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					                                       PROJECT IDENTIFICATION FORM (PIF)
                                       PROJECT TYPE: Full-sized Project
                                       THE GEF TRUST FUND

                                                                  Submission Date: 10.14.2008
                                                                  Re-submission Date:
                                                                                         INDICATIVE CALENDAR
GEF AGENCY PROJECT ID: BO-X1001                                                          Milestones                               Expected Dates
COUNTRY(IES): Bolivia                                                                    Work Program (for FSP)                   Feb 2009
PROJECT TITLE: Conservation and Sustainable Use of Biodiversity                          CEO Endorsement/Approval                 Feb 2010
and Land in the Andean Vertical Ecosystems                                               GEF Agency Approval                      April 2010
                                                                                         Implementation Start                     June 2010
OTHER EXECUTING PARTNER(S): Ministerio de Desarrollo Rural
                                                                                         Mid-term Review (if planned)             Dec 2012
Agropecuario y Medio Ambiente (MDRAyMA)
                                                                                         Implementation Completion                June 2015
GEF FOCAL AREA (S): Biodiversity,Land Degradation
A. PROJECT FRAMEWORK (Expand table as necessary)
       Project Objective: Promote the conservation of agro-biodiversity and sustainable land and water management to restore the productive
       capacity and sustainability of Andean vertical ecosystems sustaining habitats of native plants and endangered species and the food security
       of the Ayllus (indigenous Andean territorial organizations) population.
                          Invest-                                                                              Indicative Indicative
        Project           ment, Expected Outcomes           Expected Outputs                                      GEF         Co-           Total
        Components        TA, or                                                                               Financing* financing*       (‘000$)
                          STA**                                                                                (‘000$) % (‘000$) %
       1. Establishing     STA   Local and national level   A well established Research agenda on               400   47    450      53    850
       information               management of Andean       climate modeling, impacts of climate changes
       decision support          vertical ecosystems are    and other threads on Andean vertical
       system on                 based on an effective      ecosystems coordinated between INIAF
       Andean soil,              functioning information    (National Institute for Innovation in
       water, agro-              support system.            Agriculture and Forestry), SENAMHI
       biodiversity and                                     (Servicio Nacional de Meteorología y
       impacts of                                           Hidrología), research institutions and Ayllus.
       climate                                              Information system on land, water,
       variations.                                          biodiversity, and climate variations in Andean
                                                            vertical ecosystems established.
                                                            Monitoring and evaluation System of the
                                                            health of Andean vertical ecosystems in the
                                                            project area established with adequate bio-
                                                            physical indicators.
       2. Strengthening     TA   Policies, principles and   MDRAyMA has adopted policies and                    700   38    1,150     62   1,850
       of policies,              good practices of          regulations guidelines at least in the following
       regulatory                integrated management      three areas:
       frameworks and            of Andean vertical         i) conservation and sustainable use of agro-
       local capacity            ecosystems is              biodiversity, native Andean forests and
       for vertical              mainstreamed in sector     highland marshes;
       ecosystem                 plans, policies, and       ii) conservation and sustainable use of soil and
       management.               regulatory frameworks      water in the Andean vertical ecosystems.
                                 particularly in the        iii) climate change adaptation for Andean
                                 agriculture, livestock     vertical ecosystems
                                 and water sectors
                                                            MDRAyMA has formalized mechanisms for
                                                            coordination and harmonization of integrated
                                                            management of Andean vertical ecosystems
