The International Tropical Timber Organization

INTERNATIONAL TROPICAL TIMBER ORGANIZATION

ITTO

PROJECT PROPOSAL

TITLE: STRENGTHENING THE PRODUCTION, MARKETING AND CONSERVATION OF PINABETE IN GUATEMALA

SERIAL NUMBER: PD 746/14 Rev.2 (M)

COMMITTEE: ECONOMICS, STATISTICS AND MARKETS

SUBMITTED BY: GOVERNMENT OF GUATEMALA

ORIGINAL LANGUAGE: SPANISH

SUMMARY:

Guatemala has special bio-physical features resulting from the confluence of geo-morphological, climate, soil and water characteristics that lead to the development of a wide range of ecosystems and associated biotic and abiotic resources. This diversity has been recognized at the national and international levels; therefore, all actions aimed at biodiversity conservation are consistent with the existing natural context.

Guatemala’s flora diversity includes unique and rare endemic species with a limited range area in the country. Pinabete (Abies guatemalensis Rehder) is one of the unique endemic species that are part of Guatemala’s wild flora diversity. It has traditionally been used by native communities settled in its natural range area for different purposes, mainly timber, firewood and cultural ceremonies. The use of pinabete has only recently increased as a result of its incorporation into the Guatemalan “Christmas tree” culture.

Due to the poor production and marketing of pinabete, the lack of information on natural regeneration and ecological restoration, and limited community and municipal involvement in the conservation and use of this species, both communities and producers lack adequate conditions and capacities to ensure the effective utilization of pinabete forests.

In view of the above and considering that pinabete (Abies guatemalensis R.) is an endangered species whose protection has become a matter of national interest and urgency, it is necessary to implement and strengthen actions aimed at supporting institutional policies and reverting the current threat on pinabete. Furthermore, it is also important to strengthen the capacities of communities and producers by providing them with tools to access markets and meet consumer demands so as to increase their competitiveness and enhance their business and marketing skills while at the same time ensuring the sustainable management of their plantations.

The development objective of the project is to “contribute to the conservation of pinabete by promoting sustainable production activities”. Its specific objective is to “enhance the capacities of Guatemala’s rural communities in the conservation and marketing of pinabete products through the sustainable management of pinabete forests”.

EXECUTING AGENCY: NATIONAL FOREST INSTITUTE (INAB)

DURATION: 36 MONTHS

BUDGET AND POSSIBLE FINANCING SOURCES: Source Contribution in US$

ITTO 508,872.00

INAB 132,192.00

CONAP 42,768.00

TOTAL 683,832.00 Table of Contents

PROJECT BRIEF ...... 2 ACRONYMS AND ABBREVIATIONS ...... 5 MAP OF PROJECT AREA ...... 6 PART 1. PROJECT CONTEXT ...... 7 1.1 Origin 7 1.2 Relevance 8 1.2.1 Conformity with ITTO's objectives and priorities 8 1.2.2 Relevance to the submitting country’s policies 9 1.3 Target area 10 1.3.1 Geographic location 10 1.3.2. Social, cultural, economic and environmental aspects 11 1.4 Expected outcomes at project completion: 13 PART 2. PROJECT RATIONALE AND OBJECTIVES ...... 14 2.1 Rationale 14 2.1.1 Institutional set-up and organizational issues 14 2.1.2 Stakeholder analysis 14 2.1.3 Problem analysis 16 2.1.4 Logical framework matrix 20 2.2 Objectives 22 2.2.1 Development objective and impact indicators 22 2.2.2 Specific objective and outcome indicators 22 PART 3. DESCRIPTION OF PROJECT INTERVENTIONS ...... 23 3.1 Outputs and activities 23 3.1.1 Outputs 23 3.1.2 Activities 23 3.2 Implementation approaches and methods 24 3.3 Work Plan 25 3.4 Budget 27 3.5 Assumptions, risks, sustainability 40 3.5.1 Assumptions and risks 40 3.5.2 Sustainability 40 PART 4. IMPLEMENTATION ARRANGEMENTS ...... 42 4.1 Organizational structure and stakeholder involvement mechanisms 42 4.1.1 Executing agency and partners 42 4.1.2 Project management team 42 4.1.3 Project Steering Committee 43 4.1.4 Stakeholder involvement mechanisms 43 4.2 Reporting, review, monitoring and evaluation 43 4.3 Dissemination and mainstreaming of project learning 43 4.3.1 Dissemination of project results 43 4.3.2 Mainstreaming of project learning 44 ANNEX 1. Profiles of the executing and collaborating agencies ...... 45 ANNEX 2. Tasks and responsibilities of key experts provided by the executing agency ...... 48 ANNEX 3. Tasks and responsibilities of key experts funded by ITTO ...... 50 ANNEX 4. Recommendations of the 47th ITTO Expert Panel and corresponding modifications ...... 53 ANNEX 5. Regulations for the management of pinabete plantations and seed production areas, Government Agreement No. 198-2014...... 54 ANNEX 6. Recommendations of the 48th ITTO Expert Panel and corresponding modifications ...... 55

-1- PROJECT BRIEF

1. Current situation and problems to be solved

Pinabete has traditionally been used by native communities settled in its natural range area for different purposes, mainly timber, firewood and cultural ceremonies. The use of pinabete has only recently increased as a result of its incorporation into the Guatemalan “Christmas tree” culture.

2. Development and specific objectives

The development objective of the project is to “contribute to the conservation of pinabete by promoting sustainable production activities”.

The specific objective is to “enhance the capacities of Guatemala’s rural communities in the conservation and marketing of pinabete products through the sustainable management of pinabete forests”.

3. Beneficiaries, Outcomes and Outputs

The local communities, small owners of forestry and/or agroforestry lands, pinabete producers, community organizations and local governments have been identified as major project beneficiaries.

Main expected outcomes are:

 The project is expected to help increase the national forest cover and ensure the appropriate use and conservation of forests, incorporating these practices into an integrated system that will contribute to food security and poverty reduction in the country, particularly by maintaining and expanding natural populations of pinabete.  The project will contribute to the strengthening of the technical, production and marketing capacities of organized pinabete producers and the inclusion of new producers to promote legal logging activities and sustainable pinabete production.  The project is also expected to improve pinabete management and rehabilitation actions and thus create new opportunities for the commercial harvesting of this species so as to contribute to its conservation through the promotion of “ex-situ” conservation, thus generating new sustainable production economic options.  The project will strengthen the participation of local communities and municipalities in the conservation and use of pinabete through the implementation and management of conservation and rehabilitation mechanisms in pinabete forests.

-2- The project is expected to produce the following outputs:

Output 1. Pinabete production and marketing strengthening plan. Output 2. Natural forest restoration and regeneration program. Output 3. Plan to strengthen municipal community involvement in pinabete conservation and utilization activities.

4. Implementation approaches and methods and stakeholder involvement

The project will implement its activities by strengthening the capacity of INAB, CONAP and other forest sector stakeholders. To this end, the project will use a participatory approach ensuring the involvement of the direct beneficiaries themselves, and will develop processes aimed at the conservation and production of pinabete products and by-products through the strengthening of capacities and means for sustainable forest management.

Project implementation will take the following steps to ensure that this approach is implemented:

Strategic partnerships: a series of workshops and meetings will be held with key stakeholders from civil society, local governments and institutions working in the field in direct contact with the target beneficiaries so as to establish coordination mechanisms aimed at joining efforts and thus reaching out to a larger audience.

Knowledge strengthening: it is expected that the training, technical assistance and information provided will improve the general knowledge on strategic pinabete aspects and, as a result, on the sustainable management of the species, as well as on the development of economic activities for local communities and producers based on the sustainable utilization of this species.

Forest culture: An information and awareness-raising campaign will be implemented at different levels and through different means of dissemination and communication with a view to promoting a forest culture in society in general, and in particular, to provide information on the use of pinabete products and by-products sourced from plantations as well as on the conservation and protection of both this species and forests in general.

Technical guidelines for plantation management: These guidelines will provide useful information on the most important technical aspects that should be considered for the production and maintenance of plantations and will help to raise awareness on the importance of the conservation and management of forest resources, thus contributing to sustainable community development and promoting social and environmental responsibility in the use of forest resources.

Establishment of a business management strategy and a market survey for producers: The purpose of establishing a business management strategy and a market survey is to combine both human and material resources in order to attain the objective of producers, taking advantage of existing local opportunities in order to maximize profits. The aim is to develop sustainable competitive advantages in terms of products, markets, resources and capacities that will be perceived as such by potential clients and that will facilitate the achievement of expected objectives.

Support for producers in trade fairs and business rounds: these rounds are aimed at facilitating product marketing and trade through the development and positioning of pinabete products and by-products by promoting information sharing between suppliers and consumers of forest goods and services. Finally, the project will help producers to participate in national and international trade fairs.

5. Sustainability of project outcomes

Project activities are designed to contribute and strengthen conservation actions for the species, including in the political-economic, social-environmental, cultural and institutional areas, thus providing for the establishment of partnerships between the public and private sectors, (national and international) NGOs, governments, municipalities and communities.

Furthermore, direct project beneficiaries will have access to economic activities through the development of market opportunities. This strategy will thus generate economic income and employment and promote sustainable livelihoods and will also lead to the conservation and rehabilitation of pinabete forests as it will become an effective alternative for the reduction of the socio-environmental vulnerability of prioritized areas.

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This project will implement activities aimed at inter-institutional coordination. Furthermore, the project will strengthen the institutional capacity of INAB and CONAP and other national and local agencies. Thus, it will strengthen local capacities for the management and sustainable utilization of this species and will hence contribute to the sustainability of natural resources in the country.

Institutional sustainability

Improving the capacity of the institutions involved in national forest sector activities will contribute to achieving sustainability in the provision of services for the efficient management of the country’s forest resources. As this is part of the mission statement of both institutions (INAB, CONAP), the continuity of project outputs is ensured. Similarly, both institutions have undertaken to carry out the necessary actions to strengthen their regional and sub-regional offices distributed throughout the central and western altiplano of Guatemala so that they will have the capacity to efficiently and effectively respond to the needs and demands of community groups and pinabete producer and consumer groups, among others.

The strengthening of the capacities of INAB and CONAP and other key stakeholders, inter-institutional coordination and partnerships with the public and private sectors, (national and international) NGOs, municipalities and communities will guarantee the continuity of project actions.

Financial sustainability:

In addition, the budgetary support provided by INAB and CONAP will guarantee the continuity of project activities and both institutions will secure funds through the search for and identification of different cooperation mechanisms both at the national and international levels.

