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PERU
–
C OTAHUASI B ASIN (PIMS 1658)
M
EDIUM
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SIZED
P
ROJECT
B
RIEF
P ROJECT S UMMARY
P ROJECT I DENTIFIERS
1. Project name:
Integrated Ecosystem Management in the Cotahuasi
Basin
3. Country or countries in which the project is being implemented:
Peru
5. GEF focal area (s):
Biodiversity and Land Degradation
2. GEF Implementing Agency:
United Nations Development Program - UNDP
4. Country eligibility:
Peru ratified the Convention on Biological Diversity through Law Nº 26181 on April 30, 1993.
Peru ratified the Convention to Combat
Desertification on November 9, 1995
6. Operational program/Short-term measure:
OP # 12: “Integrated Ecosystem Management”
SP: EM-1
7. Project linkage to national priorities, action plans, and programs:
The proposed project will implement a system of integrated ecosystem management in the spectacular and remote Cotahuasi river basin in the southwestern Andes of Peru. The project will encompass the entire river basin and provide a comprehensive system for natural resources management, sustainable development, and the conservation of globally significant biodiversity and agro-biodiversity. Local stakeholders will strengthen existing communal agricultural and resource management systems and benefit from technical training and outreach and environmental education and awareness activities. The entire basin will be categorized into distinct ecological zones with differing management guidelines, including the first conservation zones in the region for unique and endangered ecosystems and species.
The project is consistent with the GEF operational programme on integrated ecosystem management
(OP12) in that it seeks to provide a comprehensive framework for natural resource management planning and implementation on an ecosystem scale. To this end, project objectives and corresponding activities, have been designed to promote (i) inter-sectoral and participatory planning approaches to integrated ecosystem management; (ii) identifying barriers and constraints currently limiting the adoption of comprehensive ecosystem management interventions; (iii) addressing and prioritizing needed policy, regulatory, incentive structures, and institutional reforms; (iv) strengthening the technical, managerial, information and decision-making capacities of organizations responsible for planning and implementation of integrated ecosystem management programmes; and (v) targeted investments in support of integrated ecosystem approaches.
The Cotahuasi Basin is one of thirty-eight areas that have been given priority by the National Institute of
Natural Resources (INRENA) as part of the Strategy of a National System of Peruvian Natural Protected
Areas (National Master Plan). The legislation which officially declares the basin a Protected Natural Area has not yet been promulgated, nor has it been included in any category. However, the basin's population and its authorities expect it to be a Landscape Reserve, since this is the only category which allows them to participate in the administration of the Protected Natural Area, in addition to protecting the natural, esthetic and cultural values of the area. The Cotahuasi Basin Protected Natural Area will represent an important model for SINANPE in several ways. First, it will be the first protected area to fall into the newly established category of Landscape Reserve, and thus will provide a model for SINANPE in
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developing such areas. Second, the Cotahuasi Basin is the first protected area in Peru where the political jurisdiction (La Union Province) corresponds with the geographical boundaries of the protected area (the
Cotahuasi basin), providing a unique opportunity to closely integrate provincial (and municipal) authorities in the protected area’s management, an opportunity that this project takes full advantage of. Finally, the proposed project will work extensively with local community economic interests (in particular, organic agriculture producers’ associations) on biodiversity and landscape conservation, providing another model that could be replicated at other selected protected areas within the SINANPE system.
The project area includes several ecosystem types (mountain pastures, relict dryland forests, peat bog ecosystems) subject to desertification and land degradation. The project will help to conserve these areas and also address priorities identified in Peru’s draft National Action Plan (NAP) under the UN Convention to Combat Desertification, including: development of information networks of scientific and academic, public and private institutions related with the problem of desertification; participation in the national system of monitoring of desertification; strengthening food security and emergency plans to mitigate the effects of drought; creation and strengthening of associations to fight against desertification; and increasing the active participation of communities affected by desertification. Project proponent AEDES is responsible for information coordination within the Working Group of the Regional Environmental
Commission of Arequipa, which is responsible for producing a specific plan of action for the Arequipa
Region under the NAP.
The Project will complement ongoing activities oriented toward fulfilling Article XI of the Preliminary
Rubric of Environment Legislation
1
, in particular, it is directed at Chapter X, which refers to the management of Protected Natural Areas in accordance with the principles of the Global Conservation
Strategy and the specific norms of the Law on Protected Natural Areas
2
. Guidance is likewise provided by the Organic Law for the use of natural resources
3 and by the Law on Conservation and Sustainable
Utilization of Biological Diversity
4
. The project will contribute to achieving the biodiversity conservation objectives of the National Biodiversity Strategy and Action Plan (NBSAP), including improved knowledge
& management systems, better information and institutional mechanisms, and equitable sharing of benefits of biodiversity.
The Project fits into the Peruvian government’s current emphasis on promoting integrated ecosystem management programs. Among the current programs are the Proyecto Especial Lago Titicaca (PELT) for the management of the Lake Titicaca Ecosystem, initiated by the Peruvian Government and supported by
GEF, the Biosphere Reserve of the North (mangroves, dry forests), supported by Holland Cooperation and implemented by Pro Naturaleza and INRENA, and a program for conserving dry (algarrobo) forests along the northern coast of Peru.
The Project also has direct linkages with the new GEF Strategic Priorities in Biodiversity and Land
Degradation. The project will support GEF’s Strategic Priority 1 for Biodiversity (Catalyzing
Sustainability of Protected Areas) by ensuring the sustainable conservation of globally significant mountain biodiversity in a newly formed protected natural area (Landscape Reserve) within the Cotahuasi basin. Biodiversity conservation within the protected area will be supported by strict conservation zones for the protection of biodiversity at all levels (genetic, species, ecosystem); by instituting effective zoning and regulation of land use; by frameworks for cooperation and participation in each of the conservation zones; and by strengthening coordination between government agencies at national and regional levels,
1 Legislative Decree n° 613, 20 January 1990.
2 Law 26843, 4 July 1997.
3 Law 26821. Organic Law for the Utilization of Natural Resources, 26 June 1997.
4 Law 26839. Law on the Conservation and Sustainable Utilization of Biological Diversity, 16 July 1997.
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NGOs, and the private sector.
In addition, the project will support GEF’s Strategic Priority 2 for Biodiversity (Mainstreaming
Biodiversity Conservation in Production Systems) by establishing zones within the basin where sustainable activities may be carried out which satisfy both conservation and development goals. Efforts to promote sustainable management of productive systems will be enhanced by systems for developing and implementing alternative income-generating activities, including tourism, organic agriculture, and natural medicines; by reforestation zones in which native species are sustainably used to provide fodder, wood for burning and other domestic uses; by sustainable agricultural management systems that engage a significant percentage of the local population in organic agriculture production; and by grazing systems which take into account the carrying capacity of existing pastures and regenerate degraded pastures. The project will mainstream biodiversity conservation principles and practices into the agriculture, livestock, forestry, and tourism sectors by promoting integrated planning and management across sectoral institutions; by increasing relevant knowledge and building partnerships between government agencies, the private sector, NGOs, and communities; and by promoting market based measures, such as coordinated marketing, micro-credit, etc. to support mainstreaming of biodiversity conservation objectives among farmers and in small and medium-sized enterprises. Field-tested strategies for in-situ conservation of agrobiodiversity and integrated ecosystem management within a protected area will provide lessons learned and best practices to inform the policies and procedures of Peru’s protected areas agency (INRENA), in particular for the newly established category of landscape reserves.
Finally, the project will support GEF’s Strategic Priority 2 for Land Degradation (Implementation of
Innovative and Indigenous Sustainable Land Management Practices) by establishing ecosystem restoration zones in areas of the river basin prone to erosion; by promoting terracing and other traditional indigenous soil conservation practices; and by establishing grazing systems that take into account the carrying capacity of existing pastures and regenerate degraded pastures. The project also will establish capacity building and training programs for rural inhabitants and authorities on appropriate agricultural practices, water resources management, and grazing strategies for different kinds of terrain. The project will document various traditional sustainable resource use strategies and techniques of the indigenous population, and apply and disseminate these as part of the training and pilot project activities.
8. GEF national operational focal point and date of country endorsement:
Endorsed by Consejo Nacional del Ambiente (CONAM): May 5, 2002
P
ROJECT
O
BJECTIVES AND
A
CTIVITIES
9. Project rationale and objectives:
Project Long-Term Objective
Conservation of globally significant biological diversity and prevention and reversal of land degradation within the Cotahuasi basin.
Project Immediate Objective
By the end of the project, an integrated ecosystem management system will be in operation, created, managed and supported by local communities. This system will direct the conservation and sustainable use
Indicators:
By Project end,
The 474,600 hectares of the Cotahuasi Basin have increased protection from land degradation and threats to biodiversity as part of a legally established Protected Natural Area
(Landscape Reserve) by the end of year 2.
Local and national government institutions active in resource management and rural development within the Cotahuasi Basin have increased capacities in integrated ecosystem management and are applying them
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of biodiversity and other natural resources, reduce land degradation and desertification, and control mining, tourism and other economic activities in the project area.
10. Project outcomes:
1. Globally significant biodiversity protected in new conservation zones and sustainably managed in the rest of the Cotahuasi river basin
2. Natural resources sustainably and productively managed and ecosystem integrity restored under integrated ecosystem management system throughout the 9 districts of the basin by the end of project.
Indicators:
Area of priority conservation zones for the protection of biodiversity within the
Cotahuasi basin have increased from 0 hectares at project start to no less than 50,000 hectares by the end of year 2
At the end of the project, local populations of critical indicator species (identified in Annex
2) in priority zones have remained constant or increased compared to project start levels
Long-term integrated ecosystem management plans developed and operationalized for the
474,600 hectares of the basin by the end of project
By the end of the project, a reduction in soil erosion on 82,000 hectares in the Very High
Altitude Pasture Zone of 30% from current levels (baseline to be determined during year 1 of the project)
By the end of the project, a 50% reduction in the current rate of deforestation (baseline to be determined during year 1 of the project) in forest areas located within the priority conservation zones of the Cotahuasi basin
Landscape Reserve”.
Land area within the Cotahuasi basin benefiting from targeted restoration activities increases from 100 hectares at start of project to 970 hectares by the end of project (total increase of 870 hectares):
70 hectares restored as native forest ecosystems, with a focus on native species of value for fodder and firewood and for soil conservation and regeneration
By the end of project, 100% elimination of the use of non-organic fertilizers on 400 hectares under sustainable agricultural management
By the end of project, improved pasture management techniques (grazing rotation, increased fodder production) have
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3. Local populations benefiting from increased incomes derived from alternative livelihoods based on sustainable natural resource use
4. Local people and authorities aware of links between resource use and degradation, and trained in and supportive of integrated management of the basin’s ecosystems eliminated soil erosion on 400 hectares of pasture land
Training and capacity strengthening so that at least 100 local officials, 200 community leaders, and 75 government officials and NGO representatives are implementing integrated management of the basin's ecosystems completed by the end of project
Increased organic agricultural production on
400 hectares, certified according to European
Union Regulation 2092/91, and marketed within Peru and internationally
Number of varieties of native crops widely cultivated by local inhabitants increases from
3 at start of project to 8 by end of project
By the end of project, 400 new producers in organic agriculture production have increased their incomes by an average of US$350/year and 300 new producers in medicinal/aromatic plant production have increased their incomes by an average of US$400/year, as compared to project start
Increased income from demonstration ecotourism lodges and associated services in
9 pilot communities is generating $1.5 million in annual revenues for local inhabitants by project end
800 local inhabitants in 18 pilot communities trained in and applying eco-business strategies by the end of project, resulting in the establishment of at least 30 small organic agricultural processing centers and 120 businesses linked to ecotourism
500 farmers in 18 pilot communities trained in and applying sustainable land management on no less than 800 hectares by end of project
(as detailed under Outcome 2)
100 local leaders in 18 pilot communities trained in and applying environmental and social impact assessment methodologies and sustainable resource use strategies by the end of project
70% of the population of the basin have received and are applying education and training on the integration of economic activities and conservation objectives by the
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5. Physical infrastructure in place to support integrated ecosystem management of the Cotahuasi basin
11. Project activities to achieve outcomes (including cost in US$ or local currency of each activity):
Activity 1: Definition of basin’s priority conservation zones and establishment of Protected Natural Area
(US$542,000 or 11% of the Project)
Activity 2: Participatory development and implementation of basin-wide integrated ecosystem management strategy (US$1,258,000 or 26% of the
Project) end of project
Investments in water catchment and irrigation systems benefiting no less than 400 organic agriculture producers by the end of project
Investments in market access mechanisms
(roads, communications) benefiting no less than 120 ecotourism related businesses and
30 organic agricultural processing centers by the end of project
Indicators:
* Baseline physical, biological, and socioeconomic characteristics of the basin established
* Ecological and socio-economic studies carried out and published
* Ecological zones agreed to and finalized
* Formal establishment of a Protected Natural
Area
* Participatory development of strategies for the long-term management of the basin's ecosystems carried out
* Basic elements of a basin-wide integrated ecosystem management plan finalized and operationalized
* Completion of training programs for local authorities and public and private bodies on application of IEM at provincial and district
Activity 3: Alternative economic activities based on the sustainable use of natural resources (US$1,213,000 or
25% of the Project) levels and for conservation zones
* Demonstration projects in organic agriculture and medicinal and aromatic herbs implemented in nine districts
* Provincial eco-tourism strategic plan agreed to and implemented
* A computerized information and publication system in operation
Activity 4: Education and training programs for local * Technical training for local leaders and inhabitants in the sustainable use of natural resources producers in nine districts carried out
(US$732,000 or 15% of the Project)
Activity 5: Development of physical infrastructure to
* Completion of training programs for population of the province in participating in and implementing IEM plans
* Plans for the sustainable management of water
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support integrated ecosystem management
(US$1,085,000 or 23% of the Project) resources in the micro-basins of nine districts agreed to and implemented
* An environmentally acceptable program for extending and improving the road network, electrical energy and telecommunications systems agreed to and implemented
12. Estimated budget (in US$):
PDF-A: 25,000
GEF: 870,000
Co-financing: 3,960,000
AEDES: 870,000
APCO: 180,000
FEMULU: 90,000
Reg. Govt.: 1,500,000
Municipalidad Charcana: 115,000
Municipalidad Huaynacotas: 200,000
Municipalidad La Union: 605,000
Municipalidad Puica: 200,000
Municipalidad Quechualla 100,000
Municipalidad Toro: 100,000
TOTAL: 4,855,000
I
NFORMATION ON
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NSTITUTION
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UBMITTING
P
ROJECT
B
RIEF
13. Information on project proposer:
AEDES is a non-governmental organization created in 1994 by a group of professionals with diverse specialties who work together as consultants on all aspects of Rural Development. AEDES has been working in the Project area for the last seven years. It has promoted eco-businesses that assist the local population in becoming involved in the sustainable use and conservation of the area’s biodiversity and, through an agreement between private and public organizations and the local population, has led to the conservation of the biological wealth of the Cotahuasi watershed.
Within the Cotahuasi basin, AEDES has focused on three main areas:
1.
Study of natural resources, with the participation of the population, to develop strategies for local sustainable management. The most important activity has been a study of the biodiversity of the
Cotahuasi river basin, and AEDES’ work in this regard has prompted CONAM (National
Environmental Council) to appoint AEDES as the Technical Secretary (lead agency) of the Technical
Group for the Sustainable Management of the Biodiversity of the sub-river basin of the Cotahuasi.
2.
Promotion of ecobusinesses, designed to show the local population how to profit from the conservation of biodiversity and the sustainable handling of natural resources in general. For the past four years,
AEDES in conjunction with local groups has undertaken investigations of the rich biodiversity (floral and faunal) in the Project area with the intent of identifying species that can play a role in ecobusinesses such as organic agriculture and ecotourism. The most significant advance is the implementation of a program of organic production for domestic and international markets, which is
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now in its sixth year of operation (2001-2002).
3.
Local management of natural resources, particularly the promotion of sustainable development at the watershed level. The most important advance is the execution of local Agenda 21 programs (1996-
2001) at the provincial (river basin) level and in four of the eleven districts (sub river basins), in which local community organizations have played an active role. In the last Ecodiálogo (1999), AEDES received from CONAM the single Honorable Mention that was granted for its contribution to sustainable development in the area.
14. Information on proposed executing agency (if different from above):
N/C
15. Date of initial submission of project concept: June 25, 1998
I NFORMATION TO BE C OMPLETED BY I MPLEMENTING A GENCY :
16. Project identification number: PIMS 1658
17. Implementing Agency contact person:
Lita Paparoni, Regional Coordinator, UNDP/GEF, Presidente Masaryk 29, GEF Regional Unit, 10th Floor,
Colonia Chapultepec Morales, 11570 Mexico DF, Tel: (5255) 52 63 98 14, Fax (5255) 52 50 25 24; email: lita.paparoni@undp.org
Raúl Tolmos, Oficial de Programa, PNUD, Av. Benavides 786, Miraflores Lima – Peru. Tel: 51-1-
2133200; Fax: 51-1-241- 4839; e-mail: raul.tolmos@pnud.org.pe
18. Project linkage to Implementing Agency program(s):
The proposed project complements the current Country Cooperation Framework: 2001-2003 (extended to
2005), both thematically, and with respect to executing arrangements. Under the CCF, UNDP has agreed to assist Peru in meeting commitments arising out of various international agreements, including the
Convention on Biological Diversity (CBD). Moreover, the CCF proposes “support for the environment and natural resources conservation” as a specific programming area for UNDP support. The framework also promotes projects that combat deforestation and desertification while maintaining Peru’s biological diversity, and projects that “restore the productive capacity of the agricultural sector...” and “upgrade irrigation and drainage systems... and improve the management of water and soil”. Finally, the CCF encourages increased participation by grass-roots community organizations and non-governmental organizations (NGOs) in the execution of projects carried out with assistance of UNDP.
The proposed project also complies with UNDP support for and participation in the national action program (NAP Peru), and specifically with its goal of formulating projects in issues areas relevant to desertification, including: 1) conservation of special ecosystems of the arid coast and semiarid mountains of Peru; 2) recovering traditional knowledge, technologies, and practices in the fight against desertification in Peru; 3) implementation of an information network in the fight against the desertification at the national level; 4) optimization and development of systems of early alert against desertification in Peru; 5) creation of an atlas of desertification in Peru; and 6) support the participation of women in the fight against desertification in Peru.
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LIST OF ACRONYMS
AEDES Specialized Sustainable Development Association
AMPE Association of Peruvian Municipal Authorities
ANP Protected Natural Area
APCO Association of Organic Crop Growers
CDD District Development Council
CI Conservation International
CITES Convention International on Threatened and Endangered Species
CONAM National Environment Council
FEMULU La Unión Women’s Federation
FIDA International Fund for the Development of Agriculture
GEF Global Environment Facility
IPGRI International Plant Genetic Resources Institute
INRENA National Institute of Natural Resources
IRECA Regional Institute of Environmental Sciences - Arequipa
IUCN International Union for the Conservation of Nature
MCPLU La Unión Provincial Cooperation Committee
MITINCI Ministry of Industry, Tourism, Integration and International Commerce
PAMA Environmental Adaptation and Management Program
PELT Special Project for Lake Titicaca
PRONOMACHCS National Program for River Basin Management and Soil Conservation
SEP Southern Zone of Extreme Poverty in Perú
SINANPE National System of State-Protected Natural Areas
UNDP United Nations Development Programme
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1. PROJECT RATIONALE AND OBJECTIVES
1.
Peru is a country in the midst of a comprehensive reassessment of its environmental policies and norms. During the 1990s, the Peruvian Government issued almost 25% of its environmental legislation for the entire twentieth century. Guiding legislation on the natural environment and resources (
Código del Medio Ambiente y los Recursos Naturales
) was promulgated, assigning priority to environmental policy through the creation of an environmental authority (CONAM); environmental management procedures were developed and implemented through extensive studies on environmental impacts and programs for environmental adaptation and management; and for the first time, systems were created for providing citizen participation in environmental management. As a participating member of the Convention on Biological Diversity and the
Convention to Combat Desertification, Peru has incorporated in its laws, and particularly in the
Peruvian Constitution, a re-conceptualization of national policy on the environment, one which gives emphasis to ecosystem wide planning and to supporting sustainable development through the sustainable exploitation of natural resources.
2.
With these new policies, Peru is abandoning both purely protectionist strategies and the intensive and unsustainable use of resources. For the recently designated 38 zones that constitute the National System of State-Protected Natural Areas (SINANPE), including the proposed project area, biodiversity shall be managed and protected under the rubric of ecosystem planning and increased public participation. However, continued limited budgets and a lack of participative and sustainable actions for the conservation and use of natural resources means many management activities remain mired in the past, and it has become necessary for local people, with support from private institutions, to take the initiative in overcoming this deficiency.
Such a situation exists at the site of the proposed project in the Cotahuasi basin, where local stakeholders have proposed the creation of a Landscape Reserve within the framework of Peru’s regulations pertaining to Protected Natural Areas. The Landscape Reserve is a category of
Protected Natural Area that explicitly calls for the local population to participate in the administration of the area.
3.
The Cotahuasi basin is a remote mountain river valley located in the southwest Andes of
Peru. The project site encompasses the entire river basin, location of an exceptional array of wild flora and fauna and unique agro-biodiversity resources. In addition to a high level of biodiversity, the basin harbors a corresponding diversity of human activities dependent on the basin's natural resources. Some of these activities are carried out in a sustainable manner, while others do not consider this aspect; some exert a considerable pressure on the resources, while others under-utilize them; some beneficial practices are being abandoned, while other inappropriate ones are being adopted. The harmony which once existed between natural elements and human activities in the basin is beginning to be threatened by the indiscriminate construction of road networks, emerging and abusive mining activities, and an unmanaged flow of tourists. There is, moreover, an increase in the use of agricultural chemicals, and increasing use of practices such as the elimination of terraces, stubble-burning, non-rotation of crops, exotic seed varieties, and inappropriate irrigation techniques, that are polluting the local environment and accelerating desertification. Finally, native flora and fauna are declining due to overexploitation and the reduction, fragmentation, and destruction of critical habitat.
4.
The project is intended to establish a participative focus on the use of the Cotahuasi basin's natural resources, guided by an ecosystem management strategy in accordance with the Peruvian environmental laws (including regulations governing Protected Natural Areas), and with well-
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defined ecological, economic and social strategies that guarantee the conservation and sustainable use of biological diversity and water and soil resources. By the end of the project, ecosystem management plans created, supported, and implemented by local communities will be in operation. The conservation and sustainable use of biodiversity and other resources will be achieved through ecological and resource use zoning, the establishment of priority protected zones for biodiversity hotspots, and the adoption of sustainable use practices for human activities. Adoption of appropriate natural resource use technologies and practices, and controls on mining, tourism and other economic activities in the project area, will reduce desertification and the deterioration of soil and water quality. Finally, the local communities will benefit from viable and sustainable economic alternatives such as organic agriculture, processing of cultivated medicinal plants, and tourism.
5.
The project is oriented toward GEF Operational Program 12 – Integrated Ecosystem
Management and fulfills many of its key requirements and objectives. The project is designed to provide global benefits through the conservation of globally significant endangered flora and fauna, and the prevention of severe deterioration of soil and water resources. Implementation of the project will be at the level of the entire ecosystem (Cotahuasi basin), and will take a crosssectoral approach through strengthening the capacities of institutions to coordinate responses to environmental challenges (e.g. designing guidelines for resource use and production systems, provision of technical aid for in-field demonstrations, information sharing systems). In so doing, the project will gather the necessary ecological/social/environmental baseline information
(including traditional knowledge of native cultivars and local ecosystem functioning), develop an appropriate policy and incentive framework (including financial instruments to address capital costs and economic risks), and in the end, create a participatory integrated ecosystem management capacity for the region.
2. CURRENT SITUATION
Environmental Situation
6.
The Project Area is the Cotahuasi basin, a valley on the western slopes of the Andes that coincides approximately with that of La Unión province, an area of 474,600 hectares (see Map
1). The Cotahuasi Basin ranges in altitude between 900m (Subtropical Pacific Desert) and
6100m (Subtropical Puna), and includes the world's deepest canyon. Most of the basin is very rugged terrain, dominated by canyons, plateaus, ravines, steep slopes, mountain chains, and puna
(high altitude rolling terrain), and can be categorized into three altitudinal zones that differ markedly in their physical and biological characteristics (see Map 2).

