arannayk foundation annual report 2009

ii Arannayk Foundation

MESSAGEThe Arannayk Foundation was established as a not-for-profit company through jointinitiatives of the governments of Bangladesh and the United States in 2003 under theauspices of the US Tropical Forest Conservation Act of 1998 to support tropical forestconservation activities in Bangladesh. The Foundation is managed by a Board ofDirectors consisting of seven members: two from the two governments - JointSecretary, Development, Ministry of Environment and Forests, Government ofBangladesh and the USAID Mission Director in Bangladesh - as ex-officio membersand five other members selected from relevant civil society organizations inBangladesh. The first Board of Directors worked for two consecutive terms (3 yearsper term), which ended on 25 July, 2009 and the current Board started from the nextday. One of the main challenges for the Board of Directors in the beginning of 2009was to ensure smooth transition from the old to the new Board by replacing the fivemembers from civil society organizations with new ones. The new Board memberswere selected through open solicitation through two national dailies followed byprimary screening and discussion with the short-listed candidates by the USAID andthen final approval by the Government of Bangladesh. The new Board Members wereinvited to attend the last two Board Meetings of the outgoing Board as observersthrough which they got orientation about the functioning of the Arannayk Foundationand thus there was a smooth transition from the old to the new Board.

The Foundation had its first independent evaluation by the Tropical ForestConservation Act Secretariat, Washington, DC in 2008. The evaluators made somerecommendations for improving operations of the Foundation. The Board ofDirectors strictly followed the recommendations and monitored the compliance of therecommendations by the Secretariat. I am happy to say that the Secretariat significantlyimproved the management of the grants and field level implementation of the projectsby following the recommendations. The new Board members also contributed torevising the 'Strategic Plan' and operation of the Secretariat and hence there are nowmore focused programs for community-based management of tropical forests andbiodiversity conservation. While the Foundation has supported 46 projects since 2006,of which 21 are still on-going, so far the Foundation has utilized only the interestincome of the Foundation, keeping the fund received under the TFCA agreementintact. This is an indication of the sustainability of the program. However, there is aserious need to scale up successful pilot interventions, for which fund-raising isessential.

This Annual Report will hopefully help the readers understand the activities andsuccess stories of the Arannayk Foundation in collaboration with partner organizationsand development partners. What is essential now is to replicate these successfulinterventions for the continued conservation of tropical forests and biodiversityresources of Bangladesh.

Denise RollinsChair, Board of Directors

iiiAnnual Report 2009

FOREWORDBefore 2009, the Arannayk Foundation (AF) had been soliciting project proposals fromNGOs, academic institutions and other relevant organizations mentioning only the broadprogram areas such as conservation of biodiversity of homesteads, coastal areas,medicinal plants, etc. Except few proposals, most of the organizations did not understandthe themes of the projects and hence came up with mainly tree plantation program withlimited ideas on conservation of natural forests involving communities. When theyreceived grant awards, they started implementing the projects in the field and soon realizedthat the project sites did not address either the issue of biodiversity or forest conservationand hence requested the AF to allow them to change the project sites. On the other hand,there were no rationalizations of the project sites as the grants were given based on theevaluation of the proposals. Based on the above experience, the AF Secretariat identifiedcritical biodiversity issues in different forest areas and developed project proposals withclear objectives and expected outputs and invited project implementation proposals fromcompetent organizations. This means that the organizations that applied for the projectswere expected to elaborate only the activities or methodologies and the implementationplan to achieve the objectives of the projects. As such, AF revised its tools for theevaluation of the invited project (implementation) proposals.

Moreover, the AF experienced that mere depending on the review of project proposalssubmitted by the NGOs or academic institutions does not help in screening outorganizations that did not have good track record. It was observed that someorganizations produced good project document written by experts but, during field levelimplementation, there remained lack of conceptual ability and weaknesses in projectimplementation. Therefore, the AF included field verification of the organizationalstrengths (human resources, physical facilities and management systems), developmentcontributions and reputation among project beneficiaries and other stakeholders of theshort-listed organizations as an important part of the evaluation process. This processwas found most useful in selecting projects for forests and biodiversity conservation.

During 2009, twelve grants were awarded to successful entities. The projects included fiveindigenous community based conservation of mouza forests in Chittagong Hill Tracts,two community based conservation of swamp forests in haor areas and five forest co-management projects involving NGOs, local communities and the Forest Department.The AF established a two-stage monitoring system: activity level monitoring throughquarterly review and output level monitoring through annual review where theimplementing entities had to share the output of the interventions against eachobjectives. In addition, the AF staff members undertook frequent field visits to overseefield level activities. The quarterly and the annual review meetings involved all theimplementing entities of a particular type of projects that provided them the opportunityto share experiences and lessons among themselves that helped them improve their ownproject activities and approaches. There were exchange visits as well, the idea of whichcame up from the review meetings.

The AF was evaluated at the end of 2008 by an Evaluation Mission commissioned by theTFCA Headquarters. In its report, the Evaluation Mission expressed satisfaction on theprogress of the AF. I hope this will also be reflected in this Annual Report of the AF.

Farid Uddin AhmedExecutive Director

iv Arannayk Foundation

ABBREVIATIONS AND ACRONYMSAF Arannayk FoundationAIGA Alternative income generating activitiesBAS Bangladesh Accounting StandardsTk TakaBCAS Bangladesh Centre for Advanced

StudiesBFRI Bangladesh Forest Research InstituteCCA Community conserved forest areasCDM Clean Development MechanismCFSD Centre for Sustainable Development CGMP Competitive grant making procedureCHT Chittagong Hill TractsCMC Co-management CouncilCNRS Center for Natural Resource StudiesCODEC Community Development CentreCRF Community Reserve ForestDAM Dhaka Ahsania MissionDEBTECH Development through BiotechnologyECB Environment Council BangladeshESCB Engineering Staff College BangladeshFD Forest DepartmentFSC Finance Standing CommitteeFUG Forest User GroupsGMS Grant Management SoftwareIAS International Accounting StandardsIDO Integrated Development OrganizationIFESCU Institute of Forestry & Environmental

Sciences, Chittagong University IGA Income Generating ActivityIPAC Integrated Protected Area Co-

managementMoEF Ministry of Environment and ForestsMOU Memorandum of UnderstandingNGO Non Government OrganizationOSAD Organization for Social Development Padakhep Padakhep Manabik Unnayan KendraPFA Protected forest areasPOSC Program and Operations Standing

CommitteePPET Project Proposal Evaluation ToolPRA Participatory Rural AppraisalPRT Peer Review TeamPSC Program Standing CommitteeRDRS Rangpur Dinajpur Rural ServiceREDD Reducing Emission from Deforestation

and Forest DegradationSHED Society for Health Extension &

DevelopmentSUS Sabalambi Unnayan SamityTFCA Tropical Forest Conservation ActUSAID United States Agency for International

DevelopmentUSD United States DollarVCF Village Common ForestVFCF Village Forest Conservation ForumVFDG Village Forest Dependent GroupYPSA Young Power in Social Action

vAnnual Report 2009

TABLE OF CONTENTSExecutive Summary 01

Chapter 1 Arannayk Foundation at a Glance 03

1. Background and Origin 042. Vision and Mission 043. Governance 054. Grant-making Procedure 06

Chapter 2 Progress in Grant Making 09

Chapter 3 Completed Projects 13

1. Nursery development for regeneration of threatened species 142. Establishment of a quality seed source for threatened tree species 143. Genetic diversity conservation and restoration in Sidr-hit areas 154. Conservation of bamboo in Chittagong Hill Tracts 15

Chapter 4 Ongoing Projects 17

1. Community based herbal gardens 182. Propagation and conservation of two endangered tree species,

Civit and Banspata 203. Coastal biodiversity conservation through development of

AIG facilities 204. Homestead agroforestry through improved management practices 215. Community based conservation of forest resources in

the Chittagong Hill Tracts 226. Restoration and conservation of swamp forests in the haor areas of

northeast Bangladesh 257. AF-FD collaborative projects on co-management of forests 26

Chapter 5 Impacts 29

Chapter 6 Review of Arannayk's operations and strategic plan 31

Chapter 7 Challenges and Plans for 2010 33

Chapter 8 Finance 35

The Arannayk Foundation (AF), also called Bangladesh Tropical ForestConservation Foundation, was established in July 2003 as a not-for-profitcompany without shares pursuant to a ‘Debt Reduction’ and a ‘ForestConservation’ Agreement signed between the Governments of Bangladesh andthe United States as per Tropical Forest Conservation Act (1998) of USA. Themain objective of the AF is to promote conservation and restoration of thenatural tropical forest and forest biodiversity of Bangladesh through providinggrants to appropriate organizations. A legally-established Board of Directorsconsisting of five representatives from Bangladesh civil society organizationsand one representative each from the Government of Bangladesh and theUnited States oversees the operations of the Foundation.

The Arannayk Foundation started its grant making activities from 2006 and by2008 it awarded 40 grants to different implementing entities under nineprojects. Out of the nine projects, four were completed by 2008 and theremaining five (involving nine implementing entities) continued through 2009.In 2009, the AF awarded another 12 grants under three categories of projects.

