Projects

Forest Protection and Reforestation project. Component D: Economic and Financial Analysis

01.11.2004 - 31.12.2004

Kazakhstan

Overall project value (EUR)46380 Euro (60200 USD)
No. of staff provided4
Name of ClientThe Forest and Hunting Committee (FHC) of the Ministry of Agriculture of the Republic of Kazakhstan
Financing agencyWorld Bank (WB)
Name of partnersAFC Consultants (Germany)
Detailed Narrative Description of ProjectThe purpose of this contract was to provide economic expertise as part of the project team for the collection and analysis of economic and financial information related specifically to the investments proposed under the project, and to contribute to the design of the project for preparation of a project implementation plan and associated background studies on the proposed 6-year Kazakhstan Forest Protection and Reforestation Project.
Detailed Narrative Description of Services providedThe economic and financial analysis included:
- Cost estimates: review costs of current forestry practices, existing project cost estimates, validate the estimates, and propose more cost-effective alternatives;
- Cost-benefit analysis: a detailed cost-benefit analysis undertaken during project preparation, taking into account the analysis issues and using quantitative models;
- Market analysis: the analysis included a preliminary assessment of current and potential market conditions for saxaul;
- Local public goods assessment: this involved an assessment of environmental services and potential payment arrangements, e.g., subsidies for investments with significant public benefit externalities;
- Analysis for GEF: an analysis of the “incremental” or additional costs associated with transforming a project with national benefits into one with global environmental benefits;
- Poverty impact analysis: the impact of the project on poverty in terms of opportunity, empowerment, and security;
- Economic monitoring: project-wide indicative estimates of with- and without-project scenarios made building on preliminary assessments, based on initial surveys and secondary data;
- Fiscal impact analysis: an assessment of the fiscal impacts of the project, both expenditure and revenue aspects, within the context of a public expenditure and revenue review of the whole forestry sector.