PRIVATE FORESTRY PROGRAMME · Table 7 Teak TGIS OSP plantations established in ... Tanzania’s Private Forestry Programme ... To increase the cultivation of high-quality trees and

QUARTERLY REPORT January - March 2015

United Republic of TanzaniaMINISTRY OF NATURAL RESOURCES AND TOURISM

Forestry and Beekeeping

PRIVATE FORESTRY PROGRAMME

Private Forestry Programme – Panda Miti Kibiashara

Phase I: 2014 - 2017

Quarterly Report, January - March 2015

29 May, 2015

TABLE OF CONTENTS

PROGRAMME FACT SHEET 11. SUMMARY 22. PROGRESS DURING THE REPORTING PERIOD 3

2.1 Component 1: Enabling Environment 32.2 Component 2: Human Resource Development 42.3 Component 3: Land-Use Planning 82.4 Component 4: Support for Tree Growers’ Associations 92.5 Component 5: Income-Generating Activities 102.6 Component 6: Tree-Growing Incentives Schemes 122.7 Component 7: Programme Management and Administration 15

3. CROSSCUTTING OBJECTIVES 173.1 Promote Gender Equality 173.2 Reduce Inequality of All Kinds 173.3 Strengthen Climate Sustainability 18

4. RISKS AND OPPORTUNITIES UPDATE 194.1 Risks 194.2 Opportunities 21

5. FINDINGS AND RECOMMENDATIONS 23ANNEX 1: BUDGET FOLLOW UP 24ANNEX 2: RESULT-BASED FRAMEWORK WORK PLAN WITH SITUATION

UPDATES FROM JANUARY-MARCH 2015 30

LIST OF TABLES

Table 1 Forestry tasks proposed to the TAC of the VETA 7Table 2 Wood-processing tasks proposed to the TAC of the VETA 7Table 3 Populations of villages with PFP-supported VLUPs 9Table 4 Land allocation according to PFP-supported VLUPs 9Table 5 IGA projects implemented during the pilot year 11Table 6 Plantations established under TGIS 14Table 7 Teak TGIS OSP plantations established in Kilombero District 14Table 8 Plantations established for the poor and vulnerable 14Table 9 Days worked by PFP staff during the reporting period 16Table 10 Risks identified during the reporting period 21

LIST OF FIGURES

Figure 1 Forest industry leaders visiting FITI in Moshi 3Figure 2 Group photo from the validation workshop 5Figure 3 Task forces working during the curriculum development

workshop in Moshi 6Figure 4 Some members of the curriculum development workshop 8Figure 5 A map of a PFP-facilitated VLUP in the village of Mgala 8Figure 6 Group photo from the TGIS/IGA tour in Kifanya 10Figure 7 IGA bean farmer in the village of Mavanga in Ludewa 11Figure 8 TGA members discussing plantation issues at a recently planted

site in the village of Lusala 12Figure 9 Newly planted pine tree at a properly prepared site in Ngalanga

village 13Figure 10 Average area of plantation per beneficiary in the TGIS pilot

villages during the planting season of 2014/15 15Figure 11 A truck stuck on a muddy road 20

ABBREVIATIONS

FDT Forestry Development TrustFIS Forest information systemFITI Forest Industries Training Institute – MoshiFTI Forestry Training Institute – Olmotonyi ArushaFY Financial yearGIS Geographic information systemGPS Global positioning systemIGA Income-generating activityIT Information technologyMFA Ministry for Foreign Affairs of FinlandMNRT Ministry of Natural Resources and TourismMoU Memorandum of understandingNGO Non-governmental organistionOSP Outgrower Support ProgrammePFP Private Forestry ProgrammePPP Public-private partnershipSMEs Small and medium enterprisesSP Service providerSPGS Sawlog Production Grant SchemeTAC Trade advisory committeeTASAF Tanzanian Social Action FundTFS Tanzanian Forest ServiceTGIS Tree-Growing Incentive SchemeTGA Tree growers’ associationTTSA Tanzania Tree Seed AgencyVETA Vocational Educational and Training AuthorityVLUP Village land-use plan

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PROGRAMME FACT SHEET

Tanzania’s Private Forestry Programme (PFP)—Panda Miti Kibiashara in the vernacular— aims to in-crease rural income and reduce poverty and inequality in the southern highland by developing a sus-tainable form of plantation forestry and adding value to each step in the entire production chain fromplanting quality seeds to delivering quality products to markets, all the while creating employment.

The reasons for supporting private plantation forestry in Tanzania include the following:1. Tanzania is one of the few countries in the world that has both the climate and soil characteris-

tics conducive to tree plantation. It could replicate success stories from elsewhere in the worldin order to ensure the viability of its own forest plantation investments.

2. There is currently a great momentum among small-, medium and large-scale tree growers inthe southern highlands to expand the area under forest plantation as plantation development isan already strongly emerging movement.

3. Both plantation forestry and the processing of plantation wood are financially sustainable if donein a proper way.

4. Private plantations and value-added production can have positive economic, social and envi-ronmental impacts at the local and national levels.

5. Private plantation forestry can generate economic growth and employment in rural areas andthereby has much potential for reducing poverty.

The PFP has a long-term vision: it will be implemented for a total of 16 years in four four-year phases.The key features of the first phase of the programme (2014-2017) are presented in the following table:

The programme will promote the cultivation of high-quality trees. It will ensure that quality by ensuringthat the best possible seeds are used in seedling production and that the best practices in silvicultureare implemented in a timely manner. It will also promote income-generating activities that can be sus-tained and that give value for the resources they use. These activities will provide tree growers withcash during the period between when trees are planted to when plantation products are harvested.

Overall objective To increase rural income in the programme area by intensifying private plantationforestry and its related value chains from seeds to markets while ensuring thatland use is sustainable.

Purpose of Phase I (2014-2017)

To increase the cultivation of high-quality trees and strengthen private plantation-based value chains developed in the programme area

Funding frame MFA Finland EUR 19,493,376Government of Tanzania EUR 985,950 (5% of total budget)

Key stakeholders - Ministry of Natural Resources and Tourism / Tanzania- Ministry for Foreign Affairs / Finland- Steering committee members- Tree-growers’ associations (TGAs)

Technical assistance con-sultant

Indufor Ltd. and Niras Finland

Programme componentsand targeted results forPhase I

Component 1: Enabling environment (100% of seeds used are high-quality)Component 2: Human resource development / (75% of trainees perform well)Component 3: Land-use planning (60 new TGAs established)Component 4: Support to TGAs (less than 4% of plantation lost to fire per year)Component 5: Income-generating activities (50% of businesses started survive)Component 6:Tree-growing incentive scheme (15,000 ha planted)

Geographical area Districts of Njombe, Makete, Ludewa, Kilombero, Mufindi and Kilolo in the south-ern highlands

Key beneficiaries Private tree growers and wood-processing small- and medium enterprises(SMEs) in the target districts, especially those that belong to a TGA.

Human rights and cross-cutting objectives

The programme will strengthen the rights of vulnerable groups by engaging themin the land-use planning process and by promoting income-generating activities(IGAs).To ensure environmental sustainability, the programme will integrate biodiversityconservation into land-use planning and improve the management of biodiversityin plantation development.

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1. SUMMARY

This progress report presents the progress achieved by the PFP during the third quarter(January-March) of its first financial year (FY), 2014/15. It is based on the approvedwork plan of the programme for the first financial year. Chapter 2 presents progressduring the period by highlighting the achievement of and deviation from targets. Moredetailed information is found in the annexed results-based work plan, which also in-cludes a situation update and a traffic light indication of whether or not the result-leveltarget is expected to be achieved.

The highlights of the reporting period are as follows:

1. The PFP established approximately 1,005 ha of tree plantations in the southernhighlands and the Kilombero valley, thereby achieving its target for the firstplanting season. Some 880 ha were established through the in-kind Tree-Grow-ing Incentive Scheme (TGIS) of the PFP and the remaining 125 ha were estab-lished under the TGIS Outgrower Support Programme (OSP), which was chan-nelled through Kilombero Valley Teak Company. Altogether, approximately 550ha of pine species, 330 ha of eucalyptus species, and 125 hectares of teakwere planted.

2. The programme supported a total of 174 IGAs: ten individuals received trainingand seedlings to grow avocadoes and 164 received training, seeds, and ferti-lizers to grow beans.

3. In early March, the Programme held a validation workshop with its stakeholdersto verify the findings of a pre-feasibility study on the re-establishment of Sao HillTraining Centre. The findings of the consultant’s report were well supported bythe stakeholders in attendance, including some high-level government repre-sentatives, and the programme was given a mandate to continue with its cur-riculum development work. The curriculum workshop for developing forestryand wood-processing curricula for levels 1, 2 and 3 of Vocational Educationaland Training Authority (VETA). The workshop was very successful and, in theend, the charts produced, including the units to be taught in the curricula, weresent to the VETA for evaluation.

