Biodiversity Understanding in Infrastructure and Landscape Development CBA Cost-Benefit Analysis COP20 Conference of Parties 20 BUILD Overview

Home , Albertine Rift

BUILD Infrastructure andLandscapeDevelopment development insupportofbiodiversity conservation Four years of success using economics to influence infrastructure Biodiversity Understanding in

nergy and transportation infrastructure are CSF’s approach to the unique challenges of essential to economic development, increasing infrastructure development centers on providing productivity and efficiency in private and training and technical support to conduct and evaluate Epublic sectors, and providing vital access to healthcare, comprehensive economic cost-benefit analysis (CBA) education, and other services. However, large-scale of projects and policies. Comprehensive CBA refers infrastructure investments can transform landscapes to analysis that assesses the economic efficiency of and watersheds, unleashing irreversible, destructive proposed investments by comparing their financial, damage to biodiversity and other ecosystem services social and environmental costs and benefits. Included that are worth millions of dollars, and disrupting in these analyses are “external” costs and benefits, community stability and human well-being in the which are neither borne nor received by project process. developers. These include changes in quantity and quality of natural resources, such as water or local Projects’ impacts vary considerably and their food sources like fish, as well as globally important approval is usually dependent on small groups of services like biodiversity and carbon sequestration. public decision-makers. Large-scale infrastructure Furthermore, this type of CBA enables the analysis investments, especially in remote areas, are of costs and benefits from the perspective of multiple often economically inefficient and usually have groups of actors, including local communities, unnecessarily large environmental and social municipal governments, private companies, and impacts. These characteristics - variable quality, society as a whole. concentrated decision-making, economic flaws and design shortcomings - add up to a big conservation opportunity, one in which good economic analysis The International Energy Agency can be decidedly influential. predicts that by 2050 we will have 60% more roads than we did Conservation Strategy Fund (CSF) recognizes the need to balance transportation and energy in 2010. That’s about 25 million infrastructure development with conservation of kilometers of new paved roads. healthy ecosystems for the benefit of society in both the short and long-term. To achieve such a balance, understanding the economic and ecological tradeoffs of projects and policies is essential. From an Using this method, CSF and partners have found ecological perspective, it is clear that building new that roads with troubling environmental impacts are roads in pristine regions is bad. From an economic often also economically inefficient. Some are simply perspective, it is a matter of doing the numbers right too remote to generate enough economic activity to to determine if a project´s benefits are enough to justify their costs. In other cases, alternative routes cover its financial, social and environmental costs. can do a better job of meeting both development and environmental objectives. CBA can also be used SMART ENERGY Having concrete numbers in hand allows stakeholders to identify cost-efficient strategies for mitigating and decision-makers to assess alternatives, share any undesirable impacts. Likewise, through the + TRANSPORTATION and debate information about tradeoffs early in the analysis of hydroelectric projects, CSF has shown process, establish clear policies for project approval, how conservation economics tools can be used to mitigation and compensation, and have financial distinguish projects with poor economic performance, INFRASTRUCTURE and ultimately promote more sustainable decision- incentives in place to ensure compliance with those policies. making. ACKNOWLEDGEMENTS Wildlife Conservation Society Makarere University Bwindi Mgahinga Conservation Trust Uganda This document was made possible by the support of the American People through the United States Agency for National Environment Management Authority of HIMALAYAS International Development and its program on Biodiversity Understanding in Infrastructure and Landscape Uganda Development (BUILD). The views expressed herein are those of the author(s) and do not necessarily reflect Uganda Wildlife Authority Bhutan & Nepal views of USAID or the United States Government or any of our partners and collaborators. CSF would Wildlife Conservation Society Ugyen Wangchuck Institute for Conservation and like to thank all of the individuals from organizations, community groups, governments, universities, and International Gorilla Conservation Programme Environment other institutions around the world who contributed their time and energy to the information on which Uganda National Road Authority World Wildlife Fund Hoima District Government Ministry of Physical Planning and Work of Nepal this publication is based. These include but are not limited to: Bulisa District Local Government Ministry of Science, Technology and Environment Kasese District Local Government of Nepal Ministry of Finance, Planning and Economic Ministry of Forest and Soil Conservation of Nepal INTERNATIONAL Movimento Tapajós Vivo Development of Uganda Ministry of Physical Infrastructure and Transport Munudurku leadership Ministry of Works and Transport of Uganda Nepal Environmental Law Alliance Worldwide Ministry of Water and Environment of Uganda Asian Development Bank Cambridge Resources International Inc. Peru Ministry of Energy and Mines of Uganda World Bank Wildlife Conservation Network Peruvian Environmental Ministry Uganda Chapter of Poverty and Conservation South Asian Network for Development and Inter-American Development Bank Peruvian Society for Environmental Law Learning Group Environmental Economics International Union for Conservation of Nature Initiative for Conservation in the Andean Amazon Advocate Coalition for Development and Smithsonian Conservation Biology Institute Grupo de Análisis para el Desarrollo Environment Center for Latin American Studies, University of Grupo de Monitoreo - Pucallpa Economic Policy Research Centre Florida Comunicadores Indigenous – Pucallpa Environmental and Natural Resources Advisory International Rivers Ucayali Regional Government Council Servico Nacional de Áreas Naturales Protegidas por STAR program Uganda el Estado ANDES AMAZON Instituto del Bien Comun Inambari monitoring group CSF would also like to thank USAID Headquarters in Washington, D.C. for assistance throughout the Brazil ECOCIENCIA Ecuador BUILD program. In particular, thanks are due to the USAID Office of Forestry and Biodiversity and Instituto de Pesquisa Ambiental da Amazônia Grupo FARO Ecuador Marco Flores, Hanna Fairbank, and Anila Jacobs for their support and guidance. CSF is grateful to the Avina Foundation SENPLABES Ecuador USAID South America Regional Office in Lima, Peru, and the USAID Missions in Uganda, Brazil, Instituto Socioambiental ECODESICION Ecuador Imazon Conservation International Colombia and Nepal for their support and participation in the program. Insituto Centro de Vida Idesam The Nature Conservatory ALBERTINE RIFT CSF is also grateful to Véronique Fournier, Vanja Westerberg, Jorge Madeira Nogueira, Ephrem Balole, Associação O Eco Hedley Grantham, John Fay, and Ray Victurine for their strong commitment and support to the program. Internews Democratic Republic of Congo CSF would also like to thank the following staff members for their valuable contributions to the content Comissão Pró-Índio do Acre L’École Régionale post-universitaire d’Aménagement and design of this document: Kim Bonine, Niki Gribi, Courtney Lewis Cheng, Irene Burgués Arrea, SOS Amazônia et de gestion Intégrés des Forêts et territoires Rhona Barr, Alfonso Malky, John Reid, Aaron Bruner, Camila Jericó-Daminello, Carlos Solís, Natalia Acre state government Tropicaux Sanin, Cecilia Ayala, Susan Seehusen, and Aja Heisler. National Indian Foundation Parc National des Virunga Pontifícia Universidade Católica Wildlife Conservation Society Greenpeace Avocats Verts – Democratic Republic of Congo Ministério Público Federal Fundação Nacional do Índio Rwanda Instituto Chico Mendes para a Biodiversidade Rwanda Development Board Authority Associação Comunitária do Pimental Rwandan Environment Management Authority BUILD Biodiversity Understanding in Infrastructure and Landscape Development CBA Cost-benefit analysis COP20 Conference of Parties 20 BUILD Overview...... 8 CSF Conservation Strategy Fund DRC Democratic Republic of Congo Global Strategy...... 10 ELAW Environmental Law Alliance Worldwide 2012-2015 Timeline of Activities...... 12 GIS Geographic Information System Objective 1: Training...... 14 HCT HydroCalculator Tool ICAA Initiative for Conservation of the Andes Amazon Uganda...... 16 IGCP International Gorilla Conservation Program Media...... 18 MINAM Ministerio del Ambiente – Peru (Peruvian Ministry of Environment) MW Megawatt Peru...... 20 NEMA Uganda National Environmental Management Authority Objective 1: Analysis...... 22 SPDA Sociedad Peruana de Derecho Ambiental (Peruvian Society for Environmental Law) Inambari...... 24 TNC The Nature Conservancy Ug-PCLG Uganda Chapter of the Poverty and Conservation Learning Group Bwindi...... 26 UNESCO United Nations Educational, Scientific, and Cultural Organization Online Tools...... 28 UNFCCC United Nations Framework Convention on Climate Change USAID United States Agency for International Development Objective 2 & 3: Policy Work...... 30 UWA Ugandan Wildlife Authority The Future...... 32 WCS Wildlife Conservation Society Appendix...... 34 WWF World Wildlife Fund

