INTERNATIONAL TROPICAL TIMBER ORGANIZATION

ITTO

PROJECT PROPOSAL

TITLE: BOOSTING INVESTMENTS IN THE PROCESSING AND MARKETING OF FOREST PRODUCTS IN ATALAYA

SERIAL NUMBER: PD 671/12 Rev.1 (I)

COMMITTEE: FOREST INDUSTRY

SUBMITTED BY: GOVERNMENT OF PERU

ORIGINAL LANGUAGE: SPANISH

SUMMARY

The province of Atalaya, in the Ucayali Region, Peru, has an area of 3,892,443 ha of primary tropical forests, of which 1,329,150 ha are under forest concessions and more than 1 million hectares belong to indigenous communities. The new Atalaya – Puerto Ocopa road provides direct access to the forest resources of the Lowland Forest (Selva Baja) from Lima through the province of Atalaya, thus reducing transport costs. This is promoting the disorderly installation of forest product processing plants, mainly sawmills, in the city of Atalaya. It is estimated that approximately 30% of Pucallpa sawmills will be transferred to Atalaya. In addition, new investments are being planned for the area given its direct access to the important market of Lima. This project will contribute to boosting investments in the harvesting, processing and marketing of forest products in Atalaya in an organized, eco-efficient, socially responsible and commercially competitive manner through the establishment of a Forest Industrial Park in Atalaya (Parque Industrial Forestal de Atalaya - PIFA), including commercial, financial and technical services as well as services provided by the institutions in charge of forest monitoring. Furthermore, the development of a higher-value-added forest industry will be promoted through the adoption of technological improvements and the provision of technical assistance and training to forest industrialists established in the PIFA. In addition, an on-line information system will be established to facilitate marketing and an autonomous, participatory and integrated PIFA management model will be developed to be implemented by PIFA users and key forest sector stakeholders in Atalaya.

EXECUTING AGENCY HELVETAS SWISS INTERCOOPERATION

COLLABORATING AGENCIES

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DURATION 24 MONTHS

APPROXIMATE STARTING DATE UPON APPROVAL BUDGET AND PROPOSED SOURCES OF FINANCE:

Source Contribution in US$

ITTO 993,438

Gov't of Peru (DGFFS, Regional Gov't of Ucayali and Municipality of Atalaya)

129,000

HELVETAS Swiss Intercooperation 152,078

TOTAL 1,274,516

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TABLE OF CONTENTS

PROJECT BRIEF ...............................................................................................................................................4

LIST OF ABBREVIATIONS AND ACRONYMS .................................................................................................6

MAP OF PROJECT AREA .................................................................................................................................7

PART 1. PROJECT CONTEXT ....................................................................................................................... 10

1.1 ORIGIN.............................................................................................................................................. 10

1.2 RELEVANCE..................................................................................................................................... 10

1.2.1 Conformity with ITTO's objectives and priorities........................................................................ 10

1.2.2 Relevance to the submitting country's policies .......................................................................... 12

1.3 TARGET AREA................................................................................................................................. 13

1.3.1 Geographic location ................................................................................................................... 13

1.3.2 Social, cultural, economic and environmental aspects.............................................................. 13

1.4 EXPECTED OUTCOMES AT PROJECT COMPLETION ................................................................ 16

PART 2. PROJECT RATIONALE AND OBJECTIVES.................................................................................... 17

2.1 RATIONALE...................................................................................................................................... 17

2.1.1 Institutional set-up and organizational issues............................................................................ 17

2.1.2 Stakeholder analysis.................................................................................................................. 18

2.1.3 Problem analysis........................................................................................................................ 19

2.1.4 Logical Framework Matrix.......................................................................................................... 23

2.2 OBJECTIVES.................................................................................................................................... 25

2.3 Development objective and impact indicators ............................................................................... 25

2.2.2 Specific objective and outcome indicators................................................................................. 25

PART 3. DESCRIPTION OF PROJECT INTERVENTIONS ........................................................................... 27

3.1 OUTPUTS AND ACTIVITIES............................................................................................................ 27

3.1.1 Outputs....................................................................................................................................... 27

3.1.2 Activities ..................................................................................................................................... 28

3.2 IMPLEMENTATION APPROACHES AND METHODS .................................................................... 29

3.2.1 Considerations for the PIFA Management Model...................................................................... 30

3.3 WORK PLAN..................................................................................................................................... 32

3.4 BUDGET ........................................................................................................................................... 34

3.4.1 Master budget ............................................................................................................................ 34

3.4.2 Consolidated budget by component .......................................................................................... 42

3.4.3 ITTO budget by component ....................................................................................................... 44

3.4.4 Executing agency budget by component................................................................................... 45

3.5 ASSUMPTIONS, RISKS AND SUSTAINABILITY ............................................................................ 46

3.5.1 Assumptions and risks ............................................................................................................... 46

3.5.2 Sustainability.............................................................................................................................. 47

PART 4. IMPLEMENTATION ARRANGEMENTS .......................................................................................... 48

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4.1 ORGANIZATION STRUCTURE AND STAKEHOLDER INVOLVEMENT MECHANISMS .............. 48

4.1.1 Executing agency and partners ................................................................................................. 48

4.1.2 Project management team......................................................................................................... 49

4.1.3 Project Steering Committee....................................................................................................... 49

4.1.4 Stakeholder involvement mechanisms ...................................................................................... 49

4.2 REPORTING, REVIEW, MONITORING AND EVALUATION .......................................................... 49

4.3 DISSEMINATION AND MAINSTREAMING OF PROJECT LEARNING .......................................... 50

4.3.1 Dissemination of project results................................................................................................. 50

4.3.2 Mainstreaming of project learning.............................................................................................. 50

ANNEX 1. Profile of the executing agency...................................................................................................... 51

ANNEX 2. Tasks and responsibilities of key experts provided by the executing agency ............................... 53

ANNEX 3. Terms of reference of personnel, consultants and sub-contracts funded by ITTO........................ 54

ANNEX 4. Curricula Vitae of HELVETAS Swiss Intercooperation's Pool of Experts ...................................... 57

ANNEX 5. Statement signed by Atalaya stakeholders during the participatory development of the project proposal ........................................................................................................................................................... 65

ANNEX 6. Images of the workshop held on 3 May 2012 for the participatory development of the project proposal ........................................................................................................................................................... 66

ANNEX 7. Overall assessment and specific recommendations of the 44th Expert Panel and corresponding modifications.................................................................................................................................................... 67

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PROJECT BRIEF The great forest resource potential of the province of Atalaya, in the Ucayali Region, Peru, is contained in an area of 3,892,443 ha of primary tropical forests, of which 1,329,150 ha are under forest concessions and more than 1 million hectares belong to indigenous communities. The new Atalaya – Puerto Ocopa road now provides direct access to the important market of Lima, thus reducing transport costs. This has promoted the disorderly installation of forest product processing plants, mainly sawmills, in the city of Atalaya. It is estimated that approximately 30% of Pucallpa sawmills will be transferred to Atalaya. In addition, new investments are being planned for the area. In view of this, the Municipality of Atalaya and local stakeholders have agreed on the need to launch a process of organization of forest activities in the province and to that end, they have proposed to implement this project with the development objective of contributing to increasing the living standards of the local and indigenous communities of Atalaya by generating increased income as a result of the organized development of the local forest industry, and the specific objective of boosting investments in forest product harvesting, processing and marketing in Atalaya in an organized, efficient, socially responsible and commercially competitive manner. By the end of the project, the following is expected to be achieved: forest concession companies will be processing their products in formally established industrial mills in the Atalaya Forest Industrial Park in an organized manner, giving higher value added to their products and accessing markets with the support of marketing services; indigenous communities will be able to negotiate the sale of their forest products in a transparent manner with established and organized timber processing companies in the Atalaya province; workers will have formal employment with forest companies; the communities will have improved their income levels after the reactivation of the economy through a well-managed forest industry; indigenous community leaders, concessionaires, industrialists, professionals and government agencies will have been trained and will be actively participating in improving forest resource harvesting and processing techniques in the Atalaya region; and forest concessions, industries and indigenous communities will have initiated processes to achieve voluntary forest certification, which will facilitate the achievement of a socially responsible, economically viable and environmentally sustainable management of forest resources. The project target area will cover approximately 2,329,150 ha of primary forests in the province of Atalaya, comprising forest concessions, indigenous communities and private properties, where forest product harvesting is permitted by law. The project will directly benefit indigenous communities, indigenous organizations, concession holders, industrialists, transport operators and the Municipal Government of the Province of Atalaya. Expected project outputs are: (1) The Forest Industrial Park of Atalaya (Parque Industrial Forestal de Atalaya – PIFA) has been scaled, designed and established through a municipal ordinance in the Province of Atalaya; (2) A PIFA management model has been developed and implemented, integrating it into the State services (DGFFS, OSINFOR, SUNAT and Ministries of Production and Labour) and technical assistance has been provided in support of forest harvesting and forest industry development in Atalaya; (3) Financial and commercial services have been established in Atalaya for the development of forest product harvesting and processing; and (4) The capacities of producers, industrialists, organizations and authorities for sustainable harvesting, processing and marketing of forest products have been strengthened. The implementation approaches and methods to be used for the achievement of project objectives will include the following: ●Participatory approach, which will include the strengthening of local organizations involved in forest product harvesting and processing, as well as local authorities in their efforts to create a consultation platform among interested groups, and to this end, consultation processes will be developed with representatives of the organizations of indigenous communities, forest concessionaires, industrialists and organized civil society groups for decision-making processes. ●Multidisciplinary approach: a multidisciplinary team will be set up, including experts in the environmental, forestry, economic, social and legal fields. ●Building of synergies: The project will be focused on building synergies with local and regional institutions to strengthen actions and avoid duplication of efforts. ●Social equity approach (including gender issues): The project will seek to ensure the participation of different social groups, particularly indigenous communities. Furthermore, the project will promote the equitable participation of men and women in the decision-making processes in participatory and administration mechanisms, both within the project structure and those structures to be created through project activities, on the basis of their

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respective capacities. In addition, the project will promote the equitable participation of both men and women in the training courses to be held as part of the project implementation strategy. In order to ensure project sustainability, an autonomous and participatory PIFA management model will be promoted integrating PIFA users and key forest sector stakeholders in Atalaya. To ensure the smooth functioning of the PIFA, it will be necessary to develop a clear set of regulations covering all aspects required by law. The industrial plants to be installed in the Atalaya Forest Industrial Park should be allocated to local producers and organizations through a transparent procedure, according to pre-established rules and guidelines to be stipulated following a public tender process. In general terms, a potential risk that has been identified is that the main project beneficiaries, industrialists, concessionaires and indigenous communities may believe that they are not equitably taken into consideration by the project. This could result in a loss of motivation to continue participating in project activities, thus reversing the progress made to date. In order to avoid this risk, participatory activities have been included as part of each of the project outputs so as to ensure that key project stakeholders and beneficiaries can participate in the design of the outputs. The following assumptions have been considered: ●The Government of Peru has a policy aimed at the development of the forest sector; ●The Regional and Local Governments are interested in participating in the project; and ●The organizations of indigenous communities, concessionaires and industrialists support the project. The budget requested from ITTO for the achievement of project objectives has been estimated at US$ 993,438.00, while the contribution of the Peruvian Government will be US$ 129,000.00 and other sources’ contributions will amount to US$ 152,078.00. Thus, the overall budget required for this project is US$ 1,274,516.00.

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LIST OF ABBREVIATIONS AND ACRONYMS

Acronym Meaning /Definition

AIDESEP Asociación Interétnica para el Desarrollo de la Selva del Perú (Inter-Ethnic Association for Forest Development in Peru)

CORPIAA Coordinadora Regional de Pueblos Indígenas de AIDESEP de Atalaya (Regional Indigenous Peoples Coordinating Council of AIDESEP in Atalaya)

DFFS Dirección Forestal y de Fauna Silvestre del Gobierno Regional (Forest and Wildlife Directorate of the Regional Government)

DGFFS Dirección General Forestal y de Fauna Silvestre (General Forest and Wildlife Directorate)

GHG Greenhouse gas INEI Instituto Nacional de Estadística e Informática (National Institute of Statistics and

Information Technology - PERU) ITTA International Tropical Timber Agreement ITTO International Tropical Timber Organization LD Legislative Decree LG(s) Local Government(s) NGO Non-government organization OSINFOR Organismo Supervisor de los Recursos Forestales (Agency for the Supervision

of Forest Resources) PIFA Parque Industrial Forestal de Atalaya (Forest Industrial Park of Atalaya) PIP Public Investment Project RG(s) Regional Government(s) SUNAT Superintendencia National de Administración Tributaria (National Tax

Administration Authority) UNFCCC United Nations Framework Convention on Climate Change URPIA Unión Regional de Pueblos Indígenas de Atalaya (Regional Union of Indigenous

Peoples of Atalaya) WWF World Wildlife Fund

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MAP OF PROJECT AREA

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Satellite imagery map of forests in the province of Atalaya

The analysis of satellite images of forests in the province of Atalaya shows physiognomic features that reflect good conservation status. Harvesting in these forests has focused on high commercial value floating timber species, which account for less than 1 m3/ha; thus, the conservation status of these forests in terms of their structure is also good. The following table, based on the satellite imagery map of forests in the province of Atalaya, shows that harvestable forests cover an area of 3,167,734 ha and less than 5% has been deforested for agricultural purposes and need to be restored.

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Forest type Acronym

(Sp) Area (ha)

% Forestry potential

Low terrace tropical moist forest BHTTB 81,936 2.10 Harvesting

Low terrace tropical moist forest with bamboo BHTTBB 24,550 0.63 Harvesting Medium-height terrace tropical moist forest BHTTM 125,651 3.23 Harvesting High terrace tropical moist forest BHTTA 134,076 3.44 Harvesting Hillock tropical moist forest BHTL 65,826 1.69 Harvesting Low hill tropical moist forest BHTCB 741,918 19.06 Harvesting Low hill tropical moist forest with bamboo BHTCBB 1,672,112 42.96 Harvesting High hill tropical moist forest BHTCA 187,299 4.81 Harvesting High hill tropical moist forest with bamboo BHTCAB 134,366 3.45 Harvesting Hydromorphic tropical moist forest BHTH 8,472 0.22 Protection Low flood terrace tropical moist forest BHTTBI 80,821 2.08 Protection Montane moist forest BHM 384,907 9.89 Protection Agricultural lands /Secondary forests AA 190,136 4.88 Restoration Islands 13,043 0.34 Protection Lagoons 4,238 0.11 Protection Rivers 43,093 1.11 TOTAL 3,892,443 100.00

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PART 1. PROJECT CONTEXT 1.1 ORIGIN The construction of the Puerto Ocopa - Atalaya road was completed in 2011. This road gives direct access to the lowland rainforest region from Lima through the city of Atalaya, thus facilitating access to forest resources, particularly timber, from a location that is approximately 200 km closer than Pucallpa. This is promoting the disorderly installation of forest product processing plants, particularly sawmills, in the city of Atalaya. The timber from the upper and lower Ucayali river basins and the lower Tambo river basin was previously transported by river to the city of Pucallpa, where it was processed and then transported to Lima by road. With the construction of the new road, it will not be necessary to transport this timber to Pucallpa, as it can be transported directly to Lima through Atalaya, thus reducing transport costs. In view of this, it is estimated that around 30% of Pucallpa sawmills will be transferred to Atalaya. In addition, new investments are being planned in the area given its direct access and shorter distance to the important market of Lima. To analyze the problem of the disorderly installation of forest processing plants in Atalaya and the resulting chaos this has caused in the city, and to consider actions to be taken in relation to the imminent investment inflow in this sector in Atalaya, the Provincial Municipality of Atalaya organized a workshop on 3 May 2012 with the participation of all stakeholders concerned. It was agreed that a Forest Industrial Park should be established to ensure the organized installation of processing plants and also to take actions aimed at the integration of the forest production value chain and the strengthening of producers' capacities to improve product quality. It was also agreed to take measures to upgrade forest harvesting, processing and marketing methods with the introduction of low-impact techniques, higher value-added production and on-line product marketing systems. Based on the results of this workshop, HELVETAS Swiss Intercooperation was entrusted with the development of a project proposal to be submitted to ITTO as an international organization involved in guiding forest product harvesting, processing and marketing. The results have been incorporated in this project document and are hereby submitted to the competent cooperation agencies for consideration in agreement with the Provincial Municipality of Atalaya. 1.2 RELEVANCE 1.2.1 Conformity with ITTO's objectives and priorities 1.2.1.1 Compliance with ITTA 2006 objectives This project is consistent with the objectives of the International Tropical Timber Agreement 2006 as it will contribute to sustainable development and poverty alleviation, as well as the development of mechanisms for the provision of new and additional financial resources with a view to promoting the adequacy and predictability of funding and technical expertise needed to enhance the capacity of producer members to attain the objectives of the ITTA. Moreover, the project will contribute to objective (i) by promoting increased and further processing of tropical timber from sustainable sources in producer member countries, with a view to promoting their industrialization and thereby increasing their employment opportunities and export earnings. In addition, the project is related to objectives (m) by encouraging members to develop national policies aimed at sustainable utilization and conservation of timber producing forests, and maintaining ecological balance, (p) by promoting access to, and transfer of, technologies and technical cooperation, and (r) by encouraging members to recognize the role of forest-dependent indigenous and local communities in achieving sustainable forest management and develop strategies to enhance the capacity of these communities to sustainably manage tropical timber producing forests.

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1.2.1.2 Compliance with ITTO Action Plan 2008-2011 This project is relevant to the work of ITTO Technical Committees:

Forest Industry Outcome 1: The project is consistent with actions (a) Promote investments in timber-processing industries by taking steps to: develop a sound balance between sustainable timber production and the processing capacity of the timber industry, based on timber-supply and demand studies and other relevant information; attract private capital; and facilitate joint ventures to make optimal use of both public and private financial resources; (b) Develop forest industry sector planning; (c) Develop policies and implementation capacities to increase supplies of legally traded timber; and (e) Develop and implement strategies to help industry adapt to and meet technical and environmental standards in various markets. Outcome 2: The project is in line with the following actions: (a) Encourage and support improved utilization efficiency, the increased use of wood residues, and recycling; and (b) Implement appropriate forest harvesting, including RIL, as a component of SFM.

Economic information and market intelligence Outcome 3: The project is related to action (a) Provide relevant data in a timely and complete manner to ITTO; and action (g) as it will supply accurate information and data on timber production and market potential for timber from the Atalaya area. In addition, the project is consistent with actions (h1) Undertake marketing trials, test marketing methods and evaluate opportunities for lesser used species and non-timber forest products; and (h2) Compile and make available market information on lesser-used species and non-timber forest products. Outcome 4: The project is in line with the following actions: (b) Develop awareness of progress made in implementing SFM and of the increased availability of tropical timber from sustainably managed and legally harvested sources. (e) Provide and share information on country-level experiences with certification. (f) Provide targeted support to assist community and small-scale producers and industries to achieve certified status.