Overall, the reporting period was a very busy one for all components of the programme,and most of the targets set for FY 2014/15 are within reach. The PFP is currently con-tinuing its work after evaluating its processes using “lessons learnt” exercises and eval-uations in order to be even more efficient and more transparent to beneficiaries duringthe next quarter.

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2. PROGRESS DURING THE REPORTING PERIOD

2.1 Component 1: Enabling Environment

The implementation of some activities of Component 1 was delayed by the fact that theleader of the component assumed the position of acting director of the programme, butnone of these delays were significant enough to have affected the reaching of the com-ponent’s targets.

Meetings were scheduled with district councils in order to establish a thematic nationalmulti-stakeholder forum and thereby address the forest sector’s bottlenecks. The meet-ings will take place when the new team leader of the programme has been mobilised.

The programme is collaborating with the Forestry Development Trust (FDT) to improvetrees and the collaborators have agreed on the two tree species they will concentratetheir efforts: Pinus maximinoi and Pinus tecunumanii. In addition, the programme par-ticipated in a meeting in which a task force for tree improvement was formed; it wasappointed as a member.

The programme has established a total of 43 ha of seed production stands in two vil-lages: there are now 11 and 10 ha of Pinus maximinoi and 11 ha each of Pinus tecunu-manii in the villages of Idete and Mgololo village. The Tanzania Tree Seed Agency(TSSA) has not yet provided the programme with a report on its survey of the existinggermplasm of Tectona grandis conducted in November/December 2014. A survey ofPinus patula has yet to be conducted.

The seeds needed for next year’s planting were ordered from TTSA.

The programme joined the Central American and Mexico Coniferous Resources Coop-erative in 2014. The membership fee for this year has not been paid yet, pending adiscussion and critical evaluation of the true benefits of membership to be held duringthe next meeting of the steering committee.

Figure 1 Forest industry leaders visiting FITI in Moshi

A consultant (WEMA Consulting) for the programme’s planned socio-economic baselinestudy was selected during the reporting period and is currently carrying out that study.The report will be available in May.

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The programme’s planned environmental studies, including a biodiversity survey andenvironmental impact assessment, will be carried out by an environmental workinggroup consisting of environmental non-governmental organisations (NGOs) and institu-tions as well as other relevant stakeholders. This approach to environmental issuesneeds to be discussed with the steering committee of the programme.

No forest information system (FIS) has yet been established though the programme hasselected a short-term consultant to provide guidance on the most suitable system. AnFIS with a linked database designed for monitoring will be established during the begin-ning of FY 2015/16. Geographic information system (GIS) data for the FIS is being col-lected and in the meanwhile maps are produced for staff upon request.

The development of technical guidelines has been delayed due to the tight schedule ofthe planting season of FY 2014/15. These guidelines need to written in cooperation withComponent 4. The technical guidelines for the first planting season were mostly com-municated to beneficiaries through the programme’s guidelines for TGIS and IGAs.

In January, at the start of the planting season, a radio advertisement was aired 30 timesby the local FM radio station Mlimani Radio FM, which also aired a programme on treeplanting. The programme website is updated and improved regularly. The programmeorganised a comprehensive video-show tour for the 11 villages in which it operatedduring the first planting season and held awareness-raising meetings in each. In addi-tion, a documentary film crew from the Tanzania Broadcasting Corporation filmed thefirst part of a documentary film which will be completed after the first year of field oper-ations.

A contest among the best programme-supported plantations will be conducted in coop-eration with Component 4. It has been proposed that the top three plantations in eachvillage will receive prizes consisting of essential tools such as pangas and hoes as wellas rakes, gumboots and raingear and that all successful tree growers will receive pro-gramme t-shirts and caps.

The programme produced 2,500 calendars to be distributed to stakeholders and drafteda brochure about the programme’s two incentive schemes, TGIS and IGAs. The finalprinting has been postponed so that lessons learned during the first planting seasoncan be included. A newsletter was published, translated and distributed. The pro-gramme has identified a local service provider (SP) who can translate publications andother documents upon request.

Video shows have proved to be such a valuable method of communication that theprogramme’s communications team proposes the programme purchase its own equip-ment instead of relying on that of the Tanzanian Forest Service (TFS) as it did duringthe first season.

2.2 Component 2: Human Resource Development

Component 2 spent the January-March quarter intensively working on a pre-feasibilitystudy of the re-establishment of the Sao Hill Training Centre, a validation workshop ofthat study, and the development of curricula for VETA levels 1, 2 and 3 of forestry andwood-processing.

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Figure 2 Group photo from the validation workshop

A draft of this study was presented to the programme steering committee in February2015, which requested that it be discussed by stakeholders at a validation workshop.That workshop was held in Iringa on 10 March. Participants agreed that the Sao HillTraining Centre would not be re-established but adopted the consultant’s proposal thata management centre for delivering training in forestry and wood-processing training inthe southern highlands. They issued the following seven declarations:

1. A management centre offering VETA 1-, 2-, and 3-level training in forestry andwood processing will be established in the southern highlands.

2. Training will include on-site and on-campus training.3. A public-private partnership (PPP) consisting of industries, tree growers, donors

and the government will be formed to deliver that training.4. The PPP will be managed by a board of directors which consists of government

and stakeholder representatives.5. Training will be organised in cooperation with the Forestry Training Institute

(FTI), Forest Industries Training Institute (FITI), VETA centres, and other SPthat provide training.

6. The management centre will be managed by a coordinator employed by thePPP and located in the southern highlands.

7. The Ministry of Natural Resources and Tourism (MNRT) will facilitate the mobi-lisation and establishment of the PPP through the PFP.

After the validation workshop, Component 2 set out to develop the curricula specified atthe workshop. Task forces were formed and work started immediately with assistancefrom VETA, FTI, FITI and two international consultants. The outputs of the curriculumdevelopment workshops are presented in Tables 1 and 2 in the form of tasks successfultrainees should be able to complete after training. These tasks were sent as parts ofdevelop–a-curriculum charts to the trade advisory committee of VETA for evaluation. Itsinitial feedback was very positive but its final comments have not yet been received.

In addition to developing national-level education, the component has designed a self-development plan template for PFP staff. It has been agreed that staff members canapply for trainings only if they have approved self-development plans. Such plans arevoluntary and can be submitted at any time. Training based on these plans has alreadybeen approved.

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Figure 3 Task forces working during the curriculum development work-shop in Moshi

During the reporting period the component selected a consultant (FORCONSULT) toprepare a report that identifies SPs that can provide training and which analyses trainingneeds. The consultant is in the process of collecting data and will finalise its report bythe end of FY 2014/15. The slight delay in identifying local and other SPs will likely delaythe start of training until the beginning of FY 2015/16.

A structure for short and long-term training plans has been designed. The finalisation ofthe plans needs inputs from various on-going activities such as curriculum development,training needs assessments of SPs and NGOs, and PFP self-development plans.

Manuals and other materials have not yet been produced. Terms of reference for pre-paring human rights-based approach and crosscutting objectives training material arebeing prepared and a SP will be selected soon for developing material. Governmentalinstitutions capable of assisting in developing the training materials will be engagedthrough memorandums of understanding.

This reporting period, the programme supported the Tanzanian forestry training institu-tions FTI and FITI by building their capacity during the VETA curriculum developmentprocesses.

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Table 1 Forestry tasks proposed to the TAC of the VETA

Level 1 Level 2 Level 31. Maintain work safety2. Handle accidents and

incidents3. Perform first aid4. Prepare nursery site5. Prepare forest land6. Protect trees7. Prune trees8. Detect forest fires9. Fell, de-limb and cross

cut trees (basic)10. Maintain chainsaws

1. Conduct preventivemaintenance of foresttools

2. Prepare nursery materi-als

3. Tend seedlings4. Handle and transport

seedlings5. Plant trees6. Prevent forest fires7. Handle forest fire acci-

dents8. Fight forest fires9. Navigate in the forest

1. Conduct preventivemaintenance of forestmachines and equip-ment

2. Perform site selectionand layout of nursery

3. Source seeds4. Establish seedlings5. Control forest pests and

diseases6. Perform thinning7. Rehabilitate track, quar-

ries and landing8. Comply with soil and

water protection9. Conduct elementary for-

est inventory10. Conduct elementary for-

est survey11. Mobilise communities12. Create IGAs13. Manage conflicts

Table 2 Wood-processing tasks proposed to the TAC of the VETA

Level 1 Level 2 Level 31. Maintain work safety2. Handle accidents and

incidents3. Handle forest fire acci-

dents4. Perform first aid5. Conduct preventive

maintenance of tools6. Fell, de-limb and cross

cut trees (basic)7. Maintain chainsaws8. Sort logs9. Operate a sawmill

(basic)10. Re-saw timber11. Treat timber for blue

stain12. Debark and de-branch

logs

1. Conduct preventivemaintenance of forestand mill machines andequipment

2. Fell, de-limb and crosscut trees (intermediate)

3. Cross cut timber4. Sort and store green

timber5. Measure logs6. Classify logs

1. Execute forest harvest-ing

2. Operate a sawmill (ad-vanced)

3. Warehouse timber4. Maintain saw mills5. Receive, measure, clas-

sify and prepare timberand poles for preserva-tion

6. Prepare timber andpoles for treatment

7. Recognise preservationmethods to be used

8. Preserve timber andpoles

9. Handle treated timberand poles

10. Store and dispose ofchemicals and residues

11. Price timber for sale12. Provide customer ser-

vice

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Figure 4 Some members of the curriculum development workshop

2.3 Component 3: Land-Use Planning

At the end of FY 2014, the Land-Use Planning Component of the programme workedintensively on village and-use plans (VLUPs) for the planting season of 2014/15. TheVLUPs cover a total of 246,130.41 ha and a population of 16,264. On average, eachVLUP reserved 6.89 ha per household for food production and protected 19.06% of thetotal land area in response to environmental and biodiversity concerns.