TABLE OF ACRONYMS CONTENTS Policy Analysis Interventions 5 2011-2015 6 Projects Biodiversity Understanding in Infrastructure and Landscape Development Resources BUILD and Tools 5 Developed BUILD International by the 6 Events Numbers

n 2011, Conservation Strategy Fund (CSF) launched a comprehensive global initiative through the Training 9 Biodiversity Understanding in Infrastructure and Landscape Development (BUILD) program of the United Programs IStates Agency for International Development (USAID). Publications The overall goal of CSF’s BUILD program was to encourage and support the development of ecologically sound, 21 economically efficient and socially equitable infrastructure policies and investment decisions. Recognizing the economic, institutional, cultural and legal barriers to the adoption of biodiversity-friendly infrastructure policies, we focused on leverage points that have the potential to bring about systemic change. Partner & Stakeholder Organizations Engaged 80 Over the four-year program, CSF focused on building capacity and spreading information to people working on environmental or policy issues related to infrastructure in three focus regions: the Andes Amazon, the Albertine Rift, and the Himalayas. These regions were selected from USAID’s more extensive list of areas because of their high-biodiversity value, imminent threats posed by infrastructure, and potential for policy change. Demand for electricity is slated to almost double CSF’s diverse approach included extensive engagement with local stakeholders, government and civil society 95 percent of all forest through tailored training programs to build economics knowledge and skills, in-depth analysis of key infrastructure between 2010 and 2035 destruction in the Brazilian projects, and technical support to develop better and innovative policies. We also gathered, tested, and disseminated requiring global electricity information about infrastructure best practices globally, and presented the results of that research and our analyses Amazon has occurred within capacity to increase from at local, regional, and international events. A key component of our program was to develop a set of online, open- 5 kilometers of roads access economic analysis tools and resources that can be used to improve project and policy outcomes around the 5.2 terawatts to 9.3 terawatts

world. over the same period CSF’s commitment to outreach and communication was the glue that bound all of these specific activities together. We participated in regional infrastructure working groups, met with key local stakeholders throughout our analysis projects, convened national and regional policy forums, and participated in international conferences. We took every opportunity to share our results and promote balance between economic development and biodiversity conservation through smart infrastructure decisions. BUILD’s three key objectives: In the following pages, we will shine a light on a few key moments in our BUILD story. In addition to these successes, we undertook many other activities in order to meet our program objectives; please see the Appendix for a full list. 1. Government and civil society understand and discuss the real economic and ecological tradeoffs of infrastructure projects.

2. Clear policies and procedures exist to govern project selection, as We believe that by improving selection, design and mitigation of key infrastructure projects, CSF’s well as mitigation and compensation. BUILD program had a direct positive impact on biodiversity conservation in the focus regions. In the long-term, BUILD has left a legacy of positive change by spreading economic knowledge, building technical skills and creating better policies, which together will improve infrastructure decisions in 3. Financial mechanisms are in place to maximize compliance with favor of biodiversity over the coming decades of economic growth. {environmental requirements. 8 9 GLOBAL STRATEGY We used training and analysis to protect biodiversity {by changing outcomes of infrastructure projects. CSF’s BUILD program took a comprehensive approach to the threats that infrastructure development poses to biodiversity. We improved access to information required to analyze and compare infrastructure options, and trained key people inside and outside government to perform environmental-economic project analysis. We ensured policy-makers had access to good models, provided technical assistance, and promoted adoption of financial mechanisms. We also made efforts to ensure that local people affected by infrastructure projects and compensatory measures were involved in the process. In short, we used training and analysis to promote biodiversity conservation by changing outcomes of

HIMALAYAS

The Himalayas are the highest mountain range in the world, and are the source of fresh water for billions of people in Asia. Stretching across Pakistan, Nepal, Bhutan, India, and China (Tibet), the region boasts an extraordinary range of elevations, habitats and biodiversity, and is home to the snow leopard, Bengal tiger and Asian elephant. Yet growing demand for timber, pasture, cropland, and roadways jeopardizes the forests and grasslands in which these animals live, and is causing increasing numbers of ANDES AMAZON conflicts between humans and wildlife. The dual threats of climate change and pressures The Andes Amazon is the most biologically for hydroelectric dam development leave the diverse region in the world. Reaching across future of biodiversity and water security in nine countries, from the eastern slopes of the the region hanging in the balance. Andes Mountains to the Atlantic Coast, the Amazon watershed is the largest freshwater system in the world and plays a critical role in carbon sequestration. An unparalleled ALBERTINE RIFT diversity of plants and animals call this region home. However, unsustainable The Albertine Rift has the greatest species farming, ranching and mining practices, diversity in Africa, and is home to the and poorly planned roads and dams are world’s last remaining Mountain Gorillas. threatening the Amazon's biodiversity and The montane rainforests of this region its invaluable ecosystem services, eroding are home to vast numbers of endemic the livelihoods of indigenous peoples and plants and animals, but also host the other rural communities. Particular threats densest rural human population in Africa. include the mega-infrastructure initiatives Farming, logging, firewood collection, and like the “inter-oceanic” highway routes infrastructure development have led to running between Brazil and its Andean widespread habitat fragmentation. Hunting, neighbors, and large hydropower schemes in poaching, and war have further damaged the Amazon basin directed at the Brazilian animal populations, and weak institutions energy market. have hampered conservation efforts. The discovery of oil in national parks in Uganda BUILD FOCUS and the Democratic Republic of Congo COUNTRIES (DRC) and the accompanying pipeline, road and rail infrastructure, is threatening both wildlife and local communities.

10 11 Global Analysis Outreach BUILD program launches Tools Training Policy Information gathered on Presentation of the Peruvian MINAM launches official national infrastructure information compensation policy development at guidelines for environmental valuation Yale’s International Society of Tropical bottlenecks, infrastructure policy Results of Pucallpa study presented Foresters conference: “Forests as and innovations around the world Final report completed by ELAW to the Pucallpa monitoring group, Capital: Financial Mechanisms for reviewing best practices and indigenous group representatives, and Hydrocalculator upgrades launched Tropical Forest Conservation” with SPDA innovations in infrastructure policy the Ucayali Regional Government in the 3 focus regions Analysis of Inambari dam in Peru Public launch of CSF’s Infrastructure & Launch of economic valuation study of shows higher costs than benefits to Participation in international Biodiversity section of website ecosystems impacted by the proposed Peruvian society symposium at James Cook Develop guidelines with NEMA for São Luiz do Tapajós hydroelectric dam Analysis of Pucallpa-Cruzeiro do University in Australia “Impacts of economic analysis of environmental in the Tapajós Basin in Brazil Sul Road between Peru and Brazil Roads on Ecosystems & Livelihoods” impacts University of Florida’s “Envisioning begins Draft Ministerial Resolution on Animated CBA video lessions launched a Sustainable Tropics” Conference. In-house training in partnership with environmental compensation Presented showcase of road and dam Peru’s Ministry of Environment of circulated by the Peruvian Ministry Peruvian government officially cancels infrastructure examples, including Peru (MINAM) begins of Environment for comments the Inambari hydroelectric dam project BUILD analyses

