Preparatory Study on Integrated Project for Sustainable

Department of Forest, Environment and Wildlife Management Government of Sikkim Republic of India

Preparatory Study on Integrated Project for

Sustainable Development of Forest Resources in Sikkim

Summary of Final Report

November 2009

Japan International Cooperation Agency (JICA) IC Net Limited

SAD

09-015 CR(10)

1

Japan International Cooperation Agency (JICA)Preparatory Study

onIntegrated Project for Sustainable Development of Forest

Resources in Sikkim

Summary of Final ReportNovember 2009

Study Team for JICA IC Net Limited

2

1. Study scheduleFirst Field Study Early June - End of July 2009Inception Reporti. Preparationii. Consultation with stakeholders on the Inception Reportiii. Verification of background and necessity of the Projectiv. Preliminary discussion on project scope and subproject selection

Second Field Study Early August - Late September 2009Interim Reportv. Consultation with stakeholders on the Interim Reportvi. Development of project detailsvii. Development of project management structureviii. Examination of project effectiveness

Third Field Study End of October 2009Draft Final Reportix. Consultation with stakeholders on the Draft Final ReportFinal Report December 2009

2

3

Overall objectiveContribute to the enhancement of environmental conservation and reduction of poverty in the state of Sikkim

Project purposePromote the conservation of biodiversity and forests, and the improvement of the livelihood of forest fringe communities in the state of Sikkim

2. Summary of the project (1)

Instruments of change• Capacity development of the forest-fringe communities• Capacity development of the Forest Department

4


Reserved forests and protected areas (forest and biodiversity resources)

Forest Department (Government of Sikkim)Component 1 - Preparatory work

Component 5 - Organisational strengthening of FDComponent 6 – Consultancy services

General public, the private sector, and ecotourists

Component 2Forest and biodiversity

conservation

Extension, research, andEndowment Fund

Forest-fringe communities

Component 4JFM and biodiversity conservation

Market

Conservation and utilization

Component 3Ecotourism

Ecotourists

Non-consumptive utilization

3

5

Duration of the project 10 years from FY2010/11


Schedule of the Project

C1 Preparatory work

C2 Forest and biodiversity conservation

C3 Ecotourism

C4 JFM and biodiversity conservation

C5 Organisational strengthening of FD

C6 Consultancy services

8 92 3 4 5 10Fiscal year

1Items

6 7

6

Proposed project cost

2. Summary of the project (4)(Million INR)

FY1 FY2 FY3 FY4 FY5 FY6 FY7 FY8 FY9 FY10 Total % tototal

A. ELIGIBLE PORTION 112 367 582 696 646 364 216 111 113 73 3,280 83.3% I) Procurement / Construction 80 308 529 651 599 344 209 104 98 70 2,990 76.0%

C1. Preparatory work 0 0 0.0%C2. Forest and biodiversity conservation 50 114 46 39 21 29 25 14 11 7 357 9.1%C3. Ecotourism 23 207 379 345 149 46 1,150 29.2%C4. Joint forest management 35 47 62 74 54 43 31 27 16 389 9.9%C5. Organisational strengthening of the FD 25 107 158 56 31 25 36 25 25 20 509 12.9%Price escalation and physical contingency 4 28 71 114 128 86 60 33 34 26 585 14.8%

II) Consulting services 32 60 53 45 47 20 7 7 15 3 290 7.4%C6. Consultancy services base cost 30 55 47 38 39 16 5 5 11 2 248 6.3%Price escalation and physical contingency 2 5 6 7 8 4 2 2 5 1 42 1.1%

B. NON ELIGIBLE PORTION 24 76 112 89 77 46 34 21 23 16 519 13.2%a Procurement / Construction 7 29 46 17 10 8 12 9 10 8 157 4.0%

C5. Organisational strengthening of the FD 6 27 39 14 8 6 9 6 6 5 127 3.2%Price escalation and physical contingency 0 3 6 3 2 2 4 3 3 3 29 0.7%

b Land Acquisitionc Administration cost 11 36 56 64 59 34 21 11 11 7 309 7.9%d VAT 4 7 6 5 6 2 1 1 2 0 35 0.9%e Import Tax 2 4 3 3 3 1 0 0 1 0 18 0.5%

