PROJECT IDENTIFICATION FORM (PIF)

PROJECT TYPE: FULL SIZED PROJECT

THE GEF TRUST FUND

Submission Date: April 8, 2009

PART I: PROJECT IDENTIFICATION
GEF PROJECT ID1: PROJECT DURATION: 4 years INDICATIVE CALENDAR*
GEF AGENCY PROJECT ID: 4197 Milestones Expected Dates
mm/dd/yyyy
COUNTRY: Bolivia June 2009
Work Program (for FSP)
PROJECT TITLE: Biodiversity Conservation through Sustainable February 2011
CEO Endorsement/Approval
Forest Management by local communities
Agency Approval Date March 2011
GEF AGENCY: UNDP
Implementation Start April 2011
OTHER EXECUTING PARTNER(S): Vice-Ministry of Environment,
Mid-term Evaluation (if August 2013
Biodiversity and Climate Change.
planned)
GEF FOCAL AREA (S)2: Biodiversity August 2015
Project Closing Date
GEF-4 STRATEGIC PROGRAM: BD-SP4/SP5
* See guidelines for definition of milestones.
NAME OF PARENT PROGRAM/UMBRELLA PROJECT: MFS/SFM

A. PROJECT FRAMEWORK
Project Objective: Enhanced protection and conservation of biodiversity (BD) in the Amboro-Madidi Corridor through sustainable forest management
(SFM) practices enabled by fostering markets for certified forest products and increased local incomes
Indicate Indicative Indicative
whether GEF Co- Total ($)
Project Investme c=a+b
Expected Outcomes Expected Outputs Financing a
Financing a
Components nt, TA,
or STAb ($) a % ($) b %

1. Institutional TA - Technical and operational - Municipal-level forestry 1,290,000 32 2,800,000 68 4,090,000

support mechanisms capacities among municipal
are built to assist stakeholders are in place to
BD conservation support, control, and monitor
through certified local forest management and
community forest BD conservation activities
management - Landscape-level planning
applied to incorporate BD needs
(e.g. wildlife corridors) and
monitor broad-scale impacts of
forest management
- Technical capacity within
national-level Forestry
Department to promote and
apply forest certification
processes based on BD-friendly
FSC principles and criteria
- Departmental and municipal-
level govt. procurement policies
for certified or verified forest
products
2. Community TA - 48,000 ha increase (30% over
capacity is 160,000 ha baseline) in forest
strengthened to area protected through a BD-
achieve and friendly certified forest
maintain management scheme (Forest
certification, and to Stewardship Council)
manage forests in a
sustainable and BD- - At least 41,600 ha (20% of
friendly manner total certified forest area) of
mandatory BD set-asides
stakeholders applying technical
tools to support, control and
monitor local forest management
and BD conservation activities
- System designed and applied to
plan, manage and monitor the
impacts of forestry on BD at the
landscape scale
- Integration and adoption of BD
management through certification
into national programs
- National technical and operational
capacity to expand certification and
BD conservation in production
forests
- Decrease in the illegal trade of
wood and non-wood products
- New market linkages to state
buyers and increased sales for
certified producers
- Local capacity to obtain and 1,990,000 34 3,800,000 66 5,790,000
maintain certification is enhanced
- Significantly increased production
forest area placed under systematic
external auditing to ensure
compliance with BD criteria
-Avoided deforestation and forest
degradation in a critical forest
corridor

