United Nations Development Programme
Country: Panama
PROJECT DOCUMENT1
Project Title: Promoting the application of the Nagoya Protocol on
Access to Genetic Resources and Benefit Sharing in Panama
UNDAF Outcome(s):
4.1 Panama has implemented development policies that promote the sustainable use of natural resources and recognize
the economic and social value of environmental services and biodiversity conservation
4.2 Panama has implemented policies and programmes that with the participation of the private sector and civil society
promote sustainable consumption and production, fomenting cleaner production, the use of renewable energies and the
reduction of wastes and pollutants.
4.3 Panama has reduced vulnerability to climate change and natural threats, and is moving towards and economy with
low levels of greenhouse gas emissions, through inter-sector actions at national and local levels for the efficient and
sustainable use of natural resources.
UNDP Strategic Plan Environment and Sustainable Development Primary Outcome:
To integrate in general activities issues related to environment and energy
UNDP Strategic Plan Secondary Outcome: To mobilize funding for the environment
Expected CP Outcome: To elevate to the level of State policy the protection of the environment to strengthen
economic growth, tourism development and wellbeing in general
Expected CPAP Output (s): In process
Executing Entity/Implementing Partner: UNDP
Implementing Entity/Responsible Partners: ANAM, Panama International Cooperative Biodiversity
Group
Brief description
Panama’s protected areas contain high levels of globally important biological and genetic diversity, which have major value as the
source of nature-based products with the potential to contribute significantly to disease control and food supply worldwide. This
project will create the levels of capacities and awareness that are required to scale up and consolidate this situation, allowing
Panama to enjoy full control and ownership of these processes, and to generate benefits such as investment, employment and
training that will motivate increased investment in the protection of PAs and their genetic resources. This will be achieved by: i)
investing directly in bioprospecting and bioassays, in order to strengthen the long-term sustainability of Panama’s drug discovery
program; ii) transferring technology and practices to increase the research capacity of Panamanian institutions and facilitate the
discovery of active compounds and the sustainable use of biodiversity; iii) raising awareness among the Panamanian population of
the benefits of biodiversity; and iv) increasing national capacities for ratifying the Nagoya Protocol on access and benefit sharing.
A key problem that this project seeks to address is that at present, royalties are typically perceived as the only financial mechanism
whereby developing nations such as Panama can receive benefits from the exploration and exploitation of their genetic resources for
drugs and agrochemicals. Unfortunately, the proportion of the explored genetic resources that actually make it to market and
generate royalties is relatively small. At the same time, spending worldwide on drug discovery research (amounting to tens of
billions of dollars per year) is virtually all conducted in developed countries rather than the host countries where the biodiversity
occurs naturally. As a result, the benefits that host countries receive from the exploration of their genetic resources are very limited,
both in terms of financial income and trickle-down benefits such as training and employment. This in turn limits their motivations
and abilities to invest in the conservation of biodiversity. Therefore, the long term solution to this problem, which will be pursued
by this project, is the realization of the potential of genetic resources in Panama to generate tangible economic benefits to the
country, in the form of business, technology transfer, employment and capacity building opportunities, through the discovery and
development of new medicines or agrochemicals, thereby providing a rationale for the preservation of the biological resources that
contain the genetic material. This will represent a paradigm shift from the situation described above, to one in which biodiversityrich nations such as Panama are fully and equitably involved in this lucrative research process. Through collaborations between
Panamanian partners and academic and private sector actors abroad, the project will focus on the biodiscovery process, the
enhancement of human and institutional capabilities in the country, and the transfer of equipment and expertise from the United
States to Panama, in order to establish a state-of-the-art drug discovery program. In synthesis, the biodiscovery process facilitated
by the GEF investment will build the capacity of Panamanian organizations through high-tech equipment and training (i.e., shortterm monetary benefits) and pave the way for the materialization of long-term monetary benefits for the country.
1
For UNDP supported GEF funded projects as this includes GEF-specific requirements
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Programme Period:
_____________
Atlas Award ID:
Project ID:
PIMS #
______________
______________
______________
Start date:
End Date
______________
______________
Management Arrangements
PAC Meeting Date
______________
______________
Total resources required
Total allocated resources:
o GEF
o Other
In-kind contributions
o National Institutes of Health
o STRI
o INDICASAT
o UCSD
o University of Utah
o Eisai
o Centauri
o Dow AgroSciences
4,422,000
2,650,000
1,000,000
1,650,000
170,000
300,000
300,000
200,000
132,000
325,000
20,000
325,000
Agreed by (Government):
Date/Month/Year
Agreed by (Executing Entity/Implementing Partner):
Date/Month/Year
Agreed by (UNDP):
Date/Month/Year
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SITUATION ANALYSIS ..................................................................................................... 5
Policy and Institutional Context .................................................................................................. 5
Biodiversity in Panama .............................................................................................................. 5
Threats .................................................................................................................................... 7
The long term solution ............................................................................................................... 8
Barriers.................................................................................................................................... 8
Stakeholder analysis .................................................................................................................. 9
Baseline analysis....................................................................................................................... 9
II.
STRATEGY ..................................................................................................................... 10
Project rationale .......................................................................................................................10
Policy conformity ....................................................................................................................10
Country ownership: country eligibility and country drivenness .....................................................10
Design principles and strategic considerations .............................................................................11
Project objective, outcomes and outputs/activities ........................................................................13
Key indicators, risks and assumptions.........................................................................................19
Financial modality ...................................................................................................................20
Cost-effectiveness ....................................................................................................................20
Sustainability...........................................................................................................................20
Replicability ............................................................................................................................21
III. PROJECT RESULTS FRAMEWORK: ................................................................................ 22
IV. TOTAL BUDGET AND WORKPLAN ................................................................................ 24
Summary of GEF budget by Atlas code ......................................................................................25
Budget notes ...........................................................................................................................25
V. MANAGEMENT ARRANGEMENTS ................................................................................ 28
Implementation arrangements and responsibilities........................................................................28
Summary of the inputs to be provided by partners ........................................................................29
Audit arrangements ..................................................................................................................30
Agreement on intellectual property rights and use of logo on the project’s deliverables ....................30
VI. MONITORING FRAMEWORK AND EVALUATION ......................................................... 31
VII. LEGAL CONTEXT ........................................................................................................... 35
VIII. ANNEXES ....................................................................................................................... 36
Annex I. Terms of Reference: ...............................................................................................36
I.
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List of Abbreviations
Abbreviation
ABS
ABWP
ANAM
APR
CBD
CO
DIM
GoP
ICBG
INDICASAT
IR
NBSAP
NGO
NIH
NPC
NPD
PA
PIR
PIU
QOR
RCU
STRI
ToR
TPC
UNARGEN
UNDP
Meaning
Access and Benefit Sharing
Annual Budget and Work Plan
National Environment Agency
Annual Project Report
Convention on Biological Diversity
Country Office
Direct Implementation
Government of Panama
Panama International Cooperative Biodiversity Group
Institute of Advanced Scientific Investigations and High Technology Services
Inception Report
National Biodiversity Strategy and Action Plan
Non-Governmental Organization
National Institutes of Health
National Project Coordinator
National Project Director
Protected area
Project Implementation Review
Project Implementation Unit
Quarterly Operational Report
Regional Coordination Unit
Smithsonian Tropical Research Institute
Terms of Reference
Tripartite Committee
Unit for Access to Genetic Resources
United Nations Development Programme
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I.
SITUATION ANALYSIS
Policy and Institutional Context
1. The National Environment Agency (ANAM) is the lead governmental institution in the natural
resources and environment sector in Panama and the national authority on ABS. ANAM is also
responsible for administering the Panama National Protected Area System (SINAP), which includes 65
protected areas. While local research organizations such as INDICASAT and University of Panama have
undertaken national efforts to investigate the uses of genetic resources, these initiatives have not shown
similar potential to that of the Panama International Cooperative Biodiversity Group (ICBG). The Panama
ICBG, with headquarters in the Republic of Panama, was established in 1998 and is comprised of the
University of Panama, the Institute of Advanced Scientific Investigations and High Technology Services
(INDICASAT-AIP, for its initials in Spanish), and the Smithsonian Tropical Research Institute (STRI).
These institutions in turn have academic, non-profit and industrial collaborators at both the national and
international level, which include the University of California, Oregon State University, Utah State
University and University of Connecticut.
2. The project will contribute directly to a number of the Strategic Objectives of the country’s National
Biodiversity Strategy and Action Plan (NBSAP) 20002, in particular the following:
3) Increase knowledge, information and citizen awareness regarding biodiversity, biotechnology,
bioprospecting, biosecurity and access to genetic resources.
4)
Generate policies, judicial instruments and methods for the valuation of biodiversity that
motivate the sustainable use of biological resources.
5) Increase the participation of local and indigenous communities in the management, planning,
administration and sustainable use of biodiversity
8) Strengthen the application of the General Environment Law for the promotion of conservation,
sustainable use and distribution of the benefits of biodiversity, in accordance with the
commitments acquired under the Convention on Biological Diversity.
9) Increase human capital and infrastructure for education and research on biodiversity.
11) Develop mechanisms for cooperation and finance aimed at the conservation and sustainable use
of biodiversity, in accordance with national priorities.
12) Contribute to the conservation of global biological diversity.
Biodiversity in Panama
3. As the southern-most portion of the Central American bridge between North and South America,
Panama is a “biodiversity hotspot”, at the center of the region with the greatest concentration of terrestrial
plant species in the world (>5,000 species/10,000km2; Barthlott et al. 1996, Myers et al. 2000). Such
high diversity is due to extraordinary regional (beta) diversity, the result of an unusual mosaic of habitat
types (D'Arcy 1987, Condit et al. 1996, Condit et al. 2002). Panama has over 13 life zones that host over
9,520 species of flowering plants (Tosí 1971, Correa et al. 2004). It is the northern-most extent for
approximately 4,000 South American species, has about 5,000 Central American species, and endemic
species account for 12% of its flora. Given that Panama is slightly smaller than South Carolina, this
exceptional terrestrial diversity is highly accessible.
4. Panama's unique geographic position makes it a critical area for global conservation planning.
Panama’s forests play an important role as migratory corridors between Central and South America
(Coates and Obando 1996). Because Panama is only 100 km wide, the corridor is particularly vulnerable;
2
http://www.cbd.int/doc/world/pa/pa-nbsap-01-p1-es.pdf
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habitat destruction can easily disrupt this important link between the hemispheres (see AP5). As climate
fluctuations become more severe, it will be increasingly important for species to migrate in response to
global change. Hence, in recognition of the importance of the Panamanian corridor for the persistence of
many species, seven Central American countries pledged to help preserve this forested ‘bridge’ and
started the Mesoamerican Biological Corridor initiative (The Paseo Pantera Agenda, Illueca 1997).
Figure 1. Forest cover in Panama
.
