Report Number: 24873

BOLIVIA

REMOVING OBSTACLES TO

DIRECT PRIVATE-SECTOR PARTICIPATION

IN IN SITU BIODIVERSITY CONSERVATION

GLOBAL ENVIRONMENT FACILITY MEDIUM-SIZED PROJECT BRIEF

PROMETA

May 2002

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LIST OF ACRONYMS

BPCG Bolivian Private Conservation Group

CBD Convention on Biological Diversity

CE Conservation Easement

FS Forestry Superintendency

GEF Global Environment Facility

INE National Institute of Statistics (Instituto Nacional de Estadistica)

INRA National Institute for Agrarian Reform (Institutto Nacional de ReformnaAgraria)

MSP Medium-Size Project

NHPR Natural Heritage Private Reserve

PPA Private Protected Area

PROMETA Protection of the Environment Tarija (Protecci6n del Medio Amlbiente TarUa)

SNAP National System of Protected Areas (Sisteina Nacional de Areas Protegidas)

SERNAP National Service of Protected Areas (Servicio Nacional de Areas Protegidas)

TCO Original Community Territory (Territorio Co,nunitario Original)

TABLE OF CONTENTS

PROJECT SUMMARY...........................................................................................................................................

1. PROJECT DESCRIPTION ............................................................................................................................

1.1. PROJECT RATIONALE AND OBJECTIVES ....................................................................................

1.2. CURRENT SITUATION ....................

1.3. PROJECT DESCRIPTION SUMMARY ........................................................................

1.4 SUSTAINABILITY ANALYSIS ............................................................................... .........................................

1.5. SSK ASSESSMENT .

1.6. STAKEHOLDER INVOLVEMENT AND SOCIAL ASSESSMENT .......... .................................

2. INCREMENTAL COST ASSESSMENT ......................................................................................................

3. PROJECT BUDGET .......................................................................................................................................

4. IMPLEMENTATION PLAN..........................................................................................................................

5. PUBLIC INVOLVEMENT PLAN.................................................................................................................

6. MONITORING AND EVALUATION PLAN .................................. ;

7. CHECKLIST....................................................................................................................................................

8. BIBLIOGRAPHY............................................................................................................................................

ANNEX 1: PROJECT LOGICAL FRAMEWORK.............................................................................................

ANNEX 2: PROJECT DESCRIPTION.................................................................................................................

ANNEX 3: DETAILED PROJECT BUDGET......................................................................................................

ANNEX 4: INCREMENTAL COST ANALYSIS................................................................................................

ANNEX 5: PROCUREMENT UNDER THE MEDIUM-SIZE PROJECT........................................................

ANNEX 6: PROGRESS REPORTS, DISBURSEMENTS, AND SPECIAL ACCOUNT.................................

ANNEX 7: ADDITIONAL INFORMATION ON THE MSP PROJECT PROPOSER....................................

ANNEX 8: INSTRUMENTS FOR IN SITU BIODIVERSITY CONSERVATION..........................................

ANNEX 9: EXISTING PRIVATE CONSERVATION AREAS IN BOLIVIA...................................................

ANNEX 10: SITE SELECTION CRITERIA........................................................................................................

ANNEX 11: STAKEHOLDER ASSESSMENT.....................................................................................................

ANNEX 12: COMPLEMENTARITY WITH OTHER GEF PROJECTS IN BOLIVIA.................................

ANNEX 13: LETTER OF ENDORSEMENT, BOLIVIAN GOVERNMENT.................................................

ANNEX 14: PRINCIPLES AND GUIDELINES FOR POPULATION ISSUES MANAGEMENT INPRIVATE PROTECTED AREAS IN BOLIVIA..........................................................................

TABLES

TABLE 1: INCREMENTAL COST MATRIX................................................................................................

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TA BLE 2: PR O JEC T BU D G ET........................................................................................................................

TABLE 3: IMPLEMENTATION PLAN..........................................................................................................

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PROJECT SUMMARY

PROjECT IDENTIFIERS

1. Project name: Removing Obstacles to Direct 2. GEF Implementing Agency: World BankPrivate-Sector Participation in In Situ BiodiversityConservation3. Country or countries in which the project is 4. Country eligibility:being implemented: Bolivia Bolivia ratified the Convention on Biological

Diversity (CBD) with Law No. 1580 in 1994.

5. GEF focal area(s): Biological Diversity 6. Operational program/Short-term measure:Forest ecosystems (OP3)Mountain ecosystems (OP4)

7. Project linkage to national priorities, action plans, and programs:The current project complements and is consistent with the program "Sustainability of the National Systemof Protected Areas" being undertaken by the GEF/World Bank in Bolivia in that it will a) promote anddisseminate instruments for private conservation, thereby helping to strengthen regulatory frameworks forbiodiversity conservation; b) improve representativity of Bolivian ecosystems under protection byidentifying under-represented areas within which to establish private protected areas and conservationeasements; and c) strengthen the management and sustainability of existing SNAP areas by identifyingbuffer-zone and corridor areas for private protected area and conservation easement establishment.

The present project will contribute to Bolivia's overall compliance with CBD obligations through thecreation of new protected areas and the development of incentives for the conservation and sustainable useof components of biodiversity. The project also contributes to the achievement of Agenda 21 objectives byencouraging local participation in environmental management.

Finally, this project will contribute to the Bolivian government's objective to "achieve the conservation ofBolivia's natural resource base" as stated in its five-year action plan 1997-2002 under the "opportunitypillar." This project is consistent with the following government strategies to achieve this objective:Biodiversity, forest, soil and water resources management, and the generation of political and technicalinstruments for environmental management.

8. GEF national operational focal point and date of country endorsement: Vice-Ministry of PublicInvestment and External Financing (VIPFE), endorsed July 25, 1994

PROJECT OBJECTIVES AND ACT[VITiES

1. Project rationale and objectives: Indicators:

Bolivia's biodiversity is threatened by the accelerated destruction of (see next page)habitats caused primarily by deforestation. This deforestation is theresult of activities such as the conversion of land to agriculture andcattle ranching, commercial logging, fires and human settlement inrural areas.

Existing regulations, incentives and capacities for in situ biodiversityconservation in Bolivia are limited in such a way that there is littledirect participation in biodiversity conservation by important sectorssuch as private landowners and NGOs. As a consequence, theBolivian government is left as the principal and virtually soleprotagonist, with the limitations that this situation entails formaximizing the overall impact and sustainability of nationalbiodiversity conservation efforts. For example, the government, dueto a number of constraints, is not able to purchase lands consideredhigh priority for biodiversity conservation, thus the vast majority ofthese lands remain in private hands. By introducing innovativeinstruments for private conservation, important lands could be

.~ _.__._......, :._., _ _._._:__.___ _r__.._.:_ _:_ _._.._:_

protected where the application of conventional instruments issocially and/or financially unfeasible. Also, by diversifying the Increased number of new andsocial actors directly involved, the risks of the "all eggs in one planned private conservationbasket" situation of biodiversity conservation in Bolivia will have initiatives in high-priority eco-been offset to some degree, in the case that the government does not regions.fulfill its obligations. The current project proposes alternativeconservation mechanisms that complement government efforts inorder to achieve greater results in biodiversity conservation. * Private protected areas show

more biodiversity as comparedto neighboring control sites.

The objective of this project is to facilitate the development ofprivate conservation initiatives that will contribute to globally-significant biodiversity conservation in high-priority eco-regions.This will be done through strengthening the regulatory andincentives framework, testing innovative conservation initiatives onfour pilot sites, strengthening the technical capacity of privatelandowners, and disseminating the lessons learned throughoutBolivia and Latin America.

10. Project outcomes: Indicators:i) Regulatory and incentive framework * Incentive proposals developed and discussed

strengthened* Practical "how to" guide distributed to pilot area

landowners, government agencies (SERNAP,INRA).

ii) Benefits of private conservation instruments * Four pilot areas createdand incentives demonstrated through thecreation and management of pilot areas.

iii) Landowners outside of pilot sites enabled andencouraged to participate in private * 100 landowners participating in Bolivianconservation Private Conservation Group meetings and

events, capacity building activities.

iv) Project impact maximized through the . Best practices identified and documenteddissemination of results in Bolivia anddissemination of results in Boliviaand * Information and project results disseminated toelsewhere in Latin America. national, international stakeholder groups and

target public audiences in Bolivia

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11. Project activities to achieve outcomes Indicators:(including cost in US$ of each component):

Component l: Regulatory and incentive frameworkTotal $ 111,150; GEF $46,0001.1. Create an enabling environment for PPA * Incentive proposals developed and discussed

conservation1.2. Analyze and develop an incentive framework. Practical "how to" guide distributed to pilot area1.3. Develop procedures for PPA creation and landowners, government agencies (SERNAP,

management plan formulation with SERNAP INRA).1.4. Develop procedures for NHPRs and

conservation easements. * Landowners provided TA for titling, land1.5. Summarize instruments, incentives and management, conflict resolution support, land

procedures for private conservation in a planning services, and enforcement of laws andpractical "how to" guide. regulations

Component 2: Creation and Management of PilotAreasTotal $ 594,250; GEF $323,850 * PPA and NHPR created and registered2.1. Negotiate agreements with pilot area owners2.2. Formulate management plans * 2 Management plans published and presented2.3. Implement management plans2.4. Formulate and implement financial * Easement contract drafted and signed

sustainability strategies2.5. Implement Conservation Easement * Titles to land within bi-national ecological2.6. Document pilot area experiences corridor transferred to PROMETA2.7. Participate in The Nature Conservancy's

Adopt-an-Acre Program

Component 3: Capacity Building for New 100 copies of revised practical "how to" guide,Initiatives other visual materials presented to ke,Total $ 291,050; GEF $225,000 landowners presented to key3.1. Identify new potential areas and key 100 landowners, NGOs, community groups

landowners3.2. Awareness building of landowners participating in group events3.3. Establish and implement "Bolivian Private * 10 requests for support fulfilled

Conservation Group3.4. Provide technical and legal support and training

to landowners

Component 4: Dissemination * Dissemination materials distributed to nationalTotal $ 96,350; GEF $85,150 and international stakeholders.4.1. Develop and publish dissemination materials4.2. Plan and implement dissemination campaign

12. Estimated budget (in US$):PDF: 40,000GEF: 680,000Co-financing: 412,800TOTAL: 1,132,800INFORMATION%ON INSTITUTION SUBMITTING PROJECT BRIEF13. Information on project proposer:PROMETA is a private, non-profit conservation organization (NGO) founded in 1990. PROMETA'sbiodiversity conservation strategy consists of the conservation of representative samples of different

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ecosystems through the management of protected areas. Its operational strategy consists of five programs:

* Protection and Surveillance* Support to Sustainable Production* Research* Environmental Education* Capacity Building of Local Organizations

PROMETA currently applies these programs to 4 protected areas in which it works: The Tariquia Flora andFauna National Reserve, Sama Biological Reserve, Aguaragiue National Park and the El Corbalan NaturalHeritage Private Reserve.14. Information on proposed executing agency (if different from above): Same as above.

15. Date of initial submission of project concept: October, 1999INFORMATION TO BE COMPLETED BY IPLEMENTiNG AGENCY16. Project identification number:

17. Implementing Agency contact person:Elizabeth Monosowski, Sr. Environmental Specialist, LCSES(Tel) 202-473-3292 Email: emonosowski(.worldbank.org

Karin Shepardson, Global Environment Coordinator,(Tel) 202-473-8954 Email: kshepardson(aXworldbank.org

18. Project linkage to Implementing Agency program(s):The current project complements and is consistent with the program "Sustainability of the National

System of Protected Areas" being undertaken by the GEF/World Bank in Bolivia. Annex 23 describes themajor areas of complementarity between the two projects. In addition, the project is consistent with theUNDP GEF enabling activity that focuses on capacity building and the formulation of a NationalBiodiversity Strategy and Action Plan through a fully participatory process that will include government,private sector, and NGOs.. The project could also benefit from outcomes and lessons learned from theUNEP regional project that aims to catalyze conservation action in Latin America through the identificationof priority s and best management practices. Efforts will be made to jointly share information and resultswith UNEP and UNDP during project implementation and ensure effective coordination.

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1. PROJECT DESCRIPTION

1.1. PROJECT RATIONALE AND OBJECTIVES

Existing regulations, incentives and capacities for in situ biodiversity conservation in Bolivia arelimited in such a way that there is little direct participation in biodiversity conservation byimportant sectors such as private landowners and NGOs. As a consequence, the Boliviangovernment is left as the principal and virtually sole protagonist, with the risks and limitations thatthis situation entails for maximizing the overall impact and sustainability of national biodiversityconservation efforts. For example, the government, due to a number of constraints, is not able topurchase lands considered high priority for biodiversity conservation, thus the vast majority of theselands remain in private hands. This constraint is significant considering that approximately 88percent of land in Bolivia is believed to be under private domain. By introducing new instrumentsfor private conservation, important lands could be protected where the application of conventionalinstruments is socially and/or financially unfeasible. Also, by diversifying the social actors directlyinvolved, the risks of the "all eggs in one basket" situation of biodiversity conservation in Boliviawill have been offset to some degree.

While the importance of government in biodiversity conservation cannot be underestimated, theexistence of the SNAP (National Protected Areas System) should not preclude the direct,independent participation of private landowners and NGOs. The current project proposesalternative conservation mechanisms that complement government efforts in order to achievegreater results in biodiversity conservation.

The objective of this project is to consolidate methodology, policy and innovative procedures inorder to facilitate and develop private conservation initiatives that will contribute to globally-significant biodiversity conservation in high-priority eco-regions.

Specifically, this project will establish and promote private reserves, protected areas andconservation easements in high-priority eco-regions. Private conservation instruments will bepromoted, financial incentives will be developed, pilot experiences will be carried out anddisseminated and technical capacities will be strengthened in an effort to remove the variousobstacles to direct private participation in biodiversity conservation.

The project is consistent with national and international priorities, and in particular complementsthe work of the SERNAP (National Protected Areas Service) by helping to strengthen the nationalregulatory framework, identify market-based financial sustaining mechanisms, fill gaps in the typesof ecosystems represented within the SNAP, and contribute to the development of buffer-zone andcorridor management strategies.

1.2. CURRENT SITUATION

Biodiversity

Bolivia, because of its topographical characteristics and its location within the neotropical zone,possesses extraordinary biological diversity. These physical characteristics result in both thepresence of globally-important flora and fauna and a variety of fragile ecosystems.

