INTERNATIONAL TROPICAL TIMBER ORGANIZATION

ITTO

PROJECT PROPOSAL

TITLE: COMPETITIVENESS AND BUSINESS STRENGTHENING FOR A CARPENTER GROUP IN REGION VII (-QUICHÉ),

SERIAL NUMBER: PD 719/13 Rev.2 (I)

COMMITTEE: FOREST INDUSTRY

SUBMITTED BY: GOVERNMENT OF GUATEMALA

ORIGINAL LANGUAGE: SPANISH

SUMMARY

This project proposal seeks to promote associative principles and improve the quality and marketing of timber products through organized carpentry businesses in Region VII (Huehuetenango-Quiché), which requires good administration of resources, improved technical know-how in terms of new designs and furniture types, market intelligence, learning and implementation of new skills, and basic equipment to guarantee better product quality and cost reductions for consumers. It should also be pointed out that throughout the entire process, the project will support the economies of families in the region with the reactivation of job opportunities for both men and women that may be interested in learning the trade and later securing employment, while at the same time ensuring the adequate management of natural resources under the supervision of the Forest and Environmental Consensus Roundtable of Region VII and the National Forest Institute (INAB).

EXECUTING AGENCY ASSOCIATION OF THE FOREST AND ENVIRONMENTAL CONSENSUS ROUNDTABLE OF REVION VII

DURATION 24 MONTHS

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

ITTO 149,968

EXECUTING AGENCY 63,888

TOTAL 213,856

TABLE OF CONTENTS

ACRONYMS AND ABBREVIATIONS ...... 3 PART 1. PROJECT CONTEXT ...... 4 1.1 ORIGIN ...... 4 1.2 RELEVANCE ...... 4 1.2.1 Conformity with ITTO's objectives and priorities ...... 4 1.2.2 Relevance to the submitting country's policies ...... 5 1.3 TARGET AREA ...... 6 1.3.1 Geographic location ...... 6 1.3.2 Social, cultural, economic and environmental aspects ...... 7 1.4 EXPECTED OUTCOMES AT PROJECT COMPLETION ...... 9 PART 2. PROJECT RATIONALE AND OBJECTIVES ...... 10 2.1 STAKEHOLDER ANALYSIS ...... 10 2.2 PROBLEM ANALYSIS ...... 11 2.3 LOGICAL FRAMEWORK MATRIX ...... 14 2.4 OBJECTIVES ...... 16 2.4.1 Development objectives ...... 16 2.4.2 Specific objective ...... 16 PART 3. DESCRIPTION OF PROJECT INTERVENTIONS ...... 17 3.1 OUTPUTS ...... 17 3.2 ACTIVITIES AND INPUTS ...... 17 3.3 IMPLEMENTATION APPROACHES AND METHODS ...... 18 3.4 WORK PLAN ...... 19 3.5 BUDGET ...... 20 3.5.1 Master Budget ...... 20 3.5.2 Consolidated budget by component ...... 24 3.5.3 Yearly budget by source – ITTO ...... 25 3.5.4 Yearly budget by source – Executing Agency ...... 26 PART 4. IMPLEMENTATION ARRANGEMENTS ...... 27 4.1 EXECUTING AGENCY AND ORGANIZATIONAL STRUCTURE...... 27 4.2 PROJECT MANAGEMENT ...... 27 4.3 MONITORING AND REPORTING ...... 28 4.4 DISSEMINATION AND MAINSTREAMING OF PROJECT LEARNING ...... 28 4.4.1 Dissemination of project results ...... 28 4.4.2 Mainstreaming of project learning ...... 28 ANNEXES ...... 29

-2- ACRONYMS AND ABBREVIATIONS

ACMEFAR Asociación Mesa de Concertación Forestal y Ambiental Región VII (Association of the Forest and Environmental Consensus Roundtable of Region VII) EAP Economically active population INAB Instituto Nacional de Bosques (National Forest Institute) ITTA International Tropical Timber Agreement ITTO International Tropical Timber Organization km2 Square kilometer(s) m.a.s.l. Meters above sea level PFN Programa Forestal Nacional de Guatemala (National Forest Programme for Guatemala) SFM Sustainable forest management

-3- PART 1. PROJECT CONTEXT

1.1 ORIGIN

Proposed project actions were jointly identified with a group of carpenters of Region VII – Huehuetenango- Quiché as well as members of the boards of directors of ACMEFAR and INAB. After an analysis of the carpenters’ problems and needs, it was concluded that it was necessary to strengthen the group’s skills in terms of production and marketing of timber products. Thus, the project proposal hereby submitted is aimed at breaching identified gaps so as to enhance the performance and benefits of carpenters in the region.

Considering that the woodworking industry is one of the most vulnerable sectors in the region due to limited market opportunities and technical skills, the project seeks to support a group of producers in the Departments of Huehuetenango and Quiché, which comprise this region of the country.

This project proposal originated from the organization of a group of carpenters who have been meeting for some time now in order to find innovation alternatives, have participated in national events, and have applied new techniques to improve the quality of their products and reduce costs in order to benefit consumers in their respective regions.

However, there are still specific business and marketing skills that need to be acquired, in particular regarding associative principles, implementation of controls and development of manuals, as well as the use of special tools to improve the technical capacity of the sector. In addition, support organizations should be legally established to increase the competitiveness of these producers at the national and international levels.

Due to the lack of a consolidated organization, they have not been able to secure the necessary support to improve the provision of services, and even though they have had negotiations at the local level, they have been forced to act on their own, which has prevented them from achieving their objectives. Therefore, ACMEFAR has decided to support this sector through the development and implementation of this project proposal since, in accordance with its by-laws, the aim of the Association is to promote sustainable integrated development processes with the participation of the forest and environmental sectors, through discussions, consensus-building and search for solutions to forest and environmental problems so as to facilitate the full development of its members and the population at large.

1.2 RELEVANCE

1.2.1 Conformity with ITTO's objectives and priorities

This project is consistent with the overall objectives set out in the International Tropical Timber Agreement (ITTA) i.e. “to promote the expansion and diversification of international trade in tropical timber from sustainably managed and legally harvested forests and to promote the sustainable management of tropical timber producing forests”.

Furthermore, project activities are related to the objectives set out in Article 1 of the Agreement as follows: a) “Contributing to sustainable development and to poverty alleviation”, through the generation of direct employment and income for the families involved in the woodworking industry. The project envisages the provision of support to the forest industry in the region enabling it to process timber under the principle of sustainable management of forests located in community areas, which is expected to ensure the long-term sustainability of forest lands. b) “Enhancing the capacity of members to implement strategies for achieving exports of tropical timber and timber products from sustainably managed sources.” Considering the support to be provided to the forest industry in the region and the harvesting of timber in areas under the control of the National Forest Institute (INAB), this and other future projects are expected to focus on the application of techniques that will ensure long-term forest sustainability. c) “Promoting improved understanding of the structural conditions in international markets, including long-term trends in consumption and production, factors affecting market access, consumer preferences and prices, and conditions leading to prices which reflect the costs of sustainable forest management.” This project has been mainly formulated with a view to strengthening the technical and

-4- business skills of a group of carpenters so as to improve the quality of their products and allow them to seize market opportunities at the local, national and international levels. d) “Promoting increased and further processing of tropical timber from sustainable sources in producer member countries, with a view to promoting their industrialization and thereby increasing their employment opportunities and export earnings.” The timber furniture market offers great opportunities, which will be assessed through a market survey. The subsequent marketing of products will consider firstly the production capacity available and secondly the need to meet the quality standards of consumers. e) “Promoting access to, and transfer of, technologies and technical cooperation to implement the objectives of this Agreement, including on concessional and preferential terms and conditions, as mutually agreed.” As a complement to this project, the necessary basic equipment is expected to be secured to improve timber products, increase production and improve quality standards; in addition, the project will generate new working techniques, which will lead to increased competitiveness at the national level, with possibilities of exports in the future.

