Professional Documents
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600,000 344 21 %
ACRES mammal types ANNUAL LOSS
projected projected
NATURE
& $1.04M
NORTHWEST PERU PROJECT
NATURE & CULTURE /SOUTH AMERICA
CULTURE ANTICIPATED 30-MONTH DEPLOYMENT
TARGET
ACRES FOR
CONSERVATION: 600,000
This summary, which contains brief, selected information pertaining to the business and af-
fairs of the Project, has been prepared by NATURE & CULTURE to provide general information
about the offering. This is not an offer to sell, or a solicitation of an offer to buy land, as such
an offer or solicitation can only come through the offering’s Conservation Memorandum
(“CM”) . This material cannot, and does not, replace the CM, and the CM supersedes this
material in all respects.
THE OPPORTUNITY IN 103 WORDS
To save humanity, you have to tackle some really nasty problems. You
already know about them: climate change, clean energy, and species loss.
To us, the problem of species loss stands out. Why?
Because it’s irreversible.
Areas where there is high species concentration have become exceedingly rare and
valuable—out of 192 countries, only 17 make the watch list. None are in Europe. The
U.S. is one. The remaining 15 are in South America, Central America, Africa, and Asia.
All are at risk. But many are difficult to reach. Others are dangerous to operate in
once you reach them. Some are prohibitively expensive to deal with. Several are
targeted by other organizations.
But, there are 4 countries with areas of biodiversity wealth and species
concentration that we have identified as reachable, affordable and saveable. Our
immediate focus is to defend these areas.
This prospectus describes one of our priorities, how we selected it, why it must be
defended, and what it costs to do so.
NATURE
CULTURE & PROJECT
NW PERU:
THE TUMBESIAN ECOSYSTEMS SUMMARY
KEY INVESTMENT MERITS projected
ACRES 600,000
FUNDING REQUIREMENT $1,045,000
COST PER ACRE CONSERVED $1.74
DEPLOYMENT SCHEDULE 36 MONTHS
HABITAT TYPES 5
CONSERVATION INTL. RANK HOTSPOT #4
NCI LEAD OFFICE PIURA, PERU
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NATURE
CULTURE & THE OPPORTUNITY THE MODEL THE REGION NCI TEAM
NW PERU: DRY FOREST PROJECT
Projections based on the Private Placement Memorandum for the offering.
600K 83 95%
ACRES MAMMALS CLEARED
The Advisor and Manager project NCI targets loans that can be The NCI Series One portfolio is
that the invested capital will be acquired at 30%, or greater, projecting a 14% IRR over a 36
returned in Year 2 of the hold discount to current market value month hold period.
period. of the collateral.
INTRODUCTION THE PROBLEM SOLUTION HOW IT’S DONE THE SITE WHY US
THE PROBLEM: IT’S NOT WHAT YOU THINK THE TUMBESIAN ECOSYSTEMS america
south
Nearly everyone who studies conservation—or watches CNN—is already aware that AREA OF INTEREST: 600,000 ACRES
bulldozers and logging machines are clearing some of the world’s most valuable habitats.
Clearing and logging have reduced some of Peru’s forests to only a few percent of their original
extent. Unless this is your first day in the conservation business, you already know about this.
And because of general awareness, progress is being made:
Protection efforts have started in many of Peru’s high profile habitats. There are 56 conservation
zones in the country, covering almost 13% of the landmass. That’s the good news.
But—some of Peru’s most biodiverse areas are so remote, they aren’t even acknowledged as
habitats that need protection. That’s a serious problem.