Reforestation and forest management The project will promote and develop forest environmental services in its area of action so as to increase the economic attractiveness of maintaining the forest resource base. Furthermore, the role of forest-dependent indigenous and local communities in securing the tropical forest base is acknowledged. Outcome 5: Actions relevant to this project are described below: (f) Identify and implement innovative and socially sound interventions that contribute to poverty alleviation and improved livelihoods for forest-dependent people while securing the tropical timber resource base. Apart from being relevant to the specific work of the Technical Committees, the project is also consistent with cross-cutting actions such as:

Research and development and technology transfer The project will consider the support of research and development studies and projects to improve understanding of the marketplace, efficient product processing, industrial and community utilization, the valuation and trade of forest goods and services, and better forest management in general.

Communication and outreach The project envisages an outreach strategy to disseminate the information produced among primary, secondary and tertiary stakeholders. Raising awareness among local communities is also an important element in the project.

Strengthening of databases and information systems The project will expand the ITTO knowledge base on tropical timber trade and SFM, information systems and general databases, and will facilitate access to these. In addition, it will support the sharing of information, knowledge and technology with a view to improving SFM, product processing and utilization, and understanding of the marketplace as related to ITTO's priorities.

Capacity building The project will contribute to human resource development by conducting national, regional and international training activities and by supporting institutional strengthening. In addition, it will strengthen cross-sectoral approaches linking government, industry, trade and civil society, and will enhance the capacity of forest-dependent indigenous and local communities to sustainably manage tropical timber-producing forests and

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engage in viable forest enterprises, including through the improvement of linkages with the trade and government sectors. 1.2.2 Relevance to the submitting country's policies This project is framed within the context of the national policies for the legal and regulatory management of the country. It is aimed at contributing to the improvement of the living standards of the communities living in forest areas and mitigating climate change effects through the implementation of activities to reduce emissions from deforestation and forest degradation, and as such, it is consistent with national environmental and forest policies. A summary of the project’s relevance to the country’s policies is given below:

Law / Provision / Document

Relevance to project formulation /implementation

National Political Constitution (31 October 1993)

It stipulates that the State shall define a national environmental policy, promoting the use of natural resources and reaffirming the Government’s commitment to develop adequate mechanisms for the conservation and sustainable utilization of biological diversity

Framework Law for the Development of Industrial Parks – Act No. 28183 and regulations

Regional and local governments, either directly or in partnership with investors or investment promoters, may develop Industrial Park projects. The implementation of these projects may be commissioned to specialized companies offering the best technical and economic terms and quality of services as required by the Regional Government or Local Governments in question to develop infrastructure and supply basic services and public utilities required in Industrial Parks to allow for the installation of industrial companies and to enable these companies to be adequately equipped and to implement their activities under normal conditions of operation.

Biological Diversity Conservation and Sustainable Utilization Law (Act No. 26839).

It regulates the general framework for the conservation of biological diversity and the sustainable utilization of biodiversity resources. It contains regulations and standards for planning, inventory and monitoring activities, conservation mechanisms, rural and indigenous communities, and scientific and technological research.

Organic Law for the Sustainable Harvesting of Natural Resources – Act No. 26821, 26 June 1997

Natural resources should be harvested on a sustainable basis. Sustainable harvesting is based on the sound management of natural resources taking into account their restoration capacity, avoiding their overexploitation and ensuring their quantitative and qualitative replenishment as appropriate.

Forestry and Wildlife Law (Nº 27308) and amendments (in force)

The objective of this legislation is to regulate the sustainable utilization and conservation of forests and forest areas for the benefit of present and future generations, harmonizing the social, economic and ecological interests of the country. The law stipulates that any forest harvesting modality for commercial or industrial purposes shall require a Forest Management Plan approved by the competent Forest Authority. The State, with the active participation of the public and private sectors, shall promote the development of the forest industry throughout the national territory with a view to achieving greater economic profitability and social benefits in favor of the population involved in forest activities.

New Forestry Law (Act No. 29763) passed on 21 July 2011

This legislation promotes capacity building, particularly among indigenous communities, for the development and implementation of integrated forest management projects so as to expand and diversify the management of forest and wildlife resources. It promotes community forest management as part of the social inclusion policies through technical support and mechanisms to access forest financing and markets. The State shall establish non-tax incentive and/or stimulus mechanisms for forest and wildlife management, conservation, harvesting and processing activities that generate increased value added and promote forest biodiversity conservation. The law also promotes the voluntary certification of forest products from managed forests for their marketing, including the certification of the legal origin of forest products (controlled timber).

Organic Law for Regional Governments (Act No. 27867)

Articles 9 and 10 establish exclusive and shared constitutional powers for Regional Governments in the environmental field so as to promote and regulate activities and services in the environmental sector. These articles also establish exclusive powers to promote the sustainable use of forest and biodiversity resources, as well as shared powers for the sustained management of natural resources, improvement of environmental quality, and preservation and administration of regional natural protected areas and reserves.

National Environmental Impact Assessment System Law – Act No. 27446, 23 June 2001

This law establishes the environmental certification of public and private investment projects as a compulsory requirement and specifies environmental certification procedures, dissemination procedures and civil society participation requirements.

Legislative Decree No. 653 – Law for

According to this legislation, the forest sector is included among the Government´s priorities and strategic policies, prioritizing the integrated development of the agrarian sector within a

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Investment Promotion in the Agrarian Sector

framework of a social market economy and private investment.

1.3 TARGET AREA 1.3.1 Geographic location The project will be implemented in the Atalaya province, department of Ucayali, Peru. The area is located at the boundary between the Highland and Lowland Rainforest areas, comprising the upper Ucayali river basin and the lower Urubamba river basin respectively, with a physiography that is in transition between high hills, low hills and alluvial plains that are mostly covered by primary tropical forests rich in high commercial value forest species. The project will cover approximately 2,329,150 ha of primary forests. 1.3.2 Social, cultural, economic and environmental aspects

1.3.2.1 Social aspects The province of Atalaya has a total population of 47,285. The province has an indigenous population of 28,117, accounting for 64% of the total population. It has an urban population of 12,663, accounting for 32% of the total population, and the remaining 68% of the population live in rural areas. The table below shows poverty indicators of the province and its districts according to data from INEI 2009:

POOR (%)

PROVINCE AND DISTRICT

POPULATION TOTAL NUMBER

OF POOR

EXTREME NOT

EXTREME

NOT POOR

TOTAL POVERTY CLASSIFICATION1

ATALAYA 47,285 49.7 18.8 30.9 50.3 RAYMONDI 30,466 50.6 22.0 28.6 49.4 983 SEPAHUA 7,303 42.2 14.6 27.6 57.8 1,144 TAHUANIA 7,658 51.1 9.3 41.8 48.9 975 YURUA 1,858 58.6 24.6 34.0 41.4 794

Source INEI 2009 The participatory approach of the project will foster the participation of representative local organizations, thus ensuring that the decisions made in relation to the project will have social support. The Atalaya province has an incipient and very weak urban network and therefore, it does not have any economic and social infrastructure. Furthermore, the majority of rural population centers and native community areas are isolated and outside the production and marketing chains, with high levels of poverty and extreme poverty, and lacking basic public services and road infrastructure for travelling both within and outside the province, with the exception of the only road that connects the area to Satipo and Lima. Official data shows that 27% of houses in the province have drinking water services, only 6% are connected to sewerage systems and 27% have electricity. Existing social groups in the province of Atalaya comprise indigenous communities, forest concessionaires and producers, agricultural producers and traders. The organizations representing these social groups are: Indigenous communities: - CORPIAA: Regional Indigenous Peoples Coordinating Council of AIDESEP in Atalaya (Coordinadora Regional de Pueblos Indígenas de AIDESEP de Atalaya) - OIRA: Regional Indigenous Organization of Atalaya (Organización Indígena Regional de Atalaya) - URPIA: Regional Union of Indigenous Peoples of Atalaya (Unión Regional de Pueblos Indígenas de Atalaya)

1 Classification of the poverty index of the district out of a total of 1831 districts nationwide.

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- FECONAPA: Federation of Ashéninka Communities of the Province of Atalaya (Federación de Comunidades Ashéninka de la Provincia de Atalaya) Forest concessionaires and producers: ABACO: Forest Concessionaires' Association of Atalaya (Asociación de Concesionarios Forestales de Atalaya) APFA: Forest Producers' Association of Atalaya (Asociación de Productores Forestales de Atalaya) Agricultural producers: APAAU: Agroforestry Producers' Association of Upper Ucayali (Asociación de Productores Agroforestales de Alto Ucayali) Traders: ACA: Traders' Association of Atalaya (Asociación de Comerciantes de Atalaya)

1.3.2.2 Cultural aspects The project will have an impact on three Amazonian indigenous peoples (Ashaninca, Yine and Asheninca) distributed in more than 50 indigenous communities with a population of 28,117. Their representative organizations will be part of the Project Steering Committee. The territories of the indigenous communities cover more than one million hectares of forests that will be important suppliers of forest products for the Atalaya Industrial Park. These communities have important traditional knowledge to facilitate the harvesting and regeneration of their forests, but they need training for the introduction of modern techniques that will improve their traditional production systems. It has also been noted that, due to misinformation, many community leaders negotiate with third parties without the expressed authority of their communities, thus seriously compromising the integrity of their forests and the future development of their communities based on the sustainable harvesting of their forest resources. The communication and information system to be implemented by the project will help to overcome this situation.

1.3.2.3 Economic aspects The Atalaya province has the dynamics of an emerging economy, with a growing market based on a mercantilist economic structure of low gross fixed capital formation. The GDP is mainly based on the agricultural sector (traditional agriculture, bovine cattle-ranching and forest harvesting), traditional fishing activities, industry (processing of forest resources and agricultural and meat products), trade and services (supply of primary food products, intermediary products for agricultural use and mass consumption end-products) and transport communication services which are part of the services sector. Complementary activities which contribute much less to the GDP include textile craftworks and an incipient tourism sector. Each of these activities has created its own space and distinctive dynamics, without major sectoral mechanisms and limited market links in relation to local production, and limited value added and economic competitiveness, resulting in a local extractive production system for local consumption (agriculture and cattle-ranching, fishing, industry) and an export based sector of raw materials and inputs (forestry). The production potential of the province is primary aimed at timber processing, agro-industrial crop farming, the export of fossil fuels (exploration activities in lots 57, 110 and 90) and environmental services. The family monthly per capita income fluctuates between S/. 172.4 and S/. 189.82. These figures classify the population of Atalaya as poor. The forest business is currently growing in Atalaya, including forest harvesting by concessionaires and indigenous communities. Concession areas cover 1,329,150 ha while indigenous community lands cover a million hectares. Roundwood production amounts to 158,000 m3. As of 2010, only 3% of the timber harvested in the forests of the Atalaya province reached the local industry to be processed. The remaining 97% of extracted roundwood was transported to Pucallpa for processing and marketing. Since 2011, with the opening of the Atalaya-Pto. Ocopa roadway, this percentage has increased but no statistics have been made available. The following table lists the companies that are currently active in the forest sector of the city of Atalaya and work with the local population:

2 Equivalent to US$ 63.8 and US$ 70.3.

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Installed capacity of the sawmilling industry in Atalaya

Company Products Installed capacity

/shift

Months worked per year

No. of shifts

Annual production

(m3)

Industrial Maderera San Miguel SRL

Sawnwood 28 m3 8 1 4 440

Aserradero Hurtado SRL Sawnwood 35 m3 8 1 5 600 Reaserradero el Sol Sawnwood 25 m3 8 1 4 000 Empresas de Servicios Generales Jaimito

Sawnwood 25 m3 8 1 4 000

Empresa Jannina Sawnwood 15 m3 8 1 2 400 Servicios Generales JRL Sawnwood 20 m3 8 1 3 200 Reaserradero Emechin Sawnwood 10 m3 8 1 1 600

Forty-seven (47) percent of the formal industry in the province of Atalaya is focused on timber processing, and it is not linked to the regional marketing of timber and much less to forest harvesting operations. Timber products mostly include poles, strips, scantlings, planks, fingerjointed boards and packaging, which are all geared to the local market. It is estimated that the overall processing capacity of the forest industry is 25,000 m3/year; however, actual production only amounts to 4,586 m3. Companies not included in this group are micro-enterprises and/or small sawmilling workshops whose products are mainly geared to the local market.

1.3.2.4 Environmental aspects There is an abundant environmental supply in the Atalaya province due to the availability of natural resources, which include forests, soils, rivers, water bodies and protection areas, many of which are subject to harvesting processes based on the use of rudimentary techniques that endanger the functions of natural resources in the generation of sustainable economic development, wealth creation, and improvement of employment levels and the quality of life of the province’s population. Therefore, in contrast to other provinces in Ucayali, the objective is to plan the management of natural resources on the basis of preventative activities that should avoid the utilization and harvesting of these resources without the appropriate technical means, as well as avoiding their degradation and loss of value as a resource base for development. Negative impacts of project implementation may include:

Reduced availability of land for urban expansion in the city of Atalaya. Increased water consumption from the public water supply network and reduced water

availability for the local population. Increased production of sewage. Increased production of timber waste and general solid waste (garbage), which could lead to

pollution in the city. Increased electricity consumption from the public power network and reduced voltage for the

population. Increased gas emissions. Increased noise levels. Increased traffic of heavy vehicles. Soil pollution due to accidental fluid (fuel and oil) spills.

Actions to mitigate negative impacts:

To avoid a shortage of land for urban expansion in the city, the PIFA is designed to be established in the Santa Rosa area, which is located 10 km north of the city of Atalaya.

To avoid a shortage of water from the public water supply network, the project will consider the installation of an independent ground water pumping system for the PIFA, as well as a rain water tank.

A waste management system will be designed for sewage disposal.

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Timber waste and general solid waste will be used at the pyrolysis plant to be installed for the production of fuel in the Municipality of Atalaya; this plant will in turn feed the power station.

PIFA regulations will be developed to regulate gas emissions and noise production within allowable ranges.

The PIFA will be established 10 km away from the city so as to ensure that the increased traffic of heavy vehicles will not affect city traffic.

PIFA regulations will also include standards for the management of fuel, oil and other hazardous substances.

1.4 EXPECTED OUTCOMES AT PROJECT COMPLETION The general situation that will prevail after project completion in 2018 is an improvement in the living standards of the local communities in the project area, with a 20% increase in their income levels. On the basis of project outputs, it is expected that the prevailing situation at project completion will be as follows: 40 forest concession companies will be processing their products in the Atalaya Forest Industrial Park in

an organized manner, giving higher value added to their products and accessing markets with the support of the marketing services to be provided by PIFA;

At least 20 sawmilling companies will have been formalized and will have access to marketing and other services in the Atalaya Forest Industrial Park;

At least 50 indigenous communities with 28,000 inhabitants will be able to negotiate the sale of their forest products in a transparent manner with established and organized timber processing companies in the Atalaya province;

At least 3,000 workers will have formal employment with forest companies in the Atalaya province; 19,000 inhabitants of the city of Atalaya will have improved their income levels after the reactivation of

the economy through a well-managed forest industry; Government agencies will be able to provide better services for forest users; 200 stakeholders, including indigenous community leaders, concessionaires, industrialists,

professionals and government agencies will have been trained and will be actively participating in improving forest resource harvesting and processing techniques in the Atalaya region;

Forest concessions, industries and indigenous communities will have initiated processes to achieve voluntary forest certification, which will facilitate the achievement of a socially responsible, economically viable and environmentally sustainable management of forest resources;

The Provincial Municipality of Atalaya will be regulating and monitoring forest processing operations carried out in the city of Atalaya;

The Regional Government of Ucayali – Atalaya Sub-region, in coordination with other relevant stakeholders, will have developed guidelines for the governance of forest resources in Atalaya and will have initiated their implementation.

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PART 2. PROJECT RATIONALE AND OBJECTIVES 2.1 RATIONALE 2.1.1 Institutional set-up and organizational issues The Regional Government of Ucayali is the main political and administrative body in the region and is directly responsible for the administration of the resources assigned to it by the central government. The Regional Government must therefore plan activities to meet the annual needs related to the development and maintenance of services for the population. The Regional Government of Ucayali is a key stakeholder in the development of the province of Atalaya. Its agencies related to the harvesting and processing of forest resources are: the Forest and Wildlife Directorate, which has insufficient human and financial resources to manage its vast area of jurisdiction; the Regional Production Directorate of Ucayali, which has limited powers in Atalaya; and the Regional Labour and Employment Promotion Directorate of Ucayali, which is not involved in forest sector actions in Atalaya. The Provincial Municipality of Atalaya, as the local government body, is in charge of promoting integrated, sustainable and harmonious development in the province. It has administrative autonomy to run its internal organization structure. The implementation of the activities envisaged in provincial development plans requires additional external financing to supplement the regular community budget, for which it needs to resort to the support of the regional government. The Municipality is specifically interested in streamlining the development of the forest industry in the city of Atalaya; however, it lacks the skills, experience and resources required to individually take on this task. It is for this reason that the Municipality is supporting the implementation of this project so that it can strengthen capacities, gain experience and generate resources to launch the process of streamlining the development of the local forest industry. The Agency for the Supervision of Forest and Wildlife Resources (OSINFOR) and the National Customs and Tax Administration Authority (SUNAT) do not have any presence in Atalaya. The government institutions related to the administration and monitoring of forest resource harvesting and processing in Atalaya do not implement activities in a coordinated manner. Furthermore, there are no consensus-building mechanisms and some of these institutions do not have any presence in the Province. Non-government organizations: NGOs currently involved in forest-related programs in Atalaya include WWF-Peru, which is implementing the Amazonia Viva Project (Live Amazon Project) aimed at improving the capacities of indigenous communities for the harvesting of their forest resources. This project will seek to establish synergies to capitalize on their knowledge and successful experiences and avoid duplication of efforts. This is why they are considered to be a project partner even though they will not formally take part in the project. Indigenous organizations: The indigenous organizations that are most active in Atalaya and have the greatest support from the communities are the Regional Indigenous Peoples Coordinating Council of AIDESEP in Atalaya – CORPIAA and the Regional Union of Indigenous Peoples of Atalaya – URPIA. These organizations will participate in the project and are therefore considered to be project partners.

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2.1.2 Stakeholder analysis

Stakeholder group

Characteristics Problems, needs, interests Potential Involvement in the project

PRIMARY STAKEHOLDERS

Indigenous communities

Traditional community organization that brings together all indigenous peoples Atalaya Province: More than 50 indigenous communities with 28,117 inhabitants belonging to the Ashaninca, Yine and Asheninca ethnic groups They have approximately one million hectares of territory covered by forests that are rich in high commercial value forest species

Lack of capital, machinery and equipment to establish forest production systems. Lack of knowledge about terms of trade and basic business management principles. Lack of transparent negotiation tools with third parties for the harvesting of their forest resources. They are interested in marketing their products under a fair trade system.

Sound and respected governance system. They have knowledge about forests. They can be trained and become an efficient labor force for the harvesting of their forest resources.