1
Project ID number will be assigned by GEFSEC.
2
Select only those focal areas from which GEF financing is requested.

PIF Template, August 30, 2007 1

 established and implementing
strict protection plans and
safeguard measures for BD
conservation, reducing pressure
on a significant area of a vital
biological corridor
- BD indicators remain stable or
improve in at least 10
communities* of the Amboro-
Madidi Corridor (baselines to
be established during PPG)
- Integrated Fire Management
systems reduce the frequency
and severity of fires (baselines
to be established during PPG)
3. Economic TA - 30% increase (90,000 m3 over
incentives are in an assumed baseline of 270,000
place to attract and m3†) of certified or verified
keep community wood sold in natl. and intl.
forestry operations markets
committed to
sustainable forestry - Increase in local forestry
and BD management operation competitiveness in the
practices marketplace as a result of
certified forestry and enhanced
business skills, enabling greater
BD management practices
- 10 new alliances established
between producers and national
or international buyers with
procurement commitments
- 10 new chain-of-custody
certifications (baseline of 28 as
of 31 Dec 08)
- Increased investment in local
forestry operations to improve
management practices that
contribute to BD objectives
4. Project
management
Total project costs
a
List the $ by project components. The percentage is the share of GEF and Co-financing respectively of the total amount for the component.
b
TA = Technical Assistance; STA = Scientific & Technical Analysis.
B. INDICATIVE CO-FINANCING FOR THE PROJECT BY SOURCE and by NAME (in parenthesis) if available, ($)
Sources of Co-financing Type of Co-
financing
Project Government Contribution In Kind
FONABOSQUE Cash
Bilateral Aid Agency(ies) Cash and In Kind
(Sweden, the Netherlands)
Multilateral Agency(ies) Cash and In Kind
(European Union)
Total Co-financing
PIF Template, August 30, 2007
- Increased local capacity to
manage and monitor BD impacts in
production forest
- Application of criteria and
indicators for monitoring BD in
production forests (with emphasis
on BD of global importance)
-More sustainable use of wildlife
resources and other BD values in
production forest landscapes
- Reduced fire occurrence abates
threats to BD in production forests
in the biological corridor
- Lessons from project experiences
inform the development of models
to be transferred to other areas
- Local forestry operations garner 1,660,000 41 2,400,000 59 4,060,000
increased incomes through certified
forestry
- Producers achieve lower
production costs, higher production
quality, improved marketing skills
and access to preferred markets
- Increase in demand for certified
wood products among national and
international buyers
-Increase in demand and supply
chain capacity to process and trade
in certified wood
- Implementation of a mechanism to
channel resources from the National
Forest Fund (FONABOSQUE) and
other sources towards BD friendly
forest management and certification
560,000 27 1,500,000 73 2,060,000
5,500,000 34 10,500,000 66 16,000,000
Project
500,000
1,000,000
6,000,000
3,000,000
10,500,000
2
 C. INDICATIVE FINANCING PLAN SUMMARY FOR THE PROJECT ($)
Previous Project Total
Project (b) Agency Fee
Preparation Amount (a) c=a+b
GEF financing NA 5,500,000 5,500,000 550,000

Co-financing 10,500,000 10,500,000

Total 0 16,000,000 16,000,000 550,000

PART II: PROJECT JUSTIFICATION

A. STATE THE ISSUE, HOW THE PROJECT SEEKS TO ADDRESS IT, AND THE EXPECTED GLOBAL ENVIRONMENTAL
BENEFITS TO BE DELIVERED:
1. This GEF project aims to improve conservation of biodiversity (BD) in Bolivia, primarily in the Amboro-Madidi
Corridor which is the country’s richest forest area in terms of both species richness and endemism. The project will reduce
pressure on globally-significant BD in this vital biological corridor through the expansion of sustainable forest
management (SFM) practices that implement specific measures for BD conservation and monitoring. The project will
achieve this by strengthening operational and institutional capacities at multiple scales to enhance the contribution of
FSC-certified SFM to BD conservation. Increased investment in BD management in production landscapes will be
enabled by building strong markets for products sourced from sustainably managed forests, thus garnering economic
benefits and incentives to reward SFM and BD conservation by local communities, while enhancing the capacity of
forestry stakeholders all along the supply chain to participate in this market.
2. Bolivia is one of the most biologically-diverse countries in the world. The country hosts a vast BD endowment at
alpha, beta, and gamma levels. Between 35% and 45% of the world’s species diversity is represented in Bolivia. Forests
cover 53.1 million hectares – 48.3% of the national territory. The country spans 12 ecoregions and 199 ecosystems, which
collectively house a tremendous number of plants and animals: approximately 20,000 species of plants, 1,200 species of
ferns, more than 356 species of mammals, 1,400 species of birds, 203 species of amphibians, 266 species of reptiles, and
about 600 species of fish. At least 100 vertebrate species are considered to be endemic, and 250 vertebrate species are
considered to be vulnerable or critically endangered, according to the World Wide Fund for Nature (WWF). The country’s
forest biodiversity is particularly important, with more than 4,000 species of trees identified, a high percentage of which
are endemic3. Floral and faunal endemism are concentrated in relatively small set of ecoregions (see annex A, maps 1 and
2), mostly in forest areas between the Andes and the lowlands (see annex A, map 3). Eight of the “Global 200” ecoregions
prioritized by WWF as globally important and requiring immediate conservation actions are found in Bolivia: Southwest
Amazon Moist Forests, Pantanal, Beni Savanna, Central Andean Yungas, Central Andean Dry Puna, High Andean Lakes,
Chiquitano Dry Forest and Flooded Forest.
3. With the aim of protecting and conserving BD resources, the Bolivian government has established a network of more
than 60 protected areas (PAs), including 22 national parks, covering about 20% of the national territory (see annex A, map
3). Additionally, in 1996, a new Forestry Law was promulgated, setting out forest management norms as well as specific
rights and duties of various actors according to different forest classifications. The Forestry Law also created a
Department of the Forestry Superintendent (FS) to control and improve forest management in the country, and to enforce
the adoption of management practices to conserve BD resources by implementing forest management plans that require,
among other measures, the identification and classification of reserve areas 4.
4. Despite such measures aimed at ensuring forest protection and conservation, Bolivia’s BD endowment continues to
come under significant human-induced threat. FAO estimated in 2005 that some 161,000 ha of forest per year (0.3% of
the total forest area) were cleared during the period 1990-2000; more recent estimates have concluded that this figure has
increased dramatically, with the FS reporting that approximately 300,000 ha of forest were cleared in 2007. In the forests
of the Amboro-Madidi Corridor (AMC), threats are especially intense. Given the species richness and endemism that
occurs here – the 2008 IUCN Red List identified 2038 animals and 110 plants between the “Critically Endangered” and
3
Killeen, T.J., Garcia, E. and S.G. Beck (eds). 1993. Guia de arboles de Bolivia. La Paz : Herbario Nacional de Bolivia.
4
Forestry Law 1700, 1996.

