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Stepping Towards
       Self-Sufficiency:
       An Indigenous Economic Development Plan
       Interim Report of the IDB/CANTAP Development Program in the Peruvian Amazon. June 1999




    Confederación de Nacionalidades Amazónicas del Perú – CONAP

                                                               Prepared by




                                                             Wayne Dunn &
                                                             Associates Ltd.

                                                                    And


Confederación    de    Nacionalidades
Amazónicas del Perú – CONAP

Jirón Brigaidier Pumacahua 974
Jesús María, Lima 11, PERU

Telefax: 511.423.8391
                                                              R.J. Burnside
Email: conap@telematic.com.pe                             International Limited
Stepping Towards Self-Sufficiency                                                                                                                       Page i
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)


Table of Contents


1      EXECUTIVE SUMMARY .........................................................................................................................1
    1.1 BACKGROUND ............................................................................................................................................1
    1.2 PROGRESS ON THE PROJECT WORKPLAN .....................................................................................................1
       1.2.1 Project planning and initial mission .................................................................................................1
       1.2.2 Capacity development.......................................................................................................................2
       1.2.3 Development of commercial activities ..............................................................................................3
       1.2.4 Development Projects .......................................................................................................................5
       1.2.5 Legal Analysis...................................................................................................................................6
       1.2.6 Mission to Canada ............................................................................................................................6
       1.2.7 Signing of Cooperation Agreements .................................................................................................7
2      INTRODUCTION .......................................................................................................................................9
    2.1 REPORT STRUCTURE ..................................................................................................................................9
    2.2 THE PROJECT .............................................................................................................................................9
    2.3 BACKGROUND ............................................................................................................................................9
       2.3.1 Project Origins .................................................................................................................................9
       2.3.2 CONAP ........................................................................................................................................... 10
       2.3.3 Consulting Team ............................................................................................................................. 11
       2.3.4 Inter-Indigenous Partnerships ........................................................................................................ 11
3      OVERVIEW OF RESULTS AND CHALLENGES ............................................................................... 13
    3.1 RESULTS AND ACCOMPLISHMENTS .......................................................................................................... 13
    3.2 CHALLENGES ........................................................................................................................................... 17
       3.2.1 Lack of salary for CONAP leadership ............................................................................................ 17
       3.2.2 Language capacity of the consulting team...................................................................................... 17
       3.2.3 Legislative review/development process ......................................................................................... 17
       3.2.4 Project-centric training and capacity development process ........................................................... 18
       3.2.5 New and innovative approach to indigenous development ............................................................. 18
       3.2.6 Plethora of opportunities ................................................................................................................ 18
4      PROGRESS ON THE PROJECT WORK PLAN .................................................................................. 19
    4.1 TASK SET 1 – PREPARATORY WORK, PROJECT PLANNING AND INITIAL MISSION .................................... 19
       4.1.1 Meeting/co-ordination of the Consulting Team .............................................................................. 20
       4.1.2 Workplan ........................................................................................................................................ 20
       4.1.3 Project Meetings ............................................................................................................................. 24
       4.1.4 Selection of Accounting Firm ......................................................................................................... 25
       4.1.5 Training CONAP on Computer and Accounting Systems ............................................................... 25
       4.1.6 Administrative Capacity and Support ............................................................................................. 26
       4.1.7 Working with CONAP Regional Offices ......................................................................................... 26
       4.1.8 Project Reports ............................................................................................................................... 27
    4.2 TASK SET 2 – DEVELOPMENT OF STRATEGIC PLAN FOR OPERATIONS...................................................... 27
    4.3 TASK SET 3 – ADMINISTRATION AND FINANCIAL TRAINING .................................................................... 27
    4.4 TASK SET 4 – DEVELOPMENT OF COMMERCIAL ACTIVITIES .................................................................... 28
       4.4.1 Mini hydro electric power generation ............................................................................................ 28
       4.4.2 Camisea related opportunities ........................................................................................................ 29
       4.4.3 De-mining opportunities ................................................................................................................. 31
       4.4.4 Tourism ........................................................................................................................................... 33
       4.4.5 Arts and crafts (Marotishobo) ........................................................................................................ 34
       4.4.6 Transportation Services .................................................................................................................. 35

R.J. Burnside International Limited                                                                                                                 June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                                                                                    Page ii
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)


       4.4.7 Development services in the border area ....................................................................................... 36
       4.4.8 Educational program delivery/International Indigenous University .............................................. 37
       4.4.9 National Park Development ........................................................................................................... 38
       4.4.10   Geographical Information Systems and Remote Sensing ........................................................... 38
       4.4.11   Forestry & non-timber forest products ...................................................................................... 39
       4.4.12   Services to petroleum and mineral exploration .......................................................................... 40
       4.4.13   Environmental Services .............................................................................................................. 41
       4.4.14   Sectoral and Regional Opportunities ......................................................................................... 42
    4.5 TASK SET 5 – DEVELOPMENT OF PROJECTS ............................................................................................. 43
       4.5.1 Development and Peace ................................................................................................................. 44
       4.5.2 Inter-American Foundation Project ............................................................................................... 44
       4.5.3 Neegan International Partnership .................................................................................................. 44
       4.5.4 Canadian International Development Agency ................................................................................ 44
       4.5.5 Foncodes......................................................................................................................................... 44
       4.5.6 Border area projects ....................................................................................................................... 44
       4.5.7 Investment promotion mission and seminar ................................................................................... 45
    4.6 TASK SET 6 – COMMERCIALIZATION OF PRODUCTS AND SERVICES ........................................................ 45
    4.7 TASK SET 7 – LEGAL ANALYSIS ............................................................................................................... 45
       4.7.1 World Bank: Operational Directive 4.30 – Involuntary Resettlement .......................................... 46
       4.7.2 World Bank: Operational Directive 4.20 – Indigenous Peoples .................................................. 46
       4.7.3 IDB: Community Consultation, Sustainable Development ............................................................. 46
       4.7.4 IDB: Operational Directive 710 – Involuntary Resettlement ........................................................ 46
       4.7.5 ILO: Convention 169 ...................................................................................................................... 47
       4.7.6 UNCED: Chapter 26, Agenda 21 .................................................................................................. 47
       4.7.7 UN Declaration on the Rights of Indigenous Peoples (Draft) ........................................................ 47
       4.7.8 OAS Declaration on the Rights of Indigenous Peoples (Draft) ...................................................... 48
       4.7.9 National Laws ................................................................................................................................. 48
    4.8 TASK SET 8 – MISSION TO CANADA ......................................................................................................... 48
       4.8.1 Meetings with Indigenous businesses ............................................................................................. 49
       4.8.2 Meetings with Indigenous Institutions ............................................................................................ 49
       4.8.3 Meetings with resource companies ................................................................................................. 49
       4.8.4 Meetings with Federal and Provincial government officials .......................................................... 50
       4.8.5 Other meetings and activities ......................................................................................................... 50
       4.8.6 Expanding the Mission ................................................................................................................... 50
    4.9 TASK SET 9 – SIGNING OF COOPERATION AGREEMENTS .......................................................................... 50
       4.9.1 University of Washington ............................................................................................................... 50
       4.9.2 Neegan International ...................................................................................................................... 51
       4.9.3 Anecomsa ........................................................................................................................................ 51
       4.9.4 Lagunas – Lac La Ronge twinning agreement ............................................................................... 51
       4.9.5 International Indigenous University/SIFC ..................................................................................... 52
       4.9.6 Miraflores Chamber of Commerce ................................................................................................. 52
       4.9.7 Inter-Indigenous Partnerships ........................................................................................................ 52
    4.10    TASK SET 10 – FINAL REPORT ............................................................................................................. 52
5      CHANGES TO CONSULTING TEAM .................................................................................................. 53




R.J. Burnside International Limited                                                                                                               June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                                      Page iii
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)




Disclaimer
This report was prepared by Wayne Dunn & Associates Ltd. and R. J. Burnside International Limited for
Confederación de Nacionaes Amazónicas del Perú. The material in it reflects best judgement in light of the
information available at the time of preparation. Any use which a third party makes of this report, or any
reliance on or decisions made based on it, are the responsibilities of such third parties. Wayne Dunn &
Associates Ltd. and R. J. Burnside International Limited accepts no responsibility for damages, if any, suffered
by any third party as a result of decisions made or actions based on this report.

Confederación de NacionalidadesAmazónicas del Perú (CONAP)
Jirón Brigaidier Pumacahua 974, Jesús Maria, Lima 11, PERU
Telefax: 511.423.8391
Email: conap@telematic.com.pe

Wayne Dunn & Associates Ltd.
2457 Bakerview Road, Mill Bay, BC, VOR 2PO, CANADA
Phone: +1.250-743-7619
Fax: +1.250-743-7659
Email: info@waynedunn.com

R.J. Burnside International Limited
15 Townline, Orangeville, Ontario, L9W 3R4, CANADA
Phone: 519-941-5331
Fax: 519-941-8120
Email: info@rjburnside.com




R.J. Burnside International Limited                                                                  June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                            Page 1
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)



1        EXECUTIVE SUMMARY
This report covers the project from its inception in late 1998 and includes activities and
accomplishments to May 31, 1999.

1.1    Background

The Inter-American Development Bank’s (IDB) Indigenous community development program for La
Confederación de Nacionalidades Amazónicas del Peru (CONAP) represents a new and innovative
approach to indigenous development. This project, which is largely financed by the Canadian
Technical Assistance Program (CANTAP) focuses on institutional and economic development;
assisting CONAP to move towards economic self-sufficiency and become more productive
participants in the Peruvian economy. A major focus of the project is the use of partnerships with
Canadian indigenous businesses to bridge technical gaps and concentrate on strategic business
development opportunities.

CONAP
CONAP is a representative organization of indigenous peoples in the Peruvian Amazon. CONAP has
a national office in Lima and regional offices and executive in various communities throughout the
Peruvian Amazon region.

Consulting Team
The consulting team is a collaboration between two Canadian firms, R.J. Burnside International
Limited and Wayne Dunn & Associates Ltd. The multi-disciplinary team brings together experts in
indigenous business and economic development, international development and partnership building.

Inter-Indigenous partnerships
A key strategic focus of the project is to link CONAP with Canadian indigenous businesses to
facilitate the sharing of successful business, economic and organizational development experiences.
During the preparatory phase of the current project, CONAP urged the IDB to facilitate partnerships
between CONAP and Canada’s Indigenous Peoples. Canadian Indigenous Peoples have developed
successful businesses in all sectors of the economy and have expertise in connecting business
development with other social, community and organizational objectives. As well, Indigenous
Peoples in Canada have well-developed capacity in educational, social, cultural and political areas.
Building partnerships and sharing experiences between CONAP and Canadian Indigenous Peoples
will assist CONAP to capitalize on development and economic opportunities and will provide new
opportunities and experiences for their Canadian partners.

1.2    Progress on the project workplan

1.2.1 Project planning and initial mission
The initial stages of the project involved working with CONAP to assess organizational capacity and
identify training and development needs. The project, which is being carried out by R.J. Burnside
International Limited and Wayne Dunn & Associates Ltd., both of Canada, then worked with
CONAP to develop a ‘project-centric’ approach to capacity and institutional development. This


R.J. Burnside International Limited                                                       June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                              Page 2
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)


method focuses on learning by doing. Training and capacity development occurs while working on
real business and economic projects. This allows new skills to immediately be put to practical use,
rather than developing new skills in a classroom setting and then attempting to apply them in real-life
settings later. The project-centric approach is more difficult and time consuming to initiate, but
experience in Canada has proven that it creates more sustainable, long-term organizational and
operational capacity.

The highlights of the initial mission were:

   Development of a good collaborative working relationship between CONAP and the consulting
    team.
   The establishment of a partnership between CONAP and Neegan International, an indigenous
    business from Canada. This partnership was announced at a high profile press conference at the
    Canadian Embassy in Lima
   The operationalizing of CONAP’s Lima office,
   A visit to CONAP regional centres of Iquitos, Lagunas and Pucallpa/Yarinacocha
   Identification of a number of project and business opportunities.
   Hosting of a Peru-Canada Indigenous Business Development Seminar
   Facilitation of discussions with the Miraflores Chamber of Commerce
   Purchase and installation of a computer system for CONAP’s offices
   Initiate training in computer operation, administration and financial procedures. This included
    computer orientation sessions held in the regional centres.
   Workshops on indigenous business development and Canada’s indigenous business development
    experience
   Development of a process for selecting an accounting firm

1.2.2    Capacity development

Progress has been made on enhancing CONAP’s organizational and operational capacity. As noted
earlier, a decision was made to focus this process around meaningful projects, which will result in
slower, but ultimately more sustainable progress in this area. A major thrust of the implementation of
the capacity development strategy has been the identification and advancement of business and
project opportunities in order to provide a focus for training efforts. As the following sections
indicate, substantial progress has been made in project development.

In late May CONAP, the IDB and the consulting team met to evaluate the project and progress made
in capacity development. They agreed that the consulting team would need to increase their hands-on
support for CONAP’s operations during the next several months in order to better address CONAP’s
project development, training and capacity development needs. Arrangements have been made for
one member of the consulting team to have an extended presence in CONAP’s office, providing extra
hands-on support in these areas.

The consulting team and CONAP have identified several areas that will be addressed in a strategic
operations and procedures manual. This item will be advanced and completed during the extended
presence in CONAP’s offices. Other items that will be addressed during this period include:

        Administration and financial training


R.J. Burnside International Limited                                                          June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                               Page 3
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)


        Project development and management
        Office practices
        Partnership development
        Computer training
        Other priorities as identified by CONAP

The entire consulting team will remain available via email and telephone to assist with this process.

1.2.3    Development of commercial activities

A major focus of the consulting team’s work to date has been the identification and development of
commercial opportunities. Beginning with the partnership with Neegan and continuing through the
identification of thirteen specific commercial opportunities, the development of strategies and action
plans for each, and the identification of potential Canadian indigenous partners, the project has laid
the foundation for CONAP to take major strides towards economic self-sufficiency. The body of the
report presents background information, summary of work completed, a development strategy and an
action plan for each of the following commercial opportunities.