The projects completed by 2008 include: (a) nursery development forregeneration of 150 threatened tree species of Bangladesh involving 26 privatenurseries in different parts of the country, (b) establishment of a parent stockplantation of 20 endangered tree species of Bangladesh in an institutional land(Engineering Staff College of Bangladesh at Gazaria, Munsiganj), (c)restoration and conservation of genetic diversity of trees through informationsupport and training to the farmers and nursery owners in four coastal districts(Barguna, Jhalokhathi, Pirojpur, Bagerhat) after the area was devastated by thecyclone, Sidr in October 2007, and (d) conservation of two species ofbamboos (Melocanna baccifera, Gigantochloa andamanica) in Chittagong Hill Tracts(CHT) following extensive flowering and death of the existing groves during2006-2008 through awareness raising campaign and farmers’ training oncollection, storage and planting of the bamboo seeds.

The pre-existing projects that continued in 2009 include (a) homesteadagroforetsry biodiversity conservation implemented by three entities in threedifferent areas of Bangladesh (Tala in Satkhira; Sitakunda and Mirsarai inChittagong; Patiya and Chandanaish in Chittagong); (b) coastal biodiversityconservation implemented by two entities in the coastal areas of Khulna andSaTkhira districts; (c) community-based medicinal plant conservation in twolocations (Keshabpur in Jessore and Rangamati) and (d) multiplication andrestoration of two critically endangered tree species of Bangladesh hill forestsnamely Civit (Swintonia floribunda) and Banspata (Podocarpus nerifolius).

Of the 12 new projects initiated in 2009, five involve collaboration with theForest Department and deals with establishment of collaborative managementsystem (co-management) in reserved forests under the administrative controlof the Forest Department that are aimed to be declared as protected forestareas (PFA). Another five of the new projects are on establishing sustainable

management system in community conserved forests in CHT, where the indigenous communities have been conservingsome natural forests for many decades for various ecological services needed by the respective communities but now underincreasing threat of degradation and deforestation. The other two new projects are on community-based conservation ofswamp forests in the haor (basin) areas of northeast Bangladesh. The new projects are of 3 – 4 years duration and theirimplementation begun in June/July 2009.

Although Arannayk Foundation’s grant making operations started only from late 2006, within this short period of time,the activities of the organization have created significant impacts toward reversing the trend of rapid loss of biodiversityfrom the forests and homesteads of Bangladesh.

The 26 private nurseries that started producing planting materials of endangered indigenous species of trees in 2007through Arannayk support are still producing and selling the same and, thus, have become a source of planting materialsof such species to concerned individuals and organizations. The awareness campaign made by the Arannayk Foundationsponsored projects on homestead agroforestry and coastal biodiversity conservation have created demands for thosespecies. On the other hand, by identifying the remaining trees, developing propagation techniques, establishing seedorchards and clonal hedges and distributing planting materials to different organizations, IFESCU has saved twoendangered native species of the hill forests of Bangladesh (Civit and Banspata) from extinction.

The revolving fund given to the networking bodies of the project beneficiaries and the development of their managementcapacities have created access of the poor project participants to small, and generally interest-free, loans for undertakingalternative income generation activities. In homestead agroforestry and coastal biodiversity projects, there are numerousexamples that the poor project participants, women in most cases, have been able to earn an extra income of Tk 1000–1500 per month using a loan of Tk 2000 – 5000. The most common income generating activities undertaken by theproject participants include vegetable cultivation in homesteads, cultivation of rice and other crops in leased land, cattlerearing, goat rearing, poultry rearing, fish cultivation, crab fattening, handicrafts production and small trading. The rate ofrepayment of the revolving loan is above 95%. The revolving fund has also strengthened group cohesion towardssustainable institutional development of the poor target beneficiaries. Moreover, it is contributing to conservation ofendangered native species of trees as the borrowers need to plant at least five endangered native trees in their own landsfor every Tk 1000 borrowed as a conditionality of the loan taken from the revolving fund.

The five projects in CHT have strengthened the organizations of the indigenous communities and their awareness andcapacities for the conservation of the community conserved forests. Due to the motivational campaign of the projects,the local authorities (Regional Council, District Councils, Upazila Parishads, Union Parishads), civil administration atdistrict and Upazila level, civil society organizations and community leaders of all three districts of CHT have become verysupportive to the Arannayk initiatives on conservation of the community conserved forests.

To materialize its vision, the Arannayk Foundation needs to scale up and diversify its program. It particularly needs toexpand its program on conservation of protected areas and to link its program with global and national climate changeinitiatives. It also needs to strengthen technical capacities of its project implementing entities and associated organizations.To respond to the above needs, the Foundation needs additional funds for which it needs to develop an effective fundraising strategy and to undertake various promotional measures. Arannayk Foundation’s program in 2010 will address theabove needs and challenges.

02 Arannak Foundation

ArannaykFoundation at aGlance

1. Background and OriginIn the backdrop of continuous destruction of forest resources in Bangladesh, the Bangladesh Tropical Forest ConservationFoundation, Arannayk Foundation, was set up on 26 July 2003, through an agreement between the Government of thePeople’s Republic of Bangladesh and the Government of the United States of America. This was done under the auspicesof the Debt Reduction Agreement signed on 12th September, 2000, by the two governments, through which Bangladeshagreed to be pursuant to the US Tropical Forest Conservation Act of 1998 in lieu of gaining reduction of certain debts that itowed to the United States. Arannayk Foundation is registered as a not-for-profit company limited by guarantee and nothaving a share capital under section 28 of the Bangladesh Companies Act 1994.

2. Vision and MissionTogether with its associated agencies and supported organizations, the Foundation envisions that the natural ecosystemand biodiversity resources of the forests in Bangladesh are maintained in a sustainable manner by responsible stakeholdersthrough collective efforts – providing access and benefits to local communities, national economy and the humankind atlarge in an equitable manner.

In regard to its own future, the vision of the Arannayk Foundation is to become:

a) the premier agency in creating partnership among the public and private sector organizations and institutions engagedin activities relating to forestry;

b) the leader for intervening between the private and public sector agencies to coordinate all forestry-sector activitiesfollowing a systematic method;

c) a top developer of models for poverty alleviation through forestry related activities; and d) financial support provider in the forestry sector.

The mission of Arannayk Foundation is to facilitate conservation, protection, restoration and sustainable use andmanagement of tropical forests in Bangladesh through awareness and capacity development of stakeholders for planningand implementing necessary policies, programs and projects.

The Foundation provides financial grants or other support to eligible entities for activities aimed at conserving, protecting,maintaining and/or restoring tropical forest and biodiversity assets of Bangladesh. The activities supported by the AF mayinclude:

a) establishment, restoration, protection and maintenance of protected areas and reserves;b) development and implementation of scientifically sound systems of natural resources management;c) training programs to increase scientific, technical and managerial capacities of individuals and organizations involved

in forest conservation;d) restoration, protection or sustainable use of diverse animal and plant species;e) research and identification of medicinal uses of tropical forest plants; and f) development of livelihoods of the individuals living in or near a tropical forest, in a manner consistent with the

protection of the forest.

The entities that are eligible to receive Arannayk grants are: non-governmental environmental, developmental, educationaland indigenous peoples’ organizations active in Bangladesh; scientific, academic and professional organizations related toforests; other appropriate forest-related entities active in the country, and, in exceptional circumstances, agencies of theGovernment of Bangladesh.


05Annual Report 2009

3. GovernanceThe apex body of the Foundation is its Board of Directors that consists of seven honorary Member-Directors. The Boardmembers include a representative of the US Government and another from the Government of Bangladesh; the rest fiveare selected from organizations of the following three categories: (a) environmental organizations, (b) community basedlocal development organizations and (c) scientific and academic institutions dealing with forestry.

The USAID Mission Director in Bangladesh and the Joint Secretary (Development), Ministry of Environment and Forests(MoEF) are the ex-officio members, as the representatives of the two Governments, in the Arannayk Foundation Board.The five non-governmental representatives are selected by the MoEF through an open solicitation process and inconsultation with the USAID Mission in Bangladesh for a term of three years with possibility of extension for a maximumof one more term. The Board members meet at least three times a year, and decide policies, plan and activities of theFoundation.

For effective management of the organization and its activities, the Board members constitute two Standing Committees:Program and Operations Standing Committee (POSC) – for development of programs and program implementation plans; andFinance Standing Committee (FSC) – for budgeting and investment-planning. AF makes prudent investments through fixeddeposits in leading private sector Banks.

The implementation of the decisions of the Board and other day-to-day activities of the Foundation are done by the AFSecretariat consisting of a small team of technical and financial management experts headed by an Executive Director –the latter being the Chief Executive Officer of the organization.

4. Grant-making ProcedureArannayk Foundation grants are given to eligible entities for implementation of projects within the broad program areasdetermined by the Foundation. AF solicits proposals from eligible entities through its website and advertisement innational dailies. The proposals are evaluated by a three-member team of external evaluators using a tool called PPET(Project Proposal Evaluation Tool). The institutional strengths of the project proponents whose proposals qualify (scoring60% and above) in the external evaluation are verified by the AF Secretariat through field visits and interviews with themanagement and key staff members of those organizations.

