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

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

R.J. Burnside

International Limited

Confederación de Nacionalidades

Amazónicas del Perú – CONAP

Jirón Brigaidier Pumacahua 974

Jesús María, Lima 11, PERU

Telefax: 511.423.8391

Email: [email protected]

Stepping Towards Self-Sufficiency Page i

IDB/CANTAP Indigenous Development Program for

La Confederación de Nacionalidades Amazónicas del Peru (CONAP)

R.J. Burnside International Limited June, 1999

Wayne Dunn & Associates Ltd.

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

Stepping Towards Self-Sufficiency Page ii





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

Stepping Towards Self-Sufficiency Page iii





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



2457 Bakerview Road, Mill Bay, BC, VOR 2PO, CANADA

Phone: +1.250-743-7619

Fax: +1.250-743-7659


R.J. Burnside International Limited

15 Townline, Orangeville, Ontario, L9W 3R4, CANADA

Phone: 519-941-5331

Fax: 519-941-8120


mailto:[email protected]



Stepping Towards Self-Sufficiency Page 1





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






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






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






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






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






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.






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






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.






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






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.






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.






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.






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






(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.






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.






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






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






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.






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

and Development of Projects

Cesar Sarasara/Manuel MacKenzie






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

Jan 18-25

Activities in CONAP’s national office in Lima

Week 2

Jan 25-30

Activities in CONAP’s national office in Lima

Began travel to regional offices and initial meetings/workshops in Iquitos

Week 3

Jan 31 – Feb 6

Additional meetings/workshops in Iquitos and meetings in Lagunas,

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

original workplan based

on discussions of

mission of May 18-20

Rui De Carvalho By June 1 and sent by

email to CONAP and

IDB by June 4






Project Workplan

Task


Complete report Prepare report on work

completed to date,

outline of work plan for

completion

Rui De Carvalho

Wayne Dunn

Andrew Isaak

(translator)

By Mon June 7

Draft of the

Procedures Manual

The “procedures

manual” requires

further definition; It

was agreed that a draft

outline would be

prepared to be

discussed with CONAP

during the June mission

Wayne Dunn

Andrew Isaak

The draft or outline

should be completed by

Mon June 14 so that it

can be sent to CONAP

ahead of the upcoming

mission

Draft strategic

operational plan

It is important for

CONAP to visualize the

concept of the

development of its

Strategic Operational

Plan (4 year term); it

was agreed that this is a

task that CONAP has to

do but that we would

prepare a draft model

for consideration and to

get the process started

Wayne Dunn The draft should be

completed by Mon June

14 so that it can be sent

to CONAP ahead of the

upcoming mission

The process of

development of

Strategic Operational

Plan should remain

open until after the

mission to Canada to

take advantage of

exposure of new ideas

Prepare for June 21

mission

It was agreed that it is

essential that this

mission be

appropriately planned

with the roles of all

participants well

defined ahead of time

Rui De Carvalho

Wayne Dunn

Ken Thomas

Andrew Isaak

The draft should be

completed by Mon June

14 so that it can be sent

to CONAP prior to the

start of mission

Draft entrepreneurial

concepts

A number of business

ideas will be put forth

for the Executive to

consider and discussion

during the upcoming

mission (should draw

upon on the information

learned from the visit to

the Regions)

Wayne Dunn

Ken Thomas

Should be completed

for presentation during

the mission;

It is being covered in

the current working

report.






Project Workplan

Task


Draft marketing

concepts

A sequel to the previous

task

Wayne Dunn

Ken Thomas

For presentation during

the June mission

Preliminary

identification of

products and services

This ties in with the

previous two items

Wayne Dunn

Ken Thomas


the June mission

Concepts in

identification of funds

Draft of preliminary

ideas for CONAP to

develop and follow up

in order to achieve long

term economic

sustainability

Wayne Dunn

Ken Thomas


the June mission

Submissions to

CONAP and IDB

As much of the above

should be submitted to

CONAP and IDB even

in a preliminary format

so that the intent of the

work is communicated

Rui De Carvalho/will

compile and make

submissions as

appropriate

Before and during the

June mission

Identify individuals to

receive training

It was agreed that four

and as many as eight

individuals (for

redundancy) should be

identified by CONAP

to receive training in

areas of

administration

accounting/finance

legal issues

strategic planning and

negotiations

CONAP ideally prior to the June

mission

June 21 mission Assumed that the full

week will be

allocated/draft agenda

to be prepared outlining

the week’s proposed

program

Morning of June 21

should be dedicated to

review the week’s

workplan and

expectations.

Rui De Carvalho

Wayne Dunn

Ken Thomas

Andrew Isaak (who will

remain in Lima - Oscar

Milliones to assist

Andrew with the long

term accommodation)






Project Workplan

Task


Extended Mission Preliminary list of

tasks:

- become familiar with

CONAP its people and

politics

- implement

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

Andrew Isaak

support from Oscar

Milliones and from the

Team in Canada

through email and

telephone

tentative dates

June 21 to September

18

(with one trip home or

visitor from home)

Legal Framework

Analysis

Following the terms of

reference and the

background material

provided by Wayne

Dunn

recognition that if

appropriate resources

were available, the

analysis would be much

more extensive

Mercedes Manriquez sometime in August

after her schedule is

able to allocate the

appropriate time

The terms of reference

for the analysis will be

reviewed during the

upcoming mission and

revised as necessary

Workshop on

negotiation and

conflict resolution

CONAP’s objectives is

to have the workshop in

Peru to be scheduled to

coincide with a specific

negotiation

individuals

Wayne Dunn and Ken

Thomas assuming that

they may be assisting in

such negotiations

David Bennett as an

alternative

scheduled to be

determined






Project Workplan

Task


Mission by CONAP to

Canada

Planning of mission to

be carried out during

the June mission in

Lima

individuals to be

selected

A draft itinerary will be

available for discussion

Ken Thomas

Wayne Dunn

at the end of September

/ early October

Preparation of Final

Project Report

Final document on how

the objectives of the

project were achieved -

results based

management

Andrew Isaak

Rui De Carvalho

Wayne Dunn

November 99

Final Mission to

CONAP

closure to existing

project - initiation of

new ventures

To be determined December 99 or more

practically in January

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.






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






January/February mission and during the March mission as well. Details of the computer training

include:

Provision of training sessions to Isaac, Rosaura, Fermin, Etty and Jacob in Internet use, e-

mail, Windows, Microsoft Word and Microsoft Excel. As well, the consulting team

developed macros to assist staff in automating key functions such as the production of a

customized fax cover sheet by clicking on a toolbar button. All of the staff was quick to learn

and now have a reasonable knowledge of computer skills. Isaac was extremely

knowledgeable and capable, assisting with computer training and able to help others on an

ongoing basis.

Hands-on computer orientation sessions were held in all regions visited (Iquitos, Lagunas,

Pucallpa and Yarinacocha). In many these sessions were open to the general public and

provided many participants with their first ever opportunity to see and touch a computer.

The consulting team and CONAP concluded that ongoing computer training would be required to

enable staff and executive to continue developing new skills and maximize the value of the computer

systems. A computer training school, CESCA, which is located close to the CONAP offices, have

courses available for continued skill upgrading of CONAP staff.

The provision of basic accounting/bookkeeping training was included in the terms of reference for

consulting firms. The team decided that this would provide the most meaningful opportunity to link

learning with actual tasks, providing a type of on-the-job training for CONAP. Accordingly, the

selected accounting will also be providing basic accounting training for CONAP staff.

