Industrial and Provident Society BOLIVIA
PERU
In this region, migrant communities, driven by poverty from their mountain homes have been granted settlement rights in the rainforest areas and continue to “slash and burn� native forest in an effort to maintain a meagre living from farming.
The Cochabamba Project Ltd
Rates of deforestation are among the highest in the world. These Landsat photos were taken in 1995 (L) and 2005 (R)
And here are the culprits! – poor migrant communities living in timber shacks – often with no electricity or running water with no money or resources to improve their lot .
Project ArBolivia One of only three reforestation schemes in the WORLD to gain accreditation as a “Clean Development Mechanism� - and the ONLY one of these to be nominated for a CCB GOLD rating
ArBolivia works with over 1000 smallholders in 4 separate Departments bordering 4 Separate National Parks – 7,200 has. Each smallholding (in red) and each forestry parcel (in green) is logged by GPS and a current progress report is available at
The best surviving trees are accredited as “Seed Trees” & are certified and logged by GPS. The project buys seeds from 13 different native species – providing a value for conservation and an extra income source for smallholders.
ArBolivia has set up new Nurseries as private family-run enterprises employing over 200 people at the height of the season. The variety of species each requiring specific techniques for successful propagation.
Intercropping with food crops is more efficient, provides support and competition for seedlings and means less weeding! Some trees also provide nitrogen to replenish soil.
Newly planted seedlings (left) 3 year old trees (below)
8 year old trees from the FAO pilot project (left)
Technical advice, training and broader education are all key ingredients of the project.
Additional investors
Sicirec IM sources additional investment
Carbon Credit revenues subsidise the management costs Smallholders are represented by Co-Operatives and Unions Project ArBolivia
The society buys rights to 50% of net timber revenues
Members buy shares in the society
Net revenues split 50/50
Smallholders provide land and labour and receive 50% of net timber revenues
Current land use Agriculture
Pasture
Agro - Secondary forestry Forest
Natural Forest
Future Land Use without the project Agriculture
Pasture
Agroforestry
Secondary Forest
Future Land Use with the project Agriculture
Pasture
AgroForestry
Ecological corridor along river bank
Forestry Plantation
Second ary Forest
Natural Forest
More control over forestry, lower impact on natural forest
The Cochabamba Project Ltd - an industrial society for the benefit of the community • One member, One vote – no matter how many shares • Shares cannot be sold or transferred • Shares can be redeemed at face value (or less) • Investors may be awarded annual interest – accrued until shares are redeemed. - but any future profits after interest will be used for the benefit of the smallholder communities in the project area.
Asset value Net Declared Interest
revenue
Net asset value of timber assets calculated using an industry standard “discounted cash flow” model at 9% per annum – i.e. the value increases from day one even though there is no revenue The society intends to award interest of 6 – 7.5%
Risks
Inability to secure the long term funding required to complete the project in full. Future timber prices may fall as well as rise Political Risks.
Loss of trees or poor growth through disease, fire, floods and other natural disasters Failure of smallholders and/or other parties to fulfil their contractual obligations The society’s rights to timber revenues may prove difficult to sell.
Working with the project manager to secure long-term funding Conservative estimates of future timber prices. Timing the harvesting of trees. Close cooperation with the locals, NGOs, the Bolivian Government and global institutions. Careful site selection, matching of species and soil types use of natural flood-resistant species, Legal contracts with farmers and collective organisations of farmers, together with long term financial incentives for both
YOUR PERSONAL “CARBON BANK” The average family in the UK has a “carbon footprint” of about 10 tonnes of CO2 emissions every year The average cost of “carbon credits” is over £10 per tonne - you would have to pay £120 a year to negate your impact - over a 20 year period it would cost £2,400 to offset a family’s CO2. In contrast; Investing just £2,000 in The Cochabamba Project would offset your family’s carbon emissions every year -for at least 35 years For a full prospectus go to or call - 0114 2368 168