multipurpose tree species research for small farms: strategies ... - part
multipurpose tree species research for small farms: strategies ... - part
multipurpose tree species research for small farms: strategies ... - part
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
in the homestead rehabilitation sector,<br />
However, this was dropped in the<br />
implementation stage. Fuclwood seedlings are<br />
free of charge, but the GOB intends to charge<br />
<strong>for</strong> the cost of production later.<br />
Economic analysis. Tile economic internal<br />
rate of return (EIRR) has been estimated at<br />
16% <strong>for</strong> the project. The sensitivity test <strong>for</strong> a<br />
20% increase in cost and a 20% reduction in<br />
benefit will lower the EIRR to 11.5%. The risk<br />
on the investment has been considered minimal<br />
as the major activity of the project is the<br />
establishment of fuclwood plantations on<br />
government land with all the proceeds from the<br />
timber output accruing to the government. The<br />
project has been designed to avoid risk.<br />
Sagarnath Forestry Development Project, Nepal<br />
Economic analysis. The EIRR has been<br />
estimated at 41% <strong>for</strong> the project life of 24 years.<br />
The financial internal rate of return (FIRR) has<br />
been calculated <strong>for</strong> the project as a whole to be<br />
18%. A sensitivity test of the project has been<br />
undertaken and the result is acceptable,<br />
although under certain coaditions the rate<br />
might be as low as 13%.<br />
Uttar Pradesh Social Forestry Project, India<br />
Cost recovery. The government of UP<br />
intended to recover all the costs of the social<br />
<strong>for</strong>estry program, including capital and<br />
operating costs, over 30 years without interest,<br />
However, it was later agreed that the GOUP<br />
would recover only labor, material costs of<br />
planting and technical supervision, with<br />
overhead costs provided as a routine<br />
government service. In order to recover the<br />
cost as planned, it was decided that a plantation<br />
mix of 70% fuel/foddcr and 30% of commercial<br />
<strong>species</strong> would be feasible, wih all the fuel and<br />
fodder output <strong>for</strong> the villagers and all the<br />
commercial timber production would be sold by<br />
the Forest Service.<br />
Beneit sharing. Grass, laf fodder, flowers<br />
and fruit are to be free <strong>for</strong> the villagers with an<br />
equitable share of fuclwood <strong>for</strong> free or at<br />
nominal cost. The Forest Service would market<br />
the entire output from the commercial<br />
plantation from timber to bark and oil seeds,<br />
which would be sufficient <strong>for</strong> the goernment to<br />
recover the invcstmcnt costs over 30 years.<br />
Economic analysis. Thc EIRR wits estimated<br />
to be 13.2%. If farm <strong>for</strong>estry were excluded the<br />
rate would be 12.4£. EIRR foir all components,<br />
71<br />
including organization building, would be<br />
greater than the 10% cutoff rate. The social<br />
rate of return was 36.4%.<br />
Kandi Watershed and Area Development<br />
Project, Punjab. India<br />
Cost recovery. As the project is designed to<br />
benefit a large segment of the population, and<br />
as this area has been designated as<br />
underdeveloped, with 25% of the population<br />
living below the poverty line, there is r.o cy-t<br />
recovery planned other than tile usual<br />
marketing fees and indirect taxes.<br />
Economic analysis. Although the project is<br />
more of a social improvement type, the<br />
applicable rate of interest is the standard 12%.<br />
The EIRR <strong>for</strong> the Dholbaha watershed<br />
component has been ca;culated to be 16%; <strong>for</strong><br />
rehabilitation of the upper catchment, 12%.<br />
West Bengal Social Forestry Project, India<br />
Benefit sharing. Although the project<br />
appears similar to the project in Bangladesh, it<br />
differs in certain details. In the village woodlot<br />
component, state land would be leased to the<br />
village organization (panchayat). The<br />
government would cover the cost of<br />
establishment, recoverable after harvesting of<br />
the plantation output. In the rehabilitation and<br />
referestation component of the government's<br />
degraded <strong>for</strong>est, although the government<br />
incurred all the costs, the people would be<br />
entitled to free fodder and fuclwood.<br />
Moreover, 25% of the output would be<br />
collected free by villagers in the area. The most<br />
striking feature was in farm <strong>for</strong>estry. The<br />
landless poor would be given land <strong>for</strong> <strong>tree</strong><br />
planting. Both the landless and the poor with<br />
land holdings would be given free seedlings with<br />
a cash incentive <strong>for</strong> planting them. All the<br />
produce would belong to the planter. The<br />
government would recover nothing directly.<br />
The people would thus benefit more from this<br />
project than from the project in Bangladesh.<br />
Cost recovery. For the project life of 30 years<br />
the government would rczcivc a FIRR of 3% at<br />
constant prices.<br />
Economic analysis. The ElRR was estimated<br />
at 27 9;,.<br />
Elimalayan Watershed Management Project,<br />
Uttar Pradesh, India<br />
Cost recovery. Normally, the government