Economic Tools for Conservation Results of the Inambari dam analysis Himalayan Policy Forum in Kathmandu, International Association for Impact and Infrastructure Planning course in in Peru presented to Inambari Nepal Analysis Conference in Florence, Italy Peru with WCS-Uganda. Presented results of stakeholder monitoring groups and Himalayas regional training course government officials in Peru and Brazil WCS oil pipeline analysis, Bwindi road Economic Tools for Conservation on economic tools and infrastructure analysis, and Pucallpa-Cruzeior do Sul and Infrastructure Planning course in analysis in Bhutan In-house training with MINAM projects. Brazil continues with guided readings, Two-day workshop in Rio Branco, Acre, In-house training for USAID staff Economic Tools for Conservation weekly virtual discussions and 3 Brazil, to present the Pucallpa-Cruzeiro and Infrastructure Planning course in in-person workshops in Lima project and general CBA concepts to “Dams on the Tapajós River” workshop Uganda government and civil society organizations Economic Tools for Conservation at the Pontifícia Universidad Católica in Roads Filter developed and and Infrastructure Planning course in National Policy Forum on environmental Rio de Janeiro, Brazil launched Democratic Republic of Congo economic analysis and infrastructure in Convened high-profile forum in Cost-benefit analysis of road in Kampala, Uganda and launch of national Lima “Challenges for sustainable Data gathering & fieldwork continues Bwindi Impenetrable National Park, analysis guidelines interconnection in the Ucayali region.” in Bwindi & Albertine Rift Uganda, project launched with IGCP Asked to contribute to A global strategy Compensation policy test cases in Peru Cost effectiveness analysis of Oil Key stakeholder meeting with Hoima, for road building, published in the launched: Hidrovía Amazonicas and Pipeline Construction in Albertine Bulisa & Kasese District Governments journal Nature Mazán hydroelectric projects, and the Rift project launched with WCS in Albertine Rift Interoceanica Sur road and Hunt oil MINAM officially passes landmark concession in Madre de Dios launched

TIMELINE of ACTIVITIES Analysis of environmental and Technical meeting on the Murchison resolution on compensation and biodiversity costs of planned oil Falls Oil Pipeline study (Uganda) mitigation policy. Agreement signed Documentary video about Pucallpa pipeline in Albertine Rift project with MINAM to design & develop project released Infrastructure Media Training in Brasilia launched with NEMA & UWA compensation pilot studies. Presented Tapajós study in Brasilia and “Obras de infraestrutura na Amazônia: South Africa Media Training delivered in Puerto desafios da cobertura midiática e Presented results of the Pucallpa- Maldonado, Peru ferramentas de apoio e ao diálogo” Cruzeiro do Sul road and railway CBA video series reach 80,000 views analysis at UNFCCC COP20 in Lima, in collaboration with TNC

2012 2013 2014 2015

12 13 CSF’S THEORY OF CHANGE

+ + = MOTIVATED ECONOMIC TIMELY SOUND CONSERVATIONISTS KNOWLEDGE EXPERTISE DECISIONS

“I will use this knowledge in our fight to economically Objective 1 Objective defend our biodiversity in LASTING the place where I work.” CONSERVATION

“I gained a vital understanding “We all need to know and of the necessity and importance of economic instruments and appreciate the essence of terminology for use in my field.” attaching economic value to the social benefits we enjoy.”

Monique Akullo, Economic Tools for Conservation course participant, Uganda 2012 TRAINING COURSES or over 15 years, CSF has been making a unique contribution to global conservation through Peru 2012 – Economic Tools intensive training in economics. By equipping people with a solid understanding of economic Brazil 2012 – Economic Tools tools and an ability to identify opportunities to apply them, we have accomplished dramatic CSF trained MINAM 2012-13 – In-house Fenvironmental victories and helped achieve widespread acceptance of economics’ role in conservation. Peru 2012 – Media 217 professionals from Brazil 2013 – Media 16 countries in During the BUILD program we offered three types of training: our core course in Economic Tools for Uganda 2012 – Economic Tools 9 courses during the Conservation with curriculum adapted to focus on infrastructure, short courses targeted at journalists, DRC 2013 – Economic Tools lifetime of BUILD and tailored in-house training courses for governments and other institutions. We worked with local Bhutan 2014 – Economic Tools and regional partners to offer these courses to 217 people from 16 countries. USAID 2015 – In-house

14 15 to create smart infrastructure development in the After the course, CSF teamed up with course graduates to conduct three Albertine Rift. applied economic analyses in support of biodiversity conservation in the region. Over the ensuing three years, we partnered with NEMA, Participants spent two weeks together learning the Ugandan Wildlife Authority, Wildlife Conservation Society, and economic theory, practicing new concepts with the International Gorilla Conservation Programme to investigate the interactive games and exercises, and exchanging impacts of new oil pipelines and roads in protected areas in Uganda, ideas with other people working on similar issues. as well as develop national guidelines for environmental economic Two local field trips allowed them to apply the analysis. ideas presented in the course to real-life situations in Uganda.

In addition to CSF’s core curriculum in conservation economics, special sessions on infrastructure best practices, protected areas, human rights, and biodiversity offsets were added to address the specific challenges faced by the countries in the Albertine Rift region. As the course progressed, participants built on this foundation and learned how and when to use tools like valuation and cost benefit analysis. In the culminating exercise of the course, groups analyzed a hydroelectric dam project and practiced presenting their results to a variety of stakeholders, gaining valuable experience tailoring their message to different audiences to

make the most of their results.

COURSE LOCATION: UGANDA Queen Elizabeth National Park he Albertine Rift is characterized by rich montane How can we reconcile the need to protect these forests for rainforests that are home to a vast number of plants and animals with the need to improve livelihoods { Uganda’s most species and endemic plants and animals. The for their human residents? Are there ways to both conserve visited national Tcritically endangered Mountain Gorilla lives only in biodiversity and promote infrastructure development in Botswana 28 park these forests. This region is also one of the most densely the region? With these questions in mind, CSF began Burundi Participants populated in Africa, inhabited by rural farmers who working with the Uganda National Environmental harvest firewood and timber, and clear the forest to grow Management Authority (NEMA) and graduates from past Rwanda food. To complicate matters further, the five nations that CSF courses to offer an Economic Tools for Conservation DRC comprise the region have been ravaged by ongoing civil and Infrastructure Planning course in Uganda in 2012. Ethiopia wars for the past 25 years. Some of the world’s lowest life 50% 50% expectancy and literacy rates can be found here, along The goal of the course was to bring together professionals Kenya with correspondingly high rates of poverty. The diverse from government agencies, non-profit organizations, and Tanzania NGO GOV ecosystems that support life in this region have been academic institutions across the region to investigate how Uganda fragmented by conflict, with habitats held together by economics can help explain the relationship between protected areas and national parks. humans and their environment, and what strategies exist 16 17 use environmental economic analysis to reduce the negative impacts of infrastructure projects. The training concluded with a field visit to help participants understand the real life implications of what they had learned.

The second media training was held in Brazil in 2013 for journalists from international, national, and Amazonian regional media. This one-day event focused on strategic media coverage of infrastructure projects in the Brazilian Amazon, and included discussion of the key issues that need to be incorporated into regional planning. Experts presented on a variety of pertinent topics including how to measure the economic viability of infrastructure projects, the need to incorporate conservation planning into decision-making, upcoming Brazilian infrastructure development plans, and challenges and opportunities for media coverage in the Amazon.

Both trainings contributed to more open discussions and a more realistic representation of the implications of infrastructure development for society and the environment in the Andes Amazon region.

“The purpose of journalism is thus to provide citizens with the information they need to make the best possible decisions

MEDIA about their lives, their communities, their societies, and their governments.” - American Press Institute

n infrastructure development, all of the stakeholders in the Andean Amazon region, CSF partnered with local need access to facts and information about tradeoffs organizations to offer two targeted media trainings. in order to make informed decisions. But when people 51% 49% { Ido not have the economic and ecological information they The first of these trainings was held in Peru in 2012 for need to compare projects, common ground is hard to find, journalists from Peru, Bolivia, Ecuador, Colombia, Brazil Bolivia groups retreat to polarized positions and negotiations stall. and Chile. During the three-day event, participating The media is a key player in spreading this information media representatives received training on methods Brazil to stakeholders, and improving the odds of reaching a for incorporating biodiversity and social concerns Chile compromise. Yet, most journalists have never received any into infrastructure planning, economic incentives for 6 47 Colombia formal training in the complex interrelationships between conservation, and ecosystem management. Instructors Countries ecosystems, economics and policies that accompany highlighted the difference between comprehensive Ecuador represented infrastructure development, and are therefore ill equipped feasibility studies that include environmental issues Journalists Peru to communicate those issues clearly. In order to build such as flooding or deforestation, and those that don’t. Trained capacity for radio, television, online and print journalists Special attention was given to how decision makers can 18 19 Fourteen participants received graduation certificates for the full program, six of them with honors. Participants gave the training high marks for both quality and relevance, and as proof, MINAM officials went on to publish national guidelines for environmental valuation in January 2015.

