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Stepping Towards
Self-Sufficiency:
An Indigenous Economic Development Plan
Interim Report of the IDB/CANTAP Development Program in the Peruvian Amazon. June 1999
Confederación de Nacionalidades Amazónicas del Perú – CONAP
Prepared by
Wayne Dunn &
Associates Ltd.
And
R.J. Burnside
International Limited
Confederación de Nacionalidades
Amazónicas del Perú – CONAP
Jirón Brigaidier Pumacahua 974
Jesús María, Lima 11, PERU
Telefax: 511.423.8391
Email: [email protected]
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IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)
R.J. Burnside International Limited June, 1999
Wayne Dunn & Associates Ltd.
Table of Contents
1 EXECUTIVE SUMMARY ......................................................................................................................... 1
1.1 BACKGROUND ............................................................................................................................................ 1
1.2 PROGRESS ON THE PROJECT WORKPLAN ..................................................................................................... 1
1.2.1 Project planning and initial mission ................................................................................................. 1
1.2.2 Capacity development ....................................................................................................................... 2
1.2.3 Development of commercial activities .............................................................................................. 3
1.2.4 Development Projects ....................................................................................................................... 5
1.2.5 Legal Analysis................................................................................................................................... 6
1.2.6 Mission to Canada ............................................................................................................................ 6
1.2.7 Signing of Cooperation Agreements ................................................................................................. 7
2 INTRODUCTION ....................................................................................................................................... 9
2.1 REPORT STRUCTURE .................................................................................................................................. 9
2.2 THE PROJECT ............................................................................................................................................. 9
2.3 BACKGROUND ............................................................................................................................................ 9
2.3.1 Project Origins ................................................................................................................................. 9
2.3.2 CONAP ........................................................................................................................................... 10
2.3.3 Consulting Team ............................................................................................................................. 11
2.3.4 Inter-Indigenous Partnerships ........................................................................................................ 11
3 OVERVIEW OF RESULTS AND CHALLENGES ............................................................................... 13
3.1 RESULTS AND ACCOMPLISHMENTS .......................................................................................................... 13
3.2 CHALLENGES ........................................................................................................................................... 17
3.2.1 Lack of salary for CONAP leadership ............................................................................................ 17
3.2.2 Language capacity of the consulting team ...................................................................................... 17
3.2.3 Legislative review/development process ......................................................................................... 17
3.2.4 Project-centric training and capacity development process ........................................................... 18
3.2.5 New and innovative approach to indigenous development ............................................................. 18
3.2.6 Plethora of opportunities ................................................................................................................ 18
4 PROGRESS ON THE PROJECT WORK PLAN .................................................................................. 19
4.1 TASK SET 1 – PREPARATORY WORK, PROJECT PLANNING AND INITIAL MISSION .................................... 19
4.1.1 Meeting/co-ordination of the Consulting Team .............................................................................. 20
4.1.2 Workplan ........................................................................................................................................ 20
4.1.3 Project Meetings ............................................................................................................................. 24
4.1.4 Selection of Accounting Firm ......................................................................................................... 25
4.1.5 Training CONAP on Computer and Accounting Systems ............................................................... 25
4.1.6 Administrative Capacity and Support ............................................................................................. 26
4.1.7 Working with CONAP Regional Offices ......................................................................................... 26
4.1.8 Project Reports ............................................................................................................................... 27
4.2 TASK SET 2 – DEVELOPMENT OF STRATEGIC PLAN FOR OPERATIONS ...................................................... 27
4.3 TASK SET 3 – ADMINISTRATION AND FINANCIAL TRAINING .................................................................... 27
4.4 TASK SET 4 – DEVELOPMENT OF COMMERCIAL ACTIVITIES .................................................................... 28
4.4.1 Mini hydro electric power generation ............................................................................................ 28
4.4.2 Camisea related opportunities ........................................................................................................ 29
4.4.3 De-mining opportunities ................................................................................................................. 31
4.4.4 Tourism ........................................................................................................................................... 33
4.4.5 Arts and crafts (Marotishobo) ........................................................................................................ 34
4.4.6 Transportation Services .................................................................................................................. 35
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IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)
R.J. Burnside International Limited June, 1999
Wayne Dunn & Associates Ltd.
4.4.7 Development services in the border area ....................................................................................... 36
4.4.8 Educational program delivery/International Indigenous University .............................................. 37
4.4.9 National Park Development ........................................................................................................... 38
4.4.10 Geographical Information Systems and Remote Sensing ........................................................... 38
4.4.11 Forestry & non-timber forest products ...................................................................................... 39
4.4.12 Services to petroleum and mineral exploration .......................................................................... 40
4.4.13 Environmental Services .............................................................................................................. 41
4.4.14 Sectoral and Regional Opportunities ......................................................................................... 42
4.5 TASK SET 5 – DEVELOPMENT OF PROJECTS ............................................................................................. 43
4.5.1 Development and Peace ................................................................................................................. 44
4.5.2 Inter-American Foundation Project ............................................................................................... 44
4.5.3 Neegan International Partnership .................................................................................................. 44
4.5.4 Canadian International Development Agency ................................................................................ 44
4.5.5 Foncodes ......................................................................................................................................... 44
4.5.6 Border area projects ....................................................................................................................... 44
4.5.7 Investment promotion mission and seminar ................................................................................... 45
4.6 TASK SET 6 – COMMERCIALIZATION OF PRODUCTS AND SERVICES ........................................................ 45
4.7 TASK SET 7 – LEGAL ANALYSIS ............................................................................................................... 45
4.7.1 World Bank: Operational Directive 4.30 – Involuntary Resettlement .......................................... 46
4.7.2 World Bank: Operational Directive 4.20 – Indigenous Peoples .................................................. 46
4.7.3 IDB: Community Consultation, Sustainable Development ............................................................. 46
4.7.4 IDB: Operational Directive 710 – Involuntary Resettlement ........................................................ 46
4.7.5 ILO: Convention 169 ...................................................................................................................... 47
4.7.6 UNCED: Chapter 26, Agenda 21 .................................................................................................. 47
4.7.7 UN Declaration on the Rights of Indigenous Peoples (Draft) ........................................................ 47
4.7.8 OAS Declaration on the Rights of Indigenous Peoples (Draft) ...................................................... 48
4.7.9 National Laws ................................................................................................................................. 48
4.8 TASK SET 8 – MISSION TO CANADA ......................................................................................................... 48
4.8.1 Meetings with Indigenous businesses ............................................................................................. 49
4.8.2 Meetings with Indigenous Institutions ............................................................................................ 49
4.8.3 Meetings with resource companies ................................................................................................. 49
4.8.4 Meetings with Federal and Provincial government officials .......................................................... 50
4.8.5 Other meetings and activities ......................................................................................................... 50
4.8.6 Expanding the Mission ................................................................................................................... 50
4.9 TASK SET 9 – SIGNING OF COOPERATION AGREEMENTS .......................................................................... 50
4.9.1 University of Washington ............................................................................................................... 50
4.9.2 Neegan International ...................................................................................................................... 51
4.9.3 Anecomsa ........................................................................................................................................ 51
4.9.4 Lagunas – Lac La Ronge twinning agreement ............................................................................... 51
4.9.5 International Indigenous University/SIFC ..................................................................................... 52
4.9.6 Miraflores Chamber of Commerce ................................................................................................. 52
4.9.7 Inter-Indigenous Partnerships ........................................................................................................ 52
4.10 TASK SET 10 – FINAL REPORT ............................................................................................................. 52
5 CHANGES TO CONSULTING TEAM .................................................................................................. 53
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IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)
R.J. Burnside International Limited June, 1999
Wayne Dunn & Associates Ltd.
Disclaimer
This report was prepared by Wayne Dunn & Associates Ltd. and R. J. Burnside International Limited for
Confederación de Nacionaes Amazónicas del Perú. The material in it reflects best judgement in light of the
information available at the time of preparation. Any use which a third party makes of this report, or any
reliance on or decisions made based on it, are the responsibilities of such third parties. Wayne Dunn &
Associates Ltd. and R. J. Burnside International Limited accepts no responsibility for damages, if any, suffered
by any third party as a result of decisions made or actions based on this report.
Confederación de NacionalidadesAmazónicas del Perú (CONAP)
Jirón Brigaidier Pumacahua 974, Jesús Maria, Lima 11, PERU
Telefax: 511.423.8391
Email: [email protected]
Wayne Dunn & Associates Ltd.
2457 Bakerview Road, Mill Bay, BC, VOR 2PO, CANADA
Phone: +1.250-743-7619
Fax: +1.250-743-7659
Email: [email protected]
R.J. Burnside International Limited
15 Townline, Orangeville, Ontario, L9W 3R4, CANADA
Phone: 519-941-5331
Fax: 519-941-8120
Email: [email protected]
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IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)
R.J. Burnside International Limited June, 1999
Wayne Dunn & Associates Ltd.
1 EXECUTIVE SUMMARY
This report covers the project from its inception in late 1998 and includes activities and
accomplishments to May 31, 1999.
1.1 Background
The Inter-American Development Bank’s (IDB) Indigenous community development program for La
Confederación de Nacionalidades Amazónicas del Peru (CONAP) represents a new and innovative
approach to indigenous development. This project, which is largely financed by the Canadian
Technical Assistance Program (CANTAP) focuses on institutional and economic development;
assisting CONAP to move towards economic self-sufficiency and become more productive
participants in the Peruvian economy. A major focus of the project is the use of partnerships with
Canadian indigenous businesses to bridge technical gaps and concentrate on strategic business
development opportunities.
CONAP
CONAP is a representative organization of indigenous peoples in the Peruvian Amazon. CONAP has
a national office in Lima and regional offices and executive in various communities throughout the
Peruvian Amazon region.
Consulting Team
The consulting team is a collaboration between two Canadian firms, R.J. Burnside International
Limited and Wayne Dunn & Associates Ltd. The multi-disciplinary team brings together experts in
indigenous business and economic development, international development and partnership building.
Inter-Indigenous partnerships
A key strategic focus of the project is to link CONAP with Canadian indigenous businesses to
facilitate the sharing of successful business, economic and organizational development experiences.
During the preparatory phase of the current project, CONAP urged the IDB to facilitate partnerships
between CONAP and Canada’s Indigenous Peoples. Canadian Indigenous Peoples have developed
successful businesses in all sectors of the economy and have expertise in connecting business
development with other social, community and organizational objectives. As well, Indigenous
Peoples in Canada have well-developed capacity in educational, social, cultural and political areas.
Building partnerships and sharing experiences between CONAP and Canadian Indigenous Peoples
will assist CONAP to capitalize on development and economic opportunities and will provide new
opportunities and experiences for their Canadian partners.
1.2 Progress on the project workplan
1.2.1 Project planning and initial mission
The initial stages of the project involved working with CONAP to assess organizational capacity and
identify training and development needs. The project, which is being carried out by R.J. Burnside
International Limited and Wayne Dunn & Associates Ltd., both of Canada, then worked with
CONAP to develop a ‘project-centric’ approach to capacity and institutional development. This
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IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)
R.J. Burnside International Limited June, 1999
Wayne Dunn & Associates Ltd.
method focuses on learning by doing. Training and capacity development occurs while working on
real business and economic projects. This allows new skills to immediately be put to practical use,
rather than developing new skills in a classroom setting and then attempting to apply them in real-life
settings later. The project-centric approach is more difficult and time consuming to initiate, but
experience in Canada has proven that it creates more sustainable, long-term organizational and
operational capacity.
The highlights of the initial mission were:
Development of a good collaborative working relationship between CONAP and the consulting
team.
The establishment of a partnership between CONAP and Neegan International, an indigenous
business from Canada. This partnership was announced at a high profile press conference at the
Canadian Embassy in Lima
The operationalizing of CONAP’s Lima office,
A visit to CONAP regional centres of Iquitos, Lagunas and Pucallpa/Yarinacocha
Identification of a number of project and business opportunities.
Hosting of a Peru-Canada Indigenous Business Development Seminar
Facilitation of discussions with the Miraflores Chamber of Commerce
Purchase and installation of a computer system for CONAP’s offices
Initiate training in computer operation, administration and financial procedures. This included
computer orientation sessions held in the regional centres.
Workshops on indigenous business development and Canada’s indigenous business development
experience
Development of a process for selecting an accounting firm
1.2.2 Capacity development
Progress has been made on enhancing CONAP’s organizational and operational capacity. As noted
earlier, a decision was made to focus this process around meaningful projects, which will result in
slower, but ultimately more sustainable progress in this area. A major thrust of the implementation of
the capacity development strategy has been the identification and advancement of business and
project opportunities in order to provide a focus for training efforts. As the following sections
indicate, substantial progress has been made in project development.
In late May CONAP, the IDB and the consulting team met to evaluate the project and progress made
in capacity development. They agreed that the consulting team would need to increase their hands-on
support for CONAP’s operations during the next several months in order to better address CONAP’s
project development, training and capacity development needs. Arrangements have been made for
one member of the consulting team to have an extended presence in CONAP’s office, providing extra
hands-on support in these areas.
The consulting team and CONAP have identified several areas that will be addressed in a strategic
operations and procedures manual. This item will be advanced and completed during the extended
presence in CONAP’s offices. Other items that will be addressed during this period include:
Administration and financial training
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IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)
R.J. Burnside International Limited June, 1999
Wayne Dunn & Associates Ltd.
Project development and management
Office practices
Partnership development
Computer training
Other priorities as identified by CONAP
The entire consulting team will remain available via email and telephone to assist with this process.
1.2.3 Development of commercial activities
A major focus of the consulting team’s work to date has been the identification and development of
commercial opportunities. Beginning with the partnership with Neegan and continuing through the
identification of thirteen specific commercial opportunities, the development of strategies and action
plans for each, and the identification of potential Canadian indigenous partners, the project has laid
the foundation for CONAP to take major strides towards economic self-sufficiency. The body of the
report presents background information, summary of work completed, a development strategy and an
action plan for each of the following commercial opportunities.
1. Mini hydro electric power generation – There is an opportunity to utilize state of the art mini
hydro electric power generation technology to supply many communities that are now serviced
by more expensive diesel generated electricity. A potential partner has been identified and a pilot
site located.
2. Camisea related opportunities – Development of the Camisea gas field will result in billions of
dollars in contract and business opportunities. Canadian indigenous businesses with expertise in
supplying goods and services to oil and gas projects are ready to work with CONAP to develop
business opportunities with the Camisea project.