6. Financial contributions

Financial Source Contribution (US$) % ITTO 508,872.00 74 INAB 132,192.00 19 CONAP 42,768.00 7 TOTAL 683,832.00 100

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ACRONYMS AND ABBREVIATIONS

ANPROPIGUA Asociación Nacional de Productores de Pinabete de Guatemala (National Pinabete Producers’ Association of Guatemala) BOSCOM Proyecto de Fortalecimiento Forestal Municipal y Comunal (Municipal and Communit Forestry Strengthening Project) CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora CONAP Consejo Nacional de Áreas Protegidas (National Council for Protected Areas) DIPRONA División de Protección a la Naturaleza (Division for the Protection of Nature) FMP Forest Management Plan HDI Human Development Index IARNA Instituto de Ambiente y Recursos Naturales (Institute for the Environment and Natural Resources) IIA Instituto de Investigaciones Agronómicas (Institute for Agricultural Research) INAB Instituto Nacional de Boques (National Forest Institute) ITTA International Tropical Timber Organization, 2006 ITTO International Tropical Timber Organization IUCN International Union for the Conservation of Nature MAGA Ministerio de Agricultura, Ganadería y Alimentación (Ministry of Agriculture, Livestock and Food) MARN Ministerio de Ambiente y Recursos Naturales (Ministry of the Environment and Natural Resources) MP Ministerio Público (Public Ministry) NGO Non-government organization PA Protected Area PFN Programa Forestal Nacional (National Forest Programme) PINFOR Programa de Incentivos Forestales (Forest Incentive Programme) PINPEP Programa de Incentivos Forestales para Poseedores de Pequeñas Extensiones de Tierra de Vocación Forestal o Agroforestal (Forest Incentive Programme for Small Forest and Agroforestry Landholders) PSC Project Steering Committee SFM Sustainable forest management SIFGUA Sistema de Información Forestal de Guatemala (Forest Information System of Guatemala) SIGAP Sistema Guatemalteco de Áreas Protegidas (Guatemalan System for Protected Areas) URL Universidad Rafael Landívar (Rafael Landívar University) USAC Universidad de San Carlos de Guatemala (University of San Carlos of Guatemala) UVG Universidad del Valle de Guatemala (University of the Valley of Guatemala)

-5- MAP OF PROJECT AREA

-6- PART 1. PROJECT CONTEXT

1.1 Origin

The studies on Abies guatemalensis Rehder started in the 1950’s. The results of these studies showed the vulnerability of this species due to land-use change and to the fact that it is an endemic species found only in a limited number of areas of the Guatemalan and Mexican altiplano regions as it requires special micro- climate conditions for its development.

The original natural range area of pinabete covered 558,858 hectares, but by 1979 a natural range area of 71,000 hectares was reported. A survey carried out by CONAP and INAB in 1999 identified 63 sites covering a total area of 39,208 hectares, which comprised 25,255 hectares of pure forest stands (species dominance) and 13,953 hectares of mixed forest stands with pinabete presence. A more recent survey of pinabete carried out by CONAP in 2008 reported 98 sites covering a total area of 27,548.29 hectares.

In order to counteract the loss of pinabete resources, the Government of Guatemala has taken a number of measures, including policy actions such as declaring pinabete as a protected species in the country, and listing pinabete in CITES Appendix I in 1975, which was ratified in 1979 by the Congress of the Republic. In addition, since 1973, government institutions have carried out operational activities which include establishing control posts along roads, monitoring markets to seize ornamental products, and implementing public awareness campaigns on the importance of pinabete for the ecosystem.

A “National Pinabete Conservation Strategy”1 was developed in 1997. It envisaged five strategic areas of action where State institutions had direct and/or shared responsibilities with non-government organizations. This Strategy was reviewed and updated in 2008 to adjust it to the current status of pinabete. Thus, the current strategy includes 7 strategic areas of action that should be pursued in a coordinated manner by the State, local governments, organized civil society and the academic sector in order to contribute to the conservation and restoration of this protected species.

1 GUATEMALA. 1998. National Strategy for Pinabete Conservation. National Council for Protected Areas – CONAP.

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1.2 Relevance

1.2.1 Conformity with ITTO's objectives and priorities

This project is consistent with the following objective set out in the International Tropical Timber Agreement (ITTA) 2006: “to promote the sustainable management of tropical timber producing forests”. The project will carry out activities that are consistent with ITTO´s mandate of promoting the conservation, rehabilitation and sustainable management of forests for the benefit of the world community, in particular, the communities living in forests and benefiting from their services.

Furthermore, project actions will be in consonance with the following ITTO objectives: c) Contributing to sustainable development and to poverty alleviation. The project will help improve income levels and generate employment for the communities whose livelihoods directly depend on pinabete products and by-products, by providing alternatives such as the establishment of pinabete plantations and nurseries. n) Strengthening the capacity of members to improve forest law enforcement and governance, and address illegal logging and related trade in tropical timber. The project is expected to strengthen the governance of the species production sector through community organization and inter-institutional coordination. q) Promoting better understanding of the contribution of non-timber forest products and environmental services to the sustainable management of tropical forests with the aim of enhancing the capacity of members to develop strategies to strengthen such contributions in the context of sustainable forest management, and cooperating with relevant institutions and processes to this end. The project is designed to strengthen the capacity of the population regarding the environmental services of pinabete forests through training and awareness-raising.

Furthermore, the project is included within the framework of the ITTO-CITES Programme as it is a tree species listed in CITES Appendix I, and will therefore contribute to the achievement of the overall objective of that Programme, to wit:

“To ensure that international trade in CITES-listed tropical tree species is consistent with their sustainable management and conservation

In addition, the project will contribute to the following activities of the Programme:

 Act. 2.2: Improve knowledge concerning ecology and silviculture of each species through information gathering to fill identified knowledge gaps.  Act. 2.3: Develop or improve management plans and/or non-detriment findings for sustainable management and conservation of the species in each of the range states  Act. 3.2: Develop co-operative and cost-effective regulatory systems for product tracking and chains of custody by identifying training needs relating to industry and trade, understanding market studies, and identifying and implementing economic incentives for compliance.  Act. 3.4: Produce technical guides and materials constituting a "tool box" for range States and trading partners.

Furthermore, the proposal will contribute to the achievement of the objectives set out in ITTO Strategic Action Plan 2013-2018 as follows:

 Increasing the contribution of tropical forests to national and local economies including through international trade, since the project will strengthen the capacity of forest communities and small landowners for the sustainable management of their forests, which will in turn improve the living standards of the population and reduce poverty levels by enhancing business and marketing skills.  Enhancing the conservation and sustainable use of biodiversity in tropical timber producing forests by increasing local capacities for the implementation of sustainable forest management practices.

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1.2.2 Relevance to the submitting country’s policies

Since pinabete is an endangered endemic forest species, it is protected under the Political Constitution of the Republic of Guatemala2, the Law for Protected Areas3 and the Forestry Law4. In addition, this species is listed in Appendix I of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) as approved and ratified by Guatemala through Decree No. 63-79 of the Congress of the Republic.

The Political Constitution of the Republic of Guatemala declares the conservation, protection and improvement of the natural heritage of the Nation as a matter of national interest. With regard to the protection and conservation of the environment and its relationship with Man, the Political Constitution of the Republic of Guatemala specifically states the following:

 “Article 64. Natural heritage. The conservation, protection and improvement of the natural heritage of the Nation shall be declared as a matter of national interest. The State shall promote the establishment of national parks, reserves and natural sanctuaries, which shall be inalienable assets. The protection of these areas and the fauna and flora resources therein shall be ensured by law.”

Based on this constitutional mandate, Decree No. 68-86 – “Law for the Protection and Improvement of the Environment” was promulgated. The fundamental principle of this law is as follows: “The State, the municipalities and the population of the national territory shall support social, economic, scientific and technological development to prevent the pollution of the environment and maintain the ecological balance. Thus, the utilization and harvesting of fauna, flora, soil, underground and water resources shall be conducted in a rational manner.”

The Law for Protected Areas (Legislative Decree No. 4-89) states the following objective (Articles 1, 2, 3 and 4): “... protection, conservation and improvement of natural resources in the country, including prevention of their degradation, misuse or destruction, and restoration of the environment in general...”. This law provides for the establishment of the Guatemalan System of Protected Areas – SIGAP as the agency in charge of conservation of biological diversity, administration and protection of areas of interest, promotion of development, and use of wild fauna and flora conservation and sustainable harvesting methods, specifically to ensure the conservation and safeguarding of the national genetic resource base and coordination for the monitoring of illegal activities, forest protection and illegal trade in endangered species. In its Articles 81 and 82, this legislation refers to the protection of pinabete as follows:

 ARTICLE 82. The illegal transport, exchange, marketing or export of life or dead specimens, or part thereof, or any products derived from endangered or endemic wild fauna and flora species or species classified as endangered in CONAP’s listings shall carry a penalty of five to ten years in prison and 10,000 – 20,000 Quetzals in fines.

The objective of the Forestry Law (Decree No. 101-96), as stated in its Article 1, is "... reforestation and forest conservation to promote forest development and sustainable forest management...". This Law provides for the establishment of the National Forest Institute – INAB as the agency responsible for the national forest service and the administration and protection of forest areas outside protected areas, specifically in relation to the issuing of forest harvesting permits, forest incentives, coordination of actions to control illegal activities, and the protection of forests. Its Articles 34 and 89 refer to the protection of pinabete as follows:

 ARTICLE 34. Bans and prohibitions. The logging of trees of protected and endangered species listed in the existing national registries and future registries to be jointly developed by INAB and CONAP, and the listings established in accordance with international conventions ratified by Guatemala, as well as trees of superior genotypes identified by the Institute, is hereby prohibited. INAB shall ensure the protection of these species and shall encourage their conservation and reproduction.  ARTICLE 89. Forest penalties. Forest crimes shall carry penalties in accordance with the provisions of Chapter II, Title VI, Book I, of the Criminal Code and the Code of Criminal Procedure.

2 GUATEMALA. 1985. Political Constitution of the Republic of Guatemala. National Constitutional Assembly. 3 GUATEMALA. 1989. Legislative Decree No. 4-89 – Law for Protected Areas. Congress of the Republic of Guatemala. 4 GUATEMALA. 1996. Legislative Decree No. 101-96 – Forestry Law. Congress of the Republic of Guatemala.

-9- Pinabete is included under the National Policy on Biological Diversity5, whose overall objective is: “to promote the cross-cutting and effective management of biological diversity in Guatemala, focusing on its conservation and sustainable use and valuing it as a crucial factor for transgenerational integrated human development.

In addition, the “National Strategy for Pinabete Conservation” outlines components and actions aimed at the conservation of the species. It further defines the institutional and conceptual strategic frameworks, background, general diagnosis, geographic and administrative scenarios, strategic objectives, principles and values, goals and lines of action, sectoral and institutional involvement, financial sustainability, monitoring and evaluation, as well as a proposal for mechanisms to ensure its continuity.

1.3 Target area

1.3.1 Geographic location

This national project will be mainly aimed at the departments where there is the greatest concentration of natural pinabete forests and voluntary plantations. In view of this, the project will prioritize certain areas of the Guatemalan altiplano, including the departments of Totonicapan, Quetzaltenango, Huehuetenango, Chimaltenango and San Marcos.

Furthermore the geographic distribution or range area of pinabete coincides with areas of high population density. For many years, major areas of pinabete forests have been illegally and unsustainably harvested, causing residual forest stands with high degrees of degradation. In addition, the constant pressures exerted on these forests by fires, livestock grazing and land-use changes have promoted the genetic destruction and degradation of natural pinabete stands, thus making them easy prey to the attacks of plagues and diseases.

From 2007 to 2011, sales of legally sourced pinabete trees (registered voluntary plantations) have been gradually increasing by an average of 5% annually, but in 2012 they increased by 25%. Furthermore, it is expected that in the next few years production levels will be maintained or increased due to the large number of plantations that are being established. Since 2008, the promotion of integrated utilization of pinabete

5 CONAP (2011). National Policy on Biological Diversity. National Council for Protected Areas. Guatemala. Policies, Programs and Projects No. 13 (01-2011). 41pp.

