PROSPECTUS
TABLE OF CONTENTS EECUTIVE SUMMARY 4 National Parks: Peru s Natural Legacy is led by the country of Peru, under the leadership of the Peru Ministry of the Environment, through the Peruvian National Parks Service. It is a collaborative effort that is open to others. The current partners, all which are on the advisory committee, are the Andes Amazon Fund, Gordon and Betty Moore Foundation, Peruvian Society for Environmental Law, Peruvian Trust Fund for National Parks and Protected Areas, and World Wildlife Fund. PROTECTED AREA BENEFITS 8 THREATS 16 SOLUTION 18 THE MODEL 20 PHASE 1 22 FUNDING 26 APPENDI: PROTECTED AREAS MANAGMENT LEVEL 30 ANDES AMAZON FUND Photo Credits: Cover, Day s Edge Productions/WWF-US; page 2, Nicolas Villaume/WWF- US; page 3, Nicolas Villaume/WWF-US; page 8 (l-r), Nicolas Villaume/WWF-US; Day s Edge Productions/WWF-US; André Bärtschi/WWF; page 9, Brent Stirton/Getty Images; page 11, J.J. Huckin/WWF-US; page 12, Day s Edge Productions/WWF-US; page 15, Nicolas Villaume/ WWF-US; page 17, Nicolas Villaume/WWF-US; page 29, Day s Edge Productions/WWF-US; page 31, Nicolas Villaume/WWF-US 3
EECUTIVE SUMMARY NATIONAL PARKS: PERU S NATURAL LEGACY Peru is a land of legends. El Tunchi, protector of the Amazon rain forest. Mama Killa, the moon goddess. Pariacaca, the legend who brought rain and thunder to the country. And many other mythic tales rooted in the country s natural wonders and biodiversity. Peru now has a once-in-a-lifetime opportunity to create a conservation legend. The pathway to doing so is a new initiative called National Parks: Peru s Natural Legacy (Patrimonio del Perú), which strives to expand and effectively manage the country s magnificent network of protected areas. At the heart of the initiative is an innovative approach to sustainably finance the long-term protection of the country s treasured natural areas including parks in the lush Peruvian Amazon, which is the fourth largest tropical rain forest in the world; nature reserves in the dramatic snow-capped Andes; and wildlife refuges along the moonscape-like coast. All are within the country s vast network of protected areas, which the Peruvian government began to establish in the 1960s. Initially, the government s motivation was to conserve a large and diverse number of species flamingos on the coast, macaws and jaguars in the Amazon rainforest, graceful vicuñas in the mountains, and many more. The motivation later broadened to include the other benefits, called ecosystem services, that natural resources in wellmanaged and intact protected areas provide to people from those living inside Peru s protected areas to those living as far away as the northern hemisphere. Rivers in the protected areas, for example, are the source of drinking water and energy (in the form of hydropower) for people in cities hundreds of miles downstream. Rainforests absorb carbon, helping to mitigate climate change in Peru and globally; soak up water so the risk of flooding is minimized; and help keep the air clean. They, too, are important to indigenous people living in or adjacent to protected areas, as they are a source of livelihoods, as well as food and medicine. New protected areas were added to the network until the economy slowed in the 1990s. Funding for protected areas could not keep up with the growth in the system, and had to compete with higher priorities, such as health and education. Insufficient funding for protected areas meant it was hard to create new protected areas and manage existing areas so that threats such as illegal mining, unsustainable logging, expansion of farms and ranches onto forest land, and climate change could be kept at bay. But as the economy now improves, new opportunities emerge. Those include National Parks: Peru s Natural Legacy, which uses an approach called project finance for permanence (PFP) to strengthen the network of protected areas. 4 5
