Global environment facility governments of colombia, ecuador, peru and venezuela

ANNEX 2: INCREMENTAL COST ANALYSIS

All four participating countries (Colombia, Ecuador, Perú and Venezuela) have ratified the CBD. They are also members of the Andean Community (CAN) which has set forth Decision 523 (D523) “Regional Biodiversity Strategy for the Tropical Andean Countries” as an officially binding resolution. D523 draws from the national strategy documents of all Andean Countries thus identifying Paramo as a priority trans-boundary ecosystem requiring regional cooperation on biodiversity conservation and sustainable use initiatives. For further information on respective national agendas on biodiversity please refer to section 1.2. Country Ownership.

The scope of analysis of the baseline scenario and the GEF alternative covers the timeframe of the full-scale project (6 years). Geographically, the scope of the analysis comprises the boundaries of the Andean Paramo ecosystem covering parts of (N to S) Venezuela’s, Colombia’s, Ecuador’s and Northern Peru’s mountain systems, as described in section 1.3 Biodiversity Significance.

Paramo development issues occupy an important place in all four country’s baseline agendas, receiving funding from local, national and even sub-regional budgets as well as NGO’s and international organizations. These activities will continue irrespective of GEF financing. A summary of the initiatives that are complementary to the project’s objectives and activities follows:

A vast number of initiatives including regional action plans, research activities, and poverty alleviation programs, among others, contribute to the improvement of local livelihoods and natural resource management in the Paramo areas of the four participating countries. Venezuela has the largest number of initiatives, while Colombia ranks the highest in terms of actual resource allocation. Each of the project countries invest significant resources in activities related to agricultural development, gender issues, and livelihood enhancement programs for local stakeholders, among other related issues. The total estimated baseline investment in Paramo areas in the four participating countries amounts to US$ 4,949,822. While constituting a notable contribution to the project’s objectives, these plans will, however, generally work in an isolated manner and often have narrow sectoral approaches. Furthermore, even though some address environmental issues, these are primarily geared towards poverty alleviation and food security, thereby lacking the necessary integration and approach to render globally significant benefits.

The baseline investment in issues contributing to the project’s objectives in this area is comprised of national initiatives that include water laws, legislation to establish a Paramo biosphere reserve, financial and tax incentive schemes to promote Paramo conservation, promotion of inter-sectoral coordination for biodiversity conservation, national policies and instruments for Paramo biodiversity management, biodiversity related laws for fragile ecosystems, decentralization and local government strengthening programs, environmental law projects for indigenous groups, ecologic/economic zoning studies as well as sub-regional initiatives dealing with agrobiodiversity and bio-commerce, to name but a few. The baseline expenditure estimated for policy and legislation related issues in Paramo, amounts to US$ 2,826,425. Even though this represents a considerable investment, these efforts are not sufficient to overcome weak inter-sectoral policy coordination, disarticulation of local, regional and national planning and the lack of policies and policy instruments as well as the lack of an effective conservation strategy and international cooperation for border crossing ecosystems and international watersheds. Thus these issues still constitute legislative barriers impeding proper Paramo management with an integral ecosystem approach.

The estimated baseline expenditures for capacity building related activities in the Paramo areas of the four participating countries amount to US$ 2,776,230. These include principally community strengthening programs and issues dealing with productive activities and natural resources management at a local level. They do not however sufficiently address aspects of ecosystem management with a comprehensive view for Paramo resources management, or capacity building to support decision-making at national or institutional level.

Baseline activities considered under this subject include education programs in broad environmental issues, vegetation, water and wildlife conservation, as well as applied principles to promote improved livelihoods for Paramo inhabitants. A number of research activities related to natural resources in general, biodiversity and water quality also contribute to project objectives. The total estimated expenditures for these baseline activities amount to US$ 3,041,043. Even though they address very specific issues and contribute to natural resource as well as biodiversity conservation, they lack the necessary inputs to adequately promote education of key stakeholders including local, national and regional players in Paramo conservation issues with an integrated ecosystem perspective. Furthermore, there is insufficient adequate information to support decision making in Paramo and the existing information is not properly disseminated to reach key decision makers. In combination with low public awareness about the importance of conserving this marginalized ecosystem, this precludes commensurate action for proper conservation of Paramo resources including biodiversity.

