''P ^.,/, , 12^, y. I { 7'' ) I',!^,/ 7;^^,,, e · PDF fileMarketing Information System...

$: ''P ^.,/, , 12^, y. I { 7'' ) I',!^,/ 7;^^,,, e · PDF fileMarketing Information System National Executive Council ... This pre-project report lays the foundation for the establishment$
EXECUTING AGENCY:

TECHNICAL REPORT:

,

PRE-PROJECT TITLE:

ISSUED:

I"',!^,/ 7;^^,,, e, .*,,, ,,,.,,,.,''P ^.,/, , 12^, y. I { 7'' )

PNG FORESTAUTHORITY

FINAL TECHNICAL REPORT

AMODELFOREST MANAGEMENTAREA IN PNG

PACIFIC ISLAND PROJECTS, RABAUL, PNG

20'' JANUARY 2007

I

\

PROJECT COORDINATOR:

PROJECT CONSULTANTS:

MR. FRANK AGARU, Aid Coordinator

PNG Forest Authority, Hohola, National Capital District

PROJECT ADDRESS:

MR. SIMON ROLLINSON, Team Leader

Pacific Island Projects, Rabaul, East New Britain Province,Papua New Guinea

MR. MICHAEL HASAGAMA, Forestry Economics Expert

PNG University of Technology, Lae, Morobe Province,Papua New Guinea

Institution. ' PNG Forest Authority, Policy Secretariat, Hohola,

Post. ' PO Box 5055, Boroko, National Capital District, PapuaNew Guinea

Tel: +675 327 7953

Fax. ' +675 325 5451

Email:fagaru@pngfa. gov. pg

Abbreviations

4WDDECF1AF1MSF1PFMAFRl

FSCGOPNGGTZILGIPAIRCISOITTCITTOLCOPLOLOCMFMAMISMklSNECNFBNFSNGOPFMCPGK

PINFORMPNGPNGFAPNGRISPSPPERSYSTR& DSBDCSFMSGSSMASWOTTATFTCTMICTPTPHTRPUOTusD

4 Wheel Drive

Department of Environment and ConservationForest Industries Association

Forest Inventory Mapping SystemsForest Industry ParticipantForest Management AgreementForest Research Institute

Forest Stewardship CouncilGovernment of PNG

German Agency for Technical CooperationIncorporated Land GroupInvestment Promotion AuthorityInternal Revenue Commission

International Standards OrganisationInternational Tropical Timber CouncilInternational Tropical Timber OrganizationLogging Code of PracticeLandowner

Land Owner CompanyModel Forest Management AgreementManagement Information SystemMarketing Information SystemNational Executive CouncilNational Forest BoardNational Forest Service

Nori Governmental OrganisationProvincial Forest Management CommitteePNG Kiria

PNG/ITTO National Forest Model

Papua New GuineaPNG National Forest AuthorityPNG Resource Inventory SystemPermanent Sample PlotPermanent Plot System (PINFORM database)Research and DevelopmentSmall Business Development CorporationSustainable Forest ManagementSociete Generale de Surveillance

State Marketing AgencyStrengths, Weaknesses, Opportunities and ThreatsTimber AuthorityTimber & Forestry Training CollegeTimber Marketing Information CentreTimber PermitTimber Permit Holder

Timber Rights PurchaseUniversity of TechnologyUnited States Dollar

PPD 2199 Rev. I(F)- Report No. f (outffne of framework for forest management plan) Page i

Preface

Papua New Guinea is committed to sustainable forest management through its constitution, policies,laws and regulations. The Model Forest Management Area (MFMA) project provides Papua NewGuinea's forestry sector with an excellent opportunity to study, develop and promote improved forestmanagement practices for Papua New Guinea.

This pre-project report investigates the four principal areas of the National Forest Policy, namely forestplanning, forest industry, training and research. Activities involved consultations with landownerrepresentatives, key stakeholders and partner organizations at local, provincial and national levels, aswell as on site verification of forest data. National Forest Service staff assisted with the selection and

allocation offorest resources in line with the requirements of the Forestry Act. Findings are aligned withITTO Criteria and Indicators and described in 5 separate sub-reports.

This pre-project report lays the foundation for the establishment of a MFMA at Wipim-Tapila in theWestern Province of Papua New Guinea. Cost effective strategies are proposed to improve theplanning, monitoring and impact assessment of Timber Permit operations within Papua New Guinea.Capacity building and applied research inputs are highlighted. Some recommendations are given toassist the revision of the full-project proposal in line with the suggestions of the 27'' ITTO Expert Panel,and also to assist the selection of the most appropriate Timber Permit holder for the Wipim-Tapilaconcession area.

On behalf of the PNG Forest Authority, I am pleased to submitthe Final Technical Report forthe MFMApre-project. This document will stand alongside our full-project submission to establish a model TimberPermit operation that demonstrates sustained socio-economic benefits at local, provincial and nationallevels

Mr. Dike Kari OBE, MLActing Managing Director

PNG Forest Authoity

PPD 2199 Rev. I (F)- Final Technical Report Page it

Table of Contents

I. OUTLINE OF SFM PLANNING FRAMEWORK. .........................................,........................................... I

AB STMCT .................................................................................................................................................. II . I

INTRODUCTION ........................................................................................................................................... I1.2

I .3 PLANNING FRAMEWORK. ............................................................................................................................ ISFMPlo"rimg Matrix.I. 3. I ...............................................................................................

sFMM, d, / p, ey;,, t L, ,, tj, ,..........................................-------. .....""""""""""""""""' """"""""' ''13.2

1.33 SFMModel Prey:ect G"ideli"co. ...........................................................................---------------------....... ''one/"sio"s. ...................................................................,................................................................. 2 O13.4

Recommendations ............................................................................................................................ 2 O13.5

2. OUTLINE OF PROJECT FEASIBILITY AND BUSINESS STRATEGY. ............................................. 22

ABSTRACT ...................,............................................................................................................................ 222. I2.2 INTRODUCTION ......................................................................................................................................... 22

PROJECT FEASIBILITY AND BUSINESS STMTEGY ..................................................................................... 222.3

2.31 Selecting a SFMMode! Prqjectrlrea .............................................................................................. 232.32 Assessing \ipim-Top^^o Forest Resources. ..................................................................................... 24

O"dining a Business Strategy/br \ipim-Top^^@............................................................................. 252.33

Cone!"store ....................................................................................................................................... 2 72.34

2.35 Recommendations ....................,....................................................................................................... 2 7.

3. OUTLINE OF COMMERCIAL ARRANGEMENT FOR PROPOSED MFMA. ................................... 28

AB STMCT .....................................................,.......................................................................................... 2 83 . I

3 .2 INTRODUCTION ......................................................................................................................................... 2 83.3 COMMERCIAL ARRANGEMENTS FORTHE WIPIM-TAPILAMFMA ............................................................ 28

3. 3. I Arrangements/br Harvesti"g Timber gridNon-Timber Products ................................................... 293.32 firra"geme"tsjbr Processing grid Markeii"g Timber gridNo"-Timber Products. .......................... 3033.3 one/"SIon ....................................................................................................................................... 3 O

Rec ommendatio"s ............................................................................................................................ 3 O33.4

4. OUTLINE OF TRAINING PROGRAMME. .............................................................................................. 32

AB STMCT ................................................................................................................................................ 3 24. I

INTRODUCTION ......................................................................................................................................... 3 24.2

4.3 CAPACITY BUILDING PROGRAMME .......................................................................................................... 324. 3. I Capacity Development Matrix. ........................................................................................................ 324.32 onomsio"s. ..................................................................................................................................... 3 6

Recommendations ............................................................................................................................ 3 643.3\

5. OUTLINE OF RESEARCH PROGRAMME. ............................................................................................ 37

AB STMCT ................................................................................................,............................................... 3 75. I

5 .2 INTRODUCTION .........................................................,............................................................................... 3 75 .3 RESEARCH PROGRAMME .........................................................................................,................................ 3 7

53.1 Research Areas ................................................................................................................................ 3 7Research Planning Matrix ............................................................................................................... 395.32

oncl"sions. ..................................................................................................................................... 4053.3

5. 3. 4 Recommendations ............................................................................................................................ 40

6. ANNEXES ...................................................................................................................................................... 41

6. I SELECTION CRITERIA FOR MODEL PROJECT AREA ................................,.................................................. 416.2 DRAFT LAND-USE MAP FOR WIPiM-TAPILA MODEL PROJECT ................................................................. 426.3 MODELPROJECT CRITERIA AND FINDINGS FOR WIPiM-TAPILAFMA AREA. ........................................... 436 . 4 OBJECTIVE TREE ...................................................................................................................................... 44

7. REFERENCES .............................................................................................................................................. 45

PPD 2199 Rev. I(F)- F1halTechnicalReport Page iii

I.

I .,

OUTLINE OF SFM PLANNING FRAMEWORK

This is the first of five technical reports, which together form the basis for the formulation of a FullProject Proposal to establish a MFMA in PNG. Activities relate to Output I of the Pre ProjectDocument. Activities were undertaken by 2 teams of consultants during the years 2003 and 2006,resulting in an accepted Planning Framework forthe MFMA project.

During 2003, the National Forest Board endorsed the selection of the Wipim-Tapila FMA area as theModel Project Location. The selection process was undertaken with reference to 15 criteria usingoffice records and on-site data verification. During 2006, a Planning Matrix was prepared withreference to ITTO Criteria and Indicators. This revealed a variety of constraints affecting theimplementation of National Forest Policy objectives and strategies. In particular it was rioted that lawsand regulations needed to be reviewed I updated; that SFM tools, processes, guidelines andprocedures needed to be enhanced; and that landowner decision making capacity neededstrengthening. Constraints I corrective actions were highlighted that lay within the scope of the MFMAproject. During the same period, the PNGFA prepared a set of Model Project Guidelines forthe Wipim-Tapila FMA area in consultation with the PFMC for Western Province.

Abstract

This report concludes that the Planning Framework provides a solid foundation for the establishmentof a MFMA at Wipim-Tapila. Recommendations are listed to assist the project consultants formulate aFull Project Proposal that provides national, provincial and local level benefits, and to assist thePNGFA negotiate and sign an appropriate Model Project Agreement with the selected industry partnerpriorto project commencement.

I .2

This is the first offive technical reports and relates to Output I of the Pre Project Document, namely:

. Forest Management Plan and ITTO Project Proposal

Output I activities were designed to outline an appropriate Planning Framework for a MFMA in PNG.This report lays the foundations for the formulation of a Full Project Proposal to establish a MFMA atWipim-Tapila in Western Province. Reports 2 to 5 will provide a more detailed outline of the requiredcommercial, training and research inputs.

Output I activities were undertaken by 2 teams of consultants: J. Belford and T. Walega (from Januaryto October 2003) and S. Rollinson and M. Hasagama (from September to November 2006). Bothteams used a consultative approach to ensure outputs were designed and/or accepted by keystakeholders. Forest resource allocation was carried out in consultation with the National Forest

Board. The Planning Framework was aligned with the National Forest Policy (1991) and ITTO Criteriaand Indicators. The planned fact-finding mission to Sarawak, Indonesia was not undertaken.

Introduction

I .3

The Planning Framework for a Model Forest Management Area comprises 3 elements. These are the:

. SFM Planning Matrix

. SFM ModelProject Location

. SFM ModelProject Guidelines

Sub-sections 3.1 to 3.3 present the framework data that was collected, interpreted and analysed bythe project consultants. Sub-sections 3.4 to 3.6 presentthe authors' conclusions & recommendationsregarding the establishment of the model project at the Wipim-Tapila FMA area. Supplementaryinformation is included in the annex section.

Planning Framework

PPD 2199 Rev. I (F)- Final Technical Report Page I of 45

73.1 SFMPlanningMatrix

The table below presents a Planning Matrix designed to assist the formulation of SFM plans with reference to ITTO Criteria and Indicators. Information oncurrent SFM status, proposed corrective actions and responsibilities was sourced from PNG Forest Authority (2002; 2003-,; 2003-2), as well as through theauthors' meetings with NFS staff and DEC staff, provincial government and landowner representatives.