National Parks: Peru s Natural Legacy will proceed in several phases. The first phase, which is expected to begin by the end of 2017, is the most significant. It will provide Peru s government with $70 million to be used over a 10-year period to expand and effectively manage 16.7 million hectares of the Amazon, covering 87 percent of the protected areas network. The Amazon is the focus of Phase 1 because it is where most of the country s protected land is located. And it is one of the most threatened regions in Peru. Deforestation rates there are climbing as naturalresource dependent economic activity mainly in the form of illegal or irresponsible agriculture, gold mining and logging increases to meet the demands of a growing population. The strategy most strongly correlated with stopping deforestation, as well as forest degradation, is to ensure adequate funding and proper management of protected areas. There is tremendous enthusiasm and support for this initiative within Peru, not only at the national government level but also among local nongovernmental organizations. There also is support outside of Peru, as National Parks: Peru s Natural Legacy compliments a larger initiative to use the PFP approach to permanently protect the Amazon across three national boundaries not just Peru, but the Amazon in Brazil (completed in 2014) and Colombia (in process) for an unprecedented regional conservation achievement. PERU S LAND MOSAIC Protected areas are an important piece of the larger mosaic of natural resource-rich land in Peru. Land managed by indigenous communities also is a significant piece of the mosaic. These communities manage 11 million hectares of land that have been titled to them. They also manage another 9 million hectares and are seeking titles for that land. In addition, 9.4 million hectares designated as forest concessions are part of Peru s land base. Momentum for National Parks: Peru s Natural Legacy is building quickly. We welcome new partners and investors to join us in supporting the future of Peru s conservation legend. 6 7
BENEFITS HOW PEOPLE, PLANTS AND ANIMALS BENEFIT FROM PROTECTED AREAS The natural capital embedded in Peru s natural resources is enormous. Simply put, natural capital is the stock of natural assets such as water, land, soil, air and plants that provide benefits to people and wildlife. These benefits, called ecosystem services, were valued at $16.1 billion in 2009, the latest year such a calculation was made1. Many of the natural resources are in Peru s network of protected areas particularly its rain forest, which ranks second (behind Brazil) as the largest Amazonian rain forest. Social and Economic Benefits of Protected Natural Areas of Peru, Research Center of the University of the Pacific, June 2015 1 8
BENEFITS ECONOMIC Approximately 62,000 people live in Peru s network of protected areas and 532,000 (many who are indigenous) live adjacent to these areas. They benefit, economically, from the protected areas especially when those areas are intact and well-managed in a number of ways. For example: TOURISM REVENUE The ruins of Machu Picchu, snow-capped Huascaran Mountain (the tallest mountain in Peru) and dense rain forests of the Amazon are in protected areas. They are just a few of the significant natural and cultural attractions for people from around the world and within Peru to visit. In 2013, the 1.3 million tourists who visited the country s protected areas generated $236 million in revenue, of which $134 million directly benefited people. For example, nearly 13,000 people 2 worked at restaurants and lodges that cater to tourists. They come to see the biodiversity. Peru ranks 2nd worldwide in its diversity of birds, first in freshwater fish and butterflies, fourth in amphibians, fifth in mammals and reptiles, and eighth in plants. The biodiversity in Peru s protected areas includes such species as orchids, jaguars, macaws, caiman, giant river otters, wooly monkeys, flamingos and sea lions. They come to eat the food. Brazil nuts and paiche (one of the most popular fish dishes in the country) come from the Amazon, crabs and other seafood from the coast are used to make ceviche (the country s national dish), and the Andes produces 3,000 varieties of potatoes (a staple food for many in Peru). These are just some of the foods from the country s protected areas. They come to see cultural sites. Machu Pichu, a protected area, is the most popular tourist attraction in Peru. People come to see its Incan ruins, hike the Inca Trail and take in the beauty of the surrounding