The territory of the Republic of Bolivia consists of fifteen distinct ecoregions. As published inDinerstein, et al. (A Conservation Assessment of the Terrestrial Ecoregions of Latin America andthe Caribbean, The World Bank, 1995), 9 of the 15 ecoregions of Bolivia are Level I, indicating thehighest priority for conservation, based on the distinctiveness of their biodiversity and overallconservation status. These Level I ecoregions cover approximately two-thirds of Bolivian territory.Similarly, Conservation International includes much of Bolivia in the "Tropical Andes" hotspot(which focuses on endemism and species diversity); this area is unmatched in the world.

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Bolivia's biodiversity is threatened by the accelerated destruction of habitats caused primarily bydeforestation. This deforestation is the result of activities such as the conversion of land toagriculture and cattle ranching, commercial logging, fires and human settlement in rural areas.

The Bolivian government has taken important steps to create a national framework for biodiversityconservation, including a regulatory framework consisting of an Environmental Law and aproposed Protected Areas Law; and conservation policies guided by "Parks with People" principles,such as participation mechanisms (co-administration of national protected areas with NGOs andlocal communities, management committees) and zoning inside areas to create categories ofresource use/conservation. Nevertheless, SERNAP only works in public protected areas, and doesnot have the capacity to expand its work to include private conservation areas.

Instruments for In Situ Biodiversity Conservation

While a number of instruments for in situ biodiversity conservation, both public and private, exist inBolivian legislation, an analysis of these instruments as they have been applied in practice revealsthat most have failed to significantly contribute to biodiversity conservation. The exception is theprotection of national areas carried out under the SNAP. The SNAP has identified 21 areas ofnational interest which protect 17 percent of Bolivian territory. Many of these areas are underactive administration, either by SERNAP directly or by a civil society organization by means of aco-administration agreement.

The following is an overview of existing instruments available to Bolivian landowners for privateconservation: (see Annex 8 for a detailed description of all instruments).

* Private protected areas (PPAs) are defined in the 1997 Protected Areas Regulation as "thosemanaged and financed voluntarily by private citizens or organizations." However, thisregulation was left with no implementation mechanism, and thus has never been applied inpractice. This instrument is developed further in the Protected Areas Law, which is beforeCongress and has been approved in a first instance.

* Conservation easements (CEs) are defined in Bolivian Civil Code and in the 1994 ForestryLaw, and can be interpreted to include the restriction of property rights for conservationpurposes. However, this instrument has not yet been put into practice.

* Natural heritage private reserves (NHPRs) are defined in the Forestry Law, and to date is themost viable instrument for private lands protection. There are several examples of thisinstrument in practice, however the effectiveness of this instrument is still uncertain due totechnical restrictions such as a maximum area of 5,000 hectares and 10-year minimum duration,insufficient to guarantee biodiversity conservation.

* Private areas can also be declared wildlife refuges by means of governmental Supreme Decree.Between 1975 and 1988, three such areas were created with limited success.

It must also be noted that land acquisition, while not an instrument per se, is a way for NGOs tocarry out conservation on private lands. Land is either donated to or purchased by a non-profitorganization (Land Trust), which then assumes the responsibility for the land's protection.

Obstacles to Private Conservation

The following obstacles to the development of private conservation initiatives in Bolivia have beenidentified and will be targeted by this project:

* Under-developed instruments and incentives for private conservation. Procedures for thecreation of private protected areas and conservation easements have not been produced, norhave the institutional arrangements that will eventually coordinate performance monitoring andother such functions been finalized. Incentives that make private conservation aneconomically-feasible alternative to unsustainable land development, such as technical

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assistance, tax exemptions, payment for environmental services and ecologically-soundbusiness ventures, are successfully being applied in other Latin American countries, but littlework has been done in Bolivia to develop feasible incentives.

* Land titling issues: At present, the land tenancy situation in parts of the Bolivia territory isuncertain; however, the 1996 land reform law is currently being implemented and the processof granting private land titles is planned to be completed in 2006. Land titling processes mustbe actively promoted and supported by working with INRA to provide technical and legalassistance for land titling.

* Lack of experiences with private conservation instruments and incentives. Some legal andtechnical instruments available to landowners have not been applied in practice, nor havefinancial incentives. As a result, best practices have yet to be identified and disseminated, andreplicable models of private environmental management are lacking.

* Interested private landowners lack the necessary information, capacities and contacts tosuccessfully participate in biodiversity conservation. Previous and current experiences withprivate conservation indicate a high level of interest among landowners to participate inconservation, however most landowners are reluctant to make long-term or permanentmodifications to their property rights without first being sufficiently informed and trained inenvironmental management, monitoring, planning and sustainability.

* Lack of dissemination of the regulatory and incentive frameworks for enhanced participation ofprivate landowners and NGOs in biodiversity conservation. Private landowners are not familiarwith the legal instruments and incentives for private conservation in the Bolivian regulatoryframework, and as a result their effective implementation is impeded.

An analysis of previous attempts at private conservation in Bolivia reveals that nearly all werecarried out in an improvised fashion, and encountered one or more of the above obstacles whichdiminished their effectiveness.

Consistency with National Biodiversity Conservation Plans and Obligations

The GEF has approved the first phase of a program aimed at consolidating the SNAP's corefunctions so as to achieve the system's long-term management and sustainability. The currentproject is consistent with this program in that it will a) promote and disseminate instruments forprivate conservation, thereby helping to strengthen regulatory frameworks for biodiversityconservation; b) improve representation of Bolivian ecosystems under protection by identifyingunder-represented areas within which to establish private protected areas and conservationeasements; and c) strengthen the management and sustainability of existing SNAP areas byidentifying buffer-zone and corridor areas for private protected area and conservation easementestablishment (see Annex 12 for more information).

Bolivia is signatory to the Convention on Biological Diversity (CBD) since 1994, making it eligiblefor GEF financing. The relevant GEF operating programs for this project are forest and mountainecosystems, OP4 and OP3, focusing on the Andean, Amazon and Chaco regions.

The present project will contribute to Bolivia's overall compliance with CBD obligations throughthe creation of new protected areas and the development of incentives for the conservation andsustainable use of components of biodiversity. The project also contributes to the achievement ofAgenda 21 objectives by encouraging local participation in environmental management.

This project will contribute to the Bolivian government's objective to "achieve the conservation ofBolivia's natural resource base" as stated in its five-year action plan under the "opportunity pillar."This project is consistent with the following government strategies to achieve this objective:Biodiversity, forest, soil and water resources management, and the generation of political andtechnical instruments for environmental management.

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1.3. PROJECT DESCRIPTION SUMMARY

(See Annex 2 for a detailed description of components and activities)

The objective of the project is to consolidate methodology, policy and innovative procedures inorder to facilitate and develop private conservation initiatives that will contribute to globally-significant biodiversity conservation in high-priority ecoregions. The project proposes analternative course of action over a three-year period which will produce the following fouroutcomes: i.) Regulatory and incentive framework strengthened; ii) Benefits of privateconservation instruments and incentives demonstrated in four pilot areas; iii) Landowners outsideof pilot sites enabled and encouraged to participate in private conservation; and iv) Project impactmaximized through the dissemination of results in Bolivia and elsewhere in Latin America.

In order to produce the above outcomes, the following four project components will beimplemented:

1. Regulatory and Incentive Framework. The objective of this component is to strengthen theregulatory and incentive frameworks for private conservation. Total cost $ 111,150; GEF cost$46,000.

Activities:1. 1. Create an enabling environment for private landowners to conserve biodiversity

through provision of legal assistance for land titling, technical assistance for landmanagement, support in conflict resolution, land planning services, enforcementstrategies and feasibility.

1.2 Analyze and develop incentives, such as: user fees, payment structures forenvironmental services, direct payment for impact mitigation activities, access todonations, market access for managed biodiversity products.

1.2. Develop procedures for PPA creation and management plan formulation withSERNAP: Formulate technical and legal directives to accompany the PPA Regulation.

1.3. Develop procedures for NHPRs and conservation easements: Review procedures forthe creation of NTHPRs and Conservation Easements (CEs); adapt SERNAP methodo-logy for monitoring plans.

1.4. Summarize instruments, incentives and procedures for private conservation in apractical "how to" guide.

2. Pilot Areas Creation and Management: The objective of this component is to demonstrate thebenefits of private conservation instruments and incentives through pilot area experiences. Fourpilot areas will be included as described below. Total cost $ 594,250; GEF cost $323,850.

Pilot Area I will constitute Bolivia's first Private Protected Area (PPA), the 5,000-hectare "ElCorbalan" Reserve located in the Bolivian Chaco. The area is property of the proponentorganization PROMETA, who will manage the land throughout the project. This experiencewill demonstrate the conversion of a Natural Heritage Private Reserve (NHPR) to a PPA, andwill test policies and methodologies for management plan formulation and implementation,monitoring, and the application of incentives.

Pilot Area II will be an existing NHPR in the Chiquitano Forest in eastern Bolivia, and willdisseminate policies for NHPR creation (based on past experience), management planformulation and implementation, the use of financial incentives and the provision of technicalassistance.

Pilot Area III will demonstrate the creation of Bolivia's first Conservation Easement on a"Tahuamanu" Brazil Nut-producing property, located in the Southwest Amazonian MoistForest ecoregion in northwestern Bolivia. The experience will be disseminated nationally, and

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in particular to the more than 35 landowners of 150,000 hectares of similar Brazil Nutproperties.

Finally, Pilot Area IV will demonstrate the process of purchasing and managing land forconservation. In the Adopt-an-Acre program of The Nature Conservancy, funds raised fromacross the United States are donated to an NGO in another country for the purchase andmanagement of land. For the project, PROMETA's acquisition experiences with the 2,500-hectare "Alarachi" property will be systemized and disseminated (GEF funds will not be usedfor land acquisition). The property forms part of the Andean Yungas "Tariquia-Baritu"International Ecological Corridor which links the Tariquia Flora and Fauna National Reserve inBolivia to Baritu National Park in Argentina.

Activities:2.1. Negotiate agreements with owners of pilot areas2.2. Formulate management plans - Areas I, II and IV2.3. Implement management plans - Areas I, II and IV2.4. Formulate and implement financial sustainability strategies - Areas I to IV2.5. Implement Conservation Easement - Area III2.6. Document pilot area experiences - Areas I to IV2.7. Participate in Adopt-An-Acre Program - Area IV

3. Capacity Building for New Initiatives: The objective of this component is to encourage andenable landowners outside of pilot sites to participate in private conservation. Total cost$291,050; GEF cost $225,000.

Activities:3.1. Identify new potential areas and key landowners3.2. Awareness building of landowners3.3. Establish and implement "Bolivian Private Conservation Group"3.4. Provide technical and legal support and training to landowners

4. Dissemination: Project results will be documented and disseminated to project stakeholders,national and international NGOs, national and local authorities, and academic institutionsthrough workshops, participation in events, communications over the Internet and by mail, etc.Project results will also form part of a broader dissemination campaign in Bolivia targeting thepublic in general in and around key protected areas. Total cost $ 96,350; GEF cost $85,150.

Activities:4.1. Develop and publish dissemination materials4.2. Plan and implement dissemination campaign

The sum total of these components and outcomes represents the application of an overall strategy toremove the legal, institutional, financial and technical obstacles to the successful implementation ofprivate conservation instruments. For the project, the proponent organization PROMETA isenlisting the support of The Nature Conservancy, of which PROMETA has been a partner since1994, and will ally itself strategically with private lands practitioners in other Latin Americancountries, such as the team at Pronatura in Mexico who are working on a similar GEF project.

The immediate, direct environmental benefits resulting from the proposed alternative course ofaction will be derived almost entirely from the implementation of the pilot areas. Basic protectionactivities will be implemented to reduce existing threats to biodiversity, and complementary

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programs will be implemented to build capacity and sustainability, address the root causes ofexisting threats, and to involve local communities or populations in the areas' management.

The expected long-term impact of the project is a measurable improvement in conservation ofglobally-important biodiversity over and above that achieved by the management of publicprotected areas in Bolivia. At the same time, the effectiveness of the public system will beenhanced through synergies with the private sector. The strong replication and leveraging potentialof this project will help to generate these long-term global benefits.

1.4. SUSTAINABILITY ANALYSIS

Project sustainability mechanisms, listed below, are aimed at strengthening the project'senvironmental, financial and social sustainability.

Environmental Sustainability

PDF activities included the application of specific criteria to identify the environmental impacts ofproject activities in an effort to maximize environmental sustainability. These criteria include theincorporation of World Bank safeguard issues in the project's regulatory work and in its pilot areaactivities. In overall terms, the project falls under Category C, as it will contribute to achievingenvironmental objectives without causing negative impacts.

Long-term environmental sustainability will be derived from the activities of landowners whobecome involved in private conservation as a result of project activities. By disseminatinginformation and building capacities, the expectation is that new PPAs, NHPRs and CEs will becreated and managed, thereby contributing to biodiversity conservation. An indicator of this impactduring project execution will be the number of landowners participating in capacity buildingactivities, inquiries, requests for assistance, and expressions of interest and intent.

Financial Sustainability

The project's financial sustainability is addressed at two levels: The sustainability of pilot areas,and the sustainability of new and planned private conservation initiatives. Pilot area financialsustainability plans will be formulated and implemented at each pilot site. These plans will includethe development of long-term financial plans and the application of incentives. At the second level,the BPCG will continue to promote the further development of private conservation in Bolivia. Thegroup will undergo a long-term financial planning process as part of project activities.

Social Sustainability

Stakeholder participation during the project will take place by means of the Bolivian PrivateConservation Group, and the Technical Advisory Committee. After the project, the BPCG willensure social sustainability by maintaining the participation of NGOs, landowners, landownerorganizations, SERNAP, experts and other interested parties in the further development of privateconservation.

At the local level, the implementation of the four pilot areas will take into account the involvementof neighboring communities. Consultations will be carried out with these communities during themanagement plan formulation process, and mechanisms will be incorporated into these plans toensure local participation in their implementation.

There will be no displacement of populations in the implementation of this project. Nevertheless, aprocess framework has been developed to address potential livelihood issues related to newlyimposed restrictions, if any, on access to natural resources by local people in the pilot privateprotected areas (see annex 14). A refinement of this framework, including issues related topotential displacement of people, will be addressed as an integral part of the project's scope andcontent. This will include the analysis of the legal framework, the characterization of proprietary,

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customary and traditional rights, and the identification of potential mitigation/compensationmeasures that could be applied in the specific case of private protected areas.

Although protection of archaeological heritage has been one of the criteria for the selection of sitesnone of the selected pilot areas is known for hosting significant archeological assets,. In casecultural property is discovered that may be located inside or adjacent to the private protected areas,it will be treated in a manner consistent with the project's conservation goals and Bank guidelines(OPN 11.03).

