PARAGUAY BIODIVERSITY CONSERVATION AND SUSTAINABLE USE IN MBARACAYU (PARAGUAY) MEDIUM-SIZE PROJECT BRIEF GM-PO-66225

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) PARAGUAY BIODIVERSITY CONSERVATION AND SUSTAINABLE USE IN MBARACAYU (PARAGUAY) MEDIUM-SIZE PROJECT BRIEF GM-PO FUNDACION MOISES BERTONI (PARAGUAY) March 26, 2002 Report Number: I

2 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 2 TABLE OF CONTENTS List of acronyms 03 Project Summary 04 Project Description 12 Project Rationale and Objectives 12 Current situation 13 Expected Project Outcomes 16 Activities and Financial Inputs 17 Sustainability Analysis and Risk Assessment 23 Stakeholder Involvement and Social Assessment 24 Incremental Cost Assessment 26 Project Implementation Arrangements 30 Public Involvement Plan 31 Monitoring and Evaluation Plan 33 Project Checklist 34 Attachments 34 Annexes 52

3 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 3 LIST OF ACRONYMS ARC BAI CAR] CIDA DEAG EER FFMR FMB FGEF GEF IBA IBR IDEA ILDES INDI IUCN MAG MEC MOPC MOU MSP PA PIRC PRA RNBM SEAM SI SINASIP SSERNMA STP STRI TNC UNA USAID USFS WWF Alberta Research Council (Bosque Atlantico Interio) Interior Atlantic Forest (Cuenca Alta del Rio Jejui) Upper Jejui River Watershed Canadian International Development Agency (DirecciOn de Extension Agricola) Agricultural Extension Directorate Rapid Ecological Evaluation Fiduciary Fund of the Mbaracayu Reserve (Fundacion Moises Bertonl) Moises Bertoni Foundation French Global Environment Facility Global Environment Facility Important Bird Area (Instituto de Bienestar Rura) Rural Welfare Institute (Instituto de Derecho Ambiental) Environmental Law Institute (Instituto para el Liderazgo en Desarrollo Sostenible) Institute for Leadership in Sustainable Development (Instituto Nacional del.indigena) National Institute for Indian Development International Union for the Conservation of Nature (Ministerio de Agricultura y Ganaderia) Ministry of Agriculture and Livestock (Ministerio de Educacion y Culto) Ministry of Education and Cult (Ministerio de Obras Publicas y Comunicaciones) Ministry of Public Works and Communications Memorandum of Understanding Medium-Sized Project Protected Area (Programa de Inversiones Rurales Comunitarias) Community Rural Investments Program Participatory Rural Assessments (Reserva Natural del Bosque MbaracayL) Mbaracayu Forest Nature Reserve (Secretarfa delambiente) Secretary of the Environment Smithsonian Institution (Sistema Nacional de Areas Protegidas) National System of Protected Wild Areas (Secretaria de Estado de Recursos Naturales y Medio Ambiente) State Secretariat for Natural Resources and Environment (Secretarfa Te'cnica de Planificaci6n) Secretariat for Technical Planning Smithsonian Tropical Research Institute The Nature Conservancy (Universidad Nacional de Aunci6n) National University of Asunci6n United States Agency for International Development United States Forest Service World Wildlife Fund

4 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 4 PROJECT SUMMARY 1. Project name: 2. GEF Implementing Agency: Biodiversity Conservation and Sustainable Use World Bank in Mbaracayu 3. Country or countries in which the 4. Country eligibility: project is being implemented: Paraguay Paraguay ratified the Convention on Biological Diversity on November 4, 1993 (National Law 253). 5. GEF focal area(s), and/or cross-cutting 6.Operational program/short-term measure: issues: Biological Diversity This proposal falls within Operational Programs No. 3 (Forest Ecosystems); 7. Project linkage to national priorities, action plans, and programs This project has strong links with the national priorities and action plans regarding protection and sustainable development of the Mbaracay6 Forest Natural Reserve (Reserva Natural del Bosque Mbaracayu'-RNBM) as well as the whole Paraguayan portion of Interior Atlantic Forest (Bosque Atlintico Interior-BAI). In first place, the Government of Paraguay has assigned a high priority to the preservation and sustainable use of national biodiversity. The law of protected areas (approved in 1994) created the National System of Protected Wild Areas (SINASIP). In 1995, after a series of participatory workshops, the National Strategy for the Protection of Natural Resources was developed. This strategy prioritizes the creation of additional protected areas to include portions of all the ecoregions present in the country. Accordingly, in the SINASIP National Report (1998), the Mbaracayu Forest Natural Reserve (Reserva Natural del Bosque Mbaracayu-RNBM) was identified as a priority area for conservation. The reserve is part of SINASIP under article 63 of the Law on Protected Areas (National Law 352/94, ratified by National Law 112/91). Besides the general framework provided by SINASIP, there is also a specific and significant commitment by the Government of Paraguay to support RNBM, which protects 64,400 hectares of the Interior Atlantic Forest. The Reserve was created by National Law 112/91, ratifying a previous international agreement signed by the Government of Paraguay, the United Nations, the Nature Conservancy, and FMB. The Paraguayan government has also supported and endorsed the application made by FMB to UNESCO (MAB & Biosphere Program) for the nomination of RNMB as a Biosphere Reserve, which was approved and made effective on November Interest by national authorities to protect the Mbaracayu region includes not only the RNMB, but also the whole Upper Jejuf River watershed (Cuenca Alta del Rfo Jeju(. CAR). The region has been declared as a multiple use, protected area (by National Law 112/91). This legal framework promotes the conservation and development of the zone. Coordination of action plans and programs in the area was originally under the Ministry of Agriculture and Livestock (Ministerio de Agricultura y Ganaderia-MAG), being recently replaced by the newly created Secretary for the Environment (Secretarfa del Medio Ambiente). Government agencies, other public institutions and agencies, local communities, and landowners participate in this initiative, with strong support by FMB. 8. GEF national operational focal point and date of country endorsement: 9/23/1999

5 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 5 The Secretaria T&cnica de P/anificaci6n (STP) is the GEF operational focal point in Paraguay. Endorsed: The Secretaria T&nica de Planificaci6n (STP) is the GEF operational focal point in Paraguay. On September 23, 1999 (by note No. 1580/99 addressed to Ms. Christine Kimes, GEF Regional Coordinator), the STP expressed support for the proposed project "Consolidation of the Mbaracay6 Model (Paraguay) in the Upper Jeju( River Watershed by means of biodiversity conservation and socio-economic development" (the original name of this project was changed during preparation of the PDF A to its present title). The STP indicated that the proposal complements the actions of other projects currently implemented by the Government of Paraguay. This project has also been endorsed by the Paragu yan Scientific Research Council (CONACYT). 9. Project rationale and objectives: Indicators Goal: To conserve globally significant biodiversity (a) Effective protection and management of in the highly threatened Interior Atlantic Forest the 64,400 ha reserve of Paraguay by supporting the effective (b) Long-term planning for sustainable protection and consolidation of the Mbaracayu development in the Jejui Watershed with Natural Reserve and promoting conservation, reduction of the threat to the reserve's sustainable use, and land-use planning in the biodiversity Upper Jejui River Watershed. (c) Increased productivity and commitment in the watershed population and area compatible with the conservation of native natural resources. 10. Project outcomes Indicators (a) Consolidated management of Mbaracayu (a) The 64,400 ha reserve is effectively Reserve, particularly in terms of its ability to protected, the Park boundaries are securely deal with external threats. (Total $ established, infrastructure for control is ,29; GEF $ ) improved and expanded, through an active (b) Increased capability by local authorities and and skilled rangers team. the local people to enforce environmental (b) Environmental law enforcement is legislation (Total $ ,53; GEF $ substantially improved by better-trained ,96) justice officials, trained paralegal volunteers, (c) Replicable production models for sustainable and the local community. resource use adapted to the needs of (c) Alternative, sustainable production systems producers within the Jejui River Watershed have been developed, and 10 demonstration (Total $ ,36; GEF $ ,00) plots are available for extension and (d) Integrated land use planning and education. Fifteen community-oriented development practices adopted and development projects promoted by the FMB implemented in most of the Mbaracayu are designed, managed, and evaluated using region. Special consideration is given to a participatory approach. protection and restoration of the remaining (d) A land-use master plan for the Mbaracayu forest patches. (Total $ 572,599,90; GEF $ region is completed and in process of being 178,314.08) implemented. A large-scale reforestation (e) FMB acquires the capacity to implement and program is in place, based on demonstration monitor the proposed activities (Total $ plots ,13; GEF $ 60,400.00) (e) A Mbaracay6 Program Scorecard is developed starting from baseline information and twice a year is reviewed to measure the achievement of goals and guiding immediate actions for

6 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 6 the complete fulfillment of the goals. (f) FMB has a well-trained and well-equipped staff. A quarter of its staff has been trained and there is an updated Management Plan in operation. Eiac~ltiest cieva1es outcom;es Ei=;a cost n US$of eahtativity01)), 1.1 Park boundaries. 1.1 The legal surveying of the 140 km reserve Total $ 108, / GEF $ 20, limits is completed, and adequate signaling is in place with signs per km (> 100 signs) as well as the reserve's boundaries well maintained and demarcated. 1.2 Control infrastructure. 1.2 One existing control infrastructure is Total $115, / GEF $ 54, expanded and improved in the four control posts + the administrative headquarters at Jejui mi. a) A new control post will be built b) three motorcycles will be bought c) A Police Post in Tendal will be built d) A Residence for researchers will be built 1.3 MBRN Management Plan. 1.4 The current Management Plan is Total $ 423, / GEF $ 94, reformulated, participatorily with more than 100 stakeholders, giving special emphasis to externally-generated threats and issues a) A Rapid Ecological Assessment will be updated b) Baseline information inside the reserve for sound management decision

7 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 7 c) Database on biodiversity inventory and information for the reserve and the watershed d) Selection and monitoring of indicator and key species inside and outside the reserve's boundaries e) An Active Committee for scientific Affairs to take decisions and guide Research at the reserve f) A strategy and implementation for fire management 2.1 Law enforcement. 2.1 Local authorities receive training in Total $ 113,140,42 / GEF $ 29, environmental legislation a) Four workshop for 30 representatives of municipalities in the watershed b) Two workshops for 40 local and regional authorities c) Three workshops for 20 judges and 40 fiscal agents training and updating 2.2 Education on the legal framework. 2.2 Paralegal volunteers are trained in Total $ 92, / GEF $ 29, environmental legislation practices to assist communities on legal matters; a) Four training events for 30 volunteer paralegals from 15 communities in the watershed b) Three Seminars for training 20 community leaders 2.3 Environmental awareness. 2.3 A public awareness campaign is Total $ 119, / GEF $ 82, implemented. The existing Local Environmental Information Center, is expanded and improved; a) Design and elaboration of a campaign in the watershed based upon six-month duration to be broadcast by four radio stations and 30 educational centers. b) 100 school teachers from 25 educational centers from the watershed trained and updated in environmental issues and the significance of the reserve. c) Launching of an environmental information center d) Production and dissemination of graphic materials and of the Reserve video

8 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 8 e) Production of two educational messages per semester and an informative bulletin to be broadcasted by the local media. 2.4 New FM radio for Mbaracayu region 2.4 A FM radio for the Mbaracay6 area is created Total $ 36, / GEF $ 15, and operated by the FMB. Its profile will be focused on providing educational and cultural services to the region, with a great emphasis on conservation and the RNBM. This radio is expected to reach at least 20 communities in the watershed is expected to be passed on to a local cooperatives in year 3 of the project. 3.1 Improvement of the existing production 3.1 Extension services will be provided to help systems 600 farmers to manage sustainably their Total $ 125, / GEF $ 97, properties, promoting agro-forestry practices; 3.2 Develop alternative livelihood options. 3.2 Alternatives for the existing production Total $ 484,895.82/ GEF $ 207, systems are developed, and demonstration plots implemented. a) A pilot of community productive subprojects is established in critical areas of the Jejui Watershed with the purpose of validating and disseminating alternatives to the existing production systems as a mechanism to facilitate access to other sources of' subproject financing including the Pilot Community Rural Investments (based on Programa de Inversiones Rurales Comunitarias-PIRC), implemented by MAG with World Bank support. b) Exploration of alternative non-conventional ways of sustainable uses of native resources by the local people. 3.3 Marketing of local products. 3.3 Assistance is provided for the design and Total $ 11, / GEF $ 7, implementation of five pilot programs for cooperative commercialization of local products. 3.4 Opening of the Mbaracayu reserve for 3.4 Existing accommodation infrastructure will be tourism. enhanced and prepared for tourism. This Total $ 60, / GEF $ 39, refers to maintenance and incorporation of new infrastructure for tourism such as restrooms and infrastructure to support

9 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 9 tourists. The installation of a new landing strip in an external zone of the reserve will allow for the arrival of VIP tourist. A specific management plan is prepared. A Field Guide for Orquids will be published Development of land-use planning activities 4.1 FMB and the Paraguayan government in the region agencies design and implement a land-use Total $ 266, / GEF $ 35, master plan for the CAR] a) Five Meetings of information transfer will be carried out about land-planning with participation of representatives of 20 communities of the watershed. b) The plan will be designed together with local people, governmental agencies, FMB and other institutions. c) The plan will be jointly implemented 4.2. Local empowerment. 4.2 Community-oriented development projects Total $ 84, / GEF $ 21, are designed, managed, and evaluated using a participatory approach. Workshops and public meetings are organized for the discussion of planning, productivity, policy, and legal issues. a) Socioeconomic and environmental participatory diagnosis in 20 communities of the watershed. b) Six training workshops to watershed communities in subjects as legal aspects, community organization and productivity. c) Participatory Workshops in 10 communities (8 farmers, 2 indigenous) of the watershed for designing community projects d) Recruiting of 30 local dwellers in the data collection and analysis of information. e) Training of 20 local leaders 4.3. Reforestation of the CAR]. 4.3 Restoration and protection of the remaining Total $ 150, / GEF $ 86, forest patches outside the Mbaracayu Reserve. Demonstration plots are implemented; landowners are encouraged to implement private conservation initiatives 4.4. Environmental services 4.4 Five signed agreements with private Total $ 41, / GEF $ 26, landowners for implementing conservation actions in their properties, including

10 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 10 evaluation and promotion of ecosystem services provided by private forests. A regional Forest Sustainability Certification System is created and accepted by all partners. 4.5 Assessment of the CAR] baseline A baseline inventory of present CAR) environmental situation. environmental situation is completed. A Total $ 30,300.00/ GEF $ 8, comprehensive database is available 5.1. Staff training. 5.1 Training of five senior staff, eight project Total $ 38, / GEF $ 7, operational team, and Park rangers completed in national and international centers. At least two courses on socioenvironmental topics at the national level and one at the international level Equipment acquisition and maintenance Equipment required for project operation is Total $ 115, / GEF $ 16, purchased and operative Outreach 5.3. A Web site is created, Research activities Total $ 157, / GEF $ 8, and information availability are promoted 5.4. Long-term Strategy 5.4. A long-term Strategy is developed through a Total $ 387, / GEF $ 22, process of wide consultation. A watershed Management Committee is created with the necessary means for effectively promoting sustainable development in the CAR) 5.5. Watershed Management Committee Watershed (= Biosphere Reserve) Total $ 27,000,00 / GEF $ 6, Management Committee conformed, active and implementing development programs for the region with representation of stakeholders and in search of legal recognition. 12. Estimated budget PDF-A: $ 48, (GEF $ 25, FMB $ 23,300.00) (1,5%) GEF: $ 973, (30,94%) Co-financing: $ 910, (28,96%) Parallel co-financing $ 1,212, (38,56%) Total $ 3,145, (100%) GEF ($ 998,512.52) = 31,73 % Co-financing ($ 934,210.71) = 29,71% Parallel co-financing ($ 1,212,532.51) = 38,55%

11 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 13. Information on project proposer. Fundaci6n Moises Bertoni (FMB) is a NGO whose mission is to promote sustainable development in Paraguay through the conservation of biodiversity and the organized action of the population through advocacy and outreach activities. FMB was created in It is a member of IUCN, The Nature Conservancy and BirdLife International. Nancy Cardozo is the Executive Director and Alberto Yanosky is the Deputy Executive Director and Director of the Mbaracay6 Program. The staff includes 45 full-time personnel, of which 30 are technicians and professionals dedicated to the conservation of natural resources and sustainable development. FMB has a Board of Directors that includes representatives of the national and international civil society. FMB has sponsored and guided the creation of other national and international organizations including the International Center for Training and Management (CICOAM), Guyra-Paraguay Birds Preservation, the Foundation for the Sustainable Development of South American Chaco, and the Institute of Environmental Legislation. FMB is now in search of Quality Standard Certification in a new strategy to ensure quality of services. Further information on FMB can be found in Attachment I together with the process for th ISO Certification. 14. Information on executing agency (if different from project proposer): N/A 15. Date of initial submission of project concept: March 30, Project identification number: GM-PO Implementing Agency contact person: Karin Shepardson, Global Environment Coordinator (Tel) kshepardson@worldbank.orq Michael Carroll, World Bank Task Manager, LCSES (Tel) mcarroll(worldbank.org 18. Project linkage to Implementing Agency program: The World Bank's Country Assistance Strategy for Paraguay (Report PA of March 6, 1997) identifies the importance of addressing environmentally sustainable growth in rural areas, as well as the promotion of greater private sector involvement in the delivery of development programs. The proposed project is consistent with these objectives and also would complement the work of the Natural Resources Management Project (Loan 3708-PA), which is assisting GOP in addressing overall deterioration of natural resources (mainly soil erosion control through micro-catchments development plans), deforestation in specific protected areas, and the environmentally sustainable improvement of the quality of life for rural poor financed by the Sustainable Rural Investment Component. In addition, the Bank is currently preparing a Learning and Innovation Loan (LIL) to finance a Community Development Project. Although this project would be implemented in different departments of the country, the similarities in the methodological approach would permit regular exchange of operational experiences throughout project implementation. Links to programs by other agencies: The proposed project would also benefit from close coordination and exchange of information with two GEF biodiversity projects sponsored by UNDP. The first is a proposed medium-sized GEF project to establish and effectively manage four private reserves (this MSP also will be implemented by the Mois6s Bertoni Foundation in partnership with

12 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 12 other national NGOs). The second is the full size GEF project "Paraguayan Wildlands Protection Initiative" already approved by the GEF Secretariat and implemented by the Government of Paraguay (Ministerio de Agricultura y Ganaderla). These two projects as well as the present proposal all have been identified as priorities by the governmental focal point (STP).