The competitive grant making procedure (CGMP), the project monitoring system and the automated financial reportingsystem developed and applied by the Arannayk Foundation has made the operations of the Foundation effective, efficientand transparent. The evaluation of the Foundation conducted by the TFCA Secretariat, Washington DC, in September2008, by engaging a team of independent consultants, headed by Dr. Kathleen Mikitin, appraised the grant makingprocedure, financial management, and the monitoring systems and tools of Arannayk Foundation as examples of bestpractices.


14 Arannayk Foundation

Arannayk Foundation Secretariat Staff

Sitting (from left to right): Md. Abedul Haque Chowdhury, Manager - Admin & Finance; Farid Uddin Ahmed,Executive Director and Mohd. Abdul Quddus, Senior Program Officer.

Standing (from left to right): A.K.M. Azad Chowdhury, Secretary; Md. Nuruzzaman Badal, Driver; Md. ShawkatHossain, Program Officer (M&E); Md. Abdul Mannan, Driver; and Komal Barua, Peon.


Progress inGrant Making

Although the Foundation was set up in 2003, its grant making activities started from 2006 as it took couple of years forpreparatory activities such as establishment of the office, management bodies (Board of Directors and StandingCommittees), grant making procedures and administrative and financial management systems and tools. During 2006-07,AF awarded 38 grants against seven projects. Two of those projects were completed in 2008 and 5 are still ongoing. Thetwo completed projects are: (a) Nursery development for regeneration of threatened tree species of Bangladesh, involving26 private nurseries (implementing entities) and backstopped by a professional expert (Professor of Forestry) and (b)Parent stock plantation of endangered tree species of Bangladesh in the Engineering Staff College Bangladesh (ESCB) atGazaria, Munsiganj implemented by an NGO, the Environmental Council Bangladesh (ECB).

On the other hand, one of the 3 implementing entities (OSAD) of an ongoing project titled ‘Pilot level community basedparticipatory herbal gardens’ project was terminated in 2008 due to financial mismanagement.

In 2008, Arannayk Foundation financed two special projects – one on conservation and restoration of genetic diversity (oftrees) in areas ravaged by the super cyclone, Sidr that occurred in October 2007 and another on conservation of twospecies of bamboo (Melocanna baccifera and Gigantochloa andamanica) in the Chittagong Hill Tract, groves of which diedthroughout the region due to gregarious flowering. The project on conservation and restoration of genetic diversity in theSidr-affected area, implemented by the Bangladesh Forest Research Institute (BFRI), was financed based on a request fromthe Ministry of Environment and Forests (MoEF). The project on conservation of bamboo in the CHT was proposed,and implemented through technical support of BFRI, by Juno Pawr – a NGO implementing an ongoing AF-sponsoredproject in the CHT. Both projects were completed within the year (2008).

In 2009, the AF launched 12 new projects (grants) while continuing to support 9 implementing entities for theimplementation of 5 ongoing projects initiated in 2006. The new projects include 5 forest co-management projects,each involving three types of institutions namely an NGO, the Forest Department and a Co-Management Councilconsisting of representatives from local communities, local government bodies, civil administration, Forest Departmentand other relevant line agencies working in the area. The other new projects include five indigenous community-basedforest conservation projects in the Chittagong Hill Tracts (CHT) and two community-based swamp forest conservationprojects in north-eastern Bangladesh. The new projects are of 3 – 4 years duration and their implementation begun inJune/July 2009.



Name of Projects LocationImplementing

Entity

Date ofCommence-

ment

ProjectDuration(Years)

Totalgrants inMillion

Tk.

1. Nursery development forregeneration of threatenedspecies

26 locations in 11 districts,covering main agro-ecologicalzones of Bangladesh

26 privatenurseries and 1local expert

Feb 2006 1.5 5.92

2. Parent stock plantation in ESCBcampus Munshiganj ECB Apr 2006 3.0 0.70

3. Pilot level community basedparticipatory herbal gardens

Rangamati Juno Pawr Nov 2006 8.0 5.00

Keshabpur, Jessore IDO Nov 2006 8.0 5.00

Banderban and Kapasia(Gazipur) OSAD Nov 2006 1.5 1.26

4. Recolonization and masspropagation of Civit (Swintoniafloribunda)

Chittagong IFESCU Nov 2006 5.0 3.00

5. Recolonization & masspropagation of Banspata(Podocarpus neriifolius)

Chittagong IFESCU Nov 2006 5.0 3.00

6. Coastal biodiversity conservationthrough creating AIG facilities

Paikgacha, Khulna CFSDConsortium Nov 2006 3.0 4.00

Kaliganaj, Satkhira Uttaran Nov 2006 4.0 4.00

7. Homestead agroforestry throughimproved management practices

Sitakund and MireresharaiUpazila of Chittagong Prottyashi Nov 2006 5.0 3.50

Patia and ChandanaishUpzaila of Chittagong CODEC May 2007 5.0 3.50

Tala, Satkhira Uttaran May 2007 5.0 3.50

8. Genetic diversity conservationand restoration Sidr-hit areas

Barguna, Jhalokhathi,Pirojpur and Bagerhatdistricts

BFRI Jan 2008 1.0 1.00

9. Conservation of bamboo inChittagong Hill Tracts

Rangamati, Khagrachari andBanderban hill districts

Juno Pawr withBFRI May 2008 0.2 0.48

10. Community-based Conservationof Forest Resources andEnhancing Rural Livelihood inRangamati of CHT

Kaptai, Rangamati Hill Flower Jun 2009 3 5.99

ARANNAYK GRANTS AWARDED DURING 2006 - 2009


Name of Projects LocationImplementing

Entity

Date ofCommence-

ment

ProjectDuration(Years)

Total grantsin Million

Tk.

11. Indigenous Community BasedSustainable Management of ChimbukHill Forest in Bandarban Hill District

Ruma,Banderban

HumanitarianFoundation Jun 2009 3 5.71

12. Community Based Forest ResourceManagement for SustainableDevelopment in Rowangchari,Banderban Hill District

Rowanchari,Banderban Tah Zing Dong Jun 2009 3 5.11

13. Community-based management of theItchari Community Reserve Forest,Khagrachari

KhagrachariSadar,Khagrachari

BIRAM Jun 2009 3 6.00

14. Restoration of Hilly Biodiversitythrough Community Based Bio-Resource Management at Dighinala,Khagrachari

Dighinala,Khagrachari Anando Jun 2009 3 5.99

15. Swamp Forest Restoration in HaorAreas of Shunamganj Dist.

Sunamgnj Sadarand Jamalganjupazila ofSunamganj

CNRS Jun 2009 3 5.90

16. Access to Food Security andAccelerated Livelihood towardsBiodiversity in Khaliajuri Upazila,Netrokona

Khaliajuri,Netrokona SUS Jun 2009 3 5.98

17. Inani Protected Forest Area (PFA) Co-management - NGO component

Ukhia, Cox'sBazar

SHED+FD+CMC Jun 2009 3 70.38

18. Restoration and Conservation ofBiodiversity in the Denuded Hills inSitakunda and Mirsharai, Chittagong -NGO component

Sitakunda andMirsharai upazilaof Chittagong

YPSA+FD+CMC Jun 2009 3 31.19

19. Restoration and Conservation ofBiodiversity in the Denuded Hills inBanskhali, Chittagong - NGOcomponent

Banskhali,Chittagong

Dhaka AhsaniaMission+FD+CMC

Jun 2009 3 17.21

20. Restoration and Conservation ofBiodiversity in Barind Dhamoirhat SalForest, Naogaon - NGO component

Dhamoirhat,Naogaon

Padakhep+FD+CMC Jun 2009 3 11.23

21. Restoration and Conservation ofBiodiversity in Singra Sal Forest,Dinajpur - NGO component

Birganj, Dinajpur RDRS+FD+CMC Jun 2009 3 13.04

Total Amount 227.59

CompletedProjects


1. Nursery Development for Regeneration of Threatened SpeciesIn order to establish sources of planting materials for the threatened indigenous species of trees in Bangladesh forests andhomesteads, AF provided small grants to 26 private nurseries in the districts of Cox’s Bazar, Chittagong, Sylhet, Gazipur,Mymensingh, Tangail, Rajshahi, Nawabganj, Naogaon, Jessore and Khulna. Each nursery was provided with Tk 175,000to raise 20,000 seedlings of indigenous species. A local expert (Professor of Forestry, Institute of Forestry andEnvironmental Sciences, Chittagong University) was engaged to provide technical support to the nursery owners. Throughthis program, more than 500,000 seedlings of about 150 species were produced in 2007. Out of the 150 species, 55indigenous species were selected for promotion. Nursery techniques of these 55 indigenous species have been publishedin the form of a manual for use by nursery owners. Copies of the manual have been distributed among relevantorganizations, including Forest Department and private nursery owners.