3. De-mining opportunities – The Peru-Ecuador peace agreement has created the need for huge
areas of the border area to be cleared of anti-personnel mines. Canada is a world leader in the
promotion of demining activities. A Canadian indigenous firm with expertise in demining is
interested in working with CONAP to secure demining contracts in the region.
4. Tourism development – The Amazon region is known worldwide for its tourism potential.
Indigenous peoples have a strategic advantage in developing new tourism products because the
fastest growing sector of the tourism industry is eco-cultural tourism. Although many parties
have been identified who are interested in working with CONAP to develop specific
opportunities, it is recommended that a comprehensive indigenous tourism strategy be developed.
This would allow for systematic development of the industry in a manner that will maximize
benefits to local indigenous peoples.
5. Arts and Crafts – The Shipibo Peoples are well known for their arts and crafts ability. They
have operated an arts and crafts business in Pucallpa/Yarinacocha for nearly 25 years. They have
demonstrated remarkable commitment, sticking with the business through many difficult times.
Currently there are several local issues that need to be addressed and then a detailed business plan
developed that will chart a course towards financial self-sufficiency for the operation.
6. Transportation services – The current transportation infrastructure and services in the entire
region will need to be upgraded to accommodate the new business and investment the region is
expecting. Transportation has proven to be an attractive and profitable sector for Canadian
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IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)
R.J. Burnside International Limited June, 1999
Wayne Dunn & Associates Ltd.
indigenous businesses, with successful operations in air, marine, surface, construction and other
aspects of the industry. A systematic review of this sector could identify significant opportunities
to work with Canadian or other interests and participate productively in upgrading the system.
7. Development services in Peru-Ecuador border area – The peace agreement has stimulated
significant international interest in the border area. The World Bank and the IDB have both
pledged USD$500 million to development programs in the area. Other nation states and
development agencies are also planning activities in the area. CONAP, with its connection to
local peoples and knowledge of the area, could be a strategic partner and/or promoter of many of
the projects.
8. Educational program delivery/International Indigenous University – The Saskatchewan
Indian Federated College (SIFC) has been delivering Spanish educational programs in remote
areas for a number of years. They have recently begun developing an International Indigenous
University. SIFC wants to meet with CONAP and explore opportunities for collaborating in the
new University and for ongoing program development and delivery.
9. National Park Development – The World Bank has announced USD$20 million in financial
support for the development of four new National Parks in Peru. One will be located in the Peru-
Ecuador border region. Through partnerships with Canadian and other interests, CONAP can add
technical expertise to its base of local knowledge and be in an excellent position to secure
contracts related to the development of the Parks.
10. Geographical Information Systems and Remote Sensing – GIS and Remote Sensing
technology is the most efficient and effective technology for dealing with many of the unresolved
land and demarcation issues in the Peruvian Amazon region. As well, increasing interest in
mineral and petroleum resources in the area is fueling the demand for more and better
geographical and geological information. A Canadian indigenous firm with expertise in GIS and
Remote Sensing wants to work with CONAP to develop a business in this sector.
11. Forestry and non-timber forest products – The Amazon region holds vast reserves of timber
and is a virtual treasure of non-timber forest products (i.e. medicinal plants, teas, etc.). Even
though the lands are traditional indigenous territories, Indigenous Peoples are, at best, marginal
players in these industries. At least one existing company that is active in using local plants for
teas has expressed interest in working with CONAP on this opportunity. The full range and
extent of the opportunities represented by forestry and non-timber forest products is not well
known, nor is it known what sustainable harvest/yield levels are. The project recommends
conducting participatory research to create a sustainable forest usage strategy and opportunity
identification study. After this research is completed various strategies, including joint venture,
can be utilized to pursue the most promising opportunities.
12. Services to petroleum and mineral exploration – Peru is home to two of the world’s major
resource development projects; the aforementioned Camisea project and the USD$2.2 billion
Antamina mining project. Attracting new investment into these sectors is a key component of the
national governments economic development strategy. Numerous firms from Canada and other
countries are actively exploring for petroleum and mineral resources throughout the Amazon
region of Peru. This represents a significant business opportunity and one that Canadian
indigenous peoples have a plethora of experience in.
13. Environmental services – The Amazon region is known as one of the most environmentally
sensitive regions in the world. Increasing settlement, resource development and other activities
are creating many opportunities to supply environmental management, monitoring and other
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IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)
R.J. Burnside International Limited June, 1999
Wayne Dunn & Associates Ltd.
services. Indigenous peoples are recognized throughout the world for their environmental
stewardship and sensitivity. Indigenous businesses in Canada have developed expertise in
providing many environment related business services and are interested in working with
CONAP to establish businesses in this sector.
14. Sectoral and regional opportunities – There are many regional and sectoral opportunities for
business and commercial projects in the Amazon region. Rice production, Jute, Silkworm
production, forestry, fishing, coffee production, medicinal plants, and banana production are
some that have been discussed and identified. Many of these opportunities have entrepreneurs
and organizations ready to develop them further. The consulting team will work with them to
assist in further development and commercialization of these opportunities.
1.2.4 Development Projects
In addition to the commercial projects detailed in the previous section, the consulting team has been
working with CONAP to identify and develop projects of a more developmental nature and to assist
with ongoing CONAP projects. Details on the following projects are contained in Section 4.5 of this
report.
1. Development and Peace – This is an ongoing, Canadian funded, project to assist in reviewing
laws related to indigenous peoples and petroleum exploration.
2. Inter-American Foundation (IAF) – A proposal was submitted to the IAF to assist CONAP
with additional training, and organizational development. The IAF has refocused its program and
is no longer supporting this type of project. However, they did agree to give priority
consideration to providing up to $500,000 towards developing one of the business opportunities
noted earlier – provided that a comprehensive business plan was in place.
3. Neegan International Partnership – As noted earlier, the consulting team facilitated a
partnership between CONAP and Neegan International, a Canadian indigenous company with
expertise in business development. The partnership has contributed greatly to the advancement of
the commercial opportunities discussed earlier.
4. Canadian International Development Agency (CIDA) – A proposal is being developed for
submission to CIDA to secure the resources for expanded support to CONAP’s economic
development efforts.
5. FONCODES – A number of potential FONCODES projects have been discussed, with several
focusing on municipal water systems and waste management. The consulting team will continue
working with FONCODES and CONAP to advance these discussions and develop a project
proposal.
6. Peru-Ecuador Border Area Projects – The aforementioned programs and projects for the
border area will create project opportunities that are consistent with CONAP’s developmental
priorities. Initial meetings have been held with IDB officials in this regard. Further investigation
of this opportunity is required.
7. Investment Promotion Mission and Seminar – Consideration is being given to identifying
additional resources in order to expand CONAP’s upcoming mission to Canada; allowing more
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IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)
R.J. Burnside International Limited June, 1999
Wayne Dunn & Associates Ltd.
CONAP participation and enabling visits to more than one region of Canada. As well, the IDB
has offered to host a Round Table in Washington, DC to promote CONAP’s projects and
facilitate greater interaction between CONAP and Washington based development projects.
1.2.5 Legal Analysis
The consulting team conducted an identification and initial review of international directives and
declarations that had potential impact on CONAP’s development aspiration. The following were
identified as key instruments:
1. World Bank: Operational Directive 4.30 – Involuntary Resettlement
2. World Bank: Operational Directive 4.20 – Indigenous Peoples
3. IDB: Community Consultation, Sustainable Development
4. IDB: Operational Directive 710 – Involuntary Resettlement
5. ILO: Convention 169
6. UNCED: Chapter 26, Agenda 21
7. UN Declaration on the Rights of Indigenous Peoples (Draft)
8. OAS Declaration on the Rights of Indigenous Peoples (Draft)
A short discussion on key aspects of each is contained in Section 4.7. A local legal expert, Mercedes
Manriquez, with extensive background in indigenous issues and a good working relationship with
CONAP, was retained to undertake a more thorough review of these international instruments and
national laws.
The consulting team also conducted a review of AYUDA MEMORIA, which is the framework for a
larger set of negotiations between Indigenous Peoples and petroleum companies in Peru. This
analysis directed CONAP’s attention to a number of deficiencies in the framework and assisted with
their involvement in the process.
1.2.6 Mission to Canada
Extensive work has gone into preliminary preparations for CONAP’s upcoming mission to Canada.
During the visit, CONAP will be exposed to some of Canada’s leading indigenous businesses and
institutions. Many of these are interested in discussing specific partnership opportunities with
CONAP. Some of the planned activities include:
1. Indigenous businesses – there will be meetings with, and site visits to, many of the businesses
that are interested in partnering with CONAP on the specific opportunities noted earlier. Site
visits have also been arranged with several.
2. Indigenous institutions – meetings have been set up with indigenous governmental, service
delivery and educational institutions. Site visits have also been arranged with many.
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IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)
R.J. Burnside International Limited June, 1999
Wayne Dunn & Associates Ltd.
3. Resource companies – CAMECO, a Canadian based mining company that purchases over $100
million per year in goods and services from Canadian indigenous businesses, will host CONAP
and discuss their work with indigenous peoples and how it adds value to their operations.
4. Federal and Provincial government officials – meetings have been arranged with key officials
of the provincial and federal governments.
Other activities and media events will be planned after further consultation with CONAP. As noted
earlier, there is a potential to expand the scope of the mission to enable visits to other regions of
Canada and meetings in Washington, DC.
1.2.7 Signing of Cooperation Agreements
The consulting team has worked with CONAP to build on CONAP’s existing cooperation and
agreements and to identify new opportunities for strategic cooperation and collaboration. Some of
these include:
1. University of Washington – CONAP has a long-standing relationship with the University of
Washington. The consulting team is working with CONAP to identify opportunities to build on
this established relationship.
2. Neegan International
On February 5, 1999, at a high profile press conference at the Canadian Embassy in Lima,
CONAP signed a Memorandum of Agreement with Neegan International, an Indigenous owned
business from Canada, to collaborate in enabling Indigenous peoples to participate more
productively in the Peruvian economy. The collaboration will focus on:
The creation and execution of a comprehensive economic development strategy for CONAP
and its member regions.
Facilitating linkages and sharing of experiences between CONAP, its member communities,
and Canadian Indigenous organizations involved in social, cultural, educational and business
development.
Encouraging the governments of Peru and Canada to collaborate and share experience on
indigenous business and economic development.
This agreement has already produced many of the commercial and other project opportunities
identified in earlier sections of this report.
3. Anecomsa – Anecomsa is a Peruvian indigenous organization working with communities in the
Andean region of the country. They are also receiving technical support and financial assistance
from the IDB. CONAP and Anecomsa have signed an agreement to collaborate in the execution
of the IDB projects.
4. Lagunas – Lac La Ronge Community Twinning – During the visit to Lagunas the local Mayor
asked CONAP for assistance in setting up a twinning arrangement with a Canadian indigenous
community. After reviewing expectations and community criteria with CONAP, the consulting
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IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)
R.J. Burnside International Limited June, 1999
Wayne Dunn & Associates Ltd.
team has identified a community – Lac La Ronge Indian Band. Lac La Ronge has expressed
strong interest and is looking forward to moving this project forward.
5. International Indigenous University – As noted earlier, the Saskatchewan Indian Federated
College wishes to collaborate with CONAP in the development and delivery of educational
programs and to explore possible CONAP involvement in the creation of an International
Indigenous University.
6. Miraflores Chamber of Commerce – Meetings were held with the President and other
representatives of the Chamber. As well, Chamber representatives attended the Peru-Canada
Indigenous Development Seminar that CONAP hosted. The Chamber expressed interest in
building a closer relationship with CONAP and in identifying specific opportunities for
collaboration.
7. Inter-Indigenous Partnerships- as noted earlier, the consulting team has identified numerous
indigenous businesses and institutions that are interested in developing commercial and
development projects with CONAP.
The following sections contain detailed information on the aspects of the project discussed above.
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IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)
R.J. Burnside International Limited June, 1999
Wayne Dunn & Associates Ltd.
2 INTRODUCTION
2.1 Report Structure
This report is written to provide background information on the project and key participants, and to
present a summary of project activities and progress made to May 31, 1999. This is an interim report
and will be updated to incorporate comments and developments as the project progresses.
Background information on the project, key participants and on inter-indigenous partnerships is
provided in Section 2. Section 3 highlights the overall approach to the project and identifies
accomplishments and challenges. Section 4 contains an item by item review of progress on project
tasks and provides detailed information on potential business and economic projects. As well, a
development strategy and itemized workplan is presented for each commercial and business
opportunity listed. Section 5 discusses some changes to the consulting team makeup.
A package of supporting and background materials has been prepared and provided to CONAP and
the IDB under separate cover.
2.2 The Project
The overall objective of the project is to increase CONAP's ability to participate constructively in the
Peruvian economy and to enhance CONAP’s institutional capacity to provide business and economic
development, and other support services to indigenous communities of the Peruvian Amazon region.
The project team is collaborating with CONAP to achieve this objective by assisting with work
planning, training and human resources development, partnership building and identifying and
developing economic and development project opportunities.
The three main components of the project are:
A. The institutional strengthening of CONAP, (a project focused capacity development approach
that includes collaboration with Canadian indigenous businesses and institutions)
B. Increased constructive participation in the Peruvian economy through the strategic development
of collaboration with the private sector and improving access to national and international
funding institutions, and
C. Improving CONAP’s capacity to support the economic development aspirations of indigenous
communities in the Amazon (with a focus on identifying and developing specific opportunities
i.e. marketing of products and services and strategic participation in key areas of the local
economy (tourism, resource development, etc.)
2.3 Background
2.3.1 Project Origins
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This project has its origins in meetings between the Canadian Executive Director’s office at the IDB
and Mr. Bernardo Guillamon, a Micro-Enterprise Specialist with the IDB and in Apikan Indigenous
Network’s pioneering work on inter-indigenous partnerships. These meetings spawned a preparatory
assistance project, which was financed by the Canadian Technical Assistance Program (CANTAP).
The project, which was executed by Apikan, also designed the projects and developed terms of
reference for the CONAP project and for two other indigenous development projects in Peru. The
Canadian government, through the CANTAP program, is financing the costs of the consulting team
that is assisting CONAP to execute the project. The IDB has provided financial assistance for
CONAP to cover project costs and is administering the CANTAP funds as well.
2.3.2 CONAP
The Confederation of Amazon Nations of Peru (CONAP), is a representative organization of
indigenous peoples in the Peruvian Amazon. CONAP has a national office in Lima and regional
offices and executives in various communities throughout the Peruvian Amazon region.