13 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 13 PROJECT DESCRIPTION BIODIVERSITY CONSERVATION AND SUSTAINABLE USE IN MBARACAYU PROJECT RATIONALE AND OBJECTIVES The Atlantic Forest region, that extends from Northeastern Brazil down to Paraguay and Argentina, is among the more biodiverse ecoregions of the world, being an important center of endemism for plants, birds, mammals, reptiles, and butterflies, among other taxa. As an example, the region hosts 60 globally endangered species and about 200 endemic bird species 1. Unfortunately, the Atlantic forest is suffering an intense deforestation and degradation process, which has resulted in a dramatic reduction of the area occupied by the forest, as well as a severe fragmentation of the remaining patches. The Interior Atlantic Forest (also called Brazilian Interior Atlantic Forest' is a sub-region of the Atlantic Forest that extends over southern Brazil, Paraguay, and Argentina. Extremely biodiverse, this ecoregion has the highest number of endemic bird species of all the zoogeographic sub-regions in the Neotropics (10ispecies), being followed by the Central Andes sub-region (70 species) 1 Accordingly, the biological distinctiveness of the Interior Atlantic Forest has been qualified as "outstanding at the regional level". Like in the rest of the Atlantic Forest, the Interior Atlantic Forest is at present severely threatened by deforestation and degradation. The ecoregion is considered endangered, with the highest priority at the regional level 2. In Paraguay, the Interior Atlantic Forest extends over significant areas of the eastern portion of the country, hosting a significant portion of the whole Atlantic forest biodiversity. Of the six Important Endemic Bird Areas established by Bird Life International for the whole region, two are found in Paraguay 2. They host an impressive list of 403 bird species (REF). As in the rest of the Atlantic forest region, the Paraguayan Interior Atlantic Forest is under severe threat. Of the 94,000 km2 covered originally (85% of the Oriental Region of Paraguay), more than 87% had disappeared by 1997, most of the deforestation having taken place during the decade of Moreover, only 2%/o of the remaining fragments are in pristine condition. The Mbaracayu Natural Reserve (64,400 ha) protects one of the last significant fragments of the Interior Atlantic Forest fragments remaining in Paraguay. Besides its importance as a depository of the local biodiversity, the RNMB plays an important role in the preservation of the regional biodiversity, since it provides a significant stepping stone along a corridor of remaining forest fragments in Paraguay. This project adds a new step for the consolidation of conservation activities in the Mbaracayu area by expanding FMB actions beyond the protected area and the buffer zone into the whole Upper Jejui River hydrographic basin, aiming at the following objectives: ' Dinnerstein, E. et al A conservation Assessment of the terrestrial Ecoregions of Latin America and the Caribbean. World Bank, Washington 2 Wege, D.C. and A.J. Long Key areas for threatened birds in the Neotropics. BirdLife International. Cambridge.

14 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 14 a) Prevent isolation of the reserve from the surrounding area, both from the biological and social and economic points of view, and b) Promote development of a sustainable landscape structure and land-use pattern by seeking compatibility between sustainable regional development and biodiversity protection and enhancing long-term planning Specific objectives include: 1. Consolidate management capability of the Mbaracayu Reserve: improve the capacity of the Reserve particularly in terms of its consolidation and protection from external threats. 2. Minimize external threats to the reserve: strengthen the capacity of local authorities for implementing effective law enforcement and increase awareness of the value and importance of the Mbaracayu reserve among the CAR] population 3. Promote adoption of biodiversity conservation and sustainability principles by the productive sector: introducing biodiversity protection and conservation into the productive activities of the regional economy. 4. Encourage sustainable land-use planning and development at the regional scale: encourage, promote, and participate in regional planning and development activities at the river basin scale that enhance sustainability, social equity, and conservation of biodiversity. 5. Strengthen FMB management capacity: reinforce FMB 's institutional capacity for the proposed activities in the Mbaracayu area. The need and opportunity for the proposed actions are supported by at least the following factors: a) the importance of the BAI, and the speed at which it is being deforested; b) Declaration of the Upper Jeju( River Watershed (Cuenca Alta del Rio Jeju/-CARJ) as a multiple use protected zone by the Paraguayan Government (Paraguay National Law 112/91), and c) the experience accumulated and the momentum gained by FMB in promoting small-scale conservation and sustainable development actions in the reserve's buffer zone. If successful, the project may provide a leading case in the evolution of a conservation policy that was initially based on the reserve approach, has recently incorporated buffer areas, and expands into regional land-use planning and management. This last stage, despite its obvious need and priority, has not been reached in any significant scale in South America. CURRENT SITUATION Conservation in the Mbaracayu Reserve has been consolidated The FMB has been implementing the Mbaracayu Program since 1991, with the main goal of consolidating conservation in the Reserve and the Buffer zone. Over the past ten years, significant progress has been achieved in the protection of both sectors, as well as in the institutional strengthening of the FMB. In the RNBM, considerable effort has been devoted to infrastructure and equipment. The Reserve boundaries have been partially located and posted; a team of well trained rangers is now in the site on full time basis; adequate infrastructure has been built, including control posts, accommodation

15 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 15 and lab facilities for researchers, internal roads and trails; rangers have been provided with trucks, radio communication and other basic equipment required. Control of problems and conflicts originated from neighboring areas demanded significant efforts. Important steps have been taken to control illegal activities, including logging, hunting, and marihuana plantations. Other threats to the Reserve integrity have been identified, and corrective measures have being taken. Biodiversity inventories and general scientific research in the Reserve have been promoted and funded. As a result, a large body of information has been generated, part of which is already published. Activities in the Reserve's buffer zone were also significant. They had two main goals: increasing the local community awareness of the Reserve and its importance, and encouraging sustainable cultivation practices that enhance biodiversity. Support provided by the Program to increase local awareness resulted in the inclusion of conservation concepts in the curricula of some local schools; creation of a center for the revival and promotion of historical traditions, and support for several local organizations interested in the restoration of the traditional landscape of Interior Atlantic Forest. To support the Mbaracayu program, the institutional structure of FMB has been substantially improved and consolidated. At present, FMB has secured sufficient funding for baseline management activities in the reserve, including salaries, infrastructure and equipment. Moreover, FMB has a well-trained staff and a solid track record, well recognized at the national and international level. As a result of this successful track record, FMB has gained recognition by the local communities (including the Ache Indians), as well as considerable expertise in terms of local knowledge and trained staff. Moreover, FMB has also been successful in achieving credibility and support from the Paraguayan government, local and international NGOs, and bilateral and multilateral development agencies. Important issues remain to be addressed in the buffer area and the CAR7 While the Mbaracayu Program has accomplished important goals, particularly in the Mbaracayu reserve, significant issues remain to be addressed to achieve a fully consolidated situation in the whole CARJ. They interrelate at the Reserve, Buffer zone, and the entire CARJ level. At the Reserve level, conflicts generated from outside the reserve continue to demand investments and efforts aimed at securing the Reserve's borders. Illegal hunting and poaching are particularly problematic because they conflict directly with the Ache Indians, who are the only group legally authorized to hunt inside the reserve. Additionally, prevention of marihuana plantations in the Reserve continues to require significant efforts. More important however are those environmental and social issues that involve the entire catchment's basin (CARJ) and therefore have both direct and indirect impacts on the reserve. The CARJ (including the Reserve's buffer and influence zones) covers almost 22% (approximately 280,000 ha) of Canindeyu department and is home to approximately 15,000 people. It is one of the most important watersheds in Paraguay. Canindeyu has one of the highest population growth rates in Paraguay (6%). The current department population is approximately 100,000 inhabitants

16 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 16 (6.6 inhabitants/km 2 ), of which little more than 20% live in rural areas. A high percentage (estimated between 40% and 50%) of poor families lack access to education. Unsustainable practices in the watershed (including slash and burn practices, deforestation for pastures, etc.) continue to open more land at the expense of the native forest. Deforestation and pasture conversion of the remaining patches continue at an alarming rate, drastically altering the landscape structure. As a result, the Mbaracayu Reserve becomes increasingly isolated from neighbor forests patches, leading to the well known "island effect" that may lead to species loss even if the Mbaracayu reserve is adequately protected. Moreover, soil erosion increases as the vegetation cover disappears, leading to loss of fertility and river siltation that extends into the Reserve watercourses. Besides loss of biodiversity, uncontrolled fires and soil degradation are common effects of such practices. Moreover, small farmers settlements are usually located on soils unsuitable for traditional agriculture, as a result of rapid population growth, poor living conditions, and lack of legal land ownership. As a result, these communities are very unstable and prone to conflicts. Deforestation is not only a small farmers problem, however. Large landowners make also a substantial contribution to the problem by transforming forests into pastures. Additional threats to the rivers and wetlands inside and outside the reserve may come from water pollution associated with a rapid expansion of agriculture and urban development. Clearly, at the roots of these unsustainable practices, social and economic factors such as lack of effective land planning, rural poverty, lack of adequate education, and economic and political short-term pressures emerge as key problems to be solved. Solutions require a comprehensive, region based approach. In recognition of its rich biodiversity and serious environmental problems, the CAR) has been declared (by National Law 112/91) as multiple use, protected zone. This legal framework promotes the conservation and development of the zone. Coordination was formerly under the Ministry of Agriculture and Livestock (Ministerio de Agricultura y Ganaderia-MAG), being recently replaced by the newly created Secretary for the Environment (SEAM, Secretaria del Medio Ambiente). Government agencies, other public institutions and agencies, local communities, and landowners collaborate with this initiative, which is also supported by FMB. Moreover, the Government of Paraguay has identified Canindeyu as one of the departments where poverty threatens the preservation of natural resources, making it eligible for support from the Community Rural Investments Project (Programa de Inversiones Rurales Comunitarias-PIRC) implemented by MAG with World Bank support. The project provides grants to small farmers who lack access to traditional sources of credit. The aim is to increase production, generate employment, raise the income of the rural poor population, and strengthen rural communities; thereby reducing further damage to the ecosystem. These goals are coincident with the Mbaracay6 Program philosophy. Accordingly, the MBF is adopting the PIRC model for its own work in the CAR], using its own resources and, complementary funding from PIRC and from this proposed GEF project. Though this PIRC Program has been successful, no environmental sustainability is considered as a pre-requisite for granting. Within this GEF proposal, during the first year FMB with GEF support will adopt the PIRC model to invest in sustainable, environmentoriented pilot projects in the watershed, which will be based on demand-driven proposals generated by the local communities. These pilot projects and the experience gained with

17 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 17 environment-minded initiatives will be used for the second and third year of the project to propose financing by the MAG program, based on projects prepared with FMB-support. In recent years FMB has made significant efforts to encourage sustainable use of the buffer zone and the CAR], particularly through funding provided by the FGEF. These efforts included intensive extension and promotion activities. Indian (Ache and Guarani) and small farmers committees have been organized in more than 40 management units; grassroots organizations have been created and legally recognized by the local municipalities; sustainable forest and soil conservation practices at the individual land plot level have been promoted and adopted by at least 5% of the population; crop diversification and agroforestry practices (including reintroduction of traditional local crops) have been expanded. Besides, basic health and education needs have been assessed, and some of the more urgent needs have been addressed on a limited scale. Additionally, FMB is working with departmental authorities to prepare a development plan for the conservation and wise use of natural resources in Canindey6. Thanks to these pilot activities carried out in the buffer zone, FMB is now in an excellent position to implement incremental actions aimed at promoting sustainable development in the whole CAR]. This proposal is submitted to the GEF under this perspective of incremental expansion in FMB's activities. EXPECTED PROJECT OUTCOMES The main objective of this project is to promote biodiversity conservation and sustainable land-use practices in the whole CAR] using the Mbaracay6 reserve as a core conservation area, and the buffer zone as a model for sustainable land use. The secondary objective is to strengthen the Mbaracay6 Reserve in order to minimize threats in the surrounding areas. The proposed activities will be carried out over a period of three years to allow sufficient time for implementation. The following outcomes are expected: 1. A strengthened management capacity of the Mbaracay6 Reserve, particularly in terms of its ability to deal with problems and threats originated from outside its boundaries. The Park boundaries are securely established and protected, infrastructure for control is improved and expanded, and a revised Management Plan is in operation. 2. A strengthened capability by local authorities to ensure law enforcement in matters connected with conservation issues in the Mbaracayu area, together with a substantial increase in the local people awareness of the existing environmental legislation and the value and importance of the reserve. 3. Replicable models of sustainable resource use, adapted to the needs of farmers and ranch owners, have been developed. An ongoing process of dissemination and extension reaches the whole CAR]. Priorities include the sustainable use and conservation of biodiversity, protection of the local Indian communities, and poverty eradication. Special emphasis is given to the design of a landscape structure that minimizes fragmentation, maximizes connectivity among remaining forest patches, and prevents soil erosion. 4. Integrated land use planning and development for the whole CAR] is adopted by the local and national authorities, with supporting motivation and interest from the local communities and

18 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 18 stakeholders involved. Special consideration is given to protection and restoration of the remaining forest patches in the CARJ. 5. FMB reaches an optimal level of efficiency for implementing and monitoring the proposed activities. The area of Social Anthropology is expanded and strengthened, giving the growing need for social and development actions in the CARJ. ACTIVITES AND FINANCIAL INPUTS In order to achieve project objectives, the following activities will be implemented (success indicators and expected impact in Annex IV): Outcome 1. Consolidated management of the Mbaracayu Reserve. Activities will focus on (a) improvement of the physical infrastructure needed for an efficient protection of its boundaries, and (b) a re-design of the Management Plan based on a comprehensive evaluation of the present situation after ten years of operation. As a result, the reserve will have its boundaries properly delimited and signaled, rangers will be adequately equipped in terms of mobility and building infrastructure, and an updated and expanded Management Plan will be in place. (Total $ ,29; GEF $ ,61) Activity 1.1. Park boundaries * In year 1, the legal surveying of the reserve limits will be completed, and adequate signaling of the whole perimeter will be in place. Total $ ,00 GEF $ ,00 Activity 1.2 Control infrastructure * In years 1 and 2, new facilities will be built in the reserve, including new control posts at the SE corner; improvement and expansion of the La Morena and Karapa posts, and expansions at the Reserve headquarters. * Three all-terrain motorcycles will be purchased to improve ranger's mobility and ability to respond effectively to emergencies such as fire or trespassing. * The existing control posts infrastructure will be subject to periodic maintenance and repair activities. Total $ ,00 IGEF $ ,00 Activity MBRN Management Plan. * The current Management Plan will be reformulated based on an evaluation of the Reserve's present situation after ten years of operation, giving special emphasis to threats and issues generated in the interface between the reserve and the buffer zone * This assessment will be based on an update of Rapid Ecological Evaluation (EER) exercise, which will allow comparison of present and initial conditions database will be created and maintained with the collected information as a baseline for monitoring, with special emphasis on rivers water quality and key species (including invasive and declining species) * A fire control strategy will be developed and included in the Management Plan

