PHOTO CREDIT: OSCAR PACUSSICH, OMAR LUCAS, OMAR LUCAS
USAID/PERU PRO-BOSQUES QUARTERLY PROGRESS REPORT APRIL 1 – JUNE 30, 2019 (Q3 FY19)
JULY 2019 This publication was produced for review by the United States Agency for International Development. It was prepared by Tetra Tech.
This publication was produced for review by the United States Agency for International Development by Tetra Tech, through USAID Contract No. 72052718C00002
Activity Start Date and End Date: September 25, 2018–September 24, 2023 Total Award Amount: $23,046,696
This report was prepared by:
Tetra Tech 159 Bank Street, Suite 300 Burlington, Vermont 05401 USA Telephone: (802) 495-0282 Fax: (802) 658-4247 Email: [email protected]
Tetra Tech Contacts:
Dr. Hector Cisneros, Chief of Party Email: [email protected]
Jason Girard, Project Manager Telephone: (802) 495-0591 Email: [email protected]
Korinne Nevins, Deputy Project Manager Telephone: (802) 495-0315 Email: [email protected]
USAID/PERU PRO-BOSQUES QUARTERLY PROGRESS REPORT & QUARTERLY FINANCIAL REPORT FY2019 Q3: APRIL 1 – JUNE 30, 2019
JULY 2019
DISCLAIMER This document is made possible by the support of the American People through the United States Agency for International Development (USAID.) The contents of this document are the sole responsibility of Tetra Tech and do not necessarily reflect the views of USAID or the United States Government.
TABLE OF CONTENTS
TABLE OF CONTENTS ...... I ACRONYMS AND ABBREVIATIONS ...... 2 1.0 ACTIVITY OVERVIEW ...... 4 1.1 ACTIVITY OVERVIEW ...... 4 1.2 ACTIVITY DESCRIPTION ...... 4 2.0 EXECUTIVE SUMMARY ...... 5 3.0 OVERALL PROJECT MANAGEMENT ...... 6 3.1 PROJECT MANAGEMENT AND ADMINISTRATION ACHIEVEMENTS ...... 6 Modifications and Amendments ...... 7 Cross-Cutting Tasks for Next Quarter ...... 8 3.2 PROBLEMS ENCOUNTERED AND SOLUTIONS ...... 8 4.0 PROGRESS BY OBJECTIVES ...... 9 4.1 OBJECTIVE 1: FOREST GOVERNANCE, MONITORING, AND ENFORCEMENT ...... 9 4.1.1 Activities and Achievements ...... 9 4.1.2 Challenges Encountered ...... 12 4.1.3 Next Quarter ...... 12 4.2 OBJECTIVE 2: PRIVATE SECTOR ENGAGEMENT ...... 13 4.2.1 Activities and Achievements ...... 13 4.2.2 Challenges Encountered ...... 16 4.2.3 Next Quarter ...... 17 4.3 OBJECTIVE 3: INDIGENOUS COMMUNITY RIGHTS AND RESOURCES ...... 18 4.3.1 Activities and Achievements ...... 18 4.3.2 Challenges Encountered ...... 19 4.3.3 Next Quarter ...... 19 5.0 CROSS-CUTTING THEMES ...... 20 5.1 COMMUNICATIONS ...... 20 5.2 GENDER AND SOCIAL INCLUSION ...... 20 5.3 PARTNERSHIPS ...... 21 5.4 INSTITUTIONAL ARRANGEMENTS & COORDINATION ...... 22 5.5 SCALING & SUSTAINABILITY ...... 23 5.6 SHORT-TERM TECHNICAL ASSISTANCE/CONSULTANCIES UPDATE ...... 24 6.0 NEXT QUARTER’S DELIVERABLES, APPROVALS, ACTIVITIES & EVENTS ...... 25 6.1 DELIVERABLES FOR Q4 FY19 (JULY–SEPTEMBER 2019) ...... 25 6.2 UPCOMING INTERNATIONAL TRAVEL (STAFF AND CONSULTANTS) ...... 25 6.3 LIST OF UPCOMING ACTIVITIES AND EVENTS QR4 2019 ...... 26 6.4 CALENDAR OF PLANNED OUTREACH AND COMMUNICATION EVENTS ...... 27
Note: Annexes to the USAID Pro-Bosques Quarterly Report are Provided Separately
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ACRONYMS AND ABBREVIATIONS
ACONAMAC Asociación de Comunidades Nativas de Asháninkas-Ashéninkas de Masisea y Callería ADEX Peruvian Association of Exporters AIDER Asociación para la Investigación y el Desarrollo Integral AIDESEP Asociación Interétnica de Desarrollo de la Selva Peruana AMCHAM American Chamber of Commerce of Peru APCI La Agencia Peruana de Cooperación Internacional BMPs USAID’s Amazon Best Management Practices Activity, implemented by AECOM CEDIA Centro para el Desarrollo del Indígena Amazónico CFM Community Forest Management CITE Center for Technological Innovation CONAP Confederación de Nacionalidades Amazónicas del Perú COP Chief of Party COR Contracting Officer’s Representative DCOP Deputy Chief of Party EMMP Environmental Mitigation and Monitoring Plan FECONALICM Federación Fronteriza de Comunidades Nativas del Lago Imiría y Chauya. FECORITAYB Federación de Comunidades de los Ríos Tapiche y Blanco. FOREST USAID/Peru-funded U.S. Forest Service Activity FY Fiscal Year GESI Gender and Social Inclusion GHG Greenhouse Gas GOP Government of Peru GORE Regional (Departmental) Governments of Peru GTF Forest Transportation Guide IEIFA Indigenous Empowerment Index of the Peruvian Amazon’s Forest Sector INACAL Instituto Nacional de Calidad IO Indigenous Organization IT Information Technology ITP Instituto Tecnológico de la Produccion (Peruvian Technological Institute for Production) LO CTP Libro de Operaciones de Centros de Transformación Primaria. LO TH Libro de Operaciones para Títulos Habilitantes
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MC-SNIFFS Control Module of the National Forest and Wildlife Information System MEF Ministry of Economy and Finance MEL Monitoring, Evaluation, and Learning MINAGRI Ministry of Agriculture MINAM Ministry of Environment ORAU Organización Regional de la Asociación Interétnica de Desarrollo de la Selva Peruana- Ucayali ORPIO Organización Regional de los Pueblos Indígenas del Oriente OSINFOR Forestry and Wildlife Resource Oversight Agency NTFP Non-Timber Forest Product(s) Pro-Bosques USAID/Peru’s “Securing a Sustainable, Inclusive, and Profitable Forest Sector” Activity SERFOR Peruvian Forest and Wildlife Service SNIFFS National Forest and Wildlife Management Information System STTA Short-Term Technical Assistance SUNAT Superintendencia Nacional de Aduanas y de Administración Tributaria TBD To be determined USAID United States Agency for International Development USFS United States Forest Service UTMFC Unidades Técnicas de Manejo Forestal Comunitario
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1.0 ACTIVITY OVERVIEW
1.1 ACTIVITY OVERVIEW Project Name USAID Pro-Bosques Activity Program Start & End Date September 25, 2018–September 24, 2023 Name of Prime Implementing Tetra Tech Partner Contract Number 72052718C00002 Award Ceiling $23,046,696 Subcontractors HiB Latinoamérica, ProPurus, CEDIA GOP’s National Forest and Wildlife Service, the Ministry of Major Counterpart Organizations Agriculture, and the Ministry of Environment Geographic Coverage Peruvian Amazon region1, particularly Ucayali and Loreto Reporting Period Quarter III Fiscal Year 2019: April 1– June 30, 2019
1.2 ACTIVITY DESCRIPTION On September 25, 2018, USAID awarded Tetra Tech the five-year contract to implement the “USAID Securing a Sustainable, Profitable and Inclusive Forest Sector in Peru” Activity (USAID Pro-Bosques). The USAID-funded Activity will support the strengthening of Peru’s forest sector, focusing on strengthening forest governance through forest control and monitoring tools, promoting private sector engagement through sustainable forest management and improved business practices, and fostering market inclusiveness by increasing the participation of indigenous and other forest-dependent communities in forest value chains. The overall goal is to provide the pillars for sustainability, legality, inclusivity, and profitability that are necessary to support and modernize Peru’s forest sector. The USAID Pro-Bosques Activity (herein also referred to as ‘The Activity’) will strengthen monitoring and enforcement in the forest sector by implementing the use of the National Forest and Wildlife Management Information System (SNIFFS), including the full implementation of the Control Module (MC-SNIFFS) in the Peruvian amazon region. Working in collaboration with the private sector, Tetra Tech will support forest title holders, including concession holders and native communities, as well as processing centers and exporters to improve their forest management plans, reduce waste, and increase performance throughout the entire wood value chains. Tetra Tech will also work with local indigenous organizations to scale up and expand community control and oversight of forest resources in order to strengthen indigenous rights and improve forest-based livelihoods. Combined, these efforts will reduce illegal logging and provide the pillars for sustainability, legality, inclusivity, and profitability that are necessary to support and modernize Peru’s forest sector. The activity will: • Strengthen monitoring and enforcement in the forest sector to increase legal timber for international and domestic use (Objective 1); • Improve private sector engagement in forest sector activities through the increase of efficiency in the use and transformation of forest resources, working to reduce deforestation rates and illegal logging (Objective 2); and • Strengthen indigenous communities’ rights and resources through sustainable forest management (Objective 3).