-10- plantations has been strengthened through the marketing of products made from the branches of pinabete trees, including wreaths and garlands, which have been well accepted by the market and have provided “additional” sources of income and economic benefits to pinabete producers.

Taking into account that the establishment of pinabete plantations requires a high level of investment, an annual average of 18.5 hectares of plantations have been established over the past 5 years. From 2010 to date, there has been a strong increase in the number of plantations due to the establishment of plantations in small plots from 0.05 hectares upwards, as farmers consider this to be a viable alternative to increase their income levels and to the fact that most of these plantations have been established with the support of CONAP and NGOs together with the Forest Incentive Programme for Small Forest or Agroforestry Landowners – PINPEP.

The Forest Incentive Programme for Small Forest and Agroforestry Landholders6 – PINPEP focuses on the holders of small areas of land that are not under land titles but are suitable for forestry and agroforestry purposes. The Programme benefits the holders of small areas of land from 0.1 hectares in size. Furthermore, the PINPEP Law promotes gender equity, prioritizing the involvement of women groups in the management of natural forests as well as the establishment and maintenance of forest plantations and agroforestry systems. PINPEP was established through Decree No. 51-2010 of the Congress of the Republic of Guatemala.

This program provides economic incentives for the establishment of voluntary pinabete plantations with the aim of promoting the production of Christmas trees from authorized plantations and thus reduce the pressure exerted on natural forests. PINPEP incentives are provided to plantation-grower landholders for a period of 6 years, during which the beneficiaries must comply with the requirements established by law as well as PINPEP regulations. These include the submission of a plantation management plan and of proof of landholding status, and a plantation area of at least 0.1 hectares but no larger than 15 hectares.

Given that the majority of pinabete plantations are currently in the growing stage, it is estimated that within 5 years these plantations will have a production potential of 40,000 Christmas trees.

The Regulations for the Management of Pinabete Plantations and Seed Production Areas, which were approved on 20 June 2014 through Government Agreement No. 198-2014, regulate the registration of pinabete plantations, nurseries and seed production areas, as well as the harvesting of pinabete products and by-products7.

1.3.2. Social, cultural, economic and environmental aspects

Environmental Area Social aspects Cultural aspects Economic aspects aspects Wool woven fabrics, There are both ceramics, furniture, According to the dense pure and The communities masks, musical 2002 National mixed forests of Mayan origin instruments, wooden Census, that contain a have a relation with toys, iron and tin Totonicapán has a low percentage the forest that is products, candles, total population of of coniferous linked to their leather goods, tiles, 96,392 inhabitants, species, such as cosmovision and mud bricks, roof tiles and out of this pinabete, that their traditional use and fireworks, are all total, 45,121 are are currently Totonicapán of forest goods and in the list of men and 51,630 considered to be services, such as handmade production are women. A total endangered due the consumption of priorities of the of 44,762 people to unregulated firewood, timber for Municipality live in urban areas logging and the construction, food (Municipal Dictionary while 51,630 live in lack of control and others, as well of Guatemala, 2001). rural areas. over annual as representing The list is much coupes. sacred sites. shorter for

agricultural

production as it only

6 Landholders are not necessarily the owners of the land but have all or some of the rights over its use. 7 See Annex 7.

-11- Environmental Area Social aspects Cultural aspects Economic aspects aspects includes wheat, corn, beans and oats.

The communities of Mayan origin have a relation with Huehuetenango the forest that is It is made up of has a total linked to their 28% coniferous population of cosmovision and Wheat is cultivated in secondary forest, 986,224, with their traditional use cold land areas 32%mixed forest 71.3% living under Huehuetenango of forest goods and throughout the and 16% the poverty line services, such as department of broadleaved (703,293 people) the consumption of Huehuetenango. forest. and 22% living in firewood, timber for extreme poverty construction, food (217,289 people). and others, as well as representing sacred sites. The communities Chimaltenango of Mayan origin has a total have a relation with Its main agricultural population of the forest that is products include: It is made up of 519,667, with linked to their coffee from Pochuta 17% secondary 60.5% living under cosmovision and and beans from forest, 10% the poverty line their traditional use Acatenango and coniferous forest, (approximately Chimaltenango of forest goods and Parramos, as well as 58% mixed 314,389 persons) services, such as high quality sugar forest and 16% and 19.3% living in the consumption of cane, corn, wheat broadleaved extreme poverty firewood, timber for and all kinds of forest (approximately construction, food vegetables and fruits. 100,400 people). and others, as well

as representing

sacred sites. San Marcos has a The communities total population of of Mayan origin de 995,742, and have a relation with out of this total, the forest that is It is made up of 50.64% are linked to their Its main agricultural 17% secondary women and 49.36 cosmovision and products include: forest, 10% are men. their traditional use corn, beans, wheat, coniferous forest, San Marcos 21.80% of the total of forest goods and barley, rice, bananas, 58% mixed population lives in services, such as plantains, sugar forest and 16% urban areas with the consumption of cane, cacao, etc. broadleaved the remaining firewood, timber for forest 78.20% living in construction, food rural areas. and others, as well as representing sacred sites. Quetzaltenango The communities Because of the wide has a total of Mayan origin diversity of climates It is made up of population of have a relation with found in the 5% secondary 735,162, with 44% the forest that is department, forest, 13% living under the linked to their agricultural coniferous forest, Quetzaltenango poverty line cosmovision and production is also 43% mixed (323,403 people) their traditional use quite varied and forest and 37% and 10.1% living in of forest goods and includes: coffee, broadleaved extreme poverty services, such as wheat, potatoes, forest. (74,197 people). the consumption of onions, cabbage, firewood, timber for beet sugar, radish

-12- Environmental Area Social aspects Cultural aspects Economic aspects aspects construction, food and lettuce, among and others, as well others. There are as representing also corn and bean sacred sites. crops as well as apples, plums and peaches.

1.4 Expected outcomes at project completion:

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PART 2. PROJECT RATIONALE AND OBJECTIVES

2.1 Rationale

2.1.1 Institutional set-up and organizational issues

The project will be implemented by INAB through the Department for Strategic Forest Ecosystems of its Forest Management and Conservation Directorate.

In addition, the project will be implemented with the support of CONAP through the Forest Management Department of its General Technical Directorate. This Department is responsible for forest administration within protected areas.

From an institutional perspective, the implementation of the Pinabete Conservation Strategy is coordinated by CONAP and INAB with the support of the Public Ministry (MP), the Ministry of Governance through its Division for the Protection of Nature (DIPRONA), the National Pinabete Producers’ Association of Guatemala (ANPROPIGUA), non-government organizations (NGOs) and community associations.

In terms of community participation, the Executive Board for Natural Resources responsible for the 48 cantons of the Municipality of Totonicapán is the agency that is most directly involved in on-site monitoring of the pinabete species with the direct support of CONAP and DIPRONA.

In the last few years, the municipalities have established municipal forest, environmental and/or protected areas offices. These offices are a first step in guiding civil society participation and are coordinated by technical personnel who receive ongoing training through CONAP, INAB and other support agencies.

At the community level, the possibility of supporting the technological upgrading of management is more of a challenge; however, the communities now seem to be more willing to accept guidance and training for the management of their natural areas, mainly from international cooperation agencies.

Pinabete production in the private sector has involved the establishment of voluntary plantations by private individuals for commercial purposes. These individual producers are organized and grouped by the National Pinabete Producers’ Association of Guatemala – ANPROPIGUA. The production activities carried out by these pinabete producers help to reduce the pressure exerted on natural forests under the principle of “Production for Conservation”, as their activities help to minimize the illegal harvesting of branches from natural pinabete forests.

These stakeholders are represented in the Coordinating Committee of the Pinabete Conservation Strategy, which will serve as the Steering Committee of this Project.

2.1.2 Stakeholder analysis

Group of Problems, needs, Involvement in Characteristics Potential Stakeholders interests the project

Primary Stakeholders Settled in areas close to They are interested forests, they have in improving their limited economic Lack of working economic situation capacity; even though capital and training without degrading they are aware that they on silvicultural Communities and the forest resource Primary project must preserve the forest management and small landholders base. beneficiaries resource base, some of SFM. Interest in the them harvest their Limited knowledge conservation and forests without of forest regulations. restoration of their adequate management forests. plans.

-14- Lack of technical capacity and They are extremely They are in close mechanisms to concerned about the contact with the verify the legality of conservation and communities and Direct involvement Community forest operations. protection of natural are willing to in project organizations Lack of financing for resources and actively support the implementation pinabete production participate in social implementation of and conservation development activities. the project. activities.

Problems of access to markets due to Weak organization to volumes and prices. negotiate the marketing Lack of knowledge of their products. and guidance in They can improve

increasing the their economic Lack of capital to carry value-added situation through ANPROPIGUA / out silvicultural Primary project component of their the sustainable Pinabete Producers management activities. beneficiaries products and in the management of

implementation of their forest Strong economic management plans resources. interest in the sale of and identification of products from their markets. plantations.

They own lands with forest resources that are They have a strong being harvested by the They can become They can provide interest in improving local communities. excellent agents for spaces for civil governance issues Some of them have the promotion of society participation Local governments and reducing social municipal forest offices, civil society and are direct and natural environmental offices participation in project renewable and/or municipal forest governance. beneficiaries. resources conflicts protected areas.

Secondary stakeholders Together with Responsible for farmers/producers, it coordinating legal promotes the production activities establishment of pure so as to reduce the plantations and Interested in pressure exerted on pinabete based agro- Direct involvement reducing utilization natural forests and INAB forestry systems in project pressure on natural at the same time through the implementation pinabete forests promote the implementation of forest conservation and incentive programs restoration of aimed at the production pinabete. of Christmas trees. .

Interested in the Responsible for conservation and Responsible for the developing actions and restoration of coordination of the Direct involvement strategies aimed at the pinabete, it seeks to CONAP National Pinabete in project protection and prevent the Conservation implementation conservation of the extinction of the Strategy. species. species.

They are interested They are in close Project in local development contact with the beneficiaries and They are extremely and in providing communities and active participants concerned about natural technical assistance are willing to in actions aimed at NGOs resources and actively to local communities support the the local participate in social and indigenous implementation of communities and development activities. peoples. the project. indigenous peoples.

-15- They have a strong They can undertake interest in participating The research They can undertake applied research on Academic in decision making and component has not ongoing research the needs and organizations in the implementation of been well on pinabete-related requirements of the management and developed. issues. local communities. conservation activities.

2.1.3 Problem analysis

Due to its geographic location, Guatemala has a high degree of flora and fauna diversity and, because of the physiographic characteristics of the country, there are “climatic islands” with high levels of endemism of species such as pinabete (Abies guatemalensis Rehder), a coniferous species with a natural range area limited to the highlands region of the country.

More than 95% of these forests have been lost over the past 45 years (CONAP, 1999). Some of the main causes that are pushing this species towards extinction include its specific micro-climatic requirements, biennial seed production cycle, low germination percentage (Strandby et al. 2007), low survival rates in plantations (Díaz, 1993), the cutting of branches for the handcrafted production of Christmas trees and decorations, land use changes, overgrazing, use of firewood and charcoal (Prado, 2007; Strandby et al. 2007, Strandby, 2008), production of ornaments in patron saint’s festivities, and Mayan rites and ceremonies (Aguilar, 2003). According to the International Union for the Conservation of Nature, it is a vulnerable species that faces a high risk of extinction in the medium term (IUCN, 2007, 2008), and because of its high levels of endemism, it has been included in the Red List of the National Council for Protected Areas of Guatemala (CONAP) and in Appendix 2 of the Convention on International Trade in Endangered Species of Wild Fauna and Flora Species (CITES). However, despite the efforts made for the conservation of the species, including its CITES listing and the studies carried out in the 1950s, the situation of pinabete seems to be rapidly deteriorating.

