CC:INFO/AIJ: REPORT

USIJI Uniform Reporting Document:

Activities Implemented Jointly Under the Pilot Phase

A. Description of the AIJ project
1. Title of project: Bilsa Biological Reserve

2. Host country: Ecuador

3. Brief project description:
- The Bilsa Biological Reserve Project in Ecuador will preserve 2,000 hectares (ha) of tropical rainforest through the purchase and incorporation of these lands into the newly created Bilsa Biological Reserve in the Montañas de Mache in the Esmeraldas province of Ecuador. By preventing the conversion of these lands to marginal cropland and cattle pasture, the project will avoid emissions of carbon dioxide (CO₂).
4. Participants:

Name of Organization or Individual	Country
Fundación Jatun Sacha	Ecuador
World Parks Endowment, Inc.	U.S.A.

Item
Organization
Name of organization (original language) or Name of individual if unaffiliated with any organization	Fundación Jatun Sacha
Name of organization (English)
Acronym (original language)
Acronym (English)
Department
Function(s) within the AIJ project activities	Project development, monitoring
Street	Avenida Rio Coca 1734
City	Quito
State
Post code
Country	Ecuador
Telephone	593-2-250-976
Fax	593-2-253-266
E-mail
World Wide Web-URL address
Administrative Officer Responsible for the Project
Surname	McComb
First name, middle name	Michael
Job title	Vice President
Direct telephone
Direct fax
Direct e-mail
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	World Parks Endowment, Inc.
Name of organization (English)	(same as above)
Acronym (original language)
Acronym (English)
Department
Function(s) within the AIJ project activities
Street	1616 P Street, NW, #200
City	Washington
State	District of Columbia
Post code	20036
Country	U.S.A.
Telephone	202-939-3808
Fax
E-mail	worldparks@juno.com
World Wide Web-URL address
Administrative Officer Responsible for the Project
Surname	Swift
First name, middle name	Byron
Job title	Executive Director
Direct telephone	202-939-3808
Direct fax	202-939-3868
Direct e-mail
Contact Person for AIJ Activities (if different from the Administrative Officer)
Surname
Job title
Direct telephone
Direct fax
Direct e-mail

5. Description of AIJ project activities:

Item
Type of Project
Sector(s)	Land-use change and forestry
Primary activity(ies)	Forest preservation
Project Location
Country	Ecuador
Exact location (city, state, region)	Montañas de Mache, Esmeraldas Province
Key Dates and Current Stage of Project
Project starting date (month/year)	To be determined.
Project ending date (month/year)	To be determined.
Project lifetime (years)	30
Current stage of project	Mutually agreed
General Project Description and Technical Data
The project will preserve 2,000 hectares (ha) of tropical forest in the Montañas de Mache in the Esmeraldas province of northwestern Ecuador. This will be accomplished through land purchase, incorporation into the newly created Bilsa Biological Reserve, and subsequent management by the Fundación Jatun Sacha, in cooperation with the government and other private entities. Esmeraldas province has undergone heavy deforestation, with more than 99% of the lowland wet forest already cleared in the region. This area represents the last significant opportunity to conserve Pacific slope wet forests, as the 12,000 ha of forest remaining at Bilsa constitute the majority of the remaining unprotected forest on the Pacific Slope. Because of the significant biodiversity in the area, this ecosystem has been classified as one of the world’s top three hotspots for immediate conservation action.

6. Cost:
- (a) Explanation of methodology for calculating cost data

Methodology for Calculating Cost Data

Information on the methodology for calculating project development costs is not yet available.

Costs for implementing the project include the cost per hectare (US$125) to purchase the land plus legal and titling costs (12% of purchase cost per hectare). The developer plans to purchase 1,000 acres each year for the first two years of the project, therefore total purchase costs for each of these years is equal to US$140,000 (= 1,000 ha * US$125/ha * 1.12% legal and titling fees). In addition, the project developer plans to establish an endowment in the third year of the project at a cost of US$100,000.

(b) Cost data–Project development
This information is not yet available.

(c) Cost data–Project implementation

Itemized Project Implementation Costs

AIJ Project Implementation Costs: Annual Basis

Please specify: Year 1 = To be determined
	AIJ Project Cost in US$	US$ per Avoided Tonne of CO₂-Equivalent
Year	Projected	Projected
1	140,000.00	0.36
2	140,000.00	0.36
3	100,000.00	0.26
Total	380,000.00	0.32

7. Monitoring and verification of AIJ project activities and results:

Item
Party(ies) that will be monitoring project activities	Jatun Sacha Foundation
Party(ies) that will be externally verifying project results	Corporación de Conservación y Desarrollo or Biosfera (not yet confirmed)
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	Forest quality and extent
Description of Monitoring and Verification Activities and Schedule for Implementation
Monitoring will occur annually and consist of recording any reductions in forest area. Annual reports will describe any such loss and document forest quality using photographic mapping. In addition, carbon sequestered per unit area will be evaluated every ten years. The project developer will allow external verification of greenhouse gas emissions and sequestration by the USIJI Secretariat, its designees, or another agreed upon party. One potential method to verify the continued protection of carbon stocks would be through satellite photography, which can capture any change in the size of the forested area. The project developer hopes to obtain satellite photos documenting the reference scenario, against which future images can be referenced.

