VZCZCXYZ0000
PP RUEHWEB

DE RUEHDG #0772/01 0622120
ZNR UUUUU ZZH
P 032120Z MAR 06
FM AMEMBASSY SANTO DOMINGO
TO RUEHC/SECSTATE WASHDC PRIORITY 3843
RUEHC/DEPT OF LABOR WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY

UNCLAS SANTO DOMINGO 000772 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR OES/ENV FOR CAROLE JACKSON, OES/PCI FOR LARRY 
SPERLING, USAID/LAC/RSD FOR JOHN GARRISON, WHA/EPSC FOR 
FAITH CORNEILLE, DEPT PASS USTR FOR MBURR 
 
E.O. 12958: N/A 
TAGS: EAID ETRD LAB SENV DR
SUBJECT: DOMINICAN REPUBLIC: USAID DR-CAFTA ENVIRONMENT 
PROGRAM PROJECTS 
 
REF: SECSTATE 26123 
 
¶1. Summary:  This is the 2006 USAID/Dominican Republic 
Environment Program Request which will support the 
environmental obligations of the Free Trade Agreement between 
the Dominican Republic, the Central American countries, and 
the United States (DR-CAFTA) and the regional environmental 
cooperative agreement. This program request builds on the 
Embassy's highly successful environmental program.  Without 
funding of these proposed activities, the Embassy will not be 
able to do them, putting in serious risk full compliance of 
the Dominican government with the environmental provisions of 
DR-CAFTA, other relevant MEAs, its National Environmental 
Law.  It would also require a revision of the economic 
prosperity performance goal paper in Embassy Santo Domingo's 
MPP. This cable is in response to reftel and is also being 
sent via email. 
 
(Begin Text) 
 
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¶A. Characteristics of the Environmental and Natural Resource 
Situation 
Description and Justification for Proposed Activities 
 
The protection of the environment and the natural resource 
base is critical to the future growth and sustainable 
development of the country.  The natural resource base lies 
at the core of the Dominican Republic,s delicate biological 
balance and provides the undergirding for the country's 
economy.  Tourism, which accounts for around 22 percent of 
the Gross Domestic Product, is linked to a vibrant and 
diverse environment and a network of unique national parks 
and protected areas.  Dominican agriculture and industry, as 
well as human health, are highly dependent on clean water, 
which is rapidly dwindling on this island.  The sustainable 
growth of these sectors in the country is important to the 
sustainable growth of the Dominican economy. 
 
The Embassy worked intensively in 2000 with the Dominican 
government to formulate the progressive General Environmental 
Law (Law 64-00), which marked the beginning of a broad-based 
effort to deal with the threats to the country's natural 
resource base.  After the promulgation of this law, the 
Embassy continued to provide technical assistance through 
USAID's primary environment and natural resource contractor, 
International Resources Group, Ltd. (IRG), to formulate the 
necessary regulations and norms, as well as to strengthen the 
public and private institutions, required to enforce this 
law. 
 
With the initiation of the Improved Policies for 
Environmental Protection (IPEP) Program in 2003, USAID made a 
four-year financial commitment to the government to provide 
assistance to the Secretariat of the Environment and Natural 
Resources (SEMARENA) to develop and implement an 
Environmental Policy Framework and to increase civil society 
participation in policy formulation and enforcement.  Over 
the past two years, the IPEP program has helped to formulate 
laws for Bio-diversity and Coastal-Marine Resource Use, as 
well as norms for the rational use of ground water, forestry 
resources, marina operations, surface water management, and 
toxic waste treatment.  IPEP has also developed a draft 
regulation for Environmental Enforcement and, while working 
at the municipal level, has strengthened fourteen Municipal 
Environmental Units (UGAMs) by helping them to develop and 
implement local environmental ordinances to complement the 
national norms.  IPEP has worked with grass-roots NGOs, 
private enterprise, and community based organizations to 
promote economically viable, environmentally-friendly 
investments.  IPEP,s Environmental Protection Investment 
Fund (FIPA) has co-financed 26 successful 1:1 (at least) 
matching grants with grass-roots NGOs and private enterprises 
and leveraged around USD600,000 in private resources to 
develop and implement clean and environmentally sustainable 
production technologies.  These investments, focused in areas 
such as eco-tourism, organic agriculture, clean energy uses, 
and 
watershed protection, are showing small firms how to make a 
profit while protecting the environment at the same time.  A 
good example of this work is IPEP,s assistance given to a 
local group of swine producers who invested in an efficient 
bio-digester to convert the swine excrement into usable 
methane gas. 
 