Furthermore, this project will contribute to ITTO’s strategic priorities as established in the ITTO Strategic Action Plan 2013-2018, in particular the following:

1. Promote good governance and enabling policy frameworks for strengthening SFM and related trade, and enhancing SFM financing and investment. The adequate intervention of the National Forest Institute (INAB) in the sound management of forest resources and the enforcement of specific regulations will be ensured through ongoing monitoring of controlled forests in the region. Financing and re-investment of resources are expected to enable the timely intervention of ACMEFAR as an advisory agency to small woodworking companies so as to ensure their self-sustainability in the medium term.

2. Increase the contribution of tropical forests to national and local economies, including through international trade. The project will develop technical skills to improve woodworking products with a view to targeting the domestic market in the short term and the export of products to neighbouring countries in the medium term. This is expected to increase the economic income of local families.

Furthermore, a project aimed at the manufacturing and marketing of crafts is also envisaged to make adequate use of carpentry waste and develop a new economic strategy for beneficiary communities.

3. Improve the quality and availability of information on tropical forests, forest product markets and trade. The project will provide a market survey to assess the supply and demand of timber products; a product marketing plan to set out objectives and goals; and administrative manuals detailing the internal organization of woodworkers’ groups that can be adapted to other external studies that may be carried out in the future.

4. Build and develop human resource capacity to implement SFM and increase trade in forest goods and services from sustainably managed forests. Administrative, technical and marketing training will be provided to improve the business activities of small enterprises participating in the project. Training will also be provided on crafts manufacturing with the participation of groups of women from target communities.

The sustainable management of forests will be supported through the purchase of timber from legally established sawmills in the region that can provide evidence of sustainable forest management practices. The two major suppliers to be considered are: Asilvo Chancol and Awm Te in Yalambojoch Nentón, both of which are located in the Department of Huehuetenango and are also supported by the Forest and Environmental Consensus Roundtable of Region VII.

1.2.2 Relevance to the submitting country's policies

This project is mainly consistent with the following principles of Guatemala´s forest policy:

 Supply of environmental goods and services to society: considering that the implementation of scheduled activities will provide quality goods and services to society as well as new knowledge for carpenters, their families and their communities.

-5-  Sustainable use of forest resources: the management of community forests covered by the Forest and Environmental Roundtable of Region VII is under the responsibility of the National Forest Institute (INAB), whose role is focused on the support and maintenance of forest resources.

 Equitable participation, joint responsibility and entrepreneurship: the project will strengthen entrepreneurial skills, innovation and quality of products, community participation, implementation of new working techniques and economic sustainability for the families.

 Productive competitiveness: new technical skills will be developed so as to improve the quality of production, and legal standards will be established to guide the carpenters’ entrepreneurial actions; in addition, the carpenters will be able to use their entrepreneurial skills to capitalize on the resources available to them.

The activities and expected outcomes of this project are aimed at the implementation of a carpenter group strengthening program. All of the proposed actions are highly consistent with the different areas of action of Guatemala’s Forest Policy, namely: promoting the management of natural forests for production purposes; promoting plantation forestry; and contributing to the search for and use of markets and design of forest products. Furthermore, the proposed project is directly related to Guatemala’s Forestry Law (Legislative Decree No. 101-96) and its Regulations, whose objectives include increasing productivity; promoting and encouraging public and private investments in forest activities; regulating the sustainable use of forests so as to improve the quality of life of the communities by enhancing the provision of forest goods and services.

Furthermore, the National Forest Programme for Guatemala (PFN) through the National Forest Agenda 2003-2012, envisages a number of actions, institutional arrangements, studies, programs and projects, which the forest sub-sector, through different groups of stakeholders, must promote to improve forest management. The Agenda is based on the principles of associativeness, flexibility and participation to ensure an ongoing process of analysis and solution proposals regarding key issues in the forest management and forest biodiversity fields. The Agenda has also been structured around a series of actions and processes grouped in the following thematic areas: forest conservation and protection; sustainable management and production; industry and trade; environmental services; and support areas (institutional strengthening).

The National Climate Change Policy proposes ecosystem conservation and management as adaptation strategies and states that existing ecosystems in our country should be subject to restoration, conservation and integrated management schemes taking into consideration their viability as well as climate change impacts. It further states that the goods and services provided by natural ecosystems should be adequately utilized to reduce their vulnerability to climate change.

1.3 TARGET AREA

1.3.1 Geographic location

Region VII is made up of 52 (20 in the department of Quiche and 32 in the department of Huehuetenango), located in the north-western region of the country between latitudes 15°25'20" - 15°18’14” and longitudes 92°7'4" - 90°28’48”. The region covers an area of 13,058.61 km² and its topography is varied, with mountain peaks of more than 3,000 meters above sea level and lowlands that go down to 200 meters.

Huehuetenango is bounded to the north and west by , to the south by the departments of San Marcos and Quetzaltenango; and to the east by the department of Quiche. Its topography is varied, with mountain peaks of more than 3,850 meters above sea level in the Cuchumatanes Highlands, and lowlands that go down to 300 meters above sea level. It has a varied climate as a result of the great differences in altitude and the irregularity of the terrain.

Administratively, it is made up of 32 municipalities, to wit: Huehuetenango, , , Santa Bárbara H., San Sebastián H, San Juan Atitán, , , San Ildefonso Ixtahuacán, , Tectitán, , , La Libertad, La Democracia, , , , Cantinil, , Nenton, Concepción Huista, Todos Santos Cuchumatán, , , Santa Eulalia, San Mateo Ixtatán, , San Sebastián Coatán, San Rafael la Independencia, San Miguel Acatán and Aguacatán.

The department of Quiche is bounded to the north by Mexico, to the south by the departments of Chimaltenango and Solola, to the east by the departments of Alta Verapaz and Baja Verapaz, to the west by the departments of Totonicapan y Huehuetenango. Administratively, it is made up of 32 municipalities, to wit:

-6- Santa Cruz del Quiché, Canilla, , Chicamán, Chiché, , , Cunén, , , , , Patzité, , San Andrés Sajcabajá, , San Bartolomé Jocotenango, , , Uspantán and .

Out of all the municipalities of the department, the of Chichicastenango has been for many years one of the most important townships of the Guatemalan tourist circuit, as it is a place where tourists can admire the full significance of the religious faith of the native peoples that are descendants of the ancient Mayas.

Region VII has a population density of 110 inhabitants per km2, with an illiteracy rate of 58.75%. It has an economically active population of 496,919 persons, representing 30% of the total population, a general poverty rate of 79% and an extreme poverty rate of 37%

The project will initially be implemented in the departmental capitals of Huehuetenango and Santa Cruz del Quiche, and will later be extended to the municipalities close to these cities.

1.3.2 Social, cultural, economic and environmental aspects

According to the land-use capacity data available, the four main economic activities of the region are: forest production 30%, agro-forestry with annual crops and protection forest lands 14%, and a considerable percentage of the land (12%) is under silvo-pastoral systems. This indicates that there is a high percentage of forest production potential in the region, but this potential has not been adequately utilized.

Approximately 38% of the soils in the region are over-exploited, due mainly to the expansion of the agricultural frontier as a response to the growing demand for subsistence products from the communities settled in the area.

It is estimated that there are 679,878 hectares of land that are amongst the medium, high and very high categories of water catchment areas, representing 52% of the area of Region VII and covering 8 hydrological basins and constituting a major development opportunity for the region.

According to the study on the national forest cover dynamics, the region has a total forest area of 452,442 hectares, which represents 34.64% of the forest cover in the region, distributed amongst three types of forests: mixed, coniferous and broadleaved forests, and a deforestation rate of 4,680 hectares/year. In view of this, and given the forest potential of the region, it is obvious that forests are the most affected resources in the region as a result of human pressure aimed at satisfying basic needs.

