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MESSAGE

The Arannayk Foundation was established as a not-for-profit company through joint


initiatives of the governments of Bangladesh and the United States in 2003 under the
auspices of the US Tropical Forest Conservation Act of 1998 to support tropical forest
conservation activities in Bangladesh. The Foundation is managed by a Board of
Directors consisting of seven members: two from the two governments - Joint
Secretary, Development, Ministry of Environment and Forests, Government of
Bangladesh and the USAID Mission Director in Bangladesh - as ex-officio members
and five other members selected from relevant civil society organizations in
Bangladesh. The first Board of Directors worked for two consecutive terms (3 years
per term), which ended on 25 July, 2009 and the current Board started from the next
day. One of the main challenges for the Board of Directors in the beginning of 2009
was to ensure smooth transition from the old to the new Board by replacing the five
members from civil society organizations with new ones. The new Board members
were selected through open solicitation through two national dailies followed by
primary screening and discussion with the short-listed candidates by the USAID and
then final approval by the Government of Bangladesh. The new Board Members were
invited to attend the last two Board Meetings of the outgoing Board as observers
through which they got orientation about the functioning of the Arannayk Foundation
and thus there was a smooth transition from the old to the new Board.

The Foundation had its first independent evaluation by the Tropical Forest
Conservation Act Secretariat, Washington, DC in 2008. The evaluators made some
recommendations for improving operations of the Foundation. The Board of
Directors strictly followed the recommendations and monitored the compliance of the
recommendations by the Secretariat. I am happy to say that the Secretariat significantly
improved the management of the grants and field level implementation of the projects
by following the recommendations. The new Board members also contributed to
revising the 'Strategic Plan' and operation of the Secretariat and hence there are now
more focused programs for community-based management of tropical forests and
biodiversity 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 interest
income of the Foundation, keeping the fund received under the TFCA agreement
intact. This is an indication of the sustainability of the program. However, there is a
serious need to scale up successful pilot interventions, for which fund-raising is
essential.

This Annual Report will hopefully help the readers understand the activities and
success stories of the Arannayk Foundation in collaboration with partner organizations
and development partners. What is essential now is to replicate these successful
interventions for the continued conservation of tropical forests and biodiversity
resources of Bangladesh.

Denise Rollins
Chair, Board of Directors

ii Arannayk Foundation
FOREWORD
Before 2009, the Arannayk Foundation (AF) had been soliciting project proposals from
NGOs, academic institutions and other relevant organizations mentioning only the broad
program areas such as conservation of biodiversity of homesteads, coastal areas,
medicinal plants, etc. Except few proposals, most of the organizations did not understand
the themes of the projects and hence came up with mainly tree plantation program with
limited ideas on conservation of natural forests involving communities. When they
received grant awards, they started implementing the projects in the field and soon realized
that the project sites did not address either the issue of biodiversity or forest conservation
and 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 the
evaluation of the proposals. Based on the above experience, the AF Secretariat identified
critical biodiversity issues in different forest areas and developed project proposals with
clear objectives and expected outputs and invited project implementation proposals from
competent organizations. This means that the organizations that applied for the projects
were expected to elaborate only the activities or methodologies and the implementation
plan to achieve the objectives of the projects. As such, AF revised its tools for the
evaluation of the invited project (implementation) proposals.

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

During 2009, twelve grants were awarded to successful entities. The projects included five
indigenous 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 through
quarterly review and output level monitoring through annual review where the
implementing entities had to share the output of the interventions against each
objectives. In addition, the AF staff members undertook frequent field visits to oversee
field level activities. The quarterly and the annual review meetings involved all the
implementing entities of a particular type of projects that provided them the opportunity
to share experiences and lessons among themselves that helped them improve their own
project activities and approaches. There were exchange visits as well, the idea of which
came up from the review meetings.

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

Farid Uddin Ahmed


Executive Director

Annual Report 2009 iii


ABBREVIATIONS AND ACRONYMS
AF Arannayk Foundation
AIGA Alternative income generating activities
BAS Bangladesh Accounting Standards
Tk Taka
BCAS Bangladesh Centre for Advanced
Studies
BFRI Bangladesh Forest Research Institute
CCA Community conserved forest areas
CDM Clean Development Mechanism
CFSD Centre for Sustainable Development
CGMP Competitive grant making procedure
CHT Chittagong Hill Tracts
CMC Co-management Council
CNRS Center for Natural Resource Studies
CODEC Community Development Centre
CRF Community Reserve Forest
DAM Dhaka Ahsania Mission
DEBTECH Development through Biotechnology
ECB Environment Council Bangladesh
ESCB Engineering Staff College Bangladesh
FD Forest Department
FSC Finance Standing Committee
FUG Forest User Groups
GMS Grant Management Software
IAS International Accounting Standards
IDO Integrated Development Organization
IFESCU Institute of Forestry & Environmental
Sciences, Chittagong University
IGA Income Generating Activity
IPAC Integrated Protected Area Co-
management
MoEF Ministry of Environment and Forests
MOU Memorandum of Understanding
NGO Non Government Organization
OSAD Organization for Social Development
Padakhep Padakhep Manabik Unnayan Kendra
PFA Protected forest areas
POSC Program and Operations Standing
Committee
PPET Project Proposal Evaluation Tool
PRA Participatory Rural Appraisal
PRT Peer Review Team
PSC Program Standing Committee
RDRS Rangpur Dinajpur Rural Service
REDD Reducing Emission from Deforestation
and Forest Degradation
SHED Society for Health Extension &
Development
SUS Sabalambi Unnayan Samity
TFCA Tropical Forest Conservation Act
USAID United States Agency for International
Development
USD United States Dollar
VCF Village Common Forest
VFCF Village Forest Conservation Forum
VFDG Village Forest Dependent Group
YPSA Young Power in Social Action

iv Arannayk Foundation
TABLE OF CONTENTS
Executive Summary 01

Chapter 1 Arannayk Foundation at a Glance 03


1. Background and Origin 04
2. Vision and Mission 04
3. Governance 05
4. Grant-making Procedure 06

Chapter 2 Progress in Grant Making 09

Chapter 3 Completed Projects 13


1. Nursery development for regeneration of threatened species 14
2. Establishment of a quality seed source for threatened tree species 14
3. Genetic diversity conservation and restoration in Sidr-hit areas 15
4. Conservation of bamboo in Chittagong Hill Tracts 15