4.1.6 Administrative Capacity and Support

The institutional assessment carried out during the initial meeting concluded that CONAP had very

little institutional and operational capacity. The organization’s capacity level was judged to have

deteriorated considerably since the review conducted during the project preparation activity in July

1996.

CONAP executive and the consulting team decided that, where possible, a majority of the work

conducted by the consulting team was focused to include a capacity development component. While

it was clear that this would add time and expense to nearly every activity, and may initially result in a

slower capacity development curve, everyone felt that it would tend to produce a more sustainable

operational capacity within the organization. Prior sections in this report have included detail on the

specifics of implementing this approach.

In March, after consultations with CONAP, the IDB Project Manager and the consulting team, it was

decided that additional focus needed to be placed on enhancing CONAP’s administrative and

operational capacity. The workplan was revised to enable one team member (Andrew Isaak) to

remain in Lima for an extended period to work directly with CONAP on this issue. As well, a second

team member is working on other projects in Lima and will be available on an ongoing basis. In

addition, CONAP will be hiring an Administrative Assistant who will act as a counterpart to Mr.

Isaak and ensure continuity with the work he undertakes.

4.1.7 Working with CONAP Regional Offices






The initial mission included a visit to three regions (Iquitos, Lagunas and Pucallpa/Yarinacocha) by

five consulting team members. As noted previously, project orientations, business development and

negotiation workshops and computer orientation training were conducted in each region.

Additionally, the team members spent time identifying specific business and economic opportunities

(additional detail in Section 4.4) and evaluating and offering advice on specific projects and issues.

As a result of this mission, several new projects are being developed and financing sought.

The March mission also included a two-day mission to Pucallpa/Yarinacocha and additional training,

project identification and consultation work in that office. Mr. Isaak will include at least one trip to

the regions in the workplan for his extended presence.

4.1.8 Project Reports

The initial project report has been organized to include activities during the first two quarters of the

project. It is expected that one additional interim report will be produced and a final report covering

the entire project.

4.2 Task Set 2 – Development of Strategic Plan for Operations

The consulting team has begun working with CONAP to develop a strategic plan for operations.

Progress was made in outlining the need for clear definitions of the roles and responsibilities for

CONAP Directors, staff and volunteers. In keeping with the overall capacity building approach of the

project, these definitions will be developed in collaboration with CONAP and contained within the

Operations Manual. Additionally, various forms were prepared to assist operations (i.e. electronic fax

forms, meeting attendance sheets, etc.) which will become part of the Operations and Procedures

Manual.

A Terms of Reference and background discussion materials for the plan of operations and procedures

manual will be developed.

Some items that will be contained in strategic plan of operations will include:

executive functions and duties

staff functions and responsibilities

office operations guide (i.e. filing, project management, administrative procedures, etc.)

employee and project evaluations

organizational financial strategy.

Mr. Isaak and CONAP executive will complete finalization of the Strategic Plan of Operations during

July and August and staff. The remainder of the consulting team will participate in this process

electronically.

4.3 Task Set 3 – Administration and Financial Training

As noted previously, the accounting firm will supply accounting/bookkeeping and some financial

training. Significant advancement was made in outlining principles of good administration during the

January/February mission and again in the March mission. Some of these principles included:






Office operations practices such as: office hours, telephone answering and call recording,

filing, record keeping [financial, meeting, etc], correspondence records, etc.

Business development and negotiations workshops in Lima and the regions also stressed

various financial and administrative operational issues.

Mr. Isaak, during his long-term mission (June-September) will conduct an administration workshop

with key CONAP executive and staff. The workshop will include people from the regions and will

focus on training to cover the material in the strategic plan of operations and the procedures manual.

The entire consulting team will be involved electronically in the design and development of the

workshop and materials.

4.4 Task Set 4 – Development of Commercial Activities

The identification and development of sustainable commercial activities has been a priority focus of

the entire project. They represent the focal point around which the training and capacity development

strategy has been developed. As well, sustainable commercial activities will provide the means for

CONAP and its member communities to achieve long-term, sustainable financial security.

In collaboration with CONAP, the project team has identified 13 commercial opportunities and is

actively assisting CONAP to begin development of the most promising. The following pages list the

various commercial and economic opportunities. Each opportunity is organized with the following

information:

Background information

Development to date – work that has been completed

Development strategy – a concise strategy of how the consulting team recommends CONAP

move to take advantage of the opportunity

Itemized workplan

Accomplishments and activities under Task Set 6 – Commercialization of Products and Services has

been included under this section.

It must be noted that at this stage these are only opportunities. Before any can be developed into full-

fledged businesses they must be investigated further, detailed business plans drawn up, financing

arranged and operating strategies implemented. It should also be noted that the Inter-American

Foundation has expressed strong interest in investing up to USD$500,000 into the execution of a well

researched business plan that will produce long term, sustainable economic benefit for CONAP. We

believe that several of the following opportunities could be developed to that stage.

4.4.1 Mini hydro electric power generation

Background There is an opportunity to utilize new mini hydro electric power generation

technology to supply power to many communities that are now serviced by

more expensive diesel fired electric power generation systems. This would

be profitable for the proponents and provide communities with cheaper and

more reliable electric power generation, thus stimulating the development of

other businesses.






Development to

date

The consulting team has undertaken a technology search and identified

appropriate systems that have the potential to meet the technical

requirements for deployment in remote Peruvian communities. Lagunas has

been identified as a likely site for the development of the initial project and

the local government has indicated strong interest in the opportunity.

Additionally, a Canadian indigenous business with access to this technology

has been identified and has expressed strong interest in working with

CONAP to explore the feasibility of this opportunity. Meetings have been

arranged for CONAP’s upcoming Mission to Canada.

Development

Strategy

1. Establish a joint-venture with a firm that can provide the necessary

technical and financial capacity.

2. Identify a pilot community to develop the initial project in and then

identify a local partner(s) to work with. The local partner could be a

private business and/or the local government.

3. After sufficient progress is made on the initial project, identify

additional communities/opportunities, prioritize them and develop these

projects as appropriate.

Workplan 1. Establish a joint-venture relationship with a Canadian indigenous firm,

or other firm, which can bring the necessary technical and financial

resources to the partnership. A potential partner has already been

identified and meetings will be held during the upcoming Mission to

Canada.

2. Develop the terms of reference to conduct a pre-feasibility analysis of

this opportunity. A non-exhaustive list of items to be addressed in the

terms of reference includes:

regulatory issues to be addressed to allow for small scale, local

power generation

local market for electric power and potential for growth

electric power pricing structures, current and future

appropriateness of current technology and any technological

issues that need to be addressed

capital and operating cost estimates

preliminary financial viability

terms of reference for development of complete business plan

3. Secure financing and conduct the pre-feasibility study

4. Prepare a business plan and begin development of the business.

4.4.2 Camisea related opportunities

Background The Camisea project is one of the largest gas field development projects in

the world. Total development is estimated in the USD$2 billion plus range.






The gas field is located in lands traditionally occupied by Indigenous peoples

of the Amazon region. The Peruvian government, with assistance from

Canada and other development agencies, is preparing a development process

for the project, after a Shell-Mobil joint venture, which spent several years

advancing the project, failed to meet contract requirements.

The development and operation of this project, which is located in an

environmentally and culturally sensitive area, will be extremely problematic

without the active and constructive involvement of local interests. This was

recognized by Shell-Mobil and will undoubtedly be recognized by

whomever continues with the project development. A local indigenous firm

that has the technical and financial capacity to provide goods and services to

this project would have a strategic advantage in securing contracts and other

opportunities.

