT TOTAL 154,737 118,377 36,360

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7.4 CONSOLIDATED PROJECT BUDGET BY FINANCING SOURCE

BUDGET COMPONENTS ITTO VENEZUELA TOTAL ($)

10 Project Personnel 11. National Experts 97,500 97,500 12. National Consultants 120,000 120,000 13. Other Manpower 99,125 99,125 14. Fellowships and Training 10,000 10,000 20,000 16. International Consultants 15,000 15,000

19. Component Total 242,500 109,125 351,625 20 Sub-contracts 21. Sub-contract (Communications Service) 2,800 2,800 22. Sub-contract (Software Licences) 12,000 12,000

29. Component Total 14,800 14,800 30 Duty Travel 31. DSA 15,210 10,140 25,350 32. International travel 14,000 14,000 33. Transport costs 12,204 10,396 22,600

39. Component Total 41,414 20,536 61,950 40 Capital Items 44. Capital Equipment 45,800 45,800

49. Component Total 45,800 45,800 Executing Agency 70 Management Cost 25,076 25,076 79. Component Total 25,076 25,076 ITTO Admin., Monitoring and 80 Evaluation 81. Monitoring and review costs 18,000 18,000 83. Programme Support Costs 21,751 21,751

89. Component Total 39,751 39,751 100 GRAND TOTAL ($) 384,265 154,737 539,002

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7.5 CONSOLIDATED YEARLY PROJECT BUDGET

BUDGET COMPONENTS TOTAL ($) YEAR 1 YEAR 2

10 Project Personnel 11. National Experts 97,500 48,750 48,750 12. National Consultants 120,000 60,000 60,000 13. Other Labour 99,125 47,580 51,545 14. Fellowships and Training 20,000 20,000 16. International Consultants 15,000 7,500 7,500

19. Component Total 351,625 183,830 167,795 20 Sub-contracts 21. Sub-contract (Communications Service) 2,800 2,632 168 22. Sub-contract (Software Licences) 12,000 12,000

29. Component Total 14,800 14,632 168 30 Duty Travel 31. DSA 25,350 21,801 3,549 32. International travel 14,000 14,000 33. Transport costs 22,600 17,500 5,100

39. Component Total 61,950 53,301 8,649 40 Capital Items 44. Capital Equipment 45,800 22,900 22,900

49. Component Total 45,800 22,900 22,900 70 Executing Agency Management Cost

79. Component Total 25,076 12,538 12,538 80 ITTO Admin., Monitoring and Evaluation 81. Monitoring and review costs 18,000 83. Programme Support Costs 21,751

89. Component Total 39,751 100 GRAND TOTAL ($) 539,002

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7.6 PROJECT PERSONNEL

No. of PROJECT PERSONNEL $ / Month Total Months

National Experts 97,500

National Coordinator 3,000 24 72,000

National Consultants 120,000

National Information Technology Consultant 2,500 24 60,000

National Forest Information Systems Consultant 2,500 24 60,000

Other Labour 99,125

National Technician 1 1,000 4.00 4,000

National Technician 2 1,500 23.25 34,875

National Technician 3 1,500 22 33,000

Administrator 1,000 17.00 17,000

Secretary 600 17.00 10,250

International Consultants 15,000

Economic Statistics Analysis International Consultant 2,500 6 15,000

Total 331,625

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PART III: OPERATIONAL ARRANGEMENTS

1. Management Structure

During the start and implementation stages of the project it will be necessary to have suitable management and monitoring; therefore, an Executive Committee will be required for project follow-up. This Committee should meet at least every six months or when the project so requires. Committee members will be nominated by the Ministry for the Environment and Natural Resources through the General Directorate for Forest Resources, and will include representatives of the Central Bank of Venezuela, the National Statistics Institute, the Forest Industrial Managers Association (ASOINBOSQUES), and others.

The Committee will:

 Evaluate the implementation of the Project.  Approve Progress Reports and the Final Report before they are submitted to the ITTO and the Government of Venezuela.

