DRC FORESTRY TITLE CONVERSION PROCESS:

UNCLAS SECTION 01 OF 03 KINSHASA 000347

SIPDIS

E.O. 12958: N/A
TAGS: SENV ECON EAID ETRD EINV PGOV CG
SUBJECT: DRC FORESTRY TITLE CONVERSION PROCESS:
STAKEHOLDERS DISCUSS NEXT STEPS


1. (U) Summary: The government of the Democratic Republic of Congo
(GDRC) has initiated the post-conversion process of forestry titles
following the completion in January 2009 of a government year-long
review of 156 logging titles. The review was completed following a
presidential decree that outlined the procedures for titleholders to
apply for conversion of old titles to new logging concessions
following the 2002 forestry code. A workshop held in Kinshasa in
early March brought together stakeholders engaged in the forestry
sector to discuss and make recommendations for the legal and
administrative steps needed to implement the government decision to
convert those title applications approved by the government. A
series of recommendations were presented, with many focused on
capacity building of the government agencies charged with
implementing the forest code and better definition of the roles and
obligations of all stakeholders. No agreement was reached, however,
on how to address titles that were not approved by the government
but were disputed by title holder applicants. In closing remarks
during the March workshop, Minister of Environment, Forestry,
Conservation of Nature and Tourism (MECNT)Jose Endundo strongly
criticized certain local NGOs for their "irresponsible" position, in
particular their call for a continued moratorium on the granting of
new logging concessions. The long list of recommendations presented
by the participants highlights that while an important milestone in
sustainable forest management has been realized, much work is left
to do. End summary.

LEGAL REVIEW AND CONVERSION PROCESS
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2. (U) On January 19, 2009, the GDRC announced that it had decided
to cancel 60 percent of timber contracts (totaling 91 contracts) as
a result of a legal review of 156 logging applications by the
Inter-ministerial Commission (IMC) established by Presidential
Decree to examine logging applications solicited as a result of the
decree. The legal review process, conducted with financial and
technical support from the World Bank with full participation of an
officially designated independent observer (US NGO World Resources
Institute),examined whether previously awarded timber contracts met
DRC legal and environmental standards. The legal review was aimed
at promoting the sustainable management of and transparency in the
forest sector. Those contracts determined to be illegal were
cancelled; those deemed legal would be eligible for conversion to
long-term sustainable concession agreements under a "conversion
process." (Note: The DRC's 2002 Forest Code replaced colonial-era
regulations governing the sector and required forest titles to be
converted to new forest concession agreements. In addition to the
legal review and conversion process, in May 2002 the GDRC imposed a
moratorium on new timber contracts. End note.) Following an appeal
period, a total of 65 titles, representing 9,719,246 hectares out of
156 applications totaling 12,719,359 hectares, were formally
approved for conversion.


3. (U) Some international NGOs, notably Green Peace, UK Rainforest
Foundation and UK-based Global Witness have strongly criticized the
title conversion process over what they perceive as a lack of
attention to the social and environmental impact of the conversion
process on local communities, a lack of transparency during the
process, lack of GDRC capacity to manage the forestry sector, and
violations of the May 2002 moratorium (Note: An October 2005
Presidential decree, PD05/116 reconfirmed the validity of the 2002
moratorium. End note.) The World Bank had previously come under
pointed criticism from these same NGOs, notably the Rainforest
Foundation, for not following Bank policies regarding the protection
of minority rights in the forest reform process, prompting an
internal inspection panel by the Bank over whether it had failed to
comply with its own safeguard policies in forest sector reform.
(Note: The IP eventually determined that in fact the Bank had not
followed its own policies in this regard and made a series of
recommendations to the Board for future Bank forestry sector
activities. End note.)

NEXT STEPS: THE POST-CONVERSION PROCESS BEGINS
-------------- -


4. (U) With the legal review completed and decisions taken on which
titles are eligible for conversion, the GDRC has now turned its
focus to the post-conversion process of the forestry titles. From
March 4-6, the Ministry of Environment (MECNT),with support from
the Programme for Biodiversity and Sustainable Management of Forests
in the DRC (PBF/GTZ),held a workshop on the post-conversion
process. The workshop focused on four issues: dissolution of
non-converted titles; the post-conversion process for valid
concessions; social investment agreements ("cahier des charges");
and forest management, including conditions where allocations of new
or additional concessions could be initiated. New concessions would
be eventually considered according to a not as yet initiated forest
land use planning process ("plan de zonage"). Participants included
federal and provincial level government officials, donors, local and
foreign NGOs, industry representatives, and international
organizations engaged in the DRC's forestry sector. Working groups

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in these four areas presented recommendations, which were approved
by the plenary.


