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Inka Terra: an Innovative Partnership for Self-Financing World Bank (IFC) Biodiversity Conservation & Community Development 3

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Inka Terra: an Innovative Partnership for Self-Financing World Bank (IFC) Biodiversity Conservation & Community Development 3 29868 IINNKKAA TTEERRRRAA:: Public Disclosure Authorized AAnn IInnnnoovvaattiivvee PPaarrttnneerrsshhiipp ffoorr SSeellff--FFiinnaanncciinngg BBiiooddiivveerrssiiittyy CCoonnsseerrvvaattiioonn && CCoommmmuunniittyy DDeevveelllooppmmeenntt Public Disclosure Authorized Public Disclosure Authorized AA MMeeddiiuumm SSiizzeedd PPrroojjeecctt PPrrooppoossaall ffrroomm tthhee IInntteerrnnaattiioonnaall FFiinnaannccee CCoorrppoorraattiioonn ttoo tthhee GGlloobbaall EEnnvviirroonnmmeenntt FFaacciilliittyy Public Disclosure Authorized OOCCTTOOBBEERR 22000033 Table of Contents PROJECT SUMMARY......................................................................................................................... 2 PROJECT RATIONALE & OBJECTIVES ...................................................................................... 17 GLOBALLY SIGNIFICANT BIODIVERSITY CONSERVATION................................................ 18 BASELINE SITUATION.................................................................................................................... 19 ROAD CONSTRUCTION ........................................................................................................................ 19 LOGGING............................................................................................................................................ 20 HUNTING AND FISHING ....................................................................................................................... 20 MINING .............................................................................................................................................. 20 ECOTOURISM...................................................................................................................................... 21 ECOTOURISM MARKET ASSESSMENT....................................................................................... 21 EXPECTED OUTCOMES.................................................................................................................. 22 FOREST CONSERVATION AND MANAGEMENT PLAN ............................................................................. 22 COMMUNITY PARTNERSHIPS FOR FOREST CONSERVATION & SUSTAINABLE DEVELOPMENT ................. 22 ENVIRONMENTAL TRAINING ............................................................................................................... 24 LONG-TERM CONSERVATION FINANCE THROUGH ECOTOURISM DEVELOPMENT ................................... 24 PROJECT ACTIVITIES .................................................................................................................... 24 BUSINESS EXPANSION......................................................................................................................... 24 FOREST MANAGEMENT AND CONSERVATION PLAN ............................................................................. 25 COMMUNITY PARTNERSHIPS FOR CONSERVATION & DEVELOPMENT.................................................... 25 LONG-TERM CONSERVATION FINANCE THROUGH ECOTOURISM DEVELOPMENT ................................... 26 EDUCATION AND TRAINING................................................................................................................. 27 IMPLEMENTATION PLAN.............................................................................................................. 28 INNOVATIVE PARTNERSHIP ................................................................................................................. 28 FINANCING PLAN................................................................................................................................ 29 SUSTAINABILITY ANALYSIS......................................................................................................... 30 ENVIRONMENTAL SUSTAINABILITY ..................................................................................................... 30 SOCIAL SUSTAINABILITY .................................................................................................................... 30 INSTITUTIONAL SUSTAINABILITY ........................................................................................................ 31 FINANCIAL SUSTAINABILITY ............................................................................................................... 31 RISK ASSESSMENT .......................................................................................................................... 32 STAKEHOLDER PARTICIPATION................................................................................................ 33 INCREMENTAL COST ASSESSMENT........................................................................................... 34 BUDGET.............................................................................................................................................. 36 MONITORING & EVALUATION .................................................................................................... 36 REPLICATION................................................................................................................................... 37 ITA CASH FLOW PROJECTIONS .................................................................................................. 38 ANNEX 1: ITA’S ORGANIZATIONAL STRUCTURE................................................................... 39 1 Project Summary Project Identifiers 1. Project Name: 2. GEF Implementation Agency: Inka Terra: An Innovative Partnership for Self-Financing World Bank (IFC) Biodiversity Conservation & Community Development 3. Host Country: Peru 4. Country Eligibility: Peru ratified the Convention on Biological Diversity on March 12, 1993. 5. GEF focal area(s): 6. Operational program: Biodiversity Operational Program # 3: Forest Ecosystems 7. Linkage of the Project and national priorities, action plans and programs The project helps to achieve Peru’s objectives related to biodiversity as articulated in “The Law on the Conservation and Sustainable Use of Biodiversity.” Specifically, the project is aligned with Articles 3 and 5, which state Peru’s desire to: (i) foster education, information exchange, human resource development, and scientific research concerning biodiversity and the sustainable use of its components; (ii) promote economic development based on the sustainable use of biodiversity by encouraging private sector involvement; and (iii) generate funding mechanisms in order to adequately manage biodiversity. The project is also fully consistent with Peru’s National Strategy for Biological Diversity. This Strategy specifies the development of sustainable uses of biodiversity as a national priority. In fact, one of its specific objectives is to promote sustainable tourism. The document indicates that the Peruvian Government seeks to ensure that tourism operators have incentives to promote conservation. It also seeks to foster nature-based tourism that is carried out with appropriate management plans, both in and around protected areas. In addition, the Strategy specifies that the Peruvian government will seeks to promote the granting of long-term concessions to tourism operators so that they are able to manage and protect natural areas. Peru’s Flora and Fauna Act of 2000 provides a legal basis for granting long-term forest concessions for ecotourism purposes. This law specifies that ecotourism operators may obtain the legal right to manage natural areas of up to 10,000 hectares for 40 years. It specifies the procedures for obtaining such a concession, the responsibilities that it entails, and the instances in which concessions may be revoked. This project will help to pioneer the implementation of this legislation. In 1998, Peru’s National Environment Council (CONAM) sponsored a Sustainable Tourism Roundtable that recommended the promotion of ecotourism as a vehicle for biodiversity conservation. In October 2000, the Ministry of Tourism stated that a major strategic direction of its tourism planning will focus on the promotion and development of eco-tourism. In 2001, the President of Peru issued a decree that specifies the basic characteristics and offerings that tourism operators should have in order to be classified as “ecotourism” facilities. At present, PromPeru (a government agency that promotes tourism) is carrying out a large-scale public relations campaign In various countries, including the Unites States, in order to increase tourism visitation to Peru. PromPeru is focusing heavily on the promotion of ecotourism. Beyond that, considerable efforts on the part of the local government and other stakeholders are now being focused on promoting ecotourism speficically in the state of Madre de Dios – where this project will be located – because it generates economic benefits with less environmental impacts than other industries. 8. GEF National Focal Point and endorsement date of the Project: Mariano Castro, Executive Secretary of the National Environment Council (CONAM), endorsed this proposal on February 14, 2001. Project Objective, Outcomes and Activities 9. Project Objective: Indicators: To catalyse self-financing uses of the 10,000 hectare Inka Elimination of logging Terra Ecological Reserve (IER) that achieve biodiversity Reduction in hunting and poaching to sustainable levels conservation and sustainable development for local Increase in population of endangered species. communities. This is expected to provide a replicable Increase in community involvement in conservation- model for engaging the
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