FONDO NACIONAL DE FINANCIAMIENTO FORESTAL

INVEST IN FOREST
	ESC

CLEAN TRAVEL	SAFEGUARDING WATER	THE LIVING FOREST
From any part of the world, you can help compensate the gas emissions resulting from the Greenhouse Effect generated by aerial transportation used or that will be used. Upon purchasing a Certificate for Environmental Services - Clean Travel (1), you will be counterbalancing the emissions under the concept of carbon fixation. You can do this by using our calculation form according to the originating city and destination or making a voluntary donation of $1 or above. The resources will be used to finance Reforestation projects, Natural Regeneration of Areas and Agroforestry Systems, geographically located in the Republic of Costa Rica , Central America...More	We are all aware of the importance held by water for both human and the country's development. In Costa Rica , we firmly believe in our responsibility to protect the aquifer beds concentrated in our watersheds and which represent real "Water-producing machines"; therefore, we invite you to invest in the Certificates for Environmental Services - Safeguarding Water (2). You will be contributing to safeguard this vital resource making it possible to enjoy this resource in the long term. You and/or your company/organization, can make a voluntary donation of $1 or above and protect our hydrographic watersheds, geographically located in the Republic of Costa Rica , Central America....More	Forests, in general, hold priceless wealth in terms of biodiversity; therefore, flora and fauna must be protected for future generations. An important part of our economy is based on this important natural treasure since a great number of people visit us to enjoy these forests areas which also offer us a unique scenic beauty depending on the type of forest. Therefore, we invite you to invest in the Certificates for Environmental Services - Living Forest (3). You will be contributing to safeguard a great variety of tropical forests which in some cases, are global remnants making them areas of great importance for humanity. You and/or your company/organization, can make a voluntary donation of $1 or above and help protect the forests, geographically located in the Republic of Costa Rica , Central America...More

The Environmental Service Certificates is a financial instrument whereby we are able to preserve the existing forests and regenerate new ecosystems, including the securing of environmental services for the increasing population

What is a ESC?

The work carried out by FONAFIFO through the Environmental Services Payment Program (ESPP) is aimed at guaranteeing the conservation of our forests by providing a financial motivation to those who protect them. Between 1997 and 2004, more than 404,313 hectares of forest were incorporated into this Program, directly benefiting more than 7,000 families. In this way, deforestation was restrained, and Costa Rica 's forest cover was increased from 32% in 1990 to 45.3% in 2002. By the end of 2005, FONAFIFO expects to bring up to date the country's Forest Cover Map.

However, since public funds are insufficient to ensure the continued growth of forest cover, FONAFIFO has tried to find new alternatives to compensate forest owners and secure the benefit we receive from them. This gave rise to the idea of the Environmental Service Certificate (ESC), a financial instrument that intends to preserve the existing forests and regenerate new ecosystems and guarantee environmental services to an increasing population. By means of these Environmental Services Certificates, FONAFIFO receives funds from companies and institutions that benefit from the environmental services and compensates forest owners for preserving them.

This instrument is very beneficial due to the following characteristics:

TIMELY: it concentrates contributions, avoiding slow and cumbersome negotiations.

CONVENIENT: it allows investors to place their money in the region whereby they receive their environmental services, or invest in the conservation of forests in general, as they wish.

VERSATILE: it allows for specific bond issues, according to the conservation priorities set forth.

TRANSPARENT: it monitors the use and application of resources, thus providing support and transparency to the system.

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With respect to FONAFIFO, the verifications of Environmental Services Payment, in relation to funds derived from the Environmental Service Certificates (ESC) are made by the Tropical Agricultural Research and Higher Education Center (CATIE), the Junta National Forestal Campesina (JUNAFORCA ), as well as through internal and external audits, and also by the General Comptroller’s Office of the Republic . All resources that FONAFIFO receives from the sale of ESC are managed through a Trust Fund created in the Banco Nacional de Costa Rica.

Investing in ESC benefits your company in the following manner:

BENEFITS

	It guarantees the rendering of environmental services required for the growth of your business, both in your specific geographical area of interest and in country's forests in general.
	As an investor, you have the option of using the ESC image when marketing your organization in virtue of your condition of environmental conservation promoter.
	It guarantees, by means of the verification of usage and allocation of resources, that the funds really get to small and medium farmers and to your region of interest.
	Your investment is tax-deductible from gross revenues as an expense.

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Investing Partners

Costa Rica has become a worldwide model in the creation of innovative Environmental Services Payment (ESP) mechanisms and fundraising from the private sector, making it possible to protect and regenerate forests that provide many benefits to the society and country.