1. Mini hydro electric power generation – There is an opportunity to utilize state of the art mini
   hydro electric power generation technology to supply many communities that are now serviced
   by more expensive diesel generated electricity. A potential partner has been identified and a pilot
   site located.
2. Camisea related opportunities – Development of the Camisea gas field will result in billions of
   dollars in contract and business opportunities. Canadian indigenous businesses with expertise in
   supplying goods and services to oil and gas projects are ready to work with CONAP to develop
   business opportunities with the Camisea project.
3. De-mining opportunities – The Peru-Ecuador peace agreement has created the need for huge
   areas of the border area to be cleared of anti-personnel mines. Canada is a world leader in the
   promotion of demining activities. A Canadian indigenous firm with expertise in demining is
   interested in working with CONAP to secure demining contracts in the region.
4. Tourism development – The Amazon region is known worldwide for its tourism potential.
   Indigenous peoples have a strategic advantage in developing new tourism products because the
   fastest growing sector of the tourism industry is eco-cultural tourism. Although many parties
   have been identified who are interested in working with CONAP to develop specific
   opportunities, it is recommended that a comprehensive indigenous tourism strategy be developed.
   This would allow for systematic development of the industry in a manner that will maximize
   benefits to local indigenous peoples.
5. Arts and Crafts – The Shipibo Peoples are well known for their arts and crafts ability. They
   have operated an arts and crafts business in Pucallpa/Yarinacocha for nearly 25 years. They have
   demonstrated remarkable commitment, sticking with the business through many difficult times.
   Currently there are several local issues that need to be addressed and then a detailed business plan
   developed that will chart a course towards financial self-sufficiency for the operation.
6. Transportation services – The current transportation infrastructure and services in the entire
   region will need to be upgraded to accommodate the new business and investment the region is
   expecting. Transportation has proven to be an attractive and profitable sector for Canadian


R.J. Burnside International Limited                                                           June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                               Page 4
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)


    indigenous businesses, with successful operations in air, marine, surface, construction and other
    aspects of the industry. A systematic review of this sector could identify significant opportunities
    to work with Canadian or other interests and participate productively in upgrading the system.
7. Development services in Peru-Ecuador border area – The peace agreement has stimulated
   significant international interest in the border area. The World Bank and the IDB have both
   pledged USD$500 million to development programs in the area. Other nation states and
   development agencies are also planning activities in the area. CONAP, with its connection to
   local peoples and knowledge of the area, could be a strategic partner and/or promoter of many of
   the projects.
8. Educational program delivery/International Indigenous University – The Saskatchewan
   Indian Federated College (SIFC) has been delivering Spanish educational programs in remote
   areas for a number of years. They have recently begun developing an International Indigenous
   University. SIFC wants to meet with CONAP and explore opportunities for collaborating in the
   new University and for ongoing program development and delivery.
9. National Park Development – The World Bank has announced USD$20 million in financial
   support for the development of four new National Parks in Peru. One will be located in the Peru-
   Ecuador border region. Through partnerships with Canadian and other interests, CONAP can add
   technical expertise to its base of local knowledge and be in an excellent position to secure
   contracts related to the development of the Parks.
10. Geographical Information Systems and Remote Sensing – GIS and Remote Sensing
    technology is the most efficient and effective technology for dealing with many of the unresolved
    land and demarcation issues in the Peruvian Amazon region. As well, increasing interest in
    mineral and petroleum resources in the area is fueling the demand for more and better
    geographical and geological information. A Canadian indigenous firm with expertise in GIS and
    Remote Sensing wants to work with CONAP to develop a business in this sector.
11. Forestry and non-timber forest products – The Amazon region holds vast reserves of timber
    and is a virtual treasure of non-timber forest products (i.e. medicinal plants, teas, etc.). Even
    though the lands are traditional indigenous territories, Indigenous Peoples are, at best, marginal
    players in these industries. At least one existing company that is active in using local plants for
    teas has expressed interest in working with CONAP on this opportunity. The full range and
    extent of the opportunities represented by forestry and non-timber forest products is not well
    known, nor is it known what sustainable harvest/yield levels are. The project recommends
    conducting participatory research to create a sustainable forest usage strategy and opportunity
    identification study. After this research is completed various strategies, including joint venture,
    can be utilized to pursue the most promising opportunities.
12. Services to petroleum and mineral exploration – Peru is home to two of the world’s major
    resource development projects; the aforementioned Camisea project and the USD$2.2 billion
    Antamina mining project. Attracting new investment into these sectors is a key component of the
    national governments economic development strategy. Numerous firms from Canada and other
    countries are actively exploring for petroleum and mineral resources throughout the Amazon
    region of Peru. This represents a significant business opportunity and one that Canadian
    indigenous peoples have a plethora of experience in.
13. Environmental services – The Amazon region is known as one of the most environmentally
    sensitive regions in the world. Increasing settlement, resource development and other activities
    are creating many opportunities to supply environmental management, monitoring and other


R.J. Burnside International Limited                                                           June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                              Page 5
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)


    services. Indigenous peoples are recognized throughout the world for their environmental
    stewardship and sensitivity. Indigenous businesses in Canada have developed expertise in
    providing many environment related business services and are interested in working with
    CONAP to establish businesses in this sector.
14. Sectoral and regional opportunities – There are many regional and sectoral opportunities for
    business and commercial projects in the Amazon region. Rice production, Jute, Silkworm
    production, forestry, fishing, coffee production, medicinal plants, and banana production are
    some that have been discussed and identified. Many of these opportunities have entrepreneurs
    and organizations ready to develop them further. The consulting team will work with them to
    assist in further development and commercialization of these opportunities.


1.2.4    Development Projects


In addition to the commercial projects detailed in the previous section, the consulting team has been
working with CONAP to identify and develop projects of a more developmental nature and to assist
with ongoing CONAP projects. Details on the following projects are contained in Section 4.5 of this
report.


1. Development and Peace – This is an ongoing, Canadian funded, project to assist in reviewing
   laws related to indigenous peoples and petroleum exploration.
2. Inter-American Foundation (IAF) – A proposal was submitted to the IAF to assist CONAP
   with additional training, and organizational development. The IAF has refocused its program and
   is no longer supporting this type of project. However, they did agree to give priority
   consideration to providing up to $500,000 towards developing one of the business opportunities
   noted earlier – provided that a comprehensive business plan was in place.
3. Neegan International Partnership – As noted earlier, the consulting team facilitated a
   partnership between CONAP and Neegan International, a Canadian indigenous company with
   expertise in business development. The partnership has contributed greatly to the advancement of
   the commercial opportunities discussed earlier.
4. Canadian International Development Agency (CIDA) – A proposal is being developed for
   submission to CIDA to secure the resources for expanded support to CONAP’s economic
   development efforts.
5. FONCODES – A number of potential FONCODES projects have been discussed, with several
   focusing on municipal water systems and waste management. The consulting team will continue
   working with FONCODES and CONAP to advance these discussions and develop a project
   proposal.
6. Peru-Ecuador Border Area Projects – The aforementioned programs and projects for the
   border area will create project opportunities that are consistent with CONAP’s developmental
   priorities. Initial meetings have been held with IDB officials in this regard. Further investigation
   of this opportunity is required.
7. Investment Promotion Mission and Seminar – Consideration is being given to identifying
   additional resources in order to expand CONAP’s upcoming mission to Canada; allowing more


R.J. Burnside International Limited                                                          June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                             Page 6
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)


    CONAP participation and enabling visits to more than one region of Canada. As well, the IDB
    has offered to host a Round Table in Washington, DC to promote CONAP’s projects and
    facilitate greater interaction between CONAP and Washington based development projects.


1.2.5    Legal Analysis


The consulting team conducted an identification and initial review of international directives and
declarations that had potential impact on CONAP’s development aspiration. The following were
identified as key instruments:
1. World Bank: Operational Directive 4.30 – Involuntary Resettlement
2. World Bank: Operational Directive 4.20 – Indigenous Peoples
3. IDB: Community Consultation, Sustainable Development
4. IDB: Operational Directive 710 – Involuntary Resettlement
5. ILO: Convention 169
6. UNCED: Chapter 26, Agenda 21
7. UN Declaration on the Rights of Indigenous Peoples (Draft)
8. OAS Declaration on the Rights of Indigenous Peoples (Draft)

A short discussion on key aspects of each is contained in Section 4.7. A local legal expert, Mercedes
Manriquez, with extensive background in indigenous issues and a good working relationship with
CONAP, was retained to undertake a more thorough review of these international instruments and
national laws.

The consulting team also conducted a review of AYUDA MEMORIA, which is the framework for a
larger set of negotiations between Indigenous Peoples and petroleum companies in Peru. This
analysis directed CONAP’s attention to a number of deficiencies in the framework and assisted with
their involvement in the process.

1.2.6    Mission to Canada

Extensive work has gone into preliminary preparations for CONAP’s upcoming mission to Canada.
During the visit, CONAP will be exposed to some of Canada’s leading indigenous businesses and
institutions. Many of these are interested in discussing specific partnership opportunities with
CONAP. Some of the planned activities include:

1. Indigenous businesses – there will be meetings with, and site visits to, many of the businesses
   that are interested in partnering with CONAP on the specific opportunities noted earlier. Site
   visits have also been arranged with several.
2. Indigenous institutions – meetings have been set up with indigenous governmental, service
   delivery and educational institutions. Site visits have also been arranged with many.



R.J. Burnside International Limited                                                        June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                             Page 7
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)


3. Resource companies – CAMECO, a Canadian based mining company that purchases over $100
   million per year in goods and services from Canadian indigenous businesses, will host CONAP
   and discuss their work with indigenous peoples and how it adds value to their operations.
4. Federal and Provincial government officials – meetings have been arranged with key officials
   of the provincial and federal governments.
Other activities and media events will be planned after further consultation with CONAP. As noted
earlier, there is a potential to expand the scope of the mission to enable visits to other regions of
Canada and meetings in Washington, DC.


1.2.7    Signing of Cooperation Agreements


The consulting team has worked with CONAP to build on CONAP’s existing cooperation and
agreements and to identify new opportunities for strategic cooperation and collaboration. Some of
these include:
1. University of Washington – CONAP has a long-standing relationship with the University of
   Washington. The consulting team is working with CONAP to identify opportunities to build on
   this established relationship.
2. Neegan International
    On February 5, 1999, at a high profile press conference at the Canadian Embassy in Lima,
    CONAP signed a Memorandum of Agreement with Neegan International, an Indigenous owned
    business from Canada, to collaborate in enabling Indigenous peoples to participate more
    productively in the Peruvian economy. The collaboration will focus on:

        The creation and execution of a comprehensive economic development strategy for CONAP
         and its member regions.
        Facilitating linkages and sharing of experiences between CONAP, its member communities,
         and Canadian Indigenous organizations involved in social, cultural, educational and business
         development.
        Encouraging the governments of Peru and Canada to collaborate and share experience on
         indigenous business and economic development.

    This agreement has already produced many of the commercial and other project opportunities
    identified in earlier sections of this report.



3. Anecomsa – Anecomsa is a Peruvian indigenous organization working with communities in the
   Andean region of the country. They are also receiving technical support and financial assistance
   from the IDB. CONAP and Anecomsa have signed an agreement to collaborate in the execution
   of the IDB projects.
4. Lagunas – Lac La Ronge Community Twinning – During the visit to Lagunas the local Mayor
   asked CONAP for assistance in setting up a twinning arrangement with a Canadian indigenous
   community. After reviewing expectations and community criteria with CONAP, the consulting

R.J. Burnside International Limited                                                        June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                              Page 8
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)


    team has identified a community – Lac La Ronge Indian Band. Lac La Ronge has expressed
    strong interest and is looking forward to moving this project forward.
5. International Indigenous University – As noted earlier, the Saskatchewan Indian Federated
   College wishes to collaborate with CONAP in the development and delivery of educational
   programs and to explore possible CONAP involvement in the creation of an International
   Indigenous University.
6. Miraflores Chamber of Commerce – Meetings were held with the President and other
   representatives of the Chamber. As well, Chamber representatives attended the Peru-Canada
   Indigenous Development Seminar that CONAP hosted. The Chamber expressed interest in
   building a closer relationship with CONAP and in identifying specific opportunities for
   collaboration.
7. Inter-Indigenous Partnerships- as noted earlier, the consulting team has identified numerous
   indigenous businesses and institutions that are interested in developing commercial and
   development projects with CONAP.


The following sections contain detailed information on the aspects of the project discussed above.




R.J. Burnside International Limited                                                          June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                               Page 9
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)




2     INTRODUCTION

2.1     Report Structure

This report is written to provide background information on the project and key participants, and to
present a summary of project activities and progress made to May 31, 1999. This is an interim report
and will be updated to incorporate comments and developments as the project progresses.

Background information on the project, key participants and on inter-indigenous partnerships is
provided in Section 2. Section 3 highlights the overall approach to the project and identifies
accomplishments and challenges. Section 4 contains an item by item review of progress on project
tasks and provides detailed information on potential business and economic projects. As well, a
development strategy and itemized workplan is presented for each commercial and business
opportunity listed. Section 5 discusses some changes to the consulting team makeup.

A package of supporting and background materials has been prepared and provided to CONAP and
the IDB under separate cover.

2.2     The Project

The overall objective of the project is to increase CONAP's ability to participate constructively in the
Peruvian economy and to enhance CONAP’s institutional capacity to provide business and economic
development, and other support services to indigenous communities of the Peruvian Amazon region.
The project team is collaborating with CONAP to achieve this objective by assisting with work
planning, training and human resources development, partnership building and identifying and
developing economic and development project opportunities.

The three main components of the project are:

A. The institutional strengthening of CONAP, (a project focused capacity development approach
   that includes collaboration with Canadian indigenous businesses and institutions)
B. Increased constructive participation in the Peruvian economy through the strategic development
   of collaboration with the private sector and improving access to national and international
   funding institutions, and
C. Improving CONAP’s capacity to support the economic development aspirations of indigenous
   communities in the Amazon (with a focus on identifying and developing specific opportunities
   i.e. marketing of products and services and strategic participation in key areas of the local
   economy (tourism, resource development, etc.)



2.3     Background

2.3.1    Project Origins



R.J. Burnside International Limited                                                           June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                            Page 10
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)


This project has its origins in meetings between the Canadian Executive Director’s office at the IDB
and Mr. Bernardo Guillamon, a Micro-Enterprise Specialist with the IDB and in Apikan Indigenous
Network’s pioneering work on inter-indigenous partnerships. These meetings spawned a preparatory
assistance project, which was financed by the Canadian Technical Assistance Program (CANTAP).
The project, which was executed by Apikan, also designed the projects and developed terms of
reference for the CONAP project and for two other indigenous development projects in Peru. The
Canadian government, through the CANTAP program, is financing the costs of the consulting team
that is assisting CONAP to execute the project. The IDB has provided financial assistance for
CONAP to cover project costs and is administering the CANTAP funds as well.

2.3.2    CONAP

The Confederation of Amazon Nations of Peru (CONAP), is a representative organization of
indigenous peoples in the Peruvian Amazon. CONAP has a national office in Lima and regional
offices and executives in various communities throughout the Peruvian Amazon region.

CONAP’s organizational focus addresses the need for sustainable cultural and economic self-
determination and maintaining their political identity. The organization strives to reach these goals
by claiming larger control on their lands and natural resources, increasing participation in the
national, regional and local political and economic arenas and by developing a strong organizational
system. CONAP maintains linkages with other Indigenous Peoples throughout the Americas and
around the world, working in solidarity to support cultural, economic and political objectives.

CONAP, with the participation of their individual members, national leaders, professionals and the
cooperation of diverse national and international institutions seeks to develop and promote actions in
the following basic areas:

   Defense and Organizational Consolidation
   Capacity Building within Individuals for Management of the organization
   Human rights
   Promotion of Women's Rights
   Environmental Protection and Sustainable Development of the Amazon
   Invigoration of the Productive Capacity of the Communities
   Diffusion and Communication of Information

The organization of CONAP is divided into four unique sections.

1. National Congress of CONAP - the highest authority of the Organization and is composed of all
   the associate members. The members have the rights to speak and vote at the sessions of the
   National Congress.
2. National Directive Council - is composed of President, Vice President, Secretary of Economy,
   Secretary of Records and Files, Secretary of Defense, Secretary of Organization, Secretary of
   Communications, Secretary of Training and Culture, Secretary of Feminine Matters, Secretary of
   Health, Secretary of Production and Commercialization and Secretary of Sports.
3. Advisory Board - guides CONAP in its operation with recommendations from elders and
   appointed members of the advisory committee.


