Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697744551157.pdf (Guyana)
ANNUAL REPORT 2011 1 TABLE OF CONTENTS MESSAGE FROM THE CHAIRMAN OF THE BOARD ACRONYMS EXECUTIVE SUMMARY GFC BOARD OF DIRECTORS 2011 BRAFT FINANCIAL STATEMENT FINANCIAL REVIEW ORGANIZATIONAL STRUCTURE OF THE GFC DIVISIONAL OVERVIEW OF THE GFC STAFF OVERVIEW SUMMARY OF 2011 ACTIVITIES REPORT ON THE PERFORMANCE OF THE FOREST SECTOR PRODUCTION, EXPORTS, PRICES CONTRIBUTION TO GDP SUMMARY OF 11 YEAR PERFORMANCE SUMMARY OF STATE FOREST LAND ALLOCATION FOREST SECTOR INITIATIVES ACTIVITIES UNDERTAKEN BY THE REDD+ SECRETARIAT PLAN FOR THE FOREST SECTOR 2012 3 4 5 7 8 26 27 29 30 36 39 2 MESSAGE BY CHAIRMAN OF THE GFC BOARD OF DIRECTORS GFC continued to make excellent progress in 2011, with Divisions achieving in excess of 95 % of their annual work plan activities.
On behalf of all Directors, I congratulate the Staff for maintaining this high level of efficiency, not only in 2011, but over the last four (4) years.

Minister Persaud must also be recognized for his very effective policy guidance to the GFC, through the GFC Board of Directors.
To my fellow Directors on the GFC Board, I thank you all for your valuable inputs at Board meetings, and also for ensuring that the forestry stakeholders had ample opportunities to dialogue with us at the numerous Board/stakeholder engagements that we held countywide.
These discussions; especially those with our key stakeholders, highlighted the need for timely interventions that would allow for an increase in productivity (especially harvesting and promoting the use of the lesser known species); appropriate training and technology (to get more involved in the making of added value products; reducing log exports; and a better coordinated and strategic marketing approach.
The Board and GFC then developed appropriate strategies which laid the foundation for short, medium, and long term action plans to create these appropriate enabling environments.

These strategies and some of the already completed activities of those various action plans are outlined briefly in this Annual Report.

GFC also did significant work in the areas of climate change mitigation, and environmental services identification and quantification.
More details on the above are available in comprehensive documentation available on the GFC website: www.forestry.gov.gy.

That the GFC was able to satisfactorily complete both its core work for 2011, and these additional climate related activities, is a real testimony to the dedication and commitment of its hardworking staff.
To the 2012 GFC Board of Directors, GFC staff and Sector stakeholders, I encourage you to build on the already strong foundation that has been established to take the sector forward as rapidly as possible, and help catalyze the continued positive development of Guyana.
Sincerely John Cartley Caesar 3 Chairman, GFC Board of Directors Acronyms AFPA CI EPA FAO FCPF FLEGT GFC GLAS IDB IFM ITTO KfW LACFC LCDS MRVS NFP PDD REDD+ - - - - - - - - - - - Agriculture and Forest Producers Association Conservation International Environmental Protection Agency Food and Agriculture Organization of the United Nations Forest Carbon Partnership Facility Forest Law Enforcement Governance and Trade (of the EU) Guyana Forestry Commission Guyana Legality Assurance System Inter American Development Bank Independent Forest Monitoring International Tropical Timber Organization - German Development Bank - - - - - - Latin American and Caribbean Forestry Commission Low Carbon Development Strategy Monitoring, Reporting and Verification System for REDD+ National Forestry Programme, of the FAO Planning and Development Division, GFC Reducing Emissions from Deforestation and Forest Degradations Plus REDDES - Reducing Emissions form Deforestation and Forest Degradation and Environmental Services RGDP - REDD+ Governance Development Plan SFM SLA WWF - - - Sustainable Forest Management Small Loggers Association World Wildlife Fund 4 Executive Summary The Guyana Forestry Commission (GFC) was established in 1979 through an Act of Parliament (approximately 32 years ago).
Over this period, and especially in 2011, the Commission has progressively developed into an institution that is recognized both locally and internationally for its dedication to the promotion and monitoring of collaboratively developed and practically implementable sustainable forestry management practices at the level of the forest management unit.
It has also supported the forest sector by providing direct support, as well as through facilitating the delivery of training, capacity building and donor support to the sector, via its local, regional and international partners.

The sector stakeholders must be given credit for their general commitment to the application of the GFC guidelines for SFM, their active involvement in collaborating with GFC on sector initiatives, and their willingness to adapt to necessary changes.
Additionally, the GFC also played a key role in the implementation of the LCDS, especially in its designated role as the active focal point for the REDD+ initiative; it has continued to be integrally involved in the implementation of the MOU between the Government of Guyana and the Kingdom of Norway.

2011 was also designated as the UN International Year of the Forest- the GFC coordinated several activities in recognition of this.
Several key policy documents were revised during 2011 following a thorough stakeholder process; there was also sensitization and awareness on critical issues such as the EU FLEGT, IFM, GLAS etc.

The 352 hard working and innovative staff of the GFC must also be complimented for the positive attitude and efficiency demonstrated despite the additional activities that had to be undertaken, in addition to the core GFC work.
In 2011, GFC continued to manage its financials very prudently; revenue collection was G$ 766,702 M (5% increase over budgeted figures); expenditure was G$ 553,710 M (1 % below budgeted figures).
However, despite being a positive year for the GFC (over 95% of the GFC 2011 Work Plan was achieved), there are still some areas where significant sector improvement is needed especially in the 5 areas of improved beneficial occupation of concessions (total production was 449,857m3 representing about 37% of the total Annual Allowable Cut and a 2.61% decrease compared to 2011 production); increased focus on quality, value-added products (total export value was US $ 40.67 compared to US$49M in 2010, a decline of 17.17%); use of a broader range of species; employee skills training and strategic marketing/planning.
GFC also needs to quickly develop its capacity to deal with these new and exciting developments, and also have the foresight to plan for future developments.

