This report was published as part of the requirements of an ground-breaking Indigenous development project of the Inter-American Development Bank (IDB). The project, which was funded by the Canadian Trust Fund at the IDB, is understood to be the IDB’s first project focused so directly on Indigenous business and economic development. The project was developed by Wayne Dunn, who was contracted by the IDB to design a program that would enable the IDB to undertake a focused Indigenous development project in Peru. The report outlines progress on the overall project and specifically details 14 commercial opportunities and 7 more general development opportunities.
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Stepping Towards Self Sufficiency: An Indigenous Economic Development Plan for CONAP - Peruvian Amazon
1. 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
Confederación de Nacionalidades
Amazónicas del Perú – CONAP
Jirón Brigaidier Pumacahua 974
Jesús María, Lima 11, PERU
Telefax: 511.423.8391
R.J. Burnside
Email: conap@telematic.com.pe International Limited
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IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)
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
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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
R.J. Burnside International Limited June, 1999
Wayne Dunn & Associates Ltd.
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IDB/CANTAP Indigenous Development Program for
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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: conap@telematic.com.pe
Wayne Dunn & Associates Ltd.
2457 Bakerview Road, Mill Bay, BC, VOR 2PO, CANADA
Phone: +1.250-743-7619
Fax: +1.250-743-7659
Email: info@waynedunn.com
R.J. Burnside International Limited
15 Townline, Orangeville, Ontario, L9W 3R4, CANADA
Phone: 519-941-5331
Fax: 519-941-8120
Email: info@rjburnside.com
R.J. Burnside International Limited June, 1999
Wayne Dunn & Associates Ltd.
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IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)
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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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
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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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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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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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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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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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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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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 Cesar Sarasara/Manuel MacKenzie
and Development of Projects
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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 Activities in CONAP’s national office in Lima
Jan 18-25
Week 2 Activities in CONAP’s national office in Lima
Jan 25-30 Began travel to regional offices and initial meetings/workshops in Iquitos
Week 3 Additional meetings/workshops in Iquitos and meetings in Lagunas,
Jan 31 – Feb 6 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 Rui De Carvalho By June 1 and sent by
original workplan based email to CONAP and
on discussions of IDB by June 4
mission of May 18-20
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Project Workplan
Task Description of Tasks Who When
Complete report Prepare report on work Rui De Carvalho By Mon June 7
completed to date, Wayne Dunn
outline of work plan for Andrew Isaak
completion (translator)
Draft of the The “procedures Wayne Dunn The draft or outline
Procedures Manual manual” requires Andrew Isaak should be completed by
further definition; It Mon June 14 so that it
was agreed that a draft can be sent to CONAP
outline would be ahead of the upcoming
prepared to be mission
discussed with CONAP
during the June mission
Draft strategic It is important for Wayne Dunn The draft should be
operational plan CONAP to visualize the completed by Mon June
concept of the 14 so that it can be sent
development of its to CONAP ahead of the
Strategic Operational upcoming mission
Plan (4 year term); it
was agreed that this is a The process of
task that CONAP has to development of
do but that we would Strategic Operational
prepare a draft model Plan should remain
for consideration and to open until after the
get the process started mission to Canada to
take advantage of
exposure of new ideas
Prepare for June 21 It was agreed that it is Rui De Carvalho The draft should be
mission essential that this Wayne Dunn completed by Mon June
mission be Ken Thomas 14 so that it can be sent
appropriately planned Andrew Isaak to CONAP prior to the
with the roles of all start of mission
participants well
defined ahead of time
Draft entrepreneurial A number of business Wayne Dunn Should be completed
concepts ideas will be put forth Ken Thomas for presentation during
for the Executive to the mission;
consider and discussion
during the upcoming It is being covered in
mission (should draw the current working
upon on the information report.
learned from the visit to
the Regions)
R.J. Burnside International Limited June, 1999
Wayne Dunn & Associates Ltd.
26. Stepping Towards Self-Sufficiency Page 22
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)
Project Workplan
Task Description of Tasks Who When
Draft marketing A sequel to the previous Wayne Dunn For presentation during
concepts task Ken Thomas the June mission
Preliminary This ties in with the Wayne Dunn For presentation during
identification of previous two items Ken Thomas the June mission
products and services
Concepts in Draft of preliminary Wayne Dunn For presentation during
identification of funds ideas for CONAP to Ken Thomas the June mission
develop and follow up
in order to achieve long
term economic
sustainability
Submissions to As much of the above Rui De Carvalho/will Before and during the
CONAP and IDB should be submitted to compile and make June mission
CONAP and IDB even submissions as
in a preliminary format appropriate
so that the intent of the
work is communicated
Identify individuals to It was agreed that four CONAP ideally prior to the June
receive training and as many as eight mission
individuals (for
redundancy) should be
identified by CONAP
to receive training in
areas of
administration
accounting/finance
legal issues
strategic planning and
negotiations
June 21 mission Assumed that the full Rui De Carvalho
week will be Wayne Dunn
allocated/draft agenda Ken Thomas
to be prepared outlining Andrew Isaak (who will
the week’s proposed remain in Lima - Oscar
program Milliones to assist
Andrew with the long
Morning of June 21 term accommodation)
should be dedicated to
review the week’s
workplan and
expectations.
R.J. Burnside International Limited June, 1999
Wayne Dunn & Associates Ltd.
27. Stepping Towards Self-Sufficiency Page 23
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)
Project Workplan
Task Description of Tasks Who When
Extended Mission Preliminary list of Andrew Isaak tentative dates
tasks: support from Oscar June 21 to September
-become familiar with Milliones and from the 18
CONAP its people and Team in Canada (with one trip home or
politics through email and visitor from home)
-implement telephone
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
Legal Framework Following the terms of Mercedes Manriquez sometime in August
Analysis reference and the after her schedule is
background material able to allocate the
provided by Wayne appropriate time
Dunn
recognition that if The terms of reference
appropriate resources for the analysis will be
were available, the reviewed during the
analysis would be much upcoming mission and
more extensive revised as necessary
Workshop on CONAP’s objectives is Wayne Dunn and Ken scheduled to be
negotiation and to have the workshop in Thomas assuming that determined
conflict resolution Peru to be scheduled to they may be assisting in
coincide with a specific such negotiations
negotiation
individuals David Bennett as an
alternative
R.J. Burnside International Limited June, 1999
Wayne Dunn & Associates Ltd.
28. Stepping Towards Self-Sufficiency Page 24
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)
Project Workplan
Task Description of Tasks Who When
Mission by CONAP to Planning of mission to Ken Thomas at the end of September
Canada be carried out during Wayne Dunn / early October
the June mission in
Lima
individuals to be
selected
A draft itinerary will be
available for discussion
Preparation of Final Final document on how Andrew Isaak November 99
Project Report the objectives of the Rui De Carvalho
project were achieved - Wayne Dunn
results based
management
Final Mission to closure to existing To be determined December 99 or more
CONAP project - initiation of practically in January
new ventures 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.
R.J. Burnside International Limited June, 1999
Wayne Dunn & Associates Ltd.
29. Stepping Towards Self-Sufficiency Page 25
IDB/CANTAP Indigenous Development Program for
La Confederación de Nacionalidades Amazónicas del Peru (CONAP)
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
R.J. Burnside International Limited June, 1999
Wayne Dunn & Associates Ltd.