                                                            approaches with sector ministries, Andean
                                                            prefectures, and local governments.
                                 Strengthened capacities    At least 12 medium sized Ayllus and one large
                                 of Ayllus in integrated    Ayllu have received technical assistance to:                                             1
PIF Template, August 30, 2007
                                    management of vertical     (i) develop strategies and community norms
                                    ecosystems including       for conservation of Andean soil, water and
                                    climate change             agro-biodiversity,
                                    adaptation strategies.     (ii) prepare management plans of vertical
                                                               ecosystems including territorial planning and
                                    Integrated management      land use zoning taking into account adaptation
                                    of Andean vertical         strategies to climate Change,
                                    ecosystem applied in an    (iii) identify and monitor key indicators on
                                    area of 100,000-           agro-biodiversity, soil and water quality to
                                    200,000 ha.                follow the progress in vertical ecosystem
                                                               management effectiveness, and
                                                               (iv) strengthen traditional knowledge and
                                                               practices and capacities to evaluate
                                                               technologies with regard to: cost-
                                                               effectiveness; soil, water and agro-biodiversity
                                                               conservation; and impacts on ecosystem
                                                               resilience to climate change.
       3. Promoting       TA        Improved resilience of                                                        4,600     43   6,050   57 10,650
       best practices     and       ecosystems to climate      Technologies for Andean soil, water, and
       and technologies   Invest-   change                     agro-biodiversity conservation and improved
       for conserving     ment      The organic content and    food security adopted in strategic pilot areas
       agro-                        soil moisture improved     (covering 100,000 – 200,000 ha) occupied by
       biodiversity and             in pilot areas.            Ayllus.
       restoring the                Xx ha. of native forests
       production                   under conservation.        6-10 pilot projects implemented demonstrating
       capacity of                  Xx ha. of highland         best practices and adequate technologies.
       vertical                     marshes under
       ecosystem.                   conservation.              Technical assistance and support mechanism
                                    Xx varieties of Andean     to cover the transition costs to sustainable
                                    crops preserved (in situ   production and conservation technologies are
                                    and in local seed          designed and functioning.
                                    Xx lamas and alpacas
                                    Xx decrease in the use
                                    of agrochemicals.
       4. Project Management                                                                                 300       43   400       57   700
       Total project costs                                                                                   6,000          8,050          14,050
      * List the $ by project components. The percentage is the share of GEF and Co-financing respectively to the total amount for the component.
     ** TA = Technical Assistance; STA = Scientific & technical analysis.
                                    Project Preparation          Project                     Agency Fee             Total
       GEF                                                       6,000,000                   600,000                6,600,000
       Co-financing                                              8,050,000                                          6,050,000
       Total                                                     14,050,000                  600,000                14,650,000
       Sources of Co-financing                    Type of Co-financing                Amount
       Project Government Contribution            In-kind                             300,000
       GEF Agency (IADB)                          Grant                               400,000
       GEF Agency (IADB)                          Loan                                7,3500,000
       Total co-financing                                                             8,050,000
                                                                           (in $)
        GEF                                          Country Name/
       Agency             Focal Area                                       Project                                Agency
                                                                           Preparation          Project           Fee             Total
