Ancient Trees of Chilean Temperate Rainforest Rescued

VALDIVIA, Chile, November 6, 2003 (ENS) - The Nature Conservancy has purchased $7.5 million worth of temperate rainforest in southern Chile's Valdivian Coastal Range inhabited by rare and endangered species, including a tree species that lives up to 4,000 years. The working forest was sold at a public auction in Santiago, Chile Tuesday after the bankruptcy of the forestry company that had logged the land.

The Valdivian Coastal Range range is part of a larger temperate rainforest system that is one of only five temperate rainforests on Earth. Acquisition of the 147,500 acre property builds upon existing conservation efforts by the Chilean government and local environmental organizations in the region.

One of the world's largest woodpeckers and the world's smallest deer both inhabit this rainforest along with a small tree dwelling marsupial, commonly known as a mountain monkey that is viewed by scientists as a living fossil.

At least 58 bird species and several rare carnivores such as the southern river otter can be found here.

Olivillo trees, which can live up to 400 years, survive in large stands only on the western slopes of this range, and alerce trees, which resemble North American giant sequoias still survive here; they can live up to 4,000 years.

This alerce tree can live for thousands of years. (Photo credit unknown)

"This is a unique opportunity to work with a diverse range of partners to protect one of the most imperiled ecosystems on Earth," McCormick said.

The deal is part of a larger partnership among the Conservancy, World Wildlife Fund, The Global Conservation Fund at Conservation International, and local organizations in Chile.

The Chilean groups include the National Committee for the Defense of Fauna and Flora (CODEFF), the Association of Foresters for the Native Forests, the Coastal Range Conservation Coalition, and the Committee for the Defense of the Chaihumn River.

The land acquisition was facilitated by FleetBoston Financial Corporation, the largest major creditor of the bankrupt forestry firm, Bosques S.A. When FleetBoston learned of the significance of this forest, the company decided to balance its interests as a creditor with its commitment to be environmentally and socially responsible.

"By partnering with The Nature Conservancy we were able to construct a unique transaction that reflects our corporate values and fulfills our financial responsibilities to our shareholders, while preserving an ecologically critical area in Chile," said Chad Gifford, chairman and CEO of FleetBoston Financial Corporation.

FleetBoston and the Conservancy devised a way for the Conservancy to purchase Bosques' debt secured by the Valdivian property by acquiring a wholly owned special purpose company created by FleetBoston to hold the secured debt. Acquiring the debt enabled the Conservancy to purchase the property at the public auction.

Now that the forest has been saved from logging, the Conservancy will work with Chilean public and private organizations to transfer the land into Chilean ownership.

The property contains 9,000 acres of non-native eucalyptus trees and 4,000 acres of land that was previously clearcut for another eucalyptus plantation.

The Conservancy, WWF and local partners in Chile intend to harvest the eucalyptus in an environmentally responsible manner and restore the entire 13,000 acres to native forest.

Chilean olivillo forests like this one are becoming increasingly rare. (Photo credit unknown)

Local Chilean groups and the government will raise funds to protect the area. The Conservancy will provide the majority of the funding, with World Wildlife Fund and Conservation International's Global Conservation Fund contributing up to $1 million each toward the transaction.

"This is a phenomenally important piece of property for Chile and biodiversity worldwide," said Margo Burnham, Chile country program director for The Nature Conservancy. "This group of partners was able to take the bankruptcy and turn it into an opportunity to protect an area long considered a conservation priority by the Chilean government and local environmental organizations, while helping local communities flourish."

The partnership has begun a process to determine how to establish Chilean ownership of the land for conservation. Once this is determined, The Nature Conservancy will transfer ownership and management of the property into Chilean hands to ensure this treasure is protected for generations to come.

Chile's national environmental agency (CONAMA) has embraced the public-private partnership, although it is a new concept for the country.

CONAMA Executive Director Gianni Lopez said, "Ten years ago the existence of protected areas not owned by the government was unthinkable. Today our society is more environmentally responsible and therefore other stakeholders have become interested in preserving our natural heritage. In this sense, this project is a new model for conservation and a great opportunity in which public and private efforts converge."

The conservation project complements others that are underway in this area, such as a project proposed for financing from the Global Environment Facility to preserve the Valdivian forest, and a change in the planned route for the Coastal Highway. In January, the Chilean government rerouted a proposed road that would have fragmented this coastal rainforest.

"Wildlife and people will both benefit here," said WWF Vice President for Latin America Guillermo Castilleja. "This is the first step toward the goal of a major protected area in the coastal range where sustainable development will allow people and nature to prosper together for generations to come."