Development to

date

CONAP was involved, on a discussion level, with Shell-Mobil during their

involvement in this project. However, the involvement did not reach the

level of discussing the provision of goods and services, as CONAP did not

have access to the necessary capacity at that time. CONAP has also been

involved, on a consultative basis, with a regulatory review process where

Peru is reviewing resource development regulations and examining the role,

if any, of local communities and indigenous peoples in the process. The

project has provided CONAP with nominal assistance in this process by

reviewing the document AYUDA MEMORIA (#001-99-MEM/BM/MG)

and assisting with a negotiation strategy.

The regulatory level is especially important in capturing opportunities in

resource development projects. In Saskatchewan, Canada the legislation,

which enables northern mining development, requires projects to negotiate a

surface land use agreement that provides a nominal level of preference to

northern and indigenous suppliers of goods, services and labour. This has

provided the basis from which a relatively uneducated, isolated and

marginalized group of 40,000 indigenous peoples (including the Lac La

Ronge Indian Band mentioned earlier in this report) have developed

businesses generating in excess of $100 million revenue per year.

The consulting team has had several meetings with the Lac La Ronge Indian

Band’s Kitsaki Development Corporation to discuss their possible interest in

working with CONAP on this opportunity. They also have access to

additional capacity more specific to oil and gas development (pipeline

construction, engineering, etc.) Kitsaki has expressed interest in meeting

with CONAP and exploring this opportunity further. Kitsaki has agreed to

host CONAP and arrange for visits to various business operations during

CONAP’s upcoming Mission to Canada.

Development

Strategy

1. Use a joint venture partner to provide CONAP with the technical and

financial resources to enable the provision of goods and services to the

Camisea project






2. Intervene in the regulatory review process to attempt to create a

regulatory environment that will encourage local and indigenous

business involvement in resource development

3. Liaison regularly with those involved in the project to identify discrete

opportunities for the provision of goods and services to Camisea’s

development.

4. Meet with all potential bidders for the development of each aspect of the

Camisea project to discuss collaboration potential.

Workplan 1. Negotiate a joint venture with Kitsaki Development Corporation or

another suitable joint venture partner.

2. Secure the technical and financial resources to allow CONAP to

intervene effectively in the regulatory review process. Time is critical as

this process is ongoing and it may already be too late.

3. Undertake a thorough review of the Camisea project and identify

specific areas with contract and business potential (i.e. catering,

janitorial, transportation, engineering, environmental services, pipeline

construction, general construction, labour procurement, etc.)

4. Prioritize the opportunities identified and prepare a strategy for the most

promising.

5. Proactively meet with all potential bidders for all aspects of the Camisea

project to inform them of CONAP’s interest in the project and the range

of goods and services that could be provided. It is important that

CONAP be in a position to aggressively market itself during this phase.

CONAP’s support will be a substantial addition to any project bid and

CONAP must be in a position to negotiate downstream opportunities

[and possibly equity] in exchange for that support.

6. Follow up on specific opportunities as appropriate

4.4.3 De-mining opportunities

Background The Peru-Ecuador border area has been under dispute for over 100 years.

During this time armed conflict has erupted numerous times and the region

has seen the placing of vast quantities of anti-personnel mines. The recent

peace agreement brought an end to hostilities and called for major

investment in the development of the region.

The peace agreement, coupled with the Canadian led, global demining

initiative, has created substantial opportunities to provide de-mining services






in the Peru-Ecuador border area.

Development to

date

Initial discussions with officials in Peru and Canada indicate that a joint

venture between CONAP and a Canadian indigenous firm with appropriate

technical capacity would be attractive to agencies financing de-mining

projects in the area.

A Canadian indigenous firm with experience in demining has been identified

and they have expressed strong interest in exploring a partnership with

CONAP. The Alberta based firm, Tsuu Tina, has undertaken demining

projects in Canada and Panama. They have agreed to meet with CONAP

during the Mission to Canada in Sept/Oct.

Canada’s role as a global leader in the demining process, coupled with the

Indigenous component of this project, provides a major competitive

advantage to a joint venture between CONAP and a Canadian indigenous

demining firm such as Tsuu Tina.

Development

Strategy

1. Use a Canadian Indigenous joint venture partner to provide CONAP

with the technical and financial resources to enable the successful

execution of demining contracts.

2. Use a high profile marketing strategy to ensure that all agencies that are

funding demining work in the Peru-Ecuador border area are aware of the

joint venture and its capacity.

3. Utilize a joint-venture strategy with Ecuadorian Indigenous Peoples to

facilitate access to opportunities on the Ecuador side of the border.

4. Identify discrete opportunities for the provision of demining services and

secure contracts to undertake the work.

Workplan 1. Negotiate a joint venture with Tsuu Tina or another suitable joint

venture partner.

2. Identify key funding/contracting sources for demining work in the Peru-

Ecuador border area.

3. Develop a high profile marketing strategy to reach key decision

makers/funders in the demining process.

4. Follow up directly with decision-makers and funding agencies to secure

demining contracts.

5. Parallel to the above steps, identify possible Ecuadorian partners to

enable strategic access to opportunities on the Ecuador side of the border

and follow a similar strategy/workplan as used for the Peru market.






4.4.4 Tourism

Background The Peruvian Amazon and the adjoining Cuzco/Machu Pichu area offer

world-class tourism development potential. There has already been

considerable tourism development, especially in the Cuzco/Machu-Pichu

area; however, to date there has been little constructive involvement by

Indigenous peoples.

The visit to the regions during the January/February mission identified

numerous tourism development opportunities and high levels of local

interest in tourism in every region/community visited. Tourism development

is also a priority of the Peruvian government in their effort to attract new

private investment into the region.

Aside from the natural beauty and wonder of the Amazon, one of the

features that many tourists find most interesting are the Indigenous Peoples

living in the area. Eco-Cultural tourism is the fastest growing segment of the

global tourism industry.

Development to

date

As a result of earlier networking with the Miraflores Chamber of Commerce,

CONAP and the consulting team met with the owner/operator of the Puerto

Palmeras Tarapoto Resort. This resort is part of a chain of resorts operated

by the Corporacion Turistica Amazonica S.A. Discussions were held

covering tourism development in the region, benefits of increased

indigenous involvement and other issues. The meeting concluded with a

commitment to continue discussions with an aim to developing some

collaboration/joint-venture agreement between CONAP and the lodge.

Numerous projects and proposals have been developed for specific tourism

opportunities in Iquitos, Lagunas, Pucallpa and Yarinacocha. As well,

CONAP has identified tourism as a priority opportunity. However, much

remains to be done to bring most projects to the point where they would

become a viable business.

Consulting team member Ken Thomas is the Chairperson of the Canadian

Aboriginal Tourism Commission and has extensive experience in eco-

cultural tourism development. He has also involved another tourism expert,

Dr. George Kanahale of Hawaii, who will, at his own expense, visit Peru and

attend some of the tourism related meetings during the June mission.

Meetings have been arranged to enable CONAP to meet with Canadian

Indigenous tourism operators and officials involved in the promotion of

Indigenous eco-cultural tourism in Canada, during the upcoming Mission to

Canada.

Development

Strategy

Tourism, especially the potential of eco-cultural tourism, represents a major

opportunity for CONAP and its member communities. However, in order to






maximize sustainable local benefits, a focused tourism development strategy

should be developed. This would help to bring focus to the various projects

and products being developed and facilitate increasing indigenous

involvement in the tourism industry of the region.

Workplan 1. During the June mission hold a tourism strategy session with CONAP to

discuss development of the tourism industry in the Peruvian Amazon

and how to maximize indigenous involvement/benefits. At this meeting,

recommend that an Indigenous Tourism Development Strategy for the

Peruvian Amazon be developed. The strategy could address both short-

term opportunities and long term development strategies and

opportunities.