The SFM Planning Matrix will enable the PNGFA to better focus on the missing elements for fostering SFM within PNG, as well as to improve overallcoordination and monitoring of SFM operations and interventions. In particular, the SFM Planning Matrix will assist the establishment of a MFMA in PNG andits promotion to the international community.

Table ,: SFM Planning Matrix for PNG (constraints I corrective actions are highlighted that lie within the scope of the MFMA project)CRl

I ieao

I. , - Existence of a framework

of laws, policies andregulations

10N

,

- ; Co--', o

reset, S ' U' baa"'

. PNG is committed to SFM

through its constitution,policies, laws and regulations(forestry, environment &conservation, health & safety,employment, land tenure,landowner & provincialparticipation)

. There are also draft eco-

forestry, downstreamprocessing and reforestationsub-policies in place

S

I

b S e

-- -^

n

.

o

.

PPD 2199 Rev. I(F)- Final Technical Report

o

.

o

o

S

e

e

9

o -se -*. o e

e -a 01

. ReviewForestiyActrequirements for grantingTPs and TAs and update asappropriate to improveimplementation, monitoring,control and landowner

participation (in with InOcriteria and National Forest

Policy). ReviewEnvironment

Protection Actrequirementsfor forestry operations andupdate as appropriate toimprove implementation,monitoring and assessment

. Finaliseand endorseeco-

forestry, downstreamprocessing and reforestationsub-policies and put in placesupporting laws andregulations

. Reviewand update ILGlegislation as appropriate toimprove landownerorganization/representation(refer indicator 1.8)

, , ,".*

,t!!,4*;:.... *

-^v . Ies -

. PNG Forest Authority

. Department of Environment &Conservation

. Department of Health

. Department of Labour&Employment

. Department of Lands &Physical Planning

.

Page 2 of 45

G I -'-@

n' caO

,. 2 - AmountofinvestmenUre-investment in forest

management, administration,research and human resource

development

\

,. 3 - Existence of economic

instruments and other

incentives to encouragesustainable forest

management.

:* ;^.iai^*. 2002: Us$7,754,020 (annual

investment)

. 2002: Us$6,756,471(annualre-investment)

*

1.4 - Number and adequacy ofinstitutions to supportsustainable forest

management

. Export duty exemptions Ireductions on processedwood products, plantationlogs, capital equipment inplace

. Flexible depreciation ofcapital assets allowed

a age en

"01S . In

. e

~\

o

e

. Governmental institutions

provide forest regulation/administration/marketing/research, environment &conservation, and forestrytraining services

. Private sectororganizationsprovide operational & logexport monitoring services

. Domestic & international

NGOs provide advocacy,awareness and communityforestry training services

1.5 - Number and adequacy oftrained professionalItechnicalstaff at alllevels to pertormand supportmanagementimplementation, research andextension

.,., ,

** .,.*A A ,I . *;i\,;*;,'~

.

-.\

S

e

^P^

.

.

,. .


S

,

o

a: a

e

C

.

. Approximately 70% ofPNGFA staff are educated to

degree or diploma level. Management staffusually

have technical- not

management- qualifications

a

*e^*

SII I

o

Gin

.

o @

o-e- o

e

e

.

.*

e .o SI-.

a

S

. Department of NationalPlanning & Monitoring


. Department Environment &Conservation

. Current NFS Coinorate Plannot yet finalized

. Negotiate tradeanddevelopment agreements forSFM products with tradingpartners

\

e

o

, '*~ .. ..,, .,.

.11^ , .,"*. I",,', .*' ' '

.. *';;**.as*'.;*f, .,***.,., *

.

.

Go


. Department of Labour

. Department of Foreign Affairsand Trade

. Investment Promotion

Authority. Internal Revenue Commission

S

. Finalise NFS Corporate Planto improve implementation offorest policy, monitoring offorestry operations andproactive research

Is

C

e

I e

. PNG Forest Authorlty


. PNG Forest Industries

Association

. Societe Generale de

Surveillance, Switzerland

. PNG ECO Forestry Forum

. . PNG Forest Authority


. Commission of HigherInstitutions

Page 3 of 45

?6 ERO

re

,. 5 - continued

*

il's'bl"!^:,'dittoh$^it^^5 "'\a,>. I'*,' ~ ';,,.

, .."'******

1.6 - Existence and applicationof appropriate technology,tools and processes topractice sustainable forestmanagement and the efficientprocessing and utilization offorest produce

*, pres'

. Management and technicalstaff usually have limitedexpertise in latest SFMprocesses and techniques

1.7 - Capacity andmechanisms for planningsustainable forest

management and forperiodical monitoring,evaluation and feedback on

progress

. Most harvesting operationsutilize high cost conventionallogging technology

. Most downstream operations(predominantly sawn timber,plywood, veneer andwoodchips) utilize high costtechnology

. ECo-forestry, sawmilling andFSC certification training &support services available forsmall scale operations

a age

o , s n

a- aes

. Forestry Actrequires national,provindalforest plans andoperational plans forTPs

. Environment Actrequires theprotection of bio-diversity

. Resource inventory I mappingdatabases (F1MS, PNGRIS)

. Tree growth & yielddatabases I models

(PERSYST/ PINFORM)

.^.

.

*-*;F{;AIF!,+.. t. **,

e

o

~ '.',,,"~I*,,,,*.*;"

-,* ,*., I, \*

I~'\

e

e

REgPd^d, .

Ited

.

S

o

* ~


r

t- o

a

ec

@t

anal"

. TAs do notrequiremanagement and operationalplans (refer 44)

. Ad hoc evaluation andfeedback

.

.

G

.

es o

. Department of PersonnelManagement

"',\:*~'>.,,..*: ,";.,, * - J"'I. ,4t~ *I. ,4. - ~

.

b'Ii

.

.:*****, ...,,..,. .,

31*lit:, ... " xi

.

. Review National Forest Plan

and National ForestryDevelopment Guidelines andup date as appropriate (in linewith ITFO Criteria and

National Forest Policy)

. Review and update PNGResource Inventory ActionPlan as appropriate (in linewith ITFO Criteria and

National Forest Policy)

. Review and update ForestryAct requirements forTAs


. PNG University of Technology

. Timber & Forestry TrainingCollege

. NGOs

e

.

.

o I

o

a o

o



.

e

.

Page 4 of 45

^!ON*,,;^'rinbj^Goditio on .ica'for"****t':-'*'**;*' *. ~ .'

1.7 - continued

1.8 - Degree of publicparticipation in forestmanagement, such as inplanning, decision making,data collection, monitoringand assessment

ee

,

s- ,a-',.

. The Forestry ActrequiresProvincial Forest

Management Committees toparticipate in provincial forestplanning, resource allocation,monitoring and assessment

1.9 - Adequacy and timelinessof information to increase

public awareness aboutforestpolicies, legislation and SFMpractices

S ^1''1^'^^<4^.,- ,,g, ,:!it,. I :

..^..

.P

. Domestic & international

NGOs provide regularadvocacy, awarenessservices

. Forest Industries Association

provides regular newsbulletins and updates oncurrenttopics

. PNGFA provides an irregularnewsletter and updates oncurrenttopics

o

esou

en

21

, . .

nci

e

e@

e

,*'f

.-~\

po

^. .

.

e

','S . '.

.

o .e

nZ

o

e


. Identify and address factorsaffeding capacity ofProvincial Forest

Management Committees toservice the requirements ofNational Forest Policy andForestry Act

. Review and update ILGlegislation as appropriate toimprove landownerorganization andrepresentation (refer indicator1.0

. s to

co s

. .

es--o s' ili

e

- ,.;*

.

it


. Provincial Governments

. Provincial Forest

Management Committees

.

,,

.



. PNG Forest Industries

Association

. PNG ECO Forestry Forum

Page 5 of 45

;;eRi;j^'11^i65:^I"h, .;t**V*h* *

2. , - Extent(area) andpercentage of total land undernatural forest, plantations,permanentforest estate, andcomprehensive integratedland-use plans

aI . .

-S

*

to -re . eso, re

eseS

,

Estimates sourced from National

Forest Plan (1996):. Total Forest Area: = 46x, O ha

. Natural Prod. Forest:

11.9xlO' ha (26%). Planted Production Forest

50xj03 ha (o. 1%). Protection Forest: 1.7xlO ha

(3.7%). Reserve Forest 25.7xlO ha

(56%)

' Other 6.7xiO' ha 04.6%)

2.2 - Extent(area) andpercentage of land under eachforest type

",*I

S

2.3 - Length and percentage ofexternal boundaries of the

permanentforestestatedemarcated or clearly defined

***\*,*. * ;* *, ,**'.

2.4 - Area of permanentforestestate converted to permanentnori-forest use

,. $00nS '

2.5 - Existence of proceduresto control encroachment, fire,grazing and illegalexploitation offorests

.

. Data available from F1MS

ou

.D

e

p n

e

^


,.-\


. Forestry Regulationscontrolencroachment

. DraftRuralFiie Regulations(2003) control fire

. Forestry ActauthorizesPNGFA to seize illegalIyobtained forest products

.

.,.

s - 6'0 ecti" IC


*,

.

S

I' .re

A*:, t'

'6'

@

~*

.*,

.,

,I

4

Ie

. DraftRuralFire Regulationsriot yet endorsed anddistrlbuted

- uti n


.e

.I

. Finalise and endorse Rural

Fire Regulations (2003) fordistribution


Page 6 of 45

,.,*forI

*Indicat

3.1+2 - Within the permanentforest estate, the extent andnature of all inari made andnatural disturbances

oes cos

,~

3.3+4 - Existence and

implementation of quarantineand phytosanitary proceduresto preventthe introduction ofpests, diseases andpotentially harmful exoticplant and animalspecies

e -e fh -d@analjj!^*',',esen S' us


,

3.5 - Availability andimplementation of procedurescovering use of chemicals inforest, and fire management

,.';* \,:it.

. National AgriculturalQuarantine & Inspection Actand Regulations

* rER*

--Sre

I aOr

4. , - Extent and percentage offorest for which inventoryand survey procedures havebeen used to define quantityofforest products andresource rights andownership

.

o

.

. Procedures for managingtoxic waste included in

Logging Code of Practice(1996)

. DraftRuralFi, e Regulations(2003)

.

.

F. o

.^

e

. .I

I~\

oe

o

. National AgriculturalQuarantine & Inspection Actand Regulations have notbeen reviewed

-*,.. .-

- ".'I, r. .*: '

rel^OSee

e

o C

esen U

. The Forestry Actrequiredresource inventory andownership procedures to beundertaken before a TP is

granted

.


...

. Logging Code of Practice hasriot been reviewed

. Rural Fire Regulations not yetfinalised

,*t

ecti',~* .

.

.^

"*"

,

. Reviewand update NationalAgricultural Quarantine &Inspection Act andRegulations as required

,

a

o


G- s

.

In

. Review and update LoggingCode of Practice as required

. Finalise and endorse Rural

Fire Regulations (2003) fordistribution

. a

. Resource inventory andownership procedures are riotspecified for TAs

.4

. National AgriculturalQuarantine & InspectionAuthority

\

,,...

, .,"-,.

^^

e

^*rgposed^,^' e

"..

.


,,

.

. Review and update ForestryAct requirements forTAs

*" ..~

i.


e

o

,

Page 7 of 45

*., I E O:

I I-ao

4.2 - Estimate of level of

sustainable harvest for eachwood and nori. wood forest

productforeach forest type

Fo ~ F '*' -d~"",,;3"

4.3 - Quantity (volume) ofwood and important nori-wood forest productsharvested foreach forest type

*.Presetj:I^. t's. 441. ;\**-,

4.4 - Existence and

implementation offorestmanagement and operationalplans

I'

. Round logs:4.7xlO in31year

. Eaglewood: 5,000 kg lyear

. Sandalwood: 50,000 kg/year

,.

. Round logs: 2.4xlO in312002

. Eaglewood: 4,000 kg 12002

. Sandalwood: 54,000 kg/2002

. The Forestry Act(7990requires TP holders toprepare 5 year managementplans and annual operationalplans (refer indicator 1.0

. PNGLogging CodeofPractice (7996) provides keystandards and operatingpractices for selectivelogging operations

. Planning, Monitoring andControlProcedures for

Natural Forest LoggingOperations under TimberPermit(7995) providesoperational procedures forTP operations

o

. Allowable cutstatementis

over simplified

*, -

4.5 - Extent and percentage ofproduction forest covered bymanagement plans andcoupes harvested accordingto operational plans

. Round log dataonlyavailable from TPs

,.* ~. ,,....~~

,-\

*,.' \. *i;^a^e,sed Cor. Gt

. Management andoperationalplans riotrequired for TAs

. Developcost-effectiveprocedures for determiningallowable cut and updateNational Forest Policy andForestry Actaccordingly


.

