19/06/02

CAMBODIA CONSULTATIVE GROUP (CG) MEETING

Phnom Penh, Cambodia, June 19 - 21, 2002

Key Reform Issues in Forestry and Fishery Sectors

On behalf of Donors’ Working Group on Natural Resource Management (WGNRM)

The Donors’ Working Group on Natural Resource Management (WGNRM) remains concerned regarding the too limited progress with key reforms within both the forestry and fishery sectors. The WGNRM acknowledges the achievements attained during the past few years in reducing anarchic activities and in improving management within both sectors, but wish to stress that, in order to achieve the desired objective of sustainable management of natural resources in support of Cambodia’s economic growth and poverty reduction there are many more tasks to be fulfilled. Poverty reduction in Cambodia is dependent on better management, equitable access and rational use of agricultural, forestry and fisheries resources for the benefit of the whole nation. To ensure better management of and access to these natural resources, active and meaningful participation of local communities is essential. The WGNRM strongly endorses and encourages the development of both community forestry and community fisheries policies, legislation and implementation. Since the last CG meeting in Tokyo, although progress has been made, much remains to be done in the development of both the forestry and fisheries sectors.

I. FORESTRY SECTOR REFORM

The Donor Community is still very concerned with the reform process in the forestry sector. Forestry concessionaires were expected to have submitted sustainable forest management plans (SFMP), including environmental and social impact assessment (ESIA) for their concessions by September 2001. This did not happen. The WGNRM agrees fully with the issuance of Declaration (Prakas) No. 5721, December last year, suspending all the logging activities in forest concessions until the concessionaires have submitted acceptable SFMP. Since the January 16 meeting of Government and donors this year, there has been no significant progress towards sustainable forest management. On the contrary, there are worrisome reports of continued and more widespread illegal logging within some forest concession areas. Limited public information or disclosure has contributed to mistrust and even confrontations amongst stakeholders and limited the ability of Cambodia’s development partners to work constructively with the RGC to address the significant challenge of forest reform.

1. Sustainable Forest Management Plans (SFMPs)

• Suspension of logging: After the failure of the forest concessionaires to prepare and submit SFMPs at the end of September 2001, the Prakas No. 5721 was issued by the RGC to suspend all logging activities since 01/01/02. However there have been reports of continued logging activity in some concession areas and the transport of logs cut in 2001 has been continuing in 2002. Strong vigilance on the part of the government is required to properly monitor this activity to ensure legitimate operations. The WGNRM urges that consistent with the Sub-decree on Forest Concession Management and other laws, concessionaires found in violation by the FCMU (cf. below) have their concession contract terminated immediately and be banned from any future involvement in the forestry sector.

• Resumption of exploitation: The goal of forest sector reform, set by the RGC, is to move from anarchic, inefficient, and destructive exploitation of the forests to sustainable, efficient and nationally profitable management of the forest resources. To achieve this, the RGC has requested concessionaires to prepare and submit ESIA and SFMPs for their respective concessions. It is the WGNRM’s understanding that some forest management plans have been submitted and are being evaluated by DFW. These, and the criteria for their evaluation, should be made public when submitted. The WGNRM recommends that the resumption of forest exploitation should only be allowed once the concessionaire has presented an adequate ESIA and SFMP and these have been evaluated and approved. To ensure transparency and quality of the process the WGNRM recommends that these documents be reviewed by an independent panel of experts consisting of both Representatives of the concerned National Institutions and one observer of the WGNRM to make recommendations to RGC for approval. This panel should be established as soon as possible. Concessionaires, who do not submit plans or those found unacceptable by the Panel, should be banned and their concession canceled not later than 31/12/02.

2. Case Tracking System (CTS) and sanctions for offenders

The WGNRM urges the DFW to maintain and utilize the CTS to ensure transparency and efficiency in the investigation of illegal logging reports. At the same time, the Donor Community urges that the RGC take prompt and appropriate action against offenders of illegal logging. Since October 2001, there are still 34 cases submitted by the Independent Monitor of the FCMR that have not been appropriately investigated and addressed by the DFW. Prompt action and greater transparency on the part of the DFW is required.

3. Geographic Information System (GIS)

Effective monitoring of harvesting operations is essential and depends on the periodic acquisition interpretation and mapping of satellite imagery and on the establishment of an accurate and accessible GIS database for forest concessions and other lands of the permanent forest estate. Such a facility would increase transparency and build up trust among the stakeholders. In order to have baseline information, the WGNRM urges the Government to support the implementation of a forest cover survey and forest classification.

4. Illegal logging activities

Various illegal logging activities have been reported and the WGNRM urges the RGC to take immediate and appropriate action to stop the following:

illegal harvesting reported in the forest along the borders. This medium scale activity appears extensive using sawmills 

• scattered in remote areas in the forest. They target luxury quality wood impoverishing the natural forest and endangering the biodiversity, which neither contributes to the national economy nor benefits the local community, except the loggers themselves.

• members of the RCAF have been reported to be actively involved in illegal logging and grabbing forestland in various areas.

• despite the moratorium decided by H.E the PM, the cutting of resin trees, on which the livelihoods of the forest dependant poor and indigenous people depend, continues and there are frequent complaints from local communities.

• moreover, we have raised recent cases of illegal logging within the GAT concession. Recent investigations by the Independent Monitor and FCMU have furthermore established strong evidence of violation of moratoria by Pheapimex. WGNRM urges the RGC to take appropriate and definitive action against the violators.