Chapter 4 Ongoing Projects 17


1. Community based herbal gardens 18
2. Propagation and conservation of two endangered tree species,
Civit and Banspata 20
3. Coastal biodiversity conservation through development of
AIG facilities 20
4. Homestead agroforestry through improved management practices 21
5. Community based conservation of forest resources in
the Chittagong Hill Tracts 22
6. Restoration and conservation of swamp forests in the haor areas of
northeast Bangladesh 25
7. 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

Annual Report 2009 v


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

The Arannayk Foundation started its grant making activities from 2006 and by
2008 it awarded 40 grants to different implementing entities under nine
projects. Out of the nine projects, four were completed by 2008 and the
remaining 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 for


regeneration of 150 threatened tree species of Bangladesh involving 26 private
nurseries in different parts of the country, (b) establishment of a parent stock
plantation 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 information
support and training to the farmers and nursery owners in four coastal districts
(Barguna, Jhalokhathi, Pirojpur, Bagerhat) after the area was devastated by the
cyclone, Sidr in October 2007, and (d) conservation of two species of
bamboos (Melocanna baccifera, Gigantochloa andamanica) in Chittagong Hill Tracts
(CHT) following extensive flowering and death of the existing groves during
2006-2008 through awareness raising campaign and farmers’ training on
collection, storage and planting of the bamboo seeds.

The pre-existing projects that continued in 2009 include (a) homestead


agroforetsry biodiversity conservation implemented by three entities in three
different areas of Bangladesh (Tala in Satkhira; Sitakunda and Mirsarai in
Chittagong; Patiya and Chandanaish in Chittagong); (b) coastal biodiversity
conservation implemented by two entities in the coastal areas of Khulna and
SaTkhira districts; (c) community-based medicinal plant conservation in two
locations (Keshabpur in Jessore and Rangamati) and (d) multiplication and
restoration of two critically endangered tree species of Bangladesh hill forests
namely Civit (Swintonia floribunda) and Banspata (Podocarpus nerifolius).

Of the 12 new projects initiated in 2009, five involve collaboration with the
Forest Department and deals with establishment of collaborative management
system (co-management) in reserved forests under the administrative control
of the Forest Department that are aimed to be declared as protected forest
areas (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 conserving
some natural forests for many decades for various ecological services needed by the respective communities but now under
increasing threat of degradation and deforestation. The other two new projects are on community-based conservation of
swamp forests in the haor (basin) areas of northeast Bangladesh. The new projects are of 3 – 4 years duration and their
implementation 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 biodiversity
from the forests and homesteads of Bangladesh.

The 26 private nurseries that started producing planting materials of endangered indigenous species of trees in 2007
through Arannayk support are still producing and selling the same and, thus, have become a source of planting materials
of such species to concerned individuals and organizations. The awareness campaign made by the Arannayk Foundation
sponsored projects on homestead agroforestry and coastal biodiversity conservation have created demands for those
species. On the other hand, by identifying the remaining trees, developing propagation techniques, establishing seed
orchards and clonal hedges and distributing planting materials to different organizations, IFESCU has saved two
endangered 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 management
capacities have created access of the poor project participants to small, and generally interest-free, loans for undertaking
alternative income generation activities. In homestead agroforestry and coastal biodiversity projects, there are numerous
examples 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 the
project participants include vegetable cultivation in homesteads, cultivation of rice and other crops in leased land, cattle
rearing, goat rearing, poultry rearing, fish cultivation, crab fattening, handicrafts production and small trading. The rate of
repayment of the revolving loan is above 95%. The revolving fund has also strengthened group cohesion towards
sustainable institutional development of the poor target beneficiaries. Moreover, it is contributing to conservation of
endangered native species of trees as the borrowers need to plant at least five endangered native trees in their own lands
for 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 and
capacities 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 at
district and Upazila level, civil society organizations and community leaders of all three districts of CHT have become very
supportive 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 to
expand its program on conservation of protected areas and to link its program with global and national climate change
initiatives. 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 fund
raising strategy and to undertake various promotional measures. Arannayk Foundation’s program in 2010 will address the
above needs and challenges.

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

2. Vision and Mission


Together with its associated agencies and supported organizations, the Foundation envisions that the natural ecosystem
and biodiversity resources of the forests in Bangladesh are maintained in a sustainable manner by responsible stakeholders
through collective efforts – providing access and benefits to local communities, national economy and the humankind at
large 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 engaged
in activities relating to forestry;
b) the leader for intervening between the private and public sector agencies to coordinate all forestry-sector activities
following 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 and
management of tropical forests in Bangladesh through awareness and capacity development of stakeholders for planning
and 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 may
include:

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, educational
and indigenous peoples’ organizations active in Bangladesh; scientific, academic and professional organizations related to
forests; other appropriate forest-related entities active in the country, and, in exceptional circumstances, agencies of the
Government of Bangladesh.

04 Arannak Foundation
3. Governance
The apex body of the Foundation is its Board of Directors that consists of seven honorary Member-Directors. The Board
members include a representative of the US Government and another from the Government of Bangladesh; the rest five
are selected from organizations of the following three categories: (a) environmental organizations, (b) community based
local 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 in
consultation with the USAID Mission in Bangladesh for a term of three years with possibility of extension for a maximum
of one more term. The Board members meet at least three times a year, and decide policies, plan and activities of the
Foundation.

Annual Report 2009 05


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; and
Finance Standing Committee (FSC) – for budgeting and investment-planning. AF makes prudent investments through fixed
deposits 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 AF
Secretariat 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 Procedure
Arannayk Foundation grants are given to eligible entities for implementation of projects within the broad program areas
determined by the Foundation. AF solicits proposals from eligible entities through its website and advertisement in
national 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 (scoring
60% and above) in the external evaluation are verified by the AF Secretariat through field visits and interviews with the
management and key staff members of those organizations.

The competitive grant making procedure (CGMP), the project monitoring system and the automated financial reporting
system developed and applied by the Arannayk Foundation has made the operations of the Foundation effective, efficient
and transparent. The evaluation of the Foundation conducted by the TFCA Secretariat, Washington DC, in September
2008, by engaging a team of independent consultants, headed by Dr. Kathleen Mikitin, appraised the grant making
procedure, financial management, and the monitoring systems and tools of Arannayk Foundation as examples of best
practices.

06 Arannak Foundation
Annual Report 2009 07
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. Shawkat
Hossain, Program Officer (M&E); Md. Abdul Mannan, Driver; and Komal Barua, Peon.