Figure 5 A map of a PFP-facilitated VLUP in the village of Mgala

During the VLUP processes of the previous year (2014), the 11 pilot villages and thePFP team identified a total of 30.6 ha to be planted with indigenous tree species as anenvironmental rehabilitation measure. This rehabilitation will take place during the nextplanting season.

Village border

Road

River

Contour

Village office

Primary school

Residence area

Primary school land

Land for dispensary

Secondary school

Land for church

Land for market

Burial land

Agriculture

Agriculture and forest

Natural forest

Village forest

Community forest

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The Tanzanian Social Action Fund (TASAF) is currently working in the field in order toidentify vulnerable households for the programme. A consultant (WEMA) is also carry-ing out a wealth ranking in the programme area. The latter’s report is due in early May.

The terms of reference for a SP for conducting awareness-raising regarding land rightsand VLUPs in Kilolo, Mufindi and Kilombero have been prepared and submitted for ap-proval. Possible SPs have been identified and hiring is to be done soon.

As part of VLUP preparations, topographic sheets for preparing VLUPs were procuredfor the pilot year villages. Similar sheets will be procured for whatever new villages writeVLUPs, too. The GIS expert of the programme is still investigating the possibility of usingsatellite imagery to prepare VLUPs.

The planned programme activities to build the capacity of tree growers in land registra-tion and titling have been slightly delayed. This capacity-building will take place duringthe April-June quarter and be conducted by as yet to be selected SP.

Table 3 Populations of villages with PFP-supported VLUPs

Location PopulationVillage District Total %-female Households Total/householdKifanya Njombe TC* 4,138 53.17 1,032 4.01Mavanga Ludewa 3,342 51.50 792 4.22Itambo Njombe DC 1,785 50.64 250 7.14Ngalanga Njombe TC 1,513 52.48 427 3.54Utilili Ludewa 1,457 55.11 324 4.50Ikang'asi Njombe DC 1,148 54.44 268 4.28Ng'elamo Njombe TC 876 54.68 175 5.01Iboya Njombe TC 701 53.64 215 3.26Usagatikwa Makete 497 55.33 165 3.01Ikete Makete 432 56.25 108 4.00Mgala Njombe TC 375 52.00 98 3.83

Total 16,264 52.97 3,854 4.22*TC = town council; DC = district council

Table 4 Land allocation according to PFP-supported VLUPs

Location Land (hectares)Village District Total Food prod. TGA Vulnerable ProtectedIkang'asi Njombe DC* 75,733.69 14,917.66 223.73 25.00 43,533.49Kifanya Njombe TC 54,411.53 26,519.01 500.00 50.00Itambo Njombe DC 25,225.00 23,619.91 327.02 468.95Mgala Njombe TC 21,969.00 3,235.58 2,767.17Ngalanga Njombe TC 21,622.15 17,302.83 1,546.62 41.51 22.97Mavanga Ludewa 13,526.09 8,392.12 538.48 21.49Utilili Ludewa 9,873.33 7,915.55 544.69 5.90Iboya Njombe TC 8,363.75 5,026.24 103.20 20.00 3.48Ng'elamo Njombe TC 7,329.19 1,389.34 313.00Ikete Makete 5,485.69 1,621.62 215.32 25.00 55.31Usagatikwa Makete 2,590.98 2,149.65 92.27 24.65 26.40

Total 246,130.41 112,089.51 4,404.33 186.16 46,905.16*TC = town council; DC = district council

2.4 Component 4: Support for Tree Growers’ Associations

The formal registration of the TGA apex body has not yet been finalised. Preparationsfor a strategic plan for the apex body have started and the elements of the strategic planhave been discussed, but no draft has been produced. The chairman of SHIVIMITA(the federation of sawmillers in Tanzania) took part in the discussion so that the strategicplan would contain items that the forest industry sees as beneficial. The apex body hashad some resource problems as its chairman is involved in many activities. Togetherwith the programme, a solution to this problem will be sought. At the moment, it appearsthat an SP needs to be assigned to assist the apex body in its tasks.

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Under the IGA component, a tour around all PFP target villages was carried out in Feb-ruary. Programme staff met TGA members to discuss important issues related to bothTGA administration and plantation techniques. The main message delivered about TGAadministration was that a village should have only one TGA. Size matters as the mainpurpose of having a TGA is to increase strength by working together. A few villageshave more than one TGA, but the members of the different TGAs, after having heardthe benefits of having only one TGA, are now working on merging. Technical plantationmanagement issues were discussed and extension officers continued to make adjust-ments in the field.

Figure 6 Group photo from the TGIS/IGA tour in Kifanya

One demonstration plot of good plantation establishment practises was established inthe village of Lusala. There was some reluctance among villagers to establish demon-stration plots as people were suspicious that this land would be lost to outsiders. Thesuccessful completion of planting has changed the situation and there is now a goodlevel of trust that the programme is genuinely providing support. Investigations into find-ing suitable demonstration plot locations are still under way.

TGIS supports the expansion of the area covered by TGAs in the target villages. Exten-sion officers have been permanently positioned in the programme’s target villages. Theyprovide on-the-job training and extension services to people involved in planting on adaily basis. They supervise the various activities of the programme daily and have in-spected the quality of work at each milestone of the TGIS. These milestones are pro-vided in the TGIS guidelines.

2.5 Component 5: Income-Generating Activities

During this reporting period, the IGA Component implemented approved IGAs in thefield. The programme met potato experts from the Agricultural Research Institute (ARI)in Uyole to investigate the possibilities of using intensified potato cultivation as an IGA.A survey for identifying beneficiaries in the villages from each wealth rank is currentlybeing carried out by the consultant (WEMA) carrying out the programme’s socio-eco-nomic baseline study.

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Figure 7 IGA bean farmer in the village of Mavanga in Ludewa

Table 5 IGA projects implemented during the pilot year

Location Beans AvocadoVillage District Projects Females* Projects Females*Lusala Ludewa 47 8 - -Mavanga Ludewa 53 21 - -Usagatikwa Makete 2 - 1 -Ikang'asi Njombe DC 9 3 - -Itambo Njombe DC 7 2 - -Matembwe Njombe DC 1 - - -Iboya Njombe TC 11 7 5 2Kifanya Njombe TC 26 10 2 -Ng'elamo Njombe TC 8 5 2 1

Total 164 56 10 3*The lead applicant of the project is female

Awareness about IGAs was boosted in all of the pilot villages and programme extensionofficers provided services related to both avocado and bean cultivation. SME develop-ment and capacity-building have not yet been carried out mainly due to the cancellationof the programme’s large-scale IGA support, which had much do with SME support, andthe future establishment of Result Area 3, SME Development and Product Innovation.

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2.6 Component 6: Tree-Growing Incentives Schemes

During the reporting period two kinds of TGIS systems were piloted:

1. TGIS for individuals and organizations. These provided in-kind support to treegrowers if the minimum PFP quality standards were met.

2. TGIS for companies that have out-grower support programmes in place.

During the reporting period the main emphasis was on tree planting. Preparations forthe TGIS process were finalised only in November 2014, which meant that there waslittle time for proper site preparation and planting. The overall target of both TGIS sys-tems was to plant 1,000 ha.

Figure 8 TGA members discussing plantation issues at a recently plantedsite in the village of Lusala

Eleven pilot villages were selected for TGIS. In a few sites, chemical weeding was car-ried out as a preparatory step but because of seasonal rains, it was not possible toprepare in most sites. The main planting activities started in January and the last seed-lings were put into ground in the last week of March. The planting season was slightlyextended from the original plan due to the late start as well as favourable rains. Heavyrains in some villages hampered accessibility but the programme did not face any seri-ous problems endangering the achievement of its planting target.

The planting target for the 2014/15 season was 1,000 ha. The number of seedling de-liveries demonstrates that the target was met. Milestone checks were done and, aftersome corrections were made, all eleven sites passed inspection. More accurate infor-mation about the exact areas will be obtained later, after when all field data collectedwith global positioning system (GPS) units has been processed. The programme willassign a SP to carry out a plantation survival and quality assessment in April.

