Case Studies: Europe and Central Asia

Armenia, Natural Resource Management & Poverty Reduction Project, 2001, World Bank

The project aims to strengthen the institutional capacity of natural resource management agencies, to provide support to a coherent legal, policy and economic framework as well as to build the capacity of local communities to better sustain their livelihoods. The project consists of three components: Participatory watershed management; forest management; and protected areas management and biodiversity conservation. LTS provided specialist expertise in forest policy, law, institutional review, protected areas and management planning for the preparation and appraisal of the forest and biodiversity components of this project. The consultants provided by LTS had the overall responsibility for the preparation of two components, resulting in a full project appraisal document for the World Bank.

Bosnia and Herzegovina, Design Support for a National Forest Programme, 2005, USAID

In Bosnia and Herzegovina (BiH) a National Forest Programme (NFP) process following a multi-stakeholder approach which sets out, implements and monitors national policy and strategy development for forestry, and which recognises the explicit contributions of the sector to national economic growth, environmental sustainability and poverty reduction is now being initiated. USAID-BiH has been active in the forest sector since the late 1990's, as a result of the work with firms in the wood processing sector undertaken within the Business Consulting, Business Finance and Cluster Competitiveness Initiative projects. The Cluster Competitiveness Activity (CCA) project is a 4 year initiative which aims to speed up economic growth in wood processing and forestry (as well as in tourism and agribusiness), building on the earlier work. LTS provided an Institutional Development Specialist to establish whether there is suitable support amongst stakeholders for an NFP process, and to design institutional arrangements governing the process and provide advice on a possible Partnership Agreement with the NFP Facility at FAO.

Bulgaria, Industrial Review for Bulgarian Post Privatization Fund, 1999, EBRD

LTS assisted the Bulgarian Post Privatization Fund establish acompetitive position of a private client in its target markets. LTS supported the Fund Manager in undertaking an operational, financial and legal due diligence of the Company, which is required prior to presentation of an investment proposal to the Investment Committee. An assessment of the present situation relative to the best industry standards/practices was made. LTS reviewed Western European market for similar products (main producers, main markets, prices, production costs, distribution channels) and developed a marketing and distribution strategy: review of existing product line and propose a new and sustainable product line and marketing and distribution strategy for the Company.

Croatia, Restructuring Study for the Strategic Development of State Forest Authority Hrvatske Sume, 2002, World Bank

A study to provide the State forest authority with a detailed, phased and costed plan for its future role, restructuring and strategic development. The study started with a review of the forest sector and assessed how it will impact on and be affected by the restructuring. Based on it, the organisation was reviewed, and restructuring options formulated and modelled. The study ended with an agreement on the optimal scenario for restructuring, and a detailed restructuring plan. LTS provided a specialist to help review international experience in restructuring state forest authorities, and to formulate, discuss and agree options for restructuring the organisation.

Europe, Market Assessment of a Biotechnological Process for Timber, 2000, Private

LTS contributed to wider technical and commercial feasibility study of the potential for the Tri-Perm Process by undertaking a limited assessment of the European market for treated softwood and the potential for the substitution of pine by spruce in established markets. Consultants elaborated on the potential for market penetration by this new process. The research also established market trends, in the European Union, for various categories of preservative treated timber products.

Georgia, Development and Testing of a New Forest Auctioning System, 2003-2006, World Bank.

A key activity of this project is to develop a new timber and non-wood forest product auctioning system. This includes the preparation of guidelines for sustainable utilisation of forest resources to increase revenue and maintain transparency. The project entails a revision of current legislation for natural resource utilisation, identification of the types of forest uses reasonable for auctioning, development of an interim regulation for auctioning, testing the new auctioning system and finalising the new forest resource auctioning regulation based on the results of the experiment. LTS is managing this contract and is responsible for all outputs. Key tasks include: review of the legal framework of the management and utilisation of forestry resources; development of an objective and auditable model for the determination of reserve prices for auction sales; identifying priority types of forest uses for auctioning and other market based forms of forest resource sales; developing an objective and auditable model for auction sales in the State Forest Department; developing a draft New Forest Resource Auctioning Regulation; producing a detailed protocol and operating procedures manual; and testing and refinement of the new auctioning system.

Georgia, Forest Sector Rationalisation and Institutional Development Study, 2002-2003, World Bank

The Government of Georgia with assistance from the World Bank has prepared the Georgia Forests Development Project. A key activity of this project is to prepare a detailed, phased and costed plan for the institutional and financial development of the State forest sector, aimed at improving its organisational and operational performance and increasing its economic and fiscal efficiency through the sustainable management of the nation's forests. The LTS consultants had the overall task of reviewing the current forest sector institutional and financial framework and to identify the optimal model for the future role, restructuring and organisational development of these institutions in the field of protection, regulation and state control of forests.

Georgia, Development of National Forest Standards, 2003-2006, World Bank

Since the collapse of the Soviet Union, Georgia is developing and refining its Government structure, legislation, regulations and standards to comply with its evolution to a market based economy. Under the Soviet system there were over 400 standards relating to forestry. Under the World Bank Forest Sector Development Project, LTS worked with the State Forest Department (2003-2005) through a National Working Group of local counterparts to develop a new set of national standards. As part of the fundamental policy reform, the Group, supported by LTS experts, reviewed existing standards, identified new ones to be established, developed provisions for monitoring and verification of compliance with various standards, prepared a training plan for monitoring and enforcement officials and forest users, and elaborated the draft standards.