2. Establishment of a Quality Seed Source for Threatened Trees SpeciesThrough an MOU established with the Engineering Staff College of Bangladesh (ESCB), Arannayk Foundation provideda grant to a local NGO, the Environmental Council of Bangladesh (ECB), for the establishment of a parent stockplantation in the ESCB campus to serve as seed source for future plantations. ECB planted more than 2,000 seedlings of


20 species in the ESCB campus. The planting stocks were collected from nurseries supported by the Foundation. The grantwas completed bestowing the responsibility of taking aftercare of the planted saplings upon ESCB.

3. Genetic Diversity Conservation and Restoration in Sidr-Hit AreasA devastating cyclone, Sidr, destroyed millions of trees (along with other assets of people) in the coastal districts ofBarguna, Jhalokhathi, Pirojpur and Bagerhat in October 2007. Arannayk Foundation provided BFRI with a small grant (Tk1,000,000) to provide information and knowledge support to the farmers of the affected areas about ways to re-establishtheir plantations with best possible genetic materials. Through TV and newspapers, BFRI made repeated dissemination oftechnical advice to farmers regarding the immediate actions/care that the broken and the surviving trees needed andregarding re-establishment of plantations. It produced and widely distributed a poster on selection of appropriate speciesfor different planting sites in Sidr-hit areas and organized 8 training workshops on nursery development and plantingtechniques involving 210 participants. BFRI also trained 90 nursery owners and farmers in plus tree selection.

4. Conservation of Bamboo in Chittagong Hill Tracts Bamboos die once they flower (after producing seeds) and it happens at varying intervals (25 to 100 years) depending onthe species. The seeds of bamboo, being energy-rich food, invite rats and help them multiply enormously, which in turn


damages rice and all other grain crops of farmers causing famine among the tribal communities living in the hilly areas.This phenomenon is called ‘rat flood’. In the Chittagong Hill Tracts (CHT), flowering of Muli bamboo (Melocanna baccifera)and Kali bamboo (Gigantochloa andamanica) – the two main bamboo species of the region started in 2006 and took agregarious form in 2008. Under this circumstance, the Arannayk Foundation provided a small grant (Tk. 477,000) to JunoPawr in May 2008 to undertake a program of restoring the groves of the dieing bamboos with technical support from theBangladesh Forest Research Institute (BFRI).

With this small grant, Juno Pawr and BFRI conducted extensive awareness raising campaign (using poster and leaflets)among the people of CHT and trained more than 500 farmers in collection, storage and planting of the bamboo seeds.Juno Pawr collected 52,000 seeds of Muli bamboo and 5,000 seeds of Kali bamboo and distributed those among 540farmers and 50 school students. By June 2008, the participants of the project planted Muli bamboo in 15 ha of land, andprivate nursery owners started raising seedlings of Kali bamboo in their nurseries.

OngoingProjects


1. Community Based Herbal GardensWith the dual objective of conserving the biodiversity of medicinal plants in the natural forests and establishing themas a viable source of income generation for the poor people living in and around the forests, AF extended projectsupport (grants) to 3 NGOs namely Juno Pawr, IDO and OSAD.

Juno Pawr Foundation (JP) has been working with two groups of indigenous communities in two areas of Rangamatidistrict (Mubachari and Hazachara) in the Chittagong Hill Tracts. At each location, a group of 60 people (households)has established a community herbal garden on a 5.0 ha land. About 100 species of medicinal plants are being conservedin these two gardens. The project participants have also planted selected commercially demanded species of medicinalplants in their homesteads. Juno Pawr has been exploring marketing opportunities for the medicinal plants grown bythe project participants and has already established linkages between the project participants and some traders ofmedicinal plants who have started buying some of the existing medicinal plants from the homesteads of the projectparticipants. It has transferred a part of the grant (Tk 200,000) to the participant groups which they are using asrevolving fund for various income generating activities (fish culture, poultry rearing, goat rearing, handicrafts making).

On 19 November 2008, the Honorable Ambassador of the United States of America to Bangladesh, Mr. James F.Moriaty, visited the Juno Pawr implemented Community Herbal Garden project at Hazachara (Barkal Upazila),Rangamati. The Ambassador appreciated the activities of the project and encouraged the project participants tostrengthen their efforts.

IDO has been promoting commercial cultivation as well as homestead-based conservation of medicinal plants in 10villages in the Keshabpur Upazila of Jessore district – an area experiencing frequent flooding. Approximately 400beneficiary farmers have planted five selected species of medicinal plants (Bashok, Kalomegh, Ashwagandha,Shatamuli, Aloe vera). IDO has also established a nursery of medicinal plants in its own (institutional) land.


The project of OSAD, which was initiated in November 2006 at Thanchi, Banderban (CHT) and shifted to Kapasia,Gazipur six months later, had to be terminated in 2008 for financial mismanagement before it could make anysignificant physical progress.

2. Propagation and Conservation of Two Endangered Tree Species, Civit AndBanspataSince 2006, AF has been funding two separate projects at the Institute of Forestry and Environmental Sciences,Chittagong University (IFESCU) to identify the existing individuals and stands; to develop propagation techniques;and to establish some conservation gardens or seed orchards oftwo critically endangered tree species of the hill forests ofBangladesh namely Civit (Swintonia floribunda) and Banspata(Podocarpus nerifolius).

Civit is one of the tallest trees of the hill forests of Bangladesh.It is a soft-wood species and is used for making tea chests. It alsoprovides nesting ground for the globally endangered bird, White Winged Wood Duck (Asarcornis scutulata). On the other hand,Banspata is the only woody conifer species of Bangladeshforests. It is used as a pencil wood. The species is so criticallyendangered now that the IFESCU research team could locateonly about 105 trees in the forests of Chittagong andChittagong Hill Tracts and in different botanic gardens of thecountry.

IFESCU has successfully developed propagation techniques(sexual, clonal) for both the species and has established clonalorchards (source of planting materials) and conservation gardenfor both the species. Moreover, it has distributed 6,000 saplingsof Civit and 220 saplings of Banspata to the Forest Department and certain NGOs and other institutions. The latterorganizations have planted the saplings in some of the reserved forests, eco-parks and other institutional and privatelands of the region.

3. Coastal Biodiversity Conservation through Development of AIG FacilitiesDue to sea level rise, the vast coastal areas are increasingly affected by salt-water intrusion, resulting in loss of biodiversity,especially of trees, crops and aquatic resources upon which livelihood of local people are greatly dependent. To conservethe endangered species of flora and fauna of the coastal area near the Sunderbans, where 70% people are poor and areincreasingly compelled to exploit the biodiversity resources, especially Golpata (Nypa fruticans), Goran (Ceriops decandra) andKankra (Bruguiera gymnorrhiza) trees to cope with the adverse effects of ecological changes, Arannayk Foundation has beenfunding two projects since November 2006. The objectives of this project include a) creating community awareness onconserving existing biodiversity, b) organizing poor communities and improving their institutional capacities, c) improvingtechnical skills of the project participants and d) improving livelihood of the poor community members.

One of the projects is located at Paikgacha, Khulna and is implemented by a consortium of four NGOs (CFSD, BCAS,DEBTECH and Sushilan), led by CFSD. The other project is located at Kaliganj Upazila of SaTkhira district and isimplemented by a local NGO, Uttaran.

The CFSD consortium works with 250 participants in 20 groups. It has produced baseline floral and faunal inventories inthe project area, including priority species that are becoming locally extinct. The consortium has been conducting actionresearch activities for participatory conservation of the endangered plants and aquatic resources, developing alternative


income generation activities (poultry rearing,shrimp cultivation, small business, tailoring andhandicrafts making) for the poor and building localorganizational capacity to cope with the situation.Through the support of the project (training,planting materials), the participants have plantedabout 6,500 saplings, mostly of fruit trees (mango,guava, sofeda, kathbael, jujube, etc.) in theirhomesteads and about 2,500 saplings of twomangrove species, keora (Sonneratia apetala) and baen (Avicennia officinalis) on dikes of shrimp farms in 2008. The projectparticipants are raising group savings for the establishment of the group’s own credit facility for their income generatingactivities. They have established 10 rainwater harvest devices, one per group, for storing rainwater in the dry season.

Uttaran has been working with 40 groups (with an apex body) in Kaliganj Upazila of SaTkhira district involving 1000 farmfamilies, who planted 4,200 saplings of 26 different species (arjun, ata, jam, jamrul, etc.) in their homesteads and 2,000saplings of 3 mangrove species namely keora (90%), baen and goran on canal banks and dikes of shrimp farms by 2008.It has trained 300 fish fingerling collectors in fish fingerling and crab production and 60 marginal farmers in livestockproduction. It has established a revolving fund, with an initial amount of Tk 600,000 at the apex body of the participants’groups with a part of the Arannayk Foundation grant. Using this revolving fund, the apex body of the participant groupsgives modest amount of loans (Tk 1,000 – 5,000) to their deserving members for agricultural activities. These loans areinterest-free but the borrowers are required to plant at least 5 endangered plants in their own lands per Tk 1,000 borrowed.

