FORESTRY II

closed

The project would: (i) increase teak and hardwood exports by expanding primary forest extraction capacity and improving transportation facilities; (ii) increase domestic supply of sawn hardwood by expanding sawmilling capacity; (iii) augment future timber supply through teak plantation establishment and large-scale trials of other species; and (iv) provide staff training and technical assistance. At full development, the net annual incremental forest output is estimated at about 72,000 Hoppus (H) tons of teak and 220,000 H tons of hardwood, valued at about US$90 million after processing. The project would generate additional direct employment for about 3,000 workers and create new permanent employment for about 1,700 landless farm families. The rate of return to the economy is estimated at over 100 percent.