Huehuetenango is a department rich in customs and traditions, as it has the highest number of municipalities whose inhabitants are direct descendants of the Mayas. The department has its own traditional dance groups, where the dancers represent scenes from daily life, rites alluding to specific dates or special events that, most of the time, are accompanied by musical bands and their battle weapons. These groups are known as “marimbas”, which are a special feature of this region and are always present in all the celebrations or “fiestas”.

Although the majority of the indigenous populations are Christian Catholics, they have not abandoned their traditional customs. This is evidenced by the existence of Brotherhoods (Cofradias), civil society

-7- organizations where the community leaders are the Principals, or in other words, those who have made outstanding accomplishments and have reached a higher status for the services they have rendered to both the municipalities and the Brotherhoods, thus earning the respect and obedience of the rest of the population.

Huehuetenango is one of the where the highest number of Maya languages are spoken, with Spanish still being the predominant language. Some of the languages spoken in the region include the Mam, Tectiteko, Acateko, Chuj, Poptí, Jacalteko, Kanjobal, Aguakateko and Chalchiteko languages.

The economy of the department is based on regional agriculture which uses a great number of different crops adapted to the many topographic and climate conditions of the department, as well as the nature of the soils. In hot and warm lands, farmers grow , sugar cane, , chili, , achiote (annatto) and a great variety of fruits. In cold lands, is the most common crop and it is produced throughout the whole of the department of Huehuetenango.

Quiche has been, since ancient times, one of the most populated departments of the country and, together with Huehuetenango, is the department that uses the most number of native languages. The Uspanteko language is spoken in the municipality of Uspantán, the in Nebaj, Chajul and San Juan Cotzal, the Sakapulteko language in Sacapulas, the Kekchí language in the northern part of the department and the Kiché language in the southern part.

The geographic configuration of Quiche is quite varied. Altitudes range from 2,310 to 1,996 meters above sea level and, therefore, it has variable climates with a predominance of cold and temperate climates, although there are areas of hot climate as well. However, there are peaks in the mountain range running through the department from west to east that are up to 3,000 m.a.s.l.

The department is crisscrossed by three different topographic systems: the Chama, Cuchumatanes and Chuacús Ranges, and this is the reason for the different climates in the department that range from cold- temperate to much warmer climates.

Religious ceremonies in the department are generally presided over by Mayan priests, who are specialized persons hired by community members for a symbolic payment, to be mediums to communicate with beings from beyond (God, Jesus Christ, the World God, the spirits of their ancestors, etc.). These ceremonies are held both in and out of churches and even in special places or “sacred shrines” in the mountains known as “Quemaderos” (burning places). At these ceremonies, people make offerings of things like incense, copal, pom, eau-de-vie and candles, among others.

The economy of Quiche is based on agriculture, a major conditioning factor in the lives of the population, as the variety of climates in the department together with the large number of rivers flowing through it ensure that the agricultural production is both varied and abundant, with the main crops being: corn, wheat, beans, potatoes, broad beans, peas and to a lesser extent coffee, sugar cane, rice and tobacco. There are also many forests where there are many valuable timber species.

Quiche is one of the most important departments in terms of handicrafts production. The production of traditional cotton and wool fabrics is one of the most notable. Cotton fabrics are woven by women using backstrap looms, while wool fabrics are woven by men in foot-operated looms, although the small pieces such as backpacks, bags and caps are hand-knit with needles.

Another important handicraft is the manufacturing of high quality palm hats. Women are constantly making straw braids, at home or on their way to the market. These braids are then taken to the workshops where the hats are sown. They also make musical instruments, fireworks, traditional ceramics, leather goods, basketry, rigs, timber furniture and carved masks.

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1.4 EXPECTED OUTCOMES AT PROJECT COMPLETION

The following outcomes are expected at project completion:

 The legal organization of a group of approximately 40 carpenters from Region VII, Huehuetenango and Quiche.

Indicators: By the end of the project, 40 carpenters have organized themselves as an enterprise and are positioned in the local and regional markets

 Training in business, trade and administration related topics that will contribute to increasing production, quality and the expansion of both local and national markets.

Indicators: By the end of the project, the capacity of the carpenters’ association has been strengthened.

 The formulation of at least 4 administrative manuals (work regulations, financial manual, human resources manual, operational manual, etc.).

Indicators: By the end of the project, the carpenters’ association has specific work regulations.

 The implementation of a market survey will provide information on the market supply and demand of products as well as on raw material suppliers.

Indicators: By the end of the project, there is a well-defined market survey.

-9- PART 2. PROJECT RATIONALE AND OBJECTIVES

2.1 STAKEHOLDER ANALYSIS

Table 1. Stakeholder analysis

Group of Characteristics Problems, needs, Potential Involvement in stakeholders interests the project Primary stakeholders Association of the Direct Lack of financing for Team of They will be Forest and administrators of their operations and specialized responsible for Environmental projects under for providing support professionals in project Consensus Roundtable implementation. to first-tier the forestry field. management, the of Region VII organizations. Experience in selection of project consultants and implementation. the allocation of activities. Furthermore, they will organize all project activities. Secondary stakeholders 40 carpenters from They are part of Lack of technical Workshops Direct project Region VII – 20 from the carpenter and entrepreneurial installed and beneficiaries Huehuetenango and 20 network capacities. Lack of coverage of through business from Quiche established in the resources for certain local and technical region. equipment. market sectors. training courses. They will Lack of technical Professional Direct project Senior carpenters (An coordinate and entrepreneurial experience and beneficiaries. organized group of activities between capacities. Lack of knowledge about 5 carpenters) all carpenters in resources for woodworking. the region and will equipment. direct all activities. Lack of business organization. Women from the Community Lack of income due They live near the They will be communities of both women who are to a lack of work at carpentry /joinery producing the departments of the wives and the local level. The workshops that timber pieces that Region VII. daughters of waste timber pieces will participate in will be needed to project left over in the the project and make the required participants. carpentry/joinery are willing to learn handicrafts. workshops are used new technical and as firewood. entrepreneurial skills. The communities Communities Unemployment, lack Workshops and They will be where the living near the of knowledge about carpenters settled offered carpentry/joinery carpentry/joinery any production in the apprenticeships workshops are installed workshops where activities. communities and and continuous that can benefit from training will be committed to local training in the new work opportunities. provided for those development. trade, and then interested in they will be able to learning the trade. be hired to work in the workshops. National Forest Institute Agency governing Promoting forest Forest Incentives Institutional (INAB) the country’s management; Programme, support forest sector promoting legally technical established forest assistance and industries training in forest management

-10- Forest Industry and A body attached Promoting It coordinates Institutional Trade Directorate to the National developing, effective partnerships as support Forest Institute – integration of required to INAB production, industrial promote forest- processing and trade industry-market of forest products integration with a view to meeting the demand of the national and international markets Suppliers of raw Community and Unfair competition, Forests classified They will provide materials (sawmills) private lack of knowledge and managed by legal timber to the organizations that about forest INAB, basic tools carpenters, thus provide/sell raw management, lack of and machinery for benefitting more materials to be financial resources. timber logging communities. used to make operations. different products. Transport operators Individuals who A lot of competition, Knowledge about Responsible for have a means of high fuel costs, the region; known the transport of transport. unemployment. by the timber and other communities and inputs to the also by the woodworking carpenters. workshops. Tertiary stakeholders Local companies Private The risk of Knowledge of the Are a part of the involved in the sale of companies with transporting their local market. market where the furniture own capital products to distant Accepted by the products will be funding that buy locations. High costs end-consumers. sold after their products in and poor quality. negotiating price the Capital City and quality. and other departments of the country. The population at large The inhabitants of They must buy their Consumers of They will be able the departments products from locally products made to buy special in Region VII based transnational from special designs that were companies. timber from the previously only region. available from major companies and at a much higher price.

2.2 PROBLEM ANALYSIS

The constant threats faced by forests in relation to deforestation, forest fires, etc., have made organizations and communities take a keen interest in forests and implement long-term sustainability projects. Furthermore, the relevant stakeholders in the sector have implemented business ideas and have been sustainably harvesting forest resources to generate income and social benefits for the communities.

