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Good afternoon, and thank you for joining us today for the signing of the debt-for-nature agreements for Peru under the Tropical Forest Conservation Act (TFCA).
I would like to welcome Ambassador Wagner and Minister Kuczynski, Roberto Roca from Conservation International, Gregory Miller from the Nature Conservancy, David Sandalow from the World Wildlife Fund, and Representative Portman. Representative Portman’s work on the TFCA, as well that of Senators Biden and Lugar, has been an essential part of the bipartisan support that has made today’s agreement possible.
As President Bush said at last year’s Summit of the Americas, We are committed to protecting this hemisphere’s natural resources That’s why I am committed to using the Tropical Forest Conservation Act to help countries redirect debt payment towards local projects that will protect biodiversity and tropical forests. That is exactly what today’s agreements do. U.S. debt forgiveness will allow Peru to devote $10.6 million to finance tropical forest conservation activities in Peru over a 12-year period. These funds will go toward the establishment, restoration and maintenance of parks, protected areas, and reserves, as well as train scientists, technicians, and managers involved in conservation.
These activities will help protect Peru’s natural riches for future generations. From the top of the Andes to the Amazon basin, Peru is home to 84 of the 103 types of life zones found on Earth, with nine life zones in Machu Picchu alone. The funds generated will go towards protecting rainforests in Peru, including the Peruvian Amazon. This area is home to dozens of endangered species, such as the jaguar, harpy eagle, the giant river otter, black caiman, and several species of macaws and rare plants such as walking palms and giant water lilies.
This agreement would not be possible without the important financial contribution of Conservation International, the Nature Conservancy, and the World Wildlife Fund. Together, these three groups made a contribution of $1.1 million to this debt swap. We are grateful for their support and tireless efforts to aid this U.S. agenda.
This isn’t the first time the Treasury worked to fulfill this mission, and it won’t be the last. Today’s agreements mark the second U.S. debt-for-nature swap, and the fifth agreement concluded under the Tropical Forest Conservation Act. We are still looking to extend the benefits of the program. We have already seen agreements with Bangladesh, Belize, El Salvador, and Thailand, we expect to conclude an agreement with the Philippines this year.
Before signing, I invite the Finance Minister from Peru, Mr. Pedro Paulo Kuczynski to say a few words about the agreement. Let me introduce Pedro Pablo by commenting on how well he has served Peru. He has been an effective leader and advocate of strong economic policies. Earlier this year, his Finance Ministry brought the first sovereign issuance to the international capital markets in over 70 years. And they are doing fine work in the local market as well, where the country is creating a formal, periodic local-currency debt market that we all hope will begin to serve the corporate sector as well. It gives me great pleasure to sign this deal with my colleague.