INTERNATIONAL TROPICAL TIMBER ORGANIZATION ITTO PROJECT PROPOSAL TITLE: COMPETITIVENESS AND BUSINESS STRENGTHENING FOR A CARPENTER GROUP IN REGION VII (HUEHUETENANGO-QUICHÉ), GUATEMALA 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