CONAP’s organizational focus addresses the need for sustainable cultural and economic self-
determination and maintaining their political identity. The organization strives to reach these goals
by claiming larger control on their lands and natural resources, increasing participation in the
national, regional and local political and economic arenas and by developing a strong organizational
system. CONAP maintains linkages with other Indigenous Peoples throughout the Americas and
around the world, working in solidarity to support cultural, economic and political objectives.
CONAP, with the participation of their individual members, national leaders, professionals and the
cooperation of diverse national and international institutions seeks to develop and promote actions in
the following basic areas:
Defense and Organizational Consolidation
Capacity Building within Individuals for Management of the organization
Human rights
Promotion of Women's Rights
Environmental Protection and Sustainable Development of the Amazon
Invigoration of the Productive Capacity of the Communities
Diffusion and Communication of Information
The organization of CONAP is divided into four unique sections.
1. National Congress of CONAP - the highest authority of the Organization and is composed of all
the associate members. The members have the rights to speak and vote at the sessions of the
National Congress.
2. National Directive Council - is composed of President, Vice President, Secretary of Economy,
Secretary of Records and Files, Secretary of Defense, Secretary of Organization, Secretary of
Communications, Secretary of Training and Culture, Secretary of Feminine Matters, Secretary of
Health, Secretary of Production and Commercialization and Secretary of Sports.
3. Advisory Board - guides CONAP in its operation with recommendations from elders and
appointed members of the advisory committee.
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4. Regional Headquarters - provides leadership to the regional communities by means of
administration and economic leadership.
2.3.3 Consulting Team
The consulting team assisting CONAP is a collaborative effort between RJ Burnside International
Limited and Wayne Dunn & Associates Ltd., both of Canada. The multi-disciplinary team brings
together a broad set of skills, including strong expertise in indigenous business and international
development.
2.3.4 Inter-Indigenous Partnerships
In addition to cultural and lifestyle similarities, Indigenous Peoples throughout the Americas have
shared many comparable experiences during the five hundred years since Columbus first landed.
Loss of traditional lands and livelihoods, colonialization, economic and social marginalization, and
attempts at cultural extinction are some of the common elements of the history of Indigenous Peoples
throughout the hemisphere. Despite these experiences, indigenous culture and identity remains strong
and Indigenous Peoples are beginning to share new, more positive experiences; assisting each other to
achieve development objectives.
Many of Canada’s Indigenous Peoples have begun to focus on business and economic development,
seeking to become more productive participants in the Canadian economy and to gain increased
control over their own destinies. Over the past ten years this has produced a virtual explosion in
indigenous business development with thousands of businesses, operating successfully in every sector
of the Canadian economy. At the same time indigenous peoples have been developing the political
and institutional capacity to assume increasing control of the institutions and agencies that are daily
parts of their lives.
Canadian Indigenous peoples lead the world in Indigenous business development and have developed
expertise in developing business in ways that are supportive of cultures and communities. Latin
American Indigenous peoples often have access to business opportunities, but lack the financial and
technical capacity to take full advantage of them. Indigenous peoples in Latin America have strong
families and communities and are not besieged by many of the social issues that are plaguing many
North American Indigenous Peoples. Facilitating the development of partnerships and linkages
between Indigenous Peoples throughout the Americas can help to address many of the pressing social
and economic issues they are facing.
The experiences of Canada’s Indigenous Peoples provide a huge pool of development expertise that
can collaborate with other Indigenous Peoples who have not yet had the same development
experiences. Inter-Indigenous Partnerships in which Indigenous peoples in Canada and their
counterparts in other areas of the world share experience, capacity and learning are a promising
development strategy. These partnerships offer a number of specific advantages for all concerned
(Canadian Indigenous Peoples, Indigenous Peoples from Latin America and elsewhere in the world,
Development agencies and institutions, private sector firms operating in the vicinity or Indigenous
peoples, Nation States, etc.). The partnerships can facilitate sharing of relevant experiences, help to
bridge capacity gaps, support institutional development and promote meaningful indigenous
participation in resource development and other business projects.
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The natural resource sector (Mining, Oil & Gas, and related activities such as pipeline construction) is
a fertile sector for the development of inter-indigenous partnerships between Canada and Peru.
Indigenous businesses in Canada have a plethora of experience in providing goods and services to the
resource industry. Indigenous peoples in Peru live on lands where companies from Canada and
around the world are exploring for and developing resources. Resource companies are often
searching for new and constructive ways of involving Indigenous peoples in resource development
projects. However, CONAP, like many Indigenous organizations, lacks the technical and financial
capacity to assist their people to capitalize on these opportunities. Linking resource based Canadian
Indigenous businesses together with Indigenous peoples from the Peruvian Amazon region will result
in the development of inter-Indigenous partnerships that will produce meaningful and sustainable
benefits for all concerned.
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3 OVERVIEW OF RESULTS AND CHALLENGES
The initial stages of the project focused on working with CONAP to identify strengths, weaknesses,
project opportunities and project execution strategies. There was little interest in training people who
would then have no project or activity on which to apply their new skills. An early decision was
reached to avoid training and capacity development in a projectless vacuum and instead, to
strategically focus the capacity development around actual opportunities and issues. CONAP and the
consulting team felt that this opportunity-centric approach would serve to anchor the training and
development in meaningful projects and activities, thereby increasing the relevance of the learnings
and producing more sustainable results. They recognized that this approach would result in more up-
front time and a slower start to the project. However, they agreed that the increased ability to produce
long term, sustainable benefits far outweighed any issues that may arise from a slower project launch.
3.1 Results and Accomplishments
Key results, grouped according to the projects main components, are summarized below. A more
detailed documentation of results is contained in the Section 4.
A. The institutional strengthening of CONAP, (a project focused capacity development approach that
includes collaboration with Canadian indigenous businesses and institutions)
Institutional strengthening – at the request of CONAP, an inception mission was undertaken to
conduct an initial assessment of CONAP’s institutional and operational capacity and to discuss
execution strategies. Initial training focus has been on developing the skills to operationalize
CONAP’s offices and to begin to lay the groundwork for a more strategic approach to economic
development. In CONAP’s Lima office and in regional offices, specific training areas that were
initiated included; computer orientation and operation; project administration, business and economic
development strategy (focused on resource extraction and tourism), negotiations and project
management. In addition, the project team utilized a press conference at the Canadian Embassy as a
hands-on session in media relations training. It should be noted that the training to date has only
begun to address the issues and that ongoing training and skills development will be required.
Institutional strengthening is an ongoing process that will require continued focus for the life of this
project and beyond.
B. Increased constructive participation in the Peruvian economy through the strategic development of
collaboration with the private sector and improving access to national and international funding
institutions.
Economic development strategy, opportunity identification, and development – a key focus of
the Jan/Feb 1999 mission was laying the groundwork for the elaboration of an economic development
strategy and identifying opportunities to enable CONAP to take a more productive role in the
economy of the Peruvian Amazon region. Focus areas for the strategy included:
(a) Bridging technical and financial gaps
(b) Developing strategic partnerships and institutional collaboration
(c) Identifying and focusing on key opportunities
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(a) Bridging technical and financial gaps
In order to bridge the technical and financial gaps that prevented CONAP from taking full advantage
of opportunities, it was decided to focus on internal capacity development and to develop an inter-
indigenous partnership with a Canadian indigenous business that had the necessary capacity, expertise
and access to resources. The consulting team facilitated an agreement with Neegan International, a
Canadian indigenous company headed by Mr. Ken Thomas, a Cree Indian from Saskatchewan,
Canada. Ken Thomas is one of the leading indigenous business people in Canada and, as the
Chairperson of Aboriginal Business Canada, played a catalytic role in facilitating the financing and
development of several thousand Canadian indigenous businesses.
A Memorandum of Agreement was negotiated between CONAP and Neegan and was signed in a
ceremony with the Canadian Ambassador. The agreement generated wide media coverage in Peru
and provides a cornerstone of CONAP’s economic development strategy. Additional details on the
agreement are contained in Section 4.9.2 of this report.
Workshops on indigenous business development and economic development strategies were held
with CONAP’s executive and membership in Lima, Iquitos, Lagunas, Pucallpa and Yarinacocha. The
improved understandings gained in these workshops, combined with previous CONAP activities in
the oil and gas sector, will form the basis for the creation of a strategically focused economic
development strategy. The workshops also served to identify several business and commercial
opportunities. These are discussed in more detail in Section 4.4 of this report.
Meetings have been held with the Inter-American Foundation (IAF), a development financing arm of
the United States, the Fondo Peru-Canada, Foncodes and other institutions regarding project
financing support. The Fondo Peru-Canada has approved a rice production project that will be
starting in September 1999. The IAF has agreed to give priority consideration to investing up to
$500,000 to support the development of a viable business, once a detailed business plan has been
completed. Foncodes has expressed interest in assisting with several projects.
The consulting team has completed an initial identification of key international instruments and
directives such as the International Labour Organization’s (ILO) Convention 169 on Indigenous and
Tribal Peoples. As well, the first phase of analysis has been completed. A final analysis and report
will be completed in the next several months. Additionally, the project commissioned a review of the
document AYUDA MEMORIA (#001-99-MEM/BM/MG). This document is a framework for much
larger negotiations between the indigenous people and the petroleum companies. The review proved
useful for CONAP’s involvement in the process. Detailed information on this work is contained in
Section 4.7 of this report.
(b) Developing strategic partnerships and institutional collaboration – in addition to the
aforementioned partnership between CONAP and Neegan significant progress has been made in
developing additional strategic partnerships and institutional collaboration.
Miraflores Chamber of Commerce – meetings were held with the President and representatives of
the Chamber. A representative of the Chamber attended the public portion of the Peru-
Canada Indigenous Business Development Seminar on Jan. 29. There is interest in exploring
a range of potential business and collaboration opportunities including tourism development,
non-timber forest products and other Amazon investment and development opportunities.
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Additional partnerships with Canadian indigenous businesses – the partnership with Neegan
International has identified eight strategic opportunities for collaboration with Canadian
indigenous businesses. Potential partners have been identified to explore opportunities in;
mini hydro, Camisea, de-mining, National Park development, linking educational institutions,
environmental services, transportation and community twinning. Development work is
ongoing to further explore these opportunities and build the partnerships. This is covered in
more detail in Section 4 of this report.
Puerto Palmeras Tarapoto Resort – This resort is part of a chain of resorts operated by the
Corporacion Turistica Amazonica S.A. As a result of meetings with the Miraflores Chamber
of Commerce, a meeting was held with the owner of the Puerto Palmeras Tarapoto Resort to
discuss the tourism industry and possible opportunities for collaboration with CONAP and its
member organizations
Mushu S.A. Productos Naturales – this company produces teas and other natural non-timber forest
products. A meeting was held to explore the potential of collaborating with CONAP to
harvest and market Amazonian products.
Seminar on Trade and Investment in the Peruvian Amazon – Project team member Wayne Dunn
was a speaker and panelist at a Peruvian government sponsored forum on Trade and
Investment in the Peruvian Amazon, which was held at the Ronald Reagan International
Trade Center in Washington, DC on March 4, 1999. This seminar, which was also attended
by the Vice President of Peru and many Peruvian and international business people, provided
an opportunity to communicate CONAP’s interest in developing business and economic
collaboration with other institutions and firms.
Increased collaboration with the Inter-American Development Bank (IDB) – The Chief of
Indigenous Peoples and Social Development at the IDB, has agreed to host a round-table
discussion to promote CONAP’s economic aspirations and to facilitate increased interaction
with other IDB projects and with other Washington based development institutions.
Canadian Embassy/Government – the Canadian Ambassador to Peru hosted the CONAP – Neegan
signing ceremony and was a witness to the agreement. Various other departments and
agencies of the Canadian government have expressed interest in collaborating with CONAP
Peruvian National Government/World Bank – CONAP has been supported (albeit in a limited way
due to budgetary constraints) in its involvement in the development of new resource
legislation for Peru and other developments that impact their lands. The consulting team has
assisted with this by providing a review of significant documents and suggesting issues and
strategies. A significant development is the World Bank/Government of Peru requesting
CONAP’s involvement in the creation of a national park in the Peru/Ecuador border region.
Camisea and other resource development – The consulting team has worked with CONAP to
develop a new, more constructive strategy for collaboration with Camisea and other resource
development initiatives on CONAP’s lands. They plan to utilize strategic approaches such as
the joint-venture strategy that has enabled Canada’s Lac La Ronge Indian Band to develop
$40 million/year in business with local mining projects. CONAP has identified opportunities
and business partners and is poised to capture significant business from Camisea and other
projects, if they are able to secure implementation support. A major focus of CONAP’s
mission to Canada in September/October 1999 will be to see first hand the Lac La Ronge and
other successful Canadian indigenous businesses and to use this learning in developing
Camisea related business opportunities.
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Mission to Canada – a tentative plan has been developed for CONAP’s mission to Canada. The
mission will focus on introducing CONAP to the operations of the potential Canadian
indigenous partners (see Section 4 for details). Additionally, the government of
Saskatchewan and CAMECO, a major Canadian mining company, has agreed to participate
in the mission.
(c) Identifying and focusing on key opportunities
CONAP is working with the consulting team to identify and focus on key opportunities that can make
a notable contribution towards long term economic self-sufficiency. To date fourteen commercial
opportunities have been identified and strategies created to develop them further. Examples include
the multi-billion dollar development of the Camisea gas field, the Peru-Ecuador border area which is
expecting billions of dollars in new development following the signing of the peace agreement,
tourism development, and infrastructure project opportunities. A second area of focus is on assisting
communities and local entrepreneurs to participate more productively in the existing local economy.
The consulting team has traveled to the regions with CONAP executives to begin the process of
identifying business opportunities, market potential and understanding the barriers that need to be
overcome for various communities and regions. Additional details on specific opportunities are
provided in Section 4.4.
C. Improving CONAP’s capacity to support the economic development aspirations of indigenous
communities in the Amazon (with a focus on identifying and developing specific opportunities i.e.
marketing of products and services and strategic participation in key areas of the local economy
(tourism, resource development, etc.)