5. (U) Recommendations for the dissolution of non-converted titles
included the development of a practical guide to define
responsibility of stakeholders, reporting procedures, budgets and
workplans; establishment of national and provincial
inventory/inspection teams to ensure contracts were properly
dissolved; and ensuring sufficient resources to support the
dissolution process. However, no agreement was reached on how to
address 16 non-converted titles for which the cancellation decision
was disputed by the applicants.


6. (U) On the post-conversion process of converted titles,
recommendations included, among others, strengthening the capacity
of stakeholders; ensuring the rights and obligations of
stakeholders; establishing a central body to manage land-disputes,
as well as encouraging local forums on this issue; simplification
of, adherence to, and greater transparency concerning fiscal policy
and tax redistribution; and developing incentives to support
certification of logging concessions. Recommendations on social
investment agreements (funds held by the forest concession holder to
finance local development projects) included clarification on the
role, mandates and obligations of various stakeholders;
establishment of legal perimeters for the funding of social
investment agreements; setting of standard rates for services
provided by the concession holder; and establishing terms of
reference and procedures for payments for forest access rights.


7. (U) Finally, participants also presented recommendations for
logging concession management and the development of land-use
planning focused on multiple forest uses. Logging concession
management recommendations included completion of norms and
guidelines on forest management; decision on the status of
previously submitted logging concession management plans; capacity
building at all levels to monitor plans; establishment by logging
companies of management plan units; and development of support
mechanisms for companies not familiar with forest management and
certification requirements. Recommendations for the development of
land-use planning (sometimes referred to by certain NGOs as
community forest mapping) included completion of the legislation and
implementing regulations for community forests; development and
implementation of a communications program for local communities and
authorities; and development of macro land-use planning and mapping
for the provinces of Equateur, Orientale and Bandundu.


8. (U) In closing remarks at the workshop, Minister of Environment
Jose Endundo highlighted the need to improve legislation and
strengthen capacity to reduce illegal exploitation of resources,
simplify and enhance transparency of the forest tax collection and
redistribution systems, and promote the international certification
of logging concessions. Noting the important role that the forestry
sector can play in employment generation and poverty reduction in
the DRC, Endundo strongly criticized the position of some NGOs,
calling on them to adopt a "more responsible attitude" and warning
local NGOs not to adopt the "radical positions" of international
environmental NGOs. He specifically criticized NGOs for supporting
a continued moratorium on new forestry concessions and calls to
boycott Congolese forestry products in the name of conservation.

USG SUPPORTS LAND USE PLANNING
--------------


9. (U) The USAID-funded Central African Regional Program for the
Environment (CARPE) continues to play a leading role in the
promotion of sustainable natural resource management in the Congo
Basin forest. To support GDRC efforts to develop and implement
effective tropical forest land-use planning, CARPE is currently
funding U.S. Forest Service technical assistance, in particular land
use planning specialists to work with MENCT to help them design a
participatory land use planning methodology for the DRC which
ultimately will result in zoning measures to support various uses
including additional protected areas, logging, farming, etc. in a
multiple use context.


10. (U) Comment: Unlike the mining sector review, the forestry
review process did not include renegotiation of existing contracts.
Rather, the forestry sector review was a legal review to determine
the validity of titles. Both review processes, however, had the
same broad aim -- promote transparency, increase state revenues, and
support improved governance of traditionally corrupt and mismanaged
sectors. Despite the support of donors such as the World Bank, the
forestry review process was plagued by similar criticisms as the
mining review - foremost among them, a lack of transparency.
Neverthless, the independent observer was satisfied that the norms
for the process were carried out correctly and transparently.


11. (U) Comment continued: Minister Endundo correctly notes the
positive role that the forestry sector can play in the DRC's
development. The legal review and conversion process of the

KINSHASA 00000347 003 OF 003


forestry sector, despite flaws, was an important step towards more
sustainable forestry management in the DRC. How the GDRC implements
the post-conversion process and addresses key remaining issues will
be a major challenge given the weak institutional capacity of the
ministry. The dialogue initiated during the early March workshop
was a good beginning. The USG will continue to work with all
stakeholders to help ensure that the process moves forward in manner
that supports the DRC's economic development while also preserving
one of its most important natural resources and one of the world's
most intact tropical forests. End comment.

GARVELINK