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11. An Operations Unit will be created within the CDF in Ecuador to administer the fund’s activities, monitoring field-activities, and co-ordinating affairs between the major parties involved, including CDF, GNPS, FOG organisations, UNESCO, UNF and GEF. The fund will be serviced by an offshore asset manager, with a strong performance record and experience supporting national environment funds, that will advise on investment strategies, and invest the assets within pre-agreed risk and disbursement parameters. The Operations unit will help co-ordinate fund-raising, but the actual function will be sub contracted to a experienced private firm. Because of the simplicity of this approach, administrative costs of the Fund itself are expected to be far below 20% of income, even before the corpus has reached the end-of-project capital-target.


12. The present DSF board is fully non-governmental, with the following members:- Mr. S. Dillon Ripley, Secretary Emeritus of the Smithsonian Institution (Chairman); Mr Robert McAdams, Secretary of the Smithsonian Institution; Mr. Charles J Hedlund, Chairman Emeritus of The Nature Conservancy; the CDF President, Vice-President and Secretary General; Mr John Eaton Esq. and Mr John Lastavica, Bank Treasurer and Professor of Finance and Computer Sciences. Following further consultations, and in compliance with GEF recommendations, changes will be made in the present governance structure of the DSF to ensure that it is able to discharge its duties as Trustee independently and effectively, to include government representation on the board, and ensure there is no majority representation on it of any organisation that will be a recipient of grants. It is expected that the new board will have 9 members, with a balanced mix of prestigious figures from GNPS, the MMA, CDF, NGOs, businesses and donor agencies.
Capitalisation
13. A dedicated sub-account will be created within the DSF to hold the assets of the fund. The GEF would provide US$ 5 million in seed capital for the fund, to be matched on a 2:1 basis by funding secured from other sources (providing a capital base of US$ 15 million). GEF Funds would be released subject to independent authentication that the necessary governing and administrative framework and protocols are in place. The capital targets will be met through intensive fund-raising to be led by CDF but involving various other players whose combined qualities, together with the world renown of Galapagos itself, have the potential to engender a powerful campaign. In addition to the FOG organisations’ 10,000 members and former visitors to the Galapagos, the CDF also has some very distinguished and well-connected members and a network of foundations and individuals, which have made substantial donations in the past. Selected foundations, such as Frankfurt Zoological Society and WWF, with a strong commitment to the conservation of the Galapagos, have been approached about the possibilities of collaborating in the fund-raising effort for the Trust Fund. A number of extremely wealthy recent visitors to the archipelago have also been approached. Furthermore, CDF and GNPS have close relations with the major Galapagos tour operators, several of whom are becoming much more active in helping to generate funds for conservation.
14. Through a joint CDF and UNESCO World Heritage Centre initiative, seed funding for fund capitalisation has been secured from UNF. This will take the form of a US$ 1 million challenge grant to be released once CDF has raised an additional US$ 1 million from private sources. Negotiations to secure the matching grant are well advanced. In addition to the challenge grant, UNF will bring great commercial sector expertise and connections to the initiative and will assist with the fund-raising effort. UNESCO will also participate in fund-raising through the World Heritage Committee and personalities, such as the UN Secretary General, UNESCO Director General, and UN and UNESCO Ambassadors. IUCN, which like UNESCO, has been associated with CDF since its formation in 1959, may also be approached to assist the campaign.
15. UNDP would negotiate a Tri partite Agreement with the Government of Ecuador (as recipient) and the DSF (as the Trustee and asset holder) as a basis for remitting funds to the endowment40. The Government of Ecuador has agreed to the above arrangements, and would be represented on the Governing Board of the Fund.
Restructuring and Operations Support

16. In addition to fund raising activities, GEF resources would also provide technical expertise for restructuring the DSF to enable it to fulfil its function as Trustee, and taking into full account the recommendations of the GEF Evaluation of Conservation Trust Funds. The following steps will be undertaken to build the necessary governance and administrative structures needed to operate the fund. The successful completion of these activities will be a pre-requisite for the release of GEF seed capital into the endowment.