A project implementation team will be established to coordinate project planning and implementation. The team will be led by a national project coordinator and will consist of regional coordinators, consultants and select technical personnel.

PROJECT ORGANIZATIONAL CHART

Ministry for the Environment and Natural Resources General Directorate for Forest Resources

National Coordinator

Executive Committee

Administration

Forest Information Information Statistical and

Systems Consultant Technology Economic Analysis

Consultant Consultant

2. Monitoring, Reporting and Evaluation

2.1 Project Progress Reports

Project Progress Reports will be prepared and submitted to the ITTO. The First Progress Report will be submitted 6 months after the start of the project or at any other time if the ITTO or the Executive Committee so request. The National Coordinator of the project will be in charge of preparing this report.

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2.2 Project Completion Report

A project completion project report will be prepared and submitted to ITTO once the project has been completed and within three months of completion, at the latest.

2.3 Technical Reports

Two technical reports will be prepared per year, following activities and outputs, and all will be submitted on a six-monthly basis, after the first six months of starting the project.

2.4 Monitoring, evaluation and Executive Committee visits

The project will be subject to monitoring by ITTO representatives, at least once every twelve months. The monitoring commission will visit the Executing Agency, MARN – General Directorate for Forest Resources

Furthermore, a Project Executive Committee will be established, whose members will be nominated by the Ministry for the Environment and Natural Resources through the General Directorate for Forest Resources, and will include representatives of the Central Bank of Venezuela, the National Statistics Institute and the Forest Industrial Managers Association (ASOINBOSQUES), and others.

2.5 Evaluation

A final evaluation will be carried out on the basis of the outputs of the project.

3. Future Operation and Maintenance

The Ministry for the Environment and Natural Resources through the General Directorate for Forest Resources, is committed to the ongoing future maintenance of the project, and to ensuring the availability of full-time personnel, equipment and material acquired by the project. Upon completion of the project, the Government of Venezuela shall continue to allocate resources through the MARN - General Directorate for Forest Resources ordinary budget, to pay salaries, wages, and operating expenses as required by the National Forest Statistics Information System.

Furthermore, there is an ongoing commitment to train personnel in managing, updating and consolidating databases, thus ensuring the ongoing maintenance of project outputs.

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PART IV. TROPICAL TIMBER FRAMEWORK

1. COMPLIANCE WITH ITTA 1994 OBJECTIVES

This project will provide Venezuela with an effective framework for consultation, international cooperation and policy development among all members with regard to all relevant aspects of the world timber economy.

The National Forest Statistics Information System will fulfil the following objectives:

 Encourage the development of policies aimed at sustainable management, conservation of timber producing forests and biological diversity, in the context of tropical timber trade.

 Enhance the country’s production capacity and encourage the production of tropical timbers from sustainably managed forests.

 Promote research with a view to improving forest management and efficiency of wood utilization.

 Provide suitable information on the origin of utilized and exported resources, to support the forest monitoring and certification process.

 Enable information-sharing on the international timber market.

2. COMPLIANCE WITH ITTO ACTION PLAN

The Project is consistent mainly with (a) Economic Information and Market Intelligence; and is also relevant to (b) Forest Industry. Furthermore, and because of the value of the system with respect to its training objectives, it is also consistent with (c) management of human resources and finally, since the project will encourage the efficient and timely distribution of information, it will also support (d) institutional strengthening.

In this context, the National Forest Statistics Information System will contribute to fulfilling Action Plan items as follows:

 Enhance technical, financial and human capacities to manage the tropical timber resource base.

 Improve transparency of the international timber market.

 Improve marketing and distribution of tropical timber exports from sustainably managed sources.

 Support activities to secure the tropical timber resource base.

 Improve value adding of tropical timber from sustainable sources.

 Improve efficiency of processing of tropical timber from sustainable sources.

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ANNEX A – PROFILE OF THE EXECUTING AGENCY

The Executing Agency consists of a work team under MARN – General Directorate for Forest Resources.

The General Directorate for Forest Resources (GBFR) is in charge of the administration and management of the national forest heritage that consists of natural forests, plantation forests, forest lands and vegetation in general.