In Peru, large and remote areas where logging, overgrazing, and corn fields have replaced 95%
of biodiverse habitats,the lack of management (and community involvement) means that the
process of species extinction is occurring and accelerating.
ie s
E
a p
nd conservation education for the owners of communal and
e ci
E
private lands.
es
re d P l a n t e re d B i r d S
nge ang
22% 32%
Sp e
pec
a
End
End
c ie s
ies
12% 13%
of 285,000 of 9,895 of 5,490 of 6,347
plant species bird species mammal species amphibian species
in the world, in the world, in the world, in the world,
33,798 are 1,240 are 1,208 are 2,031 are
NATURE
threatened. threatened threatened threatened
CULTURE &
THE OPPORTUNITY THE MODEL THE REGION NCI TEAM
THE SOLUTION: DO MORE FASTER AND CHEAPER NATURE CULTURE
WE’D LOVE TO TELL YOU THAT OUR EFFORTS WILL SAVE THE SNOW LEOPARD, POLAR BEAR
AND EVEN THE BLUEFIN TUNA. But lets get real. That might cost billions of dollars which is
above our pay grade. We’re field scientists who work away from the limelight and we focus
$2 per acre
on just one thing: how to use known science, education, and political persuasion to protect
biodiverse habitats from logging and clearing.
NATURE
CULTURE &
THE OPPORTUNITY THE MODEL THE REGION NCI TEAM
THE NATURE & CULTURE MODEL NATURE
CULTURE &
If we just buy the land without the support of the people who live there, then you
can guess the outcome: the conservation effort will be temporary. There’s only
one business model that we know of which will protect the land for generations.
2 3
Since life began on Earth, five major Biodiversity supports ecosystem
mass extinctions and several minor services including air quality, climate
events have led to large and sudden (e.g., CO2 sequestration), water We take, but we
We are taking the
drops in biodiversity. The Permian– purification, pollination, and erosion land that plants and
don’t give back
1
Triassic extinction event, 251 million prevention. animals rely on
4
years ago, was the worst; vertebrate Biodiversity gives rise to many
recovery took 30 million years. The ecosystem services that are often We’re losing species
most recent, the Cretaceous–Tertiary not readily visible. It plays a part irrecoverably This is an imbalance and
extinction event, occurred 65 million in regulating the chemistry of our it’s not sustainable
years ago—this is the one that killed atmosphere and water supply.
the dinosaurs. Biodiversity is directly involved in
But since the dinosaurs, species loss water purification, recycling nutrients
has now accelerated above any prior and providing fertile soils. THERE ARE SOME PROBLEMS THAT ARE FIXABLE. THIS IS ONE.
rate, and its driven by human activity. Experiments with controlled The power of evolution drives the origin of species to produce a a living legacy that is our responsibility to
Estimates of species loss are at a rate environments have shown that
protect at this historic crossroads. The magnitude of the threat to biodiversity is enormous.
1,000 to 10,000 times as fast as is humans cannot easily build We have taken over and converted most of the productive lands and forests, poisoned or drained innumer-
typical in the fossil record. able wetlands, over-fished the oceans, and altered the atmosphere. One in three amphibians, one in four
ecosystems to support human needs; mammals, and one in eight birds are currently facing extinction. Some of the habitats that support biodi-
The period since the emergence of for example insect pollination cannot versity are down to their last remnants.
humans has displayed an ongoing be mimicked, and that activity alone This data should prompt all of us to take seriously the need to study and defend biodiversity. With the cor-
biodiversity reduction and an represents tens of billions of dollars rect action taken now, it is still possible to save most of the diverse forms of life on our planet.
accompanying loss of genetic in ecosystem services per year to
diversity. Named the Holocene humankind.
extinction, the reduction is caused For these reasons, the United Nations
primarily by human impacts, designated 2010 as the International
particularly habitat destruction. Year of Biodiversity
Biodiversity’s impact on human
health is also a major international
issue..
36months
PROJECTED without markup, or through
PROJECT LEVEL PROFORMA DEVELOPMENT PERIOD
unaffiliated 3rd parties.
Nothing is more important to us than building past guards and any type of fencing to exploit
strong relationships with the people who the natural resources.
live near our programs. And not just strong So if you take away the fences and the guards
relationships, but unshakable ones. Deploy
and the patrols - your remaining option is to
Talent
Because as build social programs
conservationists we have
protected more than five
SCIENCE NATURE that naturally protect the
environment.