1.5. RISK ASSESSMENT

In analyzing project risks, it was found that they are either legal/political, social or environmental innature. These risks are listed in accordance with the project's hierarchy of objectives and reflect theproject's critical assumptions as follows:

Risk I Mitigation Measures...... ...... ......... ... .... . ............. ... ..... ....... .... ................... .............. .......... ... .... .... ......... -- -- --........ ..... ...... ..... ..... .... .... . ........................................ iFrom Objective to Purpose.-

Legal/Political -Government no longer prioritizes Project promotes public awarenessenvironmental issues, or prioritizes them to a lesser extent. of environmental issues.

'Social -Biodiversity conservation interferes with the Social assessments considersatisfaction of basic social necessities in rural areas. natural resource dependency.

'Environmental -Threats to biodiversity increase significantly. PPAs to complement SNAP areas.

....... . ......I. .. .. .. ... .. ..... ... . . ... . .. ..... ........ .. ......... .. ... .. ............. ........ .. ......... .. ... .. ........... ...'From Outcomes to Objective.-Legal/Political -Government does not enforce policies; land Policy analysis to study enforce-;titling process too complicated and expensive; instruments and ment strategies and feasibility;incentives do not receive offical support. ! landowners given instructions and

tips for land titling procedures.

Social -Land right and land use conflicts intensify.. Private land conservation detersillegal settlements.

From Components to Outcomnes.I Discussions with landowners

Social -Landowners not interested in participating in project 1 emphasize benefits of policies;activities. create enabling environment and

incentives for participation in:i activities.

1.6. STAKEHOLDER INVOLVEMENT AND SOCIAL ASSESSMENT

Project Formulation Process

During the project design process (PDF), stakeholder involvement first took place through theconsultation workshop ("Formulation of Policies for Private Conservation in Bolivia" - Sept. 14-15,2000), in which policies for private conservation were suggested and agreed upon and actions wereidentified to "put the policies into practice." These consensus-based actions have been incorporatedas GEF project activities. In this workshop, stakeholders were presented with the GEF project ideaand their participation was solicited for future project implementation.

Participation During the Project

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The selection and implementation of Pilot Areas will be made from identified groups and individualstakeholders, and all potential participants in private conservation will be invited to participate inthe project's Initiative Development Activities including the BPCG. The participation of theowner/managers of Pilot Areas I, II and III in dissemination and capacity building activities basedon their pilot experiences will be required. Among potential stakeholders the project will attempt tochannel public interest into new initiatives, creating a pattern for public participation to be sustainedafter the project's conclusion. Finally, a Technical Advisory Committee will be formed in order tochannel stakeholder input into project management (see Section 5 for more details on stakeholderidentfication and participation, and Annexes 9 & 10 for landowner and site selection information).

Social Assessment

The project considers two major social groups: Small and large landowners. Given the scale of thepresent project, activities are not expected to have significant negative social impacts on eithergroup. In no case is relocation of families or communities expected to be carried out under theproject. If it is seen during project execution that some relocation of communities is required,project activities will be halted in that area. Any restrictions on natural resource use will bevoluntarily imposed by landowners. Local communities will be invited to participate in theplanning processes carried out in private protected areas and conservation easemcnts in an effort toensure a fair distribution of benefits.

During project preparation, stakeholder assessment was carried out, and a full social assessment isplanned as part of the preparation of management plans for each pilot area. Each group ofstakeholders and potential stakeholders was assessed in terms of its interest in, need for, andposition concerning natural resource use and biodiversity. The groups included in the assessmentwere campesinos, indigenous groups, large-scale cattle ranchers, large-scale farmers, non-activelandowners, NGOs and govemment. This assessment is summarized in Annex 11.

2. INCREMENTAL COST ASSESSMENT

The cost of the project represents the alternative scenario by means of which global environmentalbenefits will be produced in the form of conservation of globally-significant biodiversity, beyondthose benefits which would be achieved in the absence of the alternative scenario. The baselineconsists of limited efforts to strengthen the regulatory and incentive framework, the ongoing privateconservation efforts of landowners in NHPRs and other properties, the management of SNAP areasnear these existing areas, initiative development efforts, and other dissemination activities. Thematrix below shows the costs of the baseline as being $2,010,000, and the alternative scenario$3,102,800. (See Annex 4 for more information on baseline activities and incremental costs.)

Table 1. Incremental Cost Matrix

Component Cost Category Cost US$ 'Global Benefit

1. Regulatory and Incentive Baseline 70,000 Procedures defined for creating and managingFrameworks private conservation areas.

GEF Alternative 181,150 Procedures and incentives in place and validated forcreating and managing private conservation areas.

Incremental 111,1502. Pilot Area and Land Baseline 1,700,000 Landowners and NGOs of existing NHPRs manage

Acquisition Demonstrations . land in an improvised fashion without measuringAcquisition Demonstrations ~~~~~results

GEF Altemative 2,294,250 Best practices identified to improve managementand measure results on existing and newconservation areas

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Incremental 594,250

3. Initiative Development Baseline 90,000 Private conservation strategies formulated

GEF Alternative 381,050 Private conservation strategies and tools formulated,discussed, tested and applied

Incremental 291,050

4. Dissemination Baseline 150,000 SERNAP somewhat aware of legal tools for privateconservation. Landowners unaware of possibilitiesfor conservation.

GEF Alternative 246,350 Landowners given information to replicate pilotexperiences and to apply legal tools and incentives

SERNAP fully aware, supportive of legal tools forprivate conservation

Incremental 96,350

TOTAL Baseline 2,010,000 Lands rich in biodiversity used for unsustainableproductive purposes

FGEF Alternative 3,102,800 Some landowners take advantage of legal tools andincentives to carry out conservation instead ofproduction

I Incremental 1,092,800

2.4. AVAILABILITY OF CO-FINANCING

In addition to $680,000 GEF financing, cash and in-kind co-financing for the project will besecured in the amount of $280,000 from other sources, and $132,800 from the proponentorganization PROMETA. Co-financing commitments are secured as follows:

The Nature Conservancy $150,000 cashUSAID Bolivia $15,000 cashTinker Foundation $75,000 cashPilot Area Owners $40.000 in-kindTotal, Other Sources $280,000

Summary:GEF $680,000PROMETA. $132,800Other $280,000TOTAL $1,092,800

3. PROJECT BUDGET

Table 2. Project Budget (See Annex 3 for detailed budget)

Component X- 0E 1 v O ier sources Project totalPDF: 25,000 15,000 40,000Consultants 280,000 58,000 338,000Works 0 40,000 40,000Goods 150,000 40,000 190,000Services 190,000 124,800 314,800Sub-projects (Land Acquisition) 0 150,000 150,000 IContingencies 60,000 0 60,000

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Project total (PDF + project costs): 705,000 427,800 1,132,800

4. IMPLEMENTATION PLAN

Following the first disbursement of funds, a project management unit (PMU) will been establishedand the project team hired. This team will consist of a project manager, two technical personnel, anenvironmental lawyer and a project assistant.

Project management will include planning, periodic internal reporting and reviews, and externalevaluations at mid-term and project conclusion. Annual operating plans will be the basis for theteam's work, and interval performance indicators will be developed to guarantee fulfillment ofproject objectives. The PMU will be integrated to the greatest extent possible into PROMETA'sexisting structure.

The project's Technical Advisory Committee will initially consist of six members, includingrepresentatives from: PROMETA, SERNAP, The Nature Conservancy, a Bolivian NGO, localcommunities and private landowners. The committee will review annual reports and operatingplans, and provide input on ways to improve project outcomes. The committee will meet at leasttwice a year over the life of the project.

Project accounting will be carried out according to PROMETA's internal system, processes andstructure, which meet the requirements of World Bank OP 10.02. (see Attachment I for moreinformation). Procurement and contracting under the project will be also be managed according toWorld Bank guidelines. PROMETA's internal procurement and contracting procedures will beapplied whenever these are consistent with the World Bank's policies (see Attachment 2 for moredetails on procurement).

Project activities will be carried out in accordance with the schedule of activities presented below:(For additional information on project activity implementation, see Annex 2)

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Table 3. Schedule of Activities

1 2 3 4 5 6 7 8 9 1O 112 13114115 16117181981120 21 2223124125126 27128129130131 32 33 341 35 36COMPONENT 1 - REGULATORY & INCENTIVE FRAMEWORK

1,1. Create enabling environment for private conservation _ -

1.2. Analyze and formulate incentives X X X X X X _

1.3. Develop procedures for PPAs w/ SERNAP X X X1.4. Develop procedures for NHPRs and cons. easements X X X _ _ __

1.S. Summarize inst, incent, and proc. in a "how to' guide I X X XCOMPONENT 2 - CREATION & MGMT OF PILOT AREAS

2.1. Negotiate agreements with owners of pilot areas X X X X XX 2.2. Formulate management plans I and II X X X X X X X X X X X X X X X

Area I x x x x x x x x x I I IArea H_ x x x x x x x x x _

2.3. Implement management plans In pilot areas I and I X XX X XX X X X X X X X X X X X X X X X X XX X XX X X X Area I x x x x x x x x x x x x x x x x x x x x x x x xArea 11 x x x x x x x x x x x x x xI x I x x x

2.4. Formulate and implement financial sustainability strategies X X X X X X X X X X X X X X X X X X X X I X X X X 2.5. Implement and monitor pilot area III _ x X XXXXX X X X X X X X X I X I X X x lXlX |2.6. Test "how-to' guide and document pilot area experiences X X X X XI X2.6.1. Revise practical "howto'guide x x x I2.6.2. Produce final pilot area report X XI X2.7. Participate in Adopt-an-Acre Program Xlx X X X X X X X X X X __

2.7.1. Complete staesof acquisition process x x x x x x x x x x x x2.7.2. Document and disseminate as case study to NGOs X X X X X IX X X X IX X X X X

OMPONENT 3 - CAPACITY BUILDING FOR NEWINMATIVES _

3.1. dentify new potential areas and key landowners X X X X X X3.2. Awareness building of landowners X X X X X X X X X3.2.1. Desiqn and publlsh vual materials X X X

3.2.2. Presentations to key landowners X X X X X X3.3. Establish, implement BPCG X X X X X X X X X X Xl X X X X |XXX3.3.1. Conform group and plan activities X X X I3.3.2. Recruit "visiting" members X X X X X X3.3.3. Canryoutnetworkingevents. xx x x x x x x x ,x x xxx x3.4. Provide technical and legal support, training to landowners X X X X X -X X I X X X X X3.4.1. Legal workshops X X3.4.2. Technical workshops X X3.4.3. Financial workshops X X

3.4.4. Ongoingsupport X X X X X X X X X XCOMPONENT 4 - DISSEMINATION

4.1. Develop and publish dissemination materials X X X X XX4.2. Plan and implement dissemination campaign _ X X XX X|X XX

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5. PUBLIC INVOLVEMENT PLAN

Stakeholder Identification

The project is designed to directly involve sectors of the public in each of its components throughout its three-year duration. Direct stakeholders in theproject are considered to be those groups and individuals that will have benefited directly from project activities. They include: Owners/managers ofproject Pilot Areas; participants in the project's private conservation initiative development activities; target audiences for the project disseminationcampaign; SERNAP; and national and international conservation NGOs.

The identification of stakeholders was partially carried out as part of PDF A activities, and will be completed with more detailed profile informationduring the project through Activity 2.1. (Owners/managers of project Pilot Areas), Activity 3.1. (potential participants in private conservation), and4.2. (target audiences for the project dissemination campaign). Stakeholders and other participants will be drawn from the following groups: Large-scale cattle ranchers, large-scale farmers, campesinos, indigenous groups, landowners involved in other activities (forestry, ecotourism) and non-activelandowners (those with non-active purchased or inherited properties). Target audiences for the dissemination campaign will include all projectstakeholders as well as the public in general in and around key protected areas.

Participation in Project Activities

The selection and implementation of Pilot Areas will be made from members of groups and individuals identified in Activities 2.1. and 3. 1., and allwill be invited to participate in the project's initiative development Activities. The participation of the owner/managers of Pilot Areas 1, 11 and III indissemination and capacity building activities based on their pilot experiences will be required. Those who agree to participate in initiativedevelopment activities will take part in the BPCG, in project workshops and dissemination activities. Members of the Technical Advisory Committeewill participate in annual planning and evaluation meetings.

6. MONITORING AND EVALUATION PLAN

The principal mechanism for project monitoring and evaluation will be an annual planning and review process which will result in the preparation ofAnnual Operating Plans. Activities will be planned in months 12 and 24 in accordance with the Project Implementation Plan and project progress inprior periods. Planning activities in months 12 and 24 will occur in coordination with evaluations of the project's advancement during the 12 previousmonths, so as to incorporate the results of M&E into project management.

Project data collection and reporting will draw from the documents resulting from project activities (training materials, legal documents, etc.), as wellas internal reports, a mid-term progress report and an external final report at the end of year 3.

Internal reviews are scheduled for months 12 and 24. These reviews will consist of the presentation of year-end project monitoring reports to theProject Coordinator and to the Technical Advisory Committee. External evaluations will be carried out at mid-tern and at the end of the project.

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The project's system for Monitoring and Evaluation has been designed such that project results feed back into the management of the project. Annualmonitoring reports will be inputs for the formulation of operating plans. Once annual reports have been reviewed by the technical advisorycommittee, recommendations will be incorporated into the programming of activities. In some cases subsequent activities may need to be adjusted,and in other cases it may be necessary to include corrective activities. In both cases this process must be carried out within the context of projectoutcomes and objectives in order to maintain project coherence.

A baseline assessment of biodiversity was conducted for the selection of the pilot areas. Changes will be monitored during project implementation aspart of the updating of the Annual Operating Plans.

7. CHECKLIST

Project Activity Categories: BIODIVERSITYProtected area zoning/management XBuffer zone development XInventory/monitoring XEcotourism XAgro-biodiversity XBenefit-sharing X

Technical Categories:Institution building XInvestments XPolicy Advice XTargeted researchTechnical/management advice XTechnology transfer XAwareness/information/training X

8. BIBLIOGRAPHY

1. CBD Secretariat, 2000. Sustaining Life on Earth: How the CBD Promotes Nature and Human Well-being. Montreal.

2. CODEFF 1999. Las Areas Silvestres Protegidas Privadas en Chile: Una herramienta para la Conservaci6n. Santiago de Chile. 102 pages.

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3. Dinerstein E., et. al., 1995. A Conservation Assessment of the Terrestrial Ecoregions of Latin America and the Caribbean, The World Bank (inassociation with the World Wildlife Fund). Washington, D.C. 130 pages.

4. Martinez, Jose A. (ed.), 2000. Atlas: Territorios Indigenas en Bolivia, CPTI-CIDOB. Santa Cruz. 264 pages.

5. Ministry of Sustainable Development and Planning, 2000. Estrategia Nacional de Conservaci6n y Uso Sostenible de la Biodiversidady Plan deAcci6n. La Paz. 67 pages.

