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Background
Biopreserve
Monitoring
Ecovillage
Purpose
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   To manage the finances of the international committee, including consolidating the resources from various international donors and lenders and budgeting the resources to the Galapagos’ Biopreserve Committee.











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Form
   The trust will draw its funds from a pool of sources separated into five categories:
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Nongovernmental Organizations
   All NGOs are invited to support the conservation effort in the Galapagos Islands by donating to the trust. To maximize our funds with the least restrictions, we will solicit contributions from larger, established organizations with an expressed interest in the conservation and preservation of the Galapagos Islands' ecosystem. These will have a seat on the committee if they so desire. Some of these NGOs include:    However, smaller NGOs are most welcome to donate their funds to the committee. They may also present specific proposals for the allocation of their funds to the committee. All NGOs that are working in the Galapagos are welcome to coordinate their research efforts with the efforts of the Biopreserve committee, which are backed by the international trust. These are a short list of several NGOs already involved in research or conservation efforts in the Galapagos and have specific goals and objectives.
   
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Nations
   All governments are invited to support the conservation effort in the Galapagos Islands by donating to the trust. Their support can be given either through direct monetary donations or through the Debt for Nature Program that will be discussed more formally below. Some countries that have supplied aid to the Galapagos and other conservation efforts in the past:
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Debt for Nature
   The principle of Debt for Nature is that a nation’s money that would otherwise be tied up in the repayment of foreign debts can instead be utilized within that nation and put toward conservation efforts. Such exchanges have many precedents, including examples of a single country like the United States forgiving debt under its US Tropical Forest Conservation Act of 1998 or the example of the World Wildlife Fund buying the Ecuadorian debt to the World Bank at a reduced price and Ecuadorian gradually putting that money to work in the Galapagos.
   The Debt for Nature scheme envisioned by this trust is as follows:
  1. The Trust will buy the Ecuadorian debt from the member nations of the trust at a reduced rate, which can be agreed upon on a per country basis and will be dependent on such factors as total amount of Ecuadorian debt and GNP (Gross National Product) of the country owed. This will be done annually, with the purpose being that a portion of the debt that Ecuador repays to a certain country annually will be instead put into the trust. This could be used in lieu of a member country directly putting money into the trust.
  2. Ecuador will continue to repay the annual portion of the debt to that country that does not go into the trust. Ecuador, however, will only pay 75% of the amount of debt that it owes the trust annually. The other 25% can be used by the Ecuadorian government to fund various environmentally friendly economical or educational initiatives within Ecuador.
  3. The Trust will also look into buying Ecuadorian debt from the World Bank or the Inter-American Development Bank.

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Loans and Banks
   The committee may apply for loans from various credible lenders to cover the gap in funding between costs and donations. Some lenders include:
   Established in 1959, Inter-American Development Bank (IDB) is a bank that lends loans for the purpose of social and economic benefit. Forty-six countries own it with over 50% of the voting power in Latin America and the Caribbean. With over US$100 billion in resources, IDB funds countless organizations. It assists borrowers with developing policy plans for achieving the results they are looking for. IDB lends to small to large public and private companies, organizations, and governments. Its funds come from subscribed capital, reserves, and borrowed funds from the capital markets of Europe, Japan, and the US. Its debt is AAA-rated by multiple US rating services and equivalently rated in other countries. IDB has lent over US$230 million to Ecuador in 2003 and almost US$4.5 billion since 1961, much of which has gone to the Galapagos Islands.
   USAID is an independent US federal government agency founded in 1961. It supports economic growth, agriculture, trade, global health, democracy, conflict prevention, and humanitarian assistance. Its annual budget is less than one-half of one percent of the US federal budget. USAID gives around US$4 billion in federal contracts and grants every fiscal year, and could provide ample funding resources. USAID very actively promotes biodiversity throughout the world. It has worked in the Galapagos Islands since 1997 and has financial obligations through 2008. USAID already commits US$5 million to conservation efforts in the Galapagos Islands and will increase that amount to US$5.1 million in 2005.
   USAID supports/funds:
USAID funding to Ecuador for Fiscal Year 2004-2005
 USAID Funding 2004 Fiscal YearProposed USAID Funding 2005 Fiscal Year
Conservation in indigenous landsDA $1.26 million
ESF $1 million		DA $0.5 million
ESF $2 million
Biodiversity program in the GalapagosDA $1.64 millionDA $2.1 million
Conservation of the tropical AndesDA $2.1 millionDA $2.1 million
TotalsDA $5 million
ESF $1million		DA $5.1 million
ESF $2 million

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Private, Fundraising, Tourism
   For the Park entrance fee, tourists pay $100 per person. It is estimated that 80,000 tourists will visit the islands in 2004. The 45% of the fee that is designated for the GNP and GMR will supplement the funds of the committee. The current distribution of the entrance fee is:    Many of the tourists who come to the Galapagos hold a deep respect for the land and its natural beauty. Many, too, are willing and able to contribute to see that the future will still have this unique place. Therefore, the trust will work with local companies to see if certain souvenirs or nights at a restaurant, etc. could donate a certain percentage of the profits to the trust. Tourists in particular would be very eager to spend money knowing that a part of it will benefit the Galapagos conservation efforts.
   An international media campaign at the Biopreserve’s inception will attract support and monetary aid for the new project. Those interested in donating would be directed to the centralized scientific database website where they can learn more about the project. This has the potential to generate a lot of money in the short term.
   Private donations will come from personal pledges from individuals, companies, and other bodies directly to the trust. While it is impossible to predetermine the specific amount of private donations, it is fair to say that this will be the smallest source of funding for the trust.
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Timetable
   In the beginning, as the trust is establishing its donors and the heavy funding of the initial projects of village construction, the trust will take out loans from various international banks. In particular, the IDB and USAID will be crucial to providing early funding.
   The goal for the committee is to move towards a trust that can fund the committee's projects entirely through donations and fundraising, eliminating the burdens of debt. Ideally, the amount of funding from loans will decrease annually. This will occur as construction projects are completed. Actual upkeep and maintenance of the system carries a far lower annual cost than years in which construction is occurring. Below are some of the estimates of the funds needed for our project.
The Floating AirportUS$983million (over 15 years)
Village ConstructionUS$115million over 15 years
Monitoring Systems*US$1.5million initially, US$750,000 annually
Database ManagementUS$100,000
National Park/Marine Reserve Strategy**US$6million annually
*Includes: Buoy systems and deployment, land weather stations, soil monitoring, repair, and labor costs
**Includes: Rangers training and salary, eco-boats for patrol, floating airport personnel, administrative costs and labor, and education opportunities
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Sources

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