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Figure 9 Newly planted pine tree at a properly prepared site in Ngalangavillage

Kilombero Valley Teak Company applied for support for its out-grower scheme. Its tar-get with PFP support was to establish 125 ha of teak plantations with smallholders. Thetotal area established under the TGIS OSP was 124.59 ha. Milestone checks for sitepreparation and planting were carried out, and all areas passed.

In addition to its incentive schemes, the PFP established tree plantations for poor andvulnerable people in a number of villages. These plantations are to serve as a perma-nent source of income in the future so that the village government can effectively pursueits effort to take care of the poor and vulnerable. The original target was to plant 25 hain each of the 11 pilot villages (275 in total), but not every village had sufficient suitableland.

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Table 6 Plantations established under TGIS

Location Projects SeedlingsPine Eucalyptus

Village District Benefi-ciaries

Hec-tares

Amount % Amount %

Lusala Ludewa 98 110.65 120,154 98.14 2,280 1.86Mavanga Ludewa 91 50.60 52,926 94.06 3,340 5.94Usagatikwa Makete 13 10.20 11,925 100.00 0 0.00Ikang'asi Njombe DC 83 113.30 22,600 16.45 114,800 83.55Itambo Njombe DC 30 83.00 22,780 23.21 75,358 76.79Matembwe* Njombe DC 12 6.08 7,042 100.00 0 0.00Iboya Njombe TC 42 109.78 77,630 58.60 54,844 41.40Kifanya Njombe TC 56 132.40 92,206 58.55 65,268 41.45Mgala Njombe TC 19 68.80 54,300 67.04 26,700 32.96Ngalanga Njombe TC 36 158.82 151,000 81.66 33,924 18.34Ng'elamo Njombe TC 30 36.24 32,874 80.33 8,050 19.67

Total 510 879.87 645,437 62.66 384,564 37.34*Planting area verified with GPS

Table 7 Teak TGIS OSP plantations established in Kilombero District

Village Number of plots Hectares Hectares per plotIdete A 9 13.41 1.49Idete B 20 36.97 1.85Kisegesi 2 2.55 1.28Miwangani 1 3.40 3.40Kibaoni 1 1.29 1.29Kikwawila 1 1.04 1.04Lungongole B 2 2.46 1.23Kiberege 1 2.37 2.37Mkasu 2 2.73 1.37Sagamaganga 1 2.97 2.97Signali 2 1.96 0.98Ihanga 1 1.22 1.22Kihogosi 1 2.00 2.00Machipi 3 6.52 2.17Mchombe 2 3.22 1.61Ihanga 1 2.50 2.50Kining'ina 1 0.94 0.94Michenga 2 8.12 4.06Itongoa 12 27.52 2.29Mkangawalo 1 1.40 1.40Total 66 124.59 1.89

Table 8 Plantations established for the poor and vulnerable

Tree species (ha)Village P. patula P. tecunumanii E. grandis xurophylla TotalIboya 2.00 7.31 12.69 22.01Kifanya 4.17 - 3.83 8.00Ng’elamo 7.50 - 2.50 10.00Usagatikwa 8.33 - - 8.033Ikang’asi - - 7.08 7.08Total 22.00 7.31 26.11 55.43

Seedling production for the first year of planting operations was mostly successful. Onlythe Njombe Environmental Conservation Association had problems producing seed-lings meeting the requirements of the programme.

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Figure 10 Average area of plantation per beneficiary in the TGIS pilot vil-lages during the planting season of 2014/15

2.7 Component 7: Programme Management and Administration

The terms of reference for information technology (IT) support for the programme wereadvertised and two applications were received from SPs. It was noticed that it is quitedifficult to find IT SPs in Njombe.

The report on the inception phase of the programme was approved by the steeringcommittee in early February. The budget and work plan for the next year was not final-ised during the reporting period. That work is currently ongoing, and the work plan andthe budget will be presented to the steering committee in early June.

The Project Implementation Manual (PIM) received some comments from the new deskofficer of the Ministry for Foreign Affairs (MFA) of Finland, so it has not yet been final-ised. The programme document and logical framework are under revision and will bepresented to the steering committee in early June.

The planned staff work planning workshop and team-building exercises have not yetbeen organised. The PFP is waiting for its new team leader and the team-building ex-ercises should be organised only after he or she arrives.

16

Table 9 Days worked by PFP staff during the reporting period

Post Month Averageworking days

per month1 2 3

International TAProgramme Director 20 5 0 8.3Plantation Forestry Manager 19 20 24 21.0Financial Manager 0 0 0 0.0Capacity-Building Manager 13 20 0 11.0Junior Expert 21 20 20 20.3National TA 1 2 3 AveragePrivate Forestry Manager 20 20 19 19.7Senior Forestry Expert 20 20 22 20.7Community Development Expert 16 19 22 19.0Training Expert 21 20 23 21.3Financial Management and Procurement Exp. 22 21 22 21.7GIS & IT Expert 20 20 22 20.7Extension Manager 23 20 24 22.3Junior Expert 19 20 20 19.7Environmental Expert 21 20 22 21.0Extension Officer I 21 20 23 21.3Extension Officer II 20 23 25 22.7Extension Officer III 22 18 21 20.3Extension Officer IV 21 20 25 22.0Extension Officer V 20 20 22 20.7Extension Officer VI 20 20 22 20.7Extension Officer VII 20 20 22 21.0Extension Officer VIII 17 18 22 20.0Extension Officer IX 21 20 22 21.0Extension Officer X 20 20 22 21.0Administrative Staff 1 2 3 AverageCommunications Officer 20 20 22 20.7Accountant I 20 18 22 20.0Accountant II 20 18 22 22.0Administrative Assistant 20 18 22 22.0

17

3. CROSSCUTTING OBJECTIVES

In all its activities, the programme takes into consideration the crosscutting objectivesof Finland’s development policy. This chapter presents the actions taken during the re-porting period with regards to gender equality, reduction of inequality and climate sus-tainability.

3.1 Promote Gender Equality

During the preparation of VLUPs, the programme promoted the registration of land inthe names of the entire family instead of only that of the husband. By promoting familyownership of land, the programme attempted to support the livelihoods of widowedwomen. The programme also raised awareness about the importance of land registra-tion and land titling in general in order to ensure that tree growers will enjoy their rightsto the land they cultivate.

One of the most important activities of the programme is to support TGAs. In doing sothis reporting period, the programme encouraged women to take part in TGAs and evento assume the responsibility of TGA management positions. According to the TGA base-line study carried out during the programme’s inception phase, women occupy 32% ofTGA management positions. The targeted proportion is 40%.

Women are encouraged to take part in the various meetings organised by the pro-gramme. Barriers to women’s participation in meetings are actively investigated andactions to surmount those barriers and enable women’s participation are taken. For ex-ample, during the training needs assessment of the tree growers, meetings were heldearly in the morning. After it was noted that the women often came late because theyhad chores to do at home in the mornings, programme staff changed meeting times toaccommodate women’s needs.

The programme takes gender issues into consideration in its recruitment policies, too.Women are always encouraged to apply. Currently, the Programme employs fourwomen extension officers out of the total of ten. This is exceptionally important sincesuch officers are one of the most visible parts of the programme to villagers.

3.2 Reduce Inequality of All Kinds

The programme implemented inclusive support mechanisms for TGIS and IGA duringthe reporting period. Both support mechanisms allowed all interested people from thepilot villages to take part without any sort of discrimination. Participation was not af-fected by socio-economic status, gender, political views, or any other such difference,including TGA membership, which, while it is encouraged and its benefits touted, is nota requirement for receiving support from the programme.

The experience of previous initiatives suggests helping the poorest people directly isvery difficult. Vulnerable people may not be able to work and in-kind support may besold due to meet immediate needs for cash. However, there are people who come fromvulnerable households but are not vulnerable themselves. These people can work andthereby help pull their households out of poverty. Therefore, the programme hasadopted a system previously used, for example, in the Ugandan SPGS programme.Under it, the PFP establishes tree plantations in villages where the poor get employmentand from which the village may get additional income for addressing the poverty in thevillage. Such plantations for the vulnerable have been established in five of the pilotvillages for the first planting season; they total 55 ha. See Table 8 for details.

In order to efficiently work with and for vulnerable groups, it is important to identify thosegroups. To do so, the programme has been actively cooperating with TASAF, whichworks on identifying vulnerable people in Tanzania. TASAF started identifying vulnera-ble people in the programme area in the beginning of year 2015 and the programmehas signed a memorandum of understanding with TASAF so that the programme willbe able to use the information it produces to work with vulnerable people.

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3.3 Strengthen Climate Sustainability

All programme-supported planting in the villages is done according to the VLUPs. Themost fertile land is always reserved for producing food crops and tree plantation is pro-moted only on land not suitable for agricultural use. The programme makes every effortto preserve land for food production so that even if climatic conditions change, the foodsecurity of villages is not endangered. In addition, land conversion from natural foreststo plantations is strictly forbidden.