Five (5) years ago, a group of carpenters was established with the idea of mutually supporting one another to increase the number and application of new production techniques, the use of different tools, the identification of sources of raw materials, etc., which would allow them to work as part of a chain, giving value added to each activity implemented. The market for these products is constantly coming up with new designs and requiring different types of products in accordance with the needs and economic capacities of consumers. This is mainly done by international companies as they have greater experience in this field, which gives them a great competitive edge, as they supply most consumers at the local and national levels.

Most of the local woodworkers have only basic skills, although some learned through on-the job training and others at a professional level. However, because of a lack of financial and institutional support, they have not been able to better organize themselves so as to update their techniques and acquire more skills to allow them to reduce costs and to gain greater market coverage. They have only managed to maintain basic equipment and facilities, which only enables them to maintain the same designs, the same clients, the same

-11- levels of income and the same product quality, but they are unable to provide support to other people in their communities to teach them the trade.

The senior technical team (made up of 5 professional carpenters) has tried to identify support mechanisms to improve the aforementioned aspects; however, after 5 years of work, their efforts have not been successful and the achievements made to date have been limited. They have only succeeded in actively maintaining their meetings, getting some training and arranging a few visits to furniture fairs at the national level by using their own resources.

Furthermore, they only have basic knowledge about business and marketing skills and techniques for the production of their products using basic equipment. Thus, the products they produce are defective because they use moist wood or they are unable to deliver their products on time as they have to wait to find the required raw materials in the local sawmills.

Thus, the most common problems in the woodworking sector are: 1) wood drying, which cannot be achieved at 100%, 2) there are no good quality timber suppliers in the region, 3) the availability of timber is not guaranteed as the woodworkers must wait until the sawmills bring out new batches of products and, in general terms, the availability is subject to the demand for timber from other trades and sectors such as the construction sector, 4) no specific knowledge is available about the market supplied by the sector, 5) there are bad quality substitute products (e.g. melamine and Formica), 6) a long time is needed for product deliveries to be made due to the waiting periods for timber drying and the lack of availability of appropriate timber, 7) there are no specific timber merchants or distributors for carpenters, and 8) there is no access to financing, particularly for the purchase of equipment.

Another problem is the limited utilization of waste wood. All the pieces that are left over from the manufacturing of furniture are used as firewood as there is no information available on how to use these residues for other purposes. The solution to this problem will be very useful for many women in the communities, as the appropriate knowledge and equipment to process wood residues will specifically provide work for them in manufacturing the pieces needed for the production of handicrafts.

-12- Table 2: Problem Tree

Limited involvement Reduced economic Carpenters’ limited Lack of information and positioning in benefits derived market access and on product supply the local and from product design capacity to respond and demand in the regional markets and quality to local and regional local market market demand

Small carpenters’ production and marketing problems in the Huehuetenango and Quiché areas

No consolidated Lack of technical, No business plan No market survey at carpenters’ administrative and established the local and organization business skills regional levels

Lack of capacity No comprehensive Limited production Lack of knowledge and guidance on training plan of furniture of new on raw material legalization and designs, types and suppliers and on organization quality and lack of product supply and procedures information on end- demand in the consumer needs market and preferences

No strategic plan for Lack of adequate Lack of sales Lack of knowledge the organization equipment and strategy, contacts of local market administrative and market access product prices

monitoring tools

-13- 2.3 LOGICAL FRAMEWORK MATRIX

Table 3: Logical framework

Means of Intervention Strategy Measurable Indicators Key Assumptions Verification By the end of the project, 40 Documents of Sustainability carpenters have organized association, themselves as an enterprise photographs, Active participation of and are positioned in the legalization stakeholders in all local and regional markets documents activities

By the end of the project, 40 Photographs, list organized carpenters have of participants better skills and improved Institutional support for product designs and quality all processes involved thus increasing their financial income levels Development objective: Contribute to the long-term economic development of the group of By the end of the project, 1 business plan carpenters by strengthening their there is a business plan developed and capacity to achieve improved available to ensure the validated efficiency in the production and technical and economic Document marketing of timber products viability of the production Design and marketing of value- photographs added finished products

By the end of the project, Data sheets Survey participants there is a market survey Documents provide the necessary with information on supply, information as required demand and potential suppliers of raw materials to support the production and marketing of value- added finished products

Specific objective: Strengthen By the end of the project, the Reports Development carpenters’ skills for the production organization of 40 carpenters Photographs and marketing of timber products in has been strengthened for the Studies Active participation of the local and regional markets of production and marketing of beneficiary Huehuetenango and Quiché timber products in the local stakeholders and regional markets throughout the project implementation period Output 1 Carpenters’ organization By the end of the first year of Lists of Operational consolidated and legally established the project, the carpenters are participants, organization organized and legalized photographs, legal documents The beneficiaries are By the end of the project, Document, lists interested in setting up there is a planning instrument of participants, an organization (Strategic Plan) available photographs

-14- Output 2 Technical, administrative and 1 training plan has been Training plan The beneficiaries are business skills of the carpenters’ developed and the resources document, willing to participate in organization strengthened. for its implementation have photographs the training program. been secured.

By the end of the project, 10 Lists of Training courses training workshops have been participants, developed according implemented. photographs to schedule.

40 carpenters trained in List of technical and administrative participants issues. The beneficiaries are interested in By the end of the first year, Documents participating in the there are 4 administrative development of monitoring tools as well as the manuals. organization’s bylaws. Output 3 Business plan developed using a By the end of the first year of Final Surveyed stakeholders participatory approach. the project, a business plan has document, provide the necessary been developed using a survey tools information as required participatory approach.

By the end of the first year of Document, the project, end-consumers’ survey tools needs and preferences have been identified.

By the end of the first year of Document, the project, the sales strategy survey tools and contacts have been identified.

Output 4 Market survey on local and regional By the end of the first year of Instruments, Stakeholders provide supply and demand implemented the project, there is a market final document, the necessary survey available photographs information

By the end of the project, Data sheets, potential raw material suppliers photographs have been identified

Output 5 Project outcomes and experiences Local stakeholders, GOs and Reports, Project acceptance by disseminated and promoted NGOs become aware of the photographs beneficiaries results and experiences of this project

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2.4 OBJECTIVES

2.4.1 Development objectives

 Contribute to the long-term economic development of the group of carpenters by strengthening their capacity to achieve improved efficiency in the production and marketing of timber products.

2.4.1.1 Impact indicators (long term)

 By the end of the project, 40 carpenters have organized themselves as an enterprise and are positioned in the local and regional markets

 By the end of the project, 40 organized carpenters have better skills and improved product designs and quality thus increasing their financial income levels

 By the end of the project, there is a business plan available to ensure the technical and economic viability of the production and marketing of value-added finished products

 By the end of the project, there is a market survey with information on supply, demand and potential suppliers of raw materials to support the production and marketing of value-added finished products

2.4.2 Specific objective

 Strengthen carpenters’ skills for the production and marketing of timber products in the local and regional markets of Huehuetenango and Quiché

2.4.2.1 Outcome indicators (short term/during project implementation)

Upon project completion:

 the carpenters’ organization has been strengthened for the production and marketing of timber products in the local and regional markets

-16- PART 3. DESCRIPTION OF PROJECT INTERVENTIONS

3.1 OUTPUTS

The outputs expected to be produced by this project are as follows:

Output 1: Carpenters’ organization consolidated and legally established.

Output 2: Technical, administrative and business skills of the carpenters’ organization strengthened.

Output 3: Business plan developed using a participatory approach

Output 4: Market survey on local and regional supply and demand implemented

Output 5: Project outcomes and experiences disseminated and promoted

3.2 ACTIVITIES AND INPUTS

In order to achieve the planned outputs, the implementation of the following activities is envisaged:

Output 1: Carpenters’ organization consolidated and legally established.

