PROJECTS

FONAFIFO, as the Executing Unit of the ECOMARKET Project, has received US$30,575,411 according to what is established in the Loan agreement BIRF 4557-CR agreement, Donation 23681-CR and the Donation JPN-50508; this sum corresponds to 75% of the funds allocated for the Project. The following initial disbursements are included: $2,000,000, $500,000, $60,400 from BIRF, GEF and Japan, respectively, and the sum of $326,000 which corresponds to 1% interest over the loan. The following table displays the progress of the disbursements of funds provided by the Donors.

Financing of the Ecomarket Project to November 30, 2005, Expressed in USD Donor Allotted Funds Received Funds %Progress BIRF 4557-CR 32,630,000 25,199,147 87% GEF 23681-CR 8,000,000 6,448,306 81% JPN 50508 302,250 286,326 95% TOTAL 40,932,250 34,933,778 85%	R E S U L T S

Furthermore, the government of Costa Rica has transferred funds to the respective entities in its role of national counterpart, for a sum equivalent to $9,380,160 to comply with what has been established in Law Nº 8058 and the complementary financing of Payment for Environmental Services contracts in its different modalities.

In Component 1, in relation to the subcomponent of ESP Previous Contracts, the Loan agreement BIRF 4557-CR agreement destines the sum of $14,800,000 to finance 100% of the pending obligations assumed with the ESP contracts subscribed in the years 1998,1999 and 2001. In this item, $13,437,54 has been invested in the different ESP programs, equivalent to a progress of 91% in the use of the funds.

The sum of $12,592,680 has been invested in the ESP subcomponent New Contracts in the different modes of payment for environmental services. This sum is equivalent to a progress of 57% in the use of funds.

In the contracting of hectares, within the Biological Corridors, a progress of 114% has been achieved to date under the program of forest protection which corresponds to 114,125 hectares of which 40,882 have been financed with the Costa Rica’s government’s own resources and 73,243 hectares with funds from the Project.

In relation to the increase of female participation in the ESP, the established objective was that upon its conclusion, there would be an increase of 30% in participation. The number used as a point of reference was the number of women participating in the program in the year 2000, which totaled only 22. Currently, 368 women participate in the different ESP programs financed by the Project. This figure does not include the Agroforestry program or the global contracts that would notably increase that percentage.

On the other hand, when comparing the 1,232 hectares contracted by the ESP Program during the year 2000, whose beneficiaries are women, with the 26,945 hectares contracted to date with this sector, the conclusion is that there is an increase of 2.187%. At the same time, if these hectares are compared to the total contracted by the Program, it can be determined that female participation increased from a 4% in 2000 to 14% in the year 2004.

With respect to the participation of indigenous communities in the ESP program, the established objective was that, upon the Program’s conclusion, their participation would increase 100%. The number used as a reference was the participation of the total hectares contracted during the year 2000, equivalent to 2,850 ha. The accumulated increase to date exceeds the established objective because there are currently 22,451 hectares contracted.

Finally, the subcomponent related to the development of a financing mechanism for the ESP Program, it is noteworthy that, with the support of the Ecomarket Project, a Certificate for Environmental Services (CES) was designed. This tool makes forest protection possible through private investment in the ESP program and to use the logo in the marketing of products and receive tax cuts; the investment is recognized as tax deductible.

Therefore, more than $255,000 has been invested in the development of funding mechanisms and $259,328 in the development of the REFORESTA Project .

In Component 2, FONAFIFO and SINAC routinely manage and supervise the ESP Program in coordination with MINAE. The foreseen expenses will cover the Program’s administration, its coordination, its financial administration, maintenance of the information systems and field supervision.

Use of Funds in Component Nº 2 of the Ecomarket Project, Expressed in USD            Guided Tour GEF Donation Government Donation Budgeted Funds Executed Funds % Executed Budgeted Funds Executed Funds % Executed Goods 685.000 431.437 63 431.437 4,870.253 61% Consultancies and Training A 1´515.000 710.586 47 286.328 95%	F U N D S