Mexico - Protected Areas Program: Proposed Restructuring Project

The ratings for the Protected Areas Program for Mexico were as follows: the outcome was highly satisfactory, the sustainability was Highly likely, the institutional development impact was high, the Bank performance was satisfactory, and the borrower performance was highly satisfactory. The lessons learned indicate that the project confirms the finding of several other projects that building a stable, diverse base of funding sources sufficient to support a protected area over time is a long and complex process. The concept of "graduation" of the core protected areas to a combination of National Council on Protected Areas (CONANP) support, an external donor base, and recurrent income from entry fees, concessions, etc. was intrinsically appealing. It opened the door for support to an increasing number of areas that would gradually become self-sufficient and be replaced in the portfolio by more areas. This project confirms findings from diverse sources indicating that long-term conservation is possible only with the involvement and cooperation of stakeholders at the local and national levels, and that methods to achieve this involvement must be adapted to the unique circumstances of each area. Very clear, tangible and quantifiable development objectives and indicators are needed to avoid dispersing the project into activities with little overall impact on the status of the environment. A lesson identified in GEF's global portfolio of trust funds was that trust funds can promote decreases in government funding of protected areas by substituting trust fund financing for regular appropriations. This project did not have that experience, and in fact became a premier example of a government/fund partnership that actually leveraged increased government funding to protected areas. Investments in variable-return instruments are not appropriate to programs with fixed income requirements, except in the unusual (and unpredictable) case of an equity market that provides sufficient excess revenues in the early years to provide a cushion for a sustained downturn. It was demonstrated the need for long-term financing mechanisms to have adequate reserves for emergencies and unforeseen costs, and raises interesting questions about proper use of contingency funds. The end of World Bank supervision of this project presents important opportunities as well as risks for future operations. In general, the project itself provided good opportunities for capturing lessons and incorporation of improved practices as part of the project cycle.