Maria José González Executive Director

Peter Rockstroh EDITORIAL CREDITS COVER PHOTOS COBI TIDE Ian Drysdale TEXTS Claudio González EDITING María José González INFORMATION Maria José González Executive Director MAR Fund 0 calle 19-45 A zona 15 Vista Hermosa II Guatemala, Guatemala 01015 TeleFax: (502) 2369-4996 www.fondosam.org www.marfund.org e-mail: mjgonzalez@marfund.org MAR FUND TEAM María José González Patricia Cabrera Claudio González Edgar Chalí

Letter from the President As MAR Fund s Chairman and member of its Development Committee, it is my pleasure to share with you our advances of 2010. During this year we consolidated the alliance with the German Development Bank (KfW) by signing the contract for financial support for 5,000,000 for the first phase of the project Conservation of Marine Resources in Central America. Although this phase is not yet under implementation, KfW has authorized a second phase of the project to support additional areas in the MAR. We look forward to achieving good results in these phases that may secure future support from KfW. Another very important achievement of this year was the development of the first regional workshop to discuss connectivity issues in the Mesoamerican Reef. Common connectivity objectives for several marine protected areas were identified. In addition, the MAR Connectivity Network was created, with the participation of protected areas administrators from the initial network of priority MPAs and researchers. This new network allows us to have a close working relationship with our partners in the region. We made a joint presentation with TNC, WWF and the Healthy Reefs Initiative, on an Agenda for the Conservation and Climate Change Adaptation of the MAR during the 16th United Nations Climate Change Conference. This was an important step towards positioning the MAR as a key region in the world. As part of our commitment to continue supporting the priority protected areas within the MAR region, we entered an alliance with the Overbrook Foundation, the National Fish and Wildlife Foundation and the NOAA Coral Reef Conservation Program, to jointly provide financial support to conservation and management activities in these areas. As a result of this alliance, our fourth request for proposals will be launched next year. Finally, I would like to thank the support of The Summit Foundation, AVINA Foundation, the German Development Bank (KfW), Oak Foundation, The Curtis and Edith Munson Foundation, and The Henry Foundation. Thanks to their trust and generous contributions we are reaching our conservation goals for this region, shared by four countries. Sincerely, Lorenzo Rosenzweig Chairman

MAR Fund The Mesoamerican Reef Fund (MAR Fund) is a financial mechanism established to manage, administrate, and distribute technical and financial resources for conservation of natural resources and environmental services in the MAR region, shared by Belize, Guatemala, Honduras, and Mexico. It operates as a participatory, privately managed fund that raises and allocates funds while relying on the preexisting technical, administrative, and financial capabilities of its four founding members: Protected Areas Conservation Trust (Belize), Fundación para la Conservación de los Recursos Naturales y Ambiente (Guatemala), Fundación Biosfera (Honduras) and Fondo Mexicano para la Conservación de la Naturaleza. These four funds constitute the Board of Directors, which is also integrated by a representative from the National Commission on Environment and Development (CCAD), conservation experts from each of the participating countries, and international experts. MAR Fund is a non-profit corporation established in the United States as a 501 (c) (3). The centerpiece of MAR Fund s current working program is the establishment and strengthening of a functional network of priority coastal and marine protected areas. This network, which can be considered the backbone of the reef, will protect fish populations, diverse habitats, aggregation sites, and water and forest resources, and will stimulate recreation and development opportunities, as well as growth possibilities for the eco-region and the people who depend on these resources. Additionally, MAR Fund seeks to address key issues affecting the integrity and health of the network by implementing better management practices, such as the participation of artisanal fishermen in the management of their fisheries. The protected areas in the initial network were selected through a participative process that included various actors in the four countries. This network is integrated by 14 protected areas (Table 1). N Campeche Bank CUBA Table 1. Priority Coastal and Marine Protected Areas in the MAR Region Gulf of Mexico GUATEMALA MEXICO Rio Sarstún Multiple Use Area BELIZE Yum Balam Protected Area of Flora and Fauna Santuario del Manatí Ecological Conservation Area Banco Chinchorro Biosphere Reserve Arrecifes de Xcalak National Park Corozal Bay Wildlife Refuge South Water Caye Marine Reserve Payne s Creek National Park Port Honduras Marine Reserve Punta de Manabique Wildlife Refuge Barras del Rio Motagua Omoa Baracoa Bioilogical Reserve Gulf of Honduras Cozumel Island HONDURAS YUCATAN BASIN Mesoamerican Reef System CARIBBEAN SEA Sandy Bay West End Marine Reserve Turtle Harbour - Rock Harbour Wildlife Refuge Capiro y Calentura National Park (Laguna de Guaimoreto) Cayman Ridge Cayman Trench PACIFIC OCEAN EL SALVADOR NICARAGUA Mesoamerican Reef System Scale 1:3,500,000 Figure 1. Location of the priority protected areas

