proposals – Addendum

EXPECTED PERFORMANCE AGAINST INVESTMENT CRITERIA
GREEN CLIMATE FUND FUNDING PROPOSAL | PAGE 34 OF 101
E
Government presence in Datem del Marañón is rated as very low and practically non-existent. Moreover, according
to the 2013 Report on Human Development in Peru by the United Nations Development Programme, PDM scored
0.4295 on the indicator of government presence, with the second lowest score in the country.
E.4.2. Financial, economic, social and institutional needs
Economic and social development level of the country and the affected population
The project will target the poorest group in the third poorest district in Peru. Resilience will be promoted through
three core activities. The communities will be responsible for managing the natural resources in their respective
territories, or in areas under EMP, sanctioned by the relevant authority. The project will also promote and support
commercially viable bio-businesses that are proposed by the indigenous associations and enhanced through
collaboration with a team of scientists and innovation engineers. In addition, the project will foster the preparation
and implementation of community-based contingency plans to deal with extreme climate events, floods and
droughts.
Absence of alternative sources of financing
Project activities do not require beneficiaries to be actively eligible for credit. Traditionally, indigenous communities
have not fared well when non-traditional sources of financing have been offered. Indigenous peoples are not
normally eligible for credit from formal financial institutions. As previously indicated, many are not in the public
registry; therefore, from the point of view of financial institutions, they do not exist. However, as demonstrated by the
previous PROFONANPE project in the area, with time and after a learning period, some native associations are in
the process of becoming eligible for credit. The project will encourage and support indigenous associations in the
long journey from non-registered persons, to persons with bank accounts, to persons eligible for credit.
Need for strengthening institutions and implementation capacity
In response to the institutional weaknesses exhibited by the government, the project contemplates strengthening its
ability to conduct and formulate land-use plans as well as operational plans for natural resources management,
while encouraging the devolution of responsibilities for the sustainable management of natural resources to users.
Component 1 of the project aims at systematically strengthening the government’s ability to formulate planning
instruments as mandated by law. At each level, the project will provide support and technical assistance, and will
prepare documentation for the conduct of their services. In addition, the project will prepare a white paper,
summarizing lessons learned and suggesting adjustments in policy formulation, regulations and, in selected cases,
existing laws. The selected strategy will facilitate the implementation of the planning processes. The main actors and
stakeholders will receive training before and during the planning processes, participate, voice their opinions, listen to
other participants, and negotiate and compromise on a common, agreed plan of action. The implementation of such
plans will be in their best interest. Moreover, recent regulations indicate the allocation of preferential investment
projects to ‘anchor’ agreed POTs. Furthermore, national government entities (ministries, special programmes, etc.)
are encouraged, by law, to participate in the process and contribute to their implementation.
The implementation of land-use plans is a long-term endeavour that will require support and funding beyond the
proposed project. PROFONANPE has pledged to remain in the region for the long term and will support the
provincial government in the preparation of projects for consideration by the national government and donor
community.