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PRE-PROJECT COMPLETION REPORT National Training Program to Promote the Adoption of Reduced Impact Logging (RIL) in Papua New Guinea Project Identification Title: Serial Number: Executing Agency: Host Government(s): National Training Program to Promote the Adoption of Reduced Impact Logging (RIL) in Papua New Guinea. PPD-125-06-R2 (I) PNG Forestry Authority Government of Papua New Guinea Starting Date: 9 th June 2008. Actual Duration (months): 3 Months. Actual Project Costs (US$): ITTO 58,806.00 PNGFA 14,429.00 PPD-125-06-R2 - Completion Report Page 1 of 6

PART I: Executive Summary 1. Background Information about the Pre-Project The Government of Papua New Guinea recognizes the need to strengthen its oversight of the natural forest administration and to improve the performance of medium to large-scale forest management companies. Fundamental to this basic recognition, is the need to develop and implement a training program focused on improving industrial scale forest operations in order to strengthen the capacity to manage the natural forests of PNG according to principles of sustainability. Pre-project activities enabled the PNG Forest Authority to develop a full Project Proposal Document for a national promotion, training, and demonstration program to promote the adoption of a strategy widely referred to as Reduced Impact Logging (RIL). The pre-project focused primarily on the needs and performance of the country s medium to large scale forest companies. The Pre-Project had two specific objectives: 1. The Pre-Project will conduct a diagnosis of current operational practices and collect all information necessary to define the structure, form, and content of a national project on RIL training and demonstration. 2. The Pre-Project will develop a detailed Project Proposal document including a RIL training and demonstration program. The pre-project had a planned duration of 3 months. The pre-project team comprised NFS personal and Technical Adviser from the Tropical Forest Foundation (TFF). The total budget was USD$73,235.00 of which USD$58,806.00 was sourced from ITTO funds. 2. Project Achievements 2.1 Development Objective Achievements The development objective of the pre-project is to improve the country s forest harvesting practices through capacity building with special emphasis on medium to large scale industrial operations, drawing on experience gained from past training efforts with small-scale community based harvesting activities by developing appropriate demonstrations and effective training in Reduced Impact Logging (RIL) techniques in order to enhance overall sustainable forest management. In the context of the Pre-Project, it was proposed that this Development Objective would be addressed through the realization of two following Specific Objectives 2.2 Specific Objective and Output Achievements Pre-project achievements for each objective / output are briefly described in the following table with reference to the pre-project matrix. The various Project Progress Reports have provide a complete description of project achievements. PPD-125-06-R2 - Completion Report Page 2 of 6

Specific Objective 1: The Pre-project will conduct a diagnosis of current operational practices and collect all information necessary to define the structure, form, and content of a national project on RIL training and demonstration. Outputs Activities Achievements Output 1.1: A Conceptual Report will be prepared following field visits. The report will present the results of the diagnosis of current operations as recorded during the field visits and discussions, and will lay out the basis for the development of a full Project Document. 1.1.1 Field visits to the two proposed RIL demonstration sites at Wipim Tapila Model Forest, Western Province, and Moiwa TRP Area, Western Highlands Province, as well as visits to at least 3 working concessions and to the University of Technology, Lae. 1.1.2 Preparation of a conceptual report based on the field visits and a diagnosis of current operational problems and training needs. The report will present a project concept for consideration by PNGFA staff. 1.1.3 A Project Formulation Workshop will be held with PNGFA staff to finalize the project concept based on the conceptual report. During July/August 2008, the Technical Advisor to the PNGFA visited PNG. During this period, all activities necessary for the completion of Objective 1 were completed as planned. The field visits to working forest operations provided an excellent reality check against the prescribed practices as detailed in the PNG Logging Code of Practices and related regulations. The workshop brought together 26 participants from the public and private sectors, including the education community from around PNG. Specific Objective 2: Develop a detailed Project Proposal document including a RIL training and demonstration program. Outputs Activities Output 2.1: A full Project Document will be prepared for the implementation of a RIL Training and Demonstration Project based on the diagnostic report of operational deficiencies and training needs, and based on the consensus developed around the Concept Report. 2.1.1 Preparation of full Project Document based on the final decision reached at the Pre-Project workshop. 2.1.2 A program for RIL training and demonstration will be prepared as an annex to the Project Document. 2.1.3 Presentation of the Project Document to the PNGFA for discussion, ratification, and submission to the ITTO. Due to the scheduling complications, the draft Project Document was presented to a review committee in Port Moresby in March 2009, where refinements to the project activities were proposed and detailed budgeting information was collected. A revised draft Project Document was then prepared and subsequently reviewed by members of the review committee before finalization of the document and submission to ITTO by end of May 2009. PPD-125-06-R2 - Completion Report Page 3 of 6

