21899 BRAZIL RAIN FOREST PILOT PROGRAM UPDATE Newsletter of the Pilot Programn to Coinserve the Brazilianl Rain Forest Volume 8 Number 1 (2000) The Sustainable Production Project Bringing Business Know-How to Small Producers An exciting new project is waiting in the wings to local NGO support, they suffer from a lack of essential support sustainable development by providing production knowledge and skills in production technology, marketing tcchnologY skills, business "know-how" and assistance and business management. They are further hampered by with marketing and financial support to promising the inaccessibility of affordable lines of financing or viable initiatives in rain forest resource management. markets for their products. The Sustainable Production Project is currently being Without the necessary technical, financial and designed by a team of Brazilian government officials to management inputs, these initiatives are probably doomed help innovative rural producers in the Amazon and to failure in the long-term, even with ample start-up grant Atlantic forest regions (mainly community associations assistance from the Pilot Program. There is currendty no and coopcratives) get the inputs they need to create and mechanism to provide comprehensive services to fill in maintain viable businesses in sustainable rain forest these critical gaps. products. In an effort to address these deficiencies, a team of The Pilot Program is well known for its support of World Bank and Brazilian government officials formed a sustainable rain forest resource management and working group in July 1999 to develop the Sustainable conservation initiatives through Demonstration Projects, Production Project, which would create a long-term the Extractive Reserves Project, and the Forest and mechanism to provide necessary technical and financial Floodplain Resources Mlanagement Projects. There are support to the rural producers. also several community and private activities outside of A preliminary project proposal is currently being the Pilot Program which aim to make productive and developed, and a workshop will take place in June 2000 to sustainable use of forest resources. review the proposal and stimulate partnerships for project One of the premises underlying these initiatives is implementation. Participants in the workshop will that rain forest consertation and sustainable development include representatives of some 30 institutions from the can be pursued at the same time, but only through a private sector, the Brazilian government, NGOs, donors balanced combination of ecological, economic and social and the World Bank. While the project design is far from factors. While these initiatives are being undertaken with finalized, it will most likely include the following great enthusiasm bv mostly rural communities with elements: (Continued on page 6) About the Pilot Program The Pilot Program to Conserve the Brazilian Rain Forest supports an integrated set of projects that vill contribute to a reducion in the rate of deforestation of Brazil's rain forests in a manner consistent with the sustainable development of the area's naturd and human resources, and that wil provide lessons for designing future activities. The Pilot Program was launched at the requestof the Group of Seven (G-7) industrialized countries and also enjoys financial support from the Commission of the European Communiues and the Netherlands. The total volume of financial and technical assistance pledged to the Pilot Program to date, is about U$350 million. The Pilot Program is coordinated by the World Bank, in accordance vwith agreements reached by the Pilot Program Participants (the donors and Brazil). The Pil.ot Program is designed to address the underlying causes of deforestation in Brazil's rain forests through a three-pronged .approach. l'rojects wiill help strengthen the capacity of the public sector to set and enforce sound environmental policy; impreve managcment of special protected areas, including parks, extractive reserves, national forests and indigenous lands; and increase the kn0 wledgc base on coiservation of the rain forest and sustainable utilization of its resources. BRAZIL RAIN FOREST PILOT PROGRAM UPDATE Project Updates * * * * * * * * * * * 0 FLOODPLAIN RESOURCES MANAGEMENT ment and testing of a system to monitor and control Although the Floodplain (Vqdrea) Resources forest activities; and (4) support for community Management Project is not yet formallv effective, much conservation and management of forest resources in the has alreadybeen accomplished to ensure a smoothproject Tapajds National Forest (Flona Tapaj6s) in the has already been accomphshed to ensure a smooth project Amazonian state of Para. start-up. Ulnder the leadership of the recentlv hired Project The Forest Sector Study Group under the strategic C oordinator, Mr. Mauro Ruffino, the Project studies component met in February and April 2000 tc oordinating UTnit (PC IU) is