Mission:

Administration, management and conservation of forests, forest lands and vegetation in general; ensuring that any benefits derived from their use and utilization contribute to the present and future population's welfare and living standards.

Objective:

To design and evaluate policies, plans and strategies relating to the administration, management, conservation and control of forest resources and to design and implement national Forest Planning and Management.

Legal Foundation:

The MARN restructuring process carried out during 1996 – 1998, eliminated the Autonomous Venezuelan Forest Service and instead created the General Directorate for Forest Resources by Executive Decree N. 3,149 dated 31-12-98, and gazetted under number 36,620 of 13-01-99; it assigned it administrative, technical and legal roles in the conservation, management and protection of natural and plantation forests, and forest lands.

Competence: In 1992 the MARN established the National Forest Statistics Program; the General Directorate for Forest Resources since its establishment, has run this program to update statistical information on the forest sector, using an automated data system that facilitates the flow and processing of information to produce the relevant forest statistics yearbooks and newsletters of interest to forest sector users at the national and international level.

Infrastructure:

The headquarters of the General Directorate for Forest Resources is in Caracas; the Directorate operates through the following offices: Forest Studies and Inventory, Forest Planning, Forest Management, Legal Advice and Administration Services.

Budget

The resources required to implement the National Forest Policy, plans, programs and projects, come from the National Budget allocated by the Ministry for the Environment and Natural Resources, to the amount of 9,514,678 dollars for the year 2002. This is made up of the ordinary budget and the Directorate's own income. The General Directorate for Forest Resources generates income amounting to 8,313,055 dollars, distributed among the programs of its organizational structure.

Personnel

The General Directorate for Forest Resources employs a total of 365 officers assigned to the central headquarters and to the 23 administrative regions of the Ministry for the Environment and Natural Resources, located throughout the country.

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Organizational chart

GENERAL DIRECTORATE FOR FOREST RESOURCES

ADMINISTRATION SERVICES LEGAL ADVICE OFFICE OFFICE

FOREST FOREST RESOURCES FOREST RESOURCES VEGETATION STUDIES RESOURCES MANAGEMENT ADMINISTRATION AND INVENTORY PLANNING DIRECTORATE DIRECTORATE DIRECTORATE DIRECTORATE

NATIONAL FOREST 2 Reg. Div. 19 Reg. Div. STATISTICS INFORMATION SYSTEM 6 Admin. Areas 86 Admin. Areas

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ANNEX B – TERMS OF REFERENCE OF KEY STAFF

Project Coordinator

. Venezuelan professional specializing in systems and/or project management. . Minimum 7 years professional experience in information systems project management. . Expertise in environmental and/or geographic information systems. . At least 2 years work in the public sector.

Duties:

. Draft a detailed work plan, the operational plan and other necessary budgets. . Plan, manage, and coordinate project activities. . Participate in the selection of project personnel. . Assess the work requirements proposed by advisors and consultants to the project. . Answer for the timely and suitable implementation of project activities. . Coordinate and carry out necessary activities to achieve the involvement of public and private sector institutions at the national, regional and local levels. . Coordinate the preparation of documents and publications of project outputs. . Coordinate activities to define and obtain technology.

Duration: 24 months

Forest Information Systems Consultant

. Forest Engineer, specializing in, and with demonstrated expertise in forest information technology and data processing. . 8 years experience in the area. . Experience in similar work.

Duties:

. Define the guidelines for data processing for the forest statistics system and specifications of the equipment to be used. . Define the processing criteria to standardize information on the forest sector. . Define the necessary variables for forest statistics analysis. . Set out the methods to be used in data processing and contribute to the drafting of the National Forest Statistics Information System final documents.

