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Transcript of Fiji Forest Sector & Status of Overseas Development Assistance Tanoa International Hotel, Nadi,...
2012 SECOND EXPERT MEETING ON FOREST FINANCING FOR SMALL ISLAND DEVELOPING STATES
Fiji Forest Sector & Status of Overseas Development Assistance
Tanoa International Hotel, Nadi, Fiji. 23rd -27th July
PRESENTATION OUTLINE Part 1: Forest Sector ProfilePart 2: Overseas Development Assistance Framework Part 3: Level of Assistance Part 4: Forest Sector Financing requirements Part 5: Conclusion
FIJI BASIC INFORMATION
Lat. 18°00′S Long. 179°00′ELand Area: 18,270 km2
Highest peak: 1,324 mPopulation: 838,000GDP per capita: USD $3,035Total GDP: USD $2.5b (2008)% Contribution to GDP
Sugar 6%Other agriculture 6%Fisheries 3%Forests 1.3%
2000 2001 2002 2003 2004 2005 2006 2007 2008
Exports
1154.8 1221.329
1132.188
1269.223
1205.519
1192.578
1201.573
1209.813
1470.968
Imports
1822.222
2017.051
1970 2284.73
2501.639
2722.78699999996
3124.342
2890.072
3601.404
Tourism
NaN NaN NaN NaN NaN 817.2 822.5 784.2 853.1
250750
1,2501,7502,2502,7503,2503,750
FJD
Million
ABOUT MFF
VISION : Our Future Generation Inherits a Prosperous and
Enhanced Fisheries and Forest Sector MISSION: Improving Livelihoods through SMART Policies on
Sustainable Management of Fisheries and Forest Resources
GOAL: Increasing the Fisheries and Forest Sectors
contribution to GDP ... through SMME’s and Downstream Processing
DEVELOPMENT APPROACH: Creating a Paradigm Shift – Production Oriented
towards Resource Conservation and Sustainable Resource Management
POLICIES, INSTITUTIONS & INTER-SECTORAL LINKAGES
Forest Policy 2007 (Based on SFM) Conservation of forests and biological resources Integrated forest resource management Resource owners and community involvement in SFM Upgrading of forest industries and promotion of high quality
products Institutional framework, and human resources
Major policies & legislations Native Lands Trust Act (1940) Fiji Pine Decree (1990) Endangered and Protected Species Act (2002) Fiji Rural Landuse Policy (2005) Environment Management Act (2005) Mahogany Industry Development Decree (2010) The Fiji REDD+ Policy (2010) Forest Decree (1990)-Currently under review Fiji Climate Change Policy (2011)
FOREST SECTOR – SNAPSHOT
Forest Cover 1.3 M ha(60%)
Natural Forest 980,878 ha
Pine Plantation 93,429 ha
Mahogany Plantation
60,405 ha
Total Plantation Area
153,534 ha
Fiji Forest Policy 2007 Financial Strategy (Section 6: Forest
Financing Strategy) Forestry Department Revenue Forest Sector Development Fund Trade & Commercialization Measures Financing Conservation & Protection Measures
Financing through International & Regional Forestry Cooperation
EXISTING MECHANISM FOR FOREST FINANCING
PRINCIPLES FOR EFFECTIVE DEVELOPMENT COOPERATION
Ownership of development priorities by developing countries
Results-focus
Inclusive development partnerships
Transparency and accountability
10
FIJI ODA PROCESSES
Budget Aid Coordinating Committee (BACC)
Planning, Disbursement, Monitoring and
Evaluation
Through annual budget process
Aid Funds reflected in National Budget
Provide advice to Government on ODA;
Oversee Planning and Implementation;
Appraise and Approve Aid-Funded Programmes and Projects;
Promote dialogue with Donors/ Development Partners; and
Assess and Recommend Improvements to ODA mechanism
12
Role of the BACC
NATIONAL ODA PROCESS – BUDGET PLANNING
1. Baseline Budget ODA
- baseline is set by MoF and sent to all Donors
and Ministries/Departments
2. Consultations - first round of consultations between MoF, Donors and Implementing agencies.
- second round of consultations to confirm/ agree on projects to be included in the Annual Budget
3. Finalisation of Aid /ODA Estimates- ODA budget is finalised/ confirmed with Donors and included in the Budget Estimates
4. Budget Announcement- Copies of Budget Documents are send to Donors
ODA PROCESSES: DISBURSEMENT & MONITORINGDisbursement
Ministries and Departments (implementing /executing agencies)
Receive notification from Donors on remittance of Aid FundsApply for Release of Funds
Ministry of Finance
Assess/ Process applications; and Disburse funds through Budget/Accounts process
Implementation of Aid-funded Projects & Programmes
Monitoring
Government and Donors jointly monitor and evaluate projects - site visits & progress reports, etc.
