ITTOPerum Perhutani, which will be the cooperating State Owned Forestry Enterprise of Indonesia has...

INTERNATIONAL TROPICAL TIMBER ORGANIZATION

ITTO

PROJECT PROPOSAL

SUMMARY

Myanmar is rich in teak and has been exporting the well known Myanmar teak from its natural forests for over a century. However, with the increase in population, illegal cuttings, encroachment into the forest areas and the responsibility to fulfill the need of the country, the natural teak forests are degrading both in area and production. In order to release the pressure on the natural forests and to supplement their production, it is now becoming necessary to utilize the teak from the teak plantations. In so doing, it is also necessary to produce good quality timber from the plantations so as to maintain the world teak market as well as the reputation of Myanmar teak. Provisions for the production of quality plantation teak with community participation are made in this project. As most of the people are used to utilizing large size teak from the natural forests, it becomes necessary to raise the awareness of the people on the utilization of small size plantation teak. The need to adopt new concepts and new technology is stressed and proposals for research, demonstrations and trainings are included in this project. In order to enhance the marketing of the products from the plantation teak, a network will also be formed with interested and participating countries such as Indonesia, Malaysia, etc. After the completion of the project, it is expected that more quality products of the plantation teak will be marketed in the world teak market.

EXECUTING AGENCY FOREST DEPARTMENT OF MYANMAR

COOPERATING GOVERNMENTS MALAYSIA AND INDONESIA

DURATION 36 MONTHS

APPROXIMATE STARTING TO BE DETERMINED DATE

BUDGET AND PROPOSED Source Contribution Local Currency SOURCE OF FINANCE in US$ Equivalent (Kyats) ITTO 733,105 Gov’t of Myanmar 62,020,000 Total 733,105 62,020,000

TITLE REGIONAL EFFORTS ON THE PRODUCTION AND UTILIZATION OF PLANTATION TEAK TO SUSTAIN SUPPLY OF VALUE ADDED TEAK WOOD IN INTERNATIONAL TEAK MARKET.

SERIAL NUMBER

COMMITTEE FOREST INDUSTRY

SUBMITTED BY GOVERNMENT OF MYANMAR

2

Table of Content Acronyms and Abbreviations 4 Map of Regional Project Areas 5 Map of Project Areas Myanmar 6 Introduction 7-9 Part I. Context

1.1 Origin 1.2 Relevance

1.2.1 Conformity with ITTO’s objectives and priorities 1.2.2 Relevance to the submitting country’s policies

1.3 Target area 1.3.1 Geographic location 1.3.2 Social, cultural, economic and environmental aspects

1.4 Expected outcomes at project completion

10 11 11 12 14 14 14 14

Part II. Project Rational and Objectives 2.1 Rationale

2.1.1 Institutional set-up and organizational issues 2.1.2 Stakeholder analysis 2.1.3 Problem analysis 2.1.4 Objectives Tree 2.1.5 The Logical Framework matrix

2.2 Objectives 2.2.1 Development objectives and impact indicators 2.2.2 Specific objective and outcome indicators

15 15 16 18 19 20 24 24 24

Part III. Description of Project Interventions 3.1 Outputs and Activities

3.1.1 Outputs 3.1.2 Activities

3.2 Implementation approaches and methods 3.3 Work plan 3.4 Budget

3.4.1 Budget by Activities 3.4.2 Contribution by GOM (Kyats) 3.4.3 Contribution by ITTO (USD)

3.5 Assumptions, risks, sustainability

25 25 25 28 29 33 33 37 40 43

Part IV. Implementation Arrangements

4.1 Organization Structure and Stakeholder involvement mechanisms

4.2 Reporting, review, monitoring and evaluation

4.2.1 Arrangements for reporting

4.2.2 Arrangement for ITTO monitoring and review

4.3 Dissemination and mainstreaming of project learning

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48

48

48

48

Page

3

4.3.1 Dissemination of Project results

4.3.2 Mainstreaming project learning

48

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Annex 1 Profile of the Executing Agency 50 Annex 2 Letter of Intent 52 Annex 3 Terms of reference of personnel and consultants and sub-contracts

funded by ITTO 55

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ACRONYMS AND ABBREVIATIONS

ACC Annual Allowable Cut

CFC Common Fund for Commodities

CSO Clonal Seed Orchard

EA Executing Agency

FD Forest Department

FRI Forest Research Institute

FRIM Forest Research Institute Malaysia

GOM Government of Myanmar

HG Hedge Garden

IG Income Generation

ITTO International Tropical Timber Organization

MC Moisture Content

MFPTMA Myanma Forest Products and Timber Merchant Association

MOF Ministry of Forestry

MTE Myanma Timber Enterprise

NPM National Project Manager

PRC Participating Regional Country

PSC Project Steering Committee

PSD Planning and Statistics Department

SG Specific Gravity

SPA Seed Production Area

TC Tissue Culture

5

Map of Regional Project Areas

Reference

Project Area

6

Mandalay

Yezin

Bago Yoma

Yangon

Project Area

Map of Project Areas in Myanmar

7

Regional efforts on the production and utilization of plantation teak to sustain supply of value added teak wood in international teak market.

Introduction

The importance of teak

Teak (Tectona grandis Linn. f.), a premium timber, is world renown because of its all round utility. The properties possessed by teak, namely, strength, hardness, durability, stability, anti-corrosiveness, anti-fungal, anti-termitic, easily workable and good appearance have made it a greatly sought-after timber. The massive wooden doors at the Ananda Temple in Bagan, Myanmar, that were constructed in the 11th century still exist. Although the old saying said that teak last for 1,000 years, Chein Hoe (Retired Chief Conservator of Forests) quoted that teak wood used in a cave lasts over 2,000 years.

Due to these properties, it is extensively used for ship decking, construction of railway carriages, door and window frames, flooring, laboratory tables, paneling and most of all for furniture making. Brandis rightly stated that "Among timbers it holds the place which the diamond maintains among precious stones and gold among metals".

The importance of teak was recognized since the days of the Myanmar kings. The species was declared as Royal tree by King Alaungphayar soon after he came to the throne in 1752. This showed his awareness on the value of teak, the effectiveness of teak in building battle ship for the western colonials, international politics and economy. Up till Brandis's days in 1856, teak was the only marketable timber and it was also the only species managed by the Myanmar Kings and the colonial Government. Even the present days’ forest management system in Myanmar is largely focused on teak.

U Chein Hoe blamed teak to be mainly responsible for the first (1824/1826), second (1852) and the third (1855/56) Anglo-Burmese wars. The third and final Anglo-Burmese war however was solely due to the dispute between the King Thibaw and Bombay Burmah Trading Corporation Ltd.,that arose from the demand by King Thibaw for fine on millions of Rupees worth of illicit logs. The whole country was annexed by the British on the 1st of January 1886. Judging from all these facts, it is undisputable why teak is a renown timber in the world. Even up to the present days, the demand for teak wood is so visible that it far exceeds the supply and, therefore has been one of the most expensive timbers of the world. Thus, a regional effort is needed for the sufficiency of quality teak wood in the world’s market. This may be both in the form of producing more teak wood and also utilizing downstream process with minimum wastage. Distribution of teak

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The species is naturally distributed in the South East Asian countries of Laos, Thailand, Myanmar and India. It is also well established in Indonesia on the islands of Java and Muna, but it is not clear whether this occurrence is natural or results from an introduction by the Hindus in the 7th century

The need to promote utilization of plantation teak

King Alaungphaya foresaw the commercial possibilities of teak (Tectona grandis Linn F) and in 1752, all teak trees were declared as Royal property and royalties were levied for their extraction. Scientificforest management however, started only in 1856 when a German Scientist Dr. Dietrich Brandis was given charge of Bago Forests. Since then, the Myanmar Selection System, known as Brandis SelectionSystem at that time has been practiced. It is a good management system under which the natural forestsin Myanmar still survive after over 150 years.

However, with the increased in population, illegal cutting and the need for development, even a goodmanagement system could not maintain the sustainability of production from the natural forests.Although plantations were established to supplement the production of the natural forests, the demandwas too high, resulting in the drop in the Annual Allowable Cut (AAC) of the natural forests. This canbe seen from the following table.

Status of Teak Annual Allowable Cut

Prior to 1992‐93 After 1992‐93 Decreased %

No.of trees Ton No. of trees Ton No. of trees Ton

178,750 339,625 124,213 210,000 30.5 38.2

Moreover, people are too used to utilizing teak from the natural forests and maybe difficult to switch over to plantation teak.

Nowadays, countries like India, Thailand and Laos where teak occurs naturally, are no longer in a position to export teak from their natural forests. All are working towards production of teak from plantation. Many other countries that are outside and within the natural range of teak are also planting teak for better economic returns. The big question now is that will the plantation teak be good enough to supplement the dwindling supply of quality teak from the natural forests in Myanmar? Definitely plantation teak will not be able to match the size and heartwood ratio of the teak from the natural forests. Thus, effort should be made to produce more quality plantation teak and at the same time to improve suitable technology in the downstream processing of plantation teak with a minimum of wastage so as to assure sustainability of teak raw material in the region. Thus, Perum Perhutani of Indonesia and Forest Research Institute, Malaysia (FRIM) and Myanma Forest Products and Timber Merchant Association (MFPTMA) is also participating in this project.

Although teak was said to be introduced to Indonesia, it has now become a land race. Perum Perhutani, which will be the cooperating State Owned Forestry Enterprise of Indonesia has over 2.4 million hectors of forests and has been managing these forest under sustainable forest management for over a century. It

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also has the largest teak plantation of over 2,446,225ha. spread out from Banten to Banyuwangi. The Enterprise also has a very good R & D Center established as a center for teak research and development in

1998. Tree improvement is one among many means to accomplish their objectives and very successful

progress has been made in this respect. Majority of their plantations are established with good quality

improved planting stocks. As good clones produced from tree improvement programmes are extensively used in the plantations, it is envisaged that the production from their plantations will be of good timber quality in the near future. However, utilization of teak of all sizes including thinning, and all qualities from the plantations is therefore vital to Indonesia. The country is therefore cooperating in this project which will be beneficial for them as well as all the participating countries in the utilization of plantation teak.

