BLOCK A PDF
PART I - ELIGIBILITY
1. Project name:
Public-Private Mechanisms for Biodiversity
Conservation in the Chilean Valdivian Forest Zone
3. Country or countries in which the project is
being implemented:
Chile
2. GEF Implementing Agency:
The World Bank
4. Country eligibility:
Chile qualifies as an official recipient of GEF funds
having ratified the biodiversity Convention
(September 9, 1994)
6. Operational program/Short-term measure:
Forest ecosystems
5. GEF focal area(s), and/or cross-cutting
issues:
Biodiversity
7. Project linkage to national priorities, action plans, and programs:
The Valdivian temperate forest zone is the number one national priority in biodiversity conservation.
The Environmental Policy for Sustainable Development, prepared by the National Commission for the
Environment (CONAMA) in 1998, recognizes the importance of protected areas as the principal instrument
for the conservation of biodiversity. That environmental policy statement also recognizes the critical need
for articulating public-private cooperation on this issue and stresses the need to develop innovative
mechanisms for environmental management, including market-oriented instruments as incentives for private
sector involvement. At the same time, the National Forest Service (CONAF) – the institution responsible
for biodiversity conservation in Chile through management of the National State Protected Areas System
(SNASPE) – is expanding coverage and increased its budget by 117% between 1992 and 1996. However,
the national scientific community and CONAF have recognized the need to further extend coverage of
SNASPE, placing high priority on the conservation of sites in the Valdivian temperate forest, particularly in
Region X. It is also recognized that the task of achieving an optimal coverage for protected areas (PA) far
exceeds the current financial and management capacity of state entities. Thus, it will be necessary to
develop mechanisms to involve the private sector in bio-diversity conservation, as a complement to the
SNASPE program. Such mechanisms are incorporated in the General Environment Law (Ley 19.300), but
have not been implemented to date. Public-private approaches for biodiversity conservation are also
strongly encouraged in CONAMA´s Environmental Policy statement.
8. GEF national operational focal point and date of country endorsement:
CONAMA. Project endorsed by CONAMA in letter to World Bank dated February 24, 1999.
9. Project rationale and objectives:
The protection of biodiversity in the Valdivian temperate forest ecosystem is a high priority for GEF at the
global level. A World Bank report (Dinerstein et. al., 1995) characterizes the biodiversity of the Valdivian
Temperate Forests as being of outstanding global value and as vulnerable. The ecoregion covers 16.6
million hectares in Regions VIII to XI in Chile and eastern slopes of the Andes in Argentina (37-47ºS). The
SNASPE has significant limitations within the ecoregion where many habitats and species are underrepresented or under threat from logging, grazing and forest fires. The most important area of relatively
intact Valdivian rain forest is located in Region X. This forest is one of five temperate rain forests
remaining in the world. It contains unique flora where 6 out of 11 woody species are classified as
endangered and 10 classified as vulnerable, in addition to several threatened bird and mammal species.
Some 11 percent of the total forest area of Region X (3.6 million ha) is protected under SNASPE. However,
the PAs are concentrated in the Andes, while in the central valley and coastal range - where diversity is
higher but subject to greater human pressure – protection is almost nonexistent. Some estimates suggest that
deforestation in all Chilean temperate forests (which includes the Valdivian forests ecoregion) has been at a
rate of 115.000-120.000 ha. annually over the past decade. Region X contains 14 protected private areas,
most of which are small and highly dispersed, so their contribution to biodiversity conservation is limited.
Moreover, their current status is informal, with no guarantee of sustainability. In 1993, the Chilean scientific
community identified 13 priority sites for protection in Region X, all of which are located on private land.
This project is expected to contribute to strengthening the Chilean PA system, partly through increased
area coverage but mainly through mechanisms for private/public-sector cooperation of a PA system to
preserve Chile’s biological patrimony. This is seen as a dynamic process where emphasis must be placed on
evolving priorities, and the institutional arrangements which enable a viable relationship among the state,
private sector, regional authorities and local communities in priority-setting, and the financing, ownership
and administration of protected areas.
The general goal of the proposed project is to produce validated mechanisms (technical, socio-economic
and institutional) to involve the private sector in PA management in the Valdivian Temperate Rain Forest.
The immediate goals of the project are:
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To develop and test workable mechanisms for involving regional authorities and local communities in
PA management;
To enable financial, technical and administrative participation of the private sector (and other local
actors) in the evolving program to protect the critical priority areas in the ecosystem; and
To establish the technical basis for determining progressive levels of biodiversity preservation in
Region X.