Primary project beneficiaries

Indigenous organizations

They bring together indigenous communities. The main organizations in Atalaya are: CORPIAA and URPIA

They have a company, MINGA, to market non-timber products. Lack of capacity to support their member communities in their negotiations with third parties.

Convening power with their member communities. The MINGA company could be strengthened to carry out the marketing of forest resources using an association-based methodology within a business network.

Main project management stakeholders and will play a leading role in the participation of its members. Social control over the project.

Concessionaires 60 concessions that cover 1,329,150 ha of forests

Lack of investment capital for the acquisition of appropriate equipment; lack of capacities to develop a sustainable low-impact harvesting system. Lack of knowledge about business management principles and negotiation capacity. Lack of knowledge about financing channels and no credit history.

Prepared to move towards voluntary forest certification.

Primary project beneficiaries. They can provide information about their forests to help design and develop the Industrial Forest Park and plan the strengthening of their capacities. Potential access to credit to improve their forest harvesting equipment.

Industrialists

30 industrialists have the required machinery for the processing of forest products. They are dispersed.

Obsolete technology; Lack of capital to improve their technology. Lack of capacities to implement more efficient processing operations using alternative technologies that will give more value added to their products. Lack of knowledge about business management principles and negotiation capacity. Lack of knowledge about financing channels and no credit history.

Prepared to get organized, move to the Industrial Forest Park, and be given technical assistance and training. Willing to accept technical assistance for their production processes. Interested in obtaining finance.

Primary project beneficiaries. They can provide information about their industries to help design and develop the Industrial Forest Park and plan the strengthening of their capacities.

Transport operators

They have vehicles. They are dispersed.

Lack of organization. Lack of capacity to provide efficient and orderly services.

Prepared to get organized, be trained and comply with existing regulations.

Primary project beneficiaries.

Municipal Government of the province of Atalaya

Provincial level, state administration body, responsible for the management and administration of the city and minor population centers.

Insufficient resources and capacity to adequately manage the growing forest industry in Atalaya.

Plays a leading local role in city management activities. Has requested assistance to strengthen its capacity in forest industry matters.

Main stakeholder in project implementation.

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Stakeholder group

Characteristics Problems, needs, interests Potential Involvement in the project

SECONDARY STAKEHOLDERS

Regional Government of Ucayali (Atalaya Sub-region)

Regional level, state administration body, responsible for the management of natural resources at the regional level.

Insufficient resources and capacity to adequately manage forest resources. Interested in ensuring that the harvesting of forest resources be developed in an orderly and sustainable manner for the benefit of the local populations.

Forest control; implementation of the forestry and environmental law; regional leader in forest management activities.

Important stakeholder providing support to the implementation of the project.

Forest Authority, Ministry of Production, Ministry of Labour, SUNAT

State bodies responsible for the control and monitoring of forest resource harvesting and processing activities.

Limited capacity and resources to adequately fulfill their responsibilities.

Willing to improve their capacity. They have information available on production capacity and production statistics.

Project management supervision and support.

Professionals

Forest engineers that give advice on forest resource harvesting to businessmen and indigenous communities in a disorganized, dispersed and sporadic manner, without any major commitment to the preservation of biodiversity.

Limited advice-providing capacity

Willing to get organized and be trained on how to improve their advisory services.

Important stakeholders for the continuous implementation of modern forest resource harvesting and processing techniques.

TERTIARY STAKEHOLDERS

Population of the city of Atalaya

19,168 inhabitants: Farmers with subsistence crops and limited profit margins in the market. Traders and public servants, among others. This does not include the population of indigenous communities mentioned among primary stakeholders in this table.

Reduction of forest goods and environmental services. Lack of training and means to improve their activities.

Willing to work and interested in the project as a means of having a better organized city. Great organization potential.

Social control over project activities.

2.1.3 Problem analysis To date, the primary forests of Atalaya have only been selectively harvested, targeting high commercial value species such as mahogany (Swietenia macrophylla King) and other timber species that are buoyant and can therefore be easily transported by river, and softwood species that did not even cover transport costs. Thus, there is still a huge potential for the utilization of forest resources in the Atalaya region and this, in addition to the construction of the Atalaya – Puerto Ocopa roadway, represents another incentive for greater investments in the forest product processing sector in Atalaya. Investments in the harvesting, processing and marketing of forest products in Atalaya are growing in an inefficient manner, with limited social responsibility and in commercially uncompetitive conditions. The lack of financing, technical assistance and training does not allow for the use of advanced technologies. Industries do not organize themselves to have access to financial services, business management advice and technical assistance, making them inefficient with low levels of productivity and profitability. The integration of the production chain between concessionaires and industrialists is limited and for this reason, forest products do not reach the industry with the required dimensions and quality, which is reflected in limited value added. The electrical power required by processing plants is more than the energy available for the city of Atalaya, which is supplied by a small hydroelectric plant, creating problems related to unexpected power cuts and resulting in losses and inconveniences to the local population and to timber industrialists. Forest resource harvesting activities in the Atalaya area are mainly carried out in forest concessions and in the territories of indigenous communities. Due to a lack of financing, the machinery used is obsolete and the techniques applied do not guarantee the sustainability of harvesting operations and do not meet the standards required by low-impact logging, resulting in higher levels of greenhouse gas (GHG) emissions. To a great extent, all of this is due to a lack of technical assistance and advice from competent professionals. In some concessions harvesting operations are carried out ignoring completely the neighboring indigenous communities and in other cases, they are carried out in the territories of indigenous communities under contracts with third parties that do not meet the minimum standards of transparency and fairness, demonstrating a very low level of social responsibility.

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Both forest resource harvesting and processing operations in Atalaya are characterized by low levels of compliance with existing regulations related to workers’ rights, particularly in relation to payment for overtime worked, the non-payment of social benefits and the limited training given to workers to improve their skills. It is worth noting that the Municipality of Atalaya has no urban plan in place for the location of forest processing industries, which could cause chaos as these industries can now be established anywhere in the city. Furthermore, out of all the government institutions involved in the administration and control of forest resource harvesting and processing, only the Executive Forest and Wildlife Directorate of the Regional Government of Ucayali has presence in the area. However, this institution has limited resources and insufficient personnel to cover to the huge territory under its jurisdiction. As was previously mentioned, the other government agencies related to forest resource harvesting and processing are not represented in Atalaya. The workshop held with all the stakeholders of the Atalaya Province identified the need to promote investment in the areas of forest product harvesting, processing and marketing in an orderly, ecologically efficient, socially responsible and commercially competitive manner. To this end, the project will seek to establish an Forest Industrial Park where forest industries can be established in an organized manner. The Park should provide all the conditions required to make production more efficient, including financial, commercial and municipal services, access to public institutions services (including processing of documentation for forest resource harvesting and processing permits, tax collection and labor supervision) and access to technical assistance and business management services. The Park should also promote the use of alternative energy. It is also essential to establish environmental impact prevention and mitigation measures. Technical assistance and training events should be organized to improve the capacity of all stakeholders involved in forest production and a communications system should be implemented both for commercial services and for all forest sector activities in Atalaya aimed at promoting forest certification and the integration of the value chain from the forest to the end consumer, under standards of sustainability, value-added production, product quality and environmental protection. The country is currently undergoing a decentralization process through which regional and local governments are being gradually given greater responsibility, including the responsibility to manage natural resources. Under this scenario, there is a series of mechanisms available to channel national and international investments directly to forest resource management activities. However, the lack of financial performance in the forest sector is a common occurrence. The lack of local stakeholder access to information and the inability to create networks of business contacts to establish commercial mechanisms limit their capacity to initiate and consolidate actions aimed at sustainable forest management, which in turn directly affects the quantity and quality of the benefits provided by forests to local communities.

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Problem Tree

Investments in forest product harvesting, processing and marketing in Atalaya are increasing in a disorderly and inefficient manner, with limited social

responsibility and commercial competitiveness

Increasing poverty conditions among local communities

Forest product processing and marketing in Atalaya is developing

in a disorderly fashion

Decreasing provision of forest goods and services

Increasing GHG emissions thus contributing to negative climate

change effects

Forest product processing industries in the city are installed in a disorderly manner due to the

lack of guidelines

There is no integrated administration model to enable forest industry companies to act

in a coordinated manner

Limited or no financial and commercial services to support forest harvesting and processing in Atalaya.

The information available on the forest production potential of the Province of Atalaya is dispersed,

not systematized and inaccessible to users and

investors

Available types of energy to be used in the Forest Industrial Park

have not been identified No specific regulations for

forest production and industrial processing in

Atalaya

Poor skills of producers, industrialists, organizations

and authorities for sustainable harvesting,

processing and marketing of forest products

Lack of training on sustainable harvesting,

processing and marketing of forest products in

Atalaya The DGFFS, SUNAT, the Ministry of Industry and the Ministry of

Labour work in an uncoordinated manner, thus creating confusion

among forest users.

There is limited professional technical assistance for forest

development in Atalaya and no social responsibility

No information available on forest product supply and input

requirements

Limited communication and dissemination of information related to forest production

activities in Atalaya

Limited number of forest harvesting and processing units with Certification Standards in

Atalaya, thus restricting the marketing of products

Limited or no State services and technical assistance to support

the development of forest harvesting and the forest industry

in Atalaya

Environmental impacts are not assessed and therefore they are

not prevented or mitigated There has not been a transparent process of

allocation of forest production units in Atalaya

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Objectives Tree

Investments in forest product harvesting, processing and marketing in Atalaya are promoted in an organized, efficient, socially responsible and commercially

competitive manner

Improved living standards and livelihoods

of local communities

Forest product processing and marketing in Atalaya has been

adequately organized

Adequate provision of forest goods and services in Atalaya

Reduced GHG emissions from forest harvesting and processing thus

contributing to climate change mitigation

There is a Forest Industrial Park (PIFA) in Atalaya where

forest product processing industries are installed in an

organized manner

An autonomous and participatory PIFA

administration services company has been

established integrating PIFA users and key forest sector

There is a financial and commercial services unit

available in the Forest Industrial

The forest production potential of the Province of

Atalaya has been identified on the basis of available

systematized information

The available types of energy to be used in the Forest

Industrial Park have been identified

Availability of regulations for the Forest Industrial

Park in Atalaya

The capacities of producers, industrialists,

organizations and authorities for sustainable harvesting, processing and

marketing of forest products have been

strengthened

Development and implementation of training

program on sustainable harvesting, processing and marketing of forest

products in Atalaya

The DGFFS, SUNAT, the Ministry of Industry and the Ministry of Labour operate

through an integrated services module.

There is an operational Social Responsibility unit

There is an on-line information system available on product supply and input requirements

There is a financial services unit available offering promotional financial products for the forest

sector

There is a communication and outreach system available in the

Forest Industrial Park

A PIFA management model has been developed and

implemented, integrating it into the State services and

technical assistance has been provided in support of forest

harvesting and forest industry development in Atalaya

Environmental impacts have been assessed and prevention and mitigation measures have

been identified

There is a professional technical assistance unit

available

Voluntary forest certification facilitates the marketing of

products from the Forest Industrial Park

Forest production units in the Forest Industrial Park

have been allocated through a public tender

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2.1.4 Logical Framework Matrix

INTERVENTION STRATEGY MEASURABLE INDICATORS MEANS OF VERIFICATION KEY ASSUMPTIONS

DEVELOPMENT OBJECTIVE: Contribute to increasing the living standards of the local and indigenous communities of Atalaya by generating increased income as a result of the organized development of the local forest industry.

By 2020, the average annual income of families involved in forest activities in the project target area has increased by 30%. (Baseline = US$ 1000).

By 2020, the number of families involved in the forest industry has increased to 5000 (Baseline = 1700).

Surveys, socio-economic studies National statistics

The Government of Peru has a policy aimed at the development of the forest sector.

The Regional and Local Governments are interested in participating in the project.

The organizations of indigenous communities, concessionaires and industrialists support the project.

SPECIFIC OBJECTIVE: Boost investments in forest product harvesting, processing and marketing in Atalaya in an organized, efficient, socially responsible and commercially competitive manner

By the end of the project, 1,000,000 ha of forests in the project target area are being harvested in accordance with legally approved forest management plans and are under reduced impact logging techniques. (Baseline = 300,000 ha)

30 forest processing industries have been established in an organized manner in the Forest Industrial Park of Atalaya and are operating according to international standards. (Baseline = 7)

At least US$ 20 million is invested in forest product harvesting and processing in Atalaya as a result of the opening of the Forest Industrial Park. (Baseline = US$ 3 million)

At least 30% of indigenous communities have transparent and fair negotiations with third parties for the harvesting of their forest resources. (Baseline = 5%)

Official reports, field visits Agreements with local communities

and authorities, and maps

The local population, indigenous communities, concessionaires and industrialists agree with the project.

OUTPUT 1: The Forest Industrial Park of Atalaya (Parque Industrial Forestal de Atalaya – PIFA) has been scaled, designed and established through a municipal ordinance in the Province of Atalaya.

By the end of the second year of the project, the public investment office of the Ministry of Economy and Finance has verified the viability of 100% of works required for the establishment of the Forest Industrial Park. (Baseline = 0)

By the end of the first year, the Municipal Council of Atalaya issues a Municipal Ordinance for the establishment of the Forest Industrial Park of Atalaya according to the location, scaling and design specifications set out in the relevant documents. (Baseline = 0)

By the end of the first year, the energy alternatives for the operation of the Forest Industrial Park of Atalaya have been defined on the basis of the studies carried out. (Baseline = 0)

By the end of the first year, environmental impacts and prevention and mitigation measures have been defined for the implementation of the Industrial Park of Atalaya. (Baseline = 0)

PIP viability reports. Municipal Ordinance. Study documents.

The Local Government agrees with and supports the project.

The Ministry of Economy and Finance agrees with the project.

OUTPUT 2: A PIFA management model has been developed and implemented, integrating it into the State services (DGFFS, OSINFOR, SUNAT and Ministries of Production and Labour) and technical assistance has been provided in support of forest harvesting and forest industry development in Atalaya

By the end of the first year, an autonomous and participatory PIFA administration services company has been established integrating PIFA users and key forest sector stakeholders. (Baseline = 0)

By the end of the second year, the DGFFS, OSINFOR, SUNAT, the Ministry of Industry and the Ministry of Labour are operating through an integrated services module. (Baseline = 0)

By month 18, a professional services unit is operational. (Baseline = 0)

Municipal Ordinance Agreement documents Reports

The Local Government agrees with and supports the project.

The DFFS, OSINFOR, SUNAT and the Ministries of Industry and Labour agree to participate in the project

OUTPUT 3: Financial and commercial services have been established in Atalaya for the development of forest product harvesting and processing.

By the end of the second year, a financial services unit with promotional credits for the forest sector is operating in Atalaya. (Baseline = 0)

By the end of the project, a commercial services unit with information on product supply and input requirements is operating in Atalaya in support of the forest sector. (Baseline = 0)

By month 18, a communication and outreach system in support of the forest sector is operating in Atalaya. (Baseline = 0)

By the end of the project, 10% of companies are in the process of being certified. (Baseline = 2%)

Agreement and commitment documents

Report Activity reports Credit and sale contracts Preliminary reports

Financial institutions agree to participate in the project

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INTERVENTION STRATEGY MEASURABLE INDICATORS MEANS OF VERIFICATION KEY ASSUMPTIONS

OUTPUT 4: The capacities of producers, industrialists, organizations and authorities for sustainable harvesting, processing and marketing of forest products have been strengthened.

By the end of the project, the capacities of 2 local organizations of indigenous communities, one municipality, one regional government (Atalaya Sub-Region), 30 representatives of forest industry companies, forest industrialists, 30 representatives of forest concessions and 30 representatives of government agencies related to the forest sector have been strengthened. (Baseline = 0)

By the end of the project, 50 % of the forest industries installed in the forest industrial park of Atalaya have adopted technological improvements as a result of the training provided. (Baseline = 0)

By the end of the project, at least 10 technical training workshops have been implemented. (Baseline = 0)

By the end of the project, at least 10 administrative training workshops have been implemented. (Baseline = 0)

Reports on technological improvements

Workshop proceedings Training workshop registration

records

Local organizations and regional and local governments are interested in receiving training on this topic.

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2.2 OBJECTIVES 2.3 Development objective and impact indicators Contribute to increasing the living standards of the local and indigenous communities of Atalaya by generating increased income as a result of the organized development of the local forest industry. By 2020, the average annual income of families involved in forest activities in the project target area has increased by 30%. (Baseline = US$ 1000). By 2020, the number of families involved in the forest industry has increased to 5000 (Baseline = 1700).

2.2.2 Specific objective and outcome indicators

Boost investments in forest product harvesting, processing and marketing in Atalaya in an organized, efficient, socially responsible and commercially competitive manner. By the end of the project, 1,000,000 ha of forests in the project target area are being harvested in accordance with legally approved forest management plans and are under reduced impact logging techniques. (Baseline = 300,000 ha) 20 forest processing industries have been established in an organized manner in the Forest Industrial Park of Atalaya and are operating according to international standards. (Baseline = 7) At least US$ 20 million is invested in forest product harvesting and processing in Atalaya as a result of the opening of the Forest Industrial Park. (Baseline = US$ 3 million) At least 30% of indigenous communities have transparent and fair negotiations with third parties for the harvesting of their forest resources. (Baseline = 5%)

Project outputs and corresponding indicators are given below: OUTPUT 1: The Forest Industrial Park of Atalaya (Parque Industrial Forestal de Atalaya – PIFA) has been scaled, designed and established through a municipal ordinance in the Province of Atalaya.

By the end of the second year of the project, the public investment office of the Ministry of Economy and Finance has verified the viability of 100% of works required for the establishment of the Forest Industrial Park. (Baseline = 0) By the end of the first year, the Municipal Council of Atalaya issues a Municipal Ordinance for the establishment of the Forest Industrial Park of Atalaya according to the location, scaling and design specifications set out in the relevant documents. (Baseline = 0) By the end of the first year, the energy alternatives for the operation of the Forest Industrial Park of Atalaya have been defined on the basis of the studies carried out. (Baseline = 0) By the end of the first year, environmental impacts and prevention and mitigation measures have been defined for the implementation of the Industrial Park of Atalaya. (Baseline = 0)

OUTPUT 2: A PIFA management model has been developed and implemented, integrating it into the State services (DGFFS, OSINFOR, SUNAT and Ministries of Production and Labour) and technical assistance has been provided in support of forest harvesting and forest industry development in Atalaya.

By the end of the first year, an autonomous and participatory PIFA administration services company has been established integrating PIFA users and key forest sector stakeholders. (Baseline = 0) By the end of the second year, the DGFFS, OSINFOR, SUNAT, the Ministry of Industry and the Ministry of Labour are operating through an integrated services module. (Baseline = 0) By month 18, a professional services unit is operational. (Baseline = 0)

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OUTPUT 3: Financial and commercial services have been established in Atalaya for the development of forest product harvesting and processing.