2. If CONAP agrees with this strategy, work with them to prepare a terms

of reference and proposal for financing the work.

3. Secure financing and execute the project.

4. Meet with Canadian Indigenous tourism businesses and review the

Canadian Aboriginal Tourism development strategy during the

upcoming Mission to Canada.

4.4.5 Arts and crafts (Marotishobo)

Background Arts and crafts are produced throughout the region, however the Shipibo

peoples are generally regarded as the leading producers of Indigenous arts

and crafts in the Peruvian Amazon region. In 1975 Marotishobo was created

to assist Shipibo peoples with the commercialization of arts and crafts

products. Originally started by outside development agencies, the

organization is now very much a Shipibo institution. They own a large

warehouse/retail space in Yarinacocha and have arrangements with

producers throughout the Ucayalli region.

Over the twenty plus year history of the institution there have been many

changes in administration, funding and operational levels. Some years have

seen substantial orders from Europe and North America (generally years

when they have collaborated with an NGO who has received funding to

assist them) and other years, such as 1999, there has been little money and

resources. However, throughout its history, the Shipibo people have

remained committed to the organization. This has enabled it to survive the

difficult times.

The organization had built up a substantial cash reserve in the late 1980s.

Unfortunately the internal strife and terrorism in Peru reached Pucallpa and

they were forced to turn this money over to the terrorists.

Currently two factions are in dispute over who has administrative control of






the organization and the organization has little in the way of operating

resources and administrative/marketing/operating capacity.

Despite the current problems, Marotishobo is an organization with a long

history and it has withstood serious problems in the past. We fully believe it

will weather the current dispute and emerge again to serve the needs of

Shipibo arts and crafts producers.

Development to

date

In the context of this project, several meetings have been held with the

organization and the two groups vying for control. The consulting team has

refused to become involved in the dispute in any way. However, at all

meetings the groups were urged to find their own solution to the

problems/disputes and find ways to work together.

Development

Strategy

Do nothing until the current dispute is settled. Intervening in any way and

on any side will likely exacerbate the situation and prohibit a sustainable

solution from evolving.

Workplan If/When the current dispute is settled, we would recommend that

Marotishobo be supported to develop a business plan that would help them

to develop a strategy to become financially self-sufficient and lessen

dependence on outside NGOs and external resources.

4.4.6 Transportation Services

Background Much of the transportation of goods in the region is done by water.

Anecdotal discussions with producers in Lagunas suggested that

transportation is unreliable and that crops have perished waiting for

transportation to markets in Iquitos and Tarapoto.

There is considerable interest in resource development (oil and gas, mining

and forestry) in the entire region. The Camisea project, the expected upturn

in oil and gas and mineral prices, coupled with the opening of new areas for

exploration in the Peru-Ecuador border area, will generate ongoing

exploration and, possibly, resource development activity in the region. This

activity will require transportation infrastructure and services.

The provision of transportation services has proven to be a profitable

strategy for many Canadian indigenous firms. Ranging from Arctic shipping

and barging, to commercial airlines to truck transportation, this sector has

been an attractive source of opportunity in Canada.

Development to

date

The consulting team has arranged for CONAP to meet with Canadian

Indigenous firms involved in the transportation industry during the

upcoming Mission to Canada.

Development

Strategy

If an opportunity exists in this sector, it will require a joint-venture partner

with the technical and financial capacity to work with CONAP to develop






the business.

Workplan 1. Develop a terms of reference for a preliminary review of the

transportation industry in the Peruvian Amazon and note opportunities

that may be developed.

2. Meet with Canadian Indigenous firms involved in the transportation

industry during the upcoming Mission to Canada.

3. Further explore the most promising opportunities.

4.4.7 Development services in the border area

Background The Peru-Ecuador peace agreement has created significant international

interest in supporting development activities in the border areas, which have

been hard hit by many decades of conflict. The World Bank and the IDB

have each committed USD$500 million for development projects in the

region. As well, efforts are being made to secure commitments from other

donor countries and agencies. In addition, the enhanced security that is

provided by the Peace Agreement will stimulate private sector investment in

the region.

Indigenous Peoples, living relatively traditional lifestyles, are the main

population of this remote area. Any development activities undertaken will

need to be appreciative of their interests and requirements and, to be

successful should involve them directly.

Development to

date

The consulting team has met with IDB officials concerning Indigenous

involvement in the border area development process and the importance of

maximizing it.

Development

Strategy

CONAP, with its membership base in the region, understanding of local

issues and language is in an excellent position to add considerable value to

development programs and initiatives in the region. They would be

desirable as a partner for national and international agencies seeking to

deliver programs and projects in the area.

Workplan 1. Meet with various agencies (World Bank, IDB, CIDA, etc.) that will be

involved in financing development projects in the area to determine the

type and amount of projects expected to be executed.

2. Identify those projects and areas where CONAP’s expertise, knowledge

and network would add the most value.

3. Seek out institutions and NGOs that would be suitable partners to bid on

projects and/or develop proposals to undertake specific work in the

region.






4. Follow-up as appropriate

4.4.8 Educational program delivery/International Indigenous University

Background Education and educational program delivery is a key requirement, and

component of development. Regular access to post-secondary education

will raise the educational level of CONAP’s membership, providing a key

building block for development. Development agencies and multi-lateral

institutions are dedicating financing to enhancing post-secondary education

opportunities.

The Saskatchewan Indian Federated College (SIFC)

(www.sifc.edu/index.html) has years of experience in providing training and

education to Canadian Indigenous Peoples. They also have Spanish

language capacity and several years of experience in delivering indigenous

development programs to Latin American Indigenous peoples. They have

recently launched a new department, the Indigenous Centre for International

Development (http://www.sifc.edu/int/start.htm). A major initiative of the

College is the creation of an International Indigenous University.

Development to

date

The consulting team has held several meetings with SIFC and has

established that there is a keen interest in working with CONAP on

individual program development and delivery and in integrating CONAP

into the proposed International Indigenous University.

Arrangements have been made to allow CONAP to meet with SIFC officials

and to tour the Saskatchewan facilities during the upcoming mission to

Canada.

Development

Strategy

Develop a joint-venture or collaborative agreement with SIFC or other

appropriate institution to allow CONAP to participate in the development

and delivery of education and training programs/infrastructure for

Indigenous Peoples in the Peruvian Amazon.

Workplan 1. Arrange for direct discussions between CONAP and SIFC to begin

exploring the possible extent of collaboration and cooperation between

the two institutions.

2. Follow-up on discussions as appropriate. This could include developing

a discussion paper outlining the potential and scope of a relationship.

3. Develop an agenda/itinerary for CONAP/SIFC meetings that will occur

during the upcoming Mission to Canada.

4. If the meetings are favourable, facilitate an SIFC mission to Peru to

explore the partnership further and begin development of a

partnership/collaboration plan of action.

http://www.sifc.edu/index.html

http://www.sifc.edu/int/start.htm






4.4.9 National Park Development

Background The World Bank has approved a USD$20 million project to develop four

national parks in Peru. One of the parks will be in the Peru-Ecuador border

area and will require the participation of local Indigenous Peoples

(Awarunas and the Bamdisas). The park development process will include a

range of socio-economic, environmental, demarcation, ecological and other

studies and the development of operation and development plans.

Development to

date

CONAP has met with the World Bank officials regarding this project and

there is a general agreement that CONAP will be contracted to provide some

of the services required for the feasibility study on the park.

Development

Strategy

Utilize joint-ventures to give CONAP the technical, administrative and

financial capacity to capture contract opportunities associated with the

development of all four parks. CONAP may wish to explore the possibility

of developing local partnerships to facilitate securing contracts with the three

parks that are not in CONAP’s main area.