The justification for a GEF mid-sized grant rests on the expectation that the incremental activities will:
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lead to an increased area of protected Valdivian temperate forest through the systematic involvement of
the private sector;
increase the management effectiveness of the regeneration and protection of existing Valdivian forest
areas, as well as for other protected areas in Region X through the application of private sector
initiative and community participation; and
improve the planning, financing, coverage and management of the national system for protection of
biodiversity, including Valdivian temperate forest areas in other regions – notably Regions IX and XI –
through replication and/or modification of the mechanisms tested in Region X.
10. Expected outcomes:
The specific operational output will be a system, tested through pilot demonstration areas (PDAs), whereby
private capital, entrepreneurs and local community initiative are mobilized, together with municipal,
regional and national government entities, in a cooperative effort for planning, managing and financing an
expanded program for protection of biodiversity at the regional level, consistent with national priorities.
The specific in-situ conservation outputs will be the implementation (i.e., formal status will be established,
together with design and execution of management plans, supported by training for public and private
stakeholders) for 3 to 4 PDAs, each covering more than 1,000 hectares on private lands. The global
environmental benefits of the project are expected to come from two project outputs: (i) the preservation of
an endangered and unique ecosystem – the world’s largest remaining temperate forest; and (ii) replicable
mechanisms to involve the private sector (individuals, communities, corporations and NGOs) in
biodiversity conservation.
11. Planned activities to achieve outcomes:
The GEF-funded activities in the project will test the institutional arrangements for obtaining meaningful
private sector participation (economic incentives, coordinating entities, etc.) and effective participation by
regional and local groups in an exercise which has been clearly declared to be a national priority. GEF
support is sought for five activities which will complement on-going efforts by CONAF, NGOs, local
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communities, and the private sector in protecting biodiversity in Region X:
i.
Collaborative mechanisms involving private sector enterprise and capital, local communities,
municipalities, regional government and national state entities (particularly CONAF) will be applied to
design workable programs for planning, financing and managing a region-wide system for biodiversity
protection, consistent with national priorities. This will require: (a) a review of international experience
with such mechanisms, including technical and economic incentives, modification of resource entitlements,
and formal arrangements for participatory decision-making and joint ventures; and (b) participatory design
approaches through workshops, publicity campaigns, and interviews with key stakeholders.
ii.
The selection of collaborative institutional mechanisms and incentive programs for application in the
PDAs. Some examples of the type of institutional mechanisms that may be developed under the project are:
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
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regional committees, composed of representatives from different regional public agencies and NGOs
involved in PA planning and management, as well as landowners
regional associations of private owners of forested areas who would establish a formal agreement with
CONAF for the conservation of their lands
a regional private foundation with an objective of establishing a public-private regional system of
conservation easements in priority areas.
Some examples of the type of incentive programs that would be developed by the project are:
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


a center of technical information for the support of privately managed PAs
training courses for private sector technicians and managers in fields such as ecotourism and
conservation, conservation easements, biodiversity assessment, conservation zoning, conservation
planning and geographic information systems
training courses for private PA wardens or park rangers
financial and legal assistance to private landowners.
iii. Testing the application of collaborative institutional mechanisms and incentive programs in selected
PDAs.
iv.
Monitoring and evaluation of the management and incentive programs, tested in the pilot areas.
v. Preparation of a report evaluating the lessons learned from the trials; this report would contain a
practical guide on the application of these lessons to other regions.
Incremental Cost Analysis : The baseline activities for protection of biodiversity in Region X are
estimated at US$ 1,045,000 over the three-year period 2000-2002. This baseline estimate is the projection
of the conservation programs of the on-going SNASPE in Region X. It represents a forecast of public
expenditures in 10 protected areas within the region. Also included are 14 private PAs in Region X which
currently have no official status. The proposed GEF-supported alternative is expected to convert the public
program – SNASPE – into a public-private PA system. A qualitative and quantitative interpretation of the
expected outputs attributable to the baseline “project” in contrast to the GEF alternative, which is expected
to generate significant private sector inputs, is given in Figure 1. This alternative would cost in the order of
US$ 1,885,000 thus, the incremental cost is approximately US$ 850.000 (See Table Nº1).
12. Stakeholders involved in project:
Aside from CONAMA and CONAF, which are co-sponsors of the project, other participants expected to
collaborate include: local community organizations, municipalities, the regional government, industry
associations such as the Corporación Chilena de la Madera (CORMA), Sociedad Agrícola de Valdivia and
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Sociedad Agrícola de Osorno, NGOs such as Comité Pro Defensa de la Fauna y Flora (CODEFF) and
Fundación Andes, universities and private individuals or corporations with interest in financing and
management of areas for protection of biodiversity.
