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UNITED MEXICAN STATES

May 18, 2004

International Bank for Reconstruction and Development

1818 H Street, N. W.

Washington, D.C. 20433

Re: GEF Trust Fund Grant No. TF050311

(Consolidation of Protected Areas System Project)

Implementation Letter (Amendment)

Dear Sirs:

This letter, with its following Annex (on Monitoring and Evaluation Indicators for Sierra de Álamos), constitutes a supplement to the Implementation Letter defined in Section 1.02 (p) of the GEF Trust Fund Grant Agreement dated February 13, 2002 (as amended on the date hereof) among United Mexican States, Nacional Financiera, S.N.C., Fondo Mexicano para la Conservación de la Naturaleza, A.C. and International Bank for Reconstruction and Development for the above-mentioned project.

Sincerely yours,

United Mexican StatesFondo Mexicano para la Conservación de

la Naturaleza, A.C.

By: /s/ Andrés Conesa LabastidaBy: /s/ Renée González Montagut

Authorized Representative /s/ Lorenzo Rosenzweig Pasquel

Authorized Representative

CONFIRMED:

INTERNATIONAL BANK FOR

RECONSTRUCTION AND DEVELOPMENT

By: /s/ Isabel Guerrero

Authorized Representative

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Annex

Sierra de Álamos Project Monitoring and Evaluation Indicators

APFF SIERRA DE ÁLAMOS

Strategy / Indicators / Assumptions
Objective
Conserve the biodiversity of the Area of Protection for Flora and Fauna of “Sierra de Álamos” / No catastrophic droughts, infestations or plant/animal illnesses will occur.
Official institutions and programs will not promote or incentivize deforestation.
Strategy for Natural Resource Protection
R1 Increased knowledge of the ecological processes present in the APFF / Number of applied research projects for resource management developed by academics for the APFF / Academic institutions are interested in the science needs of the APFF
R2 Reduction in the area affected by man-made activities such as provoked forest fires and clearing/deforestation. / Affected area/year
Number of forest fires/year
Number of restored hectares/year / Authorities make efforts to control illegal activities.
Greater monitoring and supervision presence in the area
No prolonged droughts
R3 Processes of natural resource use and extraction controlled and managed / Number of beneficiaries that comply with authorized use/total number of beneficiaries / Sufficient economic resources and equipment provided in a timely manner
Relevant authorities support the project activities
Social Participation Strategy
R4 Diversified and improved productive practices towards sustainable development implemented by the local population / Number of alternative projects adopted by the communities/total number of productive projects
Number of productive projects congruent with the conservation policies of the APFF/total number of productive projects in the APFF / No incentives or subsidies exist that promote non-compatible activities
Benefits from compatible activities are equal or greater than non-compatible activities
Inter-institutional agreements exist for productive projects
Existence of Interest and availability of institutions that have an effect in the APFF
R5 Inter-institutional coordination increased. / Number of agreements signed with other agencies in favor of APFF conservation / Sufficient political support exists for conservation efforts in the APFF.
R6 Local inhabitants and beneficiaries recognize the importance of the APFF / Number of concienscious individuals/total local population / Sufficient and timely resources exist
Local authorities are involved in outreach activities
R7 Increase in the participation of inhabitants and beneficiaries in the APFF management / Fulfilled agreements/ Agreements established
Number of social participation fora aimed at the management of the APFF / Social sector council members of the Technical committee continue to participate in the advisory council.

WB77786

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February 10, 2004 11:31 AM