. TP and TA data availablefrom F1MS

. Developcost-effectiveprocedures for collectingadequate harvest quantitydata for wood and importantnon-wood forest products

@e

e

o

. .

.

e

,

.

. D

tl


'*.,*. I.

,**\.**:'co SI. Ie It, I*,

g

o @

s -@

. Production forest data is riot

required for smalleroperations than TAs


.

.


. Department of Environment& Conservation

. Finalise and endorseeco-

forestry sub-policy and putinplace supporting laws andregulations (refer 1.0 to costeffectiveIy control small scaleforestry operations


Page 8 of 45

g^'* Rin 144*;î^ôres I^^VCIn, caO '

4.6 - Existence of long-termprojections, strategies andplans for production,including the use of treeplantations

..

4.7 - Availability of historicalrecords on the extent, natureand management offorests

%

4.8 - Availability andimplementation ofmanagement guidelines foreach of the main wood and

nori-wood forest products -tocover assessment of natural

regeneration and measures tosupplement naturalregeneration

;^gelên s

~,,

. Inadequate projections,plans and strategies

4.9 - Availability andimplementation of proceduresto monitorand reviewthe

management guidelines

. Inadequate historical records

. Inadequate managementguidelines

4.10 - Availability andimplementation of guidelinesfor reducedflow impactlogging to minimize damageto residual stand

@0's-,',.

. Identify constraints

,,.*;..

.,

_**;,,,~

. -,..~ ,

. Inadequate procedures toreview managementguidelines

.--\

?Prop -

. PNGLoggingCodeofPractice (7996) provides keystandards and operatingpractices for selectivelogging operations

. Proposecosteffective


, .

d C-

corrective actions

"

Go

"

.

*y. .. #,*y. .', ~-, . ,

* .:*,*,.'

,- R s--nsible'S


f

t

.

o


Page 9 of 45

j^ITER1@. I^. 4**^F.,\^ ,,..,*Indicator ,,,,,;,' 4.1;.*,"

4. ,, - Availability andimplementation of proceduresfor comprehensive evaluationof implementation ofmanagement guidelines, forassessment of residual

damage and foreffectivenessof post-harvest regeneration

4.12 - Percentage of areaharvested for which

management guidelines havebeen completely implementedand post harvest surveysconducted to assess

regeneration

O. 'G

Pe e-

,

,

. Permanentsample plotsareestablished and monitored

to assess and predict postharvest growth and yieldwithin Timber Permit areas

^,^,^^n icato

5. , - Statistics of protectedareas in each forest type

\. .

,t

. 122 PSPsestablished in

logged over areas. 104 PSPs stillaccessible

4^ . .

"0, ,'Int*?:;***"*

* *i' ,*;.;*~, * "

.

10 O

a

@

trese

. 56 Protected Areas gazettedthroughoutthe country, ofwhich 48% are Wildlife

Management Areas myMA);27% are National Parks; 9%are Wildlife Sanctuaries; 16%others (Conservation Areas,and other protected areas)

. Most of the WMAs are results

of NGO's work

e

e

,.

I~\

e

@

.


~*,,

,'0. eC I

,

,..

- n t

. Protected Areas are not

classified according to foresttypes

, ' ,*,... '

:

,.

.

*"~~"'**~, v"'*\,*,*

,,,. I, ,:t \**.

* listitUtion

\..

o


. Limited government fundingresulting in lack ofmaintenance and

deteriorating of many stateowned Parks & Wildlifesanctuaries

es ons

se- ,ec

. Rehabilitation of major Parks& Wildlife Sanctuaries in the

country (NEC Decision No.'26/05)

- .J

.

.

.

*

stiu o

. DEC

. PNGFA

. Department of Mining


..

~ ...

e -o

e

Page 10 of 45

,.,*,,**:*":'Pri. ci e5 .A.<.-'".=:,^

*. In, - 'ca o

5.2 - Percentage of totalnumber of protected areasconnected by biologicalcorridors or "steppingstories"

~ viae O BIOog'co ,'Ve ;$*';:'*,

5.3 - Existence and

implementation of proceduresto identify endangered, rareand threatened species offorest flora and tsuna

' re

,..

. Database available at DEC,Parks & Wildlife Branch

. Currently 5% of total forestarea under Protected Areas

S

5.4 - Number of endangered,rare and threatened forest.

dependentspecies

S

, *, -.\,'*-" :,'1.1*,". *

,

..

5.5 - Percentage of originalrange occupied by selectedendangered, rare andthreatened species

,~ ,.,

. WMAAct

. Conservation Area Act

. Forestry Act

. Mining Act

., ,

'. us

. Lack of policy framework andcollaborations between

respective institutions

. Lack of government funding

5.6 - Existence and

implementation of a strategyform situ andlorex situconservation of the geneticvariation within commercial,endangered, rare andthreatened species offorestflora and fauna

. Fauna and Flora listed underConservation International

Trade Endanger Species(CITES)

. Database with DEC, Wildlife& Enforcement Branch

,,,

\

,-~

. Inadequate informationavailable

. Lack of cohesion betweendifferent Acts

. Slow process of review on thestatus of differentfauna andflora

- - OSe - C - -rect'.

. By 2010 10% of the forestareas to come under

Protected Areas

. Development of Policyframework on National

Biodiversity Strategy andAction Plan (NBSAP) underConvention of Biodiversity(CBD)

. Being developed byConservation Division of DECand PNG Institute of

Biodiversity


.*....~

. Poor communication and

information sharing betweenDEC and the outside world

. Irisuffident database ofthreaten fauna and flora to benominates for CITES listing

f'*

*:.*.,;*,V, ~,* ."~

ctio

. Inadequate informationavailable

. DEC developing new strategicdirections towards stream

lining environmentalprotection through cross-sectors approach

.

S

. DEC

. PNGFA

. Department of Mining


. Lack offunding, training andskilled manpower

10n

. Review of International Trade

Act(Fauna and Flora)

. Review and update list offauna and flora under threat

so,

-e

. History of the protected areas

. Archives of the protectedareas

. DEC

. PNGFA

.,

. National Biodiversity Strategyand Adjon Plan policyframework currently in theprocess of being approved byParliament

. Promoteresearch

development through Lack ofgovernment funding

. DEC

. DEC

. DEC

. PNG Institute of Biodiversity

Page 11 of 45

*'%.*\\,Pri a I

4.91!jCa ,5.7 - Existence and

implementation ofmanagement guidelines tokeep undisturbed,representative orspecial partsof each production forest

,

te a o '66^%^;'**;:*--r en, .t^. fuS' '<*, I*

5.8 - Existence and

implementation of proceduresfor assessing changes ofbiological diversity of theproduction forests, comparedwith areas in the same forest

type keptfree from humanintervention

. Inadequate

. Inadequate

S

.

t

a,-

,.-.

e

*,,*

.

ropo

. .$*",--. :*. ..,::"" ~,

sed ,^^t;ati


@

. Under MDG7, avoideddeforestation and carbon

trading has now fosteredgood working relationshipbetween DEC and PNGFA

towards achieving suchtargets

EQ

01

Is- Ij

. DEC

. PNGFA

- - hsib' ~ 4.4:***,,

o

a

.

e

. DEC

. PNGFA

**

Page 12 of 45

. .

^..

*!94, !^;to6.1 - Extent and percentage oftotal forest area managedprimarily forthe protection ofsoiland water

06

6.2 - Extent and percentage ofarea to be harvested for whichoff-site catchment values havebeen defined, documentedand protected beforeharvesting

of ate ' t*'44-,-,*. ."

a^^^i$$

6.3 - Extent and percentage ofarea to be harvested whichhas been defined as

environmentally sensitive andprotected before harvesting

. PNGLoggingCodeofPractice (7996) provides soiland water managementstandards and operatingpractices for selectivelogging operations

6.4 - Extent and percentage ofarea to be harvested for which

drainage systems have beendemarcated or clearly definedand protected beforeharvesting

6.5 - Percentage of length ofedges of watercourses,waterbodies, mangroves andother wetlands protected byadequate buffer strips

*

o trait

.

6.6 - Existence and

implementation of proceduresto identify and demarcatesensitive areas forthe

protection of soil and water

..J

.-\

***\*,.!

' @p se Co ,ec w

.


*

e

@

I

t ti-, Re


, *'.

I *,,

-on'-I ~

I. , . *.*J\ ,,.

, ,J

Page 13 of 45

0-1

n-I aO

,

J I *

6.7 - Availability andimplementation of guidelinesfor forest road layout,including drainagerequirements andconservation buffer stripsalong streams and rivers

~

--**;shi add\,!at^it. -.A***t*At".**',*,

**

6.8 - Availability andimplementation of harvestingprocedures to protect soilfrom compaction and erosion

'-,**~"' , I, -,. It;t' ' t, ,*i;

*P, ese S

6.9 - Existence and

implementation of proceduresassessing changes in thewater quality of streamemerging from productionforests, compared with areasin the same forest type keptfree from human intervention

. PNGLoggingCodeofPractice (7996) provides soiland water managementstandards and operatingpractices for selectivelogging operations

t

OR

I'n -iea o

7. , -Value and percentagecontribution of the forestrysectorto GDP

,, .

@

ons

.

~.*

nt

Gorier^'6>'. cola

7.2 - Quantity (volume) andvalue of wood and nori. wood

forest products traded in bothdomestic and overseas

markets

*;*%,"..*

,"

,

I.

'*~'

-- c, tu

resen

,

' The PNGFA has recently submitted a fullproject proposal to InO titled Enhancing Forest LawEnforcementin PNG' The 4, ''1TTC has recently approved for immediate funding a full project proposaltitled Enhancing PNG^ Timber Market!ing Infonnation System

. usD 334 in (30.9%)/2001

P o o

.

tv

t


*{

,,

Overseas markets I 2002:

. Round logs: UsD 80m (,. 8min3)

. Sawn timber: UsD 3m

000,000m3)

G

^, ,J ,

,o s -

. Market access to Europe,Australia and N. Americas is

being adversely affected byconcerns about weak forest

law enforcement in PNG


.,

. Domestic sales data not

available

ponsiB!*

*,,*~.,. t*'*.~;-:* .;$.,,*,.,, .* I

,*

tlOSe- to c e

. Develop a cost-effectiveforest law enforcement

regime

. PNGFA is establishing aTimber MklS which will be

able to report on domesticand overseas sales

e -IbeI



,

Page 14 of 45

$61^ITE^I^^*". Ebb^'*'-" beiai^*"\*

7.3 - Quantity (volume) andvalue of wood and nori-wood

forest products forsubsistence use, includingfuelwood

*,

7.4 - Ratio of domestic logproduction to the processingcapacity of wood basedindustries

se.~.

,- ^.

. Sandalwood: UsD 100,000(, 3,000kg)

. Eaglewood: UsD 600,000(5000kg)

Iu

\-

7.5 - Efficiency of utilization interms of the percentage offelled volume processed

s- ets,

. Data riotavailable

7.6 . Existence and

implementation ofmechanisms forthe effectivedistribution of incentives and

the fair and equitable sharingof costs and benefits amongthe parties involved

,i=

I'~~.;' ... -#tilia*""tie*%;**I:,*:

,,., s rangi;;;,,*:***,*,*

7.7 - Existence and

implementation of proceduresto ensure the health and

safety offorestworkers

7.8 - Employment in theforestry sector

. Identify constraints

. Government:log exporttax

. PNGFA:reforestation Iew

. Resource owners: 10 PGK/

in3 + other levies & premiums

\'-"*: ,

. PNGLoggingCodeofPractice (7996) provideshealth & safety standards andpractices for selective loggingoperations

-po


C

***"

ec:y c

. Proposecosteffectivecorrective actions

. Approx. 7-, 0,000 I 2002

. Detailed employment data notavailable

. Currentrevenue generationand distribution mechanisms

have riot been adequatelyreviewed

A\".