In 2012, GFC plans to work closely with stakeholders to re-focus the sector along this trajectory.

We look forward as always, to policy recommendations from the relevant private sector bodies, direct stakeholders, the general public and the NGO community; and your vital support for implementation of approved policy.
Donors must also be congratulated for their confidence in the sector.

Your continued donor support is a priority for us as we seek to enhance the competitiveness of the sector.

We also count on the policy makers at all levels for their wise counsel; we are confident that our new Board of Directors and our newly established Ministry of Natural Resources and the Environment will give us the necessary guidance and policy direction to enable the GFC and the sector to develop positively and rapidly.
6 GFC Board of Directors 2011 Mr. John Caesar Chairperson Ms. Vanessa Benn Mr. Andrew Bishop Mr. Brian Greenidge Mr. Evan Persaud Dr. Indarjit Ramdass Ms. Premah Ramanah Mr. Bertie Xavier Mr. James Singh Director Director Director Director Director Director Director Commissioner of Forests (ex-officio) Mr. Rajnarine Singh Observer Ms. Simone Benn Workers Representative 7 DRAFT FINANCIAL STATEMENT Summary of Revenue and Expenditure for 2011 Guyana Forestry Commission Year to Date Income and Expenditure Account as at December 2011 Revenue YTD Act YTD Bud.
Royalty 275,000,000 273,600,000 Acreage Fee 153,000,000 151,290,000 Licencing & Other Fees 125,000,000 85,200,000 Commission on Exports 175,000,000 196,000,000 Investment Income 12,202,000 12,000,000 Other Income 26,500,000 12,000,000 Total 766,702,000 730,090,000 Expenditure Employment Costs 332,659,000 335,366,000 Operational Costs 183,370,,000 185,585,000 Administrative Costs 25,505,000 26,434,000 Finance & Professional Costs 12,179,000 13,137,000 Total Expenditure 553,710,000 560,522,000 Net Surplus/(Deficit) 212,992,000 169,568,000 8 9 Financial Review Revenue The GFC revenue performance for the year 2011 was favorable despite challenges in terms of production and export.
The Forest Sector contracted slightly in 2011; production was marginally below that of 2010 while export was lower.

Total revenue collected for the year was G $766.7M compared to budgeted revenue for the year of G $730.2M; this represented a surplus collection of just over G $36M.

The main revenue collecting heads were royalty, acreage fees, export commission and licence and other fees.

Royalty was the highest revenue earner (G $275M).

GFC has projected an income of G $1.07B for 2012.


This includes a sum of G $300M for environmental services.

The other revenue heads of royalty, acreage fees, export commission and licence fees are projected to realize approximately G $700M in revenue for 2012.

Expenditure Current Expenditure for the year was G $553.7M, compared with the budgeted sum of G $560.5M, while capital expenditure was G $96.8M compared to budget of G$102.7M.
Employment cost accounted for the major component of the expenditure (G$332.6M or approximately 60% of total current expenditure cost); operational cost accounted for G$183.3M or 33.2% while administrative and finance cost accounted for the remaining G $37.6 M or 6.8%.

All expenditures for the year were within the budget.
The GFC also provided financial support to the Forests Products Development and Marketing Council (FPDMC) and the Forestry Training Centre Inc. (FTCI) 10 Organizational Structure of the GFC To effectively fulfill its mandate, the GFC has a staff complement of 352, distributed over 5 Divisions.

Below is the GFC’s Organizational Chart, and an overview of the 5 Divisions.
11 Minister ofNatural Resources & Env.Board of Directors CommissionerOf ForestsHead, Finance Head, Human Resources& AdminHead, PDD DCoF, FMD DCoF, FRMD Supervisors Senior Clerks Storekeeper Cashier Junior Clerks Admin.OfficerAssistant PRO Librarian ConfidentialSecretarySupport staff Economist Community Liaison Officer Project Officer Admin Assistant ACF, IndustryDevelopmentExport Officer Licensing Officer Grading Inspector ACF, Monitoring Monitoring Inspectors Forest inspectors Ranger 1 Ranger 3 ACF’s PlanningOfficersSenior FieldAssistantsField Assistants Camp Attendant MISOfficerMISAssistantSenior DEC Data Entry Clerks Driver Ranger 2 DFO’s Drivers GISOfficerFRIOfficersFRITechniciansDrivers Botanist Corporate Secretary Internal Auditor ACF.
Environmental Audit Monitoring Inspectors Management Trainees Auditors Driver ACF, Special Projects Export Clerk Control Clerk REDD Secretariat Director , FTCI President Permanent Secretary Divisional overview of the GFC Human Resource and Administration Division The Human resources and Administrative Division is responsible for the general administration of the Guyana Forestry Commission, staff management, development and implementation of human resources policies, procedures and training.
It also manages the Library which is available for public use and is stocked with a number of publications including research findings and journals on issues of local and international status.

Finance Division The Finance Division is responsible for managing the financial resources of the Commission.
It is also responsible for the Management Information System which assures improved data communication between both internal and external stakeholders; and maintains reliability, security and availability of information that is accessed throughout GFC.
Planning and Development Division The Planning and Development Division is responsible for coordinating the implementation of the National Forest Plan, conducting economic studies and other relevant studies on the forest sector, reporting on forest sector information.

It also formulates project proposals and seeks funding for projects developed.