5. With its 2,988km of coastline and 66,405km2 of coastal waters, the country has unparalleled access
to the flora and fauna of three distinct water bodies: the Caribbean Sea, the Gulf of Chiriquí and the Gulf
of Panama. The barrier posed by Panama has caused significant differences in ocean chemistry and
climate between the Caribbean and Pacific. The SW-trending trade winds result in high evaporation and
greater salinity (about 1 ppm) in the Caribbean than the Pacific. The trade winds cause upwelling of cool,
nutrient-rich waters making the Pacific more turbid and slightly cooler, with more abundant nutrients and
phytoplankton than the Caribbean (Haug et al. 2001). Within the Panamanian Pacific, there is a marked
contrast between Gulf of Chriquí (in the southwest) and the Gulf of Panama (southeast) because a break
in the mountains results in unimpeded passage of the trade winds to the Gulf of Panama. In western
Panama, the cordillera blocks the flow of the trade winds. The result is colder (below 20 ºC), nutrientladen water in the Gulf of Panama relative to the Gulf of Chiriquí (Glynn and Maté 1997). The differing
physical environments of the two oceans, as well as between the Gulfs of Panama and Chiriquí, are
thought to be manifest in the high marine biodiversity observed in Panamanian waters.
6. Subtidal limestone platforms, sand and mud plains, diverse reefs, seagrass meadows and mangroves
are typical of the Caribbean coastline, which has a minimal tidal flux (<0.5 m). In contrast, the Pacific
coast experiences a tidal amplitude of up to 6 m and comprises rocky outcrops with numerous tide pools
and diverse algal turfs. The more protected shorelines have extensive sand and mud flats and mangrove
forests. Corals are present but rarely develop into elaborate reefs, with the exception of the 1.6 km2 reef of
Maria Ensenada, next to Coiba Island in the Gulf of Chiriquí. While coral reefs constitute a comparatively
trivial portion of coastal habitats in the eastern, more seasonal Pacific region of Panama (D’Croz and
Robertson 1997), 91% of all genera of eastern Pacific reef-building corals occur in Panama (Glynn and
Maté 1997). Many of these species are found in the very warm Gulf of Chiriquí.
7. The Panama Bight includes the islands and waters in the east-central Pacific off Ecuador, Colombia,
Panama and Costa Rica. This ecoregion, which includes the Gulf of Chiriquí, is one of the most
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productive areas of the eastern tropical Pacific and one of the world’s most biologically diverse
geographical provinces (Glynn and Maté 1997). In this area, where major ocean currents converge, there
is a high degree of ecological interconnection, and complex oceanographic characteristics affect the
migrations, movements and distribution of many species of regional and global significance (Glynn and
Maté 1997, Wellington 1997).
Threats
8. Panama is unique in Central America in having 45% of its land, 33,646 km2, still forested. Slightly
more than one third of Panama’s land area is protected in the country’s 65 parks and reserves. However,
deforestation continues at a rapid rate: 440 km2 per year. At this rate, Panamanian forests will disappear
within approximately 80 years (FAO 2005). Several of Panama's ecosystems were recently acknowledged
by the World Bank as being of global significance for conservation (Document of the World Bank, 1998).
Due to Panama’s extraordinary yet threatened biodiversity, it is considered a “threatened biodiversity
hotspot” (Myers et al. 2000).
9. It is estimated that 30% of Caribbean coral reef systems are at high risk from overfishing as well as
siltation and pollution from inland and coastal activities. A further 30% are being significantly threatened
by human activities (Burke 2001). Notable also are the oil spills along the Caribbean coast of Panama
(such as the Galeta spill of 1986: Guzman 1991), which are a chronic source of coral reef deterioration
(Ballou et al. 1989). In the last decades, coral reef habitats have additionally been endangered by
escalating outbreaks of disease (Cervino et al. 2001) and by coral bleaching events caused by the El NiñoLa Niña effect, such as that affecting the western Pacific coast of Panama in 1997-98 (Goreau et al.
2000).
Figure 2. New roads planned through fragile pristine coastal ecosystems to allow the development
of international destination coastal resorts.
The underlying problem
10. At present, royalties are typically perceived as the only financial mechanism whereby developing
nations such as Panama can receive benefits from the exploration and exploitation of their genetic
resources for drugs and agrochemicals. Unfortunately, the proportion of the explored genetic resources
that actually make it to market and generate royalties, is relatively small. At the same time, spending
worldwide on drug discovery research (amounting to tens of billions of dollars per year) is virtually all
conducted in developed countries rather than the host countries where the biodiversity occurs naturally.
As a result, the benefits that host countries receive from the exploration of their genetic resources are very
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limited, both in terms of financial income and trickle-down benefits such as training and employment: this
in turn limits their motivations and abilities to invest in the conservation of biodiversity.
The long term solution
11. The long term solution to this problem, which will be pursued by this project, is the realization of the
potential of genetic resources in Panama to generate tangible economic benefits to the country, in the
form of business, employment and capacity building opportunities, through the discovery and
development of new medicines or agrochemicals, thereby providing a rationale for the preservation of the
biological resources that contain the genetic material. This will represent a paradigm shift from the
situation described above, to one in which biodiversity-rich nations such as Panama are fully and
equitably involved in this lucrative research process. Through collaborations between Panamanian
partners and academic and private sector actors abroad, the project will focus on the biodiscovery process,
the enhancement of human and institutional capabilities in the country, and the transfer of equipment and
expertise from the United States to Panama, in order to establish a state-of-the-art drug discovery
program.
Barriers
12. The achievement of the solution proposed above has to date been impeded by a number of factors.
13. 1. Limited technical capacities. Although since 1998 the Panama ICBG, with its partners STRI,
INDICASAT and the University of Panama, has invested more than $7 million to date in carrying out a
large number of explorations and bioassays, the limited levels of technical capacities in Panamanian
institutions mean that it is currently not possible to scale these activities up to a level that would constitute
a “critical mass” enabling the country fully to own and control exploration and bio-testing processes, and
to establish a firm international reputation in this regard. Panama has an excellent resource of
undergraduate and graduate scientists with the potential to staff and manage a national biodiversity
exploration and testing programme; however, to date an insufficient number of these have been trained in
the specific technical skills of relevance to these issues, to be able to make this programme an
internationally-recognised success in the long term. Furthermore, to date these scientists have had limited
exposure to the international scientific community apart from their contacts with the US-based partners of
the Panama ICBG, and have had few opportunities to establish their international reputations by
presenting their findings at international meetings or in peer-reviewed academic journals: this also has
impeded the establishment to date of the credibility and reputation of Panama as a centre for biodiversity
exploration and biotesting.
14. 2. Limited awareness of the existence, use and option values of biodiversity. At present, there are
insufficient levels of awareness of the value of biodiversity and its genetic resources among decision- and
policy-makers, and the constituents to whom they respond, to ensure political support for assigning the
levels of resources that are required for its conservation. This is reflected by the slow pace followed by
the legislative branch for the ratification of the Nagoya Protocol.
15. 3. Limited experience with ABS agreements. An agreement has been signed between the STRI and
the ANAM of the Government of Panama, regarding the mechanisms and conditions governing the
exploration and biotesting of the country’s biodiversity. This agreement is groundbreaking inasmuch as
its simplicity promotes collaborative research, while providing equitable sharing of benefits among all the
Panama ICBG institutions. The agreement states that STRI can sign agreements with other academic and
private sector parties. These agreements state that collaborative research on uses of biodiversity should be
facilitated. If discoveries reach the stage of potential commercialization that could lead to milestone or
royalty payments, then they are renegotiated with explicit reference to how benefits will be shared. At this
stage, both ANAM and the inventors have to agree before further research can take place. By having
simple initial agreements that encourage research, Panama receives immediate benefits such as jobs and
training, copies of publications, participation in research, and the probability that a commercial discovery
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may be made is higher. At present, however, it is doubtful whether all key national actors adequately
understand the provisions and implications of the agreement, or the complex issues to which it refers, a
situation which limits their ability to negotiate future benefit sharing agreements if products are derived
from the biodiscovery process. Furthermore, there is room for improvement in the efficiency of the
practical mechanisms associated with the agreement, such as the collecting, import and export permits
issued by ANAM; this has potential implications for the efficient functioning and therefore profitability
and attractiveness of bioexploration and testing initiatives. Finally, while the legal framework of ABS
agreements between ANAM, STRI and private and academic partners is established and functioning well,
mechanisms are yet to be developed and tested for the complementary, more specific agreements that will
be required if new partners are added or if evidence of the commercial potential of products makes it
necessary to clarify the details of benefit streams returning to Panama.
Stakeholder analysis
16. The Smithsonian Tropical Research Institute, INDICASAT and the University of Panama are
the research institutions in Panama involved in the nature-based product discovery investigations. These
three institutions form the nexus of the program and are responsible for collection of microorganisms,
bioassays and purification and structure elucidation of active compounds.
17. Foreign academic collaborators at the University of California, Oregon University, Utah State
University and University of Connecticut are involved in natural products research. Some of these
collaborators have carried out postdoctoral research in the Panamanian laboratories and now have their
own faculty appointments in the US. All say that their experience in Panama was instrumental in helping
them obtain faculty positions. All have maintained their links with Panama, returning for research and
hosting Panamanian students and scientists in their US labs. A senior collaborator at the University of
Arizona is a leading expert in the identification and taxonomy of endophytic fungi.
18. ANAM is the branch of the Panamanian government in charge of authorizing accesss to the
country’s genetic resources and facilitating the negotiation of benefit sharing agreements. In addition,
ANAM is in charge of 65 protected areas that include more than 15 marine or coastal areas.
19. The project will also engage the private sector. The Panama ICBG has two private sector
collaborators who assist in bringing leads to the market, Dow AgroSciences and Eisai Research Institute.
The Panama ICBG provides crude extracts and purified compounds for testing in their bioassays. In
addition to the extensive resources involved in running these bioassays, they have provided supplies and
technical know-how to Panama, and hosted Panamanian visitors to their labs. In Panama, the ICBG has
worked with Centauri Technologies Corporation, a company specializing in information technology, and
proposes to expand its collaboration with Centauri using GEF funding.
Baseline analysis
20. The Panama International Cooperative Biodiversity Group (ICBG) has been operating in Panama
since 1998 with the goals of natural products drug discovery from this rich biota, especially in the areas of
antiparasitic and anticancer drug discovery as well as the finding of new agrochemicals. These therapeutic
and agrochemical goals are of high relevance to the people of Panama and their needs. Moreover, these
efforts are largely conducted in Panama, helping to develop scientific training and infrastructure, and
leading to a generally enhanced valuation of biological diversity. As such, the Panama ICBG is a model
of how to conduct such efforts, which simultaneously meet the goals and needs of both developed and
developing countries. From progress made over the past 13 years by the Panama ICBG program, a
fledgling scientific community has been created in Panama which integrates drug discovery from natural
sources with ecosystem preservation and conservation activities. By conducting a majority of the research
in country, there is growing recognition and appreciation by the government and populace of Panama of
the value of biodiversity preservation and scientific capacity building. Beyond the specific
accomplishments of this program in Panama, the experiences and practices developed within this model
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can be applied on a global level and guide parallel efforts in other biodiversity-rich but economicallydisadvantaged countries.
21. The project has been funded by the Fogarty International Center since 1998. The Fogarty is part of
the US National Institutes of Health (NIH) and is dedicated to research and training for global health.
During and prior to NIH funding, the Panama ICBG established productive collaborations and signed
critical ABS agreements with the Panamanian government and the participating academic and private
sector collaborators. The combined funding from the partners that can be used for co-financing of the
GEF award is over $3 million. Thus substantial investments and extensive efforts have put this project in
the unique and promising position of providing benefits for human health and economic benefits to
Panama while protecting valuable biodiversity.