Malaysia, although a country with no natural teak, is now planting teak. Most of their rubber plantations are now being replaced with teak, as rubber is labour intensive and teak is calculated to be more beneficial than rubber. Malaysia is therefore now cooperating in this project in their effort on the production and utilization of their plantation teak.

On the other hand, Myanma Forest Products and Timber Merchant Association (MFPTMA) which is a local group is also interested in this project. Due to the dwindling supply of natural teak logs for raw material of the timber industry in Myanmar, MFPTMA fully realized the need to also utilize the smaller size plantation teak logs. The Association therefore participated in the formulation of this project proposal and fully supported the project.

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Part I: CONTEXT

1.1 Origin

This project proposal is originated from the pre-project titled “Study on utilization of plantation teak” [CFC/ITTO/73FT PPD68/03 Rev.2(I)]. The pre-project’s implementation was supported by the ITTO, FD of Myanmar, and CFC and the consideration of the importance of the species in the past and present times.

In this pre-project, samples were collected at teak plantations of age 14, 20, 25 & 30 years from Yedashe, Oaktwin, Lewe and Thandwe Townships respectively. Physical properties, mechanical properties, anatomical properties, natural durability, drying behavior were tested, and sapwood content, juvenile wood content and growth rate were assessed at the Forest Research Institute (FRI) at Yezin. Summaries of the results obtained from the studies of the pre-project are as given below:

Physical properties – The specific gravity (SG) of plantation teak of ages 20, 25 & 30 years are not different and are very close to those of natural teak. Since SG is an indicator of strength, the study also indicated that the plantation teak of ages 20, 25 & 30 are not inferior to natural teak. However, the specimens tested were poorer in radial and tangential shrinkage than that of natural teak. Dimensional stability of the plantation teak tested is higher than those of natural teak.

Mechanical properties – In comparison to natural teak, plantation teak will be classed into lower strength groups although some properties are found to be higher in plantation teak.

Anatomical properties – General characteristics such as growth rings, colour, texture, grain, odour and luster of specimens studies were observed to be similar to each other. However, the percentage of heartwood is greater than that of the sapwood for specimens collected from 25 & 30 years old plantation.

Natural durability – Test with white rot fungus (Schizophyllum commune Fries) showed that plantation teak at age 30 years has the highest durability, and trees at different ages are not necessarily inferior in wood durability compared to natural teak.

Drying behavior – One inch thick plantation teak lumber can be air-dried or kiln-dried to 10% moisture content (MC) without any objectionable drying defects. There is no significant difference in the drying behavior of plantation teak at ages 14, 20, 25 & 30 years

Sapwood content – Sapwood content also was found to be very erratic. It ranges from 29.8% to 54.33% and cannot be correlated to age as the samples were collected from different localities.

Juvenile wood content – Juvenile wood content seems to decrease with increase in age. This indicates that better wood quality can be obtained with increase in the age of the plantation

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Growth Rate – Growth rate was found to be rather erratic as the specimens were collected from different sites and localities.

Results of previous studies in India and Myanmar indicated that generally, there is no significant difference in wood properties of plantation and natural grown teakwood. This may be true for long rotation plantations. However, the results of the studies on young plantations of the pre-project indicated that plantation grown teakwood, especially those from the age below 25 years are definitely inferior in wood quality to that of the natural grown teakwood in some respects. Studies on wood sample collected from a single site will give a more definite answer to this question.

Quality of wood from plantations established with good genetic material may, more or less, be comparable to that of wood from the natural forests. Thus, tree improvement activities will also be included as one of the objectives in this project.

On the other hand, utilization of young teakwood that may not be comparable to the natural teakwood should also be encouraged. Production of products such as finger-joint, glue-lamination and even additives to overcome the size and limitations of some physical properties of the plantation teak should be promoted. Training and demonstration on the production of these products with better machineries than what existed locally will also be considered in this project.

1.2 Relevance

1.2.1 Conformity with ITTO’s objectives and priorities

The project is in conformity with the following ITTO’s objectives and the contribution of the project to the objectives is as explained in italics below:

c.Contributing to sustainable development and to poverty alleviation;

Utilization and production of plantation teak will promote development in forest industry as well as export of timber product.

Formation of user groups in the villages near the Seed Production Areas (SPAs) as well as the right to collect quality seed from the SPA will contribute to poverty alleviation.

d.Enhancing the capacity of members to implement strategies for achieving exports of tropical timber and timber products from sustainably managed sources;

The stakeholders as well as the local community will be given trainings, thus enhancing their capacity to implement strategies for achieving exports of tropical timber and timber products from sustainably managed sources.

h.Improving market intelligence and encouraging information sharing on the international timber market with a view to ensuring greater transparency and better information on markets and market trends, including the gathering, compilation and dissemination of trade related data, including data related to species being traded;

Being a regional project, a good network will be formed thus, improving market intelligence and encouraging information sharing on the international timber market.

i. Promoting increased and further processing of tropical timber from sustainable sources in producer member countries, with a view to promoting their industrialization and thereby increasing their employment opportunities and export earnings;

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The object of the project itself is to promote sustainable supply of teak and to further increase the processing of teak with a view to promoting their industrialization and thereby increasing the employment opportunities and export earnings.

k. Improving marketing and distribution of tropical timber and timber product exports from sustainably managed and legally harvested sources and which are legally traded, including promoting consumer awareness;

The project will form an information network, thus, improving marketing and distribution of plantation teak and its product exports from sustainably managed and legally harvested sources.

r. Encouraging the members to recognize the role of forest-dependent indigenous and local communities in achieving sustainable forest management and develop strategies to enhance the capacity of these communities to sustainably manage tropical timber producing forests.

In this project, the local communities living nearby the SPAs and Hedge Gardens (HGs)sites will be involved in all the field activities from the very beginning. They will be given training on the establishment and management of SPA as well as on book keeping for their development work.

The project is also in conformity with some of the ITTO Action Plan. Its relevance to the Action Plan is explained in italics below:

Expected outcome 1/A: Promote private investment by facilitating information exchange on

investment opportunities

The project will develop sound balance between sustainable timber production and the processing capacity of the timber industry by promoting utilization of plantation teak and use of suitable technology in its utilization.

It will also clarify the benefits of downstream processing for creating or producing high value, internationally competitive products.

Expected outcome 2/A: Assess and update the impact of previous work on increasing

utilization efficiency, including the reduction of losses and waste throughout the production chain.

The project will encourage and support improved utilization efficiency, the increased use of small wood and wood residue in order to reduce losses and waste throughout the production chain.

Expected outcome 2/D: Promote the development of marketing, production, commercial and community-level skills in forest industry.

The project will enhance skills and effectiveness through training and exchange visits.

Expected outcome 4/G: Regularly analyze the market and product requirements and specifications that have to be met in order to develop exports of added-value forest products

The project will develop awareness of market and end-use requirements of plantation teak. Expected outcome 6/C: Review progress on and new opportunities for the management of

secondary tropical forests, the restoration of degraded tropical forests and the rehabilitation of degraded tropical forest land

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The project will secure adequate supplies of high-quality genetic material for use in forest rehabilitation and restoration efforts.

1.2.2 Relevance to the submitting country’s policies

Myanmar Forestry Sector has formulated its Forest Policy (1995) in a holistic and balanced manner within the overall context of the environment and sustainable development with full recognition of the forestry principles adopted at the United Nations Conference on Environment and Development 1992.

The policy has identified six imperatives which the Government gives the highest priority in order to achieve broader national goals and objectives. The imperatives are:

1. protection of soil, water, catchments, wildlife, biodiversity, plant and animal genetic resources and the environment;

2. managing the forests to ensure in perpetuity the level of benefit both tangible and intangible for the present and future generations. It also implies the maintenance and rational use and enhancement of the forest resources base to ensure ecological resilience and its contribution to socio-economic growth on a continuous basis

3. providing basic needs of the people for fuel, water, fodder, shelter, food and recreation; 4. efficiency to harness, in the socio-environmentally friendly manner, the full economic

potential of the forest resources through increased productivity, income tax revenue, foreign exchange earnings, employment, and encouraging domestic processing;

5. participation of the people in the conservation and utilization of the forests, and 6. public awareness on the vital role of the forests in the well being and socio-economic development of the nation.

The proposed project is directly, and in some cases, indirectly related with the majority of these six imperatives. It was mentioned in Section 4.4 of the policy statement that the forest industry in Myanmar has to be pursued with greater vigor than ever before and, unless the wood-based industry is transformed into a larger resource-based industry, the contribution of the forestry sector to the country would be jeopardized. More detailed emphasizes was also given on the importance of Forest Industry, Marketing and Trade in Section 6.4 of the forest policy statement.

The old Forest Act of 1902 was replaced by the new Forest Law which was enacted in 1992. The proposed project is also directly, and in some cases, indirectly related with some of the following basic principles of the new Forest Law (1992):

1. To implement the forest policy of the Government; 2. to implement the environmental conservation policy of the Government; 3. to promote the sector of public co-operation in implementing the forestry and the

environmental conservation policy of the Government; 4. to develop the economy of the State, to contribute towards the food, clothing and shelter

needs of the public and for perpetual enjoyment of benefits by conservation and protection of forests;

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5. to carry out in accordance with international agreements relating to conservation of forests and conservation of environment;

6. to prevent the dangers of destruction of forest and bio-diversity, outbreak of fires, infestation of insects and occurrence of plant disease;

7. to carry out simultaneously conservation of natural forests and establishment of forest plantations;

8. to contribute towards the fuel requirement of the country.