Network of Coastal and Marine Protected Areas We would like to present the on-going initiatives that support the establishment and strengthening of the network of priority protected areas in the MAR region: Conservation of Marine Resources in Central America Project We have the pleasure of reporting that in 2010, MAR Fund completed the process to secure funding from the German Development Bank (KfW), for the Conservation of Marine Resources in Central America Project. The 5-year, 5 million contract secured the negotiations for the project, destined to contribute to the MAR s ecological functions in four pre-determined protected areas selected from the initial priorityarea network, which are: Gulf of Mexico GUATEMALA MEXICO Campeche Bank BELIZE Port Honduras Marine Reserve Yum Balam Protected Area of Flora and Fauna Gulf of Honduras Punta de Manabique Wildlife Refuge Cozumel Island YUCATAN BASIN Mesoamerican Reef System CUBA CARIBBEAN SEA Sandy Bay West End Marine Reserve Cayman Ridge Cayman Trench N Yum Balam Flora and Fauna Protection Area, Mexico Port Honduras Marine Reserve, Belize Punta de Manabique Wildlife Refuge, Guatemala Sandy Bay West End Marine Reserve, Honduras The objective of the project is to consolidate the coastal and marine protected areas that have been selected and to ensure, in the mid-term, the conservation and sustainable use of their marine and coastal resources. The project has three main components: 1) protection and conservation of coastal and marine resources; 2) better management and sustainable use practices of coastal and marine resources, and 3) effective communication and exchanges for the adoption of new and better management practices for coastal and marine resources. The third project component also includes a small grants fund. PACIFIC OCEAN EL SALVADOR Figure 2. Location of the protected areas selected for the KfW project. Joint Grants Fund HONDURAS NICARAGUA Mesoamerican Reef System Scale 1:3,500,000 MAR Fund has joined efforts with the Overbrook Foundation, the National Fish and Wildlife Foundation (NFWF), and the National Oceanic and Atmospheric Administration s NOAA Coral Reef Conservation Program, to launch a joint request for proposals in 2011. The objective of this joint initiative is to support conservation, effective management, and sustainable use of marine protected areas (MPAs) in the Mesoamerican Reef System, through grants to managers and other eligible actors that are operating in the region. The protected areas that will be supported by this initiative are the nine marine protected areas included in the initial network.

Third Request for Proposals. Results Grant Program The third call for proposals was launched in 2009. Its objective was to support innovative initiatives for community-managed fisheries and enforcement of fishing regulations. The main impact of the approved projects was the shift in attitude of the organized groups of fisher folk. In recognition of the decline in fisheries and their role in management, the fishermen expressed interest in modifying their fishing methods and gear towards more sustainable practices. A total of five projects were supported, which achieved important social and environmental impacts in the region. The most prominent results achieved by each project are: 1. Building the capacity of fishermen associations for involvement in community management of Port Honduras Marine Reserve (PHMR) management in the area. Establish and strengthen local, national, and international alliances with organizations that can provide necessary support and resources. Identify and promote opportunities to expand socioeconomic benefits to all members. 2. Enforcement of fishing regulations in the Gulf of Honduras: Phase 2 Work meetings for the strategic plans development. TIDE This project involved two fishing organizations that fish in the Marine Reserve: Monkey River and Punta Gorda. The number of members increased by 100%, and now there are at least 30 members in each association. Strategic action plans were developed for each association, in order to: Promote responsible fishing and sustainable production practices. Promote research in fisheries Communication banners posted in Belize. TRIGOH A system of vinyl banners informing and reminding about shrimp, lobster, and queen conch closed seasons was implemented in Belize, Guatemala, and Honduras. In Omoa, Honduras a database on illegal fishing activity was developed, with the cooperation of local fishermen. Cuerpos de Conservación de Omoa (CCO) a local NGO, and the General Fishing Directorate (DIGEPESCAH) will use the resulting database to plan their control

