1. Activities to be financed: For the year 2016, two modalities to be financed will be considered:
a-Recovery of Forest Cover (Recuperación de la Cobertura Forestal), which includes the activities of Reforestation, Regeneration, and Agroforestry Systems, and b-Maintenance of Forest Cover (Mantenimiento de la Cobertura Forestal), which includes Forest Protection and Forest Management. For this purpose, the following distribution is established:
| PSA Modalities | Activity | Quantity | | --- | --- | --- | | Recovery of Forest Cover | Reforestation with fast-growing species | 2,865 hectares | | | Reforestation with medium-growth species | 2,735 hectares | | | Reforestation with species contained in the executive decrees on logging bans and threatened or endangered species (Decree No. 25663-MINAE and Decree No. 25700-MINAE and their amendments) | 600 hectares | | | Natural Regeneration | 3,000 hectares | | | Establishment of trees in Agroforestry Systems | 500,400 trees | | | Agroforestry Systems established in Forest Harvesting Plantations (PPAF) | 50,000 trees | | Maintenance of Forest Cover | Forest Protection | 43,174 hectares | | | Forest Protection for the safeguarding of Water Resources | 5,000 hectares | | | Forest Management | 200 hectares. | The National Forest Financing Fund (Fondo Nacional de Financiamiento Forestal) may vary the distribution established in the table above, according to supply, based on the applications received for each of the activities, provided they do not exceed the approved budget for the Payment for Environmental Services Program.
If a greater allocation of resources becomes available, according to Article 5 of the Tax Simplification and Efficiency Law (Ley de Simplificación y Eficiencia Tributarias) No. 8114 published in La Gaceta No. 131, on July 9, 2001, and other financial resources that Fonafifo captures for the Payment for Environmental Services, they shall be distributed according to the criteria of the funders and Fonafifo. In any case, the resources used for these purposes must be incorporated into the institutional budget and approved by the Comptroller General of the Republic (Contraloría General de la República).
2. Regarding the payment amounts per activity and other conditions:
2.1. Reforestation Activity: The conditions that will govern the processing of applications for the recognition of environmental services in the Reforestation activity are as follows:
The amount to be paid for fast-growing species referring to: Gmelina arborea, Acacia mangium, Vochysia guatemalensis, and Vochysia hondurensis, shall be six hundred thirty-six thousand seven hundred thirty-nine colones with 00/100 (¢636,739) per hectare, disbursed over a period of five years. Payments shall be distributed as follows: 50% the first year, 20% the second year, 15% the third year, 10% the fourth year, and 5% the fifth year.
The amount to be paid for medium-growth species referring to: Tectona grandis, Pinus sp, Cordia alliodora, Vochysia ferruginea, Eucalyptus sp, and Cedrela odorata, shall be seven hundred fifty thousand one hundred thirty-two colones with 00/100 (¢750,132) per hectare, disbursed over a period of five years. Payments shall be distributed as follows: 50% the first year, 20% the second year, 15% the third year, 10% the fourth year, and 5% the fifth year.
The amount to be paid for native species contained in Executive Decrees No. 25663-MINAE of October 8, 1996, and No. 25700-MINAE of November 15, 1996, shall be one million one hundred twenty-five thousand one hundred ninety-nine colones with 00/100 (¢1,125,199) per hectare, disbursed over a period of five years. Payments shall be distributed as follows: 50% the first year, 20% the second year, 15% the third year, 10% the fourth year, and 5% the fifth year.
The National Forest Financing Fund (Fondo Nacional de Financiamiento Forestal) is instructed to incorporate into the contracts for Payment for Environmental Services in the reforestation activity and block agroforestry systems, the minimum acceptable values for making payments.
The National Forest Financing Fund (Fondo Nacional de Financiamiento Forestal) shall use the following values:
Table 1. Minimum expected mean annual increment in diameter (in m3/hectare) per year for plantations of fast-growing species (Gmelina arborea, Vochysia guatemalensis, Acacia mangium, others)
| Age (years) | MAI* Increment (m3/hectare) |
|---|---|
| 1 | 10.8 |
| 2 | 16.4 |
| 3 | 23.8 |
| 4 | 33.2 |
| 5 | 44.7 |
| 6 | 58.3 |
| 7 | 73.8 |
| 8 | 91.0 |
| 9 | 109.8 |
| 10 | 130.0 |
Table 2. Minimum expected mean annual increment in diameter (in m3/hectare) per year for plantations of medium-growth species (Tectona grandis, Pinus sp, Cordia alliodora, Vochysia ferruginea, Eucalyptus sp, Cedrela odorata, others).