1.3 Target area

1.3.1 Geographic location

The target area within the country will be Yangon, East and West of Bago Yoma, Yezin, and Mandalay city. The tree improvement activities will be carried out at the East and West of Bago Yoma where there are good teak forests. The activities concerning training, wood industry, networking, etc. will be implemented mainly in Yangon and Mandalay. Research and testing will be done at the Forest Research Institute (FRI), Yezin (See Map 1). Trainings and workshops will also be carried out in Malaysia and Indonesia; the participating regional countries in this project (See Map 2).

1.3.2 Social, cultural, economic and environmental aspects

The local community at the East and West Bago Yoma are mainly poor and ad hoc landless laborers depending greatly on the forests. They cut bamboos, collect firewood; honey and other minor forests produce for their livelihood. Few are farmers who also participate in forest operations during the dry season when there is no farming activity. Forestry activities are also a source of income for this group of community.

The second target group is the workers at the wood industries. They are also poor and live mainly in the Industrial Zones at the outskirts of urban areas. The development in wood industries through utilization of plantation teak will also benefit these factory workers.

The third target group is the entrepreneurs who invest in wood industries. By upgrading their industries for utilization of small diameter plantation teak, more raw materials will be available for production of value added teak products, thus, increasing their production, benefiting all those involving in the production of both teak raw material and teak value added products.

1.4 Expected outcomes at project completion

At the completion of the project, better quality plantation teak logs will be produced for downstream processing of value added plantation teak products. Awareness on the utilization of plantation teak will be raised, thus, promoting the utilization of plantation teak of all sizes. Consequently, this will supplement the production from the natural forests, therefore, reducing the pressure on the natural forests and at the same time conserving the environment.

Trainings for technicians and labourers on the production of plantation teak value added products will continue at the Myanma Timber Enterprice (MTE) /Myanma Forest Products and Timber Merchant Association (MFPTMA) Training School. More skilled technicians and labourers will be available

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which will facilitate the production of plantation teak value added products and investment on industries for the utilization of plantation teak. It is also envisaged that the machineries in the wood working industries will be upgraded so as to suite the utilization of smaller plantation teak logs.

The network formed will help in the exchange of information thereby promoting the trading of plantation teak both locally and internationally. The show room for plantation teak value added products will continue to be maintained and MTE/MFPTMA will participate regularly in the local and international trade fare.

Part II: PROJECT RATIONALE AND OBJECTIVES

2.1 Rationale

2.1.1 Institutional set-up and organizational issues

The project will be implemented under the cooperation of the Forest Research Institute, Myanma Timber Enterprise, Myanma Forest Product and Timber Merchant Association, Forest Research Institute, Malaysia (FRIM) and Perum Perhutani of Indonesia.

The FRI is a research institute that will support the project in the area of research. The institute covers an area of 280 acres with 47 researchers out of which 15 are from the wood products division. Administration and support staffs comprised of 121 persons. However, most of the researchers are not sufficiently trained in the field of forest industry and marketing but, it will be supported by the MTE, MFPTMA, FRIM and Perum Perhutani that have experience in forest industry and marketing.

In Myanmar, forest management and conservation are carried out by the FD while timber extraction, milling and marketing are executed by the MTE. The MTE is a government enterprise operating with a total staff of 23,760 that are spread out all over the country. Being an enterprise that is also involved in marketing, it is earning over 21215.220 million kyats annually for the country.

The MFPTMA is a very strong Forest Product & Timber Merchant Association with the Minister of Forestry acting as honorary patron of the Association. It also works very closely with the Ministry of Forestry, FD and MTE. The objectives of the Association is (1) to protect forest resources and by-product from unnecessary loss & deforestation, (2) to make concerted effort in wood-based industry related activities under the guidance of the Ministry of Forestry, (3) To broaden the wood base related knowledge and technical know-how of members, (4) to cooperate in forest farm project undertaken by the Ministry of Forestry, (5) to help member industrialists for extending existing market to new international market, (6) to promote the emergence of lesser-used wood and non-wood products market, and (7) to contact with international organizations and invite them for the promotion of wood base technique and investment. The Association has 340 individual persons and 902 companies, making a total of 1242 members. Up till the end of year 2008, it was working with a revolving fund of approximately Ks.160,844,600.

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2.1.2 Stakeholders analysis

Stakeholder group Characteristics Problems, needs, interests

Potentials Involvement in the project

Primary stakeholders Local community (SPA establishment)

Landless, work on ad-hoc basis

Poor and need regular income

Have local knowledge and good at forest work

Members of IG group. Establishment and management of SPA and seed collection

Plantation workers (nursery & Hedge garden)

Landless seasonal workers

Poor, lack capital, and need regular income

Have local knowledge and ability to do strenuous job

Establishment of hedge garden and nursery work

Wood-based industry workers

Casual workers, shifting job for better income

Low income, better salary

Have minimum experience in industrial processing

As permanent workers in wood-based industry

Secondary stakeholders Companies investing in teak plantation

Initiation in plantation investment

Lack of technology and skilled staff, long term investment

Can provide sufficient investment, increase market for timber produced

Plantation teak producer and tree improvement activities

Wood-based industries/furniture manufacturers

Small and medium size industries

Complete utilization of raw materials with minimum wastage, need to install suitable modern machines/tools and procedure for distribution of plantation teak to private entrepreneurs should be direct and simplified

Can provide facilities to process plantation teak, secure employment, increase production

Downstream processing, production of value added products

Domestic consumers Preference for teak from natural forests, not used to utilizing plantation teak

Scarcity of teak wood in domestic market, high price of teak products

Increased consumption and utilization of plantation teak, cheaper teak wood products

Consumers and promoters of plantation teak

Forest Department Managing natural forests and establishing teak plantation

Great pressure on natural forests for teak production, establishment of quality teak plantation, facilitate SFM

Have capacity for management of teak plantation, the production from which can reduce pressure on natural forests

Project implementing agency

Participating countries (Indonesia, India & Thailand)

Key teak producers Full utilization of plantation teak, suitable downstream processing and

Capable of producing quality plantation teak, experience in wood-based industry

Participating regional countries

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marketing

Tertiary stakeholders Local people Residing near the

forests but not directly involved in project activities

Agriculture activities affected due to change in environment

Awareness of environmental conservation,

Environmental conservationists, support project activities by their participation

Local authorities Policy makers, Administraters

Conflicting interest for other land uses

Support political commitment, smooth project implementation

Administratively assist in the project implementation

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Effect

Key problem

Causes

Existing teak

timber market is

mainly for natural

teak

Lack of market

information

network

Lack of market

intelligence

Sub‐ causes

2.1.3 Problem Analysis

Lack of knowledge

on utilization of

plantation teak

among the

stakeholders

Wood‐based industries

lack capacity and

technology in

processing of

plantation teak

Trade and marketing

of plantation teak is

not yet developed

Establishment of

improved teak

plantations for the

production of quality

teak wood is needed

Existing regulatory

principles and

procedures are

incompatible with

market economy

Shortage of teak wood supply for wood‐

based industry

Natural teak forests are rapidly depleting

Plantation teak is not usually

utilized

Persistence of

consumers’

traditional

preference for

natural teak

Limited research on

different aspects of

utilization of

plantation teak

Dissemination of

research findings is

weak among the

stakeholders

Existing machines

and tools are

inadequate

Need of technical

skills in the

processing of small

wood

Existing teak

plantations in

Myanmar are planted

with seed collected

without any

consideration on

quality

Use of improved seeds

or plantlets from SPA,

CSO, hedge garden or

tissue culture is

needed

Present forest rules

and regulations are

oriented towards

natural forest

management

Policy on the disposal

of thinning posts is

too rigid.

Private sector’s lack

of awareness on

forest rules and

regulations

Page 16 of 55

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2.1.4 Objectives Tree

There is adequate

knowledge on

utilization of plantation

teak among the

stakeholders

Wood based industries

have capacity and

technology in

processing of

plantation teak

Trade and marketing

of plantation teak is

developed

Establishment of

improved teak

plantations for the

production of quality

teak wood is not needed

Existing regulatory

principles and

procedures are

compatible with

market economy

Teak wood supply for wood‐based

industry is sufficient

Natural teak forests are not depleted

Plantation teak is utilized

There is no

consumers’

traditional

preference for

natural teak

Sufficient research

on different aspects

of utilization of

plantation teak

Research findings are

well disseminated

among the

stakeholders

Existing machines

and tools are

adequate

Have sufficient

technical skills in

the processing of

small wood

Existing teak

plantations in

Myanmar are planted

with seed collected

from SPAs & CSOs and

plantlets from Hedge

Gardens

Improved seeds or

plantlets from SPA,

CSO, hedge garden or

tissue culture are used

Present forest rules

and regulations are

oriented towards

both natural forest

and plantation

management

Policy on the disposal

of thinning posts is

more flexible.

Private sectors are

aware of the forest

rules and regulations

Existing teak

timber market is

no longer for

natural teak only

Have market

information

network

Have good market

intelligence

Page 17 of 55

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2.1.5 The logical framework matrix

Strategy for intervention Measurable indicators Means of verification Key assumption

Development Objective To promote sustainable supply of plantation teak from quality teak plantations in order to supplement the supply of quality teak from the natural forests. Apart from the production of quality plantation teak, its utilization will also be promoted through suitable downstream processing and export of teak small log and value added products. The project will be in support of sufficient supply of quality teak production, so that internationally, trade of high quality tropical timber would be sustained and enhanced for the benefits of both producer and consumer member countries of ITTO.

The economy of the country is enhanced through production of over 210,000 tons of both small and large size high quality teak logs.

‐Statistical Year Book, Myanmar. ‐Annual reports of the Ministry of Forestry.

‐More good quality thinning posts, poles and plantation teak will be produced. ‐Continued participation of the local community in protection of the SPAs and production of quality seed. ‐Forest industry tailored for both small and big teak logs will be developed for the production of all kinds of value added products for export as well as internal market.