PIF Template, August 30, 2007 3

the “Least Concerned” categories in this area – significant BD losses are taking place. Several interrelated drivers underlie
threats to BD in the AMC. First, deforestation as a result of forest conversion for agriculture and livestock production by
locals, as well as new settlers migrating from the highlands, is accelerating. Such land use practices generate relatively
fast and oftentimes significant income, directly improving livelihoods over the short term, and are therefore proving to be
more economically attractive land use than forest management. Second, forest degradation has a direct impact on BD
through the removal of species and the altering of habitat and ecosytem function. Forest degradation occurs in its most
aggressive forms on the margins of where the highest levels of deforestation are found, and typically is the result of
overharvesting of target species – e.g. timber, fuelwood and non-timber forest products (NTFPs) with high market value.
Third, forest fragmentation, as a result of deforestation, threatens BD in the corridor by reducing connectivity between
forest habitats.
5. Since the present PA network in the AMC is itself fragmented, since many PAs fall under weak protection categories,
and since the social and economic opportunity costs of expanding the PA network are particularly high, i t is critical to
improve protection of BD outside PAs in order to ensure long-term conservation success. Much of the forest outside PAs
is under the jurisdiction of two types of legally-recognized community entities – Comunidades indigena originario
campesinas and Territorios Comunitarios de Origen (TCOs) – which rely on forest resources for a range of livelihood
needs5. Forest Management Plans (FMPs) do not exist for the vast majority of the forests under community tenure. Such
forests are thus under no systematic management or supervision by the FS, leaving them extremely vulnerable to illegal
logging and clearance. Where FMPs do exist, they are typically poorly implemented due to lack of technical and financial
capacity on the part of local actors. Several issues explain the lack of development of the forest sector in the local
economy: (i) lack of value-added processing by locals, who sell most timber on the stump; (ii) uncompetitive and non-
transparent bidding processes, resulting in sub-market returns for locals; (iii) low technical and entrepreneurial capacity;
(iv) weak market penetration by communities and lack of significant market demand for wood from community forests,
(v) weak institutional capacities at the municipal and departmental levels to support, enforce and monitor forest
management, and; (v) low investment rates. These are the barriers this project will work to overcome.
6. The long-term solution to dealing with these threats is to stimulate “green” market forces that reward communities
for applying BD management and conservation in their forest production systems. The project assumption is that
community access to preferred markets for green-certified forest products will not only provide communities with the
incentive to maintain land under closed forest cover – rather than converting it for agriculture or pasture – but will also
make investments in BD management both financially feasible and attractive. Flowing out of this assumption, the
project’s operational strategy is to (i) enable community forestry operations to achieve and maintain BD-friendly Forest
Stewardship Council (FSC) certification; (ii) grow the already robust market demand for FSC certified tropical
hardwoods, and; (iii) improve community forestry operational competitiveness for increased market access, which will
result in increased incomes, thus compensating local community enterprises for the costs incurred by implementing SFM
and BD conservation. At the same time, the project will work to build institutional capacity at multiple scales to support,
enforce and monitor SFM and BD management practices.
7. Conservation measures will be integrated into production systems by implementing management practices in
accordance with FSC Principles & Criteria, thereby achieving and maintaining certification. FSC is unique among
certification standards in its focus on BD. Five of the 10 FSC principles and 23 associated criteria specifically address BD
conservation and monitoring, namely: Benefits from the Forest, Environmental Impact, Management Plan, Monitoring &
Assessment, and Maintenance of High Conservation Value Forests (HCVF). FSC is the only system that prohibits forest
conversion and that requires higher standards for management of HCVFs. FSC standards include mandatory ecological
set-asides and biological corridors, protection plans for endangered species to guard against possible adverse inter-specific
impacts from harvests, and practices to mimic natural forest stand dynamics in terms of species/age classes. The project
will work with communities and other stakeholders to ensure compliance with such BD-friendly management practices, as
well as measures aimed at reducing impacts on watercourses and soils as a result of felling, skidding and landing
operations, ensuring in situ maintenance of genetic stock (e.g. by conserving mature trees, nesting areas, and key habitats),
managing fire, and implementing specific measures to control the illegal harvesting and trade of flora and fauna. As a
result of such management improvements, overall forest losses due to fire and land clearing will be significantly reduced
in certified community forest operations 6, while project-enabled activities will ensure that the increased profits from sales
5
TCOs are made up of variable numbers of communities. Two other administrative entities – Asociaciones Sociales del Lugar (ASLs) and municipalities – also contain
forests under community tenure and management.
6
Several studies from Mexico and Central America have shown FSC-certified community forestry to result in better maintenance of forest cover than non-certified
areas, including PAs. See, for example: (i) Butterfield, R. and D. Hughell. 2008. Impact of FSC certification on deforestation and the incidence of wildfires in the Maya