II. STRATEGY
Project rationale
22. Panama’s protected areas contain high levels of globally important biological and genetic diversity,
the conservation of which depends on the assignment of adequate levels of financial resources and
political support to PA management. In addition to its global existence value, these genetic resources have
major option and use value as the source of nature-based products with the potential to contribute
significantly to disease control and food supply worldwide. The Government of Panama and the Panama
ICBG (a group of academic and private sector institutions from both Panama and the Unites States) have
established a solid basis of experience and understanding for the exploration, testing and use of this
biodiversity, based on the principles of equity enshrined in the Convention on Biological Diversity. The
incremental support to be provided under the present project will create the additional levels of capacities
and awareness that are required to scale up and consolidate this situation, allowing Panama to enjoy full
control and ownership of these processes, which will in turn come to generate benefits for the country (in
terms of investment and employment) that will motivate increased levels of investment in the protection
of PAs and the biodiversity that they contain.
Policy conformity
23. The project is fully in alignment with Article 5 of the Nagoya Protocol, which stipulates (in
accordance with Article 15, paragraphs 3 and 7 of the CBD) that “benefits arising from the utilization of
genetic resources as well as subsequent applications and commercialization shall be shared in a fair and
equitable way with the Party providing such resources that is the country of origin of such
resources…Such sharing shall be upon mutually agreed terms”, Article 6 which stipulates that “in the
exercise of sovereign rights over natural resources, and subject to domestic access and benefit-sharing
legislation or regulatory requirements, access to genetic resources for their utilization shall be subject to
the prior informed consent of the Party providing such resources that is the country of origin of such
resources or a Party that has acquired the genetic resources in accordance with the Convention, unless
otherwise determined by that Party” and Article 9, which stipulates that “The Parties shall encourage
users and providers to direct benefits arising from the utilization of genetic resources towards the
conservation of biological diversity and the sustainable use of its components”.
Country ownership: country eligibility and country drivenness
24. Panama signed the Convention on Biological Diversity on 13th June 1992 and ratified it on 17th
January 1995, and signed the Nagoya Protocol on 3rd May 2011.
25. Panama has a policy which facilitates access to genetic resources and distribution of the resulting
benefits (Decree 25 of 29th Abril 2009) and is taking initiatives to discover genetic resources through the
Panama ICBG. This proposal is consistent with Objective 5 of the National Biodiversity Policy of 2008,
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which proposes, within the context of national competitiveness, to develop new alternatives that
contribute to promoting research into biodiversity, production systems, bioprospecting, biosecurity and
access to genetic resources, thereby contributing to the creation of highly efficient and effective
businesses in relation to the conservation and sustainable use of biological resources.
Design principles and strategic considerations
26. The Panama ICBG Program has an overall focus on nature-based product discovery from the
country’s diverse microbial life forms, both free-living such as marine cyanobacteria as well as those
associated or symbiotic with macroscopic life forms, such as endophytic fungi. However, the Panama
ICBG puts equal emphasis on biodiversity inventories and conservation, and believes there is a natural
synergism between these pursuits. Its overarching rationale in this regard is that by attaching tangible
value to biodiverse habitats, such as through the discovery and development of new medicines or
agrochemicals from their inhabiting flora, fauna and microorganisms, it is providing one of the strongest
rationales for their preservation and conservation; at the same time, it is generating global use benefits in
terms of the availability of drugs and other chemicals (e.g., fungicides and pesticides) of utility in fields
such as medicine and agriculture.
27. The systematic evaluation of natural products from diverse life forms to discover new drug leads has
led to many of the most important pharmaceutical agents. For example, it has been estimated that 37% of
total pharmaceutical sales, and 45% of today’s bestselling drugs, are from natural products and natural
products-derived molecules (Frormann and Jas 2002). Another analysis reported that 8 of the top 25 top
selling drugs worldwide derive from microorganisms (Chicarelli-Robinson et al. 1997). Approximately
60% of the agents in clinical trial for the treatment of cancer owe their origin to natural products (Cragg
and Newman, 2000). These include many compounds from natural sources with potentially useful but
imperfect medicinal properties which have become the ‘chemical idea’ around which synthetic analogs
have been generated to create an effective pharmaceutical. From a very recent analysis by Newman and
Cragg (2007), 47% of the anticancer agents are natural products, or are derived or inspired by natural
products. Further, of 974 new small molecule chemical entities brought into the clinic between 1981 and
2006 in all therapeutic areas, 58 (6%) are unmodified natural products, 273 (28%) are modified natural
products, and 282 (29%) are synthetic analogs. These last have a natural products “ancestry” and were
patterned after features of the natural products. The remaining 360 (37%) are completely synthetic in
origin. Hence, natural products have played a critical role in the development of 614 (63%) of the agents
in use today.
28. A number of marine organisms contain secondary metabolites, used by the organisms as toxic
defences that can be therapeutically useful for humans. The field of marine natural products is currently
poised to make a major contribution to the arsenal of anticancer agents with 20 such substances in (or
recently in) various phases of clinical trial.
29. In agriculture, natural products play important roles in the protection of crops against fungi, insects
and other pests (Clardy and Walsh, 2004, Copping and Duke 2007). The fact that many modern pesticides
pose serious risks to non-target animals and humans has led to considerable commercial interest in lowtoxicity forms of crop protection. Recent low-toxicity products with sales up to one billion dollars
include strobilurin fungicides abamectin and spinosad.
30. At first glance, the original biological sources of these agents appear dispersed among
microorganisms, especially the eubacteria, and macroorganisms, in particular the sponges and ascidians.
However, it is becoming increasingly apparent that many of the organic molecules ascribed to “sponge”
or “ascidian” metabolism is actually due to the metabolic activities of bacteria that live in association with
these sessile invertebrates (Dunlap et al., 2007). While such speculations have been abundant in the
literature for many years, largely based on structural relationships between the compounds isolated from
sponges and those isolable from free living bacteria, especially the cyanobacteria, it has been remarkably
difficult to obtain experimental proof of this phenomenon. In part the difficulty has resulted from the near
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absolute failure to culture the microorganisms found in symbiosis with invertebrates separately from their
hosts, and thus, the chemical and biochemical relationships between hosts and symbionts remain vague
and uncertain. Some partial success has been obtained through isolation of bacterial and eukaryotic host
cells by cell separation techniques followed by chemical profiling of the resultant cell types (Unson &
Faulkner, 1993). This approach, however, suffers the criticism that compounds could be excreted from
one cell type and absorbed by another, resulting in misleading or conflicting results. Recently, the
Panama ICBG used a powerful genetic basis, CARD-FISH analysis to a gene encoding a biosynthetic
enzyme, to demonstrate unequivocally that a cyanobacterial symbiont, Oscillatoria spongeliae, is the site
of biosynthesis of a series of unique chlorinated peptides that had previously been isolated from the host
sponge Dysidea herbaceae. (Flatt et al., 2005). If one makes reasonable speculations based on distinctive
chemical motifs in sponge and ascidian natural products and their relationship to microbial metabolites,
then a majority of the marine anticancer agents in clinical trial today (or recently in trial) may derive from
marine microorganisms.
31. There is much debate on how many species exist on the planet, largely because of uncertainty over
the true extent of the microbial world; however, estimates as high as 30 million have been reported
(Waterman 1998). Nevertheless, when one considers that for most species, and especially for microbes,
each consists of multiple strains with their own unique metabolic profiles, the numbers of organisms to be
examined for useful natural products is enormous. There is growing recognition that microorganisms have
‘core genomes’ which may accord to a species concept, but that each strain of a given ‘core genome’ can
have significant genetic materials coding for distinctive adaptive and secondary metabolite features. In a
few microorganisms wherein there has been significant and detailed annotation of the secondary
metabolome as deduced by bioinformatics, as much as 10-15% of the genome is allocated to encoding the
biosynthesis of natural products. Panama is a hotspot for terrestrial plants and the Indo-Pacific Regions
and Caribbean-Pacific Juncture are two of the most highly biodiverse regions for marine organisms on the
planet. Inherent to high biodiversity is high inter-species interaction. Competition among co-habitating
species for limiting resources (e.g. space, nutrients - Reigosa et al. 1999, Gross 1999) and defence against
predators and pathogens has been proposed as a key factor for why the percentage of species containing
bioactive natural products is so high in biodiversity-rich areas, such as the tropics (Coley and Aide 1991,
Coley and Barone 1996). As argued by Cragg and Newman (2002), in response to arguments put forth
by Tulp and Bohlin (2002), chemical diversity is encountered as a function of biodiversity. Implicitly, the
Panama and Indo-Pacific regions possess the greatest percentage and number of species which elaborate
bioactive natural products.
32. Panama’s rich terrestrial and marine biota are unique in the world for their easy access. For example,
within a 2 hour drive of Panama City, it is possible to sample sites from sea level to 1100 m, and lowland
forests from “dry-deciduous” through “very wet-evergreen”. Similarly, it is possible to drive from the
STRI headquarters to the Pacific and Caribbean coasts for a SCUBA diving day-trip to make marine
cyanobacterial collections. More distant sites in the province of Bocas del Toro near Costa Rica and in
the Darién province near Colombia can be reached by inexpensive daily flights of approximately one
hour. Thus, the extraordinary accessibility of a diversity of intact forests make it possible to collect
readily across large gradients in rainfall and altitude and across biomes with primarily Central or South
American influences. The combination of extraordinarily high marine and terrestrial biodiversity over a
small area, STRI field stations throughout the country, and accessibility, makes Panama an outstanding
site for natural product drug discovery efforts.
Collection site: Coiba National Park
33. This GEF funded project will facilitate collections in the Coiba National Park, a marine park located
off the south coast of the country. The project will use a collection strategy that combines ecological and
taxonomic information to maximize diversity and activity of endofungal collections. Building on past
success of using basic ecological research to inform collections of terrestrial plants (Coley et al 2003,
Kursar et al 2008), the project will include information on endophyte ecology. For example, it is
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predicted that endophytes inhabiting grasses, long-lived mature leaves and live and dead wood may yield
particularly active compounds. In addition, endophytes with slow growth and ones that show activity in a
pre-screen with an oomycete have greater bioactivity. Because many of the promising leads for medicine
and agriculture are often not from the most abundant classes of endophytes, the project will use selective
media, DNA sequencing and state of the art techniques for fungal identification to focus on poorly studied
lineages and lineages with known activity. Finally, because so much of endophyte diversity is unexplored,
the project will maximize sampling of taxonomic classes and life history traits of endophytes by
collecting from a diversity of terrestrial plants and macroalgae.
34. Cyanobacteria proliferate in the shallow subtidal zone, often in protected bays where shallow reefs
accommodate a diversity of microalgal species, and cyanobacteria are the primary nitrogen fixers.
Alternatively, mangrove forests and sea grass communities provide sheltered habitats for cyanobacteria in
locations with high light intensity and temperature as well as low wave action. These locations also
provide refuge for fishes and marine invertebrates, and yet cyanobacterial species are conspicuously
untouched by the myriad predators. Similarly, freshwater aquatic environments in Coiba National Park
nurture many molluscs, crustacea and fishes which prey on microalgae, yet do not conspicuously feed on
the many cyanobacteria of these habitats. Therefore, cyanobacterial species found in physical abundance
will be collected preferentially on the premise that they rely on chemical rather than physical defenses
(Hay 1996; Nagle & Paul, 1999).
