Case Studies: Privatisation & Enterprise Development
Bhutan, Medicinal Plants Project Phase II, 2004-2007, European Commission
The project aims to conserve medicinal plant resources in high altitude areas of Bhutan; improve the incomes, employment opportunities and livelihoods of rural communities in high altitude areas; strengthen the organisation, management and cost-effectiveness of the medicinal plants industry; and enhance the availability of high quality medicinal plant products and traditional medicines for both the internal and external markets. LTS is responsible for overall project management and administration including the recruitment and administration of staff and provision of all technical support relating to the cultivation of aromatic and medicinal plants, the preparation of business plans and launching of commercial operations, and provide inputs in horticulture, legal aspects in biodiversity, community forestry, commercial realism, medicinal expertise, botanical expertise, TRIPS, protection of traditional knowledge and NTFPs. LTS will draw upon its broad network of Edinburgh Centre for Tropical Forests (ECTF) partners for technical assistance.
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.
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, 2003-2005, 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.
Guyana, Timber Forest Products Marketing Study, 2001, Iwokrama International Centre for Rain Forest Conservation and Development
LTS consultants prepared for Iwokrama a report that identified the geographical location of potential timber markets and their relative short and longer-term prospects, product requirements and demand for recognised indicators of socially and environmentally responsible business practices. he report analysed current private sector perspectives on investment needs and priorities in the Guyanese forest products sector and the estimated financial requirements to meet potential national and international market demands, both in terms of order size and product specification and quality.
India, Uttar Pradesh Forestry Project, 2002, World Bank
The Uttar Pradesh Forestry Project assists the Government of Uttar Pradesh in the development of the forestry sector. The project aims to improve public sector management in the sector, increase forest cover, productivity and biodiversity in an environmentally and socially sustainable manner. LTS undertook an assessment of the incentive structure for farmers to be involved in farm forestry, particularly in districts where departmental seedling production in expected to be phased out. An evaluation of the Forestry Departments' communication, extension and market development measures was undertaken and the monitoring and evaluation program reviewed.
Kenya, Uganda & Sri Lanka, Business Planning for Forestry, 2003-2004, Private
This private sector client has extensive estate areas with potential for commercial plantations set within a local mosaic of forest resources providing environmental and social benefits. The owner of the estate sought advice from LTS to develop a forestry plan consistent with the estates' commercial aims and commitments to sustainable development. The client has timber plantations in excess of its fuelwood needs and wanted to assess the viability and opportunity to develop commercial timber production. LTS provided a team of experts to evaluate the state of the plantations, the prevailing market and the political and institutional environment in which the client is operating in the 3 countries. From these assessments we have developed a suite of strategic options for the client to consider and guidance on which is likely to satisfy their long-term objectives of a sustainable business that supports local economies.
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.
Malawi, Privatisation of Commercial Forest Plantations, 2001, UK Department for International Development
The privatisation of Malawi's commercial forest plantations continues to be a hot topic in the National Forest Programme (NFP) process. As a fundamental part of the reform, and highlighted in the ongoing NFP process, DFID has supported privatisation since the late nineties. The Malawi Forestry Department had prepared an outline of a project to privatise its commercial forestry plantations, to augment resources committed and to integrate Finnish assistance. LTS has been crucial in the detailed preparation of DFID support, including aspects of feasibility and financing in order to transfer the management of commercial forest plantations from the public to private sector in a transparent, accountable and effective process addressing poverty, sustainability and equity issues.
South Africa, Certification in the Natural Products Sector and Feasibility of Interventions, 2006, World Conservation Union
Under the umbrella of the recently launched Natural Futures Programme, the World Conservation Union in South Africa (IUCN-SA) and partner PhytoTrade Africa asked LTS and its partners to investigate ethical certification schemes and their accessibility to Southern African small and medium enterprises in the natural products sector. Within the (natural products) sector there are clear opportunities for entrepreneurial development and improved livelihoods for many poor rural communities. LTS took part in a technical team to review existing schemes and assess their appropriateness in a Southern African natural products context, identify associated barriers and opportunities and recommend intervention strategies to improve the accessibility and applicability of certification in this sector. The study will inform the Natural Futures programme in the development / adaptation of a new or existing certification system for the benefit of natural product small and medium enterprises and the sector.
South Africa, Restructuring of Commercial Forests, 2001-2002, UK Department for International Development
The South African government announced that the state-owned
timber plantations company SAFCOL, would be privatized. LTS's support to South Africa's restructuring initiative was a key component of the wider ranging Restructuring Forests in Former Homelands Project, under which DFID supported programmes aimed to alleviate poverty and redress inequality in the former homelands by effectively restructuring the former homelands forests so that they achieve government's policy objectives. The company owns 332,000 hectares of commercial tree plantations and other assets valued at between 1 and 1.5 billion Rand (some $USD 160-250 million). From 2001-2002 LTS provided high-level privatisation and forestry expertise to review options and assist Department of Public Enterprises to un-block and push through to completion the stalled privatisation of SAFCOL and disposal of the remaining commercial forests.
UK, Market Research for Wild Resources Limited, 2003
LTS was contracted by this private sector client to develop a market assessment and client profile for Wild Resources in its core business area of non-timber forest products (NTFPs). Marketing messages and an outline marketing strategy were developed and advice provided on the form and content of promotional and publicity information.
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.
Worldwide, Study on the Impact of Market-Based Instruments and Initiatives on the Trade in Forest Products and Sustainable Forest Management, 2003, Food and Agriculture Organisation
This research was part of the FAO's global study entitled "The Impact Assessment of Forest Products Trade in the Promotion of Sustainable Forest Management". The LTS study identified and described relevant market-based initiatives and analyzed their impact on forest product trade and sustainable forest management. The study also identified trends for future evolution of market-based instruments that promote sustainable forest management
