Japanese ODA Loan

Ex-Ante Evaluation (for Japanese ODA Loan)
1. Name of the ProjectCountry:
India
Project:
West Bengal Forest and Biodiversity Conservation Project
Loan Agreement: March 29, 2012
Loan Amount:
6,371 million yen
Borrower:
The President of India
2. Background and Necessity of the Project(1) Current State and Issues of the Forest Sector and the Conservation of Biodiversity inIndia
India’s forest and tree cover ratio stood at 23.8% (2007), which is lower than the global average of
31% (2010). While many people including those living in poverty depend on forest for fodder, fueland income, the negative impact on forest has been boosted with the huge population growth and as
a result, the forests are being degraded (the percentage of open forest is 41.7% (2007)).
In terms of biodiversity conservation, as of March 2009, 4.8% of geographical area the country
was designated as protected area, with 99 national parks and 523 wildlife sanctuaries. However, themanagement plans of these protected areas are not well prepared as they are not based on scientific
databases to conserve biodiversity. Therefore, in addition to the vital issue of improving forest andtree cover as well as the forest quality, it is also necessary to strengthen capacity among related
agencies to ensure a balanced approach for the sustainable growth of ecosystem.
(2)

Development Policies for the Forest Sector and the Conservation of Biodiversity in India
and the Priority of the Project
The Government of India has outlined a target of increasing India’s forest and tree cover ratio by
5% in its Eleventh Five Year Plan (April 2007-March 2012). In addition, the Plan also places anemphasis on participatory Joint Forest Management to ensure sustainable forest management,
promotion of activities by the Eco Development Committee (EDC) to ensure wildlife conservation,
support for those who rely on the forest for their livelihood to ensure alternative sources of income,and reduction of man-animal conflict. Furthermore, in order to implement sustainable forest
management and biodiversity conservation, the Government of India aims to build an information
management system and promote trainings for human resources development.
(3)

Japan and JICA’s Policy and Operations in the Forest Sector and the Conservation ofBiodiversity in India
The “Poverty Reduction and Environmental Improvement” is one of the prioritized areas in theCountry Assistance Program for India by the Government of Japan. Accordingly, JICA has set the“Support for Environment/Climate Change Measures” as a prioritized area. More specifically, JICA
will support measures to improve forest cover and quality through restoration of degraded forest,
prevent soil degradation and improve soil water retention ability as well as biodiversity
conservation for the sake of conservation and sustainable management of natural resources. This
Project is consistent with these policies. In terms of Japanese ODA loans given to India, 20 projects
totaling 204.6 billion yen (6.4% of the total loan amount) have so far been extended in the forestry
sector. JICA Technical Cooperation Project, “Capacity Building of State Forest Training Institutions
and SFS Colleges” is being implemented for a projected period of five years from FY2008.
(4) Other Donors’ Activity
In addition to forest management projects being implemented by the World Bank and the EU, theGlobal Environmental Facility (GEF) has been involved in supporting the preparation ofbiodiversity strategy and related action plans of India.

1(5) Necessity of the ProjectDue to its second highest population density in India, the pressure on forest resources such as illegal
felling for firewood and charcoal materials necessary for daily life,is high, and West Bengal hasproblems concerning both the quantity and quality of forests. Owning to West Bengal’s effor tohave implemented national and state government forestry projects, the forest cover has been on an
upward trend. However, the forest cover rate is still only 17.4% (2007), which is lower than thenational average of 23.8%. In addition, improvement of the forests is necessary from the viewpointof open forest rate. The poverty level is also higher than the national average. Because many poor
people still depend on forests in their daily life, it is necessary to manage forests appropriately bypromoting JFM and local community development.
West Bengal has various geographical features, ranging from the northern region that includes theHimalayan alpine zone, which has been designated as a biodiversity hot spot (as designated byConservation International, an international NGO, as an area with high biological diversity that is
however is facing a crisis of destruction), to the southern part that faces the Bay of Bengal. West
Bengal therefore has a high level of biodiversity and has 25 protected areas (national parks, wildlifesanctuaries etc.). Because there are many endangered species, such as the Indian Elephant and theBengal Tiger in West Bengal, it is also an important state from the viewpoint of the protection ofrare species. However, because conflicts between man and animals such as elephants and tigers arebecoming a serious issue, it is necessary to strengthen the system for preventing such man andanimal conflicts.
In addition, it is also important to support India’s efforts as the host nation of the 11th Conference of
the Parties to the Convention on Biological Diversity (COP11), which is scheduled to be held in
India in 2012. Therefore, this Project, which aims to enhance the mitigation of and adaptation toclimate change, sustainable forest management and biodiversity conservation, is consistent with theIndian Government’s development policies and Japan and JICA’s aid policies, and it is essential andappropriate for JICA to support the Project.
3. Project Description(1) Project Objective
The objective of the Project is to improve forest ecosystem, conserve biodiversity and improve
livelihood means by undertaking afforestation, regeneration, wildlife management and income
generation activities through Joint Forest Management approach, including institutional capacity
development, thereby contributing to environmental conservation and harmonized socio-economic
development of West Bengal”(2) Project Site/Target Area
State of West Bengal(3) Project Components
1) Afforestation activities (Afforestation, seedlings etc.)
2) Biodiversity conservation activities (Prevention of man and animal conflicts, improvement of
the wildlife habitat in protected areas)3) Community development and income generation activities (support for the activities of Joint
Forest Management Committee (JFMC), income generation activities, training, etc.)
4) Institutional Capacity Development (research activities, maintenance of telecommunications
and measuring equipment, training, etc.)
5) Consulting services (support for procurement and fund management, etc.)(4) Estimated Project Cost (Loan Amount)
7.511 million yen (including agreed loan amount: 6,371 million yen)
(5)

