1. General Description:
ID:CN-23024
Project resulting from this CN: N/A
Note: CNs are developed into project proposals following consultation with donor(s).
1.1 Project Title:
Sustainable integrated management of non-timber forest products: Use anddevelopment of value-added products on a commercial scale from native bamboo(Guadua sp.)

1.2 Submitting Country/ies:
Peru

1.3 Specific Location & Country/ies/regions/areas benefitting from the project:
Tahuamanu area, Department of Madre de Dios, Peru

1.4 Endorsement from ITTO Focal Point:
2517_06.pdf
1.5 Intended Project Duration (in months):
26
1.6 Indicative Budget (in US$):
ITTO

272,777

Counterpart

435,445

Total

708,222

1.7 Programme Line Focus
Legal and Sustainable Supply Chains (LSSC)
1.8 Project Type
Analytical work/studies, Innovation, Market/product development
1.9 Proposal Summary:
The proposal seeks to establish the sustainable industrial use of Paca (Guadua sp.),a native Peruvian bamboo species found in the areas of Tahuamanu and Tambopata,
Madre de Dios region, Peru. Prioritized uses include the production of flooring andtextile fiber from native bamboo (research and industrial development for the latter
will be covered by another international funding source). The justification for theproposal is based on: natural abundance of the resource in forest concessions;limited silvicultural, forestry and industrial knowledge; product diversification ofconcessions holding FSC (Forest Stewardship Council) certification; potential
markets in the Southern Peruvian Macro-region (mainly in the areas of construction& manufacturing) as well as in Bolivia, Brazil and Chile. The project is divided into 3
main stages (1 Silviculture, 2 Industrialization and 3 Marketing). This proposal
focuses on the silvicultural stage with exploratory activities in stages 2 and 3, withthe following objectives: Stage 1 – (a) Characterization and sampling of stocks per
hectare, distribution and varieties; (b) Identification of factors limiting bamboo cane
harvesting (costs, distance, labour, transport, storage and preservation in the field);(c) Identification of parameters for intensive bamboo production in nurseries; Stage 2– d) Physical-mechanical & physical-chemical characterization and development oftarget products; Stage 3 – e) Market study on the demand for non-timber andalternative products for construction, manufacturing and chemical industries focusing
on Lima and the Southern Macro-region. It should be noted that project stages 2 and3 will be covered with funding from Conservation International - CI, through theAmazon Business Alliance program.

2. Proponent Information:

2.1 Executing Agency Information:
Name of Agency/Organization/Institution:
MADERERA RIO ACRE - MADERACRE

Name of main Contact Person:
José Luis CANCHAYA

Email:
jcanchaya@maderacre.com
Phone:
51 954 688 869

2.2 Type of Organization:
Private Sector/Industry Association
2.3 Collaborating Agency/ies:
Name of Agency/Organization/Institution:
SERVICIO NACIONAL FORESTAL Y DE FAUNA SILVESTRE - SERFOR

Name of main Contact Person:
Leoncio CALDERON

Email Address:lcalderon@serfor.gob.pe

Phone:
51 1 2259005

2.4 Relevant experience of EA:
The executing agency (Maderacre) is one of the main timber companies in thecountry, leaders in the export of timber products and managing the entire timbervalue chain (forest, industry, markets). It has 220,000 ha of FSC-certified
concessions (RA-FM/CoC002176 and NC-FM/CoC-002176) for the production,processing, and marketing of certified timber, under Voluntary Carbon Standard(VCS) and Climate Community and Biodiversity (CCB) Certification for the CarbonCredits Project.

3. Relevance:
3.1 Conformity with ITTO objectives (ITTA, 2006) and priorities (current SAP):The project is consistent with the current ITTO objectives, in particular the following:i. Contributing to sustainable development and poverty alleviation; ii. Promoting andsupporting research and development with a view to improving forest management
and efficiency of wood utilization and the competitiveness of wood products relative
to other materials; iii. Promoting increased and further processing of tropical timberfrom sustainably managed sources; iv. Improving marketing and distribution oftropical timber and timber product exports from sustainably managed and legally
harvested sources; v. Strengthening the capacity of members for the collection,processing and dissemination of statistics on their trade in timber; vi. Promoting
better understanding of the contribution of non-timber forest products andenvironmental services to the sustainable management of tropical forests; vii.
Encouraging members to develop national policies aimed at sustainable utilizationand conservation of timber producing forests; and viii. Promoting access to, andtransfer of, technologies and technical cooperation.