PIF Template, August 30, 2007 4

of certified products result in tangible benefits to BD. To measure impacts, the project will design and implement a
scientifically-sound monitoring and research system to evaluate the variable effects on forest cover and BD in different
types/levels of forest management in the AMC, including plots to be established in areas with (i) no forest management,
(ii) state-approved FMPs, and (iii) FSC-certified FMPs.
8. Bolivia counts the second highest area coverage of FSC-certified forestry in the tropics, with nearly 2.3 million ha
certified as of 31 December 2008. The vast bulk of these certified forests are operated by private sector concessionaires,
which have greater capacity than communities to both make the investments required to achieve certification and
capitalize on the preferred market access the FSC label can garner, particularly in export markets where the sector is
already significantly active7. As a result of certification, forest management practices have been improved in private
concessions and, in some cases, social conflicts between timber companies and local communities have been reduced,
while decreasing forestry oversight costs for the forestry administration. Despite such achievements, very few community
forestry enterprises and indigenous groups have been able to benefit from certification. At present, only one TCO holds an
FSC certificate in Bolivia. (Two other communities obtained the FSC label in recent years, but then dropped it because of
insufficient negotiation skills and trade capacities, as well as lack of access to markets, highlighting the key strategic foci
of the present project.) Nevertheless, community forestry does represent an important potential vehicle for the expansion
of SFM and BD conservation, due to the existence of large, legally-recognized indigenous forest holdings 8 that are rich in
BD, particularly in the AMC.
9. Several key barriers obstruct reaching the desired state wherein SFM results in tangible BD benefits, while market
forces demanding certified products make investments in these processes financially attractive for forest producers ,
namely:
a. Institutional barriers: There is a general lack of institutional capacity to assist sound forest management,
certification and BD practices among local communities. Lack of coordination between different forestry agencies
creates inefficiencies and confuses efforts to control and support sustainable forestry practices. Particularly in the
AMC, there is a strong need for a coordinated approach that plans and monitors at a landscape scale to ensure BD
conservation. Where institutional support is provided to managers, it lacks significant emphasis on ecological
management practices and controls that seek to conserve BD. This reflects a lack of technical capacity among
extension foresters in BD issue identification, management interventions and monitoring. Additionally, little capacity
exists at any governmental level to assist communities in pursuing and achieving certification, building competitive
and market-oriented enterprises, and accessing markets. Furthermore, government procurement of wood products
does not explicitly require certified or verified material be used – much less specifying preference for wood from
community forests – a policy step that could have a significant positive impact generating demand for “good wood.”
b. Forest management barriers: At the forest management unit level, local stakeholders lack the technical skills to
implement and monitor BD management practices in forestry; even in places where certification has been achieved,
BD management is often identified as a key area for improvement. On the ground, few measures are taken during
forest planning and harvesting operations to actively identify important BD values (e.g. a canopy tree whose mast is
an important food source for wildlife), then implement specific actions or treatments to conserve or enhance those
values (e.g. directional felling to avoid damage to the residual stand or retention of important individuals), and finally
monitor the effects of such treatments over the long term. Technical tools adapted to local conditions and the skills
required to apply those tools are vital to ensuring that SFM and certification actually result in real benefits for BD on
the ground. Local application of BD practices is also critical to ensuring the continued tailoring of certification to
specific ecological conditions, enabling the achievement of locally-appropriate but globally-significant BD
conservation targets through the uptake of market instruments. Moreover, most communities lack the organizational
and technical capacity to plan, operationalize and monitor the kind of BD-friendly forest production systems that are
necessary to become certified and maintain the FSC certificate over time.

