PANAMA CANAL AUTHORITY SUSTAINABLE FOREST COVER ESTABLISHMENT PROJECT Project Design Document for Climate, Community & Biodiversity Standards (CCBS) Second Edition Prepared by MGM Innova September, 2010 Panama Canal Authority Sustainable Forest Cover Establishment Project Versión Elaboró Revisó Aprobó Nombre Jorge Ramírez GautamDutt 1. Primer informe Fecha Julio 16 de 2010 Julio 19 de 2010 Nombre Jorge Ramírez Gautam Dutt 2. Segundo informe Fecha Sept. 2010 Sept. 2010 Nombre Jorge Ramírez Alejandro Rueda Gautam Dutt 3. Tercer informe Fecha Oct. 2010 Oct. 2010 Nov. 2010 Nov. 2010 2 Carrera 43A#1-50. San Fernando Plaza – Torre 4, oficina 315. Tel: +57.4.3260584 www.mgminnova.com Panama Canal Authority Sustainable Forest Cover Establishment Project PROJECT OVERVIEW Location of the project Country: Panama Nearest City: Panama City. Center of the Project Activities: Panama Canal Authority. Geographic coordinates 8°58’53”N- 79°34’37’’W. Implementing organization The Panama Canal Authority (ACP according to its initials in Spanish) is the entity of the Government of Panama in charge of the operation, administration, management, preservation, maintenance, and modernization of the Panama Canal, as well as its activities and related services, pursuant to legal and constitutional regulations in force, so that the Canal may operate in a safe, continuous, efficient, and profitable manner. Also, the project has the support of other institutions which have jurisdiction over the project site, included ANAM (Autoridad Nacional del Ambiente – Panama national Environmental Authority), MIDA (Ministerio de Desarrollo Agropecuario de Panamá – Ministry of Agricultural Development of Panama) and BDA (Banco de Desarrollo Agropecuario – Agricultural Development Bank). Project background Completion of the Panama Canal in 1914 led to recognition of the importance of the Panama Canal Watershed (PCW) that supports the millions of gallons of water required for each ship to pass through the Canal. In addition, the PCW is widely acclaimed for its ecological importance due to it sits in the center of one of the world’s most biologically diverse areas (Myers et al. 2000 and Condit et al. 2001). Today the watershed is home to many of the people living in Panama, for it borders the cities of Colón and Panama City. The watershed supports suburban life as well as agriculture, ranching, and forestry. These are the main reasons why ACP is fully committed with this PCW resources conservation program. 3 Carrera 43A#1-50. San Fernando Plaza – Torre 4, oficina 315. Tel: +57.4.3260584 www.mgminnova.com Panama Canal Authority Sustainable Forest Cover Establishment Project At the end of 1999, the operation of the Panama Canal was turned over to Panama. Since then the ACP is responsible of the conservation of hydric resources in the watershed, which it is related with land-use changes1. Some of the watershed is undergoing rapid changes in land use, for instance, forest destruction. There is concern about the compatibility of urban and economic development with hydrological needs and conservation of the watershed (Condit et al. 2001). Human activities like deforestation, land degradation and erosion in the PCW are affecting the future ecological resources, and thus the carbon storage potential. There are several causes that have led forest destruction in the PCW, such as forests clearance for “cash” crops (for example, bananas and coffee), logging operations, cattle ranching and subsistence farming. It is not really surprising that when the international prices for cash crops go up, we also observe an accelerated forest destruction as more people are trying to take advantage of such price increases (CREA 2005). To reverse the negative trends, the ACP has initiated different conservation projects within the PCW that including support to establish forestry plantations with native and exotic species, and the establishment of agroforestry and silvo-pastoral farms. The ACP hopes that the implementation of the proposed project would help recover the land cover on approximately 10,000 hectares of degraded areas and mitigate water resource problems in the PCW in terms of quantity and quality of the water. The project The ACP, with its own funds, is implementing the project PIEA (Programa de Incentivos Económicos Ambientales, Environmental Economic Incentives Program) focused on promoting forest restoration, forest and biodiversity conservation, and alternative livelihood through 1Political Constitution of Panama, Art. 316: Se crea una persona jurídica autónoma de Derecho Público, que se denominará Autoridad del Canal de Panamá, a la que corresponderá privativamente la administración, funcionamiento, conservación, mantenimiento y modernización del Canal de Panamá y sus actividades conexas, con arreglo a las