Know the
Community
Map
Region
million acres of biodiverse
habitat and we know over CULTURE INVESTMENT Social programs? Again,
you cannot sell anyone
time, the boundaries of on the value of biodiverse
each habitat will be tested habitats - people need to arrive at this
by policy makers, industrialists and military Determine Assess
conclusion on their own, especially nationalistic Species
groups. and hard-headed governments. Cost
And since we never build fences or physical What you can do is build relationships with Ensure
boundaries, it’s only the strength of the human politicians, regional authorities and local people. Permanence
heart that can protect habitat in the long term. That’s what we do.
This brings us to the central idea of our programs Our relationships lead to trust, allowing us
and certainly what must be the most important to show people their own habitats through a
lesson of the biodiversity crises: Putting up conservation lens.
fences is a short-term fix that will fail in the
long-term. The key risk to “fencing,” as it is Trusted relationships are NCI’s critical skillset.
known, is that the people who live in-and-near This is how we gain the opportunity to
our projects will come to feel restricted from permanently conserve large areas.
using their own lands. They will eventually slip
NATURE
CULTURE & THE OPPORTUNITY THE MODEL THE REGION NCI TEAM
SELECTING A SITE: OUR APPROACH NATURE
CULTURE &
SCREENING A POTENTIAL SITE
with NATURE & CULTURE
b We don’t rely on single sources to determine the priority level of a site.
Here’s how NCI analyzes a living asset prior to investment:
1
When we first consider a project, we look for a size
SIZE OF that’s in our sweet spot of 100,000 to 1 million acres.
POTENTIAL We like to work on big projects and important projects—
SITE but we don’t want to overreach.
2
Next, we use in-country biologists to assess species
diversity and endemism—the number of plants and
DIVERSITY & animals that are unique to the region. Endemism is the
“ENDEMISM” most critical element to look for because it is at the
heart of biodiversity.
3
A trend analysis looks at the imminent dangers that are
moving towards the region. These might be logging,
IMMINENT slash and burn pasturage, biofuel plantations, overgraz-
THREATS ing, oil extraction, or mining. We go to where the threats
are imminent.
4
The only way to protect land for less than $100 an acre
COST is to work with mayors, governors, and community
leaders in order to set up community reserves,
ANALYSIS protected reserves, and zoning regulations. This factors
into our accounting. If we can’t meet our cost targets,
we know the project isn’t right for us.
5
The time, energy and resources devoted to a project
STAYING only make sense if the land can be protected in perpe-
POWER tuity. The overarching goal is to create a legacy for the
people and organisms involved. We look for projects
that will provide a legacy for future generations.
6
We can’t succeed on our own, and we know we need
LOCAL local conservationists with political talent to match their
TALENT biology training. We like to find conservationists who will
eventuallymove into government service—where they
can bring us greater levels of support over time.
Foca Island (1,000 acres) Virrila Estuary and Ramon and Ñapique La- AREA OF DETAIL
We have an opportunity to declare the first goons (125,000 acres)
marine protected area in Peru at Foca Island. It This Peruvian coastal site harbors large
is the northernmost island of Peru and is unique numbers of migratory waterfowl. It is an
because it includes both important breeding
tropical and cold water SAN PEDRO site for the charismatic
FOCA ISLAND MANGROVES
Foca Island
.
Piura
marine species. The 1,000 ACRES 20,500 ACRES
Chilean Flamingo and
San Pedro Mangroves
proposed conservation the rare Peruvian Tern
area (including the VIRRILA ESTUARY ILLESCAS is also found here.
Ramon & Ñapique Lagoons
and Virrila Estuary
surrounding marine area) RAMON&NAPIQUE LAGOONS PENNINSULA Adjacent sea-grass Illescas Forests North Western Peru is bounded
125,000 ACRES 175,000 ACRES on three sides by a triangle and a
contains the northernmost (Caulerpa filiformis) large box of bananasa
JAGUAR
15K
WORLD POP.
estimated
ECOSYSTEM DETAIL: Tropical Dry Forests
Northwestern Peru is a nexus where five distinct habitat types converge: tropical dry forest, tropical deserts,
wetlands, riparian areas, intertidal-coastal areas and ocean. Here the cold Humboldt Current and warm Panama
ocean currents create a unique, transitional area exhibiting tremendous marine and terrestrial diversity. This di-
verse combination of habitats provides some of the highest rates of biodiversity in a small area.