Activity 1.1 Holding meetings to consolidate the carpenters’ organization

Activity 1.2 Providing advice to the carpenter group on legalization procedures

Activity 1.3 Developing a long-term strategic plan for the organization

Output 2: Technical, administrative and business skills of the carpenters’ organization strengthened.

Activity 2.1 Implementing a participatory assessment of training needs

Activity 2.2 Developing a training plan using a participatory approach

Activity 2.3 Organizing training workshops on administration, business, marketing and equipment purchase procedures

Activity 2.4 Developing manuals on administrative control and rules of procedure

Output 3: Business plan developed using a participatory approach

Activity 3.1 Recruiting specialized personnel for the development of a business plan

Activity 3.2 Providing training on new designs and furniture qualities

Activity 3.3 Providing guidance and training to negotiate the marketing of products in the local and regional markets

Activity 3.4 Implementing a study on the requirements and preferences of end-consumers

Activity 3.5 Developing a sales strategy, contacts and market access

Output 4: Market survey on local and regional supply and demand implemented

Activity 4.1 Recruiting specialized personnel for the implementation of a market survey

-17- Activity 4.2 Conducting interviews to determine the supply and demand of timber products

Activity 4.3 Implementing a study on potential raw material suppliers

Activity 4.4 Conducting interviews to determine the prices of products in the local market

Output 5: Project dissemination and systematization

Activity 5.1 Disseminating project outcomes

Activity 5.2 Spreading project learning and experience

3.3 IMPLEMENTATION APPROACHES AND METHODS

This project will be managed and implemented by the Association of the Forest and Environmental Consensus Roundtable of Region VII (ACMEFAR) because the group of carpenters (a minimum of 40 people) are not legally organized. In addition, the project will be implemented with the support of the National Forest Institute (INAB), which will guarantee the appropriate management of forests in the region, thus ensuring their long-term sustainability.

Through the use of a participatory development approach, the project will support those groups interested in participating in the implementation of a training program on technical (carpentry/joinery and handicrafts), administrative and entrepreneurial aspects of the sector, so as to facilitate the marketing of products made from timber resources harvested from community forests, through the installed timber industries in their respective regions. The work will be directed towards the utilization of sustainably managed resources and the improvement of the socio-economic situation of the families in these communities.

The following measures will be adopted to ensure the implementation of this participatory approach:

- Formulation of a work plan and monitoring: The meetings of the leading team will be continued, as well as meetings of the team with the other direct project beneficiaries, with the aim of implementing short, medium and long term action plans to minimize the risk of failure. It will be necessary to establish the current baseline situation, taking into account the actual conditions of small entrepreneurs and their communities. This will provide valuable information for the implementation of organized work activities aimed at the achievement of project objectives. The implementation of these activities will require the prioritization of needs, aimed at always ensuring common benefits and supporting the generation of family incomes, as well as guaranteeing the sustainability of natural resources.

- Community participation: The implementation of the project will require a participatory approach, as the project will be launching a general call for people to participate in learning the woodworking trade and subsequently (depending on the needs) will be recruiting those who have shown the greatest interest and achieved the best results in their traineeships, taking into account factors such as responsibility, order, cleanliness, etc.

- Support for women: It is envisaged that the implementation of the handicrafts component will be an essential part of the project. This component is aimed at providing support for female members and for the wives and daughters of active male members, who will be given the opportunity of acquiring knowledge on the production of wooden crafts. Incentives will be then provided for their participation in the production of these products that will subsequently be marketed at the national and international levels, according to the production capacity and the demand in these sectors.

- Strengthening of the organization of local carpenters: More carpenters from the region will be invited to join the organization (association or enterprise according to the legal status achieved for this body) according to its needs and priorities. Their active participation within the group will be an important factor in ensuring their appropriate integration to the work required for the implementation of activities aimed at the achievement of established objectives.

-18- 3.4 WORK PLAN

Table 4. Work Plan

Year 1 Year 2 Outputs /Activities Responsible Party Quarter Quarter 1 2 3 4 1 2 3 4 Output 1 Activity 1.1 Holding meetings to consolidate the Carpenter group /Legal adviser carpenters’ organization Activity 1.2 Providing advice to the carpenter group on Carpenter group /Legal adviser legalization procedures Activity 1.3 Developing a long-term strategic plan for Carpenter group /Legal adviser the organization Output 2 Activity 2.1 Implementing a participatory assessment of Consultant/ Carpenter group training needs Activity 2.2 Developing a training plan using a Consultant /Carpenter group participatory approach Activity 2.3 Organizing training workshops on administration, business, marketing and equipment purchase Consultant /Carpenter group procedures Activity 2.4 Developing manuals on administrative Consultant /Carpenter group control and rules of procedure Output 3 Activity 3.1 Recruiting specialized personnel for the Carpenter group development of a business plan Activity 3.2 Providing training on new designs and Consultant /Carpenter group furniture qualities Activity 3.3 Providing guidance and training to negotiate the marketing of products in the local and regional Consultant /Carpenter group markets Activity 3.4 Implementing a study on the requirements Consultant and preferences of end-consumers Activity 3.5 Developing a sales strategy, contacts and Consultant market access Output 4 Activity 4.1 Recruiting specialized personnel for the Carpenter group implementation of a market survey Activity 4.2 Conducting interviews to determine the Consultant supply and demand of timber products Activity 4.3 Implementing a study on potential raw Consultant material suppliers Activity 4.4 Conducting interviews to determine the Consultant prices of products in the local market Output 5 Activity 5.1 Disseminating project outcomes Carpenter group Activity 5.2 Promoting project learning and experience Carpenter group

-19- 3.5 BUDGET 3.5.1 Master Budget

Table 5: Master budget

Quantity ITTO

Outputs/ Description Unit US$

Activities $ US Budget Budget Unit Cost Total Cost Year 1 Year 2 Year 1 Year 2 component Agency Agency Executing

Output 1 Carpenters’ organization consolidated and legally established A.1.1 Holding meetings to consolidate the carpenters’ organization 3 meetings with 40 carpenters 61 3 man/day 350 1050 1050

A.1.2 Providing advice to the carpenter group on legalization procedures

1 Legal adviser / 1 report 13 1 unit 1410 1410 1410 A.1.3 Developing a long-term strategic plan for the organization 1 professional/ 1 document 13 1 unit 1800 1800 1800 2 meetings with 40 carpenters and 5 members of ACMEFAR 61 2 man/day 500 1000 1000 Output 2 Technical, administrative and business skills of the carpenters’ organization strengthened.

A.2.1 Implementing a participatory assessment of training needs 2 meetings with 40 carpenters 61 2 man/day 350 700 700 A.2.2 Developing and implementing a training plan using a participatory approach and purchasing of equipment

Trainers 13 8 4 man/day 145 1740 1160 580 12 training modules (40 carpenters from Region VII, 20 from Huehuetenango man/day and 20 from Santa Cruz del Quiché) 15.2 8 4 500 6000 4000 2000 1 CNC machine 44 1 unit 22045 22045 22045

1 20-inch planer 44 1 unit 3600 3600 3600

1 8-inch edger 44 1 unit 1500 1500 1500

1 sliding table saw 44 1 unit 6700 6700 6700

-20- 1 training module on the use of equipment for 5 carpenters, 3 days each 15 3 man/day 250 750 750

5 training modules on the use of equipment for 40 carpenters (5 groups of 8 15 3 man/day 1000 5000 5000 carpenters each, for 3 days)