alreadv equipped and the prepare the work plan for Component 1 activities, and tc -rojectns perational manuals and iniial action plan are define some of the strategic studies. Specialists from being finaLized. PCU offices in Manaus are equipped with various disciplines wiLL be involved in carrying out the basic office infrastructure, and the technical specialist studies under this component, which aims to evaluate and From the United Kingdom's Department for revise policies governing the forest sector, and provide a International Development (DflD) is alreadv on-site. new system of incentives for sustainable forest management. ProManejo is fully integrated with the The US$15.5 million project is co-financed by the Department of Forests and Biodiversity of the Ministry oft 1erman Bank for Reconstruction (KIWQ, DflD and the the Environment (MMA), and strategic study results from Rain Forest Trust Fund (RFT). The project aims to the project will feed directly into the forest management promote the conservation and rational use of irrgea component of the National Forest Program, which was ¸cosvstems, with an emphasis on fisheries and other launched in April 2000. aquatic wildLife. The Executive Committee of ProManejo selected The legal agreements for funding from DflD and the three of the initial eight proposals for funding under the RFT have already been signed. Disbursement of project promising initiatives component. A second caLL for Funds now hinges on final approval and signature of the sustaina fores mageent sent ou [ea agemnDyteBaifa oenetwt sustainable forest management proposals went out in Legal agreement by the Brazilian government with February 2000. To assist interested institutons and Germam s Kf. The RFT grant is expected to become organizations, the Brazilian Institute for the Environment etffective shortlv thereafter, and a project launch and Renewable Natural Resources (IBAMA) published W.vorkshop is being planned for June 2000. *' guidelines for the preparation of proposals on its website FOREST RESOURCES MANAGEMENT at www.supes-am.ibama.gov.br. The deadline for Implementation of the Forest Resources Management receiving proposals is June 2000. Approved from the first Project (ProAIanejo), which started in January 1999, is call were sustainable forest management proposals from well underwa I. ProManejo's main objective is the the University of Amazonas in partnership with the firm jromotion of sustainable forest management in the Gethal Amazonas, and from the Socio-Environmental Amazon through (1) strategic studies aimed at reforming Institute (ISA) in partnership with the Xicrin indigenous forest policy and incentives; (2) support of promising people. In addition, a proposal to produce a forest forest management initiatives in the Amazon; (3) develop- management training film from the Tropical Forest Foundation was approved. The project has also hired a consultant to help Yrqtesti faciltate the exchange of information among various The World Bank community forest management initiatives. ProManejo has benefited greatly from the experiences of the more Pilot Program to Conserve the Brazilian Rain Forest seasoned Demonstration Projects in the development of Attn: Rain Forest Pilot Program Update evaluation and selection procedures, and the definition of 1818 H Street, N.W. - Room I 6-177 performance indicators for monitoring the subprojects. Washington, D.C. 20433, USA7' ''' Washington, D.C. 20433 UA .7Various activites are underwav in Flona Tapaj6s. Editors: Judith Lisanskey and Loretta Sprissler v............... The 2000 annual work plan for activities in the nationa. Brasilia Address: forest was reviewed bv the Flona's Management Group ir December 1999. Training of community environmentai Banco Mundial volunteers also took place in December, and a workshop SCN Quadra 01 - Lote A was held in Santarem in February 2000 to review and Ed. Corporate Financial Center, Conjunto 303/304 discuss an ecotourism plan for the area. An environment- 70712-900 Brasilia, Brazil (Continued on pa Tel: (55-61) 329-1000; Fax: (55-61) 329-1012 ge 3) E-mail: Brazil-Rain-Forest(worldbank.org BRAZIL RAIN FOREST PILOT PROGRAM UPDATE Forest Resources .......... (Cont. fro,m page 2) Nevertheless, PPTAL continues to make important al education proposal will be reviewed during a workshop inroads in the enhancement of technical and participatory planned for May 2000. In addition, the Management aspects of indigenous land regularization in the Brazilian Group is reviewing four proposed community forestry Amazon. Based on the results of studies financed under projects, and a surveillance plan for Flona Tapaj6s is the project to date, FUNAI is introducing improvements being prepared. in identification procedures and environmental diagnostics. It has also revised socioeconomic assessment The Prnctoject. PCoodiati Unit workd isefly .staff methods related to tenure, compensation and resettlement and functioning. PCU staff