The Division is also responsible for supporting the REDD+ and MRVS work that is being executed by the Commission.
Forest Resource Management Division The Forest Resources Management Division (FRMD) of the Guyana Forestry Commission (GFC) is responsible for data collection on National Forest resources through the conducting surveys and inventories for stakeholders.
FRMD makes recommendations on forest dynamics, silviculture treatments, and the allocation of forest concession areas; it also coordinates the preparation of operational guidelines for forest management plans, and the evaluation of proposed forestry operations.
12 Forest Monitoring Division The Forest Monitoring Division (FMD) of the Guyana Forestry Commission (GFC) is responsible for the enforcement of Forest Laws and Regulations, the licencing of forestry operations, monitoring and control of forestry operations with regards to its approved annual allowable cut, monitoring the social and environmental impact of forestry operations, monitoring and approving forest produce for export, and the collection of revenue at outstations.
Whilst each Division has its specific area of responsibility, the 5 Divisions of the GFC function as one cohesive unit.

As such, activities of the Commission such as undertaking projects; data collection and analysis; report preparation and submission; support to REDD+ and LCDS implementation; and policy recommendations, are all done in a very integrated manner.

Because of this, the Annual Report for 2011 is structured to present the achievements of the GFC (rather than individual Divisions).
Staff Overview In 2011 our staff was distributed among the five departments as follows: Department Forest Monitoring Division Forest Resources Management Division Planning Development Division/REDD Human Resources & Administration Finance & MIS Total 2010 2011 Number of staff Number of staff 200 39 6/3 25 26 299 233 47 6/6 31 29 352 The attrition rate for 2011 was 12.2 %, compared to 12.7 % for 2010.
Scholarships/ Training The GFC currently has 3 persons pursuing studies at the graduate/postgraduate level, and 3 students from hinterland communities on scholarship at the technical level.

A large number of middle managers were exposed to overseas training in 2011.

Additionally, 333 staffs benefitted from internal training, covering topics ranging from GIS and Remote Sensing, Forest Monitoring Procedures, Forest Law, Supervisory and induction programs for new recruits.
Timber grading and tree identification were done for staff and the sector.

13 Summary of 2011 activities Report on the performance of the Forest Sector For the year 2011, the summary of the sector’s performance is outlined below: Production, Exports, Prices, The forest sector showed consistent performance in 2011.

For 2011, production was almost on par with the 2010 total of 463,568m3 with a year 2011 total of 449,857m3 (a slight 2.61% decline).
Export volume of timber and plywood for 2011 (134,273m3) decreased over the 2010 total by 18%.

Export value for 2011 was US$40.67M which represented a decline of US $ 8.43 M (17%) compared to the 2010 figure of US $49 M. Export Prices for forest produce have shown overall strong performance, however, with increases seen in added value categories.
For Guyana’s forest products export, the Sawnwood category reflected an increase of approximately 16% over the prevailing average price levels at 2010, with the increase seen in the Dressed Lumber category showing a significant increase by 45% over the 2010 totals.

Roundwood also recorded a positive average price trend with a 15% increase over the 2010 level.

Additionally, Splitwood and Plywood both recorded average export price levels increase of 8% and 34% respectively.
Logs on the other hand, recorded a small average price decline of 7%.

This was mainly on account of a wider range of log species being exported, many being in the category of the lesser utilized wood species and attracting a lower level of export prices.
14 Table showing average prices (FOB) for timber and plywood on the export market for 2010 and 2011 Product 2010 (US$)/m3 2011(US$)/m3 % Change Logs Sawnwood** Dressed Undressed Roundwood Splitwood*** Fuelwood Plywood 153.8 640.3 748.3 574.4 367 790.2 23.8 402.2 142.5 740.4 1,081.7 567.1 422.4 852.06 24.4 539.13 (7)% 16% 45% (7)% 15% 8% 3% 34% N.B.
* Exchange Rate: G$200 = US$1 ** Row indicates combined average for Dressed and Undressed Sawnwood *** Splitwood Export prices refer to mill-produced Splitwood, mainly Shingles Below is a summary of the 10 highest priced species of Logs and Sawnwood (Dressed and Undressed) Export Price Summary by Species for Log and Lumber using Year 2011 Prices Logs Sawnwood (Dressed and Undressed) Species Average of Unit Price (USD) Species Average of Unit Price (USD) Durbane Pine 150.00 Snakewood 550.00 Red Cedar 150.00 Bulletwood 555.30 Snakewood 150.00 Wamara 556.90 Curry Tree 160.00 Crabwood 580.62 Wadara White Silverballi Washiba Locust 165.00 Dakamaballi 635.00 165.00 175.71 187.69 Purpleheart 677.66 Waramadang 795.00 Locust 813.87 Greenheart 215.18 Red Cedar 889.66 Purpleheart 236.43 Washiba 1,899.72 15 This general price level is largely in keeping with international trend as the charts below show with main tropical Logs species for 2011 reflecting a average global price point just below US$155 m3, and tropical Sawn Lumber reflecting a global average of just above US$220 per m3, placing Guyana’s average export price for this product at a significantly higher level.
Overall, the forest sector remains robust in the face of a recovering international market and other external challenges.