A.2.3 Developing manuals on administrative control and rules of procedure

1 professional/ 4 documents 13 4 unit 750 3000 3000

Work meetings 61 8 man/day 270 2160 1080 1080

Output 3 Business plan developed using a participatory approach

A.3.1 Recruiting specialized personnel for the development of a business plan

1 professional/ 1 document 13 1 unit 1900 1900 1900

Study on end-consumers’ needs and preferences 13 1 man/day 500 500 500

Sales strategy, contacts 13 1 man/day 500 500 500

A.3.2 Providing training on new designs and furniture qualities

2 trainers 13 12 4 man/day 145 2,320 1740 580

Training on new product designs 15 40 man/hour 27 1080 1080

Training on wood crafts manufacturing (women) 15 2350 man/hour 1.5 3525 3525

Technical training facilities 41 1 1 year 12000 24000 24000

Miscellaneous consumable items 51 1 1 year 4000 8000 8000

Office supplies 54 1 1 year 1500 3000 3000

Utilities (electricity, telephone) 53 1 1 year 1500 3000 3000

A.3.3 Providing guidance and training to negotiate the marketing of products in the local and regional markets

Visits to potential clients at the regional and national levels 61 4 fare 450 1800 1800

Tours to forest trade fairs and furniture exhibitions 61 2 fare 1000 2000 1000 1000

-21- Output 4 Market survey on local and regional supply and demand implemented

A.4.1 Recruiting specialized personnel for the implementation of a market survey

1 professional/ 1 survey 13 1 unit 2500 2500 2500

A.4.2 Conducting interviews to determine the supply and demand of timber products

Implementation of interviews 13 1 unit 200 200 200

A.4.3 Implementing a study on potential raw material suppliers

Study on potential raw material suppliers 13 1 unit 200 200 200

A.4.4 Conducting interviews to determine the prices of products in the local market

Survey on product prices in the local market 13 1 unit 200 200 200

Output 5 Project dissemination and systematization

A.5.1. Disseminating project outcomes

1 workshop with carpenters 15 1 unit 300 300 300

A.5.2. Systematizing project learning and experience

1 Document 61 1 unit 100 100 100

A.0.0 Non-activity related expenses

A.0.1 Project Coordination

A.0.11 Administrative personnel

111 12 12 man/month 1300 31200 15600 15600 Project Coordinator monthly A.0.12 54 12 12 84 2000 1000 1000 Office expenses (consumable items) amount Training materials 1 annual amount 600 600 600 monthly A.0.13 Fuel 51 12 12 85 2000 1000 1000 amount monthly A.0.14 Duty travel (Coordination) 31 12 12 250 6000 3000 3000 amount

-22- A.0.2 Auditing 62 1 1 man/month 1500 3000 1500 1500

Monitoring and Evaluation

National management costs 70 lump sum 24408 24408

ITTO monitoring and review 81 lump sum 15000 15000

ITTO Programme support costs 85 lump sum 16068 16068

TOTAL 55,476 213,856 86,565 32,335 39,480

CNC Machine: These computer numerical control (CNC) milling machines are mainly used for the production of medium volumes of simple workpieces and medium to low volumes of complex workpieces, simplifying the mechanical operation required to switch from one workpiece model to another by simply inserting the relevant software program and tools to be used in addition to the workpiece holding device.

Technical training facilities: these are the facilities to be used throughout the training process.

Attendance to international fairs: The budget provides for the attendance of carpenters to forest trade fairs and furniture exhibitions. These are events that are organized in Guatemala to provide information on the entire production chain. In addition, trade fairs are organized to provide information on tools and machinery that are used and required for the processing of timber. In view of this, it is proposed that the group of carpenters should visit this type of events.

-23- 3.5.2 Consolidated budget by component

Table 6: Consolidated budget by component

Category Description Total Year 1 Year 2 10 Personnel 111 Project Coordinator 31200 15600 15600 132 Business consultants 10800 10800 132 Legal adviser 1410 1410 132 Entrepreneurship (training) 4060 2900 1160 19 Component Total 47470 30710 16760 30 Travel 31 Duty travel 6000 3000 3000 39 Component Total 6000 3000 3000 40 Capital Items 41 Technical training facilities 24000 12000 12000 442 CNC machine 22045 22045 443 20-inch planer 3600 3600 444 8-inch edger 1500 1500 445 Sliding table saw 6700 6700 49 Component Total 57845 45845 12000 50 Consumable Items 511 Fuel 2000 1000 1000 512 Miscellaneous consumable items 8000 4000 4000 53 Utilities (electricity, telephone) 3000 1500 1500 54 Office supplies 3000 1500 1500 541 Office expenses 2000 1000 1000 542 Training materials 600 600 59 Component Total 18600 9600 9000 60 Miscellaneous 601 3 meetings with 40 carpenters on carpenters’ 1050 1050 organization 601 2 meetings with 40 carpenters and 5 directors of 1000 1000 ACMEFAR VII for the development of strategic plan 601 2 meetings with 40 carpenters for the assessment of 700 700 training needs 602 4 work meetings for the development of 2160 2160 administrative manuals 604 1 training module on the use of equipment 750 750 605 5 training modules on the use of equipment for 40 5000 5000 carpenters 606 12 administrative, business and technical training 6000 4000 2000 modules Training on new product designs 1080 1080 608 Training on crafts manufacturing for 200 beneficiary 3525 3525 women 609 Visits to potential clients at the regional and national 1800 1800 levels 610 Attendance to forest trade fairs and furniture 2000 2000 exhibitions 61 1 workshop with carpenters for project dissemination 300 300 61 Project systematization document 100 100 62 Auditing 3000 1500 1500 69 Component Total 28465 11490 16975 Sub-total 158380 70 National Management Costs $ 24,408 (15%) 80 Project Monitoring and Administration 81 ITTO monitoring and review 15000 82 ITTO programme support costs 16,068 89 Sub-total 31,068 100 GRAND TOTAL $ 213,856

-24-

3.5.3 Yearly budget by source – ITTO

Table 7: Yearly budget by source – ITTO

Category Description Total Year 1 Year 2 10 Personnel 111 Project Coordinator 31200 15600 15600 132 Business consultants 10800 10800 132 Legal adviser 1410 1410 132 Entrepreneurship (training) 4060 2900 1160 19 Component Total 47470 30710 16760 30 Travel 31 Duty travel 6000 3000 3000 39 Component Total 6000 3000 3000 40 Capital Items 442 CNC machine 22045 22045 443 20-inch planer 3600 3600 444 8-inch edger 1500 1500 445 Sliding table saw 6700 6700 49 Component Total 33845 33845 50 Consumable Items 511 Fuel 2000 1000 1000 541 Office expenses 2000 1000 1000 542 Training materials 600 600 59 Component Total 4600 2600 2000 60 Miscellaneous 601 3 meetings with 40 carpenters 1050 1050 601 2 meetings with 40 carpenters and 5 directors of 1000 1000 ACMEFAR VII for the development of strategic plan 601 2 meetings with 40 carpenters for the assessment of 700 700 training needs 602 4 work meetings for the development of 1080 1080 administrative manuals 604 1 training module on the use of equipment 750 750 605 5 training modules on the use of equipment for 40 5000 5000 carpenters 606 12 administrative, business and technical training 6000 4000 2000 modules Training on new product designs 1080 1080 608 Training on crafts manufacturing for 200 beneficiary 3525 3525 women 609 Visits to potential clients at the regional and national 1800 1800 levels 610 Attendance to forest trade fairs and furniture 2000 1000 1000 exhibitions 62 Auditing 3000 1500 1500 69 Component Total 26,985 16,410 10,575 Sub-total 118,900 86,565 32,335 80 Project Monitoring and Administration 81 ITTO monitoring and review 15000 Sub-total (11-82) 133,900 82 ITTO programme support costs (12%) 16,068

89 Sub-total 16,068 100 GRAND TOTAL $ 149,968

-25- 3.5.4 Yearly budget by source – Executing Agency

Table 8: Yearly budget by source – Executing agency

Category Description Total Year 1 Year 2 40 Capital Items 41 Technical training facilities 24000 12000 12000 49 Component Total 24000 12000 12000 50 Consumable Items 512 Miscellaneous consumable items 8000 4000 4000 53 Utilities (electricity, telephone) 3000 1500 1500 54 Office supplies 3000 1500 1500 59 Component Total 14000 7000 7000 60 Miscellaneous 61 Work meetings for the development of 1080 1080 administrative manuals 61 1 workshop with carpenters for project 300 300 dissemination 61 Project systematization document 100 100 69 Component Total 1480 1080 400 SUB-TOTAL 39480 20080 19400 70 National Management Costs 24408 100 GRAND TOTAL $ 63,888

-26- PART 4. IMPLEMENTATION ARRANGEMENTS

4.1 EXECUTING AGENCY AND ORGANIZATIONAL STRUCTURE

The Association of the Forest and Environmental Consensus Roundtable of Region VII – Quiché and Huehuetenango (ACMEFAR) was established on 8 November 2006, when it was registered as a private, non-profit, non-partisan, non-religious civil association of mutual collaboration and support.