has worked closely with staff procedures for non-Indians living in indigenous areas. from Demonstration Projects in the development of operational procedures for ProManejo, and the PPTAL is supporting activities to enhance indigenous administrative and financial team has received training in participation in demarcations, most notably in the TIs project management procedures. The German Agency Vale do Javari, Munduruku e Poyanawa. Furthermore, for Technical Cooperation (GTZ) is providing technical innovative ethno-ecological studies are currentdy assistance to the PCU for overall project management and underway in eleven indigenous lands. These participatory implementation of the Flona Tapaj6s component. studies will provide a comprehensive view of the Consultants will be hired in the next few months to work biophysical, land use and socioeconomic characteristics of for the PCU in Santaram to assist with the each area and its inhabitants, in order to assist in implementation of the Tapaj6s component. *: management planning and sustainable use of natural INDIGENOUS IANDS resources by the indigenous people. The 2000 Annual Operating Plan for the Indigenous Although substantial progress has been made on the Lands Project (PPTAL) was approved by the World Bank preparation of a revised list of output indicators, the and the German Bank for Reconstruction (KfW) in monitoring and evaluation system is not yet fully March 2000. Some of the targets for the year include the operatonal, pending the final development of a lst of key identification of 20 indigenous lands I1s), the impact indicators. The priority list of indigenous lands, identification of 32 lsandig henous implands t(ti t revised annually in conjunction with the Annual demarcation of 32 TIs, and the implementation ?~ Operating Plan, continues to function as a powerful participatory survelllance and protection plans in six . . ' indigenous areas. To date, PPTAL has supported the monitorig tool. . regularization of over 20 million hectares of indigenous INDIGENOUS PEOPLE'S COMPONENT lands in the Brazilian Amazon. After some delays in the definition of its scope and The 2000 POA aims to intensify land regularization funding sources, the preparation of a new Indigenous efforts throughout the year to bring PPTAL back on track People's Component (PDPI) for addition to the in terms of meeting project goals. The most recent Demonstration Projects (PD/A) has been moving supervision visit bv the World Bank, KfW and the forward. Formal appraisal of the proposed component German Agency for Technical Cooperation (GTZ) took place in February 2000 under the leadership of the expressed concern that project performance had slowed German Bank for Reconstruction (KfW) and the German considerably during 1999. They noted that only seven of Society for Technical Cooperation (GTZ). an expected fifteen work groups were formed to conduct Project preparation is now being completed with a identifications. Demarcation performance was poor, with US$494,800 grant from Japan, which will fund a number none of the expected demarcation activities completed in of participatory activities with indigenous organizations in 1999 due to delays in the procurement of firms to carry August 2000, including workshops to discuss the draft out the work. operational manual for the component, and visits to While the pace of project implementation picked up PD/A subproject sites. during the second half of 1999, the team noted the The general objective of PDPI is to contribute to the importance of additional, sustained effort on the part of protection of Brazilian rain forests by improving the the Technical Secretariat and the National Indian economic, social and cultural sustainability of indigenous Foundation (FUNAI) to overcome administrative people. PDPI also aims to promote natural resource bottlenecks. The recent resignation of FUNAI President, conservation on indigenous lands, through support for Carlos Mares has heightened concerns about the impact the planning and implementation of local participatory of continued administrative instability on project initiatives that could serve as demonstration projects for performance. (The new president, Mr. Glenio da Costa other communities. Alvarez, was appointed in May 2000). (Continued on page 4) 3 BRAZILI RAIN [`(IRESTr PILOT PROGRAM UPDATE PDPI . (Cont frompage 3) A seminar with all major project plavers took place in PDPI wTill includc four sulbcomponents: (1) small Pirenopolis in January 2000 and provided uscful input to grants for subprojccts on surveillance and protection of the independent evaluation. N revised consultant report indige nous lands, economicallv sustainable activities and and a separate evaluation by the Ministry of the Environ- cultLral revitalization; (2) subproject management and ment (MMA) were then released by the NRPP Technical administration; (3) capacity-building and dissemination of Secretariat in April 2000. These