VZCZCXRO3586
RR RUEHBZ RUEHDU RUEHGI RUEHJO RUEHMR RUEHRN
DE RUEHKI #0347/01 0991116
ZNR UUUUU ZZH
R 091116Z APR 09
FM AMEMBASSY KINSHASA
TO RUEHC/SECSTATE WASHDC 9458
RUCNSAD/SADC COLLECTIVE
RUEHXR/RWANDA COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC

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 
------------------------------------ 
 
¶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 
 
KINSHASA 00000347  002 OF 003 
 
 
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