A breakdown of production and export statistics in presented this section.
16 Production by product category for 2010 & 2011 PRODUCTS TIMBER PRODUCTS Logs Unit 2010 2011 % Change m3 Special Category 90,165.86 72,833.09 (19.22) Class 1 Class 2 Class 3 Total Logs Roundwood m3 123,323.94 117,574.08 (4.66) 67,647.06 54,844.08 (18.93) 38,954.45 49,376.46 26.75 320,091.31 294,627.70 (7.96) Greenheart Piles 13,041.75 9,980.53 (23.47) Kakaralli Piles 462.16 649.65 40.57 Mora Piles - - - Wallaba Poles 1,997.99 1,846.53 (7.58) Posts Spars 2,062.25 2,177.24 95.61 102.21 5.58 6.90 Total Roundwood 17,658.98 14,756.16 (16.44) Primary (Chainsaw) Lumber m3 Special Category 14,935.39 12,663.93 (15.21) Class 1 Class 2 Class 3 42,642.35 40,151.21 (5.84) 10,925.97 11,036.10 1.01 9,076.50 12,266.14 35.14 Total Primary Lumber 77,580.20 76,117.38 (1.89) Splitwood m3 - Paling Staves 657.03 147.22 (77.59) Shingles 1,656.40 52.53 (96.83) Total Splitwood Fuelwood Total Fuelwood Plywood Veneer Charcoal Firewood 2,313.40 199.75 (91.37) 14,932.23 12,516.77 (16.18) 16,751.48 23,348.87 31,683.71 35,865.64 39.38 13.20 14,240.47 13,316.48 (6.49) 14,974.10 - m3 m3 m3 m3 m4 NON - TIMBER FOREST PRODUCTS Wattles Manicole Palm pieces 292,211.40 349,764.00 19.70 pieces 2,961,726.00 2,342,575.00 (20.91) 17 Export Volumes and Values by Product for the period Jan - Dec 2011 PRODUCT Logs Sawnwood Roundwood Splitwood Plywood Veneer (Compared to Jan-Dec (2010) Jan-Dec 2010 Jan-Dec 2011 Volume m3 Value US$ 110,637.75 17,011,055.78 Volume m3 97,539.16 Value US$ 13,898,404.21 Dressed Undressed 36,219.07 23,190,644.84 29,513.15 21,850,795.51 13,724.55 10,269,715.09 9,636.33 10,423,488.61 22,494.51 12,920,929.75 19,877.56 11,427,306.90 % Change Over Jan-Dec 2010 % Vol % Val (11.84) (18.51) (29.79) (11.63) (37.48) (8.16) (18.30) (5.78) 1.50 (11.56) (28.03) (0.98) 5,496.18 2,031.63 9,116.22 2,016,937.68 1,605,644.18 3,666,456.34 3,436.08 1,865.92 1,942.25 - 1,451,624.55 1,589,872.06 1,047,134.95 (78.69) (71.44) - - - TOTAL TIMBER & PLYWOOD 163,500.85 Furniture (pcs) 4,851.00 Building Comp.
(pcs) Mouldings (m) Pre-Fabricated Houses (pcs) 130,167.56 1.00 - OTHER(than Plywood) VALUE ADDED - Fuelwood (m3) Other – Craft, Ornament (pcs) Non - Timber Forest Products (pcs) 7,228.00 1,279.00 7,946.23 47,490,738.82 134,273.50 39,837,831.28 421,897.74 741,125.85 3,148.00 7,258.00 275,641.00 265,022.42 (17.88) (35.11) - 234,129.00 41,122.09 77,988.63 (68.41) (16.11) (34.67) (64.24) (66.69) 2,230.00 - - (100.00) (100.00) 1,399,382.59 9,181.41 618,651.68 (55.79) 189,365.31 8,101.11 197,329.97 1.95 4.21 14,335.81 10,434.00 14,319.51 44.36 (0.11) 9,673.55 1,599.00 3,984.16 25.02 (58.81) OTHER PRODUCTS TOTAL EXPORT VALUE - - 213,374.67 49,103,496.08 215,633.64 - 40,672,116.68 1.06 (17.17) 18 Log Production and Export The graph below illustrates the surplus of log production over exports for the 2011 period.
The highest log production was in December whilst the log export peak was seen in March.

19 Comparative Production Volume Analysis The graph below shows the general trend of forest production by product categories.

Over the period 2011, Logs declined by 8%, Plywood and Veneer almost doubled in production owing to Veneer being produced as a new product in 2011 and joining this category, and Primary Lumber largely on par with previous year production.
Export Value Analysis for 2011 The graph and chart below illustrate the performance over 2011 with export value of Logs, Sawnwood, and the accumulated total of Timber and Plywood.

Overall Sawnwood exports accounted for 54% of total export value in 2011, with Logs contributing 34%.

Total Timber and Plywood Export value was highest in the month of March with US$4.3M recorded.
Log export value fluctuated across a minimum recorded in December 2011 at US$438,400 and a maximum for the period in March 2011 of US$2,361,879.

20 21 Comparative Export Value Analysis Over the period 2011, there was an overall 17.17% decline in the total export value when compared to year 2010.
This can be attributed to the marginally lower level of production for the year and also owing to the increased local demand for timber products for the housing and construction industry, as well as the utility sub sector.

Sawnwood export value continues to be the highest earner in the export market for Guyana accounting for US$21M in 2011 compared with US$23M in 2010.
Analysis of Export by Destination The Asian Pacific Zone continues to be the largest export market for Guyana’s forest products with value recorded in 2011 amounting to USD$16.2M and accounting for 40% of total export earnings.

Within this zone, India and China are the target destination for Guyana’s timber products.

Although, export volume and value were below that of 2010 for some products, there was a 20% increase to North American markets.
Latin America/Caribbean region was the second largest zone for Guyana’s forest produce.

With earnings from this region totaling USD$10.1M and accounting for 25%, earnings have decreased over the review period.

Within this region, Barbados and Trinidad and Tobago continue to be the larger market destinations for Guyana’s forest products.

22 The table below summaries export markets by product line and volume exported in 2011 and the chart below summarize export value percentages for 2010 and 2011.
Logs Product Logs Region Asia/Pacific Europe Latin America/Caribbean South America Logs Total Sawnwood Dressed Lumber Asia/Pacific Europe Latin America/Caribbean Africa North America South America Undressed Lumber Asia/Pacific Sawnwood Total Roundwood Piles Poles Posts Europe Latin America/Caribbean North America South America Africa Asia/Pacific Europe Latin America/Caribbean North America South America Latin America/Caribbean North America Latin America/Caribbean North America Roundwood Total Splitwood Shingles Africa Latin America/Caribbean North America Europe Asia/Pacific Splitwood Total Plywood Plywood Asia/Pacific Latin America/Caribbean South America North America Plywood Total Export Volume (m3) 2010 Export Volume (m3) Market Destinations Export Value (%) 2010 Export Value (%) 2011 Africa Asia/Pacific Europe Latin America/Caribbean North America South America 1 42 16 26 12 2 0.2 40 16 25 18 1 24 Contribution to GDP In 2010, the Bureau of Statistics introduced a new series of Gross Domestic Product rebased and re- benchmarked to year 2006, replacing the series based in 1988.
The table below shows the trend of GDP over the past 6 years.