mountains. Its cultural and environmental features have earned it a designation as a UNESCO World Heritage Site. There also are many archaeological sites in the Amazon and on the coast that are popular with tourists. JOBS Job opportunities are better for the indigenous communities and other people living in or adjacent to Peru s protected areas than those living in natural resource-rich areas that are not protected. Their incomes are 8.3 percent higher 3. Why? Because almost half of the land within the protected areas (8 million hectares) is designated for direct use, which means local communities in and nearby are allowed to extract resources such as fish, turtles, nuts and fruits from them if they do so in a sustainable manner. In 2013, nearly 36,000 families living in or near Peru s protected areas generated nearly $25 million in income all as a result of the direct use of natural resources 4. In Paycaya-Samiria National Reserve, management of river turtles (Podocnemis unifilis) has generated more than $1.5 million for local families over the last 5 years. 5 In Tambopata National Reserve and Bahuaja-Sonene National Park, 412,500 kilograms of Brazil nuts worth $500,000 were commercialized in 2015, benefiting approximately 700 people. 2 Social and Economic Benefits of Protected Natural Areas of Peru, Research Center of the University of the Pacific, June 2015 3,4 The Center for Research of the University of the Pacific in 2015 5 Areas Naturales Protegidas Del Peru (2011-2015), Peru Ministry of the Environment 10 11
BENEFITS E N V I R O N M E N TA L Forest land in the protected areas is the country s greatest asset, from an environmental standpoint. And there is a lot of it. Peru ranks fourth in the world for having the most tropical forest land. Forests sequester carbon. This means they store carbon dioxide or other forms of carbon and, by doing so, help mitigate climate change. The forests of the Peruvian Amazon, for example, contained more than 32 billion metric tons of CO2eq in 20146 which represented 2 percent of the world s remaining stock. Twenty-three percent of that was contained in the protected areas (6.7 billion metric tons CO2eq). The forests in these protected areas have the potential to sequester more FOREST CARBON STORED IN PERU S PROTECTED AREAS 6.7 B TONS OF CO 2 EQUIVALENT than 40 million metric tons of CO2 a year if they are properly managed.7,8 That is about 50 percent of the estimated emissions from deforestation from the Peruvian Amazon, as reported by the Government of Peru to the United Nations Framework Convention on Climate Change for 2017. Forests, especially those in protected areas (as they, generally, are healthier than forests outside of protected areas), also help Peru adapt to climate change. For example, they help regulate temperature and rainfall, reduce risks from extreme weather events, prevent flooding and protect water supplies. > TOTAL ANNUAL CARBON EMMISSIONS BY EUROPEAN UNION ENERGY SECTOR 1.1B TONS OF CO 2 EQUIVALENT taken from latest available data 2014 Peru s Submission of a Forest Reference Emission Level (FREL) for Reducing Emissions From Deforestation in the Peruvian Amazon, MINAM, June 2016 6,7 12 Rate of sequestration reported for baseline period (1998-2010) in table 2 of Amazon Forest Response to Repeated Droughts, T.R. Feldpausch et. al., AguPublications, April 2016 8 13
BENEFITS BASIC NEEDS FOR PEOPLE Without the natural resources of the protected areas, basic needs of many people in Peru would not be met. The rivers, lakes and wetlands fed by the glaciers of the Andes are the source of drinking water for more than 85 percent (25.8 million people) of the country s population. Much of that water originates in protected areas. Sixteen natural protected areas (as opposed to, for example, historical or archaeological protected areas) alone provide water to 2.7 million people in 11 towns 9. They also provide irrigation water for many farms and ranches. Approximately 376,000 hectares of land in the country are irrigated with water from natural protected areas 11. Finally, food and medicinal herbs that people rely on to survive especially the 330,000 indigenous and other people who live in the Peruvian Amazon are found in protected areas. These waterways also generate electricity. Approximately 60 percent of the hydroelectric power in Peru uses water from the natural protected areas a value of almost $320 million per year 10. FOOD DRINKING WATER MEDICINE HYDROPOWER AGRICULTURE 9,10,11 Fernando Leon Morales, The Contribution of the Natural Protected Areas to the National Economy (2007) 14 15