The high zone (above 3,800 meters) - primarily arid terrain with some wetlands, relict forest patches, a high diversity of wild fauna and flora (with particularly high endemism among the forest species), and ranching of South America camelid species (lamas and alpacas).

The middle zone (between 2,300 and 3,800 meters) – the area with the most water and where most of the basin’s inhabitants live and work, mainly in agriculture. It has a significant biodiversity, especially in mosaics of wild vegetation on the hillsides.

The lower zone (between 900 and 2,300 meters) - extremely arid terrain that forms the limit of the Sechura and Atacama Deserts. Human activity is concentrated in some small oases which harbor a variety of fruits and xerophytic species.
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7.
Although distinct, the three ecological zones are inextricably linked by the flow of water resources. Human resource-management practices are traditionally designed around this physical condition, so that the management of irrigation water is based on careful agreements regarding sharing among different altitudinal levels and constraints on upstream uses that affect downstream populations. A further example which serves are agreements between the upper and intermediate zones so that cattle can be raised in the former and crops can be grown in the latter.
As a result a steady flow of resources travels along trading (barter) routes between the three zones. Various native species also depend on the variation in ecosystems and conditions along this vertical gradient, including some threatened and endangered species such as the torrent duck
( Merganetta armata ), designated vulnerable by the Government of Peru.
8.
As part of the Tropical Andes, the Cotahuasi Basin is located within one of the planet’s richest biodiversity hotspots. According to Dinerstein et al., the area is part of Ecoregion 173, comprising the Sechura desert, considered as vulnerable, regionally outstanding and of moderate priority at regional scale; and Ecoregion 141, comprising the Central Andean Puna, considered as vulnerable, regionally outstanding, and of highest priority for conservation at regional scale.
The outstanding array of biodiversity in the area is in large part due to a unique combination of physical, climatic, and biological characteristics: 1) The altitudinal gradient, ranging from 900m and to more than 6000m within 30 km.; 2) Its location as an ecotone between the Sechura and
Atacama deserts of the Central and Southern Peruvian Andes, the South American Altiplano, and the western slopes of the Andes; 3) Its close proximity to the eastern slopes of the Andes compared with other areas of southern Perú; 4) A high variety of micro-climates due to the interrelation between the desert zones (Atacama and Sechura) and the humid conditions produced by the extensive glaciers and snow-capped peaks ringing the basin; 5) The interaction of diverse physical conditions owing to the rugged and variable terrain and climatic variability
(particularly humidity) which permits the development of numerous ecological niches; 6)
Ecological processes of diversification, species formation, colonization, expansion, invasion, migration, and the presence of glacial era refuges, which have taken place at different rates and at different times in this region of the Andes; 7) The isolation of the basin and relatively low impact of human activities.
9.
During the PDF-A process, the basin was differentiated into seven zones (see Annex 3 –
Ecological Zones) based on criteria developed by Conservation International to define world biodiversity hotspots, and additional criteria relating to the management of natural resources and the presence of the human population. The ecological zones are: 1. Warm Valley; 2. Humid
Scrubland; 3. Semi-dry Scrubland; 4. Dry Scrubland; 5. Upper Andean Swamp; 6. Very High
Altitude Pasture; and 7. Fluvial Mesetas. A brief description of each zone is provided in Annex
3, indicating position, physio-biotic and socio-economic characteristics, threats to biodiversity and soil and water resources, and other aspects of interest. The distribution of the important species (threatened and endemic) within each of the ecological zones is given in Annex 2 (List of
Species).
10.
Unlike much of the larger region, the Cotahuasi Basin still retains conditions favorable to the basic survival functions of native flora and fauna, and many endemic and endangered plant, mammal, bird, amphibian, fish, and invertebrate species continue to exist there. According to a study of fauna (AEDES, 1997-2001)
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, the basin has 18 species endemic to the Peruvian Andes.
Two species which are new to science (a frog and a snake) are endemic to the Cotahuasi Basin.
There are 18 species which are protected at national level (Supreme Decree n° 013-99-AG) 3
, 18
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classified as threatened by the International Union for the Conservation of Nature, and 34 included in the CITES list.
Furthermore, there have been new recordings of species of flora and fauna for the south of Perú, widening their respective ranges of altitudinal and lateral distribution. These species include smaller birds ( Grallaria andicola ; Leptasthenura pileata ;
Anairetes alpinus ; Poospiza caesar ; Asthenes humilis ; Asthenes sp .; Asthenes wyatti ; Myiarchus tuberculifer ), the fruit-eating bat ( Sturnira erythromos ) and, among the plants, Tristerix sp .;
Nototriche sp .; Polylepis incana ; and Senecio sp .
11.
One species of mammal ( Thylamis pallidior ) and one bird species ( Xenospingus concolor ), among the 18 species protected by Peruvian law present in the basin, are not to be found within any Conservation Unit in the country 6 , though they are abundant in the Cotahuasi Basin. Nine species, the Andean condor ( Vultur gryphus ), the Andean deer or huemul ( Hippocamelus antisensis
), the vicuña (
Vicugna vicugna ), the huanaco ( Lama guanicoe ), the sea otter ( Lontra felina ), the Andean cat ( Oreailurus jacobita ), and three species of flamingoes ( Phoenicopterus andinus , P.jamesi
and P.chiloensis
) are considered vulnerable or endangered by Peruvian law, and are classed as endangered at the global level in the IUCN Red Book and by CITES (Annex
2). A population of a protected species of otter, with a population of 200 in all of Peru, and believed until now to inhabit only the sea coast and river estuaries, has been found recently in the deepest part of the Cotahuasi canyon.
12.
Initial floral studies (AEDES, 1997 and 1998) have identified 430 species in the Cotahuasi basin. Of these, approximately 160 species have some identified medicinal or aromatic use, including myrtle ( Luma chequen ), muña
( Minthostachys mollis ), qerqo ( Carica agusti ), huarnapo ( Jatropha macrantha ) and jurutmi ( Heliotropium arborescens ). There are some species of flora whose distribution is limited to the basin ( Malvaceae ) while others are endemic to the Peruvian Andes (some 40 species) and/or are protected, such as the puya ( Puya raimondii ), queñua
( Polylepis incana ), cedro de altura ( Cedrela lilloi ) and the algarrobo
( Prosopis pallida ). Three species are considered threatened or endangered by the IUCN and 24 by CITES.
13.
The diverse climates and soils of the area and a long history of human habitation and trade have also given rise to significant agro-biodiversity within the Cotahuasi basin. The Andes were characterized as one of the world's most important centers of origin for cultivated plant varieties by the famous Russian researcher and geneticist N. Vavilov, and a preliminary survey of the diversity of plants cultivated in the Cotahuasi Basin
8 has identified more than 700 ecotyopes and morphotypes (including, for example, 42 ecotypes of quinoa and 101 of native potatoes).
Estimates made by scientists taking the inventories indicate that the number of ecotypes and morphotypes of plants cultivated in the basin may be in excess of 1,500. Some of the native varieties to be found in the basin have disappeared from other zones of the Andes, as with chaucha potatoes (a relict variety with strong disease resistance). In addition, many wild relatives of these cultivated varieties persist in the basin, and these represent a reserve for replenishing the genetic material of the present-day crops and potential for the development of new varieties with special characteristics. Examples of these wild plants are the wild potatoes
( Solanum spp .), tomatoes ( Lycopersicon spp .), año
or isaño
( Tropaeolum tuberosum ), and relatives of quinoa ( Chenopodium spp .) and amaranth ( Amaranthus hibridus ).
14.
To date, no studies have been carried out to compare and prioritize areas subject to erosion and land degradation in Peru, including even the National Action Plan under the UNCCD, which is still a draft document with no analysis of spatial priorities. Nevertheless, the Cotahuasi Basin,
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owing to its geographic location in an area where the Sechura and Antofagasta Deserts overlap, is a zone highly vulnerable to land degradation and desertification and is considered one of the most fragile zones in the western Andes. The canyons of the Cotahuasi basin have an average slope between 50% and 70%, and vegetation is largely restricted to the small oases formed by agricultural terraces. The higher altitude cordillera and puna zones are made up primarily of erosion-prone soils, so that only 17% of these zones are suitable for low-impact pasture, while another 81% cannot sustain agriculture or grazing at all. Droughts are a frequent occurrence in the basin, in particular in the lower reaches of the canyons where much of the agriculture is situated. Rates of soil erosion and deforestation within the basin have not been measured, but such analyses will be carried out during year 1 of the proposed project to establish a baseline for the impact of project interventions (as noted in the description of project activities and the logical framework matrix).
Baseline Activities
15.
Human beings have inhabited the Cotahuasi Basin for more than 10,000 years, and for most of this period have managed the area's resources sustainably, with economic activities that fall within the carrying capacity of local ecosystems. Approximately 17,300 people live within the basin, almost all of them indigenous members of the Wari, Chankas, Incas, and other local peoples (97% of the population speaks Quecha). According to a 1994 agrarian census, 154,116 hectares (31.20% of the basin) are suitable for agriculture, and 140,132 hectares (28.37% of the basin) are suitable for natural pasture. In practice, however, only a small fraction of these areas are actually under cultivation or used as pasture at this time. Approximately 70% of the human population is centered along the Cotahuasi river, where farming is confined to a limited area of about 6,000 hectares. Agricultural lands are mostly in private hands and primarily of a small size
(less than one hectare). Additional isolated groups live in the puna highlands above the valley floor where they manage sheep and vicuna herds, with ranchers typically managing lands larger than ten hectares.
16. The isolation of the basin has long protected it from most of the destructive development practices that have occurred in other parts of the Andes. As a result, however, the province is one of the least economically developed in all of Perú. For the past several decades, there has been a high level of emigration out of the valley as people seek better income opportunities elsewhere. In particular, the emigration of able-bodied men out of the basin has prompted the basin’s remaining residents to adopt increasingly exploitative natural resource management practices to make up for lost incomes and manpower. Thus, even while the area’s population has decreased, both deforestation and overgrazing in the Cotahuasi basin have increased, causing erosion, habitat destruction, and a reduction of the species of flora and fauna native to the area.
17. Currently, there is no integrated strategy and little coordinated management of natural resources in the Cotahuasi basin. There is little documented knowledge of local species, and even less awareness among local populations of the existence or importance of biodiversity in the area. Agricultural lands and pasturelands are managed at the individual or communal level, and often constrained by inappropriate government regulations, and unsustainable governmentsupported plans and projects aimed at short term economic gains. Management of water resources is also limited, with almost no consideration of water quality or quantity in planning or zoning strategies for the basin. In general, although the population of the Cotahuasi basin depends heavily on the use of natural resources, in particular biodiversity, it does so without
15

giving consideration to the fact that its activities affect, or are affected by, people and resources who inhabit other parts of the basin.
18. Two examples help to illustrate the negative effects of the lack of coordination in the region.
The first is the treatment of an area including a large stand of column cacti ( Weberbauerocereus rahui
), a species endemic to Perú and with a very restricted distribution. The site supports an important colony of an endemic species of bat ( Platalina genovensium ) which has co-evolved with the cacti. Unaware of the importance of these two species, and disregarding its status as one of the principal tourist attractions in the lower zone of the basin, the local authorities decided to eliminate the cactus stand in order to develop a new area of irrigated agriculture. With better information and planning guidelines, this “development” activity could have been reoriented to an available nearby area with better soils. A second case which serves to illustrate intra-regional effects relates to the promotion by state agencies of non-native varieties of cultivated plants in the fluvial meseta zone. This zone, where 40% of the basin’s population resides, is the key locus for exchange of native plant seeds for the entire basin, and the abandonment of native varieties there gravely threatens traditional agricultural practices throughout the area.
19. In response to these and other similar challenges, the local people of the basin initiated in
1996 a process to improve basin-wide cooperation, starting with the agricultural sector. The first step was planning and participation building to expand crop diversity and link local agricultural producers to regional, national, and international markets. AEDES began providing education, training and studies to local farmers to help them reap the economic benefits gained by conservation and sustainable use of diverse food crop varieties, and the recovery of traditional knowledge, especially that of women, related to ethnobiology. Local farmer’s groups developed management plans for medicinal and aromatic plants for export (through which they have identified 160 potentially useful species), and are now working with micro-businesses in the basin who transform some of these crops into products ready for export (e.g. aromatic plants that will be used as preservatives).
20. The most successful initiative, however, has been the establishment of a certified organic farming program in the project area. In the year 2000, the fifth year of the program, 350 farmers participated and sold approximately 180 tons of organically-grown products (amaranth, quinoa, broad beans, mulberry corn, beans and yacón
) .
Furthermore, through Internet research on agroecological associations and organic food products wholesalers, the organic farmer’s association was able to sell the entire year’s output for export to three purchasers, in Germany, North
America and New Zealand (further details on organic farming and agriculture are provided in
Annex 4).
21. To support the further development of organic farming in the area, AEDES and the local
Association of Organic Crop Growers (APCO) have developed a micro-credit program supported by the Perú - Canada Equivalence Fund and managed by a national credit agency
.
This fund has supported the development of organic agriculture in the basin during a three-year period, providing financial support for training, organic certification, and investments of smallholders in agricultural improvement activities and adoption of new crop varieties. In addition, AEDES has developed draft agreements with two regional credit agencies for additional micro-credit support, both for organic farming and for other alternative livelihood activities (ecotourism and medicinal/aromatic plants), and it expects to finalize these agreements once the project has received GEF approval.
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22. A less developed but quickly growing activity in the basin is the ecotourism sector. Because of its high biodiversity, cultural and historical artifacts, and unique geography, the Cotahuasi basin has a strong potential for ecotourism. During the Inca Empire, the valley was the most direct route between the Inca capital of Cuzco and the Pacific Ocean, and as such was the site of extensive trade and building. This, combined with long-term occupation by its indigenous population, means that today the area is replete with archeological artifacts from many different periods, including ancient temple and burial complexes. Another attraction of the Cotahuasi basin is the manner in which man, since pre-Columbian times, has transformed the nearly vertical walls of the canyon into cultivated areas. Throughout the basin, visitors can admire the more than 10,000 hectares or existing and relict garden platforms, and dine on the amazing crop varieties found in these gardens. Finally, as the deepest canyon in the world, the Cotahuasi basin is rapidly becoming a destination for adventure tourists, including climbers and river rafters, and high profile international expeditions have visited the area in the past year.
23. While private and civil sector organizations have promoted organic agriculture and tourism in the basin, a number of public institutions supporting development within the context of natural resources management are also active in the basin. The Cotahuasi Agrarian Agency, local implementing agency of the National Program for River Basin Management and Soil
Conservation (PRONOMACHCS), has the greatest participation in the management of the basin's natural resources, with four operative areas directly related to resource management: 1)
Rural infrastructure - building and maintenance of irrigation systems; 2) Soil conservation - building and recovery of agricultural terraces; 3) Farm Production - introduction of commercial varieties of cultivated plants and raw materials; and 4) Forest Development - native and introduced species. The Regional Government of Arequipa supports the formation and development of micro-businesses devoted to farming sheep, guinea pigs, trout and other fish, and undertakes technical studies of irrigation and highway infrastructure. The now-defunct
Compensation and Social Development Fund (FONCODES) focused on the construction of road and irrigation systems and other civil engineering works, with a considerable physical and even aesthetic impact on the basin (despite complaints, FONCODES has placed bright orange latrines on hillsides throughout the area).
24. Although they command significant resources, public agencies still undertake their activities largely independently and without significant local participation or input. In recent years, however, a basin-wide planning process and development strategy has begun, taking into account the expected designation of the basin as a Protected Natural Area. AEDES, as Technical
Secretary to the Provincial Cooperation Committee, took a lead role in organizing local stakeholders to undertake plans and activities to meet the requirements for inclusion in the
National System of State-Protected Natural Areas. The greater part of the basin's territory was classified as Special Use Zones (crop-growing and cattle-raising), Direct Exploitation Zones
(pastures and medicinal plants), Strict Protection Zones (threatened flora and fauna), and
Tourism and Recreation Zones, designations approved by all of the mayors within the province.
25. Consultations among the local population and its authorities and with INRENA have resulted in a decision to classify the basin as a Landscape Reserve within SINANPE. This category is designed to protect environments that demonstrate a history of harmonious relationship between human populations and the natural landscape, and permits the local population and authorities to participate actively with INRENA in the administration of the Protected Natural Area.
Scientific, recreational and tourist activities are allowed; but strict limits are placed on the
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modification of traditional activities and practices and the extraction of non-renewable resources is subject to special authorization and careful monitoring. A formal request to the National
Institute of Natural Resources for the creation of a Protected Natural Area is now being prepared.
26. Despite the progress that has been made during the past few years to improve management of natural resources in the Cotahuasi basin, the negative impacts of human activity in the area continue to grow. With the prospect of significant tourism growth in the coming years, threats to biodiversity and soil and water resources will likely worsen. In addition, state agencies still do not generally take into account sustainable management concerns, and even significant development projects are not subject to any form of environmental impact assessments. An integrated, basin-wide ecosystem management strategy, implemented through already existing institutions such as the Provincial Cooperation Council and the District Development
Committees, and reinforced by the formal establishment of a Landscape Reserve in the basin, will greatly enhance the conservation of natural resources with significant local and global benefits.
Current threats to Biodiversity and Land & Water Resources (see Annex 5 for conceptual model)
27. Among the greatest threats to the natural resources of the Cotahuasi basin are:

Loss of native biodiversity due to loss of vegetative cover, overgrazing (concentrated cattle raising), and extraction of bushes and trees for firewood, resulting in population reductions and/or the threat of extinction for some species of native flora (queñua, puya de raimondi, k´olli, quishuar, arrayan, etc.) and fauna (vicuna, guanaco, several bird species, Andean deer, white-tailed deer, etc.) and the reduction, fragmentation and disappearance of ecosystems or specific biotopes (e.g. upper andean swamp, relict woodland, columnar cacti, and mosaics of vegetation in several areas of puna );

Reductions in agro-biodiversity and disappearance of heirloom varieties due to increasing use of new and often exotic seed varieties (generally artificially produced hybrids), decreased use of traditional strategies such as seed exchanges among local farmers, and abandonment of higher elevation terraces where native ecotypes are most often cultivated (during the past few years, native varieties have been displaced by 'improved' strains in the basin's intermediate zone, so that today 87% of the agricultural land in the basin is devoted to growing maize and potatoes);

Accelerating erosion and desertification on agricultural and pasture lands as area inhabitants abandon traditional Andean cultural practices of land management in favor of more market friendly technologies and practices, including elimination of terraces (to facilitate the planting of animal-feed crops and pasture), burning of stubble, abandonment of crop rotation, and changing irrigation techniques, and impacts of these on ecosystem integrity both upstream and downstream in the basin;

Contamination of water sources from an increase in mining activities (including use of cyanide), including many small mines that would not otherwise exist except for the construction of government subsidized roads, with severe impacts on wild flora and fauna and drinking water quality;