i) Assuming Greater Ownership Role in the Development Policy
Framework, Strategies and lead future Consultative
Mechanism
ii) Aligning donors procedures, processes and programs to
Government systems
iii) Strengthening Co-ordination between Government and
donors, NGOs and financial institutions
iv) Improve Co-ordination and Delegation Between Donors
v) Institutional Capacity Building
vi) Improve Quality Reporting
vi) Improving Accountability of Funds
15
Key Issues for ODA
IMPORTANT ISSUES
ALL donor assistance is ALIGNED to development priorities i.e.
Roadmap targets;
BACC is the central aid coordination mechanism;
Increase integration of ODA into budget cycle;
Ad-hoc ODA funds result in unbudgeted requests;
Improve M&E of ODA resources; and
Increase dialogue and information sharing.
STATUS OF DONOR FUNDING – NATIONAL LEVEL
2007 2008 2009 2010 2011 20120
20
40
60
80
100
120
140
160DONOR FUNDING NATIONAL LEVEL 2007-2012
Bilateral Donor Multilteral Donor Total Donor fund-ing
$FJD
m
7%
19%
54%
7%
7%
6%
TYPE OF DONOR ASSISTANCE RENDERED TO DEPT OF FORESTRY FROM 1980 TO CURRENT PERIOD
Financial
Technical Advise
Training
Provision of Equipment
Provison of Vehicle & Ve-hicle Parts
Infrastructure
ISSUES FOR PRIVATE INVESTMENTS AND ENABLING ENVIRONMENT FOR FINANCING SFM Attractive incentive packages from key stakeholders tailored
for various markets, and stages of wood production Linking tax deductions with degree of compliance to SFM
standards such as National Standard for Forest Certification Specialized capacity that fully understands the evolving needs
of investors for developing specific packages serving mutual needs.
An institutional infrastructure to address the various needs of investors at the various stages of the investment
Administration and management must target a balance in investment in various resource sectors (agriculture, fisheries, forests).
A strong link between regional organizations as conduits for accessing funds for implementing SFM related programs, as alternative sources for the difficult to access ODA
FINANCING GAPS AND OPPORTUNITIES(FINDINGS)
Large potential for conservation and alternative livelihoods, resourcing needs to be enhanced.
Addressing the drivers of deforestation and forest degradation
Lack of support in financial institutions targeting forest management activities
An increasing awareness on the importance of forests environmental conservation.
Lack of incentives for the private sector to improve sustainable forest practices.
A large potential for private and corporate investors to invest into forest-related activities, need to put in place incentives for afforestation and reforestation
SFM IMPLEMENTATION CHALLENGES
Implementation procedures A whole paradigm shift in forest management and decision
making Implementation modalities
Communication and awareness; monitoring of implementation
Implementation priorities Integrated resource management; transition from timber
production to sfm, shift to landowner involvement, upgrading of forest industry and supply of high quality forest products, institutional framework
Role of stakeholders National government; Forestry department; other
government institutions, resource owners, forest industry, NGOs
RECOMMENDATIONSSTRATEGIES FOR INCREASING FINANCING FLOWS FOR SFM
1. Formulate a National Forest Development Strategy that includes a National Forest Finance Strategy
2. Strengthen collaboration with Pacific Regional Organizations and NGOs in forest conservation and accessing conservation grants.
3. Encourage Corporate Social and Environmental Responsibility4. Encourage Forest Certification (SFM Certification)5. Encourage Public-Private Partnerships for infrastructure
developments6. Review forest licence and service fees towards a user-pay system7. Establish incentives for forest establishment and sfm related
activities8. Encourage development of non-timber and non-wood forest
products9. Levy a Green Fee on foreign visitors10. Promote Agroforestry practices11. Introduce a levy system on the sales of logs sourced from native
forests12. Promote forest-based ecotourism13. Implement the Fiji REDD+ policy