Specific Objective To utilize improve quality plantation teak logs in the production and marketing of value added products through promotion of downstream processing, marketing and networking among teak producing countries in the region.

‐100 acres of SPAs established. 15 acres of hedge gardens established ‐A grading rule for plantation produced. ‐Multipurpose wood working machine installed and training conducted.

‐Forest Department statistics. ‐Progress reports ‐Project technical reports. ‐Project terminal report. ‐A document on plantation teak grading rule. ‐Project progress report.

‐More good quality seeds and high quality plantlets will be available for planting. ‐Awareness on the need to use quality seed/plantlets in plantation will be raised. ‐More SPAs and Hedge Gardens will be established ‐Plantation teak grading rule will be widely used by the FD and the Private Entrepreneurs in the trading of plantation teak logs. ‐Skillful technicians will be available for the private entrepreneurs for further investment.

21

‐Tested samples of plantation teak value added products produced. ‐Guideline for the production of value added products produced. ‐Marketing and trading of plantation teak products enhanced through formation of permanent show room and market information network

‐Project terminal report. ‐A document on guideline for the production of value added products. ‐Established show room. ‐Established market information network. ‐Documents on exchange of information. ‐Project progress report. ‐Project terminal report.

‐ Samples of tested plantation teak value added products will continue to be produced. ‐Private entrepreneurs will be encouraged to produce more value added products ‐The show room and the market information network will exist sustainably.

Output 1.1 Quality seed and quality plantlets produced for distribution

‐100 acres of SPAs established. ‐3,340 kg of quality teak seeds will be produced annually. 15 acres of hedge garden established. ‐About 2,500,000 quality plantlets produced annually.

‐Forest Department statistics. ‐Progress reports. ‐Project technical reports. ‐Project terminal report. ‐Forest Department statistics. ‐Progress reports ‐Project technical reports. ‐Project terminal report.

‐Quality teak seeds will be used for planting . ‐Awareness on the need to use quality seed will be raised. ‐More SPAs will be established ‐Quality plantlets will be used in the establishment of teak plantation. ‐Awareness on the benefit of using quality plantlets in the establishment of teak plantations will be raised. ‐More hedge gardens will be raised and quality plantlets produced.

Output 1.2 The capacity of the local community, private entrepreneurs and field staff of the Forest Department enhanced through training, workshop and study tours

‐Training on SPA & Hedge Garden management conducted in the first year. ‐In country study tour conducted in the second year.

‐Training report. ‐In country study tour report. ‐Overseas study tour report.

‐The capacity of the local community, private entrepreneurs and field staff of the FD on SPA & Hedge Garden management will be enhanced.

22

‐Overseas study tour conducted in the second year. ‐Workshop conducted in the third year.

‐Workshop proceedings. ‐Progress report. ‐Technical reports. ‐Project terminal report.

‐More SPAs & Hedge Gardens will be raised. ‐Work on IG will be enhanced.

Output 1.3 The livelihood of the local communities enhanced

‐SPA handed over to the community on Usufruct basis. Quality teak seeds collected and sold by the communities. ‐Communities benefiting from the IG activities supported by the project.

‐Progress report. ‐Project technical report. ‐Project terminal report.

‐Communities maintaining SPA, collecting and selling quality teak seed at a good price. ‐Communities continue to get involved in the IG activities.

Output 1.4 A grading rule for plantation teak is developed

A grading rule for plantation teak will be produced and documented.

‐A document on plantation teak grading rule. ‐Project progress report. ‐Project terminal report.

Plantation teak grading rule will be widely used by the FD, participating regional countries and the Private Entrepreneurs in the trading of plantation teak logs.

Output 1.5 Compatible technology for downstream processing of different sizes of plantation teak is gained and transferred to appropriate stakeholders

‐Overseas study tour conducted. ‐Multipurpose wood working machine installed and training conducted. ‐Training for appropriate stakeholders conducted.

‐Study tour report. ‐Project progress report. ‐Training reports. ‐Project terminal report.

‐The capacity of the study tour group on the utilization of small timber will be enhanced. ‐Most suitable multipurpose wood working machine will be purchased, installed and utilized. ‐Skillful technicians will be available for the private entrepreneurs for further investment.

Output 1.6 Samples of various value added products utilizing plantation teak are produced and available for awareness raising and exhibition both locally and internationally.

‐Various samples of tested plantation teak value added products will be produced. ‐Guideline for the production of value added products produced and distributed.

‐Project progress report. ‐Document on the guideline for the production of value added products. ‐Project terminal report.

Samples of tested plantation teak value added products will continue to be produced.

23

Output 1.7 Awareness on plantation teak products is raised among the producers and consumers.

‐Permanent show room for value added plantation teak products established. ‐Participation in the International /National trade fare and exhibition ‐Publications and pamphlets produced

‐Established show room. ‐Project progress report. ‐Project terminal report. ‐Publications and pamphlets .

‐The show room will be permanently kept and maintained. ‐Awareness on utilization of plantation teak in the production of value added products will be raised both locally and internationally.

Output 1.8 Market information network on plantation teak product is established.

‐Market information network existed.

‐Documents on exchange of information. ‐Project progress report. ‐Project terminal report.

‐Good cooperation among network members. ‐Sustainability of the network.

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2.2 Objectives

2.2.1 Development objective and impact indicators

To promote sustainable supply of plantation teak from quality teak plantations in order to supplement the supply of quality teak from the natural forests. Apart from the production of quality plantation teak, its utilization will also be promoted through suitable downstream processing and export of teak small logs and value added products.

The project will be in support of sufficient supply of quality teak production, so that internationally, trade of high quality tropical timber would be sustained and enhanced for the benefits of both producer and consumer member countries of ITTO.

2.2.2 Specific objective and outcome indicators

To utilize improve quality plantation teak logs in the production and marketing of value added products through promotion of downstream processing, marketing and networking among teak producing countries in the region.

25

PART III. DESCRIPTION OF PROJECT INTERVENTIONS

3.1 Outputs and Activities

3.1.1 Outputs

Output 1.1: Quality seed and quality plantlets produced for distribution

Output 1.2: The capacity of the local community, private entrepreneurs and field staff of the Forest Department enhanced through training, workshop and study tours

Output 1.3: The livelihood of the local community is enhanced

Output 1.4: A grading rule for plantation teak is developed

Output 1.5: Compatible technology for downstream processing of different sizes of plantation teak is gained and transferred to appropriate stakeholders

Output 1.6: Samples of various value added products utilizing plantation teak are developed and available for awareness raising and exhibition both locally and internationally.

Output 1.7: Awareness on plantation teak products is raised among the producers and consumers

Output 1.8: Market Information Network on Plantation Teak Product is established

3.1.2 Activities

Output 1.1: Quality seed and quality plantlets produced for distribution.

Activity 1.1.1: Selection of 100 acres of appropriate teak plantation for establishment of SPA at the East and West Bago Yoma

Activity 1.1.2: SPA will be established by weeding, thinning, demarcation, fire protection, etc.

Activity 1.1.3: Seed will be collected, stored and distributed for planting in the next season

Activity 1.1.4: Sites will be selected and 5 acres each of HGs and a nursery will be established at the East and West Bago Yoma respectively, making a total of 10 acres of HGs and two nurseries. A spacing of 3 ft. x 3 ft. will be adopted for the HG. The HGs will be jointly managed by the FD and interested private entrepreneurs during and after the termination of the project. Five acres of HG will also be established at Malaysia. Tissue cultured plantlets of good clones will be imported from Thailand for this HG as it might be difficult to find plus trees from the newly planted plantations in Malaysia.

26

Activity 1.1.5: Cuttings from the HGs will be planted in the nurseries and distributed for planting in the planting season. Local community will also be encouraged to participate in this activity.

Activity 1.1.6: Clonal identification test will be conducted with clones from the selected plus trees.

Output 1.2: The capacity of the local community, private entrepreneurs and field staff of the Forest Department enhanced through training, workshop and study tours

Activity 1.2.1: Trainings and workshops will be organized for the staff of FD, MTE, MFPTMA, FRIM, Perum Perhutani, private entrepreneurs and the local communities

Activity 1.2.2: In country study tour will be conducted for the local communities, private entrepreneurs and the staff of the FD and MTE while, study tour abroad will be conducted for qualified private entrepreneurs and the project staffs.

Output 1.3: The livelihood of the local communities is enhanced

Activity 1.3.1: Income Generation (IG) groups will be formed and SPAs will be handed over to the group in usufruct basis after formation

Activity 1.3.2: IG activities with project support will be introduced so as to supplement the income of the local community from teak seed

Output 1.4: A grading rule for plantation teak log is developed

Activity 1.4.1: Information on the grading rules of plantation teak logs developed in other countries will be collected and reviewed. This activity will also be participated by FRIM and Perum Perhutani.

Activity 1.4.2: Plantation teak logs of different sizes will be assessed and used as a basis for the development of grading rules

Activity 1.4.3: Based on the information collected, actual assessment of the plantation teak logs and the existing grading rules for teak, grading rules for plantation teak logs will be developed.

Output 1.5: Compatible technology for downstream processing of different sizes of plantation teak logs is gained and transferred to appropriate stakeholders

Activity 1.5.1: Overseas study tour on industrial processing of plantation teak will be organized and survey on suitable primary processing and multi-purpose woodworking machines will also be conducted. Prior to the study tour, survey on the locally existing multi-purpose woodworking machines will also be carried out.

27

Activity 1.5.2: Suitable machines for industrial processing of plantation teak logs will be purchased and installed.

Activity 1.5.3: Training for technical level operators for handling of advanced industrial processing machine will be organized. Local training for transferring processing technology will also be carried out by the trained technical level operators.