       IADB         Biodiversity                     Bolivia                                    3,000,000         300,000         3,300,000
       IADB         Land Degradation                 Bolivia                                    3,000,000         300,000         3,300,000
       Total GEF Resources                                                                      6,000,000         600,000         6,600,000
PIF Template, August 30, 2007
1. Bolivia is recognized as a mega-biodiverse country due to large differences in altitude (150 - 6,000 m.a.s.l.) and
climate in its territory allowing for a high diversity of ecosystems, flora and fauna. The Bolivian Andes highland and
mountainous areas represent a mosaic of ecosystems within its range of vertical elevation. These ecosystems are natural
habitats of a great diversity of wild species with global importance, many of which are endemic or unique to the Andean
region (condor, Andean cat, Andean fox, vincuña, among others). The agro-biodiversity fostered by these ecosystems
underpins the food security of the indigenous population. The convergence of food security and biodiversity, vulnerable
to various threats, makes the region of high priority within the Government’s National Development Plan.
2. In the northern part of the department of Potosi and the southeast part of the department of Oruro the physiography
forms vertical ecosystems distributed in three ecological zones: Puna (high mountains and plateaus, between 4.800-
3.900 m.a.s.l.), Chawpirana (mountains and upper valleys, between 4.800-3.000 m.a.s.l.), and Likina (mesothermic
valleys of high, medium and low altitudes, between 3.000-2.500 m.a.s.l.). The Puna includes highland marshes1
(consisting of grasses, cyperaceas and juncaceas) and highland native forests with relics of q'iwiña (Polylepis
tomentella) and Kishwar (Budleja coriacea), bio-diversity of native crops like tubers (potatoes, oca, isañu and papaliza),
thorny and conifers bushes (Bacharis incarum, Parastrephia cuadrangularis, Senecio graveolens, Lampaya Castellani),
grasses (Stipa Ichu, Festuca orthophyla), and various endemic medicinal plants. The Puna is also the habitat of the
condor (Vultur gryphus), taruka (Hippocamelus antisensis), the Andean cat (Oreailurus jacobita) all within the CITES
Appendix I, and locally very depleted populations of the vicuña (Vicugna vicugna), the quirquinchos ( Chateopractus
nationi) and suri (Pterocnemia pennata). The Chawpirana includes native forests specific to this zone (Kishwar, molle,
tipa, Taquara, carob, among others), several shrubs (Parastrephia lucida), along with grasses, thorny bushes and several
species of cactus (species in CITES ), a diversity of native crops such as grains (maize and its many varieties, some
endemic), and medicinal plants. The chawpirana is also the habitat of the Andean fox (Lycalopex culpaeus), the viscacha
(Lagidium viscacia), Zorrino (Conepatus chinga), and birds such as Pisac (Nothoprocta ornata) and carpenter (Colaptes
rupicola). The Likina includes relics of dry forests with a high variety of species of high value and an endemic
biodiversity of native crops (maize and its varieties of less altitude, fruits like tunas and its varieties). Both the
Chawpirana and the Likina have sparse scrub (Dodonea viscose, Tijuana) forests of molle (Schinus molle), soto
(Schinopsis haenkeana) and acacias, and fauna of endemic species of birds like the red-fronted paraba (Ara rubrogenys )
in danger of extinction, and the thrush (Oreospar bolivianus).
3. These three ecological zones are populated by indigenous communities organized in Ayllus 2 which have common
ownership of their land and their livelihood is based on the use of the biodiversity and the natural resources of the
vertical ecosystems. The integrated use of the vertical ecosystems by the Ayllu population is characterized by the
existence of a pattern of double home for families and communities in two or three highly distinct ecological zones, the
use of ecological niches in vertical gradients or micro-verticality inside each ecological zone, and seasonal moving
following the lamas in dry seasons. Traditional knowledge about flora, fauna and agro-biodiversity determine the
conservation and the use of the ecological zones in agricultural activities. The use of the vertical ecosystems has
traditionally given the Ayllus population access to food products with high dietary complementarities and additional
income from product sails in markets of the neighboring departments.
4. The productivity, biodiversity and vertical integration of the Andean ecosystem is affected by two highly related
problems threatening the habitats of native flora and fauna with global importance and food security of the local
population: desertification and land degradation and loss of biodiversity. The degradation of the productive capacity of
soil and loss of biodiversity affect the local population worsening the relationship between environment, poverty and
development. The northern Potosi and southeastern Oruro - one of the worst affected areas including 8 municipalities 3
covering 7281 km2 and a population estimated at 203,619 inhabitants (2008) - is one of the poorest regions in Bolivia.
With an HDI (2001) of approximately 0.446 these municipalities are below the national HDI (0.641) and with a
percentage of poor population (in terms of basic needs not satisfied) of approximately 93.9 (2001) they are well above
the estimated national level (58.4) except the municipality of Llallagua (54.1).