As discussed in prior sections, excellent progress has been made on identifying specific economic
opportunities and outlining strategies to take advantage of them. Initial training and capacity
development efforts were undertaken, seeking to assist in developing key capacities and
understanding of business and economic development. These have included:
Operationalizing CONAP’s Lima office (basic office procedures, computer skills, filing,
administration, etc.). Informal assessments were completed and initial aspects of the strategic
plan of operations and the procedures manual were developed and implemented during this
process. Computers were purchased and installed, staff training initiated, some manual and
electronic reporting and recording forms were developed to enable CONAP staff and
executive to improve key record keeping and information gathering activities. A selection
procedure for engaging an accounting firm was developed; a number of firms submitted
proposals and a series of interviews occurred. It is expected that CONAP will retain an
accounting firm to implement a computerized financial accounting system and provide
financial services and training in the near future. The consulting team has refocused the
workplan to enable more resources to be dedicated to fully operationalizing CONAP’s offices
in Lima.
Peru-Canada Indigenous Business Development Seminar – on January 29 a Peru-Canada
Indigenous Business Development Seminar was held at the Canadian Cooperation Office in
Peru. The seminar featured discussion on the business and economic experiences of
Canadian Indigenous Peoples. The strong focus on natural resource development was of
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particular interest to CONAP’s membership and the various private sector and governmental
representatives in attendance.
Business and economic development workshops were held in Lima, Iquitos, Pucallpa and Lagunas.
There was a strong focus on strategic approaches to the issue and use was made of successful
examples from Canada. The purpose of the workshops was to introduce new concepts and
ideas such as the Canadian indigenous business development experience with joint-ventures,
strategic targeting of opportunities, etc., to explain success stories (Lac La Ronge Band
building a $40 million/year business) and to stimulate new ways of thinking about business
and economic development.
Computer awareness/orientation training – in addition to conducting sessions for staff and
executives in CONAP’s Lima office, the consulting team conducted several hands-on
computer orientation sessions during the regional visits. For many in the regions it was the
first time they had ever seen a computer.
3.2 Challenges
As with any innovative, groundbreaking project, this one has faced, and continues to face a number of
challenges. Some of these include:
3.2.1 Lack of salary for CONAP leadership
To be successful, this project must be a priority focus for CONAP leadership, occupying a
considerable share of their time. This is difficult as CONAP has no core funding and is not able to
give their executive and President a salary to enable them to provide for their families. The terms and
conditions of funding for this project specifically prohibit paying of CONAP salaries. It is a
testament to the dedication of CONAP’s leaders that they continue to be enthusiastically committed,
investing hundreds of volunteer hours in the project, despite the economic strain it puts on their
families. However, if project resources could be used for salaries the project would benefit greatly
from the increased time that the leadership could commit to it.
3.2.2 Language capacity of the consulting team
Some members of the consulting team had little or limited ability to communicate in Spanish.
Although this was largely overcome by having translators available, it did detract from the overall
communication process.
3.2.3 Legislative review/development process
Peru, with assistance for the World Bank is currently undertaking a major review of resource
extraction legislation. Part of the review process involves consultations with CONAP and other local
peoples. This provides an excellent opportunity to negotiate local/indigenous preferences for
constructive involvement in resource development activities. A small preference can provide a
strategic advantage for CONAP in its efforts to develop partnerships to supply downstream goods and
services to resource extraction projects. Canada’s Lac La Ronge Indian Band used a similar process
to develop a $40 million/year business in mining. Unfortunately, CONAP does not have the
resources or capacity to take full advantage of this opportunity. The consulting team does not have
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the mandate or resources to adequately support CONAP in this process. An attempt was made by
commissioning a review of the document AYUDA MEMORIA (#001-99-MEM/BM/MG).
3.2.4 Project-centric training and capacity development process
As noted previously, this approach focuses on developing meaningful projects and activities and then
structuring training and capacity development around them. This strategy is more sustainable,
enables better overall learning, and assists in project development and overall progress towards
economic self-sufficiency. For example, rather than conduct a generic training program in
negotiations and then expect people to apply the new skills the next time they are in negotiations, a
negotiations training program will be developed around a specific negotiation (i.e. participation in a
particular resource project). This process is also more time consuming and thus more costly as
considerable additional research must be done to essentially provide advice on a particular set of
negotiations. However, CONAP and the consulting team felt it was the most appropriate way as not
only will more effective learning occur, but an actual project will be furthered in the process.
3.2.5 New and innovative approach to indigenous development
The approach being taken by this project focuses on developing real projects to address economic
marginalization and then structuring training and capacity development around these projects.
CONAP has overall responsibility for the success or failure of the project. Although this is much
slower and often more difficult than traditional approaches where the consultant plays a much more
central role in the clients operation, it will ultimately lead to a more sustainable result. Additionally,
the bridging of technical and capacity gaps through partnerships with Canadian indigenous businesses
is also a process that, while it offers significant long-term economic payoff, requires large upfront
investments of time and resources to identify and screen potential partners and to facilitate initial
discussions and partnership development.
3.2.6 Plethora of opportunities
CONAP faces a plethora of exciting and substantial opportunities, many of which can produce long
term economic benefits. It requires a considerable investment of time and resources to work with
CONAP to prioritize and rank those opportunities that will offer the best probability of success,
providing the groundwork for the development of an economic base for CONAP and its member
communities. We expect that this project can be a precursor to additional initiatives that will make a
long term, sustainable difference and chart a new course for indigenous development.
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4 PROGRESS ON THE PROJECT WORK PLAN
The results achieved to date are listed below under the headings of the task sets as listed under the
terms of reference.
4.1 Task Set 1 – Preparatory Work, Project Planning and Initial Mission
The first task involved initial meetings with CONAP to review project priorities and execution
strategies, assess CONAP’s institutional capacity, establish project team members, orientation for
those unacquainted with the specifics of the project, outline responsibilities, and confirm the
workplan. The initial mission of the Canadian consulting team occurred from January 18, 1999 to
Feb 6, 1999 and involved Norm Looker, Wayne Dunn, Rodrigo Contreras, Grant Bennington and
Oscar Milliones. As well, Ken Thomas, of Neegan International participated in the mission at his
own expense.
Highlights of the first mission included:
Development of a good, collaborative working relationship between the consulting team and
CONAP Executive and staff
Establishment of an Inter-Indigenous partnership between CONAP and Neegan International
Purchase and installation of computer system for CONAP’s Lima office
Initial computer orientation and training for staff and executive
Identification of a number of business and economic opportunities (see details in Section 4.4)
Visits to CONAP regional offices in Iquitos, Lagunas and Pucallpa/Yarinacocha
Hosting the first ever Peru-Canada Indigenous Business Development Seminar
Public Awareness – CONAP received broad national coverage by all major Peruvian media for
the signing ceremony of its agreement with Neegan International.
Administration training and procedures – the consulting team developed forms (computerized and
manual), record keeping procedures and information managing process to assist CONAP staff
and executive with key administrative functions. This is an ongoing task and more progress will
occur during subsequent missions and during the extended team’s presence in CONAP’s offices.
Linkages were developed with other Peruvian and international businesses and institutions (see
details in Section 4.9)
CONAP Executive responsibilities were assigned for various project functions
Responsibility Name
Administration Issues Luis Katip - Accounting
Computer Issues Isaac Paz/Fermin Punt
Relations With Other Organizations Jorge Dionisio
Negotiations With Private Companies
and Development of Projects
Cesar Sarasara/Manuel MacKenzie
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Workshops on Indigenous business and economic development held in Lima and in CONAP
regional centres (Lagunas, Iquitos, Pucallpa and Yarinacocha). These workshops also covered
basic negotiation strategies, focusing on capturing benefits from resource development projects.
Computer orientation training delivered in Lagunas, Iquitos, Pucallpa and Yarinacocha
A facility was identified to provide ongoing, structured computer training
A process was developed for selecting an accounting firm
Proposals received from four accounting firms and interviews held with all
Week 1
Jan 18-25
Activities in CONAP’s national office in Lima
Week 2
Jan 25-30
Activities in CONAP’s national office in Lima
Began travel to regional offices and initial meetings/workshops in Iquitos
Week 3
Jan 31 – Feb 6
Additional meetings/workshops in Iquitos and meetings in Lagunas,
Tarapoto, Pucallpa and Yarinacocha
Agreement signed with Neegan International at press conference in
Canadian Embassy
Mission debriefing meetings held in Lima
4.1.1 Meeting/co-ordination of the Consulting Team
A project and mission planning meeting was held in the Orangeville office of R. J. Burnside
International Limited in December 1998 between RJ Burnside International and Wayne Dunn &
Associates. The Canadian project members of Norm Looker, Andrew Isaak, Grant Bennington,
Wayne Dunn and Rodrigo Contreras met to review project progress and planning and to prepare
workplans and strategies for the initial project mission trip to Peru. Objectives of the mission were to
include set-up of accounting systems, bank account, office employees, training, agreements with
other organizations, identification of project opportunities, assist CONAP to begin networking with
other institutions and businesses and, if possible, establish an initial inter-indigenous partnership.
4.1.2 Workplan
Project Manager, Rui De Carvalho undertook a mission to Lima in May to update CONAP on the
status of the project, discuss changes to the project team (see Section 5 for detail on project team
changes) and to review the priorities and expectations for the remainder of the project. Based on this
mission and the discussions with CONAP and IDB, the project workplan was revised as follows:
Project Workplan
Task
Description of Tasks Who When
Update workplan Prepare an update to the
original workplan based
on discussions of
mission of May 18-20
Rui De Carvalho By June 1 and sent by
email to CONAP and
IDB by June 4
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Project Workplan
Task
Description of Tasks Who When
Complete report Prepare report on work
completed to date,
outline of work plan for
completion
Rui De Carvalho
Wayne Dunn
Andrew Isaak
(translator)
By Mon June 7
Draft of the
Procedures Manual
The “procedures
manual” requires
further definition; It
was agreed that a draft
outline would be
prepared to be
discussed with CONAP
during the June mission
Wayne Dunn
Andrew Isaak
The draft or outline
should be completed by
Mon June 14 so that it
can be sent to CONAP
ahead of the upcoming
mission
Draft strategic
operational plan
It is important for
CONAP to visualize the
concept of the
development of its
Strategic Operational
Plan (4 year term); it
was agreed that this is a
task that CONAP has to
do but that we would
prepare a draft model
for consideration and to
get the process started
Wayne Dunn The draft should be
completed by Mon June
14 so that it can be sent
to CONAP ahead of the
upcoming mission
The process of
development of
Strategic Operational
Plan should remain
open until after the
mission to Canada to
take advantage of
exposure of new ideas
Prepare for June 21
mission
It was agreed that it is
essential that this
mission be
appropriately planned
with the roles of all
participants well
defined ahead of time
Rui De Carvalho
Wayne Dunn
Ken Thomas
Andrew Isaak
The draft should be
completed by Mon June
14 so that it can be sent
to CONAP prior to the
start of mission
Draft entrepreneurial
concepts
A number of business
ideas will be put forth
for the Executive to
consider and discussion
during the upcoming
mission (should draw
upon on the information
learned from the visit to
the Regions)
Wayne Dunn
Ken Thomas
Should be completed
for presentation during
the mission;
It is being covered in
the current working
report.
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Project Workplan
Task
Description of Tasks Who When
Draft marketing
concepts
A sequel to the previous
task
Wayne Dunn
Ken Thomas
For presentation during
the June mission
Preliminary
identification of
products and services
This ties in with the
previous two items
Wayne Dunn
Ken Thomas
For presentation during
the June mission
Concepts in
identification of funds
Draft of preliminary
ideas for CONAP to
develop and follow up
in order to achieve long
term economic
sustainability
Wayne Dunn
Ken Thomas
For presentation during
the June mission
Submissions to
CONAP and IDB
As much of the above
should be submitted to
CONAP and IDB even
in a preliminary format
so that the intent of the
work is communicated
Rui De Carvalho/will
compile and make
submissions as
appropriate
Before and during the
June mission
Identify individuals to
receive training
It was agreed that four
and as many as eight
individuals (for
redundancy) should be
identified by CONAP
to receive training in
areas of
administration
accounting/finance
legal issues
strategic planning and
negotiations
CONAP ideally prior to the June
mission
June 21 mission Assumed that the full
week will be
allocated/draft agenda
to be prepared outlining
the week’s proposed
program
Morning of June 21
should be dedicated to
review the week’s
workplan and
expectations.
Rui De Carvalho
Wayne Dunn
Ken Thomas
Andrew Isaak (who will
remain in Lima - Oscar
Milliones to assist
Andrew with the long
term accommodation)
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Project Workplan
Task
Description of Tasks Who When
Extended Mission Preliminary list of
tasks:
- become familiar with
CONAP its people and
politics
- implement
administrative
procedures
- monitor
implementation of
financial systems
- develop web page
- provide computer
training
- develop procedures
manual
- acquisition of
additional equipment
- implement some
capacity at regional
centres
Andrew Isaak
support from Oscar
Milliones and from the
Team in Canada
through email and
telephone
tentative dates
June 21 to September
18
(with one trip home or
visitor from home)
Legal Framework
Analysis
Following the terms of
reference and the
background material
provided by Wayne
Dunn
recognition that if
appropriate resources
were available, the
analysis would be much
more extensive
Mercedes Manriquez sometime in August
after her schedule is
able to allocate the
appropriate time
The terms of reference
for the analysis will be
reviewed during the
upcoming mission and
revised as necessary
Workshop on
negotiation and
conflict resolution
CONAP’s objectives is
to have the workshop in
Peru to be scheduled to
coincide with a specific
negotiation
individuals
Wayne Dunn and Ken
Thomas assuming that
they may be assisting in
such negotiations
David Bennett as an
alternative
scheduled to be
determined
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Project Workplan
Task
Description of Tasks Who When
Mission by CONAP to
Canada
Planning of mission to
be carried out during
the June mission in
Lima
individuals to be
selected
A draft itinerary will be
available for discussion
Ken Thomas
Wayne Dunn
at the end of September
/ early October
Preparation of Final
Project Report
Final document on how
the objectives of the
project were achieved -
results based
management
Andrew Isaak
Rui De Carvalho
Wayne Dunn
November 99
Final Mission to
CONAP
closure to existing
project - initiation of
new ventures
To be determined December 99 or more
practically in January
2000.
4.1.3 Project Meetings
Norm Looker and Rodrigo Contreras attended the first meeting with CONAP. Cesar Sarasara
expressed his satisfaction with the agreements between R. J. Burnside International Limited and
CONAP. Mr. Sarasara also provided information on advancement of dialogues with resource
companies such as Shell, ARCO, Chevron, Philips and ICRAF. He also advised that CONAP would
be signing agreements with the University of Washington regarding biological research and a
religious order to support land demarcation and titling for the Marainor region. Working with Mr.