The programme has chosen the species it will support in the coming planting seasonwith the changing climate in mind. Species such as Pinus tecunumanii, Pinus maximinoiand Eucalyptus urograndis are more tolerant of various climatic conditions than tradi-tional plantation species.

19

4. RISKS AND OPPORTUNITIES UPDATE

4.1 Risks

During the reporting period, the programme identified various risks, some of which aremore probable than others. Some are linked to the programme’s decisions while someare completely beyond the programme’s influence and the PFP just has to adapt to ortry to mitigate them. The risks are compiled in Table 10 and discussed in more detailbelow.

TGA members claim that land prices in the southern highlands have risen significantlyduring the last two years. In fact, the TGA apex body management reported that twoyears ago 0.4 ha cost TZS 80,000 and now it costs almost double that, TZS 150,000.These high prices, however, are for land close to townships with good roads andcheaper land can still be found in remote areas. There are various reasons for the risingland prices. The TGA apex body management reported that there is a lot more interestin different land uses in the area than there used to be. For example, interest in treeplanting is increasing as new companies plant tea and stevia and the burgeoning pop-ulation’s demand for agricultural products increases. The programme attempts to min-imise its impact on land prices by working in remote, relatively unfertile areas with littlecompetition from other potential landowners.

Diseases and pests are always a risk when planting trees or working in agriculture. Theprogramme acknowledges this risk and is aware of which pests threaten the most com-mon plantation species. For example, Eucalyptus grandis is threatened by Chalcidwasps and Pinus patula by a disease transmitted by Sirex wood wasps. The programmesupports species which are not threatened by known diseases and pests.

Forest fire is a high risk in the southern highlands. This risk was identified at the outsetbut it still needs to be considered. Respondents to the TGA baseline study reported thatduring the last two years they had lost 30% of their plantations to fires. In fact, forestfires are perhaps the most significant risk to the viability of tree plantations in the area.This risk can be mitigated mainly by capacity-building and awareness-raising in the vil-lages as well as by the promulgation of by-laws and efficient law enforcement.

The risk of the splitting of villages due to administrative and political reasons was iden-tified during the preparation of the VLUPs in the programme area. It was noticed thatvillages with existing VLUPs had split up and that their VLUPs had become void. It is arisk to the programme to prepare VLUPs that later become void. The mitigation of thisrisk demands that VLUP team be well aware of the risk and identify affected villagesearly on.

The lack of sufficient skilled SPs is a risk during the seedling production and plantingseason. Currently, it is difficult to find SPs that can produce the desired quality of variousservices within the given time frame. The programme needs to more carefully map pos-sible SPs and to give proper support in time if capacity-building gaps occur.

Working with vulnerable people can be seen as a risk for the programme if it wishes toachieve its overall objective of alleviating poverty. Vulnerable people are often not ableto receive direct support from the programme and working with them may be very diffi-cult and inefficient. It is often claimed that poor and vulnerable people who are able towork need steady employment in order to be able to rise from poverty. In order to workfor the benefit of the poor and vulnerable people, the programme should encouragerelatively affluent villagers to employ the poor in programme-supported plantations andIGAs.

The programme has received requests from many stakeholders to organise its seedlingproduction in small nurseries in the villages in which it works in order to both reducetransportation costs and create local employment. Satisfying this request, however,may compromise the quality of seedlings. The programme aims to provide the bestquality seedlings possible as if the quality is not high enough the programme might fail

20

to show to tree growers the importance of high quality in all plantation establishmentactivities. In order to mitigate this risk, the programme management proposes to pro-duce a large quantity of seedlings in industrial nurseries for the time being and to usesmall village nurseries to produce a limited number of seedlings. Over time, the capacityof the latter for future production will be built. Small-scale nurseries can possibly beestablished in cooperation with FDT.

The poor condition of roads to small villages caused some delays in transporting seed-lings the first planting season. During the rainy season roads turn so muddy and slipperythat delivery trucks get stuck. Figure 10 shows a common situation: a truck is stuck andother traffic cannot pass by. Currently, the risk is mitigated by delivering as much mate-rial to the villages during the dry season or as early during the rainy season as possible.

Figure 11 A truck stuck on a muddy road

Another possible risk is that IGAs will not be sustainable. The cultivation of beans, inparticular, has been questioned. If farmers who receive IGA support do not reinvestafter the first season, that initial support is lost. If IGA projects fail, the previously iden-tified risk of the premature harvesting of trees will not necessarily be mitigated. Theprogramme needs to be very clear in its communications with the farmers: IGA supportshould be given only once and farmers should understand that the chosen IGA projectshould be sustained. With regard to beans, for example, they should understand theprogramme’s expectation that they will reinvest in high-quality seeds by using the profitfrom the increase in bean production. The programme should very carefully select theIGA projects it supports in order to ensure their sustainability.

The high planting target of the programme entails the risk of not benefiting beneficiariesas much as planned. During the first planting season, roughly 1,000 ha were planted,and the target is to double the area every year until the 2017/18 planting season. Toohigh of a target may endanger the quality of the plantations and may force the pro-gramme to work with rich land owners who own large areas for tree planting. This is notnecessarily a bad thing if and when the programme aims to create a critical mass oftree plantations in the southern highlands for the industry to start investing and creatingmore demand for industrial round wood. Whether or not it does so is a strategic issue,

21

and the risks of such a decision need to be understood. For reference, the UgandanSawlog Production Grant Scheme (SPGS) programme supported approximately 10,000ha during its first, five-year phase and mandated that each tree grower plant at least 25ha. Each PFP TGIS-supported farmer, in contrast, planted an average of just 1.7 ha inthe first year.

The programme assumed the challenge of facilitating the development of forestry andwood-processing curricula for VETA levels 1, 2 and 3. The programme managementsees this step as a risk as there are few capacity-building staff and no internationalcapacity-building manager. The task of facilitating the curricula development is a verydemanding one and will most probably take most of the training expert’s time during theyear 2015. This is a risk since there are a lot of other capacity-building needs whichmay, in consequence, be neglected. The degree of this risk is dependent on the capacityof the programme’s capacity-building staff, who may themselves need assistance fromother programme staff members. Alternatively, staff more experienced than those cur-rently employed could be recruited. Of course, it must be taken into consideration thatPFP’s capacity-building manager will return to Njombe in the beginning of 2016.

Table 10 Risks identified during the reporting period

Risk Probability* Mitigation measuresRising land prices (already materi-alised)

5 Operate only in remote areas where landprices are low and tree-growing can be aprofitable business.

Diseases and pests 3 Select resistant species and participateactively in the tree improvement pro-gramme.

Forest fires 4 Pass by-laws, enforce laws, and raiseawareness.

Splitting of villages due to politicaland administrative issues

3 Select villages carefully so that there islittle risk of splitting.

Availability of skilled service provid-ers (SPs)

4 More intensively identify SPs and facili-tate proper training for them.

Working with poor and vulnerablegroups

3 Encourage wealthy villagers to employpeople from poor and vulnerable house-holds.

Poor quality of seedling productionin village nurseries

3 Use top-quality seedling producers formost seedlings.

Transportation of seedlings 2 Transport to difficult-to-reach villages be-fore the rainy season.

Sustainability of IGAs 3 Select supported business projects care-fully .

15,000 ha planting target n/a Revise the approach of the programmeaccording to the objectives of the pro-gramme.

Very few staff able to build capacity 3 Assign experienced full-time staff to ca-pacity-building activities.

*1= low probability, 5 = high probability

4.2 Opportunities

Programme managers feel that collaboration with relevant programmes, institutions andcompanies is a significant opportunity to create synergy among partners and make surethere is no duplication of efforts. One good example of such a productive collaborationis the programme’s collaboration with FDT. The two programmes have agreed to coor-dinate their efforts in tree improvement and to investigate possibilities for cooperation insmall-scale nursery establishment.

Conditions in the southern highlands, particularly in terms of the climate and soil, areexcellent for tree growing and people are very interested in planting trees. They arealso very willing to work hard now to build prosperous tree plantation businesses in the

22

future. For these reasons, the programme should succeed. Growth conditions are soremarkable that they even enable the production of biomass for heat and power pro-duction.

The fact that the southern highlands has a viable forest industry and a paper mill is alsoseen as an opportunity. The paper mill could create a market for small-diameter wood,meaning that all diameters of wood produced would have have markets. Currently, Mu-findi Paper Mill only accepts large diameter (>17 cm) wood, probably due to technicalreasons as, in theory, a paper mill should be able to accept small-diameter wood. Mak-ing this change might require some additional investment.

23

5. FINDINGS AND RECOMMENDATIONS

1. Early approval and processing of TGIS and IGA – Many of the problems faced duringthe reporting period, from awareness-raising to planting operations, were caused by thelate implementation of TGIS and IGA support. E In the future, the beneficiaries to besupported should be finalised early.