THREATS NATURAL-RESOURCE DEPENDENT ECONOMIC ACTIVITY THREATENS PERU S PROTECTED AREAS Risks to Peru s natural resources are severe. Oceans are polluted, forests are degraded and glaciers are receding. Most notably, deforestation especially in the protected areas of the Peruvian Amazon is high. The Government of Peru estimated deforestation at 177,500 hectares in that region in 2014, the highest annual forest loss on record since 2000. 12 (The number went down slightly, to 158,658 hectares the next year but still was one of the highest totals ever.) That is one of the reasons that the larger nine-country Amazon region was ranked by WWF in 2015 as one of the world s top 11 deforestation fronts regions expected to have more deforestation and forest degradation than anywhere else by 2030. 13 Most of the deforestation is due to an increase in natural-resource dependent economic activity without adequate policies in place to manage it to meet the demands of a growing population. The activity is mainly in the form of illegal or unsustainable largescale agriculture (mostly palm oil, cacao and coca), small-scale agriculture (mainly for cattle ranching), and gold mining and logging as well as the roads built through forests and mountain regions to access these operations. These drivers have a negative impact on all of the country s natural resources, not just its forests. Most of this deforestation is outside of protected areas but, nonetheless, puts pressure on protected areas driving home the urgent need to ensure the protected areas are properly managed. Climate change also is a driver. It manifests itself in several ways, such as more forest fires and droughts, as well as receding glaciers, all which pose a threat to future food and water supplies. Climate change is expected to impact 16 percent of Peru s gross domestic product and the economic activities of one-third of its population. 14 200 FOREST LOSS IN THE PERUVIAN AMAZON Source: Monitoring of the Andean Amazon Project 180 160 140 120 100 80 60 hectares 40 20 0 2001 02 03 04 05 06 07 08 09 10 11 12 13 14 12 Monitoring of the Andean Amazon Project, MAAP #25: Deforestation Hotspots in the Peruvian Amazon, 2012-2014 13 Living Forests Report Chapter 5, World Wildlife Fund, 2015 14 2014 USAID Peru Tropical Forest and Biodiversity Assessment 16 17
THE SOLUTION AN OPPORTUNE TIME FOR AN INNOVATIVE APPROACH One of the reasons threats to the protected areas are on the rise is lack of funding to properly manage and govern them. Many countries around the world face a similar challenge a gap between how much is needed to properly manage and govern protected areas and how much exists to do so. In Peru, the gap (explained in more detail on page 26) is due to several factors: limited understanding of the services protected areas provide to people and biodiversity; limited understanding of the potential revenue protected areas provide to the national economy; a relatively new national government protected areas agency; and competing funding priorities, such as health and education. But the door to addressing the gap opened when Peru s economy started to grow. (The country s gross domestic product was $202.6 billion in 2014, up from $43.7 billion 10 years earlier. 