SIt!!!!; .Re -0- .e.* , A

~" ~

~,. ,",... 11

" Jing. ."\ "

.y*

.

e

I

Identify:. Datacollectionneeds

. Employment constraints


. Review and update revenuegeneration and distributionmechanisms

.

Propose cost effective correctiveactions that:

. Enhance datacolleclion/

analysis

. Enhanceemploymentopportunities



. Department of Labour&Employment

Page 15 of 45

.-*'." .,.*.:** ,

*It, *~t*':**: .

.,' ,, I. ,,. 44*,

7.9 - Number and extent of

forest sites available primarilyfor research, education, localcommunities and recreation

coo

7.10+,, - Number of peopledependent on the forest forsubsistence uses and

traditional and cultural

lifestyles. Area offorestupon which these people aredependant

C e t

ese

. Data riot available

7.12 - Number of visitors to

forest for recreational

purposes

pee

. Approx4xi0' (80% ofpopulation)

"- "

7.13 -Total amount of carbonstored in forest stands

~",*,"'.,,~'

****,*,.

~** ' to s rel-


. Forest availability constraints

. Data riot available

7.14 - Number of importantarchaeological and culturalsites identified, mapped andprotected


. Subsistence, traditional,cultural constraints

. Data riotavailable

. ,**,..@ use Go-red've

*..


. Enhancedatacolleclion/

analysis

. Enhanceforestavailability

Identify,. Datacolleclionneeds

. Recreational constraints


. Data notavailable

,


. Enhancedatacolledion/

analysis. Maintain/enhance

subsistence, traditional,cultural uses

eti6n


. Carbonstorageconstraints

,'* ,.,.

$ti -ti. n



. Enhancedata collection/

analysis. Enhancerecreation

opportunities

Identify:. Datacolleclionneeds

. Archaeological&culturalconstraints

es-- s - e

. Department of CommunityDevelopment


. Enhancedatacolleclion/

analysis

. Enhancecarbonstorageopportunities

. Tourism Promotion Authority


. Enhance datacollection/

analysis

. Enhancearchaeological&cultural opportunities


. National Museum

Page 16 of 45

^I^@.A t

indie o

7.15 - Extentto which tenure

and userrights overthe forestare documented and

recognised

E

7.6 - Extenttowhich forest

planning and managementpractices and processesconsider legal orcustomaryrights

o"':*

SGI'

I

d^^^I^^prese: .

\,\.

. Incorporated Land Group Actprovides the mechanisms forrecognising and documentingcustomary tenure

. Incorporated Land Groupsprovide the basis forlandowners to enter into

Forest ManagementAgreements with the state forthe allocation of Timber

Permits, as well as WildlifeManagement Areas andConservation and Reserves

7.17 - Extent of participationby forest resource owners inforest-based economic

activities

, .

.**. ~

r, .., .

7.8 - Number of agreementsinvolving local communities inco-managementresponsibilities

,

.

. Landowner Company (LOC)mechanism in place to enableforest resource owners to

manage finances andencourage communitydevelopment activities

. With assistance from EU, thePNGFA has recentlyestablished a public TimberMklS to assist and promoteSFM operations

*, ~*f. *,'*..' ',," , *. t'

A "

o -use AGO . ec~*".. ..

. Currently nil

. Review and update ILGlegislation as appropriate toimprove landownerorganization andrepresentation (refer indicator1.0

.


.

i -10,

. , V

.

f

e

e

stit t'-

. Department of Lands &Physical Planning

ee

. Review LOC mechanism and

identify steps I options forimproving performance

.

s - e

~..

*,

,

.

I... ~


P

Page 17 of 45

13.2 SFMModelPro/'ectLocation

During 2003, 14 criteria were identified to selectthe most appropriate MFMA available within PNG. ThreeFMA areas were short-listed for evaluation: Josephstaal, Wipim-Tapila and Cloudy Bay'. Wipim-Tapila wasranked highest. Subsequent field trips confirmed that the proposed site fully satisfied each selection criterion.In 2003, a recommendation was made to the National Forest Board and Wipim Tapila was endorsed as theModel Forest Management Area for PNG.

Table 2 outlines the selection criteria and findings for Wipim-Tapila. Selection criteria descriptions areincluded in Annex 4.1 (page 22).

Table 2: Model pro^Ct selection criteria and findjn s forWi jin-Ta ila FMA areaS o1-

I. Access

21nfrastructure

31ncorporated LandownerEntity/Entities

4. Availability of the FMA

5. Resource Data

. Available by air and sea (coastal shipping).

. Roading has high Provincial Government priority.

6. Biodiversity value:

7. Local, Provincial andNational Level support

. Shipping services may be established on scheduled basis.

. Wipim is being developed as the new District Headquarters.

8. Agricultural potential andadequate workforce

. Two stable and well organized resource owner Companies have been established.

. Both companies wish to develop national enterprises in the area

9. Opportunities forIntegrated Activity:

. FMA is completed, approved by Minister, and available for allocation.

. Data available for forest resources, biodiversity and agriculture

10. Research:

. High levels of biodiversity significance in fauna (including migratory and protected birdspecies), and flora.

11. Existing Land ResourceDatabase

. High support levels and long range planning for Provincial development.

\

. An existing, dormant agricultural base available for renewal.

. Other significant new potential, with adequate and rural orientated workforce

12. Broad resource area

location:

"

. Multiple opportunities for enabling integrated activity for rural population lifestyleimprovement, e. g. timber operations, minorforest products, agricultural products andeco-tourism.

13. Minor forest products:

. Significant research interest in forest genetics, scientific and social research ofinterest to national and international agencies.

14. General risk:

. Existing information to be interpreted and applied.

. The area lies in Western Province, which has the largest remaining forest resourcearea in PNG, and is in a border area or some sensitivity which warrants specialsignificance.

. For several years resource owners have engaged in seed collection and sale.

. Other minorforest products are also presentfor development at the community level.

. The area is considered to have relatively low general risk, and new operations mayqualify for special tax considerations.

' The Pre-Project Document proposed 4 different FMAs, which have riot yet reached the allocation stage

PPD 2199 Rev. I(F)- F1hal Technical Report Page 18 of 45

73.3 SFMModelProject Guidefines

During 2006, the PNGFA prepared the Project Guidelines for the Wipim-Tapila MFMA in consultation withWipim-Tapila landowner representatives and the PFMC for Western Province. This important planningdocument outlines the MFMA parameters and objectives, and forms an important component of the TimberPermit allocation process as defined in the PNG Forestry Act.

The table below provides some background information on the Wipim-Tapila FMA area, sourced from theModel Project Guidelines. A draft land-use map prepared during the project verification process (refersection 3.2) is included in Annex 42 (page 23).

Table 2: Back round information included in the Pro^Ct Guidelines forWiim-Ta to MFMA

Pro ee

I. Project location

2. Climate

3. Vegetation

Des I

. The Forest Area is located in the Western Province of Papua NewGuinea, just above the northern tip of Australia,

4. Project development concept

. Generally sub-humid tropical with annual rainfallranging from 1500-2000 min. with a clear distinction between the wet and dry seasons.. During the wet season, most low tying areas are inundated and duringthe dry, forest fires can be prevalent.

. The forest structure generally consists of lowland forest, savanna andswamp forests within the wet belt and mix swamp and deciduous monsoonforest in the southern dry belt.. Some of the mixed commercial-hardwood species found include: Acaciainarigium, Calophyllum spp; Firndersia spp, 'Intsia bjuga, Pometia pinnata, 'Pterocaipus indibus, vat^^a papuana, ' andXanthostenron brassii

5. Modelforest objectives

\

. To be developed as a modelforestry project, giving due consideration tomultiple forest values and appropriate land-use systems including areasallocated for permanent natural forest production, community forestry,biodiversity conservation and water catchment.

. Certification of the Forest Area through a credible and internationallyrecognized certification mechanism such as the Forest Stewardship Council(FSC) is a key project objective.

. Contribute to the process of sustainable forest managementthrough a range offorest produce and sustainable activities.

. Promote and support research and development with a view toimproving the management and efficiency of wood utilization as well asincreasing the capacity to conserve and enhance other forest values intimber producing tropical forests.

. Encourage, support and develop industrial tropical forest plantations andnatural forest management activities as well as rehabilitation of degradedforest land with due regard forthe interests of local communities dependenton forest resources.

. Develop operational and management policies aimed at sustainableutilization and conservation of timber producing forests and their geneticresources and at maintaining the ecological balance in the timber area.

. Production of value added forest products that match capacity offorestresource.

. Nori-timber forest products, e. g. eaglewood, cashew nuts plantations,sandalwood, essential oils, bark, and rattan.

. Protection and control of environmental aspects through collaborationwith PNG Forest Authority and Department of Environment & Conservationand with reference to baseline data and research findings

. Poverty alleviation and other social aspects, through collaboration withLocal Level Governments, Incorporated Land Groups, existing LandownerCompanies, Women's Fellowship Groups, Youth Groups etc.

PPD 2199 Rev. I(F)- Final Technical Report Page 19 of 45

' hidP -je

5. Modelforest objectives(continued)

6. Landowner participation

"*,

7. Forest resource

. Training and Awareness of landowners in aspects including financial &business management, sawmilling & marketing, quality control, timbertreatment, land use management and general management skills. Consideration of unique forest characteristics including inundation,climate conditions, fragile ecosystems, unique forest types and non-timberforest products.

. Other issues including sharing of information on modelforestmanagement in tropical forests, external monitoring from domesticand international agencies, e. g. ITTO.

10 ,,L

8. Existing infrastructure

. Interested developers are expected to provide information on how theyintend to encourage landowner participation in the project, e. g. smallbusiness enterprises, sub-contracts, and other spin-off activities.

. Currentresource data indicates a gross area of 243,609 hectares ofwhich 158, 553 is considered operable with an estimated net harvestablevolume of 1,952,020 cubic metres. Due to fires in 1997-98, a new forestresource inventory will be required to be undertaken by potential investors.. A timber permitissued to the developer shall authorize harvesting anddownstream processing.

. Export of round log is riot permitted but domestic sale of logs to anotherwood processor(for processing purposes) may be considered.

7.34 Conclusions

The Planning Matrix (section 3.1) identifies a variety of constraints which currently limitthe implementation ofNational Forest Policy objectives and strategies. In particular:

. I. ^!,^^ need to be reviewed and updated to provide an adequate framework for fosteringSFM within PNG.

. There are 3 grass-surface airships for light aircraft within the ForestArea.

. There is a 4WD road that is poorly drained from Wuroi on the OnomoRiver to Wipim and then in a westerly direction to Wim to the west of theForest Area.

. Tools

\

benefits are realized at national, provincial and local levels.

. Landowner ca acit

"*

rocesses

development activities

The selection of Wipim-Tapila as the Model Project Area for PNG (section 3.2) provides an opportunity forreviewing and/or enhancing tools, processes, guidelines and procedures at the forest management unitlevel. The MFMA project could also be utilized to stimulate the process of change at the national level,leading to laws and regulations being gradually updated and improved.

The Model Project Guidelines (section 3.3) provide SFM objectives and parameters for the Wipim-TapilaFMA, leading to the selection of an appropriate industry partner for the MFMA project and the issue of aTimber Permit. The Model Project Guidelines should be finalized with reference to the Planning Matrix andFull Project Proposal, before the Wipim-Tapila FMA area is advertised.

uidelines and rocedures need to be enhanced to ensure long-term socio-economic

needs to be strengthened to ensure active participation in forest resource

1.35 Recommendations

The Planning Framework provides the foundation for the establishment of a MFMA at Wipim-Tapila.Recommendations from this re on are intended to assist the revision of the Full Project Proposal in line withthe recommendations of the 27 ' ITTO Expert Panel.