6. Ministry of Sustainable Development and Planning, 2000. Informaci6n tecnica del Sistema Nacional de Areas Protegidas de Bolivia. La Paz.160 pages.

7. Piskulich, Z., 2001. El Manejo y Conservaci6n de Tierras Privadas: Una Guia para las Organizaciones. The Nature Conservancy, Arlington,VA. 38 pages.

8. PROMETA, 2001. Areas Protegidas Departamentales, Municipales y Privadas en Bolivia: Formulaci6n de Politicas para su Creaci6n y Gesti6n.La Paz. 200 pages.

9. Pronatura, 2001. Private Land Mechanisms for Biodiversity Conservation in Mexico. Mexico. 43 pages.

10. World Bank, 2000. Bolivia: Sustainability of the National System of Protected Areas. Project Appraisal Document. 98 pages.

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ANNEX 1: PROJECT LOGICAL FRAMEWORK

Hierarchy of Objectives Key Performance Indicators Monitoring and Evaluation Critical AssumptionsCAS Goal

Promote rural/agricultural sustainable * Increased effectiveness of e Area monitoring reports / ;development and protection of natural resources in biodiversity conservation in private , ., /

Bolivia through the increase of protected areas conservation areas in high-priority ,f ' - v f iwith adequate on-site management to improve ecoregions and/or around SNAP ; /environmental quality. areas. = X,

GEF Goal . ...

Promoting and integrating sustainable biodiversity 'V/J/' / - "-'' ' i

conservation through integrated ecosystem .. '1''

management (OP 1 2), with special focus on ,, // , ,' .-

mountain and forest ecosystems in the Andean,Amazon and Chaco ecosystems (OP4 and OP3) -. J.-..Y,A/ 7

Development Objective * Govemment continues to prioritize

Consolidate methodology, policy and innovative * Increased number of new and * Letters of intent, inquiries, environmental issuesprocedures to facilitate and develop private planned private conservation registration documentation. * Threats to biodiversity do notconservation initiatives that contribute to initiatives in high-priority ecoregions. increase significantlybiodiversity conservation in high-priorityecoregions. * Biodiversity conservation does not

preclude the satisfaction of basicsocial necessities.

Project Outcomes

Component 1: Regulatory and IncentiveFramework

Regulatory and incentive frameworks * Incentive proposals developed and * Project reportsstrengthened discussed * "How to" guide document * Government enforces environmental

* Practical "how to" guide distributed * Government continues to carry outto pilot area landowners, government land titling process under INRAagencies (SERNAP, INRA).

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Component 2: Pilot Area and Land AcquisitionDemonstrations

Benefits of private conservation instruments * PPA and NHPR created and * Legal documents, technical reportsand incentives demonstrated through the registered * Plan documents * Land right/use conflicts do notcreation and management of 4 pilot areas. worsen

* 2 Management plans published andpresented * Case study document

* Easement contract drafted and signed * Project report

* Titles to land within bi-nationalecological corridor transferred toPROMETA

Component 3: Initiative Development

* Landowners outside of pilot sites enabled and * 50 new potential areas and key * Technical map * Instruments and incentives receiveencouraged to participate in private landowners identified official supportconservation * Bolivian Private Conservation Group * Meeting minutes, event records

formed and functioningWorkshop reports

Component 4: Dissemination

* Project impact maximized through the * Best practices identified and * Dissemination materialsdissemination of results in Bolivia and documentedelsewhere in Latin America * Infonmation and project results

disseminated to national,intemational stakeholder groups andtarget public audiences in Bolivia

Outputs from each Component

Component 1: Regulatory and IncentiveFramework* Incentives fine-tuned and promoted * Incentive proposals developed and * Proposal documents* Creation and implementation procedures for discussed * Technical and legal directive

PPAs and CEs discussed with SERNAP documents* Institutional arrangements PPA and CE * Practical "how to" guide distributed * Guide document

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creation and monitoring presented to judicial to pilot area landowners, govemmentofficials agencies (SERNAP, INRA).

* Instruments, incentives and proceduresdocumented

Component 2: Pilot Area and Land AcquisitionDemonstrations* Four pilot areas created * PPA and NHPR created and * Registration documents

registered* Management and financial sustainability * 2 Management plans published and * Plan documents * Landowners interested in

strategies formulated and implemented presented participating in project activitiesEasement contract drafted and * Annual operating plans, progress

* Best practices identified and documented signed reportsTitles to land within bi-national

* Land acquisition process completed, ecological corridor transferred to * Land title, purchase documents,documented PROMETA maps

Component 3: Initiative Development* New potential areas and key landowners * 100 copies of revised practical "how * National map overlayed with

identified to" guide, other visual materials identification criteria* Bolivian Private Conservation Group formed presented to key landowners * Minutes of meetings, event records

and functioning * 100 landowners, NGOs, community * Project reports* Key stakeholders given the necessary groups participating in group events

information, capacities, incentives, contacts * 10 requests for support fulfilled * Project reportsand support with which to establish newprivate conservation initiatives

* Services rendered form signed bysoliciting party

Component 4: Dissemination* Information distributed to national and * Dissemination materials distributed * Dissemination materials, project

intemational stakeholder groups. to national and intemational reportsstakeholders.

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ANNEX 2: PROJECT DESCRIPTION

The objective of the project is to consolidate methodology, policy and innovative procedures inorder to facilitate and develop private conservation initiatives that will contribute to globally-significant biodiversity conservation in high-priority ecoregions. In order to produce projectoutcomes, the following four project components will be implemented:

Component 1: Regulatory and incentive frameworkObjective: Strengthen the regulatory and incentive frameworks for private conservation.Inputs: Total $ 111,150; GEF $46,000

Activity 1.1. Create enabling environment for private conservation. The project will identify theshortcomings and constraints for private conservation, and propose technical assistance activities toaddress them, such as: legal assistance for land titling, technical assistance for land management,support in conflict resolution, land planning services, enforcement strategies, coordinationmechanisms with government authorities, etc.

Activity 1.2. Analyze and develop incentives. An in-depth analysis of each incentive must becarried out to determine how they can be successfully implemented by first identifying the"providers" of the incentives, and calculating their costs and benefits. Subsequently, proposals fortheir recognition and application must be prepared. Possible incentives include user fees orpayment structures for environmental services, direct payment for impact mitigation activities,access to donations, and market access for managed biodiversity products.

Activity 1.3. Develop procedures for PPA creation and management plan formulation withSERNAP. Formulation of legal and technical directives for PPA creation to establish the legalrequirements for PPA constitution and accreditation, including the documentation necessary toprove title to the land and willingness to carry out conservation, and to specify the technicalparameters within which a PPA must be managed and monitored.

Activity 1.4. Develop procedures for NHPRs and conservation easements. Procedures for thecreation of NHPRs and Conservation Easements (CEs) will be reviewed, and the SERNAPmethodology for monitoring plans adapted to private conservation areas.

Activity 1.5. Summarize instruments, incentives and procedures for private conservation in apractical "how to" guide. The guide will explain the instruments available for privateconservation, necessary procedures, methodologies for management plan formulation, biodiversityconservation concepts, legal aspects, financial planning, opportunities to apply incentives, andtechnical information. A preliminary version will be published following the completion ofComponent 1 activities, and will be distributed for "testing" to pilot area owners and governmentofficials. The guide will later be revised to incorporate pilot area results (Activity 2.7.1.) anddistributed to landowners groups, governments and NGOs (Activity 3.2. 1.).

Component 2: Creation and Management of Pilot Areas

Objective: Demonstrate the benefits of private conservation instruments and incentives throughthe creation and management of pilot areas.

Inputs: Total $ 594,250; GEF $323,850

For the project's four pilot areas, management and financial sustainability plans will be formulatedand implemented, termns of the conservation easement contract terms monitored, and best practicesidentified and documented. In addition, the process and benefits of land acquisition by NGOs as

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part of The Nature Conservancy's Adopt an Acre Program will be demonstrated and disseminated.Four pilot areas are planned as follows:

Pilot Area I will constitute Bolivia's first Private Protected Area (PPA), the 5,000-hectare "ElCorbalan" Reserve located in the Bolivian Chaco. The area is property of the proponentorganization PROMETA, who will manage the land throughout the project. This experiencewill demonstrate the conversion of a Natural Heritage Private Reserve (NHPR) to a PPA, andwill test policies and methodologies for management plan formulation and implementation,monitoring, and the application of incentives in the form of technical assistance.

Pilot Area II will be an existing NHPR in the Chiquitano Forest in eastern Bolivia, and willdemonstrate policies for NHPR creation, management plan formulation and implementation,and financial and legal incentives.

Pilot Area III will demsonstrate the creation of Bolivia's first Conservation Easement on a"Tahuamanu" Brazil Nut-producing property, located in the Southwest Amazonian MoistForest ecoregion in northwestern Bolivia. The experience will be disseminated nationally, andin particular to the more than 35 landowners of 150,000 hectares of similar Brazil Nutproperties.

Finally, Pilot Area IV will demonstrate the process of purchasing and managing land forconservation. In the Adopt-an-Acre program of The Nature Conservancy, funds raised fromacross the United States are donated to an NGO in another country for the purchase andmanagement of land. For the project, PROMETA's experiences with the 2,500-hectare"Alarachi" property will be disseminated. The property forms part of the Andean Yungas"Tariquia-Baritu" International Ecological Corridor which links the Tariquia Flora and FaunaNational Reserve in Bolivia to Baritu National Park in Argentina.

Activity 2.1. Negotiate agreements with owners of Pilot Areas: Agreements will be signedbetween PROMETA and the owners/institutions regarding the different activities to be carried outunder this MSP and the responsibilities of both parties. The owners will be committed to costsharing in selected project activities, creating promotional materials, sharing/disseminatinginformation and experiences, joining the networking group, implementing management plans, andparticipating in project events such as meetings or workshops. This process will demonstrate theapplication of

In the case of Pilot Area III, a contract specifying the conditions of the conservation easement willbe signed between the owner and a second party. Subsequently the easement will be registered inthe Bolivian real estate registry, guaranteeing that the easement will accompany any future transferof ownership. As for Pilot Area IV, the legal directives of the PPA Regulation in which proceduresfor PPA creation are specified. Necessary documentation will be compiled and presented to theSERNAP for PPA registration and will include the presentation of documents such as land titles andtechnical information on the area's location and characteristics as well as a short proposalsummarizing the reasons for creation.

Activity 2.2. Formulate management plans (Areas I and II). The El Corbalan management planwill be formulated by PROMETA in Year 1. The management plan for pilot area II will beformulated by its owner/manager in Year 2. Once formulated, the Forestry Superintendent willreview the plans and suggest changes as necessary. SERNAP will review pilot area I'smanagement plan to provide feedback. Social assessments will be prepared for each area as part ofits management plan.

Activity 2.3. Implement management plans (Areas I and II). This activity will represent the firststeps in the implementation of management plans. The El Corbalan management plan will beimplemented by PROMETA and the management plan for pilot area II will be implemented by itsowner/manager. These plans will represent the overall management of the areas during the

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remainder of the project and beyond (the duration of management plans will be specified in thetechnical directives), and as such, will be subject to periodic monitoring and evaluations. Theseexperiences will be published as case studies and disseminated.

Activity 2.4. Formulate and implement financial sustainability strategies. The future financialsustainability of each pilot area must be analyzed, and long-term financial plans formulated. It willfirst be necessary to identify the areas' financial requirements, and to identify possible sources offinancing to cover these requirements. Sources of income may include direct payments from theowner, donations, incentives and sustainable income-generating activities such as ecotourism. Anaction plan for fund generation must be implemented, as well as an accounting system.

Activity 2.5. Imnplement Conservation Easement (Area III). An agreement will be signedbetween the owner and the steward (NGO) in which the steward agrees to provide specificmanagement and monitoring activities in exchange for commitments and/or monetary or in-kindpayments (to be agreed upon). A monitoring plan will be formulated and implemented in Year 2 ofthe project immediately following the legal establishment of the easement.

Activity 2.6. Document pilot area experiences. Once approved, the technical procedures forNHPR, CE and PPA management will have been summarized in a practical "how to" guide. Thelessons learned from the pilot area experiences will be distilled into the guide, which will serve asmaterials for awareness raising to be carried out in Years 2 and 3 (Activity 3.2.).

Owners and managers of each pilot area will provide information for progress reports, accompaniedby media materials such as photo albums, videos, and other print materials. These progress reportswill constitute an indispensable tool for generating interest among "visiting" members of theBolivian Private Conservation Group (Activity 3.3.). The owners will commit themselves to takepart in the dissemination of their experiences by participating in project workshops and BPCGevents. Work will be divided into 2 sub-activities:

2.6.1. Revise "how to" guide2.6.2. Produce final pilot area report

Activity 2.7. Land acquisition demonstration. In year 1, PROMETA will participate in TheNature Conservancy's Adopt an Acre Program through which funds are raised to purchase prioritylands within the Tariquia-Baritu bi-national ecological corridor (Bolivia-Argentina). Thedocumentation and dissemination of this experience as a case study will benefit other BolivianNGOs interested in acquiring private lands for conservation purposes. The case study will focus onlegal acquisition matters and technical questions about the property's ecological value andmanagement. Two sub-activities are planned:

2.8.1. Complete stages of acquisition process2.8.2. Document and disseminate as case study

Component 3: Capacity Building for New Initiatives

Objective: Encourage and enable landowners outside of pilot sites to participate in privateconservation.

Inputs: Total cost $291,050; GEF cost $225,000.

Activity 3.1. Identify new potential areas and key landowners. Technical data must be analyzedand cross-referenced, including ecoregion, land tenancy, land use, public protected areas, andconservation status in order to select fully-titled, non-conflicting pilot areas of high biologicalimportance in high-priority ecosystems. Some site verification will be carried out. The product ofthis activity will be a series of maps with identification criteria overlayed. Based on the information

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above, individual properties and their owners will be identified. A number of potential areas havebeen pre-identified, for which information will be collected.

Activity 3.2. Awareness building of landowners. Once key landowners have been identified,attempts must be made to make them aware of the potential of and opportunities for carrying outprivate conservation, and to generate interest among them to participate in project activities such asthe "Bolivian Private Conservation Group" (see below).

3.2.1. Design and publish visual materials3.2.2. Present materials to landowners.

Activity 3.3. Establish and implement BPCG. This Group will be comprised of NGOs,landowners, landowner organizations, experts in the field, and other interested parties, and its rolewill be to promote the development of private conservation in Bolivia during the project and afterits conclusion. The Group will be the outreach vehicle for recruitment activities and will carry outnetworking activities. PROMETA project staff will support group activities. In order for the groupto effectively promote private conservation, its members will participate in capacity building eventsin planning, public relations, fundraising and environmental management. Three sub-activities areplanned:

3.3.1. Conform group and plan activities.3.3.2. Recruit "visiting" members - A trial membership will be given to generate interest

in owners of new potential areas.3.3.3. Carry out networking events. These may include meetings and visits to existingprivate conservation areas.