documents were subproject rcsults; and (4) institutional strengthening of reviewed in May at a meeting of the MMA, donors and indilgenous organizations the World Bank to arrive at a final mid-term review One organizaxpectionres. ltsofPDPIistheimproved document. An executive summary of the documcnt in O)ne of the expectecd results of PDPI is the improved SEnglish will be available in June. A supervision mission, capacity of indigenious co:mmunities and organizations to capacity oscheduled for the first half of July 2000 wlll then assess )Ian, implement and manage resources in support of local state-level commitment to and implementation of key projects. Also, successful initiatives will be identified and recommendanons. rcsults disseminatcd to indigenous communities and organizations, NGOs, specialists at governmental and In the meantime, an amendment to the project's two non-governmental institutions and policy-makers. Finallv, grant agreements for new, activities was negotiated and indigenous organizations will be strengthened and thereby signed by MMA and the World Bank in Januarv 2000, empo\vercd to negotiate with local, state and federal ending a process started in June 1996 with the project's g(overnments, the private sector and non-profit reformulation. The amendment essentially formalizes (le organizations, according to their needs and priorities. facto project structure and procedures, and provides for support to two important activities: (1) a law enforcement Implementation of the component will take place campaign tided Ama.dnia Fique Legal (a play on words over a five-year period. Project funding is expected to l m ' O * * [ ~~~~~~literallvT meaning "Get Legal, Amnazon!") tlhat iS being include DTI 20 million from the German government through KfW, an estimated DM\I 2.5 milhon in technical assistance from GTzandanestimatedUS$2.5millionin cooperation with state environmental agencies; and (2) assistance from (IT>,, and an estimated US$2.5 mrillon in studies on economic instruments for environmcntal counterpart ftnding from the Brazilian government. The [Jnited IKingdom's Department for International mangem ent. Development has also expressed interest in providing Dung the last quarter of 1999, the project's support for institutional strengthening and subproject Technical Secretariat hired eight people to serve as state grants. This will be the first instance of a Pilot Program representatives of MMIA's Secretary for the Legal project (componcnt) without the participation of the Rain Amazon. Their responsibilities include the improvement Forest Trust Iund. of coordination between the NRPP and other federal environmental programs and initiatives in the nine In rcesponse to a request bv; the indigenousC Amazonian states. MMNA identified a qualified candidate organization COTAB (Coordenacao das Organizacoes in February 2000 for the remaining MMA state Indigenas da Armaz6nia Brasileira), the PDPI Coordinating Unit will be located in Manaus and managed representative positon in the state of ParA. by Mr. GersenJos5 dos Santos, an indigenous leader from During November and December 1999, Annual the LTpper Rio Negro region and former SecretaryT of Work Plans for the states of Acre, Amazonas and Para Education for the Municipal Government of Sao Gabriel were approved, in addition to those approved for AmapA da (Cachoeira in the state of Amazonas4 -(September 1999); Tocantins June 1999), and Mato Grosso Julv 1999). In July, and September 1999, work NATURAL RESOURCES POLICY' plans for the use of committed funds for project activities The Mid-Term Review of the Natural Resources in Rondonia were also approved. Policy Project (NRPP) started in November 1999 when a team of 14 consultants was hired by the Technical EWS & [NOTES Secretariat to carry out an independent evaluation of the project. Their report, based on consultations in all nine Latest Deforestation Data Announced states of the Legal Akmazon, confirmed major concerns shared bv all players and highlighted new issues. Other The Brazilian Ministers of Science and Environ-ment impo)rtant themes, such as whether the project is announced in April 2000 the latest data on deforestation achieving its objectives and whether the objectives are still in the Amazon. During 1997-98, about 17,383 krm2 valid, were not addressed at that time. (approximately half the size of Belgium) was deforesed This figure replaces the slightly lower estimate for the (C ntinued on page 5) 4 BRAZIL RAIN FOREST PILOT PROGRAM UPDATE Deforestation ....... (Cont frorn page 4b Brazilian government, donors and the World Bank). samc period announced in Februarv 1999. It represents Mleetings of the JSC are normally preceded by meetings of an incrcase of 31%/ over 1996-97, when an area measuring the Brazilian Coordination Commission and the Donor 13,227 krn2 mas deforcsted. Coordination Committee based in Brasilia, which formulate their own stance on matters to be discussed in the JSC. The