1. Activities to be financed: For the year 2019, two modalities will be considered for financing; 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 Post-Harvest Protection.
To that end, the following distribution is established:
| Payment for Environmental Services (Pago de Servicios Ambientales, PSA) Modalities | Activity | Quantity | | | | | --- | --- | --- | --- | --- | --- | | Recovery of Forest Cover* | Reforestation with fast-growing species | 875 hectares | | | | | Reforestation with medium-growing species | 2,735 hectares | | | | | | Forest Plantations with Reduced Rotation Cycles (Plantaciones Forestales con Turnos de Rotación Reducidos, PFTRR) | 2,000 hectares | | | | | | Natural Regeneration (Regeneración Natural) | 3,000 hectares | | | | | | Establishment of trees in Agroforestry Systems | 450,000 trees | | | | | | Agroforestry Systems established in Forest Harvesting Plantations (PPAF) | 50,000 trees | | | | | | Mixed Systems in Agroforestry for micro-producers | 50,400 trees | | | | | | Maintenance of Forest Cover | Forest Protection | 36,424 hectares | | | | | Forest Protection for the safeguarding of Water Resources | 3,600 hectares | | | | | | Post-Harvest Protection** | 200 hectares | | | | | *: The Fondo Nacional de Financiamiento Forestal (Fonafifo) will process all applications for entry submitted for the sub-activities of Reforestation for 600 hectares and Agroforestry Systems, 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).
**: Refers to all applications for entry with farms on which the forest management plan has been completed.
The National Forest Financing Fund may vary the distribution established in the table above, according to the supply, based on the applications received for each of the activities; as long as they do not exceed the budget approved 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 (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 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 approved by the Comptroller General of the Republic.
2. 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:
- a)The amount to be paid for fast-growing species referring to: Gmelina arborea, Acacia mangium, Vochysia guatemalensis, and Vochysia hondurensis, will be six hundred ninety-nine thousand twenty-four colones with 00/100 (¢699,024) per hectare, disbursed over a period of five years. Payments will 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 referring to: Tectona grandis, Pinus sp, Cordia alliodora, Vochysia ferruginea, Eucalyptus sp, and Cedrela odorata, will be seven hundred eighty-eight thousand one hundred sixty-six colones with 00/100 (¢788,166) per hectare, disbursed over a period of five years. Payments will 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 contained in the Executive Decrees No. 25663-MINAE of October 8, 1996, and No. 25700-MINAE of November 15, 1996, will be one million one hundred eighty-two thousand two hundred fifty colones (¢1,182,250) per hectare, disbursed over a period of five years. Payments will 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 Forest Plantations with Reduced Rotation Cycles (PFTRR) for fast-growing species for packaging, will be three hundred seventy-six thousand one hundred colones 00/100 (¢376,100) colones with 00/100) per hectare. Payments will be distributed as follows: 50% the first year, 25% the second year, and 25% the fourth year.
- e)Forest Plantations established with own resources for payment by results. The amounts to be paid will be those established, in subsections a, b, and c above. The amounts will be distributed as follows: upon contract signing 50%, twelve, twenty-four, thirty-six, and 48 months after said signing, 20%, 15%, 10%, and 5% respectively. The contracts will have the term stipulated in Article 2, subsections a and b of this resolution, but the years of existence of these plantations will be recognized; up to a maximum of 3 years from establishment.
- f)Natural or legal persons wishing to reforest in areas greater than the cap established in the Regulations to the Forest Law, Decree No. 25721-MINAE and its Amendments, may apply under a special payment-by-results financing scheme, being able to double the cap of 750 hectares, provided that the available resources are not used by small producers. Payment will be made in arrears per year. The amounts to be paid will be those established, in subsections a, b, and c above. The amounts will be distributed as follows: twelve months after contract signing 50%, twenty-four, thirty-six, and forty-eight months after said signing, 20%, 15%, 10%, and 5% respectively.
(*)g) The National Forest Financing Fund is instructed to incorporate into the Payment for Environmental Services contracts for the Reforestation and Agroforestry Systems block activity, the minimum acceptable reference values for making payments.
The minimum reference values (MRV) for diameter and total height, required to proceed with payments each year, are as follows:
Table 1. Minimum reference values for diameter (DBH) and total height (Htot), plantations of fast-growing species (Gmelina arborea, Vochysia guatemalensis, Acacia mangium, others).
| Age (years) | MRV DBH (cm)* | MRV Htot (m)* | |
|---|---|---|---|
| 1 | - | 3.69 | |
| 2 | 8.14 | 6.85 | |
| 3 | 12.08 | 10.26 | |
| 4 | 14.28 | 12.39 | |
| 5 | 17.69 | 15.08 | |
| 6 | 19.08 | 16.74 | |
| 7 | 21.11 | 17.42 | |
| 8 | 22.12 | 18.02 | |
| 9 | 23.02 | 18.54 | |
| 10 | 23.83 | 19.01 |
Table 2. Minimum reference values for diameter (DBH) and total height (Htot) plantations of medium-growing species (Tectona grandis, Pinus sp, Cordia alliodora, Vochysia ferruginea, Eucalyptus sp, Cedrela odorata, others).