Several companies have believed in this system, joining to protect the environment, by investing in Environmental Service Certificates. The companies and individuals who have invested in ESC are the following:

INVESTING COMPANIES

	RESERVA CONCHAL, S.A.
	AZUCARERA EL VIEJO, S.A.
	COSTEÑA, S.A.
	EXPORPACK, S.A.
	MILENIO
	LIFE GATE (IMPACTO ZERO)
	GRUPO OLEFINAS
	HOLCIM COSTA RICA
	HIDROELÉCTRICA TUIS, S.A.
	AGRICOLA TAYUTIC, S.A.
	ENG. EDGAR ORTIZ MALAVASSI
	NATURE AIR
	FEDE FUTBOL
	TRIBU NASCA
	AGENCIA DE VIAJES HORIZONTES
	EMPRESA DE SERVICIOS PUBLICOS DE HEREDIA (ESPH)
	FLORIDA ICE & FARM
	COOPEAGRI R.L.
	ASOFIFO

		RESERVA CONCHAL S.A
		Brief Description	Contact Information
		This hotel supports and maintains the increase of forest cover in the area of the Nimboyores River’s watershed. This company protects 395 hectares of forest	Telephone: 54734 E-Mail: toncas@racsa.co.cr

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		AZUCARERA EL VIEJO S.A.
		Brief Description	Contact Information
		This sugar manufacturing company concentrates its production in the Guanacaste region. Its institutional scope is to maintain a sustainable relationship with the environment. The company preserves 550 hectares of forest.	Telephone 296 0007 / 232-1192 /688 8000 / 671 1250 E-Mail: azviejo@racsa.co.cr

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		COSTEÑA S.A.
		Brief Description	Contact Information
		A melon producer and exporter based in Caimital de Nicoya, Costeña has become the first Costa Rican company to be awarded the European EUREPGAP certificate for the quality and hygiene of the products they supply to the main European supermarket chains. A firm that is concerned for the environment, as well as food quality and safety, Costeña preserves 100 hectares of forest..	Telephone 685 5042 E-Mail: alimencr@racsa.co.cr

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		EXPORPACK S.A.
		Brief Description	Contact Information
		This company is located in Sardinal de Carrillo, province of Guanacaste; it produces and exports prime quality melon. EXPORPACK S.A. is aware of the need to preserve water-supplying sources, it protects 100 hectares of forest in Sardinal’s neighboring regions	Telephone: 697 0055 / 697 0107 / 697 0466 E-Mail: exmelon@exporpack.co.cr

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		MILENIO
		Brief Description	Contact Information
		This company specializes in integrated strategic built-in communication and focused on mass media projection. Its service areas are: image and positioning in the mass media, research, and direct mass media. This company protects one hectare of forest.	Telephone: 222 3173 Fax: 223 6079 E-Mail: comunicaciones@milenio. co.cr www.milenioco.cr

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		LIFE GATE ( IMPACTO ZERO )
		Brief Description	Contact Information
		This is a private investors group domiciled in Italy, which aware of the need to protect the environment, has decided to invest financial resources in the protection of forests in indigenous territories. Life Gate protects 91.98 hectares of forest .	Telephone 250 5454 Fax 219 2445 Web Site: http://www.olefinas.com/

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		GRUPO OLEFINAS
		Brief Description	Contact Information
		This company sales and distributes agricultural supplies used in the cultivation of different products, such as bananas, pineapple and melon. Aware of the need of improving the environment, this group protects 30 hectares.	Telephone 250 5454. Fax 219 2445 Web Site:www.olefinas.com

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		HOLCIM (COSTA RICA), S.A.
		Brief Description	Contact Information
		Holcim (Costa Rica), S.A. is part of Holcim, Ltd., which is one of the largest world producers of cement, aggregates and premixed concrete. It is established in Switzerland and operates in more than 70 countries throughout the five continents. It is a strong market-oriented company, with innovative products and construction systems for pavement works, houses, buildings and infrastructures, in general, thanks to its highly skilled and motivated personnel; it has respect towards the environment and deep social responsibility. This company has invested in Environmental Service Certificates to protect 100 forest hectares which are rich in water resources in the regions neighboring its cement producing plant, in Agua Caliente de Cartago .	P.O. BOX 4009 CR-1000. San José, Costa Rica. Telephone number (506) 562-89-22 Fax (506) 552-83-84 www.holcim.com/cr

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		HIDROELÉCTRICA TUIS, S.A
		Brief Description	Contact Information
		This hydroelectric plant is located in Tuis de Turrialba, Province of Cartago and collects water for power generation from the Tuis River, whose maximum water volume is 1.5 m³/s and 1,896 kW/h-generation capacity. This company is aware of the need to protect and improve the Tuis River watershed; therefore, it invested in an a Environmental Service Certificates corresponding to 75.2 forest hectares. This company is aware of the need to protect and improve the Tuis River watershed; therefore, it invested in an a Environmental Service Certificates corresponding to 75.2 forest hectares .	Telephone numbers: 531-32-22 or 531-11-01