Workplan 1. Meet with World Bank officials to identify the full range of studies and

work required to develop the park and determine the skills/capacity

required to undertake each of them.

2. Identify partners and collaborators who have the technical capacity and

are willing to work with CONAP to complete the various studies and

other contracts.

3. Maintain close communication links with World Bank and other

officials involved in the development of the parks, identifying specific

opportunities and following up with bids and proposals as required.

4.4.10 Geographical Information Systems and Remote Sensing

Background There are many unresolved land and demarcation issues in the Peru-Ecuador

border area, in other areas of the Peruvian Amazon and throughout Peru.

Developing digital data on land, traditional territories, demining, geographic

and geological structures and social patterns on the land will be of increasing

interest to governments, private industry, development interests and

Indigenous Peoples themselves (this is simply a modern extension of

Indigenous Peoples historic connection to and understanding of the land and

its resources).

Advances in geographic information systems (GIS) and remote sensing

technology are making this work more effective and less costly. It is

expected that increased use will be made of GIS and remote sensing






technology by governments, private industry, development interests and

others involved in the Peruvian Amazon.

Development to

date

A Canadian indigenous firm that has appropriate GIS and remote sensing

technology has been identified and has confirmed an interest in working with

CONAP to explore the feasibility of establishing a business to provide

services to governments, development interests and the private sector in

Peru.

Meetings are being arranged to enable CONAP to meet with this firm and

see demonstrations of their technology during the upcoming mission to

Canada.

Development

Strategy

Secure access to necessary capacity through a joint-venture and explore the

feasibility of developing a business to offer GIS services in Peru.

Workplan 1. Conduct preliminary research on the market for GIS/remote sensing

services in Peru (to be completed by Mr. Isaak during July/August)

2. Meet with Canadian Indigenous firm(s) involved in GIS/remote sensing

businesses during the upcoming Mission to Canada.

3. Negotiate an agreement (with a Canadian Indigenous firm or another

appropriate firm) and explore the feasibility of launching a business to

provide GIS/remote sensing services to the Peruvian market.

4.4.11 Forestry & non-timber forest products

Background The traditional territory of CONAP’s member groups encompasses vast

reserves of marketable timber and non-timber forest resources. Although

development has been hampered by lack of transportation infrastructure and

access to markets, vast areas of forest have already been harvested with little

or no involvement of local Indigenous Peoples. The majority, (many would

say all) of this logging has been undertaken with little or no regard for the

long-term environmental impacts.

Small, regionalized attempts at developing and marketing non-timber forest

products have been undertaken throughout the region. These include Cat’s

claw, Jute, tea/berry products and many other products with commercial

potential. For the most part these efforts have been led by non-indigenous

firms and/or by international NGOs and have not been approached as a

business by Indigenous Peoples.

Development to

date

A meeting to explore the potential of collaborating with CONAP to harvest

and market Amazonian products was held with Mushu S.A. Productos

Naturales, a Peruvian company that produces teas and other natural products.

Several local Indigenous organizations and individuals are in various stages






of developing proposals/projects for the production of Jute, Cat’s Claw and

other non-timber forest products. During the project preparation mission in

July 1996 the consultants toured a Cat’s Claw plantation that was being

developed in San Francisco, a Shipibo community outside of Yarinacocha.

The consulting team is not aware of any current commercial indigenous

involvement in traditional forest harvesting for timber and fiber.

Development

Strategy

The full range and extent of the opportunities represented by timber and non-

timber forest products are not fully known. The first step should be the

creation of (using a participatory based process) a sustainable forest usage

strategy and opportunity identification study for the entire region. Upon

completion of this strategy and study, CONAP would prioritize the

opportunities identified and, through joint-ventures or other means, assemble

the resources and capacity to develop the most promising opportunities

Workplan 1. Prepare a terms of reference for the participatory development of a

sustainable forest usage strategy and opportunity identification study.

2. Secure the financial and technical resources to complete the

strategy/study project, ensuring that adequate resources are available to

facilitate community and local participation in the process.

3. Prioritize opportunities identified and develop a strategy (Joint-Venture

or other) to develop the most promising opportunities.

4.4.12 Services to petroleum and mineral exploration

Background Peru has vast reserves of mineral and petroleum related deposits. Two world

class projects are currently entering into development, the Camisea gas field,

and the Antamina copper mine. The settlement of the Peru-Ecuador border

dispute has increased interest in exploration in northern Peru. As well, the

Peruvian government is actively promoting investment in mining and

petroleum exploration and development in Peru.

Much of the exploration and development activity will occur on or near

lands traditionally occupied by Indigenous Peoples. As discussed earlier,

local Indigenous peoples will play a significant role in the resource

development process and, if they have the necessary capacity, will have a

strategic advantage to provide goods and services to the industries.

Canadian Indigenous businesses have much experience in providing goods

and services to mineral and petroleum exploration and development.

Development to

date

A number of Canadian Indigenous businesses with expertise and experience

in providing goods services to mineral and petroleum exploration and

development projects have been identified. These businesses include






transportation [marine, air, surface], catering, janitorial, environmental

management, environmental monitoring, security, pipeline construction,

logistics, GIS and remote sensing, labour procurement/management,

training, etc. Meetings have been held with many of these firms and most

have agreed to be available to meet with CONAP during the upcoming

mission to Canada.

Canadian resource companies that make use of indigenous suppliers have

been identified and one, CAMECO, has agreed to host part of the upcoming

Mission to Canada.

The provision of goods and services to resource development projects was a

major topic of discussion at business development seminars held throughout

the region during the January/February mission.

Several of the opportunities in this category are already being developed (see

other items in this section for details)

Development

Strategy

Identify the goods ands services that have the best potential for development

into profitable and sustainable businesses and use a joint-venture strategy to

build niche businesses.

Workplan 1. Continue development of the opportunity categories listed previously

(Camisea, GIS/remote sensing, transportation, environmental services,

etc.).

2. Develop a network of industry, government and development people

involved in resource exploration and development and communicate

CONAP’s interest in doing business in this sector.

3. Develop a terms of reference to undertake a systematic review of current

and expected opportunities.

4. Meet with Canadian indigenous firms involved in supplying goods and

services to resource exploration and development, and with Canadian

resource companies that use indigenous suppliers during the upcoming

Mission to Canada.

5. Systematically develop businesses (using a joint-venture strategy) in the

most promising sectors

4.4.13 Environmental Services

Background The Peruvian Amazon region is recognized as one of the most

environmentally sensitive areas on the planet. The region is also the focus of

increased private sector investment, much of which is in resource






exploration and development activities. New environmental legislation and

a growing global commitment to environmental stewardship and

sustainability will create a expanding market for environmental

management, monitoring and other environmental services.

Currently non-indigenous firms provide all environmental services in Peru

(and foreign firms provide much of that). As noted earlier, local indigenous

interests have a strategic advantage in the provision of goods and services to

resource and development projects.

Development to

date

The consulting team has identified Canadian indigenous businesses with

capacity in environmental management and monitoring and an interest in

working with CONAP to explore and develop opportunities in Peru.

Meetings have been arranged to allow CONAP to meet with these firm(s)

during the upcoming mission to Canada.

Development

Strategy

Use a joint-venture strategy to develop the necessary technical, financial and

administrative capacity. Develop and implement a communications and

marketing strategy to ensure that the marketplace is aware of the capacity

and ability that CONAP has to provide environmental management and

monitoring services.

Workplan 1. Meet with Canadian indigenous firms during upcoming Mission to

Canada.