and surveillance activities In the Port Honduras Marine Reserve, Belize, illegal fishing has decreased by 50% from 2009 to 2010, according to the number of illegal acts recorded by TIDE, the NGO that co-manages the marine area. 3. Sustainable exploitation of queen conch and spiny lobster in Banco Chinchorro Biosphere Reserve and Arrecifes de Xcalak National Park 1,200 calendars, 5,000 bookmarks, and 10,000 decals were printed and distributed among fishermen, seafood marketers, and final consumers. 4. Optimization of the sustainable use, artisanal innovation, and alternatives for the co-management and use of the collective lobster brand: Chakay from Banco Chinchorro and Sian Ka an Biosphere Reserves As part of the actions to promote sustainable use of these two fisheries in the previously mentioned protected areas, a control and surveillance program was coordinated with the fishing authorities. This effort yielded the following results: A total of 79 and 205 marine patrols, and 129 and 67 land patrols were carried out in the Banco Chinchorro Biosphere Reserve and the Arrecifes de Xcalak National Park, respectively. Sixty-five illegal fishing boats were deterred, and illegal fishing gear was confiscated. An intensive communication campaign for the protection of both species was carried out, which included: 12 radio and 4 television interviews, and 12 newspaper articles; Spiny lobster juvenile from the Banco Chinchorro Biosphere Reserve. CONANP Casita installed for the selective capture of spiny lobster. Razonatura The market value of the Chakay lobster brand has increased a 30% thanks to the fishing methods applied. It is recognized as lobster that is captured under sustainable management practices. As part of this project, the Quintana Roo Fishers Integrator Cooperative, supported by the NGO Colectividad Razonatura, installed 120 casitas in Cayo Centro in Banco Chinchorro. These allow fishermen to harvest lobsters selectively. They can handle, measure, weigh, and free individuals that have not yet reached a 13.5-cm tail length, which is the minimum commercial size. The Fishers Integrator Cooperative is also monitoring the registered trademark Chakay, to ensure buyers where they

are captured and the sustainable conditions under which they are captured. The Cooperative participated in the Lobster Festival in Punta Allen in November 2010 to promote its sustainable brand. During the festival, they were able to establish commercial relationship with lobster buyers. 1. Restocking the Cayo Centro zone with queen conch (Strombus gigas) to be managed by the Banco Chinchorro fishing community To implement this project the cooperatives that have been authorized to capture Queen conch in the Banco Chinchorro Biosphere Reserve (Langosteros del Caribe, Andrés Quintana Roo, and Pescadores del Banco Chinchorro) signed an agreement with CONANP, the reserve manager, and Oceanus A.C., an NGO promoting this initiative. They committed to stop capture of Queen conch in the zone designated for repopulation of this species. Seven thousand individuals were successfully collected from fishing areas that are not patrolled and moved to a 9.93 km2 area with a lower risk of illegal fishing. This area is located in front of the Cayo Centro research center, and fishermen and park rangers are constantly surveilling it. In addition, there are good feeding conditions in this area, appropriate to promote the growth of this species. Two monitoring exercises were conducted, one in June and one in December. The results were that the individuals that were relocated grew up to 7 cm. and some individuals moved from 60 to 500 meters, and up to 1 km, within the relocation area. Fishermen belonging to the three cooperatives will undertake the control and surveillance of the repopulation area, to prevent illegal captures. Queen conch tagged for its monitoring. Oceanus Queen conch collecting for its relocation. Oceanus

Community Fisheries Program One of the main threats to the MAR region is overfishing, due not only to scarce economic resources in the coastal communities, but also to the lack of adequate resources for constant control and surveillance activities by authorities. For the MAR Fund, fishers are part of the solution to this threat and an inspiration for establishing the present program. Its goal is to support the design, establishment, management and monitoring of mechanisms for fisheries co-management by organized groups of fishers. By participating in fisheries co-management, the fishing communities will: Adopt responsibility for the resources, Share the interest in their conservation and sustainable use, Become allies in monitoring and evaluation of the resources, and Become partners in surveillance of the resources and compliance of the fishing regulations. One of the key components in conservation and ecosystem-based management of fisheries resources is the establishment of no-take zones (also known as community marine reserves and fishing recovery sites). The MAR Fund currently supports fisheries co-management pilot projects in three protected areas in the reef. PILOT PROJECTS With the valuable financial support provided by AVINA Foundation, two phases have been developed for the Puerto Morelos National Park, Quintana Roo, Mexico, and Barras de Cuero y Salado Wildlife Refuge, Atlantida, Honduras pilot projects. were reinforced to improve the results. A workshop was conducted to strengthen the capacities of the fishermen in high-qualitydata collection (fish, corals, key invertebrates, topographic complexity and type of substratum). The National Commission of Natural Protected Areas (CONANP) and COBI participated as As a result of these initiatives, there are currently 3,841 hectares of no-fishing zones distributed among both protected areas. Monitoring the ecosystem in the community marine reserves of Puerto Morelos Reef National Park (PNAPM), Quintana Roo, Mexico: Fishers and authorities working together for the comanagement and sustainable use of the reef. Phase II of the project, as with the first phase, was technically and administratively supported by the Mexican NGO Comunidad y Biodiversidad (COBI). Monitoring of the fisheries co-management areas of the PNAPM was continued and data collection techniques Cooperative of Fishermen of Puerto Morelos in the meeting for the Management Program modification. COBI