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		Agrícola Tayutic, S.A.
		Brief Description	Contact Information
		Agrícola Tayutic S.A. has decided to invest through ESC in the protection of 50 forest hectares in the Río Platanillo’s watershed whereby water resources required for Tayutic’s sugar mill operations are also protected. This company is devoted to the cultivation of organic sugar cane used for the production of sugar that is exported to various countries.	Telephone numbers: 280-86-86 Fax 224-89-60 tayutic@racsa.co.cr

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		ENG. EDGAR ORTIZ MALAVASSI
		Brief Description	Contact Information
		Associate Professor of Forestry Engineering, Instituto Tecnológico de Costa Rica (ITEC); this conservationist and ecologist protects two hectares of forests.	Telephone: 550 25 11 E-Mail: eortiz@itcr.ac.cr, edgarom@costarricense.cr

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		NATURE AIR
		Brief Description	Contact Information

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		FEDEFUTBOL
		Brief Description	Contact Information
			Teléfono 257 8475

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		TRIBU NASCA
		Brief Description	Contact Information

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		AGENCIA DE VIAJES HORIZONTES
		Brief Description	Contact Information

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		ESPH
		Brief Description	Contact Information
		Empresa de Servicios Públicos de Heredia, proteje la Cuenca del río Segundo.

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		LA FLORIDA ICE & FARM
		Brief Description	Contact Information
		Florida Ice & Farm, proteje la Cuenca del río Segundo .

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		COOPEAGRI
		Brief Description	Contact Information

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		ASOFIFO
		Brief Description	Contact Information
		FONAFIFO Employee Association; it protects one hectare of forest.	Telephone 257 8475

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How and where to invest?

Any individual or company interested in investing in Environmental Service Certificates to protect one or more regions of interest may contact FONAFIFO's Resource Management Division (506) 257- 8475.

The amount to be invested will depend on the number of hectares such individual or company wishes to protect. Through the ESC mechanism, the smallest investment area is one hectare; currently, the ESC’s average value is $57 per hectare/year, and the contracts are settled for 5 years. After preparing and approving the corresponding contract, the investor will be assigned an account number in the Banco Nacional de Costa Rica, wherein the corresponding deposit shall be made in a special trust; this trust will be responsible for the administration of such funds. Then, FONAFIFO issues a Certificate and delivers it to the investor. Once this process is completed, the investor will be listed in FONAFIFO's Web Site. The list with the names of individuals or companies that contribute to environmental protection is disclosed only for information purposes. Should the company have a Webpage, FONAFIFO will create an electronic link to that page.

Investing in Environmental Services

Forest conservation is a very good investment for all, although some persons are not aware of it, yet.

Water protection, mitigation of gases that cause the greenhouse effect, conservation of biodiversity and scenic beauty are some of the services provided by forests.

Timely investment in these resources guarantees that they will keep on providing such services; in addition, this investment is less expensive than paying the consequences that result from abandoning forest resources. If forest cover is increased, mainly in the most damaged watersheds, the threat of landslides and mudslides will decrease, damages to soil and property will be prevented, and loss of human life will be reduced.

It is important to note that Costa Rica has positioned itself as a very important tourist destination. The amount of US$ 1.200 million is generated per year, which places this activity as the largest contributor to the country's Gross Domestic Product (GDP). These circumstances are the result of the recovery of Costa Rica 's forest cover since the late '80s, largely because of the actions carried out by FONAFIFO through the Environmental Services Payments.

Water is vital for all; if forests are preserved, this valued resource will be secured for human, animal and hydroelectric consumption.

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Guanacaste Issue

As part of the first stage of the ESC, efforts are focused on the conservation or regeneration of seven thousand hectares of forest or plots that protect the superficial and underground water resources of the Cantons of Nicoya, Santa Cruz, Filadelfia, Carrillo and Liberia.

The Guanacaste macro-issue totals $1.995 million. The face value will be $285 per hectare over a five-year period, which is the minimum contractual term for ESC program participants. This amount includes technical and legal certification costs, as well as those related to administrative process; $1 will be allocated to forest fire control, mainly in protected regions, and $1 to environmental education.

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This map shows Guanacaste’s forest cover in 2000

The ESC sales program is aimed at increasing such forest cover for the benefit of water resources, reducing the greenhouse effect gases, as well as improving biodiversity and scenic beauty.

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