35. Microbial communities in the open ocean reach densities up to 105 bacteria/ml; however, marine
sediments and marine invertebrates contain densities up to 109 bacteria/ml. In these nutrient-limited
environments competition for energy forms the basis for all species-species interactions. It is
hypothesized that the capacity to produce bioactive metabolites provides producing organisms with a
strong competitive advantage. Indeed, terrestrial microbial natural products chemistry has already proved
unequivocally that 'chemical warfare' plays a central role in defining microbial community structure
(Czárán et al, 2002). The project will therefore exploit this diversity by probing the microbiome of marine
sediment and marine invertebrates.
Project objective, outcomes and outputs/activities
Objective: The discovery of nature-based products for the pharmaceutical and agrochemical industries
and benefit sharing to promote the sustainable use of genetic resources in the Protected Areas System of
Panama
Component 1: Discovering active compounds for pharmaceutical and agrochemical uses from
terrestrial and marine organisms in protected areas and improvement of the capacities of ANAM
for their monitoring.
36. In order to develop the international credibility of Panama’s drug discovery program and to
maximize awareness at national level of the significance and potential of the country’s biodiversity and
the importance of conserving it, it is necessary to demonstrate the ability to purify and characterize
compounds that are highly active in agrochemical and pharmaceutical bioassays. Activities under this
component will focus on demonstrating the existence of these capacities, by supporting Panamanian
institutions in carrying out drug discovery. This will involve three institutions in Panama (INDICASAT,
STRI and the University of Panama) as well as academic and private sector partners. The drug discovery
efforts of the Panama ICBG will continue to be focused on the unique endophytic fungi of tropical plants,
freshwater and marine cyanobacteria, and marine bacteria associated with corals and sponges.
Output 1.1 Over 2,500 extracts tested in cancer, tropical disease and agrochemical bioassays by the
Panama ICBG partners.
37. Despite the enormous public health consequences of many tropical diseases, research has lagged,
and many treatments were discovered over 50 years ago. Thus there is an enormous need for safer and
more effective treatments. In Panama, GEF resources will be used to run bioassays for activity against
bacterial infections (to find new antibiotics) and cancer as well as malaria, leishmaniasis and Chagas.
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GEF resources will be used to send samples to private sector partners: Eisai screens for anti-cancer
activity and will help pursue promising leads, while Dow Agrosciences is screening extracts for
agricultural pests.
38. Microbial collections will be made by the Panama ICBG team in terrestrial and marine protected
areas throughout Panama. If the microbes are associated with hosts, such as plants or marine
invertebrates, these hosts will be identified and vouchers stored. Microbes will be cultured by the Panama
ICBG to obtain sufficient mass to make extracts that can be tested in the above-mentioned bioassays. If
extracts show significant activity, they will be re-cultured in larger quantities to allow bioassay-guided
fractionation, purification and structure elucidation of the active compound. It is expected that it will be
possible to purify 50 active compounds. These will be evaluated and the best candidates for next stage
leads will be identified.
Criteria for identifying active compounds qualifying as next stage leads
This decision will be based upon the criteria of selectivity, therapeutic window, properties associated with
medicines (solubility, oral availability and others) and the novelty of the compound. Selectivity is
measured by bioassay and refers to the ability of the compound to affect one or a few diseases in a dose
that is low compared to the (higher) dose that is required to affect other kinds of cells. High selectivity is
desirable. This criterion eliminates compounds that are broadly toxic. Therapeutic window or therapeutic
index also is measured by bioassay. This is a quantitative measure of a drug’s selectivity for a disease
target relative to normal cells as well as a measure of the safety factor for application of the drug.
Compounds with a high therapeutic index are toxic to a disease but not to normal human cells. A high
therapeutic index is desirable. The chemical properties that make the best medicines are those that can be
taken orally (as opposed to intravenous injection) and that are stable at room temperature. Compounds
that can be taken orally must be intermediate in their chemical polarity such that they are both soluble in
water and able to cross biological membranes and must not have an excessively high molecular weight.
Lastly novel structures provide a greater opportunity for the protection of intellectual property; this will
be more important for anti-cancer leads and less important for neglected diseases such as Chagas’ disease
and Leishmania. All of the active compounds will be evaluated using these criteria and the best
candidates qualifying as next stage leads. Further work on the next stage leads will depend upon the
availability of additional resources.
Output 1.2 Fifty active compounds purified and their structures elucidated in facilities of private
sector partners.
39. If extracts show significant activity, they will be re-cultured in larger quantities to allow bioassayguided fractionation, purification and structure elucidation of the active compound. It is expected that it
will be possible to purify 50 active compounds.
Output 1.3 Adjusted ABS agreements as a result of the biodiscovery process include royalty rates and
milestone payments if the research process indicates that specific products will be
developed
40. The legal framework of ABS agreements between ANAM, STRI and private and academic partners
is established and functioning well. They typically follow a format worked out over years of discussion
among the stakeholders, thus new agreements are easily understood by all parties. Should new partners be
added, additional agreements will be drafted, following this simple and straightforward strategy.
Additionally, the agreements all state that should there be commercial potential, then the bioprospecting
initiative will negotiate a new agreement with ANAM specifying the details of the benefit stream
returning to Panama. At the point when commercial potential becomes evident, all parties will have a
clearer idea of the market potential of the discovery and negotiations can be specific. Panama will have
the option of terminating the research or going forward with a new ABS agreement.
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Component 2: Transfer of technology and practices to facilitate the discovery of active compounds
and the sustainable use of biodiversity
41. A major goal of GEF funding will be to enhance the capacity within Panama to conduct drug
discovery research. GEF resources will be used to improve the infrastructure for finding active
compounds from Panama’s biological diversity, using state of the art techniques for collection, bioassays
and natural products’ chemistry. In addition to contributing to improving human health and agriculture,
this will position Panama to take advantage of its remarkable biological diversity. The project will
increase Panama’s international standing as a centre for the discovery of drugs from natural products
through technology transfer and the training of young scientists.
Output 2.1 Capacities for state of the art analytical chemical techniques for characterizing active
compounds installed in Panamanian organizations.
42. Training of young Panamanian scientists as natural products chemists is a goal of the GEF-funded
project and will occur at INDICASAT, the University of Panama and STRI. As part of their biodiscovery
missions, these institutions have acquired sophisticated equipment, such as a Nuclear Magnetic
Resonance (NMR) Spectrometer, several High Performance Liquid Chromatographs (HPLC) and two
Liquid Chromatography-Mass Spectrometer (LC-MS) systems. The project will develop synergisms
among the institutions to build a maximally effective team effort and to train additional young
Panamanian scientists on the use of these powerful analytical instruments. The opportunity to do first
class research with modern equipment has proved to be pivotal in making students competitive for
funding and access to international graduate programs. This will continue to be a major emphasis.
43. A multi-institutional committee of scientists will be formed to oversee operational features of the
NMR and LC-MS systems, and this will improve operation, repair and scheduling, in conjunction with
training workshops. Training and instrument maintenance will improve the overall capacity for scientific
research in Panama.
Output 2.2 Updated methods for disease bioassays used for the identification of active compounds.
44. To screen effectively for tropical diseases, bioassays must be enhanced and new assays developed.
Previously the Panama ICBG developed bioassays that did not use radioactive reagents and thus were
feasible in developing nations. These techniques have since been transferred to countries in the North and
South. The Panama ICBG continues to improve these bioassays, using different life stages of the parasites
and different culturing conditions. At INDICASAT, the Panama ICBG will screen for malaria,
leishmaniasis and Chagas disease, three diseases that are found in Panama and have been long-standing
public health issues. The project will complement these with new mechanism-based bioassay methods,
such as screens for inhibitors of proteases specific to parasites. These new bioassay methods should
increase the throughput of extracts tested, and also provide insight into the mechanisms of action of the
extracts, providing helpful information for prioritizing leads.
45. Bioassays are run by young technicians at the Panamanian institutions and provide invaluable
training in science and technology. This opportunity will open the door for many young members of the
project team allowing them to obtain graduate training abroad.
46. To enhance bioassay technology in Panama, it is anticipated that Panamanian scientists will visit
appropriate laboratories abroad, including those of the private sector partners of the Panama ICBG, to
learn new techniques that can be applied in their own laboratories in Panama. In addition, foreign experts
will visit Panama to train technicians, run workshops, and consult with the Panama ICBG scientists.
Output 2.3 Data handling system among Panamanian institutions harmonizes the transfer of
information on samples collected and scientific results between national and international
institutions.
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47. The Panama ICBG will also continue to improve its current database, which is web accessible to all
scientists in the Panama ICBG and is used for sharing information on all microbes collected, including
collection sites, DNA sequencing, bioassay activities and purified compounds.
Output 2.4 Methodology and capacities for collection, culture and long-term storage of microbes
developed for Panamanian institutions
48. The microbial collections made by the Panama ICBG are unique in the world, given the high levels
of biodiversity in the marine environment of Panama, high levels of endemism, and their inclusion of
endophytic fungi from terrestrial plants (an extremely diverse but poorly known group). The collection
and preservation of these biota in Panama will be enhanced by GEF funds.
49. The quality of this collection will be maximized through emphasis on proper maintenance and
curation. 8000 microbes will be stored permanently in liquid nitrogen cryostorage: this allows microbes to
be regrown when necessary for bioassays, purification of active compounds and DNA sequencing.
Duplicate samples will be stored in microbial banks at both INDICASAT and STRI to assure permanence
and safety of the collection. A web-based catalog of these materials will be created in conjunction with
the other Panama ICBG efforts involved in collections. Training and long term capacity building will be a
secondary benefit of these activities.
50. To make these collections in an effective and safe manner requires specialized gear, equipment and
personnel training. GEF funds will enable an expansion of this part of the program so that samples from
additional locations in Panama can be obtained. This will involve the training of Panamanian
undergraduate students and scientists in the techniques of marine and terrestrial collections and their
ensuing maintenance as preserved specimens, extracts, and living cultures. Access to an increased
biodiversity through these collections will enhance the Panama ICBG program as well as having long
term value for the country of Panama.
51. The Panama ICBG currently has facilities for growing bacteria and fungi, but not for cyanobacteria,
one of the most highly active groups of organisms. As large collections from nature are not always
possible, it is necessary to rely on culturing. GEF funds will be used to establish a culturing facility for
cyanobacteria in a Panamanian organization.
52. The establishment of a bank of microorganisms is a national need that has been identified by
UNARGEN. In addition, this facility will facilitate compliance with Decree 43, Law 24 of 1995 on
Wildlife in Panama and Decree 25 of 2008 on ABS, which require duplicates of samples collected to be
deposited in the relevant reference collection.
Output 2.5 Database on biodiversity and natural products installed in ANAM.