Contamination of water sources from increased use of agrochemicals and the dumping of solid and liquid wastes into water sources near population centers and cultivated lands;
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
Loss of vegetative cover associated with poor use and distribution of water resources, giving rise to the desertification of some natural environments and changes in the ecological processes of others.
 Increased dessication of the valley zones due to alterations in the hydrological regime of the basin.
Constraints to Addressing Threats and Implementing Integrated Ecosystem Management:
28. Effective and sustainable management of natural resources in the Cotahuasi basin is constrained currently by several important factors:
29. Economic dependence on unsustainable resource use by local communities continues to degrade local ecosystems and the resource base for economic activities. As noted in paragraph
15, migration out of the basin by primary wage earners has reduced local household incomes, prompting those remaining in the area to abandon traditional sustainable resource use systems for more lucrative, but unsustainable, alternatives. In addition, although a number of sustainable resource use options are emerging in the basin, such as organic agriculture, medicinal plants, and ecotourism, local populations are unaware of these options, do not possess the technical and economic skills necessary to implement them, and lack the access to capital necessary to initiate them. As a result, sustainable methods of exploitation of agricultural lands, pastures, and woodlands, which would allow the basin’s inhabitants to satisfy their basic needs, such as food, fuel, and construction materials, while also creating sustainable sources of income, are not available to most of the population.
30. Destructive economic activities that are poorly regulated, monitored, and controlled, are also preventing the sustainable management of the Cotahuasi basin. Small-scale mining, and even some commercial mining, is taking place without the presence of officials or institutions with responsibility for monitoring and controlling such activities. As a result, there are none of the
Environmental Adaptation and Management programs which regulate mining in other areas of
Peru, and toxic wastes from mining are dumped directly into the Cotahuasi river. Regulations and controls over camelid (alpaca/llama) ranching are also inadequate, so that ranchers have greatly increased herds in areas where new roads are constructed, leading to severe overgrazing and soil erosion.
31. Inefficient and poorly informed use of the basin’s resources
by local authorities and inhabitants alike is degrading the local environment and threatening globally significant biodiversity. Local communities and authorities remain unaware of the advantages of conserving and sustainably managing native flora and fauna and agro-biodiversity, and of the existing laws and regulations for the protection and use of biodiversity. There is also an inadequate level of communication and coordination between the communities and local authorities on the concepts of integrated ecosystem management and the varying carrying capacities and ecological functions of the different landscapes found in the basin. Information on social and economic factors, which should be used to guide planning and management activities, is also incomplete. As a result, specific strategies that should be applied to each of the different ecological zones in the basin, in order to protect their fragile ecosystems and guide the sustainable use of biodiversity, are not developed or applied.
32. Development programs that support inappropriate technologies and destructive economic activities, stemming from the lack of regulations and the inadequate information noted above, are
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a root cause of significant threats to the basin’s ecological integrity. Reforestation strategies using exotic species (e.g. eucalyptus) take place even in critical native habitats, reducing the presence of native species through competitive processes and removing habitat critical for native fauna and flora. Increasing use of agro-chemicals, and the introduction of exotic crop varieties, degrades soil and water quality and threatens to eliminate many native plants. The construction of roads in fragile areas (particularly the upper basin), without any environmental impact studies, contributes directly to erosion and facilitates increased grazing and unregulated mining in previously pristine areas.
33. Uncoordinated and poorly planned basin-wide planning mechanisms are the final, underlying constraint to effective conservation and use of the natural resources of the Cotahuasi basin. The harmony which once existed between the natural environment and human activities in the basin is now being threatened by the construction of road networks, emerging mining activities, market-oriented agricultural practices, and an unmanaged flow of tourists. Local authorities have insufficient technical and organizational capability to exercise control of these emerging problems, or even to enforce existing regulations on mining, grazing and the use of forestry resources. Management institutions also are unable to provide integrated management strategies and sector plans for the basin that account for the area’s varying landscapes or take advantage of the significant human resources in the basin. Finally, local inhabitants do not fully comprehend the emerging threats to their livelihoods, or the degree of interdependence and cause-effect mechanisms among the ecosystems of the Cotahuasi Basin.
3. EXPECTED PROJECT OUTCOMES
Project Long-Term Objective
34. Conservation of globally significant biological diversity and prevention and reversal of land degradation within the Cotahuasi basin.
Project Immediate Objective
35. By the end of the project, an integrated ecosystem management system will be in operation, created, managed and supported by local communities. This system will direct the conservation and sustainable use of biodiversity and other natural resources, reduce land degradation and desertification, and control mining, tourism and other economic activities in the project area.
1. Globally significant biodiversity protected in new priority conservation areas and sustainably managed in the rest of the Cotahuasi river basin
36. Building on steps taken during the PDF-A process, more complete zoning of the basin will be undertaken in order to establish strict conservation zones for the protection of biodiversity at all levels (genetic, species, ecosystem), as well as other zones where sustainable activities may be carried out which satisfy both conservation and development goals. Inventories and evaluations of biodiversity will be carried out, as well as complete analyses of current socio-economic conditions. These studies and zoning activities will result in establishment of a Protected Natural
Area (Landscape Reserve) in the basin.
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2. Natural resources sustainably and productively managed under integrated ecosystem management system
37. Integrated ecosystem management strategies and ecosystem restoration, identified with the participation of local populations and their representative institutions, will be developed and implemented to ensure the long-term ecological and economic health of the Cotahuasi basin.
Local institutions will be strengthened in order to implement those strategies, policy reforms instituted, and information systems developed to manage and disseminate data and lessons learned within and beyond the project area.
3. Local populations benefiting from increased incomes derived from alternative livelihoods based on sustainable natural resource use
38. Many of the threats to biodiversity in the Cotahuasi basin stem from the lack of agricultural production options or alternative income-generating activities and the resulting over-exploitation of natural resources. The project will establish systems for developing and implementing alternative income-generating activities, including tourism, organic agriculture, bio-friendly ranching and the processing of wild and cultivated medicinal and aromatic herbs. These activities shall be designed to increase local incomes and demonstrate an economic incentive to the participants to achieve the project's objectives regarding ecosystem management and conservation of biodiversity.
4. Local people and authorities aware of links between resource use and degradation, and trained in and supportive of integrated management of the basin’s ecosystems
39. Many current economic activities in the basin are carried out without considerations of sustainability, external ecosystem effects, or impacts on biodiversity. To address this, the project will establish training programs and implementation strategies for the sustainable use of the basin’s resources. These will include training and education programs for the rural population and authorities on appropriate agricultural practices, grazing techniques for different kinds of terrain, and water resources management; and programs for the in-situ conservation of native germplasm and agricultural varieties and a reforestation program with native species. The project will document various traditional sustainable resource use strategies and techniques of the indigenous population, and apply and disseminate these as part of the training and pilot project activities.
5. Physical infrastructure in place to support integrated ecosystem management of the
Cotahuasi basin
40. Local, regional, and national government agencies will fund the development of improved physical infrastructure (water catchment and distribution systems, roads, electricity and telecommunications) that will support the implementation of integrated ecosystem management in the basin. Sustainable planning regulations and guidelines will be developed and applied, and priority will be assigned to projects that can directly benefit conservation and resource management objectives.
4. ACTIVITIES & FINANCIAL INPUTS NEEDED TO ENABLE CHANGES
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GEF Rationale
41. GEF support for the proposed project will enable existing proponents working to strengthen conservation and improve sustainable livelihoods within the Cotahuasi basin to coordinate and rationalize their efforts, to overcome constraints to implementing programs, and to leverage local and regional government resources by redirecting them towards activities that will directly benefit conservation and sustainable livelihoods. GEF funding will allow the project to carry out the baseline ecological research necessary to operationalize the new protected area in the basin; to define and implement conservation and management plans for priority zones of biodiversity conservation, reforestation, and sustainable agriculture and pasture land management; to support policy reforms that will reorient existing programs and activities towards integrated ecosystem management; to leverage significant co-financing to support organic agriculture production and marketing, including removing constraints to increasing existing micro-credit resources for farmers and small-scale processing (additional micro-credit resources will provide additional cofinancing during the project implementation, but cannot be guaranteed or quantified until GEF funding has been approved); to support training and outreach for local leaders and farmers in concepts and application of integrated ecosystem management; and to establish information sharing mechanisms to disseminate lessons learned at the regional, national and international levels. The various co-financing resources dedicated to the proposed project will complement the GEF funding by implementing conservation activities and education throughout the basin, including training of local leaders on sustainable land management within the context of the newly established Protected Natural Area (Landscape Reserve); by working with local farmers to increase and make sustainable organic agriculture production; by working with local communities to implement organic agriculture and medicinal plants processing and sustainable tourism; and by orienting municipal works (irrigation, roads, electricity) projects to directly support alternative livelihoods activities, and carrying out environmental impact studies on those programs (all of Outcome 5).
Activity 1: Definition of basin’s priority conservation areas and establishment of Protected
Natural Area (GEF = US$177,000; Co-Financing = US$365,000; Total = US$542,000 or
11% of the Project)
Sub-activity 1.1: Prepare studies, evaluations and inventories of the different ecological zones in the basin in order to establish baseline and priorities in the management and protection of fragile ecosystems, including (i) differentiation of ecological zones; (ii) analysis of ecological interrelations and threat impacts within and between ecological zones; (iii) measures to protect biodiversity and conserve soil and water in the priority conservation areas in accordance with the law on Protected Natural Areas (specific plans and programs for managing fragile and prioritized priority conservation areas); (iv) frameworks for cooperation and participation in each of the ecological zones; (v) systems to produce maps and documents on soil utilization, ecological services, agriculture, farming activities, forestry, wildlife management, and ecotourism.
42. This activity will build on the baseline ecological/economic zoning studies that identified the ecological zones of the basin, in particular by specifying priority conservation areas that need specific protection or management actions on account of their vulnerability or high degree of biodiversity. The study will also address the biological and physical interrelations between ecological zones, and will identify those impacts that originate in one zone but affect other zones
(in particular, upstream activities with downstream impacts). It includes inventories of flora,
22

vertebrate and invertebrate fauna, and phytogenetic resources, and evaluation of the ecological characteristics of species, particularly those considered important at the global level, such as threatened and endemic species. This activity helps to meet the requirements for the establishment of a Protected Natural Area in the basin, as well as establish the baseline for monitoring the impact of the project.
Sub-activity 1.2: Carry out studies and disseminate information on social conditions (social organization, landholding, socio-political and environmental conflicts, and gender issues), existing policies, laws and regulations concerning resource ownership and management, and the rights and responsibilities of the local populations and various institutions.
43. This constitutes a suite of six studies (organization, landholding, gender, socio-political conflicts, environmental conflicts, and legal affairs) for planning the activities that, together with the other activities in this result, will support the establishment of a Protected Natural Area in the
Cotahuasi basin. The project will analyze human impacts that carry across ecological zones, and recommend education, cooperative management, and conflict resolution measures to address inter-community and inter-zonal impacts.
Sub-activity 1.3: Formally establish a Protected Natural Area (Landscape Reserve) for the entire
Cotahuasi basin.
44. The effort to gain formal approval and legal designation for a Landscape Reserve in the project area is already underway, based on ongoing negotiations with INRENA and fulfillment of the necessary studies and planning processes as mandated by INRENA. It is expected that formal designation of the Landscape Reserve will take place within Year 1 of the project implementation period. The UNDP Country office in Lima will monitor the progress of this effort, and formal establishment of the Protected Natural Area will be a benchmark for continued project implementation.
Activity 2: Participatory development and implementation of basin-wide integrated ecosystem management strategy (GEF = US$225,000; Co-Financing = US$1,033,000; Total
= US$1,258,000 or 26% of the Project)
Sub-activity 2.1: Develop and implement management plans for varied ecosystems within the
Cotahuasi basin, based on the diverse ecological zones identified, and compatible with conservation and economic development. Plans will include: (i) priority conservation areas for biodiversity; (ii) reforestation areas in which native species are sustainably used to provide fodder, wood for burning and other domestic uses, to protect the slopes and conserve the soil, regenerate degraded soils, and recover priority habitats and ecosystems; (iii) sustainable agricultural management systems which avoid soil and water degradation; (iv) sustainable pasture systems which take into account the carrying capacity of existing pastures and regenerate degraded pastures; and (v) environmental management programs for the handling of urban wastes and the prevention of, or defense from, natural disasters.
45. During the first year of the project, baseline information on current levels of soil erosion in the Very High Altitude Pasture Zone of the Cotahuasi basin will be collected to help measure reductions in erosion during the course of the project. In addition, baseline data on the existing extent of forest cover in priority conservation areas, and current rates of deforestation, will be collected. By the end of year 2 of the project, management plans for priority conservation areas
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covering approximately 50,000 hectares will have been formulated and will start implementation. In addition, management plans for sustainable ecosystem management, including 70 hectares of reforestation, 400 hectares of sustainable agricultural management, and
400 hectares of sustainable pasture management, will be developed and implemented at pilot sites throughout the basin.
Sub-activity 2.2: Reinforce the policy/legal/institutional framework that will support integrated ecosystem management implementation by: (i) coordinating and promoting policy reforms with agencies responsible for resource management and the prevention of destructive economic activities (e.g., mining pollution, indiscriminate use of pesticides and herbicides, uncontrolled tourism); (ii) coordinating and promoting policy reforms with economic and social development agencies, in order to orient these agencies toward conservation and the use of traditional knowledge of ecological processes; and (iii) if necessary, supporting the creation of new institutions (for example, a basin-level scientific/technical office).
46. The project will work with existing local and regional resource management agencies and development agencies to better orient their activities towards support of integrated ecosystem management, and away from the promotion of resource-intensive developmental policies that are inappropriate for the area (e.g. industrial agriculture).
Sub-activity 2.3: Implement training programs for local authorities, government officials, nongovernmental organizations, and community leaders, on the implementation of programs and activities at the level of district and province level planning, for the conservation and sustainable use of biodiversity and soil and water resources, the creation of a Protected Natural Area, and the supervision, implementation, and monitoring of ecosystem management plans. Among other institutions, the Provincial Cooperation Council, and the Provincial Working Groups on
Farming Aspects, Natural Resources and the Environment, and Tourism and Cultural Heritage, will receive training on technical and policy affairs and enhanced community participation in the planning process.
47. This activity will focus on the policy role of local and regional authorities (emission of municipal edicts and local regulations, planning and budgetary decisions) in providing and supporting the conditions necessary for implementing the management of the basin's ecosystems as part of an official Protected Natural Area. Institutions and agencies active in the basin will be provided with guidance and models for new methods of community outreach and participation, research and monitoring, extension and training, marketing, and other support programs.
Sub-activity 2.4: Develop an information management and dissemination system to support ecosystem management planning and sharing of lessons learned at the regional, national, and international levels.
48. This activity complements actions already under way for implementing a Provincial
Information System (SIP), which provides a framework for disseminating information on and monitoring the management of ecosystems, and acts as a gateway to national and international information resources (e.g. internet), partners, databases, markets, etc. for those engaged in sustainable activities throughout the province. The project will share information at the local
(basin) level for monitoring, training and awareness building. At the regional, national and international levels, information sharing about the project will be used to forge relations and promote partnerships. Particular attention will be paid to sharing lessons learned and best
24

practices in the provinces and valleys adjacent to the Cotahuasi basin, in order to further regional planning, to reduce potential outside threats to the project area, and to strengthen their support for the conservation of the biodiversity and soil and water resources. The Cotahuasi basin was chosen as the target area for this project in part because of the advantages it offers for replicating successful activities in similar areas to which it is historically and physically related, and to which it still maintains commercial interactions. Consultations have already been undertaken with institutions in these zones regarding sustainable ecosystem management and inter-regional information sharing.
Activity 3: Alternative economic activities based on the sustainable use of natural resources
(GEF = US$247,000; Co-Financing = US$966,000; Total = US$1,213,000 or 25% of the
Project)
Sub-activity 3.1: Demonstration projects for local farmers for the production of organic crops and medicinal and aromatic herbs with long-term economic viability. This activity will also include identification of native varieties of cultivated plants with potential economic uses, increases in their cultivation, and support for their processing and marketing.
49. Eighteen localities have been selected in which, based on tests and successful experiments in the basin and other zones of the Peruvian Highlands, as well as on the requirements of domestic and export markets, demonstration projects will be implemented to show the economic viability and environmental benefits of native crop varieties and sustainable farming techniques. This activity includes establishment of an entomological laboratory for biological pest control, and education and outreach on reducing the use of agro-chemicals in the basin. This activity also includes investigating the potential for improved marketing and increased consumption of native crop varieties, with a focus on i) varieties that have already been identified as having potential but have not been studied; ii) varieties that already have well-defined specific uses and require improved processing; and iii) varieties for which more effective marketing strategies need to be developed. Research and training in the collection, cultivation, and processing of wild and domesticated medicinal and aromatic herbs will also be undertaken in targeted ecological zones within the basin. Environmental impact assessments will be carried out for new processing facilities related to agricultural and medicinal plants. Finally, the project will share strategies and lessons learned with two other UNDP-GEF projects with a focus on agriculture and agrobiodiversity (the project “In-Situ Conservation of Andean Crops and Their Wild Relatives in
Quebrada de Humahuaca” in Argentina and the project “Peru: In-situ Conservation of Native
Cultivars and their Wild Relatives” in Peru). Further details on agricultural activities are provided in Annex 4.
Sub-activity 3.2: Strategically planned and economically viable tourism, including: awareness raising among local authorities, population and businesses; training of guides and other tourism-related workers; promotion and marketing; development of infrastructure
(environmental interpretation center, improvement of tourist lodges and camping sites); creation of interpretative walking routes; and the creation of mechanisms for the fair distribution of incomes among the local population.
50. A tourism development plan will be created for the entire basin, in close cooperation with local populations, planning agencies, and private operators. Demonstration tourist lodges will be established in nine localities that will provide visitors with opportunities for ecotourism and cultural tourism focused on the traditional farming practices and diverse native crops of the
25

basin. Training will be provided to local inhabitants in various aspects of tourism operations, including management of accommodations, guide services, and handicrafts production. Products sold to tourists, such as handicrafts and organic foods and medicines, will consist of traditional goods made from local resources. Interpretative walking routes, focused on providing visitors with access to natural physical attractions (waterfalls, scenic vistas, etc.), cultural/historical sites, and agricultural points of interest (cliffside terraces, llama/alpaca herds, etc.) will be established.
The walking routes will focus in particular on the unique biodiversity and ecosystems found in each ecological zone (e.g. upper Andean swamps, relict forests, endemic flora and fauna), further establishing the value of these resources in the eyes of the local population. Development of a tourism strategy in the Cotahuasi basin was based on extensive discussions and participation of local inhabitants, who have developed guidelines to ensure that tourism development does not have negative impacts on the area’s natural and cultural diversity. Specific codes of conduct for tourism will be promulgated and disseminated during the project, and monitoring of tourism development, including environmental impact assessments of tourism infrastructure and other impacts, will be the responsibility of provincial level authorities, in conjunction with the district level committees. Tourism management is already the responsibility of a Working Group on
Tourism and Cultural Heritage that operates under the Provincial Cooperation Council. In addition, tourism development is supported by agreements with PromPerú, the state agency that supports the promotion and development of sustainable tourism; the Ministry of Industry,
Tourism, Integration and International Commerce, the state agency in charge of the development of tourism within Perú, and the Tourism Training Center, an institute which supports the training of tour operators at a nationwide level. Further details are provided in Annex 4.
Sub-activity 3.3: Development and strengthening of micro-credit facilities to support alternative livelihood activities, including the existing Peru-Canada Equivalence Fund and regional credit agencies.
51. The project will work with existing micro-credit partners, and others identified during the
PDF-A phase, to increase access to credit for organic farmers, medicinal plant enterprises, and various ecotourism interests (tour operators, lodges, guiding services). The micro-credit operations will provide guarantees against risk, low-interest loans, contingency concessions, and other financial support for local producers who are changing over to sustainable production systems and/or implementing alternative livelihood activities that support conservation objectives. The project will undertake to educate micro-credit institutions about environmental sustainability criteria that can be applied to micro-credit lending decisions, including project review processes that assess environmental impacts (e.g. soil fertility, water quality, and promotion of reforestation in the agricultural sector, and site impacts and use of renewable energy in tourism development). The project also will undertake a mid-term evaluation after two years to assess the success of the micro-credit activities, and to determine whether other financial tools (e.g. soft loans, guarantee mechanisms) or additional capital are needed.
Activity 4: Education and training programs for local inhabitants in the sustainable use of natural resources. (GEF = US$221,000; Co-Financing = US$511,000; Total = US$732, 000 or 15% of the Project)
Sub-activity 4.1: Technical training for local leaders and resource users in 18 localities (2 in each district of the project area), on environmental/social impact assessment and productive resource use strategies and techniques that protect and sustainably utilize biodiversity and soil and water resources.
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52. The selection of the 18 communities is based on extensive consultations during the PDF-A process with the 28 localities that represent the vast majority of the basin’s population. The project will provide training and education on sustainable productive activities, including organic agriculture and the management of pastureland and water resources, including the use of traditional techniques for managing native Andean ecosystems.
Sub-activity 4.2: Training and outreach for selected farmers engaged in (i) the adoption of economically viable production systems that promote conservation and recovery of vegetation; and (ii) the protection and sustainable use of biodiversity, including in-situ management of agrobiodiversity and local production and planting of seedlings of native species for reforestation.
53. As with the Activity 4.1, the selection of target farms was based on consultations throughout the basin and assessment of viable project partners. This activity will be carried out by AEDES with the support of the National Program for River Basin Management and Soil Conservation
(PRONOMACHCS) and the International Fund for the Development of Agriculture (FIDA), as well as work already being coordinated with the International Plant Genetic Resources Institute
(IPGRI).
Sub-activity 4.3: Educate local inhabitants on the importance of integrating economic activities, including agriculture, grazing, tourism, and mining, within the framework of conservation and sustainable use of biodiversity and natural resources.
54. This activity will include outreach and education throughout the basin, but with a particular focus on communities in close proximity to mining, tourism operations, organic agriculture, and animal husbandry of vicuñas and guanacos, where local participants can benefit from education and also act as partners in monitoring economic activities. Education programs will address knowledge and valuation of the basin's biodiversity, as well as its management and conservation, in curricula at varying levels of formal and informal education. Throughout the basin, women’s groups will be especially important as beneficiaries and active participants in these activities.
Activity 5: Development of physical infrastructure to support integrated ecosystem management (GEF = US$0; Co-Financing = US$1,085,000; Total = US$1,085,000 or 23% of the Project)
Sub-activity 5.1: Carry out a program of building and improvement of the infrastructure for water resource management, to support efficient use of land for agriculture and reforestation and to support conservation of biodiversity.
55. This is a priority activity for adequate water management that will support pilot programs in micro-watersheds within the Cotahuasi basin, with a long-term replication strategy for the entire basin. This activity, including environmental impact assessments, will be financed by government agencies (PRONOMACHCS and municipal authorities).
Sub-activity 5.2: Development of road, electrical and telecommunications infrastructures, with the participation of the local authorities and national government agencies, taking into account environmental impacts and the needs and priorities of sustainable economic programs in the basin (infrastructure to support organic farming and the development of ecotourism).
27