John Reid, CSF President, and Mariano Castro, Deputy Minister of Environmental Management, sign agreement that will promote environmental compensation in Amazonian ecosystems. Photo courtesy of MINAM.

Lima

“Excellent course, the level of professional satisfaction exceeded my expectations. PERU Thanks, CSF!” n the early stages of CSF’s BUILD program, we Valuation of Environmental Impacts course consisted of began working with the Peruvian Ministry of the guided readings, a weekly discussion with the instructor, guided readings Environment (MINAM) on drafting guidelines for and a quiz. Three short in-person workshops were also Iecological compensation, which would later become law. held in Lima to give participants the opportunity to ask 9 weekly virtual discussions In 2012, we agreed to develop our relationship further by questions and work together on exercises. Month 3 in-person workshops in Lima designing a training program to build MINAM’s capacity Program{ Participants gave in environmental valuation techniques. The goal of this The program began by building a foundation in the program in-house support was to give the government practical microeconomics, and then dove deep into the rationale tools to integrate biodiversity into planning, approval and and application of five valuation methods. Participants implementation of infrastructure projects. improved their ability to understand and interpret valuation studies, identify appropriate methods to value 22 or a After an extensive, collaborative design phase, we launched environmental goods and services, contribute to the design Government a nine-month training for economists, engineers, and of Environmental Impact Assessment terms of reference, rating of technical advisors from the government and other and participate in the formulation and implementation of Officials Participated 95% institutions in Peru. Each module of the Economic Peruvian law related to valuation. 20 21 ALBERTINE RIFT OIL PIPELINE IN UGANDA DEVELOPED AN INNOVATIVE METHODOLOGY TO PLAN PIPELINE ROUTING THAT COST-EFFECTIVELY AVOIDS BIODIVERSITY LOSS

FINANCIAL LEAST COST PATH: ANALYSIS LOSS OF 32% MANGABEY HABITAT, IMPACT 100% OF HYENA HABITAT, AND 60% OF GRASSLANDS FINANCIAL & ENVIRONMENTAL LEAST COST PATH: LOSS OF 1% MANGABEY HABITAT, 0% OF HYENA HABITAT, AND 47% OF GRASSLANDS STALLED MURCHISON FALLS OIL PIPELINE IN UGANDA MOST ENVIRONMENTALLY SOUND ROUTE HAS LOSS OF ECOSYSTEM SERVICES WORTH -$626,000. ROUTE THAT CONSIDERED ONLY FINANCIAL COSTS HAS SIGNIFICANTLY HIGHER ECOSYSTEM SERVICE LOSSES. Objective 1 Objective STALLED BEING REVIEWED SÃO LUIZ DO TAPAJÓS IKUMBA-RUHIJA-BUHOMA ROAD THROUGH BWINDI IMPENETRABLE NATIONAL PARK IN DAM IN BRAZIL UGANDA TOTAL FINANICAL & LOSS OF GORILLA PERMIT REVENUE -$15.7 M ENVIRONMENTAL COSTS -$636 M LOSS TO BWINDI REGIONAL ECONOMY -$26.5 M The Murchinson Falls, Nile river, Uganda OVERALL LOST TOURISM REVENUE FOR UGANDA -$214 M

BUILDING ALTERNATIVES AROUND THE PARK WOULD AVOID

ANALYSIS THESE LOSSES, AND SERVE 12,000 MORE PEOPLE THAN THE ince its creation in 1998, CSF has conducted dozens of analysis projects in forests, rivers and coastal ROUTE THAT CROSSES THE PARK. environments. Most of our work has focused in the tropics, where extraordinarily high levels of biological diversity are found. These analyses draw from the fields of environmental, natural resource, agricultural, STALLED Stransportation, behavioral, and development economics. The unifying thread is our goal to promote conservation of nature and inform development decisions with a clear understanding of the tradeoffs involved. Our analysis PUCALLPA-CRUZEIRO DO SUL ROAD work has influenced over $20 billion in development investments, resulting in improved conservation of over BETWEEN PERU & BRAZIL 20 million acres around the world. ROAD CONSTRUCTION LOSS -$309 M ROAD ENVIRONMENTAL & SOCIAL COSTS -$457 M For the BUILD program we worked with local partners to conduct six analysis studies of road, dam, and oil RAIL ALTERNATIVE CONSTRUCTION LOSS -$663 M RAIL ALTERNATIVE ENVIRONMENTAL & SOCIAL COSTS -$19 M pipeline projects in the Andes Amazon and Albertine Rift regions, with the goal of changing outcomes in favor of improved biodiversity conservation. Each of these involved many months, and sometimes years, of work: HALTED NUMBERS meeting with partners to design the project, consulting with affected stakeholders, collecting and analyzing the FOR data, and writing reports and policy briefs. Each study was then followed by a series of meetings, conferences, NATURE INAMBARI DAM IN PERU forums, and workshops to present and discuss results. All of the projects gave stakeholders and decision- TOTAL FINANCIAL & ENVIRONMENTAL COSTS -$1.5 B makers important information about costs, benefits, tradeoffs and alternatives. In some cases, the results of our analyses changed minds and impacted policy decisions, allowing for protection of biodiversity and other CANCELLED precious natural resources. 22 Analysis reports can be found at www.conservation-strategy.org/infrastructure 23 bio-diverse ecosystems, lead to lost agricultural and mining income, and contribute to global warming via the emission of greenhouse gases.

Additionally, the developer proposed selling the power at rates 30% higher than prices prevailing in Peru at the time. These higher electricity prices 80% of the dam’s would result in a loss to Peruvian consumers of $200 2,200 megawatts million. The Brazilian firm was the clear winner in this scenario, taking 70% of the profits, and of electricity would absorbing very few of the environmental or social have been exported costs. The Peruvian people would be on the losing side, having to pay all the social and environmental to Brazil costs, as well as higher prices for any electricity sold in Peru. Based on these findings, CSF recommended a thorough review of the Inambari project and the addition of full environmental mitigation and ecological compensation plans. CSF staff and partners presented the results to stakeholder monitoring groups and government The plan included officials in Peru and Brazil. These meetings enabled us to communicate our results to those with the an $882 million power to decide the fate of the Inambari river valley. international

In 2014, the Peruvian government officially transmision line cancelled the Inambari hydroelectric project.

INAMBARI MORE THAN The dam would - $1.5 1/3 n 2010, the governments of Peru and Brazil signed an ecosystems in the valley, staged protests and strikes, often billion have displaced energy agreement that included plans for hydroelectric closing the river road to all traffic. The construction companies + $1.2 of the total costs to plants in the Peruvian Amazon. The Inambari dam was and governments of both countries stressed the importance of billion Peru are from lost Ithe first of several to be built under the agreement, with a energy security, and cited the jobs that would be created by ecosystem services 4000 goal of sending 80% of the generated electricity to Brazil via building and operating the dam. a newly constructed transmission line. The dam would have people created a 410 square kilometer reservoir, forming the second In 2012, CSF and the Wildlife Conservation Society undertook largest lake in Peru, flooding many small towns along the river an analysis to clarify the merits of the Inambari project. The + $0.5 and deforested and displacing their inhabitants. The dam would also have study analyzed the financial and economic feasibility of the billion generated 2,200 megawatts of power to support the growing dam from the distinct viewpoints of the developer, the Peruvian NPV NPV economies of both countries, and would have safeguarded government, other key groups in Peru, and society in general water supplies for use in drought years. in the two countries. The analysis found that the project would Range of profits Environmental 96000 be very profitable for the developer, but would have significant for Brazilian and Social Costs The project had strong voices on both sides. The local people, environmental and social costs. It would displace around Developer to Peru hectares fearing the loss of their livelihoods and destruction of the rich 4,000 people, cause the deforestation of 96,000 hectares of NPV = Net Present Value 24 25 more people with access to important services like healthcare and education. When the potential loss of tourism revenue due to reduced gorilla populations is included, upgrading the road through the park actually costs twice as much as the alternatives. Considering impacts on tourism more broadly, this translates to a possible loss for Uganda of US $214 million over the next 20 years.