PART II - INFORMATION ON BLOCK A PDF ACTIVITIES
13. Activities to be financed by the PDF:
Block A funds will help fund the detailed preparation of the first four activities proposed in Section 11
above. Preparation work would include:
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detailed terms of reference (TOR) and work plan
staffing requirements
chronogram of component sub-activities and log frame for project implementation
detailed costing – budget (see Section 16).
definition of procurement arrangements
workshops to discuss the proposal with stakeholders
translation
Specifically, the preparation will include the following 6 tasks:
Task 1: Identification of a set of candidate “pilot areas” from which a limited number would
subsequently be selected for testing mechanisms for public/private collaboration in planning,
financing and managing expanded protection for the Valdivian temperate rain forest. This will
require:
i. a review of materials relevant to resource management in Region X (literature, GIS, statistics, maps,
institutional arrangements for regulation of natural resource use and development, and resource
entitlements);
ii. a review of the priority sites for preservation of biodiversity in Region X proposed by the academic
community (1993 and 1999);
iii. interviews with key specialists and stakeholders interested in resource management issues in the
region;
iv.
identification and evaluation of private protected areas in Region X;
v.
pre-selection of a set of 10-20 priority sites for the implementation of “pilot areas”; and
vi. final selection of 5-6 pilot areas, using predetermined selection criteria. These pilot PAs would
become the focus of the initial stage of the full project aimed at selecting two or three areas where
mechanisms would be put in place and evaluated.
Task 2: Participatory regional system for the planning, management and financing of an expanded
and more efficient PA system. This will include:
i. The preparation of profiles, via a survey, of all the key actors with vested interests in resource
management and, hence, potential participants in the project. For the most part these will be owners of
informal protected areas or those with a potential interest in creating new PAs. A survey will be conducted
to design viable institutional arrangements and incentive mechanisms and to enable effective resource
allocation in the design and implementation of the pilot demonstration experiments. The issues to be studied
by the survey in Region X will be : (i) the extent of the private sector’s motivation to create, manage and
financially support protected areas; (ii) the existing private sector investments in protected areas and other
conservation activities; (iii) the willingness of the private sector to participate in biodiversity conservation
partnerships with public agencies; and (iv) the incentive mechanisms for biodiversity conservation likely to
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best fit the private sector’s interests, institutional culture and management capabilities.
ii. The specification of the terms of reference for testing innovative approaches to obtaining greater
private sector and community involvement in protection of biodiversity. The TOR would include provisions
to test innovative mechanisms such as easements, tradable development rights, preferential tax
arrangements, regulation with or without compensation, ceding of partial rights to resource use, microwatershed agreements, legal guarantees against expropriation, generation and dissemination of information
on options, etc.
iii. The design of a series of stakeholder workshops to explore options and develop the participatory
approaches to mobilize private capital, as a complement to the baseline activity programmed by CONAF
and NGOs. This will involve: individual interviews; convening four or five working groups to develop
proposals; drafting a preliminary agenda; convening a workshop attended by the key participants to review
the agenda; preparation of signed agreements with NGOs, industry associations, municipalities; and
obtaining letters of support (including co-financing) for the proposed project from key stakeholders.
Task 3: Specification of procedures, activities and resource requirements to implement pilot
demonstration areas. This will involve collaboration among the private sector and local communities
(both of which will supply capital and enterprise), together with NGOs and municipal, regional and national
state entities which have on-going baseline activities in the region. This task will be undertaken on
completion of Task 2 in association with the specialist responsible for Task 4. Signed agreements will be
obtained with other entities for execution of the pilot program.
Task 4: Specification of the steps and resource requirements to undertake monitoring and evaluation
(M&E) of the pilot exercises over a two-year period. This activity will be undertaken concurrently with
Task 3 and will require close coordination with the specialists responsible for that task.
Task 5: Specification of the steps and resource requirements to: undertake a final evaluation of the four
main project activities (see Section 11); prepare a draft plan for participatory management and expansion of
protected areas of Region X; carry out a comparative analysis of the pilot area experience; derive lessons
learned; assess options for expanding the project’s experience to other Valdivian temperate forest areas in
Chile; evaluate opportunities and constraints to replication of the project’s experience for planning, design,
financing and management of an expanded national program for protection of biodiversity; and, prepare a
final report, summarizing the above findings. This task will be undertaken on completion of all the above
tasks.