08
14 Arannak
ArannaykFoundation
Foundation
Progress in
Grant Making
Although the Foundation was set up in 2003, its grant making activities started from 2006 as it took couple of years for
preparatory activities such as establishment of the office, management bodies (Board of Directors and Standing
Committees), 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. The
two completed projects are: (a) Nursery development for regeneration of threatened tree species of Bangladesh, involving
26 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) at
Gazaria, 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 based
participatory 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 (of
trees) in areas ravaged by the super cyclone, Sidr that occurred in October 2007 and another on conservation of two
species of bamboo (Melocanna baccifera and Gigantochloa andamanica) in the Chittagong Hill Tract, groves of which died
throughout the region due to gregarious flowering. The project on conservation and restoration of genetic diversity in the
Sidr-affected area, implemented by the Bangladesh Forest Research Institute (BFRI), was financed based on a request from
the 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-sponsored
project 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 the
implementation 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 Council
consisting of representatives from local communities, local government bodies, civil administration, Forest Department
and other relevant line agencies working in the area. The other new projects include five indigenous community-based
forest conservation projects in the Chittagong Hill Tracts (CHT) and two community-based swamp forest conservation
projects in north-eastern Bangladesh. The new projects are of 3 – 4 years duration and their implementation begun in
June/July 2009.

10 Arannayk Foundation
ARANNAYK GRANTS AWARDED DURING 2006 - 2009
Total
Date of Project
Implementing grants in
Name of Projects Location Commence- Duration
Entity Million
ment (Years)
Tk.

1. Nursery development for 26 locations in 11 districts, 26 private


regeneration of threatened covering main agro-ecological nurseries and 1 Feb 2006 1.5 5.92
species zones of Bangladesh local expert

2. Parent stock plantation in ESCB


Munshiganj ECB Apr 2006 3.0 0.70
campus

Rangamati Juno Pawr Nov 2006 8.0 5.00

3. Pilot level community based


Keshabpur, Jessore IDO Nov 2006 8.0 5.00
participatory herbal gardens
Banderban and Kapasia
OSAD Nov 2006 1.5 1.26
(Gazipur)
4. Recolonization and mass
propagation of Civit (Swintonia Chittagong IFESCU Nov 2006 5.0 3.00
floribunda)

5. Recolonization & mass


propagation of Banspata Chittagong IFESCU Nov 2006 5.0 3.00
(Podocarpus neriifolius)

CFSD
Paikgacha, Khulna Nov 2006 3.0 4.00
Consortium
6. Coastal biodiversity conservation
through creating AIG facilities
Kaliganaj, Satkhira Uttaran Nov 2006 4.0 4.00

Sitakund and Mireresharai


Prottyashi Nov 2006 5.0 3.50
Upazila of Chittagong
7. Homestead agroforestry through
Patia and Chandanaish
improved management practices CODEC May 2007 5.0 3.50
Upzaila of Chittagong

Tala, Satkhira Uttaran May 2007 5.0 3.50

Barguna, Jhalokhathi,
8. Genetic diversity conservation
Pirojpur and Bagerhat BFRI Jan 2008 1.0 1.00
and restoration Sidr-hit areas
districts

9. Conservation of bamboo in Rangamati, Khagrachari and Juno Pawr with


May 2008 0.2 0.48
Chittagong Hill Tracts Banderban hill districts BFRI

10. Community-based Conservation


of Forest Resources and
Kaptai, Rangamati Hill Flower Jun 2009 3 5.99
Enhancing Rural Livelihood in
Rangamati of CHT

Annual Report 2009 11


Date of Project Total grants
Implementing
Name of Projects Location Commence- Duration in Million
Entity
ment (Years) Tk.
11. Indigenous Community Based
Ruma, Humanitarian
Sustainable Management of Chimbuk Jun 2009 3 5.71
Banderban Foundation
Hill Forest in Bandarban Hill District

12. Community Based Forest Resource


Management for Sustainable Rowanchari,
Tah Zing Dong Jun 2009 3 5.11
Development in Rowangchari, Banderban
Banderban Hill District

13. Community-based management of the Khagrachari


Itchari Community Reserve Forest, Sadar, BIRAM Jun 2009 3 6.00
Khagrachari Khagrachari

14. Restoration of Hilly Biodiversity


through Community Based Bio- Dighinala,
Anando Jun 2009 3 5.99
Resource Management at Dighinala, Khagrachari
Khagrachari
Sunamgnj Sadar
15. Swamp Forest Restoration in Haor and Jamalganj
CNRS Jun 2009 3 5.90
Areas of Shunamganj Dist. upazila of
Sunamganj
16. Access to Food Security and
Accelerated Livelihood towards Khaliajuri,
SUS Jun 2009 3 5.98
Biodiversity in Khaliajuri Upazila, Netrokona
Netrokona
17. Inani Protected Forest Area (PFA) Co- Ukhia, Cox's SHED+FD+
Jun 2009 3 70.38
management - NGO component Bazar CMC

18. Restoration and Conservation of


Sitakunda and
Biodiversity in the Denuded Hills in YPSA+FD+
Mirsharai upazila Jun 2009 3 31.19
Sitakunda and Mirsharai, Chittagong - CMC
of Chittagong
NGO component

19. Restoration and Conservation of


Dhaka Ahsania
Biodiversity in the Denuded Hills in Banskhali,
Mission+FD+ Jun 2009 3 17.21
Banskhali, Chittagong - NGO Chittagong
CMC
component

20. Restoration and Conservation of


Dhamoirhat, Padakhep
Biodiversity in Barind Dhamoirhat Sal Jun 2009 3 11.23
Naogaon +FD+CMC
Forest, Naogaon - NGO component

21. Restoration and Conservation of


RDRS+FD+
Biodiversity in Singra Sal Forest, Birganj, Dinajpur Jun 2009 3 13.04
CMC
Dinajpur - NGO component

Total Amount 227.59

12 Arannayk Foundation
Completed
Projects
1. Nursery Development for Regeneration of Threatened Species
In order to establish sources of planting materials for the threatened indigenous species of trees in Bangladesh forests and
homesteads, 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 175,000
to raise 20,000 seedlings of indigenous species. A local expert (Professor of Forestry, Institute of Forestry and
Environmental Sciences, Chittagong University) was engaged to provide technical support to the nursery owners. Through
this program, more than 500,000 seedlings of about 150 species were produced in 2007. Out of the 150 species, 55
indigenous species were selected for promotion. Nursery techniques of these 55 indigenous species have been published
in the form of a manual for use by nursery owners. Copies of the manual have been distributed among relevant
organizations, including Forest Department and private nursery owners.