Products obtained from debranching and regeneration felling are used for the production of Christmas trees, causing the deformation and weakening of stems and the extinction of the species because it is precisely during this season that the trees produce seeds (currently the most significant threat to the survival of the species). In many cases, these illegal predators look for the branches of young trees, because they are better shaped and have easier access. The mutilation of young trees with better shapes causes the progressive degeneration of the stand.

The low production and marketing levels of pinabete products and by-products have specific repercussions such as a lack of knowledge about plantation management techniques, a lack of experience of producers in the marketing of the species, the absence of a market system and an increase in illegal markets. Thus, the project seeks to highlight the importance of sustainability throughout all production activities and other actions such as marketing, and to promote the use of financial instruments, such as forest incentives, adapted to the specific requirements of pinabete production. In addition, the project seeks to ensure that the promotion of pinabete plantations in the range areas of the species will meet the demand for pinabete products and by-products within the framework of sustainable production.

The lack of information on the natural regeneration and forest restoration of this species has hampered the implementation of actions and mechanisms that can be replicated at the national level and that can provide clear guidelines to replicate these practices. There are no concrete figures on the positive impact that these two activities may have on Guatemala in environmental, economic and social terms, nor on the important impact that they may have on improving the livelihoods of rural communities and on developing a better lifestyle for society at large.

At present, there is limited community-municipal involvement in the conservation and use of the species due to the insufficient knowledge of local communities on the sustainable utilization of pinabete and the importance of this species for natural ecosystems, as well as on the valuable products and by-products obtained from this species in plantations. Thus, it is necessary to raise awareness about the importance of pinabete conservation and, at the same time, promote the utilization of this resource through the development of plantations.

-16-

It is therefore necessary to tackle these problems by coordinating with the institutions responsible for the conservation of pinabete as well as with other stakeholders, by focusing on primary actions such as the conservation, restoration, production and marketing of pinabete. In addition, the project will strengthen the capacities of local communities, producer associations and local governments by promoting sustainable production, which, through the establishment and management of pinabete plantations for the production of Christmas trees, will create an economy of scale that will generate social and economic development as well as environmental sustainability for the local communities.

-17- Problem Tree

Loss of forest cover

Low level of income and limited Reduction in the goods and Accelerated degradation of pinabete forests employment services provided by forests

Limited participation of communities and Weak pinabete production and marketing Limited knowledge on restoration and municipalities in the conservation of

regeneration pinabete forests

The local communities do not have the conditions and capacities required to make efficient use of pinabete forest resources

Weak strengthening of pinabete Limited community and municipal Limited information on the natural regeneration production and marketing and restoration of the species involvement in the conservation and utilization of the species

Poor knowledge of plantation management techn iques activities Limited knowledge on pinabete restoration Limited sharing of experiences among authorities Poor training and extension on pinabete produ ction and marketing Lack of systematization of the natural regeneration Community pressure on the species dynamics of the species due to economic requirements Lack of nurseries with pinabete plantations due to species peculiarities

Poor community participation in on-site Lack of studies on the ecological dynamics of the No pinabete marketing system and no species monitoring mark eting strategy available

Limited production of native species Limited community awareness of forest incentive programs Weak promotion of pinabete products and by- produ cts Limited access to other forest restoration modalities Poor community participation in on-site monitoring -18- Objectives Tree

Conservation and restoration of forest cover

Actions to contribute to improving the Actions to contribute to the restoration Increase in the goods and household economy and conservation of pinabete forests services provided by forests

Communities and municipalities agree on Forest and land owners make use of pinabete Improved production and marketing of pinabete mechanisms conservation and restoration forest restoration and regeneration instru ments of pinabete forests

The local communities have improved their means and capacities for the conservation and marketing of pinabete forest products through sustainable forest management

Pinabete production and marketing Natural forest restoration and Plan to strengthen community and strengthening plan municipal involvement in pinabete regeneration program conservation and utilization Development of technical guides on plantation management

Development of guides on pinabete Sharing of experiences amongst municipal and Development of a production and marketing restoration community authorities strengthening plan and training and extension programs for producers Establishment of at least 1 pilot natural regeneration site Local community training and awareness- Establishment of nurseries for pinabete raising in the sustainable management and production conservation of natural pinabete forests Development of an ecological restoration model Development of a marketing strategy and a market survey Establishment/strengthening of nurseries for Strengthening of community organization for the production of native species on-site monitoring Support for producers in the marketing of their products Promotion of forest incentive programs Establishment of agroforestry systems as a amongst local communities Systematization and sharing of production forest restoration alternative experiences on pinabete production and marketing -19- 2.1.4 Logical framework matrix

Project element Indicators Means of Verification Assumptions

Development objective:  By 2020, deforestation  Forest records  Availability of Contribute to the has been reduced by at from INAB and background conservation of pinabete least 32,000 ha. CONAP information for the by promoting sustainable  By 2024, the natural  Maps of forest identification and production activities. pinabete forest cover cover and prioritization of has increased by at dynamics areas of greater impact of least 200 ha through  Registry of incentives at the the establishment of SIGAP departmental and pinabete plantations. conservation municipal levels  By 2024, the supply of areas  Availability of pinabete products baseline and by-products from geographic plantations has information on the increased from 10,000 species in to 30,000 units, thus protected areas. improving the economic income of at least 600 families.  By 2030, the market is supplied with timber and firewood from the pinabete plantations established.

Specific objective:  By the end of the  CONAP and  INAB and Enhance the capacities of project, the number of INAB records. CONAP have Guatemala’s rural plantation pinabete  Data from the sufficient communities in the producers has National Forest budgetary conservation and increased. Registry. resources to marketing of pinabete  By the end of the  Management ensure the products through the project, at least 600 plans. smooth sustainable management community members  Number of functioning and of pinabete forests. have improved their projects listed development of capacity for the under forest their activities. conservation and incentive marketing of pinabete programmes in products. prioritized  By the end of the community areas. project, at least 200  Lists of management plans participants. (inc. conservation or  Project progress protection actions) reports. have been developed and submitted to INAB to obtain forest incentives.

Output 1: A Pinabete  By the end of the first year  Records of events  There are market Production and Marketing of the project, at least 1 and participants alternatives for Strengthening Plan has technical guide on  Minutes/Reports the marketing of been implemented plantation management  Technical guides pinabete has been developed and developed products. printed.  Nurseries  By the end of the first year established of the project, at least 5  Market surveys, production nurseries have profitability been established in analysis. priority areas.

-20- Project element Indicators Means of Verification Assumptions

 By the end of the project,  Training reports at least 10 training and extension events addressed to producers have been implemented.  By the end of the project, a business strategy and market survey (including market studies and profitability analysis, etc.) have been developed for producers.  By the end of the project, at least 9 business events (trade fairs, business rounds, tours) have been conducted and/or attended by producers to promote their products.  By the end of the project, at least 3 innovative experiences on pinabete production and marketing have been systematized. Output 2: A Natural  By the end of the project,  Number of  Endorsement of Forest Regeneration and at least one pilot site for hectares universities and Restoration Program natural forest established under research centers under implementation. regeneration has been a restoration for the established. model. implementation  By the end of the project,  Management plans of biological and at least one forest  Specific restoration administrative restoration model for model for pinabete. surveys on pinabete forests has been  Pinabete pinabete to documented. restoration support the  By the end of the project, guides. conservation at least 5 nurseries for the strategy. production of native plants have been established /strengthened to be used in restoration activities.  By the end of the project, at least 1 pinabete restoration guide has been developed.

Output 3: A plan to  By the end of the project,  Records of events  Key institutional strengthen community and at least 3 experience- and participants stakeholders municipal involvement in sharing tours have been  Records of the cooperate to pinabete conservation and carried out with the National Police, ensure the utilization has been participation of municipal Judicial effective implemented. and community Department and implementation of authorities. Departmental the National  By the end of the project, Offices of Pinabete at least 300 people from CONAP and INAB. Conservation local communities have  Records of Strategy. participated in training implementation,  Local and awareness-raising research, technical stakeholders activities on the use and administration and (communities, conservation of pinabete law enforcement municipalities, forests. government

-21- Project element Indicators Means of Verification Assumptions

 By the end of the project, agencies regarding agencies) support at least 200 people from illegal pinabete- and participate in prioritized areas have related activities the Pinabete received information on Legality forest incentive programs. Promotion Plan.

2.2 Objectives

2.2.1 Development objective and impact indicators

Contribute to the conservation of pinabete by promoting sustainable production activities.

Long-term impact indicators are:

 By 2020, deforestation has been reduced by at least 32,000 ha.  By 2024, the natural pinabete forest cover has increased by at least 200 ha through pinabete plantations established and registered with RNF.  By 2024, the supply of pinabete products and by-products from plantations has increased from 10,000 to 30,000 units, thus improving the economic income of at least 1000 families.  By 2030, the market is supplied with timber and firewood from the pinabete plantations established.

2.2.2 Specific objective and outcome indicators

Enhance the capacities of Guatemala’s rural communities in the conservation and marketing of pinabete products through the sustainable management of pinabete forests.

Outcome indicators are:

 By the end of the project, the number of plantation pinabete producers has increased.  By the end of the project, at least 600 community members have improved their capacity for the conservation and marketing of pinabete products.  By the end of the project, at least 200 management plans (inc. conservation or protection actions) have been developed and submitted to INAB to obtain forest incentives.

-22- PART 3. DESCRIPTION OF PROJECT INTERVENTIONS

3.1 Outputs and activities

3.1.1 Outputs

Output 1. Pinabete production and marketing strengthening plan.

Output 2. Natural forest restoration and regeneration program.

Output 3. Plan to strengthen municipal and community involvement in pinabete conservation and utilization activities.

3.1.2 Activities

To achieve the planned outputs, the project will implement the following activities:

Output 1. A pinabete production and marketing strengthening plan has been implemented

Activity 1.1: Develop technical guides on plantation management.

Activity 1.2: Develop a production and marketing strengthening plan.

Activity 1.3: Develop training and extension programs addressed to producers.

Activity 1.4: Establish nurseries for the production of pinabete seedlings.

Activity 1.5: Develop a marketing strategy and a market survey for pinabete products and by-products.

Activity 1.6: Support producers in the marketing of their products in trade fairs and business fora identified in the market survey.

Activity 1.7: Systematize and share experiences on the production and marketing of pinabete products and by-products.

Output 2. A natural forest restoration and regeneration program under implementation.

Activity 2.1: Establish at least 1 pilot natural regeneration site.

Activity 2.2: Develop a restoration model for pinabete forests.

Activity 2.3: Establish/strengthen nurseries for the production of native species (not necessarily forest species).

Activity 2.4: Establish agroforestry systems as a production forest restoration alternative.

Activity 2.5: Develop pinabete restoration guides.

Output 3. A plan to strengthen municipal and community involvement in pinabete conservation and utilization activities has been implemented

Activity 3.1: Carry out experience-sharing tours with municipal and community authorities on natural forest protection and conservation activities and on sustainable integrated management of pinabete plantations for the production of Christmas trees and related products.

