Agency’s Project ID: 3601

GEFSEC Project ID: ......

Country: Panama

Country Eligibility:

ratification of CBD: 17 Jan 1995

Project Title: Integrating Biodiversity Conservation in the Productive Sectors of Las Perlas Archipelago, Panama

GEF Agency: UNDP

Executing Agency(ies): AMP

Duration: 4 years (est.)

GEF Focal Area(s): BIODIVERSITY

GEF Operational Program(s): Coastal, Marine and Freshwater Ecosystems (OP2)

GEF Strategic Priority(ies): Mainstreaming Biodiversity in Production Systems (BD-2)

Estimated Starting Date: November 2005

Financing Plan (US$)
GEF Project
PDF A / 25,000

Sub-Total GEF

/ 25,000

Co-financing

GEF Agency
National Contribution / 29,000
In Cash
In Kind / 29,000
Others / 18,983
Sub-Total Co-financing: / 47,983
Total PDF Financing: / 72,983

Record of endorsement on behalf of the Government:

(Enter Name, Position, Ministry)
Eduardo Reyes, Deputy Administrator and
GEF Operational Focal Point, National Environment Authority / Date: (Month, day, year)
September 29, 2005
This proposal has been prepared in accordance with GEF policies and procedures and meets the standards of the GEF Project Review Criteria for PDF Block A approval.

Frank Pinto
Executive Coordinator / Project Contact Person
Antonio Perera
Regional Technical Advisor, UNDP GEF LAC RCU
Date: (Month, Day, Year) / Tel. and email: (507) 302-4589

PROJECT DEVELOPMENT FACILITY

Request for PDF Block A for FSP

UNDP PROJECT INITIATION DOCUMENT

1

1.  Global Significance + Problem Statement

1. The Archipelago of Las Perlas (ALP) is an assemblage of approximately 255 islands and islets in the Pacific side of Panama, with a wealth of natural and cultural assets including outstanding land/seascapes, terrestrial and marine biodiversity, endemism and archaeological sites. ALP has a total area of 165,000 ha of which 33,153 ha are insular.

2. The ALP is located in the humid tropical climate with an average monthly precipitation of 2,298 mm, annual average humidity levels of 78% and an annual average temperature of 27°C. The larger islands feature a flat topography with some low mountains not exceeding 230 m a.s.l., interspersed with valleys and plains. Perennial rivers are confined to the larger islands, while smaller rivers and creeks appear during the rainy season on some of the smaller islands. The landscape includes natural and rural elements of great value for the inhabitants and visitors to the ALP. The Gulf of Panama is relatively shallow and the ALP is within the 50 m isobath with relatively low relief. The islands coasts are dominated by sandy beaches in protected bays and rocky outcrops.

High levels of biodiversity and endemism

3. The ALP features two Life Zones according to Holdridge’s classification system: Tropical Moist Forest and Tropical Dry Forest. Mature, relatively undisturbed forests (17,151 ha), secondary forests (12,150 ha) and mangroves cover most of the insular surface (92 %). It is important note that over 50% of the forests consist of primary forest, located for the most part on the islands of Del Rey and San Jose. Crops, grassy areas, towns and areas with some kind of infrastructure comprise the remaining surface.

4. While information about terrestrial biota is limited, preliminary research indicates high biodiversity and endemism rates, perhaps due to the genetic differentiation that often occurs in isolated populations. Angher (2004) has identified a total of 61 species of birds in the ALP and identifies the ALP as an important center of bird subspecies differentiation. At least 16 birds are endemic subspecies to the ALP, such as the White-fringed Antwren (Formicivora grisea), also an endangered species, and the grey-necked wood-rail (Aramides cajanea). Vulnerable bird species include the Amazona ochrocephala, Tigrisoma mexicanum, Amaurolimnas concolor. In total, at least five species listed as endangered or threatened inhabit the ALP.

5. The Archipelago is vital for the survival of 11 species of aquatic birds that depend on the coastal habitats in the ALP to reproduce. There are 19 nesting colonies, including the largest colony of the Brown Pelican (Pelecanus occidentalis) in Panama and other colonies that house 50% of their national population, as well as the two largest colonies of the Neotropical Cormoran (Phalacrocorax brasilianus), representing approximately 70% of the total in the country. In addition, 76% of the population of the Blue-Footed Booby ((Sula nebouxii), 17% of the population of the Frigatebird (Fregata magnificens), and over 40% of the Brown Booby (Sula leucogaster) population breed in the ALP. The Directory of Important Bird Areas (IBAs) in Panama lists 10 areas in the ALP, several of which are in the Isla Pacheca (Angehr 2003). Pedro Gonzalez, Del Rey and San Jose islands represent the only nesting sites of the endemic White-fringed Antwren (Formicivora grisea). Thousands of transient and non-breeding bird species use the island as feeding areas, especially during the dry season, including sandpipers and plovers. At least 150 local and migratory bird species depend on the habitat of the ALP.