2. Use of professional nurseries, which produce the highest quality of seedling –The professional nurseries used for seedling production during the first planting seasonproduced a significantly higher quality of seedlings and are easier to work with thansmall village nurseries. As the programme aims at establishing high-quality plantations,the use of small-scale nurseries needs to be critically evaluated.

3. Collaboration with other relevant actors – As already stated in the opportunities partof this report, collaboration with other relevant programmes such as FDT as well asinstitutions and companies can significantly add value to the programme’s work. Sev-eral meetings have been conducted with FDT and arrangements have been made tomaximize synergy and minimize duplication of effort.

4. Revision of the target for established plantations– The target for plantation estab-lishment should be revisited and critically evaluated. As explained in the risks part ofthis report, a very high target could result in the programme’s benefitting only well-offlarge-scale land owners and large companies.

5. Continuance of TGIS OSP for achieving planting targets – The use of TGIS OSPreduces the need for direct supervision and will help the programme achieve its highplanting targets.

6. Capacity building among staff – The capacity-building needs of staff needs need tobe evaluated. Since the recruitment of new staff does not necessarily help, relevantshort-term consultancies should be considered. At the very least, the programmeshould consider hiring a consultant to investigate the setting-up of a PPP to providetraining in the southern highlands and to follow up on the newly developed VETA cur-ricula.

7. Establishment of an environmental working group – It has been agreed that anenvironmental working group for environmental safeguarding should be established.This working group would consist of the MNRT, environmental NGOs and institutionsas well as other relevant stakeholders, all ow whom would take an active part in pro-gramme activities and advise the programme on broad issues related to the environ-ment and biodiversity.

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ANNEX 1: BUDGET FOLLOW UP

BUDGETEDEXPENDITURE 1

JULY 2014 - 30JUNE 2015

ACTUALEXPENDITURE 1

JUNE 2014 - 31DEC 2014

ACTUALEXPENDITURE 1

JAN 2015 - 31MARCH 2015

BALANCE OFBUDGETED

EXPENDITUREVS ACTUAL

EXPENDITUREEUR EUR EUR EUR

A. Operational CostsComponent 1: Enabling Environment (EE)1.1 Thematic national and district/regional multi stakeholder fora 50,000.00 23,637.88 8,139.22 18,222.891.2 Developmental processes on enabling legislation, policies and mechanisms 32,500.00 - - 32,500.001.3 Research and studies on key challenges and opportunities 348,000.00 35,664.43 28,110.21 284,225.361.4 Dissemination of best practices 26,900.00 - - 26,900.001.5 Strengthened business development services 113,300.00 5,974.46 - 107,325.541.6 Establishment of Forest Information System, GIS and remote sensing analysis 113,000.00 1,399.48 58.25 111,542.271.7 Awareness created in the villages of the PFP areas 63,500.00 18,003.15 9,634.55 35,862.29Sub-total Component 1: Enabling Environment (EE) 747,200.00 84,679.40 45,942.24 616,578.36Component 2: Human Resources Development (HRD)2.1 Sao Hill Training Centre (SHTC) 235,000.00 7,080.62 45,448.50 182,470.892.2 Training needs assessments 40,000.00 870.49 382.22 38,747.302.3 Short and long term training plans 10,000.00 - - 10,000.002.4 Manuals, guidelines, teaching materials and training equipment 40,000.00 - 9,614.25 30,385.752.5 Strengthening of training providers 145,000.00 3,386.93 496.95 141,116.122.6 Improved skills through training programs 342,000.00 28,105.92 5,993.18 307,900.90Sub-total Component 2: Human Resources Development (HRD) 812,000.00 39,443.95 61,935.09 710,620.96Component 3: Land Use Planning (LUP)3.1 Biodiversity surveys and social mapping 95,000.00 3,453.73 5,948.08 85,598.203.2 Awareness raising on VLUP and land rights/registration 150,000.00 680.43 - 149,319.573.3 Development of the VLUP process and capacity building of facilitators 75,000.00 2,211.65 - 72,788.353.4 VLUPs prepared in villages where TGAs are established 176,500.00 31,703.29 615.45 144,181.263.5 Tree growers capacitated on land registration/titling 30,000.00 - - 30,000.00Sub-total Component 3: Land Use Planning (LUP) 526,500.00 38,049.10 6,563.53 481,887.37Component 4: Support to Tree Growers Associations (STGAs)4.1 New TGAs established (60-80) 39,500.00 64.36 - 39,435.644.2 Area expansion of existing TGAs 108,900.00 48,985.26 105,526.08 (45,611.34)4.3 Membership of existing TGAs expanded 13,000.00 4,292.62 - 8,707.384.4 National level apex bodies of TGA established 42,150.00 8,337.71 420.02 33,392.28

25

4.5 Establishment of demonstration plots 35,500.00 48,117.67 - (12,617.67)Sub-total Component 4: Support to Tree Growers Associations (STGAs) 239,050.00 109,797.62 105,946.10 23,306.29Component 5: Income generating activities5.1 IGA projects implemented 275,000.00 9,271.00 22,485.35 243,243.65Sub-total Component 5: Income generating activities 275,000.00 9,271.00 22,485.35 243,243.65Component 6: Tree Growing Incentives Scheme (TGIS)6.2 TGIS mechanism established with related institutional arrangements 50,000.00 4,762.81 28.67 45,208.526.4 Support provided to 15 000 ha of new high-quality plantations 450,000.00 158.40 19,525.61 430,315.99Sub-total Component 6: Tree Growing Incentives Scheme (TGIS) 500,000.00 4,921.21 19,554.28 475,524.51Total Operational Costs 3,099,750.00 286,162.28 262,426.58 2,551,161.14


JULY 2014 - 30JUNE 2015

ACTUALEXPENDITURE 1

JUNE 2014 - 31DEC 2014

ACTUALEXPENDITURE 1

JAN 2015 - 31MARCH 2015

BALANCE OFBUDGETED

EXPENDITUREVS ACTUAL


B. Consulting ServicesTechnical Asssitance fees (competetive Component)Programme Director; InternationalNational Private Forestry Manager; NationalPlantation Forestry Manager; InternationalFinancial Manager; InternationalCapacity Building Manager; InternationalSenior Forestry Expert; NationalCommunity Development Expert; regional/nationalTraining Expert; NationalFinancial Management and Procurement Expert; NationalPlanning and GIS Expert; NationalExtension Manager; NationalPool of short term experts; InternationalPool of short term experts: NationalTOTAL FEES 1,000,000.00 596,132.00 237,836.67 166,031.33

26


JULY 2014 - 30JUNE 2015

ACTUALEXPENDITURE 1JUNE 2014 - 31

DEC 2014

ACTUALEXPENDITURE 1

JAN 2015 - 31MARCH 2015

BALANCE OFBUDGETED

EXPENDITURE VSACTUAL


C. Consulting ServicesReimbursableJunior Expert; International 45,000.00 25,400.00 15,240.00 4,360.00Junior Expert; National 18,000.00 6,273.17 3,173.64 8,553.19Volunteers for the PFP component 0.00 - - -Home office coordination (HOC) 12,000.00 6,000.00 3,000.00 3,000.00Program launching, team building and training 29,000.00 20,490.92 - 8,509.08Drivers, guards etc. 36,000.00 5,604.28 6,432.87 23,962.85Administrative Assistant; National 18,000.00 6,268.07 3,928.65 7,803.28Extension Officers (6 for 4 years); National (Moved to experts) 160,000.00 31,296.16 37,720.16 90,983.68Accountant; National 66,000.00 12,479.46 9,539.13 43,981.41Communication officer 40,000.00 6,406.13 3,427.98 30,165.89Flights (long term international experts and family) 20,000.00 1,503.52 - 18,496.48Flights (long term regional experts) 2,000.00 - 2,000.00Family and moving costs 30,000.00 6,482.88 - 23,517.12Family and Moving costs for new staff, Training Expert 1,800.00 1,208.78 - 591.22Flights (short term international experts and HOC) 16,000.00 11,652.44 2,583.00 1,764.56Housing (long term international expert and NPFA) 66,000.00 18,367.92 26,356.18 21,275.90Housing allowance (long term national expert) 16,200.00 18,170.57 4,350.84 (6,321.41)Housing allowance (long term national expert) New staff- EE & TE 1,800.00 - 1,800.00Hotel for short term experts & for duty travel (Dar es salaam) 6,000.00 21,770.83 1,679.08 (17,449.91)Hotel for short term experts & for duty travel (Southern Highlands) 7,500.00 10,820.17 3,122.58 (6,442.75)Per diems for short term experts 3,280.00 4,587.23 - (1,307.23)Per diems for duty travel 1,230.00 10,519.69 1,435.08 (10,724.77)Local travel 11,326.85 3,987.98 (15,314.83)Computers, mobile phones 32,000.00 11,602.89 583.79 19,813.32Computers, for new staff 6,000.00 3,702.00 - 2,298.00Software + licensees for computers 6,000.00 - 6,000.00Office rent and renovation 55,000.00 14,057.04 - 40,942.96