This statistic is taken as a measure of primary production of Logs, Sawnwood, Roundwood and Splitwood.

As such, total forest sector contribution that included added value forest products, (including plywood, furniture, and building components, etc.)

tally to a higher percentage contribution.

This additional aspect of forest sector contribution is recorded under the Manufacturing sector.
Contribution of the Forestry Sub Sector to GDP and Agriculture Sector GDP at Constant 2006 Basic Prices (G$M) Forestry's Sub Sector Contribution to: Year 2006 2007 2008 2009 2010 2011 GDP 262,880 281,335 286,896 296,417 307,198 321,290 Agriculture Sector 62,779 63,131 61,280 62,060 62,368 67,568 Source: Bureau of Statistics 2011 Forestry Sub Sector 10,958 10,331 8,927 9,161 9,292 9,162 GDP 4.17% 3.67% 3.11% 3.09% 3.02% 2.85% Agriculture Sector 17.45% 16.36% 14.57% 14.76% 14.90% 21.03% According to the new statistics, the Forest Sector’s contribution towards GDP over the past years had been relatively stable at the 2.5% to 4.5% mark, and is expected to remain that way for 2012.
In terms of the Forest Sector’s contribution towards the Agriculture Category, its contribution had been consistently above the 14.5% mark with small changes over the time series examined.

Summary of 11 Year Performance Year 2011 production can also be compared with previous years.
The trend below shows that the performance of the forest sector has been fairly stable over the past decade with a peak in 2006 and continued strong performance recorded in the years following the international financial crisis.

Production remains strong at the 449,700m3 level in 2011.

Export earning over the decade range between US$32M and US$59.5M with 2011 recording US$40M.
25 Annual Production and Export Volumes of Timber and Plywood for Years 2000-2011 (in '1000 cubic metres) Product 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Production 311.9 297.5 236.2 366.0 323.9 394.0 330.4 275.3 266.2 320.1 294.6 Export 25.1 47.9 48.0 60.3 115.8 190.8 157.1 92.4 62.04 110.6 97.5 Production 29.5 31.0 38.2 36.1 57.8 67.4 74.4 67.0 73.1 77.6 76.1 Export 18.8 32.7 27.4 37.5 42.1 44.9 43.8 47.6 41.94 36.2 29.5 Production 19.3 14.6 14.7 18.0 19.6 17.2 20.9 18.7 19.4 17.7 14.8 Logs Sawnwood* Roundwood (Piles, Poles, Posts, Spars) Export Splitwood (Staves, Shingles) Production Export Fuelwood (Charcoal, Firewood) Total Timber & Fuelwood Plywood and Veneer Total Timber, Fuelwood, Plywood & Veneer Production 15.2 20.3 16.6 17.0 17.8 20.5 26.2 21.1 29.7 31.3 35.9 Export 10.0 1.4 0.9 1.9 1.7 3.5 4.6 6.9 8.3 7.9 8.1 Production 377.9 364.8 308.8 440.1 422.3 502.5 452.9 382.8 389.4 448.9 421.4 Export 56.7 89.1 87.5 116.2 170.8 255.1 222.5 160.6 120.3 162.3 140.5 Production 70.6 51.3 74.7 54.2 37.1 34.5 39.2 20.6 18.9 14.2 28.3 Export 69.9 46.8 52.6 49.5 36.6 24.0 24.3 15.8 10.58 9.1 1.9 Production 448.5 416.1 383.5 494.3 459.4 537.0 492.1 403.4 408.3 463.1 449.7 Export 126.6 135.9 140.1 165.7 207.4 279.1 246.8 176.4 130.9 171.5 142.4 26 Annual Export Values of Forest Products for Years 2000-2011 (in US$ millions) Product 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Logs Sawnwood* Roundwood Splitwood Total Timber Plywood Total Timber and Plywood Other Value-Added Products** Other Products*** Total Other Products Total Export Value *Sawnwood exports derive from both Chainsawn production and Millsawn lumber; production quotes chainsaw lumber only ** (Furniture, Building Components) *** Includes Fuelwood export values.
… Data not available 27 Summary of State Forest Land Allocation State Forest Permissions (SFPs) are granted for 2 years for an area no more than 8,047 ha; Wood Cutting Leases (WCLs) are granted for up to 10 years of an area between 8,047 ha and 24,000 ha; and Timber Sales Agreements (TSAs) are granted for a period up to 25 years for an area in excess of 24,000 ha.

All leases are renewable subject to compliance with the terms of the agreement.
State Forest Exploratory Permits (SFEPs) are granted for 3 years and is the precursor to a TSA and WCL.
Summary of Land allocation within the Forestry Sector (as at 31st December 2011) Count Classification % % % Area (Hectares) Area Type Total Allocation State Forest Production Area Allocation State Forest Permission(SFP) 497 1,704,510 23.37% 20.43% 13.26% Wood Cutting Lease(WCL Timber Sale Agreements (TSA) State Forest Exploratory Permits (SFEP) 2 27 7 30,459 0.42% 0.37% 0.24% 4,600,848 63.09% 55.15% 35.79% 956,258 13.11% 11.46% 7.44% Total Production Area Allocation 7,292,076 100.00% 87.41% 56.73% Permanent Research & Reserve Areas GFC Forest Reserves Other Research & Reserves Sites Total Research & Reserve Area Total Forests Allocated Unallocated Forests Total State Forest Iwokrama Research Site Kaieteur National Park 11 2 13 17,796 1.69% 1,032,903 98.31% 1,050,699 100.00% 8,342,775 4,512,033 12,854,807 371,592 63,000 0.21% 12.38% 12.59% 0.14% 8.04% 8.17% 100.00% 64.90% 35.10% 100.00% 28 Forest Sector Initiatives: (a) Sensitizing stakeholders on the new Forest Legislative Framework The legislative structure of the forest sector has been modernized though the passage of the two main pieces of legislation governing the forest sector: the Guyana Forestry Commission Act 2007 and the Forest Act 2009.
Sensitization/awareness activities were intensified in 2011.