  The Andean marshes (Bofedales) are ecosystems with both ecological and economical functions such as genetic banks, reservoirs and water sources and sinks of
carbon (due to its dense organic soil). These are ecosystems important for highland Andean livestock grassing and as wild species habitats.
  The project covers in the northern Potosí the Ayllus Pukwata (Chayanta/Charcas province) and the Ayllus Jukumani, Layme/Puraka, Aymaya, Kharacha,
Chayantaka, Panakachi, Chullpa, Sikuya (Bustillos province) and in the south eastern Oruro the Ayllus Qaqachaka, K’ulta, and north Kundu (Avaroa province).
  Pocoata, Uncía, Llagua, Chayanta, colquechaca, and sanpedro de Buena Vista in northern Potosí and Challapata and Santuario de Quillacas in southeastern Oruro 3

PIF Template, August 30, 2007
5. Desertification and land degradation. The surface of the soil eroded in Bolivia in the arid, semiarid and dry sub-
humid areas, including the Andes, increased between 1954 and 1996 by 86%, from 236,833 km2 to 487,700 km2.
According to the former Ministry of Sustainable Development and Environment (1996) the whole northern part of the
Department of Potosi is affected by desertification processes (approximately 15,000 km2) with rates ranging from high to
very high4. Both the northern part of Potosí and the southeastern part of Oruro have serious environmental and
production problems due to the degradation of the biological productivity of the soil, causing progressive deterioration of
ecosystems. The soil degradation processes is significantly affecting the agro-biodiversity and food security of the
indigenous population and the biological productivity of native vegetation of natural habitats of Andean flora and fauna.
Soil degradation is caused by natural occurring climate variations in the region but mostly by: (i) farming activities
introducing new technologies without verification of their compliance with soil conditions and displacing ancestral
knowledge on harvest and conservation of water and soil; (ii) indiscriminate use of agrochemicals; (iii) seasonal burning,
and (iv) deforestation of hillsides and shrubs to use the wood as firewood in mining or other activities.
6. Loss of biodiversity. Overall in the three ecological zones and their ecosystems there is an increasing loss of
biodiversity directly related to the degradation of the biological production capacity of soils, degradation of highland
marshes and native forests and the disappearance of highly pressured plant populations. This loss has direct impacts on
the structure and composition of the vertical ecosystems and habitats of wildlife. The main causes of biodiversity loss
are: (i) the degradation of marshes and native pastures caused by overgrazing of livestock and incorporation/invasion of
exotic species (goats, sheep and rabbits); (ii) reduced water availability in the highland marshes caused by climate
change; (iii) loss of species of vegetation cover and genetic varieties of tuber crops, grains and highland fruits caused by
land degradation, reduced water availability and changes in farming activities towards mono culture; (iv) and pollution
of water and soil by agro-chemicals and mining waste.
7. National policy and institutional barriers. Bolivia has signed the UN Framework Convention on Climate Change
(UNFCCC), the UN Convention on Biological Diversity (CBD), the UN Convention to Combat Desertification
(UNCCD), the Convention on the Conservation of Wetlands (RAMSAR), and the Convention on International Trade in
Endangered Species of Wild Fauna and Flora (CITES). However, the country has no specific national legislation based
on national biodiversity conservation and land degradation combating policies. Although Bolivia has since 1992 had an
Environment Act, a key milestone for the state environmental policies, the lack of standards and regulations founded in
systematized information on Andean vertical ecosystems (biodiversity, desertification, watersheds, native forests,
endangered species, highland wetlands and marshes, and climate change impacts) prevents the continuity, development
and consolidation of government policies. Without adaptations to local specific conditions and dynamics, state policies
are reduced in many cases to operationalize international standards directly through national and regional plans. These
plans are modified and changed repeatedly due to changes of government rather than a systematic monitoring and
evaluation of their effectiveness. Moreover, in the few cases where the country has environmental regulations, it lacks
adequate institutional capacity to ensure their implementation and enforcement leaving it to the local population to
manage the ecosystems on which they depend within their limited means.
8. Local management weaknesses. At local level the lack of adequate transmission of knowledge between generations
has caused the loss of practices related to conservation and use of land, water and agro-biodiversity. Further, the lack of
monitoring tools of management effectiveness and lack of knowledge about impacts caused by climate change and the
introduction of new technologies, market pressures that favor relatively specialization of production in the ecological
zones, incidences of natural phenomena causing loss of species, have all together weakened the Ayllu’s management
capacities of their vertical ecosystems. A specific challenge in this regard, is to recover ancestral knowledge on
technologies and production value of biodiversity as medicines, food and craft and to introduce new technologies
appropriate for improving soil productivity and conserve the ecosystems at the same time.
9. The proposed project strategy to address the issues raised above includes: (i) generating and systematizing
information on Andean agro-biodiversity, soil and water quality particularly in the context of climate change impacts
and food security; (ii) implementing systematic monitoring of local key ecosystem indicators to sustain a vertical
integrated and adaptive management of the Andean ecosystems; (iii) strengthening the policy and regulatory framework
to effectively incorporate principles of integrated management of Andean vertical ecosystem (IMAVE) in sector policies
and plans, in particular with regards to biodiversity, land and water resources; (iv) establishing harmonization and
coordination mechanism of integrated management approaches across sector ministries and local governments; (v)
strengthening local capacities of IMAVE assisting Ayllus in the development and implementation of land zoning and

    These ranges of desertification were calculated based on the weighting of factors such as loss of vegetation cover, erosion and salinity of soils and poverty incidence.4