Biosphere Reserve. Rainforest Alliance: New York. (ii) Bray, D.B., Durán, E., Ramos, V.H., Mas, J.F., Velázquez, A., McNab, R.B., Barry, D. and J. Radachowsky. In
press. Tropical deforestation, community forests and protected areas in the Maya Forest. Ecology and Society. (iii) Duran, E., J. F. Mas, and A. Velazquez. Land
use/cover change in community-based forest management regions and protected areas in Mexico. In: The community forests of Mexico: Managing for sustainable
landscapes, ed. D. B. Bray, L. Merino-Perez, and D. Barry, 215-238. Austin: University of Texas Press.
7
The forest sector represents only 3% of Bolivia’s GDP but accounts for 11% of foreign exports; about 50% of forest production is export-oriented. In 2002 forest
product exports were valued at USD 68 million. A total of 45 species were exported, mainly to the US (42.6 million) and UK (15.6 million). This heavy dependence on
exports to Northern markets has contributed to the growth of certification in Bolivia.
8
The new constitution, approved in January 2009, states that “indigenous and farmer communities living in forest areas are the owners of the resources and responsible
for their sound use.” As such, community rights in forestry planning, management and benefit sharing have been given new legal affirmation.

PIF Template, August 30, 2007 5

 c. Market and financial barriers: The capacity of communities to participate in the expanding market for certified
sustainable products is limited. Community operations are generally not competitive in the marketplace, lacking
business or marketing plans, as well as access to information about market demand. Forest transformation equipment
is old, inefficient, poorly maintained and generally under-utilized. Producers lack consistent quality standards as well
as sufficient administrative and business management capacities to meet market demands. Though robust and
growing, still greater market demand for certified wood from community forests must be generated, including in
national markets, and linkages forged between producers and buyers. At the same time, lack of liquidity and adequate
financing make it difficult for communities to comply with BD-friendly SFM and certification. Poor access to
financing also prevents producers from investing in better technologies and product diversification, both of which are
critical to increasing revenues for investment in BD management. Community management systems must be
strengthened to generate greater confidence in the forestry sector and stimulate greater investments. New financial
mechanisms must be engineered between buyers of certified products and communities, as well as between
communities and financial institutions, in order to increase investment capital flows and support the development of
community enterprises.
10. The project responds directly to these barriers, and will implement a set of strategic activities in line with the three
components presented in the Project Framework: 1) Institutional support mechanisms are built to assist BD conservation
through certified community forest management; 2) Community capacity is strengthened to achieve and maintain
certification, and to manage forests in a sustainable and BD-friendly manner, and; 3) Economic incentives are in place to
attract and keep community forestry operations committed to sustainable forestry and BD management practices . While
the project will not completely overcome all of the threats currently facing BD within community forests in Bolivia, it is
expected to change the development trajectory and management dynamics in a BD-critical forest area by generating
economic incentives BD conservation while improving community capacity to participate in a strengthened market for
products sourced from BD-friendly forests. Moreover, the project will complement ongoing government and donor
initiatives focused on enhancing the forestry sector’s social, environmental and economic sustainability.
11. Technical assistance supported through GEF funding will work with communities managing forests where BD value
is high and where there is a strategic importance in terms of habitat connectivity, particularly in areas classified as a high
priority for the conservation of endemic and globally important BD (see annex A, map 4). The AMC is the Bolivian part
of the Vilcabamba-Amboro Conservation Corridor, identified by Conservation International as the priority region of the
Tropical Andes Hotspot. Two of WWF’s ecoregions occur here: Southwest Amazon Moist Forests and Central Andean
Yungas. Covering 13.9 million ha, the AMC amounts to approximately 12% of Bolivia’s land area, running south-
southeast from La Paz Department in the northwest of the country, through Beni and Cochabamba, and down to Santa
Cruz, encompassing a total of 77 municipalities. covers some 12% of Bolivian territory and encompasses 77
municipalities. Because of its tremendous altitudinal range, the AMC harbors an exceptional variety of natural ecosystems
and, as a result, a remarkable biological diversity, including 63% of the bird species present in Bolivia (17 of which are
identified by IUCN as threatened), 37 globally-threatened amphibian species, and 5 threatened mammal species. A wide
range of tropical ecosystems are represented, such as montane forests, moist evergreen cloud forests, semi-humid
mountain forests and semi-humid Puna (herbaceous highland vegetation). The community forests that the project will
work with in the Ayopaya region are strategically important for their protection of watershed functions, as well as
providing habitat connectivity between PAs. Global environmental benefits will be achieved by placing emphasis on the
creation of necessary conditions for reducing the threats to BD in globally-significant habitats. Specific communities
within this area will be finalized during the PPG phase, taking into account the potential for replication of the project in
other areas with comparable conditions and BD threats.
B. DESCRIBE THE CONSISTENCY OF THE PROJECT WITH NATIONAL/REGIONAL PRIORITIES/PLANS:
12. This project will directly support Bolivia’s national priorities, as presented in the National Development Plan which
prioritizes the “use of the country’s BD potential” as a vehicle “for improving the standards of living of the Bolivian
population, especially the indigenous communities.” Specifically the Plan recognizes “the increasing worldwide demand
for certified products with environmental, social and economic criteria,” and stresses that “the worldwide leadership of
Bolivia in certified forest management is an advantage that must be consolidated and extended.” 9 The project is also fully
aligned with the goals and specific objectives of the National Plan for Integrated Forest Management, which includes the
following specific objectives of particular relevance: (i) to promote a system of incentives for stimulating integrated forest
management initiatives which enhance the contribution of forest resources to the well-being of the population, mainly the