Schedule2

Planned for March 2012 – March 2020 (97 months in total); the Project will be completed when all
the activities are completed (March 2020).
(6)
1)
2)
3)

Project Implementation Structure
Borrower: The President of IndiaExecuting Agency: West Bengal Forest Department, Government of West Bengal
Operation and Maintenance System: West Bengal Forest Department, JFMC, EDC(7) Environmental and Social Consideration/Poverty Reduction/Social Development
1) Environmental and Social Considerations(1) Category: FI(2) Reason for the Categorization: This Project is classified as Category FI because the loans
are given to financial intermediaries, no sub-projects can be identified before the approvalof JICA’s loans (such sub-projects are estimated to have an environmental impact)according to the “JICA Guidelines for Environmental and Social Considerations” (putinto effect in April 2010).
(3) Other aspects/Monitoring: Given the project’s purpose of carrying out forestation andbiodiversity conservation activities and the scale and expected contents of thesub-projects, no sub-projects are expected to have a serious environmental impact. Wherenecessary, the Forest Department and JFMC/EDC will receive support from consultantsfor technical assistance to jointly carry out monitoring. It is assumed that no sub-projectthat falls under Category A is to be carried out.
2) Promotion of Poverty Reduction
In this Project, the participatory management of forest and protected area and activities forcommunity development and livelihood improvement will be implemented with consideration
for the forest dwellers that are highly dependent on forest resources and those in the poverty.
3) Promotion of Social Development (gender perspective, measures to prevent the contraction of
infectious diseases including HIV/AIDS, participatory development, consideration for persons
with disabilities, etc.)
In this Project, participatory activities involving local people are carried out withconsideration for gender.
(8) Other Schemes and Collaboration with Other Donors
In this Project, JICA is planning to collaborate with NGOs in activities for regional development
and livelihood improvement.
(9) Other Important Issues
Because the purpose of this Project is to carry out forestation activities, this Project contributes tothe sequestration of greenhouse gases (GHG). Moreover, because afforestation contributes to theprotection of the national land from disasters, it can be considered that this Project also contributes
to both the mitigation of and adaptation to climate change. This Project’s effect on the mitigation ofclimate change (estimated amount of GHG absorption) is about 340,000 tons (in terms of CO 2equivalent).
4. Targeted Outcomes(1) Quantitative Effects
1) Performance Indicators (Operation and Effect Indicator)
BaselineIndicator(2011)
Afforestation area (ha)–Survival rate of planted trees (%)–
Number of protected areas intervened by–
3Target (2022)[2 years after project completion]
21,77065-80%
8the Project
Number of JFMCs/EDCs/SHGs establishedand utilized under the Project(*)
Number of participants provided withtraining (persons)Job creation effect (persons/day)(*)*SHGs: Self Help Groups

–600

–

60,600–5,548,0902) Internal Rates of ReturnIf based on the following preconditions, the economic internal rate of return (EIRR) of theProject is 8.43%.
EIRR
Costs:
Project cost (excluding taxes), operating and maintenance costs
Benefits:
Revenues from forest products
Project life: 40 years(2) Qualitative Effects
Environmental conservation, improvement of the living standards of residents, promotion of
women’s social participation and economic activities, mitigation of climate change through thesequestration of greenhouse gases, adaptation to climate change through the conservation ofnational land
5. External Factors and Risk Control
Political and economic stagnation/deterioration as well as natural disasters in India and the areasurrounding the project sites
6. Lessons Learned from Past Projects(1) Results of the Evaluation of Similar Projects
From the ex-post evaluation of similar projects in the past, it has been learned that in order tosmoothly implement afforestation and forest management by the JFMC, it is important (i) toprepare, in comprehensive and easy-to-understand language, guidelines that indicate the scale ofJFM, the basis of the wood-lot selection, the basis for operating JFMCs and a system for getting
people to take responsibility, (ii) to implement the project in accordance with those guidelines, and(iii) to plan activities based on the needs of local people.
(2) Lessons for this Project
Based on the lessons described above, it has been planned that, when afforestation and income
generation activities are carried out, the same kind of guidelines will be prepared and attention will
be paid so that this Project can be carried out smoothly after prior consultations with local people.
7. Plan for Future Evaluation(1) Indicators to Be Used
1)
2)
3)
5)
6)
7)
8)

Afforestation area (ha)Survival rate of planted trees (%)
Number of protected areas intervened by the Project
Number of JFMCs/EDCs/SHGs established and utilized under the Project
Number of trainees in training (persons)
Employment (man/day)Economic internal rate of return (EIRR) (%)

4

(2) Timing
Two years after project completion5