6. At least 21 species of terrestrial and marine mammals have been reported at the ALP, though a full inventory has not been undertaken. Terrestrial species include bats, rodents and the three-toed anteater, while the presence of wild cats, sloths and armadillos has not been confirmed. Terrestrial mammals include 10 endangered species, protected by national and international legislation. In addition, there are 6 subspecies of unconfirmed endemic mammals.

7. Herpetological information is limited but the few studies carried out report the presence of at least seven endangered or threatened reptile species, including the American crocodile (Crocodylus acutus), the green iguana (Iguana iguana) (GATO AG 2003) and five species of endangered marine turtles. The turtle species include the Green (Chelonia mydas), the Olive Ridley (Lepidochelys olivacea), the Loggerhead (Caretta caretta), the Leatherback (Dermochelys coriacea) and the Hawksbill (Eretmochelys imbricata). The last two species are listed as critically endangered. Important nesting sites exist on several islands of the ALP for the green turtle and the critically endangered leatherback turtle, which is known to nest only in San Jose. Studies have also found at least one regionally endemic species of frog (Eleutherodathylus raniformis) (Angher 2003).

8. In terms of the marine environment, sandy bottoms represent the dominant sub-tidal communities, concentrated in the southern zone of the Archipelago, with rocky and muddy bottoms present to a lesser extent. A total of 119 ha of coral reefs and coral communities can be found in the ALP, particularly in the northern and eastern islands, while less developed patch reefs and bank reefs predominate in the southern islands. Fifteen of the 17 coral species of the Gulf of Panama can be found in the ALP.

9. Mangroves cover 1,401 ha of the ALP or approximately 4% of the insular surface and are believed to contain 12 species of mangrove plants including the red mangrove (Rizophora sp.), the black mangrove (Avicenia germinans) and the Conocarpus erectus. Satellite images indicate that the mangroves are still in relatively good condition. The ALP mangroves lie within the Panama Bight ecoregion, which has been designated by World Wildlife Fund as one of the “Global 200 Ecoregions”, the priority areas for global conservation efforts (due to the “outstanding” mangrove forests).

10. There are at least 16 reported marine mammals, including six species of whales (Mysticeti) and 11 species of dolphins (Odontoceti). The archipelago offers protected shallow waters which make it a priority area for the reproduction of humpback whales Megaptera novaengliae in the Tropical Eastern Pacific Ocean and possibly for other species of cetaceans. Recently, Panama’s jurisdictional waters were declared a sanctuary for all aquatic mammals through Law 13 of May 5 2005 and through CITES, which provides protection for humpback whales, who use the ALP as one of their favorite spots for mating, breeding and nursing their calves. Other whale species that have been seen in or around the archipelago are the orca (Orcinus orca), the blue whale (Balaenoptera musculus), pilot whale (Globicephela macrorhychus) and sei whales (Balaenoptera boreales), among others.

11. A total of 737 species of fish, representing 94% of the ichtiofauna of the Pacific of Panama have been identified in the ALP (Robertson and Allen 2002). Pelagic fish such as marlin, dorado, tuna and mackerel abound in the deeper areas around the Archipelago, and the Archipelago has populations of the whale shark Rhincodon typus, the largest fish on the planet.

Cultural Resources

12. Ethnohistorical sources speak of dense indigenous populations in the ALP during the European Contact Period. However, the first and last time it was surveyed archaeologically, at least in part, was in the 1920s, finding several Precolumbian occupation sites on the islands, as well as Precolumbian stone-walled fishing traps on the shores, detailing the role the ALP had in bringing together peoples and products from all around the Bay of Panama.

13. There are also many reports of sunken colonial era ships in the ALP, making a detailed underwater survey necessary before implementing protection or management policies. In 2004 a find of significant importance was positively identified: the 35 ft. and 55-ton “Sub-Marine Explorer”, the first fully functional submarine, built by American Civil War Era engineers, is located on the southern shores of San Telmo Island. It is suffering progressive damage due to natural (sea waves) and human factors (increasing tourism).

Natural resource-based economy

14. The population of the Archipelago is estimated at 2,336 inhabitants (Contraloria General de la Republica 2000), living primarily in nine villages, the largest ones being San Miguel, La Esmeralda and Contadora. Politically, ALP is located in the District of Balboa in the Province of Panama and is divided into 6 so-called “corrregimientos”. The Municipal Council of the District of Balboa is made up of one honourable representative for each of the “corregimientos” and the Mayor. There is also one “corregidor” for each corregimiento and an honourable “diputado” or congressman for the entire archipelago and other nearby areas on the mainland. The average density is 10 inhabitants per km². Sixty-three percent of the population is over 18 years old and there are 126 men for every woman. According to a recent social survey, 48% of the population received primary education, 37% secondary education and only 7% obtained university education (Campbell 2005).