In accordance with its bylaws, the aim of the Association is to promote sustainable integrated development processes with the participation of the forest and environmental sectors, through discussions, consensus-building and search for solutions to forest and environmental problems so as to facilitate the full development of its members and the population at large. The specific objective of the Association is to coordinate with individuals and organizations for the implementation of forest and environmental activities in Region VII (Quiché and Huehuetenango) with a view to promoting sustainable integrated development.

One of the main objectives of the Association is to “Promote the socioeconomic development of its members through sustainable forest and environmental activities and the implementation of actions within the framework of the national forest and environmental policies with a view to finding solutions to the problems affecting the forest and environmental sectors”, with which this project proposal is fully consistent as it is expected to promote business activities to improve the economy of families in the target communities.

Another objective of the Association is to “Contribute to the continued implementation of an environmental conservation and improvement policy ensuring the rational use of natural resources”. The establishment of forest management activities with the participation of the local communities will contribute to the achievement of this objective.

The internal structure of the Association of the Forest and Environmental Consensus Roundtable of Region VII is based on the representation and participation of grassroots organizations and their members. Thus, it will manage and organize the activities of this project with the participation of project stakeholders and beneficiaries throughout the process, ensuring transparency and efficiency in the management of project resources.

4.2 PROJECT MANAGEMENT

Project management will be under the responsibility of the Association of the Forest and Environmental Consensus Roundtable of Region VII, which will select and appoint professionals and technicians as required for each project operational area.

The main team will be led by a coordinator, who will be a specialist in business and marketing issues considering existing market opportunities and the current lack of capacity of carpenters in these fields. The leading team will include a group of 5 carpenters who have promoted associative issues and have acquired greater skills through training financed with their own resources.

The sawmills managed by the Asilvo Association and the Awum Te Forest Association, both located in the Department of Huehuetenango, will be given priority for the purchase of quality timber. These sawmills have personnel already trained in forest management under the supervision of the National Forest Institute (INAB), which will ensure the quality management of forest resources and learning by community members under an approach focused on the sustainability of the areas of the region.

Each of the issues will be addressed by professional consultants specialized in the required field; these consultancies will allow for the quality and efficient implementation of all scheduled activities ensuring the best possible use of economic, human and forest resources.

-27- 4.3 MONITORING AND REPORTING

Within the first two months, the project coordinator will prepare a first progress report to be submitted to ACMEFAR VII’s Board of Directors.

A policy of the Association of the Forest and Environmental Consensus Roundtable of Region VII is the presentation of monthly reports by each staff member related to the implementation of projects; this will also be necessary to supervise the implementation of each activity and ensure that it is executed with the expected level of quality.

Each significant event, activity or task undertaken by the officers will be subject to evaluation, so as to ensure ongoing improvement and achievement of the overall and specific objectives with the participation of technicians, professionals and beneficiary communities.

ACMEFAR will submit six-monthly progress reports to the ITTO Secretariat in accordance with the relevant ITTO guidelines. Consultancy reports will also be submitted to ITTO. The completion report will be submitted to the ITTO Secretariat within 3 months of project completion. ITTO monitoring missions will take place as scheduled by this Organization. These missions will review project progress measuring compliance with the relevant indicators. The progress made in the implementation of the project will also be reported on ITTO’s on-line system.

4.4 DISSEMINATION AND MAINSTREAMING OF PROJECT LEARNING

4.4.1 Dissemination of project results

The carpenter group will define a strategy for the dissemination of project learning, including the organization of workshops for experience-sharing during and at the end of the project.

4.4.2 Mainstreaming of project learning

By the end of the project, all scheduled and implemented activities will be systematized, from the development of the project idea to the completion of the project. To this end, participatory workshops will be implemented to provide information on lessons learned throughout the life of the project.

-28- ANNEXES

ANNEX 1

Beneficiary institution: Full name: Carpenter Group

Acronym:

Nationality: Spanish

Legal status: Not legally established.

Official address: Region VII - Huehuetenango-Quiché

Telephone: Telephone:

Fax: N/A

Contact person:

Executing Agency: Full name: Asociación Civil Mesa Forestal y Ambiental de la Región VII (Forest and Environmental Civil Society RoundTable of Region VII) Acronym ACMEFAR-VII Nationality: Spanish

Legal status: The Association was legally registered on 9 August 2007 under entry no. 9588, file no. 9588, Book 1 of the Single System of Electronic Registration of Legal Entities. It has an assembly of 40 members, including individuals and local organizations; a board of directors comprising 7 members; and a monitoring commission. Its objectives are to promote the socio-economic development of its members through sustainable forest activities and actions within the framework of the national forest and environmental policy; search for solutions to the problems affecting the forest and environmental sectors; and facilitate the integration of the production chain from the planting phase, through tending, management and harvesting, to the industry, transport and marketing phases. The Association operates on the basis of a strategic plan.

Official address: Municipality of Huehuetenango, Department of Huehuetenango, Guatemala.

Telephone: Telephone: 50595739

Fax: N/A

Contact person: Rolando Gómez

-29-

Collaborating agency: Full name: Instituto Nacional de Bosques (National Forest Institute)

Acrónimo INAB

Nationality: Spanish

Legal status: Semi-autonomous government organization

Official address: Huehuetenango

Telephone: Telephone: 58783329

Fax: N/A

Contact person: Mynor Palacios

The National Forest Institute – INAB is the government agency responsible for the forest sector in Guatemala and for enforcing the Guatemalan forest policy, which has the following objectives: 1) Promoting the expansion and modernization of the primary and secondary processing industrial park, and 2) Contributing to the search for and use of forest product markets and designs. Thus, INAB will play a very important role in the implementation of the project as it will provide the necessary guidance and assistance to the carpenter group.

Collaborating agency: Full name: Dirección de Industria y Comercio Forestal (Forest Industry and Trade Directorate) Acronym:

Nationality: Guatemalan

Legal status: Semi-autonomous government organization

Official address: 7ª. Av. 6-80 zona 13 ciudad de Guatemala. Guatemala C.A

Telephone: Telephone:

Fax:

Contact person:

-30- Profile of the Executing Agency

Association of the Forest and Environmental Consensus Roundtable of Region VII – ACMEFAR-VII

The Association was legally incorporated on 9 August 2007 under Entry no. 9588, Folio 9588, Book 1 of the Integrated Electronic Legal Entity Registration System.

It is a dialogue forum aimed at promoting the sound management of natural resources, productivity and gender equity through the implementation of productive projects, training programs, etc.

Its objectives are: to promote the socioeconomic development of its members through sustainable forest activities and the implementation of actions within the framework of the national forest and environmental policies with a view to finding solutions to the problems affecting the forest and environmental sectors; to integrate the production chain, including planting, tendering, management, harvesting, industrial processing, transport and marketing; to contribute to the continued implementation of an environmental conservation and improvement policy ensuring the rational use of natural resources; and to foster education, integration and the establishment of environmental, forest and related services for its members.

The areas of action of the Association are: to discuss, analyze and promote solutions to forest sector problems; ensure full involvement in decision-making and control of environmental and forest management in Region VII; propose and implement the necessary actions to improve forest and environmental services in the region; to support the development of forest and environmental policies in the region; to support the formulation and management of forest development projects; and to coordinate and implement forest training projects for its members.