15 ) With this growth came the creation of the country s first protected areas agency (SERNANP) in 2006, whose responsibilities include overseeing the network of national protected areas (SINANPE) that the government started creating in the 1960s. The creation of the Ministry of the Environment (MINAM) followed, in 2010. The improving economy also inspired a government decision to increase its budgetary allocation for SINANPE by an average of seven percent annually from 2012 to 2016. That was an important investment. But it was not and still is not enough to reduce threats to the country s protected areas. Fortunately, new possibilities are emerging to do so. The country is eager to chart a unique development path that entwines protection of the environment with economic growth. The national network of protected areas is at the center of that effort, for a variety of reasons. The growing population needs the natural resources in protected areas to survive. Stable and well-managed protected areas also will help Peru reach its ambition of becoming an Organization for Economic Cooperation and Development country, as improving the efficient use of natural resources is a requirement for receiving that designation. It will help Peru reach the goals it set under the Paris Climate Agreement by avoiding deforestation and degradation of forests and future emissions of greenhouse gases. And it will help Peru contribute to reaching several United Nations Sustainable Development Goals and Convention on Biological Diversity Aichi Targets. Now, therefore, is an opportune time for public and private investors interested in longterm conservation to turn their attention toward Peru by supporting a new protected areas initiative called National Parks: Peru s Natural Legacy. UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS SUPPORTED BY NATIONAL PARKS: PERU S NATURAL LEGACY 15 World Bank: http://data.worldbank.org/indicator/ny.gdp.mktp.cd?cid=gpd_29 18 19
THE MODEL NATIONAL PARKS: PERU S NATURAL LEGACY USES AN INNOVATIVE APPROACH BORROWED FROM THE WORLD OF FINANCE National Parks: Peru s Natural Legacy was born at the World Parks Congress in 2014, when six entities signed a Memorandum of Understanding to create the initiative. It uses an innovative approach Project Finance for Permanence (PFP) that is borrowed from the world of finance. PFP is a means for permanent and full funding of conservation areas. A signature component of the PFP approach is a single closing that delivers pledged funds when conditions for permanence are met, which serves to motivate the parties and draw out new resources and commitments. PFP initiatives address an issue often seen in the conservation community: piecemeal or insufficient funding for the management of conservation areas. PFP has a growing track record of securing the benefits provided by conservation areas over the long-term. WWF sees scaling up this approach as urgent, given the threats of rapid species decline, deforestation, climate change and resource depletion facing the planet. National Parks: Peru s Natural Legacy is part of a global strategy to strategically increase the number of protected area systems with sustained robust funding. Peru presents highly favorable conditions for the PFP model. For example, there is a strong desire within Peru to sustainably fund Peru s protected areas. SERNANP Director Pedro Gamboa and MINAM Vice Minister Fernando Leon Morales lead the PFP. The initiative also is supported by strong local nongovernmental organizations, including the Peruvian Society for Environmental Law (SPDA) and the Peruvian Trust Fund for National Parks and Protected Areas (PROFONANPE). The initiative, too, has the benefit of learning from successful PFP initiatives, including ARPA for Life the largest PFP to date. In 2014, ARPA for Life created a $215 million fund to permanently protect 60 million hectares of Brazilian Amazon. When completed, National Parks: Peru s Natural Legacy will not only help the people and biodiversity of Peru. It also will contribute to the broader regional effort, led by REDPARQUES, to strengthen protected areas in Latin America s Amazon forests. A multiparty/single closing that ensures the security of the investment. Funds are not distributed until (1) the total fundraising goal of $70 million is reached, and (2) all key legal and financial conditions that have been agreed upon in advance are met. Funds are contracted to SERNANP and PROFONANPE. Rigorous disbursement conditions are fulfilled annually over 10 years. Disbursements are triggered by a donor committee and flow to the protected areas system. National Parks: Peru s Natural Legacy $70 MILLION DEAL CLOSING HEART OF THE DEAL CONSERVATION PLAN FINANCIAL PLAN 1. Disbursement conditions (fulfilled annually over 10 years) 2. Donors committee triggers disbursements 3. Money flows to protected areas system Government of Peru s Contribution $68 MILLION in new funding 20 21