(b) Review and Revision of the National Forest Plan (2001) and National Forest Policy Statement (1997) Over the review period, the National Forest Plan and Policy Statement have been finalized following a national wide consultation exercise conducted over 2010.

The Plan and Policy include an update on Guyana’s Low Carbon Development Strategy (LCDS) within the framework of forest planning, management and operations.
(c) Development of Code of Practice for Processing Operation Activities continued on a GFC/ITTO Project, “Enhancing the capacity of the wood processing sector to improve efficiency and add value in Guyana”.

These included preparations of a Capacity Building Strategic Plan, and submission of relevant Policy needed for the Implementation of the Code of Practice for Wood Processing.

Also, a draft Code of Practice for Processing Operations was prepared; training and sensitization commenced on the Code.
(d) Guyana Launches Commemorative Activities for International Year of Forests The Guyana Forestry Commission collaborated with the Ministry of Agriculture commemorative session on April 18th 2011 at the Guyana International Convention Center.

to launch a (e) National Steering Committee of Community Forestry Organizations Continuing the progress in the Community Forestry Programme, the GFC coordinated the formation of a National Steering Committee of all community forestry stakeholders.
(f) Enhancing Community Capacity in Sustainable Forest Management Communities and small scale forest enterprises form an important part of the forest sector in Guyana.

As of December 2011, a total of 61 Community Forestry Organizations were in operation, managing 95 out of a total 497 State Forest Permissions (SFPs), and accounting for some 375,717 hectares of State Forest.
29 In 2011, the GFC in collaboration with the Food and Agriculture Organization of the United Nations (FAO), embarked on a project, for a two year period, to build capacity within 20 Forest Based Communities.

The Forestry Training Centre Inc. is the key training provider in this initiative.
(g) Building a Monitoring Reporting and Verification System for Guyana In 2011, efforts were intensified by the Guyana Forestry Commission (GFC) in national REDD+ readiness work, primarily in the development of Guyana’s Monitoring Reporting and Verification System (MRVS).

Work continued specifically in the areas of estimation of forest area change assessment, forest carbon stock assessment, as well as in the initiation of work on REDD+ demonstration activities.
These activities have been executed in keeping with the internationally accepted guidance of the IPCC as well as others such as the GOFC GOLD Sourcebook, while maintaining a capacity building approach throughout, to ensure the sustainability of the MRVS.
Guyana has also actively pursued efforts towards building local capacity though both local and international sessions, targeting the key technical experts that are actively involved in REDD+ implementation & MRVS in Guyana, not only at the level of the GFC and other relevant Government agencies, but also through civil society groups as the National Toshaos Council and committees such as the MRVS Steering Committee as well as the University of Guyana.
(h) Three Model Kiln Drying Facilities Established Over the review period, the GFC successfully completed the ITTO supported project on: Value Adding and Kiln Drying of Commercial Timbers by Small Scale Community Saw Millers in Guyana, PD 401/06 Rev.2 (I), which saw the installation of three 20m3 kiln dryers.

Training of community members was an important aspect of the project activities.
(i) Guyana Advances Efforts towards Independent Forest Monitoring (IFM) The first Scoping Mission was conducted over the period 26th September, 2011 to 14th October, 2011.

The Scoping Report underwent a period of review by the oversight body (the Reporting Panel) over the period 10th November, 2011 to 25th November, 2011, following which a final version was provided to the GFC on 16th December, 2011.

This Scoping Report has been published on the GFC’s website.
The first audit is scheduled to commence in mid 2012.

30 (j) National Level Dialogue Continues on EU FELGT Guyana has been engaged in exploratory dialogue with the EU FLEGT programme on its Voluntary Partnership Agreement.
The European Forest Institute organized a fact-finding mission to Guyana between June 13th and 17th 2011 to collect data, interview several key stakeholders, visit field operations and present the preliminary findings to the Guyana Forestry Commission (GFC), the EU Delegation in Georgetown and other relevant parties.

This assessment report was completed and submitted to the GFC on 1st July, 2011.
This report was circulated to stakeholders and formed the basis of several stakeholder discussions at several stakeholder fora including at the level of the Forest Products Association.

Over the course of August to September, 2011, feedback was received from a number of stakeholder groups.

A summary has been compiled of all stakeholder feedback.

Policy guidance will be given on the next step.


(k) Guyana and Congo Formalize Technical Cooperation Agreement In June 2011, Guyana and the Republic of Congo signed a memorandum of understanding (MOU) to foster cooperation between the countries in the areas of forestry and wood industries.

Guyana and Congo have also established a joint working commission under the five-year MOU.
(l) Partnering with local communities in Forest Fire Management Pilot Projects This project has commenced its second phase in 2011 with seven (7) communities selected as pilot sites for data collection and information gathering.

In 2011 a data base was created to record all information made available on Forest Fires within the major fire prone administrative Region Nine in Guyana.
This information is intended to be used to monitor deforestation and degradation within the area and will significantly enhance the accuracy of maps provided for future reference.
(m) Capacity building at community level 2011 The GFC continued in 2011, to support Community Forestry Associations to ensure that benefits to these communities were maximized.Training was provided through the Forestry Training Centre Inc. To a total of 327 persons (both community and non community stakeholders) for 2011 in various aspects of RIL, Mapping, Inventory, timber grading; other areas such as decision making, governance, accounting and marketing, are being facilitated.
For 2011 a total of 166 persons from 17 forest based communities were trained.