4. Homestead Agroforestry through Improved Management PracticesTraditionally, the homestead forests in Bangladesh are highly bio-diverse. But due to over-exploitation, many associatedspecies are now endangered. Species like cane and patipata (also called murta), are particularly important for the poor as araw material for handicrafts. In response, grants have been awarded to two NGOs (Prottyashi and CODEC) in Chttagongand one NGO (Uttaran) in Satkhira with the objectives of conserving and restoring homestead biodiversity while creatingalternative income generation facilities for the poor. Prottyashi is working in Sitakunda and Mirsarai Upazila and CODECin Patiya and Chandanaish Upazila of Chittagong district, while Uttaran is working in the Tala Upazila of Stakhira district.To varying degrees, each NGO is working on community organization, tree planting (both endangered and commercialspecies) on homesteads, financing of micro-enterprises, establishment of germplasm banks and promotion of alternativeincome generating activities (e.g. bee-keeping, fish culture, poultry and livestock rearing, etc.).

Prottyashi follows a village-wide approach inawareness and capacity building of farmers fortree planting and other agroforsetry activities inhomesteads. It organized special tree fairs in theproject villages on the endangered species oftrees and subsequently distributed over 2000seedlings of endangered trees among 272households for planting in their homestead andmarginal land. It has established a revolving loanfund (using a part of the grant) for the projectbeneficiaries with an initial amount of Tk200,000. One group of participants borrowed Tk55,000 from this revolving fund and purchased arice threshing machine to provide services tolocal farmers. Within six months, the groupearned Tk 16,000 from the threshing machine


(rental), which engaged two poor people who were totally dependent on collection of fuel-wood, poles and bamboosfrom the adjacent forests.

CODEC is working with 400 households in 14 villages adjacent to public forest lands (degraded), facilitating theirtechnical and organizational capacity development for local biodiversity conservation and improvement of agroforestryproduction in the homesteads. In 2008, the project participants planted 45,000 saplings of 75 species of trees (fruit,timber). As fuel-wood collection from the forests by the local communities is a major factor affecting natural regenerationin the forests, CODEC has initiated awareness campaign and training of the project participants on use of improvedcook-stove.

Uttaran is working with 1000 households of Tala Upazila in Satkhira district. In 2008, it distributed saplings of 36endangered species of fruit and timber trees among the project participants and organized several exchange visits andtraining courses on alternative livelihood activities, namely fresh water fish culture, beef fattening, goat rearing, dairying,nursery, intensive vegetable cultivation in homesteads, vegetable cultivation on dikes, koel (a bird) rearing and paddycultivation. Forty participants have started practicing one or more of these income generating activities. Uttaran establisheda revolving loan fund at the apex body of the participant groups, with an initial amount of Tk 200,000 using a part of theAF grant) and, within the year, 40 members of 19 groups received the interest free loan for improving their livelihoodsthe borrowers planted at least 5 saplings of endangered species per Tk 1000 of the borrowed money.

5. Community-based Conservation of Forest Resources in the Chittagong HillTractsThe Chittagong Hill Tracts (CHT), which has a total area of 13,295 sq. km. (about 10 % of Bangladesh), is characterizedby hilly terrain and once covered by dense and bio-diverse tropical evergreen and semi-evergreen forests. The region is thehome of 13 tribes of indigenous communities, who all are traditionally dependent on the forests, especially on shiftingcultivation, for their livelihoods. For many centuries, the indigenous communities have managed the forests in a sustainablemanner by keeping the rotation of their shifting cultivation long enough (18-20 years). But, in the last 3-4 decades,increased population pressure and expansion of road networks and markets, most of the natural (old-growth) forests ofthe region have been lost and have been brought under short-rotation shifting cultivation, crop-agriculture and plantations(teak, rubber, fruit trees). Thus the biodiversity of the region, both flora and fauna, have depleted badly. Aside fromdeforestation and land-use change, now boulders are removed by people from gullies, creeks and canal beds, which are soldto traders and used for making stone chips for construction works. This practice aggravates soil erosion and landslide andreduces water retention capacity of the soil - the latter causing drying out of water streams in the dry season. The landsof the CHT, except those that have been reserved by the Forest Department, are managed by the Civil Administration ofthe district and are leased out to people (indigenous as well as non-indigenous) for teak plantation and other farmingactivities. Teak plantation and other farming activities (cultivation of banana, pineapple, turmeric, ginger, etc. in steepslope) also cause massive soil erosion.

Amid this general scenario of the CHT, some of the indigenous communities still conserve some patches of naturalforests as common property, especially on the parts of the hills from where water streams originate. They do so mainlyfor sustained flow of water in the streams but they also get timber, bamboo and other minor forest products from suchforests for household use. A management committee of the respective community, generally headed by the Headman ofthe Mouza or the Karbari (Village Head) of the village, manages such community conserved areas (CCA), which are calledin different names by different communities such as Village Common Forest (VCF), Community Reserve Forest (CRF),Mouza Ban (Mouza forest) or Para Ban (Village forest). The community conserved forests act as repository of thebiodiversity of the respective areas (although many species of plants and wildlife have already become extinct). Aside fromthe CCAs, some of the khas lands (state owned land) and private lands remain fallow and develop into scrub forests, whichalso harbor many native species of plants and provide shelter to wildlife.

In May 2009, Arannayk Foundation awarded five grants of about Tk 6.0 million each to five NGOs for the implementationof five community-based forest conservation projects in different areas of the Chittagong Hill Tract. The duration of eachproject is 3 years and the implementation of the projects has begun in June 2009.

The implementing entities (NGOs) have conducted baseline survey of bio-diversity in the target forests and socio-economic condition of the concerned communities and have mobilized the target beneficiaries to undertake necessarymeasures for biodiversity conservation and livelihood development. They have also undertaken various steps to raiseawareness of, and mobilize support and cooperation from, local authorities, relevant government agencies, local elites andreligious and community leaders for the community based conservation of local forest and biodiversity resources. TheNGOs have also been providing knowledge and skill development trainings on biodiversity conservation, alternativeincome generating activities and institutional development to the project participants. To help the communityorganizations develop a revolving fund to provide credit support to their members for alternative income generatingactivities, the NGOs have given them a part of their project money as grant. The community organizations are also raisingfunds through monthly savings by their members.

5.1. Community-bbased Conservation of Forest Resources and Enhancing Rural Livelihood in Rangamati of CHTThis project, implemented by the Hill Flower, is located in Wagga Union of Kaptai Upazila of Rangamati district and itcovers five villages. Hill Flower has conducted massive awareness campaign on conservation of biodiversity and othernatural resources of the project area, and ofRangamati districts at large, by organizing publicmeetings at the project site and at the district headquarter and by disseminating messages throughposters, leaflets and billboards. It has involved localauthorities, relevant government departments andreligious leaders (monks) in its awareness campaign.It has organized the forest dependent poor peopleof the project area (105 families) into four groupsand has undertaken various steps to improve theirlivelihoods and natural resource managementpractices. It has provided each group (association)with a revolving fund of Tk 100,000 with training onfinancial management as well as technical training onmushroom cultivation, horticulture, bee keeping andcultivation and post harvest processing of turmericand ginger. It has also distributed more than fourthousand saplings of fruit and timber trees (guava,mango, litchi, mahogany, garjan, etc.) among theproject participants for planting around their homesteads. The people of the project area now well motivated to conservethe natural resources of the project area and have already stopped removing stones from the hill slopes and creeks.

5.2. Indigenous Community Based Sustainable Management of Chimbuk Hill Forest in Bandarban Hill DistrictThis project, implemented by the HumanitarianFoundation, includes two villages within theChimbuk Range of Banderban district – Korangparaand Kaprupara which are in close proximity to eachother although they fall under two different Upazila– Ruma and Lama, respectively. At each village, thereis a Village Common Forest (VCF) and the mainoccupation of the community members is shiftingcultivation, which is done in the lands surroundingthe community conserved forests.


The biodiversity baseline survey in the two VCFs revealed that there are now 40 species of trees, while 19 other speciesof trees have been lost. Due to continuous expansion of shifting cultivation in the area, the VCFs are under increasingthreat of further degradation and extinction of species. In this context, Humanitarian Foundation organized a number ofmeetings with the communities of the project area and with other stakeholders (District and Upazila-level governmentofficials, local government bodies, Mouza and village heads, religious leaders, etc.) to raise their awareness on biodiversityconservation issues. Bill boards containing message of natural resource conservation needs and actions have been erectedin strategic locations.

Humanitarian Foundation has disbursed Tk 150,000 to the community bank account as revolving fund and has providedtraining on organizational development, leadership and fund management (including aspects of group saving and credit)to the VCF leaders. From this revolving fund, 50 families have taken interest free loans @ Tk 3,000 per family foralternative income generating activities namely cultivation of cucumber, turmeric and ginger. In monthly meetings, whichare held regularly, the project staffs of the Humanitarian Foundation discuss technical (biodiversity conservation, IGA) andinstitutional issues with the members of the VCF communities. Humanitarian Foundation has developed a flip chart onvarious aspects of forest and biodiversity conservation in the local context and they use it in the group meetings as anawareness raising-cum-training tool. The project staff also document indigenous knowledge and best practices onconservation of forest resources and share the same in the community meetings.