PROTECTED AREAS INCLUDED IN PHASE 1 PHASE 1 NATIONAL PARKS: PERU S NATURAL LEGACY National Parks: Peru s Natural Legacy will proceed in phases. The first phase, which is expected to span 10 years, is the most significant phase. It includes 16.7 million hectares (87 percent of the protected areas network) and focuses exclusively on 38 existing and new protected areas within the Amazon. 16 The goal of the phase is to use funds from this initiative to reach basic and then structural levels of management in the 38 protected areas. In 16 of those areas, activities related to sustainable resource use and tourism are to be implemented. The activities in those 16 areas represent elements of optimal management. See Appendix 1 for a complete list of protected areas and management levels. The single closing for Phase 1 of National Parks: Peru s Natural Legacy occurs after: 1. Clear conservation management goals and activities that support the goals are developed. These activities, which help address the current threats, include but are not limited to, hiring and training park guards, buying equipment, setting up meetings with local communities so they can provide input on how to manage the protected areas, and creating guard stations for park rangers. in perpetuity when the pledged funds are spent. A variety of options for long-term funding are available to the Government of Peru. For example, entrance fees to protected areas are increased, starting in 2018. Other innovative options are considered, such as allocating payment for the hydrological services provided by protected areas to SERNANP. 3. All key legal and financial conditions necessary to secure the deal are in place. National Parks: Peru s Natural Legacy is a sustainable financing initiative aimed at securing financing for effective management of the country s national protected areas. Effective management is defined as management that allows for conservation of the values that justify the existence of the protected areas, the ecosystem services they provide and the generation of related socio-economic benefits. Based on the improvements in management conditions (basic and structural) and strategic design of sustainable financing mechanisms, the initiative will improve the quality of strategic planning and governance. TUMBES PIURA LAMBAYEQUE LORETO AMAZONAS CAJAMARCA SAN MARTIN LA LIBERTAD ANCASH HUANUCO PASCO JUNIN LIMA CALLAO HUANCAVELICA UCAYALI CUSCO MADRE DE DIOS Amazon Limit Natural Protected Areas Protected Forest National Park National Sanctuary Communal Reserve National Reserve Historical Sanctuary Reserve Zone 2. A financial model is developed that maps the allocation of funding to the use of the funding over 10 years and how the Government of Peru assumes full responsibility for funding those protected areas ICA AYACUCHO APURIMAC AREQUIPA PUNO MOQUEGUA TACNA 16 Official categories for four of those protected areas are yet to be designated by the Peruvian government 22 23
THE FOUR LEVELS OF MANAGEMENT PERCENT OF FINANCIAL GAP, BY CATEGORY, TO REACH STRUCTURAL LEVEL OF MANAGEMENT AND TOURISM AND SUSTAINABLE RESOURCE USE COMPONENTS OF OPTIMAL LEVEL OF MANAGEMENT 1 TRANSITIONAL Reserve zones 17 are legally categorized and formally established as protected areas 2 BASIC All conditions from transitional level are met Official protected area manager is hired and has the capacity and knowledge necessary to ensure effective management of the protected area Legal delineation and physical demarcation of protected area boundary is established Protected area is inscribed in the public register of protected areas Management plan that specifies conservation objectives and activities is approved and being implemented; its activities are monitored semi-annually Management committee that represents local communities and other stakeholders is in place; its members have been trained on rights, responsibilities and effective management of protected areas Equipment 3% Management plans 3% Central support 3% Sustainable resource use 4% Categorization & Inscription 1% Demarcation Management committees 2% 2% Protected area staff 25% 3 STRUCTURAL Biological monitoring 