56. Activities will be undertaken to provide targeted support for sustainable economic programs within the basin (e.g. roads to improve market access for organic products, infrastructure for ecotourism lodges). The project proponent will work with government agencies to develop sustainable planning regulations and guidelines for the infrastructure development, and will carry out environmental impact assessments. Sustainable alternatives to traditional infrastructure programs, such as wireless phone networks in place of conventional telephone systems, will also be developed. As with Activity 5.1, the funding of this activity will be provided by national government agencies and local governments.
5. SUSTAINABILITY ANALYSIS AND RISK ASSESSMENT
Institutional sustainability
57. AEDES has devoted considerable effort in the past several years to establishing mechanisms whereby meetings between local authorities, public and private institutions, and people's organizations in the Cotahuasi Basin take place on a regular basis. As a result of this work, a
Provincial Cooperation Committee and Development Councils in each of the eleven districts of the basin are now operational and actively addressing issues regarding environmental conservation and natural resources management. This institutional framework, and long-term plans for sustainable development (1996-2001 and 2002-2021) that have been drawn up for the basin, have greatly strengthened the broad participation of local authorities and populations in development planning. In addition, governmental and non-governmental institutions have been integrated into this process during the execution of the various activities resulting from this participative planning process.
58. During project implementation, increased financial resources and implementation of training programs for resource management institutions, local authorities, and local representative associations will strengthen these organizations substantially. In addition, awareness and education programs for institutions and the general population on the importance of ecosystem management for social and economic development will increase support for and participation in the functioning of resource management and conservation institutions. Finally, the leading role of the newly constituted provincial and district level management institutions in implementing the project, including creation and management of the proposed Protected Natural Area, will reinforce these institutions capacities and legitimacy within the Cotahuasi basin.
Financial Sustainability
59. Project activities undertaken to promote alternative livelihood options in the basin (organic agriculture, medicinal and aromatic herbs, and ecotourism) are expected to increase participant’s incomes and provide a direct incentive to continue these sustainable and conservation-enhancing programs after project completion. The experience of the past few years, when substantial amounts of unique and organically grown local varieties of crops (esp. amaranth and quinoa) have been sold internationally to high-income markets, demonstrates the potential to increase local farmer’s incomes. Participation by AEDES at several international agricultural trade shows in the past year has only reinforced the belief that market demand for these crops far outstrips current supply. The project will further enhance this potential by supporting marketing efforts and facilitating business relationships and contracts that will benefit local farmers into the future.
Further details on organic agriculture are provided in Annex 4.
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60. Ecotourism is another activity that represents a significant economic opportunity for local communities while reducing pressure on the basin's natural resources. Current tourism revenues in the basin, estimated at US$82,000/year, are projected to increase to US$955,000/year by end of project. This estimate is based on several factors, including: increasing tourism throughout the region, in part due to the recent declaration of the regional capital city of Arequipa as a
World Heritage site; increasing interest in the basin as an adventure tourism destination; and the expected benefits of various project activities, including development of hiking circuits and visitor sites, training of certified guides, improvement of accommodation and transportation, and increased availability of items to purchase such as local food products, handicrafts. Tourism development plans, as discussed at the provincial and district councils, have been structured in such a way as to respect and utilize natural and cultural resources and biodiversity, and to permit a fair distribution of benefits among the participating population. Mechanisms for directing tourism revenues towards conservation are also planned, including a visitor entry fee to enter the
Landscape Reserve (in other words, the basin) that will be used exclusively for conservation activities. Finally, as operators and beneficiaries of the tourism, local populations will therefore have a direct interest in investing in the conservation of the basin’s natural attractions
(biodiversity and scenic beauty) and native culture. Further details on ecotourism are provided in Annex 4.
61. Finally, several mechanisms will be in place by end of project to enhance the financial resources necessary to sustain conservation and ecosystem management objectives. First, the project will work to establish financial agreements with banks to recognize increased values for local land plots as guarantees for bank loans. These increased values will be based upon the value imparted to lands by their increased productive earning capacity, sustainability
(particularly by reducing erosion), and value of their wild flora and fauna (e.g. for tourism, medicinal/herbal products), and are already starting to show up in land prices in the region.
Unlike many indigenous rural areas in Peru, the title deeds for ownership of agricultural lands in the Cotahuasi basin have been officially registered, as part of the Ministry of Agriculture’s
Special Project on Titles to Rural Property. Second, increased income from organic agriculture, ecotourism, etc. will generate substantial taxes and fees (many of which exist now but are not collected) that can be directed back to conservation activities. Support for a “self-imposed tax” within the basin is coming from the local associations of agricultural producers themselves, the proceeds of which will be used to fund conservation activities selected by the farmers’ associations.
Social and Environmental Sustainability
62. The proposed project will enable local farmers to manage their resources so that they can avoid damage to habitat critical for biodiversity and minimize soil erosion and other land degradation. The project will provide local inhabitants with knowledge of, training in, and capital for sustainable resource use options, such as organic agriculture, medicinal plants, and ecotourism, that can increase household incomes without putting further pressure on the natural resources of the Cotahuasi basin. In addition, by training local leaders and farmers in concepts of integrated ecosystem management, and by providing the options just noted, the project will reduce or eliminate the recent trend towards adopting new, unsustainable farming and pastureland management practices, such as elimination of terraces, burning of stubble, abandonment of crop rotation, and changing irrigation techniques. Finally, environmental impact assessments will be conducted to measure the impact of project activities such as tourism
29

development, agricultural processing, and infrastructure improvements (local municipal authorities will directly support environmental impact studies for all municipal works activities).
Evaluation of risks
63. The proposed project requires the participation of a broad array of institutions and populations within the basin, and the risk exists that some of these entities may not cooperate effectively in the project’s activities. However, the project proponents have already established mechanisms (provincial and district councils) that enjoy the broad participation of these sectors, and it is expected that the experiences and expectations engendered through these mechanism will prove to be sustainable. The risk also exists that political decisions made outside of the basin will affect the priorities and actions of entities within the basin. This risk cannot be fully eliminated, although emerging legislation pertaining to decentralization and strengthening of local governments in Peru should allay this potential problem.
64. Uncontrolled and unsustainable tourism is another risk that could present itself unless necessary measures are taken. One strategy will be to develop tourism operators within or with close and direct ties to the basin, so that tourism development decisions will be made that are compatible with the tourism development plan for the area, which includes conservation and respect for natural, esthetic and cultural values, and secondarily, the participation of the local population in the benefits obtained from tourism. In addition, agreements will be sought with private travel agencies from outside of the basin to ensure that their activities fall within the context of basin-wide planning. Finally, the project will work to gain the support of regional and national government agencies that promote tourism, such the Ministry of Industry, Tourism,
Integration and International Trade, and PROMPERU.
65. Another potential risk to effective and sustainable management of the basin’s resources is the promotion of development activities that pose a threat to local ecosystems. For example, some government agencies currently promote increased use of powerful agrochemicals in the area, although these have not obtained much acceptance among local farmers. To prevent this threat, a guarantee has been obtained from bodies that promote agriculture in the zone, in particular the
Regional Government of Arequipa, that they will promote ecological farming. The creation of a
Protected Natural Area also will reduce the use of any technology that is not compatible with ecological sustainability. Other potential problem areas include the development of economic infrastructure for agriculture (channels, reservoirs) or for transportation (roads) that can represent a risk to biodiversity conservation if carried out with no regard for sustainability and environmental impact. Again, the project will consult with agencies responsible for such projects, and will work to strengthen the role of regional and district councils in regulating these activities.
6. STAKEHOLDER INVOLVEMENT AND SOCIAL ANALYSIS
66. The impetus for basin-wide ecosystem management in the Cotahuasi Basin began in 1996 when district mayors, invited by provincial authorities, asked the local population and public and private entities to begin a planning process. A local Agenda 21 for La Unión Province was drawn up in the form of a Provincial Strategic Development Plan for the period 1996-2000, which proposed the integrated management of the basin and suggested incentives for ecobusinesses that could not only conserve biodiversity but also reduce poverty in the province. In order to carry out this plan, a Provincial Cooperation Committee and District Development
30

Councils were established, presided over by the mayors and made up of community representatives and public and private entities. AEDES was assigned the function of Technical
Secretary, and in this capacity has designed the proposed project.
67. Consulting processes during the design phase have taken place at four levels:
1. Local consultation: 28 communities within the Cotahuasi Basin were selected for the first stage of consultation. Activities included workshops with the general population and local authorities, and personal interviews in order to define the potential of each zone, current capacities, and existing levels of involvement and awareness.
2. District-level consultation: In the eleven districts which make up the basin, district development plans have been drawn up for the period 2002-2021. For each district, priority activities have been determined to be carried out during the period 2002-2004. In the district workshops, the results obtained from consultations in the 28 communities were taken into consideration, and responsibilities assigned to the local authorities and population.
3. Province-level consultation: Based on the first two levels of consultation, provincial-level focal point agencies for development of integrated ecosystem management were identified, as were their current roles and technical capacities. At this point, agreements were reached with these institutions (among them the National Program for River Basin Management and Soil
Conservation and municipal governments within the province), wherein they pledged their participation as co-financers of the project and their intent to orient their actions toward the execution of the project’s objectives.
4. Regional-level consultation: The final consultation stage was presentation and discussion of the project strategy in a workshop organized at the regional level by the Regional Commission for the Environment – Arequipa, attended by numerous relevant institutions as well as the public and private organizations and the general public. Workshop participants expressed their agreement with the proposed activities and results, as well as their desire for the participation of public institutions in the development of the project.
68. As a final note, the project proponent and provincial authorities benefited from consultations with public and private initiatives sponsored by GEF. First, the province participated in the project “Local Environmental Management for Sustainable Development”, supported by GEF and carried out by the National Environment Council. This experienced reinforced plans for the local regulatory framework for the sustainable management of natural resources and the ecological/economic zoning of the basin. In addition, some local authorities and community members had the chance to observe in situ the activities of natural resource management carried out by the Special Project for Lake Titicaca (PELT), also supported by GEF, including especially the participation of local people in agro-biodiversity conservation and the development of participative tourism.
7. INCREMENTAL COST MATRIX
Domestic Benefits
Baseline (B)
Unplanned development and unsustainable activities threaten the ecological
GEF Alternative (A)
Enhanced planning, institutional strengthening, and training and education
Increment (A-B)
Soil, water and biological resources conserved and ecosystem functioning assured
31

Global Benefits
Outcome 1: Globally significant biodiversity protected in new conservation zones and sustainably managed in the rest of the Cotahuasi river basin
Outcome 2. Natural resources sustainably and productively managed under integrated ecosystem management system integrity of the Cotahuasi basin.
Local populations are poor and dependent on ecologically unsustainable farming practices
Weak coordination among resource managers and local populations leads to continuing resource degradation and loss of globally significant biodiversity
Limited funding for biodiversity conservation and management
Insufficient knowledge of biodiversity, soil and water resources, and socioeconomic characteristics of
Dispersed or poorly understood information that contributes to the loss of the biodiversity.
US$ 120,000
Isolated efforts on the part of public and private bodies toward institutional strengthening regarding ecosystem management.
Mechanisms for meeting and forging agreements function sporadically result in integrated ecosystem management and conservation of ecological resources.
Enhanced/alternative livelihood opportunities reduce resource use pressures
Capacity-building of participatory planning mechanisms ensures integrated management of resources and effective conservation of biodiversity
Implementation of financial sustainability mechanisms
Ecological / Economic
Zoning (meso- and microzoning) as part of the establishment of a for benefit of local population
Enhanced sources of income for households and preservation of traditional agricultural practices
Collaborative protection of priority conservation areas and support for traditional native crop varieties biodiversity conservation
Sustained financing for ensures biodiversity conservation and management activities priority conservation areas throughout the basin.
Sustainable use of the basin’s resources according to Protected
Natural Area regulations.
US$ 662,000
Integrated management of ecosystems in the
Cotahuasi Basin formalized, strengthened by designation of a
Protected Natural Area, and reinforced through the
Provincial Settlement
Inventory of biodiversity completed, socio-economic aspects evaluated, studies done on the use of soil and natural resources.
Establishment of areas of strict biodiversity protection, and of multiple-use areas.
Dissemination of information.
GEF: 177,000
AEDES: 140,000
Reg. Govt.: 195,000
Local Pop.: 30,000
US$ 542,000
Participative creation of a longterm plan for sustainable management of the basin and the implementation of alternative activities that utilize biodiversity.
Coordinating implementation with regional- and national-
Outcome 3. Local populations benefiting from increased incomes derived from
Provincial Information
System in construction phase.
US$ 340,000
Uncoordinated investments threaten sustainability of farming and eco-tourism
Development Councils.
US$ 1,598,000
Development of alternative activities based on the biodiversity and on the soil
GEF: 225,000
AEDES: 210,000
Local Govt.: 460,000
Reg. Govt.: 325,000
Local Pop.: 38,000
US$ 1,258,000
Plan for the sustainable development of eco-tourism.
Organic agriculture conserving
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alternative livelihoods based on sustainable natural resource use
Poorly planned farming planned and sustainable activities increase soil degradation and loss of manner. biodiversity.
Local initiatives and
Planned sustainable exploitation of biodiversity (processing of medicines/herbs).
GEF: 247,000 private ventures for organic farming and the processing of biodiversity
AEDES: 230,000
Local Govt.: 391,000
Reg. Govt.: 165,000 products give insufficient consideration to the
Local Pop.: 180,000 sustainability of resources.
US$ 375,000 US$ 1,588,000 US$ 1,213,000
Economic activities do not take into account sustainability of the natural
Local population and resource management and development authorities
Establishment of systems and practices for the sustainable and economically viable use of
Outcome 4. Local people and authorities aware of links between resource use and degradation, and trained in and supportive of integrated management of the basin’s ecosystems
Outcome 5. Physical infrastructure in place to support integrated ecosystem management of the
Cotahuasi basin
Reforestation with introduced species and in sustainable resource use strategies.
Local population and public and private bodies acquire awareness
US$ 340,000
Irrigation systems and road networks constructed without consideration of environmental impacts
Road and communications networks built without consideration of support for sustainable economic activities.
US$ 650,000
Baseline: $1,825,000
$1,825,000
US$ 1,072,000
Water resources benefiting ecosystem management and conservation goals.
Road, electrical and telecommunications infrastructures developed with minimal impact and benefits for alternative livelihoods.
US$ 1,735,000 and integrated management of the ecosystems in the basin.
GEF: 221,000
AEDES: 265,000
Local Govt.: 109,000
Reg. Govt.: 115,000
Local Pop.: 22,000
US$ 732,000
Improvement of water catchment and distribution systems to support sustainable agriculture and reforestation.
Development of physical infrastructure with planning for environmental impacts and support for organic farming and ecotourism
AEDES: 25,000
Local Govt.: 360,000
Reg. Govt.: 700,000
US$ 1,085,000°°
Alternative: $6,655,000 Project Cost: $4,830,000
Co-financing: $3,960,000
GEF: $870,000
$6,680,000
$25,000
$4,855,000
PDF-A
TOTAL
8. BUDGET (US$)
Project Outcomes/Activities GEF AEDES Local
Pop.
Regional
Govt.
Local
Govt.
TOTAL
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Outcome 1: Globally significant biodiversity protected in new priority conservation areas and sustainably managed in the rest of the Cotahuasi river basin
177,000 140,000 30,000 195,000 0 542,000
Outcome 2. Natural resources sustainably and productively managed under integrated ecosystem management system
Outcome 3. Local populations benefiting from increased incomes derived from alternative livelihoods based on sustainable natural resource use
Outcome 4. Local people and authorities aware of links between resource use and degradation, and trained in and supportive of integrated management of the basin’s ecosystems
Outcome 5. Physical infrastructure in place to support integrated ecosystem management of the
Cotahuasi basin
TOTAL
225,000 210,000 38,000 325,000 460,000 1,258,000
247,000 230,000 180,000 165,000 391,000 1,213,000
221,000 265,000 22,000 115,000 109,000 732,000
0 25,000 0 700,000 360,000 1,085,000
870,000 870,000 270,000 1,500,000 1,320,000 4,830,000
69. Details on Budget Contributions:
AEDES, as Technical Secretary to the Provincial Cooperation Council, is responsible for carrying out the local Agenda 21 for La Unión province, whose short-term objective is the integrated management of the ecosystems in the basin. AEDES will provide in-kind cofinancing (personnel, equipment, office space), focusing its activities on a biodiversity inventory, promotion of organic agriculture and sustainable tourism, strengthening of institutions, and the sustainable management of natural resources.
Local municipal authorities will participate as focal points through which agreements are achieved at district and provincial levels, and orient their actions and budgets toward supporting sustainability within the basin. These authorities will provide parallel cash cofinancing, directly supporting the development of ecotourism, environmental impact studies for municipal works, and training on and implementation of planned actions for appropriate management of the basin's ecosystems.
The Regional Government of Arequipa will provide parallel cash co-financing, investing in projects for the development of tourism in the basin, as well as continue its support for training in resource management and the development of irrigation and road infrastructure.
The local population, through its representative organizations APCO (the Association of
Organic Crop Growers) and FEMULU (the La Unión Women’s Federation), will provide inkind co-financing (personnel, equipment, office space), directing its efforts towards institutional strengthening to facilitate participation in the sustainable management of biodiversity.
9. PROJECT WORKPLAN
PROJECT DURATION (MONTHS): 36
ACTIVITIES
Completion of the project's activities
PROJECT – MONTHS
6 12 18 24 30 36
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1.1 Studies, evaluations and inventories of the different ecological zones in the basin
1.2 Studies on social conditions, policies, laws and regulations concerning resource ownership and management, and rights and responsibilities
1.3 Formally establish a Protected Natural Area
(Landscape Reserve)
2.1 Develop and implement management plans for the ecosystems of the Cotahuasi basin
2.2 Reinforce the policy/legal/institutional framework that will support integrated ecosystem management implementation
2.3 Implement training programs for local authorities, government officials, non-governmental organizations, and community leaders
2.4 Develop an information management and dissemination system to support ecosystem management planning and sharing of lessons learned
3.1 Demonstration projects for local farmers for the production of organic crops and medicinal and aromatic herbs with long-term economic viability
3.2 Strategically planned and economically viable ecotourism
3.3 Development and strengthening of micro-credit facilities to support alternative livelihood activities
4.1 Technical training for local leaders and resource users on productive and sustainable resource use strategies
4.2 Training and outreach for selected farmers in adoption of economically viable production systems that promote conservation, and in the protection and sustainable use of biodiversity
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
4.3 Educate local inhabitants on the importance of integrating economic activities with conservation and sustainable use of biodiversity
5.1 Building and improvement of the infrastructure for water resource management
5.2 Development of road, electrical and telecommunications infrastructures
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Note: Only Activities 1.3, 2.1, 2.3, 3.1, 3.2, 3.3, and 4.2 will commence during the first 3 months.
X
X
X
X
X
X
X
X
X
X
X
10. PUBLIC INVOLVEMENT PLAN
Key Stakeholders
70. During the workshop in which an overall development plan for the province was drawn up as part of local Agenda 21, provincial and district authorities, people's organizations, and public and private institutions defined their participation in the ecosystem management plan for the
Cotahuasi Basin. Specific actions for the duration of the project were determined, to be carried out in a coordinated manner by four Working Groups: the Working Group on Farming Topics,
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Natural Resources and the Environment; the Working Group on Tourism and Cultural Heritage; the Working Group on Social Affairs; and the Working Group on Transport, Communications,
Energy, Urban Planning and Environmental Improvement. Within this framework, various stakeholders will participate in numerous ways, as detailed below. It is important to note that the concerns and participation of the indigenous population were incorporated throughout the project design, and are implicit in the descriptions below, as the indigenous population makes up approximately 97% of the basin’s population and thus is the dominant group in each of the constituencies listed below.
1.
Municipal authorities: Municipal authorities will play a key role in coordinating activities and representing their communities, and will coordinate their own investments with state agencies so that they are complementary. The nine districts of La Unión
Province which make up the area of the Cotahuasi Basin are each to be represented by at least two communities, which will be located in areas of high biodiversity importance and with at least one community in each of the seven ecological zones in the basin.
2.
Social organizations: Existing local organizations will be active in strengthening their capacities to operate eco-businesses such as agro-ecological production and processing, raising of llamas and alpacas, and various eco-tourism enterprises (guides, lodgings, restaurants and handicraft production). Among the participating institutions are the La
Unión Consumer's Board, the Water-User’s Commission, the Association of Organic
Crop Growers (APCO), youth associations, farmer’s groups, fruit-grower’s committees, the Association of Hotels, Restaurants and Related Businesses, and Conservation
Committees.
3. Public and private institutions: As noted above, various state agencies will undertake activities supportive of the project, including PRONOMACHCS (promotion of agroforestry and the management of the water resources), the Ministry of Health (research and use of native plants for medicinal uses), and INRENA and SINANPE (formulation of the Protected Natural Area in the basin). Non-governmental organizations are also slated to participate; in addition to AEDES as project organizer, CARITAS is undertaking agricultural and food security programs in three districts of the province.
4. The education community: Administrators, teachers, parent’s associations, and students in the local educational system have been involved throughout the project development, and have various plans for participation in project implementation. School curricula will include programs for students to work with their parents in producing inventories of flora, fauna and phytogenetic resources, and to study and engage in the sustainable exploitation of medicinal plants and the reproduction of insects beneficial to agro-ecology. The
Cotahuasi Higher Institute of Technology is training nursing technicians to make use of the medicinal plants to be found in the basin in treatment regimens, whenever possible, and to promote and instruct inhabitants in the advantages of these herbs for home healthcare.
5. Women’s organizations: The La Unión Women’s Federation (FEMULU) and its district associations will play a critical role in the forming of conservation values and in the transmission of behavioral patterns. They are already developing businesses based on the collection and conservation of native seeds and new ways of profitably managing biodiversity (e.g. processing medicinal and aromatic herbs).
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6. General Populations: Inhabitants in each zone of the basin have already expressed their interest and intention to participate in many of the project’s activities. Inhabitants of the high elevation zone, who devote themselves exclusively to raising llamas and alpacas, are interested in pasture improvement and increasing the area of marshland, which constitutes an attraction for visitors. In the middle zone of the basin, where the main activity is agriculture, the communities consulted have shown strong interest in developing organic farming of cereals and other Andean crops certified for export, as well as in maintaining agro-biodiversity as a source of further income through the opening of new or expanded markets. This zone will also be the main locus for cultural tourism and tourist lodgings in the basin, to whom the inhabitants will sell unique local produce and ointments and medicinal syrups derived from wild flora or fauna. Finally, in the lower zone, inhabitants are interested in developing increased production of fruits, with native varieties being promoted. This zone will also attract significant ecotourists and adventure travelers, owing in part to its being the deepest part of the canyon and the wide range of ecosystems and resulting biodiversity in the area (colonies of column cacti, river otters, endemic species of bats, etc.)
Information Dissemination
71. Results from the Project will be disseminated widely within the southwest Andean region, and could provide an effective model for similar integrated ecosystem management activities in areas outside the Cotahuasi Basin:
 The River Ocoña Basin: La Unión province (Cotahuasi basin), together with the province of Condesuyos, constitutes the upper part of the River Ocoña watershed. During the past two years, a strategy has been developed to provide coordinated sustainable management of the environments of the sub-basins. Discussions on organic agricultural production and sustainable environmental management have taken place already between farmers, resource management organizations (Resource Users Board, Commission of Water
Users) and women’s organizations in the two provinces, and the Project will provide further dissemination of information throughout the entire River Ocoña Basin.

Adjacent River Basins:
The mayors of La Unión province will continue to participate in discussions with their colleagues from Caylloma and other High Provinces of Arequipa to exchange experiences with sustainable development models through a series of round tables, meetings and field visits.

Southern Region of Extreme Poverty (SEP - Zona Sur de Extrema Pobreza): This region encompasses eight provinces, including La Unión, whose residents are among the poorest in Peru. The project will work with the Association of Peruvian Town Councils (AMPE), which is developing alliances between municipalities and NGOs in the area to implement an agrarian development program aimed at diminishing poverty levels.