normas constitucionales y legales vigentes, a fin que funcione de manera segura, continua, eficiente y rentable. Tendrá patrimonio propio y derecho de administrarlo. A la Autoridad del Canal de Panamá corresponde la responsabilidad por la administración, mantenimiento, uso y conservación de los recursos hídricos de la cuenca hidrográfica del Canal de Panamá, constituidos por el agua de los lagos y sus corrientes tributarias, en coordinación con los organismos estatales que la Ley determine. Los planes de construcción, uso de las aguas, utilización, expansión, desarrollo de los puertos y de cualquiera otra obra o construcción en las riberas del Canal de Panamá, requerirán la aprobación previa de la Autoridad del Canal de Panamá. los lagos y sus corrientes tributarias, en coordinación con los organismos estatales que la Ley determine. Los planes de construcción, uso de las aguas, utilización, expansión, desarrollo de los puertos y de cualquiera otra obra o construcción en las riberas del Canal de Panamá, requerirán la aprobación previa de la Autoridad del Canal de Panamá. 4 Carrera 43A#1-50. San Fernando Plaza – Torre 4, oficina 315. Tel: +57.4.3260584 www.mgminnova.com Panama Canal Authority Sustainable Forest Cover Establishment Project reforestation, as well as silvo-pastoral and agro-forestry systems. The project will cover approximately 10,000 hectares of degraded lands (formerly pasture grassland with low carrying capacity). The forest cover establishment project has been implemented annually since 2007 and it is expected continue until 2013. So far, 3,057 ha of reforestation projects, Agroforestry and Silvo-pastorial systems have been established in the project area. Project Activities The activities and targets under the project are reforestation with commercial and native species (3,445 ha), and the establishment of agroforestry systems (4,147 ha) and silvo-pastoral systems (2,408 ha); all components cover the whole range of operations from nursery establishment and seedling production to planting and maintaining the seedlings. It is expected that all project activities improve ecosystems services and provide an income source alternative to incomes from unsustainable use of forest patches. 5 Carrera 43A#1-50. San Fernando Plaza – Torre 4, oficina 315. Tel: +57.4.3260584 www.mgminnova.com Panama Canal Authority Sustainable Forest Cover Establishment Project ACRONYMS ACP Panama Canal Authority (ACP according to its initials in Spanish) CCBS Climate, Community and Biodiversity Standards PCW Panama Canal Watershed PIEA Environmental Economic Incentives Program CO2 Carbon dioxide GEI Greenhouse gases 6 Carrera 43A#1-50. San Fernando Plaza – Torre 4, oficina 315. Tel: +57.4.3260584 www.mgminnova.com Panama Canal Authority Sustainable Forest Cover Establishment Project TABLE OF CONTENT General Section ................................................................................................................... 14 G1. Original Conditions in the Project Area .......................................................................... 14 G1.1. Project Area Location and Physical Parameters.............................................................. 14 G1.2. Vegetation within the Project Area ................................................................................. 29 G1.3. Boundaries of the Project Area and the Project Zone .................................................... 33 G1.4. Carbon Stocks within the Project Area ........................................................................... 36 G1.5. Communities Located in the Project Zone ...................................................................... 38 G1.6. Current Land Use and Land Tenure in the Project Zone ................................................. 43 G1.7. Current Biodiversity within the Project Zone .................................................................. 44 G1.8. High Conservation Values within the Project Zone ......................................................... 50 G2. Baseline Projections ...................................................................................................... 56 G2.1. Baseline Land Use ............................................................................................................ 56 G2.2. Additionality .................................................................................................................... 61 G2.3. Carbon Stock Changes ..................................................................................................... 61 G2.4. Baseline Communities ..................................................................................................... 62 G2.5. Baseline Biodiversity ......................................................................................................