Task 6: Incremental cost analysis: The baseline will be confirmed using secondary data and interviews
with the principal actors expected to influence the “state” of biodiversity in the ensuing three years. This
will include estimates of the status of private reserves as well as CONAF, NGO and other donor activities
within the region. In addition, it will include a description of the institutional arrangements through which
de facto management of biodiversity is currently carried out and the detailed financing plans for CONAF,
NGOs and other relevant entities over the period 2000-2002. The incremental cost analysis will then be
calculated based on a more careful analysis of the incremental inputs and benefits of the GEF alternative.
This will include funding that may be mobilized from the private sector, NGOs or local communities during
project execution.
14. Expected outputs and completion dates:
The overall output will be a detailed proposal for a GEF grant providing complementary support over a
three-year period to on-going protected area programs in Region X. The proposal will include a log frame
for execution of the project. The chronogram of the six tasks is given in Table 2.
15. Other possible contributors/donors and amounts:
CIPMA will provide US $6,000 as operational support. There will be no other cash donations. A number
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of entities will provide limited material or staff inputs to attend meetings or provide information e.g.
CONAF, CONAMA, Universidad Austral, CORMA and CODEFF.
16. Total budget and information on how costs will be met (including Block A grant).
PDF Activities
SOURCE OF FUNDING (US$)
GEF
CIPMA
Total
Identification of candidate
Pilot areas
2,000
500
2,500
Detailed TOR for design
Of management systems
7,700
1,500
9,200
Detailed costing and
procurement procedures
for management of pilot
8,300
1,000
9,300
Detailed costing and
procurement procedures
for M&E
2,000
Work plan and log
Frame for project
implementation
Incremental cost
analysis
Administrative
support
Total
-
2,000
1,500
1,000
2,500
1,500
-
1,500
4,000
3,000
23,000
8,000
30,000
PDF Expenditure Categories
Block A (US$)
Professional staff
15,000
Stakeholder meetings and workshops
Travel and per diem
Total
3,000
5,000
23,000
PART III - INFORMATION ON THE APPLICANT INSTITUTION
17. Name:
18: Date of establishment, membership, and
Centro de Investigación y Planificación del Medio
leadership:
Ambiente (CIPMA) – Center for Environmental
CIPMA was established in February 1979 as a nonResearch and Planning
governmental, non-profit organization. It has a sixmember board of directors, including the president
(Guillermo Geisse) and executive director of the
Center (Nicola Borregaard), all of whom are elected
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by the membership (currently 34). Staff comprises
10 professionals and six administrative support. In
addition, the Center works with about 20 associate
researchers.
20. Sources of revenue:
Annual budget is approximately US $500,000,
derived from national and international
organizations, and private and public corporations.
In 1998 26% of funding was provided as donations
from corporations, 72% comprised grants for
research projects, and 2% came from other sources.
19. Mandate/terms of reference: The mandate
is to:
 Contribute to a national dialogue on
environmental policy integrated with overall
policy for socio-economic development
 Undertake research providing the technical
bases for the above dialogue aimed particularly
at improvement in design and implementation
of policy instruments
 Facilitate interaction among social actors with a
view to clarification of issues and conflict
resolution for improved environmental
management.
21. Recent activities/programs, in particular those relevant to the GEF:
Of the six themes which are the axis of the Center´s 1996-1998 three-year program, three are directly
related to the GEF.
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Public-private collaboration for protection of the environment.
Participation by citizen groups in resolution of environmental conflicts.
Relationships between corporate enterprises and the local community in environmental management.
The remaining three themes have an indirect relationship to the project.
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International trade and environment.
Use of economic instruments in environmental policy.
Quality of life.
The 1997/1998 research program provides an illustration of recent activities (see Table 3).
Project Team:
Nicola Borregaard, environmental economist, supervisor*
Pablo Villarroel, engineer*, co-ordinator
Claudia Sepúlveda, sociologist*
Michael Nelson, resource economist**
Andrés Moreira, geographer**.
Diego García, lawyer**
Juan Armesto, ecologist**
Valeria Torres, social communication**
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* Core team
** Short-term consultants or advisors
Contact person:
Nicola Borregaard
Executive Director
Av. Holanda 1109
Santiago
Tel. 56-2-3341091
Fax 56-2-3341095
e-mail: nborregaard@cipma.cl
PART IV - INFORMATION TO BE COMPLETED BY IMPLEMENTING AGENCY
22. Project identification number: CL-GM-58299
23. Implementing Agency contact person: Robert Kirmse, Task Manager, (202) 473-2362
Christine Kimes, Regional Coordinator (202) 473-3689
24. Project linkage to Implementing Agency program(s): The Country Assistance Strategy
(CAS—April 17, 1995), along with Bank sector work on environmental issues in Chile (Report no.