1 Amazonas, Cusco, Huánuco, Junín, Loreto, Madre de Dios, Pasco, Puno, San Martin, and Ucayali.
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2.0 EXECUTIVE SUMMARY
In the third quarter of the 2019 fiscal year (FY19Q3), Pro-Bosques is fully established in the Loreto and Ucayali regions. It has commenced implementation across all its components, both nationally and in the prioritized regions, and has established operations and acquired all needed infrastructure for its offices in Lima, Loreto (Iquitos), and Ucayali (Pucallpa). At the close of FY19Q3, Pro-Bosques has effectively implemented field activities in an alliance with SERFOR, the Ucayali regional government, and the Loreto regional government. These activities were geared toward implementing the MC–SNIFFS; consolidating community control and oversight (CVC); strengthening community forest management and social inclusion in indigenous communities; strengthening sustainable forest management in forest concessions (MFS) and local forests; promoting the growth of forest sector competitiveness; and strengthening the capacity of forest authorities to better access public finance to carry out their mandates, especially those concerning the MC-SNIFFS, CVC and MFS. At the same time, Pro-Bosques has intensified joint work with other donor-funded and public-sector projects. In this context, Pro-Bosques has achieved the following: • Defined its direct participants (18 indigenous communities, 10 forest concessions and 13 timber transformation centers). • Began all the activities of the MC-SNIFFS (2019-2023) Implementation Plan, which was submitted to SERFOR and accepted at the end of the last quarter. • Facilitated the development of the community control and oversight (CVC) strategic plans for the landscapes of Requena (Loreto region) and Tamaya (Ucayali region), including the active participation of the joint work of the indigenous peoples’ representative organizations (ORAU, FECONALICM, ACONAMAC in Ucayali and ORPIO, FECORITAYB in Loreto) and the GOP (regional forest authorities in both regions). • Initiated all required baselines assessments and other key studies on: legally-sourced timber supply; indigenous empowerment index; forest competitiveness index; institutional capacity of forest authorities; private sector landscape analysis; and the feasibility study of local forest models. In next quarter Pro-Bosques will: • Conduct an internal technical and strategic review of its progress thus far to inform the FY20 (Year 2) Pro-Bosques Annual Work Plan (July 23-26). • Continue to execute the MC- SNIFFS Implementation Plan in Loreto and Ucayali, and expand it to include the Madre de Dios region, in coordination with the regional forest authorities and SERFOR. • Finalize the establishment of the control and oversight committees of the 18 participating indigenous communities, in articulation with their representative indigenous organizations and the respective regional forest authorities. • Complete the forestry competitiveness diagnostic of Pro-Bosques participating forest enterprises and plan the tailored technical assistance activities per type of forest value chain stakeholder, to encourage progress towards an improved business model. • Conclude the formulating and/or updating of the Life Plans of the 18 participating communities and begin the participatory planning process for the Pro-Bosques supported community forest management initiatives. • Establish Memorandums of Understanding with public and private forest sector stakeholders, such as the MOU with CITE Maderas, to coordinate efforts to strengthen the forest sector at national and regional levels.
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• Strengthen the capacity of river transportation within the Loreto and Ucayali regions to enhance operations and facilitate navigation in the respective landscapes where development field activities take place 3.0 OVERALL PROJECT MANAGEMENT
3.1 PROJECT MANAGEMENT AND ADMINISTRATION ACHIEVEMENTS In FY19 Q3, Pro-Bosques finalized the selection of the 18 indigenous communities, 10 forestry concessions and 13 timber processing centers in the Ucayali and Loreto regions that will participate as beneficiaries of technical assistance. The team has also begun implementation of its programmed MC-SNIFFS activities; community control and oversight (CVC) planning; life plans and community forest management with indigenous groups; and work with the private business sector. Pro-Bosques is now conducting its main baseline and key studies: legal timber supply; indigenous empowerment index; forest sector competitiveness index; forest authorities’ institutional capacities; private sector landscape analysis; and the feasibility study for local forest models. The Activity has established several alliances with local, regional, and national indigenous organizations as well as key business associations in Ucayali and has begun on-the- ground technical assistance with the Ucayali and Loreto regional governments in partnership with SERFOR. It has also focused on aligning with other donor-funded and public sector projects. Pro-Bosques operations are in Lima and in the regional offices in Iquitos (Loreto region) and Pucallpa (Ucayali region). Two river boats, one for working on the Requena landscape in Loreto and the other for the Tamaya landscape in Ucayali were procured and are in use. In the next quarter, the Activity plans to purchase a road vehicle for working in the Ucayali region and two additional river boats (1 for each region) to allow for efficient project implementation.
Staff changes and/or hiring of Pro-Bosques staff in Q3 include the following: Administrative staff: • Fabiola Garcés is now the Finance Administrator, replacing María Elena Canchari, as of 1 June. • Clotilde Cabrera was hired as Subcontracts, Procurement and Logistics Coordinator on April 2. • Claudia Bazalar was hired as Subcontracts, Procurement and Logistics Assistant on May 13. • Carlos Magno Segura Pinedo was hired as a driver/logistics support for the Ucayali regional office on April 15. • Manuel Eloy Jiménez Alberca was hired as a driver/logistics support for the Loreto regional office on April 15.
Technical staff: • Jesús Díaz was hired as the Forest Economics and Finance Specialist April 24. • Beatriz Robles was hired as the Component 1: Governance & Sustainability Coordinator May 8. • Jenny Fano was hired as Capacity Building Specialist on May 20. • Alejandro León was hired as a GIS/IT Specialist on April 15. The staff positions needed for implementing the MC-SNIFFS (national and regional) will come into effect during the next fiscal year, as their hiring is dependent upon the progress of implementation and the needs of SERFOR and the Loreto, Ucayali and Madre de Dios regional governments.
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To complement the work of the permanent technical team and increase ProBosque’s impact, the following technical service organizations have been subcontracted in this quarter: N° Specialist service Institution Status E01 “Evaluation of progress in IT development for Quality & Innovation N° 1095-2019-004 Underway implementing the (MC-SNIFFS) and main projections”. Services S.A.C E08 “Supervision of evaluation of progress in the IT Colonias N° 1095-2019-005 Underway development of the Control Module (MC-SNIFFS)”. Consultores E07 "Analysis of the private forest sector in the Agriconsult Perú N° 1095-2019-006 Underway Peruvian Amazon, particularly Loreto and Ucayali". SAC E06 "Base-line of legal timber supply in Peru, including Cámara Nacional N° 1095-2019-E007 Underway technical, social and commercial aspects". Forestal E05 "Baseline and study of the institutional capacities for the full implementation of an information system Pontificia Universidad N° 1095-2019-E008 that covers the whole of the MC-SNIFFS in Loreto, Underway Católica del Perú Madre de Dios, Ucayali, Junín, Pasco, Huánuco, Amazonas, San Martin, Cusco and Puno". Individual specialists (consultants) have been hired for short-term technical assistance (STTA) services this quarter as follows: N° Specialist service Specialists Status CONCO-0001-2019 “Identification and description of commercial forestry stakeholders Sixto Luna In in the Requena –Contamana landscape, Loreto region”. Pinchi progress CONCO-0002-2019 Technical assistance in systems analysis associated with the Efrain In Control Module of the National Forest and Wildlife Management Pimentel progress Information System (MC-SNIFFS). Blas CONCO-0003-2019 "Construction and study of the Competitiveness Index of Forestry Gustavo In Companies in Loreto and Ucayali" Ruiz Tay progress CONCO-0004-2019 Specialist technical assistance for implementing the project Walter In communication and dissemination strategy in the Loreto and Aguirre R. progress Ucayali regions. Finally, during Q3, USAID Pro-Bosques submitted the following contractual deliverables: • Communication Strategy & Implementation Plan (contractual deliverable #7), approved by USAID. • Community Control and Oversight Plan developed and approved by targeted Local and Regional Governments, submitted on June 25th (contractual deliverable #15), approval pending • Quarterly Performance Report for Q2 (contractual deliverable #4), approved by USAID. • Quarterly Financial Report for Q2 (contractual deliverable #5), approved by USAID.
MODIFICATIONS AND AMENDMENTS A third contract modification to Pro-Bosques is pending based on ROAA letter PER 059/2019, dated, March 28th, 2019. This modification includes several minor adjustments to the Pro-Bosques deliverable and fee schedule along with the replacement of the key personnel position of Finance Administrator: • Modify Deliverable #12 by splitting it into two separate/independent components: The MC SNIFFS Implementation Plan (#12a), submitted on time on March 25th; and 12b the two concept papers for other SNIFF modules. • Deliverable 12b (two concept papers) was also modified to specify on which other two modules Pro- Bosques would develop concept papers: Trade Promotion and Competitiveness and Land Planning (forestry cadaster). Due to the late change (requested by the new SERFOR senior management), the due date for 12b was also changed to 12/31/2019.