The fate of this road has not yet been decided. CSF, IGCP, and the Uganda Chapter of the Poverty and Conservation Learning Group have widely disseminated the results via meetings with local communities and politicians, as well as an international impact assessment conference in Italy. We remain hopeful that the stark economic realities revealed by our study will sway decision makers in the direction of the alternative routes, thereby protecting some of the world’s last remaining gorilla habitat.

The Bwindi road study is a prime example of CSF’s strategy: build the capacity of local professionals in economics and help them apply this knowledge to critical conservation challenges in their countries. Bwindi Impenetrable Case studies carried out with course graduates like National Park contains Stephen foster an iterative process of outreach and dissemination to a wide range of stakeholders on one of the last remaining the ground. As a result, specific projects change in habitats for almost 1/2 the short-term, but perhaps even more importantly, the world’s population over the long-term people gain awareness, knowledge and tools to improve infrastructure of critically endangered BWINDI planning and development for decades to come. mountain gorillas n July 2012, the Uganda National Road Authority Tools for Conservation and Infrastructure Planning course in announced plans for the design and construction of Uganda. Following the course, CSF invited proposals from 1,900 km of roads in the country. One of the proposed course graduates for follow-up analysis of priority biodiversity Iprojects included upgrading a road that passes through Bwindi and infrastructure issues in the region. Stephen submitted a Impenetrable National Park, a globally recognized UNESCO proposal to evaluate the economic and environmental impacts World Heritage Site that is refuge for almost half the world’s of the proposed road upgrade through Bwindi Impenetrable population of critically endangered mountain gorillas, and one National Park compared with two alternative routes that of Uganda’s main tourist attractions. Evidence suggests that would not cross the park, and was selected to collaborate with if the road were upgraded, the gorillas would actively avoid CSF. the area near the road, and gorilla mortality from disease, poaching, and vehicle collisions would increase. The results of the CSF-IGCP analysis show that both road alternatives would have better overall economic performance A month prior to this announcement, Stephen Asuma, a than upgrading the route through the park, despite having program officer from the International Gorilla Conservation higher up-front costs. These alternative routes present lower Programme (IGCP), attended CSF’s BUILD Economic overall risks to the gorilla population, and provide thousands 24 27 Roads Filter road construction and improvement projects across five countries in the Amazon region. The list of roads was When do the benefits of roads outweigh their costs? compiled through interviews with conservation experts Economic feasibility studies can provide the answer, but in each country, and includes projects perceived as posing time and financial limitations mean that many of these some degree of threat to natural ecosystems. The Roads studies fail to accurately represent accurately the full Filter ranks selected projects depending on their level of costs, and many roads are never analyzed at all. Further, economic, environmental, socio-political, and cultural risk studies are seldom done comparatively, so governments (or inversely, the potential for conservation by avoiding lack the information they need to effectively prioritize road construction). The overall risk of each project is assessed development. In order to determine which projects warrant through an index of variables grouped into four categories closer examination, CSF developed the online Roads Filter and weighted according to their relative importance. Tool. Rather than examining roads one at a time, the Roads Filter allows the user to compare an array of potential road Output from the Roads Filter makes it possible to share investments based on financial, environmental and social information about the tradeoffs of different road options criteria, identifying the projects that merit closer scrutiny and to direct conservation attention to those projects that due to their associated risks. present the highest risk levels. Application of the tool and follow-up assessments can improve decision-making to aid In 2011, we applied the Roads Filter to 36 proposed both conservation and the development of cost-effective transportation infrastructure.

