Pre-feasibility study for a CDM-AR project in the Cochabamba ...

In table 5.1 the establishment and management costs per hectare per year are given,
these costs don’t include cost for land purchase or opportunity costs.
Table 5.1: Costs of a pure plantation in USD per ha
Establishment Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9>
445 156 184 86 90 70 70 70 70 20
Source: CETEFOR 2005
5.1.3 Thinning
The thinning regime differs per tree specie. Only the first thinning, has a cost since the
stems can only be used as fuel wood for own use. Cost and benefits are calculated for
standing wood, so there are no additional costs for the farmers. Since this is not a very
favorable commerce from a farmer’s point of few, CETEFOR will participate in wood
sale and farmers will be trained and skilled in marketing the wood products. In this
study we based our calculations on actual standing wood prices paid by forest
companies.
5.1.4. Other operating costs (including taxes if any)
Costs for fuel, transport and services is based mainly on CETEFOR-budgets and
expenses in similar projects.
Since among farmers and other stakeholders, not much knowledge of forestry activities
exists, promotion and education activities will be developed, this is a relatively high
cost.
It isn’t clear what will be the tax-regime for this projects, a decision has to be made, by
the government, if CER’s will be considered as a normal investment or as a special
investment with a special tax regime.
5.2. Data on Reforestation Revenues
Wood prices were calculated using current standing wood prices for the proposed treespecies
in primary forests (there is no timber production yet from plantations) and
prices of round wood sold in the sawn mills in Cochabamba and or Santa Cruz.
Prices for round wood in the saw mill was deduced by current transport costs, and
estimated exploitation cost. This price was compared with the actual standing wood
prices for the proposed species. In most cases there was a significant difference between
the calculated wood price using the price on the saw mill or the actual price for standing
wood. This is mainly due to marketing structures in which small scale forest owners
without capital and equipment do not have a good bargaining position. However the
project aims to improve this situation it is not very likely prices of standing wood will
be the wood price of round wood in Cochabamba or Santa Cruz deducted by harvesting
and transport costs. Therefore the average of the two wood prices is taken which are
shown in table 5.2.
Prefeasibility report Chapare
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