9
Plan Nacional de Desarrollo, http://www.planificacion.gov.bo/BANNER/PARA%20PAG%20WEB/pdf/5-3-4.pdf

PIF Template, August 30, 2007 6

poorest sectors, promotes mechanisms to share benefits with all the actors and leads to greater economic development; (ii)
to encourage actions that support the conservation, restoration, and recovery of the forests in order to maintain the
delivery of local and global goods and environmental services, and; (iii) to enhance and strengthen public entities,
institutions, and civil society, and consolidate an innovative system that enables the implementation of new approaches to
forest management and guarantees its sustainability 10.
C. DESCRIBE THE CONSISTENCY OF THE PROJECT WITH GEF STRATEGIES AND STRATEGIC PROGRAMS:
13. This project aims to generate a favorable national context and a system of environmental governance for the
conservation of BD in forest areas outside PAs, as well as to enhance sustainable forest management and forest market
development through: (i) capacity building at the local level; (ii) promotion of forest certification; and (iii) stakeholder
coordination. This is consistent with the goals of the Sustainable Forest Management program of the GEF. The strategic
approach of this project corresponds with Strategic Objective #2 of the Biodiversity Focal Area, and more specifically
with Strategic Program #5, focused on promoting markets for goods and services linked with BD conservation. This
project is fully in line with this Strategic Program by promoting systems of voluntary certification, facilitating access to
markets, and accessing financial mechanisms to induce market-based solutions in order to manage threats to biodiversity.
It also clearly responds to Strategic Program #4, “empower legal and normative framework,” because of its strong focus
on institutional strengthening and capacity building.
D. JUSTIFY THE TYPE OF FINANCING SUPPORT PROVIDED WITH THE GEF RESOURCES:
14. In the absence of a GEF intervention, community forests in the AMC will continue to be deforested and degraded
due to lack of management planning and sustainable operations, resulting in significant BD losses and a further
fragmentation of the forest landscape. The project will use market forces, public-private partnerships and investment, and
supply chain solutions that can be self-managed and replicated by communities beyond its life span. Public and private co-
financing mechanisms and cash flow from operations will cover the bulk of costs, including certification services and
capital investment needs. GEF funds will be used predominately for higher-level interventions in the public sector,
strategic engagement of the private sector and targeted technical assistance, analyses, training and outreach events, so as
to enhance the enabling environment for biodiversity conservation in forest management.
E. OUTLINE THE COORDINATION WITH OTHER RELATED INITIATIVES:
15. This project will share information and formalize collaboration mechanisms with national and regional initiatives,
such as: (i) the Inter-American Development Bank project “Bolivia: Conservation and Sustainable use of Biodiversity and
Land in Andean Vertical Ecosystems” to be implemented by the government of Bolivia, with the support of GEF; (ii) the
portfolio of projects on biodiversity managed by UNDP and UNEP; (iii) the South American Chaco regional project,
including its component to improve certification for the management of tropical forests; (iv) the Forest Department’s pilot
program on Integrated Forest Management in Northern Amazonia; and (v) other projects supported by bilateral and
multilateral agencies, in particular Sida, Danida and Dutch Cooperation, who are all very active in promoting SFM in
Bolivia. This project will also formulate strategic partnerships with other programs at the national level, such as the Clean
Development Mechanism of the National Program on Climatic Change, the National Program of Bio-trade, the National
Program of Watershed Management, and the recently-signed UN-REDD program funded through a grant received by the
Norwegian Government (Bolivia is one of the 9 countries that will benefit from this initiative). In addition, it will
capitalize on the experiences and knowledge generated by the BOLFOR project and institutions such as CFV,
CADEFOR, and IBIF.
16. Opportunities for collaboration with field projects, as well as wider donor- and government-funded programs, will be
carefully analyzed during the PPG stage. Particular attention will be paid to FONABOSQUE – a government fund
established to support forest activities – which was created by the Forest Law in 1996 and activated in June 2008. The
operational mechanisms of this fund have not yet been fully determined, however it is clear that its US$5 million will be
dedicated to promoting SFM projects. Moreover, Swedish Cooperation and the European Union will prepare their
strategic plans for 2009-2013 during the PPG phase. Important financial resources will be invested in environmental and
natural resources management, including watershed management, and special attention will be dedicated to identifying
efficient collaborative mechanisms. Other related projects shall be taken into consideration during PPG implementation,
such as the REDD initiative being promoted by the Dutch Government, which includes a strong component of community
forestry, the initiatives of the Amazon Cooperation Treaty, and the Brazilian program “Amazonia without Fires.”