15. The standard of living of the local population is comparatively low with a mean monthly income of $165 per home, compared to the provincial mean of $540. A total of 25% of the houses lack potable water access, 29% lack septic tanks, 89% do not have a telephone and 18% lack electricity. Solid waste treatment is limited to open dumping sites, most of them next to mangroves, beaches or rivers. Contadora is the only island with asphalted roads and the best public services of the Archipelago because of the tourism developments there. Adequate port facilities do not exist for the archipelago and there are only a few airstrips, many in relatively poor condition. Currently flights to the ALP are limited to a few planned and charter connections but these are increasing dramatically as a result of tourism. Due to their relative isolation, villagers have developed a distinct culture, which is very much linked to their traditional way of life.

16. The livelihoods of the inhabitants of ALP directly depend on the integrity of ALP’s natural resources. Fishing is the main economic activity with 65% of the population dedicated to it, according to a survey conducted through funding from the Darwin Initiative (Campbell, 2005). According to a recent study of the area, over 50% of these commercialize their catch, 28% fish only for subsistence and 20% do both (Campbell 2005). Most local fishermen fish on demersal fishes, like snapper and groupers, as well as lobsters, octopus and sharks (Guzman, pers. obs.). Few residents are part of industrial shrimp fishing fleets, which produce better incomes. During the dry season when upwelling events create colder, more nutrient rich conditions, fishermen focus on catching fish, while during the rainy season, they shift mostly to shellfish collection (Campbell 2005).

17. Of the surveyed population, 18% is dedicated to agricultural activities, mainly small-scale subsistence slash and burn agriculture, the main crops being rice, corn, bananas, citrics, coconut and watermelon. Currently 2.59% of the insular land surface is covered by crops, and 3.26% is taken up by abandoned agricultural fields that are in the process of succession (as a result of the common practice of shifting cultivation). In total, 1092 hectares or 5.85% of the total area has been impacted by agriculture. A total of 17% of the population is involved in other activities including tourism, teaching and medical assistance (Campbell 2005).

Ecosystem threats

18. Over-fishing: Most marine resources, especially demersal fishes, lobsters, king crabs, queen conches and shrimps, are being depleted. Over 80% of the population agrees that they are finding less fish than 10 years ago (Campbell 2005). At the same time, catch rates have increased significantly according to the Panama Maritime Authority’s statistics, suggesting an increased fishing effort that has not been coupled with an assessment of the fisheries’ capacities. According to the local artisanal fishermen, larger commercial boats with more sophisticated technology are entering the Archipelago to fish for shrimp, snappers, sharks, cojinua, and other commercial species, creating tension due to their use of techniques such as trawling, sieve nets and longlines and the resulting potential for over-fishing. Due to the large catches, the impact of these commercial boats on the fisheries is significant. Moreover, the artisanal fishery is believed to be large and increased regulations and monitoring are essential to control fishing activities such as lobster harvesting and the use of gill nets. Local resentment of some indigenous people from San Blas entering the area to fish for shellfish is also causing tensions. Other potential threats to marine resources include sport fishing, which often does not involve the practice of catch and release, and the collection of turtle eggs for local consumption.

19. Increasing development, especially high-impact tourism: Real estate speculation is proceeding at a rapid rate, with land being sub-divided and re-sold at increasingly high prices. Given the lack of policies to regulate this, developments may not proceed according to soil capacity and may threaten the ecosystem values of the ALP. Furthermore, an associated threat relates to the increased infrastructure requirements, such as potable water infrastructure and roads to support the developments and possible associated demographic increases. Much of this land speculation is motivated by the desire to reap benefits from the burgeoning tourism industry. Tourism developments are relatively recent and consist mostly of high-impact beach developments on the island of Contadora, which has two hotels with 402 rooms in total, and 200 residential units. Most recently a large swathe of forest on the island of Viveros was cut down in preparation for a large-scale tourist development involving a hotel, golf course, marina and thermoelectric plant; the owner was fined by the National Environment Authority (ANAM) for not following the EIA requirements. The government is providing tax incentives to stimulate tourism development on the islands, and has recently decided to give out concessions on public land. Land sales on the ALP in the past year or two have been proceeding at a rapid pace. Most private sector proposals for tourism investment in ALP are focused on high-impact tourism, rather ecotourism. Ecotourism activities, which are recommended by the Master Tourism Plan for the ALP[1], are currently limited to a small hotel on San Jose Island. Activities such as bird watching and whale watching are still relatively uncommon, though they have the potential to be economically important activities for the local population if the necessary capacity building is undertaken. Few local people are currently benefiting from the recent tourism developments. The majority of the islands are privately owned, but in terms of land mass, only 30% of the total area of the ALP is in private hands. This is because the largest island Isla Del Rey retains a large proportion of public lands (IPAT-OEA 1993).