Sustainable Forestry Plantation in Tanzania

($26,000 advisory support for $1,200,000 total investment)

Purpose: Advised Dutch (FMO) and German (DEG) development banks on a proposed forestry plantation in Tanzania to provide a sustainable supply of wood for evaporating brine at a salt mine. This support helped address the issue of local deforestation related to their investment in the newly privatised mine.

Place and duration: The Hague and Tanzania, 3 months

Status: Investment Approved. Plantation begun in 2000.

Summary: Support was provided through a sub-contract to a forestry consultancy. In August 1999, a desk study was prepared on initial plantation pre-feasibility in the Uvinza region of Tanzania. Subsequently the consultant traveled on-site in September to conduct a full plantation feasibility assessment. Upon initial positive review, FMO sent their investment officer to Tanzania to evaluate the overall project (investment in salt mine and plantation). During this visit, the consultant remained on-site to assist FMO with plantation assessment. A final report was delivered to FMO, DEG and the Mine owner in September. The proposed plantation, which was subsequently approved by DEG and the Mine owner, is now underway and will eventually replace the 1 million trees that are currently being taken unsustainably from local forests each year.