  • Establish new Governing Board for DSF

  • Determine procedures for permitting the already established and widely supported CDF General Assembly to advise the Board on management needs and funding priorities

  • Undertake further consultations with primary stakeholders regarding the modalities for Fund operations

  • Revise the Bylaws of the DSF, addressing its broader objectives and activities and building in safeguards to ensure that the objectives of the sub-account are not frustrated

  • Agree on the roles and responsibilities of the asset manager and criteria for selection of the manager

  • Select Asset Manager through competitive process, and formalise agreement between the Manager and DSF

  • Agree on asset management strategy, with clear asset mix objectives to meet gross income requirements, and asset management procedures

  • Create in-country Fund Operations Unit in Ecuador to receive income and manage day to day operations

  • Prepare revised Operations Manual defining the rules and operational procedures of the fund, and clearly articulating eligibility criteria for disbursements from the sub account for invasives species management.

  • Prepare revised Monitoring and Evaluation Plan, with clear performance indices and assessment procedures

  • Perform independent evaluation of design elements, as a basis for committing GEF funds to the Fund

  • Negotiate Terms and Conditions for the release of GEF Funds into the endowment, including to ensure the security of the assets, guard against the risk of attachment, establish procurement procedures, and financial recording, reporting, and independent auditing procedures, and set dissolution requirements.




Annex I. Institutional Summaries and Stakeholder Participation



INSTITUTION


ROLE IN PROJECT


Government Agencies

  1. Ministry of the Environment (ME) - This entity is responsible for the formulation and co-ordination of the country’s environmental policies and for leading efforts to protect the nation’s terrestrial and marine ecosystems.

  • The Galapagos Unit is the focal point for Galapagos within the Ministry. This unit, soon to be institutionalised and expanded *, is responsible for co-ordinating and monitoring of projects executed in the archipelago.

(* Currently one person performs this function)

  • The ME will be the national sponsor of the project, accountable to UNDP for project delivery, and for co-ordination, monitoring and general evaluation.

  • A Technical Advisory Group will support the Ministry in its monitoring and evaluation activities. This Group will comprise international experts in invasive species control, representatives of national environmental NGO's and the president of the Fora created under output 5.

  • The unit will co-ordinate baseline interventions and co-financed activities. It will act as the focal point for the co-ordination of the project, ensure it is consistent with national environmental policies, and that new projects complement the total control strategy. This unit will be the official link with UNDP for project execution and will supervise its administration.

  1. The National Institute of Galapagos (INGALA) executes regional policies in the province. Before the SLG was approved, INGALA was responsible for executing infrastructure works. The SLG confers upon it responsibilities for formulating and co-ordinating regional planning and providing technical assistance to local institutions. It is directed by a multi-sectoral Council, and receives technical inputs from two committees (the Inter-institutional, Technical and Planning Co-ordination Committee (ITPCC) and the Residence Control Committee (RCC).A Technical Unit executes decisions taken by the Council. It is currently being reorganised to enable it to better fulfil its new mandates. The Secretariat, directed by INGALA’s Manager.

  • INGALA's Council determines policies and activities in Galapagos. It is chaired by the Governor of the province and includes the following members: Ministers of the Environment, Finance and Public Credit, Tourism, National Defense, External Commerce, and the prefecture of Galapagos, the three Mayors, representatives of the private sector (tourism, fishing and agriculture and livestock) and the President of the Ecuadorian Committee for the Defense of the Environment- CEDENMA-The Charles Darwin Foundation (CDF) also participates but has no voting rights.

  • INGALA will be responsible for developing an assortment of policies, methodologies and instruments that aim at integrating IS Control objectives into regional planning. This will include the development of appropriate incentives and penalties –to be submitted to relevant authorities for approval.