R.J. Burnside International Limited                                                         June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                             Page 11
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)


4. Regional Headquarters - provides leadership to the regional communities by means of
   administration and economic leadership.

2.3.3    Consulting Team

The consulting team assisting CONAP is a collaborative effort between RJ Burnside International
Limited and Wayne Dunn & Associates Ltd., both of Canada. The multi-disciplinary team brings
together a broad set of skills, including strong expertise in indigenous business and international
development.

2.3.4    Inter-Indigenous Partnerships

In addition to cultural and lifestyle similarities, Indigenous Peoples throughout the Americas have
shared many comparable experiences during the five hundred years since Columbus first landed.
Loss of traditional lands and livelihoods, colonialization, economic and social marginalization, and
attempts at cultural extinction are some of the common elements of the history of Indigenous Peoples
throughout the hemisphere. Despite these experiences, indigenous culture and identity remains strong
and Indigenous Peoples are beginning to share new, more positive experiences; assisting each other to
achieve development objectives.

Many of Canada’s Indigenous Peoples have begun to focus on business and economic development,
seeking to become more productive participants in the Canadian economy and to gain increased
control over their own destinies. Over the past ten years this has produced a virtual explosion in
indigenous business development with thousands of businesses, operating successfully in every sector
of the Canadian economy. At the same time indigenous peoples have been developing the political
and institutional capacity to assume increasing control of the institutions and agencies that are daily
parts of their lives.

Canadian Indigenous peoples lead the world in Indigenous business development and have developed
expertise in developing business in ways that are supportive of cultures and communities. Latin
American Indigenous peoples often have access to business opportunities, but lack the financial and
technical capacity to take full advantage of them. Indigenous peoples in Latin America have strong
families and communities and are not besieged by many of the social issues that are plaguing many
North American Indigenous Peoples. Facilitating the development of partnerships and linkages
between Indigenous Peoples throughout the Americas can help to address many of the pressing social
and economic issues they are facing.

The experiences of Canada’s Indigenous Peoples provide a huge pool of development expertise that
can collaborate with other Indigenous Peoples who have not yet had the same development
experiences. Inter-Indigenous Partnerships in which Indigenous peoples in Canada and their
counterparts in other areas of the world share experience, capacity and learning are a promising
development strategy. These partnerships offer a number of specific advantages for all concerned
(Canadian Indigenous Peoples, Indigenous Peoples from Latin America and elsewhere in the world,
Development agencies and institutions, private sector firms operating in the vicinity or Indigenous
peoples, Nation States, etc.). The partnerships can facilitate sharing of relevant experiences, help to
bridge capacity gaps, support institutional development and promote meaningful indigenous
participation in resource development and other business projects.


R.J. Burnside International Limited                                                          June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                              Page 12
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)


The natural resource sector (Mining, Oil & Gas, and related activities such as pipeline construction) is
a fertile sector for the development of inter-indigenous partnerships between Canada and Peru.
Indigenous businesses in Canada have a plethora of experience in providing goods and services to the
resource industry. Indigenous peoples in Peru live on lands where companies from Canada and
around the world are exploring for and developing resources. Resource companies are often
searching for new and constructive ways of involving Indigenous peoples in resource development
projects. However, CONAP, like many Indigenous organizations, lacks the technical and financial
capacity to assist their people to capitalize on these opportunities. Linking resource based Canadian
Indigenous businesses together with Indigenous peoples from the Peruvian Amazon region will result
in the development of inter-Indigenous partnerships that will produce meaningful and sustainable
benefits for all concerned.




R.J. Burnside International Limited                                                           June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                              Page 13
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)




3     OVERVIEW OF RESULTS AND CHALLENGES

The initial stages of the project focused on working with CONAP to identify strengths, weaknesses,
project opportunities and project execution strategies. There was little interest in training people who
would then have no project or activity on which to apply their new skills. An early decision was
reached to avoid training and capacity development in a projectless vacuum and instead, to
strategically focus the capacity development around actual opportunities and issues. CONAP and the
consulting team felt that this opportunity-centric approach would serve to anchor the training and
development in meaningful projects and activities, thereby increasing the relevance of the learnings
and producing more sustainable results. They recognized that this approach would result in more up-
front time and a slower start to the project. However, they agreed that the increased ability to produce
long term, sustainable benefits far outweighed any issues that may arise from a slower project launch.

3.1    Results and Accomplishments

Key results, grouped according to the projects main components, are summarized below. A more
detailed documentation of results is contained in the Section 4.

A. The institutional strengthening of CONAP, (a project focused capacity development approach that
includes collaboration with Canadian indigenous businesses and institutions)

Institutional strengthening – at the request of CONAP, an inception mission was undertaken to
conduct an initial assessment of CONAP’s institutional and operational capacity and to discuss
execution strategies. Initial training focus has been on developing the skills to operationalize
CONAP’s offices and to begin to lay the groundwork for a more strategic approach to economic
development. In CONAP’s Lima office and in regional offices, specific training areas that were
initiated included; computer orientation and operation; project administration, business and economic
development strategy (focused on resource extraction and tourism), negotiations and project
management. In addition, the project team utilized a press conference at the Canadian Embassy as a
hands-on session in media relations training. It should be noted that the training to date has only
begun to address the issues and that ongoing training and skills development will be required.
Institutional strengthening is an ongoing process that will require continued focus for the life of this
project and beyond.

B. Increased constructive participation in the Peruvian economy through the strategic development of
collaboration with the private sector and improving access to national and international funding
institutions.

Economic development strategy, opportunity identification, and development – a key focus of
the Jan/Feb 1999 mission was laying the groundwork for the elaboration of an economic development
strategy and identifying opportunities to enable CONAP to take a more productive role in the
economy of the Peruvian Amazon region. Focus areas for the strategy included:

(a) Bridging technical and financial gaps
(b) Developing strategic partnerships and institutional collaboration
(c) Identifying and focusing on key opportunities

R.J. Burnside International Limited                                                           June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                           Page 14
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)



(a) Bridging technical and financial gaps
In order to bridge the technical and financial gaps that prevented CONAP from taking full advantage
of opportunities, it was decided to focus on internal capacity development and to develop an inter-
indigenous partnership with a Canadian indigenous business that had the necessary capacity, expertise
and access to resources. The consulting team facilitated an agreement with Neegan International, a
Canadian indigenous company headed by Mr. Ken Thomas, a Cree Indian from Saskatchewan,
Canada. Ken Thomas is one of the leading indigenous business people in Canada and, as the
Chairperson of Aboriginal Business Canada, played a catalytic role in facilitating the financing and
development of several thousand Canadian indigenous businesses.

A Memorandum of Agreement was negotiated between CONAP and Neegan and was signed in a
ceremony with the Canadian Ambassador. The agreement generated wide media coverage in Peru
and provides a cornerstone of CONAP’s economic development strategy. Additional details on the
agreement are contained in Section 4.9.2 of this report.

Workshops on indigenous business development and economic development strategies were held
with CONAP’s executive and membership in Lima, Iquitos, Lagunas, Pucallpa and Yarinacocha. The
improved understandings gained in these workshops, combined with previous CONAP activities in
the oil and gas sector, will form the basis for the creation of a strategically focused economic
development strategy. The workshops also served to identify several business and commercial
opportunities. These are discussed in more detail in Section 4.4 of this report.

Meetings have been held with the Inter-American Foundation (IAF), a development financing arm of
the United States, the Fondo Peru-Canada, Foncodes and other institutions regarding project
financing support. The Fondo Peru-Canada has approved a rice production project that will be
starting in September 1999. The IAF has agreed to give priority consideration to investing up to
$500,000 to support the development of a viable business, once a detailed business plan has been
completed. Foncodes has expressed interest in assisting with several projects.

The consulting team has completed an initial identification of key international instruments and
directives such as the International Labour Organization’s (ILO) Convention 169 on Indigenous and
Tribal Peoples. As well, the first phase of analysis has been completed. A final analysis and report
will be completed in the next several months. Additionally, the project commissioned a review of the
document AYUDA MEMORIA (#001-99-MEM/BM/MG). This document is a framework for much
larger negotiations between the indigenous people and the petroleum companies. The review proved
useful for CONAP’s involvement in the process. Detailed information on this work is contained in
Section 4.7 of this report.

(b) Developing strategic partnerships and institutional collaboration – in addition to the
aforementioned partnership between CONAP and Neegan significant progress has been made in
developing additional strategic partnerships and institutional collaboration.

Miraflores Chamber of Commerce – meetings were held with the President and representatives of
       the Chamber. A representative of the Chamber attended the public portion of the Peru-
       Canada Indigenous Business Development Seminar on Jan. 29. There is interest in exploring
       a range of potential business and collaboration opportunities including tourism development,
       non-timber forest products and other Amazon investment and development opportunities.


R.J. Burnside International Limited                                                        June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                          Page 15
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)


Additional partnerships with Canadian indigenous businesses – the partnership with Neegan
       International has identified eight strategic opportunities for collaboration with Canadian
       indigenous businesses. Potential partners have been identified to explore opportunities in;
       mini hydro, Camisea, de-mining, National Park development, linking educational institutions,
       environmental services, transportation and community twinning. Development work is
       ongoing to further explore these opportunities and build the partnerships. This is covered in
       more detail in Section 4 of this report.
Puerto Palmeras Tarapoto Resort – This resort is part of a chain of resorts operated by the
       Corporacion Turistica Amazonica S.A. As a result of meetings with the Miraflores Chamber
       of Commerce, a meeting was held with the owner of the Puerto Palmeras Tarapoto Resort to
       discuss the tourism industry and possible opportunities for collaboration with CONAP and its
       member organizations
Mushu S.A. Productos Naturales – this company produces teas and other natural non-timber forest
      products. A meeting was held to explore the potential of collaborating with CONAP to
      harvest and market Amazonian products.
Seminar on Trade and Investment in the Peruvian Amazon – Project team member Wayne Dunn
      was a speaker and panelist at a Peruvian government sponsored forum on Trade and
      Investment in the Peruvian Amazon, which was held at the Ronald Reagan International
      Trade Center in Washington, DC on March 4, 1999. This seminar, which was also attended
      by the Vice President of Peru and many Peruvian and international business people, provided
      an opportunity to communicate CONAP’s interest in developing business and economic
      collaboration with other institutions and firms.
Increased collaboration with the Inter-American Development Bank (IDB) – The Chief of
       Indigenous Peoples and Social Development at the IDB, has agreed to host a round-table
       discussion to promote CONAP’s economic aspirations and to facilitate increased interaction
       with other IDB projects and with other Washington based development institutions.
Canadian Embassy/Government – the Canadian Ambassador to Peru hosted the CONAP – Neegan
      signing ceremony and was a witness to the agreement. Various other departments and
      agencies of the Canadian government have expressed interest in collaborating with CONAP
Peruvian National Government/World Bank – CONAP has been supported (albeit in a limited way
       due to budgetary constraints) in its involvement in the development of new resource
       legislation for Peru and other developments that impact their lands. The consulting team has
       assisted with this by providing a review of significant documents and suggesting issues and
       strategies. A significant development is the World Bank/Government of Peru requesting
       CONAP’s involvement in the creation of a national park in the Peru/Ecuador border region.
Camisea and other resource development – The consulting team has worked with CONAP to
      develop a new, more constructive strategy for collaboration with Camisea and other resource
      development initiatives on CONAP’s lands. They plan to utilize strategic approaches such as
      the joint-venture strategy that has enabled Canada’s Lac La Ronge Indian Band to develop
      $40 million/year in business with local mining projects. CONAP has identified opportunities
      and business partners and is poised to capture significant business from Camisea and other
      projects, if they are able to secure implementation support. A major focus of CONAP’s
      mission to Canada in September/October 1999 will be to see first hand the Lac La Ronge and
      other successful Canadian indigenous businesses and to use this learning in developing
      Camisea related business opportunities.


R.J. Burnside International Limited                                                       June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                            Page 16
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)


Mission to Canada – a tentative plan has been developed for CONAP’s mission to Canada. The
       mission will focus on introducing CONAP to the operations of the potential Canadian
       indigenous partners (see Section 4 for details).     Additionally, the government of
       Saskatchewan and CAMECO, a major Canadian mining company, has agreed to participate
       in the mission.


(c) Identifying and focusing on key opportunities

CONAP is working with the consulting team to identify and focus on key opportunities that can make
a notable contribution towards long term economic self-sufficiency. To date fourteen commercial
opportunities have been identified and strategies created to develop them further. Examples include
the multi-billion dollar development of the Camisea gas field, the Peru-Ecuador border area which is
expecting billions of dollars in new development following the signing of the peace agreement,
tourism development, and infrastructure project opportunities. A second area of focus is on assisting
communities and local entrepreneurs to participate more productively in the existing local economy.
The consulting team has traveled to the regions with CONAP executives to begin the process of
identifying business opportunities, market potential and understanding the barriers that need to be
overcome for various communities and regions. Additional details on specific opportunities are
provided in Section 4.4.

C. Improving CONAP’s capacity to support the economic development aspirations of indigenous
communities in the Amazon (with a focus on identifying and developing specific opportunities i.e.
marketing of products and services and strategic participation in key areas of the local economy
(tourism, resource development, etc.)

As discussed in prior sections, excellent progress has been made on identifying specific economic
opportunities and outlining strategies to take advantage of them. Initial training and capacity
development efforts were undertaken, seeking to assist in developing key capacities and
understanding of business and economic development. These have included:

Operationalizing CONAP’s Lima office (basic office procedures, computer skills, filing,
       administration, etc.). Informal assessments were completed and initial aspects of the strategic
       plan of operations and the procedures manual were developed and implemented during this
       process. Computers were purchased and installed, staff training initiated, some manual and
       electronic reporting and recording forms were developed to enable CONAP staff and
       executive to improve key record keeping and information gathering activities. A selection
       procedure for engaging an accounting firm was developed; a number of firms submitted
       proposals and a series of interviews occurred. It is expected that CONAP will retain an
       accounting firm to implement a computerized financial accounting system and provide
       financial services and training in the near future. The consulting team has refocused the
       workplan to enable more resources to be dedicated to fully operationalizing CONAP’s offices
       in Lima.
Peru-Canada Indigenous Business Development Seminar – on January 29 a Peru-Canada
      Indigenous Business Development Seminar was held at the Canadian Cooperation Office in
      Peru. The seminar featured discussion on the business and economic experiences of
      Canadian Indigenous Peoples. The strong focus on natural resource development was of


R.J. Burnside International Limited                                                         June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                             Page 17
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)


         particular interest to CONAP’s membership and the various private sector and governmental
         representatives in attendance.
Business and economic development workshops were held in Lima, Iquitos, Pucallpa and Lagunas.
       There was a strong focus on strategic approaches to the issue and use was made of successful
       examples from Canada. The purpose of the workshops was to introduce new concepts and
       ideas such as the Canadian indigenous business development experience with joint-ventures,
       strategic targeting of opportunities, etc., to explain success stories (Lac La Ronge Band
       building a $40 million/year business) and to stimulate new ways of thinking about business
       and economic development.
Computer awareness/orientation training – in addition to conducting sessions for staff and
     executives in CONAP’s Lima office, the consulting team conducted several hands-on
     computer orientation sessions during the regional visits. For many in the regions it was the
     first time they had ever seen a computer.