Sub-total (A+B) 135 444 694 785 723 410 250 133 136 89 3,799 96.5%C. Interest during Construction 0 2 5 9 12 14 15 16 16 16 105 2.7%D. Commitment Charge 3 3 3 3 3 3 3 3 3 3 33 0.8%Total (A+B+C+D) 139 449 702 797 738 427 269 152 156 109 3,937 100.0%

(% to total) 4% 11% 18% 20% 19% 11% 7% 4% 4% 3% 100%

Item

4

7

3. Project componentsComponent 1: Preparatory work

Estimated cost: INR 0.49 million (0.01% of the grand total)

C1-1 Reorganisation of the Forest Department- Review of functions of Circles at HQ, District, Range, and Block levels- Reorganisation of functions and staff deployment particularly at district level to

strengthen coordination and decision-making functionsC1-2 Establishment of project implementation structure- Establishment of HPSC and registration of PMU as a society- Procurement of project management consultants

C1-3 Preparation of implementation manualC1-4 Development of annual work plan and budget

8

3. Project componentsComponent 2: Forest and biodiversity conservation (1)

Estimated cost: INR 357 million (9.1% of the grand total)Component Cost

(INRMillion)

% toSub-total

C2 Forest and biodiversity conservation 357 100%C2-1 Enhancement and management of forest and biodiversity

information base75 21%

- Update of topographical and land use map 38 11%- Inventory and monitoring of biodiversity 31 9%- Study of impacts of grazing and climate change in the

Himalayan ecosystem7 2%

C2-2 Enhancement of the basis for forest management andbiodiversity conservation

74 21%

- Redefinition of protected area boundaries and improvementof the protected area network

24 7%

- Management and conservation of flagship species habitats 25 7%- Enhancement of working plans and establishment of forest

management zones25 7%

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9


Current vegetation types:Biodiversity elements will be inventorized and monitored

Current zoning system:The system needs to be re-examined and redefined

Lachen R.

Dzongu R.

Lachung R.

Youksum R.Rabong R.

Soreng R.

Chungthang R.

Phodong R.

Gyalsing R.

Kyongnosla R.

Namchi R.

Mangan R.

Dentam R.Temi R.

Melli R.

Rongl i R.

Tashiding R.

Phadhamchen R.

Sombaria R.

Tumin R.

Ramipool R.

Pakyong R.Singtam R.

Gangtok R.

Lingmo R.

Pathing R.

Namthang R.

Ranipool R.

88°45'0"E88°30'0"E88°15'0"E88°0'0"E

28°0

'0"N

28°0

'0"N

27°4

5'0"

N

27°4

5'0"

N

27°3

0'0"

N

27°3

0'0"

N

27°1

5'0"

N

27°1

5'0"

N

27°0

'0"N

27°0

'0"N

0 5 10 15 20 25 302.5 km

.

Legend

Division boundaryRange boundaryBlock boundaryCompartment boundaryReserved Forests and Protected Areas

Protected AreasNational ParkNational Park Buffer ZoneWildlife Sanctuary

Lachen R.

Dzongu R.

Lachung R.

Youksum R.Rabong R.

Soreng R.

Chungthang R.

Phodong R.

Gyalsing R.

Kyongnosla R.

Namchi R.

Mangan R.

Dentam R.Temi R.

Melli R.

Rongl i R.

Tashiding R.

Phadhamchen R.

Sombaria R.

Tumin R.

Ramipool R.

Pakyong R.Singtam R.

Gangtok R.

Lingmo R.

Pathing R.

Namthang R.

Ranipool R.

88°45'0"E88°30'0"E88°15'0"E88°0'0"E

28°0

'0"N

28°0

'0"N

27°4

5'0"

N

27°4

5'0"

N

27°3

0'0"

N

27°3

0'0"

N

27°1

5'0"

N

27°1

5'0"

N

27°0

'0"N

27°0

'0"N

0 5 10 15 20 25 302.5 km

.