Sarasara, Mr. Looker and Mr. Contreras conducted a preliminary institutional capacity assessment of
CONAP to enable the consulting team to better prepare for subsequent missions.
A second meeting was held with CONAP on November 16, 1998. In attendance were Norm Looker,
R.J. Burnside International Limited (BIL), Cesar Sarasara (CONAP), Luis Katip (CONAP), Jorge
Dionisio (CONAP) and Mercedes Manriquez (independent). Contents of the meeting covered
concerns and questions by CONAP and more information regarding possible economic agreements:
CONAP expressed interest in having additional workshops associated with Indigenous
involvement and petroleum exploration and operation in Peru, following the successful workshop
held October 28-31, 1998 with Petro Peru. It was agreed that petroleum and other resource
development would be a priority area for the development of business opportunities.
CONAP has been receiving assistance from Canada’s Development & Peace to review laws
governing issues about petroleum exploration. Burnside will be contacting them to discuss
potential collaboration possibilities.
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A possible $45,000 demographics mapping project was discussed. The use of satellite remote
sensing using RADARSAT may be useful and will be investigated.
CONAP expressed concern that the large expectations for the project may be difficult to meet,
given the limited budget available to CONAP and the consulting team.
Training of two or three people in each of the communities in administration, accounting and
marketing has been recommended. The goal would be that those trained could pass on their skills
to others.
4.1.4 Selection of Accounting Firm
The selection of an accounting firm to assist CONAP with their financial activities is a priority of this
project. In keeping with the strategy of associating training with real projects and activities, the
consulting team utilized the selection of an accounting firm as a learning opportunity. The
consulting team assisted CONAP to establish a process for selecting the accounting firm. The
process includes:
Identify accounting and financial support needs (completed)
Based on needs, prepare a terms of reference accounting and financial support (completed)
Identify firms who have the capacity to undertake the work invite proposals (completed)
Establish an evaluation process for ranking proposals (completed)
Screen proposals and conduct meetings/interviews with top candidates (completed)
Evaluate results of meetings/interviews and either select a firm to negotiate a contract with, or
request additional information from select firms. (in progress)
This process is much slower and more time consuming, but it provides an excellent training and
capacity building opportunity for CONAP.
4.1.5 Training CONAP on Computer and Accounting Systems
The consulting team decided to use the purchase of computers as another hands-on opportunity to
further enhance CONAP’s institutional capacity. Rather than simply purchasing the computers and
installing them in CONAP’s offices, the team involved CONAP executive and staff in the entire
process including needs identification, supplier review and product selection.
During the January/February mission computer training was initiated for CONAP staff and
executives. Some already had a basic level of computer skills while others had little or no previous
exposure to computers. The training was tailored to focus on the skill/experience level of each
participant.
Prior to the purchase of CONAP’s new accounting system, the consulting team developed several
electronic forms (fax cover sheets, letterhead, meeting attendance recording sheets, etc.), installed
them on CONAP’s existing computer system and trained the staff in their use. Several formal and
numerous informal and orientation sessions were held in CONAP’s Lima offices during the
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January/February mission and during the March mission as well. Details of the computer training
include:
Provision of training sessions to Isaac, Rosaura, Fermin, Etty and Jacob in Internet use, e-
mail, Windows, Microsoft Word and Microsoft Excel. As well, the consulting team
developed macros to assist staff in automating key functions such as the production of a
customized fax cover sheet by clicking on a toolbar button. All of the staff was quick to learn
and now have a reasonable knowledge of computer skills. Isaac was extremely
knowledgeable and capable, assisting with computer training and able to help others on an
ongoing basis.
Hands-on computer orientation sessions were held in all regions visited (Iquitos, Lagunas,
Pucallpa and Yarinacocha). In many these sessions were open to the general public and
provided many participants with their first ever opportunity to see and touch a computer.
The consulting team and CONAP concluded that ongoing computer training would be required to
enable staff and executive to continue developing new skills and maximize the value of the computer
systems. A computer training school, CESCA, which is located close to the CONAP offices, have
courses available for continued skill upgrading of CONAP staff.
The provision of basic accounting/bookkeeping training was included in the terms of reference for
consulting firms. The team decided that this would provide the most meaningful opportunity to link
learning with actual tasks, providing a type of on-the-job training for CONAP. Accordingly, the
selected accounting will also be providing basic accounting training for CONAP staff.
4.1.6 Administrative Capacity and Support
The institutional assessment carried out during the initial meeting concluded that CONAP had very
little institutional and operational capacity. The organization’s capacity level was judged to have
deteriorated considerably since the review conducted during the project preparation activity in July
1996.
CONAP executive and the consulting team decided that, where possible, a majority of the work
conducted by the consulting team was focused to include a capacity development component. While
it was clear that this would add time and expense to nearly every activity, and may initially result in a
slower capacity development curve, everyone felt that it would tend to produce a more sustainable
operational capacity within the organization. Prior sections in this report have included detail on the
specifics of implementing this approach.
In March, after consultations with CONAP, the IDB Project Manager and the consulting team, it was
decided that additional focus needed to be placed on enhancing CONAP’s administrative and
operational capacity. The workplan was revised to enable one team member (Andrew Isaak) to
remain in Lima for an extended period to work directly with CONAP on this issue. As well, a second
team member is working on other projects in Lima and will be available on an ongoing basis. In
addition, CONAP will be hiring an Administrative Assistant who will act as a counterpart to Mr.
Isaak and ensure continuity with the work he undertakes.
4.1.7 Working with CONAP Regional Offices
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The initial mission included a visit to three regions (Iquitos, Lagunas and Pucallpa/Yarinacocha) by
five consulting team members. As noted previously, project orientations, business development and
negotiation workshops and computer orientation training were conducted in each region.
Additionally, the team members spent time identifying specific business and economic opportunities
(additional detail in Section 4.4) and evaluating and offering advice on specific projects and issues.
As a result of this mission, several new projects are being developed and financing sought.
The March mission also included a two-day mission to Pucallpa/Yarinacocha and additional training,
project identification and consultation work in that office. Mr. Isaak will include at least one trip to
the regions in the workplan for his extended presence.
4.1.8 Project Reports
The initial project report has been organized to include activities during the first two quarters of the
project. It is expected that one additional interim report will be produced and a final report covering
the entire project.
4.2 Task Set 2 – Development of Strategic Plan for Operations
The consulting team has begun working with CONAP to develop a strategic plan for operations.
Progress was made in outlining the need for clear definitions of the roles and responsibilities for
CONAP Directors, staff and volunteers. In keeping with the overall capacity building approach of the
project, these definitions will be developed in collaboration with CONAP and contained within the
Operations Manual. Additionally, various forms were prepared to assist operations (i.e. electronic fax
forms, meeting attendance sheets, etc.) which will become part of the Operations and Procedures
Manual.
A Terms of Reference and background discussion materials for the plan of operations and procedures
manual will be developed.
Some items that will be contained in strategic plan of operations will include:
executive functions and duties
staff functions and responsibilities
office operations guide (i.e. filing, project management, administrative procedures, etc.)
employee and project evaluations
organizational financial strategy.
Mr. Isaak and CONAP executive will complete finalization of the Strategic Plan of Operations during
July and August and staff. The remainder of the consulting team will participate in this process
electronically.
4.3 Task Set 3 – Administration and Financial Training
As noted previously, the accounting firm will supply accounting/bookkeeping and some financial
training. Significant advancement was made in outlining principles of good administration during the
January/February mission and again in the March mission. Some of these principles included:
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Office operations practices such as: office hours, telephone answering and call recording,
filing, record keeping [financial, meeting, etc], correspondence records, etc.
Business development and negotiations workshops in Lima and the regions also stressed
various financial and administrative operational issues.
Mr. Isaak, during his long-term mission (June-September) will conduct an administration workshop
with key CONAP executive and staff. The workshop will include people from the regions and will
focus on training to cover the material in the strategic plan of operations and the procedures manual.
The entire consulting team will be involved electronically in the design and development of the
workshop and materials.
4.4 Task Set 4 – Development of Commercial Activities
The identification and development of sustainable commercial activities has been a priority focus of
the entire project. They represent the focal point around which the training and capacity development
strategy has been developed. As well, sustainable commercial activities will provide the means for
CONAP and its member communities to achieve long-term, sustainable financial security.
In collaboration with CONAP, the project team has identified 13 commercial opportunities and is
actively assisting CONAP to begin development of the most promising. The following pages list the
various commercial and economic opportunities. Each opportunity is organized with the following
information:
Background information
Development to date – work that has been completed
Development strategy – a concise strategy of how the consulting team recommends CONAP
move to take advantage of the opportunity
Itemized workplan
Accomplishments and activities under Task Set 6 – Commercialization of Products and Services has
been included under this section.
It must be noted that at this stage these are only opportunities. Before any can be developed into full-
fledged businesses they must be investigated further, detailed business plans drawn up, financing
arranged and operating strategies implemented. It should also be noted that the Inter-American
Foundation has expressed strong interest in investing up to USD$500,000 into the execution of a well
researched business plan that will produce long term, sustainable economic benefit for CONAP. We
believe that several of the following opportunities could be developed to that stage.
4.4.1 Mini hydro electric power generation
Background There is an opportunity to utilize new mini hydro electric power generation
technology to supply power to many communities that are now serviced by
more expensive diesel fired electric power generation systems. This would
be profitable for the proponents and provide communities with cheaper and
more reliable electric power generation, thus stimulating the development of
other businesses.
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Development to
date
The consulting team has undertaken a technology search and identified
appropriate systems that have the potential to meet the technical
requirements for deployment in remote Peruvian communities. Lagunas has
been identified as a likely site for the development of the initial project and
the local government has indicated strong interest in the opportunity.
Additionally, a Canadian indigenous business with access to this technology
has been identified and has expressed strong interest in working with
CONAP to explore the feasibility of this opportunity. Meetings have been
arranged for CONAP’s upcoming Mission to Canada.
Development
Strategy
1. Establish a joint-venture with a firm that can provide the necessary
technical and financial capacity.
2. Identify a pilot community to develop the initial project in and then
identify a local partner(s) to work with. The local partner could be a
private business and/or the local government.
3. After sufficient progress is made on the initial project, identify
additional communities/opportunities, prioritize them and develop these
projects as appropriate.
Workplan 1. Establish a joint-venture relationship with a Canadian indigenous firm,
or other firm, which can bring the necessary technical and financial
resources to the partnership. A potential partner has already been
identified and meetings will be held during the upcoming Mission to
Canada.
2. Develop the terms of reference to conduct a pre-feasibility analysis of
this opportunity. A non-exhaustive list of items to be addressed in the
terms of reference includes:
regulatory issues to be addressed to allow for small scale, local
power generation
local market for electric power and potential for growth
electric power pricing structures, current and future
appropriateness of current technology and any technological
issues that need to be addressed
capital and operating cost estimates
preliminary financial viability
terms of reference for development of complete business plan
3. Secure financing and conduct the pre-feasibility study
4. Prepare a business plan and begin development of the business.
4.4.2 Camisea related opportunities
Background The Camisea project is one of the largest gas field development projects in
the world. Total development is estimated in the USD$2 billion plus range.
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The gas field is located in lands traditionally occupied by Indigenous peoples
of the Amazon region. The Peruvian government, with assistance from
Canada and other development agencies, is preparing a development process
for the project, after a Shell-Mobil joint venture, which spent several years
advancing the project, failed to meet contract requirements.
The development and operation of this project, which is located in an
environmentally and culturally sensitive area, will be extremely problematic
without the active and constructive involvement of local interests. This was
recognized by Shell-Mobil and will undoubtedly be recognized by
whomever continues with the project development. A local indigenous firm
that has the technical and financial capacity to provide goods and services to
this project would have a strategic advantage in securing contracts and other
opportunities.
Development to
date
CONAP was involved, on a discussion level, with Shell-Mobil during their
involvement in this project. However, the involvement did not reach the
level of discussing the provision of goods and services, as CONAP did not
have access to the necessary capacity at that time. CONAP has also been
involved, on a consultative basis, with a regulatory review process where
Peru is reviewing resource development regulations and examining the role,
if any, of local communities and indigenous peoples in the process. The
project has provided CONAP with nominal assistance in this process by
reviewing the document AYUDA MEMORIA (#001-99-MEM/BM/MG)
and assisting with a negotiation strategy.
The regulatory level is especially important in capturing opportunities in
resource development projects. In Saskatchewan, Canada the legislation,
which enables northern mining development, requires projects to negotiate a
surface land use agreement that provides a nominal level of preference to
northern and indigenous suppliers of goods, services and labour. This has
provided the basis from which a relatively uneducated, isolated and
marginalized group of 40,000 indigenous peoples (including the Lac La
Ronge Indian Band mentioned earlier in this report) have developed
businesses generating in excess of $100 million revenue per year.
The consulting team has had several meetings with the Lac La Ronge Indian
Band’s Kitsaki Development Corporation to discuss their possible interest in
working with CONAP on this opportunity. They also have access to
additional capacity more specific to oil and gas development (pipeline
construction, engineering, etc.) Kitsaki has expressed interest in meeting
with CONAP and exploring this opportunity further. Kitsaki has agreed to
host CONAP and arrange for visits to various business operations during
CONAP’s upcoming Mission to Canada.
Development
Strategy
1. Use a joint venture partner to provide CONAP with the technical and
financial resources to enable the provision of goods and services to the
Camisea project
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2. Intervene in the regulatory review process to attempt to create a
regulatory environment that will encourage local and indigenous
business involvement in resource development
3. Liaison regularly with those involved in the project to identify discrete
opportunities for the provision of goods and services to Camisea’s
development.
4. Meet with all potential bidders for the development of each aspect of the
Camisea project to discuss collaboration potential.
Workplan 1. Negotiate a joint venture with Kitsaki Development Corporation or
another suitable joint venture partner.
2. Secure the technical and financial resources to allow CONAP to
intervene effectively in the regulatory review process. Time is critical as
this process is ongoing and it may already be too late.
3. Undertake a thorough review of the Camisea project and identify
specific areas with contract and business potential (i.e. catering,
janitorial, transportation, engineering, environmental services, pipeline
construction, general construction, labour procurement, etc.)
4. Prioritize the opportunities identified and prepare a strategy for the most
promising.