5.3. Community Based conservation of Village Common Forests in Rowangchari, Bandarban Hill districtThis project, implemented by Tah Zing Dong, includes three VCFs in Rowangchari Upazila of Bandarban Hill districtnamely Rowangchari Para VCF (100 ha), Tulachari Para VCF (14 ha) and Ronin Para VCF (120 ha). The baseline survey

conducted by Tah Zing Dong revealed that 19species of native trees have been lost from theVCFs. To raise awareness of the VCF communitiesand general mass of the project area about theimportance of conserving the VCFs and thebiodiversity resources therein, Tah Zing Dong hasconducted intensive awareness campaign in theproject area and at Rownagchari Upazila andBanderban district towns by organizing stakeholdermeetings and by disseminating messages throughposters, leaflets and billboards. To supportalternative livelihood opportunity development, TahZing Dong has transferred Tk 330,000 to thecommunities’ bank accounts to be used as arevolving fund by the VCF communities. Tah ZingDong has already provided training on bamboohandicrafts making to the interested participants. Ithas also planned more training activities for theproject participants as they have identified some

other IGA activities such as nursery business and cultivation of zinger, banana and papaya. The community has alreadyutilized Tk 150,000 for agroforestry plantation and Tk 100,000 for nursery establishment out of the revolving fund.

5.4. Itchari Community Reserve ForestConservation Project, KhagrachariThis project, implemented by BIRAM, is locatedin Panchari Union of Khagrachari Sadar Upazilaof Khagrachari district. The Itchari CommunityReserve Forest (CRF) has an area of 67 ha andbelongs to a community of 168 households in twovillages, Itchari Vitor Para and Itchari MadhyaPara.


The baseline survey of the CRF revealed that there are 37 species of trees in the CRF while 10 indigenous species of theforest have been lost. Although there is a management committee for it, encroachment and illicit felling of trees have takenplace in the CRF. Through technical assistance and input support from the project, the project participants have developeda management plan for the CRF and have planted about 1800 saplings of indigenous species in the gaps of the CRF. Thebeneficiaries have identified homestead gardening, vegetable seeds production, bee keeping, mushroom production, fishculture, and nursery business as potential IGAs. The project will support them with revolving loan fund for incomeenhancement through implementing IGA activities.

5.5. Restoration of Hilly Biodiversity through Community Based Bio-RResource Management at Dighinala, KhagrachariThis project, implemented by Anando, includes two villages, Ghona Para and Bhoirofa Bridge Para, under the BoroMerung Mouza of Dighinala Upazila of Khagrachari district, which is a resettlement area where the hills and forests arehighly degraded due to shifting cultivation. The baseline survey of the project site revealed that there are 45 species oftress in the homesteads and fallow or jhum cultivated hills while 16 native tree species have been lost.

There are 31 households in the two villages (14 inGhona Para, 17 in Bhoirofa Bridge Para) and theyown a total of 41 ha of cultivable hilly land. Eachfamily also has a homestead of 0.1 ha. Anando hasorganized the households of the two villages intotwo groups and have provided organizationaldevelopment training and accompaniment supportto help them develop into sustainable communitybased organizations. It has also provided skilldevelopment training on several technologies forhomestead-based production activities namelyestablishment of multi-tier orchard, boundaryplanting, house cleave planting, vermi-compostproduction, cow rearing, goat rearing, nurserybusiness, grafting of fruit trees, vegetable cultivationand bee keeping. In addition, it has established amulti-tier orchard, a model of boundary planting(containing a combination of tall-growing trees,dwarf fruit trees and pineapple), compost pit, housecleave plating (papaya and chili) in every homestead of the two villages. It has distributed 16,200 saplings of various fruitand timber trees among the project participants for enrichment planting in their cultivable hills.

To raise peoples’ awareness in forest and biodiversity conservation, Anando organized several community meetings,stakeholders’ workshop at Union and Upazila level and disseminated messages through posters, leaflets and billboards.

6. Restoration and Conservation of Swamp Forests in the Haor Areas ofNortheast BangladeshThe haor basins in the north-east of Bangladesh that extend over an area of 0.4 - 2.5 million ha in the districts of Sylhet,Sunamaganj, Habiganj, Moulovibazar, Netrokona and Kshoreganj is an internationally important wetland ecosystem,especially as an extensive habitat of waterfowls. The lion share of freshwater fish supply in Bangladesh comes from thishaor area. The haor ecosystem contains patches of freshwater swamp forests scattered throughout the region. Hijal(Barringtonia acutangula) and Koroch (Ponogamia pinnata) trees are the flagship species of the swamp forests but they alsocontain a number of other species namely Bhui Dumur (Ficus heterophyllus), Nol (Arundo donax), Khagra (Pharagmites karka),Ban Golap (Rosa involucratia) and Barun (Crataeva nurvala). The swamp forests provide a number of important ecosystemservices to the people of the region – they supply fuel wood, act as breeding ground for fishes and protect homesteadsfrom erosion caused by wave actions. But due to unsustainable exploitation of fuel wood and land conversion forexpansion of human settlements and rice fields, most of the swamp forests have been lost or highly degraded.


In May 2009, Arannayk Foundation awarded two grants for a period of three years to two NGOs (CNRS, SUS) forundertaking two projects on community-based restoration and conservation of swamp projects – one in Sunamganj andanother in Netrokona district and the implementation of the projects commenced from June 2009.

6.1. Swamp Forest Restoration in Haor Areas of Sunamganj DistrictCNRS has been working on restoration of two highly degraded swamp forests: Rahimapur Bagh (43 ha) in JamalganjUpazila and Gobindapur Bagh (22 ha) in Sunamganj Sadar Upazila of Sunamganj district. CNRS organized a number ofcommunity meetings to raise peoples’ awareness about the needfor restoring and conserving the swamp forests. It alsoorganized meetings with the Upazila and district authorities tomobilize their support and cooperation to the community-based restoration and conservation of the targeted swampforests. Consequently, the Deputy Commissioner ofSunamganj approved a 10-year lease of the two swamp forestlands to the local communities organized by CNRS. The localcommunities developed a sustainable management plan foreach forest and they planted 15,000 Hijal and Koroch trees inRahimapur Bagh and 10,000 in Gobindapur Bagh, about 85%of which survived at the end of the year (2009). To developinstitutional capacity of the local communities, CNRSorganized training on organizational development andmanagement for the latter.

6.2. Access to Food Security and Accelerated Livelihood towards Biodiversity Conservation (AFAL) in Khaliajuri,NetrokonaSUS has been working in four villages (Lakshmiur, Rasulpur, Kristapur and Ichapur) of Khaliajuri upazila of Netrokonadistrict, involving 249 households as direct beneficiaries. The project participants have established 4 km strip plantationsalong the boundary of the homesteads with 9,000 Koroch and 1,400 Hijal trees plants and 8 small groves (0.12 ha) plantedwith 366 Hijal/Koroch trees in each inside the haor basins to serve as resting place for birds and breeding ground forfishes. About 95% of the planted saplings survived at the end of the year. The participants’ group in each village hasstarted developing a revolving fund through a monthly deposit scheme of the members for investing in income generatingactivities. Through PRA exercise, the project participants have identified prospective income generating activities fordifferent seasons: (a) cow rearing, beef fattening, dry fish business, vegetable production and rice cultivation in dry season;(b) boat purchase, mobile rice mill on boat, ferry business with boat, duck rearing and fishing net marketing in rainy seasonand (c) plant nursery and petty business for round the year.

7. AF-FD Collaborative Projects on Co-Management of ForestsBased on a memorandum of understanding (MOU) established in 2006 between Arannayk Foundation and ForestDepartment (FD), the two organizations jointly planned five projects on participatory conservation and restoration ofbiodiversity in a proposed protected forest area (Inani, Cox’s Bazar) and four reserved forest areas that need restorationand conservation on a priority basis.

The prime objective of each of these projects is to establish a co-management system for the forest involving the localcommunities, the Civil Administration, the Forest Department, relevant other line agencies and the civil society (followingthe co-management model developed by the USAID-supported Nishorgo Support Project) to restore and conserve theforest ecosystem and to enhance alternative livelihood opportunities for the forest dependent poor people of the projectarea. Each project involves three implementing entities: the Forest Department, an NGO and a forest Co-managementCouncil (CMC) involving the Forest Department, forest user groups, local leaders and relevant government officials of therespective Upazila. The roles of the NGOs include awareness campaign; identification, group formation andorganizational development of forest dependent people; stakeholder mobilization for CMC formation; and livelihooddevelopment of the forest dependent communities through skill development training in alternative income generatingactivities (AIGA) including establishment of social forestry plantation in the buffer zones of the conservation areas.


All the projects are of three years duration except the Inani project which is for four years. The Forest Department is inthe process of getting their component approved by the line ministry. The NGOs have started organizing the communitiesand build up their organizational and technical capacities from July 2009.

7.1. Inani Protected Forest Area (PFA) Co-mmanagement ProjectThe NGO component of this project is implemented by the Society for Health Extension & Development (SHED). Theproject area covers part of Inani and Ukhia ranges including 7,000 ha natural tropical forests planned to be declared asPFA plus 3,000 ha of surrounding Reserved Forests.The area is a part of a natural habitat of Asianelephants adjoining the Teknaf Game Reserve. Itstill contains some old growth forests but its greaterpart is highly degraded due to illicit felling of treesby the poor people living in and around the forest.