10
Plan Nacional para el Manejo Integral del Bosque, Ministerio de Desarrollo Rural, Agropecuario y Medio-Ambiente, Viceministerio de Biodiversidad, Recursos
Forestales y Medio Ambiente, Bolivia, Mayo del 2008.

PIF Template, August 30, 2007 7

F. DISCUSS THE VALUE-ADDED OF GEF INVOLVEMENT IN THE PROJECT DEMONSTRATED THROUGH
INCREMENTAL REASONING:

17. In the absence of a GEF intervention, community forests in the AMC will continue to be deforested and degraded
due to lack of management planning and sustainable operations, resulting in significant BD losses and a further
fragmentation of the forest landscape. The premise of this project – based on demonstrated results in other countries in the
region – is that this baseline scenario can be avoided by unleashing green market-based forces through a series of targeted
barrier removal activities. The alternative approach proposed herein would generate significant global benefits in BD-
important forest in the AMC, creating enabling conditions and demonstrating ways to reap a sustainable flow of economic
and environmental benefits from the production of certified forest products. The systemic, institutional capacities needed
to replicate good practices on a large scale will be developed in the process. Conformity to a third-party standard such as
the FSC, which has specific BD criteria, provides the most expedient means to conserve biodiversity over the large area
covered by the community forest estates. The strategy is thus to change the relative price of conservation compatible land
use (i.e. FSC certified BD-friendly forest resource harvests) vis-à-vis contra-conservation land uses (i.e. conversion to
agriculture or pasture). GEF support to FSC certification of community forest is incremental and fundamental to BD
conservation because certification: (i) reduces the likelihood of land conversion as it increases the economic viability of
the forests through improved yield, diversified income, access to markets and on occasion premiums; (ii) promotes better
governance standards which increase group management, reducing individual propensity to sell or permit private land
conversion; (iii) creates increased transparency in forest management, reducing illegal logging; (iv) enforces standards on
forest fire prevention and control, reducing deforestation and degradation, and; (v) requires specific interventions
fundamental to BD conservation, including mimicking natural forest stand dynamics, creating set-a-sides, and taking
action to protected species of concern. The end result of the project will be conservation of community forests in the AMC
that are critical for BD through SFM and BD management practices enabled by market-based instruments.
G. Indicate risks, including climate change risks, that might prevent the project objective(s) from being
achieved, and if possible including risk measures that will be taken:
Risks Level Measures
Institutional instability, High The project, alone, will not eliminate institutional instability and regional tensions. Nevertheless, by
mobility in public focusing most of its activities at the local level, which is in charge of the direct management of forest
positions, regional tensions resources – and primarily responsible for most of the threats to BD – the project will strengthen the
capacities of local communities and their partners at the local level to manage, organize, trade and
control forest resources in a sustainable manner. This, in turn, will contribute to improving local-level
stability and environmental governance by shifting from short-term exploitation to long-term
management of forest resources. The generation of replicable models will catalyze similar actions on
a regional and national scale. Due to institutional instability and political conflict, the project is high
risk. However it has great potential as a high-reward project, particularly given the large area of
Bolivia’s forest managed by communities and the chances for replication.
Local populations resist High A strong process of land use change is underway in the AMC, as locals convert forest for other uses
national policy and forest in order to achieve livelihood benefits. The project will reduce the prevalence of this trend by
laws demonstrating to all players along the supply chain the broad socio-economic benefits resulting from
certified SFM and BD conservation, using a market-driven approach, improving competitiveness and
investment and creating strong market incentives.
Climate change Medium Climate scenarios for Bolivia predict modifications in rainfall patterns that will likely exacerbate the
risk of droughts and flooding in both the highlands and lowlands. Certified SFM will result in
healthier, more productive forests that are more resilient to climate fluctuations by maintaining a
higher level of age-class diversity and BD in general, regeneration vigor, intact forest cover to protect
soils and hydrological functions, and high-value ecological set-sides protected from human activities.
Weak management Medium Institutional capacity to manage the tasks at hand will be taken into account during the PPG phase
capacity while working to identify the specific communities in the AMC the project will partner with. The
project will strengthen the capacities of all actors involved in forest management after a detailed
diagnosis of needs and assessment of potentials.