5. Proactively meet with all potential bidders for all aspects of the Camisea
project to inform them of CONAP’s interest in the project and the range
of goods and services that could be provided. It is important that
CONAP be in a position to aggressively market itself during this phase.
CONAP’s support will be a substantial addition to any project bid and
CONAP must be in a position to negotiate downstream opportunities
[and possibly equity] in exchange for that support.
6. Follow up on specific opportunities as appropriate
4.4.3 De-mining opportunities
Background The Peru-Ecuador border area has been under dispute for over 100 years.
During this time armed conflict has erupted numerous times and the region
has seen the placing of vast quantities of anti-personnel mines. The recent
peace agreement brought an end to hostilities and called for major
investment in the development of the region.
The peace agreement, coupled with the Canadian led, global demining
initiative, has created substantial opportunities to provide de-mining services
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in the Peru-Ecuador border area.
Development to
date
Initial discussions with officials in Peru and Canada indicate that a joint
venture between CONAP and a Canadian indigenous firm with appropriate
technical capacity would be attractive to agencies financing de-mining
projects in the area.
A Canadian indigenous firm with experience in demining has been identified
and they have expressed strong interest in exploring a partnership with
CONAP. The Alberta based firm, Tsuu Tina, has undertaken demining
projects in Canada and Panama. They have agreed to meet with CONAP
during the Mission to Canada in Sept/Oct.
Canada’s role as a global leader in the demining process, coupled with the
Indigenous component of this project, provides a major competitive
advantage to a joint venture between CONAP and a Canadian indigenous
demining firm such as Tsuu Tina.
Development
Strategy
1. Use a Canadian Indigenous joint venture partner to provide CONAP
with the technical and financial resources to enable the successful
execution of demining contracts.
2. Use a high profile marketing strategy to ensure that all agencies that are
funding demining work in the Peru-Ecuador border area are aware of the
joint venture and its capacity.
3. Utilize a joint-venture strategy with Ecuadorian Indigenous Peoples to
facilitate access to opportunities on the Ecuador side of the border.
4. Identify discrete opportunities for the provision of demining services and
secure contracts to undertake the work.
Workplan 1. Negotiate a joint venture with Tsuu Tina or another suitable joint
venture partner.
2. Identify key funding/contracting sources for demining work in the Peru-
Ecuador border area.
3. Develop a high profile marketing strategy to reach key decision
makers/funders in the demining process.
4. Follow up directly with decision-makers and funding agencies to secure
demining contracts.
5. Parallel to the above steps, identify possible Ecuadorian partners to
enable strategic access to opportunities on the Ecuador side of the border
and follow a similar strategy/workplan as used for the Peru market.
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4.4.4 Tourism
Background The Peruvian Amazon and the adjoining Cuzco/Machu Pichu area offer
world-class tourism development potential. There has already been
considerable tourism development, especially in the Cuzco/Machu-Pichu
area; however, to date there has been little constructive involvement by
Indigenous peoples.
The visit to the regions during the January/February mission identified
numerous tourism development opportunities and high levels of local
interest in tourism in every region/community visited. Tourism development
is also a priority of the Peruvian government in their effort to attract new
private investment into the region.
Aside from the natural beauty and wonder of the Amazon, one of the
features that many tourists find most interesting are the Indigenous Peoples
living in the area. Eco-Cultural tourism is the fastest growing segment of the
global tourism industry.
Development to
date
As a result of earlier networking with the Miraflores Chamber of Commerce,
CONAP and the consulting team met with the owner/operator of the Puerto
Palmeras Tarapoto Resort. This resort is part of a chain of resorts operated
by the Corporacion Turistica Amazonica S.A. Discussions were held
covering tourism development in the region, benefits of increased
indigenous involvement and other issues. The meeting concluded with a
commitment to continue discussions with an aim to developing some
collaboration/joint-venture agreement between CONAP and the lodge.
Numerous projects and proposals have been developed for specific tourism
opportunities in Iquitos, Lagunas, Pucallpa and Yarinacocha. As well,
CONAP has identified tourism as a priority opportunity. However, much
remains to be done to bring most projects to the point where they would
become a viable business.
Consulting team member Ken Thomas is the Chairperson of the Canadian
Aboriginal Tourism Commission and has extensive experience in eco-
cultural tourism development. He has also involved another tourism expert,
Dr. George Kanahale of Hawaii, who will, at his own expense, visit Peru and
attend some of the tourism related meetings during the June mission.
Meetings have been arranged to enable CONAP to meet with Canadian
Indigenous tourism operators and officials involved in the promotion of
Indigenous eco-cultural tourism in Canada, during the upcoming Mission to
Canada.
Development
Strategy
Tourism, especially the potential of eco-cultural tourism, represents a major
opportunity for CONAP and its member communities. However, in order to
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maximize sustainable local benefits, a focused tourism development strategy
should be developed. This would help to bring focus to the various projects
and products being developed and facilitate increasing indigenous
involvement in the tourism industry of the region.
Workplan 1. During the June mission hold a tourism strategy session with CONAP to
discuss development of the tourism industry in the Peruvian Amazon
and how to maximize indigenous involvement/benefits. At this meeting,
recommend that an Indigenous Tourism Development Strategy for the
Peruvian Amazon be developed. The strategy could address both short-
term opportunities and long term development strategies and
opportunities.
2. If CONAP agrees with this strategy, work with them to prepare a terms
of reference and proposal for financing the work.
3. Secure financing and execute the project.
4. Meet with Canadian Indigenous tourism businesses and review the
Canadian Aboriginal Tourism development strategy during the
upcoming Mission to Canada.
4.4.5 Arts and crafts (Marotishobo)
Background Arts and crafts are produced throughout the region, however the Shipibo
peoples are generally regarded as the leading producers of Indigenous arts
and crafts in the Peruvian Amazon region. In 1975 Marotishobo was created
to assist Shipibo peoples with the commercialization of arts and crafts
products. Originally started by outside development agencies, the
organization is now very much a Shipibo institution. They own a large
warehouse/retail space in Yarinacocha and have arrangements with
producers throughout the Ucayalli region.
Over the twenty plus year history of the institution there have been many
changes in administration, funding and operational levels. Some years have
seen substantial orders from Europe and North America (generally years
when they have collaborated with an NGO who has received funding to
assist them) and other years, such as 1999, there has been little money and
resources. However, throughout its history, the Shipibo people have
remained committed to the organization. This has enabled it to survive the
difficult times.
The organization had built up a substantial cash reserve in the late 1980s.
Unfortunately the internal strife and terrorism in Peru reached Pucallpa and
they were forced to turn this money over to the terrorists.
Currently two factions are in dispute over who has administrative control of
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the organization and the organization has little in the way of operating
resources and administrative/marketing/operating capacity.
Despite the current problems, Marotishobo is an organization with a long
history and it has withstood serious problems in the past. We fully believe it
will weather the current dispute and emerge again to serve the needs of
Shipibo arts and crafts producers.
Development to
date
In the context of this project, several meetings have been held with the
organization and the two groups vying for control. The consulting team has
refused to become involved in the dispute in any way. However, at all
meetings the groups were urged to find their own solution to the
problems/disputes and find ways to work together.
Development
Strategy
Do nothing until the current dispute is settled. Intervening in any way and
on any side will likely exacerbate the situation and prohibit a sustainable
solution from evolving.
Workplan If/When the current dispute is settled, we would recommend that
Marotishobo be supported to develop a business plan that would help them
to develop a strategy to become financially self-sufficient and lessen
dependence on outside NGOs and external resources.
4.4.6 Transportation Services
Background Much of the transportation of goods in the region is done by water.
Anecdotal discussions with producers in Lagunas suggested that
transportation is unreliable and that crops have perished waiting for
transportation to markets in Iquitos and Tarapoto.
There is considerable interest in resource development (oil and gas, mining
and forestry) in the entire region. The Camisea project, the expected upturn
in oil and gas and mineral prices, coupled with the opening of new areas for
exploration in the Peru-Ecuador border area, will generate ongoing
exploration and, possibly, resource development activity in the region. This
activity will require transportation infrastructure and services.
The provision of transportation services has proven to be a profitable
strategy for many Canadian indigenous firms. Ranging from Arctic shipping
and barging, to commercial airlines to truck transportation, this sector has
been an attractive source of opportunity in Canada.
Development to
date
The consulting team has arranged for CONAP to meet with Canadian
Indigenous firms involved in the transportation industry during the
upcoming Mission to Canada.
Development
Strategy
If an opportunity exists in this sector, it will require a joint-venture partner
with the technical and financial capacity to work with CONAP to develop
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the business.
Workplan 1. Develop a terms of reference for a preliminary review of the
transportation industry in the Peruvian Amazon and note opportunities
that may be developed.
2. Meet with Canadian Indigenous firms involved in the transportation
industry during the upcoming Mission to Canada.
3. Further explore the most promising opportunities.
4.4.7 Development services in the border area
Background The Peru-Ecuador peace agreement has created significant international
interest in supporting development activities in the border areas, which have
been hard hit by many decades of conflict. The World Bank and the IDB
have each committed USD$500 million for development projects in the
region. As well, efforts are being made to secure commitments from other
donor countries and agencies. In addition, the enhanced security that is
provided by the Peace Agreement will stimulate private sector investment in
the region.
Indigenous Peoples, living relatively traditional lifestyles, are the main
population of this remote area. Any development activities undertaken will
need to be appreciative of their interests and requirements and, to be
successful should involve them directly.
Development to
date
The consulting team has met with IDB officials concerning Indigenous
involvement in the border area development process and the importance of
maximizing it.
Development
Strategy
CONAP, with its membership base in the region, understanding of local
issues and language is in an excellent position to add considerable value to
development programs and initiatives in the region. They would be
desirable as a partner for national and international agencies seeking to
deliver programs and projects in the area.
Workplan 1. Meet with various agencies (World Bank, IDB, CIDA, etc.) that will be
involved in financing development projects in the area to determine the
type and amount of projects expected to be executed.
2. Identify those projects and areas where CONAP’s expertise, knowledge
and network would add the most value.
3. Seek out institutions and NGOs that would be suitable partners to bid on
projects and/or develop proposals to undertake specific work in the
region.
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4. Follow-up as appropriate
4.4.8 Educational program delivery/International Indigenous University
Background Education and educational program delivery is a key requirement, and
component of development. Regular access to post-secondary education
will raise the educational level of CONAP’s membership, providing a key
building block for development. Development agencies and multi-lateral
institutions are dedicating financing to enhancing post-secondary education
opportunities.
The Saskatchewan Indian Federated College (SIFC)
(www.sifc.edu/index.html) has years of experience in providing training and
education to Canadian Indigenous Peoples. They also have Spanish
language capacity and several years of experience in delivering indigenous
development programs to Latin American Indigenous peoples. They have
recently launched a new department, the Indigenous Centre for International
Development (http://www.sifc.edu/int/start.htm). A major initiative of the
College is the creation of an International Indigenous University.
Development to
date
The consulting team has held several meetings with SIFC and has
established that there is a keen interest in working with CONAP on
individual program development and delivery and in integrating CONAP
into the proposed International Indigenous University.
Arrangements have been made to allow CONAP to meet with SIFC officials
and to tour the Saskatchewan facilities during the upcoming mission to
Canada.
Development
Strategy
Develop a joint-venture or collaborative agreement with SIFC or other
appropriate institution to allow CONAP to participate in the development
and delivery of education and training programs/infrastructure for
Indigenous Peoples in the Peruvian Amazon.
Workplan 1. Arrange for direct discussions between CONAP and SIFC to begin
exploring the possible extent of collaboration and cooperation between
the two institutions.
2. Follow-up on discussions as appropriate. This could include developing
a discussion paper outlining the potential and scope of a relationship.
3. Develop an agenda/itinerary for CONAP/SIFC meetings that will occur
during the upcoming Mission to Canada.
4. If the meetings are favourable, facilitate an SIFC mission to Peru to
explore the partnership further and begin development of a
partnership/collaboration plan of action.
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4.4.9 National Park Development
Background The World Bank has approved a USD$20 million project to develop four
national parks in Peru. One of the parks will be in the Peru-Ecuador border
area and will require the participation of local Indigenous Peoples
(Awarunas and the Bamdisas). The park development process will include a
range of socio-economic, environmental, demarcation, ecological and other
studies and the development of operation and development plans.
Development to
date
CONAP has met with the World Bank officials regarding this project and
there is a general agreement that CONAP will be contracted to provide some
of the services required for the feasibility study on the park.
Development
Strategy
Utilize joint-ventures to give CONAP the technical, administrative and
financial capacity to capture contract opportunities associated with the
development of all four parks. CONAP may wish to explore the possibility
of developing local partnerships to facilitate securing contracts with the three
parks that are not in CONAP’s main area.
Workplan 1. Meet with World Bank officials to identify the full range of studies and
work required to develop the park and determine the skills/capacity
required to undertake each of them.
2. Identify partners and collaborators who have the technical capacity and
are willing to work with CONAP to complete the various studies and
other contracts.
3. Maintain close communication links with World Bank and other
officials involved in the development of the parks, identifying specific
opportunities and following up with bids and proposals as required.
4.4.10 Geographical Information Systems and Remote Sensing
Background There are many unresolved land and demarcation issues in the Peru-Ecuador
border area, in other areas of the Peruvian Amazon and throughout Peru.
Developing digital data on land, traditional territories, demining, geographic
and geological structures and social patterns on the land will be of increasing
interest to governments, private industry, development interests and
Indigenous Peoples themselves (this is simply a modern extension of
Indigenous Peoples historic connection to and understanding of the land and
its resources).
Advances in geographic information systems (GIS) and remote sensing
technology are making this work more effective and less costly. It is
expected that increased use will be made of GIS and remote sensing
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technology by governments, private industry, development interests and
others involved in the Peruvian Amazon.
Development to
date
A Canadian indigenous firm that has appropriate GIS and remote sensing
technology has been identified and has confirmed an interest in working with
CONAP to explore the feasibility of establishing a business to provide
services to governments, development interests and the private sector in
Peru.
Meetings are being arranged to enable CONAP to meet with this firm and
see demonstrations of their technology during the upcoming mission to
Canada.
Development
Strategy
Secure access to necessary capacity through a joint-venture and explore the
feasibility of developing a business to offer GIS services in Peru.
Workplan 1. Conduct preliminary research on the market for GIS/remote sensing
services in Peru (to be completed by Mr. Isaak during July/August)
2. Meet with Canadian Indigenous firm(s) involved in GIS/remote sensing
businesses during the upcoming Mission to Canada.