19 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 19 The resulting Management Plan will be discussed and validated in a workshop with the participation of FMB staff and scientists from the universities of Asuncion, Texas A&M, Londrina (Brazil), and Kansas State; and from the Guyra Paraguay, Natural History and Alexander Konig Museums; The resulting Plan will be open to public and participatory discussion by the local communities. Total $ ,29 IGEF $ ,00 Outcome 2. Reduction and control of external threats to the protected area. Two complementary approaches will be used. First, strengthening the local capabilities and motivation to make effective the existing legislation. Second, implementation of a wide-reaching environmental education and awareness campaign at the regional level. Expected outcomes include a) an increase in effective law enforcement in the area, and b) an increased awareness of the Reserve existence and importance among the local communities. (Total $ ,53; GEF $ ,96) Activity 2.1. Support to local authorities for law enforcement. * Support will be given to local authorities for law enforcement activities, including information on current legislation, training in legal procedures, etc. * Specific training on environmental legislation and procedures will be provided to local district judges and departmental and national government authorities * Paralegal volunteers from the region will be trained in basic legal knowledge and procedures to help local communities in environmental-related issues. Total $ ,42 IGEF $ ,00 l Activity 2.2. Education on the legal framework. * Workshops will be organized to inform the general public about the current legal framework on environmental matters * Local community leaders committed to conservation and sustainability will be identified and supported. ITotal $ ,97 IGEF $ ,00 Activity 2.3. Environmental awareness. * A comprehensive environmental education program stressing the value and importance of the MBPA aimed at the population living in the CAR] will be designed and implemented * Environmental and conservation education will be promoted in the local education centers * The Local Environmental Information Center, created by the Mbaracayu Program, will be expanded and improved * Brochures and educational videos on the reserve will be produced and distributed * Conservation and general information programs will be prepared for dissemination by the local radios ITotal $ ,13 GEF $ l Activity 2.4. New FM radio for the Mbaracayu region. The Mbaracay6 Program will install and broadcast a new FM radio for the Mbaracayu area, which will be acquired and operated by

20 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 20 FMB. Its profile will be focused on providing educational and cultural services to the region, with a great emphasis on conservation and the Mbaracay6 reserve. [Total $ ,00 TGEF $ , 00 Outcome 3. Adoption of biodiversity conservation and sustainability criteria by the productive sector. Replicable, economically feasible alternatives for the sustainable use of the local resources will be explored, developed, experimented, and disseminated when appropriate, encouraging cooperation among the producers. Tourism centered in the attraction provide by the Reserve will be promoted. (Total $ ,36; GEF $ ,00) Activity 3.1. Improvement of the existing production system. * Extension services will be provided to small farmers and Indian producer for developing sustainable management plans for their properties, promoting the wise use of agriculture and agro-forestry practices; * Informative and training courses on the sustainable use of the local resources will be implemented Total $ ,55 IGEF $ ,00 l Activity 3.2. Explore and develop alternative livelihood options. * Sustainable alternatives for the existing production systems in the CAR. will be explored, particularly those based on local natural resources (medicinal and ornamental plants, fruits, butterfly and wildlife farming operations, etc.); * Demonstration plots will be implemented for those more promising techniques * Innovative technologies to improve Indian and small farmers handicrafts will be developed and promoted; * Technical assistance will be provided to formulate and implement industrial micro-projects. * Support and guidance will be provided for identification, design, and implementation of other demand-driven products obtained from the local natural resources. Note: This last activity will be known as Community Rural Investments Project. FMB is proposing GEF to invest some funding to provide grants to those small farmers in the CAR] that lack access to traditional sources of credit. This proposal is based on the successful program on Community Rural Investments Project (Programa de nversiones Rurales Comunitarias-PIRC) implemented by MAG with World Bank support. It is also justified given that the Government of Paraguay has identified Canindeyu as one of the departments where poverty threatens the preservation of natural resources. The general goal is to increase production, generate employment, raise the income of the rural poor population, and strengthen rural communities; thereby reducing further damage to the ecosystem. FMB will help small farmers to prepare projects to be submitted to MAG via Canindey6 department, developing courses on project preparation. Competition among local people will be promoted by providing matching funds to develop communal productive projects. A total of 15 projects (five per year) are expected to be financed in the three years of the project. Guidelines for participatory projects will be prepared. The first pilot project environment-minded are expected to be financed by GEF and with the experience gained in these projects' implementation provide expertise to improve investment by the MAG. Total $ ,82 IGEF $ ,00

21 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 21 Activity 3.3. Marketing of local products. * Assistance will be provided for the design and implementation of pilot programs on cooperative commercialization and marketing strategies for processed products. Total $ ,00 IGEF $ 7.500,00 l Activity 3.4. Opening of the Mbaracayu reserve for eco-tourism. * The Reserve infrastructure will be enhanced and prepared for tourism including a landing strip, sanitary spaces and other accommodations. * A specific management plan will be developed; Trail circuits will be designed, built, and signaled * Field guides on mammals, birds, mushrooms and insects will be prepared ITotal $ 60, GEF $ 39,840,00 Outcome 4. Integrated land use planning and development for the whole CARJ. The proposed activities aim at a) providing technical support to the Paraguayan government agencies in the design and implementation of land-use planning in the CARJ and b) to encourage and empowering local communities in land-use planning activities, including protection and restoration of the remaining forest patches in the CARJ. Emphasis will be given to promote voluntary agreements with private owners for forests conservation linked to carbon sequestration goals, as we as development of an Independent Forest Sustainability Certification System for private forest owners. Finally, new alternatives will be explored for promoting recognition and compensation for ecosystem services provided by forests owned by the private sector. In order to provide a baseline against which to measure these activities, a baseline inventory of the present environmental situation of the whole CARJ will be performed. (Total $ 572,599,90; GEF $ 178,314.08) Activity 4.1. Development of land-use planning activities in the region. * In accordance with existing agreements, FMB will support and collaborate with the Paraguayan government agencies in the design and implementation of a land-use master plan for the CARJ, based on land planning and management principles that maximize sustainability, biodiversity conservation, and poverty eradication. itotal $ ,82 GEF $ ,00 Activity 4.2. Promotion of local empowerment to increase sense of ownership. * The Participatory Rural Assessment (PRA) will be implemented in FMB activities in the area; * Community-oriented development projects promoted by the FMB will be designed, managed, and evaluated using a participatory approach involving the beneficiaries. These activities will also expand geographically by adding eight small farmers and two Indian communities; * Workshops and public meetings for the discussion of planning, productivity, policy, and legal issues will be organized, encouraging participation by all stakeholder involved * Local leaders will be trained professionally in biodiversity protection and natural resources management, to facilitate dissemination and appropriation of these concepts by the local people; ITotal $ ,00 igef $ ,00F

22 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 22 Activity 4.3. Reforestation of the CARJ. * Restoration and protection of the remaining forest patches outside the Mbaracay6 Reserve will be promoted; * Demonstration plots for community-driven habitat restoration projects will be implemented; * CARJ landowners will be identified and encouraged to implement private conservation initiatives (conservation easements) aiming at the creation of biological corridors connecting the Reserve; * A feasibility study to establish an ecological corridor between the Chupa Pou Ache Indigenous Community and the RNBM will be conducted * Reforestation of the riparian corridors and restoration projects for degraded land will be promoted and implemented. * Voluntary conservation agreements * Forest Sustainability Certification System Total $ ,08 GEF $ ,08 Activity 4.4 Evaluation and promotion of ecosystem services provided by private forests. * Development of alternatives * Pilot projects ITotal $ ,00 GEF $ ,00 Activity 4.5 Assessment of CAR. baseline environmental situation * Inventories * Database creation and maintenance ITotal $ ,00 IGEF $ 8.500,00 Outcome 5. Strengthened capacity of the FMB. This outcome is approached through reinforcing staff training, equipment acquisition, and strengthening of outreach activities (web page). Besides improvement and expansion of current activities, one important incremental activity will be the addition of a Social Anthropology Department to the FMB structure. At present, even if FMB has wide experience in development actions since its creation in 1988, most of FMB staff comes from the agronomy and forestry disciplines, with only a small representation from the social sciences. This situation, common to most ONGs in Latin America, needs to be reverted, as FMB strategic focus expands from the Reserve-oriented approach into a much broader perspective, with strong emphasis in social actions. Accordingly, GEF funding will allow training opportunities to FMB staff, and, in a second stage, development of a full unit dedicated to the social aspects of conservation in Paraguay. At present FMB has already initiated contacts with the French Government through IRD (Instituto Frances de Investigaci6n y Desarrollo), aiming at the development of a long-term program for the support and development of this area within FMB. (Total $ ,13; GEF $ 60,400.00) Activity 5.1. Staff training. * Training of the senior staff of the Mbaracay6 Program on new developments and techniques concerning management and sustainable development of protected area will be provided in national and international centers. Emphasis will be given to the Social and Anthropological area.

23 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 23 * Training of the project operational team on issues concerning natural resources management within the SINASIP strategies will be implemented during the first year * Training exchanges and apprenticeships for Rangers of the Mbaracayui Reserve will be implemented in the National Parks Administration Agency of Paraguay and similar organizations in Brazil and Argentina; * Monitor socio-anthropological issues in the watershed for better implementation of communalbased actions by the creation and Development of a Social Anthropology Department in the FMB ITotal $ ,00 GEF $ 7.900,001 Activity 5.2. Equipment acquisition and maintenance. * Computer equipment for the Mbaracay6 Reserve; * Equipment for Geographic Information System unit to support monitoring, research, management, and land-use planning activities for the reserve and the watershed; and expenses in equipment maintenance Total $ ,00 IGEF $ ,00 Activity 5.3. Outreach activities. * A web site for the Mbaracay6 Program will be created and maintained * The Mbaracay6 Reserve will be promoted as a Research Center for the Interior Atlantic Forest; * More efficient mechanism for publication and dissemination of research results will be encouraged and promoted. Total $ ,39 IGEF $ 8.200,00 Activity 5.4. Long-term strategy * Several workshops will be organized to revise the long-term strategies for the Mbaracayui program in order to include the present expansion from reserve-oriented activities into promotion of sustainable development at the hydrographic basin scale. * The revised strategy will be submitted for analysis and evaluation by the Honorary Council of the Reserve. Total $ ,00 GEF $ ,00 Activity 5.5 Integration of a CAR1 Watershed Management Committee. This activity will empower FMB with the means for effectively promoting integrated and sustainable development in the CARJ. To a large extent, it will be co-financed by Avina-Ildes and CIDA through ARC. The objectives of this activity are threefold: * Integration of on-going and planned investments in the region into a cohesive program of social and economic development; * Identification and identify, train and equip grassroots leaders to be responsibility for the participation of their community in that development; and * Strengthen the catalytic ability and capacity of the Fundaci6n Bertoni to promote, coordinate and implement this integrated development program in the Biosphere Reserve. itotal $ ,00 IGEF $ 6.000,00 1

24 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 24 Overhead costs: The proposal includes 3% of overhead costs to cover current activities, plus another 3% for contingency expenses. FMB matches administration by providing human resources to the project financed, by the Mbaracayu Fiduciary Fund. itotal $ ,59 IGEF $ ,48 SUMMARY OUTCOME 1 Total 170, , , Act 1. Park boundaries 20, , , ct 2. Control infrastructure 54, , , Act 3. Management Plan 94, , , Act 1 Lawmenforcement 29, , , Act 2 Education Legal 29, , , Act 3 Envawareness 82, , ,537.1 OUTCOME 3 Total 352, , , Act 4. FM Radio 15, , , OUTCOME 3 Total 352, , , Act 1 Improv Prod. Systems , , Act 2 Alternative livelihood 207, , ,895.8 Act 3 Marketing 7, , , Act4 Tourism in Reserve 39, , , OUTCOME 4 Total 178, , , Act 1 Land-use planning 35, , ,545.8 Act 2 Local empowerment 21, , , Act 3 Reforestation/private.conservancies 86, , , Act 4 Environmental services 26, , , Act 5 Baseline assessment 8, , , OUTCOME 5 Total 60, , ,145.13l Act 5.1 Staff training 7, , ,200.00l Act 5.2 Equipment 16, , , Act 5.3 Outreach 8, , , Act 4 Loncg term strategy 22, , , Act 5 Biosphere Committee 6, , , Administration 27, , , Contingencies 27, SUSTAINABILITY ANALYSIS AND RISK ASSESSMENT To ensure long-term sustainability of forest conservation in the Mbaracayu area, emphasis has been given to the following aspects: first, all proposed activities are community based and conform to existing governance structures, with strong coordination with the Paraguayan government at the national and local level, community leaders, and the local population in general. Second, the

25 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 25 proposed initiatives are directly or indirectly linked with national government programs, ensuring consistency and continuity. Finally, promotion of income-generating initiatives, training of local people, and a strong educational and dissemination component contribute to the appropriation of the project's long-term goals by the local and national communities. Great national and international interest exists in the protection of the Mbaracayu Reserve, taking into consideration the high priority given to the preservation of the Atlantic Interior Forest by international and local organizations. Moreover, the recent nomination of the Mbaracayu Reserve as a Biosphere site adds a significant component of sustainability to the reserve and the buffer zone. Project risks include, in first place, growing pressures on the reserve and the remaining forest patches in the region, a common problem throughout Latin America. This pressure is related with the economic and social situation in the area, which in turn is affected by a rapid population growth, increasing poverty, and political unrest. The project has been specifically designed to address these potential risks. Pre-emptive initiatives such as promotion of new income-generating activities oriented to small farmers and Indigenous communities, and land-use planning initiatives converge on the general goal of raising the standard of living of the local population while protecting biodiversity. Project activities in the buffer zone and in the whole CAR] may lead to unrealistic expectations about the prospects for funding at the local community level. In this case the experience already obtained by the FMB through the FGEF (French Global Environment Facility) will be crucial in addressing this risk in the initial years of the project. Another potential risk is that the proposed tourism development initiative may not materialize in the near future. Nevertheless, new roads are being planned that will facilitate access not only from Asuncion but also from the Iguazu falls. The Secretary of Tourism is working intensively to promote the region in the future. Then, new and interesting alternatives will be open for the MbaracayuC area. The basis for tourism development may also help the development of alternative sources of income for the local population resulting from this project. Moreover, investments in tourism are not likely to be lost, considering that in the long term, accessibility to the area may improve radically. STAKEHOLDER INVOLVEMENT AND SOCIAL ASSESSMENT Stakeholder involvement Stakeholders include the rural communities in the buffer zone of the Mbaracay6 reserve (and, in a wider sense, in the whole CAR]), local and national government agencies, international aid institutions, national and international NGOs, and the United Nations, particularly since Mbaracay6 became a Biosphere site. As a result of this preparation work developed by the FMB, several concrete initiatives for stakeholder involvement in the project have developed, including: At the local scale, FMB has arranged community meetings in the CAR) with local groups that are participating with the Mbaracayu Program, as well as more informal meetings with groups

26 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 26 of local residents and political authorities. During project formulation, FMB also met with representatives of the civil society in Asuncion to discuss several aspects of this project. * FMB also met or contacted representatives from the scientific and academic communities, both Paraguayan and international, to strengthen project design regarding scientific research in the RNMB, particularly in connection with long term protection and conservation. Memorandums of Understanding (MOU) for specific research projects in the Mbaracay6 area have already been signed with Universidad Nacional del Pilar and Universidad Nacional in Paraguay; Kansas State University, Texas A&M University, and University of New Mexico in the USA; and Alberta Research Council in Canada. A similar agreement is being negotiated with the Smithsonian Institution, USA. * The Smithsonian Institution (SI) and the Alexander Koenig Zoological Research Institute and Museum have offered support for education, training, and research. The MOU with SI was signed October 2, 2001 and the other is about to be signed. * Letters indicating interest and support for the proposal have been received from Governmental Agencies, including science (Consejo de Investigaciones Cientificas y Tecnicas del Paraguay), education (Ministerio de Educaci6n y Cultura), natural Resources, agriculture and livestock (Ministerio de Agricultura y Ganaderia), and health (Ministerio de Salud Publica). * Detailed analysis and planning has been devoted to the interaction between FMB and two North American institutions devoted to youth exchange and social work in Paraguay: Peace Corp and the American Field Service. Both organizations have a long tradition of cooperation with FMB and expressed their interest in participating in this project, and will assign participants from their programs for activities related to this GEF proposal. * Several Paraguayan and international NGOs have expressed willingness to participate. In Paraguay, Instituto de Derecho Ambiental (IDEA), Guyra Paraguay Bird Conservancy, and Natural Land Trust Paraguay. International organizations include The Nature Conservancy and World Wildlife Fund (WWF). FMB has been in the transition of passing to Guyra Paraguay the BirdLife International partnership (Partner Designate) for Paraguay. * The Environmental Authority (Secretaria del Medio Ambiente) has expressed specific interest in involving FMB in the development of a land-use planning and implementation program for the CARJ basin, in accordance requirements of the National Law 112/91. Social Assessment Social assessment has been practiced since the initial stages of the Mbaracayu Project, being an essential component of all the activities developed in the region. A significant amount of experience has been gained by activities developed by FMB in the buffer zone with FGEF funding through in the project entitled "Consolidacion de un Modelo de Desarrollo Sustentable para el aho 2000: la Alta Cuenca del Rfo Jejui y la Reserva Natural del Bosque Mbaracayu" (Consolidation of a Sustainable Development Model for the year 2000: the upper basin of the Jeju( River and the Mbaracayu forest Nature Reserve"). The project leads to consolidation of a strong link between FMB and the local communities.