PIF Template, August 30, 2007
ecosystem management plans taking into account adaptation measures to climate change, as well as community norms
and regulations for conservation and sustainable use of natural resources (soil, water, agro-biodiversity, highland
marshes and native forests); and (vi) implementing pilot projects in areas, selected for being highly affected, to
demonstrate recuperation of practices and technologies as well as new conservation technologies. The pilot projects will
support activities to: (i) reduce the use of agrochemicals; (ii) manage water and soil resources through increased
conservation, retention, and water harvesting; (iv) conserve crop genetic diversity in situ and in local seed banks; and (v)
increase coverage of native vegetation, and restore and preserve Andean habitats in wetlands, marshes and native forests,
including measures to control overgrazing and the reintroduction of lamas and alpacas replacing goats and sheeps.
10. The IMAVE management approach of the project builds on the local indigenous population’s traditional
conceptualization and use of Andean ecosystems. The organizational and territorial division of the indigenous population
in different Ayllus does not necessarily follow the boundaries of the watersheds which make it difficult to apply
watershed management as the main approach to ecosystem management in the area. However, IMAVE puts emphasis on
sustainable management of land and water resources as key resources for the connectivity and biological productivity of
the vertical ecosystems and for sustaining local livelihoods in the Andes. The complementarities between IMAVE and
improving food security of the indigenous population constitute the key strategy to mobilize the local communities. For
the same reason, the MDRAyMA Program CRIAR, which has the objective to increase food security of the rural poor
through recovering and self-management of productive ecosystems, is the most important source of co-financing for the
proposed project and the two operations will be prepared together. The generation of local pilot experiences is an
important strategy to provide feedback to the process of designing national policies and regulatory frameworks ensuring
synergies with the development of local community norms and regulation.
11. Global environmental benefits. The environmental benefits of implementing IMAVE includes: (i) protection of
Andean biodiversity through conservation of the genetic diversity of globally important native crops and camels, taking
into account indigenous knowledge about their values and conservation; (ii) conservation of natural habitats (native
forests, marshes and their vegetation serving as genetic banks) of endemic species (Andean cat, condor, and vicuña); (iii)
improved resilience of Andean ecosystems to climate change; (iv) management of water availability sustaining
biodiversity and soil conservation; (v) increase of organic content and soil moisture and retention to combat
desertification and land degradation; and (vi) reducing pollution of watersheds from agro-chemicals and soil
sedimentation. In addition the project will contribute to improve food security of Andean indigenous communities with
high rates of poverty.
12. The project is inserted in national, sector, departmental and regional plans in Bolivia, which take into account the
conservation and sustainable use of biodiversity and combat desertification as follows:
a. The guidelines and actions for the conservation and sustainable use of biodiversity in Bolivia emerge from the
   National Biodiversity Strategy and Action Plan (NBSAP, 2001). The project is directly linked to the NBSAP
   policies: 1) Conservation of Biodiversity of Ecological, Economic and Cultural Importance; 2) Integration of
   Biodiversity Conservation in Rural Development Strategies; and 3) Management of Biodiversity Founded in
   Indigenous Cultures. Under these policies the NBSAP highlights the importance of protecting ecosystems, species
   and genetic resources affected by erosion and degradation through addressing threats, restoration, and recovery
   which are key elements in the proposed project. The NAPBC also addresses the recovery, systematization, and
   protection of traditional knowledge associated with biodiversity (flora, fauna, crops) and recognizes the indigenous
   and peasant communities as key players in strengthening practices of sustainable use and conservation of
   biodiversity. The Vice-Ministry of Biodiversity, Forest Resources and Environment under MDRAyMA is currently
   updating and rethinking the NAPBC incorporating new aspects tailored to the current environmental and socio-
   economic context. The project will provide on-the-ground experiences that will feed back into this formulation
   process facilitating the incorporation of new and innovative elements such as community norms and regulations and
   local policies, allowing for the Ayllus to manage their own territories in line with the Indigenous Autonomy
   principle included in the new Political Constitution of the State.
b. The National Development Plan includes a strategy for the conservation of ecosystems, species and genetic
   resources of ecological, economic and cultural importance which aims to reduce threats to the biodiversity,
   recuperate and revalue traditional practices and knowledge on the conservation and sustainable use of biodiversity
   across ecosystems. At the same time, the strategy proposes to evaluate the conservation status of threatened species
   of fauna and flora and to implement a national information system on biodiversity. In this context, the MDRAyMA5