3.2     Challenges

As with any innovative, groundbreaking project, this one has faced, and continues to face a number of
challenges. Some of these include:

3.2.1 Lack of salary for CONAP leadership
To be successful, this project must be a priority focus for CONAP leadership, occupying a
considerable share of their time. This is difficult as CONAP has no core funding and is not able to
give their executive and President a salary to enable them to provide for their families. The terms and
conditions of funding for this project specifically prohibit paying of CONAP salaries. It is a
testament to the dedication of CONAP’s leaders that they continue to be enthusiastically committed,
investing hundreds of volunteer hours in the project, despite the economic strain it puts on their
families. However, if project resources could be used for salaries the project would benefit greatly
from the increased time that the leadership could commit to it.

3.2.2    Language capacity of the consulting team

Some members of the consulting team had little or limited ability to communicate in Spanish.
Although this was largely overcome by having translators available, it did detract from the overall
communication process.

3.2.3    Legislative review/development process

Peru, with assistance for the World Bank is currently undertaking a major review of resource
extraction legislation. Part of the review process involves consultations with CONAP and other local
peoples. This provides an excellent opportunity to negotiate local/indigenous preferences for
constructive involvement in resource development activities. A small preference can provide a
strategic advantage for CONAP in its efforts to develop partnerships to supply downstream goods and
services to resource extraction projects. Canada’s Lac La Ronge Indian Band used a similar process
to develop a $40 million/year business in mining. Unfortunately, CONAP does not have the
resources or capacity to take full advantage of this opportunity. The consulting team does not have

R.J. Burnside International Limited                                                          June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                                Page 18
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)


the mandate or resources to adequately support CONAP in this process. An attempt was made by
commissioning a review of the document AYUDA MEMORIA (#001-99-MEM/BM/MG).

3.2.4    Project-centric training and capacity development process

As noted previously, this approach focuses on developing meaningful projects and activities and then
structuring training and capacity development around them. This strategy is more sustainable,
enables better overall learning, and assists in project development and overall progress towards
economic self-sufficiency. For example, rather than conduct a generic training program in
negotiations and then expect people to apply the new skills the next time they are in negotiations, a
negotiations training program will be developed around a specific negotiation (i.e. participation in a
particular resource project). This process is also more time consuming and thus more costly as
considerable additional research must be done to essentially provide advice on a particular set of
negotiations. However, CONAP and the consulting team felt it was the most appropriate way as not
only will more effective learning occur, but an actual project will be furthered in the process.

3.2.5    New and innovative approach to indigenous development

The approach being taken by this project focuses on developing real projects to address economic
marginalization and then structuring training and capacity development around these projects.
CONAP has overall responsibility for the success or failure of the project. Although this is much
slower and often more difficult than traditional approaches where the consultant plays a much more
central role in the clients operation, it will ultimately lead to a more sustainable result. Additionally,
the bridging of technical and capacity gaps through partnerships with Canadian indigenous businesses
is also a process that, while it offers significant long-term economic payoff, requires large upfront
investments of time and resources to identify and screen potential partners and to facilitate initial
discussions and partnership development.

3.2.6    Plethora of opportunities

CONAP faces a plethora of exciting and substantial opportunities, many of which can produce long
term economic benefits. It requires a considerable investment of time and resources to work with
CONAP to prioritize and rank those opportunities that will offer the best probability of success,
providing the groundwork for the development of an economic base for CONAP and its member
communities. We expect that this project can be a precursor to additional initiatives that will make a
long term, sustainable difference and chart a new course for indigenous development.




R.J. Burnside International Limited                                                             June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                            Page 19
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)



4        PROGRESS ON THE PROJECT WORK PLAN
The results achieved to date are listed below under the headings of the task sets as listed under the
terms of reference.

4.1     Task Set 1 – Preparatory Work, Project Planning and Initial Mission

The first task involved initial meetings with CONAP to review project priorities and execution
strategies, assess CONAP’s institutional capacity, establish project team members, orientation for
those unacquainted with the specifics of the project, outline responsibilities, and confirm the
workplan. The initial mission of the Canadian consulting team occurred from January 18, 1999 to
Feb 6, 1999 and involved Norm Looker, Wayne Dunn, Rodrigo Contreras, Grant Bennington and
Oscar Milliones. As well, Ken Thomas, of Neegan International participated in the mission at his
own expense.

Highlights of the first mission included:

     Development of a good, collaborative working relationship between the consulting team and
      CONAP Executive and staff
     Establishment of an Inter-Indigenous partnership between CONAP and Neegan International
     Purchase and installation of computer system for CONAP’s Lima office
     Initial computer orientation and training for staff and executive
     Identification of a number of business and economic opportunities (see details in Section 4.4)
     Visits to CONAP regional offices in Iquitos, Lagunas and Pucallpa/Yarinacocha
     Hosting the first ever Peru-Canada Indigenous Business Development Seminar
     Public Awareness – CONAP received broad national coverage by all major Peruvian media for
      the signing ceremony of its agreement with Neegan International.
     Administration training and procedures – the consulting team developed forms (computerized and
      manual), record keeping procedures and information managing process to assist CONAP staff
      and executive with key administrative functions. This is an ongoing task and more progress will
      occur during subsequent missions and during the extended team’s presence in CONAP’s offices.
     Linkages were developed with other Peruvian and international businesses and institutions (see
      details in Section 4.9)
     CONAP Executive responsibilities were assigned for various project functions

             Responsibility                           Name
             Administration Issues                    Luis Katip - Accounting
             Computer Issues                          Isaac Paz/Fermin Punt
             Relations With Other Organizations       Jorge Dionisio
             Negotiations With Private Companies Cesar Sarasara/Manuel MacKenzie
             and Development of Projects




R.J. Burnside International Limited                                                        June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                              Page 20
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)


   Workshops on Indigenous business and economic development held in Lima and in CONAP
    regional centres (Lagunas, Iquitos, Pucallpa and Yarinacocha). These workshops also covered
    basic negotiation strategies, focusing on capturing benefits from resource development projects.
   Computer orientation training delivered in Lagunas, Iquitos, Pucallpa and Yarinacocha
   A facility was identified to provide ongoing, structured computer training
   A process was developed for selecting an accounting firm
   Proposals received from four accounting firms and interviews held with all


Week 1               Activities in CONAP’s national office in Lima
Jan 18-25
Week 2               Activities in CONAP’s national office in Lima
Jan 25-30            Began travel to regional offices and initial meetings/workshops in Iquitos
Week 3               Additional meetings/workshops in Iquitos and meetings in Lagunas,
Jan 31 – Feb 6       Tarapoto, Pucallpa and Yarinacocha
                     Agreement signed with Neegan International at press conference in
                     Canadian Embassy
                     Mission debriefing meetings held in Lima


4.1.1    Meeting/co-ordination of the Consulting Team

A project and mission planning meeting was held in the Orangeville office of R. J. Burnside
International Limited in December 1998 between RJ Burnside International and Wayne Dunn &
Associates. The Canadian project members of Norm Looker, Andrew Isaak, Grant Bennington,
Wayne Dunn and Rodrigo Contreras met to review project progress and planning and to prepare
workplans and strategies for the initial project mission trip to Peru. Objectives of the mission were to
include set-up of accounting systems, bank account, office employees, training, agreements with
other organizations, identification of project opportunities, assist CONAP to begin networking with
other institutions and businesses and, if possible, establish an initial inter-indigenous partnership.

4.1.2    Workplan

Project Manager, Rui De Carvalho undertook a mission to Lima in May to update CONAP on the
status of the project, discuss changes to the project team (see Section 5 for detail on project team
changes) and to review the priorities and expectations for the remainder of the project. Based on this
mission and the discussions with CONAP and IDB, the project workplan was revised as follows:

                                         Project Workplan
Task                        Description of Tasks     Who                        When

Update workplan             Prepare an update to the Rui De Carvalho            By June 1 and sent by
                            original workplan based                             email to CONAP and
                            on     discussions    of                            IDB by June 4
                            mission of May 18-20




R.J. Burnside International Limited                                                           June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                    Page 21
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)


                                         Project Workplan
Task                        Description of Tasks    Who               When

Complete report         Prepare report on work      Rui De Carvalho   By Mon June 7
                        completed to date,          Wayne Dunn
                        outline of work plan for    Andrew Isaak
                        completion                  (translator)
Draft      of       the The          “procedures    Wayne Dunn        The draft or outline
Procedures Manual       manual”          requires   Andrew Isaak      should be completed by
                        further definition; It                        Mon June 14 so that it
                        was agreed that a draft                       can be sent to CONAP
                        outline     would      be                     ahead of the upcoming
                        prepared       to      be                     mission
                        discussed with CONAP
                        during the June mission
Draft         strategic It is important for         Wayne Dunn        The draft should be
operational plan        CONAP to visualize the                        completed by Mon June
                        concept       of      the                     14 so that it can be sent
                        development of its                            to CONAP ahead of the
                        Strategic Operational                         upcoming mission
                        Plan (4 year term); it
                        was agreed that this is a                     The       process      of
                        task that CONAP has to                        development            of
                        do but that we would                          Strategic Operational
                        prepare a draft model                         Plan should remain
                        for consideration and to                      open until after the
                        get the process started                       mission to Canada to
                                                                      take     advantage     of
                                                                      exposure of new ideas
Prepare for June 21 It was agreed that it is        Rui De Carvalho   The draft should be
mission             essential    that   this        Wayne Dunn        completed by Mon June
                    mission               be        Ken Thomas        14 so that it can be sent
                    appropriately planned           Andrew Isaak      to CONAP prior to the
                    with the roles of all                             start of mission
                    participants        well
                    defined ahead of time

Draft entrepreneurial A number of business Wayne Dunn                 Should be completed
concepts              ideas will be put forth Ken Thomas              for presentation during
                      for the Executive to                            the mission;
                      consider and discussion
                      during the upcoming                             It is being covered in
                      mission (should draw                            the current working
                      upon on the information                         report.
                      learned from the visit to
                      the Regions)



R.J. Burnside International Limited                                                 June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                          Page 22
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)


                                          Project Workplan
Task                        Description of Tasks       Who                  When

Draft        marketing      A sequel to the previous   Wayne Dunn           For presentation during
concepts                    task                       Ken Thomas           the June mission
Preliminary                 This ties in with the      Wayne Dunn           For presentation during
identification      of      previous two items         Ken Thomas           the June mission
products and services

Concepts              in Draft of preliminary          Wayne Dunn           For presentation during
identification of funds ideas for CONAP to             Ken Thomas           the June mission
                         develop and follow up
                         in order to achieve long
                         term            economic
                         sustainability
Submissions to           As much of the above          Rui De Carvalho/will Before and during the
CONAP and IDB            should be submitted to        compile and make June mission
                         CONAP and IDB even            submissions      as
                         in a preliminary format       appropriate
                         so that the intent of the
                         work is communicated
Identify individuals to It was agreed that four        CONAP                ideally prior to the June
receive training         and as many as eight                               mission
                         individuals          (for
                         redundancy) should be
                         identified by CONAP
                         to receive training in
                         areas of
                         administration
                         accounting/finance
                         legal issues
                         strategic planning and
                         negotiations
June 21 mission          Assumed that the full     Rui De Carvalho
                         week         will      be Wayne Dunn
                         allocated/draft agenda    Ken Thomas
                         to be prepared outlining  Andrew Isaak (who will
                         the week’s proposed       remain in Lima - Oscar
                         program                   Milliones to assist
                                                   Andrew with the long
                            Morning of June 21 term accommodation)
                            should be dedicated to
                            review the week’s
                            workplan           and
                            expectations.




R.J. Burnside International Limited                                                       June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                             Page 23
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)


                                         Project Workplan
Task                        Description of Tasks      Who                      When

Extended Mission        Preliminary list of           Andrew Isaak             tentative dates
                        tasks:                        support from Oscar       June 21 to September
                        -become familiar with         Milliones and from the   18
                         CONAP its people and         Team      in    Canada   (with one trip home or
                         politics                     through email and        visitor from home)
                        -implement                    telephone
                         administrative
                         procedures
                        -monitor
                         implementation         of
                         financial systems
                        -develop web page
                        -provide        computer
                         training
                        -develop      procedures
                         manual
                        -acquisition            of
                         additional equipment
                        -implement           some
                         capacity at regional
                         centres
Legal       Framework   Following the terms of        Mercedes Manriquez       sometime in August
Analysis                reference     and      the                             after her schedule is
                        background       material                              able to allocate the
                        provided by Wayne                                      appropriate time
                        Dunn
                        recognition     that     if                            The terms of reference
                        appropriate resources                                  for the analysis will be
                        were available, the                                    reviewed during the
                        analysis would be much                                 upcoming mission and
                        more extensive                                         revised as necessary
Workshop             on CONAP’s objectives is         Wayne Dunn and Ken scheduled            to     be
negotiation         and to have the workshop in       Thomas assuming that determined
conflict resolution     Peru to be scheduled to       they may be assisting in
                        coincide with a specific      such negotiations
                        negotiation
                         individuals                  David Bennett as an
                                                      alternative




R.J. Burnside International Limited                                                          June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                          Page 24
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)


                                          Project Workplan
Task                        Description of Tasks        Who                 When

Mission by CONAP to Planning of mission to Ken Thomas                       at the end of September
Canada              be carried out during Wayne Dunn                        / early October
                    the June mission in
                    Lima

                            individuals   to       be
                            selected

                     A draft itinerary will be
                     available for discussion
Preparation of Final Final document on how              Andrew Isaak        November 99
Project Report       the objectives of the              Rui De Carvalho
                     project were achieved -            Wayne Dunn
                     results            based
                     management
Final    Mission  to closure to existing                To be determined    December 99 or more
CONAP                project - initiation of                                practically in January
                     new ventures                                           2000.


4.1.3    Project Meetings

Norm Looker and Rodrigo Contreras attended the first meeting with CONAP. Cesar Sarasara
expressed his satisfaction with the agreements between R. J. Burnside International Limited and
CONAP. Mr. Sarasara also provided information on advancement of dialogues with resource
companies such as Shell, ARCO, Chevron, Philips and ICRAF. He also advised that CONAP would
be signing agreements with the University of Washington regarding biological research and a
religious order to support land demarcation and titling for the Marainor region. Working with Mr.
Sarasara, Mr. Looker and Mr. Contreras conducted a preliminary institutional capacity assessment of
CONAP to enable the consulting team to better prepare for subsequent missions.

A second meeting was held with CONAP on November 16, 1998. In attendance were Norm Looker,
R.J. Burnside International Limited (BIL), Cesar Sarasara (CONAP), Luis Katip (CONAP), Jorge
Dionisio (CONAP) and Mercedes Manriquez (independent). Contents of the meeting covered
concerns and questions by CONAP and more information regarding possible economic agreements:

   CONAP expressed interest in having additional workshops associated with Indigenous
    involvement and petroleum exploration and operation in Peru, following the successful workshop
    held October 28-31, 1998 with Petro Peru. It was agreed that petroleum and other resource
    development would be a priority area for the development of business opportunities.

   CONAP has been receiving assistance from Canada’s Development & Peace to review laws
    governing issues about petroleum exploration. Burnside will be contacting them to discuss
    potential collaboration possibilities.


R.J. Burnside International Limited                                                       June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self-Sufficiency                                                                Page 25
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)



   A possible $45,000 demographics mapping project was discussed. The use of satellite remote
    sensing using RADARSAT may be useful and will be investigated.