Duration: 24 months

Information Technology Consultant

. Professional with experience in management and integration of development platforms, applications interaction, intranet and web applications development and network connectivity. . Minimum 5 years experience in the area

Duties:

. Design the integration of the current system with the new applications to be developed. . Define the connectivity terms for the system. . Define the control and monitoring components. . Define the variables that describe forest behaviour, with the expert in Forest Statistics Analysis. . Prepare and submit to the General Coordinator of the project, regular reports on the activities carried out. . Manage and monitor the activities of his/her work team. . Recommend the purchase of equipment and software.

Duration: 24 months

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International Consultant in Economic Statistics Analysis Activities: 1.1 and 1.2

. Professional with 5 years experience in systems and multidimensional variables analysis. . Capacity and expertise in Forest Statistics Modelling and Analysis. . Knowledge and experience in database programming and management.

Duties:

. Develop models describing the various phases of the activity. . Define variables and how they will be dealt with. . Prepare and distribute regular project and forest statistics newsletters and reports. . Develop methods to obtain forest statistics and forest economic indicators. . Manage and monitor the activities of his/her work team.

Duration: 6 months

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PROJECT PD 196/03 (M) UPGRADING AND STRENGTHENING OF THE NATIONAL FOREST STATISTICAL INFORMATION SYSTEM IN VENEZUELA

SUMMARY OF AMENDMENTS IN RESPONSE TO EXPERT PANEL RECOMMENDATIONS

(i) Address adequately the weakness detected by the diagnostic study by refining the activities and work plan and by re-doing the problem tree

Amendments to weaknesses detected by the diagnostic study

. Difficulty in integrating information on forest plantations and non-timber forest products coming from other government institutions and the private sector.

. Insufficient communication infrastructure and equipment for the transfer and continuous updating of information.

. Inconsistencies in the use of measuring methods and unit conversion systems between government, non-government and private sector institutions.

. Obsolescence of the current data processing technological platform and software.

. A lack of mechanisms aimed at maintaining and strengthening inter-institutional relations.

. A lack of mechanisms for the field validation of information.

Modifications:

Output 1 Identification of the National Forest Statistics Information System needs and requirements to update it and consolidate it.

Activity 1.1 Definition of mechanisms for the integration of information from other government agencies, non-government organizations and the private sector.

Activity 1.2 Assessment of existing methodologies, including information collection, processing and analysis stages.

Activity 1.3 Standardization of measurement procedures and unit conversion systems.

Activity 1.4 Strengthening of inter-institutional relations.

Activity 1.5 Consolidation of existing modules: National Production in Forest Reserves and Woodlots, National Production outside Forest Reserves and Woodlots, Forest Industry and International Trade.

Activity 1.6 Establishment of new modules: Plantation forests, Non-Timber Forest Products, Forest Management, Forest Management Monitoring and Evaluation, and Local Populations, in the information system.

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Problem Tree

The information currently generated by the National Forest Statistical Information System does not contribute to adequate forest management practices.

The statistical information available is not being widely used by key forest sector stakeholders such as government agencies, non-government organizations and the private sector.

The information generated by The forest statistical information the system is not reliable. is not timely produced to assist in decision-making.

The current Forest Statistical Information System is deficient.

Lack of integration of forest The current Forest Statistical Inadequate and outdated sector information. Information System is technology. centralized.

(ii) Elaborate on how activities will attain uniform information collection and processing

The following text was included in section 2.5 Technical and Scientific Aspects:

It is envisaged that the planned project activities will satisfy the forest statistics information needs at the central and regional levels at the various phases of the forest production chain, through the application of statistical theories and methods that will lead to the improvement and optimization of information gathering and processing activities. This will be achieved through the use of the advanced technological communications capabilities provided by the Internet, which will not only facilitate the dissemination of information but will also allow for consultations between the central node and the regional nodes established in the states of Bolivar, Barinas, Delta Amacuro and Monagas, thus ensuring the timeliness of information and optimum quantity and quality standards, which will in turn facilitate the decision-making process in the forest sector.