2. Establishment of a Quality Seed Source for Threatened Trees Species


Through an MOU established with the Engineering Staff College of Bangladesh (ESCB), Arannayk Foundation provided
a grant to a local NGO, the Environmental Council of Bangladesh (ECB), for the establishment of a parent stock
plantation in the ESCB campus to serve as seed source for future plantations. ECB planted more than 2,000 seedlings of

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

3. Genetic Diversity Conservation and Restoration in Sidr-Hit Areas


A devastating cyclone, Sidr, destroyed millions of trees (along with other assets of people) in the coastal districts of
Barguna, Jhalokhathi, Pirojpur and Bagerhat in October 2007. Arannayk Foundation provided BFRI with a small grant (Tk
1,000,000) to provide information and knowledge support to the farmers of the affected areas about ways to re-establish
their plantations with best possible genetic materials. Through TV and newspapers, BFRI made repeated dissemination of
technical advice to farmers regarding the immediate actions/care that the broken and the surviving trees needed and
regarding re-establishment of plantations. It produced and widely distributed a poster on selection of appropriate species
for different planting sites in Sidr-hit areas and organized 8 training workshops on nursery development and planting
techniques 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 on
the species. The seeds of bamboo, being energy-rich food, invite rats and help them multiply enormously, which in turn

Annual Report 2009 15


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 a
gregarious form in 2008. Under this circumstance, the Arannayk Foundation provided a small grant (Tk. 477,000) to Juno
Pawr in May 2008 to undertake a program of restoring the groves of the dieing bamboos with technical support from the
Bangladesh 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 540
farmers and 50 school students. By June 2008, the participants of the project planted Muli bamboo in 15 ha of land, and
private nursery owners started raising seedlings of Kali bamboo in their nurseries.

16 Arannayk Foundation
Ongoing
Projects
1. Community Based Herbal Gardens
With the dual objective of conserving the biodiversity of medicinal plants in the natural forests and establishing them
as a viable source of income generation for the poor people living in and around the forests, AF extended project
support (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 Rangamati
district (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 conserved
in these two gardens. The project participants have also planted selected commercially demanded species of medicinal
plants in their homesteads. Juno Pawr has been exploring marketing opportunities for the medicinal plants grown by
the project participants and has already established linkages between the project participants and some traders of
medicinal plants who have started buying some of the existing medicinal plants from the homesteads of the project
participants. It has transferred a part of the grant (Tk 200,000) to the participant groups which they are using as
revolving 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 to
strengthen their efforts.

IDO has been promoting commercial cultivation as well as homestead-based conservation of medicinal plants in 10
villages in the Keshabpur Upazila of Jessore district – an area experiencing frequent flooding. Approximately 400
beneficiary 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.

18 Arannayk Foundation
Annual Report 2009 19
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 any
significant physical progress.

2. Propagation and Conservation of Two Endangered Tree Species, Civit And


Banspata
Since 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 of
two critically endangered tree species of the hill forests of
Bangladesh 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 also
provides 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 Bangladesh
forests. It is used as a pencil wood. The species is so critically
endangered now that the IFESCU research team could locate
only about 105 trees in the forests of Chittagong and
Chittagong Hill Tracts and in different botanic gardens of the
country.

IFESCU has successfully developed propagation techniques


(sexual, clonal) for both the species and has established clonal
orchards (source of planting materials) and conservation garden
for both the species. Moreover, it has distributed 6,000 saplings
of Civit and 220 saplings of Banspata to the Forest Department and certain NGOs and other institutions. The latter
organizations have planted the saplings in some of the reserved forests, eco-parks and other institutional and private
lands of the region.

3. Coastal Biodiversity Conservation through Development of AIG Facilities


Due 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 conserve
the endangered species of flora and fauna of the coastal area near the Sunderbans, where 70% people are poor and are
increasingly compelled to exploit the biodiversity resources, especially Golpata (Nypa fruticans), Goran (Ceriops decandra) and
Kankra (Bruguiera gymnorrhiza) trees to cope with the adverse effects of ecological changes, Arannayk Foundation has been
funding two projects since November 2006. The objectives of this project include a) creating community awareness on
conserving existing biodiversity, b) organizing poor communities and improving their institutional capacities, c) improving
technical 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 is
implemented by a local NGO, Uttaran.

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

20 Arannayk Foundation
income generation activities (poultry rearing,
shrimp cultivation, small business, tailoring and
handicrafts making) for the poor and building local
organizational capacity to cope with the situation.
Through the support of the project (training,
planting materials), the participants have planted
about 6,500 saplings, mostly of fruit trees (mango,
guava, sofeda, kathbael, jujube, etc.) in their
homesteads and about 2,500 saplings of two
mangrove species, keora (Sonneratia apetala) and baen (Avicennia officinalis) on dikes of shrimp farms in 2008. The project
participants are raising group savings for the establishment of the group’s own credit facility for their income generating
activities. 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 farm
families, who planted 4,200 saplings of 26 different species (arjun, ata, jam, jamrul, etc.) in their homesteads and 2,000
saplings 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 livestock
production. 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 groups
gives modest amount of loans (Tk 1,000 – 5,000) to their deserving members for agricultural activities. These loans are
interest-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 Practices


Traditionally, the homestead forests in Bangladesh are highly bio-diverse. But due to over-exploitation, many associated
species are now endangered. Species like cane and patipata (also called murta), are particularly important for the poor as a
raw material for handicrafts. In response, grants have been awarded to two NGOs (Prottyashi and CODEC) in Chttagong
and one NGO (Uttaran) in Satkhira with the objectives of conserving and restoring homestead biodiversity while creating
alternative income generation facilities for the poor. Prottyashi is working in Sitakunda and Mirsarai Upazila and CODEC
in 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 commercial
species) on homesteads, financing of micro-enterprises, establishment of germplasm banks and promotion of alternative
income generating activities (e.g. bee-keeping, fish culture, poultry and livestock rearing, etc.).