The Cooperative based its proposal on their monitoring results. The proposal was approved unanimously by the participants at the meeting and has been approved by CONANP. Agreement of a co-management area inside Cuero y Salado Wildlife Refuge (RVSBCS), Atlantida, Honduras. Fishermen from the Cooperative monitoring the reef. COBI trainers. In addition to the lectures, the fishers were provided with educational material and submarine guides. The Puerto Morelos Cooperative actively participated in two cross-sectoral meetings for the Modification of the Management Program for the Puerto Morelos Reef National Park. They proposed to close off a site in the southern zone of the PNAPM. In exchange, they proposed to open two areas to fishing that are currently defined as Scientific Use Zones. In 2010, the Asociación de Pescadores La Rosita, Cuero y Salado (APROCUS, the local fisher folk association), the Fundación Cuero y Salado (FUCSA, the NGO that co-administrates the Refuge), the Forest Conservation Institute and the Ministry of Agriculture and Livestock signed a sub-agreement for the co-management of a fishing territory, which includes four no-take zones with a diameter of one kilometer each. APROCUS and FUCSA created an Action Plan for the three fishery co-management areas granted to APROCUS. The World Wide Fund for Nature (WWF) offered technical support during the integration of the plan, contributing with scientific criteria and experience obtained during the elaboration of the Management Plan for the RVSBCS. Barras de Cuero y Salado Wildlife Refuge. Claudio Gonzalez

Environmental education: Current state of the environmental situation, importance of wetlands, ecosystem protection and benefits, sustainable development, Alternative economic activities, Conservation and sustainable use of resources, and Fishing legislation. Fishing co-management project in Punta de Manabique Garbagge recycling training workshop for fishermen. Martín Galo Towards the end of 2010, once again AVINA Foundation contributed funding to implement a third pilot project for fishing co-management in the region, specifically with fishing communities The management of fisheries for the fishing co-management areas covers issues such as the precautionary fishing approach according to the standards of the Food and Agriculture Organization (FAO) of the United Nations, implementation of minimum sizes, control and surveillance in no-fishing zones, bans and abolition of prohibited fishing gear. Additionally, APROCUS has received training in the following topics: Punta de Manabique Wildlife Refuge. Yolanda Muñoz in the Punta de Manabique Wildlife Refuge (RVSPM), Guatemala. The funds for the project were complemented with the financial support of the Organization of American States (OAS) through the Ministry of Environment and Natural Resources (MARN) of Guatemala. The participating communities are: La Graciosa, Laguna Santa Isabel and Punta Gruesa, all of them in La Graciosa Bay. This area, located within the RVSPM, has important biological conditions as a reproduction and feeding site for commercial fish species. Fishing regulations training workshop. Martín Galo

Due to the marked reduction in fisheries resources, fishers of La Graciosa and Laguna Santa Isabel recognize the need for developing a fishing plan for the area. For this purpose, the fishing commissions of the Community Development Councils recommended the implementation of existing regulatory measures in the area, with the participation of fishers in the control and surveillance of fishing methods and gear, as well as in the designation of fishing recovery sites. This initiative will start in January 2011. Improving Fisheries Enforcement in the Southern Barrier Reef Complex of Belize Confiscated illegal product by the special enforcement team. SEA Thirteen members of local communities were trained and are now actively supporting the surveillance activities. SEA and the Police Department entered a formal collaboration agreement. The database was updated and improved thus allowing follow-up of the activities. In addition, SEA negotiated a storage warehouse and the necessary equipment for adequately packing, labeling and storing all the confiscated products until the moment of the hearings. This assures that the cases will not be discarded due to incorrect manipulation of the evidence. SEA s enforcement team and patrol boat. SEA In 2010, the Belizean NGO Southern Environmental Association (SEA), successfully developed the second phase of this project, with the following results: Ninety three patrols, resulting in 91 warnings, 45 charges, 45 apprehensions and 19 sentences. The global conviction rate (sentences/ charges) for 2010 was 42%. Violation of fishing regulations in Southern Belize dropped 33% compared to the levels of 2009 Training of local communities members. SEA