Latvia, Economic and Social Impacts of the Green-Field Pulp Mill Project Baltic Pulp Investment in Latvia, 2001, Private

LTS undertook an assessment of the impacts of a proposed USD1bn pulp mill investment in Latvia. The key outputs included a concise report outlining the more significant costs and benefits of the proposed investment; recommendations for institutional changes which would enhance the Government's capacity to fully appraise the economic and social benefits that might accrue, at regional and national levels, from inward investments and projects for which State support had been requested; and a Forest Sector model which will allow decision-makers to test changes in assumptions and to evaluate different scenarios for the development of Latvia's forest industry. Validation of forecasts of future timber supply was coupled with an assessment of the raw material needs of existing and other planned processing capacity was particularly important.

Latvia, Support to Industrial Cluster Restructuring, 2001, Private

The project aimed at developing a long term competitive advantage for the Latvian forest based industries with full utilisation of the forest resources that have recognised sustainable management that is increasing in volume and quality. LTS developed a concept of long term vision within a competitive market, including the identification of key issues within the cluster development that is important to the long-term development of a competitive forest cluster. The assignment also high-lighted and demonstrated the importance of a long term vision for industrial sectors and how the administration can support the development and integration with focussed investment and support.

Latvia, Institutional Support for the Development of Private Sector Forestry, 1998-2000, European Commission

The project assisted the Ministry of Agriculture/Department of Forestry with implementing newly drafted forest policy in line with EU guidelines and ongoing European Forest Policy processes. Targeting the development of private forestry and promotion of the wood sector, LTS provided short-term inputs to establish the support and regulatory framework that will enable the newly drafted forestry policy to be implemented in preparation for accession to the EU. This included harmonising regulations and standards for cultivation and marketing and drafting a national land-use strategy for rural and regional development. The project identified appropriate incentives to stimulate private afforestation and reforestation and propose an institutional system for certifying of forest propagation material.

Montenegro, Forestry Sector Development in Northern Montenegro Project, 2003-2006, Lux-Development

To support the Government of Montenegro in the transition to a market economy, this project aims to support the whole state forest sector, from planning and execution of forest resource management to the processing of final wood products including their marketing. The key areas in forest resources include forest management planning and seedling production. In the wood utilising sector the project aims to improve both the wood-raw material procurement and the processing capability of the industry. Selected state-owned forest enterprises and processing industries will be revitalised by providing logging and wood processing equipment, supplemented by appropriate training and technical assistance. LTS provides the International Project Coordinator and project management and technical support. The IPC is responsible for organising the project implementation in the North East region and in Podgorica and reports directly to Lux-Development on Project implementation.

Romania, Development and Implementation of a Monitoring and Evaluation Plan, 2005, World Bank

LTS was contracted to establish a project M&E procedures for the Forest Development Project and to support the development and implementation of a Monitoring and Evaluation Systems within the Project Management Unit and at a sector level. The M&E system established is based on a key set of performance indicators that address related project interventions, including: forest ecosystem degradation, Gross National Income, Annual Allowable Cut, forest management plans, regulatory and governance capacity, and public awareness strategy. LTS provided a forestry and M&E specialist to carry out this assignment.

UK, Chain of Custody Assessment for Marine Timber Procurement, Private Client, 2005

The general objective of this study was to provide technical expertise in responsible timber procurement to a private client interested in purchasing a large volume of tropical hardwood for marine construction from a legal and sustainable source. Activities included an assessment of different sources of timber according to pre-established environmental and social criteria based on timber companies' track record and paperwork available. A responsible timber purchasing tool kit to inform the Client's procurement systems was also developed. The document presents a set of legal and sustainable criteria and indicators to evaluate the reliability of timber sources, and basic guidelines for chain of custody design for timber of non certified origins

UK, Review of Environmental Impact for Short Rotation Forestry, 2005, Forestry Commission

The general objective of this study was to provide an assessment of the potential environmental impact of short rotation forestry using fast growing broadleaved trees in the UK. The recent interest for fast growing non-native species for energy generation/ biomass has raised concern on their potential impact on ecosystems. The review addressed all the environmental aspects of SRF plantations in terms of soil quality, water table balance, pest and diseases risk assessment, along with challenges related to landscape and biodiversity issues. Economics and carbon issues were also reviewed. In partnership with 4 institutions, LTS carried out the study and provided a team of specialists in forest plantation, biomass energy, carbon management, landscape and water management

UK, Review of Nine Regional Forestry Frameworks, 2006, Forestry Commission

The aim of this study was to review the nine Regional Forestry Frameworks (RFF) developed between 2003 and 2005 and to map their scope and focus against the 1998 England Forestry Strategy (EFS).The rationale for the assignment was the impending revision of the England Forestry Strategy and the need was to determine how the priorities and scope of individual RFFs matched the EFS. In due course the revised EFS will accommodate the nine RFFs and also provide a basis for situations where national as opposed to regional actions are required. LTS provided two people with wide experience of international and UK forest policy development and institutional change.

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