By the end of the second year, a financial services unit with promotional credits for the forest sector is operating in Atalaya. (Baseline = 0) By the end of the project, a commercial services unit with information on product supply and input requirements is operating in Atalaya in support of the forest sector. (Baseline = 0) By month 18, a communication and outreach system in support of the forest sector is operating in Atalaya. (Baseline = 0) By the end of the project, 10% of companies are in the process of being certified. (Baseline = 2%)

OUTPUT 4: The capacities of producers, industrialists, organizations and authorities for sustainable harvesting, processing and marketing of forest products have been strengthened.

By the end of the project, the capacities of 2 local organizations of indigenous communities, one municipality, one regional government (Atalaya Sub-Region), 30 representatives of forest industry companies, forest industrialists, 30 representatives of forest concessions and 30 representatives of government agencies related to the forest sector have been strengthened. (Baseline = 0) By the end of the project, 50 % of the forest industries installed in the forest industrial park of Atalaya have adopted technological improvements as a result of the training provided. (Baseline = 0) By the end of the project, at least 10 technical training workshops have been implemented. (Baseline = 0) By the end of the project, at least 10 administrative training workshops have been implemented. (Baseline = 0)

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PART 3. DESCRIPTION OF PROJECT INTERVENTIONS 3.1 OUTPUTS AND ACTIVITIES 3.1.1 Outputs OUTPUT 1: The Forest Industrial Park of Atalaya (Parque Industrial Forestal de Atalaya – PIFA) has been scaled, designed and established through a municipal ordinance in the Province of Atalaya. To achieve Output 1, the forest production potential of the province of Atalaya will be identified so as to establish the basis for the scaling and design of the forest industrial park. This will in turn be used in the implementation of assessments for Park fitting out and equipping as required for the development of a Public Investment Project (PIP) and verification of Park viability. A river port will be required to supply the Industrial Park, which will also require the implementation of surveys and verification of viability for the development of a corresponding PIP. In addition, the following surveys will also be needed: Use of Alternative Energy Sources, Forest Resource Processing Alternatives, Environmental Impact Assessment and Identification of a Waste Disposal System. OUTPUT 2: A PIFA management model has been developed and implemented, integrating it into the State services (DGFFS, OSINFOR, SUNAT and Ministries of Production and Labour) and technical assistance has been provided in support of forest harvesting and forest industry development in Atalaya In order to ensure that the Forest Industrial Park of Atalaya will have all the necessary services to facilitate investments and product marketing, the establishment of a municipal forest services company is envisaged to be in charge of the administration of the Park. Furthermore, a multi-service advice and monitoring module will be organized with the DGFFS, SUNAT, the Ministry of Industry and the Ministry of Labour, so as to integrate and facilitate access to these services. In addition, a Social and Environmental Responsibility Unit will be established to provide guidance to forest harvesting and processing companies in meeting required standards to facilitate market access. A professional technical unit will also be set up to provide formal and legal technical assistance to interested companies. OUTPUT 3: Financial and commercial services have been established in Atalaya for the development of forest product harvesting and processing. The marketing of forest products requires information on available supplies to enable purchasing companies to place their orders. Thus, an on-line information system on product supply and input requirements will developed and installed. All Atalaya producers will have access to this system so they will be able to enter data on their available stock and will also be able to sell their products as a group. In addition, it will be necessary to facilitate access to financial sources so that forest harvesting and processing companies in Atalaya may obtain credit to improve their technology and enhance their production and product quality. Thus, the Forest Industrial Park will have a division responsible for the identification of financial sources that can provide promotional credits for the forest sector. All production activities in Atalaya need to be promoted, highlighting their qualities and requirements. Therefore, it will be essential to develop a communication and outreach system to enable key forest sector stakeholders and producer to showcase their activities, production and challenges, and share their views on common problems. A system that is becoming increasingly significant in the world is the Voluntary Forest Certification as a sign of good forest management. This system can also help improve the marketing of products;

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therefore, the project will encourage the Voluntary Forest Certification mechanism among producers as a tool to facilitate the marketing of their products. OUTPUT 4: The capacities of producers, industrialists, organizations and authorities for sustainable harvesting, processing and marketing of forest products have been strengthened. In order to boost investments in forest product processing and marketing in Atalaya, it will be necessary to improve the capacity of local producers, industrialists, organizations and authorities. To this end, the project will develop a training plan on sustainable harvesting, processing and marketing of forest products in Atalaya. This plan will be based on a diagnosis of stakeholders' information gaps that need to be breached in order to achieve the sustainable management of forest resources and the processing of high quality products using competitive marketing tools. To ensure smooth functioning, the Forest Industrial Park of Atalaya will require a clear and concise set of regulations covering all issues required by law. The industry plants to be installed in the Forest industrial Park of Atalaya should be allocated to local producers and organizations through a transparent process following pre-established rules. To this end, a public tender process will be organized. 3.1.2 Activities

OUTPUT 1 Activity No. Description Activity 1.1 Identification of forest production potential in Atalaya Activity 1.2 Location, scaling, design, demarcation and boundary marker installation for the Forest

Industrial Park of the Province of Atalaya Activity 1.3 Design of service infrastructure for the Forest Industrial Park of the Province of Atalaya

(electrical grid, water supply system, sewerage and roads) Activity 1.4 Development of PIP and viability study for the basic urban installation of the Forest

Industrial Park of the Province of Atalaya (electricity, water, sewerage, roads) Activity 1.5 Location, design and specification of equipment and machinery required for the river

loading port Activity 1.6 Development of PIP and viability study for the construction of the river loading port of

Atalaya Activity 1.7 Design and plotting of access roads to the Forest Industrial Park and the loading port Activity 1.8 Study on the use of alternative energy Activity 1.9 Environmental impact assessment Activity 1.10 Identification of waste disposal system

OUTPUT 2 Activity No. Description Activity 2.1 Design, organization and constitution of an autonomous and participatory administration

services company for the Forest Industrial Park of Atalaya integrating PIFA users and key forest sector stakeholders in Atalaya

Activity 2.2 Design and organization of a multi-service monitoring module for DGFFS, SUNAT, the Ministry of Industry and the Ministry of Labour

Activity 2.3 Design and organization of professional services unit Activity 2.4 Design and organization of social and environmental responsibility unit for the Park

OUTPUT 3

Activity No. Description Activity 3.1 Design and organization of on-line information system on product supply and input

requirements Activity 3.2 Design and implementation of a financial services unit for the Park Activity 3.3 Design and implementation of communication and outreach system for the Park Activity 3.4 Promotion of Voluntary Forest Certification to facilitate product marketing

29

OUTPUT 4

Activity No. Description Activity 4.1 Development of technical and administrative training plans Activity 4.2 Implementation of training plan Activity 4.3 Development of Regulations for the Forest Industrial Park of Atalaya Activity 4.4 Organization of public tender process for the allocation of industrial spaces in the

Forest Industrial Park Activity 4.5 Study on forest resource processing alternatives in the province of Atalaya

3.2 IMPLEMENTATION APPROACHES AND METHODS To ensure the achievement of project objectives, the approaches and methods to be used for the implementation of project activities will include the following:

The project will work in cooperation with all stakeholders that are directly or indirectly interested in participating in the activities to improve forest product harvesting and processing within the project target area. Based on a participatory approach, support will be provided to allow interested groups and beneficiaries to take part in the development of an agreed vision for the management of the forest industry in Atalaya. To apply this participatory development approach the following measures will be taken:

o Strengthening of local organizations involved in forest product harvesting and

processing: The project will assist grassroots organizations, as well as local authorities, in their efforts to create a consultation forum for interested groups. For all project activities, the project will develop consultation processes with the representatives of indigenous community organizations, forest concessionaires, industrialists and organized civil society groups for decision making processes.

o Establishment of participatory monitoring and evaluation process. The purpose of this

system is to ensure the successful implementation of activities aimed at managing the establishment of forest industries. To ensure the participation of the local population, participatory rural assessments or other similar strategies will be used. The Participatory Rural Assessment/Appraisal (PRA) is a methodological tool developed by the World Resources Institute (WRI) that may be used to monitor the implementation of projects in development processes. Past experiences in the use of this methodology at both the international and national levels can be found in the web. In the specific case of Peru, this tool has been used to monitor the construction of the Inter-Ocean Highway. Similarly, the Alianza Cambio Andino (Andean Change Alliance) (agricultural innovation in support of poor communities) has used this methodology in several projects, where it has proven to be a flexible, useful tool to monitor performance and generate remedial feedback. It is also an important tool because it incorporates the concept of accountability in implementation. In order to implement this methodology, a monitoring and assessment committee will be established. This committee, which will be made up of representatives of PIFA-related organizations, will motivate and lead stakeholders' involvement in a participatory manner. The committee will receive the support of a specialized institution that will provide guidance on the development of monitoring tools, forms and records. This will improve organizational performance and facilitate the identification of strengths and weaknesses. Peruvian regulations promote civil society involvement in the monitoring and control of the implementation of projects and all government activities.

o Organization of participatory consultation and information dissemination and mainstreaming events. Participatory strategies will be used in the implementation of

30

workshops for the dissemination and mainstreaming of the information generated by the project so as to guarantee the involvement of all relevant stakeholders. The participation of stakeholders will be organized based on their categorization according to their specific interests.

Multidisciplinary approach: To ensure the effective implementation of project activities, a

multidisciplinary team will be set up, including experts in the environmental, forestry, economic, social and legal fields.

Building of synergies: The project will be focused on building synergies with local and

regional institutions to strengthen actions and avoid duplication of efforts. Coordination of work with regional and local governments will be promoted as well as project involvement in consensus-building roundtables.

The Provincial Municipality of Atalaya will be a partner of the executing agency in the implementation of the project. This partner will be a key stakeholder in ensuring the sustainability of the project and will in turn be strengthened through its involvement in the design and implementation of the Forest Industrial Park that could be replicated in other regions.

Local capacity strengthening: Leaders will be identified and trained and local staff will be

involved in field work and the implementation of activities. Training will be provided in sustainable harvesting using low-impact techniques, forest product processing, marketing of forest products, negotiation techniques, business management and forest certification, among others. Capacity building will be focused on improving forest product harvesting and processing techniques and on their integration into the market in the prioritized project areas.

Gender approach: The project will promote the equitable participation of both men and women

in the different project activities on the basis of their respective capacities. Furthermore, the project will promote the equitable participation of both men and women in the training courses that will be held as part of the project’s implementation strategy.

Social equity approach (including gender issues): The project will seek to ensure the

participation of different social groups, particularly indigenous communities. Furthermore, the project will promote the equitable participation of men and women in the decision-making processes in participatory and administration mechanisms, both within the project structure and those structures to be created through project activities, on the basis of their respective capacities. In addition, the project will promote the equitable participation of both men and women in the training courses to be held as part of the project implementation strategy.

Prior experience: On the basis of the lessons learned by relevant institutions and past

projects, the project will focus on the social management of forest product harvesting and processing with a view to improving the governance of forest resources.

3.2.1 Considerations for the PIFA Management Model The management model of the Forest Industrial Park of Atalaya (PIFA) must be defined through a participatory approach by PIFA users and the institutions involved in the forest sector in Atalaya. The Provincial Municipality of Atalaya should play a leading role as the agency responsible for promoting the management of the forest industry and ensure compliance with these participatory and inclusive processes. It could be interesting to define the leading role of the Municipality as the management body responsible for ensuring coordinated and inclusive processes. A priori, it is considered that it will be necessary to establish, in a participatory manner, a PIFA administration services company that should be autonomously constituted, integrating the very users of PIFA and the key stakeholders of the Atalaya forest sector. This will be very important in ensuring the sustainability of PIFA and must be defined and validated during the project implementation period.

31

In order to ensure the smooth functioning of the Atalaya Forest Industrial Park, it will be necessary to develop a clear set of regulations covering all aspects required by law. The industry plants to be installed in the Atalaya Forest Industrial Park should be allocated to local producers and organizations through a transparent procedure, according to pre-established rules and guidelines to be stipulated following a public tender process.

32

3.3 WORK PLAN

Year 1 Year 2

Quarters Outputs & Activities Responsible Party

1 2 3 4 1 2 3 4

OUTPUT 1: The Forest Industrial Park of Atalaya (Parque Industrial Forestal de Atalaya – PIFA) has been scaled, designed and established through a municipal ordinance in the Province of Atalaya.

Act. 1.1: Identification of forest production potential in Atalaya Coordinator X

Act. 1.2: Location, scaling, design, demarcation and boundary marker installation for the Forest Industrial Park of the Province of Atalaya Forest Industry Expert X

Act.1.3: Design of service infrastructure for the Forest Industrial Park of the Province of Atalaya (electrical grid, water supply system, sewerage and roads)

Forest Industry Expert X X

Act.1.4: Development of PIP and viability study for the basic urban installation of the Forest Industrial Park of the Province of Atalaya (electricity, water, sewerage, roads)

Coordinator X X/2

Act. 1.5: Location, design and specification of equipment and machinery required for the river loading port Forest Industry Expert X

Act.1.6: Development of PIP and viability study for the construction of the river loading port of Atalaya Coordinator X X/2

Act.1.7: Design and plotting of access roads to the Forest Industrial Park and the loading port Coordinator X

Act.1.8: Study on the use of alternative energy Coordinator X

Act. 1.9: Environmental impact assessment Coordinator X

Act. 1.10: Identification of waste disposal system Forest Industry Expert X

OUTPUT 2: A PIFA management model has been developed and implemented, integrating it into the State services (DGFFS, OSINFOR, SUNAT and Ministries of Production and Labour) and technical assistance has been provided in support of forest harvesting and forest industry development in Atalaya.

Act. 2.1: Design, organization and constitution of an autonomous and participatory administration services company for the Forest Industrial Park of Atalaya integrating PIFA users and key forest sector stakeholders in Atalaya

Administration Expert X X X

Act. 2.2: Design and organization of a multi-service monitoring module for DGFFS, SUNAT, the Ministry of Industry and the Ministry of Labour X

33

Year 1 Year 2

Quarters Outputs & Activities Responsible Party

1 2 3 4 1 2 3 4

Act. 2.3: Design and organization of professional services unit Administration Expert X

Act. 2.4: Design and organization of social and environmental responsibility unit for the Park Administration Expert X

OUTPUT 3: Financial and commercial services have been established in Atalaya for the development of forest product harvesting and processing.

Act. 3.1: Design and organization of on-line information system on product supply and input requirements Coordinator X

Act. 3.2: Design and implementation of a financial services unit for the Park Coordinator X

Act. 3.3: Design and implementation of communication and outreach system for the Park Communication & Outreach Expert

X X X X

Act. 3.4: Promotion of Voluntary Forest Certification to facilitate product marketing Coordinator X X X

OUTPUT 4: The capacities of producers, industrialists, organizations and authorities for sustainable harvesting, processing and marketing of forest products have been strengthened.

Act. 4.1: Development of technical and administrative training plans Training Expert X

Act. 4.2: Implementation of training plan Training Expert X X X X

Act. 4.3: Development of Regulations for the Forest Industrial Park of Atalaya Administration Expert X

Act. 4.4: Organization of public tender process for the allocation of industrial spaces in the Forest Industrial Park Administration Expert X

Act. 4.5: Study on forest resource processing alternatives in the province of Atalaya Forest Industry Expert X

34

3.4 BUDGET 3.4.1 Master budget

Quantity ITTO

Outputs & Activities

Cod

e

Qua

ntity

Inputs

Year

1

Year

2 U

nit Unit Cost

(US$) Sub-total

(US$) TOTAL (US$)

Year 1 Year 2

Exec

utin

g Ag

ency

OUTPUT 1: The Forest Industrial Park of Atalaya (Parque Industrial Forestal de Atalaya – PIFA) has been scaled, designed and established through a municipal ordinance in the Province of Atalaya.

280840

131 1 National Consultant in Forest Evaluation 3 m/m 4000 12000 12000

11 1 DGFFS and Regional Gov't of Ucayali Staff * 1 m/m 2000 2000 2000

311 1 DSA 20 days 50 1000 1000

331 1 Transport 2 unit 220 440 440

54 1 Cartographic material 1 sundry 1000 1000 1000

Act. 1.1: Identification of forest production potential in Atalaya

54 1 Materials 1 sundry 1000 1000 1000

21 1 Sub-contract 1 1 unit 36000 36000 36000

11 1 DGFFS and Regional Gov't of Ucayali Staff * 1 m/m 2000 2000 2000 Act. 1.2: Location, scaling, design, demarcation and boundary marker installation for the Forest Industrial Park of the Province of Atalaya

11 1 Atalaya Municipality Staff 2 m/m 2000 4000 4000

22 1 Sub-contract 2 1 unit 28000 28000 28000 Act.1.3: Design of service infrastructure for the Forest Industrial Park of the Province of Atalaya (electrical grid, water supply system, sewerage and roads) 11 1 Atalaya Municipality Staff 3 m/m 2000 6000 6000

132 1 National Consultant in PIP Development 3 m/m 4000 12000 12000

11 1 Atalaya Municipality Staff 3 m/m 2000 6000 6000

311 1 DSA 30 days 50 1500 1500

331 1 Transport 2 unit 220 440 440

54 1 Materials 1 unit 1000 1000 1000

Act.1.4: Development of PIP and viability study for the basic urban installation of the Forest Industrial Park of the Province of Atalaya (electricity, water, sewerage, roads)

605 1 Miscellaneous 1 sundry 1000 1000 1000

23 1 Sub-contract 3 1 unit 34000 34000 34000 Act. 1.5: Location, design and specification of equipment and machinery required for the river loading port 11 1 DGFFS and Regional Gov't of Ucayali Staff * 1.5 m/m 2000 3000 3000

35

Quantity ITTO

Outputs & Activities

Cod

e

Qua

ntity

Inputs

Year

1

Year

2 U

nit Unit Cost

(US$) Sub-total

(US$) TOTAL (US$)

Year 1 Year 2

Exec

utin

g Ag

ency

11 1 Atalaya Municipality Staff 2 m/m 2000 4000 4000

132 1 National Consultant in PIP Development 3 m/m 4000 12000 12000

11 1 DGFFS and Regional Gov't of Ucayali Staff * 1 m/m 2000 2000 2000

11 1 Atalaya Municipality Staff 2 m/m 2000 4000 4000

311 1 DSA 30 days 50 1500 1500

331 1 Transport 2 unit 220 440 440

54 1 Materials 1 unit 1000 1000 1000

Act.1.6: Development of PIP and viability study for the construction of the river loading port of Atalaya

605 1 Miscellaneous 1 sundry 400 400 400

24 1 Sub-contract 4 1 unit 25000 25000 25000

11 1 DGFFS and Regional Gov't of Ucayali Staff * 1 m/m 2000 2000 2000 Act.1.7: Design and plotting of access roads to the Forest Industrial Park and the loading port

11 1 Atalaya Municipality Staff 2 m/m 2000 4000 4000

112 1 National Expert in Forest Industry 4 m/m 4000 16000 16000

311 1 DSA 30 days 50 1500 1500

331 1 Transport 2 unit 220 440 440

54 1 Materials 1 unit 1000 1000 1000

Act.1.8: Study on the use of alternative energy

605 1 Miscellaneous 1 sundry 200 200 200

133 1 National Consultant in Environmental Impact 4 m/m 4000 16000 16000

11 1 DGFFS and Regional Gov't of Ucayali Staff * 2 m/m 2000 4000 4000

11 1 Atalaya Municipality Staff 2 m/m 2000 4000 4000

311 1 DSA 40 days 50 2000 2000

331 1 Transport 2 unit 220 440 440

54 1 Materials 1 unit 2000 2000 2000

Act. 1.9: Environmental impact assessment

605 1 Miscellaneous 1 sundry 300 300 300

112 1 National Expert in Forest Industry 4 m/m 4000 16000 16000

11 1 Atalaya Municipality Staff 2 m/m 2000 4000 4000

311 1 DSA 30 days 50 1500 1500

Act. 1.10: Identification of waste disposal system

331 1 Transport 2 unit 220 440 440

36

Quantity ITTO

Outputs & Activities

Cod

e

Qua

ntity

Inputs

Year

1

Year

2 U

nit Unit Cost

(US$) Sub-total

(US$) TOTAL (US$)

Year 1 Year 2

Exec

utin

g Ag

ency

54 1 Materials 1 unit 2000 2000 2000

605 1 Miscellaneous 1 sundry 300 300 300

OUTPUT 2: A PIFA management model has been developed and implemented, integrating it into the State services (DGFFS, OSINFOR, SUNAT and Ministries of Production and Labour) and technical assistance has been provided in support of forest harvesting and forest industry development in Atalaya.