Activity 3.2: Provide training and awareness-raising to local communities in the management and conservation of natural pinabete forests.

-23- Activity 3.3: Strengthen community organization for on-site monitoring.

Activity 3.4: Promote forest incentive programs amongst local communities with natural and potential pinabete forest areas through training workshops to incorporate natural forest protection and reforestation projects into the programs.

3.2 Implementation approaches and methods

Project implementation will take the following steps to ensure that this approach is implemented:

-24- 3.3 Work Plan

Year 1 Year 2 Year 3 Outputs / Activities Responsible Party 1 2 3 4 1 2 3 4 1 2 3 4 Output 1

A.1.1. Develop technical guides on plantation Project Coordinator /Forest management management consultant

A.1.2 Develop a production and marketing Project Coordinator /Project strengthening plan Assistant

A.1.3 Develop training and extension Project Coordinator /Project programs addressed to producers technical assistant

A.1.4 Establish nurseries for the Project Coordinator production of pinabete seedlings /Project Assistant

A.1.5 Develop a marketing strategy and a Project Coordinator market survey for pinabete products /Marketing consultant and by-products

A.1.6 Support producers in the marketing of their products in trade fairs and Project Coordinator /Project

business fora identified in the market technical assistant survey A.1.7 Systematize and share experiences on Project Coordinator the production and marketing of /Experience systematization pinabete products and by-products consultant

Output 2

Project Coordinator A.2.1 Establish at least 1 pilot natural /Forest restoration regeneration site consultant

Project Coordinator A.2.2 Develop a restoration model for /Forest restoration pinabete forests consultant

A.2.3 Establish/strengthen nurseries for the Project Coordinator production of native plants (not /Forest restoration necessarily forest species) consultant

Project Coordinator A.2.4 Establish agroforestry systems as a /Forest restoration production forest restoration alternative consultant

Project Coordinator A.2.5 Develop pinabete restoration guides /Forest restoration consultant

-25- Year 1 Year 2 Year 3 Outputs / Activities Responsible Party 1 2 3 4 1 2 3 4 1 2 3 4

Output 3 A.3.1 Carry out experience-sharing tours with municipal and community authorities on natural forest protection and conservation Project Coordinator activities and on sustainable /Project assistant integrated management of pinabete plantations for the production of Christmas trees and related products A.3.2 Provide training and awareness-raising Project Coordinator to local communities in the /Forest management management and conservation of consultant natural pinabete forests Project Coordinator A.3.3 Strengthen community organization for /Forest management on-site monitoring consultant A.3.4 Promote forest incentive programs amongst local communities with natural and potential pinabete forest Project Coordinator areas through training workshops to /Project technical assistant incorporate natural forest protection and reforestation projects into the programs.

-26- 3.4 Budget

3.4.1 Master budget

Output Budget Quantity ITTO Description Unit Unit cost Total cost EA CA /Activity component Year 1 Year 2 Year 3 Year 1 Year 2 Year 3

Output 1 Pinabete production and marketing strengthening plan

A.1.1 Develop technical guides on plantation management

Forest management consultant to develop Person 13 6 0 0 2000 12000 12000 0 0 0 0 technical plantation management guides /month

Design and printing of technical guides 61 500 0 0 Guides 8 4000 4000 0 0 0 0

A.1.2 Develop a pinabete production and marketing strengthening plan

Marketing consultant to develop marketing Person 13 3 0 0 2000 6000 6000 0 0 0 0 strengthening plan /month

Person Business management consultant 13 3 0 0 2000 6000 6000 0 0 0 0 /month

A.1.3 Develop training and extension programs addressed to producers

Training workshops for promoters and Workshop extension officers (6 workshops, 30 people, 2 61 60 60 60 30 5400 1800 1800 1800 0 0 /day/person events per year)

Printing of training materials for extension 61 500 0 0 Material 20 10000 10000 0 0 0 0 services to producers

A.1.4 Establish nurseries for the production of pinabete plants

2 technicians to support the implementation of Person 12 2 2 2 900 10800 0 0 0 5400 5400 nurseries (1 from CONAP, 1 from INAB) /month

1 vehicle to provide technical assistance in 41 1 0 0 Vehicle cost 27000 27000 27000 0 0 0 0 production (dual-cabin 4x4 pick-up truck)

-27- Output Budget Quantity ITTO Description Unit Unit cost Total cost EA CA /Activity component Year 1 Year 2 Year 3 Year 1 Year 2 Year 3

Materials for 15 pinabete nurseries (seeds, Nurseries 61 5 5 5 500 7500 2500 2500 2500 0 0 bags, tools, insecticides, fungicides) /materials

2 training workshops for the establishment of 61 60 0 0 person/day 30 1500 1500 0 0 0 0 nurseries (30 people, 1 day)

A.1.5 Develop a marketing strategy and a market survey for pinabete products and by-products

Marketing consultant to develop a market person 13 0 4 0 2000 8000 8000 0 0 0 0 survey for producers /month

3 Market survey dissemination workshops (1 person 61 0 105 0 20 2100 0 2100 0 0 0 workshop per pilot site, 35 people, 1 day) /day

printed Printing of market survey report for producers 61 0 400 0 8 3200 0 3200 0 0 0 document

A.1.6 Support producers in the marketing of their products in trade fairs and business fora identified in the market survey

DSA for producers - participation in trade fairs person and other trade fora (40 people, 3 events per 31 120 120 120 120 12600 4200 4200 4200 0 0 /day year)

Support materials for producers (banners, 61 1 0 0 lump sum 1000 1000 1000 0 0 0 0 among others)

A.1.7 Systematize and share experiences on the production and marketing of pinabete products and by-products

3 experimental field tours (30 people, 2 days) 61 90 90 90 person /day 90 24300 8100 8100 8100 0 0

Transport for experimental field tours 33.3 30 30 30 participant 40 3600 1200 1200 1200 0 0

-28- Output Budget Quantity ITTO Description Unit Unit cost Total cost EA CA /Activity component Year 1 Year 2 Year 3 Year 1 Year 2 Year 3

Consultant for the participatory systematization person 13 0 0 4 2000 8000 0 0 8000 0 0 of successful experiences /month

Printing of document on successful experiences 61 0 0 500 copies 8 4000 0 0 4000 0 0

Design and layout of video on best practices for 21 0 0 1 video 2500 2500 0 0 2500 0 pinabete conservation and production

Output 2 Natural forest restoration and regeneration program under implementation

A.2.1 Establish at least 1 pilot natural regeneration site

person Forest restoration consultant (pilot site selection) 13 5 0 0 2000 10000 10000 0 0 0 0 /month

2 training workshops (30 people, 1 day) 61 60 0 0 person /day 25 1500 1500 0 0 0 0

2 technicians to support training (1 from INAB, person 12 4 0 0 900 7200 0 0 0 3600 3600 1 from CONAP) /month

A.2.2 Develop a restoration model for pinabete forests person Forest restoration consultant 13 2 0 0 2000 4000 4000 0 0 0 0 /month

6 workshops on forest restoration (2 workshops workshop 61 180 0 0 30 5400 5400 0 0 0 0 per pilot site, 1 day, 30 participants) /day

Materials (wire, tape, plants, tools) 61 1 lump sum 1500 1500 1500 0 0 0 0

2 technicians to support workshops (1 from person 12 0 2 2 900 7200 0 0 0 3600 3600 INAB, 1 from CONAP) /month

-29- Output Budget Quantity ITTO Description Unit Unit cost Total cost EA CA /Activity component Year 1 Year 2 Year 3 Year 1 Year 2 Year 3

A.2.3 Establish/strengthen nurseries for the production of native plants (not necessarily forest species)

Equipment for pinabete plantation management (scissors/clippers, power pruners, manual 44 1 0 0 lump sum 1000 1000 1000 0 0 0 0 shears, etc.)

Purchase of inputs for 5 native species 61 1 2 2 lump sum 1000 5000 1000 2000 2000 0 0 nurseries

A.2.4 Establish agroforestry systems as a production forest restoration alternative

person Forest restoration consultant 13 2 0 0 2000 4000 4000 0 0 0 0 /month

Purchase of inputs (fertilizer, plants, etc.) 61 1 0 0 lump sum 1000 5000 1000 2000 2000 0 0

A.2.5 Develop pinabete restoration guides

Forest restoration consultant to develop person 13 0 4 0 2000 8000 0 8000 0 0 0 restoration guides /month

Design, development and printing of guides 61 500 0 0 guides 10 5000 0 5000 0 0 0

Output 3 Plan to strengthen municipal and community involvement in pinabete conservation and utilization activities

Carry out experience-sharing tours with municipal and community authorities on natural forest protection and conservation activities and on sustainable integrated management of pinabete plantations for the production of A.3.1 Christmas trees and related products

1 experience sharing tour with municipal and 31 60 0 0 person /day 100 6000 6000 0 0 0 0 community authorities (30 people, 2 days)

-30- Output Budget Quantity ITTO Description Unit Unit cost Total cost EA CA /Activity component Year 1 Year 2 Year 3 Year 1 Year 2 Year 3

A.3.2 Provide training and awareness-raising to local communities in the management and conservation of natural pinabete forests

9 workshops for local community awareness- 15 90 270 0 person /day 30 8100 0 8100 0 0 0 raising (30 people, 1 day)

A.3.3 Strengthen community organization for on-site monitoring

6 meetings to strengthen on-site community 61 40 40 40 person /day 30 3600 1200 1200 1200 0 0 organization (20 people, 1 day)

Projection equipment 41 4 0 0 equipment 800 3200 3200 0 0 0 0

Portable computer equipment (Laptop 4G RAM, 500 GB Hard Disk, 2.5 GHZ Processor, 41 4 0 0 equipment 1500 6000 6000 0 0 0 0 including desk, printer, chair and bag/case)

Promote forest incentive programs amongst local communities with natural and potential pinabete forest areas through training workshops to A.3.4 incorporate natural forest protection and reforestation projects into the programs

6 training workshops to promote forest incentives amongst local communities 61 40 40 40 person /day 30 3600 1200 1200 1200 0 0 (20 people, 1 day)

SUB- 254,800 140300 50600 38700 12600 12600 TOTAL

A0.0 Non-activity based expenses

person Project coordinator 111 12 12 12 1,600 57,600 0 0 0 57,600 0 /month

person Secretarial support 112 12 12 12 700 25,200 0 0 0 25,200 0 /month

person Project technical assistant 12 12 12 12 1500 54000 18000 18000 18000 0 0 /month person Accountant - administrator 113 12 12 12 900 32,400 10,800 10,800 10,800 0 0 /month

-31- Output Budget Quantity ITTO Description Unit Unit cost Total cost EA CA /Activity component Year 1 Year 2 Year 3 Year 1 Year 2 Year 3

A0.12 Office costs - INAB (Capital Items) 41 12 12 12 monthly rent 300 10,800 0 0 0 10,800 0