IPEP has also developed a number of analytical instruments to 
facilitate the government's policy making and enforcement 
 
(e.g., a ground water data base, an analysis of the impact of 
free trade on the environment, a strategic plan for the 
Dominican Biosphere Reserve, a market-demand study for a 
clean production center, an analysis of economic instruments 
to promote clean technology, a strategy for the Dominican 
national park system's financial sustainability).  Also, IPEP 
has provided training on a wide range of topics to enhance 
Dominican institutional capability to design and implement 
sustainable natural resource use policy and programs.  This 
training has included public sector management skills, 
economic valuation of environmental goods and services, 
national park management, forest ranger and park ranger 
skills, clean production services, and strategic planning to 
protect the environment and natural resource base. 
 
With the ratification of DR-CAFTA in 2005, the Dominican 
Republic faces new challenges in implementing the 
environmental provisions of this treaty.  In addition, while 
much work has been done to develop an effective public and 
private system to protect the Dominican environment and 
natural resource base, there is still much work to be done as 
delineated in the following "expected results and activities" 
proposed by the government under the DR-CAFTA Environmental 
Project. 
 
--------------------------------------------- --- 
¶B.  Results and Activities Expected under the DR-CAFTA 
Environmental Project 
 
¶1. Strengthened Environmental and Natural Resource Law 
Compliance and Enforcement Systems operating in the Dominican 
Republic (USD600,000). 
 
Develop training materials to work with the public and 
private sectors to encourage compliance with and enforce 
environmental regulations and norms, which will include 
modules on key DR-CAFTA regulations, distinction between 
environmental crimes and administration infractions, 
inspections, management of evidence, and compliance 
(USD50,000). 
 
Facilitate five workshops to coordinate interministerial and 
private sector coordination to promote compliance with and 
enforcement of environmental regulations and norms 
(USD50,000). 
 
Organize four workshops and four participant observation 
visits to public sector organization representatives to train 
personnel in SEMARENA, Secretariat of Industry and Commerce, 
Secretariat of Agriculture, Tourism, Foreign Affairs, the 
 
SIPDIS 
Congress, the Environmental Attorney General,s Office, and 
environmental police on measures needed to implement 
environmental enforcement procedures (USD100,000). 
 
Complete the Regulation on Environmental Enforcement 
(USD50,000). 
 
Draft a revised Forestry Law and a Law for the National 
Protected Areas System (USD75,000). 
 
Develop improved norms and regulations for Coastal/Marine 
resource use, Bio-diversity, and organic agricultural 
production (USD75,000). 
 
Work with 14 municipalities to assist them with the 
implementation of local ordinances (USD100,000). 
 
Develop 10 new Municipal Environmental Units (UGAMs) and 
bring them into the national network to enforce environmental 
standards (USD100,000). 
 
¶2. Successful operation of the Dominican National 
Environmental Council, which includes Opportunities for 
Public Participation (USD500,000). 
 
Strengthen the National Environmental Council (NEC), as 
stated in the National Environmental Law, comprised of 
cabinet-level representatives, members of Congress, and 
representatives of the judicial system, to develop an 
appropriate plan of work to enforce environmental regulations 
(USD150,000). 
 
Establish a system within SEMARENA to receive and publicly 
communicate all matters related to Chapter 17 of the CAFTA-DR 
and the Economic Cooperation Agreement (USD150,000). 
 
Establish and put into operation the National Environmental 
 
Information Network, which will serve to monitor the CAFTA-DR 
environmental compliance (USD200,000). 
 
¶3. Implementation and improved compliance with the other 
Multilateral Environmental Agreements (MEAs), such as CITES, 
RAMSAR, the Montreal Protocol, and other relevant 
MEAs (USD200,000). 
 
Design and develop informational materials to support 
SEMARENA,s public awareness, environmental enforcement 
campaign of relevant MEA,s (USD100,000). 
 
Organize four workshops with public and private sector 
representatives to develop programs to enforce compliance 
with other MEA,s (USD100,000). 
 
¶4. Promotion of the use of environmental tools and self 
regulation techniques through dissemination and exchange, 
with the purpose of improving environmental exchange 
(USD500,000). 
 
Organize and give four workshops among civil society 
organizations, and provide participant training observation 
to 4 civil society representatives to disseminate information 
on environmental management programs and self regulation 
techniques (USD150,000). 
 