27 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 27 Among other important lessons, the experience gained so far indicates the importance of not leaving aside social issues, including property rights, particularly of the Ache Indian communities; alternative production systems for the farmers and Guaranf and Ache Indian communities; availability of basic health and education facilities, and development of better marketing alternatives for the local production. No doubt, introduction, development, and appropriation of new technologies and production systems by the local population are a difficult issue. Since the Mbaracay6 project is only ten years old, there is limited experience accumulated, and therefore not many demonstration sites are available. Moreover, new activities, as ecotourism for example, imply a drastic shift from the traditional way of life of farmers and Indigenous Communities, until now based almost exclusively on subsistence agriculture. Another important aspect to be considered is the need for increasing understanding by the local and national population of the importance and values of the Mbaracay6 Reserve, and its potential contribution to the sustainable development the region. INCREMENTAL COST ASSESSMENT Baseline activities In the absence of GEF support, investments for biodiversity conservation in the buffer zone and in the CARJ will be limited, since financing will be restricted to the Fiduciary Fund of the Mbaracayu Reserve (FFMR) and the remaining portion of the French World Wide Environmental Fund (FGEF), which will be completed by December The Fiduciary Fund of the Mbaracayu Reserve (FFMR) is operated jointly with The Nature Conservancy. Currently has an endowment close to US$5 million, which generates annual revenues of about US$180,000. This level of funding is sufficient only for essential recurrent costs, including basic control and protection, management, equipment maintenance, and a small amount for infrastructure maintenance. FGEF funds granted to FMB for the period allowed a substantial consolidation of the Mbaracayu Reserve, particularly in terms of (a) staff training, (b) improvement of the Mbaracayu reserve infrastructure, and (c) development of pilot projects in the buffer zone for the promotion of conservation and sustainable development of local communities.. Accordingly, without the requested GEF support, FMB would be limited to the following activities. 1. Consolidation of the management of the Mbaracayu Reserve: basic road and trail maintenance; maintenance of the current, limited capacity for tourism activities, mostly restricted to short visits by local people. 2. Control and reduction of external threats to the reserve: restricted mostly to control of illegal plantations and timber and wildlife poaching, executed by the current staff of 12 rangers with limited equipment and mobility. These activities will be mostly reactive in nature, lacking the proactive component, essential for achieving sustainable management of the buffer zone and the entire CAR]. 3. Promote adoption of biodiversity conservation and sustainability by the productive sector: Budget limitations will prevent expansion and replication of community development

28 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 28 activities throughout the CARJ, restricting actions at the present pilot project level in the buffer zone. 4. Encourage sustainable land-use planning and development at the regional scale: extension activities, focused mostly on agroforestry practices, will be limited to a small percentage of the watershed population, which may not reach the critical threshold needed for achieving a significant impact in terms of forest and biodiversity conservation, erosion control, and sustainable development. 5. Strengthened FMB management capacity: staff training will be restricted to those activities that can be supported by current disbursements from the Trust Fund. In case this requested GEF project was granted, the Trust Fund is expected to reach US$7 million at the end of the project period, through capitalization of undisbursed interest income. At this level of capitalization, revenue from the Trust Fund would ensure the long-term sustainability of the Mbaracay6 Program, covering both recurrent management and activity costs. Despite these ongoing baseline activities, it is very likely that without timely and significant interventions, fragmentation and conversion of natural habitats will continue to increase at scales that are difficult to control. Local, state, and national governments would need to be provided with additional support and encouragement to engage in activities that are beyond its present capability, despite being considered high priority, such us land-use planning and policies for the CAR]. GEF alternative Under the GEF alternative, an expanded program would be implemented, which will provide for the implementation of activities that generate global benefits, particularly promotion of biodiversity conservation and sustainability practices as well as adoption of land-use planning for the whole CAR). The result of the GEF alternative activities would be the full integration of the Mbaracay6 reserve and the buffer zone into the CAR], in terms of biodiversity protection, sustainable development, and increase in the local capacity to use and manage the natural resources in a sustainable manner. See in Table 1 a detailed Budget for the baseline and GEF alternative. It is worth mentioning that FMB has postponed requesting GEF support until the Mbaracayu Program reached self-sufficiency in terms of conservation and protection capacity in the Mbaracay6 Reserve, in order to be in condition of providing a solid platform from where to expand and increment the program to its complete capacity in the whole CAR). Costs The total cost of the baseline activities is estimated at US$ The cost of the GEF alternative is US$ ; about 32% is being requested from the GEF (US$ of which the PDF has involved $ 25,000; remaining $ ,39), and the remainder will be contributed by different sources. See details in the following tables:

29 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 29 Table 1: Incremental costs promoted by the Proposed GEF funding Items Baseline GEF Increment GEF TOTAL Personnel 883, , ,273 1,412,049 Consultant Services 5, , , ,959 Infrastructure & Productive Subprojects 27, , , ,316 Training & local empowerment 9, , , ,862 Equipment 0 132, , ,894 Operational costs 79, , , ,006 Total 1,004, , ,129,033 3,107,086 PDF Block A GEF GRAND TOTAL 1,004, , ,129,033 3,132,086 Table 2: Matching funds from different sources proposed to the GEF RNBM Trust Fund $ X Unrestricted FMB funds $8.650 X Local Community Support $ X Fund. Mbaracayu $ X Honorary Council $ X AFS $ X Peace Corps $ X Texas A&M $ X Univ. Nuevo Mexico / WCS $ X Smithsonian Institute $ X Alexander Koenig Museum $ X Kansas State University $ X Avina-Ildes $ X USAID / TNC / WWF $ X National NGOs / MAB-Py $ X FFEM $ X PIRC/MAG/World Bank $ X Alberta Research Council $ X CIDA $ X Ducks Unlimited $ X Universidad de Londrina (Brazil) $ X Governmental Support $ X

30 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 30 BUDGET PROJECT BUDGET Table 3: Budqet breakdown based upon itemized amounts and ercentages _o_nen Parallelco-l Total non-il l~ii financ _" FuliiG-EFA11.111* Personnel 99, , ,273 1, ,395, Consultant Services 162, , , , , Infrastructure & 206, ,500 67,350 77, , Productive Subprojects Training & local 214, , ,85 265,75 470, empowerment Equipment 124, , , , Operational costs 110, , , , , Overhead 27, , Contingencies 27, , Total 973, , ,212, ,123, ,096, PDF Block A 25, , GEF GRAND TOTAL 998, , ,212, ,123, ,121, GEF FMI5_ Prl co-totlinn S TOTAL. Personnel 10,86 95,89 34,83 61,02 45,26 Consultant Services & 17,67 0,55 9,47 5,64 10,32 Contracted Staff Infrastructure & 22,45 1,15 5,55 3,67 9,57 Productive Subprojects Training & local 23,44 0,87 20,44 12,05 12,05 empowerment 13,61 0,00 10,02 5,72 8,20 Equipment I_I Operational costs 11,97 1,54 19,69 11,911 11,93 GEF TOTAL 100,00 100,00 100,00 100,00 100,00 * Overhead and contingency included in each component Table 4: Budget breakdown, allocation of grant proceeds by procurement category.

31 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 31 FMB & Parallel co- TOTAL Component GEF Cofinancing financing NON GEF TOTAL Consultant Services & Contracted Staff 261, , , ,425,663 1,674, Infrastructure 79, , ,500 89, Productive Subprojects 127, , , , Training & local empowerment 214, , , , , Goods 124, , , , Operational costs 110, , , , , Overhead 27, , Contingency 27, , Total 973, , ,212, ,133,573 3,107, PDF Block A 25, , GEF GRAND TOTAL 998, , ,212, ,133, ,132, FMB & Parallel co- TOTAL PERCENTAGES GEF Cofinancing financing NON GEF TOTAL Consultant Services & Contracted Staff Infrastructure Productive Subprojects Training & local empowerment Goods Operational costs Total PDF Block A GEF TOTAL

32 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 32 PROJECT IMPLEMENTATION ARRANGEMENTS Project life is three years. The project will be executed by FMB through its Mbaracayu Program. Dr. Alberto Yanosky, presently FMB Deputy Director, will be assigned as full-time Coordinator. Project development will be under the supervision of the Honorary Council of the Mbaracayu Reserve. The Council is integrated by representatives of the UNDP local Office with the position of President of Council, FMB, Fundaci6n Mbaracayu, Ministry of Agriculture & Livestock (Secretary of the Environment), Ministry of Economy, Ministry of Foreign Affairs, The Nature Conservancy, and the Ache Indian community. The Secretary of the Council is held by the Direcci6n de Parques Nacionales y Vida Silvestre. The International Agreement for the creation of Mbaracay6 and the national law 112/91 that ratified the international agreement supervises actions in favor of Mbaracayu development. The Management Committee for recently declared Mbaracay6 Biosphere Reserve will be formed and empowered during this project's lifespan. Several key actors will be involved in project development. During the first year, close coordination will be kept with FFMA to achieve a smooth and efficient transition between the last phase of FFMA supported activities in the buffer zone and the initial stages of this GEF project. Throughout the project, close contact and interaction will be maintained with government agencies, particularly those involved in regional planning and development (Secretary for the Environment, MAG and SSERNMA). The project will work closely with local communities, particularly through the local Committees previously organized by the FMB, will be kept in close. Local government representatives will also be involved in the Project through the several activities planned. The Honorary Council of Mbaracayu Forest Nature Reserve encouraged submission of the present GEF proposal through the World Bank. The Council has been closely following the development steps of this proposal. Moreover, the Honorary Council has required the development and implementation of a specific Implementation Manual for this project, which will allow a thorough follow-up of the proposed activities. Operational Plans will be updated yearly, evaluated by the FMB Board, and submitted to the Fundaci6n Mbaracayu Annual Assembly, before final approval by the Honorary Council. The two annual meetings of the Honorary Council provide ample opportunity for a detailed evaluation of project outcomes and products. The Annual Operational Plan will be based on the Master Plan developed at the initial stages of the project, which will be submitted to the GEF Secretariat for project monitoring. FMB Administrative Office will be in charge of the financial administration of this project. FMB programs are externally audited on annual bases. Since its creation, FMB has approved auditing by several international donors, including FGEF and USAID, among others. Time schedule A time schedule for the proposed activities is given in the following table (a monthly expected time schedule is shown in Annex XI.

33 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 33 Act 1. Park boundaries x x x Act 2. Control infrastructure x x x Act 3. Management Plan x x x Act 1 Law enforcement x x x Act 2. Education Legal x x x Act 3. Env awareness x x x Act 4. FM Radio x x x OREMJE _ Act 1. Improv Prod. Systems x x x Act 2. Alternative livelihood x x x Act 3. Marketing x x x Act 4. Tourism in Reserve x x x Act 5. PIRC Act 1. Land-use planning x Act 2. Local empowerment x x x Act 3. Reforestation x x x Act. 4. Private conservation x x x Act. 5. Ecosystem services x x x Act. 6. CAR] baseline evaluation x x x E -_ - Act 5.1. Staff training x x x Act 5.2. Equipment x x x Act 5.3. Outreach x x x Act 5.4. Long term strategy. X x x Act 5.5 Watershed Committee X A more detailed time schedule will be included in the Project Manual in which the activities foreseen to achieve each of the outcomes with corresponding activities will be scheduled in a semester-based matrix.

34 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 34 Procurement FMB procurement organization and procedures have been reviewed by the Bank and found to be consistent with Bank Procurement policies, as applicable to MSP. The specific procedures which will be used to procure goods, works and services financed by the Grant as well as a procurement plan for the Project are included in Attachment II. PUBLIC INVOLVEMENT PLAN Stakeholder identification Local communities. Ache Indian: the Mbaracayu Forest is a remainder of the traditional hunting and harvesting areas of the Ach6, an Indian group restricted to the Interior Atlantic Forest that only recently has made contact with Europeans. Now settled outside the Reserve, they have been granted the right to continue hunting (with traditional weapons) in the Mbaracayu Forest.. Guarani Indian: several Guaranl communities (particularly Ita Poty, Mboi Jagua, Tekoha Ryapu, and others) are located in the area of influence of the reserve. At present they are less dependent on hunting and more on subsistence agriculture and employment in cattle ranches.. Farmers: the small farmers population in the Canindeyu Department has increased substantially since 1970, due to the opening of roads and development of new settlements. Settlements already interacting with the FMB include Colonia Tendal, Colonia Santo Domingo, 11 de Setiembre, La Morena, Carupera, Nueva Alianza, and Itanarami, among others.. Large landowners: large cattle breeding ranches have been established in the Mbaracayu area, mostly originated in Brazilian investments in the area. They are responsible for large-scale deforestation and soil degradation in the area. Their participation is therefore essential ensuring conservation and sustainability in the CARJ. National and international NGOs * The Mbaracayu Foundation: the owner of property titles to the Mbaracayu Reserve. * Guyra-Paraguay: dedicated to conservation and research of the Paraguayan birds.. Natural Land Trust: dedicated to the establishment of private conservation easements and environmental services revenues. * Environmental Law Institute (Instituto de Derecho Ambiental--IDEA): deals with legal aspects of environmental protection. * Institute for Leadership in Sustainable Development (Instituto para el Liderazgo en Desarrollo Sostenible--ILDES): promotes individual leadership for sustainable development * Peace Corps (USA): promotes volunteer working in association with the Mbaracayu Program. * American Field Service: provides professional volunteers to support the Mbaracay6 Project.. Helvetas: international non-profit organization that supports the Mbaracay6 Program through the transfer of environmentally amenable technologies.. The Nature Conservancy (TNC): a large, well-known organization that has played a leading role in the development of Mbaracayu and FMB.

