USAID/Russia, 19/23 Novinsky Bulvar, Moscow 121099, Russia

R -- ENVIRONMENTAL INITIATIVES IN THE RUSSIA FEDERATION SOL 118-00-001 DUE 020700 POC Orion Yeandel, Agreement Officer, E-mail: oyeandel@usaid.gov, Tel: 7-095-956-4121; Fax: 7-095-960-2141 WEB: http://www.info.usaid.gov/procurement_bus_opp/procurement/announce/cbd, http://www.info.usaid.gov. E-MAIL: http://www.info.usaid.gov, oyeandel@usaid.gov. Modification 1 to Request for Expressions of Interest No. 118-00-001. After the initial Request for Expressions of Interest was posted on November 10, 1999 a concept paper was developed and shared with key Russian and American partners. This concept paper was used as a "straw man" and discussed during a two-day project design meeting in Moscow, December 7-8, 1999. Based on these discussions, the Draft Concept Paper (below) was developed and is now being published for comment. In addition, this Draft Concept Paper will be sent to all organizations and individuals that expressed interest in the original CBD announcement. USAID/Russia is interested in your reactions to this Draft Concept Paper. It is important to note that this activity has not been approved. The components listed below relate to a five-year $20 million effort. USAID/Russia is interested in your opinions on these components including any recommended additions or deletions. USAID/Russia is also interested in which components should be cut if less funding is approved. At present, funds are NOT available. If funding is approved USAID/Russia plans to issue a Request for Applications (RFA) to select an organization to design and implement the entire activity. Currently, USAID/Russia is not considering awards for single components, specific activities, partial programs or multiple awards. Specific areas of assistance and mechanisms of this new activity will be designed in coordination with key Russian counterparts, including RFE and Siberian Krai administration officials, regional and federal representatives of the Russian Federal Forest Service, forestry institutes, non-government organizations, non-timber forest product associations, and the private sector. Please e-mail your comments to my attention at this address (oyeandel@usaid.gov) not later than February 7, 2000. If you have any questions or require further information please e-mail me at the address above or send a fax to my attention at 7-095-960-2141. Thank you for your interest in the USAID program in the Russian Federation. Orion Yeandel, Agreement Officer. Forestry Resources and Technologies (Forest) Draft Concept Paper Introduction. With a total forested area of some 764 million hectares, Russia accounts for over 22 per cent of the world's forested area, 78 per cent of which is located in the Russian Far East (RFE) and Siberia. Russia's vast expanse of forests provides a major carbon sink that may represent as much as one-seventh of the earth's territorial carbon pool and about 75 percent of estimated net carbon storage capacity of the total boreal forest ecosystem. It is also an area of great cultural diversity, the home of numerous indigenous people, many of whom still practice traditional economies based on hunting, fishing, reindeer herding, and the use of non-timber forest resources. Moreover, the huge size of the forests of Siberia and the RFE and the biodiversity of their plant, and animal life and habitats make these forests an environmental factor of tremendous importance to Russia and the world. However, many years of central planning policies in Russia led to unsustainable forest management practices which were exposed with the introduction of a market economy. The lack of budgetary funding for forest protection activities, low and unpaid salaries of forestry officials, gaps in the current forest legislation and its enforcement mechanisms, as well as high levels of unemployment among local populations have resulted in uncontrolled and unsustainable use of forest resources. Background USAID/Russia implements a comprehensive sustainable natural resources management program designed to preserve and expand Russia's globally important carbon sink. This program builds upon our successful natural resources and biodiversity program implemented in the Russian Far East since 1993. In the forestry sector, programs focus on forest fire prevention, pest control, reforestation, and forestry policy. In protected areas management, the primary focus is on protecting and expanding Russia's nature reserves through the introduction of innovative financing mechanisms, including environmental education and eco-tourism programs. Finally, to support the sustainable use of non-timber and timber products, USAID/Russia implements an eco-business program, which generates employment in the region, while also improving the sustainable use of harvested natural resources. Following are examples of program accomplishments. In cooperation with the Federal Forest Service of Russia (FFSR) in Khabarovsk Krai, USAID introduced the first artificial reforestation program in the RFE. This comprehensive program has already resulted in the production of over two million seedlings in 1999, compared to the 6,500 produced before the program was initiated. Although USAID funding has ended, the Forestry Administration in Khabarovsk has continued to construct additional greenhouses and hopes to reach a full capacity of 10 million seedlings per year by 2005. In addition, with support from the Replication of Lessons Learned (ROLL) Project, this successful reforestation program has been replicated in Primorski Krai through a Russian-to-Russian partnership. With USAID support, the regional forestry service and government administration in Khabarovsk Krai developed and adopted the Russia's first regional Forest Code, specifying regional requirements for public auction, public review, competitive leasing, etc. This pilot initiative was supported by the FFSR and it is now being replicated. In the RFE and Siberia new associations were created and many businesses supported to expand operations and market linkages in the area of non-timber forest products and value-added timber processing as opposed to production and export of timber in the form of raw logs. This resulted in more ecologically sustainable business development due to integrated and effective use of forest resources, as well as increased employment in the regions. These and other activities have created a solid basis to address environmental, natural resource use, and management needs. Positive experience has been gained and useful lessons are being further replicated and disseminated throughout the Russian Federation. However, several issues remain which have not been sufficiently addressed, yet are crucial for