53. A sophisticated, relational database will secure and enhance the flow of information among multiple
participants. This will store and permit full retrieval of information on collections of biodiversity, the
activity of samples in bioassays and chemical analyses. A database will be created in collaboration with
the Panamanian company Centauri. Such a database will have utility for ANAM as well as the Panama
ICBG participants. Non-confidential collection, bioassay and chemical data will be available to ANAM
and others. Young scientists will be trained in the design and use of the database. We envision that this
will be a “legacy” database, improving the capacity for bioprospecting within Panama, allowing ‘data
mining’ and having applications long after the data were initially collected and stored.
Component 3: Benefits shared with national parks and the Panamanian population
54. The positive impacts of the project on the conservation status of Panama’s biodiversity depend
largely on Government decision-makers and the public as a whole being aware of the magnitude of the
country’s biodiversity and its potential to generate diverse and sustainable benefits for the country. The
project will approach this on two levels: on one level it will contribute to converting the Coiba National
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Park into a nationally- and internationally-important resource for biodiversity exploration, biodiversity
education and biodiversity-related tourism, and on another it will invest in awareness-raising and
education on biodiversity nationwide.
Output 3.1 Enhanced trail system within Coiba National Park for use by scientists and tourists.
55. The Project proposes to carry out and promote scientific research in the Coiba National Park. At
present there is no information about trails in the Park, which makes a visit to the area and research very
difficult. Additionally, there is almost no infrastructure and this highly limits research in the region.
Therefore, the project will map and mark main at least 2 marine and/or terrestrial trails.
Output 3.2 INDICASAT scientific station strengthened in Coiba to facilitate scientific research
56. INDICASAT has recently been authorized to construct a scientific research station in Coiba. The
project will provide funds for the equipment of this station, in order to create conditions that allow
national and international scientists to carry out bioprospecting work. This will be directly linked to the
improvement of the marine trail system, which will be used by both scientists and tourists.
Output 3.3 Biological inventory based on the collections carried out by Panama ICBG
57. In the course of the biodiversity explorations to be carried out by the Panama ICBG in Coiba
National Park, duplicates of both flora and fauna will be collected and used as the basis for an inventory
of the park’s biodiversity. Plant samples will be deposited in herbaria in Panama, and when available,
duplicates will be sent to internationally recognized herbaria in the US and Europe. Microbial samples
will be stored in the GEF funded microbial bank (output 2.4).
Output 3.4 Public media campaign on the protection and uses of biodiversity and its genetic
resources in Coiba.
58. This campaign will include information on the uses and protection of the biodiversity of Coiba, and
will be conducted principally through the written media, radio and pamphlets. These materials will be
developed by ANAM in consultation with other relevant actors. The effectiveness of this campaign will
be measured through surveys of the attitudes and behaviour of visitors to Coiba at different moments in
the life of the project, and the focus of the campaign and content of the materials will be adjusted
accordingly, as necessary.
Output 3.5 Outreach presentations and activities explain the uses of biodiversity and its genetic
resources
59. The project will establish and implement an outreach program will provide talks for students of
primary and secondary schools, tourist guides, business groups, and local communities, on the concept of
bioprospecting, the importance of biodiversity and the potential that its sustainable use has to generate
benefits for the country. As such these talks also will develop capacity of non-scientists, including those
in local communities, to develop additional biodiscovery and conservation activities.
Output 3.6 24 Panamanian scientists trained on biodiscovery techniques in national and
international laboratories
60. The training of young Panamanian scientists will be one of the non-monetary benefits of the project
with most significance in the long term, as it will help to establish the solid human resource basis that the
country’s bioprospecting-related industries will require in order to grow and consolidate its international
prestige. The project will directly support the training of young Panamanian scientists in biodiscovery
techniques in Panamanian institutions as well as foreign laboratories. One measure of the growth in
scientific capacity in the country will be the publication of scientific papers co-authored by Panamanians,
reporting on this research, in internationally recognized journals: publishing in international journals is
the benchmark for modern science and is essential for recognition as a serious drug discovery program; it
also increases chances of attracting additional funding from national and international agencies.
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Component 4: Increase in national capacities on ABS
Output 4.1 Increased knowledge in Panamanian legislature of the potential benefits for the country
of prompt ratification of the Nagoya Protocol
61. Panama has yet to ratify the Nagoya Protocol, which is a key step for it to become a member of the
instrument and to commit to the provisions which it makes in relation to ABS. To this end, the project
will support the realization of two workshops and other meetings intended to inform members of
parliament, the Minister of External Relations, the Minister of Economy and Finance, the Ministry of
Commerce and Industry, and the aquatic resources authority and other relevant actors, of the potential
benefits (monetary and non-monetary) which ratification of the Protocol could bring to the country.
Output 4.2 Mechanisms and methodologies for ABS updated and in place clarifying rules and
procedures for ANAM and genetic resource users
62. ANAM has developed application forms for scientific research permits, for use by anyone
potentially utilizing genetic resources and their derivates for commercial or research purposes. These have
been used in a relatively effective manner to date, however they lack several types of information which
both ANAM and users need to be able to facilitate the processes of access and benefit distribution. For
this reason, it is proposed to develop two procedural manuals. The first, for ANAM, will set out clearly
the route taken by applications from the moment that they are presented until they are approved. The
users’ manual will include not only an updated application form but also a list of the requirements for the
application, an explanation of how to complete the application, the establishment of a system for tracking
the chain of custody for samples and derivates, through bar codes or other relevant mechanisms, examples
of framework agreements for benefit distribution, example of agreements for the transfer of materials and
examples of commitment letters that provide for the delivery of a report at the end of the collection,
research reports and other relevant aspects.
63. Article 17 of Executive Decree 25 provides for charges to be set for applications for access to
genetic resources with the aim of covering costs and promoting orderly access to the resources, taking
into account access with commercial, industrial and non-commercial ends, and in function of the quantity,
endemism or rarity of the species to be affected by the research. Additionally, Article 33 of the same
Executive Decree states that the charges for the provision or movement of genetic resources be set by
administrative resolution of the ANAM, according to the category of conservation, and will be reviewed
every two years or at the request of the Technical Advisory Group. This output will contribute to the
development of a methodology and proposal for charges, with the aim of executing the above provisions
of this decree.
64. Based on the experienced derived under the above output and other international bioprospecting
initiatives, a proposal of norms for the monitoring of bioprospecting projects will be developed, including
those with commercial aims as well as basic research initiatives of utility to UNARGEN. These norms
will be of utility for the identification and monitoring of bioprospecting projects aimed at identifying
products for the pharmaceutical, agricultural, food, agrochemical, textile, manufacturing and other related
industries, which use genetic resources or their derivates for the development of products or commercial
processes. The norms will take into account the different stages involved in the chain of custody of
samples and the derivates of the research process, and the utilization of these derivates for commercial or
research ends.
Output 4.3 5 staff members of ANAM trained in different stages of bioprospecting processes and in
negotiation of ABS agreements
65. The Unit for Access to Genetic Resources (UNARGEN) of ANAM is a pioneer in relation to the
regulation of genetic resources and the distribution of the benefits gained from these; however it still
requires additional experience with how to manage the different stages involved in the execution of a
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bioprospecting project. The Panama ICBG and ANAM will jointly define a plan of work under which at
least three ANAM staff members will receive training on the phases related to the process of collecting
field samples (including the need of new collections in the case that promising compounds are
discovered), the realization of bioassays, the identification of active compounds as well as other relevant
stages, in order to enable them to understand the complexity of the scientific research process. This
training will include details related to the type of technology used at each step, and the chain of custody
for the management of samples and products derived from the research process, which may involve both
Panamanian and foreign institutions.
66. This output will contribute to the capacity of UNARGEN for the negotiation of agreements on the
distribution of the benefits derived from the utilization of genetic resources. To this end, the project will
support at least two staff members of ANAM in a training process which will involve a course and
participation in a relevant international event developed by an organization with expertise in this subject.
This course will be held in Panama and as a result will also benefit other relevant Panamanian actors in
addition to the two ANAM staff members in question.
Key indicators, risks and assumptions
Risk
Level
Mitigation measures
Uncertainty of being able to recollect organisms if
greater quantities are required for pursuing
active compounds. If a microbe provides levels of
activity against disease targets, recollections may be
necessary to confirm activity and pursue purification
of the active compounds. Because of natural
fluctuations in microbial populations, habitat
destruction and climate change, microbes may
‘disappear’ from a site.
Medium Researchers will continue to check sites across
seasons, or to explore nearby sites in PAs. To
date, there has been a high level of success in
obtaining additional collections from the wild. In
order to mitigate the risk of this not being
possible, the project will establish a culturing
facility so that once collected from the wild,
cultures can be maintained in the laboratory, and
sufficient quantities can be grown for follow-up
analyses.
Uncertainty of governmental changes in policies.
In the 13 years that the Panama ICBG has been
active in Panama, there have been a number of
changes in the President, which is accompanied by
changes to personnel in institutions directly involved
with protected areas, permits and bioexploration.
Most of the major changes to the law and its
implementation regarding ABS have been installed,
which will reduce the vulnerability of the project’s
activities to political changes.
Low
Unforeseen changes in the levels and
attractiveness of threats to biodiversity, reducing
the effectiveness of ABS as a strategy for motivating
conservation.
Medium The project will raise awareness among decisionmakers of the full range and magnitude of the
benefits that can be generated from the
conservation and sustainable use of biodiversity,
compared to alternative activities that imply its
destruction, resulting in them allocating sufficient
resources to PAs to enable them to be protected
effectively against changing levels of threats.
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To address these uncertainties, the project
executors we will continue to communicate
closely with ANAM and UNARGEN (the
agencies in charge of protected areas and genetic
resources) in order to maintain an excellent
working relationship. Component 3 of the project
will specifically contribute to awareness among
decision makers (especially in Government)
regarding the value of biodiversity and the
importance of its conservation, and Component 4
will ensure that they are fully aware of and
involved in the formal agreements on ABS.
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Financial modality
67. The project will be jointly funded by the Government of Panama, the private sector (Panamanian and
US-based bioprospecting and bioassay companies) and Panamanian and US academic institutions. The
grant from the GEF Trust Fund will complement these investments in order to ensure the development of
institutional capacities, an enabling framework of policies, agreements and administrative instruments and
public awareness that will enable genetic resource-based businesses in Panama to be financially fully selfsustaining in the long term.
Cost-effectiveness
68. The core aspect of the project’s cost-effectiveness strategy is its focus on promoting public/private
sector partnerships, in the context of which the discovery process of nature-based products is considered
as a viable business and therefore subject to private sector investment once GEF funds have been used to
jump start the country’s to date limited biodiversity-based industry.
69. Alternative strategies considered but discarded on grounds of cost-effectiveness were as follows:
1) Emphasis on a “command and control” approach to biodiversity conservation. In the absence of
the kinds of evidence of the full range of benefits than can potentially be generated from genetic
resources, which the chosen approach will provide, continued efforts will be required to maintain
political support for the ongoing funding of biodiversity and PA conservation; furthermore,
conservation initiatives will lack public support at national and local level and will therefore
require disproportionately high levels of funding in order to be effective.
2) Exclusive public sector involvement. The public sector has vital roles to play in terms of
regulation and oversight, in order to ensure that bioprospecting and ABS agreements serve the
country’s best interests. It does not, however, have the mission or the levels of installed technical
facilities and marketing capacities that are required to realize the full potential benefits from
access to genetic resources, in a cost-effective manner.