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CROSS-CUTTING TASKS FOR NEXT QUARTER Early in Q4, Pro-Bosques will conduct a strategic, technical and operational review of its progress made in the first three quarters, and plan three intervention strategies for its three components in greater detail, as direct participants have been identified and additional detail has been collected on the project landscapes. The Pro-Bosques team will do this in planning sessions scheduled to be held July 23-26. The Pro-Bosques Second Annual Work Plan (FY 2020) will be based on this planning exercise. Next quarter, in Component 1, MC-SNIFFS will be more widely implemented in the forest management of Loreto and Ucayali, and Pro-Bosques will work with SERFOR to finish creating the control and oversight committees of the 18 indigenous communities that were selected, along with their representative indigenous organizations and respective regional forest authorities. Component 2 will conclude the competitiveness diagnostic of participating forest enterprises needed to develop tailored technical assistance to foster their competitiveness and legality. Component 3 will complete the formulation or updating of the Life Plans for the 18 participating communities and will begin participatory planning of the community forest management initiatives to be carried out with Pro-Bosques’ technical assistance.
3.2 PROBLEMS ENCOUNTERED AND SOLUTIONS As reported last quarter, the previous Pro-Bosques Component 1 coordinator was appointed as a government minister, and so the team had to provide coverage to maintain operations in March, April and part of May. The new coordinator for this component was selected and hired (Beatriz Robles, May 8). The capacity building specialist was also hired (Jenny Fano, May 20). Pro-Bosques submitted the MC- SNIFFS Implementation Plan (2019-2023) to SERFOR on April 2, and subsequently, in close coordination with SERFOR and the regional governments, Pro-Bosques has begun implementing the technical assistance activities contained in the plan to support this important forest control and oversight tool through its long-term planning horizon. The tax analysis issues for subcontractors ProPurús and CEDIA were resolved in this quarter and two amendments were subsequently made to the subcontracts signed by both Peruvian NGOs. HiB still has a VAT payment outstanding as they are waiting for the Bolivian Tax Service (SIN) to give clearance to the company to pay VAT in Peru as a non-domiciled company, as stipulated in Peruvian law and in the decisions of the Andean Community of Nations (CAN) in order to avoid double taxation. Meanwhile, HiB has officially established a Peruvian branch office, which will facilitate the administrative and tax management of this subcontract.
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4.0 PROGRESS BY OBJECTIVES
4.1 OBJECTIVE 1: FOREST GOVERNANCE, MONITORING, AND ENFORCEMENT 4.1.1 ACTIVITIES AND ACHIEVEMENTS 1.1. Assist GOP forest agencies and users to improve forest governance at the national level through the implementation and use of the MC-SNIFFS. MC-SNIFFS: In Q3, Pro-Bosques continued providing technical assistance SERFOR which is carrying out the MC-SNIFFS Implementation Plan (2019-2023). The implementation plan has a two-fold strategy, with corresponding implementation activities, as shown in the graphic below:
The plan has been accepted by SERFOR’s directors and is already in the execution stage, with progress per activity described below: 1. Conceptual design for establishing the plan in public forest management: a. The “Baseline of Legal Timber Supply in Peru” study was started. The study describes the supply chains of legal timber produced in the Peruvian Amazon; the main timber producing regions are Loreto, Madre de Dios, Ucayali, Junín, Pasco, Huánuco, Amazonas and San Martin. In Q3, the specialists designed the methodology and started field data collection, after proper training to the staff in the targeted regions. While not yet complete, the work thus far has shown serious forest management deficiencies in the handling of information regarding title-holders and forest transportation guides (GTFs) in the decentralized offices and main regional offices of the Peruvian Amazon. In view of the situation, Pro-Bosques has decided to process 100 percent of the 2017 GTFs in the next quarter, to ensure the study is sound. To conduct this baseline, Pro-Bosques has established synergies with the USAID-USFS FOREST Activity, which has developed a methodology for calculating an illegal logging and trafficking index in Peru, in coordination with the Prime Minister’s Office (PCM) and a consulting group which supports the study that started on April 25th. b. The Private Sector Landscape Analysis began June 5. It will describe and analyze the private sector stakeholders linked to the timber value chain in the Peruvian Amazon in order to identify and contextualize the opportunities and mechanisms for the effective involvement of these stakeholders in implementing the MC-SNIFFS.
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2. Mapping and implementing the seven activities covered by the MC-SNIFFS, and their corresponding regulations: Pro-Bosques and SERFOR have started selecting a team of specialists who will be assigned to SERFOR's Sustainable Management of Forest and Wildlife Control Department, to provide technical and legal assistance and support in designing the update of the MC- SNIFFS processes (map) that will start next quarter. 3. IT development: Evaluation of progress in IT development for implementing the MC-SNIFFS. The evaluation is being conducted by an evaluation company, supervised by a second company, to safeguard the effective application of the right methodologies for IT evaluation and quality assurance applicable to an independent evaluation. Pro-Bosques has also assigned a specialist to SERFOR’s Sustainable Management of Forest and Wildlife Control Department, to provide it with technical support for analyzing and supporting this evaluation. 4. Institutional management assessment and support: a. The baseline of institutional capacities for MC-SNIFFS implementation started on June 8th. This assessment includes SERFOR and the forest authorities at subnational level of the Peruvian Amazon. b. Technical assistance to SERFOR and the Loreto and Ucayali regional forest authorities in executing the MC-SNIFFS Implementation Plan (2019-2023). Pro-Bosques has facilitated the following events for building consensus and inter-agency action: ➢ A technical meeting for establishing agreements between the Loreto Forest and Wildlife Development Management (GERFOR) and SERFOR’s Sustainable Management of Forest and Wildlife Control Department, held in Iquitos (June 13- 14). ➢ A technical meeting for establishing agreements between the Ucayali Regional Forest and Wildlife Management (GRFFSU) and SERFOR’s Sustainable Management of Forest and Wildlife Control Department, held in Pucallpa (June 27-28). These opportunities for dialogue between the forest management teams and SERFOR have been a catalyst for agreements (see below) that will help to implement the MC-SNIFFS in both regions (see agreement minutes in Annex III). Selected results include: ➢ The use of ‘apps’ (i.e., smartphone/tablet applications) for Issuing and Registering Forest Transportation Guides (ER-GTF) in the main and decentralized forestry offices of the Loreto and Ucayali. In Loreto, SERFOR trained the GERFOR technical team in Lima, June 19, 20 and 21 and the app will be effectively installed for use in the Loreto forest management July 3-17. In Ucayali, SERFOR will train the GRFFS staff July 22-24, in Pucallpa, and the app will be installed in the decentralized offices of Atalaya, Padre Abad and Coronel Portillo in August and September. ➢ Training for GERFOR staff to use the updated formats of the Title-holders Operations Registry (June 28, in the Imaza forest concession, on the Iquitos – Nauta highway). It is important to stress that the legal accountability of the Operations Registry2, starting on January 1, 2020 (for both forest and industry), is one of the factors which has made a positive contribution to forest authorities decision-making process. This will soon come into force and will effect a major change in the way timber is produced, transformed and traded in Peru, requiring sound management in both the private and public sectors.
2 For further details, see: https://www.serfor.gob.pe/conoce-las-nuevas-medidas-para-promover-el-sector-forestal-y-de-fauna- silvestre
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5. Financial sustainability: Pro-Bosques has coordinated with SERFOR to start the process of selecting the specialist who will conduct the study to determine the control and oversight of the public budget gap. This is technical input for facilitating the public budgeting process and investment in the MC-SNIFFS in the years ahead, since the new National System for Multi-Annual Programming and Investment Management (INVIERTE.PE) has come into force. 6. SNIFFS Forest Promotion and Competitiveness Module: This quarter, Pro-Bosques has drawn up the terms of reference for a technical assistance service for SERFOR, for the Conceptual Design of the Promotion and Competitiveness Module of the National Information System for Forest and Wildlife (MP-SNIFFS). The conceptual design will be one of the main inputs for enabling the national forest authority to progress in designing, developing and implementing this strategic information tool for boosting inclusive, sustainable and competitive businesses in the forest sector. 7. SNIFFS Forest Cadaster Module: This quarter, Pro-Bosques began coordination with SERFOR’s Forest Cadaster and Zoning Department and the MINAGRI’s Rural Cadaster and Agricultural Property Regularization Department (DIGESPACR), to determine progress to date and the scope of this SNIFFS module. This provided a basis for the terms of reference of this module’s conceptual design, in coordination with SERFOR.
