![[Add to Google]](http://buttons.googlesyndication.com/fusion/add.gif){kind=small}
![[Add to My Yahoo!]](http://us.i1.yimg.com/us.yimg.com/i/us/my/addtomyyahoo4.gif){kind=small}
The Cochabamba Tropics Project
The new 2010 Share Offer for The Cochabamba Project Limited is now open.
The Cochabamba Project Ltd was established in March 2009 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 first share offer in 2009 raised £623,000
For a copy of the full prospectus, click here
For more pictures of the work being carried out in Bolivia please 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 company Arbolivia which is represented by the centre for Technical Forestry and Sicirec, a Dutch consultancy with over 20 years experience in sustainable tropical forestry.
|
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 7% in the form of bonus shares.
|
In this way investors will always receive a fair value for their holdings. |