  • The Plan of Total Control of IS, to be developed under Output 2, will be revised and approved by INGALA

  • INGALA is responsible for immigration control (a critical element of the project’s baseline).

  • The Council will approve policies developed within the framework of the project, and revise existing ones in accordance with the lessons learned during execution.

  • It will officially approve the Total Control of IS Plan.

  • The Council meetings provide an opportunity to periodically inform INGALA on project delivery and progress and facilitate inter-institutional co-ordination.

  • The ITPCC will provide a technical forum for discussing ways and means of incorporating IS control into sectoral plans and policies for the province.

  • The Secretariat will be responsible for the co-ordination of Output 6, with assistance from the Project Management Unit, and for incorporating the invasive species overlay into local and regional planning. It will also form part of the Directive Council to be established under Output 5.

  1. The Galapagos National Park Service (GNPS)- established at the time of creation of the National Park in 1959, has the following responsibilities: i) Managing and controlling the Park, ii) Protecting its ecosystems and biodiversity, iii) Promoting scientific research with conservation goals, iv) Conserving the unique habitat of the islands, and v) Engaging local communities and visitors in conservation activities.

  • GNPS will administer the bulk of public baseline resources for conservation in Galapagos. Given its mandate, it will be the prime stakeholder under the project. The GNPS will co-execute control and eradication activities with the CDF in accordance with a Medium Term Agreement between these institutions.

  • GNPS will also work with SESA to implement the inspection and quarantine system and will be responsible for the delivery of Output 3 within the bi-institutional agreement with CDF set up for the Isabela project. This agreement will provide a framework for the execution of activities under Output 3. GNPS will act as Executive Secretariat for the Directive Council and will execute decisions made by the Council as they relate to this output.

  1. Ecuadorian Service for Agriculture and Livestock Sanitation (SESA) falls under the political stewardship of MAG but has administrative independence. It performs inspection and quarantine services at the national level. SESA implements the inspection and quarantine system for Galapagos province by inspecting shipments bound for the islands and inspecting consignments on arrival.

  • SESA is responsible for sanitary control and the certification of origin for Ecuadorian products. Due to the specific characteristics of Galapagos, its participation in ports and airports is very important, in order to guarantee the execution of norms and regulations that govern the flow of goods (particularly food and livestock related products), from the Continent to Galapagos.

  • SESA -Galapagos Division will be in charge of the execution of the policies, rules and regulations established for the System of Inspection and Quarantine of Galapagos, in order to limit and prevent the introduction and dispersion of invasive species.

  • According the SGL, the general policies for the Control of Invasive Species will be collaboratively developed by GNPS and the Ministry of Agriculture. SESA is responsible for executing the programmes, policies and projects that aim to prevent the introduction of invasive species to the islands. As such it takes the lead role in the multi-institutional SICGAL and is charged with putting this new system into place.

  • SESA- Galapagos, with the support of the GNPS, will be responsible for operating the Inspection and Quarantine System, as well as for monitoring in ‘hotspots’ for species introductions. It will take overall responsibility for the successful execution of Output 1.

  1. Agriculture and Livestock Provincial Office (DPA) is the the provincial line office of MAG (Agriculture and Livestock Ministry). It supports development of the agricultural zone, in accordance with conservation objectives. Until the institutional legal agreements for SESA- Galapagos are finalised, the DPA has been designated temporarily as the official representation of SESA in Galapagos province.

  • The DPA will be the co-executor of some activities under Output 6, particularly those related to the development of an agricultural zone management strategy. Given the importance of this sector, the DPA will participate in the Consensus Forum created for general discussion and agreements on topics related to invasive species control. It will also play an important role in certain control and eradication actions in agriculture zones, in accordance with art. 55 of the SLG.




  1. Local and Provincial Authorities. There are three Municipalities in Galapagos (Puerto Ayora, San Cristóbal and Villamil) and a Provincial Council.