Office costs - CONAP (Capital Items) 41 12 12 12 monthly rent 300 10,800 0 0 0 0 10,800

monthly A0.14 Office costs (Consumable Items) 54 12 12 12 200 7,200 2,400 2,400 2,400 0 0 amount

monthly A0.15 Fuel 51 12 12 12 1,000 36,000 12,000 12,000 12,000 0 0 amount monthly Vehicle spares and insurance 52 12 12 12 150 5,400 1,800 1,800 1,800 0 0 amount monthly A0.16 Duty Travel (Coordination) 31 12 12 12 700 25,200 8,400 8,400 8,400 0 0 amount monthly DSA - INAB 31 12 12 12 300 10,800 0 0 0 10,800 0 amount monthly DSA - CONAP 31 12 12 12 300 10,800 0 0 0 0 10800 amount

monthly A0.17 Miscellaneous 61 12 12 12 150 5,400 1,800 1,800 1,800 0 0 amount

monthly A0.18 Office utilities - INAB 53 12 12 12 150 5,400 0 0 0 5,400 amount monthly A0.19 Office utilities - CONAP 53.1 12 12 12 150 5,400 0 0 0 0 5,400 amount monthly A0.20 Materials and supplies 54 12 12 12 150 5,400 1800 1800 1800 0 0 amount

person A0.2 Audits (annual and final) 62 1 1 1.5 2,500 8,750 2,500 2,500 3,750 0 0 /month

SUB- 316,550 57700 57700 58950 109800 32400 TOTAL

-32- Output Budget Quantity ITTO Description Unit Unit cost Total cost EA CA /Activity component Year 1 Year 2 Year 3 Year 1 Year 2 Year 3

A0.5 Monitoring and evaluation

ITTO Monitoring and review 82 1 1 1 lump sum 10,000 30000

Ex-post Evaluation 84 0 0 1 lump sum 15,000 15000

ITTO programme support costs 85 0 0 0 lump sum 54,522 54522

INAB management costs 72 0 0 0 lump sum 9,792 9792

CONAP management costs 72 0 0 lump sum 3,168 3168

SUB- 112,482 TOTAL GRAND 683,832 TOTAL

-33- 3.4.2. Consolidated budget by component

Item Description TOTAL YEAR 1 YEAR 2 YEAR 3 10 Personnel 111 Project Coordinator 57600 19200 19200 19200 12.1 Project Technical Assistant 54000 18000 18000 18000 112 Secretarial support 25200 8400 8400 8400 113 Accountant - administrator 32400 10800 10800 10800 Consultant in systematization of successful 131 8000 0 0 8000 experiences 132 Forest management consultant 12000 12000 0 0 133 Forest restoration consultant 26000 18000 8000 122 2 support technicians from INAB and CONAP 25200 10800 7200 7200 134 Marketing consultant 14000 6000 8000 0

135 Business management consultant 6000 6000 0 0

19. Component Total 260400 109200 79600 71600

20 Sub-contracts

21.1 Design and layout of video on best practices 2500 0 0 2500 for forest landscape restoration

29. Component Total 2500 0 0 2500 31 Duty travel 25200 8400 8400 8400

312 DSA - INAB 10800 3600 3600 3600

312 DSA - CONAP 10800 3600 3600 3600

DSA for producers - participation in trade fairs and 314 12600 4200 4200 4200 other trade fora (40 people, 3 events per year)

33.3 Transport for experimental field tours 3600 1200 1200 1200

39. Component Total 63000 21000 21000 21000 40 Capital Items 41 Office costs - INAB (rent) 10800 3600 3600 3600

411 Office costs - CONAP (rent) 10800 3600 3600 3600

1 vehicle to provide technical assistance in 43 27000 27000 0 0 production (dual-cabin 4x4 pick-up truck)

44 Projection equipment 3200 3200 0 0

Portable computer equipment (Laptop 4G RAM, 441 500 GB Hard Disk, 2.5 GHZ Processor, including 6000 6000 0 0 desk, printer, chair and bag/case)

Equipment for pinabete plantation management 443 (scissors/clippers, power pruners, manual shears, 1000 1000 0 0 etc.) 49. Component Total 58800 44400 7200 7200

-34- Item Description TOTAL YEAR 1 YEAR 2 YEAR 3 50 Consumable Items 51 Fuel 36000 12000 12000 12000 52 Vehicle spares and insurance 5400 1800 1800 1800 53 Office utilities - INAB 5400 1800 1800 1800 531 Office utilities - CONAP 5400 1800 1800 1800 54 Materials and supplies 5400 1800 1800 1800 541 Office expenses 7200 2400 2400 2400 59. Component Total 64800 21600 21600 21600 60 Miscellaneous

61 Sundry 5400 1800 1800 1800

611 Design and printing of technical guides 4000 4000 0 0

Printing of training materials for extension services 612 10000 10000 0 0 to producers 6 training workshops for promoters and extension 613 5400 1800 1800 1800 officers

Materials for 15 pinabete nurseries (seeds, bags, 614 7500 2500 2500 2500 tools, insecticides, fungicides)

2 training workshops for the establishment of 615 1500 1500 0 0 nurseries

616 3 Market survey dissemination workshops 2100 0 2100 0

617 Printing of market survey report 3200 0 3200 0

618 3 experimental field tours 24300 8100 8100 8100

1 experience sharing tour with municipal and 619 6000 6000 0 0 community authorities

6110 Printing of document on successful experiences 4000 0 4000 0

2 training workshops for the establishment of 6111 1500 1500 0 0 regeneration site

6112 6 training workshops on forest restoration 5400 5400 0 0

Forest restoration materials (wire, tape, plants, 6113 1500 1500 0 0 tools)

Purchase of inputs for the establishment of 5 6114 5000 1000 2000 2000 native species nurseries

Purchase of inputs for the establishment of 6115 agroforestry systems as a forest restoration 5000 1000 2000 2000 modality Design, development and printing of technical 6116 5000 0 5000 0 guides on pinabete restoration

6117 8100 0 8100 0

6 meetings to strengthen on-site community 6118 3600 1200 1200 1200 organization

6 training workshops to promote forest incentives 6119 3600 1200 1200 1200 amongst local communities

-35- Item Description TOTAL YEAR 1 YEAR 2 YEAR 3 Support materials for producers (banners, among 6120 1000 1000 0 0 others)

62 Audits (annual and final) 8750 2500 2500 3750 69. Component Total 121850 52000 45500 24350 70 National management costs 71 INAB management costs 9792 72 CONAP management costs 3168 79. Component Total 12960 80 Project monitoring & administration 82 ITTO Monitoring and review 30000 84 Ex-post Evaluation 15000 85 ITTO programme support costs 54522 89. Component Total 99522 100 GRAND TOTAL 683,832

-36- 3.4.3 ITTO budget by component

Item Description TOTAL YEAR 1 YEAR 2 YEAR 3 10 Personnel 113 Accountant - administrator 32400 10800 10800 10800 Consultant in systematization of successful 131 8000 0 0 8000 experiences 132 Forest management consultant 12000 12000 0 0 133 Forest restoration consultant 26000 18000 8000 0 134 Marketing consultant 14000 6000 8000 0

123 Project Technical Assistant 54000 18000 18000 18000

135 Business management consultant 6000 6000 0 0

Component Total 152400 70800 44800 36800 30 Travel 25200 8400 8400 8400

31 Duty travel 25200 8400 8400 8400

DSA for producers - participation in trade fairs and 311 12600 4200 4200 4200 other trade fora (40 people, 3 events per year)

312 Transport for experimental field tours 3600 1200 1200 1200

Component Total 41400 13800 13800 13800 40 Capital Items 1 vehicle to provide technical assistance in production 43 27000 27000 0 0 (dual-cabin 4x4 pick-up truck)

44 Projection equipment 3200 3200 0 0

Portable computer equipment (Laptop 4G RAM, 500 441 GB Hard Disk, 2.5 GHZ Processor, including desk, 6000 6000 0 0 printer, chair and bag/case)

Equipment for pinabete plantation management 443 1000 1000 0 0 (scissors/clippers, power pruners, manual shears, etc.)

Component Total 37200 37200 0 0 50 Consumable Items 51 Fuel 36000 12000 12000 12000 52 Vehicle spares and insurance 5400 1800 1800 1800 53 Materials and supplies 5400 1800 1800 1800 541 Office expenses 7200 2400 2400 2400

59. Component Total 54000 60 Miscellaneous

61 Sundry 5400 1800 1800 1800

611 Design and printing of technical guides 4000 4000 0 0 Printing of training materials for extension services to 612 10000 10000 0 0 producers 6 training workshops for promoters and extension 613 5400 1800 1800 1800 officers Materials for 15 pinabete nurseries (seeds, bags, tools, 614 7500 2500 2500 2500 insecticides, fungicides)

615 2 training workshops for the establishment of nurseries 1500 1500 0 0

-37- Item Description TOTAL YEAR 1 YEAR 2 YEAR 3 616 3 Market survey dissemination workshops 2100 0 2100 0 617 Printing of market survey report 3200 0 3200 0 618 3 experimental field tours 24300 8100 8100 8100 1 experience sharing tour with municipal and 619 6000 6000 0 0 community authorities

6110 Printing of document on successful experiences 4000 0 4000 0

2 training workshops for the establishment of 6111 1500 1500 0 0 regeneration site

6112 6 training workshops on forest restoration 5400 5400 0 0

6113 Forest restoration materials (wire, tape, plants, tools) 1500 1500 0 0

Purchase of inputs for the establishment of 5 native 6114 5000 1000 2000 2000 species nurseries

Purchase of inputs for the establishment of 6115 5000 1000 2000 2000 agroforestry systems as a forest restoration modality

Design, development and printing of technical guides 6116 5000 0 5000 0 on pinabete restoration 9 training workshops for local community awareness- 6117 8100 0 8100 0 raising 6 meetings to strengthen on-site community 6118 3600 1200 1200 1200 organization

6 training workshops to promote forest incentives 6119 3600 1200 1200 1200 amongst local communities

Support materials for producers (banners, among 6120 1000 1000 0 0 others) Design and layout of video on best practices for 6121 2500 0 0 2500 pinabete conservation and production

62 Audits (annual and final) 8750 2500 2500 3750 69. Component Total 124350 52000 45500 26850 80 Project monitoring & administration 81. ITTO Monitoring and review 45000 Sub-total (11-82) 454350 ITTO programme support costs (12% of 1-82) 54522 89. Component Total 454350 100 GRAND TOTAL 508,872

-38- 3.4.4. Executing agency budget by component

Item Description TOTAL YEAR 1 YEAR 2 YEAR 3 10 Personnel 111 Project Coordinator 57600 19200 19200 19200 112 Secretarial support 25200 8400 8400 8400

122 1 support technician - INAB 12600 5400 3600 3600

Component Total 95400 33000 31200 31200 30 Duty travel DSA - INAB 10800 3600 3600 3600

Component Total 10800 3600 3600 3600 40 Capital items

41 Office costs - INAB (rent) 10800 3600 3600 3600

Component Total 10800 3600 3600 3600

50 Consumable items 53 Office utilities - INAB 5400 1800 1800 1800

Component Total 5400 1800 1800 1800 70 National management costs

71 INAB management costs 9792 Component Total 9792 TOTAL 132,192

3.4.5 Collaborating agency budget by component

Item Description TOTAL YEAR 1 YEAR 2 YEAR 3

122 1 support technician - CONAP 12600 5400 3600 3600

Component Total 12600 5400 3600 3600 30 Duty travel DSA - CONAP 10800 3600 3600 3600

Component Total 10800 3600 3600 3600 40 Capital items

41 Office costs - CONAP (rent) 10800 3600 3600 3600

Component Total 10800 3600 3600 3600 50 Consumable items 53 Office utilities - CONAP 5400 1800 1800 1800

Component Total 5400 1800 1800 1800 70 National management costs

71 CONAP Management costs 3168

Component Total 3168 TOTAL 42,768

-39- 3.5 Assumptions, risks, sustainability

3.5.1 Assumptions and risks

Assumption Associated risk Mitigation measures Availability of background The lack of information may hinder Through the forest incentive programmes, it information for the the implementation of project will be possible to identify the communities identification and prioritization activities. that have received programme support for of areas of greater impact of reforestation activities. incentives at the departmental and municipal levels.