Prottyashi follows a village-wide approach in


awareness and capacity building of farmers for
tree planting and other agroforsetry activities in
homesteads. It organized special tree fairs in the
project villages on the endangered species of
trees and subsequently distributed over 2000
seedlings of endangered trees among 272
households for planting in their homestead and
marginal land. It has established a revolving loan
fund (using a part of the grant) for the project
beneficiaries with an initial amount of Tk
200,000. One group of participants borrowed Tk
55,000 from this revolving fund and purchased a
rice threshing machine to provide services to
local farmers. Within six months, the group
earned Tk 16,000 from the threshing machine

Annual Report 2009 21


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

CODEC is working with 400 households in 14 villages adjacent to public forest lands (degraded), facilitating their
technical and organizational capacity development for local biodiversity conservation and improvement of agroforestry
production 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 regeneration
in the forests, CODEC has initiated awareness campaign and training of the project participants on use of improved
cook-stove.

Uttaran is working with 1000 households of Tala Upazila in Satkhira district. In 2008, it distributed saplings of 36
endangered species of fruit and timber trees among the project participants and organized several exchange visits and
training 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 paddy
cultivation. Forty participants have started practicing one or more of these income generating activities. Uttaran established
a revolving loan fund at the apex body of the participant groups, with an initial amount of Tk 200,000 using a part of the
AF grant) and, within the year, 40 members of 19 groups received the interest free loan for improving their livelihoods
the 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 Hill


Tracts
The Chittagong Hill Tracts (CHT), which has a total area of 13,295 sq. km. (about 10 % of Bangladesh), is characterized
by hilly terrain and once covered by dense and bio-diverse tropical evergreen and semi-evergreen forests. The region is the
home of 13 tribes of indigenous communities, who all are traditionally dependent on the forests, especially on shifting
cultivation, for their livelihoods. For many centuries, the indigenous communities have managed the forests in a sustainable
manner 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 of
the 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 from
deforestation and land-use change, now boulders are removed by people from gullies, creeks and canal beds, which are sold
to traders and used for making stone chips for construction works. This practice aggravates soil erosion and landslide and
reduces water retention capacity of the soil - the latter causing drying out of water streams in the dry season. The lands
of the CHT, except those that have been reserved by the Forest Department, are managed by the Civil Administration of
the district and are leased out to people (indigenous as well as non-indigenous) for teak plantation and other farming
activities. Teak plantation and other farming activities (cultivation of banana, pineapple, turmeric, ginger, etc. in steep
slope) also cause massive soil erosion.

Amid this general scenario of the CHT, some of the indigenous communities still conserve some patches of natural
forests as common property, especially on the parts of the hills from where water streams originate. They do so mainly
for sustained flow of water in the streams but they also get timber, bamboo and other minor forest products from such
forests for household use. A management committee of the respective community, generally headed by the Headman of
the Mouza or the Karbari (Village Head) of the village, manages such community conserved areas (CCA), which are called
in 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 the
biodiversity of the respective areas (although many species of plants and wildlife have already become extinct). Aside from
the CCAs, some of the khas lands (state owned land) and private lands remain fallow and develop into scrub forests, which
also harbor many native species of plants and provide shelter to wildlife.

22 Arannayk Foundation
In May 2009, Arannayk Foundation awarded five grants of about Tk 6.0 million each to five NGOs for the implementation
of five community-based forest conservation projects in different areas of the Chittagong Hill Tract. The duration of each
project 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 necessary
measures for biodiversity conservation and livelihood development. They have also undertaken various steps to raise
awareness of, and mobilize support and cooperation from, local authorities, relevant government agencies, local elites and
religious and community leaders for the community based conservation of local forest and biodiversity resources. The
NGOs have also been providing knowledge and skill development trainings on biodiversity conservation, alternative
income generating activities and institutional development to the project participants. To help the community
organizations develop a revolving fund to provide credit support to their members for alternative income generating
activities, the NGOs have given them a part of their project money as grant. The community organizations are also raising
funds through monthly savings by their members.

5.1. Community-bbased Conservation of Forest Resources and Enhancing Rural Livelihood in Rangamati of CHT
This project, implemented by the Hill Flower, is located in Wagga Union of Kaptai Upazila of Rangamati district and it
covers five villages. Hill Flower has conducted massive awareness campaign on conservation of biodiversity and other
natural resources of the project area, and of
Rangamati districts at large, by organizing public
meetings at the project site and at the district head
quarter and by disseminating messages through
posters, leaflets and billboards. It has involved local
authorities, relevant government departments and
religious leaders (monks) in its awareness campaign.
It has organized the forest dependent poor people
of the project area (105 families) into four groups
and has undertaken various steps to improve their
livelihoods and natural resource management
practices. It has provided each group (association)
with a revolving fund of Tk 100,000 with training on
financial management as well as technical training on
mushroom cultivation, horticulture, bee keeping and
cultivation and post harvest processing of turmeric
and ginger. It has also distributed more than four
thousand saplings of fruit and timber trees (guava,
mango, litchi, mahogany, garjan, etc.) among the
project participants for planting around their homesteads. The people of the project area now well motivated to conserve
the 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 District
This project, implemented by the Humanitarian
Foundation, includes two villages within the
Chimbuk Range of Banderban district – Korangpara
and Kaprupara which are in close proximity to each
other although they fall under two different Upazila
– Ruma and Lama, respectively. At each village, there
is a Village Common Forest (VCF) and the main
occupation of the community members is shifting
cultivation, which is done in the lands surrounding
the community conserved forests.
The biodiversity baseline survey in the two VCFs revealed that there are now 40 species of trees, while 19 other species
of trees have been lost. Due to continuous expansion of shifting cultivation in the area, the VCFs are under increasing
threat of further degradation and extinction of species. In this context, Humanitarian Foundation organized a number of
meetings with the communities of the project area and with other stakeholders (District and Upazila-level government
officials, local government bodies, Mouza and village heads, religious leaders, etc.) to raise their awareness on biodiversity
conservation issues. Bill boards containing message of natural resource conservation needs and actions have been erected
in strategic locations.

Humanitarian Foundation has disbursed Tk 150,000 to the community bank account as revolving fund and has provided
training 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 for
alternative income generating activities namely cultivation of cucumber, turmeric and ginger. In monthly meetings, which
are held regularly, the project staffs of the Humanitarian Foundation discuss technical (biodiversity conservation, IGA) and
institutional issues with the members of the VCF communities. Humanitarian Foundation has developed a flip chart on
various aspects of forest and biodiversity conservation in the local context and they use it in the group meetings as an
awareness raising-cum-training tool. The project staff also document indigenous knowledge and best practices on
conservation of forest resources and share the same in the community meetings.

