Pre-feasibility study for a CDM-AR project in the Cochabamba ...

From a political side the project is supported on the different political levels, so no
problems are expected here.
• Market risks
As it concerns timber prices a very conservative approach was taken into account, as
described in paragraph 5.2. It is expected timber prices will raise due to timber shortage
in future and higher exploitation costs for timber harvesting from natural forests. Export
of wood products increase over the last years and it is expected this process will
continue, this means that national and timber prices might become closer to the
international timber prices which are much higher.
However a risk will be minimized, a buffer of 20% of the expected CER production will
be maintained, to be sure that project can comply with the compromises signed.
Prefeasibility report Chapare
27