Legend

Division boundaryRange boundaryBlock boundaryCompartment boundary

Protected AreasNational ParkNational Park Buffer ZoneWildl ife Sanctuary

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Image of Sikkim Biodiversity Center

Component Cost(INR

Million)

% toSub-total

C2-3 Facilitation of inscription process of KhangchendzongaBiosphere Reserve on the World Heritage List

2 1%

- Facilitation of inscription process of KhangchendzongaBiosphere Reserve on the World Heritage List

2 1%

C2-4 Ex-situ conservation and promotion of biodiversityconservation

206 58%

- Ex-situ conservation of biodiversity 167 47%- Knowledge generation and dissemination of biodiversity and

best practice information20 6%

- Promotion of biodiversity conservation in religious areas 19 5%

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3. Project componentsComponent 3: Ecotourism (1)

Total estimated cost: INR 1,150 million (29.2% of the grand total)Component Cost

(INRMillion)

% toSub-total

C3 Ecotourism 1,150 100%C3-1 Formulation of a policy and regulatory environment for

ecotourism4 0%

- Formulation of an ecotourism policy 2 0%- Improving tourism operating conditions in Sikkim 2 0%

C3-2 Ecotourism marketing 299 26%- Establishing Ecotourism Marketing Cell 5 0%- Formulation and implementation of a marketing strategy 286 25%- Selection of a funding scheme to finance subsequent

marketing strategies- Creating links between tour operators and local communities

offering tourism services9 1%

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Structure of Ecotourism Marketing Cell within PMU

Chief Executive

Accountant Administrative assistant

Product, sales, and advertising manager

Marketing, events, and festivals

manager

Assistant Assistant

7

13


Component Cost(INR

Million)

% toSub-total

C3-3 Development of ecotourism areas with respect to specificmarket segments

639 56%

- Construction and management of high-end ecolodges 424 37%- Development of trekking routes 141 12%- Development of mountain bike trails 60 5%- Development of rock climbing areas 5 0%- Development of wildlife-watching areas 9 1%

C3-4 Development of tourist facilities 145 13%- Construction of interpretation centres and renovation of forest

rest houses (FRHs)145 13%

C3-5 Introduction of solid waste management at tourism areaslinked to the priority villages

37 3%

- Comprehensive study for baseline information on solid wastemanagement

1 0%

- Operating solid waste management functions 36 3%C3-6 Establishment of Ecotourism Development Corporation 25 2%

- Establishment of Ecotourism Development Corporation 25 2%

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²¶

²¶²¶

²¶

QR1

QR4

QR3QR5

QR2

Okhray areaAritar area

Hee Goan area

Upper Dzongu area

88°45'0"E88°30'0"E88°15'0"E88°0'0"E

28°0

'0"N

28°0

'0"N

27°4

5'0"

N

27°4

5'0"

N

27°3

0'0"

N

27°3

0'0"

N

27°1

5'0"

N

27°1

5'0"

N

27°0

'0"N

27°0

'0"N

0 5 10 15 20 25 302.5 km

.

Legend

Protected and Managed AreasNational ParkNational Park Buffer ZoneWildlife SanctuaryForest compartment areas

²¶ Proposed location of ecolodges

Treckking rutes proposed①Uttaray-Singelila Trek②Lingee-Sokpay-Bhaley Dunga Trek③Tholung-Kisong Eco Trek④Yumthang-Yumesamdong Lachen Trek⑤Green Lake Trek

Proposed locations of ecolodges andtrekking routes for development

FRONT ELEVATION

ECO - FRIENDLY LODGE

D2D

2

D2

D2

D 2

D2

D2

D2D2D3

D3D3

D2

D2 D3

D3 D 3

D2

D2

D2

D3 D 3 D3 D3 D3 D3

W1 W 1 W 1 W1

W1

W 2 W2

W2

W2

W 2W

2

V1 V 1

W 3

W1

W1

W2

W2

W 2W

2

V1V1

W 3

W1

W1

W 1

W1

W1

W3

W3

V1

V1

REC EPTI ON CUM LOB BY44'0" x 30'0"

SIT OUT SPACE1985 Sq ft.