Update the existing ground water data base, giving particular 
attention to the tourism growth centers of Bayahibe and 
Bavaro (USD50,000). 
 
Develop a strategy for micro-watershed protection 
(USD150,000). 
 
Develop a Mass Media Campaign promoting the environmental and 
economic provisions and dimensions of DR-CAFTA (USD150,000). 
 
¶5. Promotion of private market initiatives and information 
exchange with the purpose of improving environmental 
performance (USD300,000). 
 
Strengthen the Environmental Protection Investment Fund 
projects (FIPAs), especially those that are located in 
transition zones in the vicinity of national parks, by 
developing three new FIPA public-private partnership projects 
(USD300,000). 
 
¶6. Development of effective private market environmental 
management mechanisms (USD300,000). 
 
Develop strategies for the creation and use of financial, 
fiscal, and market incentives to enforce environmental 
regulations and norms (USD100,000). 
 
Promote and implement market schemes for environmental 
services (USD50,000). 
 
Identify specific market opportunities for certified 
agricultural and wood products 
(USD50,000). 
 
Organize and give three workshops to provide training in 
financially sustainable forestry and watershed management 
(USD100,000). 
 
¶7.  Development and implementation of cleaner production 
methodologies and technologies (USD400,000). 
 
Design and promote cleaner production schemes in productive 
processes, applying best practices to improve efficiency in 
the use of resource materials and inputs (USD50,000). 
 
Design and implement a Development Credit Authority (DCA) 
loan guarantee program with at least one local financial 
institution to support commercial lending to clean production 
investments (USD100,000). 
 
Develop four new FIPA public-private partnership "Green 
Investment" programs, which will promote organic coffee, 
cacao, and banana production, as well as alternative 
renewable energy systems (e.g. wind, bio-diesel, hydro) 
(USD200,000). 
 
Organize and give two workshops to provide training in 
certification of organic production and the use of cleaner 
production techniques and technologies (USD50,000). 
 
¶C. Link with U.S. Policy Objectives and Current Development 
Assistance Program 
 
¶1. The U.S. Government, with the signing of the USAID/DR-IPEP 
program in 2003, made a contractual commitment to the 
government to provide assistance to implement effectively the 
Dominican National Environment Law.  With the ratification of 
DR-CAFTA in 2005, particularly 
with respect to its environmental requirements on enforcement 
(Chapter 17), Sanitary and Phytosanitary Measures (Chapter 
6), Technical Barriers to Trade (Chapter 7), and Market 
Access (Chapter 3), the U.S. Government expects trade to be 
increased among the parties without causing any damage to the 
environment in the respective countries. The enforcement and 
implementation of the environmental provisions in DR-CAFTA 
(including the Environmental Cooperation Agreement) and other 
relevant Multilateral Environmental Agreements are priority 
U.S. policy objectives. 
 
¶2. This project proposal builds on the highly successful 
Embassy Santo Domingo IPEP program, which suffered a 30 
percent cut in FY 2006. With the current level of funding, 
Embassy Santo Domingo will not be able to undertake the 
activities and achieve the results proposed above, putting in 
serious risk full compliance of the Dominican government with 
the environmental provisions of DR-CAFTA, other relevant 
MEAs, and its National Environmental Law.  It would also 
require a revision of the economic prosperity performance 
goal paper in Embassy Santo Domingo's MPP. 
 
¶D. Estimated Cost to achieve results in (B) above is USD2.5 
million per year: 
If granted these funds, USAID-DR will provide assistance to 
the key Dominican public sector institutions (primarily 
SEMARENA, the Environmental Attorney General,s Office, and 
the municipal environmental units), small businesses, and 
grass-roots civil society groups, primarily through its 
existing contract with IRG.  These institutions are already 
in the field and are ideally positioned to start the proposed 
activities immediately. Consequently, they can be expected to 
achieve the expected results well within a two year period. 
 
¶E. Degree of Local Buy-In: This proposal has been developed 
in conjunction with representatives from SEMARENA, which 
considers the specified results and activities to be among 
their highest priorities to comply with the environmental 
provisions in DR-CAFTA, other MEAs, and their National 
Environmental Law. In addition, this proposal has been vetted 
with the private sector and the NGOs that are expected to 
play a key role in the implementation of this project. These 
funds are expected, as in the past, to leverage at least a 
one to one match from the private organizations and other 
international donors participating in this project. 
 
(END TEXT) 
KUBISKE