LAC-IEE-10-26 ETD

PAGE

LAC-IEE-10-26

ENVIRONMENTAL THRESHOLD DECISION

Activity Location:

Peru Activity Title:

Peru and Andean Trade Capacity Building Activity Number:

527-0423 Life-of-Activity Funding:

Life-of-Activity:

01 September 2009 – 30 September 2014 IEE prepared by:

Victor Merino; MEO/USAID Peru Reference ETDs and EA:

LAC- IEE-09-61

Recommended Threshold Decision:

Categorical Exclusion

Negative Determination with Conditions Bureau Threshold Decision:

Categorical Exclusion

Negative Determination with Conditions

Comments:

This Environmental Threshold Decision amends LAC-IEE-09-61 to add Results 9, 10 and 11 to the Peru and Andean Trade Capacity Building activity extending the life-of-activity through FY 2014.

A Categorical Exclusion is issued to Result 9 (Institutional, technical, and legal aspects of Peru’s forest sector governance system are strengthened) of the Peru and Andean Trade Capacity Building Activity, pursuant to 22 CFR 216.2(c)(2):

(i) Education, Technical Assistance or Training programs except to the extent such programs include activities directly affecting the environment (such as construction of facilities, etc.);

(iii) Analysis, studies, academic or research workshops and meetings;

(v) Document and information transfers;

(xiv) Studies, projects or programs intended to develop the capability of recipient countries to engage in development planning, except to the extent designed to result in activities directly affecting the environment (such as construction of facilities, etc.)

A Negative Determination with Conditions is issued to Result 10 (Private investment in conservation increased to provide opportunities for sustainable management of resources and improved livelihoods) and Result 11 (Environmental management across selected sectors improved) activities.

Conditions include:

· For Result 10 activities, the implementing partner will use the recommended mitigation measures of the Forestry and Biodiversity Multi-Project Programmatic Environmental Assessment (F/BEA approved through LAC-EA-05-04) in workshops and technical assistance.

· For demonstration projects under Result 11, the implementing partner will prepare an environmental analysis and mitigation and monitoring plan based on the F/BEA and appropriate mitigation procedures from the Government of Peru. These analyses and plans will be approved by the COTR/AOTR and MEO before the demonstration projects are implemented.

· For both Results 10 and 11, the implementing partners will develop also conduct an environmental analysis and a mitigation and monitoring plan to apply appropriate sections of the USAID LAC Environmental Guidelines for Development Activities in Latin America and the Caribbean (i.e., Chapter 4, Environmental Issues and Best Practices for Micro-finance Institutions and Micro and Small-Scale Enterprises) to their activities. These analyses and plans will be approved by the COTR/AOTR and MEO before these activities can be implemented. The LAC Environmental Guidelines are available at the following link in English: http://www.usaid.gov/locations/latin_america_caribbean/environment/docs/epiq.html.

Responsibilities:

· Each activity manager or Contracting/Agreement Officer Technical Representative (COTR/AOTR) is responsible for making sure environmental conditions are met (ADS 204.3.4). In addition, COTR/AOTRs are responsible for ensuring that appropriate environmental guidelines are followed, mitigation measures in the IEE are funded and implemented, and that adequate monitoring and evaluation protocols are in place to ensure implementation of mitigation measures.

· It is the responsibility of the Strategic Objective (SO) Team to ensure that environmental compliance language from the ETD is added to procurement and obligating documents, such as activity-related Strategic Objective Grant Agreements (SOAGs) and Modified Acquisition and Assistance Request Documents (MAARDs).

· The Mission Environmental Officer will conduct spot checks to ensure that conditions in the IEE and this ETD are met. These evaluations will review whether guidelines are properly used to implement activities under this ETD in an environmentally sound and sustainable manner according to USAID and applicable U.S. Government policies and regulations.

· The implementing contractor or partner will ensure that all activities conducted under this instrument comply with this ETD. Also, through its regular reporting requirements, a section on environmental compliance (e.g. mitigation monitoring results) will be included.

Amendments

· Amendments to Initial Environmental Examinations (IEE) shall be submitted for LAC Bureau Environmental Officer (BEO) approval for any activities not specifically covered in the IEE, which include:

· Funding level increase beyond ETD amount,

· Time period extension beyond ETD dates (even for no cost extension), or

· A change in the scope of work, such as the use of pesticides or activities subject to Foreign Assistance Act sections 118 and 119 (e.g. procurement of logging equipment), among others.