World Bank is currently serving as the initial forest arcas for ranching and agricultural activities, and Secretariat of the JSC. does not include areas of forest affected by selective log,ging activities o)r wildfires. To date, the Amazon has Duin th fis w etnsi eebr19 n logging atvfeowidrsTodFebruary 2000, the JSC reviewed and approved its own lost almost 15% of its original forest covet. Bylaws and a new matrix of roles for the PPG7 The forest monitoring conducted by INPE (National Participants. The Committee also discussed criteria for Institute of Space Research) is considered the most the allocation of uncommitted resources of the RFT; comprehensive in the world, based on remote sensing and approved support for an Atlantic Forest subprogram and Geographical Information System techniques. Every civil society networks in the Amazon and Atlantic Forest year, 229 satellite images at a scale of 1:250,000 are regions; approved a joint budget for coordination of the interpreted. INPE has been calculating annual deforest- PPG7 by MMAA and the World Bank from RFT ation rates since 1988. The highest annual rate thus far resources; and approved the terms of reference, short list was in 1995 when about 29,000 k-m2 of natural forest was and selection process for the PPG7 Mid-Term Review cleared. (see related story below). In addition, the JSC endorsed a The MIinisters also announced an estimate for the format for future presentation of conceptual ideas for period 1998-99 of about 16,926 kim2, a decrease of some new projects. 3% compared to 1997-98. This estimate is based on the The JSC Bylaws and the minutes of the meetings are analysis of a sample of 47 Landsat images that cover the available in English and Portuguese on the World Bank's critical deforestation areas (in the so-called Amazon PPG7 web site (www.worldbank.org/html/extdr/ "deforestation belt"). *:* offrep/lac/ppg7) under the heading "Program Joint Steering Committee Streamlines Decision Coordination". 4 Making for the Pilot Program Pilot Program Undergoes Mid-Life Check-Up The new Joint Steering Committee of the Pilot A consortium of two firms -- Indufor Oy of Finland Program to Conserve the Brazilian Rain Forest (PPG7) is and STCP Engenharia de Projetos Ltda of Brazil -- has up and running. initiated the much anticipated mid-term review of the Pilot Program's first phase. The firms were chosen in Established by the Participants in October 1999 to Februarv 2000 to conduct the review, following a detailed help streamline the PPG7 decision-making process, the selection process involving donor countries, NGOs, the Joint Steering Committee (JSC) is meeting four times a World Bank and the Government of Brazil. year to dcal with important matters concerning the Pilot Program as a whole, such as strategy formulation, the Based on terms of reference which were agreed during inclusion of new projects, allocation of Rain Forest Trust the October 1999 Participants Meeting in Brasilia, the mid- (RFT) resources, and support to civil society term reniew team will evaluate the progress of the Pilot organizations. The JSC -will also discuss Brazilian policy Program as a whole, as wel as the achievements of individual issues related to tropical forests. projects towards meeting their stated objectives. The review will also provide a forward-looking assessment to guide the Tdhe Participants oeetings still serve as thet remaining years of the program's pilot phase. The INFR team decision-making forums for the Pilot Program, but they is workiing under the leadership of Dr. Eduardo Martins, a xvill now take place biannuallv, rather than once or twice a pvate Brazilian environmental consultant, and consists of 13 year, to address the more far-reaching strategic concerns technical speciasts from Brazil and Finland. The team will of the Pilot 1Program. t .hiia spcait.rmBaf n iln.n emvl of the Pilot Program. also utilize supplementary technical assistance from Germany The joint Steering Committee is chaired by the with two consultants focusing on issues related to the Atlantic Executive Secretary of the Ministrv of the Environment rain forest and sustainable development. (MMA) and has six Brazilian government representatives One of the first tasks undertaken by the mid-term (includitng one from MI\\A), two state government review team was the preparation of a work plan and representatives, two from civil society, seven donor timetable, which have been submitted to the Pilot representatives and one from the World Bank. Decisions Program's Joint Steering Committee for review and com- are made bv consensus or, if this is not possible, in consultation \vith the PPG7 official Participants (the (Continned on page 6) 5 fIRAZII RAI,,N FOREF'r PILOT PROGRAM UPDATE Sustainable Production ................ ConCt frompage 1) this stage, key evaluaton issues will be publicle * Screening of promising sustainable initiatives in disseminated and discussed through an interactive MTR the Amazon. This component would include an analysis web site (www.stcp.com.br), workshops, questionnaires, tte xazon Thl comonen woul mclde a anaysls interviews and consultative meetings. The first state levcl of initiatives supported under the Demonstration Projects workshops took ulace roughu The months ofAp andoterproras n ode t intill seec 4-6 workshops took place throughout the months of Apr:l and other ptograms in order to initially select 40-60 and May 2000. candidate initiatives for assistance under the Sustainable Production Project. The evaluation phase of the MTR consists of an internal workshop to review, and assess the main findings * Fstablishment of a data bank. Information on the of the consultations; additional field visits and selected initiatives, potential investors (such as venture consultations to complete data collection; and the capital funds and credit banks), business consulting firms preparation of a comprehensive report on the evaluation and potennal business partners would be consolidated in a of the Pilot Program and individual projects. The final data bank to help facilitate necessary assistance to the "forward looking" phase of the M\1TR will focus on the selected initiatives. preparation of a proposed logical framework for future * Promotion of sustainable partnerships. This activities and a set of key strategic recommendations component would catalyze partnerships between on-the- providing guidance for continuation of the Pilot Progran ground productive initiatves and commercial partners, durng the second half of its life. such as retailers, wholesalers or international firms The comprehensive evaluation should be completed interested in buving products or investing in the in July 2000 and is expected to serve as an input to the initiazves. G-8 summit in Tokyo as well as to the PPG * Support to promising initiatives. Resources would International Advisory Group meeting in Brasilia be allocated for (1) training in business administration, scheduled for the same month. The assessment of accounting and project design; (2) business planning; options for the future and the final mid-term review" report should be available in September 2000. (3) market research; and (4) legal support, among other i p things. Some 60"io of the support may go for assistance Strengthening Pilot Program Coordination to the 40-60 selected initiatives. The remaining funds coulcd be invested under a competitive demand system, in The UNDP has received a US$500,000 grant from whichl additional inina would be invited to compete the RFT to support the Brazilian government in whicliadditional initiatives would be inited tcompete strengthening its Pilot Program coordination. The grant for available resources. will also finance a special unit for the establishment of an * Adaptation of official credit and rural extension Atlantic Rain Forest subprogram under PPG7. This uni- system. This would include training of employees from will prepare a proposal for the subprogram by November official banks and rural extension agencies to provide 2000. funding and technical support for the initiatives In addition, a new three-year PPG7 Coordination supported v the project. Project funded by the Netherlands and the RFT is Appraisal of the proposed Sustainable Production planned to start later this year to further strengthen Project is expected to take place during the second half of Brazilian leadership and coordination of the program. * 2000. The total cost of the project is an estimated US$5 million, of which about US$3.8 million is expected to PPG7 Web Site Online come from the Government of the Netherlands. Other The World Bank launched the Pilot Program web sitr contributing partners will be identified as project in October 1999. The web site features information ort preparation advances. - Pilot Program organization, coordination, funding ancd Mid-Term Review ........... (Cont.from page 5) specific projects, as well as a copy of the latest Bra Vl RairA T . . . ~~~~~~~~~~~Forest Pilo t Programn Up t despartnerl -ment. XX7hlMe the RITR team began work in March 2000, their Fdate. Ir also includes partner links work plan vwill be adjusted to address any suggested changes to wth relevant web sites mamtained by the Brazilian * . 1 1 1 ^ . ~~~~government, project donors, the World Bank and the! the proposed timetable or methodology. An inital preparatorv e j phase. which included the design of the work plan and initia Global Environment Faclity. briefings wi1th key Pilot Program stakeholders, has since given You can visit the web site at www.worldbank.org/ way to intensive consultations at the national, state and local html/extdr/offrep/lac/ppg7/index.htm. The Pilot levels. This intensi-ve consultative phase aims to foster adequate Pro-gram welcomes any comments or suggestions for the )wncrship and participation in the mid-term review. At site. We look forward to hearing from you soon! P lilrhtc(L ( )1 C L\ ci pperu