31 (n) Pre-harvest verification GFC provided assistance to large concessionaires and community forestry groups in carrying out the 100% Pre – harvest inventory verifications.

The 100% Pre-harvest inventory was geared to assist Concessionaires in sustainable forest management planning and to increase the efficiency in forest operations.

583 pre-harvest blocks were verified and approved during the year.
(o) SFP allocation by GFC Divisions There were 497 awarded SFPs at the end of December, 2011.

The Table below shows the awarded SFPs by Division.

Table Showing the breakdown of the active SFP.


SFPs SFPs Division Issued Issued in 2008 in 2009 Berbice Demerara Essequibo NWD Total 16 41 16 2 75 26 16 42 0 84 SFPs SFPs Issued Issued Total in 2010 in SFPs # of Contracts Collected # of Contracts outstanding 2011 31 43 60 3 137 8 20 7 1 36 140 172 171 14 497 138 170 171 13 492 2 2 0 1 5 (p) Forest Annual Plans of Operations Twenty-five (25) Annual Operational Plans (AOP) were submitted in 2011; however there were 30 TSA’s and WCL’s at the end of 2011.
Haimorakabra Logging Inc and CPT Inc. were converted to TSAs in July, 2011.

32 (q) Forest Stations During the year, six new forest stations were established, giving a total of 32 forest stations in the country at the end of 2011; Table showing each Forest Station per sub Division as at 31st December, 2011 Demerara Division Berbice Essequibo North West 1.

Soesdyke (24 hours) Divisional Forest Office 2.

Georgetown, 3.

Linden (24 hours), (Divisional 1.

Canje Forest Office), 2.

Springlands, 3.


Kwakwani, (Divisional 1.Parika Forest Office), 2.

Bartica, 3.

Iteballi, 4.

Mabura.

4.

Bamboo landing, 4.

Manaka, 1.

Mabaruma, 2.

Port Kaituma 3.Kwebana Amerindian Reservation 4.Moruca Amerindian Reservation 5.

Moraballi Reserve 5.

Supenaam 6.

Arpiarco, 7.

Anarika 5.

Orealla 6.

Scatter Rock 7.Morokabai Amerindian Reservation 8.

Three Friends - comaka 8.

Buckhall, 9.

Hururu Amerindian Reservation 10.

Goat Landing 9.

Charity 10.

Annai 11.


Lethem 12.

Madhia 13.Capaey Amerindian Reservation .

(r) Monitoring of State Forest Concessions GFC continued to do routine and impromptu monitoring of all concessions, forest reserves, and vacant state forest areas.

There were some incidences of illegal activity/procedural breaches (6 % of total production) but the GFC robust checks and balances ensured that these were detected very early, and the appropriate action taken.
(s) Monitoring/audit of Lumber yards and Sawmills The GFC did monitoring of these facilities countrywide on a continuous basis.

Compliance with the GFC guidelines was generally satisfactory.

33 (t) Export- Inspections and Processing of export documentation These activities were carried out routinely, with all exports being verified for legality, accuracy of species, grade and quantity.
(u) Internal Audit Unit This unit ensured that the GFC operated in accordance with its approved financial, HR and Technical procedures/policies.

(u) Licence Issuance Table showing the various types of Licences that were issued in 2011, compared to 2010.
Comparison - January- December (2010-2011) Divisions Activity/Licences Year Demerara Essequibo Berbice North West Total Sawmill Sawpit Permit to Erect Sawmill Timber Dealers (no storage) Timber Dealers (lumber yard) Timber Dealers (Export) Timber Depot Timber Path Charcoal Firewood Activities undertaken by the REDD+ Secretariat in 2011 1.
REDDES- Strengthening Guyana’s capacity to manage forest resources and environmental services through resources assessment and monitoring changes in deforestation and degradation Work was done to assess the potential and feasibility of market based and other remuneration systems for compensating environmental services.

2.
2.

Avoided Deforestation through Consolidation and Creation of Protected Areas and Carbon Financing Mechanisms in the Guianan Region This CI/KfW Project was initiated in early 2009 and continued in 2011 to support the overall design and implementation of the national forest carbon measurement and monitoring system and the establishment of the carbon conversion and expansion factors.

Winrock International was awarded the contract for this activity.

3.
3.

Year 1 Forest Area Change Assessment Completed The main objective of this component was to conduct a comprehensive forest area change assessment for historic periods up to 2009 and build national capacities for estimating forest-related activity data using the IPCC GPG on LULUCF.

A benchmark forest map for 2009 as well as forest area change maps for each time step, along with the period October 1 2009 to September 30, 2010, has been completed.
The benchmark reporting period (1990-2009) indicated a forest loss of around 3,800 ha/yr-1 which when annualised is equivalent to 0.02%.

For the Year 1 period (2009 to 2010) deforestation had increased to around 10,287 ha/yr.

This is equivalent to an annual deforestation rate of 0.06%/yr.

The benchmark period identified mining as the main driver of forest change (60% of the change), particularly between 2000 and 2005.
Forestry-related activity decreased, and was mostly accounted for by forest road construction and log landings.

Harvesting in managed forest areas was small-scale and selective.

4.

Forest Carbon Measurement System (FCMS) in Guyana.

The design of a national forest carbon monitoring system forms an essential component of Guyana’s MRVS.

Work under this component is being conducted by Winrock International of the USA which conducted substantial field work/capacity building in 2011.

5.
5.

Capacity building on MRVS Capacity building sessions were conducted for the University of Guyana by both Poyry & Winrock.

35 6.

MRVS- Bid 3- Demonstration Activities The GFC has been working along with the Iwokrama International Centre for Rainforest Conservation and Development (Iwokrama), Global Canopy Programme (GCP) and the North Rupununi District Development Board (NRDDB) to implement this aspect of the MRVS Road Map.

7.
7.