ONLINE TOOLS Screenshots of the HCT (below and middle) show map and table views of the SF has developed several online tools to analyze the The HCT considers environmental, social and economic tool, as well project details. Screenshots effects of infrastructure development and provide variables in its calculations, with an extensive amount of of the Roads Filter (far right) show map a platform for information dissemination about data built into the back end of the tool. Users can compute and table views of the tool, as well as Cthe costs and benefits of large-scale infrastructure projects. the economic feasibility of a dam investment based on road details. These tools allow users to explore different development its costs and benefits over a 50-year period. Outputs also options and calculate various factors to help determine include the type and area of habitat impacted per megawatt which projects make the most economic and environmental (MW) of installed generating capacity, number of people sense, providing immediate results that could aid the future displaced per MW, and amount of CO2 emissions. In of fragile ecosystems world-wide. addition, HCT users can perform extensive sensitivity analyses, as well as comment on analyses done by others. HydroCalculator These features are important because the dam projects are long-term investments with uncertain future costs and Dams are sources of electricity and irrigation, both vital benefits. for improving the lives of millions of people worldwide. From environmental, economic and social perspectives, During the BUILD program, CSF made significant however, dams are by no means created equal. Some can upgrades to the HCT, including a more detailed vegetation be relatively benign while others have extensive negative type selector, a more accurate map location picker, and impacts. Perhaps the single most important way to geo data by satellite imagery to help the user determine minimize impacts is to choose “good” dam sites. Doing vegetation types. We also made strides in collecting and so early on requires simple tools that generate comparable disseminating information generated by the HCT. In 2012, results across proposed locations. CSF’s HydroCalculator we gathered field data and used the HCT to analyze all Tool (HCT) allows users to analyze and compare projects in major dams over 100MW in the Andean Amazon, making an interactive, user-friendly online platform. Our goal is for the results public via the tool on CSF’s website. In 2015, the tool to stimulate debate, transparency and ultimately International Rivers, in consultation with CSF, used the good decisions about hydro development. HCT to evaluate proposed dams throughout Africa and published their results in a high-profile campaign. 28 29 30 T establishes guidelines for developers to offset the impacts ministerial resolution oncompensation andmitigationthat made amajor policyannouncementintroducing a landmark In 2014,Peru’s oftheEnvironment Ministry (MINAM) Peru Compensation &MitigationPolicy change outcomesandimprove policies. projects andbestpractices,provide to technicalsupport tools, promote sharing of information on infrastructure and biodiversity issues,buildknowledge ofeconomicanalysis Objective 2&3 the following goals:create awareness ofinfrastructure governments ineach ofthethree focusregions with hroughout theBUILD program, we engagedwith POLICY WORK public protected areas asthe placeswhere compensatory project istoaddress andchallenges ofusing the opportunities a road andoilconcession inMadre deDios. Thegoalof this andhydroelectric projectsincluding waterway inLoreto, and Four infrastructure projects have beenselectedforthecases, in theimplementationofcase studiestotesttheguidelines. areCSF andourpartners now collaboratingwithMINAM valuation. of indirect impacts,andapracticalapproach toeconomic compensation commitments,financialguarantees,coverage recommendations oflong-term emphasized theimportance work duringthefirstthree years of BUILD. Our policy these innovative guidelineswasamajorfocusofourpolicy of theirprojects. indeveloping Supporting theministry Fishtail Peak, Mount Machhapuchchhre, Nepal 2012-15 -Infrastructure best practices worldwide Environmental Law Alliance Worldwide Partnership GLOBAL PARTNERSHIP: Conference South Africa 2015 –Ecosystem Services World Analysis Conference Italy 2015 –International Association for Impact “Envisioning aSustainable Tropics” USA 2015 -University ofFloridaConference Peru 2014 -UNFCCC COP20 Mechanisms for Tropical Forest Conservation” Foresters Conference “Forests asCapital:Financial USA 2014 –Yale International SocietyofTropical “Impacts of Roadson Ecosystems andLivelihoods” Australia 2013 -JamesCook University Symposium EVENTS: Nepal 2014 -Policy Forum Uganda 2014 -Policy Forum Uganda 2014 -NEMAeconomic analysis guidelines Peru 2015 -MINAMvaluation guidelines Peru 2011-15 -MINAMcompensation policy POLICY WORK: covereddevelopment. Theforum environmental economic andinfrastructure Kathmandu onbiodiversity conservation government in ministriestoholdaone-daypolicyforum Development Bank, World Bank, andseveral ofNepal’s In 2014,CSFcollaboratedwith WWF Nepal, theAsian Nepal PolicyForum andcost-effectiveness.in awaythatmaximizes conservation practical compensationstandards forinfrastructure projects With this input, MINAM will be able to design detailed and life. mechanisms thatensure resource availability over aproject’s of compensationplans,andrecommendations forfinancial compensation plans,toolstoestimatethemanagementcosts into Economic Impact Assessments and environmental recommendations forintegratingbiodiversity information equivalent areas forenvironmental compensation, The caseswillprovide guidanceonmethodsofidentifying actions, suchashabitatprotection andrestoration, are done. economic, environmental and social performance of economic, environmental andsocial performance and discusspolicytoolsthatcanbeusedtooptimize the government agenciesarare tocometogether opportunity journalists, representatives from environmental NGOs, and gaveOverall, investors, the forum development planners, environmental andsocialconcernsintofeasibilitystudies. were alsopresented tohighlightmethodsforincorporating of roads anddamsfrom Panama, Mexico, Brazil, andNepal development intheregion. Economic analysiscasestudies in infrastructure policies,aswell asplansforfuture learned aboutglobalbestpracticesandinnovations Director General ofRoads, oftheDepartment participants of Science, Technology andEnvironment, andtheDeputy of Forest andSoilSecretary oftheMinistry Conservation, In sessionsmoderated by Nepal’s Secretary oftheMinistry improved across theHimalayan Region. infrastructure planning and decision-making could be and infrastructure development, withafocusonhow analysis andpolicytoolsusedtointegrateconservation Nepal Policy Forum, 2014 2014 Peru Compensation &Mitigation Policy Forum, 31 nergy and transportation infrastructure CSF courses, both in-person and online, and shared development is one of CSF's four priority through our network of Training Partners. areas in our 2015-2020 strategic plan. We Over the four years of our BUILD program, we have Ebelieve that an economics-based approach can observed CSF’s theory of change in action around the CSF’s long-term vision is to make biodiversity conservation and management world. We have seen that giving people the opportunity a central component of large-scale development design and implementation. have significant positive impacts on biodiversity by improving environmentally destructive and to understand, conduct, and share analysis methods Therefore, our long-term commitments are to: economically inefficient policies and projects. CSF that assess economic and environmental trade-offs will therefore continue to focus on improving access of infrastructure projects is an effective and essential • Effectively communicate that the development of smart infrastructure is only to information about large-scale infrastructure strategy towards promoting green infrastructure, possible if decision-making includes a rigorous economic analysis of impacts development in our engagement with governments, protecting biodiversity and achieving sustainable and alternatives. in our communications, publications and online development. By making information about trade- tools, and in our efforts to participate in key national offs and consequences available to people, the doors • Build capacity within civil society and governments to understand and conduct comprehensive economic analyses of infrastructure projects. and international meetings and events. We will to public scrutiny are opened, allowing for rigorous continue improving our online HydroCalculator debate and the opportunity to use an inclusive • Provide support to governments and civil society to design and apply policy and Roads Filter analysis tools and the infrastructure technical approach to explore alternatives. Through that ensures environmentally, socially, and economically sound selection and portion of our website, and we plan to expand the process of learning, applying, and sharing tools implementation of large-scale infrastructure projects. our infrastructure project inventory. We also plan and information with others, people gain the power to create additional online materials and training to influence decision-making and affect real change. targeted at non-technical audiences to help them These successes are made possible through countless understand the economic and environmental impacts connections, partnerships, collaborations, and of infrastructure development as well as international alliances with groups large and small in all the places standards, safeguards and best practices. We will where we have had the privilege to work. We look also continue to disseminate our work on financial forward to the many relationships, projects, courses, incentive mechanisms for greener infrastructure. and events in the years to come as we continue this important work on behalf of the world’s life- In Peru, we will continue working with the sustaining ecosystems. government on infrastructure policy reform and compensation policy test cases through the end of 2016. In Brazil, we will carry on our work in the Through the process of Tapajós basin valuing impacts of dam development on various ecosystem services, focusing on a strong learning, applying, and sharing outreach strategy. In Uganda, we will continue tools and information with collaborating with our partners to disseminate the others, people gain power to results and communications products developed by the research teams. In the coming years, we will seek influence decision-making additional opportunities to engage with governments and affect and organizations in all three focus regions to guide and improve infrastructure policies in favor of SUSTAINABILITY biodiversity protection. REAL After the conclusion of the BUILD Program, we will of BUILD efforts continue to develop and improve our infrastructure CHANGE. curriculum for integrated environmental-economic analysis. This curriculum will be incorporated into 32 33 • January 2014 - publication and dissemination of the Financial Incentives for Green Infrastructure policy brief. • 2013-2015 - Further dissemination via network, courses, forums, meetings and international events. Locally we shared information on compensation and financial mechanisms with the Pucallpa and Inambari monitoring groups, and with the partners for the Uganda analysis projects (NEMA, UWA, WCS, and IGCP).

Develop web resources to promote access to infrastructure & biodiversity information. • 2011-2013 - Infrastructure web resource area designed • February 2014 - Public launch of CSF’s Infrastructure & Biodiversity section of our website, which includes an introductory video explaining how visitors can use the resources included, links to global inventories of infrastructure development, infrastructure publications, infrastructure news, and additional infrastructure resources. APPENDIX Trained key BUILD staff members in communication and public presentation skills to more effectively participate in local, BUILD Activities by Region national and international events to promote environmental-economic analysis of infrastructure development to improve biodiversity outcomes. BUILD reports, policy briefs, case studies, instructional videos and links can be found on www.conservation-strategy.org/ infrastructure. The electronic version of this report can also be obtained atDEC and the FAB gateway. • December 2014 - Training in Costa Rica for staff from Costa Rica, Peru and Brazil • April 2015 - Training in California for U.S. based staff Global Created overarching BUILD communication products about the important connection between infrastructure, economic Gathered information on infrastructure information bottlenecks, infrastructure policy and innovations around the world in analysis and biodiversity. partnership with the Environmental Law Alliance Worldwide (ELAW). • April 2015 - Created overview PowerPoint presentations on roads, dams and biodiversity for • 2012 - Began collecting information in Brazil, Bolivia, Peru, Ecuador, Colombia, Uganda, Democratic international meetings and events. Republic of Congo, Nepal and the Philippines. • August 2015 – Finalized an internal one-page document, produced in English, Spanish and Portuguese. • 2013 - Final report completed by ELAW reviewing best practices and innovations in infrastructure policy in the • September 2015 – Published a Smart Infrastructure infographic in English, Spanish and Portuguese. Andes-Amazon, Albertine Rift, and Himalayas. • November 2015 - Produced a Smart Energy and Transportation Infrastructure animated video in English. • April 2014 - Publication of ELAW-CSF review on best practices and innovations in infrastructure policy Moving towards greener infrastructure: Innovative legal solutions to common challenges via a Policy Brief and Discussion Animated video lessons have over 80,000 views to date. Paper. • 2014-2015 - Shared our lessons learned about infrastructure policy best practices and models during international • May 2014 - Launched CBA animated video lessons with over 20,000 views infrastructure and biodiversity related events: • June 2015 - Launched CSF’s Valuation video series - December 2014 UNFCCC COP20 side event in Lima - March 2015 University of Florida Conference Delivered in-house training for USAID staff:Economic Tools for Integrating Biodiversity and Ecosystem Services into - April 2015 International Association for Impact Analysis 15 Conference in Italy Development Investments.

