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BOLIVIA

Activity Data Sheet

PROGRAM:  BOLIVIA
TITLE AND NUMBER:  Forest, Water and Biodiversity Resources Managed for Sustained Economic Growth, 511-004
PLANNED FY 2001 OBLIGATION AND ACCOUNT:  $6,350,000 (DA)
PROPOSED FY 2002 OBLIGATION AND ACCOUNT:  $5,080,000 (DA)
STATUS: Continuing
INITIAL OBLIGATION: FY 1995   ESTIMATED COMPLETION DATE: FY 2004

Summary: Bolivia's 53 million hectares of forest exceed those of Central America and Mexico combined, and its tropical Andes are the "epicenter" of global biodiversity. These natural resources are at risk due to deforestation, poor protected area management and pollution. USAID programs conserve Bolivia's environment through a three-pronged approach: 1) increasing private and public sector capacity to manage natural forests while creating economic incentives for forest conservation; 2) improving the management of protected areas (e.g. Gran Chaco National Park, the largest in the hemisphere managed by an indigenous group); and 3) promoting the adoption of cleaner industrial production processes and the proper disposal of medical waste. Achieving the Strategic Objective depends on strengthening the private sector's role in conserving natural resources and reducing urban pollution, which in turn improve human health and child survival. The people of Bolivia directly benefit from these efforts.

Key Results: Overall progress continues to be outstanding. In 2000, Bolivia became the global leader in sustainable tropical forestry with 884,980 hectares of natural forests independently certified as well managed. The value of certified forest product exports surpassed $12 million, up 61% since 1999 (and exceeding the 2000 target by 26%). Moreover, an additional 1.8 million hectares of forests are also being well-managed, i.e., applying twelve key practices. The 3.4 million hectares of land in Kaa Iya del Gran Chaco National Park experienced advances as a result of management plan approval, strengthened financial management, and the completion of three years of applied community-based wildlife research. While not meeting its target, cleaner production activities expanded to include the first environmental audits of medical centers.

Performance and Prospects:  Progress continues to be very strong, despite the serious economic downturn that Bolivia has experienced. A weak economy has been an important constraint given that the environment program focuses on improving private sector involvement with environment issues. Nonetheless, the total area of well-managed forests and parks rose slightly to 2,655,296 hectares.

Although Bolivia became the world leader in certified forestry in 2000, actual hectares certified fell slightly behind the target of 1,000,000 hectares because of a slowdown in the forest-based economy and lower exports. This target will be met in the first quarter of 2001. Moreover, because of strong overall progress, targets were increased for certified forests and certified exports by 25% or more for the period 2001-2003.

In 2000, USAID increased its efforts to involve local and indigenous groups in forestry activities. USAID supported six local producer groups and three indigenous groups in the development of forest management plans for over 285,000 hectares. With USAID assistance, six of these groups have entered into strategic alliances with the forestry industry to sell their products. Additionally, USAID assisted six municipalities in the successful consolidation of their forestry units.

Despite continued progress in improving forest management, the major constraint to Bolivian forestry is the efficient and competitive export of wood products. While exports of certified forest products have grown, wood exports as a whole have declined considerably. Causes include limited entrepreneurial skills of Bolivian companies and high production costs resulting from inefficiencies. To address these concerns, USAID supported the creation of the Amazon Center for Sustainable Forest Enterprise (CADEFOR) to strengthen the link between Bolivian producers and markets. CADEFOR's progress has been weak for several reasons, including the lack of proper management systems and the weak economy, which limited its ability to charge for services. USAID is addressing these constraints by: 1) performing a series of financial reviews of CADEFOR and the Trust; 2) restructuring support to CADEFOR and the Board of Directors to increase oversight (to be provided by the Bolivia office of the World Wildlife Fund); and 3) ensuring that U.S. Forest Service technical assistance is more strategically focussed.

In 2001, USAID will provide 33 communities with technical assistance, ranging from internal organization to marketing. In a major step for community forestry, at least three local and indigenous groups will undertake certification evaluations. USAID will continue to monitor strategic alliances between communities and industry to facilitate the development of greater trust and better agreements. As a result, in 2001 the area of forest internationally certified as "well-managed" is expected to climb to 1.4 million hectares and certified sales are projected to surpass $15 million.