FCPF Taskforce In November 2010, Guyana accepted an invitation to be one of five pilot countries to be on the FCPF Taskforce to explore the option of using a Multiple Delivery Partner (MDP) under the Readiness Fund of the FCPF.

Along with Guyana, the other approved pilot countries are Cambodia Panama, Paraguay and Peru.

Guyana chose to use the IDB.

The Common Approach methodology developed by this Taskforce was subsequently approved.

8.
8.

RPP-IDB Following the work of the FCPF Taskforce on the development of the Common Approach, the IDB was approved as the Delivery Partner (DP) for the FCPF Readiness Fund in Guyana in June, 2011.

There will be an upcoming IDB Mission in early 2012 to discuss the way forward on the FCPF.

Further, although the discussions on the Transfer Agreement between World Bank and IDB are still ongoing, the Transfer Agreement is expected to be finalized by beginning of 2012.

9.
9.

CD REDD II- GHG Inventory Workshop CD-REDD II is co-financed by the German International Cooperation (GIZ) on behalf of the Government of the Federal Republic of Germany, and Guyana has been invited to be part of the process through the Coalition for Rainforest Nations (CfRN).
The primary aim of the Project is to build up in-country capacity to prepare a national GHG inventory for emissions and removals related to the Agriculture, Forestry and Other Land Use (AFOLU) sector, with focus on forest-related GHG fluxes in selected developing countries.

A national level workshop was held in Guyana from October 24-28, 2011 10.

Guyana and the REDD Countries Database The website, the REDD Desk, has launched an information page on Guyana.

This launch was done on Oct 12, 2011.

11.


IDB Project (KCP) - Developing Capacities to Implement REDD+ The general objective of this KCP is to provide support to the Government of Guyana in the process of developing and implementing its REDD+ Strategy.

36 12.

Guiana Shield Facility As a follow up of the Guiana Shield Initiative (GSI) project, the Guiana Shield Facility (GSF) was established.
The overall objective of the Guyana Shield Facility (GSF) is to promote and support the conservation and sustainable development of the Guiana Shield eco-region.

For Guyana, the Project Concept Note proposes four (4) main activities to be executed under this GSF funding: 1.

Development of National Reference Level 2.

REDD+ Consultations on development of the National MRVS 3.

Exploration of Co-benefits under the MRVS 4.


Development of national REDD+ Strategies 37 Plans for the Forest Sector 2012 Production of timber and plywood is expected to be fairly stable in 2012 and increase by about 3% to 5%.

Production level in 2012 is expected to be marginally higher than the 2011 total and is budgeted to reach approximately 472,000m3.

Export volume of forest products is expected to reach 142,000m3 marking a 6% increase as a conservative estimate.
With the increasingly recovering international timber market, this projection may be exceeded in 2012.

Export value is projected at US$47M in 2012, predicting a marginal increase in export value, despite the continuing market challenges in some regions.

In 2012, export prices are expected to be increased further for key forest products including Dressed Sawnwood and Logs.
Plywood and Roundwood prices are foreseen to remain fairly stable and Splitwood and Undressed Lumber average prices are expected to increase marginally.

Overall the forest sector is expected to have strong, stable performance in 2012 with growth in exports in the added value area, specifically sawnwood.
Market Access for 2012 Guyana’s main markets in terms of export value and volume are expected to continue being the Asia/Pacific region for Logs and Undressed Lumber; Latin American/Caribbean region for Dressed Lumber and Splitwood; North America for Roundwood specifically Piles, and Plywood.

In addition to these export markets, a growing local market for timber and timber products, is expected, particularly in the vibrant housing and construction sub sectors, and the utility sub sector.
38 Thematic Areas 2012 Thematic Areas Actions * Stimulation of greater foreign and local investment in the sector and added value activities.

2012 Plans 1.

Guyana has initiated Independent Forest Monitoring at the national level which will give buyers a national level verification of compliance level.

2.

The level of efficiency and quality of forest products produced are expected to improve with the implementation of a Code of Practice for Processing Operations.

3.
3.

The model community processing operation will be operational.

* Promotion of sustainable management through reduced impact logging 1.

Community training conducted with at least 30 community forestry organizations in a range of areas including SFM and RIL.

2.

The Legality Assurance System will be operationalised in 2012 and will provide assurance on a range of verification areas.
* Increase community access to and management of forestry resources Projected for 5 new community associations to be established with a corresponding increase in land allocation.

Forest Resources Assessment will be completed with at least 30 community SFPs to inform future quota allocation and renewal.

* Training and capacity building at all levels in the sector Projected training level for 2012 is expected to be 380 persons.
Training efforts will be lead by the Forestry Training Centre Inc. *REDD+ and support to the LCDS *Log Export Policy Review *Forest Monitoring, management, and legality *Value adding, investment support and market development.

*New Revenue Structure Work will continue in 2012 in advancing the work under REDD+ readiness and in further developing and implementing the Monitoring Reporting and Verification System.
Implementation of the REDD+ Governance Development Plan (Sections 1-14) will also continue in 2011.

A new National Log Export Policy will be implemented that will target the increase in local added value production in the forest sector as well as job creation, and increased export revenue.

There is envisaged to be one additional fixed station in 2012 and approximately 3 additional mobile units.

Employment of 15 new monitoring staff is planned for 2012 to further strengthen its field monitoring capacity.
New Codes of Practice for non timber forest products as well as revised Code for harvesting operations will be concluded in 2012.

In 2012, the Forest Products Development and Marketing Council will intensify its efforts in promotion of added value activity in the forest sector and will work closely with the GFC, Forest Products Association, Guyana Manufacturers and Services Association and GOINVEST, as well as other related bodies, in this regard.
Work will continue in 2012 in developing and finalising a new revenue structure for the forest sector.

This new structure should further promote optimal sustainable utilization of forest resources.

*Updating of policy documents Policy documents that were updated in 2011 will be implemented in 2012 and onwards, including the National Forest Plan (2011) and National Forest Policy Statement (2011).

39