proposals – Addendum

EXPECTED PERFORMANCE AGAINST INVESTMENT CRITERIA
GREEN CLIMATE FUND FUNDING PROPOSAL | PAGE 39 OF 101
E
E.6.2. Co-financing, leveraging and mobilized long-term investments (mitigation only)
Thirty per cent of the project’s budget will be provided by two different sources, as described in the table below. The
largest contributor is the Government of the Republic of Korea with 20 per cent of total financing, followed by
PROFONANPE with 12 per cent.
Other organizations will contribute their respective areas of expertise. For example, SENAMHI will contribute funds
toward climate observation activities and equipment. The contribution from the provincial municipality will be mainly
geared toward supporting the development of POTs and cooperation in other related project activities within the
province.
Table E.6.2. Co-financing for mitigation activities
(United States dollars)
Financial instrument Amount Currency Name of the institution
Grant 1.07 million USD PROFONANPE
Grant 1.80 million USD Korean Government
Total
2.87 million USD
E.6.3. Financial viability
Throughout the development of POT for the province, the project will help establish a framework of institutional
arrangements to manage the natural resources used by indigenous communities and will also help to establish clear
rules for the sustainable exploitation of various products. This plan, accompanied by ACA management tools and
the implementation of management areas, will enable the operation of multiple businesses, the most relevant of
which are bio-businesses supported by the project.
Table E.6.3 shows the results achieved by PROFONANPE from a sample of seven bio-businesses implemented in
the area. A more detailed presentation is provided in table 11 of the feasibility study.
As the results indicate, all of these bio-businesses achieved profits during their first year of operation and a positive
return on investment. The encouraging results obtained so far, and the enhanced support that will be provided by
the new project in terms of the amount of resources and support for technical, financial and marketing aspects, will
further improve the chances of success and increase possibilities of viable, sustainable development in the long
term.
Throughout the five-year planning process and the project’s assistance to bio-businesses, all seven participating
ethnic communities will learn about the importance of their resources in their respective territories and will acquire
specific knowledge of potential business opportunities. This will provide the project with a good exit strategy.