5.3. Community Based conservation of Village Common Forests in Rowangchari, Bandarban Hill district
This project, implemented by Tah Zing Dong, includes three VCFs in Rowangchari Upazila of Bandarban Hill district
namely 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 19
species of native trees have been lost from the
VCFs. To raise awareness of the VCF communities
and general mass of the project area about the
importance of conserving the VCFs and the
biodiversity resources therein, Tah Zing Dong has
conducted intensive awareness campaign in the
project area and at Rownagchari Upazila and
Banderban district towns by organizing stakeholder
meetings and by disseminating messages through
posters, leaflets and billboards. To support
alternative livelihood opportunity development, Tah
Zing Dong has transferred Tk 330,000 to the
communities’ bank accounts to be used as a
revolving fund by the VCF communities. Tah Zing
Dong has already provided training on bamboo
handicrafts making to the interested participants. It
has also planned more training activities for the
project participants as they have identified some
other IGA activities such as nursery business and cultivation of zinger, banana and papaya. The community has already
utilized Tk 150,000 for agroforestry plantation and Tk 100,000 for nursery establishment out of the revolving fund.

5.4. Itchari Community Reserve Forest


Conservation Project, Khagrachari
This project, implemented by BIRAM, is located
in Panchari Union of Khagrachari Sadar Upazila
of Khagrachari district. The Itchari Community
Reserve Forest (CRF) has an area of 67 ha and
belongs to a community of 168 households in two
villages, Itchari Vitor Para and Itchari Madhya
Para.

24 Arannayk Foundation
The baseline survey of the CRF revealed that there are 37 species of trees in the CRF while 10 indigenous species of the
forest have been lost. Although there is a management committee for it, encroachment and illicit felling of trees have taken
place in the CRF. Through technical assistance and input support from the project, the project participants have developed
a management plan for the CRF and have planted about 1800 saplings of indigenous species in the gaps of the CRF. The
beneficiaries have identified homestead gardening, vegetable seeds production, bee keeping, mushroom production, fish
culture, and nursery business as potential IGAs. The project will support them with revolving loan fund for income
enhancement through implementing IGA activities.

5.5. Restoration of Hilly Biodiversity through Community Based Bio-R


Resource Management at Dighinala, Khagrachari
This project, implemented by Anando, includes two villages, Ghona Para and Bhoirofa Bridge Para, under the Boro
Merung Mouza of Dighinala Upazila of Khagrachari district, which is a resettlement area where the hills and forests are
highly degraded due to shifting cultivation. The baseline survey of the project site revealed that there are 45 species of
tress 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 in


Ghona Para, 17 in Bhoirofa Bridge Para) and they
own a total of 41 ha of cultivable hilly land. Each
family also has a homestead of 0.1 ha. Anando has
organized the households of the two villages into
two groups and have provided organizational
development training and accompaniment support
to help them develop into sustainable community
based organizations. It has also provided skill
development training on several technologies for
homestead-based production activities namely
establishment of multi-tier orchard, boundary
planting, house cleave planting, vermi-compost
production, cow rearing, goat rearing, nursery
business, grafting of fruit trees, vegetable cultivation
and bee keeping. In addition, it has established a
multi-tier orchard, a model of boundary planting
(containing a combination of tall-growing trees,
dwarf fruit trees and pineapple), compost pit, house
cleave plating (papaya and chili) in every homestead of the two villages. It has distributed 16,200 saplings of various fruit
and 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 of


Northeast Bangladesh
The 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 this
haor 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 also
contain 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 ecosystem
services to the people of the region – they supply fuel wood, act as breeding ground for fishes and protect homesteads
from erosion caused by wave actions. But due to unsustainable exploitation of fuel wood and land conversion for
expansion of human settlements and rice fields, most of the swamp forests have been lost or highly degraded.

Annual Report 2009 25


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

6.1. Swamp Forest Restoration in Haor Areas of Sunamganj District


CNRS has been working on restoration of two highly degraded swamp forests: Rahimapur Bagh (43 ha) in Jamalganj
Upazila and Gobindapur Bagh (22 ha) in Sunamganj Sadar Upazila of Sunamganj district. CNRS organized a number of
community meetings to raise peoples’ awareness about the need
for restoring and conserving the swamp forests. It also
organized meetings with the Upazila and district authorities to
mobilize their support and cooperation to the community-
based restoration and conservation of the targeted swamp
forests. Consequently, the Deputy Commissioner of
Sunamganj approved a 10-year lease of the two swamp forest
lands to the local communities organized by CNRS. The local
communities developed a sustainable management plan for
each forest and they planted 15,000 Hijal and Koroch trees in
Rahimapur Bagh and 10,000 in Gobindapur Bagh, about 85%
of which survived at the end of the year (2009). To develop
institutional capacity of the local communities, CNRS
organized training on organizational development and
management for the latter.

6.2. Access to Food Security and Accelerated Livelihood towards Biodiversity Conservation (AFAL) in Khaliajuri,
Netrokona
SUS has been working in four villages (Lakshmiur, Rasulpur, Kristapur and Ichapur) of Khaliajuri upazila of Netrokona
district, involving 249 households as direct beneficiaries. The project participants have established 4 km strip plantations
along the boundary of the homesteads with 9,000 Koroch and 1,400 Hijal trees plants and 8 small groves (0.12 ha) planted
with 366 Hijal/Koroch trees in each inside the haor basins to serve as resting place for birds and breeding ground for
fishes. About 95% of the planted saplings survived at the end of the year. The participants’ group in each village has
started developing a revolving fund through a monthly deposit scheme of the members for investing in income generating
activities. Through PRA exercise, the project participants have identified prospective income generating activities for
different 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 season
and (c) plant nursery and petty business for round the year.

7. AF-FD Collaborative Projects on Co-Management of Forests


Based on a memorandum of understanding (MOU) established in 2006 between Arannayk Foundation and Forest
Department (FD), the two organizations jointly planned five projects on participatory conservation and restoration of
biodiversity in a proposed protected forest area (Inani, Cox’s Bazar) and four reserved forest areas that need restoration
and 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 local
communities, the Civil Administration, the Forest Department, relevant other line agencies and the civil society (following
the co-management model developed by the USAID-supported Nishorgo Support Project) to restore and conserve the
forest ecosystem and to enhance alternative livelihood opportunities for the forest dependent poor people of the project
area. Each project involves three implementing entities: the Forest Department, an NGO and a forest Co-management
Council (CMC) involving the Forest Department, forest user groups, local leaders and relevant government officials of the
respective Upazila. The roles of the NGOs include awareness campaign; identification, group formation and
organizational development of forest dependent people; stakeholder mobilization for CMC formation; and livelihood
development of the forest dependent communities through skill development training in alternative income generating
activities (AIGA) including establishment of social forestry plantation in the buffer zones of the conservation areas.