3. Target Beneficiaries Involvement The table below describes how key stakeholders participated in the pre-project. The Project Progress Reports provide a complete description of project activities and findings. Objective Stakeholder Methods 1. National Forest Service PNG University of Technology Timber & Forestry Training College Cloudy Bay Sustainable Forestry Ltd Forest Industry Association Wawoi Guavi Timber Company Ltd. Stakeholder meetings The first field visit was to Lae involved meetings with the Manager of the Momase Area Office (National Forest Service), as well as discussions with senior members of the main forestry training institutes in PNG to gauge their capacity and willingness to participate in the proposed RIL training project. A field visit was made to their logging operation in Central Province. This is a medium scale operation which commenced logging approximately two years ago. A discussion was held with members of the FIA in Port Moresby. The purpose of the discussions was to brief the Association on the intent of the RIL training proposal and to seek input from the Association which represents the forest concession holders in PNG. A field visit was made to their logging operation in Western Province. This is one of the oldest, large scale logging operations in PNG and includes a sawmill and plywood factory. The field visit focused on all aspects of forest planning and operations and provided useful insight into some of the challenges facing the forest concession industry. During the days leading up to the Project Formulation Workshop at the PNGFA headquarters in Port Moresby, various meetings were held with representatives of the forestry sector and the PNGFA. The purpose of the workshop was to present the concept of the RIL training proposal in light of recent field visits, discussions, and review of the regulatory framework in PNG. The workshop provided an opportunity for a lively discussion and helpful suggestions, and led to a consensus opinion with regards to the implementation strategy for the full-project. Objective Stakeholder Methods 2. National Forest Service PNG University of Technology Timber & Forestry Training College Forest Industry Association Cloudy Bay Sustainable Forestry Ltd The draft Project Document was presented to a review committee convened in Port Moresby during March 2009. Detailed discussions lead to refinements in the project concept, activities and responsibilities, and provided a strong basis for developing a consensus based project proposal. A meeting was also held with the Forest Industry Association and the management of the Cloudy Bay forest operations to brief them on the current status in project formulation and to discuss future involvement in the project implementation phase. PPD-125-06-R2 - Completion Report Page 4 of 6

4. Lessons Learned The Pre-Project strategy of identifying the training needs and training capacities, was implemented though a thorough stakeholder driven process. It is felt that this process has resulted in the design of a Project Proposal for an initial, two year national RIL training program that: - addresses the most urgent training needs, - involved all relevant stakeholders, - identified all training resources and capabilities, and, - developed a realistic project concept in line with the stated development objective. Although this process may have taken a little longer to implement than was originally anticipated, it has resulted in a consensus for a national RIL training program as described in the Project Proposal Document which has already been submitted to the ITTO for technical review. 5. Recommendations Based on a review of the Pre-Project implementation process and an analysis of the resulting Project Document, the Government of Papua New Guinea as represented by the PNG FA, is confident that the proposals and methodologies described in the Project Document are in line with national interests, address the existing needs for RIL training, and present a realistic and timely implementation scenario. The PNG FA, therefore, urges the ITTO to give serious consideration for support of this import project proposal. PART II. Main Text 1. Project Results Despite considerable delays in the initiation of planned activities, the pre-project has been successfully completed resulting in the definition of a national project on RIL training and demonstration, and the subsequent formulation of a detailed Project Proposal to increase awareness and understanding of RIL implementation, and strengthen national capacity to implement RIL practices. There is now a broad based consensus on the structure, outputs, activities and budget of the proposed National Training Program to Promote the Adoption of Reduced Impact Logging in PNG. There is also broad based agreement on the roles of the various implementing agencies and a strong desire to have this project move forward through the ITTO review process as expediently as possible. 2. Synthesis of the Analysis (a) Specific Objective(s) Achievement (b) Outputs Realised in full Realised in full (c) Schedule Expanded time frame adopted due to complexity of process. (d) Actual Expenditures (e) Potential for replication Less than 10% over budget; in-kind contributions realized in full. Significant potential (f) Potential for scaling-up Significant potential PPD-125-06-R2 - Completion Report Page 5 of 6

PART III: Conclusions and Recommendations The pre-project has enabled the PNG Forest Authority to formulate a full-project proposal to promote the adoption of RIL in Papua New Guinea. The Project Specific Objectives have therefore been realized, and a cost-effective plan for bringing about the Project Development Objective has been carefully prepared in consultation with stakeholder representatives. 1. Development Lessons The PNG FA, with assistance from the Technical Advisor and funding support from the ITTO through a Pre-Project grant, has effectively formulated a two year, national RIL training proposal which has now been submitted to the Technical Review Committee of the ITTO. The formulation of the Project Proposal for a national RIL training project, was the result of a methodical examination of the training needs of the countries medium to large scale forest concessions and was strongly rooted in discussions with forest industry members as well as field visits to working forest concessions. The Pre-Project also examined the current situation with respect to training needs of the PNG FA Field Services Directorate. Identified needs where incorporated into a full project design through a consultative process that involved all stakeholders in a future national RIL training project. 3. Operational Lessons During the implementation of the Pre-Project, training needs and modalities were explored in a thorough stakeholder driven process. Furthermore, existing training capabilities and facilities were examined in training and regulatory institutions were involved in the development of a two year project proposal. It is felt that this process has successfully defined the existing training needs of both the medium to large forest concession companies as well as the needs of the PNG FA Field Services Directorate. This process has laid the groundwork for a successful implementation of a national RIL training program. 4. Recommendations Based on a review of the Pre-Project implementation process and an analysis of the resulting Project Document, the Government of Papua New Guinea as represented by the PNG FA, is confident that the proposals and methodologies described in the Project Document are in line with national interests, address the existing needs for RIL training, and present a realistic and timely implementation scenario. The PNG FA, therefore, urges the ITTO to give serious consideration for continued support of this import project proposal. Responsible for the Report: Name: Mr. Frank Agaru Position held: Acting Aid Coordinator, National Forest Service Date: 31 st August, 2009. PPD-125-06-R2 - Completion Report Page 6 of 6