HydroCalculator upgrades to improve ease of use and accuracy. • Curriculum included economic fundamentals, how to value and incorporate environmental impacts, integrated environmental-economic cost-benefit analysis of energy and transportation, CSF’s online • 2012-2013 - HydroCalculator upgrades launched including dynamic map, improved satellite imagery and more HydroCalculator and Roads Filter, and strategies for effective communication of results. detailed vegetation types. • Participants in the training ranked the overall value of the course as 4.5 out of 5, and 100% said they • 2012 - Information gathered and entered into HCT on dams greater than 100 MW in Brazil, Bolivia, Peru, would recommend the training to others. Ecuador and Colombia. • May 2013 - Policy brief about the HydroCalculator. Presented at international events and conferences to disseminate findings from our analysis projects. • 2015 - Assisted International Rivers in using the HydroCalculator Tool to evaluate dams throughout Africa. The result of this effort is the October 2015 publication Right Priorities for Africa’s Power Sector: An Evaluation of • December 2014 - CSF collaborated with TNC to convene a side event at the UNFCCC COP20 in Lima. We Dams Under the Programme of Infrastructure Development for Africa. presented results of the Pucallpa-Cruzeiro do Sul road and railway analysis, and shared recommendations from our reviews of infrastructure policy best practices and financial mechanisms for mitigation and compensation. Develop financial incentive mechanisms for greener infrastructure. • March 2015 - CSF participated in the University of Florida’s Envisioning a Sustainable Tropics Conference. Presented on “Making the Economic Case for Avoidance of Biodiversity Loss” that showcased road and dam • June 2013 - Financial Mechanism for Environmental Compliance of Infrastructure Projects discussion paper written infrastructure examples, including BUILD analyses. and disseminated • April 2015 – Participated in the 2015 International Association for Impact Analysis Conference in 34 35 Florence, Italy. CSF and WCS-Uganda staff presented results of the WCS oil pipeline analysis, Bwindi road focus of our policy support during the first three years of BUILD. During theCOP20 event in Lima, analysis, and Pucallpa-Cruzeiro do Sul projects, as well as our recommendations for financial mechanisms for MINAM officially launched the environmental compensation policy. mitigation and compensation. Conference papers: Financial Mechanisms for the Mitigation Hierarchy & EIA • 2015 - Launched compensation policy test cases in Peru on four specific infrastructure projects: the Compliance and Making the Economic Case: Avoidance of Biodiversity Loss in Infrastructure Development. Hidrovía Amazonicas and Mazán hydroelectric projects in Loreto, and the Interoceanica Sur road and Hunt oil concession in Madre de Dios. Consolidated our experiences and curriculum for teaching integrated environmental-economic analysis as developed and • May 2015 - Publication of peer-reviewed paper about the Peruvian compensation policy in the Journal tested during the BUILD courses in Peru, Brazil, Uganda, DRC and Bhutan. of Sustainable Forestry: Ecological Compensation to Address Environmental Externalities: Lessons from South American Case Studies

Analysis of Inambari dam in Peru, showing higher costs than benefits to Peruvian society.

• May 2012 - Policy brief published. • December 2012 - Final report published. • 2013 - Results of the analysis presented to Inambari stakeholder monitoring groups and government officials in Peru and Brazil. • May 2014 - the Peruvian government officially cancelled the Inambari hydroelectric dam project. Andes-Amazon Analysis of the Pucallpa-Cruzeiro do Sul road between Peru and Brazil. Policy events and forums focused on infrastructure & biodiversity: • June 2012 - Discussion paper published. • In the Andes, we participated in infrastructure and biodiversity policy events hosted by the Initiative for • June 2012 - Policy brief published. Conservation of the Andes Amazon Phase II (ICAA II). Likewise, we worked with TNC, WCS and SPDA in • 2013 - Completion of second phase of Pucallpa-Cruzeiro do Sul road and rail analysis in Peru, including Peru and participated in compensation stakeholder meetings and forums. analysis of rail alternative, inclusion of social and environmental externalities, analysis of land use change and • In Brazil, we participated in the Amazon Infrastructure Working Group (CSF, Imazon, Insituto Centro de Vida, deforestation, and analysis of opportunity costs. None of the transport alternatives is economically feasible, Idesam, WWF, Instituto Socioambiental, AVINA Foundation, TNC, Associaçáo O Eco and others). and the train project represents the least bad alternative, because it would have significantly lower environmental costs than the road. Sortable Roads Filter list developed and launched, including 36 Amazon region roads of concern. • December 2013 and March 2014 - Workshops held in Lima to share the results from this follow-up research with CSF, TNC and Grupo de Análisis para el Desarrollo. • November 2011 - Report published • May and August 2014 - Meetings in Pucallpa in with the infrastructure monitoring team (Grupo de • January 2013 - Policy brief published Monitoreo) and Indigenous group representatives (Comunicadores Indigenous), as well as the Ucayali Regional Government. Information gathered and entered into HydroCalculator on dams greater than 100 MW in Brazil, Bolivia, Peru, Ecuador • September 2014 - Participated in a two-day workshop in Rio Branco, in the state of Acre in Brazil to and Colombia (2012). present the Pucallpa-Cruzeiro project and general CBA analysis concepts to government and civil society organizations. Economic Tools for Conservation and Infrastructure Planning training courses implemented. • November 2014 - Publication of a shorter English discussion paper. • December 2014 - CSF collaborated with TNC to convene a side event at the UNFCCC COP20 in Lima and • May-June 2012 - Economics Tools for Conservation and Infrastructure Planning course in Peru presented results of the Pucallpa-Cruzeiro do Sul analysis (ICAA II). • March 2015 - Published final report. • August 2012 - Economics Tools for Conservation and Infrastructure Planning course in Brazil. • March 2015 - CSF presented final results of the study to the Pucallpa monitoring group (Grupo de Monitoreo) and Indigenous group representatives (Comunicadores Indigenous), as well as to the Ucayali • Supported Peru’s Ministry of Environment (MINAM) in drafting a directive on ecological compensation Regional Government. for development projects. • April 2015 – CSF participated in the 2015 International Association for Impact Analysis Conference in Florence, Italy. CSF staff presented results of the Pucallpa-Cruzeiro do Sul road and rail • February 2013 - Draft Ministerial Resolution on environmental compensation circulated by MINAM for analysis. comments. • July 2015 - Documentary video about the project: Infraestructura y Conservación: El Caso Pucallpa- • 2014 - Continued support of the approval process of the Draft Ministerial Resolution on environmental Cruzeiro do Sul, which was shared during forum in Lima, through CSF’s website, the CSF newsletter, and compensation. the ICAA bulletin. • September 2014 - Signed an agreement with MINAM to design and develop at least two compensation case • July 2015 - Convened a high-profile forum in Lima: Challenges for sustainable interconnection in the Ucayali studies in Amazonian ecosystems. region. Presented results of the Pucallpa-Cruzeiro do Sul road analysis to government and other stakeholders. • December 2014 - MINAM made a major policy announcement passing Peruvian compensation policy, the

