MINSK, 25 June (BelTA) – Senior officials of the Belarusian Forestry Ministry and representatives of the World Bank have discussed ways to promote forestry services in Belarus, BelTA learned from the press service of the ministry.
On 24 June the parties discussed interaction with private businesses. According to First Deputy Forestry Minister Valentin Shatravko, the trade in services in the forestry sector is gaining ground. These services include assistance with timber harvesting and planting of forestry crops.
“This year we have signed our first contracts with businessmen for planting forestry crops. We are set to expand cooperation with the private sector and offer them other kinds of work. This is done all over the world and this form of cooperation has proved a success. At the same time, we realize that we need to approach this process cautiously taking care of all technicalities. For example, forest crops can be planted within a week, but the results of the work can be assessed only in half a year. Therefore, we need to come up with a mechanism to make sure contractors fulfill their commitments in full and in good faith,” he said.
Valentin Shatravko noted that the private sector has already taken the lead in timber export. Companies with private capital exported about 77% of Belarus' sawn wood in 2018. Enterprises affiliated with the Forestry Ministry accounted for 17% of export; companies of Bellesbumprom Concern and the Development Bank of Belarus accounted for the remaining 6%.
“At the meeting Valentin Shatravko emphasized that the ministry is interested in creating equal conditions for all investors who want to purchase raw materials. Procurement should be done via the Belarusian Universal Commodity Exchange, as it will help determine optimal market prices for raw materials. In his turn, Head of the World Bank Office in Belarus Alexander Kremer expressed interest in promoting cooperation with representatives of the private sector and using market mechanisms in the forestry industry,” the press service informed.
The World Bank representatives are on a visit to Belarus to review the implementation of the Forestry Development Project for Belarus. The specialists will study new program products in Belarus' forestry industry and will tour forestry companies to review the construction of forestry nurseries and assess the efficiency of using logging equipment. They will also take part in a seminar to discuss reforestation methods.
Belarus joined the World Bank in 1992. With a view to implementing the Forestry Development Project for Belarus, the International Bank for Reconstruction and Development provided an initial loan of $40.7 million, while the Global Environment Facility allocated a $2.7 million grant. In April 2018, the World Bank and the Belarusian Forestry Ministry signed an agreement on additional financing to the tune of €12 million. The objective of the project is to enhance silvicultural management and reforestation and afforestation, increase the use of felling residues, and improve the public good contribution from forests in targeted forest areas.
