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ACTIVITIES IMPLEMENTED JOINTLY (AIJ)
 
USIJI Uniform Reporting Document:
Activities Implemented Jointly Under the Pilot Phase

List of Projects

A. Description of the AIJ project

1. Title of project: Commercial Reforestation in the Chiriquí Province

2. Host country: Panama

3. Brief project description:

This project will reforest 500 hectares (ha) of currently degraded lands in the Chiriquí Province in the western region of Panama. The project area will be planted with teak ( Tectona grandis ), established as a certified teak plantation, and managed in a sustainable manner as a source of high quality hardwood. The project is estimated to result in net sequestration of approximately 16,000 tonnes (t) of carbon through tree growth and production of durable wood products over a 25-year lifetime.

4. Participants:

Name of Organization or Individual

Country

CAOBO, Inc.

Panama

Fundación NATURA

Panama

Center for Clean Air Policy

U.S.A.

Item

 

Organization

Name of organization (original language)

or

Name of individual if unaffiliated with any organization

 

Name of organization (English)

CAOBO, Inc.

Acronym (original language)

 

Acronym (English)

 

Department

 

Function(s) within the AIJ project activities

Project development, project implementation, financing

Street

P.O. Box 6-7685

City

El Dorado

State

 

Post code

 

Country

Republica de Panamá

Telephone

507-227-4930

Fax

507-263-2603

E-mail

 

World Wide Web-URL address

 

Administrative Officer Responsible for the Project

Surname

García

First name, middle name

Rolando

Job title

President

Direct telephone

507-227-4930

Direct fax

507-263-2603

Direct e-mail

rgarcia@NS1.pananet.com

Contact Person for AIJ Activities (if different from the Administrative Officer)

Surname

Suescum

First name, middle name

Guillermo

Job title

Vice President

Direct telephone

212-684-4064

Direct fax

212-684-4064

Direct e-mail

 

Item

 

Organization

Name of organization (original language)

or

Name of individual if unaffiliated with any organization

Fundación NATURA

Name of organization (English)

The Foundation for the Conservation of Nature

Acronym (original language)

 

Acronym (English)

 

Department

 

Function(s) within the AIJ project activities

Technical assistance

Street

Apartado 2190

City

Panama 1

State

 

Post code

 

Country

Republica de Panamá

Telephone

 

Fax

 

E-mail

 

World Wide Web-URL address

 

Administrative Officer Responsible for the Project

Surname

Tarte

First name, middle name

Rodrigo

Job title

Director

Direct telephone

507-228-1935, 507-228-1936

Direct fax

507-228-1934

Direct e-mail

naturart@panama.phoenix.net

Contact Person for AIJ Activities (if different from the Administrative Officer)

Surname

 

First name, middle name

 

Job title

 

Direct telephone

 

Direct fax

 

Direct e-mail

 

Item

 

Organization

Name of organization (original language)

or

Name of individual if unaffiliated with any organization

Center for Clean Air Policy

Name of organization (English)

(Same as above)

Acronym (original language)

CCAP

Acronym (English)

(Same as above)

Department

 

Function(s) within the AIJ project activities

Project development

Street

750 First St., NE #1140

City

Washington

State

District of Columbia

Post code

20002

Country

U.S.A.

Telephone

202-408-9260

Fax

202-408-8896

E-mail

general@ccap.org

World Wide Web-URL address

 

Administrative Officer Responsible for the Project

Surname

Helme

First name, middle name

Edward A.

Job title

Executive Director

Direct telephone

202-408-9260

Direct fax

202-408-9260

Direct e-mail

nhelme@ccap.org

Contact Persons for AIJ Activities (if different from the Administrative Officer)

Surname

Koenick

First name, middle name

Mary Bittle

Job title

Program Coordinator

Direct telephone

202-408-9260 ext. 202

Direct fax

202-408-8896

Direct e-mail

mbkoenick@ccap.org

5. Description of AIJ project activities

Item

 

Type of Project

Sector(s)

Land-use change and forestry

Primary activity(ies)

Reforestation

Project Location

Country

Republic of Panama

Exact location (city, state, region)

Chiriquí Province

Key Dates and Current Stage of Project

Project starting date (month/year)

January 1998

Project ending date (month/year)

December 2022

Project lifetime (years)

25

Current stage of project

Mutually agreed

General Project Description and Technical Data


The project will reforest 500 ha of currently degraded lands in the Chiriquí Province in the western region of Panama. The project area will be planted with teak ( Tectona grandis ) at a density of 1,235 trees per ha. After site preparation and planting, the land will be established and maintained as a certified teak plantation and managed in a sustainable manner as a source of high quality hardwood. The site will be thinned approximately every six years until the project lifetime expires, at which time the trees will be harvested and processed. The processed wood will be sold commercially to wholesalers and end-use customers for furniture and case goods production. The non-commercial and slash debris will be sold to local people for firewood, thus replacing the current supply of firewood, which is primarily harvested in a non-sustainable way. It is expected that the plantation will be replanted at the end of the 25 year harvest cycle.