Sustainability
70. Environmental sustainability will be ensured by the fact that the techniques to be used for
collecting will have negligible impacts on the biodiversity itself and will be carried out in strict
accordance with the stipulations of the permits issued by the ANAM. Furthermore, it is assumed, as a
central tenet of the project, that the benefits to be generated from the collection and testing of biodiversity
will have positive, albeit indirect, implications for the status of biodiversity by acting as motivations for
increased governmental investment in its conservation.
71. Financial sustainability; the project will create capacities in Panama for the establishment of highly
lucrative businesses based on the sustainable utilization of its genetic resources, the income from which
will be many times larger than the relatively small initial investment proposed under this project.
72. Institutional sustainability: the project will be closely integrated with national institutions from the
Government, academia and the private sector, who have been fully involved in the development of the
initiative and whose roles are well defined and clearly set out in the formalised agreements governing
ABS in the country. These will be regularly updated with support from the project in order to ensure their
relevance; furthermore, under Component 1 the project will generate lasting capacities in ANAM to
propose and negotiate any further modifications in these agreements the need for which may arise after
the project has ended.
73. Social sustainability: the biodiscovery activities proposed within the framework of the project will
be carried out in full compliance with the existing agreement and legislation in Panama regarding the
equitable distribution of the resulting benefits, which will contribute to the generation of positive
socioeconomic impacts for the country. The project will also support the development of capacities in the
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Government of Panama for the updating of ABS agreements as necessary, in order to ensure their
continued relevance.
Replicability
74. The ABS model which will be supported by this project, featuring host country empowerment, the
generation of concrete and immediate benefits in the form of employment and investment (instead of a
reliance on uncertain benefits through royalties) and public/private/academic sector partnerships that
combine effective oversight with business efficiency and scientific credibility, has the potential to be
replicated in numerous other biodiversity-rich developing countries. The model may need to be further
developed and refined in locations where, unlike the Coiba National Park, there are local communities
who own, use and/or depend on the genetic resources that are proposed to be subject to exploration and
development.
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III. PROJECT RESULTS FRAMEWORK:
This project will contribute to achieving the following Country Programme Outcome as defined in CPAP or CPD:
To elevate to the level of State policy the protection of the environment to strengthen economic growth, tourism development and wellbeing in general
Country Programme Outcome Indicators:
% of watersheds with management plans in operation
Primary applicable Key Environment and Sustainable Development Key Result Area (same as that on the cover page, circle one): 1. Mainstreaming environment and energy OR
2. Catalyzing environmental finance OR 3. Promote climate change adaptation OR 4. Expanding access to environmental and energy services for the poor.
Applicable GEF Strategic Objective and Program: Objective 4: Build Capacity on Access to Genetic Resources and Benefit Sharing
Applicable GEF Expected Outcomes: Outcome 4.1: Legal and regulatory frameworks, and administrative procedures established that enable access to genetic resources and benefit sharing in
accordance with the CBD provisions
Applicable GEF Outcome Indicators: Indicator 4.1: National ABS frameworks operational score as recorded by the GEF tracking tool (to be developed)
Indicator
Project Objective
The discovery of naturebased products for the
pharmaceutical and
agrochemical industries and
benefit sharing to promote
the sustainable use of
genetic resources in the
Protected Areas System of
Panama
Outcome 1: Discovering
active compounds for
pharmaceutical and
agrochemical uses from
terrestrial and marine
organisms in protected
areas and improvement of
the capacities of ANAM for
their monitoring
Outcome 2: Transfer of
technology and practices to
facilitate the discovery of
active compounds and the
sustainable use of
Baseline
Targets
End of Project
Source of
verification
Assumptions
Number of lead compounds for agrochemical and
pharmaceutical uses discovered during the project
period
0
1 lead compound
ICBG database
Compounds discovered
prove to show promise as
lead compounds
Number of highly active compounds for
agrochemical and pharmaceutical uses discovered
during the project period
Number of extracts tested in cancer, tropical
disease and agrochemical bioassays by the
Panama ICBG and by private sector partners
during the project period
Number of active compounds purified and their
structures and elucidated during the project period
Existence of guidance for the monitoring of
bioprospecting processes
0
10 highly active compounds
ICBG database
Compounds discovered
include highly active
compounds
0
2,500 extracted
ICBG database
0
50 active compounds
ICBG database
No formalized
guidance currently
available
ANAM is satisfied
with agreements
1 guidance document produced on
monitoring of bioprospecting
processes
ANAM is satisfied with
agreements
Document
Existing facilities at
STRI, INDICASAT
and the University of
Panama are limited,
with microbes being
Microbial bank and culturing
facilities installed in a
Panamanian institution
Adequacy of baseline agreements in relation to
results of project developments and the
biodiscovery process
Levels of installed capacities for collection,
culture and long-term storage of microbes
UNDP Environmental Finance Services
Letter(s) of
conformity from
ANAM
Inspection of
microbial bank and
culturing facilities
Continued commitment and
policy support in ANAM
Page 25
Indicator
biodiversity
Outcome 3: Benefits
shared with national parks
and the Panamanian
population
Targets
End of Project
Source of
verification
Assumptions
stored at room
temperature
Number of trails in Coiba National Park
Numbers of species collected from Coiba National
Park included in ICBG collection database
Increase in awareness among the Panamanian
population on the sustainable uses of biodiversity
of Coiba
Capacities among Panamanian scientists in
relation to biodiscovery
Outcome 4: Increased
national capacity on ABS
Baseline
Level of knowledge in Panamanian legislature of
the potential benefits for the country of prompt
ratification of the Nagoya Protocol
Capacity regarding bioprospecting processes in
ANAM
Level of capacity for negotiation of ABS
agreements in ANAM
Existence of guidance tools on ABS for ANAM
and genetic resource users
Existence of methodology for determining rates
for permits for access to genetic resources
UNDP Environmental Finance Services
0
2,000 species in 20082010 period
Quantitative baseline
to be determined at
project start up based
on surveys of visitors
to Coiba
143 scientists have
been trained to date
No legislators are
aware of the benefits
and intend to support
the ratification of the
Nagoya Protocol
No staff members
have in-depth
knowledge of
bioprospecting
processes in ANAM
0 ANAM staff
members with in-depth
familiarity with
processes of ABS
negotiation
0
Executive Decree 25
of April 2009 on ABS
2
500 additional species
Quantitative targets for mid term
and end of project to be
determined at project start up
based on surveys of visitors to
Coiba
- 20 additional young Panamanian
scientists have been trained in
biodiscovery
- 4 additional Panamanian
scientists have been trained in
foreign laboratories on
biodiscovery techniques
9 legislators are aware of the
benefits and intend to support the
ratification of the Nagoya
Protocol
Field inspection
Review of
database
Surveys of visitors
to Coiba
Records of training
events
Availability of committed
Panamanian scientists of
high calibre
Interviews with
legislators
Receptivity of legislators
3 ANAM staff members trained
in different stages of
bioprospecting processes
ANAM records
Continued commitment of
ANAM
2 ANAM staff members trained
in negotiation of ABS agreements
ANAM records
Continued commitment of
ANAM
Two manuals of procedures on
ABS have been produced for
ANAM and users (including
proposals for framework contracts
and formats for obtaining prior
informed consent)
Methodology has been defined for
determining rates for permits for
access to genetic resources
Manuals
Review of
methodology
document
Continued commitment of
ANAM
Page 23
IV. TOTAL BUDGET AND WORKPLAN
GEF Outcome/Atlas
Activity
Responsible
party
1. Discovering active
compounds for
pharmaceutical and
agrochemical uses from
terrestrial and marine
organisms in protected
areas
2. Transfer of
technology and
practices to facilitate
the discovery of active
compounds and the
sustainable use of
biodiversity
Source
of
funds
GEF
3. Benefits shared with
national parks and the
Panamanian population
4. Increased national
capacity on ABS
GEF
ERP/ATLAS
Budget
Description/
Input
Local Consultants
71300
Cont. Serv. - Individ
71400
Supplies
72500
Prof. Services
74100
Total Outcome Cost
Cont. Serv. - Individ
71400
Travel
71600
Cont. Serv. - Companies
72100
Equipment and Furniture
72200
Supplies
72500
Prof. Services
74100
Total Outcome Cost
Cont. Serv. - Individ
71400
Travel
71600
Cont. Serv. - Companies
72100
Equipment and Furniture
72200
Prof. Services
74100
Total Outcome Cost
International Consultants
71200
Travel
71600
Cont. Serv. - Companies
72100
Training
72700
Prof. Services
74100
Total
Project Management
GEF
Total
Totals by
source
Totals
UNDP Environmental Finance Services
GEF
Year 1
Year 2
Year 3
Total
Atlas Budgetary
Account Code
International Consultants
Travel
Cont. Serv. - Companies
Equipment and Furniture
Supplies
Prof. Services
71200
71600
72100
72200
72500
74100
US$
1,000
72,400
45,000
6,300
124,700
US$
1,000
72,400
36,000
6,300
115,700
US$
1,000
64,400
9,000
6,300
80,700
US$
3,000
209,200
90,000
18,900
321,100
72,600
6,000
60,000
9,000
20,000
6,300
173,900
34,100
2,000
9,000
10,000
6,300
61,400
20,000
1,000
15,000
19,000
7,300
62,300
3,000
1,500
1,000
7,200
12,700
435,000
72,600
72,600
217,800
6,000
6,000
18,000
17,000
7,000
84,000
9,000
16,000
13,400
49,400
6,300
6,300
18,900
117,900 105,300
397,100
24,100
18,100
76,300
2,000
2,000
6,000
9,000
6,000
24,000
10,000
6,300
6,300
18,900
41,400
32,400
135,200
10,000
30,000
1,000
15,000
3,000
4,000
26,000
7,300
7,300
21,900
20,300
11,300
93,900
7,800
7,800
15,600
1,000
1,000
2,000
3,000
3,000
9,000
1,500
1,000
1,000
3,000
7,200
7,200
21,600
20,000
20,000
52,700
315,300 249,700 1,000,000
1,368,800 1,368,800
684,400
3,422,000
1,803,800 1,684,100
934,100
4,422,000
Page 24
Summary of GEF budget by Atlas code
Atlas Budgetary Account Code
International Consultants
Local Consultants
Contractual Services - Individ
Travel
Contractual Services-Companies
Equipment and Furniture
Supplies
Training
Professional Services
ERP/ATLAS
Budget
Description/
Input
71200
71300
71400
71600
72100
72200
72500
72700
74100
Year 1
20,000
1,000
179,100
9,000
87,000
20,500
66,000
19,000
33,400
435,000
Year 2
17,800
1,000
169,100
9,000
29,000
53,000
3,000
33,400
315,300
Year 3
7,800
1,000
155,100
9,000
16,000
23,400
4,000
33,400
249,700
Total
45,600
3,000
503,300
27,000
132,000
20,500
142,400
26,000
100,200
1,000,000
Budget notes
Component
1. Discovering
active compounds
for pharmaceutical
and agrochemical
uses from organisms
in protected areas
Atlas category
Local consultants
Contractual Services Individ
Atlas
code
71300
Amount
3,000
71400
32,000
36,300
72,600
32,000
36,300
2. Transfer of
technology and
practices to facilitate
Supplies
72500
30,000
30,000
30,000
Professional Services
Contractual Services Individ
74100
71400
18,900
72,600
72,600
UNDP Environmental Finance Services
Explanation
Specialist in ABS agreements to support review of ABS agreements: 6 days @
$500/day
Salary of Director of INDICASAT for testing extracts in Panama: 32 months
@ $1,000/month
Salary of INDICASAT technican, 33 months @ $1,100 for testing extracts in
Panama
Salary of 2 STRI technicans, 33 months each @ $1,100 for making extracts in
Panama
Salary of Director of Natural Products Laboratory of the University of Panama
for purifying active compounds and elucidating structure: 32 months @