4% All conditions from basic level are met Control and surveillance system that guarantees protection of the protected area s natural resources is in place A system to monitor and report on biological indicators prioritized in the management plan is in place Vehicles and boats 5% 4 OPTIMAL (IN SELECTED PROTECTED AREAS ONLY) Infrastructure 6% All conditions from structural level are met Tools to manage the number of visitors to the protected area (e.g., site management and public use plans) are developed and there is a process for educating people working in the protected area about the tools Basic infrastructure, equipment, vehicles, materials, supplies and communications devices for tourism are provided and maintained (note: this does not apply to all protected areas selected for tourism) Tourism activities in the protected area are properly managed and monitored; their impact on the protected area is assessed and mitigated to the highest degree possible Livelihood opportunities for sustainable tourism in and near the protected area are created and promoted (e.g., nature guidance, nonmotorized boats on lagoons, cultural events and souvenir sales) Agreements with communities and individuals living in and near a protected area for sustainable use of natural resources (subsistence and commercial) within the protected area are created and monitored Natural resources designated for sustainable use within the protected area are monitored Funding to help develop value-added products and improve market access for producers is provided Tourism 19% Operating costs 23% 17 A reserve zone is an area that is set aside to be designated in the future as a protected area under one of the available categories. It is not a protected area yet (i.e., it does not have conservation rules or management budget allocated). 24 25
FUNDING TOTAL COSTS, BASELINE FUNDING AND FINANCIAL GAP The graph below depicts the total costs associated with reaching the Phase 1 goal. Costs are highest in the first five years, starting at approximately $42 million per year. This is due to the need to build infrastructure (such as park headquarters and guard posts), as well as to buy vehicles and equipment. The total annual cost ultimately levels off to approximately $29 million. The graph also illustrates the annual financial gap associated with reaching the Phase 1 goal, which is approximately $11.5 million per year over the long-term. A further breakdown of the annual financial gap is depicted in the graph below, which shows the gap per management level. (Dollar values are approximate and may fluctuate slightly based on new information before the single closing.) Costs for enhancing sustainable resource use are relatively low, while costs associated with tourism and reaching the structural level of management require major investments. Expenses related to tourism and reaching the structural level include such things as infrastructure, vehicles and conservation tools (e.g., protected areas management plans, a system-wide tourism strategy, visitor management plans and monitoring tools). In the latter years of National Parks: Peru s Natural Legacy, the financial gap results primarily from recurrent costs related to operations, monitoring and infrastructure maintenance. 25 50 20 40 15 These numbers may change slightly prior to the closing, based on new information about activities to fund. 30 20 10 0 LONG-TERM ANNUAL FINANCIAL GAP $11.5 M/YEAR YEAR Year 1 1 Year YEAR 2 2 Year YEAR 3 3 Year YEAR 4 4 Year YEAR 5 5 Year YEAR 6 6 Year YEAR 7 7 Year YEAR 8 8 Year YEAR 9 9 Year YEAR 10 10 Financial Gap 24 17 13 11 12 12 11 11 11 11 These numbers may change slightly prior to the closing, based on new information about activities to fund. 10 5 0 Optimal Level: Tourism Component Only Optimal Level: Sustainable Resource Use Component Only YEAR Year 1 1 Year YEAR 2 2 Year YEAR 3 3 Year YEAR 4 4 Year YEAR 5 5 Year YEAR 6 6 Year YEAR 7 7 Year YEAR 8 8 Year YEAR 9 9 Year YEAR 10 10 9.5 4.1 1.1 1.9 1.9 1.9 1.5 1.1 1.1 1.1.8.5.5.5.5.4.5.4.4.4 SERNANP Public Funding Baseline 18 18 18 18 18 18 18 18 18 18 Basic and Structural Levels 14 12 10.9 8.6 9.7 9.2 9.2 9.0 9.0 10.2 TOTAL COSTS 42 34 30 29 30 29 29 28 29 29 TOTAL COSTS 24.3 16.6 12.5 11 12.1 11.5 11.2 10.5 10.5 11.7 26 27