Estimated GHG benefits of the project (15,720 t C) are based on the estimated amount of woody biomass carbon that is harvested and stored indefinitely in durable wood products.

6. Cost

(a) Explanation of methodology for calculating cost data

Methodology for Calculating Cost Data


The capital cost to purchase the land, and establish, maintain, and operate the plantation for the first seven years is US $3,700,000. After year seven, the plantation is expected to be self-sufficient through the sale of harvested wood.

(b) Cost data-Project development

This information is not yet available.

(c) Cost data-Project implementation

Image

Annual implementation cost data is not yet available.

7. Monitoring and verification of AIJ project activities and results

Item

 

Party(ies) that will be monitoring project activities

CAOBO

Party(ies) that will be externally verifying project results

This information is not yet available.

Date when the monitoring plan became (or will become) operational (month/year)

This information is not yet available.

Types of data that will be collected

Tree characteristics including height and diameter; soil characteristics including carbon and nitrogen content

Description of Monitoring and Verification Activities and Schedule for Implementation


Annual inventories of the characteristics of trees on the plantation will be conducted on a regular basis. Representative samples will be used to estimate tree characteristics for the entire population. Information from the inventories will be part of a database that will include the height and diameter of every tree on the plantation. These data can be used to calculate the volume of wood on the plantation, the major determining factor in calculating the amount of GHG sequestered.

In addition, representative soil samples will periodically be taken to monitor soil conditions. The samples will be analyzed for carbon and nitrogen contents.

CAOBO and the Center for Clean Air Policy agree to allow external verification by USIJI or other interested parties, so long as those parties are approved by the aforementioned participants.

B. Governmental approval

Item

 

Please check one of the following.

This report is a first report.

or

This report is an intermediate report.

or

This report is a final report.

Please check one of the following:

This report is a joint report. Letter(s) of approval of this report from the designated national authority of the other Party(ies) involved in the activity is(are) attached in Section J, Annex.

or

This report is a separate report.

Additional comments (if any):

 

C. Compatibility with, and supportiveness of, national economic development and socioeconomic and environmental priorities and strategies

Compatibility with Economic Development and Socioeconomic and Environmental Priorities


The project will (1) alleviate pressure on rainforests by providing an alternative source of fuelwood and (2) create jobs outside of traditional agriculture, thereby complimenting the Panamanian government's efforts to improve the economy. In addition, the project will assist the government of Panama in promoting Reforestation Law No. 24, which provides incentives to reforest previously deforested and degraded lands in a sustainable manner.

Finally, Panama will be able to export teak wood to countries that have depleted their indigenous supply and are now importers, which will generate revenue for the economy.

D. Environmental, social/cultural, and economic impacts of the AIJ project

Non-Greenhouse-Gas Environmental Impacts of the Project


If the project is successful, it may lead to the establishment of additional sustainably-managed plantations, and potentially relieve pressure on existing forests from slash and burn agriculture and fuelwood harvest. Also, the plantation will provide habitat for animals, most likely birds. Finally, the project will help prevent soil erosion in a country where a significant percentage of soil is degraded as a result of misuse.

Social/Cultural Impacts of the Project


The project will demonstrate that reforestation and sustainable development can effectively change traditional land-use practices by providing alternatives to semi-nomadic farming.

Economic Impacts of the Project


The project will create 30 permanent and 100 temporary jobs in an area without many job opportunities. Employees will receive training and education necessary to manage the plantation in an efficient and sustainable manner. The project also will generate income for the company to be passed on to investors as dividends.

E. Greenhouse gas impacts of the AIJ project

1. Scenario description

Item

 

Site Designation

Site number (order of presentation in this report)

1 of 1

Site name/designation

Chiriquí Province

Project sector

Land-use change and forestry

Reference Scenario

Primary activity(ies)

Cattle-grazing

Has the reference scenario changed since the last report? (If yes, explain any changes below.)

Yes

No

This is the first project report.

Description:

The site is located in the Chiriquí Province of the western region of the Republic of Panama. The 500 ha site is adjacent to the PanAmerican Highway, close to the border with Costa Rica, and is bifurcated by an important local river. The site was previously deforested and converted to pasture for cattle-grazing. It is now semi-abandoned, low-yield pasture, with a mix of tall grasses and shrubs. The site has some trees, mostly along the borders of each pasture and along the river banks. Without the project, the site is expected to remain in this state indefinitely.

Predicted Project Scenario

Primary activity(ies)

Reforestation

Description:

The project will reforest the 500 ha site with 1,235 teak trees per ha. After site preparation and planting, the land will be established and maintained as a certified teak plantation and managed in a sustainable manner as a source of high quality hardwood. The site will be thinned approximately every six years until the project lifetime expires, at which time the trees will be harvested and processed. The processed wood will be sold commercially to wholesalers and end-use customers for furniture and case goods production. The non-commercial and slash debris will be sold to the local people for firewood, thus replacing the current supply of firewood, which is primarily harvested in a non-sustainable way.

