6 IS-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ / & 6/5 P ILOT PROGRAM UPDAO" Quarterly Newsletter of the Pilot Program to Conserve the Brazilian Rain Forest A - . -. _ w . i Volume 4, Number 1 January 1996 Management of Forest Resources Project Nearing Appraisal The third and last project preparation workshop for to sustainable forest management practices by the Management of Forest Resources Project (formerly individuals, firms and private organizations; (3) the called the National Forests Project) was held in Brasilia establishment of a system to monitor and control forest on December 18-20, 1995. Representatives of the harvesting activities in two pilot areas; and (4) the Ministry of the Environment, Water Resources and the implementation of a participatory management and Legal Amazon (MMA), the Brazilian Institute for the conservation plan for the Tapaj6s National Forest Envirounent and Renewable Natural Resources Reserve, with an emphasis on social forestry activities. (IBAMA), the German Bank for Reconstruction (KfW), According to the project proposal, MMA will be t the German Agency for Technical Cooperation (GTZ), responsible for overall coordination of the project, with the World Bank, non-governmental organizations IBAMA serving as the technical secretariat. Project (NGOs) and universities met to discuss the final draft of activities will be implemented by a variety of local the project proposal and to identify any additional issues groups (including, for example, local IBAMA offices, that need to be resolved before the project can be NGOs or community associations). Two committees, appraised. Project appraisal is the point in the project one supporting overall project implementation activities, p cycle when the World Bank and Pilot Program donors and one for activities specifically related to the Tapaj6s conduct a comprehensive review of technical, National Forest Reserve, will also be convened to ensure environmental, institutional and financial aspects in the participation of a broad range of stakeholders in order to assess the readiness of a project to be funded. project management. The committees will be composed The Management of Forest Resources Project is expected of representatives from government, the private sector, to be appraised in April 1996. NGOs, social groups and the academic community. The The overall objective of the proposed five-year committees will meet at least twice a year to evaluate project is to support the development and adoption of project activities. sustainable forest management systems in the Amazon Participants at the December workshop also through strategic actions and pilot experiences in priority recommended that two additional studies be conducted z areas. The Management of Forest Resources Project before project approval. For the first study, a team of consists of the following four components: (1) strategic specialists will conduct a review of existing forest analysis and recommendations for reform of policies and management initiatives, carrying out site visits in incentives affecting the forestry sector; (2) the promotion (Continued on page 3) of innovative initiatives designed to test new approaches About the Pilot Program The Pilot Program to Conserve the Brazilian Rain Forest supports an integrated set of projects that will contribute to a reduction in the rate of deforestation of Brazil's rain forests in a manner consistent with the sustainable development of the area's natural and human resources, and that will provide lessons for designing future activities. The Pilot Program was launched at the request of the Group of Seven (G-7) industrialized countries and also enjoys financial support from the Commission of the European Communities and the Netherlands. The total volume of financial and technical assistance pledged to the Pilot Program to date, including associated bilateral projects, is about US$290 million. The Pilot Program is coordinated by the World Bank, in accordance with agreements reached by the Pilot Program Participants (the donors and Brazil). The Pilot Program is designed to address the underlying causes of deforestation in Brazil's rain forests through a three- pronged approach. Projects will help strengthen the capacity of the public sector to set and enforce sound environmental policy; improve management of special protected areas, including parks, extractive reserves, national forests, and indigenous lands; and increase the knowledge base on conservation of the rain forest and sustainable utilization of its resources. ' '-- - .;r paptr Project Updates o 0........ . *** g .. e * ...