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

7.1. Inani Protected Forest Area (PFA) Co-m


management Project
The NGO component of this project is implemented by the Society for Health Extension & Development (SHED). The
project area covers part of Inani and Ukhia ranges including 7,000 ha natural tropical forests planned to be declared as
PFA plus 3,000 ha of surrounding Reserved Forests.
The area is a part of a natural habitat of Asian
elephants adjoining the Teknaf Game Reserve. It
still contains some old growth forests but its greater
part is highly degraded due to illicit felling of trees
by the poor people living in and around the forest.

SHED has organized people of 14 villages around


the Inani PFA for participatory conservation of the
forest. At each village, it has organized the most
vulnerable forest dependent people (50 – 70) into a
group called Village Forest Dependent Group
(VFDG) to provide technical and financial support
for alternative income generating activities and a
Village Forest Conservation Forum (VFCF)
involving the village leaders (including religious leaders) as well as representatives of the VFDG. SHED has shared the
concept of CMC and been maintaining liaison with the key stakeholders (Forest Department, Upazila Council, Union
Council) to form a CMC for the Inani PFA as soon as the Forest Department completes its project approval process. On
the other hand, the VFCFs are preparing to form an apex body (Peoples Forum) at the PFA level to take part in, and
cooperate 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 through
PRA exercises. For homestead vegetable cultivation, SHED has linked the farmers with the renowned seed company, Lal
Teer Seeds Ltd., which has supplied seeds of okra, pumpkin, bitter gourd, cucumber, red amaranth and beans to the
farmers. Training on homestead vegetable cultivation techniques has been given to the women members of the beneficiary
groups. It organized discussion meetings with local religious leaders (Imams) to make people aware about the need for
conservation of Inani PFA and subsequently the religious leaders have taken initiatives to disseminate this message during
the Friday (jumma) prayer in mosques.

7.2. Restoration and Conservation of Biodiversity in the Denuded Hills in Sitakunda and Mirsarai, Chittagong
This project covers 3,773 ha of denuded hills in Baraiyadhala (Sitakunda) and Mirsarai Ranges under Chittagong North
Forest Division. The implementing entity, YPSA, is working with 496 poor forest dependent families in 15 villages
surrounding the targeted forests, organizing them into 15 forest user groups (FUG). To reduce dependence of the project
participants on the forests (bamboo, fuel wood, sun grass, broom grass), YPSA is exploring alternative income generating
activities for them. With training and supply of quality seeds mobilized by YPSA from the reputed seed company, Lal Teer
Seed Ltd., the project participants have started cultivating various vegetables in their homesteads. The FUGs have started
raising 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 eight
villages in 2009 and also initiated the process in the remaining villages. The members of a VCC include the Chairman or
a Member of the Union Parishad, teachers, imam (religious leader), other community leaders and representatives of forest
user groups (FUG). The role of the VCC is to oversee natural resource utilization and management by the community
members and to plan and implement necessary policies and activities for participatory conservation and restoration of the
local forest and biodiversity resources. YPSA also conducted various awareness raising activities such as community
meetings, observance of internationally celebrated days of special significance for environmental conservation (e.g., World
Water Day) through rally, seminar, etc.

Annual Report 2009 27


7.3. Restoration and Conservation of Biodiversity in the Denuded Hills in Banskhali, Chittagong
Dhaka Ahsania Mission (DAM) is implementing this project in Sadahanpur Forest Beat (under Kalipur Range) and
surrounding 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 for
restoration intervention while a co-management system
shall be established for the entire Beat. DAM has
selected 780 poor forest dependent households from
three villages (Boilgaon, Banigram, Sadhanpur) around
Sadhanpur Forest Beat and has organized them into 26
groups (11 living inside and 15 outside the forest area)
for livelihood development program. Through
participatory analysis in group meetings, the FUG
members have identified a number of potential
alternative income generating activities (AIGA) and
some of them have already launched some of the
AIGAs viz. nursery business, sewing, beef fattening,
milk-cow rearing, mat making, pottery and popped rice
production. In the same way, they have also developed
a 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 UP
Chairman and Members, local elites and the FUG leaders. A baseline survey on 900 households has been completed to
understand the scoio-economic and existing biodiversity status of project area.

7.4. Restoration and Conservation of Biodiversity in Barind Dhamoirhat Sal Forest, Naogaon
This project aims to conserve the biodiversity of the Sal (Shorea robusta) forest at the Dhamoirhat Beat of Paikbanda Range
in Naogaon district by establishing a co-management system for the forest. The total area of Dhamurhat Beat is 1,260 ha but
most of it is now encroached and denuded. The project aims to conserve the still remaining 174 ha of well-stocked forest
and to bring another 80 ha of encroached forest land under participatory agro-forestry plantation. The implementation of
the 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 into
13 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. It
organized awareness raising meetings with different stakeholders to promote participatory conservation of the
Dhamoirhat Sal Forest and facilitated the formation of Community Patrolling Groups that are now protecting the forests
from illicit felling and removal of leaf litters from the forests during seeding season.

7.5. Restoration and Conservation of Biodiversity in Singra Sal Forest, Dinajpur


The target area of this project is the Singra Forest Beat (170 ha) in Birganj Upazila of Dinajpur district. The implementing
entity for the NGO component of the project, RDRS, has identified 1,815 forest dependent households in six villages
surrounding the targeted forest and has organized
them into eight groups (FUG). The FUGs sit in
regular monthly meetings and have started
collecting monthly savings from the participants
to develop a revolving fund to invest in small scale
businesses. RDRS has completed a baseline survey
of the biodiversity resources of the project area
(forest, homesteads) and socio-economic
conditions of the forest dependent communities.

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

The 26 private nurseries that started producing planting


materials of endangered indigenous species of trees in 2007
through Arannayk support are still producing and selling the
same and, thus, have become a source of planting materials
of such species to concerned individuals and organizations.
The awareness campaign made by the Arannayk Foundation
sponsored projects on homestead agroforestry and coastal
biodiversity conservation have created demands for those
species. On the other hand, by identifying the remaining
trees, developing propagation techniques, establishing seed
orchards and clonal hedges and distributing planting
materials to different organizations, IFESCU has saved two
endangered native species of the hill forests of Bangladesh
(Civil and Banspata) from extinction.

