Fri. Sep 11th, 2026

Asociación Armonía, a dedicated conservation partner in Bolivia, is spearheading an innovative initiative to secure long-term sustainable financing for the critical Tunari National Park. This ambitious project aims to establish a Payment for Ecosystem Services (PES) mechanism, a pioneering financial model designed to channel consistent funding into the restoration and protection of the park’s invaluable natural resources, particularly its ancient Kewiña forests and vital watersheds. The effort signifies a pivotal shift towards empowering local communities and fostering enduring ecological stewardship in a region facing persistent environmental challenges.

Bolivia’s Fragile Andean Ecosystems: The Heart of Tunari

High on the southern slopes of Tunari National Park, a globally significant ecosystem thrives, home to over 80% of Bolivia’s remaining ancient Kewiña forest (genus Polylepis). These unique high-altitude native forests, often found clinging to steep Andean ridges at elevations exceeding 3,500 meters, are not only remarkably resilient but also critically fragile. The Kewiña trees themselves are slow-growing and adapted to extreme conditions, forming dense, gnarled woodlands that play an indispensable role in maintaining ecological balance. Their thick, insulating bark protects them from harsh frosts and fires, while their extensive root systems are crucial for soil stability on precarious slopes.

Protecting Bolivia’s forest watersheds with sustainable finance

Beyond their intrinsic botanical value, these forests are ecological lynchpins. They act as natural sponges, regulating water flows that are vital for the downstream communities, especially the burgeoning Cochabamba metropolitan region. This urban agglomeration, home to over 1 million people, relies almost entirely on the water resources originating within Tunari National Park. Furthermore, the Kewiña forests provide unique habitats for a range of endemic wildlife found nowhere else on Earth. Among these is the Near Threatened Cochabamba Mountain-finch (Poospiza garleppi), a small passerine bird whose survival is directly tied to the health and extent of these specialized forest ecosystems. The park’s biodiversity extends to other high-Andean species, including various mammals, amphibians, and a diverse array of plant life, making its preservation a cornerstone of regional and global conservation efforts.

A History of Pressure and Shifting Dynamics

For decades, Tunari National Park has endured immense pressure, threatening its ecological integrity and the services it provides. The primary threats include recurrent forest fires, often exacerbated by human activity and climate change, which devastate large swathes of the ancient Kewiña forests. Deforestation, driven by agricultural expansion, illegal logging, and the encroachment of urban settlements, further fragments and degrades these vital woodlands. The relentless expansion of the Cochabamba metropolitan region, with its increasing demand for land and resources, has led to significant urban sprawl encroaching directly onto park boundaries, complicating conservation efforts and creating conflict over land use.

Historically, the relationship between communities living within and around the park and the managing authorities has often been fraught with tension. A lack of clear land tenure, conflicting resource needs, and insufficient community involvement in conservation planning led to mutual distrust and made long-term conservation strategies difficult to implement. Local populations, often marginalized and reliant on the park’s resources for their livelihoods, sometimes viewed conservation measures as restrictive rather than beneficial, leading to a cycle of unsustainable practices and management challenges. This complex socio-environmental landscape underscored the urgent need for a new approach that prioritized collaboration, local empowerment, and sustainable financing.

Protecting Bolivia’s forest watersheds with sustainable finance

Pioneering Long-Term Sustainable Finance: The PES Mechanism

Today, this challenging dynamic is beginning to transform. Through the dedicated efforts of Asociación Armonía, with crucial support from the Forest Impact Accelerator, a new paradigm is emerging. Restoration activities are actively underway, local communities are increasingly stepping into leadership roles, and a groundbreaking idea is taking shape: a Payment for Ecosystem Services (PES) mechanism. This innovative financial instrument is designed to secure the long-term future of the Kewiña forests and the broader Tunari watershed by establishing a direct financial link between the beneficiaries of ecosystem services (downstream urban residents) and the providers (upstream communities and the natural environment).

The rationale behind the PES mechanism is rooted in a fundamental understanding of conservation finance. While short-term project-based funding has historically supported many conservation initiatives, the reality of forest restoration is that it demands decades of sustained effort and investment. Trees take years to mature, ecosystems take even longer to fully recover, and community engagement requires continuous support. Without stable, long-term financing, the gains achieved through initial restoration projects are inherently difficult to maintain, risking a return to previous cycles of degradation. The PES model, therefore, represents a strategic pivot towards a self-sustaining financial framework that can adapt to the protracted timelines required for meaningful ecological recovery and community development.