The Wildlife Conservation Society (WCS) and USAID joined the Tacana Indigenous Council's efforts to legally obtain and sustainably manage over 500,000 hectares of their ancestral lands. Properly managing these forests, which are greatly threatened by colonization, is critical to the economic livelihood of the Tacana people and to the conservation of neighboring Madidi National Park. Timely technical, legal, and logistical assistance provided by USAID has allowed the Tacana Indigenous Council to consolidate its legal rights and fully participate in the titling process. This assistance has been particularly important given the conflictive social climate during 2000 in which other actors have attempted to claim these lands as their own. In 2001, the land titling process is expected to come to fruition and USAID will turn its attention to working with the Tacana people to manage sustainably the wildlife on their lands.

In the Chaco, progress continued in the conservation of the Kaa Iya del Gran Chaco National Park. The Government of Bolivia formally approved the management plan for the Kaa Iya National Park. Weak financial management systems within the Izoceņo tribe's organization co-managing the park had been the main constraint in previous years. In 2000, the organization carried out a complete restructuring of its financial systems and implemented a new consolidated administrative system to correct problems in its internal financial controls. An independent audit confirmed significant advances in their financial control system.

Progress on this front was the basis for the development of a new three-year agreement to consolidate the conservation of the park. In 2001, the WCS and the Tacana Indigenous Council will implement the management plan and focus on fire monitoring and control, improved local exploitation of forest resources, and the control of illegal hunting. In addition, the Charagua educational district will also become the site for a national pilot program in environmental education.

USAID will also assist in the development of a management plan for the 1.9 million hectares Izoceņo indigenous territory, integrating its management with the adjacent national park that will ultimately result in the conservation of an area larger than the country of Costa Rica. This effort will not stop at the border; the WCS will also provide technical support to a Paraguayan non-governmental organization to complete a proposal for a biosphere reserve bordering Bolivia. These activities will lead to the creation and management of a conservation area of millions of hectares.

In Tarija, the local, privately-owned water company and five municipalities have committed to work with the Nature Conservancy and its local partner to conserve Tarija's water source, Sama National Park. If successful, this public-private partnership could serve as a model for watershed conservation in Bolivia, where conflicts over water rights have been severe. In 2001 these institutions will develop a joint strategy for the maintenance of Tarija's water sources.

In 2000, the USAID-funded Center for the Promotion of Sustainable Technologies: carried out the first-ever environmental audits of medical centers in Bolivia; established technical requirements for managing and/or closing the La Paz municipal land fill; trained technical staff at various factories and supported training for post-graduate students; completed policy analyses with private sector companies regarding pricing policies for energy and water; continued to provide input for legislation affecting competitiveness of the private sector; and supported GOB efforts to establish guidelines for the disposal of hospital waste. In 2001, the Center will: continue to work with industries to implement cleaner production practices, including ground-breaking work with Bolivia' largest smelter; work with the municipalities of Sucre and Tarija to systematically address pollution problems; train more technical staff; and continue to work on medical waste issues.

During FY 2001 and FY 2002, USAID will extend the forestry activities to consolidate gains in the sector and expand participation of indigenous groups and local producer associations ($3,000,000 in FY 2001 and $3,000,000 in FY 2002). USAID will continue to fund the implementation of park management plans, including fire monitoring and control, improved local exploitation of forest resources, controlled illegal hunting, and environmental education ($2,750,000 in FY 2001 and $1,080,000 in FY 2002). USAID will continue to work with industries to implement cleaner production practices, work with municipalities to address systematically pollution problems, and continue to work on medical waste issues ($600,000 in FY 2001 and $1,000,000 in FY 2002).

Possible Adjustments to Plans:  Adjustments are in progress they include an extension of the forestry program to consolidate gains in the sector and expand participation of indigenous groups and local producer associations. USAID will continue ongoing efforts to conserve the world's most diverse forests found along the eastern slopes of the Andes. Program adjustments may also take place due to possible changes in regulations and legislation guiding the use of government controlled lands.

Other Donor Programs:  While USAID remains the largest donor in the forestry sector, the World Wildlife Fund, International Tropical Timber Organization, Holland, and Switzerland fund complimentary activities. Holland, Germany and the Global Environment Facility/World Bank are funding complementary conservation activities in protected areas. Donors supporting cleaner production include the World Bank, the Danish Development Agency, and the Swedish International Development Agency.

Principal Contractors, Grantees, or Agencies:  Activities are implemented by U.S. organizations including Chemonics, Wildlife Conservation Society, World Wildlife Fund, Conservation International, the Nature Conservancy, the University of Florida, the Center for International Forestry Research, U.S. Forest Service, International Resources Group, and PA Consultants.

