Natural resources management program

Some 60% of program funds will support policy reforms; the remainder will finance natural resource protection activities and support services. The program"s main component will consist of performance-based disbursements aimed at policy reform in six areas. These are: (1) to empower communities and local governments to protect and manage much of the country"s forest estate; (2) to sell commercial timber exploitation rights at prices that represent the true economic rent and to invest the increased proceeds in sustainable forest development; (3) to remove constraints to imports and exports of forestry raw materials, products, and technologies; (4) to remove barriers hindering the entry and exit of firms into and out of the forest products industry; (5) to stop logging in the remaining primary forests; and (6) to develop and implement site-specific plans for conserving and developing all the nation"s natural forests. Under the resource protection component, U.S. and local PVO"s will develop community-based projects to improve the management of high priority national parks and natural preserves. Potential activities include the development of nature-based tourism and the sustainable extraction of non-timber forest products. All activities will complement the World Bank"s Environment and Natural Resources Sectoral Adjustment Loan-Hybrid, which will finance management plans for the 10 highest priority parks and preserves. The preferred mechanism for resource protection efforts will be a debt-for-nature swap, proceeds of which will be used to endow an environmental foundation to administer resource protection activities. If this method is infeasible, funds will be provided to PVO"s via a grants program. Support services will be financed in three areas. (1) TA will be provided for: implementation of policy reforms; management of second growth forests; regional and provincial forestry management; developing PVO capacities; and services to private investors. (2) Activities in communications, information, training, and education will utilize mass media (e.g., comic books, posters, newspapers, television) and public fora and workshops. (3) Grants will be provided for research is such areas as natural regeneration in residual forests, land use planning, and environmental impact assessment. The protection of old growth forests will also be promoted by helping to define and monitor key preservation efforts.