It is anticipated that the plantation will be replanted after the final harvest.

Actual Project

Primary activity(ies)

This information is not yet available.

Description:

This information is not yet available.

2. GHG emission/sequestration calculation methodology

GHG Emission/Sequestration Calculation Methodology

Site number

1 of 1

Project sector

Land-use change and forestry

Description of Calculation Methodology for the Reference Scenario


Carbon stocks are assumed to remain constant in the reference scenario. Thus, annual net emissions are anticipated to be zero throughout the project lifetime.

Description of Calculation Methodology for the Project Scenario


The total estimated net sequestration achieved by the teak plantation over its 25 year lifetime is 15,720 t C, which is achieved through the growth and subsequent long-term carbon storage in durable forestry products such as furniture, construction material, and boats.

Description of Calculation Methodology for the Actual Project


This information is not yet available.

3. GHG emission/sequestration data

(a) Reporting of GHG emissions/sequestration

Annual estimates are not yet available. Cumulative GHG benefits of the project are anticipated to be 57,640 t CO2.

(b) Additional information on GHG emissions/sequestration

Indirect or Secondary GHG Impacts (Positive and Negative)


The project will provide an alternative to traditional and illegal logging practices and slash and burn agriculture, resulting in reduced GHG emissions from these activities.

Carbon dioxide emissions will result from the decomposition of grasses and shrubs that have been removed to prepare the site for the plantation. However, the trees currently on the site (which store the bulk of the carbon) have not been removed.

Processing the wood at local sawmills, which are diesel-fueled, will result in CO2 emissions. However, prior to the second harvest, CAOBO will consider biomass-fired equipment to burn the wastewood resulting from its operations. In this way, a closed carbon cycle would be created, thus preventing further CO2 emissions.

Once the teak is harvested, CO2 emissions will result from the transportation of the processed wood to the end-user. These emissions are not expected to be significant because the wood is only harvested every six years and will be transported to the end-user via ship.

Factors That Could Cause the Future Loss or Reversal of GHG Benefits


The project is designed such that, after 25 years, the 500 hectare site will be harvested and the wood sold for use in long-term furniture applications. The carbon sequestered could be lost, however, if the wood is processed in a manner that does not ensure the longevity of carbon storage.

Damage to or loss of the trees before the final harvest can affect the projected GHG benefits of the project. Factors that could have such an effect include fire, insects, disease, and flooding.

Strategy for Reducing the Risk of Future Loss or Reversal of GHG Benefits


The site will be managed in such a way as to prevent catastrophic loss of trees and their associated GHG benefits. An insurance policy has been purchased to protect against such risks. In the event of catastrophic loss, any money recovered through the insurance policy will be used to replant trees.

Although teak trees are resistant to fire after the first three years, firebreaks and gallery forests will be maintained throughout the plantation to further reduce the risk. In Panama, there are no known natural enemies of the teak tree; regardless, gallery forests will serve as physical barriers to disease and provide effective biological control of insects by providing miniature biospheres for their predators. Finally, the entire plantation is enclosed in a fence that will provide additional security against outside intrusion.

F. Funding of the AIJ project

1. Identification of funding sources

(a) Funding sources for project development

This information is not yet available.

(b) Funding sources for project implementation

This information is not yet available.

2. Assessment of additional funding needs

Current or Planned Activities to Obtain Additional Funding


This information is not yet available.

G. Contribution to capacity building and technology transfer

Contribution to Capacity Building and Technology Transfer


The project will employ advanced techniques in nursery management and planting. In addition, the developer is considering the use of "friendly" bacteria and fungi to reduce the need for artificial fertilizers. Results will be passed on to INRENARE and NATURA. In addition, technical aspects of calculating the GHG benefits of the project will be shared with INRENARE and NATURA.

The project may serve as a model for future efforts to reforest Panama's degraded lands. CAOBO will work closely with Panama's JI office to share data and assist in the development of new projects. This would help to change traditional, non-sustainable land-use practices and alleviate pressure on remaining forests in Panama.

Finally, this project will serve as an example of sustainable management of forests, which will assist the Panamanian government in promoting Reforestation Law No. 24.

H. Recent developments, technical difficulties, and obstacles encountered

Recent Project Developments


This information is not yet available.

Technical Difficulties and Other Obstacles Encountered


This information is not yet available.

I. Additional information

Additional Information


None.

J. Annex

1. Host country acceptance of the AIJ project

Country/Project Title

Name, Title, and Government Agency of the Designated National Authority

Date of Approval(day/month/year)

Panama/Commercial Reforestation in the Chiriquí Province

Licda. Mirei E. Endara S., Director-General, National Institute of Renewable Natural Resources

29 November 1996

2. Letters of approval of this AIJ project report

See attached concurrence form.