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Peru

Activity Data Sheet

PROGRAM: Peru
TITLE AND NUMBER:  Improved quality of life of Peruvians along the Peru-Ecuador border target areas (Peru-Ecuador Border Region Development), 527-008*
PLANNED FY 2001 OBLIGATION AND ACCOUNT: $3,488,000 (ESF)
PROPOSED FY 2002 OBLIGATION AND ACCOUNT:  $2,500,000 (ESF)
STATUS:  Continuing
INITIAL OBLIGATION:  FY 1999    ESTIMATED COMPLETION DATE:  FY 2005

Summary:  In October 1998, after three and one half years of negotiations, the Presidents of Ecuador and Peru signed a Peace Agreement which put an end to an often bloody, century-and-a-half old border conflict over the demarcation of their shared border. The United States, as one of four Guarantor nations of the 1942 Rio de Janeiro Protocol, has invested considerable time, effort and resources to help the parties achieve peace. The final settlement was built on a series of agreements and treaties covering commerce and navigation; security; border demarcation; and integration. Also, a bi-national peace fund, designed to compensate difficult political concessions and encourage investments to stimulate growth and improve living conditions in an area impoverished by years of conflict was to be established.

As part of the peace negotiations, the Governments of Peru and Ecuador created a Bi-National Commission for Border Integration. Under the Border Integration Agreement, a plan for a regional development program of investment totaling $3 billion was developed. The governments of Peru and Ecuador presented the plan at the March 2000 Consultative Group meeting at which the USG formally pledged $40 million (Peru-$20 million, Ecuador-$20 million) in addition to the initial $2 million (Peru-$0.5 million, Ecuador-$1.5 million) provided in FY 1999 for quick impact activities to demonstrate viability to other donors and leverage their funds for the border region. The planned activities aim at improving both social and economic conditions on both sides of the border to ensure lasting peace. Many of the activities supported by USAID under the Bi-National Plan for Development of the Border Region will be replications of successful USAID-supported programs that are currently being implemented in other parts of Peru and Ecuador.

The Peace Agreement has created enormous expectations among the population living along the 1,700 kilometer Peru-Ecuador border. There are almost four million people living in the border provinces on both sides of the border, representing 12% of the combined total population of both countries. (The actual population living near the border is estimated at 10%-15% of this total.) The border area is severely underdeveloped, contains some of the poorest populations in both countries, and is home to more than one hundred thousand indigenous Amazonians. Lack of access to clean water, sanitation, and proper solid waste management is a serious problem. Infant and maternal mortality, as well as child malnutrition rates are high. Local governments are weak and unable to meet the needs of the average citizen. Improvements to these socio-economic conditions are key to achieving stability. Moreover, from a regional perspective, the border region contains key watershed sources for the Amazon Region. This is an important biodiverse and ecological reserve that must be protected.

U.S. Government (USG) support in the border region will boost the efforts of Peru and Ecuador to restore public confidence in their leadership. This activity is aimed at facilitating border integration by improving socio-economic conditions of communities along the border. It supports a range of activities intended to create economic opportunities for disadvantaged inhabitants; build or rehabilitate productive infrastructure; strengthen local governments; promote sustainable natural resource management; and improve and establish basic services and healthcare to improve border residents' living conditions.

In prior years, reporting on the Peru-Ecuador Border Region Development activity was included under the LAC Regional program in the Congressional Presentation/Budget Justification document. However, both USAID Missions have now developed special objectives for country-level planning and reporting purposes and funds are transferred to each Mission for implementation of selected activities. Therefore, beginning this year, each objective and its related activities will be included in the respective country section of the Congressional Budget Justification document for reporting purposes.

Key Results:  The following key results are required to achieve this objective: 1) increased income-generating opportunities; 2) increased availability of and access to basic services; 3) improved health of vulnerable populations; 4) expanded quality education in rural areas; 5) improved natural resource and environmental management in border regions; 6) increased protection of human rights, particularly those of women and indigenous populations; 7) strengthened participation and capacities of indigenous, community, local government and non-governmental organizations; and 8) cross-border economic and social exchanges.

Performance and Prospects:  In Peru, an initial activity aimed to show tangible benefits of the Peace Accord in border communities started in June 1999. Interventions have been focused on local organizational strengthening and implementation of high-impact, small-scale community infrastructure, to provide these communities with actual participatory experiences in developing and implementing activities, while providing services (e.g., potable water systems, sewage, rural roads, and classroom improvement). This activity, implemented by CARE/Peru, benefited 2,100 poor families living in 44 border communities in Ayabaca (Piura highlands) achieving important results. An intersectoral coordination network, with broad participation at the provincial and district levels, has been established. Participatory planning processes in 44 communities, including those for latrines, classrooms, potable water systems, and rural roads, were completed in FY 2000. The successful methodology used to implement basic infrastructure has garnered $143,000 additional resources from the Japanese government and the Bi-National Fund for Peace and Development. The Japanese Government has financed additional community infrastructure projects in nine communities where USAID is working. Moreover, CARE/Peru has been coordinating border activities with CARE/Ecuador and has sponsored workshops with the participation of Ecuadorian municipalities that border Ayabaca. For the second anniversary of the Peace Accords, CARE/Peru was a leading institution in coordinating a forum of Peruvian and Ecuadorian NGOs on border development projects, the results of which were submitted to the Bi-National Executive Board.