SHED has organized people of 14 villages aroundthe Inani PFA for participatory conservation of theforest. At each village, it has organized the mostvulnerable forest dependent people (50 – 70) into agroup called Village Forest Dependent Group(VFDG) to provide technical and financial supportfor alternative income generating activities and aVillage Forest Conservation Forum (VFCF)involving the village leaders (including religious leaders) as well as representatives of the VFDG. SHED has shared theconcept of CMC and been maintaining liaison with the key stakeholders (Forest Department, Upazila Council, UnionCouncil) to form a CMC for the Inani PFA as soon as the Forest Department completes its project approval process. Onthe other hand, the VFCFs are preparing to form an apex body (Peoples Forum) at the PFA level to take part in, andcooperate with, the Co-management Council and Co-management Committee to be formed for the Inani PFA.

To promote income of the VFDG members from alternative sources, SHED has identified the potential options throughPRA exercises. For homestead vegetable cultivation, SHED has linked the farmers with the renowned seed company, LalTeer Seeds Ltd., which has supplied seeds of okra, pumpkin, bitter gourd, cucumber, red amaranth and beans to thefarmers. Training on homestead vegetable cultivation techniques has been given to the women members of the beneficiarygroups. It organized discussion meetings with local religious leaders (Imams) to make people aware about the need forconservation of Inani PFA and subsequently the religious leaders have taken initiatives to disseminate this message duringthe Friday (jumma) prayer in mosques.

7.2. Restoration and Conservation of Biodiversity in the Denuded Hills in Sitakunda and Mirsarai, ChittagongThis project covers 3,773 ha of denuded hills in Baraiyadhala (Sitakunda) and Mirsarai Ranges under Chittagong NorthForest Division. The implementing entity, YPSA, is working with 496 poor forest dependent families in 15 villagessurrounding the targeted forests, organizing them into 15 forest user groups (FUG). To reduce dependence of the projectparticipants on the forests (bamboo, fuel wood, sun grass, broom grass), YPSA is exploring alternative income generatingactivities for them. With training and supply of quality seeds mobilized by YPSA from the reputed seed company, Lal TeerSeed Ltd., the project participants have started cultivating various vegetables in their homesteads. The FUGs have startedraising group savings fund to support IGA activities of the members.

With a plan to establish a Village (Forest) Conservation Committee (VCC) in each village, YPSA established VCCs in eightvillages in 2009 and also initiated the process in the remaining villages. The members of a VCC include the Chairman ora Member of the Union Parishad, teachers, imam (religious leader), other community leaders and representatives of forestuser groups (FUG). The role of the VCC is to oversee natural resource utilization and management by the communitymembers and to plan and implement necessary policies and activities for participatory conservation and restoration of thelocal forest and biodiversity resources. YPSA also conducted various awareness raising activities such as communitymeetings, observance of internationally celebrated days of special significance for environmental conservation (e.g., WorldWater Day) through rally, seminar, etc.


7.3. Restoration and Conservation of Biodiversity in the Denuded Hills in Banskhali, ChittagongDhaka Ahsania Mission (DAM) is implementing this project in Sadahanpur Forest Beat (under Kalipur Range) andsurrounding villages in Banskhali Upazila of Chittagong district. The total area of Shadhanpur Forest Beat is 841 ha, of

which a 190 ha denuded block has been selected forrestoration intervention while a co-management systemshall be established for the entire Beat. DAM hasselected 780 poor forest dependent households fromthree villages (Boilgaon, Banigram, Sadhanpur) aroundSadhanpur Forest Beat and has organized them into 26groups (11 living inside and 15 outside the forest area)for livelihood development program. Throughparticipatory analysis in group meetings, the FUGmembers have identified a number of potentialalternative income generating activities (AIGA) andsome of them have already launched some of theAIGAs viz. nursery business, sewing, beef fattening,milk-cow rearing, mat making, pottery and popped riceproduction. In the same way, they have also developeda plan for homestead plantation development.Moreover, DAM has started promoting improved(energy efficient) cook-stoves among the project

participants. To facilitate the CMC formation process, DAM organized a stakeholder consultation meeting with the UPChairman and Members, local elites and the FUG leaders. A baseline survey on 900 households has been completed tounderstand the scoio-economic and existing biodiversity status of project area.

7.4. Restoration and Conservation of Biodiversity in Barind Dhamoirhat Sal Forest, NaogaonThis project aims to conserve the biodiversity of the Sal (Shorea robusta) forest at the Dhamoirhat Beat of Paikbanda Rangein Naogaon district by establishing a co-management system for the forest. The total area of Dhamurhat Beat is 1,260 ha butmost of it is now encroached and denuded. The project aims to conserve the still remaining 174 ha of well-stocked forestand to bring another 80 ha of encroached forest land under participatory agro-forestry plantation. The implementation ofthe project by a national NGO, named Padakhep Manabik Unnyan Sangstha (Padakhep), started in September 2009.Padakhep identified 2,266 forest dependent families in 13 villages surrounding the targeted forest and organized them into13 groups for conducting participatory forest conservation and livelihood development activities with them.

Padakhep has completed a baseline survey on the biodiversity and socio-economic conditions of the project area. Itorganized awareness raising meetings with different stakeholders to promote participatory conservation of theDhamoirhat Sal Forest and facilitated the formation of Community Patrolling Groups that are now protecting the forestsfrom illicit felling and removal of leaf litters from the forests during seeding season.

7.5. Restoration and Conservation of Biodiversity in Singra Sal Forest, DinajpurThe target area of this project is the Singra Forest Beat (170 ha) in Birganj Upazila of Dinajpur district. The implementingentity for the NGO component of the project, RDRS, has identified 1,815 forest dependent households in six villagessurrounding the targeted forest and has organizedthem into eight groups (FUG). The FUGs sit inregular monthly meetings and have startedcollecting monthly savings from the participantsto develop a revolving fund to invest in small scalebusinesses. RDRS has completed a baseline surveyof the biodiversity resources of the project area(forest, homesteads) and socio-economicconditions of the forest dependent communities.

Impacts


Arannayk Foundation’s grant making operations startedonly from late 2006. Nevertheless, within this short periodof time, the activities of the organization have createdsignificant impacts toward reversing the trend of rapid lossof biodiversity from the forests and homesteads ofBangladesh.

The 26 private nurseries that started producing plantingmaterials of endangered indigenous species of trees in 2007through Arannayk support are still producing and selling thesame and, thus, have become a source of planting materialsof such species to concerned individuals and organizations.The awareness campaign made by the Arannayk Foundationsponsored projects on homestead agroforestry and coastalbiodiversity conservation have created demands for thosespecies. On the other hand, by identifying the remainingtrees, developing propagation techniques, establishing seedorchards and clonal hedges and distributing plantingmaterials to different organizations, IFESCU has saved twoendangered native species of the hill forests of Bangladesh(Civil and Banspata) from extinction.

The revolving fund given to the networking bodies of theproject beneficiaries and the development of theirmanagement capacities have created access of the poorproject participants to small, and generally interest-free,loans for undertaking alternative income generationopportunities. In homestead agroforestry and coastalbiodiversity projects, there are numerous examples that thepoor project participants, women in most cases, have beenable to earn an extra income of Tk 1,000 – 1,500 per monthusing a loan of Tk 2,000 – Tk 5,000 in a few months time.The most common income generating activities undertakenby the project participants include vegetable cultivation in

homesteads, cultivation of rice and other crops in leased land, cattle rearing, goat rearing, poultry rearing, fishcultivation, crab fattening, handicrafts production and small trading. The rate of repayment of the revolving loan isabove 95%. The revolving fund has also strengthened group cohesion towards sustainable institutional developmentof the poor target beneficiaries. Moreover, it is contributing to conservation of endangered native species of treesas the borrowers need to plant at least five endangered native trees in their own lands for every Tk 1,000 borrowedas a conditionality of the loan from the revolving fund.

The five projects in the Chittagong Hill Tracts have strengthened the organizations of the indigenous communitiesand their awareness and capacities for the conservation of the community conserved forests. Due to the motivationalcampaign of the projects, the local authorities (Regional Council, District Councils, Upazila Parishads, UnionParishads), civil administration at district and Upazila level, civil society organizations and community leaders of allthree districts of the Chittagong Hill Tracts have become very supportive to the Arannayk initiatives on conservationof the community conserved forests in the CHT. It is noteworthy that removal of stones (boulders) from hill slopesand stream beds, which was a serious threat to soil and water conservation in one of the project sites in theChittagong Hill Tracts (Waggachara, Kaptai, Rangamati), has been totally stopped due to the community awarenessbuilding activities of the project.