3. Negotiate an agreement (with a Canadian Indigenous firm or another
appropriate firm) and explore the feasibility of launching a business to
provide GIS/remote sensing services to the Peruvian market.
4.4.11 Forestry & non-timber forest products
Background The traditional territory of CONAP’s member groups encompasses vast
reserves of marketable timber and non-timber forest resources. Although
development has been hampered by lack of transportation infrastructure and
access to markets, vast areas of forest have already been harvested with little
or no involvement of local Indigenous Peoples. The majority, (many would
say all) of this logging has been undertaken with little or no regard for the
long-term environmental impacts.
Small, regionalized attempts at developing and marketing non-timber forest
products have been undertaken throughout the region. These include Cat’s
claw, Jute, tea/berry products and many other products with commercial
potential. For the most part these efforts have been led by non-indigenous
firms and/or by international NGOs and have not been approached as a
business by Indigenous Peoples.
Development to
date
A meeting to explore the potential of collaborating with CONAP to harvest
and market Amazonian products was held with Mushu S.A. Productos
Naturales, a Peruvian company that produces teas and other natural products.
Several local Indigenous organizations and individuals are in various stages
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of developing proposals/projects for the production of Jute, Cat’s Claw and
other non-timber forest products. During the project preparation mission in
July 1996 the consultants toured a Cat’s Claw plantation that was being
developed in San Francisco, a Shipibo community outside of Yarinacocha.
The consulting team is not aware of any current commercial indigenous
involvement in traditional forest harvesting for timber and fiber.
Development
Strategy
The full range and extent of the opportunities represented by timber and non-
timber forest products are not fully known. The first step should be the
creation of (using a participatory based process) a sustainable forest usage
strategy and opportunity identification study for the entire region. Upon
completion of this strategy and study, CONAP would prioritize the
opportunities identified and, through joint-ventures or other means, assemble
the resources and capacity to develop the most promising opportunities
Workplan 1. Prepare a terms of reference for the participatory development of a
sustainable forest usage strategy and opportunity identification study.
2. Secure the financial and technical resources to complete the
strategy/study project, ensuring that adequate resources are available to
facilitate community and local participation in the process.
3. Prioritize opportunities identified and develop a strategy (Joint-Venture
or other) to develop the most promising opportunities.
4.4.12 Services to petroleum and mineral exploration
Background Peru has vast reserves of mineral and petroleum related deposits. Two world
class projects are currently entering into development, the Camisea gas field,
and the Antamina copper mine. The settlement of the Peru-Ecuador border
dispute has increased interest in exploration in northern Peru. As well, the
Peruvian government is actively promoting investment in mining and
petroleum exploration and development in Peru.
Much of the exploration and development activity will occur on or near
lands traditionally occupied by Indigenous Peoples. As discussed earlier,
local Indigenous peoples will play a significant role in the resource
development process and, if they have the necessary capacity, will have a
strategic advantage to provide goods and services to the industries.
Canadian Indigenous businesses have much experience in providing goods
and services to mineral and petroleum exploration and development.
Development to
date
A number of Canadian Indigenous businesses with expertise and experience
in providing goods services to mineral and petroleum exploration and
development projects have been identified. These businesses include
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transportation [marine, air, surface], catering, janitorial, environmental
management, environmental monitoring, security, pipeline construction,
logistics, GIS and remote sensing, labour procurement/management,
training, etc. Meetings have been held with many of these firms and most
have agreed to be available to meet with CONAP during the upcoming
mission to Canada.
Canadian resource companies that make use of indigenous suppliers have
been identified and one, CAMECO, has agreed to host part of the upcoming
Mission to Canada.
The provision of goods and services to resource development projects was a
major topic of discussion at business development seminars held throughout
the region during the January/February mission.
Several of the opportunities in this category are already being developed (see
other items in this section for details)
Development
Strategy
Identify the goods ands services that have the best potential for development
into profitable and sustainable businesses and use a joint-venture strategy to
build niche businesses.
Workplan 1. Continue development of the opportunity categories listed previously
(Camisea, GIS/remote sensing, transportation, environmental services,
etc.).
2. Develop a network of industry, government and development people
involved in resource exploration and development and communicate
CONAP’s interest in doing business in this sector.
3. Develop a terms of reference to undertake a systematic review of current
and expected opportunities.
4. Meet with Canadian indigenous firms involved in supplying goods and
services to resource exploration and development, and with Canadian
resource companies that use indigenous suppliers during the upcoming
Mission to Canada.
5. Systematically develop businesses (using a joint-venture strategy) in the
most promising sectors
4.4.13 Environmental Services
Background The Peruvian Amazon region is recognized as one of the most
environmentally sensitive areas on the planet. The region is also the focus of
increased private sector investment, much of which is in resource
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exploration and development activities. New environmental legislation and
a growing global commitment to environmental stewardship and
sustainability will create a expanding market for environmental
management, monitoring and other environmental services.
Currently non-indigenous firms provide all environmental services in Peru
(and foreign firms provide much of that). As noted earlier, local indigenous
interests have a strategic advantage in the provision of goods and services to
resource and development projects.
Development to
date
The consulting team has identified Canadian indigenous businesses with
capacity in environmental management and monitoring and an interest in
working with CONAP to explore and develop opportunities in Peru.
Meetings have been arranged to allow CONAP to meet with these firm(s)
during the upcoming mission to Canada.
Development
Strategy
Use a joint-venture strategy to develop the necessary technical, financial and
administrative capacity. Develop and implement a communications and
marketing strategy to ensure that the marketplace is aware of the capacity
and ability that CONAP has to provide environmental management and
monitoring services.
Workplan 1. Meet with Canadian indigenous firms during upcoming Mission to
Canada.
2. Negotiate a joint-venture agreement with a partner that can provide
CONAP with the necessary technical, financial and administrative
capacity to develop a business in this area.
3. Develop a business plan and secure financing for implementation.
4.4.14 Sectoral and Regional Opportunities
In addition to the above opportunities, a number of sectoral and local/regional level opportunities
have been identified and warrant additional investigation. With support from the entire consulting
team, Mr. Isaak and Mr. Milliones will work directly with CONAP during July and August to further
explore opportunities such as:
Rice Production The Canada/Peru fund (FONDU/Peru-Canada) has approved 600,000 Soles (approx.
USD$180,000) for a 200 ha. rice production project with the Awarunas. This project will start in
September 1999. The consulting team will assist by providing training for administration, accounting
and project management within this project. The organizer for the project will be coming to Lima for
the training. Mr. Isaak will work with CONAP and other development officials to explore
opportunities for additional rice development projects. Where feasible opportunities are available, the
consulting team will assist local project proponents to develop business plans and secure start-up
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financing. Key issues that will need to be addressed to establish viable rice production operations
include: market, transportation, processing, regulations, climate, production skills/knowledge needed,
capital and operating costs, administration and operation.
Jute Jute is an annually renewable natural product, which makes little demand on the world's scarce
energy resources. It is a major textile fiber and also used as a material for eco-friendly manufacturing
of many products. Jute production was successful in Lagunas, Iquitos and other areas in the past, but
only when receiving significant levels of subsidy through NGOs and/or government agencies. The
consulting team will explore this opportunity further and, where feasible, assist individuals and
organizations to identify and develop economically sustainable Jute production and marketing
operations. Key issues that will need to be addressed to establish viable Jute production operations
include: market, transportation, processing, regulations, climate, production skills/knowledge needed,
capital and operating costs, administration and operation.
Silkworm production
A local entrepreneur in Iquitos has conducted extensive research on local silkworm production. The
consulting team will assist the entrepreneur to explore this opportunity further and, if warranted,
attempt to secure start-up financing and necessary skills upgrading (production skills, administration
and management, etc.)
Fishing In Tipishca (a lake near Lagunas) there is a well-known and liked species of trout. This has a potential
for a market in Tarapoto (with about 300,000 inhabitants) and Yurimaguas. If an individual or
organization can be found who wishes to pursue this opportunity further, the consulting team will
assist them to explore the viability, develop a business plan and secure the necessary financial
resources and skill development support to operate it as a sustainable business.
Coffee production
There may be an opportunity to develop coffee production in the Selva Central (Satipo, Villa Rica).
The consulting team will explore this further and, if promising, an initial development strategy will be
advanced
In addition to the above sectoral opportunities, CONAP has identified regional opportunities. Rice
and banana production may be economically feasible in the Selva Norte-Occidente (Amazonas y
San Martin regions) now that a new road to Chiclayo has improved market access. In the Selva Sur
(Cuzco and Urubamba regions) CONAP has identified forestry, cattle ranching and tourism as
opportunities that need to be further explored. As noted above, coffee production has been identified
as a key opportunity for the Selva Central.
The consulting team will attempt to further define these regional opportunities and identify
entrepreneurs (organizations or individuals) who are committed to developing them into viable
business operations. When committed entrepreneurs are found, assistance will be provided to support
their efforts to develop a business plan and secure start-up resources (financial and training).
4.5 Task Set 5 – Development of Projects
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In addition to the commercial and economic projects detailed in the previous section, the consulting
team has been working with CONAP to identify and develop other more developmental projects and
to assist with ongoing projects CONAP is working on.
4.5.1 Development and Peace
CONAP has been receiving assistance from Development & Peace, a Canadian non-profit
organization. Development & Peace has been assisting in the review of laws that govern how
indigenous people will be treated with regard to petroleum exploration. This information needs to be
transmitted into a language that the indigenous people can understand. Their work would be very
complimentary to the work of this project’s legal analysis. The consulting team will follow-up with
Development and Peace directly to identify any potential opportunities for collaboration.
4.5.2 Inter-American Foundation Project
A project was developed and a proposal submitted to the Inter-American Foundation (IAF), a United
States government development agency. The project included capacity development, training, and
assistance for identifying and developing business and economic projects. IAF advised that they no
longer fund ‘soft’ development costs, but that they would be prepared to give priority consideration to
investing up to USD$500,000 in a specific business, after the feasibility has been confirmed and a
business plan prepared. It is expected that one of the commercial opportunities identified earlier will
be developed and submitted to IAF for consideration.
4.5.3 Neegan International Partnership
As noted previously, CONAP has entered into a cooperation/joint-venture agreement with Neegan
International. This project, which was facilitated by the consulting team, but entirely financed by
Neegan and CONAP, has the potential to produce numerous additional projects, some of which are
outlined in earlier sections.
4.5.4 Canadian International Development Agency
Neegan International is developing a project to secure additional financing to facilitate the next stages
of development of projects and opportunities discussed in section 4.4 and to implement the agreement
signed with CONAP in January 1999. Numerous meetings have been held with Canadian officials on
this regard. An initial proposal was submitted to Aboriginal Business Canada and to Mr. Blaine
Favel, Counsellor for International Indigenous Development at Canada’s Department of Foreign
Affairs and International Trade.
4.5.5 Foncodes
The consulting team and CONAP have met with FONCODES to discuss possible project scenarios.
Discussions concerning funding to begin developing a reliable water supply or infrastructure project
in Lagunas are currently underway. The consulting team will continue working with CONAP and
FONCODES to follow-up on these discussions and to identify new project opportunities.
4.5.6 Border area projects
As discussed earlier, settlement of the long-standing dispute on the Peru-Ecuador border has
stimulated international interest in development in the area. The World Bank, the IDB and other
development institutions are all planning major project spending in the area. The consulting team
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will assist CONAP to identify specific project opportunities and to follow-up with proposals as
appropriate.
4.5.7 Investment promotion mission and seminar
The consulting team is working with CONAP to identify financial resources to expand the scope of
the upcoming Mission to Canada. The current IDB project provides minimal funding for two people
from CONAP to travel to Canada to meet with potential Canadian indigenous partners. Canada is a
huge country and the current budget will only allow CONAP to visit one area of the country. The
preferred scope of the mission would include additional CONAP participants, resources to travel to at
least three regions of Canada and to Washington, where the IDB has expressed interest in hosting a
Round Table to promote CONAP’s business and economic development opportunities. The June
mission will further explore this opportunity and identify a development strategy.
4.6 Task Set 6 – Commercialization of Products and Services
The work and activities on this task set have been combined with Task Set 4 and have been
reported on in Section 4.4.
4.7 Task Set 7 – Legal Analysis
Events such as the United Nations Conference on Environment and Development (Rio
Summit/UNCED), the International Labour Organization’s adoption of Convention 169 on
Indigenous and Tribal Peoples and the UN Declaration on the Rights of Indigenous Peoples (Draft)
that was adopted by the United Nations Working Group on Indigenous Populations, are part of a
global trend towards addressing indigenous issues in national laws and international instruments.
Indigenous Peoples in Peru are affected by a number of national laws and international instruments
that aid or hinder their development aspirations.
In order to take full advantage of opportunities and rights afforded under existing national and
international instruments, and to be informed participants in national processes aimed at enhancing
existing legislation and, where appropriate, creating new legislation, it is necessary to have an
understanding of the existing national laws and international instruments that affect Indigenous
Peoples in Peru.
The consulting team has completed an initial identification and evaluation of international directives
and instruments affecting indigenous peoples and their development. Eight directives and
declarations were identified and reviewed. A terms of reference for further detailed analysis was
prepared and Ms. Mercedes Manriquez, a qualified Peruvian lawyer with extensive background in
Indigenous issues and a good working relationship with CONAP has been selected to complete the
analysis. In addition to Ms. Manriquez’s professional expertise, it was felt that retaining her to
complete the analysis would ensure that the information developed would remain available to
CONAP through her ongoing volunteer work with the organization. CONAP and the consulting team
concluded that engaging another lawyer would leave only a written version of the information
available, while with Ms. Manriquez the information would be available in the report, and it would
also come through in her other work with CONAP.
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The directives and declarations that Ms. Manriquez will explore further include:
4.7.1 World Bank: Operational Directive 4.30 – Involuntary Resettlement
Adopted in June 1990
Presently under review.
This directive was prepared for the guidance of World Bank staff. It describes policy and procedures
for managing involuntary resettlement and lays out consultation and compensation processes that
borrowers are expected to meet.
The objective of the policy is to ensure that the population displaced by a project is properly
consulted and receives adequate compensation and benefits.