$1,000/month
Salary of University of Panama technican, 33 months @ $1,100 for for
purifying active compounds and elucidating structure
Supplies for INDICASAT for testing extracts in Panama
Supplies for STRI for testing extracts in Panama
Supplies for University of Panama for purifying active compounds and
elucidating structure
Part salary of project coordinator
Salary of 2 University of Panama technican, 33 months each @ $1,100
Salary of 2 INDICASAT technicans, 33 months each @ $1,100 for disease
bioassays
Page 25
Component
the discovery of
active compounds
and the sustainable
use of biodiversity
Atlas category
Travel
Contractual Services Companies
Atlas
code
71600
72100
Amount
72,600
18,000
40,000
35,000
9,000
3. Benefits shared
with national parks
and the Panamanian
population
4. Increased national
capacity on ABS
Equipment and Furniture
Supplies
72200
72500
Professional Services
Contractual Services Individ
74100
71400
Travel
Contractual Services Companies
Equipment and Furniture
71600
72100
Professional Services
International consultants
74100
71200
72200
9,000
24,000
25,400
18,900
5,000
5,000
36,300
30,000
6,000
15,000
9,000
5,000
5,000
18,900
10,000
10,000
10,000
Project management
Travel
Contractual Services Companies
71600
72100
1,000
5,000
Training
72700
10,000
10,000
Professional Services
74100
International consultants
71200
UNDP Environmental Finance Services
16,000
18,900
3,000
7,800
Explanation
Salary of 2 STRI and INDICASAT technicans, 33 months each @ $1,100, for
establishing and managing microbe bank
Travel of Panamian students and scientists for overseas training
Updating and maintenance of the Bruker Nuclear Magnetic Resonance
Spectrophotometer, housed at STRI
Data handling system among Panamanian institutions to harmonize
information transfer between national and international institution
Development of database on biodiversity and natural products database and
installation in ANAM
Cryostorage nitrogen tank for microbe bank
Supplies for STRI for microbial curations in microbe bank
Supplies for INDICASAT for microbial curations in microbe bank
Part of salary of Project Coordinator
Local labour for marine trails
Local labour for scientific station
Salary of STRI technician for maintenance of biological collection
Salary for outreach specialist
Travel to protected areas for biological inventory
Development of production of materials for public media campaign
Publication of scientific papers
Building materials and equipment for marine trails
Building materials and equipment for scientific station
Part salary of project coordinator
Specialist in monitoring of bio-prospecting for support to development of
norms and guidance for the monitoring of bio-prospecting processes: 20 days
@ $500/day
Specialist in ABS procedures and processes for support to development of two
manuals of procedures on ABS for ANAM and users
Development of methodology for determining rates for permits for access to
genetic resources
International trainer for negotiation of ABS agreements
Hire of meeting venues for raising awareness on ABS among members of
legislature
Hire of meeting venues and production of manuals on ABS procedures
Training of staff members of ANAM in different stages of bio-prospecting
processes
Training of staff members of ANAM in negotiation of ABS agreement
Part salary of project coordinator
Part salary of administrative assistant
External consultant for mid-term review
Page 26
Component
Atlas category
Atlas
code
Travel
71600
Contractual Services Companies
Equipment and Furniture
Supplies
Professional Services
72100
Amount
7,800
1,000
1,000
9,000
72200
72500
74100
1,500
3,000
21,600
UNDP Environmental Finance Services
Explanation
External consultant for final review
International travel for mid-term review consultant
International travel for final review consultant
Audit costs ($3000/year)
Computer and office equipment
Office consumables
Part salary of administrative assistant
Page 27
V.
MANAGEMENT ARRANGEMENTS
Implementation arrangements and responsibilities
75. The project will be executed by UNDP through the Direct Implementation (DIM) modality. Key
elements of the project implementation arrangements are as follows:
Project Board
76. The duration of the project would be 3 years. Implementation of the project will be carried out under
the general guidance of a Project Board (Steering Committee), specifically formed for this purpose. The
composition, responsibilities and rules of operation of the Board will be confirmed during its first
meeting. Subject to the decision of this meeting, it is proposed that the Board will be responsible for
approving the operational plans and annual reports of the project as well as the terms of reference and
appointments of key members of staff, and will be composed of representatives of the following:
- ANAM, as GEF focal point, which will function as Executive (chair) of the board.
- UNDP, as Senior Supplier, Implementing Agency and Executing Agency under the DIM
modality, who will provide guidance regarding the technical feasibility of the project.
- INDICASAT and STRI, as GoP and international members respectively of the Panama ICBG.
77. The Board will meet at least two times per year and in addition could be convened extraordinarily by
the Chair, on the request of individual members.
78. The Project Board will be responsible for making executive decisions for the project, in particular
when guidance is required by the Project Coordinator. The Project Board will play a critical role in
facilitating inter-ministerial coordination, project monitoring and evaluations by quality assuring these
processes and products, and using evaluations for performance improvement, accountability and learning.
It will ensure that required resources are committed and will arbitrate on any conflicts within the project
or negotiate a solution to any problems with external bodies. In addition, it will approve the appointment
and responsibilities of the Project Manager and any delegation of its Project Assurance responsibilities.
Based on the approved Annual Work Plan, the Project Board will also consider and approve the quarterly
plans and will also approve any essential deviations from the original plans.
79. In order to ensure UNDP’s ultimate accountability for the project results, Project Board decisions
will be made in accordance to standards that shall ensure management for development results, best value
for money, fairness, integrity, transparency and effective international competition. In case consensus
cannot be reached within the Board, the final decision shall rest with the UNDP.
National Project Director (NPD)
80. The NPD, to whom the Project Coordinator will report, will be the Director of INDICASAT, an
institution of the Government of Panama. The NPD will be responsible for orienting and advising the
National Project Coordinator on Government policy and priorities, for maintaining regular
communication with the lead institutions in relation to biodiversity in Panama, and ensuring that their
interests are communicated effectively to the National Project Coordinator.
Project Implementation Unit
81. Project implementation will be the responsibility in practice of a Project Implementation Unit (PIU),
led by a National Project Coordinator.
National Project Coordinator
82. The NPC will be responsible for implementing the project in operational, administrative and
financial terms, subject to oversight and monitoring by UNDP, the National Project Director and the
Project Board, and specifically the following (see Terms of Reference in Annex I):
UNDP Environmental Finance Services
Page 28
-
The implementation of project activities in accordance with Annual Budgets and Workplans and
Quarterly Plans, approved by UNDP and the Project Board as appropriate;
The delivery of the project outputs foreseen in the Project Document;
The achievement of project outcomes, in accordance with the indicator targets specified in the
project Strategic Results Framework;
The monitoring and evaluation of project impacts;
The effective participation of project partners and other stakeholders in project implementation,
in accordance with the project participation plan;
The conformity of project activities with national policies and priorities;
The effective, efficient and transparent use of project funds.
83. In addition to the specific positions underlined above, a series of sub-contracts will be necessary in
order to ensure and complement the technical capacity of the members of the PIU. These contracts will be
entered into in accordance with the guidelines of UNDP and terms of reference defined by the NPD,
during the first month of the implementation phase or annually, in accordance with the project’s work
plan. UNDP will provide GEF funds to the project partners for the purchase of goods and services. UNDP
will contract with STRI the purchase of scientific supplies and equipment for the Panamanian partners.
STRI will purchase and import the supplies and equipment using expedited procurement procedures at no
cost for the project.
UNDP
84. UNDP will provide Project Assurance, supporting the Project Board Executive by carrying out
objective and independent project oversight and monitoring functions.
Organizational structure of the project:
Project Board
Senior Supplier
and Executing
Agency (UNDP)
Director/a
Executive
Chair
General
(ANAM)
INDICASAT, STRI or
University of Panama
National Project Director
(INDICASAT)
National Project Coordinator
(full time)
Summary of the inputs to be provided by partners
Partner
ANAM
INDICASAT
Members of Panama ICBG (STRI,
INDICASAT, University of Panama)
UNDP Environmental Finance Services
Inputs
Provision of strategic orientation to project through participation in
PSC
Provision of strategic orientation to project through role of
INDICASAT Director as NPD
Responsible for technical aspects of project implementation subject to
coordination by NPC
Provision of strategic orientation to project through participation in
Page 29
Partner
Foreign academic collaborators
(University of California, Utah State
University and University of Connecticut)
Private sector
UNDP
Inputs
PSC
Natural products research, hosting Panamanian students and scientists
in US labs
Realization of bioassays, marketing, provision of supplies and
technical know-how to Panama, hosting of Panamanian visitors to
their labs
Implementing Agency, Executing Agency and Senior Supplier
Audit arrangements
85. The Government will provide the Resident Representative with certified periodic financial
statements, and with an annual audit of the financial statements relating to the status of UNDP (including
GEF) funds according to the established procedures set out in the Programming and Finance manuals.
The Audit will be conducted by a special and certified audit firm. UNDP will be responsible for making
audit arrangements for the project in communication with the Project Implementing Partner.
86. UNDP and the project Implementing Partner will provide audit management responses and the
Project Manager and project support team will address addit recommendatios.
87. As a part of its oversight function, UNDP will conduct audit spot checks at least two times a year.
Agreement on intellectual property rights and use of logo on the project’s deliverables
88. In order to accord proper acknowledgement to GEF for providing funding, a GEF logo should
appear on all relevant GEF project publications, including among others, project hardware and vehicles
purchased with GEF funds. Any citation on publications regarding projects funded by GEF should also
accord proper acknowledgment to GEF.
UNDP Environmental Finance Services
Page 30
VI. MONITORING FRAMEWORK AND EVALUATION
89. Project Monitoring and Evaluation (M&E) will be conducted in accordance with the established
UNDP and GEF procedures and will be provided by the project team and the UNDP Country Office
(UNDP-CO) with support from the UNDP/GEF Regional Coordination Unit (RCU) in Panama City. The
Project Results Framework provides performance and impact indicators for project implementation along
with their corresponding means of verification. The M&E plan includes an inception report, project
implementation reviews, quarterly and annual review reports, and mid-term and final evaluations. The
following sections outline the principle components of the M&E plan and indicative cost estimates related
to M&E activities. The project’s M&E plan will be presented and finalized in the Project Inception
Report following a collective fine-tuning of indicators, means of verification, and the full definition of
project staff M&E responsibilities.