2. Negotiate a joint-venture agreement with a partner that can provide

CONAP with the necessary technical, financial and administrative

capacity to develop a business in this area.

3. Develop a business plan and secure financing for implementation.

4.4.14 Sectoral and Regional Opportunities

In addition to the above opportunities, a number of sectoral and local/regional level opportunities

have been identified and warrant additional investigation. With support from the entire consulting

team, Mr. Isaak and Mr. Milliones will work directly with CONAP during July and August to further

explore opportunities such as:

Rice Production The Canada/Peru fund (FONDU/Peru-Canada) has approved 600,000 Soles (approx.

USD$180,000) for a 200 ha. rice production project with the Awarunas. This project will start in

September 1999. The consulting team will assist by providing training for administration, accounting

and project management within this project. The organizer for the project will be coming to Lima for

the training. Mr. Isaak will work with CONAP and other development officials to explore

opportunities for additional rice development projects. Where feasible opportunities are available, the

consulting team will assist local project proponents to develop business plans and secure start-up






financing. Key issues that will need to be addressed to establish viable rice production operations

include: market, transportation, processing, regulations, climate, production skills/knowledge needed,

capital and operating costs, administration and operation.

Jute Jute is an annually renewable natural product, which makes little demand on the world's scarce

energy resources. It is a major textile fiber and also used as a material for eco-friendly manufacturing

of many products. Jute production was successful in Lagunas, Iquitos and other areas in the past, but

only when receiving significant levels of subsidy through NGOs and/or government agencies. The

consulting team will explore this opportunity further and, where feasible, assist individuals and

organizations to identify and develop economically sustainable Jute production and marketing

operations. Key issues that will need to be addressed to establish viable Jute production operations

include: market, transportation, processing, regulations, climate, production skills/knowledge needed,

capital and operating costs, administration and operation.

Silkworm production

A local entrepreneur in Iquitos has conducted extensive research on local silkworm production. The

consulting team will assist the entrepreneur to explore this opportunity further and, if warranted,

attempt to secure start-up financing and necessary skills upgrading (production skills, administration

and management, etc.)

Fishing In Tipishca (a lake near Lagunas) there is a well-known and liked species of trout. This has a potential

for a market in Tarapoto (with about 300,000 inhabitants) and Yurimaguas. If an individual or

organization can be found who wishes to pursue this opportunity further, the consulting team will

assist them to explore the viability, develop a business plan and secure the necessary financial

resources and skill development support to operate it as a sustainable business.

Coffee production

There may be an opportunity to develop coffee production in the Selva Central (Satipo, Villa Rica).

The consulting team will explore this further and, if promising, an initial development strategy will be

advanced

In addition to the above sectoral opportunities, CONAP has identified regional opportunities. Rice

and banana production may be economically feasible in the Selva Norte-Occidente (Amazonas y

San Martin regions) now that a new road to Chiclayo has improved market access. In the Selva Sur

(Cuzco and Urubamba regions) CONAP has identified forestry, cattle ranching and tourism as

opportunities that need to be further explored. As noted above, coffee production has been identified

as a key opportunity for the Selva Central.

The consulting team will attempt to further define these regional opportunities and identify

entrepreneurs (organizations or individuals) who are committed to developing them into viable

business operations. When committed entrepreneurs are found, assistance will be provided to support

their efforts to develop a business plan and secure start-up resources (financial and training).

4.5 Task Set 5 – Development of Projects






In addition to the commercial and economic projects detailed in the previous section, the consulting

team has been working with CONAP to identify and develop other more developmental projects and

to assist with ongoing projects CONAP is working on.

4.5.1 Development and Peace

CONAP has been receiving assistance from Development & Peace, a Canadian non-profit

organization. Development & Peace has been assisting in the review of laws that govern how

indigenous people will be treated with regard to petroleum exploration. This information needs to be

transmitted into a language that the indigenous people can understand. Their work would be very

complimentary to the work of this project’s legal analysis. The consulting team will follow-up with

Development and Peace directly to identify any potential opportunities for collaboration.

4.5.2 Inter-American Foundation Project

A project was developed and a proposal submitted to the Inter-American Foundation (IAF), a United

States government development agency. The project included capacity development, training, and

assistance for identifying and developing business and economic projects. IAF advised that they no

longer fund ‘soft’ development costs, but that they would be prepared to give priority consideration to

investing up to USD$500,000 in a specific business, after the feasibility has been confirmed and a

business plan prepared. It is expected that one of the commercial opportunities identified earlier will

be developed and submitted to IAF for consideration.

4.5.3 Neegan International Partnership

As noted previously, CONAP has entered into a cooperation/joint-venture agreement with Neegan

International. This project, which was facilitated by the consulting team, but entirely financed by

Neegan and CONAP, has the potential to produce numerous additional projects, some of which are

outlined in earlier sections.

4.5.4 Canadian International Development Agency

Neegan International is developing a project to secure additional financing to facilitate the next stages

of development of projects and opportunities discussed in section 4.4 and to implement the agreement

signed with CONAP in January 1999. Numerous meetings have been held with Canadian officials on

this regard. An initial proposal was submitted to Aboriginal Business Canada and to Mr. Blaine

Favel, Counsellor for International Indigenous Development at Canada’s Department of Foreign

Affairs and International Trade.

4.5.5 Foncodes

The consulting team and CONAP have met with FONCODES to discuss possible project scenarios.

Discussions concerning funding to begin developing a reliable water supply or infrastructure project

in Lagunas are currently underway. The consulting team will continue working with CONAP and

FONCODES to follow-up on these discussions and to identify new project opportunities.

4.5.6 Border area projects

As discussed earlier, settlement of the long-standing dispute on the Peru-Ecuador border has

stimulated international interest in development in the area. The World Bank, the IDB and other

development institutions are all planning major project spending in the area. The consulting team






will assist CONAP to identify specific project opportunities and to follow-up with proposals as

appropriate.

4.5.7 Investment promotion mission and seminar

The consulting team is working with CONAP to identify financial resources to expand the scope of

the upcoming Mission to Canada. The current IDB project provides minimal funding for two people

from CONAP to travel to Canada to meet with potential Canadian indigenous partners. Canada is a

huge country and the current budget will only allow CONAP to visit one area of the country. The

preferred scope of the mission would include additional CONAP participants, resources to travel to at

least three regions of Canada and to Washington, where the IDB has expressed interest in hosting a

Round Table to promote CONAP’s business and economic development opportunities. The June

mission will further explore this opportunity and identify a development strategy.

4.6 Task Set 6 – Commercialization of Products and Services

The work and activities on this task set have been combined with Task Set 4 and have been

reported on in Section 4.4.

4.7 Task Set 7 – Legal Analysis

Events such as the United Nations Conference on Environment and Development (Rio

Summit/UNCED), the International Labour Organization’s adoption of Convention 169 on

Indigenous and Tribal Peoples and the UN Declaration on the Rights of Indigenous Peoples (Draft)

that was adopted by the United Nations Working Group on Indigenous Populations, are part of a

global trend towards addressing indigenous issues in national laws and international instruments.

Indigenous Peoples in Peru are affected by a number of national laws and international instruments

that aid or hinder their development aspirations.

In order to take full advantage of opportunities and rights afforded under existing national and

international instruments, and to be informed participants in national processes aimed at enhancing

existing legislation and, where appropriate, creating new legislation, it is necessary to have an

understanding of the existing national laws and international instruments that affect Indigenous

Peoples in Peru.

