Vol. 24 No. 27
Wednesday, 5 November 2003

On Tuesday, delegates met in council and committee sessions. In the morning, Council considered, inter alia: the report of the Expert Panel on Management of Project Implementation and the ITTO Draft Biennial Work Programme for 2004-2005. The Committees on Economic Information and Market Intelligence (CEM), Forest Industry (CFI), Reforestation and Forest Management (CRF) and Finance and Administration (CFA) convened in the afternoon.

JAPAN encouraged members to implement the Panel's recommendations. GUATEMALA highlighted a video conference held in Latin America on project implementation, and recommended that ITTO rules and procedures contain a roster of experts for project evaluation. Stressing the importance of monitoring by local experts, INDONESIA said that inadequate ITTO standards and tight timeframes, not executing agencies, are the causes of delayed implementation. The EU said that, when evaluating the effectiveness of implementation, the project appraisal phase must also be considered, and urged that criteria for project continuation be developed. SWITZERLAND argued that problems occur throughout the implementation phase, not simply during the early and latter stages of a project, and called for strengthened project management and the monitoring of training. GHANA recommended focusing on project management, rather than project formulation. MALAYSIA expressed faith in the recommendations of the Expert Panel, and urged all parties to assume their respective responsibilities during project implementation. Noting that panel experts, Council and donors must appraise and approve all projects, BRAZIL, supported by the US, said that project implementation is a shared responsibility, not one confined to executing agencies. The US added that delays in project implementation must be solved at multiple levels. The NETHERLANDS stressed the importance of high-quality project design and recommended shifting the discussion from the project level to the policy level. ECUADOR said that ITTO criteria for successful project implementation should be clarified, and urged executing agencies to focus on management activities.

CRF Chair Henri-Félix Maître (France) established a small ad hoc working group, composed of Brazil, Cote d'Ivoire, the US, Norway and Indonesia, to select projects for ex-post evaluation.

The Secretariat noted an absence of information on Egypt's project on a national statistical system for imported timber and timber products. Tapani Oksanen, Consultant, reviewed a project on information dissemination for timber processing, utilization efficiency and waste reduction.

Lachlan Hunter, Consultant, presented a project on value accounting of tropical forest resources in China. The Secretariat commented on a project to promote the use of lesser known species in the Democratic Republic of Congo, noting it experienced delays due to political instability. On establishing a data collection and dissemination system for timber marketing statistics in Cameroon, the Secretariat remarked that changes in local conditions are jeopardizing the project's completion.

The Secretariat stated that a report on a biomass energy technologies project in Malaysia and Cameroon had not yet been received and noted that a Brazilian project aimed at strengthening a forest products laboratory is having legal difficulties with ITTO's fund administration rules.

Agus Setyarso, Consultant, outlined progress on Indonesia's project on the development and implementation of guidelines to control illegal logging. The Secretariat outlined a proposal to renew funding for the ITTO's information and project support initiative and reviewed a project on processing African timber. The Secretariat noted that funding issues for a training project in Guyana on reduced impact logging had been resolved.

The Committee decided to advise Council to allocate additional funds to a project on the Indian timber market. The Secretariat suggested speeding up the implementation of the project concerning the promotion of NTFPs in Nepal. CHINA asked for, and the Committee approved, an extension of its project on sustainable management and utilization of bamboo. The Secretariat noted that a pre-project on the development of a strategy for enhancing national forestry statistics management in Cote d'Ivoire had been re-submitted.

The Secretariat presented, and delegates discussed, a proposed multi-phased consumer awareness programme to address market failures for tropical hardwoods and the CEM/CFI established a small ad hoc group to further consider the issue.

The Secretariat reviewed the status of the administrative account for the year 2003 (CFA(XIV)/4). NEW ZEALAND, COTE D'IVORE, INDONESIA and the US asked about actions taken to enforce the payment of membership dues. The Secretariat said that payment reminders are sent out regularly and that penalty for non-payment includes the withdrawal of voting rights. CFA Chair Chris Ellis (US) said this could affect the negotiation of the successor agreement due to a possible redistribution of votes.

The Secretariat presented the Draft Biennial Administrative Budget for 2004-2005, noting a 2004 budget increase of 18 percent from 2003.

Regarding funding for regional consulting offices, SWITZERLAND, JAPAN and GABON supported keeping funding in the administrative budget, while the US and NEW ZEALAND preferred voluntary contributions and funding from other ITTO accounts. JAPAN also noted that the Secretariat should take into account the downward economic trend in Japan when budgeting. CHINA questioned the applicability of the ITTO's assessment procedures. INDONESIA emphasized the difficulty of national accounting circumstances when paying ITTO assessed contributions, as countries' disbursement dates for assessed contributions may not meet the payment deadlines imposed by the ITTO. Chair Ellis noted that over the years, the expansive scope of ITTO activities has been funded by voluntary contributions, but it is not a sustainable way to proceed and will be a significant part of discussions at PrepCom II.

On statements of the administrative budget for 1986-2003 (CFA(XIV)/3), Chair Ellis said producing members owe US$1.5 million for 2003, and are US$4.2 million in arrears. On a recommendation to write-off former members' arrears, the committee debated arrears of the Russian Federation.

Some member states expressed concern over the relatively high number of reforestation projects. One delegate commented that some producing countries believe that donors are more willing to fund reforestation projects, and others emphasized that a greater effort should be made to promote trade-related project work.