Activity 3.4. Provide technical and legal support, training to landowners. program aims toenable private landowners to create new conservation initiatives and to offer tools and support tothose initiatives. The program will consist of the following sub-activities: (each workshop will beoffered in at least 3 departments and others as determined by demand).

3.4.1. Legal workshops3.4.2. Technical workshops3.4.3. Financial workshops3.4.4. Provide ongoing support services

Component 4: Dissemination

Objective: Maximize project impact through the dissemination of results in Bolivia andelsewhere in Latin America.

Inputs: Total $ 96,350; GEF $85,150

Activity 4.1. Develop and publish dissemination materials. Project results will be compiled andsummarized in electronic and book form, and will accompany other information to raise awarenessamong Bolivian stakeholder groups and a broad public for whom an increased awareness ofenvironmental issues and opportunities for public participation in conservation can lead to reducedthreats to biodiversity and increased private sector participation in conservation around key publicand private protected areas.

Activity 4.2. Plan and Implement Dissemination Campaign. The materials developed in Activity4.1. will be presented at public events and scheduled presentations in Bolivia as a broadinformational campaign targeting other potential participants in private conservation and the publicin general in and around key protected areas. Target audiences in Bolivia will be identified and pre-evaluated, and later asked for feedback in order to estimate the effectiveness of the campaign. The

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final project document will be distributed by mail to project stakeholders, national and internationalNGOs, national and local authorities, academic institutions, as well as posted on the Internet.

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ANNEX 3: DETAILED PROJECT BUDGETS

3.a. Budget by Activity - All Sources

Outcome/Activity GEF Other PROMETA TotalSources

1 Regulatory and Incentive Framework1.1. Analyze and develop incentives. 20.000 22.050 2.200 44.250

1.2. Develop procedures for PPA creation and 12.860 11.800 1.200 25.860management plan formulation with SERNAP

1.3. Develop procedures for NHPRs and 11.780 14.800 1.400 27.980conservation easements.

1.4. Summarize instruments, incentives and 3.660 8.400 1.000 13.060procedures for private conservation in a practical"how to" guide.

ITOTAL OUTCOME 1: 46.000 59.350 5.800 111.1502 Creation and Managment of Pilot Areas2.1. Negotiate agreements with owners of Pilot Areas 15.810 8.800 3.500 28.110

2.2. Formulate management plans 33.900 7.500 7.500 48.900

2.3. Implement management plans 182.250 20.000 20.000 222.250

2.4. Formulate/implement financial strategies 46.200 14.200 500 60.900

2.5. Implement pilot Conservation Easement 27.250 20.000 800 48.050

2.6. Document pilot area experiences 14.170 6.300 1.000 21.470

2.7. Land acquisition case study 4.270 155.000 5.300 164.570

TOTAL OUTCOME 2: 323.850 231.800 38.600 594.2503 Capacity Building for New Initiatives3.1. Identify new potential areas & landowners 36.200 5.100 2.000 43.300

3.2. Awareness building of landowners 69.600 24.850 3.000 97.450

3.3. Establish and implement BPCG 64.600 16.000 2.900 83.500

3.4. Provide tech. and legal support, training 54.600 9.200 3.000 66.800TOTAL OUTCOME 3: 225.000 55.150 10.900 291.050

4 Dissemination4.1. Develop and publish dissemination materials 17.450 2.200 1.000 20.650

4.2. Plan and implement dissemination campaign 67.700 4.000 4.000 75.700

TOTAL OUTCOME 4: 85.150 6.200 5.000 96.350

Subtotal 680.000 352.500 60.300 1.092.800Project Development Funds (PDF Block A) 25.000 12.500 2.500 40.000

TOTAL 705.000 365.000 62.800 1.132.800

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3.b. Budget by Expenditure Category - GEF Funds

Unit Price Quant. TotalCONSULTANTS $US 280000Project Manager Month 1300 36 46800Legal Coordinator Month 900 36 32400Technical Coordinator I Month 1000 36 36000Technical Coordinator II Month 900 36 32400Project Assistant Month 300 36 10800Monitor, Pilot Areas Month 600 24 14400Protection Agents Pilot Area 1 (2) Month 600 24 14400Protection Agents Pilot Area II (2) Month 600 18 10800Communications Consultant Global 20000 1 20000Consultancy Incentives Global 20000 1 20000Consultancy PPA Global 2000 1 2000Consultancy Site Inspection Global 2000 1 2000Consultancies - Mgmt. Plans Global 5000 2 10000Consultancies Sustain. Studies Global 1000 3 3000Consultancy New Site ID Global 25000 1 25000GOODS 150000Computers (4) and Printers (2) Global 10000 1 10000Office Furniture Global 5000 1 5000Office Materials Global 3000 1 3000Telephone Equipment Global 2000 1 2000Vehicles-pilot areas (4X4 pickup) Global 25000 2 50000Radio Equipment Global 2000 3 6000Camping Equipment Global 2000 1 2000Clothing and Boots Global 2000 1 2000Signs Global 5000 1 5000Fences and gates Global 25000 1 25000Guard Stations Global 10000 4 40000SERVICES 220000Local Travel Trip 250 20 5000National Travel Trip 500 60 30000International Travel Trip 2000 15 30000Fuel and vehicle maintenance Global 8000 1 8000Training Global 60000 1 60000Exhibit Space Global 7500 1 7500Publishing - Books Global 7500 1 7500Publishing - Posters Global 500 4 2000Publishing - Brochures Global 500 4 2000Publishing - Manuals Global 1000 2 2000Printing - Signs Global 500 4 2000Production - Videos Global 7500 2 15000Exhibit Design Global 1000 2 2000Promotional Material Global 2000 1 2000Operational Costs Global 18000 1 18000Communications Global 18000 1 18000Pilot Area Operational Costs Global 9000 1 9000WORKS 0CONTINGENCIES-Unallocated Global 30000 1 30000TOTAL 680000

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ANNEX 4: INCREMENTAL COST ANALYSIS

The cost of the project represents the alternative scenario by means of which global environmentalbenefits will be produced in the form of the conservation of globally-significant biodiversity,beyond those benefits which would be achieved in the absence of the alternative scenario. Thematrix below shows the costs of the baseline as being $2,010,000, and the alternative scenario$3,102,800.

Incremental Cost Matrix

Component Cost Category Cost US$ Global Benefit

1. Regulatory and Incentive Baseline 70,000 Procedures defined for creating and managingFrameworks private conservation areas.

GEF Alternative 181,150 Procedures and incentives selected and field-testedfor creating and managing private conservationareas.

Incremental 111,1502. Pilot Area and Land Baseline 1,700,000 Landowners and NGOs of existing NHPRs manage

Acquisition Demonstrations land in an improvised fashion without measuringAcquisition Demonstrations results

GEF Alternative 2,294,250 Best practices identified to improvc managemcntand measure results on existing and newconservation areas

Incremental 594,2503. Initiative Development Baseline 90,000 Private conservation strategies formulated

GEF Alternative 381,050 Private conservation strategies and tools formulated,discussed, tested and applied

Incremental 291,0504. Dissemination Baseline 150,000 SERNAP, judicial officials somewhat aware of legal

tools for private cons.

GEF Alternative 246,350 Landowners given information to replicate pilotexperiences and to apply legal tools and incentives

Incremental 96,350

TOTAL Baseline 2,010,000 Lands rich in biodiversity used for unsustainableproductive purposes

GEF Alternative 3,102,800 Some landowners take advantage of legal tools andincentives to carry out conservation instead ofproduction

Incremental 1,092,800 l

Baseline

Under the baseline scenario, the global benefits of the present project will not be obtained, andover-exploitation of natural resources will tend to continue on biodiversity-rich lands. Withoutstrong regulations, incentives and other tools, landowners in many cases will opt for development oftheir land for productive purposes, with negative global environmental effects. In terms of thecomponents proposed in this project, implementation of the baseline scenario will result in thefollowing outcomes:

Regulatorv and Incentive FrameworkUndcr the baseline scenario PROMETA would continue work to a limited extent with SERNAP andlandowners to define procedures for private conservation area recognition, accreditation and

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monitoring, but would be unable to field-test these procedures and other legal instruments. Inaddition, PROMETA would remain up to date on advances in legal tools and incentives in otherLatin American countries through contact with The Nature Conservancy's Private LandsConservation Program. Total baseline funds for these activities are estimated at $70,000.

Pilot Area and Land Acquisition DemonstrationsIn the absence of GEF funds for this project, there would be a lack of funds for demonstration PilotAreas, that is for all the activities that accompany land stewardship itself such as the definition ofmethodologies for management plan formulation, financial planning processes, support withpaperwork, biological inventories, measurements, documentation, monitoring, reporting and the likethat together permit the identification of best practices and the dissemination of experiences. Thusexisting private conservation areas would continue to function at a very minimal level. Areas I andII will continue as NTHPRs, and no management plans will be prepared in the near future. Area IIIwill remain under exploration, and no conservation easement will be created. In Area IV, purchaseof land through TNC Adopt-an-Acre program will continue, but there will be no resources for itsestablishment as a managed conservation area. The baseline scenario for this category is expected tobe $1,700,000.

Initiative DevelopmentBaseline activities for developing new private conservation initiatives include the formulation ofland management, legal, financing and organizational strategies for landowners. These activitiesform part of a project being funded by the MacArthur Foundation. PROMETA would continue tosupport interested landowners around the national public protected areas it manages, but wouldlimit its work to the Department of Tarija. The estimated cost of these activities is $90,000.

DisseminationThrough its regular institutional publications, PROMETA and TNC would continue to disseminateits conservation experiences. In contrast to the presence of GEF funding, none of these publicationswould focus on private protected areas, nor would they be specifically directed toward landownersor other target stakeholders. It is likely that the AVINA Foundation would continue to support theefforts of the Bolivian Environmental Law Society SBDA to disseminate legal instruments forprivate conservation to judicial officials. The total for baseline funding from these activities is$150,000.

GEF Alternative

Under the GEF Alternative, the project will create an enabling environment for widespreadreplication of conservation efforts in private lands. Global benefits will be obtained from theincreased number of new and planned private conservation initiatives in high-priority eco-regions,resulting from the removal of legal, institutional, technical and financial obstacles which impedesuch initiatives. The total area under conservation and/or sustainable use will expand in criticalecosystems and eco-regions.

Incremental Costs

The difference between the cost of the Baseline Scenario ($2,010,000) and the GEF Alternative($3,102,800) is $1,092,800. This represents the amount solicited from the GEF, equivalent to thecost for achieving project outcomes and their corresponding global benefits.

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ANNEX 5: PROCUREMENT UNDER THE MEDIUM-SIZE PROJECT

Procurement and contracting under the project will be managed according to the World Bank'spublished guidelines. PROMETA's internal procurement and contracting procedures will beapplied whenever these are consistent with the World Bank's policies. Project expenses have beengrouped into procurement/contracting categories, and combined into packages to be purchased fromindividual suppliers (see table below). Where possible, project goods, works and services will bepurchased by means of a competitive process. In all cases, procurement and contracting will becarried out so that GEF funds are used efficiently and transparently.

CATEGORY AMOUNT ($us) PROCUREMENT METHOD1. GOODSa) Management Equipment (Office 20,000 Shoppingmaterials, computer equip., telephones,furniture)b) Protected area equipment (Vehicles, 60,000 Shoppingradios)c) Protective instalations for pilot areas 70,000 Shopping(signs, gates, guardposts)

2. WORKSNone 0 n/a

3. SER VICESa) Consulting fees 280,000 Individual consultantb) Publications, productions and 32,500 PROMETA procurementpromotional materials procedures - 3 quotes

c) Travel fare 65,000 PROMETA procurementprocedures - 3 quotes

d) Operational costs 18,000 PROMETA procurementprocedures - by exception*

e) Exposition space rental and design 9,500 PROMETA procurementprocedures - by exception*

f) Operational costs - pilot areas 9,000 PROMETA procurementprocedures

g) Communications 18,000 PROMETA procurementprocedures - by exception*

h) Fuel and vehicle maintenance 8,000 PROMETA procurementprocedures

i) Training expenses 60,000 PROMETA procurementprocedures - by exception*

Unallocated-contingencies 30,000

TOTAL 680,000* Those services procured "by exception" refer to those for which a single supplier exists such as communications,utilities, universities, trade show managers, etc. This method is consistent with the World Bank's "single-sourceselection" process.

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ANNEX 6: PROGRESS REPORTS, DISBURSEMENTS, AND SPECIAL ACCOUNT

Project Progress Reports will consist of two external reports: a midterm report at month 18, and a final report at month 36. Internal reports will bekept by the Technical Coordinator. A special account will be established for project funds at a local bank. All payments, except petty cash uses anddirect-deposit payroll, will be made by check, and will require two signatures and the support of duly supported and processed external documentaryevidence. Disbursements will be made in three tranches at months 1, 13, and 25. These disbursements will be requested on an annual basis based ona projection of expenses and related activity targets, as well as project progress during the previous period. The project disbursement forecast and theYear I expenditure forecast tables are shown below.

Project Disbursement Forecast GEF funds, Years 1-3:

Year 1 Year I Year 2 Year 2 Year 3 Year 3Activity Targets Disbursement Activity Targets Disbursement Activity Targets Disbursement

Component 1- Policy proposals presented, $51,250 Policy proposal follow-up 0 None 0Regulatory and follow-up underway; completed.Incentive preliminary "how to" guideFrameworks published.Component 2- Pilot areas selected and created; $51,640 Mgmt. Plans 11 and III $178,440 Mgmt. Plan 11 and III $96,120Pilot Area and Parti- Mgmt. Plan I formulated; land formulated; Mgmt Plan I implmentation underway;cipation in Adopt an acquisition complete. Implementation underway; experiences documented.Acre ProgramComponent 3- None 0 Potential participants identified; $115,217 Stakeholders participating in $110,133Initiative awareness building activities; BPCG events; ongoingDevelopment BPCG created. support provided for new

initiatives.Component 4- None 0 Evaluation mission $5,000 Information and project $72,200Dissemination results disseminated to ntl.,

intl. stakeholder groups andtarget audiences in Bolivia.

