The Cochabamba Tropics Project

The Cochabamba Project Limited has been established as Industrial Provident Society in the UK with the purpose of supporting a unique reforestation project involving smallholders in the Cochabamba region of the Bolivian Amazon. The fund has raised over £550,000 as at 31st Octobe 2009

For a copy of the full prospectus, click here.

This pioneering investment model provides collective security, democratic control and increased liquidity for investors. Rather than having to find a private buyer investors are able to redeem their holding to the society. Investors also do not have to wait for decades until the trees actually mature in order to receive a fair return on their investment.

The wider project, known as The Cochabamba Tropics Project, covers an area of 7,200 hectares in total and involves approximately 1,500 smallholders, who have committed to the programme. It has achieved accreditation as a "Clean Development Mechanism" under the Kyoto protocol and as such there are carbon credits (Certified Emission Reductions) attached to the project which are sold to pay for the professional management and oversight of the project. This is carried out by a joint venture organisation, Asociacion Accidental Cetefor Sicirec (AACS). Cetefor is a Bolivian not for profit organisation which co-ordinates the work at local level. Sicirec is a Dutch consultancy with over 20 years experience in sustainable tropical forestry and is responsible for environmental and forest management. The project has been nominated for a Gold rating according to the Climate, Community & Biodiversity Alliance (CCBA) standards.

The Cochabamba Project Ltd will generate revenue in the long term from the sale of timber grown in association with participating smallholders.

• The Society provides the finance for the germination of seedlings, the preparation of soil and the planting of trees.
• The participating smallholders in Cochabamba provide the land and labour.
• All operating costs are met by AACS and are covered out of income from the sale of carbon credits to a European government.

In return for its investment in trees the Society will receive 50% of the future timber revenues.

The participating smallholders in Bolivia will receive the other 50% of the timber revenues.

The Society assumes an annual increase in the value of the timber assets in the region of 9%. This is based on the conservative assumptions approved for CDM accreditation. However there will be no actual revenues until the trees start to mature. With this in mind the directors propose an annual interest payment in the region of 6% in the form of bonus shares. In this way investors will always receive a fair value for their holdings.