Output 1.6: Samples of various value added products utilizing plantation teak logs are produced and guidelines distributed to stakeholders to encourage mass scale production.

Activity 1.6.1: Value-added wood based products using plantation teak logs are produced in experimental scale and the quality of the products is tested.

Activity 1.6.2: Guideline for the production of value-added wood based products will be produced and distributed to the stakeholders to encourage mass scale production.

Output 1.7: Awareness on plantation teak products is raised among the producers and consumers both locally and internationally.

Activity 1.7.1: Permanent show room for plantation teak value added products will be established in cooperation with MTE and MFPTMA.

Activity 1.7.2: Participate in international and domestic trade fare/exhibition

Activity 1.7.3: Conduct awareness raising activities on the utilization of plantation teak through different media, including web-site.

Output 1.8: Market Information Network on Plantation Teak Products is established

Activity 1.8.1: Regional partners for information network on plantation teak utilization will be identified and network established.

Activity 1.8.2: Regional workshops on utilization of plantation teak will be organized.

Activity 1.8.3: Exchange visits between Malaysia, Indonesia and Myanmar regarding marketing situations and production techniques will be organized

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3.2. Implementation approaches and methods

The project will work in collaboration with all stakeholders directly or indirectly interested in the production and utilization of plantation teak and conservation of the natural forests. Using the participatory and development approaches, it will encourage interested groups to participate in the development of tree improvement work for the production of high quality plantation teak. The production of quality logs both from the plantations and natural forests, resulting in sufficient supply of raw material, will encourage the stakeholders to upgrade their industry as well as their technical knowhow in the utilization of plantation teak as well.

Production of quality teak logs from plantation: Nowadays, teak plantations are being established by private entrepreneurs extensively. However, seeds used for establishment are haphazardly collected. The quality of the logs produced from these plantations may not be of high quality. Normally, plantation teak logs are smaller in size than natural teak. In order to get good outturn that is as close to that of natural big teak logs, it is important that logs of good form and quality are produced from the plantations. This will be done through tree improvement work such as establishment of SPAs and Hedge Gardens and using high quality good planting materials from these sources. In order to manage and protect these SPAs and Hedge Gardens, the local community will be encouraged to participate in the establishment of these sources and trained to manage them. The SPAs will be handed over to the local community in usufruct basis so as to give them the sense of ownership and manage and protect the area even after the completion of project. Income generation activities with support from the project will also be organized so as to supplement the income of the community that will be received from collecting and selling teak seeds.

Utilization of plantation teak: Local wood industries are used to converting large size teak logs and conversion of smaller size plantation teak logs may require upgrading their machineries and technical knowhow for the production of teak value added products. The products as well as the machines used and technique may be slightly different by utilizing smaller plantation teak logs. After surveying the existing local wood working industries, a suitable downstream wood working unit will be purchased and installed at the MTE/ MFPTMA training school. Training will be conducted both for technical as well as labourer levels from both the MTE as well as private wood industries. Training or Workshop/Seminar on utilization of small size logs will also be conducted in Malaysia and Indonesia for technical level. In-country as well as overseas study tour will be organized so as to raise the awareness of the stakeholders.

Marketing and networking: Samples of value added products of plantation teak will be tested at FRI and guidelines for production will be produced. The tested products will be exhibited at a permanent show room. The products will also be exhibited at the local as well as international trade fair. In order to raise the awareness on the utilization of plantation teak, the products as well as the properties of the logs will be advertized through different media. Grading rules for plantation teak will be constructed so as to facilitate marketing of the logs. Marketing network of plantation teak will also be formed among interested countries that wish to participate.

29

Output/Activities Responsible Party

Yearly Quarter Year 1 Year 2 Year 3

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Output 1.1 Quality seed and quality plantlets produced for distribution

Activity 1.1.1 Selection of 100 acres of appropriate teak plantation for establishment of SPA at the East and West Bago Yoma NPM, Project Unit, FRI

Activity 1.1.2 SPA will be established by weeding, thinning, demarcation, fire protection, etc. NPM, Project Unit, FRI

Activity 1.1.3 Seed will be collected, stored and distributed for planting in the next season NPM, Project Unit, FRI

Activity 1.1.4 Sites will be selected and 5 acres of Hedge Gardens and nursery will be established at the East and West Bago Yoma respectively, Five acres of hedge garden will also be established at Malaysia. Tissue cultured plantlets of good clones will be imported from Thailand. NPM, Project Unit, FRI

Activity 1.1.5 Cutting from the Hedge Gardens will be planted in the nurseries and distributed for planting during planting season. NPM, Project Unit, FRI

Activity 1.1.6 Clonal identification test will be conducted with clones from the selected plus trees. NPM, Project Unit, FRI

Output 1.2 The capacity of the local community, private entrepreneurs and field staff of the Forest Department enhanced through training, workshop and study tour

Activity 1.2.1 Trainings and workshops will be organized for the staff of FD, MTE, private entrepreneurs and the local communities

NPM, MFPTMA, FRI, Project Unit

3.3 Work Plan

30

Activity 1.2.2 In country study tour will be conducted for the local communities, private entrepreneurs and the staff of the FD and MTE while, study tour abroad will be conducted for qualified private entrepreneurs and the project staffs.

NPM, Project Unit, FD

Output 1.3 The livelihood of the local community is enhanced

Activity 1.3.1 Income Generation (IG) groups will be formed and SPAs will be handed over to the group in usufruct basis after formation

NPM, Project, Unit, FD

Activity 1.3.2 IG activities with project support will be introduced NPM, Project, Unit, FD

Output 2.1 A grading rule for plantation teak log is developed

Activity 2.1.1 Information on the grading rules of plantation teak logs developed in other countries will be collected and reviewed.

NPM, MTE/MFPTMA, Project Unit

Activity 2.1.2 Plantation teak logs of different sizes will be assessed and used as a basis for the development of grading rules.


Activity 2.1.3 Based on the information collected, actual assessment of the plantation teak logs and the existing grading rules for teak, grading rules for plantation teak logs will be developed.


Output 2.2 Compatible technology for downstream processing of different sizes of plantation teak logs is gained and transferred to appropriate stakeholders

Activity 2.2.1 Overseas study tour on industrial processing of plantation teak will


31

be organized and survey on suitable downstream processing machines will also be conducted. Prior to the study tour, survey on the locally existing multi-purpose woodworking machines will also be carried out. Activity 2.2.2 Suitable machines for industrial processing of plantation teak logs will be purchased and installed.


Activity 2.2.3 Training for technical level operators for handling of advanced industrial processing machine will be organized. Local training for transferring processing technology will also be carried out by the trained technical level operators. NPM, MTE/MFPTMA,

Project Unit

Output 2.3 Samples of various value added products utilizing plantation teak logs are produced and guidelines distributed to stakeholders to encourage mass scale production.

Activity 2.3.1 Value-added wood based products using plantation teak logs are produced in experimental scale and the quality of the products is tested.

NPM, MTE/MFPTMA, FRI

Activity 2.3.2 Guideline for the production of value-added wood based products will be produced and distributed to the stakeholders to encourage mass scale production

NPM, MTE/MFPTMA, FRI

Output 3.1 Awareness on plantation teak products is raised among the producers and consumers both locally and internationally.

Activity 3.1.1 Permanent show room for plantation teak value added products will be established in cooperation with Myanma Timber Enterprise and Myanmar Forest Products and Timber Merchant Association.


32

Activity 3.1.2 Participate and organize international and domestic trade fare/exhibition

NPM, MFPTMA, Project staff

Activity 3.1.3 Conduct awareness raising activities on the utilization of plantation teak through different media including web-site. NPM, MTE/MFPTMA,

FRI, Project Unit

Output 3.2 Market Information Network on Plantation Teak Products is established

Activity 3.2.1 Regional partners for information network on plantation teak utilization will be identified and network established.

NPM, MTE/MFPTMA, Regional Partners, Project Unit

Activity 3.2.2 Regional workshops on utilization of plantation teak will be organized among participating member countries.

NPM, MTE/MFPTMA, FRI, Regional Partners, Project Unit

Activity 3.2.3 Exchange visits between participating countries regarding marketing situation and production technique will be organized

NPM, MTE/MFPTMA, FRI, Regional Partners, Project Unit

33

3.4 Budget 3.4.1 Budget by Activity: ITTO Contribution in (USD) (Final)

OUTPUT/ACTIVITIES 10

Project personnel

20 Sub-

contract

30 Duty

Travel

40 Capital

item

50 Consum-able item

60 Miscellan-

eous

Grand Total

Output 1.1 Quality seed and quality plantlets produced for distribution

Activity 1.1.1 Selection of 100 acres of appropriate teak plantation for establishment of SPA at the East and West Bago Yoma

4,200 2,364 25,000 31,564

Activity 1.1.2 SPA will be established by weeding, thinning, demarcation, fire protection, etc.

3,800 10,700 2,784 17,284

Activity 1.1.3 Seed will be collected, stored and distributed for planting in the next season

3,800 500 560 300 400 5,560

Activity 1.1.4 Sites will be selected and 5 acres of Hedge Gardens and nursery will be established at the East and West Bago Yoma respectively, Five acres of hedge garden will also be established at Malaysia. Tissue cultured plantlets of good clones will be imported from Thailand.

30,300 107,000 684 1,900 139,884

Activity 1.1.5 Cutting from the Hedge Gardens will be planted in the nurseries and distributed for planting during planting season.

6,600 684 500 7,784

Activity 1.1.6 Clonal identification test will be conducted with clones from the selected plus trees.

5,100 684 1,800 7,584

Output 1.2 The capacity of the local community, private entrepreneurs and field staff of the Forest Department enhanced through training, workshop and study tours

34

Activity 1.2.1 Trainings and workshops will be organized for the staff of FD, MTE, private entrepreneurs and the local communities

15,000 22,400 38,900 7,700 5,000 2,000 91,000

Activity 1.2.2 In country study tour will be conducted for the local communities, private entrepreneurs and the staff of the FD and MTE while, study tour abroad will be conducted for qualified private entrepreneurs and the project staffs.