   CONAP expressed concern that the large expectations for the project may be difficult to meet,
    given the limited budget available to CONAP and the consulting team.

   Training of two or three people in each of the communities in administration, accounting and
    marketing has been recommended. The goal would be that those trained could pass on their skills
    to others.

4.1.4    Selection of Accounting Firm

The selection of an accounting firm to assist CONAP with their financial activities is a priority of this
project. In keeping with the strategy of associating training with real projects and activities, the
consulting team utilized the selection of an accounting firm as a learning opportunity.              The
consulting team assisted CONAP to establish a process for selecting the accounting firm. The
process includes:

        Identify accounting and financial support needs (completed)
        Based on needs, prepare a terms of reference accounting and financial support (completed)
        Identify firms who have the capacity to undertake the work invite proposals (completed)
        Establish an evaluation process for ranking proposals (completed)
        Screen proposals and conduct meetings/interviews with top candidates (completed)
        Evaluate results of meetings/interviews and either select a firm to negotiate a contract with, or
         request additional information from select firms. (in progress)

This process is much slower and more time consuming, but it provides an excellent training and
capacity building opportunity for CONAP.

4.1.5    Training CONAP on Computer and Accounting Systems

The consulting team decided to use the purchase of computers as another hands-on opportunity to
further enhance CONAP’s institutional capacity. Rather than simply purchasing the computers and
installing them in CONAP’s offices, the team involved CONAP executive and staff in the entire
process including needs identification, supplier review and product selection.

During the January/February mission computer training was initiated for CONAP staff and
executives. Some already had a basic level of computer skills while others had little or no previous
exposure to computers. The training was tailored to focus on the skill/experience level of each
participant.

Prior to the purchase of CONAP’s new accounting system, the consulting team developed several
electronic forms (fax cover sheets, letterhead, meeting attendance recording sheets, etc.), installed
them on CONAP’s existing computer system and trained the staff in their use. Several formal and
numerous informal and orientation sessions were held in CONAP’s Lima offices during the



R.J. Burnside International Limited                                                             June, 1999
Wayne Dunn & Associates Ltd.
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon

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Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon

  • 1. Stepping Towards Self-Sufficiency: An Indigenous Economic Development Plan Interim Report of the IDB/CANTAP Development Program in the Peruvian Amazon. June 1999 Confederación de Nacionalidades Amazónicas del Perú – CONAP Prepared by Wayne Dunn & Associates Ltd. And Confederación de Nacionalidades Amazónicas del Perú – CONAP Jirón Brigaidier Pumacahua 974 Jesús María, Lima 11, PERU Telefax: 511.423.8391 R.J. Burnside Email: conap@telematic.com.pe International Limited
  • 2. Stepping Towards Self-Sufficiency Page i IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) Table of Contents 1 EXECUTIVE SUMMARY .........................................................................................................................1 1.1 BACKGROUND ............................................................................................................................................1 1.2 PROGRESS ON THE PROJECT WORKPLAN .....................................................................................................1 1.2.1 Project planning and initial mission .................................................................................................1 1.2.2 Capacity development.......................................................................................................................2 1.2.3 Development of commercial activities ..............................................................................................3 1.2.4 Development Projects .......................................................................................................................5 1.2.5 Legal Analysis...................................................................................................................................6 1.2.6 Mission to Canada ............................................................................................................................6 1.2.7 Signing of Cooperation Agreements .................................................................................................7 2 INTRODUCTION .......................................................................................................................................9 2.1 REPORT STRUCTURE ..................................................................................................................................9 2.2 THE PROJECT .............................................................................................................................................9 2.3 BACKGROUND ............................................................................................................................................9 2.3.1 Project Origins .................................................................................................................................9 2.3.2 CONAP ........................................................................................................................................... 10 2.3.3 Consulting Team ............................................................................................................................. 11 2.3.4 Inter-Indigenous Partnerships ........................................................................................................ 11 3 OVERVIEW OF RESULTS AND CHALLENGES ............................................................................... 13 3.1 RESULTS AND ACCOMPLISHMENTS .......................................................................................................... 13 3.2 CHALLENGES ........................................................................................................................................... 17 3.2.1 Lack of salary for CONAP leadership ............................................................................................ 17 3.2.2 Language capacity of the consulting team...................................................................................... 17 3.2.3 Legislative review/development process ......................................................................................... 17 3.2.4 Project-centric training and capacity development process ........................................................... 18 3.2.5 New and innovative approach to indigenous development ............................................................. 18 3.2.6 Plethora of opportunities ................................................................................................................ 18 4 PROGRESS ON THE PROJECT WORK PLAN .................................................................................. 19 4.1 TASK SET 1 – PREPARATORY WORK, PROJECT PLANNING AND INITIAL MISSION .................................... 19 4.1.1 Meeting/co-ordination of the Consulting Team .............................................................................. 20 4.1.2 Workplan ........................................................................................................................................ 20 4.1.3 Project Meetings ............................................................................................................................. 24 4.1.4 Selection of Accounting Firm ......................................................................................................... 25 4.1.5 Training CONAP on Computer and Accounting Systems ............................................................... 25 4.1.6 Administrative Capacity and Support ............................................................................................. 26 4.1.7 Working with CONAP Regional Offices ......................................................................................... 26 4.1.8 Project Reports ............................................................................................................................... 27 4.2 TASK SET 2 – DEVELOPMENT OF STRATEGIC PLAN FOR OPERATIONS...................................................... 27 4.3 TASK SET 3 – ADMINISTRATION AND FINANCIAL TRAINING .................................................................... 27 4.4 TASK SET 4 – DEVELOPMENT OF COMMERCIAL ACTIVITIES .................................................................... 28 4.4.1 Mini hydro electric power generation ............................................................................................ 28 4.4.2 Camisea related opportunities ........................................................................................................ 29 4.4.3 De-mining opportunities ................................................................................................................. 31 4.4.4 Tourism ........................................................................................................................................... 33 4.4.5 Arts and crafts (Marotishobo) ........................................................................................................ 34 4.4.6 Transportation Services .................................................................................................................. 35 R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 3. Stepping Towards Self-Sufficiency Page ii IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) 4.4.7 Development services in the border area ....................................................................................... 36 4.4.8 Educational program delivery/International Indigenous University .............................................. 37 4.4.9 National Park Development ........................................................................................................... 38 4.4.10 Geographical Information Systems and Remote Sensing ........................................................... 38 4.4.11 Forestry & non-timber forest products ...................................................................................... 39 4.4.12 Services to petroleum and mineral exploration .......................................................................... 40 4.4.13 Environmental Services .............................................................................................................. 41 4.4.14 Sectoral and Regional Opportunities ......................................................................................... 42 4.5 TASK SET 5 – DEVELOPMENT OF PROJECTS ............................................................................................. 43 4.5.1 Development and Peace ................................................................................................................. 44 4.5.2 Inter-American Foundation Project ............................................................................................... 44 4.5.3 Neegan International Partnership .................................................................................................. 44 4.5.4 Canadian International Development Agency ................................................................................ 44 4.5.5 Foncodes......................................................................................................................................... 44 4.5.6 Border area projects ....................................................................................................................... 44 4.5.7 Investment promotion mission and seminar ................................................................................... 45 4.6 TASK SET 6 – COMMERCIALIZATION OF PRODUCTS AND SERVICES ........................................................ 45 4.7 TASK SET 7 – LEGAL ANALYSIS ............................................................................................................... 45 4.7.1 World Bank: Operational Directive 4.30 – Involuntary Resettlement .......................................... 46 4.7.2 World Bank: Operational Directive 4.20 – Indigenous Peoples .................................................. 46 4.7.3 IDB: Community Consultation, Sustainable Development ............................................................. 46 4.7.4 IDB: Operational Directive 710 – Involuntary Resettlement ........................................................ 46 4.7.5 ILO: Convention 169 ...................................................................................................................... 47 4.7.6 UNCED: Chapter 26, Agenda 21 .................................................................................................. 47 4.7.7 UN Declaration on the Rights of Indigenous Peoples (Draft) ........................................................ 47 4.7.8 OAS Declaration on the Rights of Indigenous Peoples (Draft) ...................................................... 48 4.7.9 National Laws ................................................................................................................................. 48 4.8 TASK SET 8 – MISSION TO CANADA ......................................................................................................... 48 4.8.1 Meetings with Indigenous businesses ............................................................................................. 49 4.8.2 Meetings with Indigenous Institutions ............................................................................................ 49 4.8.3 Meetings with resource companies ................................................................................................. 49 4.8.4 Meetings with Federal and Provincial government officials .......................................................... 50 4.8.5 Other meetings and activities ......................................................................................................... 50 4.8.6 Expanding the Mission ................................................................................................................... 50 4.9 TASK SET 9 – SIGNING OF COOPERATION AGREEMENTS .......................................................................... 50 4.9.1 University of Washington ............................................................................................................... 50 4.9.2 Neegan International ...................................................................................................................... 51 4.9.3 Anecomsa ........................................................................................................................................ 51 4.9.4 Lagunas – Lac La Ronge twinning agreement ............................................................................... 51 4.9.5 International Indigenous University/SIFC ..................................................................................... 52 4.9.6 Miraflores Chamber of Commerce ................................................................................................. 52 4.9.7 Inter-Indigenous Partnerships ........................................................................................................ 52 4.10 TASK SET 10 – FINAL REPORT ............................................................................................................. 52 5 CHANGES TO CONSULTING TEAM .................................................................................................. 53 R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 4. Stepping Towards Self-Sufficiency Page iii IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) Disclaimer This report was prepared by Wayne Dunn & Associates Ltd. and R. J. Burnside International Limited for Confederación de Nacionaes Amazónicas del Perú. The material in it reflects best judgement in light of the information available at the time of preparation. Any use which a third party makes of this report, or any reliance on or decisions made based on it, are the responsibilities of such third parties. Wayne Dunn & Associates Ltd. and R. J. Burnside International Limited accepts no responsibility for damages, if any, suffered by any third party as a result of decisions made or actions based on this report. Confederación de NacionalidadesAmazónicas del Perú (CONAP) Jirón Brigaidier Pumacahua 974, Jesús Maria, Lima 11, PERU Telefax: 511.423.8391 Email: conap@telematic.com.pe Wayne Dunn & Associates Ltd. 2457 Bakerview Road, Mill Bay, BC, VOR 2PO, CANADA Phone: +1.250-743-7619 Fax: +1.250-743-7659 Email: info@waynedunn.com R.J. Burnside International Limited 15 Townline, Orangeville, Ontario, L9W 3R4, CANADA Phone: 519-941-5331 Fax: 519-941-8120 Email: info@rjburnside.com R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 5. Stepping Towards Self-Sufficiency Page 1 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) 1 EXECUTIVE SUMMARY This report covers the project from its inception in late 1998 and includes activities and accomplishments to May 31, 1999. 1.1 Background The Inter-American Development Bank’s (IDB) Indigenous community development program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) represents a new and innovative approach to indigenous development. This project, which is largely financed by the Canadian Technical Assistance Program (CANTAP) focuses on institutional and economic development; assisting CONAP to move towards economic self-sufficiency and become more productive participants in the Peruvian economy. A major focus of the project is the use of partnerships with Canadian indigenous businesses to bridge technical gaps and concentrate on strategic business development opportunities. CONAP CONAP is a representative organization of indigenous peoples in the Peruvian Amazon. CONAP has a national office in Lima and regional offices and executive in various communities throughout the Peruvian Amazon region. Consulting Team The consulting team is a collaboration between two Canadian firms, R.J. Burnside International Limited and Wayne Dunn & Associates Ltd. The multi-disciplinary team brings together experts in indigenous business and economic development, international development and partnership building. Inter-Indigenous partnerships A key strategic focus of the project is to link CONAP with Canadian indigenous businesses to facilitate the sharing of successful business, economic and organizational development experiences. During the preparatory phase of the current project, CONAP urged the IDB to facilitate partnerships between CONAP and Canada’s Indigenous Peoples. Canadian Indigenous Peoples have developed successful businesses in all sectors of the economy and have expertise in connecting business development with other social, community and organizational objectives. As well, Indigenous Peoples in Canada have well-developed capacity in educational, social, cultural and political areas. Building partnerships and sharing experiences between CONAP and Canadian Indigenous Peoples will assist CONAP to capitalize on development and economic opportunities and will provide new opportunities and experiences for their Canadian partners. 1.2 Progress on the project workplan 1.2.1 Project planning and initial mission The initial stages of the project involved working with CONAP to assess organizational capacity and identify training and development needs. The project, which is being carried out by R.J. Burnside International Limited and Wayne Dunn & Associates Ltd., both of Canada, then worked with CONAP to develop a ‘project-centric’ approach to capacity and institutional development. This R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 6. Stepping Towards Self-Sufficiency Page 2 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) method focuses on learning by doing. Training and capacity development occurs while working on real business and economic projects. This allows new skills to immediately be put to practical use, rather than developing new skills in a classroom setting and then attempting to apply them in real-life settings later. The project-centric approach is more difficult and time consuming to initiate, but experience in Canada has proven that it creates more sustainable, long-term organizational and operational capacity. The highlights of the initial mission were:  Development of a good collaborative working relationship between CONAP and the consulting team.  The establishment of a partnership between CONAP and Neegan International, an indigenous business from Canada. This partnership was announced at a high profile press conference at the Canadian Embassy in Lima  The operationalizing of CONAP’s Lima office,  A visit to CONAP regional centres of Iquitos, Lagunas and Pucallpa/Yarinacocha  Identification of a number of project and business opportunities.  Hosting of a Peru-Canada Indigenous Business Development Seminar  Facilitation of discussions with the Miraflores Chamber of Commerce  Purchase and installation of a computer system for CONAP’s offices  Initiate training in computer operation, administration and financial procedures. This included computer orientation sessions held in the regional centres.  Workshops on indigenous business development and Canada’s indigenous business development experience  Development of a process for selecting an accounting firm 1.2.2 Capacity development Progress has been made on enhancing CONAP’s organizational and operational capacity. As noted earlier, a decision was made to focus this process around meaningful projects, which will result in slower, but ultimately more sustainable progress in this area. A major thrust of the implementation of the capacity development strategy has been the identification and advancement of business and project opportunities in order to provide a focus for training efforts. As the following sections indicate, substantial progress has been made in project development. In late May CONAP, the IDB and the consulting team met to evaluate the project and progress made in capacity development. They agreed that the consulting team would need to increase their hands-on support for CONAP’s operations during the next several months in order to better address CONAP’s project development, training and capacity development needs. Arrangements have been made for one member of the consulting team to have an extended presence in CONAP’s office, providing extra hands-on support in these areas. The consulting team and CONAP have identified several areas that will be addressed in a strategic operations and procedures manual. This item will be advanced and completed during the extended presence in CONAP’s offices. Other items that will be addressed during this period include:  Administration and financial training R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 7. Stepping Towards Self-Sufficiency Page 3 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP)  Project development and management  Office practices  Partnership development  Computer training  Other priorities as identified by CONAP The entire consulting team will remain available via email and telephone to assist with this process. 1.2.3 Development of commercial activities A major focus of the consulting team’s work to date has been the identification and development of commercial opportunities. Beginning with the partnership with Neegan and continuing through the identification of thirteen specific commercial opportunities, the development of strategies and action plans for each, and the identification of potential Canadian indigenous partners, the project has laid the foundation for CONAP to take major strides towards economic self-sufficiency. The body of the report presents background information, summary of work completed, a development strategy and an action plan for each of the following commercial opportunities. 1. Mini hydro electric power generation – There is an opportunity to utilize state of the art mini hydro electric power generation technology to supply many communities that are now serviced by more expensive diesel generated electricity. A potential partner has been identified and a pilot site located. 2. Camisea related opportunities – Development of the Camisea gas field will result in billions of dollars in contract and business opportunities. Canadian indigenous businesses with expertise in supplying goods and services to oil and gas projects are ready to work with CONAP to develop business opportunities with the Camisea project. 3. De-mining opportunities – The Peru-Ecuador peace agreement has created the need for huge areas of the border area to be cleared of anti-personnel mines. Canada is a world leader in the promotion of demining activities. A Canadian indigenous firm with expertise in demining is interested in working with CONAP to secure demining contracts in the region. 4. Tourism development – The Amazon region is known worldwide for its tourism potential. Indigenous peoples have a strategic advantage in developing new tourism products because the fastest growing sector of the tourism industry is eco-cultural tourism. Although many parties have been identified who are interested in working with CONAP to develop specific opportunities, it is recommended that a comprehensive indigenous tourism strategy be developed. This would allow for systematic development of the industry in a manner that will maximize benefits to local indigenous peoples. 5. Arts and Crafts – The Shipibo Peoples are well known for their arts and crafts ability. They have operated an arts and crafts business in Pucallpa/Yarinacocha for nearly 25 years. They have demonstrated remarkable commitment, sticking with the business through many difficult times. Currently there are several local issues that need to be addressed and then a detailed business plan developed that will chart a course towards financial self-sufficiency for the operation. 6. Transportation services – The current transportation infrastructure and services in the entire region will need to be upgraded to accommodate the new business and investment the region is expecting. Transportation has proven to be an attractive and profitable sector for Canadian R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 8. Stepping Towards Self-Sufficiency Page 4 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) indigenous businesses, with successful operations in air, marine, surface, construction and other aspects of the industry. A systematic review of this sector could identify significant opportunities to work with Canadian or other interests and participate productively in upgrading the system. 7. Development services in Peru-Ecuador border area – The peace agreement has stimulated significant international interest in the border area. The World Bank and the IDB have both pledged USD$500 million to development programs in the area. Other nation states and development agencies are also planning activities in the area. CONAP, with its connection to local peoples and knowledge of the area, could be a strategic partner and/or promoter of many of the projects. 8. Educational program delivery/International Indigenous University – The Saskatchewan Indian Federated College (SIFC) has been delivering Spanish educational programs in remote areas for a number of years. They have recently begun developing an International Indigenous University. SIFC wants to meet with CONAP and explore opportunities for collaborating in the new University and for ongoing program development and delivery. 9. National Park Development – The World Bank has announced USD$20 million in financial support for the development of four new National Parks in Peru. One will be located in the Peru- Ecuador border region. Through partnerships with Canadian and other interests, CONAP can add technical expertise to its base of local knowledge and be in an excellent position to secure contracts related to the development of the Parks. 10. Geographical Information Systems and Remote Sensing – GIS and Remote Sensing technology is the most efficient and effective technology for dealing with many of the unresolved land and demarcation issues in the Peruvian Amazon region. As well, increasing interest in mineral and petroleum resources in the area is fueling the demand for more and better geographical and geological information. A Canadian indigenous firm with expertise in GIS and Remote Sensing wants to work with CONAP to develop a business in this sector. 11. Forestry and non-timber forest products – The Amazon region holds vast reserves of timber and is a virtual treasure of non-timber forest products (i.e. medicinal plants, teas, etc.). Even though the lands are traditional indigenous territories, Indigenous Peoples are, at best, marginal players in these industries. At least one existing company that is active in using local plants for teas has expressed interest in working with CONAP on this opportunity. The full range and extent of the opportunities represented by forestry and non-timber forest products is not well known, nor is it known what sustainable harvest/yield levels are. The project recommends conducting participatory research to create a sustainable forest usage strategy and opportunity identification study. After this research is completed various strategies, including joint venture, can be utilized to pursue the most promising opportunities. 12. Services to petroleum and mineral exploration – Peru is home to two of the world’s major resource development projects; the aforementioned Camisea project and the USD$2.2 billion Antamina mining project. Attracting new investment into these sectors is a key component of the national governments economic development strategy. Numerous firms from Canada and other countries are actively exploring for petroleum and mineral resources throughout the Amazon region of Peru. This represents a significant business opportunity and one that Canadian indigenous peoples have a plethora of experience in. 13. Environmental services – The Amazon region is known as one of the most environmentally sensitive regions in the world. Increasing settlement, resource development and other activities are creating many opportunities to supply environmental management, monitoring and other R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 9. Stepping Towards Self-Sufficiency Page 5 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) services. Indigenous peoples are recognized throughout the world for their environmental stewardship and sensitivity. Indigenous businesses in Canada have developed expertise in providing many environment related business services and are interested in working with CONAP to establish businesses in this sector. 