TOTALS $102,890 _ $298,657v $278,453

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Year 1 Expenditure Forecast GEF Funds

Activity/Month 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL

1.1. Analyze and develop incentives. 3,000 3,000 3,000 3,000 0 0 0 0 0 0 0 0 12,000

1.2. Develop procedures for PPAs 3,933 3,933 3,934 0 0 0 0 0 0 0 0 0 11,800

1.3. Develop procedures for NHPRs and CEs 0 0 0 3,600 3,600 3,600 0 0 0 0 0 0 10,800

1.4. Summarize instruments, incentives and 0 0 0 0 0 0 800 800 800 0 0 0 2,400procedures in a practical "how to" guide.TOTAL OUTCOME 1: 41,250

2.1. Negotiate agreements with owners of Pilot 0 0 0 3,166 3,166 3,167 833 833 834 833 834 834 14,500Areas

2.2. Formulate management plans-areas I and 11 0 0 0 2,073 2,073 2,074 2,073 2,073 2,074 2,073 2,074 2,074 18,660

2.3. Implement management plans-areas I and 11 0 0 0 0 0 0 0 0 0 0 0 0 0

2.4. Formulate/inmplement financial strategies 0 0 0 0 0 0 1,413 1,413 1,414 1,413 1,414 1,414 8,480

2.5. Implement pilot area Ill-cons. Easement 0 0 0 0 0 0 0 0 0 0 0 0 0

2.6. Document pilot area experiences 0 0 0 0 0 0 0 0 0 0 0 0 0

2.7. Land acquisition case study 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL OUTCOME 2: 41,640

3.1. Identify new potential areas & landowners 0 0 0 0 0 0 0 0 0 0 0 0 0

3.2. Awareness building of landowners 0 0 0 0 0 0 0 0 0 0 0 0 0

3.3. Establish and implement BPCG 0 0 0 0 0 0 0 0 0 0 0 0 0

3.4. Provide tech. and legal support, training 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL OUTCOME 3: 0

4.1. Develop and publish dissemination materials 0 0 0 0 0 0 0 0 0 0 0 0 0

4.2. Plan and implement dissemination campaign 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL OUTCOME 4: 0

Contingencies 5,000 5,000 5,000 5,000 20,000

TOTAL YEAR 1 6,933 6,933 11,934 11,839 10,964 15,964 5,119 5,119 10,122 4,319 4,322 9,322 102,890

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ANNEX 7: ADDITIONAL INFORMATION ON THE MSP PROJECT PROPOSER

1. FULL LEGAL NAME OF THE INSTITUTION

Protecci6n del Medio Ambiente Tarija (PROMETA) -- Protection of the Environment Tarija.

2. BACKGROUND

PROMETA was legally established on January 26, 1990, and validated according to SupremeResolution 208919 on April 2, 1991. It is currently registered with the Vice-Ministry of PublicInvestment and External Financing (VIPFE) with National NGO Registration number 0330,expiration date 8/30/2002.

PROMETA's institutional mission is to "contribute to the conservation of the environment toimprove the quality of life of the Bolivian people."

3. TYPE OF ORGANIZATION

PROMETA is a private, non-profit conservation organization (NGO).

PROMETA's biodiversity conservation strategy consists of the conservation of representativesamples of different ecosystems through the management of protected areas. Its operationalstrategy consists of five programs:

* Protection and Surveillance* Support to Sustainable Production* Research* Environmental Education* Capacity Building of Local Organizations

The first program is comprised of actions to mitigate direct threats to the environment andbiodiversity, while the other programs consist of measures to attack the major root causes ofenvironmental degradation in Bolivia. PROMETA currently applies this model to 4 protected areasin which it works: The Tariquia Flora and Fauna National Reserve, Sama Biological Reserve,Aguarague National Park and the El Corbalan Natural Heritage Private Reserve. These fourprotected areas have a total combined area of 468,000 hectares, harboring more than 400 species ofbirds, 150 mammal and 700 plant species.

PROMETA has a staff of 30 professionals and technical specialists, 15 park guards, and 10 supportand administrative personnel.

4. GOVERNING BOARD MEMBERS

Board Members: Paul Castellanos, PresidentHerbert Kohlberg, SecretaryRodrigo Ayala, Board MemberHugo Navaj as, Board Member

Key Personnel: Alfonso Blanco, Executive DirectorArnaldo Wayer, Director of Finance and AdministrationRoberto Cabrera, Project CoordinatorDenise Cochran, Fundraising Coordinator

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5. MEMBERSHIP

PROMETA does not maintain a membership.

6. RECENT PROGRAMS/PROJECTS/ACTIVITIES RELEVANT TO THE PROJECT

Description of Programs

Protection and Surveillance. Establishment of control posts and ranger camps at strategic locations;ongoing patrol activities (daily and/or monthly ranger circuits); dissemination and enforcement ofhunting/fishing/logging laws and regulations; basic monitoring of environmental conditions andbiodiversity; extension with local communities; and support for special studies or operations.

Support to Sustainable Production. Training and technical assistance in sustainable activities suchas llama breeding, crop improvement, textiles/handicrafts, ecotourism, beekeeping, appropriatelivestock management, and carpentry; organization of and support to local trade fairs; assistance inthe establishment of small businesses; and capacity building of producers' associations.

Research. Studies to gather the information necessary to formulate management plans for protectedareas (inventories of flora and fauna, water and climate, land and resource use, landtenancy/ownership regimes, socio-economic diagnostics, etc.); and special studies including cropresearch, feasibility and market studies.

Environmental Education. Specialized teacher training; advocacy with local educational authoritiesinclude specialized courses in school curricula; environmental "chats" with students at localschools; awareness raising among local authorities and the general public; and promotion of localparticipation in environmental management.

Capacity Building of Local Organizations. Assistance to local municipal governments in theformation of specialized environmental units and municipal environmental management plans;promotion of women's participation in environmental management; integration of civil societyorganizations into local and regional development planning processes; advocacy for the inclusion ofenvironmental criteria in the formulation of local and regional development plans; and creation andstrengthening of management committees for each protected area managed by PROMETA.

In addition to these 5 programs, PROMETA is increasingly involved in policy work at the local andnational levels. This work recently includes: a consensus-building process for the creation of theAguaragiue National Park in Tarija (this resulted in the passage of a law in the Bolivian legislatureofficially establishing the Park); the participation of PROMETA as the Bolivian focal point in thecreation of the Trinational Secretariat for the South American Chaco (Bolivia, Argentina andParaguay); and PROMETA's representation of the department of Tarija in the formulation of theNational Strategy for Biodiversity Conservation, with Executive Director Alfonso Blanco invited toserve as Departmental Coordinator.

Recent projects/activities relevant to project

In 1997, PROMETA purchased 4,500 hectares of land in the "El Corbalan" zone of the BolivianChaco for the creation of a private reserve. The pristine territory is habitat for a wide variety ofendangered and threatened species characteristic of the arid Chaco ecosystem. The establishment ofthe Reserve represents one of only two significant experiences in Bolivia of private landsconservation.

The "El Corbalan" Natural Heritage Private Reserve is registered according to existing Bolivianlegislation in the Forestry Superintendent. Through this experience working with private landsconservation, PROMETA became aware of the specific advantages and pitfalls of this legalinstrument for private protected areas in Bolivia. Subsequently, PROMETA began actively looking

39

for ways to improve legislation or promote new policies which could give momentum to thisalternative, complementary biodiversity conservation mechanism in Bolivia.

7. PUBLICATIONS

Title Author Date

Social Linkages of the Yungas Populations with other Ecological Zones C. Vacaflores 1995

Land Tenancy and Use in the Tariquia Flora and Fauna Ntl. Reserve L. Rua 1995

Forest Composition in the Chiquiaca Community using IFRI Research Dept. 1995Methodology

Socioeconomic Study of the Area of the Probable 'Tariquia - Baritu Research Dept. 1996Ecological Corridor"'

Community-Forest Relationship and Traditional Forms of Forest Access Research Dept. 1996in Tariquia

Environmental Education in the Sama Biological Reserve Research Dept. 1997

Ecotourism in Tarija's Protected Areas Research Dept. 1997

Environmental Policy with Decision Makers in the Tariquia Reserve PROMETA-TNC 1997

Challenges of Sustainable Development A. Blanco 1998

Final Socioconomic Study for the Implementation of the Tariquia - H. Ruiz et al. 1999Baritu Ecological Corridor.

Protected Areas of the Department of Tarija R. Ayala 1999

Draft - Tariquia Reserve Management Plan 1. Arnold et al. 2000

Formulation of Policies for the Creation of Private, Municipal and Ed. S. Molina 2001Departmental Protected Areas in Bolivia

8. ANNUAL BUDGET

PROMETA's annual funding comes from a variety of sources. In the past few years, theorganization has been successful in acquiring bilateral funding from the cooperation programs ofseveral embassies in Bolivia. The most important of these include the Royal Dutch Embassy,USAID, AECI (Spain), ACDI (Canada), and the British Embassy. PROMETA is a long-standingpartner of the international NGO The Nature Conservancy, and through its Parks in Peril programhas received funds from a number of private donors in the United States to support the managementof the Tariquia National Reserve. After years of lobbying for the Bolivian government to finance atleast a portion of the costs to administer the areas in the National Protected Areas System,PROMETA as co-administrator of one area and focal point for another, began to receive funds fromthe National Protected Areas Service in 1999. PROMETA also raises funds from its own privatedonors and some academic organizations, although it does not maintain a permanent membership.The members of the board of directors regularly make in-kind gifts to the organization. Finally, inthe last couple of years, PROMETA has been capturing small amounts of venture capital fromindividual donors and foundations with which to invest in local businesses as shareholders, or todevelop the organization's own "eco-enterprises." These investments are beginning to generatesmall amounts of income to support a portion of the NGO's basic operating expenses.

The majority of PROMETA's funding, more than 70 percent, is spent on protected areamanagement in the four areas where PROMETA works. The organization has operational costsequivalent to approximately 18 percent of its annual budget, including fundraising expenses and

40

library maintenance. A small amount of funding is spent to host special events, studies or otheractivities in conjunction with local NGOs.

PROMETA's annual cash flow for each of the years 1998-2000 is detailed in the following twotables:

PROMETA Income, FY1998 to FY2000.Fiscal Year

FY 98 FY 99 FY 00Projects income 1,740,521.00 2,840,270.00 5,134,958.00Sales income 14,512.00 73,213.00 11,478.00Financial income 5,166.00 8,573.00 72,227.00Others 111,109.00 95,717.00 3,624.00Total (Bs) 1,871,308.00 3,017,773.00 5,222,287.00Exchange rate Bs/US $ (Average for FY) 5.65 6.00 6.2Converted to US $ 331,205.00 502,962.00 842,304.00 |

PROMETA Expenses, FY1998 to FY2000.Fiscal Year

FY 98 FY 99 FY 00Projects outcome 1,908,598.00 3,013, 008.00 4,808,055.00Others 25,726.00 37,213.00 69,278.00Total (Bs) 1,934,324.00 3,050,221.00 4,877,333.00Exchange rate Bs/US $ (Average for FY) 5.65 6.00 6.2Converted to US $ 342,358.00 508,370.00 786,667.00

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9. RECENT EXPERIENCE IN MANAGING GRANT-FINANCED PROJECTS 1998-2000

Ga Amount

d.~~ ~~~ r: .GatrsNie . .GrnProjecNn ($US) Status

Protection of the Guadalquivir Watershed Embassy of Holland 12,000 CompletedParks in Peril-Mgmt. of Tariguia Reserve The Nature Conservancy/USAID 2,025 CompletedChiguiaca Forest Management Plan PROBONA-COSUDE 12,800 CompletedInstitutional Support Leo Model Foundation 19,365 CompletedLibrary Development and Improvements PIEB Embassy of Holland 4,600 CompletedSama Forest Nursery Embassy of Holland 600 CompletedParticipative Planning in the Tariguia Reserve UNDP GEF Small Funds 7,825 CompletedTarija Zoo Improvement Fanwood Foundation 7,000 CompletedBirds Workshop FONAMA National Environment Fund 2,650 CompletedInstitutional Support Homeland Foundation 14,550 CompiletedInstitutional Support/Capacity Building USAID 24,470 CompletedBiomass Consumption in Rural Areas World Bank 7,575 CompletedBaritu-Tariguia Ecological Corridor Study GEF-OEA (SAP Bermejo) 22,300 CompletedCommunity Environmental Management University of Wisconsin 8,650 CompletedEcological Corridor Dissemination Video Grama 1,825 CompletedMitigation of Exploratory Activities Tariguia Chaco S.A. 14,800 CompletedConsultation Workshops Sama Reserve Plan LIDEMA Environmental Defense League 15,750 Completed

Parks in Peril-Mgmt. of Tariguia Reserve The Nature Conservancy/USAID 149,725 CompletedTariguia Reserve Management SERNAP 96,875 CompletedSupport to Protected Areas Mgmt. in Tarija Embassy of Holland 74,350 CompletedImplementation Forest Mgmt. Plan Chiguiaca PROBONA-COSUDE 18,450 CompletedSust. Dev. of Natural Resources in Tariguia Veterinaires sans Frontiers 10,817 CompletedIntegral Development of Women in Sama Res. Embassy of Great Britain 9,700 CompletedInstitutional Support Swedish Society for Nature Conservation 9,575 CompletedInteractions Cattle-Nat. Resources in Tariguia University of Wisconsin 8,550 CompletedBaritu-Tariguia Ecological Corridor Design GEF-OEA (SAP Bermejo) 8,384 CompletedEcological Study of Flamingos Sama Reserve American Bird Conservancy 4,615 CompletedStudy of Ahipa Cultivation in Bolivia DANIDA 4,500 CompletedLibrary Development/Improvement PIEB Embassy of Holland 4,500 CompletedCampaign for the Quality of Life LIDEMA 2,440 Completed

Training and Tech. Assistance in Beekeeping FDC Fondo de Desarrollo Campesino 34,000 CompletedTraining and Tech. Assist. in Cor/Swine Prod FDC Fondo de Desarrollo Campesino 22,300 CompletedPolicy Formulation-Cons. of Local Areas Prot. Tinker Foundation 60,000 CompletedParks in Peril-Mgmt. of Tariguia Reserve The Nature Conservancy/USAID 135,000 CompletedTariguia Reserve Management SERNAP 135,000 In executionSupport to Protected Areas Mgmt. in Tarija Embassy of Holland 266,000 In executionNative Species Conservation UNDP GEF Small Funds 23,000 In executionInstitional Support Leo Model Foundation 18,000 CompletedInstitional Support Homeland Foundation 10,000 CompletedCommunity Development Sama Reserve InterAmerican Foundation 236,000 In executionProtection Support & Fish Study Tariguia Andina S.A. 41,000 CompletedStudy of Ahipa Cultivation in Bolivia DANIDA 4,500 In executionInnovative Financing Watershed Mgmt. Sama USAID/TNC 168,500 Approved

10. ADMINISTRATION AND ACCOUNTING CONTROL PROCEDURES; AUDITING ARRANGEMENTS

According to the Financial Management Assessment (FMA) carried out by a World Bankrepresentative in December, 2000, the "structure, processes and automated accounting system ofPROMETA are considered adequate to provide control over the assets and report reliably thefinancial position and results of its operation. PROMETA has demonstrated that is meets the

42

requirements of OP 10.02 and can support the presentation of the financial reporting requirementsof the Grant as presented in the Supplemental Guidance for World Bank -GEF Medium SizeProjects."