PPD 2199 Rev. I (F)- Final Technical Report Page 20 of 45

The Full Project Proposal to establish a MFMA at WIPim-Tapila should:

. Utilise the elements highlighted in Planning Matrix to assemble a problem tree around the key constraint-National Forest Policy objectives and strategies are notrealized within FMA areas

. Assemble an objective tree to define the project components and a cost effective means of realizing setobjectives

. Utilize and strengthen existing institutional capacity

. Ensure project partners (landowners, Timber Permit holder, provincial government, PNGFA and DEC)work as a constructive team

. Enable project partners to provide National Forest Board with constructive recommendations for change

Prior to the commencement of the Establishment Phase and in consultation with the PFMC & landownerrepresentatives, the PNGFA should:

. Finalise the Model Project Guidelines (with reference to the Planning Matrix)

. Select an appropriate Industry Partner(with reference to the Model Project Guidelines)

. Negotiate and sign a Model Project Agreement with the selected Industry Partner area industry partnerforthe MFMA project , clearly specifying roles and responsibilities

,

,


2.

2.1

OUTLINE OF PROJECT FEASIBILITY AND BUSINESS STRATEGY

This is the second of five technical reports, which together form the basis for the formulation of a Full ProjectProposal to establish a MFMA at Wipim-Tapila in Western Province. Activities relate to Output 2 of the PreProject Document. Activities were undertaken by 2 teams of consultants during the years 2003 and 2006,resulting in an outline of the project feasibility and business strategy.

During 2003, 3 short listed FMAs were assessed of their potential to become the MFMA for PNG. Wipim-Tapila was selected and the decision later endorsed by the National Forest Board. In 2006, a follow upassessment was also generally positive. Field visits were first undertaken for preliminary assessment of theproject feasibility and to develop a business strategy forthe Timber Permit holder. During 2006, meetingswere held with LOC, provincial government, NFS and DEC representatives to finalise on the projectfeasibility and business strategy for Wipim-Tapila MFMA.

This report concludes that that the project is feasible and would require some high initial startup costs. TheProject Guidelines correctly requires applicants to carry out a new resource inventory as part of theirapplication forthe Wipim-Tapila Timber Permit. The selected Timber Permit holder will need to work closelywith the LOC, provincial government, NFS and DEC representatives so as to address the variousimpediments identified in the feasibility assessment and SWOT analysis. In particular, pro^Ctive marketingwill be required to cater for the high volume of lesser known commercial species. Some business goals andtargets are included to assist the selected Timber Permit holder prepare an appropriate business strategy forPNG's MFMA. Recommendations are listed to assist the project consultants revise the Full Project Proposalin line with the recommendations of the 27'' ITTO Expert Panel, and also to assist the PNGFA select themost appropriate Timber Permit holder forthe Wipim-Tapila FMA area.

Abstract

I

2.2

This document is the second of five technical reports and relates to Output 2 of the Pre-project Document.Output 2 relates to project feasibility and business strategy forthe utilization of the MFMA in accordance withNational Forest Policy Objectives and the following ITTO guidelines:

. ITTO Guidelines for Sustainable Management of Natural Tropical Forests (1992); and

. ITTO Criteria and Indicators forthe Sustainable Management of Natural Tropical Forests (1988).

This report supplements Report f IOUtline ofSFM Planning Framework and has been prepared to assist theformulation of the Full Project Proposal to establish a MFMA for PNG.

Activities were undertaken by 2 teams of consultants: J. Belford and T. Walega (from January to October2003) and S. Rollinson and M. Hasagama (from September to November 2006). During 2003, field tripswere undertaken to Wipim-Tapila resulting in a preliminary feasibility assessment and initial businessstrategy. During 2006, a fieldtrip was taken to Kiunga (capital of Western Province) to meet withrepresentatives from LOCs, provincial government, and NFS provincial forest office to assess and confirm onthe project's feasibility and to discuss appropriate business strategies forthe Wipim-Tapila MFMA. Meetingswere also conducted in Lae and Port Moresby with NFS, DEC and key stakeholders I partners.

Introduction

,

\

Project Feasibility and Business Strategy

The projectfeasibility and business strategy forthe Wipim-Tapila MFMA comprises 3 elements:

. Selection of an appropriate MFMAarea

. Asessment of Forest Resources atWipim Tapila

. Identification of an appropriate Business Strategy forWipim-Tapila

2.3

PPD 2199 Rev. I(F)- F1hal Technical Report Page 22 of 45

Sub-sections 3.1 to 3.3 present the feasibility assessment and business strategy framework based on datathat was collected, interpreted and analysed by the project consultants. Sub-sections 3.4 to 3.5 presentsthe author's conclusions and recommendations regarding project feasibility and business strategy for theMFMA ofWipim-Tapila in the Western Province of PNG.

2.31 Selecting a SFMModelProjectArea

Feasibility assessment and selection ofWipim-Tapila as the MFMA was undertaken in 2003 and based upon14 selection criteria. Three FMA areas were short-listed (Josephstaal, Wipim-Tapila and Cloudy Bay).Subsequent field trips were carried out to confirm that the proposed site fully satisfied each selectioncriterion, before the National Forest Board endorsed Wipim Tapila as the MFMA for PNG. Annex 4.1contains the agreed selection criteria and scoring method.

In 2006 (from September to November 2006), the MFMA assessment criteria were revisited and updated toa total of 23 criteria, so as to re-confirm the MFMA project feasibility The outcome of the assessment wasgenerally positive and is presented in the Table I.

Table ,: Ex anded MFMA selection criteria and findin s for Wiim-Ta ita

I. Access

~G" to -'

21nfrastructure

31ncorporated LandownerEntity/Entities

'I. 'S




5. Resource Data

. Poor port facilities to have access into the area


. Tapila has been developed as the new Fly River District Headquarters.Provincial govt. intends to use Tax Credit Scheme funds to built a jetty orperhaps a wharf at Tapila and also roads from Wipim to Tapila.



. Two stable and well organized resource owner Companies (LOC) have beenestablished, however with a history of disagreement.



9. Opportunities for IntegratedActivity:


. Very low stand density (volume per hectare)


10. Research:

. High levels of biodiversity significance in fauna (including migratory andprotected bird species), and flora.


. High support levels and long range planning for Provincial development. Fitswell with the new Western Province Provincial Plan (2010).


location:




. Multiple opportunities for enabling integrated activity for rural population lifestyleimprovement, e. g. timber operations, minorforest products, agricultural productsand eco-tourism.




. The area lies in Western Province, which has the largest remaining forestresource area in PNG, and is in a border area or some sensitivity which warrantsspecial significance.

. For severelyears resource owners have engaged in seed collection and sale.

. Other minorforest products are also presentfor development at the communitylevel.

Page 23 of 45

;^;;,,,..

. I.

14. General risk:

Gri **'eria

15. Landform:

16. Weather

17. Multiple Land Use

I I

18. Location

. The area is considered to have relatively low general risk, and new operationsmay qualify for special tax considerations.

. Unexpected landowner disputes and blockage

. Sustainability of the project very much depend on the available forest resource

19.1ndustries Development

20. Product markets

. Generally flat and often inundated during rainy seasons.

. Also good for agricultural production

21. Development Option

.

22. Business Opportunities

. Unfavorable weather conditions in certain months of the year

. Average monthly rainfallof200mm

JR' .

23. Timber Species

. Hunting, collections of basic food stuff and building material

. Very remote and inland

. A high degree of difficulty in accessibility

2.32 Assessing WIPim-Tapila ForestResources

The forest resource data for Wipim-Tapila FMA is based on inventory and assessment survey conducted byPNGFA before the EI Nino related fires of 1997. This data is summarized in Table 2 and Table 3. The

Project Guidelines (refer Report I) correctly requires applicants to do another resource inventory as part oftheir application forthe Wipim-Tapila Timber Permit.

. The project will hopefully spark other development

,

. High demand both locally and overseas

. Either on mall, medium orlarge scale

. High promises of spin-offs, both direct(formal) and indirect(informal)

Table 2: PNGFA Estimate. s of Forest Resources

. Known and soughtafter

I^ ;!$,11

e

, . ,

*

.

-es

.

. GrossArea

. Nori production area

. Netoperable area

. Pulp log (20cm -49cm dbh)

. Sawlog (50cm dbh and over)

. Netsawlog density

. Pulp (20cm -49cm dbh)

. Gross sawlogs (50cm dbh and over)

. Net sawlog volume (less 30%)

. Annualsustainable harvest volume

PPD 2199 Rev. I(F) - Final Technical Report

= 243,609 hectares

= 186,533 hectares

= 158,553 hectares

= 45,696 in per hectares



, ,1,131,956 in3= 5,762,814 in

= 2,625,479 in3= 75,000 in

Page 24 of 45

Table 3: S ecies Coin OSition of FirstlO Most Common S ecies and their Commercial End Uses

ee

2

F1indersia

3

Syzyguim

4

Acacia

MarenthesCor.

5

4

Palaquim

3

6

2

7

Hopea

o

2

8

.. S o

21.77

Oreocallis

9

I7.57

Buchanania

10

8.97

Calophyllum

2

6.25

Vatica

Note: The current log values and current sawn timber values are for the mixed sawn timer species as endorsed andadopted by PNGFA Marketing Branch for the months November to December of 2006. These prices varysignificantly from month to month and from export market to export marketthroughoutthe world.

.

2

P

600

3

Cabinet Timber

-. Ia

Heany Construction

5.66

2

Pulpwood

4.19

23.3 Outlining a Business StrategyforWfy)jin-Tapira

The business strategy for Wipim Tapila MFMA begins with a SWOT Analysis of the Wipim-Tapila FMA area(Table 4), and then presents a series of statements which propose some goals and targets for the TimberPermit holder's business plan (Table 5).

o..

Heary Construction

2.53

2.28

General Construction

& Furniture Making

1.72

103

Heaw Construction

,

Table 4: SWOT Anal sis forWipim-Ta ila Forest Resources~ e-- n

125

Furniture Making

103

Interior Construction

Strengths of the Forest Area for ForestDevelopment

103

Ribs & Keels for Ships

Interior construction

I e

200

100200

200 - 500

. :

200

I

200 - 600

103

300 - 500

103

400-700

158

200

200 - 500

200 - 500

200 - 500

Weaknesses of the Forest Area for

Forest Development

e

The MFMA project fits wellwith Western Province Plan (2010),particularly plans to improve shipping and roading infrastructurewithin the Wipim-Tapila area. The provincial administration hasexpressed their commitment to work in partnership with the Wipim-Tapila project to ensure sustainability of provincial outputs.

Highly suitable for conventional logging with fullimplementation ofLogging Code of Practice

Large stands of F1indersia (21.77%) for cabinet furniture andSyzygium (17.57%) for heany construction timber

Low population density possibly resulting in less landownersproblems

Climate good for!o9 harvesting during months of October to April

Good navigable rivers for proposed port facilities

Sustainable Annual Allowable Cut of 75,000m'

.

400-700

400-600

.

.

.

.


.

.

. Remoteness of area, absence of infrastructure development andcommunication linkages. In particularthe area has no port facilitiesand telecommunication facilities.

Low availability of local labour supply.

Limited education and technical manpower and business skills oflocal people.

.

.

Page 25 of 45

Weaknesses of the Forest Area for

Forest Development(continued)

Opportunities for Forest Development

.

Threats to Forest Development

I'

Wipim-Ta^ila is a big concession with a low net stand density of16,559 in

Difficulties in road construction due to poorly drained soil conditionsDifficulties in extraction in inundated areas.

Difficulties in marketing lesser known commercial speciesNori-occurrence of major prime species like kwila, taun, terminalia

.

.

.

.

.

.

Growing market preference for eco-labeled timber

Government investigating incentive policies for domestic processingThere is a possibility for World Heritage or GTZ type processingThere are possibilities to ship timber to Port Mores by, OK Tedi andthe PNG-Indonesia border

Possibility of consolidating concessions with an adjoining forestryarea i. e. Oriomo my jinare) TRP to make a more viable commercialsize operation

.

Table 5: Pro OSed oals and tar ets forthe selected Timber Permit holder

.

Vis - n

*

*

.

*

.

.

Domestic timber marketflooded with poor prices

Traditional overseas log marketflooded with poor market prices fromlarge scale Agricultural and Road line Clearance Timber AuthorityProjects

High infrastructure and transport costs a disincentive for processingLandowner dissatisfaction

'! ,,,;}

te

.

The Timber Permit holder should be guided by a vision:. To be a leader in promoting and implementing the principles and concepts of SFM within

Wipim-Tapila MFMA

.