10,500 10,900 500 1,000 22,900

Output 1.3 The livelihood of the local community is enhanced

Activity 1.3.1 Income Generation (IG) groups will be formed and SPAs will be handed over to the group in usufruct basis after formation

3,600 3,570 7,170

Activity 1.3.2 IG activities with project support will be introduced

5,700 6,000 1,000 1,000 500 14,200

Output 2.1 A grading rule for plantation teak log is developed

Activity 2.1.1 Information on the grading rules of plantation teak logs developed in other countries will be collected and reviewed.

3,000 1,000 500 4,500

Activity 2.1.2 Plantation teak logs of different sizes will be assessed and used as a basis for the development of grading rules.

6,600 1,000 500 8,100

Activity 2.1.3 Based on the information collected, actual assessment of the plantation teak logs and the existing grading rules for teak, grading rules for plantation teak logs will be developed.

3,600 1,000 500 5,100

Output 2.2 Compatible technology for

35

downstream processing of different sizes of plantation teak logs is gained and transferred to appropriate stakeholders Activity 2.2.1 Overseas study tour on industrial processing of plantation teak will be organized and survey on suitable downstream processing machines will also be conducted. Prior to the study tour, survey on the locally existing multi-purpose woodworking machines will also be carried out.

3,000 6,600 500 10,100

Activity 2.2.2 Suitable machines for industrial processing of plantation teak logs will be purchased and installed.

3,600 1,120 100,000 104,720

Activity 2.2.3 Training for technical level operators for handling of advanced industrial processing machine will be organized. Local training for transferring processing technology will also be carried out by the trained technical level operators.

6,400 1,970 200 8,570

Output 2.3 Samples of various value added products utilizing plantation teak logs are produced and guidelines distributed to stakeholders to encourage mass scale production.

Activity 2.3.1 Value-added wood based products using plantation teak logs are produced in experimental scale and the quality of the products is tested.

18,500 4,000 2,120 10,000 4,500 800 39,920

Activity 2.3.2 Guideline for the production of value-added wood based products will be produced and distributed to the stakeholders to encourage mass scale production

2,400 2,000 1,120 500 100 6,120

Output 3.1 Awareness on plantation teak products is raised among the producers and

36

consumers both locally and internationally. Activity 3.1.1 Permanent show room for plantation teak value added products will be established in cooperation with Myanma Timber Enterprise and Myanmar Forest Products and Timber Merchant Association.

3,600 2,000 500 4,300 10,400

Activity 3.1.2 Participate and organize international and domestic trade fare/exhibition

9,400 9,460 500 19,360

Activity 3.1.3 Conduct awareness raising activities on the utilization of plantation teak through different media including web-site.

4,200 3,000 500 7,700

Output 3.2 Market Information Network on Plantation Teak Products is established

Activity 3.2.1 Regional partners for information network on plantation teak utilization will be identified and network established.

13,000 2,590 1,000 1,000 1,000 18,590

Activity 3.2.2 Regional workshops on utilization of plantation teak will be organized among participating member countries.

8,600 4,000 14,650 4,000 2,000 33,250

Activity 3.2.3 Exchange visits between participating countries regarding marketing situation and production technique will be organized

4,000 17,100 600 21,700

Total 178,500 161,600 119,360 150,200 22,200 11,200 643,060

37

3.4.2 Consolidated Yearly Project Budget Contribution by GOM (Kyats)

Budget Component Total Year 1 Year 2 Year 3

10 Project Personnel

11. National Experts

(1) National Project Manager (1x250000x36) 9,000,000 3,000,000 3,000,000 3,000,000

(2) 3xSection Leaders (3x150000x36) 16,200,000 5,400,000 5,400,000 5,400,000

(3) Technical officers (9x65000x36) 21,060,000 7,020,000 7,020,000 7,020,000

12. National Consultants

National Project Coordinator

Processing x 4mm (3mm+1mm)

Marketing x3mm

Tree Improvement x 3mm

Research & training x 3mm

13. Support and Labourer

13.1 Secretary 1 x 36mm

13.2 Office assistant 1 x 36mm

13.3 Clerical assistant 3x30000x36 3,240,000 1,080,000 1,080,000 1,080,000

13.4 Field staff (4x45000x36) 6,480,000 2,160,000 2,160,000 2,160,000

13.3 Driver‐Cum‐Messanger x 36mm

13.4 Unskilled Labourer 20 x 36mm

14. Fellowship and Training

15. International Consultants

Downstream processing x 1mm

Marketing x 1mm

Networking x 1mm

19. Component total

20 Sub‐contracts

21. Seed Production Areas

22. Hedge Garden establishment

23. Training and workshop

23. Community Development

24. Formulation of grading rules

25. Establishment of permanent show room

26. Production and testing of value added

wood based products

25. Publishing technical papers and

Workshop proceedings

38

30 29. Component total

Duty travel

31. Daily subsistence allowance

32. International travel

33. Local travel

34. Transport costs


Capital items

Premises 4,240,000 4,240,000

Land 1,800,000 1,800,000

41. 4x4 Inspection vehicle (1)

42. Downstream processing unit

43. Capital equipments

4 desk‐top computers

4 printers

1 photo copier

1 lap‐top computer

1 units air conditioners

4 digital cameras

Survey equipments

wood testing equipments (Hotpress, 5000)

Chain‐saw

Equipments for networking

4 GPS


Consumable items

51. Spares for wood working machine,

vehicles and other equipments

52. Fuel and utilities

53. Office supplies

54. Preparation of training materials

55. Preparation of extention materials

56. Plants, seeds, etc.


Miscellaneous

61. Sundry

62. Auditing


National management cost


39

Project monitoring and administration

81. ITTO monitoring & review

82. ITTO mid‐term evaluation

83. ITTO final evaluationn

84. ITTO ex‐post evaluation

Subtotal (11-82)

85. ITTO programme support (8% of 1‐82)

89. Subtotal

GRAND TOTAL 62,020,000

40

3.4.3 Consolidated Yearly Project Budget

Contribution by ITTO

Budget Component Total Year 1 Year 2 Year 3

10 Project Personnel

11. National Project Coordinator 54000 18000 18000 18000

12. National Consultants

Processing x 4mm (3mm+1mm) 4000 1000 1500 1500

Marketing x3mm 3000 ‐ 1500 1500

Tree Improvement x 3mm 3000 2000 1000

Research & training x 6mm 6000 1000 3000 2000

13. Support and Labourer

13.1 Secretary 1 x 36mm 10800 3600 3600 3600

13.2 Office assistant 1 x 36mm 3600 1200 1200 1200

13.3 Driver‐Cum‐Messanger x 36mm 5400 1800 1800 1800

13.4 Unskilled Labourer 20 x 36mm 36000 12000 12000 12000

14. Fellowship and Training 32700 6975 10500 15225

15. International Consultants

Downstream processing x 1mm 10000 ‐ 10000 ‐

Marketing x 1mm 10000 ‐ 10000

19. Component total 178500 47575 64100 66825

20 Sub‐contracts

21. Seed Production Areas 11200 5600 5600 ‐

22. Hedge Garden establishment 107000 53500 53500 ‐

23. Training and workshop 22400 3200 12800 6400

23. Community Development 6000 1000 2500 2500

24. Formulation of grading rules 3000 1500 1500 ‐

25. Establishment of permanent show room 2000 ‐ ‐ 2000

26. Production and testing of value added

wood based products 4000 ‐ 1000 3000

25. Publishing technical papers and

Workshop proceedings 6000 750 1500 3750

30 29. Component total 161600 65550 78400 17650

Duty travel

31. Daily subsistence allowance 42270 7425 16910 17935

41

32. International travel 42000 5625 14250 22125

33. Local travel 22920 4940 10630 7350

34. Transport costs 12170 3210 5115 3845

40 39. Component total 119360 21200 46905 51255

Capital items

41. 4x4 Inspection vehicle (1) 25000 25000 ‐ ‐

42. Downstream processing unit 100000 100000 ‐ ‐

43. Capital equipments

1 desk‐top computer 600 600 ‐ ‐

3 printers 500 500 ‐ ‐

1 photo copier 500 500 ‐ ‐

3 lap‐top computers 4500 4500 ‐ ‐

1 units air conditioner 300 300 ‐ ‐

3 digital cameras 1200 1200 ‐ ‐

Survey equipments 800 800 ‐ ‐

wood testing equipments 10000 5000 5000 ‐

Chain‐saw 4300 4300 ‐ ‐

Equipments for networking 1000 1000 ‐ ‐

3 GPS 1500 1500 ‐ ‐

50 49. Component total 150200 145200 5000 ‐

Consumable items

51. Spares for wood working machine,

vehicles and other equipments 2500 ‐ 800 1700

52. Fuel and utilities 7000 1000 3000 3000

53. Office supplies 8000 1000 3000 4000

54. Preparation of extention materials 2000 ‐ ‐ 2000

55. Plants, seeds, etc. 2700 1700 1000 ‐

60 59. Component total 22200 3700 7800 10700

Miscellaneous

61. Sundry 8500 450 3525 4525

62. Auditing 2700 900 900 900

70 69. Component total 11200 1350 4425 5425

National management cost

80 79. Component total 643060 284575 206630 151855

Project monitoring and administration

81. ITTO monitoring & review 15000 5000 5000 5000

42

82. ITTO mid‐term evaluation 5000 ‐ 5000 ‐

83. ITTO final evaluationn

84. ITTO ex‐post evaluation 17000 ‐ ‐ 17000

Subtotal (11-82) 663060 289575 216630 156855

85. ITTO programme support (8% of 1‐82) 53045 23167 17330 12548

89. Subtotal 90045 28167 27330 34548

90 Refund from the pre project 80000 ‐ ‐ ‐

GRAND TOTAL 733105 312742 233960 186403

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3.5 Assumptions, risks and sustainability

Social sustainability: The socio-economic needs of the local communities through sustainable management of SPAs, Hedge Gardens, production of plantation teak value added products will be addressed in this project. The local communities will be mobilized and sensitized so as to build a relationship between them and the project and get their participation in the implementation of the project. They will be encouraged to participate and work together with the forest department and project staffs in the establishment of SPAs, Hedge Gardens, nursery activities and production of value added plantation teak products. The SPAs will be handed over to the community on usufruct basis and teak seed will be collected by the community and sold to either FD or any organization that will give them a good price.