109260

113 1 National Expert in Administration 4 m/m 4000 16000 16000

11 1 Atalaya Municipality Staff 2 m/m 2000 4000 4000

311 1 DSA 30 days 50 1500 1500

331 1 Transport 2 unit 220 440 440

54 1 Materials 1 unit 1000 1000 1000

Act. 2.1: Design, organization and constitution of an autonomous and participatory administration services company for the Forest Industrial Park of Atalaya integrating PIFA users and key forest sector stakeholders in Atalaya

605 1 Miscellaneous 1 sundry 200 200 200

113 1 National Expert in Administration 3 m/m 4000 12000 12000

11 1 DGFFS*, SUNAT, Min. Industry, Min. Labour Staff 4 m/m 2000 8000 8000

11 1 Atalaya Municipality Staff 1 m/m 2000 2000 2000

311 1 DSA 30 days 50 1500 1500

331 1 Transport 2 unit 220 440 440

54 1 Materials 1 unit 1000 1000 1000

Act. 2.2: Design and organization of a multi-service monitoring module for DGFFS, SUNAT, the Ministry of Industry and the Ministry of Labour

605 1 Miscellaneous 1 sundry 200 200 200

113 1 National Expert in Administration 3 m/m 4000 12000 12000

11 1 DGFFS and Regional Gov't of Ucayali Staff * 1 m/m 2000 2000 2000

11 1 Atalaya Municipality Staff 1 m/m 2000 2000 2000

31 1 DSA 30 days 50 1500 1500

33 1 Transport 2 unit 220 440 440

54 1 Materials 1 unit 1000 1000 1000

Act. 2.3: Design and organization of professional services unit

605 1 Miscellaneous 1 sundry 100 100 100

37

Quantity ITTO

Outputs & Activities

Cod

e

Qua

ntity

Inputs

Year

1

Year

2 U

nit Unit Cost

(US$) Sub-total

(US$) TOTAL (US$)

Year 1 Year 2

Exec

utin

g Ag

ency

113 1 National Expert in Administration 4 m/m 4000 16000 16000

134 1 Consultant in Social and Environmental Responsibility 4 m/m 4000 16000 16000

11 1 DGFFS and Regional Gov't of Ucayali Staff * 1 m/m 2000 2000 2000

11 1 Atalaya Municipality Staff 2 m/m 2000 4000 4000

311 1 DSA 30 days 50 1500 1500

331 1 Transport 2 unit 220 440 440

54 1 Materials 1 unit 1000 1000 1000

Act. 2.4: Design and organization of social and environmental responsibility unit for the Park

605 1 Miscellaneous 1 sundry 1000 1000 1000

OUTPUT 3: Financial and commercial services have been established in Atalaya for the development of forest product harvesting and processing.

172540

135 1 National Consultant in Information Technology 5 m/m 4000 20000 20000

11 1 S DGFFS and Regional Gov't of Ucayali Staff * 1 m/m 2000 2000 2000

11 1 Atalaya Municipality Staff 2 m/m 2000 4000 4000

311 1 DSA 30 days 50 1500 1500

331 1 Transport 2 unit 220 440 440

54 1 Materials 1 unit 1000 1000 1000

Act. 3.1: Design and organization of on-line information system on product supply and input requirements

605 1 Miscellaneous 1 sundry 200 200 200

136 1 National Consultant in Finance 4 m/m 4000 16000 16000

11 1 DGFFS and Regional Gov't of Ucayali Staff * 1 m/m 2000 2000 2000

11 1 Atalaya Municipality Staff 2 m/m 2000 4000 4000

311 1 DSA 30 days 50 1500 1500

331 1 Transport 2 unit 220 440 440

54 1 Materials 1 unit 1000 1000 1000

Act. 3.2: Design and implementation of a financial services unit for the Park

605 1 Miscellaneous 1 sundry 1000 1000 1000

38

Quantity ITTO

Outputs & Activities

Cod

e

Qua

ntity

Inputs

Year

1

Year

2 U

nit Unit Cost

(US$) Sub-total

(US$) TOTAL (US$)

Year 1 Year 2

Exec

utin

g Ag

ency

114 1 National Expert in Communication and Outreach 12 m/m 4000 48000 48000

11 1 DGFFS and Regional Gov't of Ucayali Staff * 3 m/m 2000 6000 6000

11 1 Atalaya Municipality Staff 3 m/m 2000 6000 6000

311 1 DSA 60 days 50 3000 3000

331 1 Transport 12 unit 220 2640 2640

54 1 Materials 12 unit 1000 12000 12000

Act. 3.3: Design and implementation of communication and outreach system for the Park

605 1 Miscellaneous 1 sundry 200 200 200

137 1 Consultant in Forest Certification 6 unit 4000 24000 24000

11 1 DGFFS and Regional Gov't of Ucayali Staff * 2 m/m 2000 4000 4000

11 1 Atalaya Municipality Staff 1 m/m 2000 2000 2000

311 1 DSA 60 days 50 3000 3000

331 1 Transport 6 unit 220 1320 1320

54 1 Materials 5 unit 1000 5000 5000

Act. 3.4: Promotion of Voluntary Forest Certification to facilitate product marketing

605 1 Miscellaneous 1 sundry 300 300 300

OUTPUT 4: The capacities of producers, industrialists, organizations and authorities for sustainable harvesting, processing and marketing of forest products have been strengthened.

212730

115 1 National Training Expert 3 unit 4000 12000 12000

11 1 DGFFS and Regional Gov't of Ucayali Staff * 1 m/m 2000 2000 2000

11 1 Atalaya Municipality Staff 1 m/m 2000 2000 2000

311 1 DSA 30 days 50 1500 1500

331 1 Transport 2 unit 220 440 440

54 1 Materials 1 unit 1000 1000 1000

Act. 4.1: Development of technical and administrative training plans

605 1 Miscellaneous 1 sundry 200 200 200

39

Quantity ITTO

Outputs & Activities

Cod

e

Qua

ntity

Inputs

Year

1

Year

2 U

nit Unit Cost

(US$) Sub-total

(US$) TOTAL (US$)

Year 1 Year 2

Exec

utin

g Ag

ency

115 1 National Training Expert 12 unit 4000 48000 48000

139 5 Consultants in miscellaneous topics 2 m/m 4000 40000 40000

11 1 DGFFS and Regional Gov't of Ucayali Staff * 4 m/m 2000 8000 8000

11 1 Atalaya Municipality Staff 2 m/m 2000 4000 4000

311 6 DSA 45 days 50 13500 13500

331 6 Transport 2 unit 220 2640 2640

54 6 Materials 2 unit 1000 12000 12000

Act. 4.2: Implementation of training plan

605 1 Miscellaneous 1 sundry 200 200 200

138 1 National Consultant in Legislation 3 unit 4000 12000 12000

11 1 DGFFS and Regional Gov't of Ucayali Staff * 1 m/m 2000 2000 2000

11 1 Atalaya Municipality Staff 1 m/m 2000 2000 2000

311 1 DSA 30 days 50 1500 1500

331 1 Transport 2 unit 220 440 440

545 1 Materials 1 unit 1000 1000 1000

Act. 4.3: Development of Regulations for the Forest Industrial Park of Atalaya

605 1 Miscellaneous 1 sundry 300 300 300

113 1 National Expert in Administration 4 unit 4000 16000 16000

11 1 DGFFS and Regional Gov't of Ucayali Staff * 1 m/m 2000 2000 2000

11 1 Atalaya Municipality Staff 1 m/m 2000 2000 2000

311 3 DSA 25 days 50 3750 3750

331 3 Transport 2 unit 220 1320 1320

54 1 Materials 1 unit 2000 2000 2000

Act. 4.4: Organization of public tender process for the allocation of industrial spaces in the Forest Industrial Park

605 1 Miscellaneous 1 sundry 100 100 100

112 1 National Expert in Forest Industry 4 m/m 4000 16000 16000

311 2 DSA 15 days 50 1500 1500

331 2 Transport 1 unit 220 440 440

54 1 Materials 1 unit 500 500 500

Act. 4.5: Study on forest resource processing alternatives in the province of Atalaya

605 1 Miscellaneous 1 sundry 400 400 400

40

Quantity ITTO

Outputs & Activities

Cod

e

Qua

ntity

Inputs

Year

1

Year

2 U

nit Unit Cost

(US$) Sub-total

(US$) TOTAL (US$)

Year 1 Year 2

Exec

utin

g Ag

ency

OVERALL COSTS 238480

111 1 Project Coordinator 12 12 m/m 4500 108000 54000 54000

121 1 Coordinator Assistant 12 12 m/m 2500 60000 30000 30000

44 2 Motorcycles 1 unit 3500 7000 7000

44 2 PCs 1 unit 2000 4000 4000

55 3 Software 1 unit 1300 3900 3900

25 1 Sub-contract – Office rental 12 12 unit 250 6000 3000 3000

331 1 Transport 12 12 unit 220 5280 2640 2640

311 1 DSA 120 120 unit 50 12000 6000 6000

45 1 Office furniture 1 unit 5000 5000 5000

54 1 Materials 12 12 unit 150 3600 1800 1800

603 1 Insurance 1 1 year 650 1300 650 650

604 1 Auditing 1 1 year 4000 8000 4000 4000

601 1 Communication services 12 12 unit 100 2400 1200 1200

602 1 Utilities 12 12 unit 100 2400 1200 1200

53 1 Fuel 12 12 unit 300 7200 3600 3600

52 1 Equipment maintenance 12 12 unit 100 2400 1200 1200

PERU Sub-total 129000 129000

ITTO Sub-total 884850 377870 506980

SUB-TOTAL 1013850

41

Quantity ITTO

Outputs & Activities

Cod

e

Qua

ntity

Inputs

Year

1

Year

2 U

nit Unit Cost

(US$) Sub-total

(US$) TOTAL (US$)

Year 1 Year 2

Exec

utin

g Ag

ency

Refund of pre-project costs

ITTO monitoring and review 20000 Ex-post evaluation 15000

ITTO programme support costs 73588

Executing agency management costs 152078

TOTAL 1274516 ITTO contribution 993438

HELVETAS, DGFFS & Municipality of Atalaya

281078

* DGFFS contribution is an estimation of the time to be spent by its staff in the supervision of project activities.

42

3.4.2 Consolidated budget by component

Item Description Total Year 1 Year 2

10 Personnel

11 DGFFS, Regional Gov't of Ucayali and Municipality of Atalaya Staff 129000 51000 78000

111 Project Coordinator 108000 54000 54000

112 National Expert in Forest Industry 48000 48000

113 National Expert in Administration 72000 72000

114 National Expert in Communication and Outreach 48000 48000

115 National Training Expert 60000 60000

121 Coordinator's Assistant 60000 30000 30000

131 National Consultant in Forest Evaluation 12000 12000

132 National Consultant in PIP Development 24000 24000

133 National Consultant in Environmental Impact 16000 16000

134 Consultant in Social and Environmental Responsibility 16000 16000

135 National Consultant in Information Technology (IT) 20000 20000

136 National Consultant in Finance 16000 16000

137 National Consultant in Forest Certification 24000 24000

138 National Consultant in Legislation 12000 12000

139 Consultants in miscellaneous topics 40000 40000

19 Personnel Sub-total 705000 235000 470000

20 Sub-contracts

21 Sub-contract 1 36000 36000

22 Sub-contract 2 28000 28000

23 Sub-contract 3 34000 34000

24 Sub-contract 4 25000 25000

25 Sub-contract – Office rental 6000 3000 3000

29 Sub-contracts Subtotal 129000 126000 3000

30 Duty travel

311 National DSA 57750 16500 41250

331 National and local transport 19800 5720 14080

39 Duty travel Sub-total 77550 22220 55330

40 Capital items

44 PCs 11000 11000

45 Office furniture 5000 5000

49 Capital items Sub-total 16000 16000

50 Consumable items

52 Equipment maintenance 2400 1200 1200

53 Utilities 7200 3600 3600

54 Materials 52100 11300 40800

55 Software 3900 3900

59 Consumable items Subtotal 65600 20000 45600

43

Item Description Total Year 1 Year 2

60 Miscellaneous

601 Communication services 2400 1200 1200

602 Utilities 2400 1200 1200

603 Insurance 1300 650 650

604 Auditing 8000 4000 4000

605 Sundry 6600 2600 4000

69 Miscellaneous Sub-total 20700 9650 11050

SUB-TOTAL 1013850 428870 584980

70 Management costs 152078 64331 87747

71 Executing agency management costs 152078 64331 87747

80 Project monitoring and administration

81 ITTO monitoring and review costs 20000

82 ITTO mid-term evaluation

83 ITTO final evaluation

84 ITTO ex-post evaluation 15000

85 ITTO programme support costs 73588

100 GRAND TOTAL 1274516

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3.4.3 ITTO budget by component

Item Description Total Year 1 Year 2

10 Personnel

111 Project Coordinator 108000 54000 54000

112 National Expert in Forest Industry 48000 48000

113 National Expert in Administration 72000 72000

114 National Expert in Communication and Outreach 48000 48000

115 National Training Expert 60000 60000

121 Coordinator's Assistant 60000 30000 30000

131 National Consultant in Forest Evaluation 12000 12000

132 National Consultant in PIP Development 24000 24000

133 National Consultant in Environmental Impact 16000 16000

134 Consultant in Social and Environmental Responsibility 16000 16000

135 National Consultant in Information Technology (IT) 20000 20000

136 National Consultant in Finance 16000 16000

137 National Consultant in Forest Certification 24000 24000

138 National Consultant in Legislation 12000 12000

139 Consultants in miscellaneous topics 40000 40000

19 Personnel Sub-total 576000 184000 392000

20 Sub-contracts

21 Sub-contract 1 36000 36000

22 Sub-contract 2 28000 28000

23 Sub-contract 3 34000 34000

24 Sub-contract 4 25000 25000

25 Sub-contract – Office rental 6000 3000 3000

29 Sub-contracts Subtotal 129000 126000 3000

30 Duty travel

311 National DSA 57750 16500 41250

331 National and local transport 19800 5720 14080

39 Duty travel Sub-total 77550 22220 55330

40 Capital items

44 PCs 11000 11000

45 Office furniture 5000 5000

49 Capital items Sub-total 16000 16000

50 Consumable items

52 Equipment maintenance 2400 1200 1200

53 Utilities 7200 3600 3600

54 Materials 52100 11300 40800

55 Software 3900 3900

59 Consumable items Subtotal 65600 20000 45600

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Item Description Total Year 1 Year 2

60 Miscellaneous

601 Communication services 2400 1200 1200

602 Utilities 2400 1200 1200

603 Insurance 1300 650 650

604 Auditing 8000 4000 4000

605 Sundry 6600 2600 4000

69 Miscellaneous Sub-total 20700 9650 11050

SUB-TOTAL 884850 377870 506980

70 Management costs

71 Executing agency management costs

80 Project monitoring and administration

81 ITTO monitoring and review costs 20000

82 ITTO mid-term evaluation

83 ITTO final evaluation

84 ITTO ex-post evaluation 15000

85 ITTO programme support costs 73588

100 GRAND TOTAL 993438 3.4.4 Executing agency budget by component

Item Description Total Year 1 Year

10 Personnel

11 DGFFS, Regional Gov't of Ucayali and Municipality of Atalaya Staff * 129000 51000 78000

19 Personnel Sub-total 129000 51000 78000

SUB-TOTAL 129000 51000 78000

70 Management costs 152078 64331 87747

71 Executing agency management costs 152078 64331 87747

100 GRAND TOTAL 281078 * The contributions of DGFFS, the Regional Government of Ucayali and the Municipality of Atalaya are an estimation of the time to be spent by their staff in the supervision of project activities.

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3.5 ASSUMPTIONS, RISKS AND SUSTAINABILITY 3.5.1 Assumptions and risks Risks In general terms, the project may encounter the following risks that could hinder its implementation and success:

Demotivation of project beneficiaries: The major risk is that the main project beneficiaries, industrialists, concessionaires and indigenous communities may believe that they are not equitably taken into consideration by the project. This could result in a loss of motivation to continue participating in project activities, thus reversing the progress made to date. In order to avoid this risk, participatory activities have been included as part of each of the project outputs so as to ensure that key project stakeholders and beneficiaries can participate in the design of the outputs by presenting their own views. Similarly, output 4 establishes a communication and outreach system to ensure that all stakeholders and the population in general are aware of the implementation of project activities so as to facilitate their participation. Furthermore, since the project design stage, the project has been working with all stakeholders, including through the implementation of a workshop in the city of Atalaya held with the participation of key stakeholders, where they identified the most important problems and gave their suggestions on how to solve them, which was used as the basis for the development of this project proposal.

Assumptions In order to ensure the successful achievement of the proposed development objective, the following assumptions have been considered:

The Government of Peru has a policy aimed at the development of the forest sector. The Regional and Local Governments are interested in participating in the project. The organizations of indigenous communities, concessionaires and industrialists support the

project. Furthermore, the following assumptions have been considered for the successful achievement of the project specific objective:

The local population, indigenous communities, concessionaires and industrialists agree with the project.

In addition, to produce the proposed outputs, the following conditions will be required:

The local government agrees with and supports the project. The Ministry of Economy and Finance is willing to facilitate and support the PIPs (Public

Investment Projects) formulated by the project. The DGFFS, OSINFOR, SUNAT and the Ministries of Production and Labor agree to participate

in the project. Financial institutions agree to participate in the project. Local organizations and regional and local governments are interested in receiving training on

this topic.

