Woman handling money after making a sale at Sayun market. - - Conservation (Forestry Component): UTF/YEM/023. The project objectives cover a large range of activities: institution strengthening, watershed management, terracing rehabilitation, woodland management, nursery strengthening and expanding sand dune stabilization. Significant progress has already been made in their implementation. Institution strengthening has involved training professionals, meetings and contacts with didactic institutions, and technical on-the-job instruction. Watershed management has included preparing a management plan with methodologies for watershed surveys and planning, and implementing field activities. Terrace rehabilitation has the objective of rehabilitating degraded and abandoned terraces in order to prevent soil erosion and to reintroduce agricultural crop cultivation. The woodland management component of the project has prepared management plans, initiated tree planting, agro-forestry practices and maintenance of village nurseries. Existing nurseries have been strengthened, two new nurseries were established and public tree planting is under way. Sand dune stabilization activities include establishment of wind breaks, tree planting on wadi banks, study of sand movement and stabilization and rehabilitation of forest nurseries and flood control. These activities are mainly located in the southern governorates in the extreme dry zone, characterized by long droughts and sand dune encroachments. Very encouraging progress has been reported from Abyan, Lahj and Shabwa governorates, particularly in the establishment of wind breaks for individual farms and shelter belts as well as public tree planting and sand dune stabilization (20819-20868).