1.1. Activities to be financed:
For the year 2017, two modalities will be considered for financing: a-Recovery of Forest Cover, which includes the activities of Reforestation, Regeneration, and Agroforestry Systems, and b-Maintenance of Forest Cover, which includes Protection and Forest Management. To this end, the following distribution is established:
| PSA Modalities | Activity | Quantity |
|---|---|---|
| Recovery of Forest Cover | Reforestation with fast-growing species | 2,875 hectares |
| Reforestation with medium-growing species | 2,735 hectares | |
| Reforestation with species contained in the executive decrees of ban 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 Harvest Plantations (PPAF) | 50,000 trees | |
| Forest Protection | 25,000 | |
| Maintenance of Forest Cover | Protection of Forests for the safeguarding of Water Resources | 5,000 hectares |
| Forest Management | 200 |
The National Forest Financing Fund may vary the distribution established in the previous table, according to the supply, based on the requests 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 is available, according to Article 5 of the Tax Simplification and Efficiency Law No. 8114 published in La Gaceta No. 131, of July 9, 2001, and other financial resources that Fonafifo obtains for the Payment for Environmental Services, they will be distributed according to the criteria of the financiers and Fonafifo. In any case, the resources used for these purposes must be incorporated into the institutional budget and be approved by the Comptroller General of the Republic.
1.2. Of the payment amounts per activity and other conditions:
1.2.1. Reforestation Activity: The conditions that will govern the processing of requests, for the recognition of environmental services in the Reforestation activity, are the following:
- a)The amount to be paid for fast-growing species referred to as: *Gmelina arborea*, *Acacia mangium*, *Vochysia guatemalensis*, and *Vochysia hondurensis*, will be six hundred forty-three thousand one hundred seven colones with 00/100 (¢643,107) per hectare, disbursed over a five-year period. The payments will be distributed in the following manner: 50% the first year, 20% the second year, 15% the third year, 10% the fourth year, and 5% the fifth year.
- b)The amount to be paid for medium-growing species referred to as: *Tectona grandis*, *Pinus* sp, *Cordia alliodora*, *Vochysia ferruginea*, *Eucalyptus* sp, and *Cedrela odorata*, will be seven hundred fifty-seven thousand six hundred thirty-four colones with 00/100 (¢757,634) per hectare, disbursed over a five-year period. The payments will be distributed in the following manner: 50% the first year, 20% the second year, 15% the third year, 10% the fourth year, and 5% the fifth year.
- c)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, will be one million one hundred thirty-six thousand four hundred fifty-one colones (¢1,136,451) per hectare, disbursed over a five-year period. The payments will be distributed in the following manner: 50% the first year, 20% the second year, 15% the third year, 10% the fourth year, and 5% the fifth year.
- d)The National Forest Financing Fund is instructed to incorporate into the Payment for Environmental Services contracts in the Reforestation and block Agroforestry Systems activity, the minimum acceptable values for making the payments.
The National Forest Financing Fund will use the following reference values to process the payments corresponding to each year:
Table 1. Minimum expected mean annual volume increment (in m3 /hectare) per year for plantations of fast-growing species (*Gmelina arborea*, *Vochysia guatemalensis*, *Acacia mangium*, others)
| Age (years) | Total accumulated volume (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 volume increment (in m3/hectare) per year for plantations of medium-growing species (*Tectona grandis*, *Pinus* sp, *Cordia alliodora*, *Vochysia ferruginea*, *Eucalyptus* sp, *Cedrela odorata*, others).
| Age (years) | Total accumulated volume *(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 volume increment reference values correspond to the growth model reported by Gompertz (reference from Dr. Edgar Ortiz Malavassi, Professor at the Technological Institute of Costa Rica, 2015).
- e)The State, through Fonafifo, will acquire the environmental services produced by forest plantations, understood as set forth in subsection k of Article 3 of the Forest Law No. 7575.
- f)Specifically, the environmental services in plantations and blocks in agroforestry systems will be paid according to the annual growth of biomass in accordance with parameters established in this resolution. Said payments correspond to the total years of the agreed term; however, in order to allow the establishment of the plantation and its maintenance, payment 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 achieved a minimum production of 13 cubic meters of annual volume per hectare. For such purposes, Fonafifo may request the information it deems pertinent.
- h)Fonafifo, to verify the data presented in all cases, will require the submission of data from the individual measurements of the trees included in the measurement plots that for such purposes must be established in the reforestation projects.