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3.5.2 Sustainability The project has been designed to ensure its social, technical, institutional, economic and political sustainability as described below:

Social sustainability: The design of this project takes into account local needs, which are identified through participatory methods. Scheduled activities take into consideration the opinions of key stakeholders in resolving identified problems. Furthermore, the project also takes into account the experience of the population in relation to the forest sector as well as the traditional knowledge of indigenous communities. Given the participatory approach of this project, target beneficiaries will feel a sense of ownership of the expected outcomes. The involvement of the local population in the implementation of activities will promote this sense of ownership. The project also takes into account the significant role played by women in forest activities, and places great emphasis on gender issues for the implementation of scheduled activities.

Technical sustainability: Capacity building activities will allow for the continued use of new technologies introduced during the implementation of the project. These technologies will be adapted as far as possible to local conditions and traditional knowledge.

Institutional sustainability: The project considers that institutional capacity is a fundamental element to ensure the sustainability of activities and it will be the local and regional authorities, as well as the organizations of key stakeholders, that will encourage the implementation of initiatives aimed at improving and managing forest resource harvesting and processing activities.

Financial and economic sustainability: To ensure the sustainability of the results obtained, the project has been structured so as to allow for a period of 2 years for the achievement of the specific objective. The first few months of the project will be devoted to determining the location and design of the Forest Industrial Park, as well as to training key stakeholders. The project will also design and implement the services to be provided by the Park, which will be key elements for its sustainability. With the implementation of the Park and through the administration services company, the project will establish the fees that the users of the Forest Industrial Park must pay. These fees will be duly based on the services provided and should cover all related costs, so as to ensure the Park’s financial and economic sustainability. The project will also establish a financial services unit, where financial institutions and forest product harvesting and processing companies can negotiate the required credits and conditions to ensure the viability of the development of forest activities.

Political sustainability: For the formulation of the project, the national policy framework as well as the

local and regional regulations have been assessed and taken into account. At the national level, the legal framework provides adequate support for the implementation of the project (Framework Law for the Development of Industrial Parks, Act No. 28183 and its Regulations). In addition, project activities will contribute to demonstrate the applicability of existing regulations related to project strategies. It is expected that the Local Government, with the support of forest sector related institutions should, on the basis of the identified regulations, continue with the implementation of the activities initiated by the project.

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PART 4. IMPLEMENTATION ARRANGEMENTS 4.1 ORGANIZATION STRUCTURE AND STAKEHOLDER INVOLVEMENT MECHANISMS 4.1.1 Executing agency and partners The General Forest and Wildlife Directorate (DGFFS) of MINAG is the technical agency responsible for forest and wildlife related activities in Peru and therefore, the implementation of this project falls under its mandate. The project executing agency will be HELVETAS Swiss Intercooperation, an institution with more than 30 years of proven experience in the coordination of cooperation programs aimed at poverty alleviation, as well as extensive experience in the management of natural resources, particularly forest resources, as described in Annex 1. The co-executing agency will be the Provincial Municipality of Atalaya, a local government institution with 10 years experience in the promotion of integrated, sustainable and harmonious development in its province, as well as in the implementation of projects. Their main responsibilities in the implementation of the project will be as follows: Management responsibilities: strategic contributions for project execution and provision of guidance for the development and implementation of the yearly plan of operation and corresponding activities:

DGFFS will establish general implementation guidelines, monitor their compliance and participate in the Steering Committee. Its professional staff, together with the staff of the Regional Forest Authority, will actively participate in all project activities, as well as in supervisory work, so as to become thoroughly familiar with the project and thus ensure its continuity.

HELVETAS Swiss Intercooperation will be responsible to DGFFS for the technical implementation of the project and for the administration of financial resources. It will manage the resources provided by ITTO and will recruit the project's technical personnel. It will also be responsible for the scheduling of activities, monitoring and evaluation, and will coordinate the Steering Committee.

The Provincial Municipality of Atalaya will be responsible for coordinating with regional and local authorities. It will support the implementation of the project at the local level and will participate in the selection and technical supervision of the project team/consultants. It will participate in the Project Steering Committee and will assist in the planning and implementation of activities (annual planning, project evaluation, and internal mid-term review, among others).

All project activities will be grouped by broad thematic areas and organized by heading for a more efficient implementation. These headings/areas are: Industrial Development, and Capacity Building and Related Services. Activities in the Industrial Development area will include actions related to the design and establishment of the Forest Industrial Park of Atalaya, as well as all necessary studies and surveys. The Capacity Building and Related Services area will comprise activities related to the training of stakeholders in key issues to improve the harvesting, processing and marketing of forest products. In addition, this area will include the organization of related services within the Park, such as financial, commercial and communication services, among others. The project organizational structure is shown below:

STEERING COMMITTEE

HELVETAS Swiss Intercooperation Executing Agency

Provincial Municipality of Atalaya Co-executing Agency

General Coordinator

Industrial development Capacity building and related services

Administration

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4.1.2 Project management team In order to ensure fluent information-sharing between the two areas (mentioned in the previous section) and a better integration of activities, a General Coordinator will be appointed to coordinate the various project components as a whole. The General Project Coordinator will coordinate actions both within and outside the project with the support of other institutions, including the conclusion of agreements as required. The project management team will include the following:

Project Coordinator Project Technical Assistant National Expert in Forest Industry National Expert in Administration National Expert in Communications and Outreach National Training Expert

A description of these positions and their responsibilities appears in Annex 3. 4.1.3 Project Steering Committee The Project Steering Committee will be made up as follows:

A chairperson appointed by the executing agency (HELVETAS Swiss Intercooperation) An ITTO representative A DGFFS representative A representative of the Regional Government of Ucayali – Atalaya Sub-Region A representative of the Provincial Municipality of Atalaya A representative of the Indigenous Organizations of Atalaya A representative of forest concessionaires in the Province of Atalaya A representative of industrialists registered to become part of the Industrial Park of Atalaya The project coordinator (as observer and secretary of the Project Steering Committee)

This Committee will be responsible for the approval of annual plans and reports. In addition, the Committee will be responsible for ensuring that project actions are consistent with the basic guidelines established for the achievement of project outcomes and objectives. Furthermore, the Committee will provide guidance and recommend remedial actions if the project is deviating from its basic guidelines. 4.1.4 Stakeholder involvement mechanisms The Steering Committee will include representatives of indigenous community organizations, forest concessionaires and industrialists, who are the main stakeholders and beneficiaries of the project. This will guarantee stakeholder involvement in the direction of the project. In addition, during the implementation of the project, each of the activities will include participatory mechanisms to ensure the involvement of representatives from native community organizations, forest concession holders, industrialists and all other project stakeholders, so as to seek their feedback and contributions for decision-making. 4.2 REPORTING, REVIEW, MONITORING AND EVALUATION

Progress reports Based on the project work plan, the first progress report will be submitted by the end of the first year of the project, when objectively verifiable tangible outputs should have been achieved.

Project completion report The Project Completion Report will be submitted within the period established by ITTO (within three months of project completion). This report shall mainly describe project achievements in terms of both outputs produced

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and objectives attained, as well as all aspects related to project implementation, including methodology, organization, costs/expenditures, conclusions and recommendations.

ITTO monitoring and review Based on the project work plan, it is considered that the best timing for monitoring reviews would be every 12 months, after the submission of progress reports, when objectively verifiable results should be available.

Evaluation It is recommended that the project be evaluated two months after completion, when most of the project results should have been achieved.

Monitoring and reporting schedule A preliminary monitoring and reporting schedule is given below, indicating possible dates for visits to the executing agency:

Description Date First progress report By the end of year 1 First monitoring mission 18 months after project start-up Project completion report 1 month after project completion Final evaluation 2 months after project completion

4.3 DISSEMINATION AND MAINSTREAMING OF PROJECT LEARNING 4.3.1 Dissemination of project results Throughout the implementation period, the information generated by the project will be disseminated through different media taking into account the circumstances of each location. The data generated and analyzed as part of the implementation of the project will be disseminated at the local and regional levels through specific sessions for the presentation of partial results and upon project completion. The participation of local and regional authorities will be essential for the dissemination of information. At the macro level, the main findings will be posted in the web page of HELVETAS Swiss Intercooperation, as well as through the webpage of ASOCAM, the information management mechanism associated to the executing agency. Access to project-generated information will be freely available to the general public. 4.3.2 Mainstreaming of project learning As part of the implementation of the project, the organization of workshops is envisaged for mainstreaming and dissemination of project information through the various implementation stages. Furthermore, the possible involvement of different stakeholders will be reported in advance and their participation will be facilitated. The progress made in the achievement of expected outcomes will be mainstreamed among other institutions and organizations directly or indirectly related to the implementation of the project. As a result of this mainstreaming process, it will be possible to obtain feedback on the implementation of planned activities. In addition, the mainstreaming of project results will create synergies with other institutions involved in the same areas, as well as ensuring replication of successful project activities in other similar forest ecosystem regions. During the implementation of the project, the participation of key stakeholders in information sharing activities will be encouraged so as to establish links with institutions and organizations implementing similar initiatives in other geographic areas.

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ANNEX 1. Profile of the executing agency HELVETAS Swiss Intercooperation is a non-profit civil association operating with more than 1,200 contributors in 30 countries throughout the world. It promotes development processes focused on poverty alleviation by implementing projects and services through partnerships with local partners and international cooperation funding, including public and private sector funds. The association has been operating in Peru since 1982 under the name of Intercooperation. Since 1 July 2011, it was merged with HELVETAS (established in 1955) to form what is now known as "HELVETAS Swiss Intercooperation". It has 30 years of proven experience in the conduction of cooperation programs aimed at the reduction of poverty. The association has made significant achievements and has learned lessons in key issues for the development of the Andean Region, including: sustainable management of natural resources, particularly forest resources; land economic development; governance; climate change; and knowledge and information management. Its key financing sources include the European Union, World Bank, ITTO - International Tropical Timber Organization, DFID (United Kingdom), GTZ (Germany), IDRC (Canada), SIDA (Sweden) and SECO, with the Swiss Agency for Development and Cooperation (COSUDE) being the main source. Its main thematic areas are: management of natural resources and climate change, rural economics, and good governance and civil society participation. HELVETAS Swiss Intercooperation has extensive experience in the management of natural resources and has specialized in a wide range of issues, including: Tropical and temperate forestry Collaborative forest management and agroforestry Timber and non-timber forest product trade Sustainable livelihoods, horticulture and cattle-ranching Participatory innovation development Sustainable water and soil management Environmental services Climate change adaptation and mitigation Design of incentives for sustainable forest management HELVETAS Swiss Intercooperation's experience with ITTO: HELVETAS Swiss Intercooperation has worked with ITTO since the establishment of the Organization. Among other things, it has provided technical support in the following areas:

- Criteria and indicators for sustainable forest management - Restoration and rehabilitation of secondary forests - Transboundary forest ecosystems - Since 2001, Intercooperation has advised ITTO on issues related to the role of tropical forests in the

negotiations of the United Nations Framework Convention on Climate Change - UNFCCC (reports presented in 2002, 2006, 2007 and 2008 and preparation of 2009 report).

- Technical assistance for the design and implementation of projects. - Intercooperation has been a member of the Swiss Delegation to the ITTC since the first Council

Session.

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HELVETAS Swiss Intercooperation's experience in Peru: The association has extensive experience in the management of water, agricultural and forest resources in the Andes. Key examples of projects implemented in the field and at the institutional level in Peru are: Community Management of Forest Ecosystems (ECOBONA), financed by the Swiss Cooperation Agency

(COSUDE) Management of Water Resources with a Production and Human Development Focus in the Communities

of Poor Rural Municipalities (MASAL), financed by the Swiss Cooperation Agency (COSUDE) Promoting the Competitiveness of Small Rural Producers and Impact on Local Economic Development

Policies (APOMYPE), financed by the Swiss Cooperation Agency (COSUDE) Climate Change Adaptation and Impacts on Public Policies (PACC), financed by the Swiss Cooperation

Agency (COSUDE). MASAL, ECOBONA and PACC operate in an interface between the management of natural resources and governance and civil society participation, seeking to strengthen regional and local governments to that end.

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ANNEX 2. Tasks and responsibilities of key experts provided by the executing agency HELVETAS Swiss Intercooperation's pool of experts is described below:

Name Expected role /responsibilities

in the project Personal details

Professional education Current position Work experience relevant to the

project

Roberto Kómetter

Provide guidance and support to the project team

Peruvian national, born in 1956

Forest Engineer, graduated from UNALM Post-graduate studies in Forest Management and Evaluation at the FTP (Finland) and in Low-Impact Forest Harvesting at IFT/FFT (Brazil)

Natural Resources and Climate Change Specialist

Forest evaluation, low-impact logging and management, international consultant, development of project proposals approved and financed by ITTO, WWF Sustainable Forest Management Manager (2002-2006)

Carola Amezaga

Consultancy in economic development, finance and marketing

Peruvian national, born in 1960

Degree in Economics (1990), Pontifical Catholic University of Peru

Associate Program Director PERU

Economic Development Area Coordinator

Experience in the management of development projects with international cooperation funding, specialization in agro-food marketing

Binolia Porcel

Consultancy in governance, participatory processes and social equity approach

Peruvian national, born in 1959

Degree in Economics from the University of San Antonio Abad of Cuzco, 1987 Development studies diploma (1992-1994) from the University Institute for Development Studies, University of Geneva, Switzerland

Specialist in Governance, Gender, and Monitoring and Evaluation

Consultancy for the design of a Local Economic Development Program for the regions of Quezatenalgo and Totonicapán in Guatemala. Institutional strengthening for the DEL, public-private agreement mechanisms for the DEL, Instruments and Methodologies for the DEL

Patricia Camacho

Institutional supervision Ecuadorean national, born in 1960

Degree in Economics, Pontifical Catholic University of Quito/ Ecuador, 1984 Master's Degree in Business Management, INCAE/ Costa Rica, 1998

Program Director - PERU

Forestry and participatory processes for the sustainable management of natural resources, management of cooperation projects

Eric Chevallier

Backstopping in community forestry

Swiss national, born in 1955

Forest Engineer, Federal Polytechnic School of Zurich (1980) Post-graduate degree in Forest Resources, Pennsylvania State University – USA (1985)

Program Coordinator

Forestry and participatory processes for the sustainable management of natural resources, diversification of production systems, management of cooperation and partnership development projects, strengthening of professional skills and institutional capacity building

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ANNEX 3. Terms of reference of personnel, consultants and sub-contracts funded by ITTO 1. Project Coordinator Forest engineer with 10 years experience in the areas of planning and administration of forest industries. Also, experience in personnel management and public relations. Duties: (i) Coordinate the project staff and provide technical and administrative guidance for the implementation

of planned activities. (ii) Develop detailed work plans and budgets for each year. (iii) Plan and coordinate project implementation in close cooperation with the General Forest and Wildlife

Directorate of MINAG. (iv) Supervise the selection of project consultants. (v) Coordinate the implementation of activities and take the necessary measures to implement the project

in accordance with the established work plan. (vi) Ensure the achievement of project objectives and outputs. (vii) Monitor project work and guide the preparation of progress and technical reports. 2. Project Technical Assistant Forest or industrial engineer with 3 years experience in the forest industry. The assistant will support the implementation of project activities in close coordination with the Project General Coordinator. Duties: (i) Provide support for the planning and implementation of project activities. (ii) Provide support for the management of the Programme Information System, including monitoring

commitment compliance. (iii) Provide technical support to the Project Coordinator in the preparation of six-monthly and annual project

progress reports. (iv) Assist in the organization of project dissemination and awareness-building events. (v) Provide support in the monitoring of consultancies and contracted studies. (vi) Generate and provide technical information to prepare project documents and other documentation as

required. (vii) Keep a record of group activities (workshops, etc.) and submit reports on such activities together with

the monthly reports. 3. National Expert in Forest Industry Forest engineer with 8 years experience in the design and implementation of industrial processing of forest products. Duties: (i) Study on the use of alternative energy sources. (ii) Study on forest resource processing alternatives in the Province of Atalaya. (iii) Identification of a waste disposal system for PIFA.

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4. National Expert in Administration Business administrator with 8 years experience in the constitution and administration of forest industries. Duties: (i) Design, organization and constitution of an autonomous and participatory administration services

company for the Forest Industrial Park of Atalaya integrating PIFA users and key forest sector stakeholders in Atalaya.

(ii) Design and organization of a multi-service monitoring module for DGFFS, SUNAT, the Ministry of Industry and the Ministry of Labour.

(iii) Design and organization of professional services unit. (iv) Design and organization of social and environmental responsibility unit for the Park. (v) Organization of public tender process for the allocation of industrial spaces in the Forest Industrial Park. 5. National Expert in Communications and Outreach Professional in communications with 8 years experience in communication and outreach processes related to forest projects. Duties: (i) Design and implementation of a communication and outreach system for the Park. 6. National Training Expert Education professional with 8 years experience in the design and implementation of technical training programs for adults. Duties: (i) Development of training plan on the sustainable harvesting, processing and marketing of forest

products and business administration in Atalaya. (ii) Implementation of training plan. 7. National Consultant in Forest Evaluation Forest engineer with 8 years experience in forest evaluation. Duties: (i) Identification of forest production potential in Atalaya. 8. National Consultant in PIP Development Forest engineer or economist with 8 years experience in the development of public investment projects. Duties: (i) Development of PIP and viability study for the basic urban installation of the Forest Industrial Park of

the Province of Atalaya (electricity, water, sewerage, roads). (ii) Development of PIP and viability study for the construction of the river loading port of Atalaya. 9. National Consultant in Environmental Impact Forest engineer, biologist or environmental expert with 8 years experience in the implementation of environmental impact assessments for industrial processes. Duties: (i) Environmental impact assessment.

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10. National Consultant in Social and Environmental Responsibility Economist or environmental expert with 8 years experience in social and environmental responsibility adjustment projects. Duties: (i) Design and organization of social and environmental responsibility unit for the PIFA. 11. National Consultant in Information Technology Information technology (IT) professional with 8 years experience in the design and implementation of information systems. Duties: (i) Design and organization of on-line information system on product supply and input requirements. 12. National Consultant in Finance Economist specialized in finance with 8 years experience in industry financing, preferably with experience in the forest sector. Duties: (i) Design and implementation of a financial services unit for the Park. 13. National Consultant in Forest Certification Forest engineer with 5 years experience in VFC processes. Duties: (i) Promotion of Voluntary Forest Certification to facilitate product marketing. 14. National Consultant in Legislation Lawyer with 8 years experience in the constitution of companies and development of institutional regulations. Duties: (i) Participatory development of Regulations for the Forest Industrial Park of Atalaya.