INAB and CONAP have The lack of financial resources may Strengthening the participation of the sufficient budgetary resources limit the implementation of activities communities in the local, regional and to ensure the smooth by both institutions national decision making processes will functioning of the project and create a strong social base that will become the implementation of their a lobby/pressure group to support the activities. effective allocation of budgetary funds to different government institutions.

Both producers and The lack of interest of both producers An ongoing communication and consensus- consumers are interested in and consumers of pinabete may limit building process will be launched, thus using legal pinabete products the development of the process. ensuring the interest of producers in because they are aware of continuing the activities. their social and economic value.

Key institutional stakeholders The lack of interest of key In order to minimize this risk, the cooperate to ensure the institutional stakeholders. participation of key institutional stakeholders effective implementation of the will be promoted through agreements, as National Pinabete The lack of technical capacities at support for the implementation of technical Conservation Strategy. the local level has been a key factor assistance and training activities. Local stakeholders in the reduction of the forest cover of (communities, municipalities, this species in natural areas. etc.) support and participate in the Pinabete Legality Promotion Plane.

Endorsement of universities The lack of baseline information may The project will promote the implementation and research centers for the hinder the implementation of of a research program with the support of implementation of biological activities. research institutions (universities) that will and administrative surveys on generate basic information to support pinabete to support the pinabete management and conservation. conservation strategy.

There are market alternatives The lack of an appropriate market The participation of producers and the for the marketing of pinabete system does not allow pinabete formulation of a market strategy will ensure products sourced from products to be marketed as they that pinabete products are marketed on the plantations or nurseries. should be. basis of market trends and prices.

3.5.2 Sustainability

-40- strengthen local capacities for the management and sustainable utilization of this species and will hence contribute to the sustainability of natural resources in the country.

Institutional sustainability

Financial sustainability

-41- PART 4. IMPLEMENTATION ARRANGEMENTS

4.1 Organizational structure and stakeholder involvement mechanisms

4.1.1 Executing agency and partners

INAB will be the executing agency of this project; as such, it will take on responsibility for coordination and outputs, and will ensure compliance with the main indicators and assumptions as described in this proposal.

The National Forest Institute (INAB), an autonomous, decentralized government agency with legal capacity, equity capital and administrative independence, is the competent coordinating authority responsible for the public agricultural sector in the forestry field as established by the Forestry Law (Decree No. 101-96) currently in force in Guatemala (1996).

The Institute’s main functions are: i) Implement forest policies; ii) Promote and encourage forest development in the country through sustainable forest management, reforestation, forest-based crafts and industry, and watershed protection and development; iii) Promote forest research; iv) Coordinate the implementation of forest development programmes; and v) Develop programmes and projects aimed at forest conservation.

As collaborating agencies, CONAP will provide technical and institutional assistance as well as support in the administration and management of funds. The relationship between the executing and collaborating agencies will be defined according to ITTO regulations.

CONAP’s role in the implementation of the project will include the provision of high-level technical advice. Thus, CONAP will support INAB throughout the life of the project, providing inter alia technical assistance, methodological support, training and guidance in the development and use of tools and instruments to ensure the success of the project in the field.

4.1.2 Project management team

 Project Coordinator  Secretary

The project management structure is shown in the following flowchart:

PROJECT STEERING ITTO COMMITTEE

Project Coordinator CONAP INAB (collaborating agency)

(ANPROPIGUA, INAB, CONAP, MP, DIRPONA, Community organizations, academic sector)

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4.1.3 Project Steering Committee

INAB will set up a Project Steering Committee (PSC). This Committee will operate according to the relevant ITTO regulations, and will consist of the following members:

 INAB representative.  CONAP representative.  ITTO representative.  DIPRONA representative.  MP representative.  ANPROPIGUA representative.  A representative of community organizations.  A representative of the academic sector.

The role of the Project Steering Committee will be to ensure due compliance with the schedule of activities and outputs of this project.

4.1.4 Stakeholder involvement mechanisms

The participation of stakeholders and beneficiaries will be ensured through inter-institutional and operational mechanisms of the National Pinabete Conservation Strategy, which is coordinated by a Coordinating Council that meets on a regular basis to review reports, progress and new actions. Furthermore, intra-institutional consultation groups will be established according to the nature of the activities.

4.2 Reporting, review, monitoring and evaluation

Within 8 weeks of project start-up, the Project Coordinator will prepare an inception report for the first meeting of the Project Steering Committee.

Every 6 months, INAB will send progress reports to the ITTO Secretariat according to the relevant ITTO requirements. The consultancy reports will also be sent to the ITTO Secretariat. The Completion Report will be sent to the Secretariat no later than 3 months after project completion. ITTO's monitoring missions will take place according to that Organization's schedule. These missions will review project progress on the basis of compliance with the logical framework indicators. Progress in the implementation of the project will also be reported through the ITTO online system.

The Coordinator and technical team of the project will determine the most suitable method for information gathering and processing purposes in order to successfully monitor project progress.

4.3 Dissemination and mainstreaming of project learning

4.3.1 Dissemination of project results

After the implementation of the project, INAB and CONAP will promote its recommendations, achievements and outcomes through the various instruments generated by the project and the replication of successful cases.

Project results and achievements will be supported by INAB and CONAP through their relevant departments and their regional and sub-regional offices, which will be in charge of project follow-up through the provision of technical assistance and training to relevant stakeholders, as well as INAB’s Social Communication Department, which will disseminate project results through printed documents, INAB and CONAP web pages and social networks.

All institutions involved in the project will also provide support by disseminating project outcomes through their information networks (ANPROPIGUA and local producers’ organizations, among others). These stakeholders will be responsible for disseminating project results among their members through their web pages, written media and publications.

Furthermore, all documents to be generated by the project will be distributed to INAB’s and CONAP’s regions and all stakeholders involved in the project, and will also be available in their institutional web pages, as well as in the Guatemalan Forest Information System - SIFGUA.

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4.3.2 Mainstreaming of project learning

Mainstreaming of project learning will take place through a diversity of media, starting with a web-based publication in both Spanish and English through SIFGUA.

Project outcomes will be presented nationally, with the participation of key stakeholders of Guatemala's forest sector, the media and groups of experts.

Furthermore, information on outcomes and achievements will be disseminated by the social communication departments of INAB and CONAP using written media, websites and others.

The documents to be developed by the project will be distributed to the various regions of the country and to the different stakeholders involved in the project, and will also be available on the websites of INAB, CONAP and SIFGUA.

-44- ANNEX 1. Profiles of the executing and collaborating agencies

A. EXECUTING AGENCY

INAB is responsible by law for the administration of forests outside protected areas. With its 33 sub-regional offices and 9 regional directorates, the Institute has a functional structure and national coverage. The Institute’s main functions are:: i) Implement forest policies; ii) Promote and encourage forest development in the country through sustainable forest management, reforestation, forest-based crafts and industry, and watershed protection and development; iii) Promote forest research; iv) Coordinate the implementation of forest development programmes; and v) Develop programmes and projects aimed at forest conservation.

Its mission is: “To promote and implement national forest policies and facilitate access to technical assistance, technology and forest services for foresters, municipalities, universities, (national and international) investor groups, and other forest sector stakeholders, through the design and promotion of strategies and actions aimed at generating increased economic, ecological and social development in the country”.

INAB has expertise in the following areas:

 Incentive-based forest development and promotion  Promotion of sustainable forest management  Forest protection  Administration, regulation and control of the forest sector  Forest promotion, training and education  Technical and economic forestry information and research  Institutional strengthening  Improvement of forest production  Support to local governments for forest administration  Forest extension  Forest conservation  Geographic information systems  National forest inventories

Infrastructure

INAB has 9 Regional Directorates, which are distributed as follows.

No. Region Department No. of sub-regions I Metropolitan Guatemala Nil II Las Verapaces Alta Verapaz and Baja Verapaz 7 III Northeast Chiquimula, El Progreso, Izabal, Zacapa. 4 IV Southeast Jutiapa, Jalapa and Santa Rosa 3 V Central Chimaltenango and Sacatepéquez 2 VI West Quetzaltenango, San Marcos, Sololá and Totonicapán 4 VII Northwest Huehuetenango, Quiché 4 VIII El Petén Petén 4 IX South Coast Escuintla, Retalhuleu, Suchitepéquez 4 TOTAL 33

Each of these Regional and Sub-regional Directorates of INAB has offices equipped with furniture, telephone, fax machines and computer equipment. In addition, they have their own budget and vehicles and motorcycles at their disposal. All of these Directorates are staffed with technical, administrative and legal personnel.

-45- B. COLLABORATING AGENCY

National Council for Protected Areas –CONAP

CONAP was established as a result of the Protected Areas Law, Legislative Decree 4-89. This 1989 Legislative Decree and its amendments (Legislative Decrees 4-89, 18-89, 110-96, 117-97 and Agreement 759-90) defines the mandate of the National Council for Protected Areas (CONAP).

The National Council for Protected Areas – CONAP is a public organization that answers to the President of Guatemala. It was created as the top management and coordination body for the Guatemalan System of Protected Areas (SIGAP) and biological diversity of Guatemala, with jurisdiction over the whole country, its maritime coasts and its airspace.

CONAP is an autonomous body and its budget depends on an annual allocation from the State, specific private donations, partner countries, organizations and international bodies.

Its objectives are defined in section 5 of the Law (amended by section 3 of Decree 110-96) and include the following: a) To ensure the optimal functioning of essential biological processes and vital natural systems for the benefit of all Guatemalans; b) To achieve the conservation of the country's biological diversity; c) To achieve sustained utilization of species and ecosystems throughout the country; d) To guard and preserve the Nation's natural heritage; and e) To establish the protected areas needed throughout the country as a matter of public and social interest.

As a public institution, CONAP also seeks to consolidate a suitable organizational structure to achieve its mission on two levels: a) the regional level: CONAP's organizational structure includes the Conservation Unit in charge of coordinating Regional Offices whose main role is to provide technical support for the administration of protected areas; and b) Regional Offices established throughout the country according to the distribution of regions provided by SIGAP, i.e.:

o Central: Departments of Guatemala, Sacatepéquez and Jalapa; o Central Altiplano: Chimaltenango, Quiché and Sololá; o Verapaces: Alta and Baja Verapaz; o Western Altiplano: San Marcos, Huehuetenango, Quetzaltenango, Totonicapán; o South Coast: Retalhuleu; Suchitepéquez, Escuintla, Santa Rosa, Jutiapa; o Northeast: Progreso, Zacapa, Chiquimula, Izabal.