SHOW-R OOM15'0" x 15'0"

SHOW-R OOM15'0" x 14'6"

RS

RS

SHOW-R OOM15'0" x 15'0"

SHOW-R OOM15'0" x 14'6"

RS

RS

4'

6' 6' 6'

5' 5'

WASH ROOM(LADI ES)20'0" x 11'9"

4'

6'6'6'

5'5'

WASH ROOM(GENTS )20'0" x 11'9"

URINAL

ENTRY EXIT

A sample drawing of ecolodge

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3. Project componentsA proposed site for ecolodge development in Dzongu, North Sikkim

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3. Project componentsComponent 4: JFM and biodiversity conservation (1)

Total estimated cost: INR 389 million (9.9% of the grand total)

Component Cost(INR

Million)

% toSub-total

C4 Joint forest management 389 100%C4-1 Preparation work 4 1%

- Preparation of JFMC/EDC/PSS management manual 2 1%- Marketing study 2 1%- Formation of district facilitation teams 0 0%

C4-2 Establishment of committees for joint forest managementand biodiversity conservation

78 20%

- Selection of villages for JFMC/EDC/PSS activities- Establishment of committees and planning of activities 24 6%- Entry point activities 54 14%

C4-3 Forest management and biodiversity conservationactivities

244 63%

- Forest management and biodiversity conservation 239 61%- Action research on sustainable use of forest resources 4 1%

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17


Component Cost(INR

Million)

% toSub-total

C4-4 Income generation activities 22 6%- Formation of self help groups- Microfinance 22 6%

C4-5 Capacity development 42 11%- Training on management of JFMCs, EDCs and PSS's 2 1%- Technical training on forest management and biodiversity

conservation11 3%

- Training on business management 4 1%- Skills development training on IGAs 9 2%- Exposure visits 4 1%- Training on ecotourism 12 3%

C4-6 Monitoring- Monitoring

C4-7 Village Development Fund- Village Development Fund

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Year 1Total

invervention/ village

1st 225

2nd 225

3rd 225

4th 225

Annualintervention/

village45 900

Intervention schedule and number of target villages by batch

180 135

6 7 8

45 SEVs

45 SEVs

4 5 9

9045 135 180

2 3

90

45 IIVs

45 SEVs

Note: IIV – Initial Intervention Village; SEV – Spread Effect VillageConceptual diagram of the cluster approach

Village 5

Village 6

Village 7

Village 8

Village 10

Village 9

Village 1 IIV

Village 2 SEV

Village 3 SEV

Village 4 SEV

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3. Project componentsComponent 5: Organisational strengthening of FD (1)

Estimated cost: INR 636 million (80% JICA and 20% GoI) (16.2% of the grand total)

Component Cost(INR

Million)

% toSub-total

C5 Organisational strengthening of the Forest Department 636 100%C5-1 Improvements of infrastructure and equipment 340 53%

- Development of infrastructure and equipment improvementplan

1 0%

- Construction and renovation of offices and residences 269 42%- Procurement of equipment 71 11%

C5-2 Training of the Forest Department officers and frontlinestaff members

34 5%

- Biodiversity management 20 3%- Forest management 13 2%- Ecotourism 1 0%- Monitoring and evaluation 1 0%

C5-3 Establishment of sustainable finance mechanism- Establishment of sustainable finance mechanism

C5-4 Project Management Unit 262 41%- Project Management Unit 262 41%

20

3. Project componentsComponent 5: Organisational strengthening of FD (2)

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!.Yaksam

Lachen R.

Dzongu R.

Lachung R.

Youksum R. Rabong R.

Soreng R.

Chungthang R.

Phodong R.

Gyalsing R.

Melli R.

Kyongnosl a R.

Namchi R.

Mangan R.

Dentam R.

Phadhamchen R.

Temi R.

Ramipool R.

Pakyong R.Rongli R.

Tashiding R.

Sombaria R.

Tumin R.

Singtam R.

Gangtok R.

Lingmo R.

Pathing R.

Namthang R.

Ranipool R.