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):	None.

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

Jorge Barba González, Executive Director of the Ecuadorian Institute of Forestry, Natural Areas, and Wildlife (INEFAN), states that Ecuador strongly supports the project because it "contributes to national priorities in conservation and sustainable development" and "is consistent with existing Ecuadorian investment laws and regulations." INEFAN has declared the Mache-Chindul Mountains a protected area, indicating the high national priority to conserve this vanishing ecosystem.

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

Non-Greenhouse-Gas Environmental Impacts of the Project

The primary non-GHG environmental benefit of the project is the associated conservation of biological diversity. The project site has been identified as one of the most important in the world for biodiversity and endemism. In addition, the site is the last large unprotected area of coastal wet forest in Ecuador.

Social/Cultural Impacts of the Project

The establishment of the reserve and research station is expected to provide environmental education to the surrounding communities, thereby enhancing their potential contribution to biodiversity conservation.

Economic Impacts of the Project

The project will have positive economic impacts on the local community by providing a more reliable and sustainable basis of livelihood through employment at the reserve and through environmental research and education programs. Jatun Sacha employs several dozen local people at its more established research site in eastern Ecuador.

A tree nursery project will also contribute to reforestation and local production of fruit trees.

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	Bilsa Biological Reserve
Project sector	Land-use change and forestry
Reference Scenario
Primary activity(ies)	Deforestation of tropical forest for timber, agricultural cultivation, and cattle pasture
Has the reference scenario changed since the last report? (If yes, explain any changes below.)	Yes No This is the first project report.
In the reference scenario, the 2,000 ha project area is expected to be deforested within three years. The area is assumed to first undergo logging, followed by clearing and conversion. Based on current practices in the region, three-quarters of the area is expected to be converted to marginal cropland and the remainder to pasture.
Predicted Project Scenario
Primary activity(ies)	Forest preservation
The project is anticipated to preserve the 2,000 ha of tropical forest area through its purchase and incorporation into the newly created Bilsa Reserve. The area will be managed by the Fundación Jatun Sacha, in cooperation with the government and other private entities. Carbon stocks on the project area are expected to remain stable over the project lifetime.
Actual Project
Primary activity(ies)	This information is not yet available.
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
Total carbon emissions in the reference scenario are projected to be equal to the amount of carbon currently stored on the 2,000 ha minus the amount of carbon contained in the harvested timber and the amount of carbon retained in soil and vegetation following deforestation. Initial carbon stocks are estimated to be 284.64 t C/ha, which includes aboveground live vegetation (124.06 t C/ha), aboveground woody debris and litter (10.59 t C/ha), and belowground biomass and soil carbon (150.00 t C/ha). Logging is assumed to remove 21% of the aboveground tree biomass stocks, which are estimated to be 112.06 t C/ha. Thus, logging removes approximately 23.53 t C/ha (= 112.06 t C/ha * 0.21). Based on this estimate, aboveground carbon stocks at the site after logging are estimated to be 111.12 t C/ha (= 124.06 t C/ha + 10.59 t C/ha - 23.53 t C/ha). The wood removed during logging is assumed to be used for durable products, so this carbon is not emitted. The amount of carbon retained by soil and vegetation following deforestation depends on the eventual end use of the land. In the calculations, this accounting is done by applying fractions to above- and belowground carbon stocks that represent the portions that are lost due to clearing. On the lands converted to cropland (75% of the area), 95% of the total aboveground carbon stocks and 43% of the belowground carbon stocks are assumed to be emitted as CO₂. On the lands converted to pasture (25% of the area), 95% of the total aboveground carbon stocks and 15% of the belowground carbon stocks are assumed to be emitted as CO₂. This results in a per hectare carbon loss estimate of 159.56 t C/ha. Therefore, total carbon emitted in the reference scenario is projected to be equal to approximately 319,120 t C (=159.56 t C/ha * 2,000 ha). To convert to CO₂, this estimate is multiplied by the ratio of 44 t CO₂/12 t C, which yields 1,170,107 t CO₂. The project developer has estimated that under the reference scenario, the 2,000 ha site would be deforested over a three year period. To calculate annual reference scenario emissions, emissions are divided by three years, which yields annual emissions of 390,036 t CO₂/yr.
Description of Calculation Methodology for the Project Scenario
Under the project scenario, the 2,000 ha area of forest is expected to be preserved. Since carbon stocks on the project area are expected to remain stable, annual project scenario emissions are estimated to be zero over the lifetime of the project.
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