PIF Template, August 30, 2007
      has formulated the Plan for "Rural, Agriculture and Forestry Revolution," including three programs under
      formulation/implementation under the leadership of the National Institute of Agriculture and Forestry Innovation
      (INAF). The three programs, which are complementary to the proposed project are: SUSTENTAR -conservation and
      sustainable use of renewable natural resources; CONSERVAR –environmental and disaster risk management; and
      CRIAR -transformation of food production patterns to support rural food security. These programs are targeted to
      community organizations to promote the sustainable use of biodiversity, promote the recovery of soils and forests,
      and to support the food production for family consumption and local markets. These programs are also related to the
      programs: Vicuña Management, Protection of the Andean Cat, and Sustainable Bio-commerce.
c.    The policy and national plan for land management and use (MDRAyMA, RM No. 292, 2006) outlines strategies to
      reverse the processes of land degradation that causes low agricultural productivity. Its purpose is to enhance the
      productivity of agricultural land and forest through an integrated system of actions to prevent, control, rehabilitate
      and mitigate the impacts of resource degradation with the coordinated participation of all stakeholders.
      Complementary, the National Action Plan to Combat Desertification of the Ministry of Water, primarily for the
      Andean and Bolivian Chaco regions, proposes to widely implement actions to combat desertification based on
      lessons learned and implementation of policies and norms in a strengthened institutional framework.
d.   The National Mechanism for Adaptation to Climate Change which promotes the reduction of vulnerability on water
      resources, food security, and ecosystems includes measures to promote technologies for rainwater harvesting and
      efficient use of surface and underground water in rural areas, support agro-biodiversity conservation systems to
      sustain genetic diversity important for adaptation, and to establish systems for the protection of wetlands and
      highland marches as a strategy for biodiversity conservation in areas influenced by glacial waters.
e.   Integrated management of water resources and integrated watershed management are the central proposals of the
      National Watershed Plan of the Ministry of Water which define the watershed as the basic unit for cultural
      expressions and natural resource management prioritizing human consumption, the needs of flora and fauna and
      other social economic and productive uses. With this approach interventions are made in the watersheds of Pocoata
      (Municipalities of Pocoata and Colquechaca) and Guanacoma (Bustillos Province) lead by the prefecture of Potosí
      and the Union of Municipalities of Northern Potosi.
f.   The Environmental Action Plan Macro-region North (2004), made by the prefecture of Potosi, and the Plan of
      Northern Potosi, promoted by the Ministry of Planning and Development, have identified the urgent need of projects
      addressing sustainable management of biodiversity, recovering and cleaning of soil and water and institutional
      strengthening generating capacities for environmental management in public and private entities.
13. This project is presented under the GEF focal areas of Biodiversity and Land Degradation. In the focal area of
Biodiversity the project will contribute to the Strategic Program 4 (strengthening the policy and regulatory
framework mainstreaming biodiversity in production landscapes) through (i) establishing mechanisms for
coordination and harmonization of approaches between MDRAyMA, sector ministries and local governments to
incorporate principles of IMAVE in sector plans and policies including conservation of agro-biodiversity and sustainable
land and water management, (ii) supporting the formulation of policies and regulations of conservation and sustainable
use of Andean agro-biodiversity, wetlands, marshes, and native forests in Andean production landscapes, (iii)
systematizing knowledge and valorization of Andean agro-biodiversity and its role in food security and development of
local vertical production systems (iv) strengthening of local capacities in monitoring and in situ conservation and
sustainable use of the genetic diversity of native crops. In the focal area of Land Degradation the project will contribute
to the Strategic Program 1 (supporting sustainable agricultural and rangeland management) through technical
assistance and investments in sustainable management of the Andean mountain ecosystems, which are a priority region
in the GEF 4 strategy. These ecosystems are characterized by their importance for the livelihood of the Andean
indigenous communities dependent on the vertical biodiversity in areas with high poverty rates. Moreover, the project
will contribute to (i) recuperate and disseminate the use of technologies proven efficient in sustainable management of
vertical ecosystems under an integrated approach to biodiversity, water, and land conservation, (ii) generate local,
regional, and national capacities in IMAVE and climate change adaptation strategies, and (iii) disseminate best practices
and integrated approaches to recover Andean biodiversity and soil under principles of IMAVE and participation of
indigenous communities.