5. Deforestation for establishing other activities

The WGNRM is concerned to see the devastation at a very large scale undertaken by the logging concessions in order to establish agro-industrial plantations. Large areas of primary forest have been reduced to bare soil. The example of converting the forest to rubber plantation in Kompong Thom province is particularly significant. Local villagers, who in the past had depended largely on the harvest of forest products, are severely affected, and it will be necessary to ask for supplementary food aid for those people whose sources of income have been deprived.

The WGNRM urges the RGC to conduct ESIAs to international standards, and make the results public, before approving concessions and launching operations of such magnitude that have a serious impact on the environment (erosion) and local populations (depletion of livelihoods).

Moreover, the WGNRM recommends that RGC temporarily stops the current deforestation and that the RGC identify irreversibly degraded areas for conversion, in accordance with a publicly available land use plan. Moreover the WGNRM recommends that the clearing should be undertaken at the same rate that the planting.

6. Inspection and Verification: Forest Crime Monitoring and Reporting Unit

The WGNRM recommends that the RGC improve the monitoring and reporting system for forest management. Currently there are many questions concerning the inspection and verification of reported forest crimes in the field. Forest crime monitoring and reporting requires a strong degree of independence. DFW as an institution works closely ‘with the forest concessions and appears unable to provide such independence. WGNRM recommends that the institutional framework for inspection and verification be re-evaluated, and requests the two Ministries (MAFF and MoE) to commission an independent national entity to carry out inspection and verification functions on their behalf. Taking into account the possible lack of capacity, the WGNRM could be requested to assist the designated partner with training and equipment. Based on the difficulties encountered by the FCMR Project and the experiences gained so far, the WGNRM strongly recommends the appointment of a National Director for the FCMRP from an Authority not directly involved in the forest sector. The WGNRM strongly recommends that the findings and reports of the FCMU must represent the official position of the Government.

7. Legislation

The preparation of the Community Forestry Sub-decree underwent an extensive public consultation process under the supervision of the Community Forestry Task Force. The Sub-decree has been forwarded to DFW for an internal review. There are some concerns that DFW might make further changes to the Sub-decree that would undermine the public consultation process. The WGNRM urges the approval of the Community Forestry Sub-decree as submitted to the DFW in February 2002 by the Council of Ministers. If any changes are made to the Sub-decree they should be made transparent and adequate time should be provided for concerned stakeholders’ response.

II. FISHERY SECTOR REFORM

The main goal of the fishery reform process is to ensure the sustainable management of Cambodia’s fishery resources in order to achieve:

- Poverty alleviation through the increase of food security and local revenue generation
- A better contribution to the Government budget
- A better protection and management of the environment

1. Fisheries Legislation and Policy Reform

The new Fisheries Law forms the basis for all fisheries management in Cambodia. All other fisheries legislation such as the community fisheries sub-decree cannot properly proceed without this foundation. Presently there is a vacuum in terms of legislation which enables unsustainable, corrupt and destructive practices to continue which endanger the resource base.. This situation must end. The WGNRM urges the RGC to accelerate the finalization of the fishery law as soon as possible and to develop an appropriate Master Plan for the sector.

2. Fisheries Management

• Community Fisheries Management — Community fisheries is currently being developed in many locations throughout the country. The WGNRM applauds the RGC on the release of commercial fishing grounds to local communities. However, the WGNRM urges the RGC to clearly demarcate the boundaries of the remaining fishing lots to avoid future conflicts (GPS coordinates should be made public). Supporting legislation for community fisheries is also needed. The current sub-decree on community fisheries has numerous short comings and does not yet provide the required basis for implementation in the field and would do more damage than good in its present form. The WGNRM strongly recommends that the sub-decree for community fisheries be recalled and subjected to additional stakeholder consultation before finalization and submission for approval.

• Fisheries Concessions — Some 417,000 hectares of fishing grounds remain within the commercial fishing lot system. Reform in this sector is urgently needed to: 1) ensure transparent and fair allocation of fishing lots, 2) ensure responsible management of the forest and fish resources by the lot operators through revision of the burden books and proper supervision of operations, and 3) to stop all sub-leasing of lots by lot operators (may need to divide the lots into smaller units).

• Protection and Conservation — DoF staff must work to ensure habitat protection and elimination of destructive fishing practices. Empowerment of communities within community fisheries to protect their resources is essential. Proper supervision and management of fishing lots to eliminate illegal fishing practices is essential. DoF staff must police the open fishing areas, eliminate destructive fishing practices and stop all clearing of inundated forest habitat. The WGNRM recommends that the RGC establish and manage a proper fish sanctuary system to conserve brood stock in strategic locations.

• Training of Fishery Officers — The fisheries reform process requires a re-orientation of fisheries control officers to serve as facilitators within the community fisheries development program. A large number of trained staff are currently needed within the community fisheries sector. The WGNRM urges that appropriate staff be identified and trained to undertake the important task of community fisheries development. Training and capacity building of fishery staff should be a priority for both the RGC and the Donors.

• Marine resources — Cambodia is fortunate to have a wealth of marine resources which can be developed to provide a greater contribution to food security, revenue generation and local as well as national development. Numerous destructive fishing practices and over-exploitation by foreign fishing vessels have been reported which threatens this valuable resource. The WGNRM recommends that the RGC place a greater emphasis on marine resource management, eliminate destructive fishing practices, and formulate a development plan which involves the participation of the coastal communities.

Performance Indicators for the Sustainable Management of Natural Resource
Prepared for the 2002 Consultative Group Meeting on Cambodia
19 - 21 June 2002     Phnom Penh, Cambodia

DATE: 19 June 2002

Millenium Development Goal for Ensuring Sustainable Environment in 2015:
Integrate the principles of sustainable development into country policies and programs and reverse the loss of environmental resources. 

Long term Objectives

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