In FY 2001, funds will be used to support activities principally in the rural areas of the highlands and the eastern jungle, with an emphasis on high concentrations of indigenous populations. Activities are targeted to improve the quality of life of border populations, while strengthening organizations to manage their own development processes. These activities include: 1) interventions to expand quality education to rural indigenous communities, focusing on such skills as education in health, nutrition, production practices, environment, democratic principles and bilingual education for girls and women; 2) health interventions to reduce maternal and peri-natal mortality, infectious diseases and infant and child malnutrition; 3) support to strengthen local governments' ability to plan, target and manage resources in a responsible and accountable manner; 4) training of municipal leaders, civil society organizations and the population in general to assume new levels of involvement and responsibility; 5) development of small, community-based projects (e.g., health surveillance systems, potable water, etc.) and area development plans (e.g., community ecological reserves); 6) human rights protection training with a focus on indigenous women's and children's rights; and 7) information campaigns and cross-border exchanges.

In 2002, USAID will continue interventions that started in 2001 in the rural areas of the highlands and the eastern jungle, incorporating new communities to participate in the activity. Additionally, interventions will be expanded to the upper jungle area, where improvement of market- led production activities and management of natural resources will be emphasized as part of the community-based projects.

Possible Adjustments to Plans:  Baseline data results to become available by June 2001 could call for an adjustment of targets.

Other Donor Programs:  The ten-year budget for the Bi-National Plan for Peru-Ecuador Border Area Development sought by the Peruvians and the Ecuadorians is $3 billion. Currently, the two governments together plan to contribute $100 million, while the donors will be asked to provide up to $600 million in grant resources, the international financial institutions up to $1.5 billion in loans, and the private sector up to $800 million in investments. The Bi-National Commission has received donor pledges of $180 million at the first Consultative Group meeting held in March 2000. The Bi-National Fund for Peace and Development, established to administer contributions from the international community and the Governments of Peru and Ecuador, is managed by the Andean Development Corporation (CAF) to ensure transparency and accountability. The International Advisory Committee (IAC), established for the implementation of the Bi-National Plan, was installed in October 2000 and is made up of representatives of the governments of Brazil, Germany, Italy, Japan, Spain, and the U.S., and of the multilateral Inter-American Development Bank, CAF, and United Nations Development Program.

Principal Contractors, Grantees or Agencies: CARE/Peru and CARE/Ecuador are lead organizations, respectively on each side of the border, of consortia implementing activities in the border region. The border activities are also implemented through a number of public- and private-sector partners including local governments, community organizations, NGOs, and central government sectoral organizations.


*This was notified previously as 598-0858

FY 2002 Performance Table

Peru: 527-008

Performance Measures:

Indicator FY97
(Actual)
FY98
(Actual)
FY99
(Actual)
FY00
(Actual)
FY00
(Plan)
FY01
(Plan)
FY02
(Plan)
Indicator 1: Number of communities with small project(s) functioning and providing servicesNANA04440NANA
Indicator 2: Number of local networks to promote development established and functioningNANA044NANA

Indicator Information:

Indicator Level (S)or(IR) Unit of Measure Source Indicator Description
Indicator 1: IR NumberCARE Quarterly ReportsCommunities that have completed their participatory project, have established maintenance committees and schemes, and community infrastructure projects are being used.
Indicator 2: IR NumberCARE Quarterly ReportsDistrictal and/or provincial networks formally established by the local authority with development plans, that are implementing development actions according to the plan.

U.S. Financing

(In thousands of dollars)

  Obligations   Expenditures   Unliquidated  
Through September 30, 1999    0 DA 0 DA 0 DA
0 CSD 0 CSD 0 CSD
500 ESF 134 ESF 366 ESF
0 INC 0 INC 0 INC
0 FSA 0 FSA 0 FSA
0 DFA 0 DFA 0 DFA
Fiscal Year 2000 0 DA 0 DA    
0 CSD 0 CSD    
5,500 ESF 366 ESF    
0 INC 0 INC    
0 FSA 0 FSA    
0 DFA 0 DFA    
Through September 30, 2000 0 DA 0 DA 0 DA
0 CSD 0 CSD 0 CSD
6,000 ESF 500 ESF 5,500 ESF
0 INC 0 INC 0 INC
0 FSA 0 FSA 0 FSA
0 DFA 0 DFA 0 DFA
Prior Year Unobligated Funds 0 DA        
0 CSD        
0 ESF        
0 INC        
0 FSA        
0 DFA        
Planned Fiscal Year 2001 NOA 0 DA        
0 CSD        
3,488 ESF        
0 INC        
0 FSA        
0 DFA        
Total Planned Fiscal Year 2001 0 DA        
0 CSD        
3,488 ESF        
0 INC        
0 FSA        
0 DFA        
      Future Obligations  Est. Total Cost 
Proposed Fiscal Year 2002 NOA 0 DA 0 DA 0 DA
0 CSD 0 CSD 0 CSD
2,500 ESF 8,513 ESF 20,501 ESF
0 INC 0 INC 0 INC
0 FSA 0 FSA 0 FSA
0 DFA 0 DFA 0 DFA

NOTE: This was previously notified as a component of 598-0858

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Last Updated on: May 29, 2002