* **so AQuATIc RESOURCES MANAGEMENT PRojEcT October and December 1995. The EC, which is Ongoing discussions of the Aquatic Resources composed of government, NGO and Bank of Brazil Management Project (formerly known as the Natural representatives, is responsible for making the final Resources Management Project) have resulted in a shift decision on sub-project funding. Of the 37 sub-projects in focus from the developmnent of alternative forest chosen, 30 are to be implemented in the Amazon region products to the management of aquatic resources and the and seven in the Mata Atlantica. About US$4.95 floodplain (vanea) environment in the Amrazon regioe million under the PD/A will be used to fund the sub- fopiveevoregion, projects, with counterpart contributions from sub-project A preliminary brainstorming meeting organized by grant recipients. The average PD/A grant for an IBAMA and the World Bank took place in Manaus-on approved sub-project is about US$134,000, with the November 28-29, 1995 to discuss the main issues related smallest being US$4,995 and the largest, US$210,000. to aquatic resource management. Participants at the meeting included representatives of MMA, IBAMA, By mrd-December 1995, 147 proposals had been KfW, universities, NGOs, research agencies and the presented to the PD/A Technical Secretariat, which is responsible for screening all sub-projects and submitting project concept paper presented by IBAMA on the eligible proposals to the Project Analysis Group for projec concpt paer prsente by AMA o tie technical review before final approval by the EC. In identification of the main problems affecting fisheries tionica those alreal approval,bynthe 40 In and vdrzea resources in the Amazon. Some issues raised addition to those already approved, another 40 sub- during the meeting included the absence of a fisheries projects are still under consideration. Some of the policy adapted for the region; the lack of basic data to approved sub-projects focus on agroforestry systems; monitor fish stocks; the impact of habitat destruction on processing, marketing and transportation of forest aquatic resources; the overfishing of some commercial products; rehabilitation of degraded areas; medicinal Qpecies, and the lack of control and monitoring of plants; bee-keeping; forest management; enrichment of fishingactivitiese secondary forests; recovery of coastal ecosystems; and aquaculture. To continue the preparation of ;the Aquatic Tesourcontianugemhen Projeparatiagron of thecAquatic After some delay, a standard sub-grant agreement Resources Management Project, a group of specialists between the Bank of Brazil and sub-project grant will prepare a report addressing each of the problems recipients that includes, among other subjects, identified in the Manaus meeting for presentation at a disbursement and accounting requirements, was agreed workshop scheduled to take place in Belem on March by the Bank of Brazil, MMA, the World Bank and 26-28, 1996. The focus of this participatory planning Ger Bany's KfW (which will finance most of the sub- workshop will be on defining project objectives and projects). Under PD/A, the Bank of Brazil is activities related to aquatic resources management. * prJcs. UdrP/, h ako rzli activits rresponsible for administering funds for the small grants DEMONSTRATION PROJECTS program. Funding of approved sub-projects is expected to start in January 1996. The first group of sub-projects to be funded under B o : . . E~~~~~~~~~Based on the first year's experiences, the the small grants program of Demonstration Projects operational manual and application forms are currently (PD/A) was approved by the project's Executive being revised to improve access to the small grants Comnmission (EC) during meetings held in August, program. * Your qxastkrns and coimnoits are weico ENviRoNmENTAL EDUCATION PROjECT Wme us t: iA basic concept paper for the Environental e-WrdBank .... Education Project was submitted to the Bank and the .. ot Proe.a. e-.ont t 1i.n-RP .. donors in late December 1995. Based on the results of Afn: ; Rain Forest Pilot -wgra e ; - -two participatory planning workshops held in March and 1818 H S*reet N. W. - Room Q.037 May/June 1995, the concept paper emphasizes the Washigtn,: bD.C 20_3 VS- importance of evaluating and building on existing ditofrs; udith. Lisansky A;; ior sta Sprile; ......successful initiatives in environmental education and the training of environmental educators in the Amazon Bratsiss i Address (-s of January 22, 1 --96: --0 region. The MMA and IBAMA technical team are SCN QuetAdra 01 - Lte A i0;il-l;004 currently preparing a draft project proposal to be Ed. Corporate inan£ciaCenter>,0 Conjnto 303/304 0disseminated for state-level discussions throughout the .0717.10Z-50 r a Brazi. ..- .. Legal Amazon. A third participatory planning workshop Tl (55-61) 5329-1000; FaPx:(55-61)=1: 010-3 -- to discuss the draft project proposal has been scheduled for March 1996.