Community-Led Restoration and Governance Transformation

Protecting Bolivia’s forest watersheds with sustainable finance

Over the past several years, Asociación Armonía, in close collaboration with local communities, has made significant strides in restoring parts of the Tunari protected area. A key milestone has been the planting of an impressive 1.25 million trees, with more than half of these established within the Tiquipaya municipality alone. This monumental reforestation effort has been largely driven by the active participation of community members, who have taken ownership of the sapling nurseries, planting initiatives, and ongoing care.

Beyond tree planting, the project has focused on building resilience and capacity at the local level. Community wildfire brigades have been strengthened through training and provision of equipment, enabling a more effective response to fire threats. Essential water infrastructure, such as reservoirs, has been constructed to enhance water security for local populations, demonstrating tangible benefits of conservation efforts. Crucially, new systems have been established to facilitate and formalize community participation in watershed management, moving away from top-down directives to a more collaborative governance model.

One of the most impactful actions has been the reinforcement of the structure and function of the Organismo de Gestión de Cuencas (OGC), a vital watershed governance body. The OGC plays a pivotal role in coordinating restoration activities, designing sustainable development strategies tailored for communities living within the park, and, critically, rebuilding trust between these communities, park authorities, and conservation organizations. A notable aspect of this transformation has been the significant role played by women leaders, whose insights and dedication have been instrumental in shaping the direction and success of these initiatives, ensuring inclusivity and local relevance. This multi-faceted approach, combining direct restoration with governance reform and community empowerment, lays the groundwork for the enduring success of the PES mechanism.

The Mechanics of a Sustainable Future: How the PES Fund Works

Protecting Bolivia’s forest watersheds with sustainable finance

The proposed PES mechanism is designed to operate on principles of transparency, equity, and long-term sustainability. It envisions the collection of small, regular financial contributions from downstream users of the Tunari watershed – primarily residents and businesses within the Cochabamba metropolitan region. These contributions, which could potentially be integrated into existing water tariffs or collected through municipal levies, would be directed into a dedicated, transparent trust fund. This fund would be managed by an independent governance body, ensuring accountability and prudent allocation of resources.

Once operational, the resources within the trust fund would be strategically invested across three main areas, directly addressing the multifaceted needs of the Tunari watershed:

  1. Direct Restoration and Reforestation: A significant portion of the funds would be allocated to scaling up and sustaining active restoration efforts. This includes funding for native tree nurseries, large-scale planting campaigns, maintenance of reforested areas, erosion control measures, and the restoration of degraded wetlands within the watershed. These activities would continue to be largely community-led, providing direct employment and income opportunities for local residents.
  2. Strengthening Watershed Governance and Management: Funds would support the continued capacity building and operational costs of the Organismo de Gestión de Cuencas (OGC) and other multi-stakeholder platforms. This includes financing for monitoring ecological health, preventing wildfires, improving coordination among various actors (communities, municipalities, park authorities), and developing long-term management plans based on scientific data and local knowledge.
  3. Sustainable Livelihood Development: To ensure the long-term commitment of communities to conservation, the PES mechanism would also invest in alternative and sustainable livelihood opportunities. This could include supporting agroforestry initiatives, promoting ecotourism ventures, developing sustainable agriculture practices, and other income-generating activities that reduce reliance on environmentally destructive practices. By improving the economic well-being of local populations, the system reinforces their role as custodians of the watershed.

For the upstream communities, the PES system formally recognizes and rewards their invaluable role as stewards of the watershed, providing tangible benefits for their conservation efforts. For the more than one million urban residents of Cochabamba, it offers a practical and direct way to contribute to the protection of the ecosystems that supply their essential water needs. For public and private partners, it establishes a robust, transparent, and independently governed structure for long-term investment in landscape restoration and climate resilience. Initial projections suggest that once fully implemented and operational, this innovative mechanism could generate an estimated £3 million (approximately $3.8 million USD) per year for watershed protection and restoration, providing a stable financial foundation that has long been absent.