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(iii) Include missing information

The following information has been incorporated in section 2.3:

Table 3. Proposed modules

Proposed modules Information to be processed  Area under forest plantations Forest Plantations  Volume by species  Location of plantations  Objective of plantations  Age  Main products Non-timber forest products  Quantity  Location  Management modality  Area under forest management Forest management  Research projects  Silvicultural programmes  Other economic activities carried out in the areas under forest management  Number of inhabitants in areas under forest Population management  Economic and subsistence activities undertaken by these communities  Area they occupy  Benefits derived from forest management  Level of compliance with the commitments Forest management monitoring and control established in the Forest Management Plan  Areas managed using reduced impact technologies  Protection measures for the control of forest fires, pests, diseases, illegal logging and other activities

(iv) Account for the costs associated with network infrastructure

(v) Scale-down the project budget as discussed above

The budget has been modified.

(vi) Provide a description of equipment and travelling

The following text has been incorporated in section 2.3:

In its first phase, the project will decentralize information into four nodes established in priority regions, selected on the basis of the forest activity carried out, as follows: Barinas, Bolívar, Delta Amacuro and Monagas. These regions would be provided with the latest state-of-the-art equipment with the following minimum configuration in order to ensure an optimal level of communication with the MARN central node: Pentium IV Processor, 256 Mb RAM Memory, 40 Gb Hard Disc, 10/100 Red Fast Ethernet Card, 15" Color Monitor and Hewlett Packard Laser Printer.

In order to establish the link between the central node and the four regional nodes, the project will use the SIMAR communications infrastructure (Sistema de Información del Ministerio del Medio Ambiente y de los Recursos Naturales - Information System of the Ministry for the Environment and Natural Resources) which is currently being installed. This infrastructure will provide on-line communication with each of the four priority regions (Barinas, Bolívar, Delta Amacuro and Monagas), thus facilitating the immediate transcription and processing of information for the monitoring of relevant forest activities. It is envisaged that the whole country will be linked to the system during the second phase.

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The project is totally viable in relation to the availability of equipment and purchase of the software, as it will be implemented on the basis of what is currently available (SIMARN and National Forest Statistics Information System communications infrastructure), as well as the purchase of new equipment with the aforementioned specifications and software upgrade licenses, to satisfy the requirements of the activities envisaged.

Justification of visits to similar projects

The following text has been incorporated in section 2.3 of the project proposal:

To this end, the Project operational activities will provide for the National Coordinator and two National Technical Experts to carry out four visits, of one-week duration each, to similar forest statistics information projects in Bolivia, Colombia, Panama and Peru, in order to exchange knowledge and experiences on the design of the systems, implementation modalities, technologies used, outputs, implementation efficiency, publications and the impacts and results obtained through the improvement of forest sector information.

(vii) Address convincingly the risk of lack of institutional cooperation

Section 2.9 of the proposal has been modified as follows:

Factors that may affect the implementation of the project could be changes in ministerial cabinet or institutional positions, in which case the project would have to adapt to these changes. However, these changes may favour decentralization processes and could more clearly define the roles of the different project stakeholders.

Furthermore, the Venezuelan forest sector has experienced a number of changes over the past four years, including: the formulation and implementation of the National Forest Policy, the reformulation of the 1966 Forest Law on Soils and Water Resources, the establishment of the National Commission on Environmental Technical Regulations, the separation of the roles between public sector institutions in relation to the management, control, production promotion, trade and industrial promotion of forest activities and the active participation of the public and private sectors aimed at consolidating undertakings and commitments in order to improve the quality and timeliness of national statistical information that will contribute to the consolidation of an information base that will benefit sustainable forest management and development.

Another risk that may affect the project could be a lack of institutional cooperation (institutions described in Table 1), by failing to provide reliable and timely statistical information.

To minimize this risk, as indicated in paragraph 2.1, interested parties will be invited to become permanent members of the Forest Statistics Subcommittee that will be coordinated by MARN - National Forest Statistics Information System, in accordance with the provisions of the Venezuelan Public Statistical Functions Law of 2001. Furthermore, members of these organizations will also be included on the Executive Board of the project, and cooperation agreements will be concluded between these institutions and the system, in order to satisfy the needs of the institution concerning the updating and consolidating of the National Forest Statistics Information System.

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