· Amendments to IEEs include Environmental Assessments (EA or PEA) and approval of these documents by the LAC BEO could require an annual evaluation for environmental compliance.

Date

Victor H. Bullen

Bureau Environmental Officer

Bureau for Latin America & the Caribbean

Copy to:

Andrew Herscowitz, Acting Mission Director, USAID/Peru

Victor Merino, EGE, MEO

Miriam Choy, PDP Copy to:

Bruce Bayle, REA, USAID/Colombia

Copy to:

Karen Anderson, Mike Karbeling, David Johnston, LAC/SA

Copy to:

IEE File

Attachments:

· Initial Environmental Examination amendment

AMENDED INITIAL ENVIRONMENTAL EXAMINATIONPRIVATE

Activity Location:

Peru and other Andean countries (Bolivia, Colombia, Ecuador) Activity Title:

Peru and Andean Trade Capacity Building Activity Number:

527-0423

Life of Activity Funding:

Life of Activity:

September 1, 2009 – September 30, 2014 IEE Prepared by:

Victor Merino; MEO/USAID Peru Reference Environmental

LAC- IEE-09-61

Threshold Decisions

Date Prepared:

January 7, 2010

Recommended

Threshold Decisions:

Categorical Exclusion

Negative Determination with Conditions

1. BACKGROUND AND ACTIVITY DESCRIPTION

1.1. Background

The reason for this Amended Initial Environmental Evaluation (IEE) is three-fold: (1) extend existing Environmental Threshold Decision (ETD) (LAC-IEE-09-61) for an additional year through FY 2014, (2) add activities that will be implemented in Peru to match the scope with the Activity Description Document, and (3) increase funding. All other provisions of LAC-IEE-09-61 remain the same.

Through LAC-IEE-09-61, and pursuant to 22 CFR 216.2(c)(2)(i), (iii), (v) and (xiv), the LAC Bureau Environmental Officer issued a Categorical Exclusion for Results 1 to 7 and a Negative Determination with Conditions to the Result 8: “Strengthen technical capacity of the Agricultural sections” of the Trade Capacity Building activity.

1.2. Description of Activities

The purpose of the Peru and Andean Trade Capacity Building activity is threefold: (1) increase Peru’s ability to apply the US – Peru Trade Promotion Agreement (PTPA) to facilitate open and prosperous trade across a wide range of sectors and address systemic constraints that inhibit trade and investment; (2) increase the capacity of Peru to meet environmental and labor standards related to the PTPA; and (3)increase the competitiveness of the private sector in the Andean region by strengthening the capacity of Andean countries to take advantage of trade opportunities.

The table below lists the Program Areas, Elements, and Sub-Elements under which USAID/Peru will report its funds for the Peru & Andean Trade Capacity Building activity.

2009 Operational Plan

4.2.1.2. Trade Liberalization and Agreements

4.2.1.3. Trade Facilitation

4.8.1.2: Sustainable Natural Resource Management and Production

This activity will strengthen the institutional capacity in Andean countries through training and technical assistance to multiple ministries; in Peru, training and technical assistance will support the effective application of the PTPA. These reforms should lead to an open, fair, efficient and transparent framework for private investment that is environmentally sustainable. In support of the Peru Mission Strategic Plan, this activity will support Peru’s efforts to strengthen labor reforms and compliance with environmental laws and increase economic growth while expanding the benefits of trade led economic policies to all Peruvians.

The objective of this program is to increase Peru and the Andean region’s capacity to facilitate trade and adhere to negotiated legal standards and trade agreements. Approximately 90 to 95 percent of the funds will be used for trade capacity building activities for Peru and the remainder for the Andean Region. Activities implemented in Peru will follow closely the Government of Peru’s (GOP) trade capacity building plan and the requirements set forth in the PTPA Forest Sector Annex. The GOP is a willing partner in creating an efficient, well-regulated environment for trade, but the comprehensive changes required by new laws will necessitate tactical planning and perpetual diligence to implement. With US Government (USG) assistance, the obstacles to trade can be disassembled and international trade markets opened to the benefit of all regions, businesses, workers, and citizens of Peru.