sustainable forestry management in Russia. These issues include the need for improved pest control and management, carbon sequestration/emission calculation and monitoring, and use of timber wastes for energy production. In addition, assistance is needed to expand and deepen the results in the area of forestry legislation, non-timber forest product use, fire prevention and suppression, and public participation and awareness in relation to forest protection. USAID/Russia proposes to address these issues through a new five-year forestry management activity, designed and implemented in cooperation with our Russian partners in the RFE, Siberia, and Moscow. Goal and Objectives To further build upon and expand successful forestry initiatives implemented in the past, USAID/Russia will design a new activity, Forestry Resources and Technologies (FOREST. The major goals will be to reduce the threat of global climate change and preserve biodiversity through promoting sustainable forestry management and preserving Russian forests as a globally important carbon sink as well as habitat for rare and endangered species. The principle objectives to achieve this goal are the following: Strengthen regional forest policy and legislation in the RFE and Siberia to promote sustainable forestry management. Preserve and expand Russia's carbon sink through more effective fire and pest management. Encourage more effective and innovative use of timber and non-timber forest resources in the RFE and Siberia. Raise public awareness and change public behavior to reduce the number of forest fires caused by man. Introduce renewable biomass energy options as alternatives to conventional fuels. Major Areas of Activity The new forestry management program will be designed as a comprehensive set of activities to address the major forestry management issues in the RFE and Siberia. The program will focus on development of forest policy and regulations, development of public awareness and education campaigns, development of environmentally friendly businesses, and introduction of renewable energy alternatives. All activities will be closely coordinated with the Wold Bank financed Pilot Project on Sustainable Forestry and other forestry initiatives implemented in the RFE and Siberia with foreign donor assistance. Forest Fire Prevention In the area of forest fire prevention, there is a critical need to develop and conduct a forest fire prevention program for the general public. The devasting forest fires of 1998 and 1999 resulted primarily from anthropogenic causes. As more and more people use the forests to sustain their livelihoods, there is a great need for a public awareness campaign to educate people on safe behavior to prevent forest fires and to change their behavior when using the forests. Under this component, assistancewill provided to develop a national forest-fire prevention campaign. The U.S. program (Smokey Bear) will be used as a model for this program, as well as pilot activities currently underway in Khabarovsk Krai (with the assistance of the World Wildlife Fund and the U.S. Forest Service). It is expected that this educational and public awareness campaign will be designed to improve public behavior in forests and to decrease the danger of forest fires that are caused by people. It will be designed in coordination with the Federal Forest Service of Russia (FFSR) as a federal level campaign, including development of a federal strategy, education materials, logos, public awareness posters, and TV and radio commercials. The campaign will be piloted in at least one krai. In addition to the educational component, a pilot activity will be undertaken in at least one krai to develop a network of rest areas. One negative result of uncontrolled recreation is the large number of forest fires caused by people. To promote a fire prevention culture, a system of forest rest areas will be designed and created in a selected region. The basic infrastructure of such areas may include parking areas, grills, picnic tables, benches, and rest rooms. If visitors' fees are imposed for using these areas, additional revenue will be generated and can be further used for maintaining and improving the constructed facilities as well as for forest protection. Pest Control and Management Insects and disease play an important natural role in the evolution of forest ecosystems, but similar to fires, inappropriate human activity can greatly increase the intensity and frequency of pest and disease outbreaks. Total forest losses due to pest or disease outbreaks could be as high as the estimated losses due to forest fires. A great deal of experience has been already gained in the area of pest control and management both in Siberia and the RFE and a respected cadre of entomologists and other specialists are now working in the region. For example, in Krasnoyarski Krai, the World Bank funded a USD 5 million project on suppression of the Gypsy moth outbreak. While this project was successful, it focused primarily on suppression as opposed to prevention. Because outbreaks are difficult to suppress on such large territories, the early prevention method is more effective, both in terms of management and costs. For the purpose of pest control and early detection of outbreaks, a pest-monitoring program will be designed and implemented in at least one region of Siberia or the RFE. It will include identification and development of monitoring plots, arrangement of pest control field expeditions, monitoring data collection and processing, and identification of areas with the highest risk of pest outbreaks. Non-Timber Forest Products and Secondary Wood Processing The non-timber forest products (NTFP) and secondary wood processing (SWP) sectors are of vast importance for the economic recovery of the Russian Far East and Siberia. The importance of this sector has increased as the country continues to struggle through a time of economic hardship. Domestic products are in great demand, including food products, such as juices, honey, and berries, and value-added wood products, such as furniture, doors, and flooring. Since 1994, USAID has assisted individual firms to develop business plans and marketing strategies, meet domestic and international packaging and labeling standards, improve business practices, and facilitate market linkages between Russian producers and foreign buyers on NTFP and forest products. Assistance has also been provided to create new timber and NTFP associations in the RFE and Siberia. Finally, through a small grants program, resources have been provided to support development of new product lines, recycling programs, and innovative energy-efficient processing technologies. To assist with this transition and to