1. Activities to be financed: For the year 2018, two funding modalities 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, which includes Protection and Post-Harvest Protection. To this end, the following distribution is established:
| PSA Modalities | Activity | Quantity | | --- | --- | --- | | Recovery of Forest Cover* | Reforestation with fast-growing species | 875 hectares | | | Reforestation with medium-growing species | 2,735 hectares | | | Forestry Plantations with Reduced Rotation Periods (Plantaciones Forestales con Turnos de Rotación Reducidos, PFTRR) | 2,000 hectares | | | Natural Regeneration | 3,000 hectares | | | Establishment of trees in Agroforestry Systems | 500,400 trees | | | Agroforestry Systems established in Forest Harvesting Plantations (Plantaciones de Aprovechamiento Forestal, PPAF) | 50,000 trees | | Maintenance of Forest Cover | Forest Protection | 35,352 hectares | | | Forest Protection for the safeguarding of Water Resources | 5,000 hectares | | | Post-Harvest Protection** | 200 hectares | *: Fonafifo will process all applications for entry submitted in the Reforestation and Agroforestry Systems sub-activities for 600 hectares, featuring species listed in the executive decrees on bans and threatened or endangered species (Decree No. 25663-MINAE and Decree No. 25700-MINAE and their amendments).
**: Refers to all applications for entry for farms on which the forest management plan has been finalized.
The National Forest Financing Fund may vary the distribution established in the previous table, according to supply, based on the applications received for each of the activities, provided that they do not exceed the approved budget for the Program for Payment of Environmental Services (Pago por Servicios Ambientales, PSA).
If a greater allocation of resources becomes available, according to Article 5 of the Law for Tax Simplification and Efficiency No. 8114 published in La Gaceta No. 131, of July 9, 2001, and other financial resources that Fonafifo may secure for Payment for Environmental Services (Pago por Servicios Ambientales, PSA), they will be distributed according to the criterion 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.
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 (servicios ambientales) in the Reforestation activity are as follows:
- a)The amount to be paid for fast-growing species referred to as: Gmelina arborea, Acacia mangium, Vochysia guatemalensis, and Vochysia hondurensis, shall be six hundred forty-nine thousand five hundred thirty-eight colones with 00/100 (¢649,538) 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.
- 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, shall be seven hundred sixty-five thousand two hundred ten colones with 00/100 (¢765,210) 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.
- c)The amount to be paid for native species listed in Executive Decrees No. 25663-MINAE of October 8, 1996, and No. 25700-MINAE of November 15, 1996, shall be one million one hundred forty-seven thousand eight hundred sixteen colones (¢1,147,816) 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.
- d)The amount to be paid for Forestry Plantations with Reduced Rotation Periods (Plantaciones Forestales con Turnos de Rotación Reducidos, PFTRR) shall be three hundred sixty-five thousand one hundred forty-six colones with 00/100 (365,146 colones with 00/100) per hectare. Payments shall be distributed as follows: 50% the first year, 25% the second year, and 25% the fourth year.
- e)Sub-activity called Forestry Plantations established with own resources for payment by results. The conditions for this modality are: The amount to be paid for medium-growing species referred to in subsection b above is seven hundred sixty-five thousand two hundred ten colones with 00/100 (765,210 colones with 00/100) per hectare. The amounts shall be distributed as follows: fifty percent 12 months after the signing of the contract, 20% at twenty-four months from the signing of the contract, 15% at thirty-six months from the signing of the contract, 10 percent at forty-eight months from the signing of the contract, and five percent at sixty months following the signing of the contract. The term of the contract shall be sixteen years, counted from the average planting date. The results of the annual volumetric increment must meet those established in table two of this resolution.
(Thus added the preceding subsection by resolution R-132-2018-MINAE of April 23, 2018) f) The National Forest Financing Fund is instructed to incorporate, in the Payment for Environmental Services (Pago por Servicios Ambientales, PSA) contracts for the Reforestation and Agroforestry Systems en bloc activity, the minimum acceptable values for making payments.
(The numbering of the preceding subsection was adjusted by resolution R-132-2018-MINAE of April 23, 2018, which transferred it from the former subsection e) to f)) 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 volumetric increment 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 volumetric increment 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 volumetric 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).1 Table 3. Minimum reference values for diameter (DBH) and total height (Htot), expected per year for Forestry Plantations with Reduced Rotation Periods (Plantaciones Forestales con Turnos de Rotación Reducidos, PFTRR), for the species Gmelina arborea and other species of the fast-growing group.
| Age (years) | VRM DBH (cm) | VRM Htot (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 |
To calculate the volume, the following equation must be used:
Vt = π/4 * (DBH)² * Htot * Ff * N Where:
Π = π (pi) is the ratio of the circumference of a circle to its diameter in Euclidean geometry.