Accounting

According to the FMA mentioned above, PROMETA's accounting system "contains the standardcontrols for editing of accounts used, balancing of entries, guards against manipulations of entriesalready recorded and provides an adequate audit trail. The system provides bi-monetary records,general ledger double entry accounting and is integrated with budget control module. Income andexpense is recorded in the budget module subject to strict editing for codes and availability ofbudget balance. The accounting ledger is updated directly by the budget module. The outputs of thesystem aside from the trial balances and account analysis comprise the full range of budget reportsand financial statements. The system is supported by a detailed up-to-date user's manual."

Separate general ledgers and checking accounts are created for every project. Financing sources areidentified for incomes and expenses within each individual project. Payments are made by checkswhich require two signatures and supporting documentation.

An annual budget is formulated and must receive the approval of the Board of Directors. Thisbudget is based on the institution's annual operating plans. Monthly budget reporting is made to theExecutive Director and the Board.

Auditing Arrangements

The FMA also reported on PROMETA's auditing arrangements, saying that "PROMETA is auditedregularly by high standard external auditors for the last 4 years. The entity audit for 1999conducted by TADA Ltda. resulted in a clean opinion and no serious internal control weaknesseswere reported. Similarly project specific external audits were made of the projects funded by theGovernment of the Netherlands. This report also resulted in a clean opinion and no serious internalcontrol observations."

11. CURRENT NORMS AND PROCEDURES FOR PROCURING GOODS AND SERVICES

PROMETA's system of procurement is internally regulated as documented in the guide "Normsand Procedures for the System of Administration of Goods in Services," published in 1996. Thissystem consists of three sub-systems: Goods and Services Contracting, Goods and ServicesManagement, and Goods and Services Disposal. All three subsystems have been designed to workin conjunction with the institution's other administrative systems (budgeting, accounting, personnel,etc) in order to guarantee the efficient use of institutional resources.

The Goods and Services Contracting Sub-System establishes monetary thresholds within which toapply various procurement procedures. Under this sub-system, a distinction is not made betweengoods and services. The thresholds and procedures are outlined below (For more details seeAttachment 2: Procurement Under the Medium-Size Project):

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Thresholds for Procurement of Goods and Services

AMOUNT (US$) PROCESS RESPONSIBILITY

* Less than $75 (Bs 500) No quotes required Executive Director (with power to* $75 to $3,125 (Bs 20,000) Shopping (Minimum 3 delegate responsibility)

quotes from nationalsources)

* $3,125 (Bs 20,000) to $93,750 Variation of QCBS Executive Director (with power to(Bs 600,000) (Direct Invitation) delegate responsibility)

* More than $93,750 (Bs 600,000) NCB (Open PublicBidding)

12. CONTACT PERSONS:

Name/Title: Alfonso Blanco, Executive DirectorAddress: P.O. Box 59

Calle Alejandro del Carpio No. 0659Tarija, Bolivia

Telephone: (591) 66-33873Fax: (591) 6645865

e-mail: alfonsob(aiolivo.tja.entelnet.bo

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ANNEX 8: INSTRUMENTS FOR IN SITU BIODIVERSITY CONSERVATION

While a number of instruments for in situ conservation, both public and private, exist in Bolivianlegislation, an analysis of these instruments as they have been applied in practice reveals an overallfailure to significantly contribute to biodiversity conservation. The only exception is that of theSNAP, which at present consists of national public protected areas, with limited incentives andopportunities for participation of the private sector. The following is a summary of existing in situconservation instruments:

Public-Sector Conservation Instruments

The National System of Protected Areas (SNAP) has identified 21 areas of national interest whichare under active administration, either by SERNAP directly or by a civil society organization(NGO, indigenous group) by means of a co-administration agreement. These areas protectapproximately 17 percent of national territory. The SNAP is a relatively young protected areassystem, having been created in 1992 by means of the Environment Law. The administration of theareas was relatively ineffective until 1997 when SERNAP was created by means of the ProtectedAreas Regulation. While the SNAP includes representative samples of a majority of Bolivia'secoregions, several high-priority ecoregions are not represented by the system and other ecoregionsare under-represented. Nevertheless, the SNAP has made important advances in the last five years,and is the most effective instrument for in situ biodiversity conservation in Bolivia.

Departmental protected areas are defined in the 1997 Protected Areas Regulation. While at presentonly four departmental protected areas have been established, this instrument holds potential forachieving biodiversity conservation objectives over the medium- and long-run, especially asdepartment-level (prefecture) capacities are strengthened with respect to environmentalmanagement. The opportunities and incentives for private-sector participation in departmentalprotected areas is limited (similar to the case of national public protected areas).

Municipal protected areas are not defined in Bolivian legislation. While the absence of a legalinstrument does not preclude the creation of these areas, in practice the lack of mechanisms tosupport such a conservation instrument creates obstacles to their effective implementation.Currently there are only a few known examples of municipal protected areas in Bolivia, with littleor no impact on biodiversity conservation.

Finally, the 1996 Agrarian Reform Law states that the Agrarian Superintendency can "grantconcessions of public lands for conservation and protection, research, and ecotourism, subject tocertification of existing property rights by the National Institute of Agrarian Reform (INRA)." Todate, there are no notable examples of this conservation instrument.

Private-Sector Conservation Instruments

Private protected areas are defined in the 1997 Protected Areas Regulation as "those managed andfinanced voluntarily by private citizens or organizations." While the regulation continues to statethat "the procedure for inscription into the SNAP will be established by subsequent regulation," thisregulation was never produced. This leaves this conservation instrument with no implementationmechanism. Subsequently, private protected areas never have been applied in practice. Byintroducing and promoting a legal implementation mechanism for this instrument, by means ofcomplementary regulations, PROMETA expects to offer private landowners an attractive legalinstrument with which to participate in biodiversity conservation.

Land Easements are defined in Article 255 of Bolivian Civil Code, according to which "aneasement is the right of a landowner to make use of some aspect of a neighboring property, or toprohibit the neighboring property's owner from exercising some aspect of his property rights." Intheory this definition can be interpreted to include the restriction of property rights for conservationpurposes. However, this conservation instrument has not yet been put into practice.

45

Between 1975 and 1988, three areas were declared wildlife refuges on private property by means ofgovernmental Supreme Decree (Huancaroma Hacienda W. R. 1975, Espiritu W. R. 1978, El DoradoW. R. 1988). The limited ability of these areas to successfully protect wildlife stems from variousfactors. Most importantly, these attempts were made in an improvised fashion, failed to educate thepublic, lacked technical capacity and viable financial sustainability strategies, and did not haveinstitutional support.

The Forestry Law also created the legal basis for various types of conservation areas, of which onecan be described as a private protected area. Natural heritage private reserves (NHPRs) aredefined as voluntary ecological easements established to conserve natural elements or scenicbeauty. This instrument is the most viable to date for private lands protection in Bolivia. Theinstrument has restrictions which may limit its potential as a private-sector biodiversityconservation mechanism. For example, the maximum size of a NHPR is 5,000 hectares. It is alsoimportant to note that the spirit of the law, as expressed in its objective, is the sustainable use offorests, with the implication that the conservation instruments created by this law serve to preserveareas for future exploitation and not for biodiversity conservation. Nevertheless, the ForestrySuperintendency has recently expressed greater interest in fulfilling its role in support of NHPRs.

During the 1990s, non-governmental and private groups began to show renewed interest in privateconservation, most notably in the department of Santa Cruz, Beni and Tarija. As a result, privateinitiatives such as the El Refugio property adjacent to Noel Kempff Mercado National Park, theterritories of the Chiquitano Forest, and NIHPRs El Corbalan and El Porvenir are being developed inspite of the associated difficulties.

Original Community Territories (TCOs) are traditional territories governed by indigenouscommunity organizations and recognized under Bolivian law as the rightful property of thesegroups. The total area of proposed TCOs is equivalent to approximately 10 percent of Boliviannational territory. While these territories are not created specifically as conservation areas, in manycases they are biologically rich and traditional natural resource management practices havemaintained the areas in a high state of conservation. The titling of these areas is scheduled to becompleted by 2006. This would converting these areas to private lands, thereby increasing theirpotential as a private conservation instrument.

It must also be noted that land acquisition, while not an instrument per se, is a way for NGOs tocarry out conserservation on private lands. Land is either donated to or purchased by a non-profitorganization (Land Trust), which then assumes the responsibility for the land's protection.

Other Conservation Instruments

Buffer zones and corridors can be considered "other" instruments for in situ biodiversityconservation, because they complement existing protected areas and often result in public-privateland combinations. All protected areas have buffer zones which must be identified and managed,and corridors are becoming increasingly common in Bolivia as a way to provide continuousprotection across ecoregions and/or habitats. These instruments are mentioned in the 1997Protected Areas Regulation and SERNAP has responsibility for coordinating and promoting bufferzones and corridors associated with protected areas.

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ANNEX 9: EXISTING PRIVATE CONSERVATION AREAS IN BOLIVIA

Name Owner Location Dept. Ecoregion |Vic. SNAP Size (ha) Legal Figure ResolutionI El Porvenir Rolando Roda Concepci6n SZ Chiquitano Forest 4577 NHPR2 Natividad Corrales Ronald Larsen Zurita Concepci6n SZ Chiquitano Forest 1423 NHPR 6/20013 Montegrande Ronald Larsen Zurita Concepcion SZ Chiquitano Forest 568 NHPR 5/20014 Los Socios Ronald Larsen Nielsen Concepci6n SZ Chiquitano Forest 2014 NHPR 4/20015 Monteverde Ronald Larsen Nielsen Concepci6n SZ Chiquitano Forest 2202 NHPR 3/2001

6 Los Remates Duston Larsen Metenbrik Concepci6n SZ Chiquitano Forest 2508 NHPR 2/20017 San Miguelito Ronald Larsen Nielsen Concepci6n SZ Chiquitano Forest 1064 NHPR 1/20018 Orocutui Ovidio Roca Buena Vista SZ Chiquitano Forest NHPR9 Arubay Javier Coimbra Canton Terebito SZ 500 NHPR in process10 Potrerillos de Guenda Antonio Bonaso Prov. Ibafiez SZ Bolivian Yungas Amboro 373 NHPR in process1_ El Paquio Victor Tufifio San Javier SZ 2129 NHPR in process12 El Triunfo y El Progreso Nelson Rodriguez Cant6n Buena Vista SZ Bolivian Yungas Amboro NHPR in process13 El Prado Luis Saucedo Cant6n San Ignacio SZ 1200 NHPR in process14 Los Volcanes Albert Schweining Cant6n Bermejo SZ Bolivian Yungas Amboro 289 NHPR in process15 El Corbalan PROMETA Provincia Gran Chaco TJA Gran Chaco 5000 NHPR in process16 El Paraiso del Tordo Juan y Ursula Tarraga Provincia O'Connor TJA Andean Yungas Tariquia 340 none in process17 Hacienda Huancaroma Familia Rodriguez Balanza Cant6n Eucaliptus OR Wildlife Refuge D.S. 1272118 Estancias Elsner et al Peter Elsner Provincia Ballivian BE Beni Swamp & Beni Biolo- 29,750 Wildlife Refuge R.M. 210/70/78

Gallery Forest gical Station19 Estancias Porvenir el al Provincia Iturralde LP Wildlife Refuge R.M. 340/8820 Alarachi PROMETA Cant6n Alarachi TJA Andean Yungas Tariquia 5000 none in process21 El Refugio SZ Cerrado Noel Kempff22 Unnamed* Clara Urquhart Koch San Matias SZ Pantanal San Matias 17,000 none23 Unnamed PROMETA Sidras Prov. Arce TJA Andean Yungas Tariquia being acquired24 Unnamed PROMETA Emborozu Prov. Arce TJA Andean Yungas Tariquia being acquired25 Unnamed-Brazil Nut Properties* 38 properties/owners Manuripi/Suarez PAN Amazonia Manuripi 151,400 none

*Interested but as yet unprotected

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ANNEX 10: SITE SELECTION CRITERIA

The following is a list of criteria to be applied to areas to measure their value as privateconservation areas:

SIT &SEUEC T g10 9CRIC RIATx Et ; -l-- ^> i ,Q, . -**,._ , * , m-,~ , A* )-t;i->

Threatened or endangered species

High priority ecosystem

Located in a corridor area

Protects sources of water

Protects scenic beauty

Ecosystems of education and/or scientific value

Provides environmental services

Proximity to national protected area

PLUS category Protection and Conservation

C1LTVRA4LCCRITERI.I'. .-I '

Possesses historical or arqueological value

Contribute to protection of cultural or hist. comm. values

LEGCIL'REQ1.'ISITES. i '' ' 4 tA. -4, t ' "

Owner possesses legal title to land

Property is registered in Bolivian real estate registry

Property is free of liens

If communaly owned, can assign an easement

Property is free of squatters

OTHERFVACTORS. ; U - i,, s' - !, . i:Property is threatened by human development

Property is easily accessible for protection purposes

Community supports conservation of the site

Protection represents a precedent in NR protection

PRIORITIES ' -v ' ' .,

Size of property (hectares)

Located in organization's priority area of work

Exist incentives, or opportunity to set precedent

Availability of financial resources

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ANNEX 11: STAKEHOLDER ASSESSMENT

ACTORS INTERESTS NEEDS POSITION

Campesinos Utilize natural resources to Arable land for small-scale We depend on natural resourcesstabilize/improve family socio- farming; timber for domestic use for survival; if natural resourceeconomic situation; help and to sell for additional income; use is restricted, how will weconserve biodiversity; protect pastures for livestock; water for live? We have a traditional rightfamily/possessions from irrigation; fauna for domestic use to use the resources on ourpredators (animals); maintain or to sell for additional income; land.cultural traditions; migrate to plants for medicinal purposes.the city.

Indigenous Groups Utilize natural resources to Arable land for small-scale We depend on natural resourcesstabilize/improve family socio- farming; timber for domestic use for survival and theeconomic situation; maintain and to sell for additional income; perpetuation of our culture; wecultural traditions; help pastures for livestock; water for have always used our naturalconserve bio-diversity; protect irrigation; fauna for domestic use resources sustainably; we havefamily and possessions from or to sell for additional income; a right to the land and itspredators (animals); plants for medicinal purposes. resources because we have

always occupied and worked it.