Bolivia 511-004

Performance Measures:

Indicator FY97
(Actual)
FY98
(Actual)
FY99
(Actual)
FY00
(Actual)
FY00
(Plan)
FY01
(Plan)
FY02
(Plan)
Indicator 1: Area of protected areas with adequate management1,523,4461,523,4461,770,316 1,770,3161,770,316 5,170,316 5,886,061
Indicator 2: Area of forest independently certified to be well managed 226,098 447,912 834,303 884,980 1,000,000 1,400,0001,900,000
Indicator 3: Value of certified forest products exported 178,689826,8887,885,30512,594,92110,000,00012,000,00014,400,000
Indicator 4: Number of industrial plants and other sources that have adopted cleaner production practicesNANA1720232944

Indicator Information:

Indicator Level (S)or(IR) Unit of Measure Source Indicator Description
Indicator 1: IRhectaresWCS/CABI, WWF, CI, Parks in Peril Program."Protected areas" include national parks, faunal reserves, etc. (created by the Government of Bolivia) and conservation areas created by municipalities and communities. Only protected areas that have achieved "adequate management," as defined by the LAC Bureau, will be counted. The criteria are: (a) immediate conservation threats deterred; (b) long-term management plan developed; (c) Bolivian organizations strengthened to implement and/or assist in the management of selected parks and reserves; (d) long-term financial plan in progress and funding ensured for recurrent operation costs; and (e) local constituency actively participating in protected area conservation. The reporting period for this indicator is the calendar year. Note: Indicator has been changed since the FY 2001 Budget Justification to better measure program performance.
Indicator 2: IRNumber of hectares (cumulative)Forest Stewardship CouncilThis indicator only counts forests that have been independently certified to meet the Forest Stewardship Council's strict ecological, social, and economic criteria of forest management. The reporting period for this indicator is the calendar year.
Indicator 3: IRUS$ (annual total)BOLFOR with verification from the GOB/Customs Service, Forest SuperintendencyIncludes only forest products produced using sustainable techniques. Sustainable management is defined according to certification norms, forestry legislation and CITES specifications. Forest products include wood and non - wood products (e.g. plants, animals and/or forest derivatives). For clarity, all information is now reported as annual totals (in prior years this indicator was reported cumulatively). The reporting period for this indicator is the calendar year. Note: Indicator was added since the FY 2001 Budget Justification as an additional measure of program performance.
Indicator 4: IRNumber of companiesNational Chamber of Industry, Center for the Promotion of Sustainable TechnologiesThe types of companies assisted include: food processing, breweries, meat packing, tannery, and textile industries, among others. Among the prevention practices adopted are: reducing the discharge of chemical solutions in the effluents, fixing water leaks, improving energy efficiency, improving production processes with small investments. The reporting period for this indicator is the calendar year. Note: Indicator has been changed since the FY 2001 Budget Justification to better measure program performance.

U.S. Financing

(In thousands of dollars)

  Obligations   Expenditures   Unliquidated  
Through September 30, 1999    20,822 DA 15,593 DA 5,229 DA
0 CSD 0 CSD 0 CSD
0 ESF 0 ESF 0 ESF
0 SEED 0 SEED 0 SEED
0 FSA 0 FSA 0 FSA
0 DFA 0 DFA 0 DFA
Fiscal Year 2000 7,901 DA 4,413 DA    
0 CSD 0 CSD    
0 ESF 0 ESF    
0 SEED 0 SEED    
0 FSA 0 FSA    
0 DFA 0 DFA    
Through September 30, 2000 28,723 DA 20,006 DA 8,717 DA
0 CSD 0 CSD 0 CSD
0 ESF 0 ESF 0 ESF
0 SEED 0 SEED 0 SEED
0 FSA 0 FSA 0 FSA
0 DFA 0 DFA 0 DFA
Prior Year Unobligated Funds* 0 DA        
0 CSD        
0 ESF        
0 SEED        
0 FSA        
0 DFA        
Planned Fiscal Year 2001 NOA 6,350 DA        
0 CSD        
0 ESF        
0 SEED        
0 FSA        
0 DFA        
Total Planned Fiscal Year 2001 6,350 DA        
0 CSD        
0 ESF        
0 SEED        
0 FSA        
0 DFA        
      Future Obligations  Est. Total Cost 
Proposed Fiscal Year 2002 NOA 5,080 DA 10,160 DA 50,313 DA
0 CSD 0 CSD 0 CSD
0 ESF 0 ESF 0 ESF
0 SEED 0 SEED 0 SEED
0 FSA 0 FSA 0 FSA
0 DFA 0 DFA 0 DFA

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Last Updated on: May 29, 2002