35 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 35 National and local authorities * Local authorities: including the Canindey6 Government, based in Saltos del Guaira, and the Municipalities of Villa Ygatimi, Corpus Christi and Ype Jh6. * Ministry of Agriculture and Livestock (MAG): activities in the region involve several departments, including a) Direcci6n de Extensi6n Agricola (DEAG, Agricultural Extension Directorate); and b) Sustainable Rural Investments Pilot Project (PIRC), which being implemented by the MAG with World Bank support. This project will play a key role in the promotion of communal initiatives to alleviate poverty. * Ministry of Public Works and Communications (MOPC): connected with CAR) mostly through the Roads Department, since 45% of the roads leading to the Reserve are unpaved. * Ministry of Education (MEC): The area covered by the project is one of the most needy in terms of education in the whole country * National Institute for the Indigenous Peoples (INDI): responsible for the well being of the Indian population of Paraguay. * Rural Welfare Institute (IBR): oversees social aspects of rural settlements nationwide. * Peace Courts: Courts of Villa Ygatimi, Corpus Christi and Ype Jh6 have legal jurisdiction on RNBM. National University of Asunci6n (UNA): several ongoing and planned research projects (mostly in the areas of Forestry and Biology) are directly or indirectly related with the project, particularly in the areas of forest preservation and sustainable management. Stakeholder participation Project implementation will be formalized through the use of MOUs or similar instruments with local and international participants, ensuring long-term commitment of the relevant agencies and NGOs, beyond personal decisions of temporary officers. The project is designed to encourage informed participation in the management of the Reserve, the buffer zone, and the CAR] through promoting participation in decision making and new activities and projects aiming at the sustainable management activities of the entire CAR]. The communication strategy of the project will aim at a) information dissemination, and b) public participation in the decision making. Accordingly, the project will develop a Web page and a database of interested participants. XI. MONITORING AND EVALUATION PLAN Monitoring activities will include regular reporting on the activities related to each component of the project. Internal monitoring and evaluation will be conducted by the Honorary Council of the Mbaracay6 Reserve, including a mid term review and a final evaluation. Project reporting will follow standard World Bank procedures. Mbaracayu Project is included within the Strategic and Operational Plans of FMB and therefore all the management units will be included in the procedures manual for processes for the ISO 9002 (now known as ISO 2000), this meaning that any conflict in the achievement of the goals will be immediately detected and reported to the internal auditing procedures for the implementation of corrective measurements in search of the quality assurance. This reporting includes not only the

36 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 36 director of the project who is also the leader of the quality initiative at FMB, but also includes board members. A Scorecard for Mbaracayu Program will be developed based upon the successful output derived from the Scorecard for Mbaracayu under the Parks-in-Peril Program from The Nature Conservancy and USAID. This scorecard will be updated twice a year shared between the team and key stakeholders and this will give the FMB the opportunity to quantify the advances in the achievement of the project goals. Operational indicators were developed for each of the activities considered in the five general outcomes expected from this project. These indicators will be checked four times a year as part of the monitoring and evaluation procedures of this project. These indicators are shown in Annex IV, together with the expected impact. For community rural investment, FMB will develop a Implementation Manual in which not only general procedures will be established but also eligibility conditions will be outlined. XII. PROJECT CHECKLIST PROJECTACTIVITY CA TEGORIES Biodiversity Protected area zoning/management Buffer zone development Inventory/monitoring Ecotourism Agro-biodiversity Trust fund Benefit-sharing X X X X X TECHNICAL CATEGORIES Institution building Investments Policy advice: Targeted research: Technical/management advice: Technology transfer: Awareness/information/training: X X X X X ATTACHMENTS AND ANNEXES ATTACHMENT I: Information on the MSP Project Proposer, Fundaci6n Moises Bertoni ATTACHMENT II: Administration ATTACHMENT III: Performance indicators and expected impacts of the proposed activities. Annex I. Message from UNESCO to Mbaracayu Forest Biosphere Reserve

37 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 37 Annex II. Letters of support a. NGOs b. Research and academic institutions c. Others Annex III. 10th anniversary of Mbaracayu Annex IV. National Law 112/91 Annex V. Ecoregions of Paraguay (Map) Annex VI. The Mbaracayu Reserve and the Upper Jejui River catchment (Map) Annex VII. Deforestation in the Upper Jejui River catchment (Map) Annex VIII. Land Use (Map) Annex IX. Density of encounters with strangers (Map) Annex X. Community Work (Map) Annex XI. A monthly expected schedule (in Spanish)

38 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 38 ATTACHMENT I: Information on the MSP Project Proposer, Fundaci6n Moises Bertoni Fundaci6n Moises Bertoni (FMB) is a non-governmental, non-profit organization whose primary mission is to work towards socio-economic and sustainable development through the conservation of nature and the organized action of the population. After twelve years of intensive activity since its establishment in 1988, FMB has successfully created and managed many projects and programs that are steadily bringing Paraguay towards realization of this mission. Some 50 professionals, field technicians and volunteers make up the multi-disciplinary staff at FMB. Most of its' staff work in one of the three following departments: Biodiversity Conservation, Institutional Development, or Environmental Education and Policy. Administrated by a board, FMB operations are guided by regulations derived from its constitution, its strategic plan and by a manual of administrative procedures. FMB continually works towards consolidating trusts or endowments from various sectors to ensure continuing financial support for its projects. Over the last ten years, sixty percent of donations totaling US $10,000,000 have been directed towards capital investments (including the purchase of 57,715 hectare Mbaracayu Forest Nature Reserve), and forty percent has been used to cover operational costs and salaries. Previous funders have included USAID, The Nature Conservancy, Inter-American Foundation, IUCN, World Wildlife Fund, and various foundations, corporate and private donors. Present donors are the GEF (Global Environment Facility) and the French Global Environment Source (FFEM). Summit Foundation provided the seed money that made possible FMB in the international arena within the Climate Change Convention, given that Mbaracayu is one of the first examples in the world of joint implementation under a similar mechanisms of those proposed in the MDL-Kyoto Protocol. Some of FMB 's greatest achievements so far include the cooperative preservation of 40 private nature reserves (totaling 400,000 ha), the protection of a large section of the Interior Atlantic Forest within the Mbaracay6 Nature Forest Reserve (RNBM), and conservation and protection of natural resources within the area surrounding RNBM. These achievements are largely based upon a strong outreach program with farmers and indigenous peoples in the buffer zone (280,000 ha). The outreach program focuses on the sustainable development of the area, includes services such as health education, infrastructure, technical assistance and environmental education and currently works with over 40 community-based committees. To further foster conservation goals, FMB also simultaneously runs a comprehensive range of programs that address social, political, economic and ecological considerations. These include an environmental education and training program, a work program encouraging communication with decision-makers at the national level, an international training program in management for ENGO's (Centro Internacional de Capacitaci6n de Organizaciones Amientalistas, CICOAM), an Environmental Law Institute (IDEA), the Foundation for Sustainable Development of the South American Chaco (FDSC), and creation of an NGO for bird conservation (Guyra Paraguay). Summary of project leaders: Nancy Cardozo Nancy Cardozo is the Executive Director of Fundaci6n Mois6s Bertoni. Ms. Cardozo received her Electromechanical Engineering degree from the Universidad Nacional de Asunci6n and is a master's degree candidate in Business Administration from the Escuela de Administracicn de Negocios de Educacion Superior (EDAN). As general manager of the Center for Business Cooperation and Industrial Development (CEDIAL) from 1993 to 1998, she helped develop the UNDP Subcontracting Exchange, a database dedicated to the trade of industrial components. In conjunction with the European Commission and Interamerican

39 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 39 Development Bank, Ms. Cardozo has worked on various projects designed to support small and medium size Latin-American companies including product promotion, commercial agreements, technology transfers, and joint-ventures with European companies. Since its premier in 1995, Ms. Cardozo has led the business meetings at the annual EXPO Fair of Paraguay, involving more than 400 businessmen and women and including over 30 million US dollars in business opportunities each year. Alberto Yanosky Alberto Yanosky completed his doctoral degree in Zoology at the National University of Mar del Plata (Argentina), and holds a master's degree in Scientific and Technical Methodology at the National University of Entre Rios, Argentina. Since 1995, he has worked with an emphasis on research and biodiversity conservation at the Fundaci6n Moises Bertoni and is currently the foundation's deputy director and director of the Mbaracayu Forest Nature Reserve Project. Dr. Yanosky combines an interest in community and population ecology with the protection and management of natural protected areas and is involved in several governmental and non-governmental initiatives in the Southern Cone of South America on biodiversity and development. In addition to being a founding board member of three environmental NGOs, Dr. Yanosky has worked extensively on an international level as a consultant specializing in environmental impact assessment and NGO management, as a professor in environmental science and public policy, and as a member of several conservation institutions including Birdlife International and the IUCN Survival Species Commission. Further Information on the MSP Project Proposer Established in January 1988 as a non-governmental, non-profit organization, the Fundacion Moises Bertoni (FMB) has incorporated the mission "to work for sustainable, socio-economic development through the conservation of nature and the organized action of the people of Paraguay". For the new strategic planning looking towards 2005, FMB has maintained the mission with the vision of "FMB is a key actor in the conservation of nature and the sustainable development of Paraguay cooperating with the improvement of the population's quality of life". During these almost 14 years FMB has carried out different programs and projects, which have set us on the path towards achieving FMB ambitious vision. The following pages summarize FMB's structure, programs and achievements. ADMINISTRATION FMB's maximum authority is the Assembly from which a board of directors is composed. These boards members are honorable and outstanding member of the national and international Society. The boards meets monthly and minutes of the board's meetings can be checked at FMB headquarters is Asunci6n. Further information of the board and the organization's structure and behavior can be found in the organization's constitution. One of the first requirements identified for the operation of FMB was the formation of an administrative system. Over 13 years, FMB has built an efficient, effective and transparent administration, that has the following strengths: all operations are guided by a strict system of internal controls, rights and obligations, and a manual of administrative procedures which is agile and in accordance to the necessities of the moment and of the internal control system. Annual External audits practiced by an independent international auditing company has supported FMB's fiscal years in its decade of existence. FMB's administrative capacity and experience allows it to support new NGO's that have been born within its framework. NGO's such as the Institute for Environmental Law, the Foundation for the Sustainable Development of the South American Chaco, the Ornithological Society of Paraguay for the Conservation of Birds, the International Center for Training in Management of Environmental NGO's (CICOAM*), and the Initiative for the Leadership in Sustainable Development.

40 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 40 As a non-governmental organization, Fundaci6n Moises Bertoni is subject to the regulations of law 125/92 that specifies the tax regime for non-profit institutions. The National Decree no from December 27, 1988 approves the constitution of the organization. FINANCIAL SELF-SUFFICIENCY Working within the parameters for sustainable development requires long term goals. With this in mind FMB searches for the support of its diverse projects and programs that are currently being financed and executed. FMB also works constantly to consolidate trusts or endowments in diverse sectors (such as social, economic and political) to ensure the continual movement towards its final goals. Achieving these goals will benefit the country and the world. Long Term Finances Financial proposals have indicated positive results. FMB now has an endowment or trust of $803,000 US that was donated by the rock group R.E.M., who visited Mbaracayu Forest Nature Reserve in January The AVINA Foundation has donated $1,000,000 US to FMB for the implementation of an Industrial Reconversion program. The donation will be made in several installments over a four year period. Interests and other incomes generated by loans or credits upon this sum will be returned to FMB. These loans or credits will be given to factories or industries interested in participating in industrial reconversion with the focus primarily on the metropolitan area of Asuncion. As an administrator of one of the most important natural reserves in the country, FMB in collaboration with The Nature Conservancy (TNC), has been endowed $3,200,000 US by the AES Corporation of the United States of America for the administration of the Mbaracayu Forest Reserve. This was done to promote conservation of forests. The program focuses on carbon sequestration as a way to mitigate the effects of the greenhouse gases. One of the components of FMB's mission is to achieve the participation of Paraguay's citizens. The organization is working to implement actions that would interest people at a local level, in order to link them to FMB and its mandate. The two identified methods of participation are volunteering services and/or providing economic support. With this, it is possible to continue the programs which will strengthen the institution as a whole. Other aspects to strengthen the organization include: fundraising, training of staff, publications, activities within the projects, and institutional communication- which is fundamental in these times. The "Friends of Nature" campaign, which is still in its infancy, was developed to gain financical support for the programs FMB implements. Today, this program has more than 200 members who annually donate 50,000 to 2,500,000 Guaranies. Corporate Investments Ten years of continued efforts have yielded results which have been recognized at local and international levels. FMB has become a key player in Paraguay's environmental community. Due to this reputation, FMB has been asked to collaborate on many environmental projects which require international funding. In mid 1997 a Unit of Special Projects was created with intentions of broadening the participation of our professionals for the future actions for fundraising. The Unit consists of methods to carry out studies or assessments on environmental impact, ecological evaluations, management plans and project management principles. This unit of projects would be incorporated at the local level with the purpose of creating efficient and committed services that the society needs. It will also create new sources of employment in loyal and competitive conditions. The money or resources obtained by these means will be reinvested in whole to other FMB programs and projects, which focus on the conservation of nature and the participation of citizens.

41 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 41 The business sector recognizes FMB as the leader in the environmental field, at both the international and local level. Since 1994 several divisions within in this sector initiated actions or campaigns that would allow them to be identified with FMB's goals. This would then give their products or brands an added value that society is demanding. A program on ecomarketing was developed, which would be mutually beneficial to both, the society and the business sector. To promote this program, conscious campaigns that primarily involved the mass media or specific events were designed. These actions give an economic return to the institution which is invested in the same goal of increasing participation of the community. Companies such as London Import for the product AMBROSOLI, the automatic banking system DINELCO, Pizza Hut and Shell (for their SELECT shops) are just a few of the many companies which have incorporated these programs. FMB has created two profit companies and participates in the shares of these two companies: CAVYSA (*) (Villa Ygatimi Gathering Center) and LICAN - Paraguay. The first, CAVYSA, is a commercial company, which operates in the buffer zone of Mbaracayu Forest Nature Reserve. The company focuses on gathering and processing products that are found in the area. CAVYSA has two factories, a Yerba Mate processing plant and a Manioc processing plant. FMB was able to build these factories with a loan of $500,000 US, given by the Interamerican Development Bank. This loan is to be paid over 40 years with an annual interest of 1% (in Guaranies- Paraguay's currency), with a 10 year grace period. The second company, LICAN-Paraguay, is affiliated to the program which focuses on industrial reconversion. The funds for this company have been donated by AVINA Foundation ($1,000,000 US). LICAN- Paraguay works to process animal blood in order to produce a powder form of the blood, and plasma. This process aids in eliminating an important source of pollution (animal blood and fluids that are being dumped) in the city. ENVIRONMENTAL EDUCATION & TRAINING Education is a necessary action for FMB to achieve its mission. In 1992 the United States Agency for International Development (USAID) was presented a proposal by FMB for the implementation of an environmental education project in Paraguay. This proposal was accepted, and constitutes the first program of this kind in the country. To further develop the goals of the environmental education program, in 1995, a survey of environmental opinions and information was designed and implemented. The results were presented to the public using mass media within the country. This survey encouraged the development of the environmental education campaign "It Depends On Us". This campaign was designed to shed light on the important environmental issues in the country. The environmental education program trained more than 150 people (teachers, local leaders and youth) about the environment and issues that pertain to the environment. These people were then equipped with knowledge and tools required to educate members of their community. This program acts as a consultant for different municipalities on topics related to environmental education. It also actively participates in implementing educational reforms which consider environmental issues a principle axes. FMB has a very complete Environmental Documentation Center that is open to the public. The center holds over 4,200 books and 900 magazine titles. It also has-the first environmental video library in the country, with more than 100 documentaries and movies that focus on the environment.