The consulting team has completed an initial identification and evaluation of international directives

and instruments affecting indigenous peoples and their development. Eight directives and

declarations were identified and reviewed. A terms of reference for further detailed analysis was

prepared and Ms. Mercedes Manriquez, a qualified Peruvian lawyer with extensive background in

Indigenous issues and a good working relationship with CONAP has been selected to complete the

analysis. In addition to Ms. Manriquez’s professional expertise, it was felt that retaining her to

complete the analysis would ensure that the information developed would remain available to

CONAP through her ongoing volunteer work with the organization. CONAP and the consulting team

concluded that engaging another lawyer would leave only a written version of the information

available, while with Ms. Manriquez the information would be available in the report, and it would

also come through in her other work with CONAP.






The directives and declarations that Ms. Manriquez will explore further include:

4.7.1 World Bank: Operational Directive 4.30 – Involuntary Resettlement

Adopted in June 1990

Presently under review.

This directive was prepared for the guidance of World Bank staff. It describes policy and procedures

for managing involuntary resettlement and lays out consultation and compensation processes that

borrowers are expected to meet.

The objective of the policy is to ensure that the population displaced by a project is properly

consulted and receives adequate compensation and benefits.

4.7.2 World Bank: Operational Directive 4.20 – Indigenous Peoples

Adopted in 1982

Revised in 1991

Presently under revision

This directive describes Bank policies and procedures for projects that affect Indigenous Peoples. It

seeks to ensure that Indigenous Peoples benefit from projects on their lands, by setting out basic

definitions and policy guidelines for meaningful consultation. As well, it promotes respect for the

human rights, dignity and cultural uniqueness of the Indigenous Peoples concerned.

4.7.3 IDB: Community Consultation, Sustainable Development

Published - March 1996

This paper, authoured by two officials of the IDB, presents a conceptual framework for addressing

community consultations in the context of resource development. The paper discusses issues

regarding the benefits, risks, timing, costs, methods and techniques for community consultations as a

first step to establishing positive relationships and project guidelines.

The document analyses terminology such as consultations, participation, community, interested

parties and their interrelationships as it pertains to sustainable development. While this paper is not

currently a formal IDB policy, it does suggest future direction and is already used as an informal

guide by managers and others involved in project development.

4.7.4 IDB: Operational Directive 710 – Involuntary Resettlement

Approved by the Board of Directors July 22, 1998






This policy applies to all IDB funded operations that require the involuntary physical displacement of

people. The objective is to avoid or minimize the need for involuntary resettlement and to minimize

the disruption to the livelihood of peoples living in the project’s area of influence. If resettlement is

unavoidable, the policy dictates that a plan is prepared to ensure that the affected people receive fair

and adequate compensation and rehabilitation.

4.7.5 ILO: Convention 169

Adopted in 1989

Ratified in thirteen countries (as of Dec. 1998)

Under consideration in many other

The International Labour Organization (ILO) is the oldest Specialized Agency of the United Nations.

ILO Conventions are adopted at the bi-annual ILO meeting. Ratification of the Conventions occurs at

the nation state level.

ILO Convention 169 is the only international instrument pertaining to human, social and economic

rights of indigenous and tribal peoples in independent countries. It revises a previous ILO

Convention 107 adopted in 1957.

Convention 169 recognizes Indigenous Peoples, their connection with the land, and promotes

consultation and meaningful participation in projects.

Convention 169 has been ratified in thirteen countries and is under consideration in many others.

Even countries that do not adopt Convention 169 often use it as a basis for constitutional reform to

incorporate the rights of Indigenous Peoples. Convention 169 has also been a guiding factor in the

development of policy by many other international institutions.

4.7.6 UNCED: Chapter 26, Agenda 21

Adopted at the United Nations Conference on Environment and Development – Rio de

Janeiro 1992

Chapter 26 recognizes the historical relationship of Indigenous Peoples with their land, and promotes

their involvement in activities on the lands they occupy. It also seeks to protect Indigenous Peoples’

lands from activities that are environmentally unsafe.

Agenda 21 is a moral declaration that is non-binding on its signatories. However, it is often used to

promote inclusion of Indigenous Peoples in sustainable development.

4.7.7 UN Declaration on the Rights of Indigenous Peoples (Draft)

Adopted by the United Nations Working Group on Indigenous Populations (an organ of the

UN Commission on Human Rights in 1993)






Presently under consideration by the UN Commission on Human Rights (member states have

pledged its adoption within the UN Decade of the World’s Indigenous Peoples [1995-2004])

The declaration sets out a number of historic rights and principles of social and economic

development to guide relationships between nation states and Indigenous Peoples. Although the

document will be non-binding and is still in a draft state, it is presently used to promote principles of

social and economic development for Indigenous Peoples.

4.7.8 OAS Declaration on the Rights of Indigenous Peoples (Draft)

Draft document presented to OAS in 1997

Presently under consideration by the OAS

The Organization of American States (OAS) mandated the Inter-American Commission on Human

Rights to develop a declaration on the rights of Indigenous Peoples. Following a consultative phase

involving indigenous organizations, technical institutions and nation states, a draft document was

presented to the OAS for consideration in 1997. The document incorporates important principles

from other instruments such as the ILO Convention 169, Agenda 21 of the Rio Summit, the UN

Declaration and the World Bank directive. The declaration is expected to be used to guide interaction

between Indigenous Peoples and governments, business and other institutions that impact their lives.

4.7.9 National Laws

Ms. Manriquez will complete the identification and analysis of relevant national laws.

In addition to Ms. Manriquez’s work, the consulting team has already provided comments on the

document AYUDA MOMORIA (#001-99-MEM/BM/MG). This document is a framework for much

larger negotiations between the indigenous people and the petroleum companies. CONAP noted that

these comments were useful for CONAP during negotiations with the World Bank and the

government of Peru. Highlights of the analysis include:

there are no minimum standards for what must be contained in future agreements, nor what type

of compensation should be included

the document does not discuss what types of jobs could be provided, including training programs

for the indigenous people

there is no mention of revenue sharing for the exploitation of resources on indigenous land

CONAP should request a moratorium on any development for at least one year to allow time to

have proper negotiations and request appropriate funding from the Peruvian government

resolution of conflicts in the agreement is weak and it is suggested that a very detailed dispute

resolution process be developed

this document is a positive step to include the indigenous people in these negotiations; however,

training and funding must be included for this to make them an equal partner.

4.8 Task Set 8 – Mission to Canada






The consulting team completed preliminary planning for the upcoming mission to Canada and has

identified a supplemental set of activities that, if they can be financed, would add considerable value

to CONAP’s experience.

The core activities, which will occur in Saskatchewan, a province in central Canada, are:

4.8.1 Meetings with Indigenous businesses

Meetings have been arranged for CONAP to visit indigenous businesses and meet with leaders and

managers in a number of areas including:

Transportation

De-mining

Catering

Security

Wild Rice processing and marketing

Tourism

Mini-hydro

Underground mining

Mining services

Environmental services

Manufacturing

CONAP will have an opportunity to discuss how the businesses were established, particular

challenges and constraints, and other relevant issues. As well, time will be made available for direct

discussions that could lead to the development of business partnership/joint-venture arrangements.

4.8.2 Meetings with Indigenous Institutions

Arrangements have been made to enable CONAP to meet with officials and executives from various

indigenous institutions and political organizations. This will provide an opportunity for the sharing of

experiences and insights. As well, CONAP will meet with the Chief of the Lac La Ronge Indian

Band to discuss the twinning of Lac La Ronge and Lagunas. Other institutions and organizations that

CONAP will meet with include:

Tribal Councils

Development Corporations

Band Governments

Federation of Saskatchewan Indian Nations

Saskatchewan Indian Federated College

Indigenous controlled/operated health facilities

Indigenous controlled/operated social service facilities.