3.2 Relevance to the ITTO Programme Lines:
The project proposal is in line with ITTO's six action areas. Sustainable Forest
Management: as the project will be carried out in certified forest concessions, there
is proven experience in the management and conservation of tropical forests byMaderacre. Similarly, there are sustainable forest industries based on thedevelopment of high value-added products, traceability and legality, with Paca being
incorporated as a new product line. Capacity Building: this will be ensured during all
project stages covering the cost-benefit efficiency of harvesting, industrialization anddevelopment of products and markets, incorporating equity and gender issues. The
use and industrialization of Paca will contribute to economic and market access
improvement, since the project plans to serve the southern macro-region of Peru
(Cusco, Puno, Ica, Arequipa, Moquegua, Tacna), with national and foreign coverage(Bolivia, Chile, Brazil) in later stages. It should be noted that the ecosystems known
as Pacales or Bambusales (bamboo forests) are among those that have the highest
carbon sequestration per hectare (450-500 tons of CO2), while also contributing towater regulation and hence to climate change mitigation. All these considerations arestrongly linked to the SDGs.

3.3 Relevance to the Sustainable Development Goals (SDGs) and the Global
Forest Goals (GFGs) and other forest related global agenda:
As stated in 3.1 and 3.2, the project has strong links with the SDGs, in particular:
Goal 1 No Poverty; Goal 5 Gender Equality; Goal 8 Decent Work and Economic
Growth; Goal 9 Industry, Innovation and Infrastructure; Goal 12 Responsible
Consumption and Production; Goal 13 Climate Action; and Goal 15 Life on Land.

3.4 Relevance to submitting country’s policies:
The project is in line with the policies established by the relevant national authority,
the Ministry of Agrarian Development and Irrigation (MIDAGRI), through the National
Forest and Wildlife Service (SERFOR). In 2008, the Agricultural CompetitivenessDirectorate developed the National Bamboo Promotion Plan 2008-2020, which
provides guidance to stakeholders in the bamboo production and value chain for theimplementation of programs and activities within the framework of the 2020 vision forbamboo technological development in Peru. Likewise, in 2022 SERFOR approved
the National Bamboo Strategy 2022-2025, establishing the technical legal frameworkand guidelines for the development of productive, economic and promotional
activities for this resource. The project is fully consistent with its Specific Objectives SO1: Generate knowledge and strategic information for bamboo development inprioritized and formalized areas; SO2: Develop capacities as required by all key
stakeholders in the bamboo production chain to improve competitiveness,formalization, good management, harvesting, processing, management andmarketing of major bamboo products; and SO3: Manage the inclusion of bamboo inpolicies, plans and governance of key sectors in bamboo production and at all levelsof government.

3.5 Linkages to previous/ongoing ITTO and other projects/activities (if any):
MANAGEMENT AND UTILIZATION OF PACA (Guadua sarcocarpa) - PD002/98
Rev.2 (F,I); PPD004/95 Rev.1 (M) PROMOTING THE REHABILITATION,MANAGEMENT AND SUSTAINABLE USE OF TROPICAL BAMBOO FORESTS INTHE NORTH-WESTERN REGION OF PERU - PD428/06 Rev.2 (F) BAMBOO FOR
LIFE: AN ALTERNATIVE FOR THE REHABILITATION OF DEGRADED FORESTSAND SUSTAINABLE RURAL DEVELOPMENT IN THE PERUVIAN AMAZONREGION - PD690/13 Rev.4 (F); PD891/18 Rev.1 (F)4. Project synopsis:

4.1 Objectives (reflecting reference to elements within all ITTO Guidelines asapplicable):
The main objective of the project is to determine the sustainable industrial use ofPaca (Guadua sp) through integrated silvicultural management (efficiency inharvesting, nursery development, actions to mitigate adverse climatic effects),
identification of mechanically processed products with the greatest potential; scoping
and identification of (regional, national and international) markets so as to ensure thesustainability of the proposal, within an environmental, economic, social and gender
equity framework.