1.2. Assist indigenous organizations to scale up, expand, and operationalize “community control and oversight” to support independent management of indigenous territories. In Q3, Pro-Bosques facilitated the strategic planning of community control and oversight (CVC) efforts in Loreto y Ucayali, in collaboration with the national and regional forest authorities and the representative indigenous organizations, to achieve the following: A. Loreto region: Pro-Bosques and the Loreto regional government’s GERFOR formulated the “Strategic Plan for Community Control and Oversight of Forest and Wildlife in the Tapiche and Blanco river basins, Requena province, Loreto region, for the 2019- 2023 period”. B. Ucayali region. The strategic planning in this region involved the regional government and the local district government of Masisea, with the following results: • With the Ucayali regional government: “Regional Action Plan for community control and oversight in the Masisea district, 2019 – 2022”. • With the Masisea district municipality: “Municipal Action Plan for community control and oversight in the Masisea district, 2019 – 2022” These action plans were submitted and accepted by the regional authorities and indigenous organizations (ORPIO in Loreto and ORAU in Ucayali) and local equivalents (FECORYTAIB in the Requena landscape; ACONAMAC and FECONALICM in the Tamaya landscape). Pro-Bosques will continue promoting and advising on the process of approval and implementation of the strategic plans in both landscapes of the targeted regions. In the Tamaya landscape, in this quarter Pro-Bosques provided support to Indigenous Communities Cametsari Quipatsi, Nueva Amazonia de Tomajao and Nueva California de Shatanya, to culminate the official recognition of their Community Control and Oversight Committees. (See Annex IV) At the national level, in Q3 Pro-Bosques has begun to collaborate actively with SERFOR, the Loreto and Ucayali forest management offices, regional indigenous organizations, the national organizations CONAP and AIDESEP, and other cooperation projects such as the National UN-REDD Program, to promote the analysis based on the coordination with the indigenous control and oversight initiatives that make up the National System of Forest and Wildlife Control and Oversight (SNCVFFS), and the financial sustainability of such initiatives in the Peruvian Amazon.
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4.1.2 CHALLENGES ENCOUNTERED One major challenge during this quarter is the incipient inter-agency articulation between the regional forest authorities and the national forest authority. There are new officials at both government levels, and no forest governance body has yet been set up to facilitate dialogue and inter-institutional relations. In view of this scenario, Pro-Bosques has encouraged and facilitated effective channels for both authorities to articulate, which has opened the way to a first cycle of joint decision-taking on the implementation of MC-SNIFFS in the Loreto and Ucayali regions. Another of this quarter’s main challenges is the situation of information management about timber production and transportation in the Peruvian Amazon regions, which is worse in the decentralized offices of the regional forest authorities. The situation in the field is worse than expected, given that the regional forest authorities have no basic integrated systematization of timber production and transportation of the licenses granted in their regional jurisdiction (on a spreadsheet) and also suffer serious constraints regarding information management about licenses in general. The recent change in regional government administration seems to have aggravated the problem. The difficulties encountered in the technical staff and leaders of the indigenous organizations (especially AIDESEP) for holding coordination meetings. Pro-Bosques has established synergies with the National UN-REDD Program specialist who works full-time with AIDESEP as a technical cooperant. This has produced smoother interaction, since AIDESEP’s agenda addresses several areas and it has limited institutional capacity to work on with them. There are two major cross-cutting challenges in all of this Component’s areas of governance and sustainability, the first concerns the limited development of forest institutions, and second the lack of economic resources at all levels.
4.1.3 NEXT QUARTER For the MC-SNIFFS, Pro-Bosques plans the following: • Proposal for the most sustainable and effective IT management strategy for the full implementation, deployment and maintenance of the MC-SNIFFS IT component in the Peruvian Amazon. The proposal will be presented to SERFOR, based on the results of the independent evaluation of the IT development carried out in the third quarter. • Progress with the MC-SNIFFS official concept document, contributing key input from the various studies in course: a) results and base-line map of timber supply, identifying timber producer areas and economic corridors in the Peruvian Amazon; b) a strategy for engaging the private timber sector in the implementation of MC-SNIFFS; c) the results of assessment of the public management and investment gap on the timber value chain control and oversight; d) the Base-line of the regional forest authorities’ and SERFOR’s institutional capacities for implementing MC-SNIFFS. • From August, a team of specialists will start to participate in SERFOR, to help map, develop and regulate the seven forest administration procedures covered by the MC – SNIFFS, complementing and in synergy with advances in the conceptual design of this information system and its corresponding IT development. • Continue capacity-building with the regional forest management technical team, installing the Forest Transportation Guide app and providing support to SERFOR in the Loreto and Ucayali regions. For the Madre de Dios region to be effectively engaged, Pro-Bosques will analyze and implement a specific road map.
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• Technical assistance to the Regional Governments of Ucayali and Loreto for implementing the updated formats of the License Holder Operations Book (LO-TH) and the Primary Transformation Centers Operations Book (LO - CTP). • Start the studies on the forest control and oversight gap indicator for the timber value chain. • Actual start of conceptual design of the Forest Promotion and Competitiveness Modules, and the SNIFFS Forest Cadaster Module. • Activate Pro-Bosques technical assistance for strengthening the forest authorities’ capacities for accessing and managing the public budget so that this will contribute directly to and/or create an enabling environment for implementing the MC-SNIFFS. To date, SERFOR and the Ucayali and Loreto regional governments have been requesting extra funds from the Ministry of Economy and Finance (MEF) for this fiscal year and for 2020, but – at the time of this report –the ministry has required additional information justifying the request. In the next quarter, Pro-Bosques will liaise with the MEF’s Public Spending Quality Department, SERFOR and the Ucayali and Loreto regional governments, to provide technical assistance on this management procedure, and access to greater public funding for implementing the MC-SNIFFS. Other MC-SNIFFS modules:
• In Q4, Pro-Bosques will start the conceptualization of both modules. SERFOR will use these conceptual designs (which are expected to be finished in the first quarter of FY 2020), to advance in designing and developing the Promotion and Competitiveness modules, and the forest cadaster.
Consolidation of the community control and oversight networks: • Technical assistance for the proposed CVC strategic plans in Loreto and Ucayali to be approved. • Participatory formulation of two CVC capacity-building plans. • Design of an MFC course for the suppliers of technical assistance to the indigenous communities in Loreto and Ucayali, which will include CVC. • Technical assistance for 15 indigenous communities on establishing their community control and oversight committees, and on getting official recognition from the regional forest authorities. • Promoting dialogue and consensus regarding the sustainability (financial and institutional) of the indigenous CVC initiatives, in the Inter-institutional Working Party on Indigenous Monitoring, which MINAM will install through the National UN-REDD Program.
4.2 OBJECTIVE 2: PRIVATE SECTOR ENGAGEMENT
4.2.1 ACTIVITIES AND ACHIEVEMENTS
A. Forestry Concession Holders At Q3, the forestry concessions in Loreto and Ucayali that comply with the Pro-Bosques selection criteria are:
Company / Concession Concessionaire or Local Forest # Region Area Owner Contract Legal rep. Manager Rosa Elisa Rengifo Rosa Elisa Rengifo de 1 Ucayali 25-PUC/C-J-063-03 30,135 Guiomar Seijas de Souza Souza 25-UCA-PUC/CON- 2 Consorcio Noaya Ucayali 12,452 Teddy Arbe Guiomar Seijas MAD 2018-15
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Company / Concession Concessionaire or Local Forest # Region Area Owner Contract Legal rep. Manager 3 Mirna Noa Ucayali 25-PUC/C-J-054-02 13,114 Mirna Noa Andi Johnny Reátegui Consorcio Forestal 25-UCA-PUC/CON- 4 Ucayali 11,748 Raúl Maldonado Henry Ruiz Maderas Tropicales MAD-2018-08
Luis Sherader Rocío Ugarte 5 Ucayali 25-PUC/C-J-011-03 7,476 Oliver Diaz Romero Navarro
6 Irma Segura Loreto 16-CON/C-J-135-04 20,360 Angel Ramos Jairton Oyarce Servicios Forestales 16-LOR-REQ/C-J -199- 7 Loreto 23,256 Raúl Villacorta Victor Espinoza Payuyo 04 16-LOR-REQ/CON- Loreto 13,557 Industrial Maderera MAD-2017-020 8 Rolando Castro Celso Pezo SAC 16-LOR-REQ/CON- Loreto 18,704 MAD-2017-019 John Kirt Hurtado Loreto 16-CON/C-J-182-04 12,107 John Kirt Hurtado Enrique Becerra 9 Gallo Loreto 16-REQ/C-J-183-04 7,370 Gallo Chávez 16-LOR-REQ/CON- Loreto 13,981 MAD-2017-026 16-LOR-REQ/CON- Tropical Requena Loreto 15,096 10 MAD-2017-027 Celso Pezo Celso Pezo EIRL 16-LOR-REQ/CON- Loreto 7,491 MAD-2017-028 Loreto 16-REQ/C-D-012-14 19,820 TOTAL AREA (ha) 226,668
These forestry concessions will receive direct technical assistance from Pro-Bosques, based on the business competitiveness diagnosis, which began in Q3. Pro-Bosques will define an improved business model based on the evaluation of each company, which will determine its current situation, and a strategic analysis of its wider development context. For companies such as these to get ahead, the gaps that limit their business competitiveness must be narrowed or eliminated. Hence, Pro-Bosques will provide technical assistance focused on various areas, addressing critical aspects of potential impact, and will promote a more affirmative enabling environment for developing sustainable, competitive and legal business development, in an alliance with Loreto, Ucayali and SERFOR forest authorities. (See Annex V.) In Loreto, Pro-Bosques has supported the GERFOR technical team’s training in implementing the concession holder’s operations registry (LOTH), in order to strengthen their capacity to serve Loreto’s forest users (Concesión Forestal Imaza, on the Iquitos-Nauta highway, 28 June).