| Age (years) | MAI* Increment (m3/hectare) |
|---|---|
| 1 | 2.2 |
| 2 | 3.5 |
| 3 | 5.4 |
| 4 | 7.9 |
| 5 | 11.2 |
| 6 | 15.3 |
| 7 | 20.4 |
| 8 | 26.3 |
| 9 | 33.1 |
| 10 | 40.8 |
| 11 | 49.2 |
| 12 | 58.3 |
| 13 | 68.0 |
| 14 | 78.1 |
| 15 | 88.5 |
| 16 | 99.2 |
*The diametric increment reference values correspond to the growth model reported by Gompertz (reference by Dr. Edgar Ortiz Malavassi, Professor at the Technological Institute of Costa Rica, 2015).1 e) The State, through Fonafifo, shall acquire the environmental services produced by forest plantations, understood as provided in subsection k of Article 3 of the Forest Law (Ley Forestal) No. 7575.
- f)Specifically, environmental services in plantations and blocks in Agroforestry Systems will be paid according to the annual biomass growth in accordance with parameters established in this resolution. These payments correspond to the total years of the agreed term; however, in order to allow for the establishment of the plantation and its maintenance, it will be advanced during the first five years.
- g)Fonafifo may modify, when so requested, those contracts signed before the year 2006 that demonstrate having reached a minimum production of 13 cubic meters of mean annual increment per hectare. For such purposes, Fonafifo may request the information it deems pertinent.
2.2. Natural Regeneration Activity: The conditions that will govern the processing of applications for the recognition of environmental services in the Natural Regeneration activity are detailed below.
- a)The amount to be paid for Natural Regeneration shall be one hundred eight thousand twenty-six colones with 00/100 (¢108,026) per hectare, disbursed in five annual payments of 20% over a period of five years.
2.3. Agroforestry Systems Activity: The conditions that will govern the processing of applications for the recognition of environmental services in the Agroforestry Systems activity are detailed below.
The amount to be paid shall be nine hundred twenty-one colones (¢921) per tree, integrated into Agroforestry Systems and disbursed over a period of five years. Payments shall be distributed as follows: 50% the first year, 25% the third year, and 25% the fifth year.
The amount to be paid shall be one thousand three hundred sixty-five colones with 00/100 (¢1,365) per tree, integrated into Agroforestry Systems, strictly with native species contained in Executive Decrees No. 25663-MINAE of October 8, 1996, and No. 25700-MINAE of November 15, 1996, disbursed over a period of five years. Payments shall be distributed as follows: 50% the first year, 25% the third year, and 25% the fifth year.
The amount to be paid shall be one thousand three hundred sixty-five colones with 00/100 (¢1,365) per tree under the activity of Agroforestry Systems established in Forest Harvesting Plantations (PPAF), financed through forest credit. Payments shall be distributed as follows: 80% upon contract signing, once the trees have reached 36 months of age, and the remaining 20% in the fifth year of the project when the trees have reached 60 months of age.
2.4. Forest Protection Activity: The conditions that will govern the processing of applications for the recognition of environmental services in the Forest Protection activity are detailed below:
- a)The amount to be paid shall be one hundred sixty-eight thousand six hundred twenty-six colones with 00/100 (¢168,626), disbursed in five annual payments of 20% over a period of five years. In the case of applications located within areas of water importance, identified by the Costa Rican Institute of Aqueducts and Sewers (ICAA), the Water Directorate, and Fonafifo, an additional amount of forty-two thousand one hundred fifty-seven colones with 00/100 (¢42,157) shall be recognized, making the total amount to be paid two hundred ten thousand seven hundred eighty-three colones with 00/100 (¢210,783) per hectare, disbursed in five annual payments of 20% over a period of five years. This additional amount shall be applied until the budget allocated for this activity is exhausted.
2.5. Forest Management Activity. The conditions that will govern the processing of applications for the recognition of environmental services in the Forest Management activity are detailed below:
- a)The amount to be paid shall be one hundred thirty-one thousand seven hundred thirty-nine colones with 00/100 (¢131,739) per hectare, disbursed in five annual payments of 20% over a period of five years.
3. Updating of payment amounts. The amounts established per activity within the Payment for Environmental Services Program (Programa de Pago por Servicios Ambientales) shall be updated annually using the Consumer Price Index (CPI), calculated by the National Institute of Statistics and Census (INEC), at the close of the previous year's period.