The planning instrument of the Association is a Strategic Plan that includes the following seven strategic areas:

1. Project management and implementation 2. Industrial processing and marketing 3. Institutional strengthening 4. Forest and environmental education and training 5. Community and business organization 6. Social and political impacts

Organizational structure:

The Association of the Forest and Environmental Consensus Roundtable of Region VII – ACMEFAR has an assembly of 60 members, including individuals and local organizations, a board of directors of 8 members and a monitoring commission.

ACMEFAR is currently a member of the National Roundtable, which is made up of the regional consensus roundtables.

With regard to the links between the carpenter group and ACMEFAR, the carpenters have a provisional board of directors integrated by 5 members and their chairperson currently serves as Member III of ACMEFAR’s board of directors; hence the significance of ensuring the support of this consensus roundtable.

-31- ANNEX 2. Terms of reference of personnel and consultants funded by ITTO

A. Project Coordinator

Qualifications:

 University degree (in Forest Engineering, Natural or Environmental Resources, preferably with a Master’s Degree in Business Management).  Sufficient knowledge of the forestry field at the country level, as well as potential and limitations of the forest sector in Guatemala.  Knowledge of the current forest and environmental legislation and other related regulations (Forestry Law, PINPEP Law, Environmental Law and Regulations).  A minimum of 5 years experience in the coordination of projects.  A minimum of 3 years experience in the area of forest investment with a business focus.  Good command of general computer software packages as well as specific software in the forest analysis area.  Knowledge of and work experience in organized platforms for forest producers and rural and indigenous communities.  Ability to work in a team under a productivity concept and a gender-equity approach.

Duties:

 Coordinate and monitor all project activities as established in the project document.  Receive and review the reports prepared by the project consultants.  Receive and review the production reports prepared on project operations.  Coordinate and monitor all administrative and operational procedures related to the implementation of activities.  Establish links with public and private institutions related to project issues so as to generate representation and lobbying platforms for the target population.  Plan and implement all activities included in his/her statement of duties.  Facilitate and promote communications between project donors and the executing agency.  Facilitate the work related to cross-cutting aspects generated from the different interventions in his/her field of expertise.  Monitor and follow up the schedule of activities established in the project document.  Carry out field visits for project supervision and monitoring.  Facilitate and provide logistic support for the efficient and timely implementation of planned procedures and activities.  Prepare coordination reports in the format required by the donors and the executing agency.  Monitor the optimal administration of the project budget checking for discrepancies between planned and actual expenditures.  Select significant activities for publication in different communication media.

-32- B. Professional (Business Consultant)

Qualifications:

 University degree in Business Management, preferably with a Master’s Degree in Project Formulation and Management.  Sufficient expertise in business management, preferably in the forestry field.  A minimum of 5 years experience in forest business activities.  Knowledge of and work experience in organized platforms for forest producers and rural and indigenous communities.

Duties:

 Develop a strategic plan (organizational philosophy) for the woodworkers’ organization in Region VII.  Develop a business plan for the market-oriented woodworkers’ organization.  Develop and implement a business training plan according to the needs of project stakeholders.  Develop administrative manuals according to the needs identified in the project document.  Implement a market survey.  Establish the tools required for planning, organization, coordination and monitoring of marketing processes.  Design and implement registration and monitoring tools for woodworkers’ production processes.  Ensure the efficient management of resources to be used in each of the production units established.  Maintain close communication with project stakeholders.  Submit relevant reports to and maintain close communication with the project coordinator.  Promote the products generated by the market-oriented woodworkers’ organization.  Support woodworkers in business missions and fairs.  Provide logistic assistance to support the marketing performance of woodworkers.

-33- C. Professional (Legal Consultant)

Qualifications:

 Lawyer and Notary Public and/or university degree in Business Management.  Sufficient expertise in the marketing field.  Experience in the development of at least 10 organizations established on the basis of the associative organization principle.  Knowledge of and work experience in organized platforms for forest producers and rural and indigenous communities.

Duties:

 Provide advice and conclusive information to the woodworkers’ organization to enable them to make investments in accordance with the current commercial legislation.  Provide technical assistance to woodworkers so as to clarify their questions on commercial associative organizations for the implementation of investment projects in the Department of Huehuetenango.  Ensure the corporate registration of the organization so as to formalize its marketing activities in compliance with the commercial law.  Provide sufficient technical assistance to ensure compliance with the commercial law, including: processing of payment notes, identification of trade name, opening of bank account, completion of SAT and RM forms, processing of articles of association, completion of RTU and NIT procedures, management of legal representative, processing the corporate society registration and notice of incorporation, application for the gazetting of notice of incorporation, final registration of corporate society, processing of licenses.

-34- ANNEX 3. Recommendations of the 46th ITTO Expert Panel

Reviewer Comments/Recommendations Amendment(s) made Page # 1. Explain clearly the role of ACMEFAR for A brief explanation has been provided Page 10 this carpenter group 2. As a small project, the expected outcomes The expected outcomes have been were too ambitious and should be more Page 18 reformulated focused 3. Improve the stakeholder analysis by providing a summary and including the government institutions such as INAB. Pages A brief explanation has been provided Furthermore, it’s not appropriate for the 10-11 ACMEFAR as the EA to be the first primary stakeholder 4. Restructure the problem analysis with a clear key problem and logical links The problem analysis has been restructured Page 13 between causes, key problem and effects 5. Revise the specific objectives according to the ITTO manual, in line with the project The specific objectives have been reviewed Page 16 key problem and the development and revised objectives 6. Refine the indicators for development The indicators for the development and Pages objective and specific objectives with more specific objectives have been revised S.M.A.R.T and quantitative elements 14-15 7. Reformulate the outputs and activities in The outputs and activities have been line with the problem analysis and the Pages reformulated according to the problem objectives and improve the balance analysis and objectives 17-18 between the outputs 8. Reorganize the activities according to the modified problem analysis and outputs and The activities have been reorganized Page 19 describe the details of training programs 9. Rearrange the work plan according to the The work plan has been revised according to modified problem analysis and outputs Page 19 the problem analysis and activities 10. Clarify the budget for “technical training infrastructure” of item A 2.1, “CNC machine” of item A 2.4 and “attendance to The budget has been revised Page 20 international fairs” of item A 3.3. Reallocate “trainer specialized in the field” according to the work plan 11. Provide clear elaboration on the role of ACMEFAR for this project and the Information on the role of ACMEFAR in this Pages 18 and 29 information on expertise and experiences project has been provided in implementing similar projects 12. Include an Annex that shows the overall assessment and specific recommendations of the 46th Expert Panel Included in this annex Pages 35-36 and respective modifications in tabular form. Modifications should also be highlighted (bold and underline) in the text

-35- ANNEX 4. Recommendations of the 47th ITTO Expert Panel

Reviewer Comments/Recommendations Amendment(s) made Page # 1. Revise the ITTO budget to not exceed the Pages The budget has been reviewed and revised limit for small projects ($150,000); 20-26 2. Reformulate and clarify the problem statement, expected outcomes, The problem statement, expected outcomes, Pages development objective indicators and specific development objective indicators and 11-16 specific objective as outlined above; objective have all been reformulated.

3. Develop output indicators. Indicators have been developed Page 9 4. Provide more information on the links More information has been provided on the between the carpenters and ACMEFAR; links between the carpenters and ACMEFAR. Page 31 5. Provide more information on the capacity More information has been provided on the of ACMEFAR and support to the project by capacity of ACMEFAR and support to the Pages INAB; project by INAB. 27, 29 and 30

6. Explain/justify the budget lines for “CNC More information has been included in the budget on the purchase of a CNC machine, machine” ,“Technical training facilities” and Page 23 “attendance at international fairs; and technical training facilities and attendance to international fairs. 7. Include an Annex that shows the overall assessment and specific recommendations of the 47th Expert Panel and respective Included in this annex Page 36 modifications in tabular form. Modifications should also be highlighted (bold and underlined) in the text.

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