PIF Template, August 30, 2007
14. Among international initiatives the project will seek to incorporate lessons learned and coordinate with the Regional
Strategy for Conservation and Sustainable Use of High Andean Wetlands, the regional GEF-BM project Design and
Implementation of Pilot Adaptation Measures to Climate Change in the Andean Region (endorsed by GEF CEO in April
2008), the regional GEF-UNDP-UNEP project Sustainable Forest Management in the Transboundary Gran Chaco
Americano Ecosystem (PIF approved in April 2008), and programs for the Conservation of Vicuna.
15. As part of the Social Protection Policy and Integrated Community Development, the government is planning to
implement the program of Communities in Action, financed by a USD 10 million IDB loan and € 7.4 million from KfW.
The proposed project will be coordinated with the investments of these projects in the project area in the areas of
environment, agriculture, and development of local organization capacities.
16. Under the coordination of MDRAyMA/INIAF synergies will be created in strengthening of policies and regulatory
frameworks for the conservation and sustainable use of soil, water and Andean agro-biodiversity with the programs
SUSTENTAR, CONSERVAR y CRIAR. The integration of the project with the program CRIAR is especially important
for the creation of real incentives for the local population to invest in IMAVE. CRIAR will be financed by a $ 20 million
IDB loan (BO-L1040) and aims at supporting community organizations in food production for food security and self-
subsistence in food supplies. CRIAR will finance institutional strengthening and support mechanisms for production
inputs and technical assistance for adaptation and implementation of sustainable technologies. In order to support food
security under the scenario of climate change it is anticipated that CRIAR will support INIAF in activities to recover,
preserve and disseminate native crop genetic diversity and the related production technologies. The proposed project will
also be substantially complemented by the UNEP-GEF project In-situ Conservation of Crop Wild Relatives through
Enhanced Information Management and Field Application (implementation 2004-2009) and the national programs of
sustainable bio-commerce.
17. The Viceministry of Watersheds and Water Resources has prepared the National Irrigation Program with a
Watershed Approach financed by a USD 20 million IDB loan. With this program the proposed project will share and
coordinated water harvesting technologies, analysis of availability of water resources and development of watershed
management strategies including efficiency in the use of water resources in Andean production systems. During the
preparation of the project, coordination will also be made with the program for Prevention, Control and Rehabilitation in
the Mining Sector (2006 to 2010) financed by DANIDA (Danish International Development Agency) including
environmental mitigation and control of mining activities executed by the Mining Corporation of Bolivia (COMIBOL)
in the project area. Finally, coordination will be sought with interventions made by the prefectures of the departments of
Potosi and Oruro and municipal governments involved in the environmental supervision and control of mining activities.
18. In the current scenario Bolivia has several disperse initiatives under way, which will affect the management of Andean
vertical ecosystems. MDRAyMA through the Viceministry of Biodiversity is renewing the NBSAP and formulating the
National Policy for the Management of Wetlands, the National Strategy for Endangered Species, the National strategy for
Conservation of Keñua (Polylepis sp.) forest, and the Draft Law on the Protection of Traditional Knowledge including the
knowledge of indigenous people on biodiversity. MDRAyMA also executes the project In-situ Conservation of Crop Wild
Relatives, the National Program for the Conservation and Sustainable Use of Vicuña with interventions in various areas of
the Bolivian Andes and the second phase of the National Program for Sustainable Bio-Commerce that evaluates the
potential of biodiversity products to be marketed in fair trade markets. MDRAyMA, with support from the government of
Holland, executes the program CONSERVAR related to the sustainable management of Andean wetlands, native forests
and vegetation cover in areas of endemic value. The newly created Ministry of Water is since 2006 implementing a
National Plan of Action to Combat Desertification for the Chaco and Andean Regions and the National Watershed Plan
which includes interventions in integrated management of river basins in northern Potosi aiming to link with projects
related to treatment of pollution from mining activities executed by COMIBOL.
19. However, in the context of the policies, regulations, strategies, programs and projects that affect the conservation of
Andean ecosystems in Bolivia, there are still no integrated experiences and lessons learned on integrated vertical
ecosystem management in a particular territory including large-scale recovery of indigenous knowledge and technologies.
The incremental value of this project is to: i) enable an integrated large-scale experience in a pilot area most affected by
biodiversity loss and land degradation, ii) ensure coordination, harmonization and mainstreaming of the principles of
IMAVE in policies, regulations and plans, and iii) facilitate the participation of a large group of indigenous population in
the conservation of soil, water, and agro-biodiversity through local lead IMAVE.
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20. Further, in the scenario without the proposed GEF project, the program CRIAR, which has a national scope, will not
be able to generate an integrated model for the Andean region based on concrete experiences of adaptation of technologies
to improve food security and at the same time applying principles of IMAVE tailored to the social and productive
organization characteristics of the Ayllus. In the scenario with the proposed GEF project strict coordination and synergies
will be ensured between policies and interventions for food security, which have high priority for the Bolivian
government, and long term policies and regulations for the conservation and sustainable use of Andean ecosystems.
                                Risk                                                                 Mitigation
Northern Potosí and southeastern Oruro is influenced by mining        Agreements on common efforts will be sought during project
activities increasing and decreasing with international mineral       design with projects in the area dealing with prevention and
prices and mainly undertaken by the mining cooperatives. The          control of mining pollution such as the mining component of
generation of environmental pollution, emergence of conflicts         the DANIDA Environmental Sector Program (2006 to 2010).
related to concessions and migration from other parts of Potosí,      This component includes support to incorporate best practices
Oruro, and other departments might affect the dynamics of the         in environmental management, cleaner production, and
execution of the project. Recently caused by the international        education in environmental protection in the mining activities
financial crises the mineral prices are in a downward trend and the   of small and cooperative miners.
overall risk is evaluated to be low to medium.