Nationwide: AEDES and local municipal authorities have forged connections with several other river basin management projects in Peru. Representatives of communities on the north coast of Peru have visited the Cotahuasi basin to participate in planning exercises and meetings of the water user’s commission. A relationship has also been
37

developed with the Mejía Swamps National Sanctuary, part of b that is engaged in similar sustainable ecosystem management activities.
11. MONITORING AND EVALUATION PLAN
72. AEDES will be directly responsible to UNDP-GEF for financial and non-financial oversight and overall management of the Project. AEDES will ensure that transparent accounting and internal control systems are in place and used by all Project partners. Partner organizations and local communities will be actively involved in on-going monitoring and evaluation of the
Project. Training in participatory monitoring and evaluation will be conducted among partners and communities to enhance local participation in these processes.
73. Monitoring and evaluation of the project’s progress and workplan accomplishments will be made to UNDP, and will be the responsibility of the Project Coordinator. AEDES, as the lead agency of the provincial Agenda 21 process, will continue to employ its monitoring and evaluation system that includes fortnightly meetings and monthly, half-yearly and annual reports.
In addition, full evaluations at the mid-point and conclusion of the project will be carried out.
Data will be collected on the principal performance indicators, including sums invested and the sustainability of the implemented activities.
74. Furthermore, the half-yearly and annual reports will be provided to the existing Provincial
Cooperation Committee and the District Development Councils, with evaluation of the quality and advancement of the activities. These review processes will be carried out with the participation of the population and other relevant stakeholders (additional details on monitoring and implementation are provided in Annex 7).
12. PROJECT CHECKLIST
P ROJECT ACTIVITY CATEGORIES
Biodiversity
Prot. area zoning/ mgmt.:
X
Buffer zone development:
Climate Change
Efficient distrib.:
Efficient prod. &
X consumption:
Inventory/monitoring: X Solar:
Ecotourism: X Biomass:
Agro-biodiversity: X
Trust fund(s): X
Benefit-sharing: X
Other:
T ECHNICAL CATEGORIES
Institution building: X
Wind:
Hydro:
Geothermal:
Fuel cells:
Other:
Investments: X
Policy advice: X
Targeted research: X
Technical/management advice: X
Technology transfer: X
Awareness/information/training: X
International Waters Ozone Depletion
Water body: Monitoring:
Integrated land and water:
Contaminant:
Other:
Country program:
ODS phaseout
Production:
Other:
38

Other:
39

LIST OF ANNEXES
Annex 1: Maps (provided in a separate file)
Map 1: Location of Cotahuasi basin within region and Peru
Map 2: Ecological and socio-economic map of Cotahuasi basin
Map 3: Population distribution within the Cotahuasi basin
Map 4: Priority conservation areas within the Cotahuasi basin
Annex 2: Lists of Endemic, Threatened/Endangered Species and Agro-biodiversity
Resources
Annex 3: Detailed Description of Ecological Zones within the Cotahuasi Basin
Annex 4: Analysis of Tourism Potential in the Cotahuasi Basin
Annex 5: Conceptual Model of Threats/Root Causes
Annex 6: Logical Framework
Annex 7: Detailed Monitoring and Evaluation Plan
Annex 8: Letters of Endorsement
Annex 9: Letters of Co-Financing Commitment (provided in a separate file)
Annex 10: Replicability
Annex 11: Confirmation that no GEF and non-GEF initiatives are currently in implementation with a potential for overlap or duplication
40

ANNEX 2
THREATENED AND ENDEMIC FLORA AND FAUNA PRESENT IN THE AREA
FAUNA
COMMON NAME PL* CITES IUCN** END ZPHC
1.
Smoky Bat
2.
Andean Deer
3.
Guanaco
4.
Marine Otter
5.
Atacama´s Bat
6.
Mountain Cat
7.
Andean Cat
8.
Peruvian Long-faced Bat
9.
Andean Fox
10.
Gray Fox
11.
Puma, Cougar
12.
Mouse Oposum
13.
Vicuna
14.
White-tailed Shrike-Tyrant
15.
Ash-breasted Tit-Tyrant
16.
Crested Duck
17.
Scarlet-fronted Parakeet
18.
Cactus Canastero
19.
Streak-backed Canastero
20.
Canyon Canastero
21.
Black Canastero
22.
Burrowing Owl
23.
Rusty-bellied Brush-Finch
24.
Mountain parakeet
25.
Great hornet Owl
26.
Red-backed Hawk
27.
Band-winged Nightjar
28.
Cinereous Harrier
29.
Black-necked Woodpecker
30.
Andean Flicker
31.
Sparkling Violet ear
32.
Aplomado Falcon
33.
Peregrine Falcon
34.
American Kestrel
35.
Giant Coot
36.
Thick-billed Miner
37.
Black-chested Buzzard-Eagle
38.
Peruvian Pygmy-Owl
39.
Andean Gull
40.
Rusty-crowned Tit-Spinetail
41.
Torrent Duck
42.
Black Metal-Tail
43.
Purple-collared Woodstar
44.
Giant Conebill
45.
Andean Hillstar
SPECIES
MAMMALS
AMORPHOCHILLUS SCHNABLII ***
Hippocamelus antisensis
Lama guanicoe
Lontra felina
Myotis atacamensis
Oncifelis colocolo
Oreailurus jacobita
Platalina genovensium
Pseudalopex culpaeus
Pseudalopex griseus
Puma concolor
Thylamys elegans
Vicugna vicugna
BIRDS
A GRIORNIS ANDICOLA
Anairetes alpinus
Anas specularioides
Aratinga wagleri
Asthenes cactorum
A STHENES WYATTI
Asthenes pudibunda
Asthenes sp.
Athene cunicularia
Atlapetes nationi
Bolborhynchus aurifrons
Bubo virginianus
Buteo polyosoma
Caprimulgus longirostris
Circus cinereus
Colaptes atricollis
Colaptes rupicola
Colibri coruscans
Falco femoralis
Falco peregrinus
Falco sparverius
Fulica gigantea
Geossita crassirostris
Geranoaetus melanoleucus
Glaucidium peruanum
Larus serranus
Leptasthenura pileata
Merganetta armata
Metallura phoebe
Myrtis fanny
Oreomanes frasseri
Oreotrochilus estella
V
V
V
R
V
I
I
II
II
II
I
II
I
I
II
I
R
V
E
E
E
E
E
LR
LR
VU
EN
II
II
II
II
II
II
II
I
II
II
II
II
II
II
II
II
VU
DD
VU
EN
LR
VU
VU
VU
1
2,4,6
6
1
X
1,7
2-4,7
5
1,7
2-7
1
2-4
7
5,6
X
2-4,6
2-4
2-4,6,7
3
1-5,7
5
3
1-5,7
X 1-4,7
5
X 2-4
2,7
2-4
1,3,7
2
2-4,6
X
X
X
X
X
1,5,6
3,4
2-4,6
1-7
2-4,6,7
X
1-7
6
7
7
2
2-4
6
2
2
5
1
41

46.
Giant Hummingbird
47.
Mountain Caracara
48.
Diademed Sandpiper-Plover
49.
Andean Flamingo
50.
Chilean Flamingo
51.
James´s Flamingo
Patagona gigas
Phalcobaenus megalopterus
Phegornis mitchellii
Phoenicopterus andinus
Phoenicopterus chilensis
Phoenicopterus jamesi
Poospiza caesar
E
V
E
II
II
II
II
II
LR
VU
LR
LR
1-4,7
X
5,6
5
5
5
5
6 52.
Chestnut-breasted
Mountain-Finch
53.
Andean Avocet
54.
Oasis Hummingbird
55.
Drab Seedeater
56.
Peruvian Sheartail
57.
Barn Owl
58.
Andean Condor
59.
Tit-like Dacnis
60.
Slender-billed Finch
Recurvirostra andina
Rhodopis vesper
Sporophila simplex
Thaumastura cora
Tyto alba
Vultur gryphus
Xenodacnis parina
Xenospingus concolor
V
R
II
I
II
II
LR
LR
VU
X
5
1-4,7
1,7
1,7
1
1-4,6,7
2,3
1
61.
Peruvian Coast Viper
62.
Slender Snake
63.
Lizard
64.
Arequipa´s Toad
65.
Lima´s Toad
66.
Andean Frog
REPTILES
B OTHROPS PICTUS
Leptotyphlops sp. nova?
Liolaemus annectens
AMPHIBIANS
B UFO AREQUIPENSIS
Bufo limensis
Telmatobius sp. nova?
TOTAL 19 34 19
X
XX
X
1
1
5,6
X
X
7
1
XX 5,6
18 66
*PERUVIAN LEGAL CLASSIFICATIONS (D. S. N° 013-99-AG)
R Rare Situation
V
E
I
Vulnerable Situation
In via of Extinction
Indeterminate Situation
**IUCN CATEGORIES
VU
LR
EN
DD
*** INDICATOR SPECIES
Vulnerable
Lower Risk
Endangered
Data Deficient
These species will be monitored as indicators of ecosystem health as noted under Outcome 1 in the Project Logical
Framework
END: ENDEMIC SPECIES
X
XX
Endemic species from the peruvian andes
Endemic species from the basin
ZPHC: Prioritized zones in the Cotahuasi Basin (description in Appendix 6):
1. Warm Valley
2. Humid Scrubland
3. Semi-dry Scrubland
4. Dry Scrubland
5. Upper Andean Swamp
6. Very High Altitude Pasture
7. Fluvial Mesetas
42

FLORA
COMMON NAME
1.
K´olli
2.
Cedro
3.
Lloqe
SPECIES PL
Buddeja coriacea
Cedrela lilloi
Endangered
Endangered
Kageneckia lanceolata Endangered
IUCN
EN
VU
4.
Algarrobo Prosopis pallida Endangered
5.
Puya de Raimondi
6.
Quenua
Puya raimondii
Polylepis incana
Endangered
Endangered VU
LOCAL NAME
1.
Orchid
2.
Sanki
3.
4.
Unknow
5.
Candelabro
Sancayo
6.
Chilca
7.
Unknow
8.
Unknow
9.
Sinsilfrutilla
10.
Uyu, wasca sanki
11.
Sapan warmi
12.
Unknow
13.
Tuna
14.
Huaraqo
15.
Unknow
16.
Ayrampo
17.
Pikanko
18.
Atoj kiska
19.
Corotilla, espina
20.
Chuna
21.
Judio sanki
22.
Falsa pimienta
23.
Unknown
24.
Unknown
SPECIES
A A PALEACEA
Armatocereus riomajensis
Browningia candelaris
Corryocactus aureus
Corryocactus brevistylus
Echinopsis sp. (1)
Echinopsis sp. (2)
Haageocereus sp.
Melocactus peruvianus
Monvillea sp.
Neoraimondia arequipensis
Neoporteria aff. napina
Opuntia ficus indica
Opuntia flocosa
Opuntia ignescens
Opuntia soehrensi
Opuntia subulata
Opuntia tunicata
Opuntia sp.
Trichocereus puquiensis
Weberbauerocereus rauhii
Euphorbia sp. (1)
Euphorbia sp. (2)
Euphorbia sp. (3)
ENDEMIC FLORA FROM PERU PRESENT IN THE AREA
COMMON NAME SCIENTIFIC NAME
1.
unknown
2.
“tara”
3.
unknown
4.
"lluntu lluntu"
5.
6.
"zapatilla"
"zapatilla, wawilla"
7.
"puru puru"
8.
"zapatilla"
9.
"qerqo"
10.
unknown
11.
unknown
Anthericum glaucum
Caesalpinia spinosa
Calceolaria ajugoides
Calceolaria bicolor
Calceolaria cuneiformis subsp cuneiformis
Calceolaria engleriana subsp lutea
Calceolaria pinnata subsp delicatula
Calceolaria rhacodes
Carica augusti
Corryocactus aureus
Dalea weberbaueri var weberbaueri
II
II
II
II
II
II
II
CITES
II
II
II
II
II
II
II
II
II
II
II
II
II
II
II
II
II
ZPHC
ZPHC
2
1,7
1,7
4
1
2,3
2,4,7
7
1
2-4
1
2,3
1-4,7
3,6
2-4,6
2,3,6
2-4,7
7
2,3,7
2-4
1
7
7
7
2-4,6
2-4,7
2-4,7
1
2
2,3
43

12.
unknown
13.
unknown
14.
unknown
15.
unknown
16.
"qera de flor amarilla"
17.
unknown
18.
"añauso"
19.
"clavelina"
20.
21.
unknown
"sapan warmi"
22.
“k`amasaire, yanqara"
23.
"sheqquia"
24.
unknown
25.
"cola de zorro"
26.
“matiko”
27.
unknown
28.
"puka pantalo"
29.
“salvia, upichina"
30.
"asno muña" unknown 31.
32.
"kausillo"
33.
"hueckla"
34.
"upas"
35.
"paco-paco"
36.
"qata"
37.
unknown
38.
"mamachaq toqaype"
39.
unknown
ANDEAN GENETIC RESOURCES
GENETIC RESOURCES
Andean grains
Cucurbits
Cereals
Eremocharis conffinis
Eremocharis hutchisonii
Festuca tectoria
Hoffmanseggia miranda
Lupinus cuzcencis
Lupinus eriocladus
Lupinus paruroensis
Malesherbia angustisecta
Monnina ramosa
Neoraimondia arequipensis.
Nicotiana paniculata
Ophryosporus aff chilca
Paronychia weberbaueri
Pennisetum rupestre
Piper acutifolium var. acutifolium
Puya aff. reflexiflora
Salvia hapalophylla
Salvia oppositiflora
Satureja brevicalyx
Setaria limense
Siphocampylus candollei
Tillandsia humilis
Tillandsia latifolia var latifolia
Tiquilia elongata
Valeriana coarctata
Valeriana thalictroides
Verbena aff. occulta fo. occulta
Villadia reniformis
N° OF ECO/MORPHOTIPOS
49 ecotypes
5 ecotypes
232 morphotypes
COMMON NAME amaranth, quinoa, canigua calabash, pumpkin maize
Legumes
Roots
Tubers
Other crops
193 morphotypes
8 ecotypes
160 ecotypes
16 ecotypes beans, Lima beans, lupine canna, aracacha, sweet potato mashua, oca, olluco, potato, yacon chili, ayrampu, cayhua
44

ANNEX 3: ECOLOGICAL ZONES IN THE COTAHUASI BASIN
Process of Defining Ecological Zones
The Cotahuasi Basin is comprised of a large and varied assortment of ecosystems and ecological conditions, which collectively represent numerous land and water resource complexes, as well as significant elements of the biodiversity identified as existing in the Tropical Andean Hotspot. Based on the premise that the biodiversity is not uniformly distributed throughout the basin, with some areas having much greater concentrations of living organisms than others, those areas which have the richest biodiversity resources have been identified, and analysis of their ecological characteristics (soil types, precipitation patterns, etc.) collected. At the same time, information has been collected on the threats to both the biodiversity and the land and water resources in each of these zones, recognizing that they suffer varying degrees of degradation due to human interventions,
During this initial analysis, project proponents used the three criteria acknowledged by Conservation
International for identifying its 25 hotspots at the global level, and a number of zones within the basin were differentiated, mostly as small areas within narrow ranges of altitude. Following this stage, ecological unity criteria were applied, and the presence of human populations and pressure on natural resources were considered. This analysis combined some zones and eliminated others, eventually resulting in the classification of the Cotahuasi Basin into seven ecological zones.
In the following text, a description is provided for each of the seven ecological zones identified within the basin, with details provided on location, topography, ecology, human activities, and the threats posed to biodiversity and soil and water resources.
Note: Annex 2 shows how endemic species and those which are protected at national or global levels are distributed within these seven zones.
Warm Valley zone
This zone comprises a strip which follows the length of the Cotahuasi River at altitudes lower than 2100m amsl, extending from a colony of endemic columnar cacti known as Judio Pampa (Quechualla District) down to 900m amsl in Chaucalla (Toro District). In the narrowest part of the canyon it is basically a desert with some small natural or man-made oases created by watercourses which appear at intermediate positions as springs or which drain ice-melt from the high ground ( puna ). There are small fruit-growers' settlements, principally the villages of Chaupo, Velinga, Quechualla and Chaucalla; and there are haciendas (agricultural units) comprising vineyards, such as Maucallacta, Yachau, Huiñanquire and
Toccec, among others, which are populated only during the harvesting and grape-treading season. This area has a population amounting to only a few families; it is, however, the most populated in the lower parts of the south of the basin. Since times in the remote past, the inhabitants have known how to modify their environment in order to subsist under the very difficult conditions of shortage of water and cultivable land. Those people built an unusual system of terraces, different from those to be found in areas of medium or high altitude, in that the height of the retaining walls is two or three times the width of the cultivable land they support. They also knew how to optimize irrigation by means of complex subterranean and surface systems complemented by 'infilling' of the terraces where, underneath the agricultural topsoil (brought in from quite distant locations), are to be found layers of stones of different sizes.
Because the zone forms part of a canyon, access to the terrain is difficult and only some small areas in the base of the canyon, among rock-strewn and sand-covered areas, can be used.
45

The characteristic plant life of this zone includes colonies of columnar cacti, succulents and other xerophytes as well as some native trees like the carob, huarango and fruit trees. Many of the plant species found in this zone are endemic to the Peruvian deserts and small regions in the north of Chile.
Regarding the fauna, there have been recordings of species not previously noted for the south of Perú, such as the fruit-eating bat ( Sturnira erythromos ); there has been a widening of the altitudinal and lateral distributions of others, such as the sea otter ( Lontra felina ) and the smoker bat ( Amorphochillus schnablii ). In addition, a new species has been discovered, a ‘blind snake’ of the Leptotyphlops genus; it has a very restricted distribution. The sea otter is a permanent resident in this zone, something unusual for this species in that it is normally thought to dwell exclusively on rocky sea shores or in estuaries. Here, many kilometers from the coast, it feeds and very probably (according to some of the local people) reproduces.
The fruit plants have the largest diversity among the cultivated plants, there being more than 100 varieties of some 30 species of trees and shrubs. There is much diversity among some cultivated annual species, such as the bean.
Threats to the biodiversity of this zone come from pollution of the higher reaches of the water sources by cyanides, a result of the extraction of precious metals by casual miners who exploit mines abandoned during colonial times, and from the loss of cultivable land by soil erosion, giving rise to expansion of the agricultural land to cover stands of endemic cacti of important concentrations or to exploiting the pre-Inca terraces (archeological zones) which are not appropriate for fruit cultivation - mainly grapes. A further important threat is the extraction of animal and plant resources, including the misuse or indiscriminate depredation of some important components of the biodiversity, such as the otter, desert trees, columnar cacti more than a thousand years old, and the ‘blind snake’ (
Leptotyphlops sp. nova ). Finally, because this is very rugged terrain with pronounced relief (50% to 70%), with soils that are rocky or rock-strewn, and very thin and shallow, agricultural expansion onto steep slopes and lack of proper terracing and other soil conservation techniques results in significant soil erosion in this zone.
Humid Scrubland zone
This area is among those having the highest relative humidity in the basin. It is located mainly in the lower part of Puyca District, between 3300m and 4200m amsl, and this is where the main settlements of the district are to be found: Suni, Maghuancca, Puyca, Huactapa, Churca, Lauripampa and Chincayllapa.
Each of these villages has some dozens of families who live from agriculture, principally roots and tubers, some cereals, and broad beans. Many families own camelids (llamas and alpacas) and some of the higher zones are utilized for raising these animals. There are some cattle, which are left to fend for themselves among the hillside vegetation. The villages are built on pre-Inca settlements, which also occupied these intermediate zones with a view to better management of the natural resources. The lower parts were used for agriculture on terraces of varying sizes and the higher zones were managed as pasture for grazing llamas and alpacas, as water sources for the irrigation of the agricultural terraces, and as grounds for hunting deer and guanacos. Some of these methods of survival are still used by people today, making their economic activities sustainable.
The topographical characteristics are those of Upper Andean valleys, ravines with small extensions of cultivable land, all on terraces. The zone is characterized by rugged terrain with slopes averaging 40%, where Pre-Inca terraces were constructed and agriculture continues to be practiced. The weather is mild during the mornings and cold at night, with frosts occurring occasionally.
The vegetation in this area has some important elements owing to the humidity and geology. There are small patches of queñua
( Polylepis incana ) to be found in the upper parts of the settlements mentioned, this representing the southwestern limit of the distribution of this protected species. Associated with
46

these areas of queñua are other plant species such as Gynoxis longifolia , Buddleja coriacea , Tillandsia spp . and Tristerix sp . This is the zone in which the majority of protected species of flora is to be found.
The new recordings of fauna in the south of Perú have been mostly for this zone, especially near the original queñua woods. Some examples are Anairetes alpinus , Grallaria andicola , Asthenes ottonis ,
Asthenes wyatti and Leptasthenura pileata . There is a wide variety of fauna owing to the presence of special habitats, generally in vegetation mosaics. Species of hummingbirds, rodents, grain-eaters and insect eaters are common. A species new to science is probably present, a bird which belongs to the
Asthenes genus and weaves a basket-like nest.
Cultivated plants are represented in this zone by a considerable variety of tuber and root plants. This zone can be considered as an intermediate point in the flow of seeds originating in the neighboring departments of Apurímac and Cusco.
The burning and over-exploiting of the woods and other wild vegetation is one of the principal threats to the biodiversity and results in the reduction and fragmentation of unique habitats in the basin. There is also a loss of native varieties of cultivated plants which make up the local agro-biodiversity, as the advancing highway facilitates the introduction of exotic varieties. Road construction also contributes to the deterioration of the natural environment (soil erosion, water quality declines, habitat destruction), exacerbated by the absence of environmental impact studies for these projects. While the soils of this zone are agro-ecologically appropriate for pasture despite their deficiencies and limitations, mainly deriving from climate and soil depth, they are significantly prone to erosion without proper management techniques.
Semi-dry Scrubland zone
Basically, this zone comprises the part of the valley of the Pampamarca River between the town called
Pampamarca (capital of the district) and Tecca, which is the altitude limit of the district's cultivated zone.
The principal activity is agriculture, much of which is carried out in an area with one of the largest numbers of terraces in the valley and where half dozen important settlements devoted to farming and cattle raising are located. It is evident from the archeological remains that human beings have inhabited this zone for thousands of years and that the soil and water resources were efficiently managed, resulting in their conservation to this day.
The zone is located within the valley formed by the River Pampamarca and has steep slopes. In areas where the gradients are slighter, it has been possible to build agricultural terraces. The climate is generally cold with a few hours of moderate temperatures around mid-day.
The vegetation is of steppe scrubland type with several species of shrubs which, together with native herbaceous plants and trees, provide a variety of conditions favorable to the presence of other living organisms. There exists a wide variety of native species of wild flora in the zone and these are used, principally, as medicines, fodder and firewood.
The fauna is especially varied and includes some species endemic to the Peruvian Andes and some protected species. It is the only location where Atlapetes nationi has been recorded, as well as there being an important colony of the endemic bird Leptasthenura pileata.
There is diversity in almost all types of cultivated plants such as tubers and roots, grains, cereals and leguminous vegetables. The exchange of seeds in this zone is generally with the neighboring department of Ayacucho, but varieties from Apurímac and Cuzco can also be found. One locality within this prioritized zone, Tecca, is considered to be the basin's main center for the concentration and conservation of native varieties of the potato.
47