Estimated baseline expenditures amounting to US$ 1,890,000 have been identified under this subject, including isolated efforts in water resources management, environmental research and specific evaluation studies. However an initiative to systematically identify and record lessons learned and best practices and a replication strategy as such to achieve a multiplication effect of the impact of successful Paramo conservation initiatives is lacking.

The proposed GEF Alternative will complement ongoing baseline activities and will leverage co-financing to achieve project objectives. Project outcomes under the GEF Alternative comprise the following:

The project will design and implement Participatory Management Plans (PMP) for Paramo conservation and sustainable land use in nine PIS, to include zoning, protection, managing and restoration of key Paramo sites and contamination control mechanisms. Within these plans, strengthened local stakolders’ alliances will implement and oversee sustainable production projects drawing from a catalogue of approved low impact income generating activities such as conservation and natural sustainable resource management projects, projects for improving living conditions and social organization strengthening projects. The project will contribute to protecting natural resources in key areas and restoring ecosystem functions and biodiversity in degraded areas of the Paramo ecosystem, thereby also strengthening the natural base of income generation for Paramo inhabitants. These activities complement the existing baseline activities and are required to achieve global benefits.

The project will help to identify and promote formal and informal policy options, alternatives and instruments at local, regional, national and ecoregional level, to support an ecoregional policy strategy for Paramo conservation and sustainable use. Therefore the project will support local stakeholders' alliances and environmental authorities in all four countries to identify, develop and implement an appropriate policy, legislative and regulatory framework at different governmental levels (local, subnational, national). In support of inter-sectoral coordination in the political framework, codes of conduct for sectors such as agriculture, mining, forestry, tourism and infrastructure will be developed. The project will support a Paramo expert within the environmental authority at national level and together with the Secretary General of the Andean Community (CAN) it will develop and implement a Plan of Action for the conservation of Paramo at Andean level. These activities are necessary to create a supporting policy environment for adequate Paramo management. They are complementary to the ongoing baseline and required to achieve global benefits.

Following a previous requirement assessment, the project will implement an Andean regional training program consisting of a series of short courses for three target stakeholder groups to improve technical capacities in biodiversity conservation and sustainable use of the Paramo among farmers, field practitioners and local decision makers. The project will also execute an experience exchange plan between stakeholders of different areas to strengthen the farmer-to-farmer approach. The project will furthermore identify and compile experiences in Paramo management, including the analysis, application and publication of ancestral and traditional knowledge, as well as the identification and diffusion of demonstration experiences in the field. These initiatives will complement ongoing capacity building baseline activities and are necessary to achieve globally significant biodiversity conservation goals.

The project will inform key decision makers and the general public about the biodiversity and economic value of the Paramo using three complementary education strategies tailored to their respective target groups. Thereby it will assure that Paramo ecosystem related subjects are included in curricula of relevant education centers, key stakeholders improve their knowledge of Paramo ecology and management and key decision makers are adequately informed on Paramo issues. These initiatives will be further supported by the implementation of a Paramo Information Mechanism, which will be connected to Clearing House Mechanisms in the Andean countries. These activities are complementary to the existing baseline initiatives and all necessary for the conservation of globally significant biodiversity.

The project will develop and implement a replication strategy to multiply the impact of its most effective interventions and lessons. Paramo working groups will be strengthened and new ones created, rendering a replication platform to support this objective. Thus best lessons in Paramo management and biodiversity conservation will be exported to other Paramo sites. These activities are complementary to the existing baseline initiatives and required to achieve benefits of global significance.

The total estimated value of the baseline amounts to US$ 15,483,520. The sum of all contributions to the GEF alternative (baseline + GEF + co-financing) totals US$ 34,207,743. The difference between the alternative and the baseline amounts to US$ 18,724,224, which represents the total incremental cost of assuring globally significant environmental benefits. This will be funded by a GEF contribution of US$ 8,191,850 and by non-GEF sources in the form of co-financing in the amount of US$ 10,532,374.