- i)The National System of Conservation Areas must establish a plan for the promotion of forest plantations so that the six thousand two hundred hectares of reforestation, included in this resolution, are distributed in the following manner: Brunca Region 375 hectares, Central Region 160 hectares, Chorotega Region 2,755 hectares, Huetar Atlántica Region 504 hectares, Huetar Norte Region 1,779, and Central Pacific Region 908 hectares. If the goal is achieved in any Region, Fonafifo may allocate the resources to other regions.
(*)1.2.1.A. Sub-activity called Forest Plantations with Short Rotation Periods (PFTRR). The conditions that will govern the processing of requests, for the recognition of environmental services in the activity of Forest Plantations with short rotation periods, will be the following:
- a)Of the payment amounts per activity and other conditions:
For the year 2017, the sub-activity of Forest Plantations with Short Rotation Periods (PFTRR) will be included within the Recovery of Forest Cover modality, up to a maximum quantity of 2,000 hectares, which are part of the 6,210 hectares planned for the reforestation activity in 2017 with fast-growing species.
- b)The amount to be paid for Forest Plantations with Short Rotation Periods (PFTRR), will be three hundred sixty-one thousand five hundred thirty- one colones 00/100 (361,531 colones with 00/100) per hectare. The payments will be distributed in the following manner: 50% the first year, 25% the second year, and 25% the fourth year.
- c)The National Forest Financing Fund will use the following minimums to process the payments corresponding to each year:
Minimum values for the diameter (DBH cm) and total height (m), expected per year for Forest Plantations with Short Rotation Periods (PFTRR) for the species *Gmelina arborea* and species of the fast-growing group:
| Age (years) | Reference Minimum DBH* (cm) | Reference Minimum Total Ht** (m) |
|---|---|---|
| 1 | - | 3.29 |
| 2 | 8.88 | 6.65 |
| 3 | 13.35 | 9.73 |
| 4 | 14.69 | 10.69 |
| 5 | 17.55 | 12.48 |
| 6 | 19.53 | 13.80 |
* DBH, minimum reference diameter at breast height in centimeters ** Ht, minimum reference total height in meters For plantations for Dendroenergy production, densities may vary between 2,000 trees/ ha and 5,000 trees/ha; likewise, the final harvest may not be carried out before six years.
(*) (Point 1.2.1.A) above thus added by Article 1 of Resolution No. R-016 of August 31, 2017) 1.2.2. Natural Regeneration Activity: The conditions that will govern the processing of requests, for the recognition of environmental services in the Natural Regeneration activity, are detailed below.
- a)The amount to be paid in Natural Regeneration will be one hundred nine thousand one hundred six colones with 00/100 (¢109,106) per hectare, disbursed in five annual payments of 20% over a five-year period.
1.2.3. Agroforestry Systems Activity: The conditions that will govern the processing of requests, for the recognition of environmental services in the Agroforestry Systems activity, are detailed below.
- a)The amount to be paid will be nine hundred thirty-one colones with 00/100 (¢931) per tree integrated into Agroforestry Systems and disbursed over a five-year period. The payments will be distributed in the following manner: 50% the first year, 25% the third year, and 25% the fifth year.
- b)The amount to be paid will be one thousand three hundred seventy-nine colones with 00/100 (¢1,379) 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 five-year period. The payments will be distributed in the following manner: 50% the first year, 25% the third year, and 25% the fifth year.
- c)The amount to be paid will be one thousand three hundred seventy-nine colones with 00/100 (¢1,379) per tree under the activity of Agroforestry Systems established in Forest Harvest Plantations (PPAF), financed through forest credit. The payments will be distributed in the following manner: 80% upon signing the contract, 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.
1.2.4. Forest Protection Activity: The conditions that will govern the processing of requests, for the recognition of environmental services in the Forest Protection activity, are detailed below:
- a)The amount to be paid will be one hundred seventy thousand three hundred twelve colones with 00/100 (¢170,312) disbursed in five annual payments of 20% over a five-year period. In the case of requests located within areas of water importance, identified by the Costa Rican Institute of Aqueducts and Sewers, the Water Directorate, and Fonafifo, an additional amount of forty-two thousand five hundred seventy-nine colones with 00/100 (¢42,579) will be recognized, making the total amount to be paid per hectare two hundred twelve thousand eight hundred ninety-one colones (¢212,891) disbursed in five annual payments of 20% over a five-year period. This additional amount will be applied until the budget allocated for this activity is exhausted.
1.2.5. Forest Management Activity. The conditions that will govern the processing of requests for the recognition of environmental services in the Forest Management activity are detailed below:
- a)The amount to be paid will be one hundred thirty-three thousand fifty-seven colones with 00/100 (¢133,057) per hectare, disbursed in five annual payments of 20% over a five-year period.
1.3. Updating of payment amounts:
The amounts established per activity within the Payment for Environmental Services Program will 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.