42 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 42 CONSERVATION AND MANAGEMENT OF ECOSYSTEMS The Mbaracayu Project In 1992, FMB and The Nature Conservancy (TNC), purchased 57,715 hectares of the area that remains in the Interior Atlantic Forest. This area is located in the eastern region of Paraguay. It is one of the most diverse ecosystem on the continent, as well as one of the most threatened at the global level. This area was designated Mbaracayu Forest Nature Reserve, and is recognized by the government of Paraguay under the law 112/91. Today, because of 5,083 hectares bought by TNC's Adopt an Acre Program and the donation of another 1,202 hectares by the Institute for Rural Welfare (IBR*), the reserve consists of 64,405.7 hectares. The Mbaracayu Forest Nature Reserve is maintained and administered by FMB. It is considered one of the best managed protected area in the country. The knowledge of biodiversity in the Mbaracayu Forest Nature Reserve is the most complete, in comparison to other reserves within the country. For three years the reserve was included in the Parks in Peril Program, which was created by TNC and USAID. After this time it graduated, and is now considered a consolidated area by this program. The Mbaracayu Forest Nature Reserve has the first Research Center to focus exclusively on the biodiversity of the Interior Atlantic Forests of Paraguay. It also has the necessary infrastructure for effective management and protection. This is a unique conservation project in this country. It is as well as the first and only program (so far) that has initiated an outreach component to the work that it is doing in the buffer area. This outreach program concentrates its activities on the sustainable development of the area and includes services such as health education, infrastructure, technical assistance and environmental education. As of now FMB has been working with more than 40 committees, this also includes indigenous Ache and Guarani committees, for small scale production. Management of Other Ecosystems In conjunction with national and international institutions, FMB has created an Action Plan for the protection and management of the Interior Atlantic Forest. This ecosystem is shared by Paraguay, Argentina and Brazil. FMB and the Foundation for the Sustainable Development of the South American Chaco (FDSC*) are developing strategies for the conservation of the Great South American Chaco. The Institute for Rural Welfare (IBR*) (with the support of the governmental expropriation) approached FMB for input on the planning and administration of approximately 103,000 hectares in the Concepci6n area, which is to become an ecological reserve. This agreement, to solidify the cooperative effort between the institutions, was signed in June An agreement was signed between Yacyreta Binational Entity and FMB, to initiate a cooperative effort in carrying out studies and actions. This work would allow the implementation of protected wildland area regulations: Yabebyry, the Yacyreta Island and the islands down river of the dam. Also for the management of the Aguapey Stream watershed and the resettlement of San Miguel Potrero. The agreement also leaves room for FMB to elaborate on the administration and management plan that are being carried out at the Yacyreta Wildlife Reserve. Private Nature Reserves In 1989, only 2.79% of the total area of Paraguay had protected wildlife areas. In 1989, FMB began a program on private natural reserves. This program focuses on the participation of land owners interested in protecting natural ecosystems and in developing models of sustainablity. In 1994, the National Systems of Protected Areas (SINASIP*) which also includes a new category under the private

43 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 43 domain, was created with goals to protect 9.8% of the total surface of the country. As of now more than 40 properties have been studied, which totals approximately 400,000 hectares of land, in the most diverse and the most threatened ecosystems of the country. It is not mandatory for nature reserves to be at a particular level to be incorporated into the program. Most reserves are at different stages during implementation of the program. Ypeti (Department of Caazapa), Mamorei (Department of Paraguari) and Tapyta (Department of Caazapa) are private natural reserves that have been implemented into the program. Support of the National Parks Directorate FMB provides technical and financial support to the National Parks and Wildlife Directorate. This support aids with the design of a strategic plan for the implementation of natural systems in the protected areas of Paraguay. There is also a focus on writing projects that FMB and the Scouts Association of Paraguay work together to assist with the maintenance and management of protected areas through the volunteer program (PAVANP*). In Ybycui National Park each summer volunteers work with the local Rangers to assist with projects such as environmental education, garbage collection, first aid, interpretations of nature trails, etc. These activities are carried out for and with the visitors to the park. FMB assists in the publication of scientific material such as the Red Data Book of the Paraguayan Fauna. POLICES OF PUBLIC INTEREST A national approach is required in order to implement and promote of an efficient environmental legislation, that fits the needs of the nation's conservation issues. In 1995, FMB initiated the first program to work with decision makers at the national level (Executive Power, Legislative Power, and Judicial Government). This provided an arena for transmitting, sharing and exchanging experiences on the topic of conservation and sustainable development. The national chapter of Agenda 21 contains the agreed positions of the governments that participated in the Rio '92 Earth Summit. The magazine "Legislando Educativo" was published in conjunction with the Deputy Chamber of the National Parliament. This was published with the intention of updating people on legislation regarding environmental laws and their ruling within the country. This publication aims to implement an executive reform. RESEARCH FMB carries out scientific research primarily in the Mbaracayu Forest Nature Reserve. This includes the inventory of flora and fauna (mammals, birds, reptiles, amphibians and arthropods), socio-economic and anthropological surveys and participatory rural appraisals with farmers and rural indigenous communities. From the environmental education program, the first national survey of environmental opinions was designed, implemented and published. The results are available at the FMB Documentation Center. In more than 30 potential private nature reserves, rapid ecological assessments were developed. Several scientific research projects have been encouraged and supported by FMB. These projects are lead by universities, institutions and individuals, all at local and international levels. Research is conducted in diverse regions of the Paraguay, but primarily in the Mbaracayu Forest Nature Reserve. A committee for scientific affairs was created, it is made up of FMB board members and staff. The objective of the committee is to define guidelines and policies for research that is being practiced. TRAINING TO NGO'S International Center for Training in Management of Environmental NGO's (CICOAM *) In 1993, FMB created CICOAM as a response to the need for strengthening and reinforcing the management capacity of environmental. More than 100 directors of NGO's were trained on subjects such as planning, organization, project evaluation, total quality, management of change, fundraising, and budgeting. These NGO's represent eleven countries in Latin America (Bolivia, Brazil, Colombia, Ecuador, Uruguay, Peru,

44 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 44 Paraguay, Venezuela, Argentina, Chile, and Panama). CICOAM carries out its training course annually in August. The course consists of three intensive and interdependent modules. As part of its training plan, FMB encourages, assists and strengthens other NGO's that work at the local level. This aids to decentralize and increase the potential of sustainable development activities in Paraguay. Environmental Law Institute (IDEA *) In 1996 the Environmental Law Institute was created to provide legal assistance by elaborating on policies, consulting and training. Its goals are: - promote the development of the sustainable society model by following the framework that is determined by regulations and laws. - incorporate fundamentals of ecology and democracy into the public interest policies. - strengthen the development of the national environmental system Foundation for the Sustainable Development of the South American Chaco (FDSC *) Created in 1996 with the mission "to promote the sustainable development of the South American Chaco in harmony with the conservation of natural resources" Guyra Paraguay: Conservation of Birds Guyra Paraguay (created in 1997) works for the conservation of Paraguayan birds and their habitats, through the knowledge and the decided action of the people of Paraguay. Natural Land Trust Created in 2000 by IDEA, FDSC, Guyra Paraguay and Fundaci6n Mois6s Bertoni, this first land trust of South America is devoted to the creation and implementation of private initiatives in conservations, particularly conservation easements and to promote the establishment of environmental services as an incentive to private conservation. HUMAN RESOURCES The institution has an administrative board made up of 15 members. They meet on a montly basis to analyze and define institutional polices. The organizational structure of FMB is also composed by 40 associates who meet with the board members annually in a general assembly. This meeting is for the evaluation, and acceptance or refusal of the annual memory and annual budget. Since its creation more than 150 people have worked for the organization. At present 57 professionals (biologists, veterinarians, foresters, engineers, agronomers, communicators, administrative personnel, accountants, psychologists and sociologists) make up the multidisciplinary staff of FMB. In the area of internal training almost all the staff have had and still have the opportunity to take, at both the national and international level, courses to increase their knowledge in certain fields. These courses and seminars have been held in countries such as Costa Rica, Panama, Dominican Republic, Puerto Rico, Argentina, Venezuela, Chile, Mexico, United States of America, Brazil, Canada, England and Ecuador. Major supporters of Mbaracayu Program Following is a list of major supporters of Mbaracayu Program in Spanish version: DONANTES PROYECTOS ITOTALES U.S.A.I.D. Adquisici6n de la Reserva Natural del Bosque Mbaracayu 500, Individual Donations through 1,000, THE NATURE CONSERVANCY AES CORPORATION 500, l T o TA L S 2,000,000.00

45 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 45 AES CORPORATION Fondos de Fideicomiso para la Reserva Natural del Bosque 1,500, Mbaracayu Crecimiento del Fondo 2,251, TOTAL FONDO DE FIDEICOMISO MBARACAYU 3,751, Rentas de Fideicomiso RNBM -Programa de Conservacion y Administracion de la Reserva 498, Natural del Bosque Mbaracayu TOTAL RENTAS DE FONDO DE FIDEICOMISO 498, M BARACAYU R.E.M. Fondos de Fideicomiso para la Autosostenibilidad de la 600, F.M.B. Crecimiento del Fondo 239, TOTAL FONDO DE FIDEICOMISO R.E.M. 839, Inter-American Foundation (I.A.F.) Investigacion Socio-Econ6mica de manejo de la Reserva 27, Mbaracayu, Canindeyu TOTAL IAF 27, U.S.A.I.D. - Reforzar la capacidad operativa de ia Fundacion - Implementar Programas continuos de Conservacion - Apoyar la consevacion de Grandes Extenciones de Tierras 396, Desarrollo de la Educacion Ambiental 450, lmplementaci6n de Reservas Naturales Prvadas 764, Plan Maestro para Areas Silvestres Protegidas (SINASIP) 102, Parques en Peligro, protecci6n de la Reserva Natural del 649, Bosque Mbaracayu SUB TOTAL, U.S.A.I.D. 2,362, MacArthur Foundation -Apoyo para desarrollo de Tesispara establecimiento de una 10, reserva de la biosfera - Conservacion de Reservas Forestales en el Area de la Cuenca 565, Alta del Rio Jejui-Mbaracayu - Curso de Entrenamientos de Gerentes, CICOAM 235, SUB TOTAL, MACARTHUR FOUNDATION 810, Jonathan Sachs - Administraci6n y Protecci6n del Parque Nacional Defensores del Chaco 47, SUB TOTAL, JONATHAN SACHS 47, Programa de ADOPTE 1 ACRE -Cobertura de gastos de Viaje para recaudaci6n de fondos 6, The Nature Conservancy -Programa de Conservaci6n y Administracion de la Reserva 1,556, Natural del Bosque Mbaracayu SUB TOTAL, THE NATURE CONSERVANCY 1,562, Homeland Foundation Recaudaci6n de fondos para la F.M.B. 40, Apoyo al programa de Reservas privadas 15, SUB TOTAL, HOMELAND FOUNDATION 55, Tinker Foundation -Para el programa de autosuficiencia 10, Para Programa de formacion de Lideres 120, SUB TOTAL, TINKER FOUNDATION 130, Pew Charitable Trusts Para el programa de autosuficiencia 18, Curso de Entrenamientos de Gerentes, CICOAM 25, SUB TOTAL, PEW CHARITABLE TRUSTS 43,200.00

46 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 46 Embajada del Japon Equipamiento de la Estacion Biologica de la Reserva Natural 36, del Bosque Mbaracayu Construcci6n del Centro de Visitantes de la Reserva Natural del 36, Bosque Mbaracayu SUB TOTAL, EMBAJADA DEL JAPON 72, Weeden Foundation Adquisici6n de Tierras para los Indigenas Ache 25, Realizaci6n de la Evaluaci6n Rural Participativa en la Zona de 20, Amortiguamiento de la RNBM SUB TOTAL, WEEDEN FOUNDATION 45, Arbor Day Foundation Protecci6n de la Reserva Natural del Bosque Mbaracayu 36, Capacitaci6n Rural Participativa en la Zona de Amortiguamiento 45, de la RNBM SUB TOTAL, ARBOR DAY FOUNDATION 81, Banco Interamericano de Estudio para Evaluar el Impacto Ambiental indirecto en la Zona 143, Desarrollo de Influencia del Proyecto de Rehabilitaci6n y Pavimentaci6n de la Carretera Santa Rosa-Yby Yau. Creaci6n de mecanismo de Desarrollo Sostenible en la Cuenca 19, Alta del Rio Jejui Convenio de Financiamiento y Cooperaci6n T6cnica para la 582, Implementaci6n de un Modelo para el Desarrollo Sostenible en la Cuenca alta del Rio Jejui SUB TOTAL, BANCO INTERAMERICANO DE DESARROLLO 746, Avina Foundation Asistencia legal a Propietarios de Reservas Naturales Privadas 50, Apoyo para la Adquisici6n y acondicionamiento Local Propio de 100, la F.M.B. Programa de Mejora Continua y Calidad Total de la F.M.B. 69, Adquisici6n de Tierras para los Indigenas Ache 48, Proyecto Reconversion Industrial, Ciudad Sustentable 1,000, SUB TOTAL, AVINA FOUNDATION 1,267, GOBIERNO FRANCES-FFEM Proteccion de la Biodiversidad y Desarrollo Sostenible de la 196, Cuenca Alta del Rio Jejui SUB TOTAL, AVINA FOUNDATION 196, Comissi6n Europea Proteccion de la Biodiversidad y Desarrollo Sostenible de la 637, Cuenca Alta del Rio Jejui SUB TOTAL, COMISSION EUROPEA 637, Union Mundial para la Naturaleza Organizacion de Reunion de Bosques del Cono Sury 11, elaboracion diagnostico Nacional U.I.C.N. Proteccion de la Biodiversidad y Desarrollo Sostenible de la 72, Cuenca Alta del Rio Jejui SUB TOTAL, U.l.C.N. 83, P.N.U.D. Estudio para Evaluar el Impacto Ambiental indirecto en la Zona 7, de Influencia del Proyecto de Rehabilitacion y Pavimentacion de la Carretera Santa Rosa-Yby Yau. Promocion del Uso Racional de Recursos Naturales en varios 65, asentamiento rurales SUB TOTAL, P.N.U.D. 73, SUMMIT FOUNDATION Cambio Climaticos 60,000.00

47 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 47 SUB TOTAL, SUMMIT FOUNDATION 60, Museo de Historia Natural de - Inventario Floristico y Entomol6gico de la Reserva Natural del 202, Londres Bosque Mbaracayu SUB TOTAL, M.H.N.L. 202, Fundacion Neotropica Cobertura de gastos de viajes a seminarios organizado por la 2, Fundaci6n Neotropica Virginia Dwan Donaci6n de Terreno en la "Urbanizaci6n Las Casuarinas" 56, An6nimo Cobertura de Asistencia tecnica, gastos de viaje y gastos de 5, fortalecimiento institucional Word Wildlife Fund Inventario Biol6gico del Alto Jejui Mbaracayu 10, Jossie Smith Noyes Foundation Conservacion de Parques en Paraguay y Proveer pequenas 15, donaciones a grupos locales The H.John Heinz IlIl Charitable Trust Programas de conservacion en el Paraguay y formaci6n de 13, ONGs. Conservation Food and Health Para otorgar Asistencia Tecnica Financiera a Conservacionistas 5, Brian Sherwin Protecci6n de la Reserva Natural del Bosque Mbaracayu 5, World Nature Association and Elaboracion de Gulas de Parques Nacionales 2, New England Biolabs Foundation 0.00 W.Alton Jones Para solventar gastos de trabajos en el programa de Reservas 50, Privadas W.W.F. Mata Atlantica Desarrollo del Plan Tri-Nacional del Bosque Atlantico Interior 35, (BAI) W.W.F. Mata Atlantica Bosque Atlantico Interior 30, R.A.N. Bonnycastle-CAVENDISH Para solventar gastos de trabajos en el programa de Reservas 37, Privadas Emerald Canopy Construcci6n de la Estacion Biol6gica en la Reserva natural del 55, Bosque Mbaracayu Peter Hooper Estudios Biol6gicos en la estancia Criolla. Dpto. de Boquer6n 2, Chaco Birdlife Foundation Apoyo para la realizaci6n del V Congreso de Ornitologia 10, The Environment Foundation Estudio de plantas medicinales de la RNBM 12, Fundacion Vida Silvestre Argentina Realizaci6n del Taller Tri-Nacional del Bosque Atlantico Interior 9, (BAI) Resource Foundation Proyecto de foresteria y apoyo al desaroolo local de la zona de 10, la Rva. Mbaracayu Jardin Botanico de Ginebra Promover la difusi6n de las propiedades de las plantas 7, medicinales SUB, TOTAL VARIOS DONANTES 374, ' XkLOrTAl'F EUENTES INTERNACIONALMESM rv 1:5,967, Fundacion Moises Bertoni towards ISO 9000 standards The ISO standards The International Organization for Standardization (ISO) is a specialized international organization founded in Geneva in 1946 and concerned with standardization in all technical and non-technical fields except electrical and electronic engineering. Its membership extends to more than 80 countries, and each member is the national body "most representative of standardization in its country"--in Western industrial countries usually a private organization, such as the American National Standards Institute (ANSI) and the British Standards Institution (BSI), but in most other

48 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 48 countries a governmental organization. In Paraguay, the Instituto Nacional de Tecnologia y Normalizaci6n, commonly known as INTN is the representative organization. Standardization affects units of measurement; alphabetization and transliteration; specifications for parts, materials, surfaces, processes, tools, methods of testing, and machines; and even the form in which specifications are presented. Upon request, the ISO establishes international "technical committees" to investigate and resolve specific issues of standardization and publishes the results as "International Standards" (IS). Because of technological evolution, ISO standards are optimally reviewed (and, if necessary, revised) every five years. International Standards for Quality Assurance ISO 9000 is a set of five universal standards for a Quality Assurance system that is accepted around the world. Currently 90 countries have adopted ISO 9000 as national standards. When you purchase a product or service from a company that is registered to the appropriate ISO 9000 standard, you have important assurances that the quality of what you receive will be as you expect. The most comprehensive of the standards is ISO It applies to companies and industries involved in the design and development, manufacturing, installation and servicing of products or services. The standards apply uniformly to companies in any industry and of any size. Why does FMB need this certification? FMB has strengths and deficiencies but the organization is committed to a continued quality securement. FMB has begun July 2000 to practice the basic steps in gaining ISO 9001 Registration. FMB is seriously seeking registration, and understand in depth what the standard requires of an environmental and development organization. FMB (both the board and the staff) really know what the standard is and what it actually requires. Alternatively FMB people are taking courses that describes the standard and the registration process to fully understand the process in which the organization is involved. To determine the amount of effort required to comply will require assessing the maturity of FMB quality system. If FMB is already using detailed procedure documents, and there is a quality policy, if executive management regularly reviews reports of deficiencies and external/internal complaints, if the training needs are known for each job position, and as is known FMB has many of these things already achieved or in the process of being achieved, then FMB may be well on its way towards gaining registration. If FMB quality system is absent or immature, it will require much more effort to become compliant. This can be done by assessing it with external support once FMB understands the Standard, or FMB can hire a consultant or a registration agency to carry out a "pre-assessment." A pre-assessment is a matrix listing each area of the organization as a column, and each element of the Standard as a row. The cell entries can then show the applicability of the requirement to the area and the readiness of each area to comply. This will provide a graphic summary of the work that needs to be carried out. Designing and implementing the quality system to comply with the requirements of ISO 9001 will typically require writing a quality manual and procedure documents, creating a system to control distribution and re-issue of documents, designing and implementing a corrective and preventive action system to prevent problems from recurring, identifying training needs for most positions in

49 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 49 the organization, calibrating measurement and test equipment, training the people in the organization on the operation of the quality system, planning and conducting internal quality audits, attending to the other requirements of the Standard that FMB does not now comply with. ISO 9000 relies on a system of audits to provide assurance that the organization is meeting the requirements of the standard. Only a "third party registration agency" is accredited to issue a certificate attesting that FMB meets the requirements of the selected ISO 9000 standard. Although registration requirements vary, it is typical to have a "pre-assessment" followed by a "registration audit". At both the pre-assessment and the registration audit, a comprehensive audit of the organization is performed. This is security mechanism for GEF funding which may in turn result in a model for other NGOs in the world.