B. Processing centers At the end of Q3, Pro-Bosques has identified 14 processing centers in Ucayali which it will provide tailored technical assistance and support:
Transformation N° Company General Manager/Owner Association Category Maderera Marañón S.R.L. Henderson Lima Carlos 1 Primary CEMU (Grupo Henderson) Fernando 2 Alpindustrias S.A.C. Saveri Olerzi Roberto Secondary CEMU Industrias de Maderas y Primary and 3 Chacaltana Garcia Jose Luis CRESETMU Afines el Sol S.A.C. secondary
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Transformation N° Company General Manager/Owner Association Category Céspedes Sánchez Gary 4 IMD Solutions S.A.C. Secondary CRESETMU Alan 5 Inversiones N y S E.I.R.L. Grandez Zarate Fernando Primary CEMU 6 Key Rocio Acosta Becerra Key Rocío Acosta Becerra Secondary CRESETMU Percy Gonzalo Colquechagua Percy Gonzalo 7 Secondary CRESETMU Lima Colquechagua Lima Industria Leon de Juda E.I.R.L. Scavino Cárdenas David 8 Secondary CRESETMU | León de Judá E.I.R.L. Mauro 9 Aserradero Arbe S.A.C. Arbe Nilsson Jorge Augusto Primary Not associated Consorcio Maderero S.A.C Primary and 10 Guzmán Chávez Leovigildo CEMU (COMASAC) secondary 11 Industrias Forestales Bj S.A.C Jones Arévalo Maritza Isabel Primary Not associated 12 José Angulo Mathews José Angulo Mathews Secondary CRESETMU Primary and 13 Ucayali Wood Rengifo de Souza Rosa Elisa Not associated secondary Inversiones Valentina & Primary and 14 Hinelda Reátegui Not associated Nathaly S.A.C secondary
Most of these companies are in the industrial segment and belong to the following Ucayali business associations: • CRESETMU (Ucayali Regional Chamber of Secondary Timber Transformation): an organization of businessmen who produce furniture for the regional and national market. • CEMU (Ucayali Timber Exporting Consortium): a group of 9 companies made up of forestry concessionaires, first and secondary transformation companies, and wood veneer and plywood manufacturers and traders, who produce mainly for the export market. In Q3, Pro-Bosques started the process of establishing an MOU with the Ministry of Production’s Instituto Tecnológico de la Producción (ITP). The MOU aims to pool the efforts of the state-run Institute and Pro- Bosques to strengthen the competitiveness of the timber industry in Loreto and Ucayali, liaising with the Maynas CITE Forestal, the Lima CITE Maderas and the Pucallpa CITE Forestal. The impact expected by the end of Pro-Bosques’ intervention is that the forest industry of both regions will have improved its competitiveness and that, as the main technical assistance supplier to the industry, it will be strengthened and can continue supporting future technological innovation in the Peruvian forestry sector. In Q3, Pro-Bosques also provided support for the 1st ExpoForestal event held by GERFOR in Iquitos (May 29-31), which was held as part of the renewed policy of strengthening the forest sector declared by the Loreto regional government. This included a specialized presentation for the Loreto forest industry called “The importance of efficiency in all links of the forest chain to achieve competitiveness” delivered by Víctor Hugo Gutiérrez, of the Pro-Bosques team. At the end of the quarter, Pro-Bosques identified the first three companies interested in the creation of a timber “clearinghouse” to supply timber products of adequate dimensions and quantities to the local market, particularly to those manufacturing companies interested in public tenders for school furniture. The Pro-Bosques team is still analyzing and developing the final concept of this type of legal timber warehouse. In addition, Pro-Bosques has started to promote the dialogue between the business associations and the government, which is expected to increase during the forthcoming quarters, to promote a better enabling environment for competitiveness, sustainability and legality in the value chain.
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C. Markets In Q3, Pro-Bosques set up a multi-stakeholder (public and private) platform in the Ucayali region (Platform for Promoting the Legal Timber Trade), geared toward promoting the supply and demand of timber legally- sourced products. The platform was officially created June 28 in the city of Pucallpa and will be led by the Ucayali regional government (GOREU), with the participation of the business associations CEMU and CRESETMU, the Clúster Forestal, CITE Forestal Pucallpa, SERFOR and Pro-Bosques technical assistance. In this context, Pro-Bosques will promote an Initiative for Public Procurement of School Furniture using legally-sourced timber. To date, progress has been made in identifying the shortfall in school furniture throughout the Ucayali region and in deciding which public instrument is the most appropriate for incorporating this public procurement into the budget, (PEN 2.2 million) in the GOREU PIM3 2019 and the PIA4 2020. In addition, Pro-Bosques has begun to review the technical requirements for manufacturing furniture per educational level - pre-school, primary and secondary. D. Financial mechanisms for the private sector In Q3, Pro-Bosques made progress in the qualitative diagnosis of formal and informal financing in the forest value chain for forestry concessions, primary and secondary transformation centers and indigenous communities. It has also started to analyze the needs and opportunities of financial services, first by identifying potential financial services for the sector which have been reluctant or uninterested in working with this sector due to high-risk. E. Local Forests This unit of Peru’s forest zoning has great potential for social inclusion, as the local forests are directly linked to a variety of small forest producers. However, their institutional management faces constraints, because local governments do not have the institutional capacity nor the experience to manage them. This is the first time in the country’s history that they will take on direct forest management responsibilities, and thus there are concerns about the risk of illegal activities unless these forest units take robust management action. Pro-Bosques, with SERFOR and the Loreto and Ucayali regional forest authorities, have formulated the terms of reference for a feasibility study of local forest models to be promoted in both regions. At the close of the quarter, Pro-Bosques has selected an expert to conduct the study, which will start in Q4.
4.2.2 CHALLENGES ENCOUNTERED The situation of the forest concessionaires is more complicated now than it was two years ago (when the Pro-Bosques designed began): the number of forestry concessions that are active and in force has fallen, and as a result the concessions that are still active are more scattered. Several concessionaires have reported an increase in invasions by third parties who affect the potential forest production of those who have been granted licenses. The regional forest authorities took over recently following the change of the regional government administration in January of 2019. As a result, Pro-Bosques will focus its efforts more on providing technical assistance to the regional forest authorities to strengthen the services they offer to the forest users, in order to help improve an enabling administration throughout the region, articulating with the national level. Pro-Bosques will do this in synergy and complement with the technical assistance provided to the forest concessions in the prioritized landscapes. Most industrial forest companies are working with outdated or obsolete technology and technological innovation is limited, negatively impacting competitiveness. In the field, the worsening economic depression the Amazon forest sector is facing today is evident, and in industry, Pro-Bosques has found an important number of transformation centers completely or partially closed, especially in Loreto. In view
3 Amended institutional budget 4 Start-up institutional budget
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of this, Pro-Bosques has started to establish a specific alliance with the Ministry of Production’s CITE network in Iquitos, Pucallpa and Lima. Through and MOU, the alliance will join institutional forces while Pro-Bosques is active, which will strengthen this important technical assistance provider for technological innovation for the forest industry. Given the low level of governance and limited competitiveness in the Ucayali and Loreto forest sector, Pro-Bosques has taken a number of prevention measures, including: a) a rigorous selection of companies that participate in direct Pro-Bosques technical assistance; and b) the promotion of better business performance and best practice, which fosters legality, in an alliance with the government, through technical assistance for forest users while implementing the MC–SNIFFS and at the same time encouraging public procurement of legal timber. The forest sector CITEs have been working in the regions, but they are constrained in their relations with companies, mainly because of the delay and relevance of the technical assistance this major stakeholder provides. These CITEs also have technical and budgetary constraints, which affect the consolidation of their operations infrastructure, the development of their technical assistance, and their technological innovation. To address this, Pro-Bosques will encourage the technical assistance programs of the forest CITE Pucallpa (Ucayali) and Iquitos (Loreto) to strengthen their relevance and timing, by improving the capacities of their human capital and specialized assistance for designing and applying the technical assistance management instruments. This will include advising on the design of the lay-out of their operations infrastructure in Iquitos; technical assistance for improving their outreach services and advice on formulating the proposals for equipment and management that the CITEs (Iquitos, Pucallpa and Lima) submit to the Instituto Tecnológico de la Producción (ITP). In addition, there is little available and up-to-date information about the productive supply and industrial capacity; and there are yet no cost-effective mechanisms for demonstrating that the timber is legally- sourced. These factors together negatively affect the access of Peruvian timber production to better markets. Hence, until the MC-SNIFFS is fully implemented, it is critical to promote dialogue and consensus between the GOP, the companies, and support institutions, to encourage internal market initiatives for purchasing legally-sourced timber that could catalyze current market opportunities for the producers and transformers who are committed to legal timber production. As a complement to this, Pro-Bosques has started to conceptualize the format of the “timber clearinghouses”, as a potential alternative for strengthening early support for legal timber supply and demand on the national market. Finally, Pro-Bosques has begun to design a road map to address the reticence and lack of interest on the part of the financial entities for providing specific financial products for the forest sector. Pro-Bosques will diagnose and analyze the gaps in the financing of participating forest companies to determine effective financial strategies and opportunities in the short term.