The revolving fund given to the networking bodies of the


project beneficiaries and the development of their
management capacities have created access of the poor
project participants to small, and generally interest-free,
loans for undertaking alternative income generation
opportunities. In homestead agroforestry and coastal
biodiversity projects, there are numerous examples that the
poor project participants, women in most cases, have been
able to earn an extra income of Tk 1,000 – 1,500 per month
using a loan of Tk 2,000 – Tk 5,000 in a few months time.
The most common income generating activities undertaken
by the project participants include vegetable cultivation in
homesteads, cultivation of rice and other crops in leased land, cattle rearing, goat rearing, poultry rearing, fish
cultivation, crab fattening, handicrafts production and small trading. The rate of repayment of the revolving loan is
above 95%. The revolving fund has also strengthened group cohesion towards sustainable institutional development
of the poor target beneficiaries. Moreover, it is contributing to conservation of endangered native species of trees
as the borrowers need to plant at least five endangered native trees in their own lands for every Tk 1,000 borrowed
as a conditionality of the loan from the revolving fund.

The five projects in the Chittagong Hill Tracts have strengthened the organizations of the indigenous communities
and their awareness and capacities 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 at district and Upazila level, civil society organizations and community leaders of all
three districts of the Chittagong Hill Tracts have become very supportive to the Arannayk initiatives on conservation
of the community conserved forests in the CHT. It is noteworthy that removal of stones (boulders) from hill slopes
and stream beds, which was a serious threat to soil and water conservation in one of the project sites in the
Chittagong Hill Tracts (Waggachara, Kaptai, Rangamati), has been totally stopped due to the community awareness
building activities of the project.

30 Arannayk Foundation
Review of
Arannayk's
Operations And
Strategic Plan
Evaluation Mission, 2008
An independent evaluation of the AF and the Tropical Forest Conservation Fund was carried out in late 2008 by the TFCA
Secretariat, Washington DC. The evaluation, made by a team of consultants headed by Dr. Kathleen Mikitin, focused on
whether the AF’s governance structures, operating framework and business practices would enable the Foundation to
achieve its objective of tropical forest conservation. The evaluators assessed the grant making procedures and financial
management system of the Arannayk Foundation as excellent. They, however, recommended certain actions to make the
governance 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 procedures
beyond 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 management
expertise.Prepare a written investment policy and engage a Fiscal Agent or alternatively an investment adviser to
review 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/or
empower 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, 2009


The AF’s first Strategic Plan was prepared in 2002 at about the same time as the National Biodiversity Strategy and Action
Plan (NBSAP) and reflecting the same priorities. AF Secretariat updated the strategic plan for 2010 - 2015 incorporating
certain new program areas viz., swamp forests and climate change response activities. The USAID Bangladesh
Environment Sector Assessment and Strategic Analysis Mission 2009 reviewed the draft of the updated Strategic Plan of
the AF and assessed it to remain consistent with the NBSAP and more clearly tied to climate change mitigation and
adaptation. The Team, however, recommended the following priority rankings for the different program areas proposed
in the AF Secretariat:
High Priority:
z Conservation of endangered flora and fauna
z Community based conservation of protected areas
z Conservation in degraded forests
z Community based forest conservation in the CHT
z Conservation of coastal and mangrove systems
z Conservation of inland wetland forests
z Monitoring and documentation
z Public awareness
Medium priority:
z Conservation in village forests and homesteads
z Emergency response to natural disaster induced damage to biodiversity.
z Human resources development
Low priority:
z Community based conservation of medicinal plants

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

32 Arannayk Foundation
Challenges
and
Plans for 2010
To materialize its vision, the Arannayk Foundation needs to scale up and diversify its program. According to its strategic
plan, it particularly needs to expand its program on protected areas. Moreover, it should also align its program (forest and
biodiversity conservation) with global and national climate change initiatives, especially to take the advantages of the CDM
and REDD facilities. The Foundation needs to strengthen collaboration with the USAID-funded IPAC project of the
Forest Department for the above purposes. It also needs to strengthen it efforts for the technical capacity development of
the staff of its project implementing entities and associated organizations. To scale up and sustain its program, the
Foundation will need to mobilize additional funds. As such the Foundation has to develop an effective fund raising strategy
and 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 IPAC
b. Assessment of current status and annual change in carbon stock in selected protected forest areas in collaboration
with IPAC
c. Improvement of livelihood of forest user groups in the co-managed protected forest areas in collaboration with IPAC
d. A package of communication interventions to promote fundraising and to create mass awareness in forest and
biodiversity conservation
e. Stakeholders’ capacity building for improved planning and implementation of forest and biodiversity conservation
projects through training and study visit.

34 Arannayk Foundation
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 in
accordance with international reporting standard that strives for excellence and transparency in financial reporting. All the
financial and human resources information of the foundation is managed through a web based Enterprise Resource
Planning (ERP) system at different cost centers. It helps in improving the program efficiency, enhancing management
decision-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 the
Arannayk Foundation are equipped with a simple Grant Management Software (GMS). The GMS keeps track of all the
grants 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 Government
and approved grants amounting to Tk 242 million for implementing its programs. The total amount of grants disbursed
to the implementing entities by the Foundation is Tk 55.52 million, out of which Tk 24.5 million has been disbursed in
2009.

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 related
Income and Expenditure Account and Cash Flows Statement for the year then ended. The preparation of
these financial statements is the responsibility of management. Our responsibility is to express an independent
opinion on these financial statements based on our audit.

We conducted our audit in accordance with Bangladesh Standards on Auditing (BSA). Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant 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 its
operations for the year then ended.

(A. WAHAB & CO.)


CHARTERED ACCOUNTANTS

36 Arannayk Foundation
ARANNAYK FOUNDATION
BALANCE SHEET AS AT JUNE 30, 2009

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

(A. WAHAB & CO. )


CHARTERED ACCOUNTANTS

Annual Report 2009 37


ARANNAYK FOUNDATION
INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED JUNE 30, 2009

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)

(A. WAHAB & CO. )


CHARTERED ACCOUNTANTS

38 Arannayk Foundation
ARANNAYK FOUNDATION
CASH FLOW STATEMENT
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

(A. WAHAB & CO. )


CHARTERED ACCOUNTANTS

Annual Report 2009 39

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