Regional Actions MAR Connectivity Network With the intention of organizing and developing the first regional workshop to promote a better understanding of bio-physical connectivity throughout the Mesoamerican Reef (MAR) System and its potential for supporting management of protected areas at an ecosystemic scale in a network context, MAR Fund established an alliance with ECOSUR (El Colegio de la Frontera Sur), NOAA (National Oceanic and Atmospheric Administration) and the Rosensthiel School of Marine and Atmospheric Science. The purpose of the workshop was to create a permanent forum for exchanging experiences and ideas among protected area managers and researchers. The workshop was held in Chetumal, in May 2010. The participants were administrators and/or representatives of 13 marine protected areas (MPA); many of which are included in the network of priority areas. As a result of the workshop four regional connectivity objectives were identified that apply directly to the locally integrated management plans and priority actions throughout the network of MPAs. These are: Invasive species, lionfish: understanding larval transportation, the first stages of life and habitat use. o Commercially important species: Integrating and sharing the latest information and plotting maps with information on spawning and larval transport in a regional context for groupers (Epinephelus striatus Mycteroperca bonaci), snappers (Lutjanus griseus Lutjanus jocu) and hogfish (Lachnolarmus maximus). Ecologically important species: identifying and plotting spawning information and larval transport for protected parrotfish species and Acropora spp. Migration and productivity: Plotting maps of physical, biological and chemical parameters of areas with high-nutrient content associated to the sea flow or currents that provide nutrients to aggregations of migratory species, focusing on whale sharks, manta rays and manatees. The MAR Connectivity Network was created, initially integrated by the workshop participants. An e-mail listserve was created with information on the workshop participants to facilitate MAR Connectivity Regional Workshop participants. Samantha Whitcraft

System, its population and economy to climate change Launch of the 2010 Report Card for the Mesoamerican Reef, an evaluation of ecosystem health Presentation of the Agenda for Conservation and Climate Change Adaptation of the Mesoamerican Reef System and its delivery to a dignatary of the Central American Commission on Environment and Development (CCAD). Peter Rockstroh communication and information sharing. The results and scientific information obtained during the workshop are hosted in the MAR Fund and ECOSUR web-sites (www.fondosam.org / www.marfund.org and http://meteorologica. ecosur-qroo.mx/ofe/ocean/mpa/workshop. html, respectively). The second workshop of this network is programmed for the last quarter of 2011. 16th Conference of the Parties (COP 16) of the United Nations Framework Convention on Climate Change The agenda proposes a vision for the adaptation of the MAR to climate change. It emphasizes the need for effective adaptation of the human communities and the conservation of the goods and services that ecosystems provide. The agenda proposes three different groups of strategies to be implemented as mitigation for climate change: Strengthening governance and institutional frameworks Reduction of the main threats to the Mesoamerican Reef System Development, conservation and sustainable management of coastal ecosystems and fisheries. In December 2010, MAR Fund, in response to an invitation by The Nature Conservancy (TNC), and with the participation of The World Wildlife Fund (WWF) and The Healthy Reefs for Healthy People Initiative (HRI), participated in the organization of the event Communities and economies at risk in the Mesoamerican Reef System, a climate change adaptation agenda. The event was held parallel to the COP 16 of the United Nations Framework Convention on Climate change. The topics covered in this event were: TIDE Vulnerability of the Mesoamerican Reef

All of our efforts are focused on the protection and conservation of the Mesoamerican Reef System. Without the support of institutions and people that believe in us, it would not be possible for the projects and initiatives for conservation and sustainable use of natural resources in the MAR to become a reality. We want to extend our sincere gratitude to the MAR Fund Board of Directors, from whom we have received constant assistance and great support in all our activities. We also appreciate the invaluable support of the following institutions that have assisted us technically and financially: AVINA Foundation German Development Bank (KfW) Oak Foundation The Curtis and Edith Munson Foundation The Henry Foundation The Summit Foundation The Oak Hill Fund Acknowledgements: Our gratitude goes also to all the individual benefactors that have contributed through different mechanisms. Your contributions go a long way.

FINANCIAL STATEMENTS Balance Sheets As of December 31, 2010 and 2009 (Expressed in US$) INCOME, EXPENSES AND ASSETS STATEMENTS For the year ended December 31, 2010 and 2009 (Expressed in US$)