CONAP's strategic roles include:

1) Policy development: CONAP develops and promotes substantive and management policies needed to comply with its legal terms of reference and institutional mission. 2) Coordination: CONAP is the leader in ensuring inter-sectoral and trans-sectoral coordination, as well as coordination among the various State powers, to implement its policies effectively and efficiently, and to ensure that investments and activities promoted by other public management stakeholders incorporate CONAP policies. 3) Regulation: CONAP's priority role is as a regulatory body by developing and applying standards, regulations and laws required to implement its policy. 4) Promotion: CONAP develops and implements incentive mechanisms to encourage stakeholders to choose desired behaviour in order to comply with its legal terms of reference and institutional mission. 5) Education: As a result of the exclusive nature of its terms of reference within the State, CONAP needs to ensure the necessary education and awareness-raising that will generate a social culture of respect of Nature and of sustainable use of natural renewable resources, through the support of bodies that have received training. 6) Execution: with a subsidiary and decreasing approach in its implementation. This means that CONAP must:  Do what other national stakeholders are unable to do, or that which, because of its peculiarities, has gained strategic importance for the country, so that its implementation is a State obligation.  Facilitate the work of other agents to help achieve CONAP's objectives.

-46- 7) International Agreements: CONAP is directly responsible for following up some international agreements of which Guatemala is a signatory party and which, as a result of legislative ratification, have legal status in the country, including:  the Convention on International Trade in Endangered Species of Wild Fauna and Flora' (CITES);  the Convention on Wetlands of International Importance especially as Waterfowl Habitat' (Ramsar);  the Convention on Biological Diversity (CBD), ratified by legislative decrees 63-79, 4-88 and 5- 95, and 44-2003 respectively; and  the United Nations Framework Convention on Climate Change ratified by legislative decrees 15- 95, and its associated legal instruments.  CONAP also contributes to compliance with the State and Government of Guatemala's international commitments, such as the Millennium Development Goals - MDG, and decisions relating to the Paris Declaration on Aid Effectiveness.

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ANNEX 2. Tasks and responsibilities of key experts provided by the executing agency

A. Project Coordinator (INAB counterpart)

Qualifications:

- University degree in the field of forestry, natural resource management or related discipline. - Knowledge of the government and private forest sectors of Guatemala. - Experience in working with community groups. - Knowledge of current forest legislation and other related policies. - Experience in personnel management. - Leadership skills with ability to coordinate staff and work in a team. - Good command of computer packages. - Ability to negotiate with forest sector stakeholders.

Duties:

The Coordinator will be in charge of:

- Preparing yearly work plans and organizing and supervising the implementation of project activities. - Supervising project budget execution. - Participating in the selection of project personnel. - Developing a training program in coordination with the project technical staff. - Conducting a performance assessment of the staff under his/her supervision. - Supervising the preparation of reports and technical documents (technological packages). - Preparing and submitting project progress reports. - Strengthening inter-institutional relations and strategic partnerships. - Coordinating actions with INAB’s regional offices, directorates and support areas.

B. Support technicians (INAB and CONAP counterparts)

Qualifications:

- Professional degree in the field of natural resources and/or agricultural production systems. - Knowledge of the government and private forest sectors of Guatemala. - Experience in the design and development of forest training and extension programs. - Good command of computer packages.

Duties:

- Supporting the provision of technical assistance to community groups. - Supporting the coordination of project field work.

-48- C. Secretary (INAB’s counterpart contribution)

Qualifications:

- Mid-level degree: business and/or bilingual secretary with university studies - A minimum of two years experience in secretarial services, administrative procedures, inter-personal relations, management and filing of documentation, drafting of letters and reports. Excellent drafting and spelling/writing skills. - Experience in managing computer hardware and software, command of Windows, Microsoft Office, Internet. - Organizational skills

Duties:

The Secretary will perform the following duties under the supervision of the Project Coordinator:

- Communicating with, convening and ensuring the participation of the relevant people in project meetings. - Organizing and filing printed and digital records of all project-related documentation. - Receiving, processing and ensuring timely dispatching of all correspondence and other documents related to the project and verifying due receipt by addressees. - Answering telephone calls and dealing with members of the public or officers making project-related enquiries in the office. - Drafting project-related correspondence as required. - Verifying the availability of stationery materials as required by the project. - Any other activities required by the Coordinator and/or Steering Committee.

-49- ANNEX 3. Tasks and responsibilities of key experts funded by ITTO

1. Sustainable Forest Management Expert

Qualifications:

- University professional with a Master's degree or above, in forest management, natural resource management or related discipline. - Knowledge of the government, community and private forest sectors of Guatemala. - Knowledge of current forest and protected areas legislation and other associated regulations. - A minimum of 10 years experience in sustainable forest management. - Work experience in relation to pinabete forests. - Knowledge of forest management for ecosystem services and agroforestry systems - Good command of computer packages. - Ability to negotiate with forest sector stakeholders. - Knowledge of production systems - Experience in working with local communities.

Duties:

- Organizing and facilitating community training workshops on reforestation and management plans. - Developing technical guides on pinabete plantation management - Designing forest extension modules addressed to pinabete producers. - Facilitating training workshops for community promoters and extension officers. - Assisting the project coordinator in sustainable forest management processes, especially those guided by project technicians.

2. Forest restoration consultant

Qualifications:

- Professional with university degree in forestry, natural resource management or related discipline and with experience in forest restoration. Master’s degree or above in forest management, natural resource management or related discipline relevant to project objectives. - Knowledge of the current forest and protected areas legislation and other related regulations. - Expertise in the institutional, community and private forest sectors of Guatemala. - A minimum of 5 years experience in forest restoration. - Work experience in relation to pinabete forests. - Good command of computer packages. - Ability to negotiate with forest sector stakeholders. - Experience in working with community groups.

Duties:

- Propose guidelines for the prioritization of pilot sites in the project´s target area. - Assist the project staff. - In coordination with project staff, design, propose and establish pinabete forest restoration trials. - Monitor the implementation of forest restoration practices in pilot sites. - Analyze the results obtained in restoration practices and prepare corresponding reports. - Facilitate training workshops.

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3. Project technical assistant

Qualifications:

- Professional with university training in forestry, natural resource management or related discipline. - Knowledge of the government and private forest sectors of Guatemala. - Knowledge of the current forest legislation and other associated regulations. - A minimum of 5 years experience in personnel management. - Leadership skills and the ability to work in a team. - Good command of computer packages. - Ability to negotiate with forest sector stakeholders. - Preferably with knowledge of a Mayan language.

The technical assistant will be responsible for:

- Following up project activities. - Guiding and supporting producers in the implementation of the project. - Preparing six-monthly progress reports for each action plan area taking into account ITTO reporting procedures and requirements. - Assisting the Project Coordinator in the preparation of documentation, activities, workshops and project follow-up. - Coordinating activities with external consultants and INAB personnel.

4. Marketing consultant

Qualifications:

- University professional with a Master's degree or above in forest product markets and marketing or related discipline. - Knowledge of the government, community and private forest sectors of Guatemala. - At least 10 years experience in the marketing of forest products. - At least 5 years experience in the development of forest product market surveys. Duties:

- Participating in the search for markets for traditional forest products. - Developing a strengthening plan for producers and a market survey. - Developing a business strategy for ANPROPIGUA. - Participating in the development of market studies for new forest products. - Developing market intelligence procedures. - Participating in the organization of forest trade fairs and business rounds. - Training producers and key stakeholders in forest product markets and marketing.

5. Administrator-Accountant

- Mid-level and/or university administrative and accounting degree. - Suitable project administration and accounting experience. - No criminal record. - Good command of computer packages. Duties: - Personnel administration. - Project accounts management applying national regulations and ITTO procedures. - Assisting the Project Coordinator in monitoring the use of project funds. - Preparing financial reports according to INAB, ITTO and HELVETAS requirements.

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6. Consultant in systematization of successful experiences

Qualifications:

- University degree in the areas of sociology, anthropology or social science. - Knowledge of community issues. - Experience in working with local communities related to the forest sector.

Duties:

- Facilitating interaction and understanding between the local communities and project staff. - Systematizing successful experiences on production and marketing.

-52- ANNEX 4. Recommendations of the 47th ITTO Expert Panel and corresponding modifications

Reviewer Comments/Recommendations Amendment(s) made Page # 1. Reduce the scope of the project, focusing on Outputs 3 and 4 from the original proposal with an appropriate revision of problem analysis, The project scope has been reduced Pages expected outcomes, outputs, activities and the and focused on outputs 3 and 4 21 & 22 budget based on the reduced scope;

Information has been included on the 2. Indicate how the proposal contributes to the contribution of the proposal to the Page objectives of the ITTO SAP 2013-18; objectives of the ITTO Strategic 8 Action Plan 2013-2018 3. Provide information on current/potential Additional information was included Pages commercial exploitation of pinabete; on this issue 9 & 10 Pages 4. Attach or refer to existing pinabete related References to the current forest legislation; legislation have been included in the 8-10 proposal 5. Identify priority areas on the map provided in A map showing the project’s priority Page the Target Area section; areas has been included 10 6. Include INAB and CONAP as secondary INAB and CONAP have been stakeholders and local governments as primary included as secondary stakeholders Page stakeholders in the Stakeholder Analysis while local governments have been 15 section; included as primary stakeholders Due to the change in project focus, this organization decided not to 5. Provide more information on the role of participate in the administration of Helvetas and include in the stakeholder funds. Although it will provide support analysis; for some of the project activities, it will not be directly involved in the implementation. 6. Simplify the development and specific objectives as proposed above and clarify the The development and specific Page figures included in the development objective objectives have been redefined 20 indicators;

7. Clarify how and where the proposed increase Additional information has been Pages in plantation pinabete production would occur; included on this issue 16-17 8. Clarify the proposal to request CITES to approve exports of plantation pinabete; This activity has been deleted

9. Ensure all activities are clearly All activities have been explained Page explained/justified; and and justified 23 10. Include an Annex that shows the overall assessment and specific recommendations of the 47th Expert Panel and respective Page modifications in tabular form. Modifications Included in this annex 53 should also be highlighted (bold and underlined) in the text.

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ANNEX 5. Regulations for the management of pinabete plantations and seed production areas, Government Agreement No. 198-2014

-54- ANNEX 6. Recommendations of the 48th ITTO Expert Panel and corresponding modifications

Reviewer Comments Amendment(s) made Page # /Recommendations 1. In geographic location, provide information on what condition for commercial use of Pinabete is  Additional information has legally allowed and add information Page on legal ground of "registered been included on this issue. 10 voluntary plantation" of Pinabete. Explain what programme is "PINPEP". 2. Delete the lines of text relating to the effects to the key problem in the problem tree as the three elements  The description of the effects were the causes rather than effects of the key problem has been Pages 18 and 19 and repositioned the arrow for the restructured causes to be pointing northward (up); 3. Add the impact indicators for development objective so as to  Impact indicators have been provide economic and social included for the development Pages 20-22 dimension to the long term objective objective of the project; 4. Check and ensure the activities in the Logframe, text, work plan and budget are logically consistent. For examples, Output 2 in the Logframe was not closely consistent with the one in 3.1.2; Activities under Output  The logframe, work plan, 1 were not consistent with those in activities and budget have the work plan and the budget. been revised again and the Pages Furthermore, additional activities relevant adjustments have 20, 23, 25 and 27 such as A1.7 and A1.8 as listed in been made. the work plan and the budget didn’t appear in 3.1.2; A1.4 in the work plan and the budget disappeared in the 3.1.2.; A1.2 in the work plan was not in line with those in the text and the budget; 5. Explain what will be carried out  Activities 3.1 and 3.4 have concretely with activities of A3.1- Pages been re-defined. 23 and 24 A3.4. 6. Include an Annex which shows there commendations of the 48th Panel and the respective modifications in tabular form.  Included in this Annex Page 55 Modifications should also be highlighted (bold and underline) in the text.

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