Threats to the zone’s ecosystems and biodiversity stem especially from the burning of vegetation on the hillsides and from the over-exploitation of species of trees and shrubs. There is, furthermore, poor distribution and use of water, soil erosion on hillsides and areas where the terraces have been abandoned
(due primarily to water scarcity); the abandonment of cultivable terrain, and the introduction of exotic varieties results in a loss of native varieties of cultivated plants.
Dry Scrubland zone
This zone is represented by the middle and upper parts of the districts of Quechualla and Charcana, mostly at altitudes above 2700m amsl, as far as the frontier with the department of Ayacucho, in the south-west of the province. There are some important settlements here, such as Andamarca and
Charcana, which are principally devoted to subsistence cultivation on terraces at altitudes of approximately 3000m amsl. In the higher parts there are villages where the people raise llamas, alpacas and sheep. Owing to the physical characteristics of the zone, human beings, since ancient times, have had to fight for survival in the face of much reduced water supplies, a situation which persists to this day.
The topography of the zone is characterized by the steeply sloping hillsides, with average slope close to
70%, which form the right bank of the deepest part of the canyon. The soils are rocky and sandy and their main limitation comes from the extreme environmental dryness with only the rare presence of small water sources.
The vegetation in this zone clearly demonstrates that the relative humidity in this part of the basin is lower, given that the majority of shrubs and herbaceous plants have predominantly xerophytic characteristics; there are exceptional small areas with higher levels of humidity. This area has species of flora which have not been detected in the rest of the basin, and whose distribution is shared with the department of Ayacucho and other areas in a northerly direction within the Western Andes.
As with the flora, species of fauna which do not occur, or are less abundant, in other parts of the basin have been recorded here. Examples are a tyrannid ( Myiarchus tuberculifer ) and a still unidentified fringilid, as well as a greater abundance of large mammals such as deer, pumas and vicuñas, these lastmentioned being found in the higher part of this zone.
The zone's cultivated plants show a diversity which reflects its location along the seed-exchange route from neighboring districts in the department of Ayacucho as well as from the other side of the southern zone of the basin, such as the district of Toro.
Among the threats to this zone are the high levels of soil erosion, as well as the decline of historic water sources (e.g. springs), resulting from the loss of vegetative cover. Many of the factors involved in this loss of vegetation are associated with human activity, such as burning. In the uppermost part of the zone, poaching, which is still committed, has exterminated the guanaco and drastically reduced the numbers of the vicuña. The building of two roads in this zone threatens to cause the deterioration or fragmentation of local habitats since environmental impact studies were not carried out for these works.
Upper Andean Swamp zone
This is one of the largest of the basin's prioritized zones. It is situated above 4500m amsl and occupies the upper parts of the districts of Puyca and Huaynacotas. No crops are cultivated there and the principal activity is raising animals. Several varieties of alpacas, llamas and sheep are to be found as well as, to a smaller extent, cattle. The human population is dispersed among some dozens of hamlets, each of which comprises a few families; the principal localities ( anexos ) are Yigua, Culipampa and Huarcaya. Smallscale fishing is carried out for two species of trout. Current activities which are not easy to carry out, such as the raising of animals at this altitude, are the result of techniques handed down from the earliest settlers in the zone.
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This zone is where the Cotahuasi River Basin starts, with the Compepalca and Huarcaya rivers. It is typically only slightly sloping, with some gentle hills and the high peaks of the cordilleras at over 5000m amsl. There are numerous bofedales (swamped grassland), small- to medium-size lakes of up to 200ha, and many rivers and streams. The soil is variable and may be sandy, rocky or even rich in organic material. The weather is cold during the daytime and nocturnal temperatures usually descend to sub-zero levels.
The predominant vegetation comprises grasses ( Poaceae ) of a great variety of species, and among these grasses there can be found herbaceous plants or small shrubs either in isolation or in groups of their particular species. There is an abundance of medicinal plant species.
The fauna constitute an important element for the zone since there is a very significant diversity of species which are protected by Peruvian legislation, the International Union for Nature Conservation or the International Convention on Threatened Species. These are generally aquatic birds, some of which are migratory and arrive in this part of the basin in thousands during the rainy season (December to
April). The white-tailed deer ( Odocileus virginianus ) can still be found in this zone. This zone is where three species of frog of the genus Telmatobius are found, one of which is very probably new to science and endemic to the upper part of the Cotahuasi River Basin. Two large rodents are found only in this part of the basin: Chichillulla sahamae and Auliscomys boliviensis .
Threats generally derive from pollution or misuse of the water resources, which give this prioritized zone its distinctive characteristics. Mining activities, which require extensive use of water resources, are drying up many of the bofedales and causing the pollution of some watercourses. This zone has also seen significant changes in precipitation patterns (possibly due to climate change) that are resulting in the diminishment of marshlands, which in turn results in increased overgrazing on other lands. When significant precipitation does occur, there is accelerated soil erosion owing to the declining vegetative cover. The advance of several roads built by mining concerns or companies providing electrical energy distribution has triggered the process of selling farm animals and products derived from them and the purchasing of consumer products brought in from outside, generating waste which is then jettisoned in lakes and bofedales . Another important threat is the overuse of the bofedales and other pastures, the end result being the reduction in the habitats of land and aquatic species and, ultimately, the formation of desert.
Very High Altitude Pasture zone
This is another of the basin's more extensive ecological zones. Population centers are few, the main one being Achambi, located at the lower limit of this zone at an altitude of 3500m amsl. The inhabitants of several of the settlements in the lower part of this zone engage in the raising of animals and the extraction of plants. There are some ranches and villages such as Huambo and Cuybe where cattle, llamas, alpacas and sheep are raised. It would appear that in the past this zone was important for raising camelids
(possibly only llamas) as there is evidence of pasture areas which can be alternated and of migration routes for the herders and their animals.
As with the previously mentioned zone, the topography is gently rolling, with some steeper hillsides and ravines. The soil is generally sandy, partially covered with grasses but with many uncovered areas. A large part of this territory comprises the lower slopes of the snow-capped mountains Solimana (north and west) and Firura (south-west), where there are some small seasonal lakes which provide irrigation water for the terrain lower down in the more populated part of the basin.
The flora consist mainly of graminaceous plants with some herbaceous and shrub species in patches, such as the tola ( Parastrephia spp .) and yareta ( Azorella compacta ). There are also clumps of tree species, notably the tasta ( Escallonia myrtillioides ).
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Protected large mammals such as the guanaco, vicuña and Andean deer inhabit this zone. Some endemic or protected bird species, such as Poospiza caesar and Asthenes modesta , are found only in this zone. In
Huambo, a part of this zone, there are also three species of frog, one of which appears to be new to science.
The major part of this zone presents very severe limitations to agriculture, stemming from the poor (dry and irregular) climate characteristics and poor soil quality. Only in Achambi and Huambo are there areas which are cultivated with tubers, roots and some grains. Achambi has an uncommonly large selection of varieties of potato and it is from here that their seeds are distributed to other parts of the basin.
Desert-forming processes are noticeable in this zone. Most of the water resources originate in melting at the fringes of the snow caps on the peaks and may take the form of small streams or springs, but many of the once reliable water sources are currently dry as the area of land covered in year-round snow continues to recede. Irrational extraction of trees and shrubs reduces the vegetation cover, contributing to erosion and diminishing important habitats. This irrational exploitation is causing the local extinction of some species, such as the tasta and the yareta .
Fluvial Mesetas zone
This zone comprises a strip lying between the towns of Cotahuasi and Antabamba in Alca, and between
2600m and 3200m amsl. It is characteristically agricultural and contains 40% of the entire population of the province of La Unión. There are small areas with a great diversity of crops, mainly maize, potato and quinoa. This is where the province's principal settlements are located, such as Cotahuasi (the capital),
Tomepampa, Taurisma, Visbe, Alca, Cahuana, Quillunza, and Mungui. Cattle and sheep are raised for meat and dairy produce. Some of these settlements are located on the banks of rivers and suffer from flooding during the rainy season. This would not have been a problem during pre-Inca times, since settlements were located on higher ground.
The banks of the Cotahuasi River are occupied where there are level areas close to the water or where there are mesetas somewhat higher up, and some locations with moderately sloping terrain have terraces.
Much of this zone is suitable for permanent agriculture, and the agricultural land is not irrigated with water from the river but rather by water which comes down from the puna or other high parts of the basin via springs or streams. Surrounding the agricultural land are extensive areas suitable for pasture, areas that require simple management such as the application of light dressing to the soil in order to maintain its fertility.

Wild flora include tree species such as the molle ( Schinus molle ), kishwar ( Buddleja incana ), willow
( Salix humboldtiana ) and tara ( Caesalpinea spinosa ); shrubs, mainly Asteraceae and Malvaceae , with some species endemic to the Peruvian Andes, such as some Bromeliaceae ; and, similarly, some herbaceous species which are used mainly as medicines.
Vertebrate fauna are represented by several mammal species (rodents and bats), insectivorous, granivorous and omnivorous birds, amphibia and reptiles. This zone can be considered as an ecotone between the upper and lower parts of the valley, since some species from both areas are present. There are also endemic and protected species such as the Peruvian or black-collared woodpecker ( Colaptes atricollis ) and the cactus basket-bird ( Asthenes cactorum ).
The diversity of native cultivated plants is smaller than in those zones above an altitude of 3000m amsl owing to the introduction of extraneous varieties. This is especially true in the case of the potato, of which no native variety can now be found in this zone. However, a large diversity of types of quinoa, maize and tarwi is conserved.
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Since there is a larger population and a greater number of access routes in this zone, threats derive especially from soil and water pollution by solid and liquid wastes which are improperly dealt with in the populated centers, and from the use of agro-chemicals on some of the plots. The slopes and ravines have been denuded of vegetation as a result of overgrazing and burning, which has led to erosion through mudslides. Finally, poor use and distribution of water resources also occurs in this zone.
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ANNEX 4: ALTERNATIVE LIVELIHOOD ACTIVITIES
1.
ORGANIC AGRICULTURE
An outstanding diversity of cultivated crops, and a native population keenly interested in preserving native crop varieties and traditional agricultural practices, make the Cotahuasi basin an excellent candidate for sustainable agriculture based on organic farming. With a native crop diversity estimated at over 1,500 ecotypes and morphotypes, including 42 ecotypes of quinoa and 101 of native potatoes, with many cultivars unique to the basin, and with many wild relatives of cultivated varieties still persisting in the basin, farmers in the Cotahuasi basin have the potential to bring many unique and appealing products to market. Given the preference of many consumers of organic foods for unusual varieties, and based on the demonstrated success of farmers in the basin in accessing foreign markets, the potential is very high for transforming a large percentage of the agricultural land in the basin to organic farming.
By the year 2000, 350 farmers were participating in the certified organic agriculture program begun by
AEDES, and together they produced and sold approximately 180 tons of organically grown products
(amaranth, quinoa, broad beans, mulberry corn, beans and yacón). During the 2001-02 season, approximately 400 tons of export quality, organic Andean cereals were sold, with a gross market value of
US$300,000. It is expected that approximately 700 families, representing over 15% of the province’s population, will participate in the program during the 2002-03 season. Total production for this season is forecast to be over 1,200 tons, with a market value of almost US$1,000,000.
In addition to assisting farmers with adopting or improving organic agricultural production, the project will also facilitate increased processing and marketing of organic agricultural products in order to increase incomes within the Cotahuasi basin. Processing of several Andean cereals and roots (e.g. llacón ) has already been successfully introduced, allowing farmers to increase incomes through value-added activities and to ensure that product quality meets national and international requirements. The project will also undertake marketing activities, including new or increased markets for existing products, the identification of varieties with unutilized market potential, and the designation of organic certification for crops produced in the area. Other activities to support the growth of organic agriculture will include the establishment of an entomological laboratory for biological pest control, and education and outreach on reducing the use of agro-chemicals in the basin.
The development of production and markets for organic medicinal and aromatic plants is also included in the project design. The project will conduct research on potential marketable varieties, and provide training in the collection, cultivation, and processing of wild and domesticated medicinal and aromatic herbs. Already, contracts for the production of medicinal plants have been initiated with European businesses, several of which are helping to finance the installation of processing equipment.
As part of the effort to promote organic agriculture and the use and preservation of traditional agricultural varieties in the basin, the project will include these issues in its education and awareness raising activities.
Apart from the specific outreach to the agricultural community, the project will also promote seed fairs within the formal education framework in local schools, to reinforce the transfer of knowledge from parents to children.
To support the efforts of AEDES in developing organic agriculture, key stakeholders including farmers, private businesses, and regional and national government agencies, have been consulted and tapped as partners during the project implementation. The National Program for River Basin Management and Soil
Conservation (PRONAMACHCS) has expressed its intent to support organic farming, soil conservation, rural infrastructure and other related activities in the basin. PRONAMACHCS has expressed its willingness, based on the demonstrated success in producing significant and steady volumes of marketquality crops in the basin, to support proposals for development and replication of agro-industrial processing, with the goal of increasing value-added activities within the basin. In drawing up local and
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regional plans, the organic farmers have begun to seek recognition as the first region devoted to organic farming in Southern Peru, and have managed to get the Regional Board of Agriculture to assign trained personnel to support organic production during the 2002-2003 agricultural season. On the private sector side, AEDES has recently initiated a dialogue with several fair trade agricultural groups in North
America, which could help to develop sales in a market to which the project had initially assigned very little weight.
AEDES also has the support of international institutions in developing agrobiodiversity conservation and agricultural development programs. AEDES is working with two public and six private institutions within the framework of an agreement with IPGRI-IFAD (International Plant Genetic Resources Institute
- International Fund for Agricultural Development) as part of the project “Increasing the Contribution of
Forgotten and Underutilized Species to the Food Security and Incomes of Poor Rural Populations”. In the past year, AEDES has carried out activities under this project for the in situ conservation of native crops and their wild relatives.
2.
MICRO-CREDIT PROGRAMS
Starting with the 1999-2000 agricultural season, advances in the production of organic agricultural products have been accompanied by a micro-credit scheme in the Cotahuasi basin. During its initial stages, this program focused on crop producers exclusively, providing them with loans for acquiring necessary materials and financing work done up until harvest times. This line of credit, of up to
US$120,000, was provided by the Peru-Canada General Equivalent Fund as a trust within the Caja Rural
Inkagro, for the benefit of the members of the Association of Organic Crop Growers - La Unión (APCO).
During the 2001-2002 agricultural season, these farmers used approximately US$42,000 in credit backing.
During 2002, AEDES opened a line of credit through the NGO FONDESURCO (Regional Development
Fund) for US$50,000 to provide backing for activities related to marketing the organic produce of APCO.
This line of credit is designed to reinforce the capacity of APCO to acquire the production of its members at the time of harvest in order to fulfill domestic and export sales contracts.
In addition, AEDES opened another line of credit in 2002 through FONDESURCO for US$25,000 to support agro-industrial processing of organic produce and to encourage the provision of services for participatory tourism. This line of credit may increase with contributions from FONDESURCO, based on the demand from small businesses and micro-businesses in La Unión Province.
These three lines of credit, which provide support for the activities which AEDES carries out in the province of La Unión, may be complemented with others which public sector institutions are making available in order to help rural inhabitants and owners of micro-businesses who engage in the activities of agro-exports and sustainable tourism.
AEDES personnel work closely with the micro-credit agencies in implementing these funds and in disseminating information among the farmers of the province, so that farmers can take advantage of the best opportunities regarding interest rates or repayment conditions. During the project, AEDES will undertake to educate micro-credit institutions about environmental sustainability criteria that can be applied to micro-credit lending decisions, including project review processes that assess environmental impacts (e.g. soil fertility, water quality, and promotion of reforestation in the agricultural sector, and site impacts and use of renewable energy in tourism development). This will build on the work AEDES has already done with other environmental NGOs in Arequipa Province, and with the Regional Commission for the Environment (CAR), on the greening of micro-credit funds.
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AEDES also will undertake a mid-term evaluation after two years to assess the success of the micro-credit activities, and to determine whether other financial tools (e.g. soft loans, guarantee mechanisms) or additional capital are needed.
3.
TOURISM
A. Principal Tourist Attractions of the Cotahuasi Basin
The Cotahuasi basin has numerous distinct features, including unique biodiversity, cultural and historical attractions, and dramatic landscapes, to make it an appealing destination for ecotourism. Natural attractions include scenic vistas, waterfalls such as Sipia (250 meters) and Uscune (90 meters), and therapeutic hot springs, including ones with visitor facilities in the districts of Huyanacotas (Luicho), Alca
(Lucha), Quechualla (Mayo), and Pampamarca (Joshla). Other natural attractions include the lagoons at
Igma, Huanzococha, and Rontococha and the volcanic rocks of Santo Santo in Huaynacotas and
Pampamarca. The basin possesses an impressive diversity of flora, including patches of exotic plants like
"Puyas de Raymondi" or "Pitankas" in the annex of Churca and localities of Achaco, Ccocha y
Lauripampa (Puyca); the giant cactus weberbauer in Judio Pampa (Quechualla); and an abundance of
"Yareta" (Azorella Sp.) throughout the province. The impact of human settlement in the basin has also created attractions for the visitor, including impressive cliffside agricultural terraces and herds of domesticated llama and alpaca. However, the most famous natural attraction is the Cotahuasi canyon itself, a narrow gorge surrounded by snow-covered peaks that is the deepest canyon in the world (3,550 meters).
Other resources of extraordinary importance are the archaeological sites of the Inca and pre-Inca culture.
Every district in the basin contains archaeological sites, most of which still have not been explored or investigated. Among the more notable are the ruins of Maucallacta, the ancient Spanish village of Ccaja, the Chullpas, the funeral towers of Ayahuasi, and the pre-Inca paintings of Huancarama in Charcana
District. Finally, the beautiful picturesque villages of the traditional Wari, Chanka, Inca, and other indigenous cultures in the valley are an attraction for visitors, as are the traditional cultural practices and identity of the inhabitants. In sum, the Cotahuasi basin offers tourists the possibility to experience outstanding natural beauty, adventure, historical and cultural sites, and interaction with local communities, as well as access to their traditional agricultural, medicinal and handicraft industries.
B. Tourism Development and Management
Since 1996, AEDES has undertaken, as a part of the implementation of the Agenda 21 for La Unión
Province, a series of activities for increasing awareness among the population, local authorities, and business people, with a view to encouraging organized eco-tourism in the Cotahuasi Basin. Initial results were the organization of the operators of micro-businesses already carrying out operations linked to tourism, with the promotion, in each of the districts, of Tourism Working Groups comprising the institutions and organizations linked to that activity.
The activities of those Working Groups have focused on awareness building and initiation of training program which encompass operators and employees of lodging houses, restaurants, guide services, as well as local authorities; awareness building about the basin’s principal attractions; the construction of roads which facilitate access to those attractions; and coordination with different regional and nationwide institutions to ensure access to public services (electricity, telephone service, and drinking water) for tourism facilities. The training activities have been coordinated with nationwide specialist institutions such as CENFOTUR and PROMPERU.
The project will develop and implement a tourism plan for the entire basin, focused on ecotourism and cultural tourism, with the active participation of local populations, planning agencies, and private
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operators. Interpretative walking routes, focused on providing visitors with access to natural physical attractions, cultural/historical sites, and agricultural points of interest, will be established. The walking routes will focus in particular on the unique biodiversity and ecosystems found in each ecological zone of the basin (e.g. upper Andean swamps, relict forests, endemic flora and fauna). Tourist lodges will be established in nine localities throughout the basin, owned and managed by local inhabitants. Currently, several tourist lodges run by local families are in operation, with the assistance of AEDES as a technical advisor and marketing partner. During the project, AEDES will work to secure credit from state agencies and investment from private tourism operators to expand and develop new tourism lodges as joint venture projects. AEDES will also train local inhabitants to take over the responsibilities as tour operators currently managed by AEDES.
During the project, tourism planning and management in the basin will be directed by the already existing
Provincial Cooperation Council, through its Working Group on Tourism and Cultural Heritage.
Guidelines to ensure that tourism development does not have negative impacts on the area’s natural and cultural diversity have been developed, based on extensive discussions and participation of local inhabitants. Specific codes of conduct for tourism will be promulgated and disseminated during the project, and monitoring of tourism development will be the responsibility of provincial level authorities, in conjunction with the district level committees and the local population.
Planning and management of tourism development in the basin will be greatly aided by the stated intent of key tourism development agencies within Peru to assist in attracting visitors to the Cotahuasi basin.
Among the project partners for this work will be: PromPerú, the state agency that supports the promotion and development of sustainable tourism; the Ministry of Industry, Tourism, Integration and International
Commerce, the state agency in charge of the development of tourism within Perú; and the Tourism
Training Center, an institute which supports the training of tour operators at a nationwide level.
C. Tourism Economics and Growth
Ecotourism represents a significant economic opportunity for local communities and another means of reducing pressure on the basin's natural resources. Current tourism revenues in the basin are estimated at
US$82,000/year, and this is projected to increase to US$954,000/year by the end of the project (see Table
1). The historical data on tourism growth and spending in Tables 1 and 2 are based on field observations and records for the past four years, while the forecast data is based on projections of historical data combined with analysis of numerous factors that will impact tourism growth during and after implementation of the proposed project. Some of these factors are linked directly to expected benefits to tourism of various project activities, including the development of hiking circuits and visitor sites; training of certified guides, tour operators, and lodging owners; improvement of accommodation and transportation; and the increased availability of local food products and handicrafts for purchase by tourists. In addition, publicity about the Cotahuasi basin and its tourism attractions provided by a high profile project involving national and international organizations has already had a noticeable impact on tourism during the PDF-A phase, and is expected to continue or increase during the MSP phase (although this was not incorporated into the forecasts for tourism growth).
Table 1. Number of tourists and income from tourism in the Cotahuasi Basin (US$)
Year
2000
2001
2002
2003
Independent n° of tourists
Expenditure
800
930
1 000
1 250
58 000
67 425
72 500
352 500
Through agencies Total n° of tourists
Expenditure n° of tourists Expenditure
150
270
300
750
8 400
15 120
16 800
86250
950
1 200
1 300
2 000
66 400
82 545
89 300
439 300
55