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51 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 51 FMB MATRIX STRUCTURE EXECUTIVE DIRECTION MBARACAYU PRIVATE INITIATIVES WATER PROGRAM CLIMATIC PROGRAM IN CONSERVATION CHANGE DEPUTY DIRECTION RESEARCH MANAGEMENT OF PROTECTED * AREAS PARTICIPATORY RURAL ENVIRONMENTAL EDUCATION PUBLIC POLICIES _ 4 4 SOCIOENVIRONMENTAL ISSUES * Z l I.7 _ ADMINISTRATION AND _FINANCES INTERNATIONAL FUNDRAISING LOCAL FUNDRAISING ** * * QUALITY AND HUMAN ~~~~~~~~RESOURCES * * * * COMMUNICATION L~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

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53 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 53 - ~Executive Director.. ll Program Coordinators Deputy Director >N neaina udasn Local fundraising Quality and Human Resources Communication & Instituitional lmaae Research Private Initiatives Participatory Rural Environmental Public Policie Socioenvironmental in Conservation Training Education issues

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55 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 55 ATTACHMENT III: Performance indicators and expected impact of the proposed activities OUTCOME ACTIVITY PERFORMANCE INDICATORS EXPECTED IMPACT Park The reserve is effectively The Reserve is in a strong onsolidated boundaries protected, the Park boundaries position to protect its Management are securely established, and borders in case if conflicts infrastructure for control is develop. improved and expanded. 2, Control In year one existing control Infrastructure infrastructure is expanded and improved 3. The current Management Plan is The Park Management Management reformulated, published, and and protection reaches Plan becomes operational. A Rapid optimal levels. Ecological Evaluation is completed and key information is available. A fire Management Plan is completed. 2. Control of 1, Law Local authorities receive training A substantial impact in External enforcement in environmental legislation Law Enforcement in the hreats CAR] 2, Education Paralegal volunteers are trained in Growing self-reliance of on Legal environmental legislation practices he local communities Matters 3. A public awareness campaign is The local population is Environmental implemented. The local aware of the RNBM and awareness Environmental Information Center values its importance and is expanded and improved signification 4. FM Radio A FM Radio starts to operate in A substantial increase in the area, focused on environmental education and Environmental awareness by the local community outreach Effective extension services are Pressure on the ustainability Improvement being provided to help farmers to environment is the buffer riteria of the existing manage sustainably their zone and the CAR] is dopted by the production properties, promoting agro- decreased private sector systems forestry practices 2. Alternative Alternatives for the existing Welfare of the local options production systems are available, population is improved. and demonstration plots Root causes of poverty implemented are attacked 3. Trade of Assistance is provided for the Greater competitiveness local products design and implementation of for local products, and improved pilot programs for cooperative better income for the commercialization of local local population. products

56 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) Mbaracayu Infrastructure at The Mbaracay6 Another source of income opens to Reserve has been enhanced and for the local community is tourism prepared for tourism. A specific available. Environmental Management Plan is available. education reaches large number of citizens from the whole country. 5. PIRC 10 demand-driven community Livelihood economies rural investments per year improved by 30 developed by local dwellers and communal rural groups supported in the second phase by impacting in adopting of he governmental MAG-WB Pirc Program technology environmentally-friendly and generating incomes based on the wise use of natural resources. 4. Integrated 1. Land-use FMB and the Paraguayan A pioneer initiative for Land use planning government agencies are working integrated land use planning and ogether in the design and planning in Latin America development implementation of a Land-use is initiated and becomes a Master Plan for the whole CAR]. regional leading case 2. Local Community-oriented development The local communities empowerment projects have been designed, increase their own sense managed, and evaluated using a of autonomy and selfparticipatory approach, mostly determination. hrough workshops and public meetings. 3. Restoration and protection The remaining forest Reforestation activities for the remaining forest patches in the CAR) are patches outside the Mbaracayu preserved and expanded. Reserve are in place, including The landscape structure demonstration plots. is improved. 4. Private Agreements with private The private sector is conservation landowners for implementing incorporated into onservation actions, including conservation activities in production alternatives that take the CAR]. Strong into consideration ecosystem incentives for forest ervices (particularly control of conservation and soil erosion, carbon sequestration, sustainable use are and conservation of genetic promoted through the resources).some pilot projects Certification System. initiated. A sustainability Certification System is created and accepted by all partners. 5. Ecosystem Natural resources services from An innovative imitative services he Interior Atlantic Forest and for valuation of he Cerrado identified and valued. ecosystem services is in Mechanism for Funds & Nature place. Even if Services identified in the process experimental, it can of generating incomes to local become a leading case in people committed to biodiversity the region, providing conservation. useful insight and experience.

57 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) CAR] A baseline inventory of present Availability of a baseline baseline CAR] environmental situation is inventory provides a point evaluation completed. A detailed database is of reference for available. comparing the effect of conservation initiatives being developed in the region Staff Training of the senior staff of the FMB has a highly trained Strengthened training Mbaracayu Program on new professional and capacity of developments and techniques operational staff that FMB concerning management and allows completion of all sustainable development of proposed goals and protected area is completed. targets. The impact goes Special emphasis was given to a) well beyond this specific the Social and Anthropological project, allowing FMB to area, with the creation of a Social increase its activities and Anthropology unit in the FMB b) influence regarding training of the project operational environmental matters in team on issues concerning natural Paraguay. resources management, c) training exchanges and apprenticeships for Rangers of the Mbaracayu Reserve. 2. Equipment FMB is adequately equipped with FMB can provide strong GIS and computing hardware support for technical activities, particularly those related with landuse planning and baseline inventories 3. Outreach A web site for the Mbaracayu RNMB receives increasing Program is in place. The RNBM is visibility from both the one of the key research sites for national and international the Interior Atlantic Forest. audience. Opportunities Results from the past and ongoing for Environmental research are published and Education actions are available. greatly expanded. 4. Long-term The long-term strategy for the FMB improves its capacity strategy Mbaracayu program has been and vision for dealing discussed and delineated. with the new challenges and problems arising in the Mbaracayu region. 5. Watershed The Watershed Management Strongly enhances and Committee Committee for the CAR) is in support the long-term place and actively engaged in goal of achieving developing a regional, integrated integrated land-use policy for land use and planning for the CAR). catchments management Becomes a leading case in Paraguay.

58 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 58 ANNEX I Message on the occasion of the Joint Conference UNESCO-Paraguay/Fundaci6n Mbaracayu/ Fundaci6n Moises Bertoni 6 December 2000 by Peter Bridgewater Secretary, Man and the Biosphere (MAB) Programme, UNESCO It is with great pleasure that I convey to you the congratulations of UNESCO's Man and the Biosphere (MAB) Programme on the approval of Reserva de la Biosfera "Bosque Mbaracayu", the first biosphere reserve in Paraguay. The decision to approve this new biosphere reserve was made by the MAB International Coordinating Council at its 16 th session at UNESCO Headquarters in Paris last month. With the addition of your Biosphere Reserve, the World Network is now made up of 391 sites in 91 countries. I should like to comment on some special features of the Reserva de la Biosfera Bosque Mbaracayu, which makes it such an excellent addition. First, it is a living demonstration of the commitment of the Paraguayan authorities to the ideals of Agenda 21 and the Convention of Biological Diversity on conservation and sustainable use of biological resources. Biosphere reserves were conceived almost 30 years ago, long before the word biodiversity was used, or the ideals of sustainable development discussed. Yet Biosphere Reserves are, in fact, pre-adapted to help countries meet their international obligations in these domains. Also, it is now being realized that biosphere reserves can help countries counterbalance some of the negative effects of globalization, for example by emphasizing a long-term approach to land and water management, by generating benefits for whole communities, and by fostering partnerships. This role was embodied in the "vision" of the Seville Strategy for Biosphere Reserves, adopted in 1995, which stated that biosphere reserves are to become "theatres for reconciling people with nature, to bring the knowledge of the past to address the needs of the future and to demonstrate how to overcome the problems stemming from the sectoral natures most institutions". A second remarkable feature of the Reserva de la Biosfera Bosque Mbaracayu is of course the site itself. As a Paraguayan continental arm of the Atlantic Forest, it represents one of the biologically richest and perhaps most fragmented ecosystems of the world. It is home to indigenous groups who are the original occupants of this region. This natural and cultural heritage is invaluable. I commend the Paraguayan authorities on their foresight to establish this "nature reserve with a human face" and to the Fundaci6n Moises Bertoni and the Fundaci6n Mbaracayu on their work to plan and manage this site along the lines of a biosphere reserve, even before it was to be considered as being designated as one. Thanks to this wisdom, the World Network of Biosphere Reserves is increasing in biogeographical coverage and in cultural diversity, making an important step forward in the original goal of biosphere reserves to conserve representative samples of the world's major ecosystems. I should also mention that the designation of the Reserva de la Biosfera Bosque Mbaracayu is the result of a remarkable process of networking and personal leadership. Paraguay was absent during most of the history of the MAB Programme. I acknowledge the valuable efforts of Mr. Javier Castroviejo, Chairman of MAB Spain of former Chair of the MAB International Coordinating Council, for having stimulated this effort of the

59 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 59 Paraguay MAB National Committee. I note the National Committee was created in September 1999 under the auspices of the Sociedad Cientiflca del Paraguay, with the backing of the Sub-Secretary of State for Natural Resources and the Environment and the UNESCO Offices in Asunci6n and Montevideo. The Ibero-American network meeting in the Galapagos Islands in November 1999, and a key meeting of biosphere reserve specialists of the MERCOSUR region held in Brazil in June this year, provided the vision and the energy which has enabled Paraguay MAB Chair Arq. Beatriz Chase to prepare an excellent biosphere reserve nomination for Bosque Mbaracayu in record time. It is this process of information sharing and technical support through the regional networks which I find very impressive. It testifies to the usefulness of working through regional networks of biosphere reserves, where experience in tackling similar problems can be shared and where the question of representative coverage of biosphere reserves can be best addressed. The official biosphere reserve certificate, signed by the UNESCO Director-General, is being prepared and will be sent to you shortly. I should like to congratulate all the persons concerned in setting up and running the Reserva de la Biosfera Bosque Mbaracayu. My only regret is that I cannot be with you to see the Reserve itself today - but perhaps this will be an imperative for me to visit Mbaracayu! Congratulations again, and I look forward to our cooperation continuing to flourish in the years to come.

60 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 60 ANNEXII LETTERS OF SUPPORT NGOS Research and Academic Institutions Others

61 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 61 ANNEX III TEN YEARS OF MBARACAYU CONSERVATION AND DEVELOPMENT: A SUCCESSFUL MODEL IN EASTERN PARAGUAY INTRODUCTION An international agreement, the "Agreement to Establish and Conserve the Mbaracayu Forest Nature Reserve and Surrounding Basin", was signed on June to give legal backing to the protection of the Mbaracayu Reserve. The signers of the agreement were the Government of Paraguay through the Ministry of External Relations, the Ministry of Agricultural and Livestock and the Ministry of Economy, the United Nations' representative in Paraguay, The Nature Conservancy, and Fundacion Moises Bertoni. The agreement was subsequently ratified in 1991 by Paraguayan Law 112, which created the protected area of the hydrographic basin as well as a reserve of multiple use within it. The Upper Jejui River Watershed encompasses roughly 300,000 hectares was declared a Biosphere Reserve by UNESCO in the year 2000, the first of its kind in Paraguay. SOCIETY INVOLVEMENT The Mbaracayu Forest Nature Reserve, today extending over 64,405.7 hectares, protects one of Paraguay's richest areas in natural resources and provides the ancestral inhabitants of this forest habitat, the indigenous Ache, with land for their hunting and gathering needs. Since its inception the project has involved the local and regional public in the management of the area's natural resources, relying on three principles of sustainable development: democracy, socio-economic well-being and nature conservation. The Mbaracayu Project has received financial and logistical support from different sectors, international and local, for the consolidation of its efforts. It is estimated that the financial resources so far applied to the Mibaracayu program amount to more than 15 million U.S. dollars. It is important to emphasize the participation and support of the regional and local communities, such as the Government of Canindeyu (the department within which the Reserve is located), the Municipalities of Villa Ygatimi, Ype Jhu and Corpus Cristi, the Commission for the Defense of Natural Resources, the Indigenous Communities settled in the area of influence, various area schools and many other organizations. These institutions and public action groups unified efforts and worked with Fundacion Moises Bertoni to further the principles of sustainable development for the benefit of present and future generations. SOME PRELIMINARY PRODUCTS OF SUSTAINABLE DEVELOPMENT Between 1988 and 1991, during which much low profile work was done to purchase the original 57,700 hectares, and since 1991 the Mbaracayu project has achieved promising results. * Maintenance of Ancestral Lands. Through the implementation of the project and the purchase of the land today known as the Mbaracayu Reserve the environmental conditions of the area have improved and become better managed. Two indigenous communities of roughly 600 members use the area for hunting and gathering with traditional weaponry, able to continue their ancestors' way of life. * Medical Attention. Three health posts in three communities have been repaired or constructed and 12 health workers have been capacitated to offer medical assistance to the zones farthest from the principal Health Center. Specialized doctors have been sent to attend the most distant communities.