* 2 RAIN FOREST PfILOT PR0C RAM U PDATE INDIGENOUS LANDS PROJECT (COEMAs) in each state. In addition, three sub-regional The Indigenous Lands Project grant agreements seminars are being planned for March 1996 to discuss were finalized before the close of 1995. Once the the development of state-specific zoning methodologies remaining requirements were met, the Rain Forest Trust with representatives from the Amazon states. (RFT) grant agreement (US$2.1 million) was declared Discussions will focus on a proposed new methodology effective on December 8, 1995. The German financing for ecological-economic zoning (ZEE) developed by effective onW Decembero8,m1995. The20 Germanlin)ann Professors Bertha Becker and Claudio Egler (Federal through KfW (approximately US$20 million) also simultaneously became effective. The National Indian University of Rio de Janeiro) following a preliminary Foundation (FUNA,) will immediately begin work ~ ZEE seminar held in Brasilia in August/September Foundation (FUNAI) will immediately begin work on 1995 * what was originally conceived to be its first six month work program for 1995, which will now be continued Mgt. of Forest Resources Project (Cont. from page 1) into the first half of 1996. The project duration is for a February and March 1996 to those areas where total of five-and-a-half years. The objective of the promising forest management initiatives are planned or Indigenous Lands Project is to improve the conservation already underway. Some of these inititatives will then of natural resources in indigenous areas and increase the be pre-selected for project funding on the basis of the well-being of indigenous people through (i) regularizing following criteria: the degree of technical innovation indigenous lands in the Legal Amazon, and (ii) and creativity of forest management practices; reduced improving the protection of indigenous populations and environmental impacts of extraction; the establishment of areas (the project is described in more detail in the Rain partnerships among a variety of stakeholders; use of Forest Pilot Program Update, July 1995). * multiple resources, including non-traditional forest products; and the potential for replicability of forest NATURAL RESOURCES POLICY PROJECT management practices for demonstration purposes. The Rain Forest Trust (RFT) and Commission of The second study involves the development of a European Communities (CEC) Grant Agreements management plan for the Tapaj6s National Forest with became simultaneously effective on November 21, 1995 stakeholder participation. Several participatory planning (US$20 million and US$21.4 million equivalent, workshops with key users of the forest will be carried respectively). The primary objective of the Natural out between March and August 1996 to discuss zoning Resources Policy Project is to strengthen the policy and land use issues of the Tapaj6s forest. A draft forest analysis, regulatory and implementation capabilities of management plan for the Tapaj6s National Forest is state environmental management entities (OEMAs) in the expected to be completed by September 1996. F nine states of the Legal Amazon (see the January 1995 edition of the Rain Forest Pilot Program Update for a NEWS BRIEFS more detailed description of the project). Amazon Working Group Receives RFT Funding Recent project activities included a seminar held in Following an agreement reached by the donors at the December 1995 in Palmas, Tocantins to discuss the Second Participants Meeting of the Rain Forest Pilot environmental impact assessment of infrastructure Program (see Rain Forest Pilot Program Update, July projects. The seminar was co-sponsored by the 1995), additional funding has been provided. to support Government of the State of Tocantins, the Norwegian administrative activities of the Amazon Working Group Environmental Consultant Trust Fund and the World (GTA), the organization formed by NGOs in the Amazon Bank. Seminar speakers included Paulo Egler of the region to facilitate their participation in the Pilot Program. Ministry of Industry, Commerce and Tourism (MICT), In August 1995, a meeting of the GTA Deliberative and the former State Secretary of the Environment for Council to elect a new President (Joao Gerson Moraes) and Rond6nia, Francisco Pereira, currently of Eletronorte. Executive Secretary (Fabio Vaz de Lima) was financed by Representatives of state environmental management the Pilot Program. During October/November 1995, Pilot entities (OEMAs) and State Zoning Commissions from Program funds (Rain Forest Trust - RFT) supported the the nine Legal Amazon states, federal entities at the state travel of key GTA personnel to the 15 GTA regional level, MMA and IBAMA attended. In October 1995, offices throughout the Amazon in order to carry out a representatives from each state also participated in World needs assessment of the regional offices and to improve Bank seminars held in four different locations (Sao Luis, their coordination with the national office in Brasilia. A Manaus, Porto Velho and Brasilia) to discuss project grant agreement between the World Bank and the GTA is procurement, disbursement and auditing requirements. expected to be signed in January -1996 for additional RFT funds to support GTA's 1996 activities. * In January 1996, MMA and World Bank staff World Bank Brasilia Office Moves members will visit all nine Legal Amazon states to discuss the five-year Action Plan for the project and the As of January 22, 1996, the World Bank Brasilia State Environmental Programs to be presented for the Office, including the Bank's Rain Forest Pilot Program of the environmental policymaking councils unit, will have a new address, telephone and fax numbers (see box on page 2 for details).