2004
2005
2 000
2 500
600 000
875 000
1500
2500
420 000
700 000
3 500
5 000
954 000
1 575 000
Several factors external to the project are also expected to increase tourism in the basin. The recent declaration of the regional capital city of Arequipa as a World Heritage site has increased interest in the entire region as a tourism destination. The declaration of the Cotahuasi basin as the world’s deepest canyon in 1998, and several high-profile international climbing and rafting expeditions since then, have raised the profile of the basin as an adventure tourism destination. In addition, significant investments in road improvements (already approved in the budget) between the project area and the tourist center of
Cuzco will make the basin much more accessible to visitors. Currently, road access to the area is by a single dirt and gravel road through the mountains, a route that takes between 12 and 14 hours from the provincial capital of Arequipa to Cotahuasi. The road goes through the heart of the fertile valley of
Majes, and then winds its way up to the picturesque locality of Chuquibamba. From there, the road heads up onto the high plateaus, reaching an elevation of over 4,000 meters in the vicinity of the snow-covered peaks of Solimana and Coropuna, before dropping back down into the Cotahuasi basin. This road is scheduled to be paved by 2004, reducing travel time to 7 or 8 hours.
Significant investments in tourism infrastructure are also expected to strongly stimulate the growth of tourism in the Cotahuasi basin. Investments in land and facilities for ecotourism by investors from outside the region, including several European investors, have increased in the past 1-2 years. More importantly, attractive returns on investments in tourism infrastructure and services earned already by small local landowners has given rise to greater interest among locals in extending and/or starting up new tourism-oriented investments, and this, in turn, is improving the quality of services being offered to the tourist. This burgeoning interest in reaping the benefits from the increase in tourism is motivating indigenous communities to start investing in the provision of services related to tourism based on the natural landscape and on their traditional culture and agricultural practices. Similarly, local governments in the province are investing more in infrastructure, particularly that supporting tourism circuits, as they see the benefits of tourism for their local economies. Recent visits (July-August 2002) by three groups of
20 French tourists each as part of participative community tourism package demonstrated to local leaders and community members alike the potential for revenue generation, as well as providing AEDES and community members and leaders a change to evaluate the strengths and weaknesses of the communitybased tourism that will be promoted during project implementation.
Table 2. Current & Estimated Spending of Tourists Visiting the Cotahuasi Basin (US$)
T OTAL EXPENSES FOR THE VISIT
Lodging
Food
Personal expenses (general purchases)
Guide Services
Porter Services
Handcrafts and souvenirs
Transportation (motor vehicle or horse)
Special services (museum, botanical garden, equipment rental, guidebooks etc.)
2001 (4 DAYS
18
20
13
6.5
--
--
15
--
) 2004 (6 DAYS
35
50
20
52.5
26
32
35
22
Total (US$) 72.5 272.5
Rationale for increases by item in Table 2 (in addition to the increased length of visits):
)
Lodging: Lodging provided in the homes of community members, with related attractions and services, samples of agro-biodiversity, and participation in traditional activities such as sowing and harvesting, within the framework of experience tourism.
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Food: Greater supply and variety, based on typical local dishes and local farm produce.
Personal expenses: An increment solely for the number of days and a greater availability and variety of places which offer services.
Guide Services: At present there are no local guides, only porters. However, local guides are being trained in order to provide this service. The average daily charge is US$ 15°°, with an estimate that, out of a six-day stay, a tourist will use a guide for three and one half days.
Porter Services: Payment for porters would be at an average daily rental of US$ 6°° to 7°°.
Handicrafts and souvenirs: At present, there is no supply of local souvenirs, but a start has been made in the production of handcrafts derived from rock salt, textiles for tourists, and other types of hand-made products based on special elements of the local biodiversity, such as carefully selected seeds.
Transportation: The increment is based on the greater availability of mules and horses for transporting tourists as well as the use of motorized vehicles for new routes.
Special services: This represents spending on the new services being created or in the planning stages, such as environmental interpretation centers, local museums, botanical gardens, hiking and fishing camps, etc. It also includes tourist guidebooks and natural history guides to the basin (i.e. guides on local flora and fauna).
D. Tourism and Conservation
In designing this conservation and sustainable management project, one of the fundamental goals of the inhabitants of the Cotahuasi basin was to develop a strategy for managing the impact of the expected growth of tourism in their landscape, including potential threats to the area’s biodiversity. As such, tourism development plans, as discussed at the provincial and district councils, have been structured so as to respect, utilize and support the conservation of natural and cultural resources and biodiversity.
Mechanisms for directing tourism revenues towards conservation are planned, including a visitor entry fee to enter the Landscape Reserve that will be used exclusively for conservation activities.
In addition to providing direct revenues for conservation, the tourism program in the basin is intended to provide local inhabitants with the incentive to support ongoing conservation efforts. First of all, by focusing tourism on the natural physical and biological attractions of the area, as well as the traditional cultural practices of the local inhabitants, and by making the local population the operators and direct beneficiaries of tourism operations, the project will provide local inhabitants with a direct interest in investing in the conservation of the basin’s natural attractions and native culture. For example, tourism walking circuits will be directed towards unique ecosystems and biodiversity found in each ecological zone, while products sold to tourists will consist of traditional goods made from local resources. Because local inhabitants will participate in lodging, guide services, and sales of food, medicines, and handicrafts, a significant portion of the population will see direct link between their own economic livelihoods and the continued conservation of the area’s natural and cultural diversity.
Several examples exist already of the link between tourism and conservation. Based on the visits of tourists in the past few years and an assessment of what is attractive to tourists, inhabitants of the basin have halted the clearance of native cactus stands, undertaken reforestation efforts along tourism circuits, and increased the production of medicinal plants for sale. In addition, local communities have begun working with the National Commission on South American Camelids (CONACS) to place the responsibility for protection of vicuñas under local authority. This activity is seen as a way for local inhabitants to participate in the protection of the vicuña from illegal hunting, and at the same time be able to benefit from the presence of the animal as a tourist attraction and from the sale of its fiber (valued at
US$380 per kilo, as opposed to US$1 per kilo for alpaca).
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Income-generating alternative livelihood activities
Training and education in the principles of integrated ecosystem management
Long-term strategies for integrated ecosystem management
ANNEX 5: CONCEPTUAL MODEL FOR INTEGRATED MANAGEMENT
OF THE ECOSYSTEMS OF THE COTAHUASI BASIN
INTERVENTIONS
Biodiversity protected and sustainably managed in priority areas
UNDERLYING CONSTRAINTS
Insufficient information on the potential of the biodiversity and other natural resources
Undifferentiated use of ecological zones fails to protect natural resources
Insufficient knowledge on the conservation and management of the biodiversity
Low understanding of ecosystem interactions or existence of biodiversity hotspots
Current activities adapted to sustainable mngmt. of natural resources Technical capacity inadequate for sustainable mngmt of natural resources
Poor dissemination of techniques for the sustainable use of natural resources
Economic isolation of the basin
Limited access to alternative livelihood opportunities
Limited markets and processing capacity for traditional ag. varieties
Organizations for control and mngmt. of natural resources are weak
Scant coordination between development insts., population and authorities
Long-term sustainable mngmt. still not widely taken into account
Current public funding strategies deal only with the short term
Livelihood options restricted to agric. & grazing
Poor knowledge of sust. options for livelihoods
Higher returns for modern agric. varieties
Declining knowledge and appreciation of traditional ag. variety
Ignorance of env. laws and illegal activities
Public institutions promote nonsustainable activities
Long-term sustainable development plans with weak capabilities
Funding uncoordinated, concentrated in easily
58 accessible settlements
IMMEDIATE THREATS
Loss of vegetative cover
(burning, overgrazing, clearing for agriculture, cutting and felling for firewood, fodder)
Infrastructure creation without env. impact assessment produces fragmentation and deterioration of habitats
Poor management of water resources / soil degradation
Terrace destruction to facilitate cattle raising
Start of investment in medium-scale mining
Heavy reliance on natural resources for livelihoods
Small-scale mining activities by local inhabitants
Introduction of exotic species and varieties
Promotion of the use of agro-chemicals
Development insts. with limited interest in sustainability
Activities/investments for management of natural resources are concentrated
ESSENCE OF THE PROBLEM
Reduction in number or size and deterioration of habitats
Unsustainable management of natural resources
Use of inappropriate technology / abandonment of traditional crops and practices
Interventions and economic activities fail to consider system-wide management or longterm sustainability
Loss of biodiversity in the Cotahuasi
Basin
Degradation of land and water resources in the
Cotahuasi Basin

ANNEX 6: LOGICAL FRAMEWORK MATRIX
Integrated Ecosystem Management in the Cotahuasi Basin
Expected Outcomes and Activities
PROJECT LONG-TERM OBJECTIVE
Conservation of globally significant biological diversity and prevention and reversal of land degradation within the Cotahuasi basin.
Objectively Verifiable Indicators
PROJECT IMMEDIATE OBJECTIVE
By the end of the project, an integrated ecosystem management system will be in operation, created, managed and supported by local communities. This system will direct the conservation and sustainable use of biodiversity and other natural resources, reduce land degradation and desertification, and control mining, tourism and other economic activities in the project area.
OUTCOME 1: GLOBALLY SIGNIFICANT
BIODIVERSITY PROTECTED IN NEW
PRIORITY CONSERVATION AREAS AND
SUSTAINABLY MANAGED IN THE REST OF
THE COTAHUASI RIVER BASIN
1.1 Prepare studies, evaluations and inventories of the different ecological zones in the basin in order to establish priorities in the management and protection of fragile ecosystems, including (i) differentiation of ecological zones; (ii) analysis of ecological interrelations and threat impacts within and between ecological zones; (iii) measures to protect biodiversity and conserve soil and water in the priority conservation
By Project end,
The 474,600 hectares of the Cotahuasi Basin have increased protection from land degradation and threats to biodiversity as part of a legally established
Protected Natural Area (Landscape Reserve) by the end of year 2
Local and national government institutions active in resource management and rural development within the Cotahuasi Basin have increased capacities in integrated ecosystem management and are applying them throughout the 9 districts of the basin by the end of project
Area of priority conservation areas for the protection of biodiversity within the Cotahuasi basin have increased from 0 hectares at project start to no less than 50,000 hectares by the end of year 2
At the end of the project, local populations of critical indicator species (identified in Annex 2) in priority areas have remained constant or increased compared to project start levels
By the end of year 2, a plan that establishes priority conservation areas is completed and applied, and boundaries have been recognized and demarcated
By the end of year 2, zones for sustainable management of biodiversity are identified and differentiated
By the end of year 2, guidelines, rules, and mechanisms for cooperation for conservation of
Source of Verification
Legal documents establishing the
Landscape Reserve
Official establishment of priority conservation areas
Annual reports from the microgenetic centers
Master Plan for
Management of the
ANPCRC
Ecosystem conservation plans
Conservation guidelines and rules
Work reports
Assumptions
National, regional, and local governments maintain support for biodiversity conservation in the
Cotahuasi river basin
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Expected Outcomes and Activities areas in accordance with the law on Protected Natural
Areas (specific plans and programs for managing fragile and prioritized ecosystems); (iv) frameworks for cooperation and participation in each of the zones; (v) systems to produce maps and documents on soil utilization, ecological services, agriculture, farming activities, forestry, wildlife management, and ecotourism.
1.2 Carry out studies and disseminate information on social conditions (social organization, landholding, socio-political and environmental conflicts, and gender issues), existing policies, laws and regulations concerning resource ownership and management, and the rights and responsibilities of the local populations and various institutions.
1.3 Formally establish a Protected Natural Area
(Landscape Reserve) for the entire Cotahuasi basin.
Objectively Verifiable Indicators biodiversity, soil and water are developed and applied throughout the basin
By the end of year 2, maps and reports on ecosystem functioning and characteristics produced and used by managers
At the end of the project, 6 studies on social and economic conditions have been completed
At the end of the project, 15 reports on social and economic conditions have been produced and disseminated
OUTCOME 2: NATURAL RESOURCES
SUSTAINABLY AND PRODUCTIVELY
MANAGED UNDER INTEGRATED ECOSYSTEM
MANAGEMENT SYSTEM
-
Source of Verification
Published inventories of flora, fauna, and phytogenetic resources for food and agriculture
Published studies
Published reports
-
-
By the end of the project, the ANPCRC is legally established
By the end of the project, a 5-year management plan for the basin has been produced
Long-term integrated ecosystem management plans developed and operationalized for the 474,600 hectares of the basin by the end of project
By the end of the project, a reduction in soil erosion on 82,000 hectares in the Very High Altitude Pasture
Zone of 30% from current levels (baseline to be determined during year 1 of the project)
By the end of the project, a 50% reduction in the current rate of deforestation (baseline to be determined during year 1 of the project) in forest areas located within the priority conservation zones of the Cotahuasi basin Landscape Reserve”.
Land area within the Cotahuasi basin benefiting from targeted restoration activities increases from
100 hectares at start of project to 970 hectares by the
Legal documents establishing the
ANPCRC
Meeting minutes of
ANPCRC authority
Management plan document
Management plan
Annual reports
Environmental monitoring technical reports
Assumptions
Participation of
ANPCRC in the
National System of
Protected Areas
Continued demand in the international market for organic products and services
Local population maintains or increases its interest in organizing and managing resources
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Expected Outcomes and Activities
2.1 Develop and implement management plans for the ecosystems of the Cotahuasi basin, based on the diverse ecological zones identified, and compatible with conservation and economic development. Plans will include: (i) protection zones for conservation of biodiversity; (ii) reforestation zones in which native species are sustainably used to provide fodder, wood for burning and other domestic uses, to protect the slopes and conserve the soil, regenerate degraded soils, and recover priority habitats and ecosystems; (iii) sustainable agricultural management systems which avoid soil and water degradation; (iv) grazing systems which take into account the carrying capacity of existing pastures and regenerate degraded pastures; (v) environmental management programs for the handling of urban wastes and the prevention of, or defense from, natural disasters.
2.2 Reinforce the policy/legal/institutional framework that will support integrated ecosystem management implementation by: (i) coordinating and promoting
Objectively Verifiable Indicators end of project (total increase of 870 hectares):
70 hectares restored as native forest ecosystems, with a focus on native species of value for fodder and firewood and for soil conservation and regeneration
By the end of project, 100% elimination of the use of non-organic fertilizers on 400 hectares under sustainable agricultural management
By the end of project, improved pasture management techniques (grazing rotation, increased fodder production) have eliminated soil erosion on 400 hectares of pasture land
Training and capacity strengthening so that at least
100 local officials, 200 community leaders, and 75 government officials and NGO representatives are implementing integrated management of the basin's ecosystems completed by the end of project
By the end of the project, integrated land use planning is being applied throughout the basin
By the end of the project, 16 localities within the basin participate in implementation of conservation zones to conserve biodiversity
By the end of the project, 28 localities within the basin implementing native species reforestation programs, with 70 hectares of reforested land established
By the end of the project, at least 30 localities within the basin have developed and implemented sustainable agriculture management plans, with 400 hectares of land under management
By the end of the project, at least 16 localities participate in pasture management systems, with
400 hectares of land under management
By the end of the project, at least 18 localities participate in urban management programs
By the end of year 2 of the project, memoranda of understanding have been signed with resource management agencies responsible for mining,
Source of Verification
Annual Reports
Agreement documents
Planning documents
Signed memoranda of understanding
Legal documents
Assumptions
Cooperation of existing resource management and
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Expected Outcomes and Activities policy reforms with agencies responsible for resource management and the prevention of destructive economic activities (e.g., mining pollution, indiscriminate use of pesticides and herbicides, uncontrolled tourism); (ii) coordinating and promoting policy reforms with economic and social development agencies, in order to orient these agencies toward conservation and the use of traditional knowledge of ecological processes; and (iii) if necessary, supporting the creation of new institutions
(for example, a basin-level scientific/technical office).
2.3 Implement training programs for local authorities, government officials, non-governmental organizations, and community leaders, on the implementation of programs and activities at the level of district and province level planning, for the conservation and sustainable use of biodiversity and soil and water resources, the creation of a Protected Natural Area, and the supervision, implementation, and monitoring of ecosystem management plans. Among other institutions, the Provincial Cooperation Council, and the Provincial
Working Groups on Farming Aspects, Natural Resources and the Environment, and Tourism and Cultural
Heritage, will receive training on technical and policy affairs and enhanced community participation in the planning process.
2.4 Develop an information management and dissemination system to support ecosystem management planning and sharing of lessons learned at the regional, national, and international levels.
Objectively Verifiable Indicators agriculture, and tourism development
By the end of year 2 of the project, memoranda of understanding have been signed with economic and social development agencies
By the end of project, a scientific/technical office and other required new institutions have been established
By the end of project, 100 local officials from 9 districts within the basin have participated in training and capacity building programs
By the end of project, 75 government officials and
NGO representatives working within the basin have participated in training and capacity building programs
By the end of project, 200 community leaders within the basin have participated in training and capacity building programs
OUTCOME 3: LOCAL POPULATIONS
BENEFITING FROM INCREASED INCOMES
DERIVED FROM ALTERNATIVE LIVELIHOODS
BASED ON SUSTAINABLE NATURAL
RESOURCE USE
-
Source of Verification establishing new institutions
Training and capacity building plan
Training course reports
Attendees reports
By the end of year 1, a system for management and dissemination of information is in place
During each year of the project, a national/international event to share lessons learned from the project is carried out
Increased organic agricultural production on 400 hectares, certified according to European Union
Regulation 2092/91, and marketed within Peru and internationally
Number of varieties of native crops widely cultivated by local inhabitants increases from 3 at start of project to 8 by end of project
By the end of project, 400 new producers in organic
Activity updates
Event reports
Commercial agriculture campaign reports
Lodging and visitor registrations
Income studies
Assumptions social/economic development agencies
Continued demand in the international market for organic products and services
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Expected Outcomes and Activities
3.1 Demonstration projects for local farmers for the production of organic crops and medicinal and aromatic herbs with long-term economic viability. This activity will also include identification of native varieties of cultivated plants with potential economic uses, increases in their cultivation, and support for their processing and marketing.
3.2 Strategically planned and economically viable ecotourism, including: awareness raising among local authorities, population and businesses; training of guides; promotion and marketing; development of infrastructure (environmental interpretation center, improvement of tourist lodges and camping sites); creation of interpretative walking routes; and the creation of mechanisms for the fair distribution of incomes among the local population.
Objectively Verifiable Indicators agriculture production have increased their incomes by an average of US$350/year and 300 new producers in medicinal/aromatic plant production have increased their incomes by an average of
US$400/year, as compared to project start
Increased income from demonstration ecotourism lodges and associated services in 9 pilot communities is generating $1.5 million in annual revenues for local inhabitants by project end
By the end of project, organic agriculture production demonstration centers are operating in
18 localities
By the end of project, 400 new producers are participating in organic agriculture production
Increased organic agricultural production and agroindustrial production, marketed within Peru and internationally
By the end of project, medicinal/aromatic plant production demonstration centers are operating in
14 localities
By the end of project, 300 new producers are participating in medicinal/aromatic plant production
By the end of project, markets have been developed for medicinal and aromatic plants within Peru and internationally
By the end of year 2, a participative sustainable tourism plan for the entire basin is finalized and under operation
By the end of year 2, a Sustainable Tourism
Council is operating
By the end of project, inhabitants in 12 localities have established tourism lodges
By the end of project, surveys of local inhabitants show increased support for conservation based on benefits of ecotourism
By the end of project, visitation is showing a steady upward trend, with evidence of sound visitor
Technical registries of native crop and herb production
Monitoring reports on basin-wide sales of native crops and herbs
-
Source of Verification
Tourism plan document and implementation reports
Council meeting minutes
Survey of tourism lodges
Survey of local attitudes
Assumptions
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Expected Outcomes and Activities
3.3 Development and strengthening of micro-credit facilities to support alternative livelihood activities, including the existing Peru-Canada Equivalence Fund and regional credit agencies.
OUTCOME 4: LOCAL PEOPLE AND
AUTHORITIES AWARE OF LINKS BETWEEN
RESOURCE USE AND DEGRADATION, AND
TRAINED IN AND SUPPORTIVE OF
INTEGRATED MANAGEMENT OF THE BASIN’S
ECOSYSTEMS
4.1 Technical training for local leaders and resource users in 18 localities (2 in each district of the project area), on environmental/social impact assessment and productive resource use strategies and techniques that protect and sustainably utilize biodiversity and soil and water resources.
4.2 Training and outreach for selected farmers engaged in (i) the adoption of economically viable production systems that promote conservation and recovery of vegetation; and (ii) the protection and sustainable use of biodiversity, including in-situ management of agrobiodiversity and local production and planting of seedlings of native species for reforestation.
Objectively Verifiable Indicators management (lack of litter, damage, etc.)
By the end of project, 30 localities are operating programs of promotion and support for access to micro-credit for organic producers eco-businesses in the basin
800 local inhabitants in 18 pilot communities trained in and applying eco-business strategies by the end of project, resulting in the establishment of at least 30 small organic agricultural processing centers and 120 businesses linked to ecotourism
500 farmers in 18 pilot communities trained in and applying sustainable land management on no less than 800 hectares by end of project (as detailed under Outcome 2)
100 local leaders in 18 pilot communities trained in and applying sustainable resource use strategies by the end of project
70% of the population of the basin have received and are applying education and training on the integration of economic activities and conservation objectives by the end of project
By the end of project, at least 100 local leaders from at least 18 localities trained in promotion of productive activities based on sustainable resource use
By the end of project, 800 small business operators from 18 localities trained in technological and service issues for management of eco-businesses
By the end of project, at least 500 farmers from at least 18 localities are implementing sustainable agriculture and grazing systems
Micro-credit program reports
-
-
Operational reports of the Provincial
Cooperation Committee and District
Development Councils
Interviews with local population
Environmental field
-
-
Source of Verification reports
Curricula of the
Education Centers of the
Provincial Education
Service
Training seminar minutes
Monitoring reports from capacity building program
Lists of participants
Technical reports
Monitoring reports for sustainable agriculture program
Assumptions
Country wide political conditions continue to promote interinstitutional coordinated action
Government of Peru continues to support rural education
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Expected Outcomes and Activities
4.3 Educate local inhabitants on the importance of integrating economic activities, including agriculture, grazing, tourism, and mining, within the framework of conservation and sustainable use of biodiversity and natural resources.
OUTCOME 5: PHYSICAL INFRASTRUCTURE IN
PLACE TO SUPPORT INTEGRATED
ECOSYSTEM MANAGEMENT OF THE
COTAHUASI BASIN
5.1 Carry out a program of building and improvement of the infrastructure for water resource management, to support efficient use of land for agriculture and reforestation and to support conservation of biodiversity.
Objectively Verifiable Indicators
By the end of project, 70% of the population of the basin have received education and training on the integration of economic activities and conservation objectives
By the end of project, public opinion surveys show marked increase in support for conservation compared to start of project
Investments in water catchment and irrigation systems benefiting no less than 400 organic agriculture producers by the end of project
Investments in market access mechanisms (roads, communications) benefiting no less than 120 ecotourism related businesses and 30 organic agricultural processing centers by the end of project
By year 2 of project, irrigation infrastructure improvement program is benefiting sustainable agriculture, reforestation, and biodiversity conservation activities
Source of Verification
Reports on public education events/forums
Interviews with local population
Monitoring surveys of infrastructure projects
Formal agreements
Work reports
Work reports
5.2 Development of road, electrical and telecommunications infrastructures, with the participation of the local authorities and national government agencies, taking into account environmental impacts and the needs and priorities of sustainable economic programs in the basin (infrastructure to support organic farming and the development of ecotourism).
By the end of project, road, electrical and telecommunications infrastructure improvements are benefiting organic farmers, tourism development, and other sustainable economic programs within the basin
Work reports
Assumptions
Country wide political conditions continue to promote interinstitutional coordinated action
Cooperation of infrastructure development agencies in supporting sustainable development activities
Cooperation of infrastructure development agencies in supporting sustainable development activities
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ANNEX 7: DETAILED MONITORING AND EVALUATION PLAN
Project monitoring and evaluation will be conducted in accordance with established UNDP and GEF procedures and will be provided by the project team and the UNDP Country Office (UNDP-CO) with support from UNDP/GEF. The Logical Framework Matrix in Annex 6 provides performance and impact indicators for project implementation along with their corresponding means of verification . These will form the basis on which the project's Monitoring and Evaluation system will be built.
The following sections outline the principle components of the Monitoring and Evaluation Plan and indicative cost estimates related to M&E activities. The project's Monitoring and Evaluation Plan will be presented and finalized at the Project's Inception Workshop following a collective fine-tuning of indicators, means of verification, and the full definition of project staff M&E responsibilities.
1. M ONITORING AND R EPORTING
1.1. Project Inception Phase
A Project Inception Workshop will be conducted with the full project team, relevant government counterparts, co-financing partners, the UNDP-CO and representation from the UNDP-GEF Regional
Coordinating Unit, as well as UNDP-GEF (HQs) as appropriate.
A fundamental objective of this Inception Workshop will be to assist the project team to finalize preparation of the project's first annual workplan on the basis of the project's logframe matrix. This will include reviewing the logframe (indicators, means of verification, assumptions), imparting additional detail as needed, and on the basis of this exercise, finalizing the Annual Workplan with precise and measurable performance indicators, and in a manner consistent with the expected outcomes for the project.
Additionally, the purpose and objective of the Inception Workshop (IW) will be to: (i) introduce project staff with the UNDP-GEF expanded team which will support the project during its implementation, namely the CO and responsible Regional Coordinating Unit staff; (ii) detail the roles, support services and complementary responsibilities of UNDP-CO and RCU staff vis a vis the project team; (iii) provide a detailed overview of UNDP-GEF reporting and monitoring and evaluation (M&E) requirements, with particular emphasis on the annual Project Implementation Reviews (PIRs) and related documentation, the
Annual Project Report (APR), Tripartite Review Meetings, as well as mid-term and final evaluations.
Equally, the IW will provide an opportunity to inform the project team on UNDP project related budgetary planning, budget reviews, and mandatory budget rephasings.
The IW will also provide an opportunity for all parties to understand their roles, functions, and responsibilities within the project's decision-making structures, including reporting and communication lines, and conflict resolution mechanisms. The Terms of Reference for project staff and decision-making structures will be discussed again, as needed, in order to clarify for all the responsibilities of each party during the project's implementation phase.
1.2. Monitoring responsibilities and events
A detailed schedule of project reviews meetings will be developed by the project management, in consultation with project implementation partners and stakeholder representatives and incorporated in the
Project Inception Report. Such a schedule will include: (i) tentative time frames for Tripartite Reviews,
Steering Committee Meetings, (or relevant advisory and/or coordination mechanisms) and (ii) project related
Monitoring and Evaluation activities.
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Day to day monitoring of implementation progress will be the responsibility of the Project Coordinator,
Director or CTA (depending on the established project structure) based on the project's Annual Workplan and its indicators. The Project Team will inform the UNDP-CO of any delays or difficulties faced during implementation so that the appropriate support or corrective measures can be adopted in a timely and remedial fashion.
The Project Coordinator and the Project GEF Technical Advisor will fine-tune the progress and performance/impact indicators of the project in consultation with the full project team at the Inception
Workshop with support from UNDP-CO and assisted by the UNDP-GEF Regional Coordinating Unit.
Specific targets for the first year implementation progress indicators together with their means of verification will be developed at this Workshop. These will be used to assess whether implementation is proceeding at the intended pace and in the right direction and will form part of the Annual Workplan. The local implementing agencies will also take part in the Inception Workshop in which a common vision of overall project goals will be established. Targets and indicators for subsequent years would be defined annually as part of the internal evaluation and planning processes undertaken by the project team.
Measurement of impact indicators related to global benefits will occur according to the schedules defined in the Inception Workshop and tentatively outlined in the indicative Impact Measurement Template at the end of this Annex.
Periodic monitoring of implementation progress will be undertaken by the UNDP-CO through quarterly meetings with the project proponent, or more frequently as deemed necessary. This will allow parties to take stock and to troubleshoot any problems pertaining to the project in a timely fashion to ensure smooth implementation of project activities. Field visits by the CO will also be realized on a regular basis based on an agreed upon scheduled to be detailed in the project's Annual Workplan. The CO will be responsible for preparing reports on mission findings and identify any support requirements. Findings and recommendations for action or support will be communicated to the UNDP GEF Regional Coordinating
Unit in a timely manner so that the appropriate actions can be delivered in support to the project.
Annual Monitoring will occur through the Tripartite Review (TPR). This is the highest policy-level meeting of the parties directly involved in the implementation of the project. The project will be subject to
Tripartite Review (TPR) at least once every year by the GoP (Agencia Peruana de Cooperacion
Internacional), the executing agency (AEDES), and UNDP, the first such meeting will be held within the first twelve months of the start of full implementation. The project proponent will prepare an Annual
Project Report (APR) and submit it to UNDP-CO and the UNDP-GEF regional office at least two weeks prior to the TPR for review and comments.
The APR will be used as one of the basic documents for discussions in the TPR meeting. The project proponent will present the APR to the TPR, highlighting policy issues and recommendations for the decision of the TPR participants. The project proponent also informs the participants of any agreement reached by stakeholders during the APR preparation on how to resolve operational issues. Separate reviews of each project component may also be conducted if necessary.
Terminal Tripartite Review (TTR)
The terminal tripartite review is held in the last month of project operations. The project proponent is responsible for preparing the Terminal Report and submitting it to UNDP-CO and LAC-GEF's Regional
Coordinating Unit. It shall be prepared in draft at least two months in advance of the TTR in order to allow review, and will serve as the basis for discussions in the TTR. The terminal tripartite review considers the implementation of the project as a whole, paying particular attention to whether the project has achieved its stated objectives and contributed to the broader environmental objective. It decides whether any actions are still necessary, particularly in relation to sustainability of project results, and acts
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as a vehicle through which lessons learnt can be captured to feed into other projects under implementation of formulation.
1.3. Project Monitoring Reporting
The Project Coordinator in conjunction with the extended project team (Regional Coordination and
Implementing Agencies) will be responsible for the preparation and submission of the following reports that form part of the monitoring process. Items (a) through (f) are mandatory and strictly related to monitoring, while (g) through (h) have a broader function and the frequency and nature is project specific to be defined throughout implementation.
(a) Inception Report (IR)
A Project Inception Report will be prepared immediately following the Inception Workshop. It will include a detailed Annual Workplan divided in quarterly time frames detailing the activities and progress indicators that will guide implementation during the first year of the project. This workplan would include the dates of specific field visits, support missions from the UNDP-CO or the Regional Coordinating Unit
(RCU) or consultants, as well as time-frames for meetings of the project's decision making structures.
The Report will also include the detailed project budget for the first full year of implementation, prepared on the basis of the Annual Workplan, and including any monitoring and evaluation requirements to effectively measure project performance during the targeted 12 months time-frame.
The Inception Report will include a more detailed narrative on the institutional roles, responsibilities, coordinating actions and feedback mechanisms of project related partners. In addition, a section will be included on progress to date on project establishment and start-up activities and an update of any changed external conditions that may effect project implementation.
When finalized the report will be circulated to project counterparts who will be given a period of one calendar month in which to respond with comments or queries. Prior to this circulation of the IR, the
UNDP Country Office and UNDP-GEF’s Regional Coordinating Unit will review the document.
(b) Annual Project Report (APR)
The APR is a UNDP requirement and part of UNDP’s Country Office central oversight, monitoring and project management. It is a self -assessment report by project management to the CO and provides input to the country office reporting process and the ROAR, as well as forming a key input to the Tripartite
Project Review. APRs will be prepared on an annual basis prior to the Tripartite Project Review, to reflect progress achieved in meeting the project's Annual Workplan and assess performance of the project in contributing to intended outcomes through outputs and partnership work.
The format of the APR is flexible but should include the following:

An analysis of project performance over the reporting period, including outputs produced and, where possible, information on the status of the outcome

The constraints experienced in the progress towards results and the reasons for these

The three (at most) major constraints to achievement of results

Lessons learned

Clear recommendations for future orientation in addressing key problems in lack of progress
(c) Project Implementation Review (PIR)
A major tool for monitoring the GEF portfolio and extracting lessons is the annual GEF Project
Implementation Review (PIR). The PIR is an annual monitoring process mandated by the GEF and has become an essential management and monitoring tool for project managers and offers the main vehicle
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for extracting lessons from ongoing projects. Once the project has been under implementation for a year, a Project Implementation Report must be completed by the CO together with the project and presented annually by the end of June of that year. The GEF M&E Unit provides the scope and content of the PIR.
The format is defined by UNDP/GEF. Subsequent years might incorporate changes.
(d) Quarterly Progress Reports
Short reports of one hundred words maximum outlining main updates in project progress will be provided quarterly to the local UNDP Country Office and the UNDP-GEF regional office in Mexico by the project team .
(e) Periodic Status Reports
As and when called for by UNDP, the project team will prepare Status Reports, focusing on specific issues or areas of activity as stipulated by UNDP. The request for a Status Report will be provided to the project team in written form by UNDP and will clearly state the issue or activities that need to be reported on. These reports can be used as a form of specific oversight in key areas, or as troubleshooting exercises to evaluate and overcome obstacles and difficulties encountered. UNDP is requested to minimize its requests for Status Reports, and when such are necessary will allow reasonable timeframes for their preparation by the project team.
(f) Project Terminal Report
During the last three months of the project the project team will prepare the Project Terminal Report.
This comprehensive report will summarize all activities, achievements and outputs of the Project, lessons learnt, objectives met, or not achieved, structures and systems implemented, etc. and will be the definitive statement of the Project’s activities during its lifetime. It will also lay out recommendations for any further steps that may need to be taken to ensure sustainability and replicability of the Project’s activities.
(g) Technical Reports (project specific- optional)
Technical Reports are detailed documents covering specific areas of analysis or scientific specializations within the overall project. As part of the Inception Report, the project team will prepare a draft Reports
List, detailing the technical reports that are expected to be prepared on key areas of activity during the course of the Project, and tentative due dates. Where necessary this Reports List will be revised and updated, and included in subsequent APRs. Technical Reports may also be prepared by external consultants and should be comprehensive, specialized analyses of clearly defined areas of research within the framework of the project and its sites. These technical reports will represent, as appropriate, the project's substantive contribution to specific areas, and will be used in efforts to disseminate relevant information and best practices at local, national and international levels.
(h) Project Publications (project specific- optional)
Project Publications will form a key method of crystallizing and disseminating the results and achievements of the Project. These publications may be scientific or informational texts on the activities and achievements of the Project, in the form of journal articles, multimedia publications, etc. These publications can be based on Technical Reports, depending upon the relevance, scientific worth, etc. of these Reports, or may be summaries or compilations of a series of Technical Reports and other research.
The project team will determine if any of the Technical Reports merit formal publication, and will also (in consultation with UNDP, the government and other relevant stakeholder groups) plan and produce these
Publications in a consistent and recognizable format. Project resources will need to be defined and allocated for these activities as appropriate and in a manner commensurate with the project's budget.
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2.
(i)
E VALUATION
The project will be subjected to at least two independent external evaluations as follows:
Mid-term Evaluation
An independent Mid-Term Evaluation will be undertaken at the end of the second year of implementation. The Mid-Term Evaluation will determine progress being made towards the achievement of outcomes and will identify course correction if needed. It will focus on the effectiveness, efficiency and timeliness of project implementation; will highlight issues requiring decisions and actions; and will present initial lessons learned about project design, implementation and management. Findings of this review will be incorporated as recommendations for enhanced implementation during the final half of the project’s term. The organization, terms of reference and timing of the mid-term evaluation will be decided after consultation between the parties to the project document. The Terms of Reference for this
Mid-term evaluation will be prepared by the UNDP CO based on guidance from the Regional
Coordinating Unit and UNDP-GEF.
(ii) Final Evaluation
An independent Final Evaluation will take place three months prior to the terminal tripartite review meeting, and will focus on the same issues as the mid-term evaluation. The final evaluation will also look at impact and sustainability of results, including the contribution to capacity development and the achievement of global environmental goals. The Final Evaluation should also provide recommendations for follow-up activities. The Terms of Reference for this evaluation will be prepared by the UNDP CO based on guidance from the Regional Coordinating Unit and UNDP-GEF.
3.
L EARNING AND K NOWLEDGE S HARING
Results from the project will be disseminated within and beyond the project intervention zone through a number of existing information sharing networks and forums. In addition:

The project will participate, as relevant and appropriate, in UNDP/GEF sponsored networks, organized for Senior Personnel working on projects that share common characteristics. UNDP/GEF shall establish a number of networks, such as Integrated Ecosystem Management, eco-tourism, comanagement, etc, that will largely function on the basis of an electronic platform.
The project will identify and participate, as relevant and appropriate, in scientific, policy-based and/or any other networks, which may be of benefit to project implementation though lessons learned.

The project will identify, analyze, and share lessons learned that might be beneficial in the design and implementation of similar future projects. Identify and analyzing lessons learned is an on- going process, and the need to communicate such lessons as one of the project's central contributions is a requirement to be delivered not less frequently than once every 12 months. UNDP/GEF shall provide a format and assist the project team in categorizing, documenting and reporting on lessons learned. To this end a percentage of project resources will need to be allocated for these activities.
4.
I NDICATIVE M ONITORING AND E VALUATION W ORKPLAN AND CORRESPONDING B UDGET
Type of M&E activity
Responsible Parties Budget US$
Excluding project team
Staff time
Time frame
Inception Workshop

Project Coordinator

UNDP CO
Within first two months of project
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Inception Report
Measurement of Means of Verification for
Project Purpose
Indicators
Measurement of Means of Verification for
Project Progress and
Performance ( measured on an annual basis )
APR and PIR
TPR and TPR report
Steering Committee
Meetings
Periodic status reports
Technical reports
Mid-term External
Evaluation
Final External
Evaluation
Terminal Report
Lessons learned
Audit
Visits to field sites

UNDP GEF

Project Team

UNDP CO

Project Coordinator will oversee the hiring of specific studies and institutions, and delegate responsibilities to relevant team members

Oversight by Project GEF
Technical Advisor and Project
Coordinator

Measurements by regional field officers and local IAs

Project Team

UNDP-CO

UNDP-GEF

Government Counterparts

UNDP CO

Project team

UNDP-GEF Regional
Coordinating Unit

Project Coordinator

UNDP CO
None
To be finalized in
Inception Phase and
Workshop.
To be determined as part of the Annual Workplan's preparation 1
None
None
None start up
Immediately following IW
Start, mid and end of project
Annually prior to
APR/PIR and to the definition of annual work plans
Annually
Every year, upon receipt of APR



Project team
Project team
Hired consultants as needed
5,000
15,000
20,000
Following Project
IW and subsequently at least once a year
To be determined by
Project team and
UNDP CO
To be determined by
Project Team and
UNDP-CO
At the mid-point of project implementation.

Project team

UNDP- CO

UNDP-GEF Regional
Coordinating Unit

External Consultants (i.e. evaluation team)

Project team,

UNDP-CO

UNDP-GEF Regional
Coordinating Unit

External Consultants (i.e. evaluation team)

Project team

UNDP-Peru

External Consultant

Project team

UNDP-GEF Regional
Coordinating Unit (suggested formats for documenting best practices, etc)

UNDP-Peru

Project team

UNDP Country Office

UNDP-GEF Regional
Coordinating Unit (as appropriate)
30,000
None
9,000 (average 3,000 per year)
3,000 (average $1000 per year)
Costs not paid out of project budget
At the end of project implementation
At least one month before the end of the project
Yearly
Yearly
Yearly
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TOTAL INDICATIVE COST
Excluding project team staff time and UNDP staff and travel expenses
Number hectares under protection
US$82,000
(Each Annual Workplan will contain progress indicators that will need to be verified. In many cases this includes an M&E cost which needs to be factored into the project's M&E budget. The Inception
Workshop will identify some of these indicators as part of the support provided in the Annual Workplan's preparation, hence the resource allocation remains notional at this stage).
5. I NDICATIVE I MPACT M EASUREMENT T EMPLATE
Indicators will be drawn from the Logframe Matrix and are related to the measurement of global benefits achieved by the project rather than project implementation progress. They will be fine tuned and detailed in the Inception Workshop. The table below is an example.
Key Impact
Indicator
Target
(Year 4)
Means of
Verification
Sampling frequenc y
Location xxxx forest cover in 86,289 km 2 has not decreased since project start
Start, mid, end
All PAs
Km2 of stable xxx forest cover
% decrease in energy derived from unmanaged forest xx Hectares of xxx forest under sustainable wood production
The percentage of the energy derived from unmanaged Caatinga forest in areas covering
86,289 km2 of the biome has been reduced 25%
3,143 km2 of xxxx forest are under sustainable wood production
Satellite imagery
Survey of forest product consumption
Register of sustainable production plans
Start, mid, end
Start, mid, end
All PAs xxxxx
Populations of
Indicator species
An additional 7,000 hectares of xxx have been placed under protection in Private Reserves and
Biological Reserves
Populations of fauna indicator species in corridors remain stable or have increased. These species will be selected during the inception phase
Reports
Fauna inventories
Annually
Start, mid, end xxxxxx xxxxx
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ANNEX 8: LETTERS OF ENDORSEMENT
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Annex 10: Replicability
Regarding project strategies and models for organic agriculture and for the rehabilitation of soils, pastures and woodlands, with the participation of the local population, replication is envisaged in four Highland provinces of the Arequipa Region, in coordination with the Arequipa Regional
Government and the Arequipa Regional Environment Commission. As noted in paragraph 71 of the MSP Brief, the mayors of towns within the project intervention zone already have established information sharing linkages, such as roundtable meetings and exchanges of field visits, with their counterparts from other provinces in the Arequipa region. These strategies also can be replicated in the regions contiguous to the Cotahuasi Basin (Ayacucho, Apurímac and Cuzco), as well as in areas with similar ecological, socio-economic and cultural conditions in Bolivia. The project proponents’ ongoing relationship with the Association of Peruvian Town Councils
(AMPE) also will facilitate wider replication of these activities.
Regarding the project's strategies for biodiversity management, including agro-biodiversity, these are expected to have widespread potential for replication in Perú in those areas of the
Western Andes between southern Ica and Tacna. The Cotahuasi project will coordinate lessons learned and strategies for replication on agro-biodiversity issues with the ongoing UNDP-GEF project “In situ conservation of native cultivars and wild relatives”.
As noted in paragraph 71 of the MSP Brief, La Unión province (Cotahuasi basin), together with the province of Condesuyos, constitutes the upper part of the Ocoña River watershed. During the past two years, a strategy has been developed to provide coordinated sustainable management of the environments of the sub-basins. Discussions on organic agricultural production and sustainable environmental management have taken place already between farmers, resource management organizations (Resource Users Board, Commission of Water Users) and women’s organizations in the two provinces. It is planned that outputs from the GEF supported project will constitute one of the primary building blocks for the management strategy for the Ocoña
River watershed, particularly regarding water resources management, reforestation and the recovery of soils.
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Annex 11: Confirmation that no GEF and non-GEF initiatives are currently in implementation with a potential for overlap or duplication
There are no GEF or non-GEF initiatives within the Cotahuasi basin with any potential for overlap or duplication with the proposed project. For the most part, thematically relevant GEF conservation projects (biodiversity, integrated ecosystem management) in Peru are located in the
Amazon basin, very distant from the Cotahuasi basin, which is located on the west facing slopes of the Andes mountains. Whenever feasible and warranted information, exchanges on best practices and lessons learned will be pursued with other GEF financed initiatives, as with the ongoing Peru Agrobiodiversity Project (as noted in Annex 10). The GEF Portfolio in Peru includes the following projects.
UNDP-GEF
Conservation and Sustainable Use of Biodiversity in the Amarakaeri Communal Reserve and
Adjoining Indigenous Lands (Amazon basin)
Conservation and Sustainable Use of Biodiversity in the Peruvian Amazon by the Indigenous
Ashaninka Population (Amazon basin)
- Community-based conservation and sustainable use of the Atiquipa and Taimara lomas ecosystems. (coastal desert)
- Regional support for the conservation and sustainable use of Natural Resources in the
Amazon (Amazon basin)
- In situ conservation of native cultivars and wild relatives (Peruvian Andes, but not the
Cotahuasi basin region)
- Conservation of Biodiversity in the Lake Titicaca Basin (Peruvian Andes, but not the
Cotahuasi basin region)
World Bank-GEF
- Peru: Participatory Management of Protected Areas (at sites throughout Peru, but none in region of Cotahuasi basin)
- Biodiversity Conservation through Sustainable Management of the Nanay River Basin
(Amazon basin)
- Peru: Indigenous Management of Protected Areas in the Amazon (Amazon basin)
- Participatory Conservation and Sustainable Development Program with Indigenous
Communities in Vilcabamba (Amazon basin)
76