36 37 In-house training to build capacity of Peru’s Ministry of Environment of Peru (MINAM). Analysis of the Ikumba-Ruhija-Buhoma road through Bwindi Impenetrable National Park in Uganda with the International Gorilla Conservation Programme (IGCP). • May 2012-April 2013 - Planning and design phase. • April-December 2013 - Implementation of nine-month capacity building program in environmental • Fall 2012 - Project launched. valuation techniques. Program consisted of guided readings, weekly virtual discussions, and three in- • 2012-2015 - Met with key stakeholders throughout the project, including Uganda National Road Authority, person workshops in Lima. Uganda Wildlife Authority, and Uganda Chapter of Poverty and Conservation Learning Group. • January 2015 - MINAM launched officialnational guidelines for environmental valuation. • 2013 - Fieldwork and data gathering. • 2014 - Analysis finalized showing the higher benefits and lower risks of road alternatives outside the Media trainings for journalists and other media representatives: park. CSF and IGCP had several informal meetings with Uganda National Road Authority to present results of the analysis. • December 2012 – Infrastructure media training in Puerto Maldonado, Peru: Amazon Dialogue for • September 2014 - project methods, results and conclusions presented at national policy forum in Kampala. Journalists. Journalists from Peru, Ecuador, Colombia, Bolivia and Brazil attended. • September 2014 - Policy brief of the project published and disseminated. • November 2013 - Infrastructure media training in Brasilia: Obras de infraestrutura na Amazônia: desafios da • March 2015 - Presented results of study to local communities and stakeholders during Ug-PCLG forum. cobertura midiática e ferramentas de apoio à análise e ao diálogo. • April 2015 – CSF participated in the 2015 International Association for Impact Analysis Conference in Florence, Italy. CSF presented results of the Bwindi road analysis. Analysis of the São Luiz do Tapajós hydroelectric dam in the Tapajós Basin in Brazil. • May 2015 - Published the full report: Pave the Impenetrable? An economic analysis of potential Ikumba-Ruhija road alternatives in and around Uganda’s Bwindi Impenetrable National Park. • June 2015 – Participated in Dams on the Tapajós River workshop held at the Pontifícia Universidade • September 2015 – Full report published in hard copy in Kampala for distribution by IGCP and NEMA. Católica in Rio de Janeiro, Brazil in June 2015. • September 2015 - Presented Tapajós study at workshop in Brasilia: Analysis of the São Luís do Tapajós Dam’s Analysis of oil pipeline construction in the Albertine Rift region, with the Wildlife Conservation Society. Environmental Impact Assessment • November 2015 – Presented our Tapajós study at the Ecosystem Services Partnership World Conference in • Fall 2012 - Project launched. South Africa • 2012-2015 - Met with key stakeholders throughout the project, including the Hoima, Bulisa, and Kasese district local governments. • 2013 - Fieldwork, data gathering, and development of GIS methodology • February 2013 - Infrastructure information sharing meeting in Uganda with key government ministries, departments and agencies, the private sector, and civil society organizations. During this meeting, NEMA/ UWA and WCS presented their analysis projects. Oil company representatives from Tullow and Total were also present. • 2014 - Analysis finalized. • July 2014 - WCS hosted the Multi Stakeholder Marxan/Tradeoffs Workshop to present goals, methods and preliminary results of the project. Albertine Rift • September 2014 - project methods, results and conclusions presented at national policy forum in Kampala. • September 2014 - CSF, WCS, and Joseph Bull, a biodiversity offset expert from Imperial College in Policy events and forums focused on infrastructure & biodiversity: London, held a meeting with staff from the Ministry of Energy and Mines to discuss project results and potential opportunities for biodiversity offsets in Uganda. • April 2014 – The National Environmental Management Authority of Uganda (NEMA) convened a • April 2015 - Published final report: A Cost Effectiveness Approach to Routing of Linear Infrastructure in meeting to discuss infrastructure policy best practices and innovations, and identify opportunities for Environmentally Sensitive Areas: A Case of a Crude Oil Pipeline In the Albertine Rift in Uganda. policy reform: Policy Meeting on Innovative Solutions for Biodiversity and Gender Integration in Infrastructure • April 2015 – CSF participated in the 2015 International Association for Impact Analysis Conference in Developments and Guidelines for Economic Analysis of Environment Impacts. Attended by representatives of key Florence, Italy. CSF and WCS-Uganda staff presented results of the WCS oil pipeline analysis. government ministries, departments and agencies, the private sector, and civil society organizations. Analysis of oil pipeline development in Murchison Falls National Park with Uganda National Environmental Management Economic Tools for Conservation and Infrastructure Planning training courses implemented. Authority (NEMA) and Uganda Wildlife Authority.

• June 2012 - Economics Tools for Conservation and Infrastructure Planning course in Uganda. • Fall 2012 - Project launched. • June 2013 - Economics Tools for Conservation and Infrastructure Planning course in Democratic Republic • 2012-2015 - Met with key stakeholders throughout the project, including NEMA, UWA, WCS, Ministry of of Congo. Course video. Finance, Planning and Economic Development, and Tullow Oil • • 2013 - Project planning, design, and fieldwork. • • February 2013 - Infrastructure information sharing meeting in Uganda with key government ministries, • departments and agencies, the private sector, and civil society organizations. During this meeting, NEMA/ 38 39 UWA and WCS presented their analysis projects. Oil company representatives from Tullow and Total were Economic Tools for Conservation and Infrastructure Planning training course implemented. also present. • June 2013 - Technical meeting between CSF and the analysis team. • May 2014 - Himalayan regional training course: Analysis of Infrastructure from a Conservation Economics • 2014 - GIS methodology developed and data gathering. Perspective with BUILD curriculum was implemented in Bhutan. Participants came from Nepal, India and • September 2014 - project and methodology presented at national policy forum in Kampala. Bhutan. A video of impressions of the course from one of the participants. • April-November 2015 - Worked with NEMA and UWA to complete the study of oil pipeline development in Murchison Falls National Park. Coordinated technical support from WCS staff, a two-day analysis methods workshop at NEMA, final revisions, and plans for communication of results. • December 2015 - Discussion paper published: Estimating the environmental and biodiversity costs accruing from planned oil pipeline development in the Albertine Rift, the Case of Murchison Falls National Park. Image credits

Developed guidelines with NEMA for economic analysis of environmental impacts. Front cover: Artificial Lake behind the Bicaz Dam at sunset, Romania.© Pixachi • August 2014 - publication of Guidelines for Economic Analysis of Environmental impacts in Uganda. Intro: Aerial Sri Lanka.© supershoot September 2014 - Guidelines launched during the national policy forum in Kampala. Table of contents: Waterfall.© TTphoto BUILD overview: Gravel road leading into hills.© macbrianmun Coordinated a national policy forum on environmental-economic analysis and infrastructure in Kampala, Uganda. Timeline: Tops of mangrove forest.© Itsra Sanprasert Training: Monique Akullo, Economic Tools for Conservation course participant.© CSF Staff • September 2014 - Hosted a 2-day policy forum: Integrating ecosystem conservation and infrastructure Uganda, left: © development for social and environmental well-being in Uganda. Participants in Economic Tools for Conservation course. CSF Staff • Infrastructure clinic on environmental-economic tools, CSF case studies around the world, presentations on Uganda, right: River in Uganda.© Irene Burgués Arrea the three Ugandan analysis projects, and a presentation on the potential of biodiversity offset mechanisms to Media, left: Participants in Peru media training.© CSF Staff compensate and mitigate environmental degradation. Media, right: Buildings in Rio de Janeiro.© John Reid • Policy sessions presented an overview of infrastructure development plans in Uganda, the results of CSF’s MINAM, left: Group photo of participants..© CSF Staff global review of infrastructure policy best practices with ELAW, and potential policy innovations to integrate MINAM, right: John Reid and Mariano Castro singing policy agreement.© CSF Staff biodiversity conservation into infrastructure development in Uganda. Analysis: Murchinson Falls of the river Nile in Uganda.© Danita Delimont • Event concluded with the launch of the NEMA valuation guidelines. Inambari: Aerial view of Amazon river.© Anton Ivanov Assisted International Rivers (IR) in using the HydroCalculator Tool to evaluate dams throughout Africa, including 10 Timeline: Tops of mangrove forest.© Itsra Sanprasert in the Albertine Rift region. Bwindi: Mountain Gorilla in Bwindi National Park, Uganda.© Pav Teragimov Economic Analysis Tools: Round through mountainside.© Anonymous • 2015 - The result of this effort is thepublication : Right Priorities for Africa’s Power Sector: An Evaluation of Policy Work, left: Fishtail Peak, Mount Machhapuchchhre, Nepal.© panutc Dams Under the Programme of Infrastructure Development for Africa. Policy Work, right top: Peru Compensation & Mitigation Policy Forum.© CSF Staff Policy Work, right botom: Nepal Policy Forum.© CSF Staff The Future: Dam at dusk.© Kongkoon Appendix, 34: Cloud forests in Bwindi Impenetrable National Park, Uganda.© Wildnerdpix Appendix, 36: River in Amazon.© Christian Vinces Appendix, 38: Abuket River, Uganda.© Sam DCruz Appendix, 40: View of Nuptse, Kala Patthar, Nepal, Himalayas.© Vadim Petrakov Back cover: Road on dam.© Jitinatt Jufask Himalayas

Organized a policy forum in Kathmandu, Nepal

• May 2014 – hosted a Himalayan policy forum in collaborations with WWF Nepal: Environmental-Economic Analysis and Infrastructure Policy Forum. Event photos.

40 41 Conservation Strategy Fund Conservação Estratégica

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