H. DESCRIBE, IF POSSIBLE, THE EXPECTED COST-EFFECTIVENESS OF THE PROJECT:

18. The present project will capitalize on previous and ongoing forest sector projects in order to optimize cost-
effectiveness. The project will aim to increase and diversify incomes for local actors, recognizing that economic viability
is a key factor in ensuring the long-term sustainability of SFM and BD management. The project’s activities will create
favorable conditions in SFM at multiple scales and multiple partners, allowing for the long-term development of Bolivia’s
community forest areas based on equitable benefit sharing, and rendering them more compatible with BD conservation
through certification. The project will also be cost-effective because it will use market forces, public-private partnerships

PIF Template, August 30, 2007 8

and investment, and supply chain solutions that can be self-managed and replicated by communities beyond its life span.
Public and private co-financing mechanisms and cash flow from operations will cover the bulk of costs, including
certification services and capital investment needs. GEF funds will be used predominately for higher-level interventions in
the public sector, strategic engagement of the private sector and targeted technical assistance, analyses, training and
outreach events, so as to enhance the enabling environment for biodiversity conservation in forest management.
I. JUSTIFY THE COMPARATIVE ADVANTAGE OF GEF AGENCY:
19. The proposed project will be implemented with the support of UNDP, in its capacity as a GEF implementing agency
in the area of biodiversity, and because of its comparative advantages as described in the document GEF/C.28/15. UNDP
has established a solid cooperation relationship with the government of Bolivia on development issues such as
environmental governance. The UNDP program in Bolivia emphasizes capacity building for environmental management
and is in charge of the implementation of three GEF projects related to BD conservation. UNDP supports interventions
dedicated to integrating BD issues into production processes across diverse markets (e.g. forestry, agriculture and
businesses, such as the production of coffee and flowers), specifically implements GEF-supported SFM initiatives in other
country such as Indonesia, Tanzania, Mexico. Such reach will help facilitate learning across sectors and geographies.
PART III: APPROVAL/ENDORSEMENT BY GEF OPERATIONAL FOCAL POINT(S) AND GEF AGENCY
A. RECORD OF ENDORSEMENT OF GEF OPERATIONAL FOCAL POINT (S) ON BEHALF OF THE GOVERNMENT(S): (Please attach the country
endorsement letter(s) or regional endorsement letter(s) with this template).
NAME POSITION MINISTRY DATE (Month, day,
year)
Lic. John D.Vargas Vega Vice-Minister for Land and Land and November 26, 2008
Environmental Planning Environmental
Planning

B. GEF Agency(ies) Certification

This request has been prepared in accordance with GEF policies and procedures and meets the GEF criteria for
project identification and preparation.

Agency Date Project Contact

Coordinator, Signature (Month, day, Person Telephone Email Address
Agency name year)
Yannick Glemarec April 8, 2009 Lyes Ferroukhi +507 lyes.ferroukhi@undp.org
Executive Regional 3024576
Coordinator, Technical
UNDP/GEF Advisor, BD-
LD,
UNDP/GEF

PIF Template, August 30, 2007 9

 Annex A. Maps of BD, Endemism, Forest Areas, and Priority Areas for BD Conservation in Bolivia.

PIF Template, August 30, 2007 10