4.2 Key problem(s) to be addressed:
Cost-benefit in the use of non-timber forest resources. Undervaluation andunderutilization of Paca in non-timber forest operations. Limited silvicultural andindustrial experience with Paca. Under-utilization of non-timber forest products (withlittle or no value added). Loss of biodiversity and activities contributing to globalwarming.

4.3 Main stakeholders and beneficiaries:
Private sector, academia and research centers, technical and operational personnel,
forest owners (private properties), forest concessions, native communities, and thepublic sector, seeking to improve and increase the quality of life of thesestakeholders and supporting and strengthening the value chain of this non-timberresource in Peru.

4.4 Key activities:
Characterization of Paca in concession forests, according to density (No. ofindiv/ha), variety, volume (m3/ha), Identification of optimal and economically feasible
harvesting system. Product development (R + D + i): Bamboo boards / flooring (solid- engineered) / Bamboo textile fiber (pure/hybrid) / and others to be identified as
economically viable during the project (table and kitchen utensils, toothpicks, otherwood products). Development of technological packages with regional/state
commercial articulation. Technical assistance and capacity building in the forestindustry-market stages. Strengthening of activities related to sustainable forest
management for non-timber forest products. Incorporation of high-value-added
bamboo products in national and international forest markets.

4.5 Expected outcomes and impacts, including innovation/transformation:
Establishment of an efficient and economically viable harvesting system, assessmentof the harvestable volume of Paca in forest concessions, manufacture of target
products, taking into account costs, scalability and market access. Technical andoperational personnel trained in the silvicultural and industrial management of Paca,implementation of a forest nursery (bamboo), research on Paca silviculture andimprovement. Development and innovation in prioritized products (boards, flooring,textile fiber) and others to be identified as economically viable during the project(table and kitchen utensils, toothpicks, other wood products).

4.6 Existing funding for (related) initiative(s)/established contacts to potential
donors:The project is applying for a grant from Conservation International (CI) through
USAID Peru's Amazon Business Alliance program, which provides financial support
to projects developing value chains for timber and non-timber forest products andbio-trade. The amount requested in the application for the implementation of projectstages 2 and 3 (Industrial and Market, respectively) is US$235,870.91. The project
has also contacted government funding sources, such as PROCOMPITE, Innovate
Peru, Agroideas, and others.

4.8 Risk mitigation measures:
Environmental risk: Externalities to the SFM successfully implemented byMADERACRE (over which it has no control) negatively affect the occurrence of Paca
in the concession. Mitigation measures: Nursery development of the varieties foundin the concession. Study of these varieties under certain environmental factors toevaluate their development at the plantation level. Social risk: The interest in andabundance of Paca causes third parties to unsustainably harvest this resource in theconcessions of Maderacre or its partners. Mitigation measures: Establishment of aforest monitoring committee. Training in the sustainable use of Paca. Promotion ofPaca plantations as a business model. Technical risk: The use and/orindustrialization of Paca is not economically viable for the proposed uses. Mitigation
measures: Analysis of costs and processes and identification of a critical path for
harvesting and industrialization. Joint work with technical partners and academia forthe development of solutions in the various project stages. Considering the option ofchanging the products to be developed. Financial risk: Funding is not available forthe implementation of the proposal. Mitigation measure: Leveraging innovative
finance (Innovate, FINCYT), angel investment, application to national funds(AgroPeru), among others.

5. Indicative Budget (in US$):Indicative Budget (in US$):Description

ITTO

Counterpart

Total

Personnel

0135,064

135,064

Sub-contracts

108,571

58,759167,330

Travel and DSA

18,181

20,78038,961

Capital Items

81,376150,000

231,376

Consumables

030,000

30,000Publication /033,766

33,766

Miscellaneous

6,423

7,076

13,499Total

214,551

435,445649,996

ITTO Project Monitoring

14,000-14,000

Annual/Final Audit

10,000-10,000ITTO Programme

29,226-29,226

ITTO Ex-post Evaluation

5,000-

5,000

GRAND TOTAL

272,777

435,445

708,222

Dissemination& Review

Support