Women will be involved in seed collection, budding, grafting and nursery work. From the industrial side of the project, there are job opportunities for both men and women by participating as laborers in the production of the plantation teak value added products.

Moreover, community development activities such as income generation (IG) activities in the field of agriculture, livestock breeding, off-farm activities, etc. will also be implemented in this project. It is assumed that their socio-economic condition will improve with the income received from all the project activities and the support received from the project to perform their IG activities.

Technical sustainability: Teak occurs naturally in the south-east region of India, Myanmar, Thailand and Laos. Teak in Indonesia however, is said to be introduced and can now be considered as a land race. The species can be found in semi-evergreen forests, lower mixed deciduous forests, moist upper mixed deciduous forests, dry upper mixed deciduous forests and in Indaing or deciduous dipterocarp forests.

With the increase in population and the need for economic development of the countries in the world, the pressure on natural teak is immense. Myanmar is the only country left that is still exporting teak from the natural forests. However, the condition of the natural teak forests in Myanmar is also in a critical condition now. In order to supplement the production from the natural forests, vast areas of teak plantation are now being established. The country is establishing approximately 80,000 acres of plantation annually, and about 43% are teak. However, it is important that the plantation teak is as good as those produced from the natural forest so as to maintain the reputation of Myanmar teak in the international market and also make the local people accept using it. Therefore, good genetic material should be used in the establishment of teak plantation. At the same time, good gene pool in the natural forests should also be conserved for multiplication before most of the good trees are being exploited from the natural forests.

Myanmar people, in particular are not used to using plantation teak and the wood industry here also are tailored to using only large size timber from the natural forests. This habit should be changed and people should be sensitized to utilize plantation teak through training, exhibition, publication and different media. The industry within the country should also be introduced to

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modern multipurpose wood working machineries with which small timber can be utilized for making value added products.

In this project, provisions are made to produce good quality seed and high quality plantlets through establishment of SPAs and HGs with the participation of the local community.

SPAs will be established on the east and west sides of Bago Yoma. This will be implemented through selection of good teak plantations of age 20 years and over and heavy selection thinning will be carried out so as to remove the poor, forked, crooked, twisted and other malformed trees, leaving only the best dominant and co-dominant trees. The area will be cleared of weed and demarcated in order to facilitate seed collection. Interested local community from the nearby village will be mobilized and IG groups formed. Training on SPA management, book keeping and community development will be given to the IG groups. The members of the IG groups will participate starting from the selection of plantation, including thinning, weeding and demarcating of the SPAs. After establishment, the SPAs will be handed over to the IG groups in usufruct basis for collecting of teak seeds and selling them freely. Being seeds of good quality, this will generate good income to the interested community. In this way, it is expected that the IG groups will maintain and protect the SPAs for the benefit of collecting and selling the quality teak seed at a good price

At the same time, HGs will also be established by using clones from the plus trees already selected. The HGs will be established using 3ft. x 3ft. spacing. Initially, the shoots have to be cut every 2 weeks and repeated 4 times and discarded before cylindrical stem is produced. The shoots that came out after this can be used for planting. Each cutting should have 2-3 pairs of leaves. The cuttings have to be dipped in 2ppm per litre of IBA for 5 minutes before planting in polythene bags containing soil mixture. They are then placed in moist chamber with 80% humidity for 2-6 weeks. Rooting takes place in 3 weeks time. The chamber is opened slowly and the plantlets are moved to a nursery with 75% shade for 1 month. They can then be moved out in the open area and four months old plantlets can be planted out in the field. Some of the local community will also be participating in the establishment of HG and production of quality plantlets in the nursery through budding, grafting and cuttings. These activities will also generate good income for the groups. In order to supplement the income of the IG group, income generation activities, such as, micro-credit, poultry farming, agriculture activity, off farm activity, etc., will be organized for them. With the object of boosting up this activity, project support will also be given to the IG groups. A HG will also be established in Malaysia with tissue cultured quality seedlings from Thailand. Indonesia is quite advance in this field and project support may not be needed. The major part of the project which is concerned with forest industry will be initiated by sending a group of national experts on study tour to study the machineries used for production of value added products from small wood and also the products that are being produced with small size timber. Arrangements for purchase of downstream processing unit will be made with the project staffs and a suitable downstream processing unit purchased and installed. A first hand training by expert from the company where the machine is bought will be given to technical level personnel from MTE/MFPTMA Training schools. Further trainings will be given by these trainees to all

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stakeholders from the Government Service as well as private entrepreneurs and representatives from Malaysia and Indonesia. Samples of value added plantation teak wood products will be produced and tested. Guidelines will be printed and distributed to stakeholders to encourage mass scale production. In order to raise awareness on plantation teak products, permanent show room for plantation teak value added products will be established. Awareness raising activities on the utilization of plantation teak will be conducted through different media. Moreover, the project will also participate in domestic as well as international trade fare/exhibition. In order to support the trading of plantation teak and its products, market information network will be established, with countries interested in participating in this network. Regional workshops, training, and exchange visits between Myanmar, Malaysia and Indonesia will be organized so as to enhance the capacity of the stakeholders in the production of quality plantation teak wood and the utilization of plantation teak in the production of value added products.

Institutional sustainability: The local institutions that will be involved in this project will be the FRI of the Forest Department (FD), the MTE and the MFPTMA. The FRI of the FD and the MTE are Government organizations with budget supported by the Government and therefore their sustainability is assured. On the other hand, the MFPTMA is also an upcoming organization that deals with forest products and whose activities are supported by the FD. Majority of the forest industries are members of this association. Their sustainability also is unquestionable. Staffs of these organizations will be participating in most of the activities of the project including study tour and training programmes, and therefore, their capacities will develop to the required extent and will be in place at the end of the project.

Financial sustainability: As was mentioned under Institutional sustainability, the institutions that will be involved in the proposed project will be the FRI of the FD, the MTE which are government organizations and the MFPTMA that is supported by the timber merchants and timber industries in Myanmar. Therefore, there will be no problem for FRI and MTE to get regular budget allotment from the Government while MFPTMA is a financially strong organization. Therefore, there will be no financial problem in carrying on with the activities of the project beyond project termination.

Economic sustainability: From the part of the project concerning the production of quality timber, income generation group will be formed within the local communities, so that they can benefit from collecting quality teak seeds or producing quality plantlets and selling them to the FD or the private entrepreneurs that are establishing teak plantations. In order to supplement their income, training and other income generation activities will also be organized for them. From the timber utilization point of view, the stakeholders will be given training on the full utilization of small timber with as little waste as possible, thus, enhancing their production and income. Networking with interested countries will also benefit the stakeholders in the marketing of their products. At the same time there will be more job opportunities for factory workers and technicians.

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Political sustainability: It is the policy of the FD that the forest industry in Myanmar has to be pursued with greater vigor than ever before and, the government strongly believes that unless the wood-based industry is transformed into a larger resource-based industry, the contribution of the forestry sector to the country would be jeopardized. The policy also supports the conservation of natural forests and establishment of plantations. These commitments will continue after the completion of the project as it is the policy of the FD.

PART IV: IMPLEMENTATION ARRANGEMENTS

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4.1 Organizational structure and stakeholder involvement mechanisms

The project will be implemented under the overall supervision of the Ministry of Forestry (MOF). A Project Steering Committee (PSC) will be formed while the Executing Agency (EA) will be the Forest Department (FD) of the MOF. A project unit comprising of national consultants will be assisting the National Project Manager (NPM) in the technical aspects at all project sites. The FRI, MTE, MFPTMA, the Divisional Forests concerned and the Participating Regional Countries (PRC) will undertake the role of project implementation.

The project activities will be coordinated by the NPM of the EA under the guideline of the PSC and the EA.

The PSC will be chaired by the Director General of the Planning and Statistics Department (PSD) of the Ministry of Forestry. The structure of the PSC will be as follows:

Director General of the PSD --------------------------------------------------------- Chairman Director General of the FD ------------------------------------------------------------------- Member Managing Director of MTE ----------------------------------------------------------------- Member Representative from ITTO -------------------------------------------------------------------- Member Chairman of MFPTMA ----------------------------------------------------------------------- Member Director, of Planning and Statistics Division, FD ----------------------------------------- Member Director, Natural Forest and Plantation Division ------------------------------------------ Member Director, Training and Research Development Division ----------------------------------- Member Representative from Indonesia -------------------------------------------------------------- Member

Representative from Malaysia -------------------------------------------------------------- Member Representatives from donor countries ------------------------------------------------------- Members

Director, FRI ------------------------------------------------------------------------------------ Secretary Project Structure

Steering Committee

Forest Department

(EA)

National Project

Manager

Project Unit

National Consultants

Representatives from

Indonesia & Malaysia

Forest Research

Institute

MFPTMA

Project

Coordinator

MOF ITTO

Myanma Timber

Enterprise

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The role of the PSC is to guide and to monitor the project, to approve work plan, progress and annual reports, to examine the project management and to report to the ITTO Head Quarter. Its overall function is as project governance body.