4.2.3 NEXT QUARTER Forest concessions: In the Q4, Pro-Bosques will complete the diagnostic of forest concessions competitiveness that is currently underway. Pro-Bosques will tailor specific technical assistance activities for the forest concessions, so that these can move towards a better business model in Ucayali and Loreto. These activities will include Pro-Bosques’ providing support to the companies, in applying the Concession- holders Operations Registry, as part of the implementation of MC–SNIFFS, and will promote a better administrative framework in coordination with the forest authorities. Transformation centers: In the next quarter, Pro-Bosques will begin the following activities: • The specific diagnostics for each participating company. • The formulation of the business cases for CEMU and CRESETMU.
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• Provision of expert advice for the Ucayali y Loreto CITEs in defining their machinery and tools requirements for strengthening their technical assistance infrastructure, corresponding to the situation detected in the timber industry. Markets: Next quarter, Pro-Bosques will move ahead with the following activities: • Implementing a strategic market analysis for Amazon timber production. • Continuing to facilitate and promote the work between public and private stakeholders on the Platform for Promoting the Legal Timber Trade in Ucayali. This will include jointly formulating a road map and will monitor the agreements, along the following lines: a. The public procurement initiative for acquiring school furniture; b. Approval of public policy at regional scale for buying legally-sourced timber from the Ucayali Amazon forest; c. Circulating information about best practices in the forest and industry of the Ucayali region; d. Promoting the creation and operation of the Pucallpa Eco-Industrial Park. • Providing technical assistance to the Social Development Management Unit of the Ucayali Regional Government for formulating the IOARR5 project for purchasing school furniture for S/2.2 million for 2019-2020, and this budget will be included in the PIA (Expanded Institutional Budget) of the GOREU, and in formulating of the project dossier for manufacturing of school furniture. • Providing technical advice for the regional stakeholders (public and private) for establishing the Pucallpa Eco-Industrial Park: i) promoting a joint draft work plan of the GOREU and the Productive Diversification Department of PRODUCE; ii) Encouraging the reactivation of the Inter-Institutional Park Committee, composed of public and private entities linked to the forest and manufacturing sectors and, iii) technical assistance for the GOREU and PRODUCE, with advice on conceptualizing key studies that they will conduct, including the Eco-park management model design. Financial mechanisms for the private sector: In Q4, Pro-Bosques will issue the first diagnostic documenting the finance situation within the Amazon forest sector. It will develop and start to implement a road map to promote better financing for the forest sector, including an analysis of the relevance of promoting a liaison unit on forest financing between public sector decision-makers and other international cooperation projects. Additionally, Pro-Bosques will provide support for the Ucayali Platform for the Promotion of Legally-sourced Timber Trade to promote better access to more adequate financing in the context of the Pro-Bosques Activity.
4.3 OBJECTIVE 3: INDIGENOUS COMMUNITY RIGHTS AND RESOURCES
4.3.1 ACTIVITIES AND ACHIEVEMENTS During Q3, Pro-Bosques conducted a baseline study of the Indigenous Empowerment Index in the Amazonian Forest Sector (IEIFA) in the 18 indigenous communities that participate in Pro-Bosques. As shown in the table below, the total population of the indigenous communities affiliated to the project is 2,369 people: 772 in Loreto and 1,597 in Ucayali. The population is larger in Ucayali, as some communities have a population of more than 500 people (See Annex VI). In the 18 indigenous communities participating in Pro-Bosques there are five indigenous ethnic groups, but the predominant ones are the Kapanawa (Loreto) and the Asháninka and Shipibo (Ucayali). The baseline study and revised IEIFA is attached in Annex VII.
5 Investments in optimization, marginal expansion, replacement and rehabilitation, within public management, according to new public investment system of Perú (Invierte.pe)
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# Community River Basin Houses Pop. Ethnic group Area (hectares) LORETO REGION 1 Lobo Santa Rocino Blanco 29 92 Quechua-Wampis 39,075 2 Nuevo Capanahua Blanco 23 53 Capanahua 25,079 3 España Blanco 8 26 Capanahua 7,972 4 Curinga Blanco 15 100 Capanahua 16,362 5 Nueva Esperanza Blanco 23 91 Capanahua 9,893 6 Nuestra Señora Fátima Tapiche 31 98 Capanahua 6,325 7 Bellavista Tapiche 16 57 Capanahua 59,852 8 Monte Alegre Tapiche 5 21 Capanahua 6,020 9 Barrio Bajo Santa Elena Tapiche 30 104 Capanahua 11,221 10 Wicungo Tapiche 22 130 Capanahua 35,491 UCAYALI REGION 11 Cametzari Quipatzi Tamaya 28 112 Asháninka 43,469 12 Nueva Amazonia de Tomajao Tamaya 20 78 Asháninka 15,140 13 Nueva California de Shatanya Tamaya 5 35 Asháninka 22,632 14 San Miguel de Chambra Tamaya 26 107 Asháninka 2,862 15 Junin Pablo Zona Imiría 102 565 Shipibo 3,550 16 Caimito Zona Imiría 101 522 Shipibo 6,796 17 Nuevo Loreto Zona Imiría 25 111 Shipibo 5,785 18 Buenos Aires Zona Imiría 16 67 Shipibo 6,191
TOTAL 525 2,369 323,716
4.3.2 CHALLENGES ENCOUNTERED For Pro-Bosques, starting activities in the indigenous communities has required considerable effort in coordination and organization, both because getting to remote Amazon indigenous communities always involves considerable logistics, and because care must be taken for Pro-Bosques to be inserted in a way that is socially acceptable. Pro-Bosques has identified optimal routes and planned field trips in detail, with the result that it has been able to organize work plans with the indigenous communities, which have already begun implementation, with a clear roadmap for formulating and in some cases updating their life plans and the next participatory planning of their community forest management initiatives.
4.3.3 NEXT QUARTER • Pro-Bosques will start the formulation/update of the Life Plans of the 18 indigenous communities. • Pro-Bosques will begin the evaluation of the forest potential of the Lobo Santa Rocino, Nuevo Capanahua-Río Blanco, Nuestra Señora de Fátima, Bellavista and Monte Alegre indigenous communities in the Loreto Region. • Pro-Bosques will begin the evaluation of forest potential of the indigenous communities in the Tamaya landscape in Ucayali using spatial analysis and data extrapolation from nearby forests.
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• Pro-Bosques will start the participatory planning of the community forest management initiatives of the indigenous communities participating in Pro-Bosques while implementing their Life Plans. 5.0 CROSS-CUTTING THEMES
5.1 COMMUNICATIONS This quarter Pro-Bosques has held communications activities that are complementary to and have synergy with Pro-Bosque’s technical work: • Communications training in workshop in Pucallpa (05/04) • Sending and approving the Dissemination and Communication Strategy and the Implementation Plan for FY 1 (04/30) • First GESI workshop, together with the GESI specialist (05/24) • Supporting the media implementation and announcing of the First Forest Fair in Iquitos (05/28, 29 and 30) • Designing the Info graphics of the Socio-economic Value of Timber for USAID VIP Visit (06/12) and International Day of the Tropical Forests (06/26) • Media coverage of the main events promoted and facilitated by Pro-Bosques, i.e.: USAID VIP visit (12/06), Tripartite Workshop for Implementing the MC-SNIFFS (06/13 and 14 in Loreto, 06/27 and 28 in Ucayali) and training event on Operations Register at the regional level in Loreto and Ucayali (June). Perhaps the greatest challenge at the beginning of this quarter was the dissemination and positioning of Pro-Bosque’s activities, specifically access to communicational platforms for publicizing the activities that Pro-Bosques supports, in addition to the channels provided by USAID, acting fast to ensure they were newsworthy. Pro-Bosques met the challenge by strengthening its relationship with SERFOR's communications department, which today also makes its platforms available to Pro-Bosques for greater advocacy and bringing to the forefront Pro-Bosques' objectives for strengthening the forestry sector. Another challenge in this quarter is the daily communication with the regional offices. Pro-Bosques’ structure does not include a fixed post in Loreto or Ucayali, but there is a great deal of demand, especially now that there are more procedures associated with the implementation of MC-SNIFFS. Pro-Bosques has therefore started a service to meet in greater depth the demand for technical assistance in communications in Loreto and Ucayali, always liaising closely with the central unit.