According to the Human Development Report of UNDP, Bolivia is         The project will support the development of national capacities
a country particularly vulnerable to climate change, which is         and knowledge of indigenous communities on the risk of
causing increased desertification in the Andean highlands and         climate change and its impacts on agricultural production, food
floods in the Amazon. The Andes Mountains is one of the regions       security, desertification, stress and insecurity caused by lack of
of the world particularly vulnerable to this phenomenon causing       water, and ecosystem transformation. Adaptation measures are
water shortages because of the rapid melting of glaciers that feed    mainstreamed throughout the projects components. Lessons
the wetlands, highland marshes and agricultural production in the     learned and findings will be coordinated and incorporated from
central Andes. However, the existence of underground aquifers also    the regional GEF-BM project Design and Implementation of
benefits marches and wetlands, and detailed studies are required to   Pilot Adaptation Measures to Climate Change in the Andean
more precisely determine the impacts of climate change in each        Region.
region. This risk is evaluated to be medium.

21. The IDB is supporting MDRAyMA in the preparation and implementation of the USD 20 million CRIAR (BO-
L1040) program scheduled for approval in 2009. The proposed project will have a high cost efficiency by sharing
administrative costs of implementation with CRIAR, and probably the program SUSTENTAR, under the institutional
framework of MDRAyMA. The coordinated implementation will also strengthen the national institutional, strategic and
regulatory framework facilitating and sustaining the conservation and sustainable use of land and biodiversity at the local
level in the project area. An analysis of the cost-effectiveness of the project will be undertaken during project preparation.
Cost-effectiveness will among other measures be ensured by making cost-effectiveness an important eligibility criterion
for conservation technologies promoted by the project based on calculation of marginal cost of each of the alternative
technology options.
22. The IDB is strongly positioned to contribute to the implementation of the project. IDB has for decades financed
projects in irrigation, management and protection of land and water resources, and natural disaster risk management in
Bolivia, which has resulted in development of relations with relevant institutions within the country on these issues. In
December IDB approved the loan supporting the Bolivian government in implementing the National Irrigation Program
with a Watershed approach. IDB also finance the Communities in Action Program and is preparing the Creation of Rural
Food Initiatives (CRIAR) Program with the MDRAyMA, all contributing with significant amounts of co-financing for the
GEF project. The IDB has a wide track record in operations supporting rural development and sustainable management of
land and watersheds among other countries in Honduras and El Salvador which have serious problems of land
degradation. In addition, the IDB has broad experience in projects supporting indigenous communities in natural resource
management, including the GEF-WB-IDB regional project Integrated Ecosystem Management in Indigenous
Communities in Central America.

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      (Please attach the country endorsement letter(s) or regional endorsement letter(s) with this template).

       Ing. Miguel Angel Rojas Castro, Viceministro Date: 09.05.2008
       de Planificación Territorial y Ambiental,
       Ministerio de Planificación del Desarrollo

       This request has been prepared in accordance with GEF policies and procedures and meets the GEF
       criteria for project identification and preparation.

                                                                    Project Contact Person: Rikke Olivera
       Ricardo Quiroga
       GEF Agency Coordinator
       Date: 10.14.2008                                             Tel. and Email: 202 623 1810,

PIF Template, August 30, 2007

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