In the Andean Region, USAID will pursue a dual approach of providing technical assistance in areas common to two or more countries as well as tailoring specific activities to meeting individual country needs. Implementing similar activities in two or more countries is more cost effective and will improve the implementation of trade agreements and standards in the region. Since each Andean country is taking a different approach to increasing trade, each one necessitates that some assistance offered under this program will need to be designed to meet specific capacity building objectives. Both of these approaches seek to increase competitiveness and broaden the benefits of trade by assisting countries and their private sectors to meet international standards and take advantage of international trade opportunities.

The following are the additional results under this activity the USG intends to achieve:

Result 9: Institutional, technical, and legal aspects of Peru’s forest sector governance system are strengthened- providing training for effective administrative, monitoring, and enforcement systems to combat illegal logging and corruption in the forest sector, and develop capacity of regional and local government entities to effectively fulfill their responsibilities for forest management, including competitively and transparently awarding and managing forest concessions.

Result 10: Private investment in conservation increased to provide opportunities for sustainable management of resources and improved livelihoods- through technical assistance to develop and implement strategies and tools that provide incentives for public and private investments in conservation and sustainable natural resources management, as well as training indigenous peoples to implement community-based and sustainable livelihoods initiatives and on enterprise management.

Result 11: Environmental management across selected sectors improved- strengthening capacity of public and private sector entities to improve environmental management in Environmental Cooperation Agreement (ECA) identified priority areas, such as establishing the ECA secretariat, set systems for public participation and transparency in environmental and natural resources policy, training GOP personnel to carry out duties and functions as required by the PTPA Environment Chapter, and put a monitoring system in place. It may include demonstration projects that may cause minor environmental impacts.

This program has a five year planned implementation period, beginning in late FY2009. Some individual activities will only have three or four year implementation periods.

2. Environmental Compliance to Date

There is nothing to report on this regard, since activities under the initial IEE have not started yet.

3. Recommended Threshold Decisions The Economic Growth and Environment Team recommends a Categorical Exclusion for Results 9, 10 and 11 of the Peru and Andean Trace Capacity Building Activity, considering that the action does not have an effect on the natural or physical environment. Training and Technical Assistance to be provided fall within the classes of actions described below in Section 216.2(c)(2), "Categorical Exclusions" of 22 CFR Environmental Procedures Part 216.

(i) Education, Technical Assistance or Training programs except to the extent such programs include activities directly affecting the environment (such as construction of facilities, etc.);

(iii) Analysis, studies, academic or research workshops and meetings;

(v) Document and information transfers;

(xiv) Studies, projects or programs intended to develop the capability of recipient countries to engage in development planning, except to the extent designed to result in activities directly affecting the environment (such as construction of facilities, etc.)

A Negative Determination with Conditions to the Result 10 activities provided that the contractor will use in workshops and technical assistance the recommended mitigation measures of the Forestry and Biodiversity Multi-Project Programmatic Environmental Assessment (F/BEA) approved through LAC-EA-05-04; and

A Negative Determination with Conditions for those demonstration projects under Result 11 provided that the implementer will monitor and conduct specific environmental analyses to ensure that appropriate mitigation procedures and Government of Peru environmental regulations are in place.

Where applicable, in both cases, the implementing agency should also comply with the appropriate sections of USAID LAC Environmental Guidelines for Development Activities in Latin America and the Caribbean. Available at the following link in English: http://www.usaid.gov/locations/latin_america_caribbean/environment/docs/epiq.html and in Spanish: http://www.imacmexico.org/ev_en.php?ID=15275_201&ID2=DO_TOPIC As currently planned, no interventions will directly affect the environment. If additional activities are considered that may directly affect the environment (such as construction or rehabilitation of facilities), an amended IEE shall be submitted as deemed appropriate.

Approval: ______________________________

Date: ______________

Andrew M. Herscowitz

Acting Mission Director, USAID/Peru CLEARANCE PAGE FOR THE AMENDMENT OF ETD LAC IEE-09-61 for Peru and Andean Trade Capacity Building Program:

EGE: S.Olive

__i.d.____ Date _1/18/10 _

REA: B.Bayle __i.d.____ Date _2/04/10 _ PDP: M.Choy

__i.d.____ Date _1/25/10 _

PAGE