Download Project Concept Note

PROJECT CONCEPT NOTE SUMMARY
Mongolia:
Forest
Conservation
Landscapes
Development
and
1. Key development issues and rationale for Bank involvement
Legalized sustainable forest management could be a "weather-proof" path for livelihood
generation among poor rural populations living in forest areas, and would provide steady
revenues to government in the form of royalties and taxes if the current illegal harvest (from
which game currently receives nothing) can be curtailed. This is important because although
Mongolia was the world’s most rapidly-growing economy in 2004, this was achieved in part
because of the relatively kind weather of the previous years and the high world prices for copper
and gold. It is clear that the economy is vulnerable to price shocks and to bad winter weather
and so the GoM is anxious to diversify the economy and to create jobs, especially among the
poor. Giving attention to the forests could be part of that strategy.
Both forest cover and forest quality are declining and the present estimated levels of forest
harvesting are largely illegal and unsustainable. Official revenue streams are declining, illegal
logging is rampant, they are decreasing their contribution to GDP, there are declining incomes
and non-income benefits supporting livelihoods, rising fuel wood and timber prices, decline in
environmental services, and severe loss of wildlife resources which have provided a buffer for
rural people. Until now, instead of dealing constructively with the primary problem of
unsustainable resource exploitation, GoM has tended to focus on largely peripheral forest
issues, such as an forest inventory system, fire control, insect and disease control, and (largely
grossly unsuccessful) reforestation for which neither an ecological nor an economic rationale is
apparent; and top-down enforcement of regulations has been ineffective. The problems in the
forest sector have been aggravated by an erosion of forestry/natural resource management
expertise within the Ministry of Nature and Environment (MNE).
There are currently no mechanisms in place to encourage communities or commercial timber
companies to give attention to sustainable management and action is required by both the
government and donors. A two-pronged strategy involving gradual expansion of community
forest management and strengthening of the existing Government enforcement regime offers
the best solution. The proposed project would support the Government’s vision
(PRSP/EGSPRS) of sustainable management of its important forest landscapes which would
allow Mongolia’s forests to make significant contributions to economic development. The
proposed project is also consistent with the expected outcomes of the current CAS objectives,
namely consolidating the economic transition through institutional reforms that improve public
sector and market efficiency; and reducing rural and urban vulnerabilities. The CAS lists a
forest-related project for FY08.
2. Proposed project development objective(s)
The development objective would be to develop sustainably-managed and productive forests to
support viable livelihood alternatives for communities in the northern forest landscapes, and
thereby to conserve significant environmental services and wildlife resources.
3. Preliminary project description
1
The proposed project would seek to put forest and forest resource management on a modern
and effective footing in at least six areas in the northern forests. The expected outcomes would
be:
 the Mongolian forest estate in the target areas would be stabilized and improved in
quality;
 royalties and revenues to government would increase substantially with the decrease in
illegal exploitation and the increase in legal harvesting of forest resources;
 the policy and legal environments would actively encourage sustainable management by
communities and the private sector of the forest landscapes and the resources within
them;
 the relevant institutions would be effective and staffed with strong human resources.
Component 1. National- and Local-level Strategic Frameworks and Enforcement Support
This component would facilitate sustainable management of forests and forest resources by
government, communities and the private sector, e.g.:
 facilitate the necessary changes such that private sector and communities are prepared
to invest in the forest landscape
 make the necessary changes to institutional frameworks at both national and regional
levels, clarifying mandates, responsibilities and obligations
 establish legal mechanisms (permits or leases) to permit community management,
harvesting and sale of forest products on formally established forest management areas;
 assist the State Specialized Inspection Agency (SSIA) to achieve its mandate by
providing the material resources (vehicles, communications, computer-based casetracking system) to support modern, effective enforcement operations, and facilitating
the development of operational protocols to coordinate and harmonize the activities of
SSIA, MNE, police and state prosecutors.
 monitor timber stocks, rural incomes, conflicts, enforcement, community involvement,
abundance of wildlife resources, etc., as an adaptive management approach within the
project.
Component 2. Capacity-building at National and Local Levels
This component would:
 assist government in consolidating and strengthening the (currently fragmented)
agencies involved in sustainable forest resource management and improving their ability
to deliver on modern and science-based inventories and ecological research,
sustainable yield regulation, ecosystem-based fire and pest management planning, and
forest management planning;
 build capacity for sustainable management of forests and forest resources for
community-based and private sector led activities, for regulatory control and compliance
 provide community-to-community training and capacity building, knowledge-sharing
activities
 assist National University to develop a modern, relevant, science-based curriculum in
sustainable natural resource management by providing material resources and by
facilitating regular contacts and exchanges between the biological and ecological
departments of UoM and university faculties in foreign universities specializing in the
appropriate types of forest management
 assist the State Specialized Inspection Agency (SSIA) to achieve its environmental
compliance monitoring and inspection responsibilities by providing modular training
2
programs for inspectors and rangers in the whole range of compliance and enforcement
activities.
Component 3. Community-based Approaches to Forest Landscape Development and
Conservation
This project component would scale-up from existing successful experience in participatory
planning and execution of sustainable resource management in both forest and grassland
landscapes. The component will work closely with aimag and soum governments and
communities and channel money to as low a level as feasible. The component would:
 provide rural finance that would allow communities to invest in hardware necessary for
both small-scale forest resource management operations as well as value-adding
activities
 promote and disseminate participatory management rules and regulations within the
selected forest landscapes to gain acceptance of community-based natural resource
management;
 provide appropriate training in marketing and entrepreneurship to communities in the
forest landscapes;
 develop opportunities for adding value to sustainably-produced raw forest resources
(timber and non-timber) rather than encouraging trading in primary products, and identify
(niche) markets;
 promote fuel-efficient or alternative energy stoves and fuel alternatives to firewood.
4. Potential risks and mitigation
Weak governance: The proposed project seeks will professionalize the forest guards, engage
communities in the management of their local resources, provide channels for complaints, and
provide meaningful livelihood options.
Lack of familiarity of community-level management: The problems of forming community groups
have been encountered by the SLP but over 300 effective groups have been formed. Lessons
will be applied.
Weak capacity in the Ministry of Nature and Environment (MNE): Execution of the project
components will be through the State Inspection Agency, the aimag governments, and National
University, rather than wholly through MNE.
3