OCP and environmental NGOs agree to create an ecological fund

Additional support provided by EnCana Corporation

Eco Fund
Oleoducto de Crudos Pesados (OCP) Ecuador S.A. and a group of environmental Non-Governmental Organizations agreed on the creation of an Ecological Fund (Eco Fund) with a multi-year capital funding commitment of US$16,930,000, to be used in the development of environmental projects, training, scientific research and other conservation projects in Ecuador.

The main objective of the creation of this Eco Fund is to strengthen Ecuador’s environmental conservation strategy, through activities where specialized institutions and local communities will be involved. The projects to receive funding under the Eco Fund shall have a co-financing of at least 30%.

The funding commitments have been made by Oleoducto de Crudos Pesados (OCP) Ecuador S.A. and from a special funding commitment by EnCana Corporation of Canada, Ecuador’s largest, private sector, foreign oil and gas investor. The initial disbursement of one million dollars will be made when the Agreement is signed. During the first five years of the Agreement funding commitments will total $10 million, in equal yearly disbursements, with the balance committed over the following 14 years.

The Eco Fund will be administrated by the Fondo Ambiental Nacional (FAN), which is a private, independent, and non-profit institution formed between representatives of the public and private sectors. Neither the NGOs who worked to reach this agreement, nor OCP will participate in the administration of the Eco Fund.

The creation of Eco Fund does not exempt OCP from the compliance with its other environmental responsibilities and obligations related to prevention, control and mitigation during the construction and operation of the Crude Oil Pipeline. Funds disbursed by the Eco Fund will not be used to finance institutional activities of the requesting organizations.

Geographical Areas

The investment program of the Eco Fund includes the development of projects, training and scientific research related to the protected areas within OCP construction zone (Antisana Reserve, Protector Forest of River Guayllabamba High Basin and Protector Forest Mindo-Nambillo); as well as the Northern and Central areas of the Amazon Region (zones related to oil exploitation in the provinces of Sucumbíos, Napo, Orellana and the western part of Pastaza).

Environmental projects in other areas of the country could eventually benefit from the Eco Fund, depending on the impact and importance, with a special emphasis on the Dry Forests areas.

Applications

The Eco Fund will finance conservation projects within the framework of sustainable development.

Selected areas management programs and sustainable production projects: The fund will participate in projects that shall strengthen the link between conservation, productive systems and economic benefits on the selected areas. Preference will be given to the enhancement of traditional productive practices, research for alternatives to the resources management, training of community park rangers, agriculture-forest programs, resources management plans, with emphasis to sustainable forest management.

Training: The Eco Fund will finance national awareness programs on biodiversity, development options (water, species, forests); promotion of environmental laws, training for local people and communities for the sustainable management of natural resources. The objective is to enhance the knowledge of the population about biodiversity’s value and its management.

Scientific Research: The Eco Fund will finance biological, social and economic projects that contribute to the knowledge and management of biodiversity. It will include scholarships for pre-graduate and post-graduate students. It will also finance the publishing of research works financed by the Eco Fund, existing research or periodical publications about conservation and development.

The following environmental NGOs participated in the dialogue process for the creation of the Eco Fund:

Fundación Natura; Ecociencia; Ambiente y Sociedad; Ceda; Cecia; Birdlife International; Fundación Maquipucuna; Comité Ecológico del Litoral; and Universidad San Francisco de Quito.

The negotiation process was directed by former Environment Minister Yolanda Kakabadse, from Fundación Futuro Latinoamericano,. Dr. Roberto Troya, representative of International NGO The Nature Conservancy, was the advisor to the negotiators and promoters all along the process. The parties were represented by Bernardo Tobar, from OCP Ecuador S.A.; Cornelio Marchán, and Miguel Pellerano, on behalf of NGOs.

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As of 2017-12-15 16:03. Minimum 15 minute delay