Guatemala Dedicated Grant Mechanism for Indigenous Peoples and Local Communities Project

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The Dedicated Grant Mechanisms (DGM) for Indigenous Peoples and Local Communities (IPLCs) in Guatemala is one of the four projects that make up Guatemala's Forest Investment Program (FIP). The FIP supports the countries’ efforts to reduce deforestation and forestdegradation and implement sustainable forest management. The objective of the proposed DGM for IPLCs in Guatemala is to strengthen IPLCs' capacity to participate in sustainable forest and land management through enabling conditions for the application of traditional systems and providing economic opportunities and livelihoods to incentivize sustainable forest management.Project consists of three components:Component 1: Support for traditional IPLCs' forest management systems and enabling conditions for their sustainability (US$ 1.6 million). This component aims to strengthen the documentation, implementation and recognition of IPLC traditional forest management systems while addressing critical outstanding issues for IPLCs in capacity, planning, land administration or dialogue with other stakeholders that create the enabling conditions for sustainable management. Under this Component, the Proyect will work with beneficiaries to prepare and implement traditional and/or cultural forest management plans (CFMPs) and a design a design a Collective Forest Management Model based on the CFMP is a framework designed to integrate cultural practices, traditional knowledge, and indigenous or collective governance structures to enhance forest conservation and sustainable practice. The goal is to provide a scalable approach for national forest management programs to recognize and promote collective forest conservation practices. Activities within this Component will also strengthen enabling conditions for sustainable forest management by providing support for at least 10 IPLCs, nominated by each network, to overcome outstanding legal, administrative, or technical issues for strengthened and more sustainable communal forest management.Component 2: Support for forest dependent IPLCs' economies and food security (US$2.225 million). This Component would finance approximately 50 subprojects to support existing and new sustainable livelihood alternatives as well as small-scale food security initiatives for forest-dependent IPLCs who have been greatly impacted by COVID-19, its related containment measures, and/or by the tropical storms Eta and Iota, or other climate change related phenomena. It would also finance the technical assistance costs incurred by the NEA to support community-level organizations to prepare and assess the feasibility of the subprojects and provide ongoing support and accompaniment during implementation. Eligible investments under new sustainable livelihood alternatives include: pre-feasibility studies, research and development, market analysis, small community works, technical assistance, equipment for forest monitoring, and plans for communities to secure intellectual property rights and patents, among others. Eligible investments to support existing livelihoods would include: inputs (seeds/tools/small-scale infrastructure or machinery), adoption of technologies, support to articulate producers and strengthen associations, technical assistance to improve quality or gain certifications, establishment and/or consolidation of commercial partners, support to access financial services, among others. Investments under the food security subprojects would include the purchase of tools and supplies, seeds, small live-stock, promotion of community gardens, and post-harvest processing and storing equipment for community and family consumption needs.Component 3: Project administration, monitoring, and evaluation (US$0.675 million). This component would finance operation and administrative fees the NEA for project implementation including: (a) coordination and with all relevant stakeholders; (ii) preparation and implementation of calls for proposals, sub-project and beneficiary organizational assessments, and supervision of technical, fiduciary, environmental and social aspects for all investments; (iii), coordination, provision of support, and reporting to the NSC; (iv) monitoring, evaluation and reporting to the Bank; and (vi) communications.