proposals – Addendum

DETAILED PROJECT / PROGRAMME DESCRIPTION
GREEN CLIMATE FUND FUNDING PROPOSAL | PAGE 18 OF 101
C
Furthermore, during its work in the proposed project area from 2004 to 2013, PROFONANPE managed to establish an
endowment fund of USD 5.5 million while implementing activities for over USD 9 million from a debt-for-nature swap
between the Governments of Peru and Germany. Returns from the endowment fund are used to implement activities
with native communities in Datem del Marañón, highlighting the long-term commitment to the communities and to the
overarching goal of fostering the sustainable use of natural resources of GOP and PROFONANPE, while improving the
well-being of indigenous communities (For more detailed information see annex XI). Besides serving as a co-financier
for the implementation of the project, after its completion, these returns will serve to strengthen and facilitate the
sustainability of the activities financed during the project’s life span.
The core of future funding will be aimed at strengthening those bio-businesses that still require broader terms for
consolidation. In particular and as appropriate, it will finance technical assistance in areas such as technology transfer,
identifying new markets, marketing, maintenance of equipment, development of training workshops, internships, etc. To
fulfill this purpose an allocation of USD 350,000–400,000 annually is estimated. Likewise and in order to ensure the
follow up of post-project activities, the project endowment will provide financial resources to perform the tasks of
monitoring and reporting for at least five years after project completion. In this case, an annual budget of around USD
40,000 is estimated.
C.5. Market Overview (if applicable)
Fish and wild meat
Fish is traded salted and dehydrated and wild meat as smoked. Both products are considered of high quality by local
standards and are marketed in proper packaging and in polypropylene sacs. The final market is the city of Yurimaguas,
region of Loreto, which has traditionally been supplied from the Pastaza Basin and Rimachi Lake. The city has a large
market that absorbs the entire supply from the region mainly satisfying the demand from the increasing number of
agricultural producers in the region. Tarapoto city is the next market to reach that can absorb growing production
especially given the increasing economic growth rates seen recently. Bio-businesses sell the fish and wild meat
products at retail prices during the season between January and July. Reaching the retail market through their
associations gives producers a higher margin having eliminated two steps of intermediation to the final consumer.
Aguaje pulp and oil
Current production is being sold through a local firm called FRUTAMA, a company dedicated to the marketing of frozen
pulp and oil of different fruits of the Amazon palm tree such as the aguaje, huasaí and ungurahui. There is growing
potential to supply both products to the market for ice cream and soft drinks in various cities of the Amazon and in the
rest of the country and potentially to foreign markets as an exotic product. Currently bio-businesses sell their products
to FRUTAMA, which markets them to other merchants, supermarkets and wholesalers that have the facilities to keep
them for as long as the products require, in the largest cities of the Peruvian jungle such as the cities of Iquitos,
Yurimaguas and Tarapoto. Aguaje pulp has also entered the market in Lima, since the pulp is high in protein compared
to milk or meat and is rich in proteins, lipids and vitamins.
Dragon's blood
This latex blood is sold to the markets of San Lorenzo and Iquitos. The product is also sold in other cities’ markets,
mainly in Lima, in liquid form and in capsules through naturalist houses under the brands Censelva and vine Natura.
The resin extracted from the tree of the species Croton is applied as part of healing processes, and anti-inflammatory
and antiviral treatments. The latex blood is sold in markets, mobile stalls and pharmacies. The liquid is sold in
containers of different sizes and its use is quite widespread being used in native forests and urban Amazonian
populations. It should be noted that to the extent that the product is processed under minimum quality-controlled
conditions and is certified, the export potential is significant. Currently bio-businesses sell to companies like L & CH
from Yurimaguas, wholesalers that export to Mexico and the United States of America. Other companies like Shaman