NORTH DIVISION

WEST DIVISION

EAST DIVISION

SOUTH DIVISION

88°45'0"E

88°45'0"E

88°30'0"E

88°30'0"E

88°15'0"E

88°15'0"E

88°0'0"E

88°0'0"E

28°0

'0"N

28°0

'0"N

27°4

5'0"

N

27°4

5'0"

N

27°3

0'0"

N

27°3

0'0"

N

27°1

5'0"

N

27°1

5'0"

N

27°0

'0"N

27°0

'0"N

0 5 10 15 202.5 km

.

Legend

FD Division Bo undaryFD Range BoundaryFD Block Boun daryForest Compartment areas

Locatio n of of fices/quarters upgrade requ ested

\ HQ

") Divis ion Of fice

"/ Sub-Divi sion Office

!. Range Offic e

!( Block Off ice

Locations of offices/quarters upgrade requested

Locations of offices/quarters that have Proposed infrastructure developmentrequested upgrading

Office renovationOffice (large)Office (small)Check postTransportationComputer setCommunicationFire fightingEq

uipm

ent

Bui

ldin

gs

11

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3. Project componentsComponent 6: Consultancy services (1)

Total estimated cost: INR 248 million (6.3% of the grand total)

Construction SeasonGrand total (I + II + III) 21 1,281Tot al (I + II) 13 369I. International consultant 5 102

1. Team Leader/Participatory Forest Manage ment Specialist 1 342. Biodiver sity Management Specialist 1 213. GIS and Forest Manage ment Specialist 1 134. Ecotourism Specialist (International Market) 1 215. Impact Assessment and M&E Specialist 1 13

II. National consultant 8 267

1. Co-team Leader/Joint Forest M anagement Specialist 1 772. Institutional Development Specialist 1 183. Protected Area M anagement Specialist 1 344. GIS and Infor mation Technology Specialist 1 315. Ecotourism Specialist (National Market) 1 346. Design and Construction Quality Control Specialist 1 287. Monitoring and Evaluation Specialist 1 178. Tra ining Coordinator 1 28

III. Support staff 8 9121. Administrative Manager 1 1142. Accounts Manager 1 1143. Office Assistant/Photocopier Opera tor 3 3424. Driver 3 342

Q3

Q4

Q3

Q4

Q1

Q2

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

FY08 FY09 FY10PM

Q1

Q2

Q3

Q4

Q1

Q2

Schedule of consultancy service and person-months

Consultants and support sta ffNo. ofperson

FY01 FY02 FY03 FY04 FY05 FY06 FY07

22

4. Implementation arrangementsProject implementation structure

Project Management Unit (PMU)

High Power Steering Committee

Project Governing Body

Project Executive Body Headquarters

Circles

Forest Department

Project Director

Thematic Staff

Admin. Officers

Technical Advisory

Group

Ecotourism Marketing

Cell

District Advisory

Committee

Division(4)

District Facilitation Unit (4)

Range Supporting Unit (27)

Range(27)

Sikkim Biodiversity

Centre

Principal Chief Conservator of Forests (PCCF)

Ecotourism Development Corporation

12

23

Yearsfrom

planting

Area (ha)1

(a)

Standing stock of stem per ha

(m3)2

(b)

Total standing volume of stem

(m3)

(c = a x b)

Total living biomass (m3)3

(d = c x BEF x [1+R]) 4

Cumulative greenhouse gas

sequestration (ton CO2

equivalent)(e = d x WD x CF x CO2/C) 5

25 2,160 42.47 91,735 183,653 195,285 30 2,160 70.77 152,863 306,032 325,414 35 2,160 109.72 236,995 418,059 444,536 40 2,160 169.90 366,984 637,084 677,433 45 2,160 212.37 458,719 796,336 846,771 50 2,160 240.70 519,912 902,567 959,730 55 2,160 265.47 573,415 995,448 1,058,494

5. Evaluation of project planSensitivity analysis of EIRR

Cost increment Reduction of benefitBase case (0%) -10% -20%

Base case (0%) 15.59% 12.58% 10.01%+10% 12.88% 10.50% 8.37%+20% 10.91% 8.92% 7.06%

Estimated greenhouse gas sequestration by forests developed by the Project

Thank you for your attention

Documents

Preparatory Study on Integrated Project for Sustainable