Posted on March, 17 2003

San José, Costa Rica - An innovative project that will engage downstream water users in upstream forest conservation has received a US$70,000 award from one of the world’s leading reinsurers, Swiss RE (Swiss Reinsurance Company). The ceremony for the International RE-Source Award for Sustainable Watershed Management 2002 was held today in Rüschlikon, Switzerland. The Sierra de las Minas project, which is led by WWF and the Guatemalan Foundation Defensores de la Naturaleza, was selected from a total of 105 submissions from around the globe. An innovative aspect of the progect is the involvement of industrial water users in a Payment for Environmental Services (PES) model. The project will establish a “Water Fund” to link social, economic, and institutional aspects of conservation in partnership with the large industrial water users of the region, such as Pepsi, Coke, and Rum Zapaneca, a Guatemalan rum distillery. Water from the Sierra de las Minas Biosphere Reserve is used downstream for household consumption, hydroelectric energy, bottling of beverages, agriculture, cattle, tourism, recreation, and commerce. Although all residents depend on water, the major user of sub-surface water is the bottling industry and the major users of surface water are hydroelectric and irrigation industries. “Despite this dependence of users upon Sierra de las Mina’s water, there are currently no financial mechanisms to channel user fees back to the managers who protect the reserve and its water supply. Water users and governmental officials have noticed a gradual decrease in water quality and quantity, and many recognise that the current system is not sustainable,” explained Steve Gretzinger, Forest Coordinator for WWF Central America. With the Water Fund project, a payment and compensation mechanism will be implemented to guarantee the sustainability of the freshwater resource provided by the Sierra de las Minas Biosphere Reserve, thus satisfying the demands of different social actors. “To guarantee the success of this initiative — with components including environmental education, establishment of a Water Fund, development of a payment and compensation mechanism, and a Water Monitoring Plan — it will be essential to work in close coordination with key players such as the bottling and hydro-electric industry, and local governments,” added Steve Gretzinger. With the US$70,000 award to the Sierra de las Minas Biosphere Reserve Project, Swiss Re reinforces its commitment to develop effective framework conditions and best water-management practices focusing on freshwater sources: "back to the source" — or "RE-Source". The award is supported by an international group of patrons, including Claude Martin, Director General, WWF International; Chedli Fezzani, Executive Secretary, the Sahara and Sahel Observatory (OSS); Walter Fust, Director General, Swiss Agency for Development and Cooperation; and Jonathan Lash, President, World Resources Institute (WRI). Steve Gretzinger from WWF Central America and Oscar Núñez from Defensores de la Naturaleza received the award. Government authorities, representatives from the bottling, irrigation and hydroelectric industry, and members of the judging panel also attended the ceremony. The 240,000 ha Sierra de las Minas Biosphere Reserve rises from slightly above sea level to over 10,000 feet and is one of the most spectacular and species rich mountain ranges in Central America. As the oldest mountain range in the region, the reserve harbors: • 70 per cent of all birds, mammals and reptiles registered in Guatemala and Belize • a large variety of ecosystems including dry, conifer, and tropical cloud forests • habitat for threatened species such as the quetzal, tapir, howler monkey, jaguar, puma, and harpy eagle • 63 permanent rivers, which originate in the reserve and provide water for communities and industrial water users in the populated Polochic and Motagua valleys. WWF Central America has collaborated with Defensores de la Naturaleza on the management of reserve since 1990. Initially, WWF helped establish the protected area and initiated traditional protected area management activities. In the late 1990’s, WWF’s focus evolved to the resolution of land tenure conflicts, promoting gender issues, and developing economic alternatives based on sustainable natural resource use. “From this work it became clear that to ensure stable financing for the long term of the reserve, it would be necessary to involve downstream users of water originating in the SdM in upstream conservation efforts,” Steve Gretzinger said. The Award Ceremony was accompanied by a panel discussion on the subject of water. Claude Martin, Director General of WWF International, and Bertrand Piccard, Captain of the Breitling Orbiter 3 and the first man to circumnavigate the globe non-stop in a balloon, broached the topic of "To whom does water belong?". For further information: Cinthya Flores Communications Officer, WWF Central America Tel: +506 2535061 E-mail: cflores@wwfca.org Monica Echeverría Communications Coordinator, WWF Latin America and Caribbean Programme Tel: +1 202 778 9626 E-mail: Monica.Echeverria@WWFUS.org