Angostura (20,000 acres) laden dry tropical forest in the foothills adjacent
This area expands the Amotape Foothills to the Cerros de Amotape National Park. It
AREA OF DETAIL
National Park and contains rare transitional would also create an area to conserving one
habitats between the dry tropical forest and of the largest populations of the endangered
the humid Equatorial Pacific Forest. There Peruvian Plantcutter (Phytotoma raimondii) in Angostura
are significant breeding populations of the the arid plains at Talara. Talara encompasses
Coto de Caza
endangered Grey Hawk and new amphibian the largest and most intact area of sparse dry
species have been found here. The national forest in northwestern Peru—an ecosystem Amotape
park service and NCI have already constructed that has been virtually destroyed. The area is
a field research station/operations center heavily overgrazed and without management Salitral .Piura
here for management and research. so conservation effort is badly needed to first
protect and then restore this area.
Coto de Caza El Angolo (50,000 acres)
NCI is currently seeking a management Salitral (125,000 acres)
concession from the Peruvian ministry of the Salitral is the northern boundary of the
environment to manage at least 50,000 acres species-rich tropical dry forest conservation
The dry tropical forests of this region, together with those of
at the Angolo Hunting Reserve (Coto de Caza) along the slopes of the western Andean
adjacent Ecuador, are known as the Tumbesian Region of Ende-
in an effort to conserve this national protected foothills. This proposed protected area
mism (135,000 km2) and are one of the worlds highest biodi-
area’s tropical dry forests. This area is the contains 70% of the habitat of the critically versity priorities due to species endemism and degree of threat.
second largest protected dry tropical forest endangered White-winged Guan (Penelope
in Peru and along with the adjacent Cerros de albipennis) and contains approximately 80%
Amotape National Park, it contains the highest of Peru’s wild population of this species.
number of globally threatened bird species The area has been prioritized as an Area of
(9) of any reserve in Peru. This unmanaged Importance for the Conservation of Birds (IBA)
area is currently threatened with overgrazing, by Birdlife International. Site management will
woodcutting and mining. include building fences at critical points of
access for livestock, building an educational
Amotape Foothills—Talara (60,000 acres) center focused on the White-Winged Guan, the
This proposal would protect an additional Spectacled Bear and their habitat needs and
60,000 acres of endangered and species- establishing a local management committee.
Byron Swift, President Ivan Gayler, Chair Luis Alban, Director of Nature & Culture-Peru
Byron has worked with local partners Ivan is the founding President and Chairman Luis initiated our Peru office in 2003. He is a
throughout Latin America for over two of the Board of Nature and Culture Interna- Biologist (University Ricardo Palma of Lima),
decades to improve land and resource tional. Since 1997, NCI has lead and supported with twelve years experience in projects
conservation and environmental policy. An efforts to establish millions acres of tropical dealing with conservation and development,
environmental lawyer, Byron is an expert in forest reserves in Ecuador, Peru, Columbia, and especially in relation to forest genetic re-
private lands conservation and has published Mexico; including the creation of a 2.5 million sources. Luis served as scientific director for
widely on biodiversity, industrial pollution and acre UNESCO recognized Biosphere Reserve in reforestation at the University of Piura (1994-
climate change. He has directed the energy the tropical Andes, 4.5 million acres of Regional 2004), President of the Regional Environ-
program at the Environmental Law Institute Reserves in the Amazon rainforests, and over mental Commission of Piura (2002-2004),
(1994-2004) and the US office of IUCN - 100,000 acres of tropical dry forest including and Coordinator of the Piura working group
World Conservation Union (1998-2004), and 20,000 acres in Sonora, Mexico. on paramos (2001-2004).
has served as a private foundation officer. Ivan has served as President and Board Mem-
ber of the San Diego Museum of Man, a Board
Member of the La Jolla Playhouse, and a
Member of the Director’s Cabinet of Scripps
Institution of Oceanography. Ivan believes our
generation is the last with the opportunity to
save the variety of life on earth.