27

Office equipment, AV equipment and other office materials 10,000.00 5,779.09 3,000.18 1,220.73Photocopier for the office 5,000.00 - - 5,000.00Furniture 10,000.00 14,067.03 2,280.01 (6,347.04)Vehicles (mopeds) 20,000.00 6,307.40 - 13,692.60Vehicles (cars) 50,000.00 - - 50,000.00Car Hire 84,000.00 43,094.84 - 40,905.16Gasoline only (Management and administration x 1car) 11,000.00 6,544.40 5,400.00 (944.40)Gasoline and maintenance- motorbikes 294.72 440.83Maintenance & insurance of vehicles x 5 cars 10,000.00 12,108.39 5,820.30 (7,928.69)Car tracking system x 5 cars 4,000.00 5,314.46 - (1,314.46)Other Programme Management and Administration expenses (SC & SvB) 30,000.00 10,389.22 19,610.78Work plan preparation 15,000.00 - - 15,000.00Extension officers expenditures - rents 16,000.00 - - 16,000.00Other expenses + Office consumables, furniture, computer spares, printer etc. 60,000.00 43,359.78 5,989.29 10,650.93Sub-total reimbursable costs 1,019,810.00 402,861.12 159,439.98 457,508.90Total Consulting Services 2,019,810.00 998,993.12 397,276.65 623,540.23External auditing 7,500.00 6,499.74 - 1,000.26Sub-total Operational costs + consulting services + auditing 5,127,060.00 1,291,655.14 659,703.23 3,175,701.63Contingencies - - - -Total Consulting Services 5,127,060.00 1,291,655.14 659,703.23 3,175,701.63

28

EXPLANATION OF MAJOR NEGATIVE VARIANCES ABOVE:Activity/Budget line Variance, EUR Reasons for Variance

4.2 Area expansion of existing TGAs (45,611.34)Cost of procurement and transportation of seedlings from nursery to the planting sites wasunder budgeted

4.5 Establishment of demonstration plots (12,617.67)Cost of spray equipment and materials was not budgeted for but was necessary for projectimplementation and was therefore charged to this budget line

Housing allowance (long term national expert) (6,321.41) Rent expense is paid for 12 months in advance and therefore includes prepayment portionHotel for short term experts & for duty travel (Dar es salaam) (17,449.91)

During the planning phase, the project underestimated the extent of travelling that would berequired during implementation, Travel related costs were therefore under budgeted

Per diems for short term experts (1,307.23)Per diems for duty travel (10,724.77)Local travel (15,314.83)

Gasoline only (Management and administration x 1car) (944.40)Gasoline and maintenance- motorbikes (440.83)Maintenance & insurance of vehicles x 5 cars (7,928.69)

Car tracking system x 5 cars (1,314.46)Monthly service fee is paid for 12 months in advance and therefore includes prepaymentportion

Furniture (6,347.04) Cost of procurement of office furniture was under budgeted

29

EXPLANATION OF MAJOR POSITIVE VARIANCES ABOVE:Activity/Budget line Variance, EUR Reasons for Variance

Component 1: Enabling environment 616,578.36Over-budgeted and priority was given to strengthen the plantation establishment. Theprogramme did not have the capacity to focus on everything at the same time.

Component 2: Human Resources Development (HRD) 710,620.96Lot of changes in staff and the focus of the CBM was on work planning during the begin-ning of the period. Even with full staff the component remains under capacity.

Component 3: Land use planning (LUP) 481,887.3712 out of the original 32 VLUPs were prepared and process needs to be speeded up.Funds for awareness raising over-budgeted.

Component 5: Income generating activities 243,243.65 Only mini and small projects implemented. Beekeeping projects not yet implemented.Component 6: Tree Growing Incentives Scheme (TGIS) 475,524.51 Costs under component 4Extension Officers (6 for 4 years); National (Moved to experts) 90,983.68 Over-budgeted. Adjusted to costs during the following year.Accountant; National 43,981.41 Second accountant recruited late.Office rent and renovation 40,942.96 No rent paid during the reporting period year.

ANNEX 2: RESULT-BASED FRAMEWORK WORK PLAN WITH SITUATION UPDATES FROM JANUARY-MARCH 2015

POSITION KEY:Activities on target to be achieve target on scheduleActivities slightly delayed - may not achieve target on scheduleActivities significantly delayed - will not achieve target on schedule

Jul-Sep Oct-Dec Jan-Mar Apr-JunNo. Components, results and activities Target Target Target Target

COMPONENT 1: ENABLING ENVIRONMENT

Obj

ectiv

e 1 Enabling environment improved for sustainable managed privateplantation forestry through policy advocacy and networking among keyforestry sector stakeholders and through development of needs-basedbusiness services

Res

ult 1.1 Thematic national and district/regional multi stakeholder fora established

to address the sector’s bottlenecks at national, sector and local levels ToR for consultant Final Desk studyand VLUP reports

Action plan forbottlenecks

Prioritized issuesadressed

Res

ult 1.2 Developmental processes on enabling legislation, policies and

mechanisms initiated based on priority proposals and recommendationsprepared by the multi stakeholder for a

Venue identifiedand invitation sentfor the high level

forum

Policy forum held

Monitoringreport.Workshopheld and action

plan ready

Res

ult 1.3 Research and studies out on key challenges and opportunities

2 3 1 2

2014-2015

LATEST POSITION RESULT 1.1: The establishement of the multistakeholder fora is slightly delayed but will be established by the end of the financial year. Therefore,the subsequent action plan for addressing the bottlenecks is delayed.

LATEST POSITION RESULT 1.2: The organising of the workshop for promoting locally grown plantation wood started. The workshop will take place in June.

LATEST POSITION RESULT 1.3: Some delays. Baseline study on socio-economic situation is ongoing and the final report will be ready in May. A change in approachin the environmaental studies has been proposed and will be discussed with the Steering Committee.

30



2014-2015

Res

ult 1.4 Dissemination of best practices

Technical guidelinematerial distributed

Awareness raisingvillage meeting

held

Material distributedand contestorganized

Res

ult 1.5 Strengthened business development services to support value chain

development related to sustainable private plantation forestry High quality seedsprocured

IGA meetings withTGAs held and

business plan done

Workshops heldand 3 final reports

ready

Res

ult 1.6 Establishment of Forest Information System, GIS and remote sensing

analysis GPS training done FIS installed andtested

FIS fullyfunctioning

Res

ult 1.7 Awareness created in villages of the PFP areas (communication) so that

TGAs may willingly plant a total of 1,000 hectares by June 2015 Awareness raisingin started

Awareness raisingactivities

completed

LATEST POSITION RESULT 1.6: Slight delays. The FIS will not be established by the end of the financial year. The establishement is pending the consultancyrecommendation. Report is due by the end of June.

LATEST POSITION RESULT 1.5: Activities on schedule. Seeds ordered for the coming season and actvities on schedule.

LATEST POSITION RESULT 1.4:: Delays which won't affect the achieving of the result. The component needs to communicate with other components for the propertechnical guidelines to be disseminated.

LATEST POSITION RESULT 1.7: The result is one newsletter short of the target but overall progress is good and there are no significant delays. The Decembernewsletter was not published due to problems with tax exemptions.



2014-2015

COMPONENT 2: HUMAN RESOURCES DEVELOPMENT

Obj

ectiv

e 2 Skills and knowledge on sustainable plantation forestry and relatedvalue chain improved through establishment of a high-quality trainingdelivery system and through development of supportive tools (e.g.manuals and guidelines)

Res

ult

2.1 Sao Hill Training Centre (SHTC) re-established with a new strategy,management structure to provide high-quality training as per identifiedtraining needs of the target group Collaboration

established

Pre-feasibilityreport and capacity

building andinvestment plans

FWPTC's CDcommitteeestablished

FWPTC strategyand draft forestry

curriculum

Res

ult 2.2 Training needs assessments (TNAs) of various PFP stakeholder groups

1 2 1 0

Res

ult 2.3 Short and long term training plans in accordance with the TNAs carried

out under the output 2.2 Short-term trainingplan ready

Long-term trainingplan ready

LATEST POSITION RESULT 2.1: SHTC pre-feasibility study validation workshop held and workshop declarations agreed. Curricula development in progress andcharts for units to be taught submitted to VETA for assessment.

LATEST POSITION RESULT 2.3: Training plan structure drafted. Finalisation pending consultant reports. Slight delays but result will be completed during the financialyear.

LATEST POSITION RESULT 2.2: TGA-TNA ready. TNA for SPs and NGOs to finalised soon by FORCONSULT.