Project Inception Phase
90. A Project Inception Workshop (IW) will be held within the first three (3) months of project startup with the full project team, relevant Government of Panama (GoP) counterparts, co-financing partners,
the UNDP-CO and representation from the UNDP-GEF RCU, as well as UNDP-GEF headquarters (HQs)
as appropriate. A fundamental objective of this IW will be to help the project team to understand and take
ownership of the project’s goal and objectives, as well as finalize preparation of the project's first annual
work plan on the basis of the project results framework. This will include reviewing the results
framework (indicators, means of verification, and assumptions), imparting additional detail as needed,
and on the basis of this exercise, drafting the Annual Work Plan (AWP) with precise and measurable
performance indicators, and in a manner consistent with the expected outcomes for the project.
Monitoring Responsibilities and Events
91. Day-to-day monitoring of implementation progress will be the responsibility of the Project
Coordinator based on the project's AWPB and its indicators. The Project Coordinator 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 will finetune the progress and performance/impact indicators of the project in consultation with the full project
team at the IW with support from UNDP-CO and assisted by the UNDP-GEF RCU. 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 AWPB. Targets and indicators for
subsequent years will be defined annually as part of the internal evaluation and planning processes
undertaken by the project team.
92. Periodic monitoring of implementation progress will be undertaken by the UNDP CO through
quarterly meetings with the project implementation team, or more frequently as deemed necessary. This
will allow parties to take stock of and to troubleshoot any problems pertaining to the project in a timely
fashion to ensure the timely implementation of project activities. The UNDP CO and UNDP-GEF RCU,
as appropriate, will conduct yearly visits to the project’s field sites, or more often based on an agreed
upon schedule to be detailed in the project's Inception Report/AWPB to assess first-hand project progress.
Any other member of the Steering Committee can also take part in these trips, as decided by the Steering
Committee. A Field Visit Report will be prepared by the UNDP CO and circulated no less than one
month after the visit to the project team, all Steering Committee members, and UNDP-GEF.
93. Annual monitoring will occur through the Tripartite Committee (TPC) Reviews. This is the highest
policy-level meeting of the parties directly involved in the implementation of the project. The project will
be subject to TPC review at least once every year. The first such meeting will be held within the first
twelve (12) 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 TPC for review and comments.
94. The Terminal TPC Review is held in the last month of project operations. The Project Coordinator
is responsible for preparing the Terminal Report and submitting it to UNDP-CO and to UNDP-GEF
RCU. It shall be prepared in draft at least two months in advance of the TPC meeting in order to allow
review, and will serve as the basis for discussions in the TPC meeting. The terminal TPC 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
as a vehicle through which lessons learned can be captured to feed into other projects being implemented.
Project Monitoring Reporting
95. The Project Coordinator, in conjunction with the UNDP-GEF extended team, will be responsible for
the preparation and submission of the following reports that form part of the monitoring process and that
are mandatory. A Project Inception Report (IR), which will be prepared immediately following the IW.
It will include a detailed First Year/AWP divided in quarterly timeframes detailing the activities and
progress indicators that will guide implementation during the first year of the project. The Annual
Project Report (APR) is a UNDP requirement and part of UNDP CO central oversight, monitoring, and
project management. An APR will be prepared on an annual basis prior to the TPC Review, to reflect
progress achieved in meeting the project's AWP and assess performance of the project in contributing to
intended outcomes through outputs and partnership work. The Project Implementation Review (PIR) is
an annual monitoring process mandated by the GEF. It has become an essential management and
monitoring tool for project managers and offers the main vehicle for extracting lessons from ongoing
projects. The PIR can be prepared any time during the year and ideally prior to the TPC review.
Quarterly Progress Reports outlining main updates in project progress will be provided quarterly to the
local UNDP CO and the UNDP-GEF RCU by the project team. Progress made shall be monitored in the
UNDP Enhanced Results Based Management Platform and the risk log should be regularly updated in
ATLAS based on the initial risk analysis included in the Project Document.
96. A Project Terminal Report will be prepared by the project team during the last three months of the
project. This comprehensive report will summarize all activities, achievements, and outputs of the project;
lessons learned; 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. Reporting may also include
Independent Evaluation
97. An independent Mid-Term Evaluation will be undertaken at exactly the mid-point of the project
lifetime. 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, ToRs, and timing of the mid-term evaluation will be decided after
consultation between the parties to the project document. The ToRs for this Mid-Term Evaluation will be
prepared by the UNDP-CO based on guidance from the UNDP-GEF RCU. The management response of
the evaluation will be uploaded to the UNDP corporate systems, in particular the UNDP Evaluation
Office Evaluation Resource Center (ERC).
98. An independent Final Evaluation will take place three months prior to the terminal Steering
Committee 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 and requires a management response which should be uploaded
to PIMS and to the UNDP Evaluation Office Evaluation Resource Center (ERC). The ToRs for this
evaluation will be prepared by the UNDP-CO based on guidance from the UNDP-GEF RCU.
99. The indicative M&E work plan and budget is as follows:
Type of M&E
activity
Inception Workshop
Inception Report
Measurement of
Means of
Verification of
project results
Measurement of
Means of
Verification for
Project Progress and
Performance
(measured on an
annual basis)
ARR and PIR
Tripartite
Committee Reviews
and Reports
Steering Committee
Meetings
Responsible Parties
Project Coordinator
UNDP CO
UNDP GEF
Project Team
UNDP CO
UNDP GEF Regional Technical
Advisor/Project Coordinator will
oversee the hiring of specific studies and
institutions, and delegate responsibilities
to relevant team members
Oversight by Project Coordinator
Project Team
Project Coordinator and Team
UNDP-CO
UNDP-GEF
GoP counterparts
UNDP CO
UNDP GEF RCU
Project Coordinator
UNCP-CO
GoP representatives
Budget US$*
3,000 CF
None
Time frame
Within first two
months of project
start-up
Immediately
following IW
To be determined
during the initial phase
of implementation of
the project and the IW.
Start, mid-point, and
end of project
No separate M&E
cost: to be absorbed
within salary and
travel costs of project
staff
Annually prior to
ARR/PIR and to the
definition of annual
work plans
None
Annually
None
Annually, upon
receipt of APR
Two times per year
Quarterly progress
reports
Project Coordinator and Team
None
Quarterly
Technical reports
Project Coordinator and Team
None
To be determined by
Project Team and
UNDP-CO
Terminal Report
Project Coordinator and Team
UNDP- CO
UNDP-GEF RCU
External Consultants (i.e., evaluation
team)
Project Coordinator and Team
UNDP- CO
UNDP-GEF RCU
External Consultants (i.e. evaluation
team)
Project Team
UNDP-CO
Lessons learned
Project Coordinator and Team
Mid-term Evaluation
Final Evaluation
International
consultant 7,800
Travel 1,000
International
consultant 7,800
Travel 1,000
None
At the mid-point of
project
implementation
At least three months
before the end of
project
implementation
At least three months
before the end of the
project
Yearly
Audit
Visits to field sites
UNDP-GEF RCU (suggested formats
for documenting best practices, etc)
UNDP-CO
Project Coordinator and Team
UNDP-CO
UNDP-GEF RCU (as appropriate)
GoP representatives
TOTAL INDICATIVE COST (*Excluding project team staff
time and UNDP staff and travel expenses)
9,000
No separate M&E
cost: paid from IA fees
and operational budget
GEF
26,600
CoF
3,000
29,600
Total
Yearly
Yearly
VII. LEGAL CONTEXT
100. This document together with the CPAP signed by the Government and UNDP which is incorporated
by reference constitute together a Project Document as referred to in the SBAA [or other appropriate
governing agreement] and all CPAP provisions apply to this document.
101. Consistent with the Article III of the Standard Basic Assistance Agreement, the responsibility for the
safety and security of the implementing partner and its personnel and property, and of UNDP’s property
in the implementing partner’s custody, rests with the implementing partner.
102. The implementing partner shall:
put in place an appropriate security plan and maintain the security plan, taking into account the
security situation in the country where the project is being carried;
b) assume all risks and liabilities related to the implementing partner’s security, and the full
implementation of the security plan.
103. UNDP reserves the right to verify whether such a plan is in place, and to suggest modifications to
the plan when necessary. Failure to maintain and implement an appropriate security plan as required
hereunder shall be deemed a breach of this agreement.
a)
104. The implementing partner agrees to undertake all reasonable efforts to ensure that none of the UNDP
funds received pursuant to the Project Document are used to provide support to individuals or entities
associated with terrorism and that the recipients of any amounts provided by UNDP hereunder do not
appear on the list maintained by the Security Council Committee established pursuant to resolution 1267
(1999). The list can be accessed via http://www.un.org/Docs/sc/committees/1267/1267ListEng.htm. This
provision must be included in all sub-contracts or sub-agreements entered into under this Project
Document.
VIII.
ANNEXES
Annex I. Terms of Reference:
1) National Project Coordinator
-
-
-
Coordination of Project activities in accordance with Annual Work Plans and Budgets (AWPBs).
Supervision of the activities of the technical personnel of the project, thereby guaranteeing their
relevance, effectiveness and efficiency
Preparation of terms of reference for external consultants contracted by the project, the
supervision and coordination of their work and the review and approval of their products.
Ensure that the project is executed with the full participation of local actors and that mechanisms
exist to ensure that their interests are taken into account, communicated and reflected in the
implementation of the project.
Promote the coordinated participation of Government institutions and key partners, at national
and local levels, in the implementation of the project.
Continuous and periodic monitoring of the impacts of the project, in relation to the advances
foreseen in the AWPBs and the impacts foreseen in the project results framework.
In communication with the NPD, ensure that the Project is executed in accordance with the
policies and plans of the ANAM
In communication with the Programme Office of UNDP, ensure that the project is executed in
accordance with the United Nations Development Assistance Framework (UNDAF) in Panama.
Identification and promotion of opportunities for actions of other agencies of the United Nations
system.
Ensure the incorporation of a cross-cutting gender focus in the actions of the project.
Together with UNDP, prepare Project Implementation Reviews (PIRs) detailing the progress of
the project, to be presented to GEF.
Together with UNDP and the project team, and in discussion with local stakeholders, prepare
AWPBs for approval by the NSC and the GEF.
With the support of the administrative team of the project, ensure the efficient and transparent
execution of financial and physical resources, in conformity with the norms of the Government,
GEF and UNDP.
Design and implementation of plans of professional development for the members of the Project
Implementation Unit.
Identification of the risks that could affect the achievement of the impacts foreseen by the project,
and the definition and application of corresponding mitigation strategies.
Support to the functioning of the PSC, through the provision of advice and logistics.
Preparation and supervision of the application of operations manuals for the implementation of
the Project.
Organization and support of external evaluations of the project.
Preparation of quarterly reports (QORs) in English, of no more than 150 words, on the progress
of the project
Any other tasks that may be assigned to him/her and are compatible with the nature or his/her
post.
2) Administrative Assistant
-
Manage the economic and financial resources assigned to the project, under the direction of the
Project Coordinator, in close coordination with the ANAM and UNDP
Assist the Coordinator in the different activities involved in the implementation of the project.
-
Support the monitoring and evaluation of the implementation of the project.
Provide logistic support for the execution of activities.
Facilitate coordination with UN agencies and participating national institutions
Provide administrative support to the contracting of personnel for the Project, as required
Assist in the process of procurement of goods and services within the framework of the project
Assist in the presentation of financial, administrative, audit and other reports, as necessary
Generate a database of contacts, providers, personnel and documentation.