Large-Scale Cattle Maximize the number of cattle Extensive pastures for grazing; Natural resources andRanchers per given limited resources; water; roads to transport biodiversity need to be

conserve biodiversity. livestock to market. exploited to some extent; weneed to achieve a balance.

Large-Scale Farmers System of production that Productive soils; water for Natural resources andmaximizes profits (short term) irrigation; roads to deliver biodiversity need to beincluding mono-crop produce to market; fertilizers; exploited to some extent tocultivation; conserve bio- improved seed varieties. benefit mankind; we need todiversity and natural heritage. achieve a balance.

Non-Active Extract resources to meet tax Income from low capital- or If conservation can be doneLandowners and upkeep burdens; conserve labor-intensive productive cost-effectively then we would(inherited property, resources and biodiversity; activities such as logging or be interested.etc.) preserve family heritage. orchard farming.

NGOs Promote natural resource/ Proven conservation results to Natural resource andbiodiversity conservation. maintain institutional credibility. biodiversity conservation are

necessary to sustain life onEarth, and also contribute toimproved quality of human life(reduction of poverty).

Government Encourage the exploration and Income from the export of Conservation of naturalextraction of renew-able and natural raw materials; Comply resources and biodiversity is anon-renewable natural with international environment determinant of future well-resources for export (minerals, treaties, protect natural heritage; being of the population; presentnat. gas, oil, timber); protect enforce laws. well-being is tied to resource-natural heritage; promote based economic performance;eco/etno-tourism. sustainable development is

needed to bridge the two.

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ANNEX 12: COMPLEMENTARITY WITH OTH1ER GEF PROJECTS

The current project complements and is consistent with the program "Sustainability of the NationalSystem of Protected Areas" being undertaken by the GEF/World Bank in Bolivia. The followingtable shows the major areas of complementarity between the two projects:

Project Bolivia GEF/SNAP Private Conservation ProjectRegulatory Framework Private conservation mentioned in Develops Private Protected Areafor biodiversity Protected Areas Law Regulation, NHPR and CEconservation procedures, incentivesImproved representativity Yes Yes, identifies private reserves,of ecosystems under protected areas and conservationprotection easements in under-represented

areasBiodiversity conservation No Yes, identifies private reserves,in buffer zones and protected areas and conservationcorridors easements in buffer zones and

corridorsDiversification of actors Yes, focus on local Yes, focus on private landownersdirectly involved in authorities,communitiesbiodiversity conservationDevelopment of Yes, develops overall Yes, adapts SERNAPmethodologies for methodology methodology to private areasprotected area mgmt.Linkages to private, Weak Yes, major focus on private,productive sectors productive sectors

In addition, the project is consistent with the UNDP GEF enabling activity that focuses on capacitybuilding and the formulation of a National Biodiversity Strategy and Action Plan through a fullyparticipatory process that will include government, private sector, and NGOs.. The project couldalso benefit from outcomes and lessons learned from the UNEP regional project that aims tocatalyze conservation action in Latin America through the identification of priority s and bestmanagement practices.

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ANNEX 13: LETTER OF ENDORSEMENT

REPUBLICA DE BOLIVIAMrNISTERIO DR HACIENDAVlcintillilurio de rIversift PObilCA

Y Finnciwmiito BxttrnmLa Paz, 1 4 FEB 2000VIPFE/DGFE/NEG-00724/2000

Setlora JU D ADeborah BatemanREPRESENTANTE t U iC. 2000BANCO MUNDIALPresente

Ref.: SOLICITUD ENDOSO PROYECTO HERRAMIENTASBASICAS PARA LA GESTION DE LAS AREASPROTEGIDAS DE BOLIVIA

Seriors Representante:

Como es de su conocimiento, B/ Comite Nacional GEF celebr6 laDeclmocuarta Reunidn, oportunided en que se evalud el concepto delProyecto de referencla, reformulado y complementado por la ONG PROMETAde Tarija.

Al respecto, le informo que el proyecto de referencia ha sido aprobado por elComite de Seleccidn de Pro yectos GEF con las recomendacionesmencionadas en el acta adiunta. Por su intermedlio deseo endosar iaprapueTng tiUD) L,JtblJU uL DWWW UIII wUL61 ULY UUUd LI) IImwil" )Fakffny.

Con este motivo, saludo a usted atentamente.

11527/1999 .- .

MRO , /VoBo MZV Feche tVoBo VHB '\Fech RECIBI1DO %

Feche de elebora fgn 04/10/99 12:00 0M W Fecha

HOra.

T015 595s z:G1 00vE/FO,L

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Annex 14: Principles and Guidelines for Population Issues Management in PrivateProtected Areas in Bolivia

GEF Mid-size Project: Removing obstacles for direct private sector participation in insitu biodiversity conservation

Existing regulations, incentives and capacities for in situ biodiversity conservation in Bolivia arelimited in such a way that there is little direct participation in biodiversity conservation byimportant sectors such as private landowners and NGOs. As a consequence, the Boliviangovernment is left as the principal and virtually sole protagonist, with the risks and limitations thatthis situation entails for maximizing the overall impact and sustainability of national biodiversityconservation efforts.

The objective of the project is to consolidate methodology, policy and innovative procedures inorder to facilitate and develop private conservation initiatives that will contribute to globally-significant biodiversity conservation in high-priority ecoregions. The project proposes analternative course of action over a three-year period which will produce the following fouroutcomes: i.) Regulatory and incentive framework strengthened; ii) Benefits of privateconservation instruments and incentives demonstrated in four pilot areas; iii) Landowners outsideof pilot sites enabled and encouraged to participate in private conservation; and iv) Project impactmaximized through the dissemination of results in Bolivia and elsewhere in Latin America. Inorder to produce the above outcomes, the following four project components will be implemented:

Regulatory and Incentive Framework: The objective of this component is to strengthen theregulatory and incentive frameworks for private conservation.

Pilot Areas Creation and Management: The objective of this component is to demonstrate thebenefits of private conservation instruments and incentives through pilot area experiences. Fourpilot areas are being considered:

o Pilot Area Iwill constitute Bolivia's first Private Protected Area (PPA), the 5,000-hectare"El Corbalan" Reserve located in the Bolivian Chaco. The area is property of theproponent organization PROMETA, who will manage the land throughout the project. Thisexperience will demonstrate the conversion of a Natural Heritage Private Reserve (NHIPR)to a PPA, and will test policies and methodologies for management plan formulation andimplementation, monitoring, and the application of incentives in the form of technicalassistance.

O Pilot Area II will be an existing NHPR in the Chiquitano Forest in eastern Bolivia, and willdemonstrate policies for NHPR creation (based on past experience), management planformulation and implementation, and financial and legal incentives.

o Pilot Area III will demonstrate the creation of Bolivia's first Conservation Easement on a"Tahuamanu" Brazil Nut-producing property, located in the Southwest Amazonian MoistForest eco-region in northwestern Bolivia. The experience will be disseminated nationally,and in particular to the more than 35 landowners of 150,000 hectares of similar Brazil Nutproperties.

52

o Pilot Area IV will demonstrate the process of purchasing and managing land forconservation. In the Adopt-an-Acre program of The Nature Conservancy, funds raisedfrom across the United States are donated to an NGO in another country for the purchaseand management of land. For the project, PROMETA's acquisition experiences with the2,500-hectare "Alarachi" property will be systemized and disseminated (GEF funds will notbe used for land acquisition). The property forms part of the Andean Yungas "Tariquia-Baritu" International Ecological Corridor which links the Tariquia Flora and FaunaNational Reserve in Bolivia to Baritu National Park in Argentina.

Capacity Building for New Initiatives: The objective of this component is to encourage andenable landowners outside of pilot sites to participate in private conservation.

Dissemination: Project results will be documented and disseminated over the Internet and bymail to project stakeholders, national and international NGOs, national and local authorities,academic institutions. Project results will also form part of a broader dissemination campaignin Bolivia targeting the public in general, and communities in and around key protected areas.

The sum total of these components and outcomes represents the application of an overall strategy toremove the legal, institutional, financial and technical obstacles to the successful implementation ofprivate conservation instruments. For the project, the proponent organization PROMETA isenlisting the support of The Nature Conservancy, of which PROMETA has been a partner since1994, and will ally itself strategically with private lands practitioners in other Latin Americancountries, such as the team at Pronatura in Mexico who are working on a similar GEF project.

This initiative complements the ongoing "Sustainability of the National System of Protected AreasProgram", which aims to ensure the conservation and the sustainable management of representativeecosystems and biodiversity of Bolivia through a national system of protected areas. Therefore, itfully endorses the guidelines adopted by the NSPA program, as well as the Bolivian legislation andregulations, as summarized below.

Overall Framework

Taking into account the characteristics of the National System of Protected Areas of Bolivia, theapplicable legislation, together with the SNAP policies and management strategies, Bolivia hasenvisaged mechanisms that guarantee the compatibility of the biodiversity conservation objectiveswith human presence within the conservation units, in such a way that the process of creation,delimitation, categorization, zoning and preparation of management plans for the protected areas isbased on the documented consultation and decision making with the local population. Suchparticipation ensures the feasibility of management in the Protected Area and its socialsustainability.

Following this framework, the proposed project will seek to harmonize the practices of landowners,resident and user communities in each private protected area (PPA) with the conservation ofecosystems. However, in case of exceptional, unavoidable situations that might create conflicts ofuse affecting populations within the PPAs, concerted strategies will be established aiming at theresolution of these conflicts without affecting the rights of the population while ensuring theobjectives of the Private Protected Area, in the context of the policies established in the presentdocument and the applicable national legislation. This project will develop guidelines forsituations which could require the voluntary displacement of populations, as part of its scope.However, no displacement of population is contemplated in any of the pilot cases.

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When based on this Annex, unless otherwise required by a different context, the terms defined inthe PROMETA GEF Grant Agreement will bear the meanings herein set forth.

1. PRINCIPLES

Minimizing Population Displacement

Population displacement is not foreseen in the context of this project and will be avoided in theplans designed for each Private Protected Area. In this context, the practices of the resident or usercommunities of the Area will be studied in order to identify the type of relation existing between thenatural and social environments. When practices or behaviors that negatively affect the ecosystemare identified, programs will be designed to modify these. Those behaviors and practices that areharmonious with the PA ecosystems will be encouraged through specific programs.

In the event that a specific ecosystem is severely exposed, whether as a result of its fragility, limitedcapacity to receive human settlements, or when the system is particularly important for preservationpurposes, the possibility of limiting access to the ecosystem or to the use of its resources will beanalyzed. In the context of the pilot projects, the involuntary displacement of the population will betotally avoided.

Consultation and Participation

When access to or use of resources must be limited, a Socio-Economic Impact Management Planshall be designed in consultation with the affected people. Each Plan will be implemented with theparticipation of the affected people.

Re-establishing Previous Socio-economic Conditions

The aim of the Socio-Economic Impact Management Plan is to re-establish the socio-economicconditions of the population affected by the use restrictions imposed, and whenever possible, to tryto improve those conditions.

Respect for Cultural Standards

The cultural, social, economic rights of the indigenous peoples that live in the Bolivian territory arerecognized, respected and protected. Consequently, Socio-Economic Impact Management Plansinvolving indigenous people will be designed and carried out respecting the cultural standards of theaffected people.

Target Population of this Policy Framework

This policy framework shall apply to all those persons who as a result of any of its subprojects:

must be voluntarily displaced from their place of residencyare subject to limitation of the use of resources needed for their subsistencesuffer negative effects on the means of subsistence or productive activitiesare isolated from their neighbors and disconnected from their social networks.

The Framework will not apply to persons who carry out activities or actions classified as offensesaccording to applicable national laws.

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Determining Population's Restriction of Use or Access

The PA Management Plans will include a diagnostic of the population living in the PPA and thePPA zoning, including use restrictions. These Plans would determine the mechanisms andinitiatives that will be used to achieve the harmonization between biodiversity conservation and thehuman presence in the PPAs. These plans, as well as the specific study on the characteristics,customs and behaviors of the population inhabiting and/or using the Private Protected Area, willserve as a basis to determine whether or not there is a need for population displacement orrestriction to the access or use of certain natural resources.

Procedure for Re-establishment of Initial Socio-economic Conditions

Once the need to limit the use of, or access to, specific resources is confirmed, the followingactivities will be carried out:

* Census and Socio-economic and Cultural Study. A census and a detailed socio-economicstudy of the affected population will be carried out, including information about thedemographic characteristics (number of people, sex, age), social information (kinship, typeof family or social unit, educational level, occupation, workplace) and economicinformation (income source and level). The social organization and the cultural features ofthe population will also be analyzed.

* Identification of Impacts Caused by Limitation of the Use or Access to Resources: Based onthe socio-economic characteristics of the population subject to the limitation of use oraccess to specific resources, the socio-economic impacts faced as a result of these actionswill be identified (for example: loss of income and its sources, access to public and socialservices, changes in family and social organization, etc.).

* Determining Impact Prevention, Mitigation and Compensation Alternatives and EligibilityCriteria. According to the type of impact faced and the socio-economic and culturalcharactenrstics of the population, alternatives will be determined to manage the impactscaused by the limitation of the use of or access to resources. These alternatives will beidentified with the participation of the persons affected. Production alternatives will beidentified so that the population affected may re-establish or improve their initial socio-economic conditions.

For each alternative solution, in the case of mitigation and compensation of the impactscaused by the limitation of the access to or use of resources, eligibility criteria will bedetermined. These criteria will be validated with the affected people. Acceptance, togetherwith the type of solution offered, will be recorded in a signed document.

* Preparation of Socio-Economic Impact Management Plans: To plan the implementation ofthe alternatives identified, Socio-Economic Impact Management Plans will be prepared forthose who are subject to the restriction or limitation of the use of, or access to, determinedresources. The Socio-Economic Impact Management Plans to address the restrictions ofaccess or use of specific resources shall include the following:

o Location and description of the Protected Areao Specific location of the area in which use of, or access to, resources shall be limited

and location of the population who utilizes said resources

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o Description of the resources or areas where access to, or use of, will be limitedo Reasons for limiting the access to, or use of, these resourceso Results of the socio-economic and cultural assessment of the population affected by

the limitation of the access to, or use of, the resourceso Identification and analysis of the impacts caused by the limitation of the access to

or use of the resourceso Solution alternatives based on the type of impact caused and the characteristics of

the populationo Applicable legal frameworko Eligibility criteria for each solution alternativeo Measures to prevent use of, or access to, restricted resources by other population

groupso Information and consultation programo Program aimed at developing alternative productive activities to re-establish or

improve income levels and economic networkso Organic structure responsible for plan implementationo Human and physical resources required for plan implementationo Budgeto Time scheduleo Tracking and monitoring systemo Evaluation system

The Socio-Economic Impact Management Plans prepared for specific PAs will be submitted to thenon-objection of the World Bank under the GEF Project.

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