  • The Provincial Council was recently created, and charged with a range of infrastructure construction functions, which were previously under INGALA’s responsibility.

  • The Municipalities provide public services and utilities in the urban area, especially sanitation and potable water.

  • The local authorities are responsible for executing public works in occupied zones.

  • The Provincial Council will be responsible for incorporating Total Control of Invasive Species measures in the planning and construction of infrastructure. It will follow the progress of the project through the INGALA’s Council and it would participate in the Consensus Forum.

  • Within the project, the Municipalities will assist and collaborate in activities requiring community participation, particularly in the Fora, and in INGALA’s Council.They will also undertake baseline activities related to control of contamination (solid and liquid waste).

Non-government Agencies


  1. The Charles Darwin Foundation (CDF) is an NGO working collaboratively with the Ecuadorian State. It was created 40 years ago, and has become the most important NGO within the islands, taking the lead in the provision of scientific imputs for conservation efforts in Galapagos. The Foundation has three branches: a Directive Council, the General Secretary (located in Quito) and the Charles Darwin Scientific Station (CDFRS), located in Puerto Ayora. The CDF has several institutional associates outside Ecuador (CDF Inc. in the USA, Friends of Galapagos in Switzerland, Luxembourg and Germany and the Galapagos Trust Conservation in England. The associates will play an important role in fund raising.

  • The Directive Council approves the budget and Operative Plan of the CDF and determines policy orientations.

  • The Secretary is the official representative of the CDF to the National Government, co-ordinates the execution of projects with other agencies and donors, and participates in INGALA’s Council.

  • The CDFRS develops research activities; provides education and communication programmes, and offers technical and scientific advice in environmental matters.

  • The CDF will provide technical support for the implementation of the Total Control Strategy and as such will have a cross-cutting role in all project interventions. Additionally, the CDF will be responsible for the successful execution of several outputs and will co-execute others with Government Agencies.

  • The Council, which is constituted by experts on Galapagos, will be the forum for discussing lessons learned from the project.

  • The General Secretary will be responsible for the handling of Output 4 of the project (sustainable financing), together with the international associates.

  • The CDFRS will set-up a permanent research unit to develop and support the Plan of Total Control of IS It will also collaborate with SESA- Galapagos in the execution of the Output, and with the INGALA in the execution of Output 6. It will co-execute activities for Outputs 3 and 5 with the GNPS and provide technical support to project monitoring and programming.

  • The CDFRS will be a member of the Council that will be established under Output 5.




  1. Natura Foundation.- is a national NGO, located in Quito; it is one of the most respected and prestigious environmentalist institutions in the country, and has important international recognition. Natura is responsible for the execution of biological and social monitoring under a medium size project partly financed by GEF.

  • Natura will participate in the Technical Advisory Group for project monitoring and programming, thereby guaranteeing close co-ordination with the GEF medium-size project.

  • Due to the nature of its activities within the GEF/MSP, Natura will be a member of the Directive Council for Output 5, providing technical advisory functions.




  1. Productive Sector Unions and Galapagos Residents. A part of the resident population is organised in associations that represent the productive sectors in Galapagos: tourism, fishing and agriculture. These sectors have been directly involved in the formulation of the Special Law for Galapagos and in the Plan for Conservation of the Marine Reserve. They actively participate in the association that, supports the Inter-Institutional Authority that defines policies and strategies for the GMR. Their active participation in the formulation of the SLG resulted in their inclusion in INGALA’s Council, with the same legal conditions as the public members.

  • The community, particularly in the rural areas, will have an active role in the project, by creating a Surveillance System.

  • The Consensus Forum to be set up under Output 5 will facilitate the participation of several sectors.

  • The community will support and execute practices that contribute to realisation of the Total Control Strategy.

  • They will formally participate in monitoring the project and assisting its co-ordination through the INGALA Council.

  • They will be responsible for supporting a complementary strategy for the protection and management of the marine reserve, focusing on Total Control.
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