The value of the incremental production of timber, fuelwood, and
fodder generated from the investment activities at respective subprojects
comprise the benefits. Timber production was calculated based on harvested
volume (measured in cubic meters [m3] per ha per year) under specific
agro-ecological conditions. The volume of fuelwood and fodder was estimated
as biomass (kg/ha) produced and harvested intermittently. The
economic prices of timber were derived from cost, insurance and freight
(CIF) price in local currency adjusted for transport and handling costs; the shadow exchange rate factor was applied to the border price to revalue it
in terms of domestic price levels. The economic prices of nontradables were
derived from converting domestic financial prices (similarly adjusted for
taxes and duties) into border price equivalent, and were assumed to remain
constant in real terms (in 1996 constant values). The procedure
adopted by World Bank-funded Forest Resources Management Project
was used to estimate prices for wood, fuelwood, and poles. Estimated figures
are $104.70, $111.90 for border and domestic prices per m3 of wood,
respectively. Economic stumpage values for fuelwood, poles, and short
rotation sawlogs, are $40.19, $30.14, and $61.96 per m3 respectively.