5.2 GENDER AND SOCIAL INCLUSION During this quarter, Pro-Bosques began its gender and social inclusion diagnostic by gathering demographic information (gender, age, population over 60, population with disabilities) and women’s participation in indigenous communities. This data collection took place while Pro-Bosques was gathering information for the IEIFA. The IEIFA has also identified the social exclusion situation of the 18 indigenous communities participating in Pro-Bosques. The study collected data on the benefits that the communities receive from the commercial exploitation of resources that takes place in their territory; specific information has been collected on women’s participation in the management of community development and in the commercial exploitation of forest resources. This information will serve as input to specify Pro-Bosques' intervention in the formulation/updating of Life Plans and the community forest management initiatives of the 18 indigenous communities participating in Pro-Bosques.
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Pro-Bosques has started to make the GESI approach cross-cutting by designing protocols and guidelines to be applied to all the components. These are now being internally validated: • The GESI Code of Conduct in the field, applicable to all Pro-Bosques staff and independent specialists. • Criteria for monitoring the GESI approach in all Pro-Bosques activities. • Guidelines for applying the GESI approach in life plans and other important documents. In Q4, Pro-Bosques will identify specific opportunities and mechanisms for promoting GESI of Vulnerable Groups in the forest sectors of the Ucayali and Loreto regions. To do this, Pro-Bosques will conduct two studies in both regions, with the assistance of independent specialists, in close interaction with the Pro- Bosques GESI specialist and the regional teams.
5.3 PARTNERSHIPS At the end of this quarter, Pro-Bosques has established the following alliances: a. Pro-Bosques – SERFOR. This alliance will work on the following: • Implementing the el MC–SNIFFS; • Strengthening the SNIFFS (designing two SNIFFS modules: a) Forest cadaster; b) Forest Promotion and Competitiveness). • Promoting greater development of and a better enabling environment for Community Control and Oversight (CVC); Community Forest Management and Sustainable Forest Management (MFS) in forest concessions and local forests. • Promoting the competitiveness of the forest sector in the Peruvian Amazon. • Strengthening capacities for greater access and better management of public financing for forest competencies, stressing issues directly associated with the MC-SNIFFS. • Coordinating and complementing the institutional communication strategies b. Pro-Bosques – Loreto Regional Government, this Alliance will work on the following: • Implementing the MC–SNIFFS; • Consolidating the Community Control and Oversight networks (CVC) in the Requena landscape. • Strengthening the community forest management and social inclusion of the Requena landscape indigenous networks. • Strengthening Sustainable Forest Management (MFS) in the forest concessions and local forest in the Requena landscape and other areas in the Loreto region, as necessary. • Promoting the growth of forest sector competitiveness of the forest sector (forest and industry) of the Loreto region. • Articulating with SERFOR, promoting a better enabling framework for community control and oversight (CVC); community forest management and sustainable forest management (MFS) and local forests in the Loreto region. • Strengthening the GERFOR capacities for greater access to and better management of public financing for exercising their forest competencies. c. Pro-Bosques – Ucayali Regional Government. The Alliance will work on the following: • Implementing the MC–SNIFFS. • Consolidating the community control and oversight (CVC) in the Tamaya landscape. • Strengthening community forest management and social inclusion of the indigenous communities of the Tamaya landscape.
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• Strengthening sustainable forest management (MFS) in the forest concessions and local forest of the landscape Tamaya and other areas in the Ucayali region, as necessary. • Promoting the growth of the competitiveness of the forest sector (forest and industry) of the Ucayali region. • Articulating with SERFOR, promoting a better enabling environment for community control and oversight (CVC); community forest management and sustainable forest management (MFS) of the forest concessions and local forests of the Ucayali region. • Strengthening the capacities of the Ucayali regional forest authority for greater access and better management of public finance for exercising its forest competencies. This quarter, Pro-Bosques established alliances with the following entities: • The Inter-ethnic Association for Developing the Peruvian Amazon (AIDESEP) and the Peruvian Amazon Nations Confederation (CONAP), to strengthen the institutional and financial sustainability of the indigenous communities’ and their representative organizations’ CVC activities, to promote community forest management and social inclusion in the indigenous communities in the forest sector. • With the Instituto Tecnológico de la Producción (ITP), which represents the Centers of Productive Innovation and Technological Transfer that work on the forest processes and timber transformation (CITE Madera, in Lima; CITE forest, in Pucallpa and CITE forest Maynas, in Iquitos). They will work on the following: a) Strengthening timber value chain stakeholders in primary and secondary processing. b) Promoting technological innovation to solve problems identified in the forest industry. c) Giving technical assistance, training and certification of labor skills aimed at improving the timber value chain. d) Promoting technology transfer processes to stakeholders in the timber value chain. e) Helping improve the enabling framework for Amazon timber to have a larger share of the national and international public and private markets. f) Promoting timber products on the market. g) Developing and standardizing timber products. • Working with the Regional Government of Madre de Dios, whose Forestry and Wildlife Department (DFFS) has expressed interest in the implementing the MC-SNIFFS. SERFOR and Pro- Bosques have coordinated services to this region for the next quarter. • Working with the Center for International Forestry Research (CIFOR), exploring synergies in applied research to generate evidence as inputs to designing policies for the forestry sector in the Peruvian Amazon.
5.4 INSTITUTIONAL ARRANGEMENTS & COORDINATION Pro-Bosques is making progress with its work with SERFOR and the regional governments and plans to define mainly in the next two quarters the type of alliance it will establish with SERFOR and the regional governments for implementing MC-SNIFFS. From the analysis carried out to date, the most likely instrument would be the Specific Agreement between the two forestry authorities, which defines specific deadlines, commitments and contributions for each public entity. However, the regional governments of Ucayali and Loreto have been coordinating the implementation of MC-SNIFFS and actions in the field, facilitated by Pro-Bosques, within the framework of the governance structure of public forest management governed by Peruvian law.
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Pro-Bosques is coordinating with USAID to analyze the relevance of establishing specific technical assistance agreements with each participating company, in order to promote better business performance and best business practices in this sector. This has not been a constraint for work with participating companies, focused on a set of eligibility criteria. However, some of them have expressed interest in formalizing the technical assistance relationship with Pro-Bosques. Pro-Bosques has established a specific working alliance with the USFS/USAID FOREST Activity for the development of Peru's Legal Timber Supply Baseline and, during the reporting period, Pro-Bosques has started field data collection for describing timber supply chains in nine Amazon regions (Loreto, Ucayali, Madre de Dios, Amazonas, San Martin, Junín, Huánuco, Pasco and Cusco). FOREST has been developing the methodology to estimate the index of illegal timber in Peru, in articulation with the Prime Minister’s Office (PCM), the advice of FAO and the participation of a Consultative Group made up of key stakeholders and specialists from the Peruvian forestry sector.
5.5 SCALING & SUSTAINABILITY In Q3, Pro-Bosques provided technical assistance to SERFOR to formulation the terms of reference for designing the gap indicator for forest control and oversight of the timber value chain. The study is key for facilitating management and public investment in the MC-SNIFFS in the next few years, considering that the new National System of Multiannual Planning and Management of Investment (INVIERTE.PE) is in force. Pro-Bosques intends also to support the updating of the Budget Program 130 Design ("Competitiveness and sustainable use of forest and wildlife resources"), in which the MC-SNIFFS is contextualized as a strategic tool to strengthen the National System of Forest and Wildlife Control and Oversight (SNCVFFS). This process is currently supported by other SERFOR cooperation projects. Pro-Bosques has expressed interest in joining this process, since it is very important that this budgetary program be updated and that it clearly includes MC-SNIFFS; this will help facilitate the access of forest authorities to greater financing for fully implementing the forest monitoring and control tool. In addition, Pro-Bosques has started providing direct technical assistance for the GERFOR of the Loreto regional government, in order to strengthen the argument of the technical proposal it has submitted to the MEF as a request for additional public funding for forest control and zoning.