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ANNEX 4. Curricula Vitae of HELVETAS Swiss Intercooperation's Pool of Experts  

Nombre del profesional:  ROBERTO KOMETTER MOGROVEJO  

Fecha de Nacimiento: 01 de Mayo de 1956  

Nacionalidad:   PERUANA 

Tiempo  en  la  institución  o  instituciones miembro del consorcio 

Función en el equipo: Especialista en Recursos Naturales y Cambio Climático   7 Años 

HELVETAS  Swiss Intercooperation 

Formación Profesional Universidad Nacional Agraria La Molina/Ingeniero Forestal/1981 FTP (Finlandia)/Post grado en Manejo Forestal/1996 IFT/FFT  (Brasil)/Post  grado  en  Aprovechamiento  Forestal  de  Bajo Impacto/2005 CATIE (Costa Rica) Post Grado ACC/2011  

Idiomas: (leer/hablar/escribir) Español Ingles (intermedio)  

Calificación clave del profesional: Evaluación y Manejo de Recursos Naturales, Adaptación y Mitigación del Cambio Climático Experiencia en Bolivia, Colombia, Ecuador, Guatemala, Honduras, Nicaragua, Guinea Ecuatorial y Perú.  

Experiencia profesional 

Años  Institución  Cargo o funciones  Breve descripción 

2006‐2011  INTERCCOPERATION 

Programa  Regional  de Gestión  Social  de Ecosistemas  Forestales  ‐ ECOBONA.  (Bolivia, Ecuador y Perú) 

Responsable  de  las  acciones  conjuntas  con  los Gobiernos Locales, Regionales y comunidades, sobre manejo forestal sostenible, alternativas productivas, incidencia política y gestión de conocimientos para la Gestión Social en Ecosistemas Forestales 

2002‐2005  WWF Perú Gerente  de  Manejo Forestal Sostenible 

Promoción  del  Manejo  Forestal  Sostenible  en comunidades,  pequeñas  y  medinas  concesiones. Certificación FSC de concesiones forestales 

2008‐2011  Banco Mundial  Consultor 

Elaboración  Tabla  Nacional  de  Guatemala  de conversión volumétrica de madera en  rollo en pie a madera  aserrada  por  calidades  según  las  reglas internacionales  de  clasificación  de madera  ‐‐NHLA‐ de la especie de caoba (Swietenia macrophylla)). 

1999‐2007 Conservacion Internacional 

Consultor Elaboración de proyectos para ser presentados a  la OIMT 

1998  ITTO  Consultor Planificación  del  Inventario  Forestal  Nacional  de Bolivia 

1989‐1992 FAO  (Naciones Unidas) 

Consultor 

Responsable  de  la  Evaluación  Nacional  de  los Recursos  Forestales  de  la  República  de  Guinea Ecuatorial (Africa).  Implementación  de  la  Unidad  Piloto  de  Manejo  y Producción  Forestal  de  la  República  de  Guinea Ecuatorial 

1984‐2002  UNALM  Profesor Cursos:  Medición  Forestal,  Inventarios  Forestales, Foto interpretación Forestal y Manejo Forestal 

  

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Nombre del profesional: MARIA CAROLA AMÉZAGA RODRÍGUEZ 

Fecha de Nacimiento: 07 de febrero 1960 

Nacionalidad:   PERUANA 

Tiempo  en  la  institución  o  instituciones miembro del consorcio 

Función en el equipo: DIRECTORA ADJUNTA PROGRAMA PERÚ RESPONSABLE AREA DESARROLLO ECONÓMICO  

7 Años HELVETAS  Swiss Intercooperation 

Formación Profesional PONTIFICIA  UNIVERSIDAD  CATÓLICA  DEL  PERÚ  /  LICENCIADA  EN ECONOMÍA / 1990 

Idiomas: (leer/hablar/escribir) Español, idioma materno FRANCES (leo, hablo) INGLES (leo) 

Calificación clave del profesional:  EXPERIENCIA  EN  GESTION  DE  PROYECTOS  DE  DESARROLLO  CON  RECURSOS  DE  COOPERACION  INTERNACIONAL, ESPECIALIZACION EN MARKETING AGROALIMENTARIO 

Experiencia profesional 

Años  Institución  Cargo o funciones  Breve descripción 

2005 ‐ 2012  Intercooperation Coordinadora Nacional Programa APOMIPE 

Programa  de  COSUDE  y  Produce  de promoción  de  redes  empresariales conformadas  por micro  empresas  rurales  de subsistencia  

2002 ‐ 2005 Presidencia  del Consejo  de Ministros 

Coordinadora  del  Programa  de Modernización del Estado 

Contrato  BID  /  ejes  temáticos:  organización del  poder  ejecutivo,  gestión  de  RR  HH, gobierno  electrónico,  gestión  de  compras gubernamentales,  pilotos  de modernización, modernización  de  la  PCM  /  preparación  de condiciones previas al desembolso 

1997 ‐ 2002  Caritas del Perú Jefe de la Unidad de Planificación, Monitoreo y Evaluación 

Red  de  49  caritas  diocesanas  en  el  Perú  / proyectos  de  seguridad  alimentaria  con recursos de USAID. 

1997 

Ministerio  de Trabajo  y Promoción  del Empleo 

Coordinadora  de  Sistematización del  Programa  Servicio  de Información  Laboral  (Sil)  / Consultora  para  el  Diseño  del Programa PROFECE 

Proyecto de COSUDE / proyecto de CAF 

1993 ‐ 1996  PACT Inc 

Coordinadora  de  Capacitación  / Coordinadora  de  Fortalecimiento Institucional  /  Coordinadora  de Monitoreo y Evaluación 

Proyecto de USAID / capacitación a 150 ONGs de  departamentos  con  mayor  incidencia  de pobreza  /  fortalecimiento  de  consorcios  de ONGs en Ayacucho y Cajamarca 

1983 ‐ 1991  DESCO 

Jefe  de  Proyecto  Red  de Abastecimiento  de  Alimentos  de los Comedores Populares del Cono Sur de Lima / Investigadora 

Recursos  de  CEBEMO:  promoción  de  la autogestión  de  los  comedores  populares  /  investigadora en  temas agrarios: parcelación de cooperativas en la costa (fundación FORT), evolución de la estructura productiva agrícola 1960 – 1980 (fundación Volkswagen) 

 

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Nombre del profesional: BINOLIA PORCEL LUNA 

Fecha de Nacimiento: 07 de diciembre 1959 

Nacionalidad:  PÉRUANA 

Tiempo  en  la  institución  o  instituciones miembro del consorcio 

Función en el equipo: ESPECIALISTA  EN  GOBERNABILIDAD,  GENERO  Y  MONITOREO  Y EVALUACION  3.5 años 

HELVETAS  Swiss Intercooperation  

Formación Profesional 

Pontificia Universidad Católica del Perú; Maestría en Gerencia Social con mención en Gestión de Riesgos, 2011 a la actualidad. 

Belly Knowledge Manangement International; Diploma en Gestión del Conocimiento; 2009. 

Universidad Pacífico; Diploma en Globalización, Competitividad y Desarrollo Empresarial; 2007. 

Instituto Universitario de Estudios del Desarrollo, Universidad de Ginebra; Diploma en Estudios del Desarrollo; 1992‐1994. 

Universidad San Antonio Abad de Cusco; Título de Economista; 1987. 

Idiomas: (leer/hablar/escribir) Español Francés Quechua (hablado)  

Calificación clave del profesional:  

Gobernabilidad: Descentralización, Articulación Intergubernamental, Fortalecimiento Institucional, Planificación Concertada y Gestión Participativa en relación  con Gobiernos Regionales y Gobiernos Locales. 

Desarrollo Económico Local: Fortalecimiento institucional para el DEL, Instancias de concertación público‐privada para el DEL, Instrumentos y Metodologías para el DEL. 

Gestión del Conocimiento, Monitoreo y Evaluación: Sistematizaciones, Estudios de Caso, Diseño y gestión de Sistemas de Monitoreo y Evaluación orientados al impacto. 

Transversalización del Enfoque de Género: Incorporación del enfoque de género en los procesos de planificación, ejecución, monitoreo y evaluación. 

Experiencia profesional 

Años  Institución  Cargo o funciones  Breve descripción 

2008‐2011 Programa  APODER ‐ Intercooperation 

Directora Programa de Apoyo a la Descentralización  en  Espacios Rurales ‐ APODER 

Coordinación con contrapartes  nacionales (SD‐PCM, REMURPE, ANGR) y Regionales (Gobiernos Regionales de Cusco, Apurimac y Cajamarca,  

Planificación, Monitoreo y Evaluación de la intervención en los ejes de: Buen Gobierno, Desarrollo Económico Territorial y Articulación Intergubernamental. 

Participación en grupos de trabajo interinstitucional sobre descentralización. 

 2004‐2007 

Programa  APODER ‐ COSUDE  

Directora Adjunta y Coordinadora Local Cusco‐Apurimac – Programa APODER 

Apoyo  a  la  Dirección  Nacional  en Planificación, Monitoreo y Evaluación. 

Gestión de convenios con contrapartes de las  regiones  de  Cusco  y  Apurimac: Asociaciones de Municipalidades y ONGs Locales, en  los  siguientes ejes: Agenda y Debate Público, Participación y Cogestión y Promoción del Desarrollo Económico. 

Participación en espacios de coordinación interinstitucional  en  torno  a  la descentralización.  

2001‐2004  FONCODES‐FIDA 

 Responsable  de  Planificación, Seguimiento  y  Evaluación  del Proyecto  de  Desarrollo  del Corredor Puno‐Cusco. 

Apoyo a  la Dirección del Proyecto en  las relaciones  interinstitucionales  con municipalidades  e  instituciones  locales  y regionales de Cusco y Puno. 

Diseño  y  gestión  del  Sistema  de Planificación,  Seguimiento  y  Evaluación 

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del Proyecto Corredor Puno Cusco. 

Sistematización de experiencias. 

Intercambio  de  experiencias  con proyectos  FIDA  de  Uruguay,  Argentina, Venezuela y Nicaragua. 

1998‐2001  PROANDES‐UNICEF Consultora  en  Género  y Fortalecimiento a las Capacidades de Gestión Local 

Asesoría  y  apoyo  técnico  para  la constitución y fortalecimiento de Comités de  Gestión  Local,  con  participación  de actores públicos y privados. 

Asesoría  en  procesos  de  concertación, planificación,  gestión,  monitoreo  y evaluación,  con  enfoque  participativo  y de  género,  con  énfasis  en  el empoderamiento  de  los  actores  de  base para  su  participación  en  espacios  de toma de decisiones. 

Asesoría  para  el  fortalecimiento institucional  y  fortalecimiento  de organizaciones de base. 

1996‐1998   1994‐1995  1989‐1992 

CENTRO BARTOLOMÉ  DE LAS CASAS  

Directora  del  Programa Consultorías Regionales  Coordinadora  de  la  Oficina Regional de Apoyo Municipal  Asesora de  la Oficina Regional de Apoyo Municipal  

Asesoría en Planificación y Gestión Municipal a Municipalidades de Cusco, Apurímac y Madre de Dios. 

Ponencias sobre temas de Planificación, Participación, Ciudades Intermedias y Descentralización. 

Asesoría para la elaboración de Planes de Desarrollo Concertado y funcionamiento de Mesas de Concertación. 

1985‐1989 

MINISTERIO  DE AGRICULTURA  – PROYECTO ESPECIAL  “CENTRO DE SERVICIOS PARA LA  PEDAGOGIA AUDIOVISUAL 

Especialista en Capacitación 

Diseño  de  “paquetes”  de  capacitación audiovisual  dirigido  a  familias campesinas. 

Capacitación  campesina  en  aspectos productivos,  de  gestión  y  de organización,  utilizando  medios audiovisuales. 

Formación de capacitadores y conducción de equipos de campo en las tres regiones del país. 

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Nombre del profesional: PATRICIA   DE LOS ANGELES CAMACHO  MANTILLA 

Fecha de Nacimiento: 3 de septiembre 1960 

Nacionalidad:  ECUATORIANA 

Tiempo  en  la  institución  o  instituciones miembro del consorcio Función en el equipo: 

Directora de Programa PERU 11 Años 

HELVETAS  SWISS INTERCOOPERATION 

Formación Profesional 

Enfoque M4P: Hacer que los mercados funcionen para los pobres,  Springfield Center /Glasgow, 2010. 

VIPP visualización de procesos participativos/Lima, 2009. 

Gestión de Conocimientos y Capital Intelectual, Escuela de Post grado en la Universidad de Belgrano/Argentina, 2006. 

Coaching: Gestión de capital humano, TECMONTERREY/ Dirección de Capital Humano 2004. 

Programa de Alta Gerencia, INCAE /Costa Rica, 1994. 

Enfoque de género en el desarrollo, VENA/Wageningen – Holanda, 1993. 

Master en Administración de Empresas, INCAE/ Costa Rica, 1998.  

Grado de ECONOMISTA, Pontificia Universidad Católica de Quito/ Ecuador, 1984. 

Idiomas: (leer/hablar/escribir) Español, idioma materno Inglés, fluido Holandés, buenos conocimientos 

Calificación clave del profesional: Competencia en procesos de gestión del conocimiento. Experiencia en la orientación estratégica y gestión de proyectos. Competencia en programas de desarrollo económico (micro empresas y micro finanzas). 

Experiencia profesional 

Años  Institución  Cargo o funciones  Breve descripción 

2011 HELVETAS  Swiss Intercooperation  

Directora Programa Perú Dirección del Programa Perú Organización  del  equipo,  rol  de  Oficial  de Programa.  

2009 – 2011    2006‐ 2009    2003 – 2005   2000 ‐ 2002 

Intercooperation 

  Delegada de la región andina con sede en Lima   Delegada de la región andina con sede en Quito     Co‐Delegada  de  la  región  andina con sede en Quito   Oficial de Proyecto 

Orientación y gerencia del programa regional para  IC  en  Ecuador,  Perú  y  Bolivia, garantizando  la calidad y productividad en  la ejecución  de  proyectos  (EMPRENDER, COMERCIALIZACION,  PODER,  APOMIPE, APODER,  FOSEFOR,  CAMAREN,  PACC,  ASOCAM)  y  mandatos  junto  a  entidades nacionales e internacionales.  Asesoría  y  orientación  en  economía  rural  y proyectos en desarrollo económico y gestión de conocimientos.  Co‐gestión del programa regional y orientación estratégica  en  el  diseño  de  los  proyectos APODER  y  APOMIPE.  Elaboración  de  planes operativos, informes y reportes anuales.  Asesoría  estratégica  y  metodológica  DET  al EMPREDER y COMERCIALIZACION.  

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1996 – 2000    Consultora independiente 

Asesoría  estratégica  para  programas  de crédito, microcrédito y finanzas rurales  

SID – Roma. Sistematización y publicación de  experiencia  en  comercialización  del cacao en Ecuador  (Sustainable Livelihoods Program) 

CTM  –  MAG.  Backstopping,  Banca  Ética Italiana en Ecuador. 

RAFAD  –  GINEBRA.  Investigación  y aplicación de  finanzas alternativas para el desarrollo.  Sistematización  sobre aplicación de fondos de garantía (foro OIT ILO, Sri Lanka). 

COOPIBO  –  VECO.  Evaluación  del programa  de  microfinanzas  rurales  en Ecuador. 

SDC  Bolivia.  Miembro  del  equipo evaluador de proyecto (PROFIN‐COSUDE) 

HIVOS – Holanda. Estudio para  inserción en Ecuador. 

Embajada de Bélgica  en  Ecuador. Diseño del programa de microfinanzas  rurales en el norte. 

Embajada  Real  de  los  Países  Bajos  en Ecuador.  Análisis  de  factibilidad  de proyecto en el sur.  

1997 – 2005 

Cooperativa  de Ahorro  y  Crédito Maquita Cushunchic 

Miembro fundador 

Organización  del  arranque,  planeación estratégica, diseño de mecanismos operativos, Presidencia  del  consejo  de  administración  y monitoreo de la gerencia de la cooperativa con las mujeres del Sur de Quito – Ecuador 

1989 – 1995  SNV  Cooperante 

Asesoría  técnica  a  la  Dirección,  Fundación MCCH  (comercio  justo):  Elaboración  de políticas,   desarrollo de capacidades de equipo, coordinación  y  asesoría  en  la  planificación, monitoreo y evaluación de proyectos para  la apertura de mercados en Canadá y USA. Participación  en  talleres  IFAT  (International Federation  for  Alternative  Trade)  en Manila  y Dublin.   

1980 – 1988  FEPP Coordinadora  del  departamento Financiero 

Miembro  del  Consejo  de  Coordinación Institucional. Revisión y análisis de Estados Financieros. Asesoría  administrativa  –  contable  a  la Dirección. Realización  de  informes  de  proyectos  para agencias donantes. Control  y  análisis  de  cartera  de 400  créditos rurales. Eventual  capacitación  administrativo  – contable a organizaciones campesinas. 

 

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  ERIC CHEVALLIER  Fecha de nacimiento    7 octubre 1955 Nacionalidad      Suiza  Formación:      Ingeniería Forestal, Escuela Politécnica Federal de Zurich (1980)         Postgrado en Recursos Forestales, Pennsylvania State University – Estados  

Unidos (1985) Idiomas:        Francés (idioma materno)         Castellano, Inglés, Alemán  Estadía de larga duración:    Burkina Faso, Ecuador, Perú Misiones cortas:     Ecuador, Perú, Bolivia, Madagascar, Tansanía, Túnez, Nicaragua,      Honduras, Vietnam           Experiencia profesional  2011 ‐  HELVETAS Swiss Intercooperation – Berna / Suiza Coordinador de Programa  2009 ‐ 2011  INTERCOOPERATION – Berna / Suiza Co‐responsable del Equipo Medio ambiente y Cambio climático Coordinación  de  equipo  especializado  y  con  demás  especialistas;  asesorías  en  tema  vulnerabilidad;  coordinación  de formación especializada  2002 ‐ 2008  INTERCOOPERATION – Berna / Suiza Responsable del Equipo geográfico América Latina y Africa Encargado  de  la  coordinación  estratégica  y  conceptual  con  las  Representaciones  de Madagascar,  Africa  del Oeste, Andes y Centroamérica, así como de las orientaciones en Túnez y Tanzania.  1999 ‐ 2001  INTERCOOPERATION – Berna / Suiza Responsable del sector Forestería‐Medio Ambiente Encargado de Programas para Malí y responsable temático para Madagascar: ‐ Identificación, planificación y seguimiento temático y metodológico de los proyectos, ‐  Gestión  y  seguimiento  de  los mandatos  en  política  forestal,  formación  e  información  especializada  en  forestería tropical ‐  Participación  en  los  procesos  de  descentralización,  y  elaboración  de  conceptos  para  las  estrategias  y  servicios institucionales y temáticas ‐ Participación en el desarrollo institucional, el seguimiento de las relaciones con el sector forestal (Suiza y global).  1995 ‐ 1998  INTERCOOPERATION – Quito / Ecuador Representante institucional para los Andes ‐ Planificación, seguimiento y evaluación de programas de desarrollo rural y de manejo de recursos naturales ‐ Participación a los discusión temáticas con las instituciones nacionales ‐ Soporte temático especializado a los programas en el tema forestal y agroforestal ‐ Coordinación de las actividades con las agencias internacionales de cooperación y los servicios nacionales.  1989 – 1995  INTERCOOPERATION – Berna / Suiza Encargado del Programa forestal en los Andes ‐ Seguimiento de los proyectos bilaterales de Ecuador, Perú y Bolivia 

Temas de especialización 

Forestería comunitaria y agroforestería 

Procesos participativos en manejo sostenible de recursos naturales 

Diversificación de sistemas productivos en tierras marginales 

Gestión de proyectos de cooperación y desarrollo de alianzas 

Fortalecimiento de competencias profesionales y de capacidades institucionales 

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‐  Identificación, planificación y evaluación de proyectos en  forestería comunitaria y de manejo sostenible de  recursos naturales ‐ Participación a las discusiones de estrategias institucionales.  1986 – 1989  INTERCOOPERATION – Pomata (Puno) / Perú Asesor técnico principal del proyecto de forestería social "Arbolandino"  ‐ Co‐gestión y administración del proyecto ‐ Coordinación de las investigaciones participativas en reforestación ‐ Formación de promotores y extensionistas ‐ Coordinación de estrategias y actividades con servicios locales y nacionales.  1985 ‐ 1986  "AGRIFOREST" – Bercher / Suiza Asistente técnico para el inventario forestal del departamento de Ginebra  1984 – 1985  PENNSYLVANIA STATE UNIVERSITY – State College / Estados Unidos Asistente de investigación al instituto de Recursos Forestales ‐ Seguimiento de la red de estaciones meteorológicas en las micro‐cuencas hidrográficas experimentales ‐ Levantamiento de datos hidrológicos y meteorológicos en las estaciones experimentales ‐ Análisis e interpretaciones de datos hidrológicos y climáticos.  1981 – 1983  Agencia Suiza para el Desarrollo y la Cooperación (COSUDE) – Ouahigouya, Burkina Faso (a partir de 1983 con Intercooperation) Asesor técnico en el proyecto de forestería comunitaria del Yatenga ‐ Coordinación de las actividades en la Provincia entre el servicio forestal y el departamento de extensión agrícola ‐ Formación forestal y metodológica de los técnicos forestales y de los extensionistas agrícolas ‐ Planificación y seguimiento de las actividades del proyecto ‐ Asesoramiento técnico en conservación de agua y protección del suelo.  1980 – 1981  Prácticas en Suiza (10 meses) y en Ghana (2 meses) ‐ Participación a trabajos silviculturales y a la elaboración de planes de manejo ‐ Planificación de pistas forestales y supervisión de obras ‐ Apoyo a la elaboración de conceptos de uso múltiple de ecosistemas forestales.  Formación adicional:   Facilitación de talleres, gestión de personal, métodos de planificación, desarrollo equitativo.   