14. Sectoral and regional opportunities – There are many regional and sectoral opportunities for business and commercial projects in the Amazon region. Rice production, Jute, Silkworm production, forestry, fishing, coffee production, medicinal plants, and banana production are some that have been discussed and identified. Many of these opportunities have entrepreneurs and organizations ready to develop them further. The consulting team will work with them to assist in further development and commercialization of these opportunities. 1.2.4 Development Projects In addition to the commercial projects detailed in the previous section, the consulting team has been working with CONAP to identify and develop projects of a more developmental nature and to assist with ongoing CONAP projects. Details on the following projects are contained in Section 4.5 of this report. 1. Development and Peace – This is an ongoing, Canadian funded, project to assist in reviewing laws related to indigenous peoples and petroleum exploration. 2. Inter-American Foundation (IAF) – A proposal was submitted to the IAF to assist CONAP with additional training, and organizational development. The IAF has refocused its program and is no longer supporting this type of project. However, they did agree to give priority consideration to providing up to $500,000 towards developing one of the business opportunities noted earlier – provided that a comprehensive business plan was in place. 3. Neegan International Partnership – As noted earlier, the consulting team facilitated a partnership between CONAP and Neegan International, a Canadian indigenous company with expertise in business development. The partnership has contributed greatly to the advancement of the commercial opportunities discussed earlier. 4. Canadian International Development Agency (CIDA) – A proposal is being developed for submission to CIDA to secure the resources for expanded support to CONAP’s economic development efforts. 5. FONCODES – A number of potential FONCODES projects have been discussed, with several focusing on municipal water systems and waste management. The consulting team will continue working with FONCODES and CONAP to advance these discussions and develop a project proposal. 6. Peru-Ecuador Border Area Projects – The aforementioned programs and projects for the border area will create project opportunities that are consistent with CONAP’s developmental priorities. Initial meetings have been held with IDB officials in this regard. Further investigation of this opportunity is required. 7. Investment Promotion Mission and Seminar – Consideration is being given to identifying additional resources in order to expand CONAP’s upcoming mission to Canada; allowing more R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 10. Stepping Towards Self-Sufficiency Page 6 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) CONAP participation and enabling visits to more than one region of Canada. As well, the IDB has offered to host a Round Table in Washington, DC to promote CONAP’s projects and facilitate greater interaction between CONAP and Washington based development projects. 1.2.5 Legal Analysis The consulting team conducted an identification and initial review of international directives and declarations that had potential impact on CONAP’s development aspiration. The following were identified as key instruments: 1. World Bank: Operational Directive 4.30 – Involuntary Resettlement 2. World Bank: Operational Directive 4.20 – Indigenous Peoples 3. IDB: Community Consultation, Sustainable Development 4. IDB: Operational Directive 710 – Involuntary Resettlement 5. ILO: Convention 169 6. UNCED: Chapter 26, Agenda 21 7. UN Declaration on the Rights of Indigenous Peoples (Draft) 8. OAS Declaration on the Rights of Indigenous Peoples (Draft) A short discussion on key aspects of each is contained in Section 4.7. A local legal expert, Mercedes Manriquez, with extensive background in indigenous issues and a good working relationship with CONAP, was retained to undertake a more thorough review of these international instruments and national laws. The consulting team also conducted a review of AYUDA MEMORIA, which is the framework for a larger set of negotiations between Indigenous Peoples and petroleum companies in Peru. This analysis directed CONAP’s attention to a number of deficiencies in the framework and assisted with their involvement in the process. 1.2.6 Mission to Canada Extensive work has gone into preliminary preparations for CONAP’s upcoming mission to Canada. During the visit, CONAP will be exposed to some of Canada’s leading indigenous businesses and institutions. Many of these are interested in discussing specific partnership opportunities with CONAP. Some of the planned activities include: 1. Indigenous businesses – there will be meetings with, and site visits to, many of the businesses that are interested in partnering with CONAP on the specific opportunities noted earlier. Site visits have also been arranged with several. 2. Indigenous institutions – meetings have been set up with indigenous governmental, service delivery and educational institutions. Site visits have also been arranged with many. R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 11. Stepping Towards Self-Sufficiency Page 7 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) 3. Resource companies – CAMECO, a Canadian based mining company that purchases over $100 million per year in goods and services from Canadian indigenous businesses, will host CONAP and discuss their work with indigenous peoples and how it adds value to their operations. 4. Federal and Provincial government officials – meetings have been arranged with key officials of the provincial and federal governments. Other activities and media events will be planned after further consultation with CONAP. As noted earlier, there is a potential to expand the scope of the mission to enable visits to other regions of Canada and meetings in Washington, DC. 1.2.7 Signing of Cooperation Agreements The consulting team has worked with CONAP to build on CONAP’s existing cooperation and agreements and to identify new opportunities for strategic cooperation and collaboration. Some of these include: 1. University of Washington – CONAP has a long-standing relationship with the University of Washington. The consulting team is working with CONAP to identify opportunities to build on this established relationship. 2. Neegan International On February 5, 1999, at a high profile press conference at the Canadian Embassy in Lima, CONAP signed a Memorandum of Agreement with Neegan International, an Indigenous owned business from Canada, to collaborate in enabling Indigenous peoples to participate more productively in the Peruvian economy. The collaboration will focus on:  The creation and execution of a comprehensive economic development strategy for CONAP and its member regions.  Facilitating linkages and sharing of experiences between CONAP, its member communities, and Canadian Indigenous organizations involved in social, cultural, educational and business development.  Encouraging the governments of Peru and Canada to collaborate and share experience on indigenous business and economic development. This agreement has already produced many of the commercial and other project opportunities identified in earlier sections of this report. 3. Anecomsa – Anecomsa is a Peruvian indigenous organization working with communities in the Andean region of the country. They are also receiving technical support and financial assistance from the IDB. CONAP and Anecomsa have signed an agreement to collaborate in the execution of the IDB projects. 4. Lagunas – Lac La Ronge Community Twinning – During the visit to Lagunas the local Mayor asked CONAP for assistance in setting up a twinning arrangement with a Canadian indigenous community. After reviewing expectations and community criteria with CONAP, the consulting R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 12. Stepping Towards Self-Sufficiency Page 8 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) team has identified a community – Lac La Ronge Indian Band. Lac La Ronge has expressed strong interest and is looking forward to moving this project forward. 5. International Indigenous University – As noted earlier, the Saskatchewan Indian Federated College wishes to collaborate with CONAP in the development and delivery of educational programs and to explore possible CONAP involvement in the creation of an International Indigenous University. 6. Miraflores Chamber of Commerce – Meetings were held with the President and other representatives of the Chamber. As well, Chamber representatives attended the Peru-Canada Indigenous Development Seminar that CONAP hosted. The Chamber expressed interest in building a closer relationship with CONAP and in identifying specific opportunities for collaboration. 7. Inter-Indigenous Partnerships- as noted earlier, the consulting team has identified numerous indigenous businesses and institutions that are interested in developing commercial and development projects with CONAP. The following sections contain detailed information on the aspects of the project discussed above. R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 13. Stepping Towards Self-Sufficiency Page 9 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) 2 INTRODUCTION 2.1 Report Structure This report is written to provide background information on the project and key participants, and to present a summary of project activities and progress made to May 31, 1999. This is an interim report and will be updated to incorporate comments and developments as the project progresses. Background information on the project, key participants and on inter-indigenous partnerships is provided in Section 2. Section 3 highlights the overall approach to the project and identifies accomplishments and challenges. Section 4 contains an item by item review of progress on project tasks and provides detailed information on potential business and economic projects. As well, a development strategy and itemized workplan is presented for each commercial and business opportunity listed. Section 5 discusses some changes to the consulting team makeup. A package of supporting and background materials has been prepared and provided to CONAP and the IDB under separate cover. 2.2 The Project The overall objective of the project is to increase CONAP's ability to participate constructively in the Peruvian economy and to enhance CONAP’s institutional capacity to provide business and economic development, and other support services to indigenous communities of the Peruvian Amazon region. The project team is collaborating with CONAP to achieve this objective by assisting with work planning, training and human resources development, partnership building and identifying and developing economic and development project opportunities. The three main components of the project are: A. The institutional strengthening of CONAP, (a project focused capacity development approach that includes collaboration with Canadian indigenous businesses and institutions) B. Increased constructive participation in the Peruvian economy through the strategic development of collaboration with the private sector and improving access to national and international funding institutions, and C. Improving CONAP’s capacity to support the economic development aspirations of indigenous communities in the Amazon (with a focus on identifying and developing specific opportunities i.e. marketing of products and services and strategic participation in key areas of the local economy (tourism, resource development, etc.) 2.3 Background 2.3.1 Project Origins R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 14. Stepping Towards Self-Sufficiency Page 10 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) This project has its origins in meetings between the Canadian Executive Director’s office at the IDB and Mr. Bernardo Guillamon, a Micro-Enterprise Specialist with the IDB and in Apikan Indigenous Network’s pioneering work on inter-indigenous partnerships. These meetings spawned a preparatory assistance project, which was financed by the Canadian Technical Assistance Program (CANTAP). The project, which was executed by Apikan, also designed the projects and developed terms of reference for the CONAP project and for two other indigenous development projects in Peru. The Canadian government, through the CANTAP program, is financing the costs of the consulting team that is assisting CONAP to execute the project. The IDB has provided financial assistance for CONAP to cover project costs and is administering the CANTAP funds as well. 2.3.2 CONAP The Confederation of Amazon Nations of Peru (CONAP), is a representative organization of indigenous peoples in the Peruvian Amazon. CONAP has a national office in Lima and regional offices and executives in various communities throughout the Peruvian Amazon region. CONAP’s organizational focus addresses the need for sustainable cultural and economic self- determination and maintaining their political identity. The organization strives to reach these goals by claiming larger control on their lands and natural resources, increasing participation in the national, regional and local political and economic arenas and by developing a strong organizational system. CONAP maintains linkages with other Indigenous Peoples throughout the Americas and around the world, working in solidarity to support cultural, economic and political objectives. CONAP, with the participation of their individual members, national leaders, professionals and the cooperation of diverse national and international institutions seeks to develop and promote actions in the following basic areas:  Defense and Organizational Consolidation  Capacity Building within Individuals for Management of the organization  Human rights  Promotion of Women's Rights  Environmental Protection and Sustainable Development of the Amazon  Invigoration of the Productive Capacity of the Communities  Diffusion and Communication of Information The organization of CONAP is divided into four unique sections. 1. National Congress of CONAP - the highest authority of the Organization and is composed of all the associate members. The members have the rights to speak and vote at the sessions of the National Congress. 2. National Directive Council - is composed of President, Vice President, Secretary of Economy, Secretary of Records and Files, Secretary of Defense, Secretary of Organization, Secretary of Communications, Secretary of Training and Culture, Secretary of Feminine Matters, Secretary of Health, Secretary of Production and Commercialization and Secretary of Sports. 3. Advisory Board - guides CONAP in its operation with recommendations from elders and appointed members of the advisory committee. R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 15. Stepping Towards Self-Sufficiency Page 11 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) 4. Regional Headquarters - provides leadership to the regional communities by means of administration and economic leadership. 2.3.3 Consulting Team The consulting team assisting CONAP is a collaborative effort between RJ Burnside International Limited and Wayne Dunn & Associates Ltd., both of Canada. The multi-disciplinary team brings together a broad set of skills, including strong expertise in indigenous business and international development. 2.3.4 Inter-Indigenous Partnerships In addition to cultural and lifestyle similarities, Indigenous Peoples throughout the Americas have shared many comparable experiences during the five hundred years since Columbus first landed. Loss of traditional lands and livelihoods, colonialization, economic and social marginalization, and attempts at cultural extinction are some of the common elements of the history of Indigenous Peoples throughout the hemisphere. Despite these experiences, indigenous culture and identity remains strong and Indigenous Peoples are beginning to share new, more positive experiences; assisting each other to achieve development objectives. Many of Canada’s Indigenous Peoples have begun to focus on business and economic development, seeking to become more productive participants in the Canadian economy and to gain increased control over their own destinies. Over the past ten years this has produced a virtual explosion in indigenous business development with thousands of businesses, operating successfully in every sector of the Canadian economy. At the same time indigenous peoples have been developing the political and institutional capacity to assume increasing control of the institutions and agencies that are daily parts of their lives. Canadian Indigenous peoples lead the world in Indigenous business development and have developed expertise in developing business in ways that are supportive of cultures and communities. Latin American Indigenous peoples often have access to business opportunities, but lack the financial and technical capacity to take full advantage of them. Indigenous peoples in Latin America have strong families and communities and are not besieged by many of the social issues that are plaguing many North American Indigenous Peoples. Facilitating the development of partnerships and linkages between Indigenous Peoples throughout the Americas can help to address many of the pressing social and economic issues they are facing. The experiences of Canada’s Indigenous Peoples provide a huge pool of development expertise that can collaborate with other Indigenous Peoples who have not yet had the same development experiences. Inter-Indigenous Partnerships in which Indigenous peoples in Canada and their counterparts in other areas of the world share experience, capacity and learning are a promising development strategy. These partnerships offer a number of specific advantages for all concerned (Canadian Indigenous Peoples, Indigenous Peoples from Latin America and elsewhere in the world, Development agencies and institutions, private sector firms operating in the vicinity or Indigenous peoples, Nation States, etc.). The partnerships can facilitate sharing of relevant experiences, help to bridge capacity gaps, support institutional development and promote meaningful indigenous participation in resource development and other business projects. R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 16. Stepping Towards Self-Sufficiency Page 12 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) The natural resource sector (Mining, Oil & Gas, and related activities such as pipeline construction) is a fertile sector for the development of inter-indigenous partnerships between Canada and Peru. Indigenous businesses in Canada have a plethora of experience in providing goods and services to the resource industry. Indigenous peoples in Peru live on lands where companies from Canada and around the world are exploring for and developing resources. Resource companies are often searching for new and constructive ways of involving Indigenous peoples in resource development projects. However, CONAP, like many Indigenous organizations, lacks the technical and financial capacity to assist their people to capitalize on these opportunities. Linking resource based Canadian Indigenous businesses together with Indigenous peoples from the Peruvian Amazon region will result in the development of inter-Indigenous partnerships that will produce meaningful and sustainable benefits for all concerned. R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 17. Stepping Towards Self-Sufficiency Page 13 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) 3 OVERVIEW OF RESULTS AND CHALLENGES The initial stages of the project focused on working with CONAP to identify strengths, weaknesses, project opportunities and project execution strategies. There was little interest in training people who would then have no project or activity on which to apply their new skills. An early decision was reached to avoid training and capacity development in a projectless vacuum and instead, to strategically focus the capacity development around actual opportunities and issues. CONAP and the consulting team felt that this opportunity-centric approach would serve to anchor the training and development in meaningful projects and activities, thereby increasing the relevance of the learnings and producing more sustainable results. They recognized that this approach would result in more up- front time and a slower start to the project. However, they agreed that the increased ability to produce long term, sustainable benefits far outweighed any issues that may arise from a slower project launch. 3.1 Results and Accomplishments Key results, grouped according to the projects main components, are summarized below. A more detailed documentation of results is contained in the Section 4. A. The institutional strengthening of CONAP, (a project focused capacity development approach that includes collaboration with Canadian indigenous businesses and institutions) Institutional strengthening – at the request of CONAP, an inception mission was undertaken to conduct an initial assessment of CONAP’s institutional and operational capacity and to discuss execution strategies. Initial training focus has been on developing the skills to operationalize CONAP’s offices and to begin to lay the groundwork for a more strategic approach to economic development. In CONAP’s Lima office and in regional offices, specific training areas that were initiated included; computer orientation and operation; project administration, business and economic development strategy (focused on resource extraction and tourism), negotiations and project management. In addition, the project team utilized a press conference at the Canadian Embassy as a hands-on session in media relations training. It should be noted that the training to date has only begun to address the issues and that ongoing training and skills development will be required. Institutional strengthening is an ongoing process that will require continued focus for the life of this project and beyond. B. Increased constructive participation in the Peruvian economy through the strategic development of collaboration with the private sector and improving access to national and international funding institutions. Economic development strategy, opportunity identification, and development – a key focus of the Jan/Feb 1999 mission was laying the groundwork for the elaboration of an economic development strategy and identifying opportunities to enable CONAP to take a more productive role in the economy of the Peruvian Amazon region. Focus areas for the strategy included: (a) Bridging technical and financial gaps (b) Developing strategic partnerships and institutional collaboration (c) Identifying and focusing on key opportunities R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 18. Stepping Towards Self-Sufficiency Page 14 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) (a) Bridging technical and financial gaps In order to bridge the technical and financial gaps that prevented CONAP from taking full advantage of opportunities, it was decided to focus on internal capacity development and to develop an inter- indigenous partnership with a Canadian indigenous business that had the necessary capacity, expertise and access to resources. The consulting team facilitated an agreement with Neegan International, a Canadian indigenous company headed by Mr. Ken Thomas, a Cree Indian from Saskatchewan, Canada. Ken Thomas is one of the leading indigenous business people in Canada and, as the Chairperson of Aboriginal Business Canada, played a catalytic role in facilitating the financing and development of several thousand Canadian indigenous businesses. A Memorandum of Agreement was negotiated between CONAP and Neegan and was signed in a ceremony with the Canadian Ambassador. The agreement generated wide media coverage in Peru and provides a cornerstone of CONAP’s economic development strategy. Additional details on the agreement are contained in Section 4.9.2 of this report. Workshops on indigenous business development and economic development strategies were held with CONAP’s executive and membership in Lima, Iquitos, Lagunas, Pucallpa and Yarinacocha. The improved understandings gained in these workshops, combined with previous CONAP activities in the oil and gas sector, will form the basis for the creation of a strategically focused economic development strategy. The workshops also served to identify several business and commercial opportunities. These are discussed in more detail in Section 4.4 of this report. Meetings have been held with the Inter-American Foundation (IAF), a development financing arm of the United States, the Fondo Peru-Canada, Foncodes and other institutions regarding project financing support. The Fondo Peru-Canada has approved a rice production project that will be starting in September 1999. The IAF has agreed to give priority consideration to investing up to $500,000 to support the development of a viable business, once a detailed business plan has been completed. Foncodes has expressed interest in assisting with several projects. The consulting team has completed an initial identification of key international instruments and directives such as the International Labour Organization’s (ILO) Convention 169 on Indigenous and Tribal Peoples. As well, the first phase of analysis has been completed. A final analysis and report will be completed in the next several months. Additionally, the project commissioned a review of the document AYUDA MEMORIA (#001-99-MEM/BM/MG). This document is a framework for much larger negotiations between the indigenous people and the petroleum companies. The review proved useful for CONAP’s involvement in the process. Detailed information on this work is contained in Section 4.7 of this report. (b) Developing strategic partnerships and institutional collaboration – in addition to the aforementioned partnership between CONAP and Neegan significant progress has been made in developing additional strategic partnerships and institutional collaboration. Miraflores Chamber of Commerce – meetings were held with the President and representatives of the Chamber. A representative of the Chamber attended the public portion of the Peru- Canada Indigenous Business Development Seminar on Jan. 29. There is interest in exploring a range of potential business and collaboration opportunities including tourism development, non-timber forest products and other Amazon investment and development opportunities. R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 19. Stepping Towards Self-Sufficiency Page 15 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) Additional partnerships with Canadian indigenous businesses – the partnership with Neegan International has identified eight strategic opportunities for collaboration with Canadian indigenous businesses. Potential partners have been identified to explore opportunities in; mini hydro, Camisea, de-mining, National Park development, linking educational institutions, environmental services, transportation and community twinning. Development work is ongoing to further explore these opportunities and build the partnerships. This is covered in more detail in Section 4 of this report. Puerto Palmeras Tarapoto Resort – This resort is part of a chain of resorts operated by the Corporacion Turistica Amazonica S.A. As a result of meetings with the Miraflores Chamber of Commerce, a meeting was held with the owner of the Puerto Palmeras Tarapoto