Concession Arrangement for Protected Areas (Forestry Management)
Concession Arrangement for Protected Areas (Forestry Management)
Business Model Description
There exists a national protected areas concessions framework aimed at facilitating investment within Belize's Protected Areas (PAs). This framework allows for investors to work closely with Belize's national conservation trust fund - The Protected Areas Conservation Trust - to secure concessions within Belize's protected areas system that can provide at-market or above-market returns for investors but also mobilize resources for greater conservation and protection of the Chiquibul-Mountain Pine Ridge-Caracol Complex.
Expected Impact
Generate revenues for reinvestment in forests for greater effectiveness in biodiversity conservation and protection.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Belize: Chiquibul National Park
Sector Classification
Renewable Resources and Alternative Energy
It was identfied that fostering sustainable production, distribution and use of energy as a critical resource needed to achieve the overarching national goals of economic growth and long-term prosperity, security, poverty reduction and social equity.
Forestry and Paper
Belize's Protected Areas provide several important ecosystem benefits and services. At a global level, the Convention on Biological Diversity (CBD) recognizes Protected Areas (PAs) as an integral part of global efforts to conserve and use biological resources sustainably. Crowding-in sustainable private sector investment can increase conservation and protection effectiveness.Terrestrial PAs in Belize provide direct economic benefits through tourism and the provision of natural resources such as lumber. However, if left unchecked these activities can have profound negative impacts on Belize's biodiversity.
Pipeline Opportunity
Concession Arrangement for Protected Areas (Forestry Management)
There exists a national protected areas concessions framework aimed at facilitating investment within Belize's Protected Areas (PAs). This framework allows for investors to work closely with Belize's national conservation trust fund - The Protected Areas Conservation Trust - to secure concessions within Belize's protected areas system that can provide at-market or above-market returns for investors but also mobilize resources for greater conservation and protection of the Chiquibul-Mountain Pine Ridge-Caracol Complex.
Business Case
Market Size and Environment
500,000 overnight visitors in 2019
Overnight arrivals in 2019 amounted to more than 500,000 visitors, the highest on record in Belize. The global health crisis has impacted tourism significantly but early indications are that tourism will reach 2019 levels by 2022 and in light health concerns, eco-centered hospitality services are likely to be popular with visitors.
Indicative Return
> 25%
Studies for private forestry concessions (focused on both tourism services and forestry)- Indicative IRR as per Ukuku Lodge & Spa Business Plan and Feasibility Analysis of more than 25%
Investment Timeframe
Long Term (10+ years)
Project development will be time intensive given the ecological considerations that must be taken into account.
Ticket Size
USD 1 million - USD 10 million
Market Risks & Scale Obstacles
Business - Business Model Unproven
Market - Highly Regulated
Impact Case
Sustainable Development Need
Public expenditure on conservation is minimal. Belize's Biodiversity Finance Plan identified the need for BZ $49.8MN in financing for the priority National Biodiversity Strategies and Action Plans (NBSAP) target, which focuses mainly on protection and reducing pressures, and ensuring compliance with Global Aichi Targets.
Gender & Marginalisation
Project can provide employment for rural surrounding communities which are typically underserved in the area
Expected Development Outcome
Investments that can generate revenues for reinvestment in the National Protected Areas System (NPAS) can allow for greater effectiveness in biodiversity conservation and protection.
Gender & Marginalisation
A concession can ensure that income accrues directly to local women by requiring concessionaires to buy certain goods and services—especially those that fit local cultural patterns and capabilities—from women.
Primary SDGs addressed
8.9.1 Tourism direct GDP as a proportion of total GDP and in growth rate
37.3% of GDP in 2019
15.a.1 (a) Official development assistance on conservation and sustainable use of biodiversity; and (b) revenue generated and finance mobilized from biodiversity-relevant economic instruments
The BER concluded an aggregate of over BZD $300M attributed as biodiversity expenditures for the period of 2012 – 2017 (50 MN per year)
B) Target of 10 MN yearly from biodiversity-relevant economic instruments
Secondary SDGs addressed
Directly impacted stakeholders
People
Public sector
Outcome Risks
Environmental concerns to the area if regulations are not implemented and managed properly.
Impact Risks
Stakeholder participation risk - Indigenous communities can be reluctant to allow for private sector investments within their communities.
Impact Classification
What
The outcome is likely to be positive because this investment could reforest and help preserve biodiversity
Who
Surrounding communities will be beneficiaries of added investment through employment opportunities.
Risk
The risk is low because there is already an established concessions framework for Protected Areas in place
Impact Thesis
Generate revenues for reinvestment in forests for greater effectiveness in biodiversity conservation and protection.
Enabling Environment
Policy Environment
As of 2015, 103 protected areas within the National Protected Areas System (NPAS) - 52 under the Forest Department with a further 9 Marine Reserves and 12 spawning aggregation sites (many of which overlap existing Marine Reserves) being administered by the Fisheries Department. The forest reserves are established on national lands by the minister responsible for forests on the advice of the Forest Department to protect forests for management of timber extraction and/or the conservation of soils, watersheds and wildlife resources.
Financial Environment
Concession framework exists in draft-form. Long-term concession agreement would allow for revenue sharing that can benefit conservation and protection within the complex.
Regulatory Environment
PACT is authorized by the Government of Belize (GOB) to approve concessions within PAs. Activities must be evaluated to have low or non-harmful impacts on PAs by the Ministry of Sustainable Development, Climate Change and Disaster Risk Management (in the case of terrestrial PAs) and the Ministry of Blue Economy and Civil Aviation (in the case of marine PAs).
Marketplace Participants
Private Sector
Private sector: Project developers/ private investors - Can include hotel/hospitality franchises or joint-ventures that can mobilize the needed capital to secure a concession agreement and develop the project.
Government
Ministry of Sustainable Development, Climate Change and Disaster Risk Management - Lead ministry for terrestrial protected areas. Houses Forest Department which is sole manager/ co-manager within the Chiquibul-Mountain Pine Ridge area.
Target Locations
Belize: Chiquibul National Park
References
- (1) The Belize National Protected Areas System Plan (2005)
- (2) National Protected Areas System (2015)
- (3) Belize Tourism Board. (2019). Visitor Expenditure, Motivation and Satisfaction (VEMS) Survey "4) Government of Belize & Inter-American Development Bank. (2021). Sustainable Development Plan: Chiquibul-Mountain Pine Ridge-Caracol Complex " " 5) PACT. (2020). Annual Report 2019 - 2020: PACT Corporate Governance Statement 2020. Retrieved from https://www.pactbelize.org/publications/?mdocs-cat=mdocs-cat-6 " " 6) United Nations Development Program. (2014). Tourism Concessions in Protected Natural Areas: Guidelines for Managers. Retrieved from https://www.cbd.int/financial/privatesector/undp-tourismconcessions.pdf " "7) United States Agency for International Development. (n.d.). Tourism Investment and Finance: Accessing Sustainable Funding and Social Impact Capital. Retrieved from https://www.usaid.gov/sites/default/files/documents/2151/InvestmentWorkbook_4%5B2%5D.pdf " "8) World Travel and Tourism Council. (2018). Travel & Tourism Economic Impact 2018: Belize. Retrieved from https://www.prosperityaid.com/wp-content/uploads/2018/08/Belize-2018.pdf "