TBI support model

TBI funding support structure

In order to achieve the most efficient use of its funds, translating in hectares of forest area SVLK and FSC certified per USD invested, The Borneo Initiative prioritizes forest enterprises that have a medium to large forest management area (>75,000 hectares).

The Borneo Initiative offers financial support to forest management enterprises on a USD 2 per hectare basis. This formula is capped at a maximum of USD 300,000, meaning that for forest enterprises with a forest management area of 150,000 hectares or larger, the maximum TBI contribution is USD 300,000.

The Borneo Initiative will consider offering financial support on a 3 USD/ha basis with a maximum of USD 150,000 per case for forest enterprises with an area of 35,000 – 75,000 hectares.

For forest enterprises smaller than 35,000 ha, a decision on a case by case basis will be made, or these are recommended to join a group certification scheme with an area of at least 35,000 ha.

In the table below, TBI’s funding modalities are presented:

TBI funding support procedures

The TBI support funds are released in instalments, based on the three phases of the TBI Support Model, i.e. The Scoping Phase, Certification Phase and Surveillance Phase, as follows:

For reasons of transparency and accountability, payments will not be made to the grantee but directly to the third party service providers concerned.

Cost items of forest management certification eligible for TBI support

Phase 1

Phase 2

Audit costs

Studies and trainings

Development of procedures and plans

Services of the certification coach

Any other Phase 2 costs resulting from the SVLK/PHPL or FSC pre-assessment can be reported by the forest enterprise, but can not be claimed from TBI, e.g.:

Phase 3

 

Any other costs in Phase 3 related to maintaining the SVLK/PHPL or FSC certificates can be reported by the forest enterprise, but can not be claimed from TBI, e.g.:

The above mentioned costs eligible for TBI support are a roughly estimated 50% of the total overall costs experienced by the forest enterprise to achieve (and maintain) SVLK and FSC forest management certification. The forest enterprise itself will be bearing the costs not supported by The Borneo Initiative. Furthermore, the Forest Enterprise usually provides logistical support to the activities of the Certification Coaches, Certification Bodies and Subject Matter Experts, which add to its share in total costs. In the TBI approach, the financial contributions of both The Borneo Initiative and the Forest Enterprise are specified in the Certification Action Plan, confirmed in the Finance Statement and verified through expenses reporting.

The Forest Enterprise is requested to show and report its costs through signed expense reports, with attachments such as cost statements, invoices, receipts, timesheets, etc.

The aim is to show an approximate 50-50% of total cost sharing between The Borneo Initiative and the Forest Enterprise, averaged over all activities and over the duration of the Support Agreement.

The 50-50% sharing of costs therefore does not necessarily apply to single activities in the Certification Action Plan, unless so decided by both parties.