4.2 Reporting, review, monitoring and evaluation

4.2.1 Arrangements for reporting

The project will submit bi-annual progress reports of the project to the ITTO Secretariat every six months. Annual reports will be submitted after the review of the Project Steering Committee. These reports will contain information on the project performance for each activity and, if possible, completed output. Project technical reports will be submitted to ITTO whenever technical results are available or within three months of the completion of the project. Other reports, on request of the ITTO Head Quarter will also be made available.

An independent financial auditor will also be appointed to audit the financial cash flow of the Executing Agency and reports of the auditing will be submitted to ITTO. On project completion, a final completion report will be submitted to ITTO within three months of the date of completion.

4.2.2 Arrangement for ITTO monitoring and review

Every year, ITTO will carry out a project monitoring and review at the site of the activity of the project. Monitoring visits by ITTO representative(s) may be fixed by the ITTO in consultation with the Executing Agency. The Project Steering Committee meeting will also be convened each year in order to review the general progress of the project, to solve unexpected problems and to endorse the PSC minutes to the ITTO. Appropriate time for monitoring visit is in February every year, and Project Steering Committee meeting will be planned to coincide with this visit. A workshop will be held towards the completion of the project in order to approve its results.

4.3 Dissemination and mainstreaming of project learning

4.3.1 Dissemination of project results

The results of the project will be disseminated through the establishment of permanent show room of value added products produced from plantation teak and, participating in the local as well as international trade fair will be another source. Workshops will also be held for the stakeholders. Brochures will be produced and the utilization of the plantation teak will be advertised through different media. Exchange visits by the stakeholders will also be a good source for the dissemination of the project results. The results will also be disseminated through formation of a marketing network.

4.3.2 Mainstreaming project learning

In Myanmar, teak plantations are normally established using seeds collected haphazardly. The quality of the wood produced from plantations is therefore not assured. As it is necessary to maintain the reputation of Myanmar teak, the wood produced from plantations should be almost as good as those produce from the natural forests. It is thus important to introduce tree

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improvement programme and establish plantations with improved seeds or plantlets produced either from CSO, HG, TC or SPA. Although the concept is accepted, the programme was never implemented seriously. It is assumed that by introducing these activities in the project, awareness will be raised within the Forest Department as well as those private entrepreneurs who are now planting teak in all the participating countries.

Training on the utilization of plantation teak or small logs is another activity that would benefit all the parties involved in the project. Most forest industries, especially in Myanmar are more used to utilization of large diameter logs. However, large diameter logs are getting scarce in almost all the teak producing countries. The technique on the utilization of small diameter logs and complete utilization of a log with minimum waste is getting more and more important. Therefore, this activity of the project will be contributing to a great extent in the utilization of small diameter plantation teak as well as minimizing waste. In other word, it will also contribute towards reducing the pressure on the natural teak forests and the environment.

Joint efforts among the participating parties and networking activities will enhance the trade and marketing of plantation teak. It is assumed that this activity will encourage better communication and ensure stronger relationship among the participating parties in the utilization of the results of this project.

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Annex 1

Profile of the Executing Agency 1) Background: Name: Forest Department, Myanmar Location: Nay Pyi Taw Year of establishment: 1856 Fields of expertise: Expertise in all forestry fields are available especially, natural forest

management, plantation establishment, etc. List of projects/pre-projects in previous three years:

(1) Ex-situ and In-situ Conservation of Teak (Tectona grandis Linn. F) to Support Sustainable Forest management. ITTO Project

(2) Study on Utilization of Plantation Teak. CFC/ITTO Project PPD 68/03 Rev.2 (I)

(3) Demonstrations and Application of Production and Utilization of Technology for Rattan Sustainable Development in the ASEAN Member Countries – ITTO Project PD 334/05 Rev.2 (I)

(5) TCP/MYA/3003, 2006: TCDC Consultancy- Assistant for Strengthening Capacity & Upgrading the Forest Research Institute, Yezin.

List of projects and pre-projects submitted to ITTO

(1) Introducing Myanmar’s Lesser Used Timber Species to the World Market. Funded by ITTO. Completed.

(2) Teak-based Multistoried Agroforestry System: An Integrated Approach Towards Sustainable Development of Forests. ITTO Project PD 3/98 Rev. (1) (F). Funded by ITTO. Completed

(3) Promoting Sustainable Utilization of Bamboo through Community Participation in Sustainable Forest Management. PD 146/02 Rev.1(I). Funded by ITTO. Completed.

(4) Ex-situ and In-situ Conservation of Teak (Tectona grandis Linn. F) to Support Sustainable Forest Management. Funded by ITTO. Completed

(5) Study on Utilization of Plantation Teak. CFC/ITTO 68/03 Rev.2 (I). Funded by CFC/ITTO. Completed

(6) Demonstrations and Application of Production and Utilization of Technology for Rattan Sustainable Development in the ASEAN Member Countries – ITTO Project PD 334/05 Rev.2 (I). Funded by ITTO. On going.

(7) Assessment of Mangrove Forests Affected by Cyclone Nargis to Facilitate the Development of an Integrated Mangrove Ecosystem Management Unit in Ayeyarwady Delta, Myanmar. Funded by ITTO. On going.

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2) Infrastructure: - Facilities for carrying out the work related to the proposal, such as laboratories, experimental

facilities, training facilities, etc. 3) Budget:

- To the extent that is relevant to the project, the financial status and resources and the overall budgets for the previous three years

(Kyats in thousands) Year GOM Contribution Grant Total

2006-07 966.08 608.47 1575.272007-08 89.96 1080.00 1169.962008-09 1729.70 1769.66 3499.36

4) Personnel: - Total number of personnel in relevant fields, showing:

Number of personnel with postgraduate degrees 89

Number of personnel with graduate degrees 3356

Number of personnel with middle-level technicians 2888

Number of administrative personnel 134

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Annex 2

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Terms of Reference for National and International Consultants

The project unit will include seven professionals, 4 national and 3 international consultants. The 4 national consultants will be assigned for wood industrial processing, marketing, tree improvement and socio-economic activities. They will also have to participate in the implementation of the activities of their specialized areas. The 3 international consultants will be assigned for downstream processing, marketing and networking activities. It is not possible to give the CV of the consultants in this proposal as, the procedure here is that the consultants are nominated and assigned by higher authorities only when the project is implemented.

The minimum qualifications and obligations and required for the consultants are as shown below:

National consultant on wood industrial processing (3m/m)

The national consultant for wood industrial processing must be a Myanmar citizen with at least 10 years experience in the field of wood industrial processing. After his first degree, he must have a Master degree or a Diploma specializing in this field and must be proficient both in written and spoken English.

The main responsibilities of the consultant for wood industrial processing will include:

Collect information for the purchase of downstream processing machine.

Advice on the purchase of downstream processing machine

Involve in the purchase and installation of downstream processing machine

Conduct trainings on downstream processing

Involve in the production and testing of value added products from plantation teak.

Advice the NPM on the activities concerned with industrial downstream processing.

Preparation of training material on industrial processing.

Preparation of reports. National consultant on marketing (3m/m) The national consultant for marketing must be a Myanmar citizen with at least 10 years experience in the field of timber marketing. After his first degree, he must have a Master degree or a Diploma specializing in this field and must be proficient both in written and spoken English. The main responsibilities of the consultant for marketing will include:

Information collection on marketing of plantation teak both locally and internationally.

Prepare report on marketing of plantation teak.

Suggest how to streamline the sales of plantation teak from the plantations in Myanmar.

Advice the NPM on the activities concern with marketing of plantation teak.

Preparation of training material on marketing.

Preparation of reports.

Annex 3

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National consultant on tree improvement (3m/m) National consultant for tree improvement must be a Myanmar forester with great experience in tree improvement or silviculture and holding at least a Master degree in tree improvement or silvilculture. He must be proficient both in written and spoken English. The main responsibilities of the national consultant for tree improvement will include:

Site selection for SPAs.

Monitoring thinning operations in the establishment of SPA.

Cooperation with FRI in planning and establishment of clonal identification trial.

Monitoring the establishment of hedge gardens.

Conducting training on the establishment of SPA and hedge garden.

Assisting NPM in the activities of tree improvement.

Preparation of reports. Nation consultant on socio-economic (3m/m) National consultant on socio-economic must be a citizen of Myanmar with experience in socio-economic or community development. He must at least have a Master degree and should also be proficient in both written and spoken English. The main responsibilities of the national consultant on socio-economic will include:

Carry out socio-economic survey in the project areas.

Sensitizing the local community on project activities.

Monitor the IG activities of the IG groups.

Organizing training and workshops.

Organizing in-countries study tour.

Participating in extension activities of the project.

Preparation of training materials and reports. International consultant on downstream processing (1m/m) International consultant on downstream processing must be a graduate in the field of forest industry with at least a Master degree. He must have not less than 5 years experience in the field of forest industry and should be proficient in both written and spoken English. The main responsibilities of the international consultant on downstream processing will include:

Advising on the selection and purchase of a downstream processing unit.

Participate in the installation of the downstream processing unit.

Give a seminar on the subject concern.

Preparation of training materials.

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Preparation of reports. International consultant on marketing (1m/m) International consultant on marketing must be a graduate in the field of forest economic with at least a Master degree. He must have not less than 5 years experience in the field of timber marketing and export and should be proficient in both written and spoken English. The main responsibilities of the international consultant on marketing will include:

Working together with the national consultant on marketing in the preparation of a report on marketing of plantation teak.

Giving a seminar on marketing of timber.

Preparation of a training material on marketing of timber.

Advising the NPM on the marketing of plantation teak and its value added products.

Preparation of a report. International consultant on networking (1m/m) International consultant on networking must be a graduate in forestry with at least a Master degree. He must have not less than 5 years experience in networking and should be proficient in both written and spoken English. The main responsibilities of the international consultant on networking will include:

Establishing a network on utilization of plantation teak.

Giving a seminar on networking.

Conducting awareness raising activities on the utilization of plantation teak through different media.

Participating in the regional workshop.

Preparation of a report.

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