Resort to discuss the tourism industry and possible opportunities for collaboration with CONAP and its member organizations Mushu S.A. Productos Naturales – this company produces teas and other natural non-timber forest products. A meeting was held to explore the potential of collaborating with CONAP to harvest and market Amazonian products. Seminar on Trade and Investment in the Peruvian Amazon – Project team member Wayne Dunn was a speaker and panelist at a Peruvian government sponsored forum on Trade and Investment in the Peruvian Amazon, which was held at the Ronald Reagan International Trade Center in Washington, DC on March 4, 1999. This seminar, which was also attended by the Vice President of Peru and many Peruvian and international business people, provided an opportunity to communicate CONAP’s interest in developing business and economic collaboration with other institutions and firms. Increased collaboration with the Inter-American Development Bank (IDB) – The Chief of Indigenous Peoples and Social Development at the IDB, has agreed to host a round-table discussion to promote CONAP’s economic aspirations and to facilitate increased interaction with other IDB projects and with other Washington based development institutions. Canadian Embassy/Government – the Canadian Ambassador to Peru hosted the CONAP – Neegan signing ceremony and was a witness to the agreement. Various other departments and agencies of the Canadian government have expressed interest in collaborating with CONAP Peruvian National Government/World Bank – CONAP has been supported (albeit in a limited way due to budgetary constraints) in its involvement in the development of new resource legislation for Peru and other developments that impact their lands. The consulting team has assisted with this by providing a review of significant documents and suggesting issues and strategies. A significant development is the World Bank/Government of Peru requesting CONAP’s involvement in the creation of a national park in the Peru/Ecuador border region. Camisea and other resource development – The consulting team has worked with CONAP to develop a new, more constructive strategy for collaboration with Camisea and other resource development initiatives on CONAP’s lands. They plan to utilize strategic approaches such as the joint-venture strategy that has enabled Canada’s Lac La Ronge Indian Band to develop $40 million/year in business with local mining projects. CONAP has identified opportunities and business partners and is poised to capture significant business from Camisea and other projects, if they are able to secure implementation support. A major focus of CONAP’s mission to Canada in September/October 1999 will be to see first hand the Lac La Ronge and other successful Canadian indigenous businesses and to use this learning in developing Camisea related business opportunities. R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 20. Stepping Towards Self-Sufficiency Page 16 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) Mission to Canada – a tentative plan has been developed for CONAP’s mission to Canada. The mission will focus on introducing CONAP to the operations of the potential Canadian indigenous partners (see Section 4 for details). Additionally, the government of Saskatchewan and CAMECO, a major Canadian mining company, has agreed to participate in the mission. (c) Identifying and focusing on key opportunities CONAP is working with the consulting team to identify and focus on key opportunities that can make a notable contribution towards long term economic self-sufficiency. To date fourteen commercial opportunities have been identified and strategies created to develop them further. Examples include the multi-billion dollar development of the Camisea gas field, the Peru-Ecuador border area which is expecting billions of dollars in new development following the signing of the peace agreement, tourism development, and infrastructure project opportunities. A second area of focus is on assisting communities and local entrepreneurs to participate more productively in the existing local economy. The consulting team has traveled to the regions with CONAP executives to begin the process of identifying business opportunities, market potential and understanding the barriers that need to be overcome for various communities and regions. Additional details on specific opportunities are provided in Section 4.4. C. Improving CONAP’s capacity to support the economic development aspirations of indigenous communities in the Amazon (with a focus on identifying and developing specific opportunities i.e. marketing of products and services and strategic participation in key areas of the local economy (tourism, resource development, etc.) As discussed in prior sections, excellent progress has been made on identifying specific economic opportunities and outlining strategies to take advantage of them. Initial training and capacity development efforts were undertaken, seeking to assist in developing key capacities and understanding of business and economic development. These have included: Operationalizing CONAP’s Lima office (basic office procedures, computer skills, filing, administration, etc.). Informal assessments were completed and initial aspects of the strategic plan of operations and the procedures manual were developed and implemented during this process. Computers were purchased and installed, staff training initiated, some manual and electronic reporting and recording forms were developed to enable CONAP staff and executive to improve key record keeping and information gathering activities. A selection procedure for engaging an accounting firm was developed; a number of firms submitted proposals and a series of interviews occurred. It is expected that CONAP will retain an accounting firm to implement a computerized financial accounting system and provide financial services and training in the near future. The consulting team has refocused the workplan to enable more resources to be dedicated to fully operationalizing CONAP’s offices in Lima. Peru-Canada Indigenous Business Development Seminar – on January 29 a Peru-Canada Indigenous Business Development Seminar was held at the Canadian Cooperation Office in Peru. The seminar featured discussion on the business and economic experiences of Canadian Indigenous Peoples. The strong focus on natural resource development was of R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 21. Stepping Towards Self-Sufficiency Page 17 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) particular interest to CONAP’s membership and the various private sector and governmental representatives in attendance. Business and economic development workshops were held in Lima, Iquitos, Pucallpa and Lagunas. There was a strong focus on strategic approaches to the issue and use was made of successful examples from Canada. The purpose of the workshops was to introduce new concepts and ideas such as the Canadian indigenous business development experience with joint-ventures, strategic targeting of opportunities, etc., to explain success stories (Lac La Ronge Band building a $40 million/year business) and to stimulate new ways of thinking about business and economic development. Computer awareness/orientation training – in addition to conducting sessions for staff and executives in CONAP’s Lima office, the consulting team conducted several hands-on computer orientation sessions during the regional visits. For many in the regions it was the first time they had ever seen a computer. 3.2 Challenges As with any innovative, groundbreaking project, this one has faced, and continues to face a number of challenges. Some of these include: 3.2.1 Lack of salary for CONAP leadership To be successful, this project must be a priority focus for CONAP leadership, occupying a considerable share of their time. This is difficult as CONAP has no core funding and is not able to give their executive and President a salary to enable them to provide for their families. The terms and conditions of funding for this project specifically prohibit paying of CONAP salaries. It is a testament to the dedication of CONAP’s leaders that they continue to be enthusiastically committed, investing hundreds of volunteer hours in the project, despite the economic strain it puts on their families. However, if project resources could be used for salaries the project would benefit greatly from the increased time that the leadership could commit to it. 3.2.2 Language capacity of the consulting team Some members of the consulting team had little or limited ability to communicate in Spanish. Although this was largely overcome by having translators available, it did detract from the overall communication process. 3.2.3 Legislative review/development process Peru, with assistance for the World Bank is currently undertaking a major review of resource extraction legislation. Part of the review process involves consultations with CONAP and other local peoples. This provides an excellent opportunity to negotiate local/indigenous preferences for constructive involvement in resource development activities. A small preference can provide a strategic advantage for CONAP in its efforts to develop partnerships to supply downstream goods and services to resource extraction projects. Canada’s Lac La Ronge Indian Band used a similar process to develop a $40 million/year business in mining. Unfortunately, CONAP does not have the resources or capacity to take full advantage of this opportunity. The consulting team does not have R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 22. Stepping Towards Self-Sufficiency Page 18 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) the mandate or resources to adequately support CONAP in this process. An attempt was made by commissioning a review of the document AYUDA MEMORIA (#001-99-MEM/BM/MG). 3.2.4 Project-centric training and capacity development process As noted previously, this approach focuses on developing meaningful projects and activities and then structuring training and capacity development around them. This strategy is more sustainable, enables better overall learning, and assists in project development and overall progress towards economic self-sufficiency. For example, rather than conduct a generic training program in negotiations and then expect people to apply the new skills the next time they are in negotiations, a negotiations training program will be developed around a specific negotiation (i.e. participation in a particular resource project). This process is also more time consuming and thus more costly as considerable additional research must be done to essentially provide advice on a particular set of negotiations. However, CONAP and the consulting team felt it was the most appropriate way as not only will more effective learning occur, but an actual project will be furthered in the process. 3.2.5 New and innovative approach to indigenous development The approach being taken by this project focuses on developing real projects to address economic marginalization and then structuring training and capacity development around these projects. CONAP has overall responsibility for the success or failure of the project. Although this is much slower and often more difficult than traditional approaches where the consultant plays a much more central role in the clients operation, it will ultimately lead to a more sustainable result. Additionally, the bridging of technical and capacity gaps through partnerships with Canadian indigenous businesses is also a process that, while it offers significant long-term economic payoff, requires large upfront investments of time and resources to identify and screen potential partners and to facilitate initial discussions and partnership development. 3.2.6 Plethora of opportunities CONAP faces a plethora of exciting and substantial opportunities, many of which can produce long term economic benefits. It requires a considerable investment of time and resources to work with CONAP to prioritize and rank those opportunities that will offer the best probability of success, providing the groundwork for the development of an economic base for CONAP and its member communities. We expect that this project can be a precursor to additional initiatives that will make a long term, sustainable difference and chart a new course for indigenous development. R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 23. Stepping Towards Self-Sufficiency Page 19 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) 4 PROGRESS ON THE PROJECT WORK PLAN The results achieved to date are listed below under the headings of the task sets as listed under the terms of reference. 4.1 Task Set 1 – Preparatory Work, Project Planning and Initial Mission The first task involved initial meetings with CONAP to review project priorities and execution strategies, assess CONAP’s institutional capacity, establish project team members, orientation for those unacquainted with the specifics of the project, outline responsibilities, and confirm the workplan. The initial mission of the Canadian consulting team occurred from January 18, 1999 to Feb 6, 1999 and involved Norm Looker, Wayne Dunn, Rodrigo Contreras, Grant Bennington and Oscar Milliones. As well, Ken Thomas, of Neegan International participated in the mission at his own expense. Highlights of the first mission included:  Development of a good, collaborative working relationship between the consulting team and CONAP Executive and staff  Establishment of an Inter-Indigenous partnership between CONAP and Neegan International  Purchase and installation of computer system for CONAP’s Lima office  Initial computer orientation and training for staff and executive  Identification of a number of business and economic opportunities (see details in Section 4.4)  Visits to CONAP regional offices in Iquitos, Lagunas and Pucallpa/Yarinacocha  Hosting the first ever Peru-Canada Indigenous Business Development Seminar  Public Awareness – CONAP received broad national coverage by all major Peruvian media for the signing ceremony of its agreement with Neegan International.  Administration training and procedures – the consulting team developed forms (computerized and manual), record keeping procedures and information managing process to assist CONAP staff and executive with key administrative functions. This is an ongoing task and more progress will occur during subsequent missions and during the extended team’s presence in CONAP’s offices.  Linkages were developed with other Peruvian and international businesses and institutions (see details in Section 4.9)  CONAP Executive responsibilities were assigned for various project functions Responsibility Name Administration Issues Luis Katip - Accounting Computer Issues Isaac Paz/Fermin Punt Relations With Other Organizations Jorge Dionisio Negotiations With Private Companies Cesar Sarasara/Manuel MacKenzie and Development of Projects R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 24. Stepping Towards Self-Sufficiency Page 20 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP)  Workshops on Indigenous business and economic development held in Lima and in CONAP regional centres (Lagunas, Iquitos, Pucallpa and Yarinacocha). These workshops also covered basic negotiation strategies, focusing on capturing benefits from resource development projects.  Computer orientation training delivered in Lagunas, Iquitos, Pucallpa and Yarinacocha  A facility was identified to provide ongoing, structured computer training  A process was developed for selecting an accounting firm  Proposals received from four accounting firms and interviews held with all Week 1 Activities in CONAP’s national office in Lima Jan 18-25 Week 2 Activities in CONAP’s national office in Lima Jan 25-30 Began travel to regional offices and initial meetings/workshops in Iquitos Week 3 Additional meetings/workshops in Iquitos and meetings in Lagunas, Jan 31 – Feb 6 Tarapoto, Pucallpa and Yarinacocha Agreement signed with Neegan International at press conference in Canadian Embassy Mission debriefing meetings held in Lima 4.1.1 Meeting/co-ordination of the Consulting Team A project and mission planning meeting was held in the Orangeville office of R. J. Burnside International Limited in December 1998 between RJ Burnside International and Wayne Dunn & Associates. The Canadian project members of Norm Looker, Andrew Isaak, Grant Bennington, Wayne Dunn and Rodrigo Contreras met to review project progress and planning and to prepare workplans and strategies for the initial project mission trip to Peru. Objectives of the mission were to include set-up of accounting systems, bank account, office employees, training, agreements with other organizations, identification of project opportunities, assist CONAP to begin networking with other institutions and businesses and, if possible, establish an initial inter-indigenous partnership. 4.1.2 Workplan Project Manager, Rui De Carvalho undertook a mission to Lima in May to update CONAP on the status of the project, discuss changes to the project team (see Section 5 for detail on project team changes) and to review the priorities and expectations for the remainder of the project. Based on this mission and the discussions with CONAP and IDB, the project workplan was revised as follows: Project Workplan Task Description of Tasks Who When Update workplan Prepare an update to the Rui De Carvalho By June 1 and sent by original workplan based email to CONAP and on discussions of IDB by June 4 mission of May 18-20 R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 25. Stepping Towards Self-Sufficiency Page 21 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) Project Workplan Task Description of Tasks Who When Complete report Prepare report on work Rui De Carvalho By Mon June 7 completed to date, Wayne Dunn outline of work plan for Andrew Isaak completion (translator) Draft of the The “procedures Wayne Dunn The draft or outline Procedures Manual manual” requires Andrew Isaak should be completed by further definition; It Mon June 14 so that it was agreed that a draft can be sent to CONAP outline would be ahead of the upcoming prepared to be mission discussed with CONAP during the June mission Draft strategic It is important for Wayne Dunn The draft should be operational plan CONAP to visualize the completed by Mon June concept of the 14 so that it can be sent development of its to CONAP ahead of the Strategic Operational upcoming mission Plan (4 year term); it was agreed that this is a The process of task that CONAP has to development of do but that we would Strategic Operational prepare a draft model Plan should remain for consideration and to open until after the get the process started mission to Canada to take advantage of exposure of new ideas Prepare for June 21 It was agreed that it is Rui De Carvalho The draft should be mission essential that this Wayne Dunn completed by Mon June mission be Ken Thomas 14 so that it can be sent appropriately planned Andrew Isaak to CONAP prior to the with the roles of all start of mission participants well defined ahead of time Draft entrepreneurial A number of business Wayne Dunn Should be completed concepts ideas will be put forth Ken Thomas for presentation during for the Executive to the mission; consider and discussion during the upcoming It is being covered in mission (should draw the current working upon on the information report. learned from the visit to the Regions) R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 26. Stepping Towards Self-Sufficiency Page 22 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) Project Workplan Task Description of Tasks Who When Draft marketing A sequel to the previous Wayne Dunn For presentation during concepts task Ken Thomas the June mission Preliminary This ties in with the Wayne Dunn For presentation during identification of previous two items Ken Thomas the June mission products and services Concepts in Draft of preliminary Wayne Dunn For presentation during identification of funds ideas for CONAP to Ken Thomas the June mission develop and follow up in order to achieve long term economic sustainability Submissions to As much of the above Rui De Carvalho/will Before and during the CONAP and IDB should be submitted to compile and make June mission CONAP and IDB even submissions as in a preliminary format appropriate so that the intent of the work is communicated Identify individuals to It was agreed that four CONAP ideally prior to the June receive training and as many as eight mission individuals (for redundancy) should be identified by CONAP to receive training in areas of administration accounting/finance legal issues strategic planning and negotiations June 21 mission Assumed that the full Rui De Carvalho week will be Wayne Dunn allocated/draft agenda Ken Thomas to be prepared outlining Andrew Isaak (who will the week’s proposed remain in Lima - Oscar program Milliones to assist Andrew with the long Morning of June 21 term accommodation) should be dedicated to review the week’s workplan and expectations. R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 27. Stepping Towards Self-Sufficiency Page 23 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) Project Workplan Task Description of Tasks Who When Extended Mission Preliminary list of Andrew Isaak tentative dates tasks: support from Oscar June 21 to September -become familiar with Milliones and from the 18 CONAP its people and Team in Canada (with one trip home or politics through email and visitor from home) -implement telephone administrative procedures -monitor implementation of financial systems -develop web page -provide computer training -develop procedures manual -acquisition of additional equipment -implement some capacity at regional centres Legal Framework Following the terms of Mercedes Manriquez sometime in August Analysis reference and the after her schedule is background material able to allocate the provided by Wayne appropriate time Dunn recognition that if The terms of reference appropriate resources for the analysis will be were available, the reviewed during the analysis would be much upcoming mission and more extensive revised as necessary Workshop on CONAP’s objectives is Wayne Dunn and Ken scheduled to be negotiation and to have the workshop in Thomas assuming that determined conflict resolution Peru to be scheduled to they may be assisting in coincide with a specific such negotiations negotiation individuals David Bennett as an alternative R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 28. Stepping Towards Self-Sufficiency Page 24 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP) Project Workplan Task Description of Tasks Who When Mission by CONAP to Planning of mission to Ken Thomas at the end of September Canada be carried out during Wayne Dunn / early October the June mission in Lima individuals to be selected A draft itinerary will be available for discussion Preparation of Final Final document on how Andrew Isaak November 99 Project Report the objectives of the Rui De Carvalho project were achieved - Wayne Dunn results based management Final Mission to closure to existing To be determined December 99 or more CONAP project - initiation of practically in January new ventures 2000. 4.1.3 Project Meetings Norm Looker and Rodrigo Contreras attended the first meeting with CONAP. Cesar Sarasara expressed his satisfaction with the agreements between R. J. Burnside International Limited and CONAP. Mr. Sarasara also provided information on advancement of dialogues with resource companies such as Shell, ARCO, Chevron, Philips and ICRAF. He also advised that CONAP would be signing agreements with the University of Washington regarding biological research and a religious order to support land demarcation and titling for the Marainor region. Working with Mr. Sarasara, Mr. Looker and Mr. Contreras conducted a preliminary institutional capacity assessment of CONAP to enable the consulting team to better prepare for subsequent missions. A second meeting was held with CONAP on November 16, 1998. In attendance were Norm Looker, R.J. Burnside International Limited (BIL), Cesar Sarasara (CONAP), Luis Katip (CONAP), Jorge Dionisio (CONAP) and Mercedes Manriquez (independent). Contents of the meeting covered concerns and questions by CONAP and more information regarding possible economic agreements:  CONAP expressed interest in having additional workshops associated with Indigenous involvement and petroleum exploration and operation in Peru, following the successful workshop held October 28-31, 1998 with Petro Peru. It was agreed that petroleum and other resource development would be a priority area for the development of business opportunities.  CONAP has been receiving assistance from Canada’s Development & Peace to review laws governing issues about petroleum exploration. Burnside will be contacting them to discuss potential collaboration possibilities. R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.
  • 29. Stepping Towards Self-Sufficiency Page 25 IDB/CANTAP Indigenous Development Program for La Confederación de Nacionalidades Amazónicas del Peru (CONAP)  A possible $45,000 demographics mapping project was discussed. The use of satellite remote sensing using RADARSAT may be useful and will be investigated.  CONAP expressed concern that the large expectations for the project may be difficult to meet, given the limited budget available to CONAP and the consulting team.  Training of two or three people in each of the communities in administration, accounting and marketing has been recommended. The goal would be that those trained could pass on their skills to others. 4.1.4 Selection of Accounting Firm The selection of an accounting firm to assist CONAP with their financial activities is a priority of this project. In keeping with the strategy of associating training with real projects and activities, the consulting team utilized the selection of an accounting firm as a learning opportunity. The consulting team assisted CONAP to establish a process for selecting the accounting firm. The process includes:  Identify accounting and financial support needs (completed)  Based on needs, prepare a terms of reference accounting and financial support (completed)  Identify firms who have the capacity to undertake the work invite proposals (completed)  Establish an evaluation process for ranking proposals (completed)  Screen proposals and conduct meetings/interviews with top candidates (completed)  Evaluate results of meetings/interviews and either select a firm to negotiate a contract with, or request additional information from select firms. (in progress) This process is much slower and more time consuming, but it provides an excellent training and capacity building opportunity for CONAP. 4.1.5 Training CONAP on Computer and Accounting Systems The consulting team decided to use the purchase of computers as another hands-on opportunity to further enhance CONAP’s institutional capacity. Rather than simply purchasing the computers and installing them in CONAP’s offices, the team involved CONAP executive and staff in the entire process including needs identification, supplier review and product selection. During the January/February mission computer training was initiated for CONAP staff and executives. Some already had a basic level of computer skills while others had little or no previous exposure to computers. The training was tailored to focus on the skill/experience level of each participant. Prior to the purchase of CONAP’s new accounting system, the consulting team developed several electronic forms (fax cover sheets, letterhead, meeting attendance recording sheets, etc.), installed them on CONAP’s existing computer system and trained the staff in their use. Several formal and numerous informal and orientation sessions were held in CONAP’s Lima offices during the R.J. Burnside International Limited June, 1999 Wayne Dunn & Associates Ltd.