.; ;,

The central purpose and role of the Timber Permit Holder operating with MFMA is:. To develop the Wipim-Tapila MFMA in accordance with ITTO Guidelines for Sustainable

Management of Natural Tropical Forests (1992); and ITTO Criteria and Indicators fortheSustainable Management of Natural Tropical Forests (1988).

. To process and add value added to timber and non-timber products that will be solddomestically and internationally at competitive Iy higher prices than that fetched fromround log sales.

. To establish reliable markets (domestic & international) for both common and lesserknown commercial species

Busi. e

J 1"'*',* .

'* I

@ eel-e

,

.

*""

, t 91

:.

^.

Longer term business objective(s) of the Timber Permit Holder are summarized as:

. To expand aggressive!y and offer above-average returns to benefit sharing stakeholders

. To become the leading developer in promoting sustainable forest management

*

*

The following critical strategies will be pursued by the Timber Permit Holder:' . Strengthen research and development partnerships

. Develop appropriate technologies, tools and processes

. Strengthen consensus and team-work with landowner groups, provincial government,NFS, DEC and research & development agencies

. Assist human resources to become proactive and market orientated

. Raise additional venture capital as required

PPD 2199 Rev. I (F)- F1halTechnicalReport Page 26 of 45

2.34

In 2003, Wipim-Tapila was selected as the most appropriate FMA area for the application of model forestmanagement principles with reference to 14 feasibility assessment criteria. In 2006, the outcome of asecond assessment was also generally positive. The results of the presentinventory may be overestimatedand is in need of verification due to 1997-, 998 bush fires. The Project Guidelines (refer Report I) correctlyrequires applicants to do another resource inventory as part of their application for the Wipim-Tapila TimberPermit. This updated information will ensure a more realistic estimate of sustainable cut levels within theMFMA

Conclusion

The selected Timber Permit holder will need to work closely with the LOC, provincial government, NFS andDEC representatives so as to address the various impediments identified in the feasibility assessment andSWOT analysis. In particular, the species composition has representation mostly from species groups 3 and4. Much of these groups of commercial species are lesser known in the market and will require thecombined efforts of the Timber Permit Holder and PNGFA to promote and secure markets forthese species.Species for groups I and 2 which already have established markets and very high export market values areinsignificantly represented and may affect revenue generation from this operation.

The SWOT analysis and proposed goals and targets forthe selected Timber Permit holder provide the basisfor the development of an appropriate business strategy by the selected developer for the Wipim-TapilaMFMA.

.

2.35

Recommendations from this report are intended to assist the revision of the Full Project Proposal in line withthe recommendations of the 27'' ITTO Expert Panel, and also to assist the PNGFA select the mostappropriate Timber Permit holder forthe Wipim-Tapila FMA area.

The Full Project Proposal to establish a MFMA at Wipim-Tapila should:

. Ensure project partners (landowners, Timber Permit holder, provincial government, PNGFA and DEC)work as a constructive team

. Make reference to marketing and promotional services that will be provided to the Timber Permit holderthrough the PNGFA Timber Marketing Information System

Recommendations

Prior to the commencement of the Establishment Phase and in consultation with the PFMC & landowner

representatives, the PNGFA should:

\

. Select a Timber Permit holder I Industry Partner whose proposal includes an accurate inventory asrequired by the Project Guidelines (NFS field verification will be necessary) and an appropriate land-useplan

. Select a Timber Permit holder/ Industry Partner whose proposal is in line with the proposed goals andtargets forthe selected Timber Permit holder

. Select a Timber Permit holder/ Industry Partner with the required commitment and capacity to tackle theimpediments identified in the feasibility assessment and SWOT analysis, particularly the marketing andpromotion of lesser know commercial species with reference to the species composition of Wipim TapilaFMA.


3.

3.1

OUTLINE OF COMMERCIALARRANGEMENT FOR PROPOSED MFMA

This is the third of five technical reports, which together form the basis for the formulation of a Full ProjectProposal to establish a MFMA at Wipim-Tapila in Western Province. Activities relate to Output 3 of the PreProject Document. Activities were undertaken by 2 teams of consultants during the years 2003 and 2006,resulting preparation of an accepted outline of the commercial arrangements forthe proposed MFMA.

The Pre Project Document proposed the MFMA project operate within a FMA concession area. Therefore,the Wipim-Tapila developer will be selected according to the procedures outlined in the Forestry Act forthegranting of Timber Permits. The Model Project Guidelines (refer Report I) will ensure that the selectedTimber Permit holder applies appropriate SFM principles and practices within the Wipim-Tapila FMA area.This report investigates in greater detail some model arrangements for harvesting, processing and marketingtimber and non-timber products from the Wipim-Tapila FMA area, utilizing data collected during field tripsand meetings with LOC, provincial government, NFS and DEC representatives.

This report concludes that commercial arrangements should involve the Timber Permit holder, landownercompanies and/or entrepreneurs, as well as contractors for specific tasks. Harvesting of timber and nori-timber forest products within Wipim-Tapila should be led by a Timber Permit holder with the required SFMcommitment and capacity to assist landowner companies and/or entrepreneurs start viable small to mediumscale forest based industries. The PNGFA Marketing Branch will be required to assist with the marketingand promotion of the areas lesser known commercial species through its Timber Marketing InformationSystem. Training (Report 4) and research (Report 5) programmes will also be required to support SFMinitiatives. Recommendations are listed to assist the project consultants revise the Full Project Proposal inline with the recommendations of the 27'' ITTO Expert Panel, and also to assist the PNGFA selectthe mostappropriate Timber Permit holder forthe Wipim-Tapila FMA area.

Abstract

3.2

This is the fourth offive technical reports and relates to Output 4 of the Pre Project Document, namely:

. Outline of commercial arrangement for proposed MFMA

This report supplements Report I IOUtline ofSFM Planning Framework and has been prepared to assist theformulation of the Full Project Proposal to establish a MFMA for PNG. Output 3 activities were undertakenby 2 teams of consultants: J. Belford and T. Walega (from January to October 2003) and S. Rollinson and M.Hasagama (from September to November 2006). During 2003, field trips were undertaken to Wipim-Tapilato collect field data and interview landowners. During 2006, a field trip was taken to Kiunga (capital ofWestern Province) to meet with representatives from LOCs, provincial government, and NFS provincialforest office to discuss appropriate commercial arrangements for Wipim-Tapila. Meetings were alsoconducted in Lae & Port Moresby with NFS, DEC & key stakeholders I partners.

Introduction

\

3.3

The Pre Project Document proposed the MFMA project operate within a FMA concession area. Theacquisition and allocation of FMA areas within PNG is performed in accordance with procedures outlined inthe Forestry Act, leading to the granting of a Timber Permit forthe selected developer. Project proposals areprepared with reference to the objectives and parameters outlined in specially prepared Project Guidelines.Report f I Outline of SFM Planning Framework describes the selection of Wipim-Tapila as the Model FMAarea for PNG, as well as the background information included in Project Guidelines for the Wipim-Tapilaconcession area.

Commercial Arrangements forthe Wipim-Tapila MFMA

This report investigates in greater detail some model arrangements for harvesting, processing and marketingtimber and nori-timber products from the Wipim-Tapila FMA area, in accordance with National Forest PolicyObjectives (including the Logging Code of Practice), ITTO Guidelines for Sustainable Management ofNatural Tropical Forests (1992), and ITTO Criteria and Indicators forthe Sustainable Management of NaturalTropical Forests (1988). Reports 4 and 5 outline the training and research programmes that will be requiredto complement and support the commercial arrangements included in the full-project proposal

PPD 2199 Rev. I(F)- F1halTechnicalReport Page 28 of 45

3.31 ArrangementsibrHarvesting Timber andNon-Timber Products

The harvesting of timber and non-timber forest resources within the MFMA can be undertaken by 3 types of Forest Industry Participant, namely:

. Timber PermitHolder

. Landowner Company/Entrepreneur

. Contractor

The table below outlines some collaborative harvesting arrangements forthe 3 types of Forest Industry Participant.

@- ee-

Timber Permit

Holder CFPH)

I~

Profit

Maximisation

co .

Landowner

company/entrepreneurs

SurveyInfrastructure

development

Planning

Harvesting

MarketingResearch &

Development

Training ofindividuals from

LOC

Contractor

(product oriented)

Profit

Maximisation

InO (SFM)PNG National

Forest PolicyEnvironment Act

LCOP

@

,

Smallto medium

scale forest basedindustries

Profit

Maximisation


PNGFA

InO

DEC

PFMC

LOC

FRl

SBDC

F1A

Specific tasksrequiring specialistinput

InO (SFM)PNG National


LCOP

LOC

Contractor

High

ITFO (SFM)PNG National


LCOP

TPH None

TPH

High and capable ofbeing independent

. ,

May require TPH toassist with

establishment and

initial startup cost

May utilise funds fromroyalties and levies

None

r

TPH workingtogether with LOCand Contrastor

High

,

Lowand requiresmanagement andtechnical training andsupport

High and can beselected to match TPH

requirements

LOC workingtogether with TPHand Contractor

Contractor workingtogether with TPHand LOC

Page 29 of 45

The Timber Permit Holder will be required to make substantive capital investment during the initialphase to set the base for the implementation of the MFMA. The active participation of landownercompanies and/or entrepreneurs will require initial support by the Timber Permit Holder and otherproject partners and should take place only after careful assessment of the capacity of landownercompanies and/or entrepreneurs to effectiveIy perform the required business tasks for forest basedenterprises such as portable sawmills. The participation of the contractor will be contracted by theTimber Permit Holder to assist with the harvesting, processing, and marketing of those lesser knowncommercial timber species and other non-timber products.

33.2 Arrangements for Processing and Marketing Timber and Non-Timber Products

The effective marketing of the timber and nori-timber products will require commitment and support bythe different stakeholders including PNGFA, provincial government, GOPNG, IPA, IRC, FRl, DEC,F1A, SBDC, and the Timber Permit Holder. The promotion of research and experimentation leading toenhancing high value outputs and marketing of lesser known commercial timber and non-timberproducts requires joint efforts by these different stakeholders. The forest area of Wipim Tapilacontains species that are commercially lesser known against other better known or commoncommercial species like kwila, taun, pencil ceder, malas, walnut, etc. As such, the promotion of theselesser know species is a priority with PNGFA taking the lead with other stakeholders supportingpositively to ensure continuation ofWipim Tapila SFM.

In an effort to maximize on the net return from the timber and nori-timber products, quality processing,preservation and carefully researched markets will be required. The PNGFA Marketing Branch willplay a significant role in marketing the many lesser known timbers and timber products through theTimber Marketing Information System'. The involvement of ITTO and FSC is also important in thepromotion of profit maximisation from the processed timber and non-timber products.

,

I

3.33

The Pre Project Document proposed the MFMA project operate within a FMA concession area.Therefore, the WIPim-Tapila developer will be selected according to the procedures outlined in theForestry Act for the granting of Timber Permits. The Model Project Guidelines (refer Report I) willensure that the selected developer applies appropriate SFM principles and practices within the Wipim-Tapila FMA area

Commercial arrangements should involve the Timber Permit Holder, landowner companies and/orentrepreneurs, as well as contractors for specific tasks. Harvesting of timber and non-timber forestproducts within Wipim-Tapila should be led by the selected Timber Permit holder in partnership withlandowner companies and/orlandowner entrepreneurs. Processing and marketing of timber and non-timber forest products will also require a collaborative effort between SFM agencies. In particular, thePNGFA Marketing Branch will be required to assist with the marketing and promotion of the areaslesser known commercial species through its Timber Marketing Information System. Training (Report4) and research (Report 5) programmes will be required to complement and support harvesting,processing and marketing initiatives.

Conclusion

\ ,

33.4

Recommendations from this report are intended to assist the revision of the Full Project Proposal inline with the recommendations of the 27'' ITTO Expert Panel, and also to assist the PNGFA selectthemost appropriate Timber Permit holder forthe Wipim-Tapi!a FMA area.