Review ofArannayk'sOperations AndStrategic Plan


Evaluation Mission, 2008 An independent evaluation of the AF and the Tropical Forest Conservation Fund was carried out in late 2008 by the TFCASecretariat, Washington DC. The evaluation, made by a team of consultants headed by Dr. Kathleen Mikitin, focused onwhether the AF’s governance structures, operating framework and business practices would enable the Foundation toachieve its objective of tropical forest conservation. The evaluators assessed the grant making procedures and financialmanagement system of the Arannayk Foundation as excellent. They, however, recommended certain actions to make thegovernance and operations of the Foundation more effective. The key recommendations were:

a. Amend the Articles of Association to (a) introduce staggered terms for the nongovernmental Board members; (b)include legitimate causes other than malfeasance for removing a Director; and (c) develop detailed Board proceduresbeyond the Articles of Association to clarify the practical modalities of their implementation.

b. While forming a new Board of Directors, ensure that one of its members has financial managementexpertise.Prepare a written investment policy and engage a Fiscal Agent or alternatively an investment adviser toreview risks and guide investment decisions.

c. Prepare and adopt an overarching Strategic Plan along with a corresponding Financial Plan and develop a fundraising strategy in line with the Strategic Plan. Create a Standing Committee dedicated to fund-raising and/orempower the Executive Director by d.

d. delegating fundraising responsibilities to him.e. Prepare a communications strategy to market Arannayk’s image, attract new partners and support fundraising

efforts within and outside of Bangladesh.

Strategy Review Mission, 2009The AF’s first Strategic Plan was prepared in 2002 at about the same time as the National Biodiversity Strategy and ActionPlan (NBSAP) and reflecting the same priorities. AF Secretariat updated the strategic plan for 2010 - 2015 incorporatingcertain new program areas viz., swamp forests and climate change response activities. The USAID BangladeshEnvironment Sector Assessment and Strategic Analysis Mission 2009 reviewed the draft of the updated Strategic Plan ofthe AF and assessed it to remain consistent with the NBSAP and more clearly tied to climate change mitigation andadaptation. The Team, however, recommended the following priority rankings for the different program areas proposedin the AF Secretariat:High Priority:

Conservation of endangered flora and faunaCommunity based conservation of protected areasConservation in degraded forestsCommunity based forest conservation in the CHTConservation of coastal and mangrove systemsConservation of inland wetland forestsMonitoring and documentationPublic awareness

Medium priority:Conservation in village forests and homesteadsEmergency response to natural disaster induced damage to biodiversity.Human resources development

Low priority:Community based conservation of medicinal plants

For making AF more effective in the short-term, the Team also suggested the following strategies/actions:Be more flexible to allow needs-based projects and a greater diversity of small grants, including small grants to begiven to individual researchers for not only biodiversity issues but also social research relevant to conservation.Provide support to research and academic institutions for action research and development regarding identification,restoration and conservation of endangered flora and fauna in Bangladesh.Provide a forum for policy dialogue and promote networking among participating communities for sharing of bestpractices among participants.Strengthen efforts for dissemination of information about the Foundation in order to raise its profile.

ChallengesandPlans for 2010


To materialize its vision, the Arannayk Foundation needs to scale up and diversify its program. According to its strategicplan, it particularly needs to expand its program on protected areas. Moreover, it should also align its program (forest andbiodiversity conservation) with global and national climate change initiatives, especially to take the advantages of the CDMand REDD facilities. The Foundation needs to strengthen collaboration with the USAID-funded IPAC project of theForest Department for the above purposes. It also needs to strengthen it efforts for the technical capacity development ofthe staff of its project implementing entities and associated organizations. To scale up and sustain its program, theFoundation will need to mobilize additional funds. As such the Foundation has to develop an effective fund raising strategyand to undertake various promotional measures.

In the above context, the Arannayk Foundation has planned to undertake the following projects in 2010:a. Biodiversity monitoring in three selected protected forest areas in collaboration with IPACb. Assessment of current status and annual change in carbon stock in selected protected forest areas in collaboration

with IPACc. Improvement of livelihood of forest user groups in the co-managed protected forest areas in collaboration with IPACd. A package of communication interventions to promote fundraising and to create mass awareness in forest and

biodiversity conservatione. Stakeholders’ capacity building for improved planning and implementation of forest and biodiversity conservation

projects through training and study visit.

Finance


Arannayk Foundation follows the International Accounting Standards (IAS) as well as Bangladesh Accounting Standards(BAS) for the financial management within a strong internal control framework. The financial statements are prepared inaccordance with international reporting standard that strives for excellence and transparency in financial reporting. All thefinancial and human resources information of the foundation is managed through a web based Enterprise ResourcePlanning (ERP) system at different cost centers. It helps in improving the program efficiency, enhancing managementdecision-making capabilities, and promoting transparency and accountability.

As part of the monitoring and internal control mechanism all the implementing entities of the projects funded by theArannayk Foundation are equipped with a simple Grant Management Software (GMS). The GMS keeps track of all thegrants disbursed by the foundation and expenditure made by the implementing entities with quarterly budgetary control.

So far Arannayk Foundation has received Tk 400 million as Tropical Forest Conservation Fund from the US Governmentand approved grants amounting to Tk 242 million for implementing its programs. The total amount of grants disbursedto the implementing entities by the Foundation is Tk 55.52 million, out of which Tk 24.5 million has been disbursed in2009.

The summary of the auditor’s report on the financial status the Foundation for the fiscal year 2008-09 is presented below.

INDEPENDENT AUDITOR'S REPORT

We have audited the accompanying Balance Sheet of Arannayk Foundation as of June 30, 2009 and the relatedIncome and Expenditure Account and Cash Flows Statement for the year then ended. The preparation ofthese financial statements is the responsibility of management. Our responsibility is to express an independentopinion on these financial statements based on our audit.

We conducted our audit in accordance with Bangladesh Standards on Auditing (BSA). Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining on a test basis, evidence supporting the amountsand disclosures in the financial statements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overall financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements prepared in accordance with Bangladesh Accounting Standards (BAS)give a true and fair view of the state of the organization's affairs as of June 30, 2009 and the results of itsoperations for the year then ended.

(A. WAHAB & CO.)CHARTERED ACCOUNTANTS


Particulars Notes 30-06-2009 30-06-2008

Assets:

Fixed and Intangible Assets Sch. A/1 1,487,329.00 2,406,299.00

(At cost less Depreciation)

Current Assets: 436,694,633.00 380,928,824.00

Cash and Cash Equivalent 4.00 423,117,155.00 371,948,939.00

Stock in Hand 5.00 31,599.00 24,954.00

Advances & Prepayments 6.00 13,545,879.00 8,954,931.00

Total Assets: 438,181,962.00 383,335,123.00

Fund:

Tropical Forest Conservation Fund 7.00 435,529,879.00 380,995,372.00

Current Liabilities: 2,652,083.00 2,339,751.00

Provision for Expenses - 564,645.00

Accounts Payable 8.00 779,794.00 600,758.00

Accumulated Staff Benefits 9.00 1,872,289.00 1,174,348.00

Total Equity & Liabilities 438,181,962.00 383,335,123.00

ARANNAYK FOUNDATIONBALANCE SHEET AS AT JUNE 30, 2009

(A. WAHAB & CO. ) CHARTERED ACCOUNTANTS



Particulars Notes 30-06-2009 30-06-2008

Income:

Income from Investment - -

Total Income: - -

Expenditure

Core Expenses 9,525,828.00 8,619,309.00

Personnel Expenses 10.00 6,827,982.00 5,615,906.00

Operational Expenses 11.00 2,697,846.00 3,003,403.00

Program Expenses 14,502,277.00 12,157,654.00

Grant Awards 12.00 13,008,445.00 11,156,362.00

Program Support Expense 13.00 1,493,832.00 1,001,292.00

Total Expenditure 24,028,105.00 20,776,963.00

Excess of Expenditure over Income (24,028,105.00) (20,776,963.00)

ARANNAYK FOUNDATIONINCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED JUNE 30, 2009


Particulars 2008-2009 2007-2008

Cash flow from Operating Activities

Net Income before taxation (24,028,105.00) (20,776,963.00)

Add: Adjustment for: 1,101,488.00 1,363,752.00

Depreciation on Property, Plant and Equipment 1,063,021.00 1,325,285.00

Amortization Expenses 38,467.00 38,467.00

Operating profit/(loss) before changes in working capital (22,926,617.00) (19,413,211.00)

Adjustment for (Increase)/Decrease in Current Assets (4,597,593.00) (3,680,260.00)

Adjustment for Increase/(Decrease) in Current Liabilities 312,331.00 893,158.00

Net Cash Flow from Operating Activities: (A) (27,211,879.00) (22,200,313.00)

Cash Flow from Investing Activities:

Purchase of Property, Plant and Equipment (182,518.00) (399,200.00)

Net cash From Investing Activities: (B) (182,518.00) (399,200.00)

Cash flow From financing Activities:

Tropical Forest Conservation Fund from U.S (Govt.) 78,562,613.00 75,448,744.00

Net cash Flow from financing Activities: (C) 78,562,613.00 75,448,744.00

Increase/(Decrease) In Cash and Bank Balance (A+B+C) 51,168,216.00 52,849,231.00

Cash & Bank balances at opening 371,948,939.00 319,099,708.00

Cash & Bank balances at closing 423,117,155.00 371,948,939.00

ARANNAYK FOUNDATIONCASH FLOW STATEMENT

FOR THE YEAR ENDED JUNE 30, 2009


arannayk foundation annual report 2009

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