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5.6 SHORT-TERM TECHNICAL ASSISTANCE/CONSULTANCIES UPDATE # Activity Objective Expected outcome Consultancies 1 Commercial Forestry Identify the stakeholders with commercial forest activities in Commercial Forestry Stakeholder Analysis and Mapping report detailing Stakeholder Analysis in the the Requena-Contamana landscape and analyze their the interrelations of the different stakeholders in this field, including Requena -Contamana interrelations as an input for developing potential allies for active concessions and their current management situation viz-a-viz the Landscape, Loreto region implementing the Activity in this area. GOP and other stakeholders in the regional forest value chain. 2 MC-SNIFFS IT Systems Analysis Support SERFOR's Forest and Wildlife Management Control Continuous improvement in the management of IT development for Dept. in analyzing the systems for the MC-SNIFFS IT the MC-SNIFFS component 3 Establishing the Forest Develop an index to measure, evaluate and analyze the Forest sector competitiveness baseline of 10 forest concessions, 8 Competitiveness Index Baseline competitiveness of timber companies in the Peruvian Amazon timber transformation centers and 10 technical assistance providers of in Loreto and Ucayali. and apply it to determine the Forest Sector Competitiveness the forest value chain in Ucayali and Loreto, from 2019 to 2023. for Loreto and Ucayali. 4 Support for implementing the Field support to implement the Pro-Bosques Communication Communication and Dissemination Pro-Bosques strategy implemented Pro-Bosques communication Strategy in the Loreto and Ucayali regions, including provision in the regions of Loreto and Ucayali, renewing the perception of the strategy in the Loreto and of advice to the regional staff on brand use, visibility and forest sector by national and international interest groups, improving Ucayali. dissemination, event planning, learning and knowledge its competitiveness, and supporting this by favorably positioning the management according to Pro-Bosques guidelines and forest value chain and the potential of the Peruvian Amazon. standards. Subcontracts 1 Evaluation of progress in IT Evaluation of the IT systems developed for the MC-SNIFFS to Analysis of progress in IT developed for MC-SNIFFS and identification development for MC-SNIFFS. determine the feasibility of integrating them into a unified, of an appropriate IT management strategy for implementing, deploying secure and sustainable system in all its aspects. and maintaining the IT components of the MC-SNIFFS in the Peruvian Amazon. 2 Supervision of the evaluation of Supervise the application of protocols and quality standards Conclusions and findings of the evaluation of MC-SNIFFS related IT progress in IT development for for evaluating the progress in IT development for MC-SNIFFS systems validated from an independent technical perspective. the MC-SNIFFS) implementation. 3 Private Sector Landscape Analyze the private sector stakeholders linked to timber Private sector engagement strategy for the implementation of MC- Analysis in the Peruvian forestry in the Peruvian Amazon, with a broad, strategic and SNIFFS, while strengthening the competitiveness and sustainability of Amazon systemic vision to identify and contextualize the opportunities the Amazon forest value chain. and mechanisms for Pro-Bosques private sector. 4 Baseline of Legal Timber Supply Describe the supply chains of legal timber produced in the Baseline of Legal Timber Supply in Peru, including technical, social and in Peru Peruvian Amazon that will form the baseline for USAID Pro- commercial aspects. Bosques activities. 5 Institutional capacity baseline Determine the current status of the institutional capacity of Institutional capacities baseline for full implementation of an information study implementing the MC- SERFOR and the regional governments of Loreto, Madre de system covering the full scope of MC-SNIFFS in Loreto, Madre de Dios, SNIFFS in the Peruvian Dios, Ucayali, Junín, Pasco, Huánuco, Amazonas, San Martín, Ucayali, Junín, Pasco, Huánuco, Amazonas, San Martin, Cusco and Puno. Amazon. Cusco and Puno for fully implementing an information system that covers the full scope of MC-SNIFFS.
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6.0 NEXT QUARTER’S DELIVERABLES, APPROVALS, ACTIVITIES & EVENTS
6.1 DELIVERABLES FOR Q4 FY19 (JULY–SEPTEMBER 2019) USAID Pro-Bosques will submit the following deliverables during the following quarter. Table 6.1: Next Quarter’s Deliverables Due Carries Activity Deliverable Date Fee Operational and Management Tasks Annual Work Plan 08/16/19 Annual Work Plan Yes Annual MEL Plan Report 08/16/19 Annual MEL Plan Report Yes Objective 1 Baseline report of the Peruvian legal timber supply, including technical, commercial, and 09/25/19 Legal Timber Baseline Report Yes social aspects. Strategic planning for CVC in Loreto and Ucayali, in coordination with national and Capacity Building Plan to consolidate regional forest authorities, and representative 09/25/19 “Community Control and Oversight” Yes indigenous organizations. networks and initiatives in targeted regions Objective 2 Private sector landscape analysis of the forest 09/25/19 Private Sector Landscape Analysis Yes sector in the Peruvian Amazon. Support the design of Pro-Bosques Private Private Sector Engagement Strategy for Sector Engagement Strategy. 09/25/19 timber and non-timber forestry products Yes for the short, medium, and long-term. Objective 3 N/A No deliverables pending for Q4
6.2 UPCOMING INTERNATIONAL TRAVEL (STAFF AND CONSULTANTS) USAID Pro-Bosques anticipates the following international travel (requiring USAID approval) during the next quarter. Table 6.2: Upcoming International Travel Traveler Name Purpose of the Trip Origin & Destination Dates of Travel USAID Pro-Bosques Activity Staff N/A Tetra Tech Home Office Staff and/or Consultants Jason Girard Support finalization of Year 2 work planning, Burlington, VT USA – Aug. 13-23 completion of technical deliverables, and Lima and Iquitos, Peru participate in ExpoAmazonica Korinne Nevins Complete various administrative, operational, Burlington, VT USA – Aug. 19-27 and financial tasks related to the completion of Lima and Iquitos, Peru Year 1 performance and planning for Year 2 and conduct compliance check in Lima office.
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6.3 LIST OF UPCOMING ACTIVITIES AND EVENTS QR4 2019 USAID Pro-Bosques anticipates the following upcoming activities and events, some of which may require USAID involvement. Table 5.3: Upcoming Activities and Events Event Title Event Type Dates USAID Involvement (Yes or No)
Presentation on the Advances and Challenges of Presentation / 25/07/2019 Y SERFOR on its 5th Year of Creation Anniversary
ExpoAmazónica (See Agenda in Annex VIII) Fair / Trade event 15-18/08/2019 N
Press Tour: The Timber Value Chain Press Tour TBD (September) Y
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6.4 CALENDAR OF PLANNED OUTREACH AND COMMUNICATION EVENTS Month Communications Strategy Dimension Activity Audience Expected Result Objective July Aug Sept
The Pro-Bosques team is aligned on key Branding, Pro-Bosques communications messages and works to secure a Communications and Team sustainable, profitable, and inclusive forest sector in Outreach Training Peru, under Amazonia Verde’s overarching purpose. Regular updates on how Pro-Bosques works to Primary and strengthen forest governance, increase forest value USAID Pro-Bosques secondary chain competitiveness and strengthen IICC rights and Newsletter stakeholders resources, with a cross-cutting GESI approach in its Informing and raising prioritized landscape areas. 1: Governance and awareness on forest sector Sustainability governance, its components, Topics that touch upon complex sector realities such Need: Provide stakeholders, challenges and as the route of timber, the MC-SNIFFS, Community Clarity opportunities to advance Control and Oversight and Traceability in the Peruvian Radio Spots script prosperous forests in Peru. General Public Amazon, among others, are starting to be better preparation understood and disseminated through a variety of communication platforms; and are being increasingly addressed by the GoP. Press releases on Pro-Bosques is perceived as an active contributor local, regional and towards strengthening Peru's forest sector, by timely Media international media communicating alliances, milestones and important General Public traditional and digital events related to the sector and or Activity's platforms implementation.
Pro-Bosques permanently showcases the Peruvian Social Media Posts / Revamping the forest sector General Public Amazon's economic, environmental, social and cultural Updates perception amongst domestic potential in an enticing and entertaining way. and international stakeholders 2: Private Sector to improve competitiveness, Participation foster new markets and Need: Improve investments, and favorably Exporters Perception position the forest value chain Buyers Pro-Bosques is positioned as a knowledgeable and Participation at Concessionaries trustworthy stakeholder in Peru's forest sector that and the Peruvian Amazon’s yet untapped potential. ExpoAmazónica Experts can help foster new markets for timber and non-timber Public Sector forest products. authorities
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Communications Month Strategy Dimension Activity Audience Expected Result Objective July Aug Sept
SERFOR SERFOR is increasingly recognized as the country's SERFOR's Private Sector national forest and wildlife authority working for a Presentation on GoP sustainable, inclusive and competitive forest sector. Advances and IIOO Pro-Bosques technical assistance to this activity will Challenges on its 5th International also contribute the strengthening of forest governance, year of creation Cooperation increase forest value chain competitiveness. SERFOR Photo Exhibit (within Private Sector Display of forest activities, livelihoods and potential SERFOR's GoP help to raise awareness on topics related to the Presentation for its IIOO Activity and to the country's development. Anniversary) International Improving awareness on Cooperation indigenous communities and 3: Strengthening The challenges, learning opportunities and success their livelihoods, the need to Indigenous US Congress stories of Pro-Bosques' implementation are showcased bridge gender and social Communities' Rights VIP / USAID Tours Representatives and serve as benchmarks that bring the Amazon closer inclusion gaps in Peru’s and Resources USAID VIP Staff to specific stakeholders, serve to inspire, and help Amazonian forests, and the Need: Raise better design similar interventions. possibilities Community Awareness Forest Management provides Success Stories to this end. Increased consciousness and interest about the Ad spots for social Amazon and the stakeholders Pro-Bosques works with media (Meet the General Public to advance prosperous forests, and how we are doing Heroines and Heroes so. of the Peruvian Amazon Campaign)
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PHOTO CREDIT: OSCAR PACUSSICH, OMAR LUCAS, OMAR LUCAS
U.S. Agency for International Development 1300 Pennsylvania Avenue, NW Washington, DC 20523 USAID PRO-BOSQUES: QUARTERLY PERFORMANCETel: (202) & FINANCIAL 712-0000 REPORT A- 29 Fax: (202) 216-3524 www.usaid.gov