- 3 RAIN FOREST PILOT PROGRAM UPDATE In the 1980s, rubbertapper leaders such as Chico general guidelines for resource use, have been approved Mendes argued that the government should grant local by IBAMA for all four reserves. extractivist populations the legal right to use the natural Local inhabitants have also constructed community resources in the forests where they were living, because warehouses and cleared hundreds of kilometers of trails their way of life helped maintain rather than destroy the and paths. CNPT delivered a series of preliminary forest environment. Since then, the concept of extractive training programs in administration and financial reserves has attracted considerable international attention management that the associations needed to manage grant as an innovative conservation-based development funds. In addition, rotating credit funds for the approach. Because it is still untested, however, many commercialization of non-timber forest products have questions about the approach remain, such as whether or been established in each reserve. not the reserves will become economically sustainable, and the best way to manage and regulate access to the In terms of improved production, other training natural resources. programs held this year in the reserves focused on PBF The Pilot Program's Extractive Reserves Project (placa bruta defumada), an improved rubber processing was designed in part to address these questions. Since technique, and the production of "vegetal leather" from rubber. Support from the project and other sources has Febuay 995 wenproecgantagee has beaen gone into the establishment of Brazil nut processing effective, the Extractive Reserves Project has been facilities. Meanwhile, poor prices for rubber are further providing support to complete the establishment and stimulating discussions about the best options for strengthening of the first four extractive reserves created alterative income generation in the extractive reserves. in Brazil: the Chico Mendes and Alto Juru. Reserves in A study is currently underway to identify the market the State of Acre, the Cajari Reserve in Amapa and the potential of a variety of forest products. During 1996, Rio Ouro Preto Reserve in Rond6nia (see Rain Forest the project is expected to fund some pilot income Pilot Program Update, October 1994, for a more generating activities, such as the commercialization of detailed project description). honey or copaiba oil. The project is also providing The four-and-a-half-year US$9.7 million Extractive support, by means of rural extension and technical Reserves Project is being jointly implemented by the assistance, for the improvement of subsistence National Center for the Sustainable Development of agriculture and agroforestry. Traditional Populations at the Brazilian Institute for the Work on completing the full legalization of the land Environment and Renewable Natural ResourcesWokocmpegthfuleaizinofhead (CNPT/IBAMA) the National Rubbertappers Council for the extractive reserves and on awarding concession (CNPTIBAnd Asi loa conan assoiatn in t founr contracts to the local inhabitants has gone somewhat reNServes The projctlcommunit alsocidraws so n the e eofr slower than expected this year. The project will hire a reserves. The project also draws on the expertise of tlim atoe nxtyrtofciaeth other state and municipal agencies, non-governmental full-im atton e nextryear To faiite the organizations, universities and specialized researchers regularization of the reserves. The remaining two andconultnts demarcations for the Alto Jurua and CaJari Reserves are and consultaints. expected to be carried out between February and May Implementation of the Extractive Reserves Project 1996. With respect to surveillance and protection of the has gotten off to a good start. The local extractive reserves from outside encroachment, the local IBAMA reserve associations (three associations in the Chico offices have been equipped and have begun working Mendes Reserve and one in each of the other reserves) closely with the reserve associations to develop reserve have successfully planned and carried out most of the protection plans and provide training to local residents. activities of their first annual work programs. During the initial months, the associations refurbished or built The main activity carried out under the modest offices, acquired basic equipment and hired a environmental management component was the small team of support and technical personnel. development of a participatory monitoring and Numerous meetings were organized and held throughout evaluation plan for the extractive reserves. Initial steps the reserves to discuss and disseminate information about were also taken toward establishing guidelines for the project and the extractive reserve utilization plans longer-term extractive reserve development plans. and to plan and coordinate a variety of activities. Implementation of these activities and carefully targeted Extractive reserve utilization plans, which establish research will begin in 1996.- 4 RAIN FOREST PILOT PRO6RAM UPDATE