Designing and Implementing the Mechanism: A Collaborative Journey

Protecting Bolivia’s forest watersheds with sustainable finance

The journey to design and implement this PES mechanism has been a meticulous and collaborative process. Over the past two years, Armonía has worked extensively with various stakeholders, including the seven municipalities comprising the Cochabamba metropolitan area, local communities, and regional governmental institutions. This involved conducting comprehensive studies, detailed assessments of ecosystem services, and extensive consultations across the region. These consultations were crucial for understanding local perceptions, garnering support, and ensuring that the mechanism would be equitable and effective.

A key finding from these consultations was a widespread recognition among urban residents that protecting the high-Andean forests is directly and intrinsically linked to their water security. This understanding forms the social foundation upon which the PES mechanism can be built. Based on these encouraging results and the demonstrated willingness of various stakeholders to participate, Armonía and its partners are now actively developing the institutional and legal framework for a regional trust fund, which will serve as the financial vehicle for the PES system. This includes drafting legal instruments, establishing governance structures, and identifying potential revenue streams.

Building Enduring Institutions and Broader Implications

The financial system is only one piece of this complex puzzle. Equally essential are robust governance structures and sustained community participation. With the ongoing support from the Forest Impact Accelerator, Armonía is actively assisting communities in developing comprehensive ten-year sustainable development strategies. These strategies identify not only restoration priorities but also outline income-generating opportunities that align with conservation goals. To ensure broad oversight and informed decision-making, a multi-stakeholder platform is being established, bringing together representatives from communities, municipalities, government agencies, and civil society. Concurrently, the park administration is receiving critical support to strengthen its monitoring capabilities, enhance wildfire prevention protocols, and improve coordination with all stakeholders, ensuring an integrated and adaptive management approach.

Protecting Bolivia’s forest watersheds with sustainable finance

The work underway in Tunari National Park extends far beyond the planting of trees; it represents the construction of a durable, self-sustaining system that seamlessly links ecological restoration with empowered community leadership and long-term financing. Once fully operational, this mechanism has the potential to fundamentally transform how the Tunari watershed is managed. Instead of relying on intermittent, short-term projects, the region will benefit from a locally supported and financed system that intrinsically rewards stewardship and protects the ancient Kewiña forests that have sustained life in the Andes for centuries.

This model holds significant broader implications, potentially serving as a blueprint for other protected areas across Bolivia and the wider Andean region that face similar challenges of deforestation, water scarcity, and community-conservation conflicts. It offers a tangible example of how innovative finance can contribute to climate change resilience, particularly in vulnerable high-altitude ecosystems. By restoring forests, the project enhances carbon sequestration, mitigates soil erosion, and stabilizes hydrological cycles, all critical adaptation measures in the face of a changing climate. Furthermore, by fostering sustainable livelihoods and strengthening local governance, the initiative contributes directly to poverty reduction and enhances the overall well-being of local populations, creating a virtuous cycle where environmental health and human development are mutually reinforcing.

A Collaborative Vision for Tunari: Catalyzing Change

The success of this ambitious initiative has been made possible through the generous and sustained support of several key donors. Since the project’s inception in 2020, Accion Andina, the Darwin Initiative (both direct funding and through the Accelerator), Trillion Trees – BirdLife International, and FFBT (Flanders State of the Art – Agency Nature & Forest) have been essential to supporting the initiative’s progress.

Protecting Bolivia’s forest watersheds with sustainable finance

The Forest Impact Accelerator itself has achieved remarkable success over its five-year tenure, backed by the generous support from the Hempel Foundation, Waterloo Foundation, and the King Charles III Charitable Fund. This catalytic program has not only raised an additional £6 million in funding in collaboration with its partners but has also delivered significant conservation and socio-economic benefits. To date, it has positively impacted over 1 million hectares, improved protection for 400 threatened species, and directly benefited 38,000 local people across its various projects.

In recognition of its profound impact and innovative approach, the Forest Impact Accelerator recently received an important Darwin Initiative Extra grant through the UK government’s Biodiversity Challenge Awards. This prestigious program is dedicated to supporting global biodiversity conservation, reducing poverty, and addressing climate change. The substantial award of £4,978,335 will enable the Accelerator to significantly expand and scale these achievements, aiming to secure an additional 1 million hectares of Key Biodiversity Areas while generating economic benefits for an astounding 200,000 local people. This continued investment underscores the international community’s recognition of the critical importance of such integrated, community-led, and sustainably financed conservation models, with Tunari National Park standing as a beacon of hope for the future of Andean ecosystems.