4.7.2 World Bank: Operational Directive 4.20 – Indigenous Peoples
Adopted in 1982
Revised in 1991
Presently under revision
This directive describes Bank policies and procedures for projects that affect Indigenous Peoples. It
seeks to ensure that Indigenous Peoples benefit from projects on their lands, by setting out basic
definitions and policy guidelines for meaningful consultation. As well, it promotes respect for the
human rights, dignity and cultural uniqueness of the Indigenous Peoples concerned.
4.7.3 IDB: Community Consultation, Sustainable Development
Published - March 1996
This paper, authoured by two officials of the IDB, presents a conceptual framework for addressing
community consultations in the context of resource development. The paper discusses issues
regarding the benefits, risks, timing, costs, methods and techniques for community consultations as a
first step to establishing positive relationships and project guidelines.
The document analyses terminology such as consultations, participation, community, interested
parties and their interrelationships as it pertains to sustainable development. While this paper is not
currently a formal IDB policy, it does suggest future direction and is already used as an informal
guide by managers and others involved in project development.
4.7.4 IDB: Operational Directive 710 – Involuntary Resettlement
Approved by the Board of Directors July 22, 1998
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This policy applies to all IDB funded operations that require the involuntary physical displacement of
people. The objective is to avoid or minimize the need for involuntary resettlement and to minimize
the disruption to the livelihood of peoples living in the project’s area of influence. If resettlement is
unavoidable, the policy dictates that a plan is prepared to ensure that the affected people receive fair
and adequate compensation and rehabilitation.
4.7.5 ILO: Convention 169
Adopted in 1989
Ratified in thirteen countries (as of Dec. 1998)
Under consideration in many other
The International Labour Organization (ILO) is the oldest Specialized Agency of the United Nations.
ILO Conventions are adopted at the bi-annual ILO meeting. Ratification of the Conventions occurs at
the nation state level.
ILO Convention 169 is the only international instrument pertaining to human, social and economic
rights of indigenous and tribal peoples in independent countries. It revises a previous ILO
Convention 107 adopted in 1957.
Convention 169 recognizes Indigenous Peoples, their connection with the land, and promotes
consultation and meaningful participation in projects.
Convention 169 has been ratified in thirteen countries and is under consideration in many others.
Even countries that do not adopt Convention 169 often use it as a basis for constitutional reform to
incorporate the rights of Indigenous Peoples. Convention 169 has also been a guiding factor in the
development of policy by many other international institutions.
4.7.6 UNCED: Chapter 26, Agenda 21
Adopted at the United Nations Conference on Environment and Development – Rio de
Janeiro 1992
Chapter 26 recognizes the historical relationship of Indigenous Peoples with their land, and promotes
their involvement in activities on the lands they occupy. It also seeks to protect Indigenous Peoples’
lands from activities that are environmentally unsafe.
Agenda 21 is a moral declaration that is non-binding on its signatories. However, it is often used to
promote inclusion of Indigenous Peoples in sustainable development.
4.7.7 UN Declaration on the Rights of Indigenous Peoples (Draft)
Adopted by the United Nations Working Group on Indigenous Populations (an organ of the
UN Commission on Human Rights in 1993)
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Presently under consideration by the UN Commission on Human Rights (member states have
pledged its adoption within the UN Decade of the World’s Indigenous Peoples [1995-2004])
The declaration sets out a number of historic rights and principles of social and economic
development to guide relationships between nation states and Indigenous Peoples. Although the
document will be non-binding and is still in a draft state, it is presently used to promote principles of
social and economic development for Indigenous Peoples.
4.7.8 OAS Declaration on the Rights of Indigenous Peoples (Draft)
Draft document presented to OAS in 1997
Presently under consideration by the OAS
The Organization of American States (OAS) mandated the Inter-American Commission on Human
Rights to develop a declaration on the rights of Indigenous Peoples. Following a consultative phase
involving indigenous organizations, technical institutions and nation states, a draft document was
presented to the OAS for consideration in 1997. The document incorporates important principles
from other instruments such as the ILO Convention 169, Agenda 21 of the Rio Summit, the UN
Declaration and the World Bank directive. The declaration is expected to be used to guide interaction
between Indigenous Peoples and governments, business and other institutions that impact their lives.
4.7.9 National Laws
Ms. Manriquez will complete the identification and analysis of relevant national laws.
In addition to Ms. Manriquez’s work, the consulting team has already provided comments on the
document AYUDA MOMORIA (#001-99-MEM/BM/MG). This document is a framework for much
larger negotiations between the indigenous people and the petroleum companies. CONAP noted that
these comments were useful for CONAP during negotiations with the World Bank and the
government of Peru. Highlights of the analysis include:
there are no minimum standards for what must be contained in future agreements, nor what type
of compensation should be included
the document does not discuss what types of jobs could be provided, including training programs
for the indigenous people
there is no mention of revenue sharing for the exploitation of resources on indigenous land
CONAP should request a moratorium on any development for at least one year to allow time to
have proper negotiations and request appropriate funding from the Peruvian government
resolution of conflicts in the agreement is weak and it is suggested that a very detailed dispute
resolution process be developed
this document is a positive step to include the indigenous people in these negotiations; however,
training and funding must be included for this to make them an equal partner.
4.8 Task Set 8 – Mission to Canada
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The consulting team completed preliminary planning for the upcoming mission to Canada and has
identified a supplemental set of activities that, if they can be financed, would add considerable value
to CONAP’s experience.
The core activities, which will occur in Saskatchewan, a province in central Canada, are:
4.8.1 Meetings with Indigenous businesses
Meetings have been arranged for CONAP to visit indigenous businesses and meet with leaders and
managers in a number of areas including:
Transportation
De-mining
Catering
Security
Wild Rice processing and marketing
Tourism
Mini-hydro
Underground mining
Mining services
Environmental services
Manufacturing
CONAP will have an opportunity to discuss how the businesses were established, particular
challenges and constraints, and other relevant issues. As well, time will be made available for direct
discussions that could lead to the development of business partnership/joint-venture arrangements.
4.8.2 Meetings with Indigenous Institutions
Arrangements have been made to enable CONAP to meet with officials and executives from various
indigenous institutions and political organizations. This will provide an opportunity for the sharing of
experiences and insights. As well, CONAP will meet with the Chief of the Lac La Ronge Indian
Band to discuss the twinning of Lac La Ronge and Lagunas. Other institutions and organizations that
CONAP will meet with include:
Tribal Councils
Development Corporations
Band Governments
Federation of Saskatchewan Indian Nations
Saskatchewan Indian Federated College
Indigenous controlled/operated health facilities
Indigenous controlled/operated social service facilities.
4.8.3 Meetings with resource companies
In addition to meeting with Indigenous businesses, institutions and organizations, at least one meeting
will be held with a major resource company that has been very successful in working with Indigenous
Peoples. CAMECO, a major Canadian mining company will host CONAP and discuss how
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CAMECO’s operations employ over 600 Indigenous Peoples and purchase over $100 million/year in
goods and services from Indigenous Peoples. The consulting team anticipates setting up additional
meetings with resource companies as well.
4.8.4 Meetings with Federal and Provincial government officials
CONAP will also be meeting with officials from various departments of the Saskatchewan and
Canadian governments. This will provide an opportunity to discuss the role the government has
played in indigenous development in Canada and may identify opportunities for cooperation between
the Peruvian and Canadian/Saskatchewan governments on indigenous development. Consideration is
being given to inviting a representative of the Peruvian government to accompany CONAP on the
entire mission. Costs for this will need to be financed outside of this project.
4.8.5 Other meetings and activities
Other meetings and activities will include tours of local communities, interviews and press
conferences with local media and other events.
4.8.6 Expanding the Mission
As noted earlier in this report, the consulting team is working with CONAP to identify resources to
expand the mission to include additional CONAP representation, visit additional locations in Canada
and include a round table at the IDB in Washington.
Additional Canadian locations that would be considered are:
Alberta – visit the operations of Tsuu Tina demining operation and also meet with Indigenous
businesses that are successfully supplying goods and services to petroleum exploration and
development.
Nunavut – meet with the Inuit leaders of Canada’s newest territory and largest land claim to discuss
political, economic and development issues.
Ottawa and Southern Ontario – meet with various national indigenous organizations and leaders
and with additional federal officials and with indigenous businesses located in Canada’s capital
region.
Vancouver area – meet with a successful indigenous pipeline construction company and with the
companies that awarded their initial contracts.
4.9 Task Set 9 – Signing of Cooperation Agreements
The consulting team has worked with CONAP to build on CONAP’s existing cooperation agreements
and to identify and develop new opportunities for strategic cooperation and collaboration.
4.9.1 University of Washington
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CONAP has a long-standing relationship and agreement(s) with the University of Washington. The
consulting team is working with CONAP to identify opportunities for building on this established
relationship.
4.9.2 Neegan International
On February 5, 1999, at a high profile press conference at the Canadian Embassy in Lima, CONAP
signed a Memorandum of Agreement with Neegan International, an Indigenous owned business from
Canada, to collaborate in enabling Indigenous peoples to participate productively in the Peruvian
economy.
The agreement, which was officially witnessed by the Canadian Ambassador, will focus on three key
areas:
The creation and execution of a comprehensive economic development strategy for CONAP
and its member regions. The strategy will concentrate on enabling Indigenous participation in
key sectors of the Peruvian economy and will focus on business and economic opportunities for
Peruvian indigenous peoples at the local, regional and national levels. Additionally, the strategy
will identify specific business opportunities, prioritizing three with the potential for
commercialization as joint ventures with Canadian indigenous businesses. Where appropriate,
this strategy will build on the successful experiences and best practices of Canadian indigenous
businesses.
Facilitating linkages and sharing of experiences between CONAP, its member communities,
and Canadian Indigenous organizations involved in social, cultural, educational and
business development.
Encouraging the governments of Peru and Canada to collaborate and share experience on
indigenous business and economic development.
This agreement has already produced many of the commercial and other project opportunities
identified in earlier sections of this report.
4.9.3 Anecomsa
Anecomsa is an indigenous organization of the Peruvian highland (Andean) region. Anecomsa was
also the recipient of technical assistance financial support from the IDB. The current CONAP/IDB
project was designed and developed at the same time and by the same team that designed and
developed the CONAP project. CONAP has signed an agreement with Anecomsa to, as much as
practically possible, collaborate in the execution of their respective projects.
4.9.4 Lagunas – Lac La Ronge twinning agreement
During the visit to Lagunas in the January/February mission, community leaders asked the consulting
team and Neegan to assist them to identify a Canadian Indigenous community that would be a
suitable twinning partner. The consulting team researched prospective Canadian communities and
identified the Lac La Ronge Band as an ideal partner. Lac La Ronge Band communities live on
isolated waterways with limited transportation infrastructure and, until recently, lived a pre-
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dominantly subsistence level lifestyle. However, as noted in other sections, Lac La Ronge has
recently utilized a joint venture strategy to develop $40 million/year in business operations.
Neegan has met with the Chief of the Lac La Ronge Band and they are interested in pursuing a
twinning agreement with Lagunas. A visit to Lac La Ronge communities will be included in the
upcoming mission and meetings have been arranged to allow direct discussion between the two
parties.
4.9.5 International Indigenous University/SIFC
As noted earlier, the Saskatchewan Indian Federated College has begun taking steps to establish an
International Indigenous University. The consulting team has held meetings with key officials in the
institution to discuss how CONAP and the Indigenous Peoples of Peru may be included in this
process. SIFC is very open to finding mechanisms to enable this and will be meeting with CONAP
during the upcoming mission to discuss how a cooperation agreement/joint-venture may be
structured.
4.9.6 Miraflores Chamber of Commerce
The Miraflores Chamber of Commerce has expressed interest in building a closer relationship with
CONAP. The consulting team will work with CONAP to further develop this potential cooperation
agreement.
4.9.7 Inter-Indigenous Partnerships
As noted earlier, inter-indigenous partnerships and cooperation agreements with Canadian indigenous
businesses can help CONAP acquire sustainable technical and financial capacity to apply towards
development opportunities and aspirations. Section 4.4 details a number of potential cooperation
agreements in this area and the work that has been undertaken to develop them.
4.10 Task Set 10 – Final Report
No work on the final report has been undertaken to date.
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5 CHANGES TO CONSULTING TEAM
Based on the progress of the project over the first four months, changes to the workplan/consulting
team were proposed to CONAP and the IDB. The purpose of these changes, which were accepted by
both parties, is to provide a stronger presence in Peru while maximizing the resources available to
assist CONAP. Summaries of the proposed changes to the consulting team are as follows:
New Project Manager - As a result of Norman Looker leaving R. J. Burnside International, Mr.
Rui De Carvalho has been assigned the role of project manager. Mr. De Carvalho has
considerable project management experience both in Canada and internationally.
Associate Project Manager Position – Consulting team member Wayne Dunn’s role has been
expanded and he will assume responsibility as the Associate Project Manager. This will enable
Mr. Dunn to more fully apply his considerable expertise in indigenous business development and
inter-indigenous partnerships to the goals and objectives of the project.
New Project Team Member - Mr. Ken Thomas of Neegan International Limited, has joined the
project team to assist CONAP with partnerships, capacity development, and business and
economic development. Mr. Thomas is one of the leading indigenous business people in Canada
and has assisted thousands of indigenous businesses with development, operation and financing
issues. He has also assisted Canada with indigenous business and development policy.
Extended Consulting Team Presence in Peru – Consulting team member, Mr. Andrew Isaak
will be working in the CONAP office in Lima, Peru for a period of approximately three months.
Mr. Isaak brings a broad range of experience and capabilities to the project. Mr. Isaak’s role will
be to assist CONAP with the coordination of the project, follow-up on projects and opportunities
identified earlier in this report and to assist with the daily operation of the CONAP offices. As
well, Mr. Milliones, who lives in Lima, will be available on a regular basis to provide ongoing
support and assistance to CONAP.
Anyone wishing additional information on this report or the activities described herein, should contact:
Sr. César Sarasara A.
President
CONAP
Brigaidier Pumacahua 974
Jesus Maria, Lima
Peru
Tel/fax +511 423 8391
[email protected]
Wayne Dunn
Wayne Dunn & Associates Ltd.
2457 Bakerview Rod
Mill Bay, BC VOR 2P0
CANADA
Tel: +1-250-743-7619
Fax: +1-250-743-7659
[email protected]
www.waynedunn.com
Mr. Rui F. de Carvalho
R.J. Burnside International Limited
15 Townline Road
Orangeville, ON L9W 3R4
Canada
Tel: +1-519-941-5331
Fax: +1519-941-8120
[email protected]
www.rjburnside.com