FUNDING FUNDING SOURCES FUNDING OVERSIGHT The financial gap is covered in two ways. One is through donations totaling $70 million from private philanthropy and bi-lateral and multi-lateral agencies. These funds are entirely spent down over the 10-year implementation period. At the same time, sources of new funding from sustainable financing mechanisms to be developed by the Peruvian government starting at $3 million per year and increasing to $11.5 million per year is used to cover costs as the donor funds are depleted. Existing (baseline) funding from the government s central budget (based on the FY 2017 budget allocation to SERNANP) also is used and totals $18 million per year. This existing funding and all new recurring funding is formally committed as part of the single closing. Over time, costs and funding estimates fluctuate slightly, based on economic and other variables. The funding model, therefore, is updated as needed until closing (and regularly during implementation), as required by the deal. A board consisting of donors, as well as representatives from government and other partner entities, oversees the funds from the private donors. The board disburses funding each year, as long as predetermined conditions, including conservation milestones and financial commitments, continue to be met. This ensures that all financial needs to cover activities are committed from the start. It also creates financial incentives to minimize the risk of partners not meeting their obligations throughout implementation. mitigation and adaptation to climate change. PROFONANPE, a private nonprofit legally established in 1992, has been a project administrator for the World Bank, KfW (German Development Bank), the Global Environmental Facility, United States Agency for International Development, International Fund for Agricultural Development and the Swedish Government. In 2015, it was accredited by the Green Climate Fund and the Adaptation Fund as an implementing agency. 50 40 The private funds are managed by PROFONANPE, which specializes in raising and managing financial resources aimed at implementing programs and projects that contribute to biodiversity conservation, SERNANP manages the bi-lateral funds. 30 20 $70M $3M/YEAR IN YEAR 1, INCREASING TO $11.5 M/YEAR IN YEAR 10 Is there a photo that can be added to fill some of the white space? $18M/YEAR 10 0 Private, Bilateral and Multilateral Funding YEAR Year 1 1 YEAR Year 2 2 YEAR Year 3 3 YEAR Year 4 4 Year YEAR 5 5 Year YEAR 6 6 Year YEAR 7 7 Year YEAR 8 8 Year YEAR 9 9 Year YEAR 10 22 13 8 6 6 4 3 1 1 0 New Peru Public Funding 3 3 4 5 6 7 8 9 10 11 Existing Public Funding 18 18 18 18 18 18 18 18 18 18 TOTAL COSTS 42 34 30 29 30 29 29 28 29 29 28 29
APPENDI MANAGEMENT LEVEL OF PROTECTED AREAS INCLUDED IN PHASE 1 30 CATEGORY National Park (11) National Sanctuary (4) Historical Sanctuary (1) National Reserve (5) Communal Reserve (10) Protected Forest (3) Reserve Zone (4) PROTECTED AREA (PA) BASIC AND STRUCTURAL MANAGEMENT LEVEL (38 PAs) OPTIMAL MANAGEMENT LEVEL: TOURISM (8 PAs) Tingo María OPTIMAL MANAGEMENT LEVEL: SUSTAINABLE RESOURCE USE (13 PAs) Manu RÍo Abiseo Yanachaga-Chemillén Bahuaja Sonene Cordillera Azul Otishi Alto Purús Ichigkat Muja - Cordillera del Cóndor Güeppi-Sekime Sierra del Divisor Megantoni Pampa Hermosa Tabaconas Namballe Cordillera de Colán Machupicchu Pacaya Samiria Tambopata Allpahuayo Mishana Matsés Pucacuro Yanesha El Sira Amarakaeri Ashaninka Machiguenga Purus Tuntanain Chayu Nain Airo Pai Huimeki Pui San Matias San Carlos Alto Mayo Santiago Comaina Sierra del Divisor Río Nieva Yaguas
ANDES AMAZON FUND PERU S NATURAL LEGACY IS LED BY THE COUNTRY OF PERU, UNDER THE LEADERSHIP OF THE PERU MINISTRY OF ENVIRONMENT THROUGH THE PERUVIAN NATIONAL PARKS SERVICE. THE ADVISORY COMMITTEE FOR THE INITIATIVE INCLUDES THE ANDES AMAZON FUND, GORDON AND BETTY MOORE FOUNDATION, PERUVIAN NATIONAL PARKS SERVICE, PERUVIAN SOCIETY FOR ENVIRONMENTAL LAW, PERUVIAN TRUST FUND FOR NATIONAL PARKS AND PROTECTED AREAS, AND WORLD WILDLIFE FUND. FOR MORE INFORMATION CONTACT: Pedro Gamboa pgamboa@sernanp.gob.pe Meg Symington meg.symington@wwfus.org Jessica Villanueva jessica.villanueva@wwfperu.org MAY 2017