The Full Project Proposal to establish a MFMA at WIPim-Tapila should:

. Ensure project partners (landowners, Timber Permit holder, provincial government, PNGFA andDEC) work as a constructive team

Recommendations

'1nO PD-379-05-R3 titled Enhancing PNG's Timber Marketihg Information System has been approved by the 4, ''1TrC forimmediate financing


. Make reference to marketing and promotional services that will be provided to the Timber Permitholder through the PNGFA Timber Marketing Information System

. Include adequate training (refer Report 4) and research (refer Report 5) programmes tocomplement and support harvesting, processing and marketing initiatives

Prior to the commencement of the Establishment Phase and in consultation with the PFMC &landowner representatives, the PNGFA should:

. Select a Timber Permit holder I Industry Partner whose proposal innovativeIy and realisticallyaddresses the SFM objectives and parameters outlined in the Project Guidelines

. Select a Timber Permit holder I Industry Partner with the required commitment and capacity toassist landowner companies and/or entrepreneurs start viable small to medium scale forest basedindustries

I

. . ,

PPD 2199 Rev. I (F)- F1halTechnicalReport Page 31 of 45

4.

4.1

OUTLINE OF TRAINING PROGRAMME

This is the fourth of five technical reports, which together form the basis for the formulation of a FullProject Proposal to establish a MFMA at Wipim-Tapila in Western Province. Activities relate to Output4 of the Pre Project Document. Activities were undertaken by 2 teams of consultants during the years2003 and 2006, resulting in an accepted outline forthe MFMA project's capacity building programme.

During 2003, field visits were undertaken to identify landowner structures and capacity. During 2006,meetings were held with LOC, provincial government, NFS and DEC representatives to complete thecapacity assessment of project partners. Both training and non-training requirements were assessedwith reference to ITTO Criteria and Indicators. A Capacity Development Matrix was prepared outlininga cost-effective, low risk strategy for addressing capacity gaps.

This report concludes that that well designed training I information services are required to ensure thatLOCs, ILGs, landowner entrepreneurs and industry partner have the desired management,administrative and technical skills. The Capacity Development Matrix also highlights the requirementfortools, equipment and a well organized project management team. Recommendations are listed toassist the project consultants revise the Full Project Proposal in line with the recommendations of the27'' ITTO Expert Panel.

Abstract

4.2

This document is the fourth of five technical reports and relates to Output 4 of the Pre ProjectDocument, namely:

. Training offield staff and landowners

Introduction

Output 4 activities were designed to outline an appropriate training package for the MFMA project atWipim-Tapila in Western Province. This report supplements Report I I Outline of SFM PlanningFramework and has been prepared to assist the formulation of the Full Project Proposal to establish aMFMA for PNG.

Output 4 activities were undertaken by 2 teams of consultants: J. Belford and T. Walega (from Januaryto October 2003) and S. Rollinson and M. Hasagama (from September to November 2006). During2003, field trips were undertaken to Wipim-Tapila to interview landowner representatives. During2006, a field was taken to Kiunga (capital of Western Province) to meet with representatives fromLOCs, provincial government, and NFS provincial forest office. Meetings were also conducted in Laeand Port Mores by with training agencies and NFS I DEC staff.

\.

4.3 Capacity Building Programme

Sub-section 3.1 describes the capacity assessment data and results. Sub-sections 3.2 to 3.3 presentthe authors' conclusions and recommendations regarding the formulation of an appropriate trainingprogramme forthe MFMA project.

43.7 Capacity Development Matrix

During 2003, field interviews and meetings were conducted to identify landowner entities within theWipim-Tapila FMA area. During 2006, meetings were held with project partners to analyse currentcapacities against desired future capacities. To ensure that important capacity gaps were notoverlooked, both training and nori-training requirements were assessed with reference to ITTO Criteriaand Indicators using the SFM Planning Matrix'. The Capacity Development Matrix (page 2) outlinesthe results of the landowner capacity assessment and the proposed capacity building strategies.

' The SFM Planning Matrix is a component of Report I IOUtl^he ofSFMplanning framework


Table I: Capaci Development Matrix for Wipim-Tapila landowners, s,e

I. Landowner Companies. KoinaWu'ullnvestment Ltd. and

Tapila Timber Investment Ltd.represent around 61 and 6 ILGsrespectively. Both LOCs wereestablished around 10 years agoto manage the Wipim-Tapilacommunity's royalty and Iewpayments from anticipated TimberPermit operations

I~'-

Able to represent community interests

2. Incorporated Land Groups

. There are currently 67 registeredILGs representing claris from 5tribal groups

Able to manage community finances

Able to manage community developmentprojects

LOC directors have limited leadershi

n

skills

LOC directors and staff have limited:

,-^

aci

. organizational skills & resources

. communication (internal&external)skills & resources

Able to manage clan finances

LOC directors have limited understandin

of

. financial management tools

. investment optionsLOC directors and staff have limited:


Able to manage clan developmentprojects


. financial managementskills

Collaborate with existing organizationaldevelopment agencies (e. g. Institute forPublic Administration) to identify andstrengthen LOC 11LG assets through amix of training techniques, such as:

. training of trainers

. training courses

LOC directors have limited:

.

. strategicplanningskills

. projectmanagementskills

ILG directors have limited understandin

of


. investment optionsILG directors and staff limited:

. seminars

. exposuretrips

. on the job training

. on siteinformation dissemination


. financial managementskills

LOC directors have limited:

LOC 11LGs financial resources should be

utilized to purchase physical assets asrequired, such as:

. officepremises

. officehardware

. officesof Iware

. strategicplanningskills

. projectmanagementskillsLOC directors and staff limited:

. technical skills

Page 33 of 45

3. Forest Based Enterprises

. Niloperating

e , tl ,

I~~-

,

Able to start and improve viable, long-term business enterprises

. I

Table 2: Capacit Development Matrix for MFMA pro^Ct partners- ee

I. Industry partner

. Priorto MFMA projectcommencement, a Timber Permitholder forthe Wipim-Tapila FMAarea will be selected and a Model

Project Agreement with thePNGFA in place (in line with therequirements of the Forestry AGO'

~- Ie

LOCand ILGs rovidelimitedsu on

services to entrepreneurs

I'~\

Landowners educated to rade 12 havelimited:

. businessmanagementskills

. forest based industry skills andresources

. administrative skillsand resources

' Refer Report 710utffne ofSFMPlanningFramewoik

Able to utilise appropriate SFM tools,processes and techniques


e

Collaborate with LOC 11LC leaders and

existing business development agencies(e. g. SBDC, Provincial I District Divisionsof Commerce) and forest industryagencies (e. g. TFTC, TMIC) to identifyand train potential entrepreneurs througha mix of techniques, such as:

. training of trainers

. training courses

. exposuretrips

. on the jobtraining

. on siteinformation dissemination

.

e - e

It is expected that the selected industrypartner/ Timber Permit holder will haveadequate skills to manage a modeltimberoperation

. .

LOC 11LG I entrepreneurfinancialresources should be utilized to purchasephysical assets as required, such as:

. officepremises

. forestry equipment

. forestry tools

Collaborate with forestry institutions (e. g.FRl, PNG UOT, TFTC)to:

. identify SFM knowledge gapsofselected industry partner

. design, implement and monitortraining Iinformation service to assistindustry partner reach desired SFMcapacity

, 'I

Page 34 of 45

-:'ecP e

I. Industry partner(continued)

,

2. NFS I DEC field staff

. Priorto MFMAprojectcommencement, the PNGFA andDEC will appoint appropriate fieldsupervisors from their pool of fieldstaff

,

,

Able to collaborate constructiveIy withlandowner entities and MFMA projectpartners (provincial government, NFSand DEC)

3. Provincial government

Able to supervise planning, monitoringand impact assessment operations


It is expected that the selected industrypartner/ Timber Permit holder will haveadequate skills to collaborate withlandowners and MFMA project partners

,-.~,


It is expected that NFS I DEC supervisorswill have adequate skills to supervise fieldoperations

PPD 2199 Rev. I (F)- Final Technical Report

.

It is expected that NFS I DEC supervisorswill have adequate skills to collaboratewith landowners and MFMA projectpartners

e

Establish MFMA Project ManagementTeam (landowner, provincial government,industry partner, NFS and DECrepresentatives) with clearly specified:

. terms of reference outlining functions,duties & responsibilities

. communication procedures

The newWestern Province Provincial

Plan (2010) puts in place a proactiveplanning framework to develop theprimary sector and expand economicopportunities.The Provincial administration is keen to

work with the MFMA projectthrough thePFMC to ensure provincial and projectplans are well aligned and can besustained

Purchase means to cost effectiveIyimplement MFMA project, such as:. Vehicle

. Communication tools







Page 35 of 45

43.2

The Capacity Development Matrix (section 3.1) outlines a cost effective, low risk capacity developmentstrategy that actively involves landowner within the Wipim-Tapila FMA area. The CapacityDevelopment Matrix clearly demonstrates that well designed training I information services arerequired to ensure that:

. LOC and ILGs have the desired leadership, management and administrative skills

. Landowner entrepreneurs have the required business management and technical skills

. Timber Permit holder has the required technical skills

Conclusions

43.3

Recommendations from this report are intended to assist the revision of the Full Project Proposal inline with the recommendations of the 27'' ITTO Expert Panel.


. Focus on capacity gaps

. Include a project management team to ensure constructive collaboration between landowners andproject partners

. Include tools and equipment to ensure NFS and DEC supervisors have the means to efficientlyundertake planned field tasks

. Utilise existing training institutions, agencies and networks

. Include a training I information service that assists landowners to utilise their human, financial,physical and environmental resources wisely (if necessary, recruit short-term consultant)

. Include a training I information service that assists Timber Permit holder to utilise SFMtechnologies, tools and processes (if necessary, recruit short-term consultant)

Recommendatibns

\...

PPD 2199 Rev. I (F)- F1hal Technical Report Page 36 of 45

5.

5.1

OUTLINE OF RESEARCH PROGRAMME

This is the last of five technical reports, which together form the basis for the formulation of a FullProject Proposal to establish a MFMA at Wipim-Tapila in Western Province. Activities relate to Output5 of the Pre Project Document. Activities were undertaken by 2 teams of consultants during the years2003 and 2006, resulting in an accepted outline forthe MFMA project's research programme.

During 2003, field visits were undertaken to assess Wipim-Tapila resources and identify areas thatrequired research inputs. During 2006, meetings were held with staff from research institutions, NFSand DEC to discuss research options and propose solutions. A Research Planning Matrix wasprepared outlining research activities, inputs and responsibilities that matched MFMA project outputs.

This report concludes that the Research Planning Matrix provides a cost effective, low risk strategy forenhancing planning, monitoring and impact assessment activities. The Research Planning Matrix alsohighlights the requirement for sound coordination of research activities, as well as a range of inputs forefficient implementation. Recommendations are listed to assist the project consultants revise the FullProject Proposal in line with the recommendations of the 27'' ITTO Expert Panel.

Abstract

5.2

This document is the last offive technical reports and relates to Output 5 of the Pre Project Document,namely:

. Establishment of trials

Introduction

Output 5 activities were designed to outline an appropriate research framework forthe MFMA projectat Wipim-Tapila in Western Province. This report supplements Report I I Outline of SFM PlanningFramework and has been prepared to assist the formulation of the Full Project Proposal to establish aMFMA for PNG.

Output 5 activities were undertaken by 2 teams of consultants: J. Belford and T. Walega (from Januaryto October 2003) and S. Rollinson and M. Hasagama (from September to November 2006). During2003, field trips were undertaken to assess the Wipim-Tapila environment. During 2006, meetingswere conducted in Lae and Port Moresby with training agencies, NFS and DEC staff.

\Research Programme

Sub-sections 3.1 to 3.2 presentthe data collected and project findings. Sub-sections 3.2 to 3.3 presentthe authors' conclusions and recommendations regarding the formulation of an appropriate researchprogramme forthe MFMA project. Supplementary information is included in the annex section.

5.3

5.3. i

During 2003, Wipim-Tapila was selected as the MFMA for PNG with reference to 14 selection criteria(refer annex 4.1). Following field surveys, the F1MS' was updated and a draft land-use map for theWipim-Tapila FMA area produced (refer annex 4.2).

During 2006, the PNGFA prepared the Project Guidelines for the Wipim-Tapila FMA area inconsultation with Wipim-Tapila landowner representatives and the PFMC for Western Province. Thisimportant planning document outlines the MFMA parameters and objectives, and forms an importantcomponent of the Timber Permit allocation process as defined in the PNG Forestry Act. The table

Research Areas

' F1MS is the NFS Forest Inventory Mapping System which uses Mapinfo software


below provides background information on the Wipim-Tapila FMA area, sourced from the ModelProject Guidelines. Areas that require research inputs have been highlighted.