62 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 62 * With the support of the OPS and the Ministry of Health, more than 100 cases of tuberculosis are being treated in the Ache indigenous community. * An ambulance, which transports an average of 100 patients per year, has been provided for the watershed area. * Since 1999 there is a permanent medical professional in the area. * Health posts are being built in every community of the Watershed. * Three of the program's vehicles are at the service of the community. They offer transportation services as well as emergency medical transport, tending to roughly ten life threatening cases a year. * The Health Centers with the use of the program's vehicles carry out an annual vaccination program in the communities. * Medical attention to the infant population has increased by between 40 and 90%. * Infant and neonatal mortality has been reduced by 90%. * Potable Water Supply. In collaboration with the Villa Ygatimi community (3000 people) a network of potable water was implemented. Colonia Tendal (200 people) and the indigenous community of Arroyo Bandera (120 people) have also benefited from potable water and infant mortality in the area due to diarrhea and dehydration has reduced by 50%. * Bridges and Roads. With our own resources and funding from the Ministry of Public Works and Communication we purchased the necessary road signs to guide visitors to the area (Curuguaty and Villa Ygatimi) and to the Mbaracayu Reserve. Three bridges have been built and 60 kilometers of road have been opened and maintained, benefiting more than 200 families. These have promoted contact between smaller and larger centers and allowed the extraction of products from indigenous and small farmers communities. * Land Titles. With the cooperation of area government more than 100 farmers have been able to attain land titles for lots they had settled on near the Mbaracayu Reserve. We were also able to annex 300 hectares of land to the indigenous colony of Arroyo Bandera to allow it direct access to the neighboring Mbaracayu Reserve. * Formal education. The program contributed 5% of the construction costs of area schools and assists regularly with them, also offering workshops and directed practices at a ratio of 120 hours/professional/year. * Rural Electricity. Electric power lines now extend 53 kilometers to reach the Administrative seat of the Reserve and the neighboring colonies. This benefits a total of 347 families. The impact electricity has had in the area is most noted in the refrigeration and, therefore, conservation of perishable foods and in the access to television as a new source of information. The program maintains the electrical network in the area three times per year. * Temporary Employment of Local Human Resources. The program hires local labor from the influence zone for diverse jobs such as construction, maintenance, electrical work, mechanics, and plumbing. These employment opportunities contribute $ per month to the local economy. We also hire young workers for temporary work in scientific capacities, providing them with pertinent training. * Permanent Employment of Local Human Resources. The program has 32 permanent employees, comprising Forest Rangers and other personnel associated with the Reserve, from the nearby communities who make an average of $3000/year. They all have health care benefits and with the income they receive many of these employees now have refrigerators, ovens, televisions, motorcycles and, in 70% of the cases, VCRs. With many of their spouses able to work on their properties outside the Reserve they have more financial resources to sustain themselves with. * Support from the National Police. The National Police has stationed personnel in the area to specifically protect the natural resources. This has improved quality of life for area inhabitants by offering a measure of security in one of Paraguay's most conflictive zones. The presence of the National Police has established stronger ties with nearby settlers and landowners, offered protection and further support for the Reserve's

63 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 63 forest rangers, improved relations with local authorities and has increased patrolling of the area (patrolling an average of 800 km per year.) + Visitors. Between 1996 and 1997 the Reserve received student and teacher visitors, 281 and 352 people respectively. The number of visitors and prospective visitors to the Reserve continues to increase. The reception of visitors to the area is a resource as well in that it promotes community involvement and cooperation to the Reserve's benefit. * Production Committees. There are 38 agricultural committees that represent 430 small farmers families and an additional 140 families from the Guarani and Ache indigenous communities (totaling 570 families.) There are also two development commissions in Villa Ygatimi, with 22 families, and health commissions in Villa Ygatimi, Guyra Keha, 11 de Septiembre and Maria Auxiliadora. These groups work in collaboration with the program to attract aid to the zone. * Production. The agricultural committees and development commissions have improved agricultural production in the area. They have introduced techniques appropriate for the small producer, including diversification and more efficient use of farmlands. * Eleven area communities have cultivated in the last year 1030 hectares of manioc, 208 ha of bean, 31 ha of pea, 191 ha. of peanut, 782 ha. of corn and 95 ha. of soy. * Five communities have raised 6,200 birds, 164 cows, 36 horses and 236 pigs. * Twelve communities have created 401 family plots and 166 fruit orchards. * Six communities have created 11 yerba mate nurseries. These produce a total of 120,000 seedlings to enrich roughly 120 hectares of native forest. * Five communities have planted six citric nurseries/orchards, producing grapefruit, orange, and tangerines. The output covers 60 hectares of land, or 250,000 grafted plants. * Eight communities have contributed to the regeneration of 137 hectares of natural forest. Roughly 101 hectares of native forest have been refurbished and 980 hectares of forest are under management. * Six communities have set up 188 beehives for the production of 2760 liters of honey annually. The indigenous communities produce honey for consumption while the small farmers communities direct 80% of their honey production for market. * 10 Participative Rural Evaluations (ERPs) and Diagnosis (PRDs) have been conducted with >500 participants. * More than 100 talks and training workshops for production and organizational strategies have been carried out. A total of 2,000 people from the Upper Jejui River Watershed have participated. * With the government's support, 30 technical electricians have been trained. * Gender Issues. Fifteen women's committees, 12 small farmers and three indigenous, comprising 105 women have combined efforts in various production enterprises. They raise birds and pigs, cultivate ornamental plants and essential products such as soap and bread and cooperate in certain small businesses. * The Program's Largest Urban Center: Villa Ygatimi. Support is given to the Youth Commission in the town as well as to the Health Commission and Health Post. Other assistance is given for the town's improvement: assessment for tree-planting in the plaza, support for the Municipality, orchard contests, urban planning, working coordination with authorities promoting selfinanagement, and periodic environmental education workshops for up to 3000 people. The program also assists in the upkeep of 90% of the town's green spaces. + Agro-industrial Plant. An agro-industrial plant has been installed in Villa Ygatimi for the gathering, processing and marketing of five products: manioc, yerba mate, honey, essence of petit-grain and selfcomsuption warehouse. The proximity of the agro-industrial plant benefits the entire High Basin population. With census information collected, the program knows the production output of the different area residents and correspondingly directs them in the use of the agro-industrial plant.

64 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 64 Mbaracayii: Ten Years Later On December 6, 2000 the Mbaracayu Foundation and Moises Bertoni Foundation presented The Mbaracayu Forest Nature Reserve and the Upper Jejui River Watershed to UNESCO for. In November 2001 at UNESCO headquarters in Paris, the 16h session of the MAB International Coordinating Council approved the Mbaracayu Biosphere Reserve. As an extension of the Atlantic Forest, this Biosphere Reserve is a fragmented ecosystem with one of the greatest levels of biodiversity. It is also the traditional habitat of nearby indigenous communities and provides them with their livelihood. The Reserve's designation as a Biosphere Reserve is a result of effective leadership and strong teamwork. Mbaracayii is now part of the global network of Biosphere Reserves. The Mbaracayu Biosphere Reserve culminates a ten-year process. In 1991 the international agreement to create the Mbaracayu Forest Nature Reserve and Rio Jejui Basin was signed by the Government of Paraguay, the United Nations, The Nature Conservancy and Fundacion Moises Bertoni. Paraguayan Law 112 ratified this on December 9, This year marks the Mbaracayu Project's ten years of existence. Fundacion Moises Bertoni is promoting this year as "Mbaracayu's Year" through several events, mainly scheduled for the second part of the year. Numerous figures involved in conservation and development nationally and internationally are coordinating efforts to celebrate Mbaracayu's recent designation as Biosphere Reserve by UNESCO. Paraguay's Ministry of Foreign Relations, the government of Canindeyu and Fundacion Moises Bertoni are developing the Mbarcayu Forum to integrate the region in the Mbaracayu Biosphere Reserve plan. The Government of Canindeyu and property owners contiguous to the Reserve are obligated by international compromise and legal framework to grant regional and national importance to the Mbaracayu Highland Ecosystem. The Mbaracayu Forest Nature Reserve currently comprises hectares. It is Paraguay's bestprotected nature reserve and has been designated a key area in the world for the conservation of threatened bird species. The Mbaracayu Foundation owns the Reserve and Fundacion Moises Bertoni efficiently manages it. An international agreement created the Reserve and Paraguayan Law 112/91 ratified its legal framework. The site is a model of conservation and community participation, promoting sustainable development along with environmental protection. Both the indigenous Ache who traditionally lived off these lands (the last group to abandon the forest left in 1978) and the indigenous Guarani, small and large farmers, participate in the Reserve's mission. The Country Action Plan led by SSERNMA included the Mbaracayu Forest Nature Reserve (RNBM) as a priority conservation area. The SINASIP National Report (1998), also considers it a priority area of consolidation. Internationally, the RNBM meets the conditions of IUCN Category II Reserve (National Park). Tri-nationally, the RNBM is part of the green corridor potentially linking protected areas in Argentina, Brazil and Paraguay. The Interior Atlantic Forest (BAI) is one of the prime ecosystems of Paraguay and the region and the Paraguayan Government is committed to its protection. Deforestation and Land Use Change in Eastern Paraguay Mbaracayui is considered the largest of the protected areas in Eastern Paraguay and the largest site in Paraguay for the conservation of wild ecosystems and their biodiversity. Antropic pressures have seriously

65 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 65 degraded the Atlantic Forest wherein lies Mbaracayu, showing a remainder of less than 13% of the original coverage, only 2% of which remains in pristine conditions. Original coverage of this ecosystem was 85% of the whole eastern region, or 93,888 km 2. By 1994 over 87% had been devastated, with most of the deforestation having taken place in the 1980's. The RNBM is at the center of the Mbaracayu Program, which was created in 1988 to salvage one of the last remaining forests in Eastern Paraguay. The RNMB constitutes an important link between other smaller protected areas. Extensive Interior Atlantic Forest (BAI) and other habitats such as open areas of Cerrado and grasslands cover the Reserve's surface. The RNBM provides habitats for primary ecosystem fauna and for this reason is one of the few tracts of land with a representative macro fauna. The presence of tapirs, jaguars, bushdogs, harpy eagles and other dominant and "umbrella" species are good indicators of Mbaracayul's habitat quality. The Reserve houses 85 species of mammals and 420 birds have been registered until now. Of the 1,021 endemic bird species identified in the BAI, 48 (47%) have been registered in Paraguay, most of them exclusively within the Reserve. It is estimated that more than 2,000 species of vascular plants exist in the Reserve, a thousand of which are already known along with more than 130 species of ferns. In the entomological realm, about a thousand species have been detected in Mbaracayiu, which is also the most important place for the preservation of butterflies in Paraguay due to the great variety it shelters. The deforestation and land-use tendencies in Paraguay are alarming. Paraguayan and foreign agroindustrialists continue to encroach upon the forest, harvesting lumber and converting the land for agriculture and pasture. Due to the disappearance of forest area surrounding it, Mbaracayiu is rapidly becoming an isolated ecosystem. The Reserve and its buffer zone are becoming an island of trees in a sea of deforestation. The risk of more loss of habitat also affects the indigenous groups near the Reserve. The indigenous Ache successfully gather and hunt with traditional weaponry inside the forest for their sustenance. Urgent measures are therefore needed to conserve the biological diversity and protect the extant pristine remnants of native forest. Providing land to native people and security to the core area. Through legal appropriation 10,000 hectares of land west of the Mbaracayu core area were designated for the Ache Chupa Pou Indigenous Community. Three hundred hectares of land were purchased for the Arroyo Bandera Ache Community, previously separated from the Reserve, to provide contiguity with the Reserve. South of Mbaracay6 lie 4,600 hectares of largely intact and pristine forest land belonging to a Chinese citizen. These lands are of utmost importance to the viability of threatened species in the Reserve area and affect the fundamental ecological processes in Mbaracayu as well as the indigenous Ache communities reliant on these processes. The Chinese citizen's property is particularly important for the bamboo lands that extend from Mbaracayu's southern zone into it. FMB has already begun the process to obtain this land for the Ache and conservation easement projects. Mbaracayu's high scientific importance Following are certain aspects that determine RB/ the Biosphere Reserve's scientific importance: * Its state of conservation is excellent. It has very good habitats for threatened, rare and endemic species. It is very representative of its ecoregion. * It has a significant number of natural communities (19 identified), of which forests, cerrados and grasslands are most representative.

66 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 66 * More than 80% of its surface is Interior Atlantic Forest. This ecosystem is considered one of the highest priorities for world conservation efforts. It is the only example of this type of habitat effectively protected in Paraguay. * It harbors another ecosystem of high conservation priority called Cerrado. Paraguay has the southernmost Cerrado habitats in South America. * The Reserve's flora is extremely diverse. It is estimated that it contains more than 2,500 flowering plant species, of economic or other value. * It has great diversity of fern species, from samples with leaves a millimeter in size to others reaching several meters in height. So far 115 species have been identified, some of which had not been known in Paraguay previously. These are plants used widely in popular medicine, with high economic and cultural value. * Twelve species of palm have been identified so far. They inhabit both the forest and the Cerrado. Certain of these, such as Syagrus campicola, are threatened or in danger of extinction. * The Cerrado is most important for the conservation of open-area bird species. It holds the largest number of threatened birds in this type of habitat. * Of the 420 bird species registered in Paraguay (67% of the known birds in Paraguay), 12 are threatened globally and 22 are near-threatened. * It contains one of the world's three populations of the wight-winged nightjar (Caprimulgus candicans), a critically threatened bird species. * It contains an extremely high diversity of insects. So far 1,070 species of insect have been identified. * It encompasses a great diversity of natural communities, including different forest types, grasslands, ponds, streams and rivers as well as the Mbaracayu mountain range The Reserve is a sanctuary for animals threatened with extinction nationally and internationally. Sixty percent of the bird species found in Paraguay have been identified in the Reserve (420 species.) Furthermore, 86 mammal species, 21 reptile and 24 amphibian species have also been identified. Studies of invertebrates identify 1,200 species of insects and show that Mbaracayu has the highest diversity of butterfly species regionally. The Reserve has its own Biology Station, thus providing a site for investigative research. A Committee for Scientific Affairs, consisting of professionals, FMB consultants and others, evaluates and determines the Foundation's research policies. This committee analyses incoming proposals and chooses research projects according to their priority and level of impact on the Reserve. It determines research fees, regulations and data-collecting policy. Finally, it keeps the Executive Council and Fundacion Mbaracayu informed of meeting outcomes through written records. Many national and international organizations have contributed to the value of the Mbaracayu Forest Nature Reserve, even before its present conformation. There are currently 32 research projects having been carried out, in the process of carrying out, or about to be carried out. Scientific research in FMB has become an important factor in decision-making processes at the Reserve. For this reason institutions such as TNC, WWF, the Museums of Natural History in London and Paris, the Alberta Research Council, Smithsonian Institute, Texas Tech University, Texas A&M, Kansas State University, and Paraguayan universities and organizations have offered their support in this initiative of great national and international significance. Mbaracayiu, a GHG Investment as a Catalystfor Conservation and Development

67 Biodiversity Conservation and Sustainable Use in Mbaracayu (Paraguay) 67 The AES Corporation financed the Mbaracayu program as a Green House Gas Investment and helped secure Mbaracayu's future. It was the catalyst that encouraged other NGOs to sign the initial agreement with the government and the UNDP and take on this major responsibility. MbaracayiI outputs and history demonstrate that Land-use Change and Forestry (LUCF) activities mitigate C emissions by: a) avoiding or conserving carbon pools on land (slowing deforestation, preventing logging, improving forest harvesting practices), b) carbon sequestration or expansion of carbon storage in forest ecosystems by increasing the area and/or carbon density of forests. Creating plantations and agroforests to allow for natural regeneration, or improved soil management, and to increase storage in durable wood products, and c) substituting wood grown sustainably for energy intensive and cement-based products (biofuels, construction materials). Furthermore, though it is not measured, the Mbaracayu6 program has avoided local and regional impact of soil erosion caused by deforestation. Soil erosion would cause siltation and affect water quality as well as variability of watercourses. AES' funding commitment has created a major conservation and development program unique in Latin America. Furthermore, the "Declaration of the First International Forum of Indigenous Peoples on Climate Change", held in Lyon, France, in September 2000, cited Mbaracayu as a successful carbon sequestration project. The Nature Conservancy, AES and Fundacion Moises Bertoni established three objectives that continue to be met due to effective partnership and AES's generous support, as well as that of other donors such as the French Global Environmental office. The three objectives are: 1. The continued protection of the site's biomass. The Reserve has increased from the original 57,715 hectares (142,556 acres) to over 63,000 hectares (155,610 acres). Fundacion Moises Bertoni is negotiating the final terms for the purchase of an additional 5,000 acres adjacent to the reserve. This new land would preserve a unique tract of bamboo forest and would be the site of the first conservation easement for a South American indigenous group. Frequent air and ground patrols confirm that the biomass is intact and increasing. A carbon accounting plan is being developed to monitor the improvement and enlargement of the carbon sequestered in the entire watershed. 2. Management plans have been professionally prepared and implemented. Additionally, thorough progress evaluations are conducted. 3. The community outreach and sustainable development program continues to be extremely active and successful. The work with the communities in the Mbaracayu's buffer zone includes reforestation and agroforestry. Already a significant increase in wildlife including jaguar, peccaries and monkeys has been reported. Monetary investment and community organization efforts in the Watershed indicate the clear improvement in the area's quality of life. Programa Mbaracayu - Fundaci6n Moises Bertoni para la Conservaci6n de la Naturaleza. Pr6cer Arguello 208 c/quesada, Asunci6n - Paraguay. Tel , Fax mbaracayu(ambertoni.org.pv Nancy Cardozo - Fundaci6n Moises Bertoni Executive Director (ncardozoambertoni.org.py) Alberto Yanosky - Mbaracayu Director (avanoskyrmbertoni.orj.pv)