Funding Organization: BNDES Amazon Fund

PROFILE

Total Amount $1 billion
Financing Mechanisms Grant
Qualifying Projects Adaptation , Mitigation, Forestry , Natural Resource Management , Sustainable Land Management
Eligibility Protected Areas (Environmental Management and Services); Sustainable Production Activities; Science & Technology Development Applied to Sustainable Use of Biodiversity; and Institutional Development and Improvement of Control Mechanisms

Funding Objectives

The BNDES Amazon Fund is aimed at raising donations for non-reimbursable investments in efforts to prevent, monitor and combat deforestation, as well as to promote the preservation and sustainable use of forests in the Amazon Biome. Besides this, the Amazon Fund may support the development of systems to monitor and control deforestation in other Brazilian biomes and in biomes of other tropical countries.

In addition to reducing the emission of greenhouse gases, proposed subject areas for support by the Amazon Fund may be coordinated in such a way as to contribute to accomplishing significant targets including prevention, monitoring and combat against deforestation, and targets related to promoting the preservation and sustainable use of forests in the Amazon biome.

Financing Mechanisms

The Amazon Fund provides non-reimbursable direct financing, mainly in the form of grants.

Application Procedures

The presentation of projects to the Amazon Fund is carried out by submitting a Previous Consultation, according to the template available at the “Information Schedule for the Previous Consultation of the Amazon Fund”.

Projects in science, technology and innovation, as well as those submitted directly by the public administration, must use specific models also available on the Amazon Fund site. The Script on Information for Previous Consultation in the Amazon Fund (Previous Consultation) was prepared with the purpose of conveying information and documents to the BNDES which are needed in order to understand a project’s objectives.

The Previous Consultation is organized and based on the characteristics and information provided by the applicant and the basic elements of the project, which – if approved – will be detailed during the analysis phase. The Previous Consultation must be completed by the applicant himself, with no help from intermediaries, and the Amazon Fund team will be available to clarify questions and provide other information.

In Module I, the Previous Consultation requests information on the applying institution, such as its history and the description of its main activities. Modules II and III seek to obtain information on the basic elements of the project, such as: the area envisaged, the contribution to reducing emissions from deforestation and forest degradation, the involvement of traditional communities and indigenous peoples and the major issues, as well as the problems to be solved. The Module IV deals with legal aspects and additional registration information.

Previous consultations are received and assessed by the Priority Department of the BNDES’ Planning Division, which verifies the preliminary documentation and the appropriateness of the project to the guidelines and criteria applicable to the Amazon Fund (PPCDAM, PAS, COFA’s Guidelines and Criteria and Operational Policies of the BNDES for the Amazon Fund).

Project Types

The Amazon Fund will finance efforts to prevent, monitor and combat deforestation, in addition to promoting the preservation and sustainable use of the Amazon Biome. Eligible projects should directly or indirectly contribute to reducing the deforestation of the Amazon Forest. Besides this, up to 20% of the Fund’s disbursements may support the development of systems for monitoring and controlling deforestation in other Brazilian biomes and in biomes of other tropical countries. The efforts of the Amazon Fund should abide by the guidelines of the Sustainable Amazon Plan – PAS and by the Action Plan for Prevention and Control of the Legal Amazon Deforestation – PPCDAM.

Specifically, the Amazon Fund will support activities in the following areas:

  • Management of public forests and protected areas;
  • Environmental control, monitoring and inspection;
  • Sustainable forest management;
  • Economic activities created with sustainable use of forests;
  • Ecological and economic zoning, territorial arrangement and agricultural regulation;
  • Preservation and sustainable use of biodiversity; and
  • Recovery of deforested areas.
Decision-making structure

All projects under consideration for funding from the Amazon Fund must pass through the following steps:

  1. Under Perspective: The BNDES uses this level as registered proof it received the Previous Consultation until the documentation required for its assesment is made available.
  2. Consultation Letter: This classification is used when the documents listed in Module IV of the Basic Script on information for Previous Consultation in the Amazon Fund is complete.
  3. Eligible: The projects reaches this level when the BNDESEligibility and Credit Committee decides that the application for financial collaboration complies with the operational policies of the BNDES and the guidelines and criteria of the Amazon Fund.
  4. Under Analysis: At this stage, the Management Department of the Amazon Fund, which is the Amazon Fund team, begin a detailed review of the project. In the analysis, besides preparing the Matrix of Results/Logical Framework of the project and defining the corresponding indicators, a detailed assessment of its central features is carried out, such as appropriateness of foreseen disbursements and operational risk.
  5. Approved: Once the analysis is completed, the operational department forwards the technical recommendation for financial support for the project to the BNDES Board of Directors. Once approved, the applicant is requested to send the additional documentation required for contracting. It is also at this stage that the draft contract is drawn up and approved.
  6. Contracted: At this stage, after signing the contract, there are disbursements of funds in accordance with the terms of the contract signed, and thus begins the implementation of the project by the beneficiary, as well as its follow-up by the Fund´s operational team. Disbursements are made in installments, in accordance with the progress of the project, to be confirmed by the monitoring technician.