2014-2015

Res

ult 2.4 Manuals, guidelines, teaching materials and training equipment on

sustainable private forestry: technical, managerial, financial, market-related etc. tools

Training materialsfor awarenessraising ready

Manuals, tools andmethods for

trainings ready

Res

ult 2.5 Strengthening of training providers by improved training curricula,

pedagogical skills of trainers and improvement of teachers’ skills andabilities in training

LSPs and SPslisted andclassified

30 LSPs trainedand 1-3 training

institutionssupported

30 LSPs trainedand 1-3 training

institutionssupported

Res

ult 2.6 Improved skills through training programs implemented in accordance

with the training strategyPlanned training

activitiescompleted

LATEST POSITION RESULT 2.6: Slight delays. Some trainings waiting for consultant report due in May.

LATEST POSITION RESULT 2.5: Curricula for forestry and wood processing development started with FTI and FITI. Identification of LSPs and SPs ongoing by aconsultant. Slight delays. Capacity building of service providers is pending the consultancy report identifying the LSPs and SPs. This capacity building acttivity mayhave to be postponed to the following financial year.

LATEST POSITION RESULT 2.4: Preparation of materials delayed. ToRs for service providers and MoUs for gvernment institutions under preparation and thematerials will be ready by the end of financial year.



2014-2015

COMPONENT 3: LAND USE PLANNING

Obj

ectiv

e 3 Village land use plans prepared for each targeted village, ensuringrelevant selection of plantation areas, rights of vulnerable groups andprotection of biodiversity

Res

ult 3.1 Biodiversity surveys and social mapping / Implemented new version of

participatory VLUP process: more efficient process, solid participationand inclusiveness, integration of biodiversity consideration

LGA district teamestablished and

trained

Biodiversity reportready and system

established

Environmentalrehabilitationcompleted

Res

ult 3.2 Awareness raising on VLUP and land rights / registration, environmental

issues and land rights SP trained Training conductedin selected villages

Res

ult

3.3 Development of the VLUP process and capacity building of facilitators /Capacitated VLUP facilitators (District staff and external facilitators) toenable VLUP processes in all villages where TGAs are established

Topographicsheets and satelliteimages acquired,

and districtsfacilitated

LATEST POSITION RESULT 3.1: Villages for next year's planting have been identified and the number of hectares for next year has been secured. Social mapping invillages ongoing by TASAF and WEMA.

LATEST POSITION RESULT 3.3: On time. Pilot year districts and villages facilitated. Plans for facilitating new districts already in place. Starting in April.

LATEST POSITION RESULT 3.2: Awareness raising done in pilot villages. Nine new villages for the 2015/16 planting season to be started in April.



2014-2015

Res

ult 3.4 VLUPs prepared in villages where TGAs are/ will be established (app,

60-80 TGAs)PLUM meetings

heldPLUm teams

trained

Res

ult 3.5 Tree growers capacitated on land registration/titling Tree growers

trained and SPreport ready

LATEST POSITION RESULT 3.4: Activities completed for pilot districts. The plans for new disctricts, Kilolo and Mufindi in place. Implementation in April.

LATEST POSITION RESULT 3.5: Result delayed. Capacity building will take place during the next quarter.



2014-2015

COMPONENT 4: SUPPORT TO TREE GROWERS ASSOCIATIONS

Obj

ectiv

e 4 Inclusive and well governed TGAs established / strengthened forsustainable management of tree plantations

Res

ult

4.1 New TGAs established (60-80)

TGA workshops,SOPs and work

safety assessment

Forest fire baselinestudy and mgmtplan, and worksafety training

Mobilization andmeetings with

villagegovernments

Mobilization andmeetings with

villagegovernments

Res

ult 4.2 Area expansion of existing TGAs

Ongoingpreparations continuous

Plantation est.training report, and

seedling andfertilizer deliveries

Nursery sitesassessed

Res

ult 4.3 Membership of existing TGAs expanded to enhance economy scale and

widen the inclusiveness of TGAs to cover all tree growers in the village-households, schools, NGOs, CBOs, religious bodies and institutions

TGA baselinereport

LATEST POSITION RESULT 4.1: Slight delays due to too optimistic planning. Some activities purposely postponed due to hectic planting season. Most of the targetswill be reached within the annual work plan. Development of SOPs need the TGA organogram to be developed.

LATEST POSITION RESULT 4.3: On time.

LATEST POSITION RESULT 4.2: On time. TGIS support given to existing TGAs.



2014-2015

Res

ult 4.4 National level apex bodies of TGA established to lobby TGAs’ interests

and collaborate with relevant stakeholders to improve plantationmanagement and trade

TGA apexestablished

TGA apex bodyfacilitated andstrategic plan

ready

Apex bodysupported

Apex bodysupported

Res

ult 4.5 Establishment of demonstration plots (DPs) to each of the pilot villages DP sites identified

and reportedLand preparations

done

DPs establishedand survival

assessementProgress report

LATEST POSITION RESULT 4.5: One demonstration plot established. As many others to be established as possible.

LATEST POSITION RESULT 4.4: Slightly delayed. The constitution and the registration delayed due to administrational issues.



2014-2015

COMPONENT 5: INCOME GENERATING ACTIVITIES

Obj

ectiv

e 5 Income generating activities and employment within the value chainprovide income for vulnerable groups, and for tree growers enablingthem to wait for optimum cutting time for trees

Res

ult

5.1 Partnerships created with IGA developers for directing their support toprogram village 2 IGA meetings

and 9 awarenessactivities done

2 IGA meetings, 9awareness

activities andwealth statusbaseline study

done

9 awarenessactivities done

9 awarenessactivities done

Res

ult

5.2 Funding mechanism developed for IGA projects to be implemented withProgram support by partner organization Mechanism

developed andmeeting withpotential IGA

developers held

Res

ult 5.3 IGA projects implemented in all villages where TGAs are established

6 small24: 20 small, 3medium and 1

large

28: 20 small, 6medium and 2

large

10: 4 small, 3medium and 3

largeLATEST POSITION RESULT 5.3: On time. Approach slightly redesigned. First round of IGA support given out. A total of 8,500 kg of beans and some 2,000 avocadoseedlings given out for IGA.

LATEST POSITION RESULT 5.2: On time. Mechanism developed and first round of IGA support distributed.

LATEST POSITION RESULT 5.1: Slightly delayed socio-econimc baseline study is now ongoing and no other significant delays in the result.



2014-2015

Res

ult

5.4 Employment within the value chain (plantation management andmaintenance and SMEs) developed with special focus on vulnerablehouseholds

LATEST POSITION RESULT 5.4: IGA monitoring is onging. The amounts of given IGA support is recorded and an extrenal evaluation consultant is engaged to comeand evaluate TGIS and IGA late April.



2014-2015

COMPONENT 6: TREE GROWING INCENTIVES SCHEME (TGIS)

Obj

ectiv

e 6 Incentives mechanisms established to guarantee high-quality andsustainable tree growing

Res

ult 6.1 Feasibility assessment on alternatives to guarantee high-quality and

sustainable tree growing Assessement done

Res

ult 6.2 TGIS mechanism established with related institutional arrangements,

administrative and operational guidelines, governance mechanisms, etc.TGIS mechanismestablished and

evaluated

Res

ult 6.3 Selection of “certified” input suppliers and service providers Suppliers and SPs

"certified"

Res

ult 6.4 Support provided to 15 000 ha of new high-quality plantations (this

tentative quantitative target will be updated during the Inception Phase) Criteria established Contracts signed All area planted All area weed free

LATEST POSITION RESULT 6.2: TGIS mechanisms implemented.

LATEST POSITION RESULT 6.3: Seedlings produced for the first year's plantings by selected service providers.

LATEST POSITION RESULT 6.4: All planned areas planted. See data from the quarterly report.



2014-2015

COMPONENT 7: PROGRAMME MANAGEMENT AND ADMINISTRATION (P&MA)

Res

ult

7.1 Programme management and administration, established, operationaland facilitated for effective project implementation Vehicles procured,

launch event heldand plannedmeeting held

Planned meetingsheld and IT

support operational


support operational


support operational

Res

ult 7.2 Programme work planning, reporting, auditing and M&E mechanism

and modalities established and operational for effective projectimplementation, monitoring and evaluation

2014/2015 workplan rready and

PIM finalised

Project documentrevised and M&E

integrated withMRNT

2015/2016 workplan draft ready

2015/2016 workplan streamlined

Res

ult 7.3 PFP office operational and facilitated for PFP supporting operations

Office furnished New staffmembers recruited

IT procurementsdone

Office fullyoperational

Res

ult 7.4 PFP home office facilitated and supporting the PFP implementation and

financingHome office up to

dateHome office up to



date

LATEST POSITION RESULT 7.1: Everything on schedule.

LATEST POSITION RESULT 7.4: Home office been actively participating in the Programme by helping with the revisions of the Programme Document and LogFrame.

LATEST POSITION RESULT 7.3: Office operational.

LATEST POSITION RESULT 7.2: Slightly delayed. Work plan and budget for 2015/16 not yet ready.

Documents

PRIVATE FORESTRY PROGRAMME · Table 7 Teak TGIS OSP plantations established in ... Tanzania’s Private Forestry Programme ... To increase the cultivation of high-quality trees and