build upon past efforts continued assistance will be provided to encourage more effective and innovative use of timber and non-timber forest resources in the RFE and Siberia. This will include support to small businesses to improve marketing capabilities and facilitation of trade linkages in the areas of NTFPs and value-added timber processing. Emphasis will be placed on working through the existing associations to help them become self-sustaining entities that actively promote the interests of the NTFP and timber sectors. This will be accomplished through development of partnerships between Russian associations and similar American associations, particularly those located in the U.S. Northwest and Alaska, to share business experience in membership promotion and client responsiveness. In addition, at least one association will be competitively selected to become a full-service leasing and training center to assist member companies. The association will be trained to provide marketing assistance to act as consultant to member companies. In addition, the association will be equipped with environmentally clean and efficient American technologies (i.e., kilns and saws) so that it may act as a leasing and training center. U.S. trainers will also provide special training on the use of this equipment. Renewable Energy Alternatives The potential and benefits of biomass energy/cogeneration in the RFE and Siberia are very significant, especially in the areas where there is a lack of traditional fossil fuels, but surplus of wood waste in sawmills as well as resources of low quality timber (yellow birch), timber damaged as a result of fire, pests, and forest disease. However, this potential is yet untapped due to absence of effective technologies and inadequate local expertise. In order to promote this alternative energy, a training program is proposed to provide Russian experts with the knowledge and tools necessary to carry out the groundwork for introducing and increasing the use of biomass energy for power generation in Russia. The groundwork for introducing this renewable energy in a selected site of the RFE or Siberia may include: an assessment of the available biomass energy resource base, defining the options for biomass energy generation and cogeneration, identifying suitable applications for biomass energy generation and cogeneration, evaluating the economics of suitable biomass energy generation and cogeneration systems, characterizing the environmental and social benefits of biomass energy systems, and formulating energy policy options to promote the economic development and wider use of biomass energy generation and cogeneration systems in the RFE and Siberia. Based upon the results of the above assessment, a demonstration activity will be implemented in at least one site. This will include technical assistance as well as purchase, installation, and monitoring of equipment to implement a pilot project on biomass energy use. A final selection of the project activities will be made based on the discussion with Russian counterparts. Cross-Cutting: Forest Policy and Legal Reform Substantial progress has been made in the area of forest policy and legal reform in theRFE. This includes analysis of the Russian Federal Forest Code, development and adoption of a Regional Forest Code for Khabarovski Krai, as well as development a draft forest code for Amurskaya Oblast. Now with the assistance of forestry experts from the RFE, this experience is being replicated in Siberia, where a forest code for Krasnoyarski Krai is under development. Development of these regional forest codes is an excellent first step towards introduction of sustainable forestry legislation. However, to ensure the effective implementation and enforcement of these framework documents, additional efforts are required. For example, implementing legislation must be developed to support the forest codes, including new legislation for the forest tenure system, timber pricing, and public participation in forestry decision-making. To facilitate the development of this new regional legislation, a major gap analyses of the existing regional forest legislation will be conducted in at least two krais to identify priority areas where modification or development is needed. Based on the results of the analysis, an overview of Russian, U.S. and other countries forest legislation at a regional level will be prepared. This overview will be used as a model for recommendations to develop and/or modify the current regional legislation in at least two krais the RFE and Siberia. This component as well as other cross-cutting ones will be also design to address specific legislative needs that emerge in the process of implementing activities under other program components. For example, legislation on public behavior in forests may become needed to successfully implement a fire-prevention public campaign. It can be also considered crucial to develop legislation on use prescribed burns for preventing large-scale wild fires. A long-term strategy for using renewables, which takes into account social and environmental benefits, can be determined as a useful policy document-promoting introduction of renewable energy alternatives in the region. Cross-Cutting: Applied Forestry Research Russian and American foresters and policy-makers are concerned with measuring results of specific forestry interventions. The research component of this project should serve a management tool to help measure results of other components. Measurement of increased carbon sequestration or reductions of carbon emissions is of primary importance. This provides the basis for calculating carbon balance changes that are necessary for identifying the most productive interventions for forestry preservation. A methodology will be recommended and approved by a coordinating body for measuring the results of individual activities to promote applied forestry research throughout all components of the new FOREST activity. Specific and additional forestry research activities will be further identified in the process of the design and implementation on an "as needed basis". For example, if damaged or low quality timber is locally available and determined to be a good supplement component to wood waste, when used as a renewable energy alternative, it will be useful to do a research and develop recommendations on use of those types of local timber. Cross-Cutting: Forestry Grants Program To complement and supplement other components of FOREST, a sub-grants activity will be implemented. This competitive mechanism will be established to provide funding for activities that directly co Posted 01/24/00 (W-SN418098). (0024)

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