Table ,: Background information from Wipim-Tapila Model Pro^Ct Guidelines research areas hi hli hted

I. Project location

2. Climate

3. Vegetation

. The Forest Area is located in the Western Province of Papua New Guinea, justabove the northern tip of Australia,

\

. Generally sub-humid tropical with annual rainfallranging from 1500-2000 min.with a clear distinction between the wet and dry seasons.

4. Project developmentconcept

. During the wet season, most low tying areas are inundated and during the dry,forest fires can be prevalent.

5. Modelforest objectives

. Some of the mixed commercial-hardwood species found include: Acaciainarigium, Calophyllum spp, ' F1^^delsia spp, 'Intsia baruga, Pometia pinnata, 'Pterocaipus inofcus, Vatiba papuana, ' andXanthostenron brassii

, . I .

. Certification of the Forest Area through a credible and internationallyrecognized certification mechanism such as the Forest Stewardship Council(FSC)is a key project objective.

\~

.

.

. *

Poverty alleviation and other social aspects, through collaboration with Local LevelGovernments, Incorporated Land Groups, existing Landowner Companies,Women's Fellowship Groups, Youth Groups etc.

. Training and Awareness of landowners in aspects including financial &business management, sawmilling & marketing, quality control, timber treatment,land use management and general management skills

a

6. Landowner participation

o

.

a


a

. Other issues including sharing of information on modelforest management intropical forests, external monitoring from domestic and international agencies, e. g.ITTO.

. Interested developers are expected to provide information on how they intendto encourage landowner participation in the project, e. g. small businessenterprises, sub-contracts, and other spin-off activities.

Page 38 of 45

7. Forest resource

8. Existing infrastructure

5.32

,I

. A timber permitissued to the developer shall authorize harvesting anddownstream processing.

. Export of round log is riot permitted but domestic sale of logs to another woodprocessor(for processing purposes) may be considered.

During 2006, meetings were held with research institutions to design a research package thatspanned the various research areas identified. It was decided that research activities should bealigned with the 3 components of MFMA Objective Tree (refer annex 4.3), namely:

. Planning

. Monitoring

. ImpactAssessment

Research Planning Matrix

. There are 3 grass-surface airstrips for light aircraft within the Forest Area.

. There is a 4WD road that is poorly drained from Wuroi on the Oriomo River toWipim and then in a westerly direction to Wim to the west of the Forest Area.

I.

Research stete^ies were then selected with reference to 1770 Criteria and Indicators using the SFMPlanning Matrix . The Research Planning Matrix below outlines the structure, activities, inputs andresponsibilities of the proposed research programme.

Table 2: Research Plannin Matrix for MFMA roect

4. Planning Update, syncronise and operate nationalforest inventory I mapping I modeling toolsto:

. ensure economic& environmentalcosts are minimized

. determine the most appropriate land-use options (e. g. conservation areas,agricultural areas, natural productionforest, plantation forest)

. determine most appropriatesilvicultural/ harvest regimes for eachforest management unit

Provide Timber Permit holder with trainingand information as required to:

. develop and utilise appropriate SFMtechnologies, tools and processes forWipim-Tapila

. MISConsultant

. Travel

. Fieldsurveyandcamping equipment

' Refer ReportNo. f (outffne ofSFMplanningframework)

PPD 2199 Rev. I (F)- Final Technical Report

DEC

PNGFA:

. PlanningDivision

. Forest Research

Institute

. Mapping Branch

. Travel

. Training courses

TFTC

PNGFA:

. Forest ResearchInstitute

. PNGUot:

. ForestryDepartment

Page 39 of 45

5. Monitoring

6. ImpactAssessment

Review and update Logging Code ofPractice and Planning, Monitoring &ControlProcedures to:

. ensure alenvironmentalissues are

addressed (e. g. soil, water and fragileforests)

Develop tools and procedures to:. assess and minimize unwanted

environmental (biotic and abiotic)impacts

5.33 Conclusions

The Research Planning Matrix (section 3.2) outlines a cost effective, low risk strategy for enhancingplanning, monitoring and impact assessment activities through well focused and applied researchactivities. The Research Planning Matrix also highlights the cross-cutting nature of SFM research.

Develop tools and procedures to:. assess and minimize unwanted SOCio-

economic (local, provincial andnational levels) impacts

. Travelforfieldreview

. Meetings

. Publication and

printing

5.34 Recommendations

Recommendations from this report are intended to assist the revision of the Full Project Proposal inline with the recommendations of the 27'' ITTO Expert Panel.


. Focus on research gaps

. Be well aligned with the planning, monitoring and impact assessment components of the MFMAproject as a whole

. Develop mechanisms to ensure research institutions and industry partner collaborate effective Iy

. Include a range of costed inputs to ensure research partners have the means to efficientlyundertake planned field tasks

. Include a project coordinator to ensure research activities are undertaken as planned I on time byresearch partners

. Travel, equipmentand materials for

baseline surveys

. Travel, equipmentand materials to

establish and

monitor permanentsample plots

PNGFA:

. Resource

DevelopmentDivision

. Forest Research

Institute

\

. Travel, equipmentand materials for

baseline and

monitoring surveys

DEC

PNGFA:

. Forest ResearchInstitute


6.

6.1

ANNEXES

Selection Criteria for Model Project Area

Matters which warrant consideration in selection of a Model FMA Area are below.

In all cases, please make an effort to give a rating on what you know of each area:-

5 = highest or best rating

4 = above average rating

3 = average rating

2 = below average rating

I = poor rating

OFAMODELFORESTMANAGEMENTAGREEMENTAREA

CRITERIA FORTHE SELECTION

. Ease of access. [From Good (5) to Poor(,)]

. Existence of infrastructure or access to infrastructure i. e. roads, shipping services etc. IFrom Good(5) to Poor (1)l

. Existence of incorporated land owner entity/entities. tFrom Strong/Stable (5) to Weak/Unstable (1) I

. Availability of FMA for allocation. Acquisition fieldwork completed, and National Forest Planinclusion. IAIl formalities completed (5) to totally incomplete (1)l.

. Availability of broad resource data. [Easily available (5) to unavailable (1)]

. Familiarity of timbers from Area. [Generally known (5) to unknown(,).]

. Significant known bio-diversity value. [High significance (5) to Low significance (1)]

. Significant support at local, Provincial and National level. tFrom High support levels (5) to lowsupport levels (1)l

. Agricultural potential and general workforce availability. tFrom Good (5) to Poor(I)

. Opportunities for community based integrated rural development projects. tFrom Good (5) to Poor(1)I

. Interest as a location for field forestry research and/or general scientific interest. tFrom Highresearch interested (5) to Low interest (1)l

. Data base for land and forest classification exists or can be readily developed. tReadily available(5) to unavailable (1)l

. Located in a part of PNG which has significant remaining forest resource. (Adjacent to High levels(5) I Low resource levels (1)l

. General risk. ILOw risk (5), to extreme risk = (1)l

Consideration of these aspects of planning and operational significance should be made whenselecting an area as the Model Forest Management Agreement area.


46

Page 41 of 45

6.2 Draft Land-Use Map for Wipim-Tapila Model Project

ATTACHMENT 2. c Draft Land-Use Map

I ~' -/ ,-.,"-,,,.-.'' ' '''' "~""""1,

mm. .,,., ,,,,,., C::""";;I, , ,,,

,,.~,' '~^;I^^^*I"",,~t, :?:^.*,,, "I, _filly*,**"'"""~"~""I ^:;;55E^*';,'-:\";!;;;;.\;;111'1;",,,,,,,' ,,,,,,,,I' "' '\,", u, ""'?"""" i'~'^;"""*': ' ~~ a"".-:>;---;!---I'"'""!^^::'-/\*^.;;\*-:~-^ by*-- I1'\ I 11 ^,:-;\:;';*':.:*',-. 11'1 I, , ('i'l. ,,,. I, 'i^^;^;'*,--*\!:;.,:\-";:~" -'- I-, <) --* 'I I~~ 'I ~ ""/~"' '~" '~"~, I*-------, , ,,

=.- -, I

""un""""" ';.,;..,; *., ^,,,,,: ,:. ,. A~"am"~' ,',;,"\,, j:':;--., I""" ~.' I. ^,, ,~~' ' ~ ,.*

I'uni. ,dPm. "I, "F. "":IQ, Dh. I .':~\,,,, ,'., L '~\ I' '""""""~""""'hymn'"""'"' L, ..,~'a. * my'"" '

alum, ,,,,,,,,,,,'""'"'"'"'""""{,;,"my^,,.",='. if'^:>.."""' mm I

. ;;^:11/1/11'"' ^,,./;*"Elm\ ',,,,, .ill, ... .,..,,, ,,,,,,,,,, ,~:"NunF"""v. @4.6, Di ,,^o10\"A ,, 006, I .'^,,*,;. "L" a, "0 ,,,

.Wi. ,. .U, I \ 1' ,;' "~~^ ,J1,11

LANDUSE PLAN OF\VIPllv, TAPILAFA, IA by, ,~

Western Province " ,""<<>

61"^es, .=CI. *","

Wipim Tapila Forest Management Agreement Area Project Guidelines - Western Province

17


6.3

,, se 6, cjjpi! G. rite@at

Model Project Criteria and Findings forWipim-Tapila FMA Area

I. Access

21nfrastructure

31ncorporated LandownerEntityEntities

.,

-ing


5. Resource Data





. Wipim is being developed as the new District Headquarters.


. Two stable and well organized resource owner Companies have beenestablished.



9. Opportunities forIntegrated Activity:



"

. High levels of biodiversity significance in fauna (including migratory andprotected bird species), and flora.

10. Research:

. High support levels and long range planning for Provincial development.





location:

. Multiple opportunities for enabling integrated activity for rural population lifestyleimprovement, e. g. timber operations, minorforest products, agriculturalproducts and eco-tourism.


.,


I

14. General risk:


I I

. The area lies in Western Province, which has the largest remaining forestresource area in PNG, and is in a border area or some sensitivity whichwarrants special significance.

. For several years resource owners have engaged in seed collection and sale.

. Other minorforest products are also presentfor development at the communitylevel.

. The area is considered to have relatively low general risk, and new operationsmay qualify for special tax considerations.


6.4 Objective Tree

END

I

\

a

Available forest

inventory andmodelling toolsare unused and

updated asrequired

Timber Permit operations provide PNG with sustained socio-economic benefits

Landowners

utilise their

resources

(human.finandal,

physical. forest)wisely

Appropriate SFMtechnolgies. tools& proneesses are

seieded &

developed asrequired

,-\

MEANS

Construdirerecommendation

for change aregiven to the

National ForestBoard as

required


Current

MonitoringProcedures for

Timber Permit

operations areadequately

implemented

Forest

managementguidelines are

drafted I updatedas required

Training isprovided to assistprojed monitors(e. g. landowners;permit holders)

as required

Conslructirerecommendation

torchange aregiren to the


required

Sodal,environmentaland economic

impacts areadequatelymeasured

S

Measures are

dereloped tominimise

unwanted

impads withinprojed area andTimber Permits

in general

Training isprovided to assist

projectassessors (e. g

landowners;

permit holders)as required

Construdiverecommendation

for change aregiren to the


required

Page 44 of 45

7.

PNG Forest Authority. 2002. Projectlmplementation Plan forPNG Forestry & Conservation Project.PNG Forest Authority, Hohola. Unpublished

PNG Forest Authority. 2003. Report f - ModelForest Management Agreement Area forPNG.Submitted by J. Belford in February 2003. PNG Forest Authority, Hohola. Unpublished

PNG Forest Authority. 2003. Application of National Criteria & Indicators for Sustainable Managementof Natural Tropical Forests. Submitted to ITTO in September 2003. PNG Forest Authority, Hohola.Unpublished

REFERENCES

\


''P ^.,/, , 12^, y. I { 7'' ) I',!^,/ 7;^^,,, e · PDF fileMarketing Information System...

Documents

Transcript of ''P ^.,/, , 12^, y. I { 7'' ) I',!^,/ 7;^^,,, e · PDF fileMarketing Information System...