Projected Net Greenhouse Gas Benefits: All Project Sites (Tonnes, Full Molecular Weight Basis)
Site Number: 1 of 1
Sector(s): Land-use change and forestry
Project Activity(ies): Forest preservation
Year 1 = To be determined
	Reference Scenario Emissions			Project Scenario Emissions			Net GHG Benefits (Reference Scenario - Project Scenario)				Cumulative GHG Benefits (Reference Scenario - Project Scenario)
Year	CO₂	CH₄	NO_x	CO₂	CH₄	NO_x	CO₂	CH₄	NO_x	CO₂- Equivalent	CO₂	CH₄	NO_x	CO₂- Equivalent
1	390,036			0			390,036			390,036	390,036			390,036
2	390,036			0			390,036			390,036	780,072			780,072
3	390,036			0			390,036			390,036	1,170,108			1,170,108
4	0			0			0			0	1,170,108			1,170,108
5	0			0			0			0	1,170,108			1,170,108
6	0			0			0			0	1,170,108			1,170,108
7	0			0			0			0	1,170,108			1,170,108
8	0			0			0			0	1,170,108			1,170,108
9	0			0			0			0	1,170,108			1,170,108
10	0			0			0			0	1,170,108			1,170,108
11	0			0			0			0	1,170,108			1,170,108
12	0			0			0			0	1,170,108			1,170,108
13	0			0			0			0	1,170,108			1,170,108
14	0			0			0			0	1,170,108			1,170,108
15	0			0			0			0	1,170,108			1,170,108
16	0			0			0			0	1,170,108			1,170,108
17	0			0			0			0	1,170,108			1,170,108
18	0			0			0			0	1,170,108			1,170,108
19	0			0			0			0	1,170,108			1,170,108
20	0			0			0			0	1,170,108			1,170,108

Projected Net Greenhouse Gas Benefits: All Project Sites (Continued) (Tonnes, Full Molecular Weight Basis)
	Reference Scenario Emissions			Project Scenario Emissions			Net GHG Benefits (Reference Scenario - Project Scenario)				Cumulative GHG Benefits (Reference Scenario - Project Scenario)
Year	CO₂	CH₄	NO_x	CO₂	CH₄	NO_x	CO₂	CH₄	NO_x	CO₂- Equivalent	CO₂	CH₄	NO_x	CO₂- Equivalent
21	0			0			0			0	1,170,108			1,170,108
22	0			0			0			0	1,170,108			1,170,108
23	0			0			0			0	1,170,108			1,170,108
24	0			0			0			0	1,170,108			1,170,108
25	0			0			0			0	1,170,108			1,170,108
26	0			0			0			0	1,170,108			1,170,108
27	0			0			0			0	1,170,108			1,170,108
28	0			0			0			0	1,170,108			1,170,108
29	0			0			0			0	1,170,108			1,170,108
30	0			0			0			0	1,170,108			1,170,108
Total	1,170,108	0	0	0	0	0	1,170,108	0	0	1,170,108	1,170,108	0	0	1,170,108

(b) Additional information on GHG emissions/sequestration

Indirect or Secondary GHG Impacts (Positive and Negative)

None anticipated.

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

The principal threat that would result in the reversal of project GHG benefits is loss of forest cover in the reserve as a result of encroachment by farming and ranching.

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

A management fund will be established to add to the resources available to the project, though the project developer expects that the area will be self-sustaining through research and education fees and controlled visitation. Fundación Jatun Sacha, which has a good record of protection at its other principal site, will be responsible primarily for preventing deterioration of the preserve.

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

Funding is being sought from foundations, individuals, and electric utilities.

G. Contribution to capacity building and technology transfer

Contribution to Capacity Building and Technology Transfer

This information is not yet available.

H. Recent developments, technical difficulties, and obstacles encountered

Recent Project Developments

The Bilsa Reserve has been successfully fund-raising from non-AIJ sources (i.e., charitable donations). As a result, the reserve size has reached 2,500 ha of the planned 5,000 ha total.

Technical Difficulties and Other Obstacles Encountered

This information is not yet available.

I. Additional information

Additional Information

Current conservation measures at the Bilsa Reserve include forestry, extension, tree nursery development, environmental education, community extension, and ongoing scientific research in collaboration with several universities.

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)
Ecuador/Bilsa Biological Reserve	Ximena Martinez de Perez, Minister, Subsecretary of International Organizations, Ministry of International Relations	13 December 1996

2. Letters of approval of this AIJ project report:
- See attached letter of concurrence.

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