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ANNEX 5. Statement signed by Atalaya stakeholders during the participatory development of the project proposal

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ANNEX 6. Images of the workshop held on 3 May 2012 for the participatory development of the project proposal

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ANNEX 7. Overall assessment and specific recommendations of the 44th Expert Panel and corresponding modifications 1. OVERALL ASSESSMENT AND SPECIFIC RECOMMENDATIONS PD 671/12 (I) Boosting Investments in the Processing and Marketing of Forest

Products in Atalaya (Peru) Assessment by the Forty-fourth Panel A) Overall Assessment The Panel acknowledged the relevance of the project proposal to the Government of Peru on improving the contribution of forest resources utilization to the national economy. The Panel also noted that the proposal is well formulated. The Panel requested additional baseline information of the project area, related to the status of forest industry and people involved in forest industry activities, in order to enhance the clarity of the project objectives and its interventions as they are elaborated in the Specific Recommendation below. B) Specific Recommendations The proposal should be revised taking into account overall assessment and the following:

1. If possible, add satellite imagery maps showing the current situation of the forest areas where the project site is located;

2. In Section 1.3 Target Area, add information on who are doing business in forestry sector (local or urban

people), existing social groups and their organization, and information on the negative impacts of the project implementation;

3. Check consistency of the provided figures of the number of inhabitants in the stakeholder analysis with the

figures in Section 1.3.2; 4. Improve the development objective indicators by taking into account also the increase in the number of

families involved in forest industry activities; regarding all indicators chosen, provide the baseline reference data to enable proper assessment of the gap between the existing situation and the project’s completion;

5. Make sure that the completion of the surveys of Output 1 will be adequate and sufficient to enable timely

approval of the PIFA design and consequently budget provision by the Peruvian state authorities; 6. Consider moving Activity 1.9 of Output 1 to Output 4. Distinguish Activity 4.1 of Output 4 into technical and

administrative training plans; 7. In Section 3.2 on Implementation approaches and methods, clarify sub-bullet 2 “To ensure the participation

of the local population, participatory rural assessments or other similar strategies will be used”. Clarify bullet Prior Experience;

8. In the Workplan section, extend the duration of Activity 2.1 and Activity 3.4; and 9. Include an Annex that shows the overall assessment and specific recommendations of the 44th Expert

Panel and respective modifications in tabular form. Modifications should also be highlighted (bold and underline) in the text.

C) Conclusion Category 1: The Panel concluded that the proposal could be commended to the Committee with the incorporation of amendments.

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2. MODIFICATIONS  

Overall Assessment The Panel requested additional baseline information of the project area, related to the status of forest industry and people involved in forest industry activities, in order to enhance the clarity of the project objectives and its interventions as they are elaborated in the Specific Recommendation below. There are 7 major sawmilling companies in the City of Atalaya, which are shown in the table included under Specific Recommendation 2. Forty-seven (47) percent of the formal industry in the province of Atalaya is focused on timber processing, and it is not linked to the regional marketing of timber and much less to forest harvesting operations. Timber products mostly include poles, strips, scantlings, planks, fingerjointed boards and packaging, which are all geared to the local market. It is estimated that the overall processing capacity of the forest industry is 25,000 m3/year; however, actual production only amounts to 4,586 m3. Companies not included in this group are micro-enterprises and/or small sawmilling workshops whose products are mainly geared to the local market. As of 2010, only 3% of the timber harvested in the forests of the Atalaya province reached the local industry to be processed. The remaining 97% of extracted roundwood was transported to Pucallpa for processing and marketing. Since 2011, with the opening of the Atalaya-Pto. Ocopa roadway, this percentage has increased but no statistics have been made available. The population involved in forest industry activities in the province of Atalaya comprises indigenous communities, forest concessionaires and producers, agricultural producers and traders.  Specific Recommendations 1. If possible, add satellite imagery maps showing the current situation of the forest areas where the project site is located 

Satellite imagery map of forests in the province of Atalaya

The analysis of satellite images of forests in the province of Atalaya shows physiognomic features that reflect good conservation status. Harvesting in these forests has focused on high commercial value floating timber species, which account for less than 1 m3/ha; thus, the conservation status of these forests in terms of their structure is also good. The following table, based on the satellite imagery map of forests in the province of Atalaya, shows that harvestable forests cover an area of 3,167,734 ha and less than 5% has been deforested for

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agricultural purposes and need to be restored.

Forest type Acronym

(Sp) Area (ha)

% Forestry potential

Low terrace tropical moist forest BHTTB 81,936 2.10 Harvesting

Low terrace tropical moist forest with bamboo BHTTBB 24,550 0.63 Harvesting Medium-height terrace tropical moist forest BHTTM 125,651 3.23 Harvesting High terrace tropical moist forest BHTTA 134,076 3.44 Harvesting Hillock tropical moist forest BHTL 65,826 1.69 Harvesting Low hill tropical moist forest BHTCB 741,918 19.06 Harvesting Low hill tropical moist forest with bamboo BHTCBB 1,672,112 42.96 Harvesting High hill tropical moist forest BHTCA 187,299 4.81 Harvesting High hill tropical moist forest with bamboo BHTCAB 134,366 3.45 Harvesting Hydromorphic tropical moist forest BHTH 8,472 0.22 Protection Low flood terrace tropical moist forest BHTTBI 80,821 2.08 Protection Montane moist forest BHM 384,907 9.89 Protection Agricultural lands /Secondary forests AA 190,136 4.88 Restoration Islands 13,043 0.34 Protection Lagoons 4,238 0.11 Protection Rivers 43,093 1.11 TOTAL 3,892,443 100.00

 2. In Section 1.3 Target Area, add information on who are doing business in forestry sector (local or urban people), existing social groups and their organization, and information on the negative impacts of the project implementation The forest business is currently growing in Atalaya, including forest harvesting by concessionaires and indigenous communities. Concession areas cover 1,329,150 ha while indigenous community lands cover a million hectares. Roundwood production amounts to 158,000 m3. As of 2010, only 3% of the timber harvested in the forests of the Atalaya province reached the local industry to be processed. The remaining 97% of extracted roundwood was transported to Pucallpa for processing and marketing. Since 2011, with the opening of the Atalaya-Pto. Ocopa roadway, this percentage has increased but no statistics have been made available. The following table lists the companies that are currently active in the forest sector of the city of Atalaya and work with the local population:

Installed capacity of the sawmilling industry in Atalaya

Company Products Installed capacity

/shift

Months worked per year

No. of shifts

Annual production

(m3)

Industrial Maderera San Miguel SRL

Sawnwood 28 m3 8 1 4 440

Aserradero Hurtado SRL Sawnwood 35 m3 8 1 5 600 Reaserradero el Sol Sawnwood 25 m3 8 1 4 000 Empresas de Servicios Generales Jaimito

Sawnwood 25 m3 8 1 4 000

Empresa Jannina Sawnwood 15 m3 8 1 2 400 Servicios Generales JRL Sawnwood 20 m3 8 1 3 200 Reaserradero Emechin Sawnwood 10 m3 8 1 1 600

Forty-seven (47) percent of the formal industry in the province of Atalaya is focused on timber processing, and it is not linked to the regional marketing of timber and much less to forest harvesting operations. Timber products mostly include poles, strips, scantlings, planks, fingerjointed boards and packaging, which are all geared to the local market. It is estimated that the overall processing capacity of the forest industry is 25,000 m3/year; however, actual production only amounts to 4,586 m3. Companies not included in this group are micro-enterprises and/or small sawmilling workshops whose products are mainly geared to the local market. Existing social groups in the province of Atalaya comprise indigenous communities, forest concessionaires and

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producers, agricultural producers and traders. The organizations representing these social groups are: Indigenous communities: - CORPIAA: Regional Indigenous Peoples Coordinating Council of AIDESEP in Atalaya (Coordinadora Regional de Pueblos Indígenas de AIDESEP de Atalaya) - OIRA: Regional Indigenous Organization of Atalaya (Organización Indígena Regional de Atalaya) - URPIA: Regional Union of Indigenous Peoples of Atalaya (Unión Regional de Pueblos Indígenas de Atalaya) - FECONAPA: Federation of Ashéninka Communities of the Province of Atalaya (Federación de Comunidades Ashéninka de la Provincia de Atalaya) Forest concessionaires and producers: ABACO: Forest Concessionaires' Association of Atalaya (Asociación de Concesionarios Forestales de Atalaya) APFA: Forest Producers' Association of Atalaya (Asociación de Productores Forestales de Atalaya) Agricultural producers: APAAU: Agroforestry Producers' Association of Upper Ucayali (Asociación de Productores Agroforestales de Alto Ucayali) Traders: ACA: Traders' Association of Atalaya (Asociación de Comerciantes de Atalaya) Negative impacts of project implementation may include:

Reduced availability of land for urban expansion in the city of Atalaya. Increased water consumption from the public water supply network and reduced water availability for the

local population. Increased production of sewage. Increased production of timber waste and general solid waste (garbage), which could lead to pollution in

the city. Increased electricity consumption from the public power network and reduced voltage for the population. Increased gas emissions. Increased noise levels. Increased traffic of heavy vehicles. Soil pollution due to accidental fluid (fuel and oil) spills.

Actions to mitigate negative impacts:

To avoid a shortage of land for urban expansion in the city, the PIFA is designed to be established in the Santa Rosa area, which is located 10 km north of the city of Atalaya.

To avoid a shortage of water from the public water supply network, the project will consider the installation of an independent ground water pumping system for the PIFA, as well as a rain water tank.

A waste management system will be designed for sewage disposal. Timber waste and general solid waste will be used at the pyrolysis plant to be installed for the production

of fuel in the Municipality of Atalaya; this plant will in turn feed the power station. PIFA regulations will be developed to regulate gas emissions and noise production within allowable

ranges. The PIFA will be established 10 km away from the city so as to ensure that the increased traffic of heavy

vehicles will not affect city traffic. PIFA regulations will also include standards for the management of fuel, oil and other hazardous

substances. 3. Check consistency of the provided figures of the number of inhabitants in the stakeholder analysis with the figures in Section 1.3.2 The information on TERTIARY STAKEHOLDERS has been revised as follows: 19,168 inhabitants: Farmers with subsistence crops and limited profit margins in the market. Traders and public servants, among others. This does not include the population of indigenous communities mentioned among primary stakeholders in this table. 4. Improve the development objective indicators by taking into account also the increase in the number of families involved in forest industry activities; regarding all indicators chosen, provide the baseline reference data to enable proper assessment of the gap between the existing situation and the project's completion Following this recommendation, logical framework indicators have been revised as follows:

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Development objective and impact indicators Contribute to increasing the living standards of the local and indigenous communities of Atalaya by generating increased income as a result of the organized development of the local forest industry.

By 2020, the average annual income of families involved in forest activities in the project target area has increased by 30%. (Baseline = US$ 1000). By 2020, the number of families involved in the forest industry has increased to 5000 (Baseline = 1700).

Specific objective and outcome indicators

Boost investments in forest product harvesting, processing and marketing in Atalaya in an organized, efficient, socially responsible and commercially competitive manner.

By the end of the project, 1,000,000 ha of forests in the project target area are being harvested in accordance with legally approved forest management plans and are under reduced impact logging techniques. (Baseline = 300,000 ha) 20 forest processing industries have been established in an organized manner in the Forest Industrial Park of Atalaya and are operating according to international standards. (Baseline = 7) At least US$ 20 million is invested in forest product harvesting and processing in Atalaya as a result of the opening of the Forest Industrial Park. (Baseline = US$ 3 million) At least 30% of indigenous communities have transparent and fair negotiations with third parties for the harvesting of their forest resources. (Baseline = 5%)

Project outputs and corresponding indicators are given below: OUTPUT 1: The Forest Industrial Park of Atalaya (Parque Industrial Forestal de Atalaya – PIFA) has been scaled, designed and established through a municipal ordinance in the Province of Atalaya.

By the end of the second year of the project, the public investment office of the Ministry of Economy and Finance has verified the viability of 100% of works required for the establishment of the Forest Industrial Park. (Baseline = 0) By the end of the first year, the Municipal Council of Atalaya issues a Municipal Ordinance for the establishment of the Forest Industrial Park of Atalaya according to the location, scaling and design specifications set out in the relevant documents. (Baseline = 0) By the end of the first year, the energy alternatives for the operation of the Forest Industrial Park of Atalaya have been defined on the basis of the studies carried out. (Baseline = 0) By the end of the first year, environmental impacts and prevention and mitigation measures have been defined for the implementation of the Industrial Park of Atalaya. (Baseline = 0)

OUTPUT 2: A PIFA management model has been developed and implemented, integrating it into the State services (DGFFS, OSINFOR, SUNAT and Ministries of Production and Labour) and technical assistance has been provided in support of forest harvesting and forest industry development in Atalaya.

By the end of the first year, an autonomous and participatory PIFA administration services company has been established integrating PIFA users and key forest sector stakeholders. (Baseline = 0) By the end of the second year, the DGFFS, OSINFOR, SUNAT, the Ministry of Industry and the Ministry of Labour are operating through an integrated services module. (Baseline = 0) By month 18, a professional services unit is operational. (Baseline = 0)

OUTPUT 3: Financial and commercial services have been established in Atalaya for the development of forest product harvesting and processing.

By the end of the second year, a financial services unit with promotional credits for the forest sector is operating in Atalaya. (Baseline = 0) By the end of the project, a commercial services unit with information on product supply and input requirements is operating in Atalaya in support of the forest sector. (Baseline = 0)

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By month 18, a communication and outreach system in support of the forest sector is operating in Atalaya. (Baseline = 0) By the end of the project, 10% of companies are in the process of being certified. (Baseline = 2%)

OUTPUT 4: The capacities of producers, industrialists, organizations and authorities for sustainable harvesting, processing and marketing of forest products have been strengthened.

By the end of the project, the capacities of 2 local organizations of indigenous communities, one municipality, one regional government (Atalaya Sub-Region), 30 representatives of forest industry companies, forest industrialists, 30 representatives of forest concessions and 30 representatives of government agencies related to the forest sector have been strengthened. (Baseline = 0) By the end of the project, 50 % of the forest industries installed in the forest industrial park of Atalaya have adopted technological improvements as a result of the training provided. (Baseline = 0) By the end of the project, at least 10 technical training workshops have been implemented. (Baseline = 0) By the end of the project, at least 10 administrative training workshops have been implemented. (Baseline = 0)

5. Make sure that the completion of the surveys of Output 1 will be adequate and sufficient to enable timely approval of the PIFA design and consequently budget provision by the Peruvian state authorities In order to ensure that the surveys related to Output 1 will lead to the timely approval of the PIFA design, the commencement of activities 3, 4 and 6 has been brought forward by one quarter, which can be seen in the Work Plan shown on pages 32-33 of the project document. 6. Consider moving Activity 1.9 of Output 1 to Output 4. Distinguish Activity 4.1 of Output 4 into technical and administrative training plans Activity 1.9 has been moved to Output 4 and is now Activity 4.5. Activity 4.1 has been defined as “Development of technical and administrative training plans” and has been distinguished into 2 indicators under this output: By the end of the project, at least 10 technical training workshops have been implemented. (Baseline = 0) By the end of the project, at least 10 administrative training workshops have been implemented. (Baseline = 0)

7. In Section 3.2 on Implementation approaches and methods, clarify sub-bullet 2 'To ensure the participation of the local population, participatory rural assessments or other similar strategies will be used". Clarify bullet Prior Experience The Participatory Rural Assessment/Appraisal (PRA) is a methodological tool developed by the World Resources Institute (WRI) that may be used to monitor the implementation of projects in development processes. Past experiences in the use of this methodology at both the international and national levels can be found in the web. In the specific case of Peru, this tool has been used to monitor the construction of the Inter-Ocean Highway. Similarly, the Alianza Cambio Andino (Andean Change Alliance) (agricultural innovation in support of poor communities) has used this methodology in several projects, where it has proven to be a flexible, useful tool to monitor performance and generate remedial feedback. It is also an important tool because it incorporates the concept of accountability in implementation. In order to implement this methodology, a monitoring and assessment committee will be established. This committee, which will be made up of representatives of PIFA-related organizations, will motivate and lead stakeholders' involvement in a participatory manner. The committee will receive the support of a specialized institution that will provide guidance on the development of monitoring tools, forms and records. This will improve organizational performance and facilitate the identification of strengths and weaknesses. Peruvian regulations promote civil society involvement in the monitoring and control of the implementation of projects and all government activities. 8. In the Work Plan section, extend the duration of Activity 2.1 and Activity 3.4 The duration of activities 2.1 and 3.4 has been extended by 2 quarters, as can be seen in the Work Plan shown on pages 32-33 of the project document.

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