13061-CH), identifies the unsustainable use of native forests as one of the three most serious
environmental problems of the country. The proposed GEF medium sized project is
complementary to the institutional strengthening work being undertaken by CONAMA under
the Environmental Institutional Development Project (Loan 3529-CL) and to the work on
improved natural resources management being undertaken by the Secano Agricultural
Development Project (LN3974-CL).
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Figure 1
Expected Outputs in Region X
From the Baseline Situation and GEF-Supported Alternative
BASELINE
 10 public protected areas
(PAs) in Region X.
 Management. through
individual units (i.e., without a
landscape or regionally
integrated approach).
 Institutional framework
exclusively oriented to public
PAs.
 Existing private PAs
remaining under an informal
protection status (i.e. without
guarantee of sustainability).
GEF Alternative
 10 public PAs plus 3
to 4 private PAs in
Region X.
 Management of PAs
in Region X based on
integrated public and
private areas with
formal protected status
(i.e., an ecologically
connected system).
 A public-private
institutional framework
for management of PAs
in Region X.
 National biodiversity
 Expanded coverage of  Availability of a
conservation system limited to
public areas.
PAs in the Valdivian
temperate forest
ecoregion.
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Incremental
 New private PAs in
Region X.
 A formal publicprivate system for
management of PAs
in Region X.
 Improved capability
for management of an
integrated publicprivate system in
Region X.
tested institutional
system oriented to
promotion and
expansion of PAs in
the Valdivian
temperate forest
ecoregion (and other
ecoregions) through a
public-private
approach.
Table 1
Incremental Cost Analysis
BASELINE*
(Public system,)
(US $)
1.
PROPOSED
ALTERNATIVE**
(Integrated publicprivate system)
(US$)
INCREMENTAL
COST **
(US $)
ACTIVITY
Investment in equipment &
infrastructure (SNASPE, Region X)
Management of public and private
protected areas in Region X
Preparation of studies, surveys, plans
and monitoring
Design of collaborative (publicprivate) mechanisms and incentive
programs
Implementation of technical
assistance and incentive programs
for public-private cooperation in
Region X
Testing of mechanisms and
incentive programs for publicprivate cooperation in Region X
Overhead and reporting
TOTAL
45,000
45,000
---
740,000
1,100,000
360,000
90,000
150,000
60,000
---
60,000
60,000
70,000
230,000
160,000
---
125,000
125,000
100,000
175,000
75,000
1,045,000
1,885,000
840,000
* Estimation based on aggregated data provided by SNASPE, Region X.
** Preliminary estimate, including expected private sector inputs
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Table 2
Chronogram of Block A Implementation
Task No.
Output
0
1
2
3
4
5
6
Identification of a set of candidate “pilot areas”
Terms of reference for design of participatory
collaborative approaches for expansion and
improve management of protected areas
Specification of procedures, activities and
detailed costing and procurement arrangements
for implementation of pilot demonstration areas.
Specification of activities and detailed costing and
procurement arrangements for undertaking
monitoring and evaluation (M&E) of the pilot
exercises over a two-year period.
Workplan and log frame for project
implementation
Incremental cost analysis
11
2
4
Weeks
6 8 10
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Table 3
The 1997 –1998 Research Program
Project Title
Mercosur and the environment *
Amount of grant
US$ 85.000
Use of economic instruments at an
early stage of environmental policy
making *
Environmental impacts from trade
liberalization in the mining sector *
Public participation in environmental
impact assessments **
Environmental management training
of the private sector *
Trade liberalization, environmental
impacts and economic valuation *
Public participation mechanisms **
National Environmental Conference *
US$38.000
Grantor
Center for International
Environmental Law (CIEL), The
Tinker Foundation
Avina Foundation
US$20.000
UNEP
US$ 210.000
US$ 100.000
Interamerican Development Bank,
CONAMA, FONDECYT
Interamerican Development Bank
US$ 46.000
World Resources Institute
US$ 55.000
US$170.000
Others
US$80.000
CONAMA
Fundación Andes, Fondo de las
Américas, CONAMA, others
International Labour Organization,
National Forestry Institute,
Gesellschaft fuer Technische
Zusammenarbeit, etc.
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