Vt = Total volume per hectare expressed in cubic meters.
DBH = Diameter at breast height of 1.3 m expressed in meters.
Htot = Total height expressed in meters.
Ff = Form factor equal to 0.5.
N = Number of trees per hectare.
- f)The State, through Fonafifo, will acquire the environmental services (servicios ambientales) produced by forest plantations, understood as stipulated in subsection k of Article 3 of the Forestry Law No. 7575.
- g)Specifically, the environmental services (servicios ambientales) provided by plantations and blocks in Agroforestry Systems will be paid according to the annual biomass growth 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, they will be advanced during the first five years.
- h)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 any information it deems pertinent.
2.2. Natural Regeneration Activity: The conditions that will govern the processing of applications for the recognition of environmental services (servicios ambientales) in the Natural Regeneration activity are detailed below.
- a)The amount to be paid for Natural Regeneration shall be one hundred ten thousand one hundred ninety-seven colones with 00/100 (¢110,197) 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 (servicios ambientales) in the Agroforestry Systems activity are detailed below.
- a)The amount to be paid shall be nine hundred forty colones with 00/100 (¢940) 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.
- b)The amount to be paid shall be one thousand three hundred ninety-three colones with 00/100 (¢1,393) per tree, integrated into Agroforestry Systems, strictly with native species listed 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.
- c)The amount to be paid shall be one thousand three hundred ninety-three colones with 00/100 (¢1,393) per tree under the activity of Agroforestry Systems established in Forest Harvesting Plantations (Plantaciones de Aprovechamiento Forestal, PPAF), financed through forestry credit. Payments shall be distributed as follows: 80% upon the signing of 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.
d-) Sub-activity called Mixed Agroforestry Systems for micro-producers. The conditions for this modality are: When they carry out forest protection activities, a payment of thirty-four thousand four hundred three colones (¢34,403.00) per hectare per year for a period of five years (here, if necessary, existing hectares fractions will be calculated, up to the first decimal). When they carry out regeneration activities on denuded areas, a payment of twenty-two thousand thirty-nine colones with forty cents (¢22,039.40) per year for a period of five years. When they carry out reforestation activities of timber or multi-use species outside the forested area, a payment of fifty-five thousand seven hundred twenty colones (¢55,720.00) per year, for every two hundred trees planted or identified up to a maximum of one thousand six hundred trees. In this sub-activity, a single contract may be executed covering the different activities, and the term shall be five years counted from the signing of the contract.
(Thus added the preceding subsection by resolution R-132-2018-MINAE of April 23, 2018) (Thus amended the preceding subsection by resolution No. R-227-2018-MINAE of July 30, 2018) e-) Sub-Activity of Agroforestry Systems with already established plantations. For this modality, only individuals and companies included in the area of sale of emission reductions with the Carbon Fund called "Coopeagri RL." may enter. These SAF plantations will have the same requirements and conditions as the general Agroforestry Systems. The amount to be paid per tree shall be one thousand nine hundred fifty colones (¢1950), which shall be distributed in two installments: 80% upon the signing of the contract and the remaining 20% twelve months later. The term of the contract shall be seven years counted from the year 2012.
(Thus added the preceding subsection by resolution R-132-2018-MINAE of April 23, 2018) 2.4. Forest Protection Activity: The conditions that will govern the processing of applications for the recognition of environmental services (servicios ambientales) in the Forest Protection activity are detailed below:
- a)The amount to be paid shall be one hundred seventy-two thousand fifteen colones with 00/100 (¢172,015) disbursed in five annual payments of 20% over a period of five years. For applications located within zones of hydrological importance, identified by the Costa Rican Institute of Aqueducts and Sewers, the Water Directorate, and Fonafifo, an additional amount shall be recognized, making the total amount payable forty-three thousand five colones per hectare, disbursed in five annual payments of 20% over a period of five years.
This additional amount will be applied until the budget assigned to this activity is exhausted.
- b)The amount to be paid for Post-Harvest Protection projects shall be one hundred thirty-four thousand three hundred eighty-eight colones with 00/100 (¢134,388) 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 Program for Payment of Environmental Services (Pago por Servicios Ambientales, PSA) shall be updated annually using the Consumer Price Index (Índice de Precios al Consumidor, IPC), calculated by the National Institute of Statistics and Censuses (INEC), at the close of the prior year's period.