| Age (years) | MRV DBH (cm)* | MRV Htot (m)* |
|---|---|---|
| 1 | - | 1.65 |
| 2 | 4.78 | 3.24 |
| 3 | 7.57 | 5.06 |
| 4 | 9.08 | 6.24 |
| 5 | 10.72 | 7.49 |
| 6 | 12.47 | 8.78 |
| 7 | 14.26 | 10.10 |
| 8 | 16.04 | 11.42 |
| 9 | 17.76 | 12.71 |
| 10 | 19.37 | 13.94 |
| 11 | 20.83 | 15.09 |
| 12 | 21.52 | 15.86 |
| 13 | 22.60 | 16.83 |
| 14 | 23.52 | 17.71 |
| 15 | 24.28 | 18.52 |
| 16 | 24.91 | 19.25 |
For the calculation of total volume, the following equation must be used:
Vtot= π/4 * (DBH)² * Htot * Ff * N Where:
Vtot = Total volume per hectare expressed in cubic meters.
π = (pi) is the relationship between the length of a circumference and its diameter in Euclidean geometry.
DBH = Diameter at 1.3m height expressed in meters.
Htot = Total height Ff = Form factor equal to 0.5.
N = Number of trees per hectare.
*The reference values come from data from permanent sampling plots of reforesting companies contributed by the National Forestry Office (Oficina Nacional Forestal, ONF), data from plots contributed by the Forest Regents and recorded by FONAFIFO, both data sets validated by Dr. Edgar Ortiz Malavassi, Professor at the Technological Institute of Costa Rica.
(*) (Subsection g) above was amended as such by Resolution R-167-2019-MINAE of July 3, 2019) h) The State, through Fonafifo, will acquire the environmental services that forest plantations produce, these being understood as stipulated in subsection k of Article 3 of the Forest Law No. 7575.
- i)Specifically, the environmental services provided by 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.
- j)Fonafifo may modify, when so requested, those contracts signed before the year 2009, that demonstrate having achieved a minimum production of 13 cubic meters of mean annual increment per hectare. For such purposes, Fonafifo may request the information it deems pertinent.
(The preceding subsection was amended by Resolution R-167-2019-MINAE of July 3, 2019) 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, that are developed in denuded areas, without forest cover, with nearby seed sources, in areas in the process of regeneration that do not meet the definition of forest and free from grazing; are detailed below.
- a)The amount to be paid in Natural Regeneration, will be one hundred thirteen thousand five hundred three colones with 00/100 (¢113,503) 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.
- a)The amount to be paid will be nine hundred sixty-eight colones with 00/100 (¢968) per tree, integrated into Agroforestry Systems, and disbursed over a period of five years. Payments will be distributed as follows: 50% the first year, 25% the third year, and 25% the fifth year.
- b)The amount to be paid will be one thousand four hundred thirty-five colones with 00/100 (¢1,435) 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 will be distributed as follows: 50% the first year, 25% the third year, and 25% the fifth year.
- c)The amount to be paid will be one thousand four hundred thirty-five colones with 00/100 (¢1,435) per tree under the activity of Agroforestry Systems established in Forest Harvesting Plantations (PPAF), financed through forest credit. Payments will 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.
- d)Mixed Systems in Agroforestry for small producers:
The conditions for this modality are: When carrying out forest protection activities, a payment of thirty-five thousand four hundred thirty-five colones (¢35,435) per hectare per year for a period of five years, (here, if necessary, fractions of hectares existing will be calculated, up to the first decimal). When they are denuded areas or areas in the process of regeneration, a payment of twenty-two thousand seven hundred colones (¢22,700) per year will be recognized for a period of five years. When carrying out reforestation activities with timber species or multiple-use species outside the forest area, a payment of two hundred eighty- seven colones per tree (¢287) per year; a minimum quantity of two hundred planted trees or existing identified trees will be recognized, up to a maximum of one thousand six hundred trees. In this sub- activity, a single contract may be executed that includes the different activities, and the term will be five years counted from the signing of the contract.
(The preceding subsection was amended by Resolution R-167-2019-MINAE of July 3, 2019) 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 will be three hundred fifty-four thousand three hundred fifty colones with 00/100 (¢354,350) disbursed in ten annual payments of 10% over a period of ten years. When dealing with applications located within water-importance zones, identified by the Costa Rican Institute of Aqueducts and Sewers, the Water Directorate, and Fonafifo, an additional amount of eighty-eight thousand five hundred ninety-two colones (¢88,592) per hectare will be recognized, disbursed in ten annual payments of 10% over a period of ten years.
This additional amount will be applied until the budget allocated for this activity is exhausted.
(Subsection a) above was amended by Resolution R-167-2019-MINAE of July 3, 2019) b) The amount to be paid in Post-Harvest Protection projects will be one hundred thirty-eight thousand four hundred twenty colones with 00/100 (¢138,420) 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, will be updated annually with the Consumer Price Index (CPI), calculated by the National Institute of Statistics and Census (INEC), at the close of the previous year's period.