4.8.3 Meetings with resource companies

In addition to meeting with Indigenous businesses, institutions and organizations, at least one meeting

will be held with a major resource company that has been very successful in working with Indigenous

Peoples. CAMECO, a major Canadian mining company will host CONAP and discuss how






CAMECO’s operations employ over 600 Indigenous Peoples and purchase over $100 million/year in

goods and services from Indigenous Peoples. The consulting team anticipates setting up additional

meetings with resource companies as well.

4.8.4 Meetings with Federal and Provincial government officials

CONAP will also be meeting with officials from various departments of the Saskatchewan and

Canadian governments. This will provide an opportunity to discuss the role the government has

played in indigenous development in Canada and may identify opportunities for cooperation between

the Peruvian and Canadian/Saskatchewan governments on indigenous development. Consideration is

being given to inviting a representative of the Peruvian government to accompany CONAP on the

entire mission. Costs for this will need to be financed outside of this project.

4.8.5 Other meetings and activities

Other meetings and activities will include tours of local communities, interviews and press

conferences with local media and other events.

4.8.6 Expanding the Mission

As noted earlier in this report, the consulting team is working with CONAP to identify resources to

expand the mission to include additional CONAP representation, visit additional locations in Canada

and include a round table at the IDB in Washington.

Additional Canadian locations that would be considered are:

Alberta – visit the operations of Tsuu Tina demining operation and also meet with Indigenous

businesses that are successfully supplying goods and services to petroleum exploration and

development.

Nunavut – meet with the Inuit leaders of Canada’s newest territory and largest land claim to discuss

political, economic and development issues.

Ottawa and Southern Ontario – meet with various national indigenous organizations and leaders

and with additional federal officials and with indigenous businesses located in Canada’s capital

region.

Vancouver area – meet with a successful indigenous pipeline construction company and with the

companies that awarded their initial contracts.

4.9 Task Set 9 – Signing of Cooperation Agreements

The consulting team has worked with CONAP to build on CONAP’s existing cooperation agreements

and to identify and develop new opportunities for strategic cooperation and collaboration.

4.9.1 University of Washington






CONAP has a long-standing relationship and agreement(s) with the University of Washington. The

consulting team is working with CONAP to identify opportunities for building on this established

relationship.

4.9.2 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 productively in the Peruvian

economy.

The agreement, which was officially witnessed by the Canadian Ambassador, will focus on three key

areas:

The creation and execution of a comprehensive economic development strategy for CONAP

and its member regions. The strategy will concentrate on enabling Indigenous participation in

key sectors of the Peruvian economy and will focus on business and economic opportunities for

Peruvian indigenous peoples at the local, regional and national levels. Additionally, the strategy

will identify specific business opportunities, prioritizing three with the potential for

commercialization as joint ventures with Canadian indigenous businesses. Where appropriate,

this strategy will build on the successful experiences and best practices of Canadian indigenous

businesses.

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.

4.9.3 Anecomsa

Anecomsa is an indigenous organization of the Peruvian highland (Andean) region. Anecomsa was

also the recipient of technical assistance financial support from the IDB. The current CONAP/IDB

project was designed and developed at the same time and by the same team that designed and

developed the CONAP project. CONAP has signed an agreement with Anecomsa to, as much as

practically possible, collaborate in the execution of their respective projects.

4.9.4 Lagunas – Lac La Ronge twinning agreement

During the visit to Lagunas in the January/February mission, community leaders asked the consulting

team and Neegan to assist them to identify a Canadian Indigenous community that would be a

suitable twinning partner. The consulting team researched prospective Canadian communities and

identified the Lac La Ronge Band as an ideal partner. Lac La Ronge Band communities live on

isolated waterways with limited transportation infrastructure and, until recently, lived a pre-






dominantly subsistence level lifestyle. However, as noted in other sections, Lac La Ronge has

recently utilized a joint venture strategy to develop $40 million/year in business operations.

Neegan has met with the Chief of the Lac La Ronge Band and they are interested in pursuing a

twinning agreement with Lagunas. A visit to Lac La Ronge communities will be included in the

upcoming mission and meetings have been arranged to allow direct discussion between the two

parties.

4.9.5 International Indigenous University/SIFC

As noted earlier, the Saskatchewan Indian Federated College has begun taking steps to establish an

International Indigenous University. The consulting team has held meetings with key officials in the

institution to discuss how CONAP and the Indigenous Peoples of Peru may be included in this

process. SIFC is very open to finding mechanisms to enable this and will be meeting with CONAP

during the upcoming mission to discuss how a cooperation agreement/joint-venture may be

structured.

4.9.6 Miraflores Chamber of Commerce

The Miraflores Chamber of Commerce has expressed interest in building a closer relationship with

CONAP. The consulting team will work with CONAP to further develop this potential cooperation

agreement.

4.9.7 Inter-Indigenous Partnerships

As noted earlier, inter-indigenous partnerships and cooperation agreements with Canadian indigenous

businesses can help CONAP acquire sustainable technical and financial capacity to apply towards

development opportunities and aspirations. Section 4.4 details a number of potential cooperation

agreements in this area and the work that has been undertaken to develop them.

4.10 Task Set 10 – Final Report

No work on the final report has been undertaken to date.






5 CHANGES TO CONSULTING TEAM

Based on the progress of the project over the first four months, changes to the workplan/consulting

team were proposed to CONAP and the IDB. The purpose of these changes, which were accepted by

both parties, is to provide a stronger presence in Peru while maximizing the resources available to

assist CONAP. Summaries of the proposed changes to the consulting team are as follows:

New Project Manager - As a result of Norman Looker leaving R. J. Burnside International, Mr.

Rui De Carvalho has been assigned the role of project manager. Mr. De Carvalho has

considerable project management experience both in Canada and internationally.

Associate Project Manager Position – Consulting team member Wayne Dunn’s role has been

expanded and he will assume responsibility as the Associate Project Manager. This will enable

Mr. Dunn to more fully apply his considerable expertise in indigenous business development and

inter-indigenous partnerships to the goals and objectives of the project.

New Project Team Member - Mr. Ken Thomas of Neegan International Limited, has joined the

project team to assist CONAP with partnerships, capacity development, and business and

economic development. Mr. Thomas is one of the leading indigenous business people in Canada

and has assisted thousands of indigenous businesses with development, operation and financing

issues. He has also assisted Canada with indigenous business and development policy.

Extended Consulting Team Presence in Peru – Consulting team member, Mr. Andrew Isaak

will be working in the CONAP office in Lima, Peru for a period of approximately three months.

Mr. Isaak brings a broad range of experience and capabilities to the project. Mr. Isaak’s role will

be to assist CONAP with the coordination of the project, follow-up on projects and opportunities

identified earlier in this report and to assist with the daily operation of the CONAP offices. As

well, Mr. Milliones, who lives in Lima, will be available on a regular basis to provide ongoing

support and assistance to CONAP.

Anyone wishing additional information on this report or the activities described herein, should contact:

Sr. César Sarasara A.

President

CONAP

Brigaidier Pumacahua 974

Jesus Maria, Lima

Peru

Tel/fax +511 423 8391

[email protected]

Wayne Dunn


2457 Bakerview Rod

Mill Bay, BC VOR 2P0

CANADA

Tel: +1-250-743-7619

Fax: +1-250-743-7659

[email protected]

www.waynedunn.com

Mr. Rui F. de Carvalho

R.J. Burnside International Limited

15 Townline Road

Orangeville, ON L9W 3R4

Canada

Tel: +1-519-941-5331

Fax: +1519-941-8120

[email protected]

www.rjburnside.com


http://www.waynedunn.com/