Post on 16-Oct-2021
S O C I A L R E S P O N S I B I L I T Y. A N N U A L R E P O R T O F A C T I V I T I E S . C A J A M A R C A 2 0 0 4
T H E F UU T UU R E II SSSS T OOO D A Y
BBOARD OF DIRECTOTT RS
MMission: uphold compliance of theAAssociation's objectives by approving thestrategies, plans and annual budgets,including the development projects andprograms, channelling donations and/orresources for their execution.
Brant Hinze - ChairmanNicholas Cotts - Vice ChairmanRaúl Benavides - DirectorCarlos Santa Cruz - DirectorChris Anderson - DirectorPer KjK ellerhaug - Director
ADVISORYRR BOARD
Group of distinguisheedd iinnddiivviduals whichadvises the BBooard of Directtoors andExecutive Diirrector of the Associatiioon onall strateeggic issues, especially thooserelated to Cajamarca's sustainablleedevelooppment and the image conveyed tosocieetty by the Association.
RRooRRR sario Almenara DíazHomero Bazán ZuritaBeatriz Boza DibóóssManuel Bryrr cee MMoncloaEmilio Cachho GayosoBaltazar CCaravedo MolinariGuillermmo Frías MartinelliRógerr Guerra García CuevaJuliioo Marín RoRR dríguezSuusana Pinilla CisnerosPPablo Enrique Sánchez ZevallosFernando Silva Santisteban BernalÁngel Francisco Simón Piorno
05THEFUTUREIS
TODAY
AA
Message from the Chairman.
Committed to the development of Cajamarca.
Introduction.
I. Los Andes de Cajamarca.
What is sustainable development?
What is Los Andes de Cajamarca?
Vision.
Mission.
Principles.
II. Mechanisms for achieving greater development.
III. Summary of development projects under way.
a. Projects for tender.
b. Projects that can be replicated (directly allocated).
c. Projects under execution by Community
Development - Yanacocha.
d. Projects at closure and transfer stage.
IV. Inter-institutional relations and their contribution
to sustainable development in Cajamarca.
V. Administrative and financial management.
VI. Projections based on lessons learned
during ALAC's first year.
06
07
08
08
09
09
10
10
10
12
16
18
20
22
28
30
32
35
INDEXX
In March 200044, we initiated aa pparticipatory process when Asociación Los Andes de Cajamarca (ALAC) began its activities,
aimed at ccoontributing to social wweelfare and sustainable development of the region.
WeWW are aware that Cajamarca has aa large potential in natural resources: agriculture and livestock, forestry,yy tourism and
mining. WeWW believe that this producction base has the potential to evolve into economic activities thatt wwiillll pprroduce goods
with a hhigher value added, as wellll as driving the necessary funding to providing services and eensuring the traaiining of
human reesources. Therefore, it is necessary to develop competitive sectors by joining efforttss and forging commitmments
with econoommic agents, i.e. the reeggional government, local governments, businesses and develloopment institutions.
Asociación Los Anddes dde Cajamarca, a corporate entity sponsored by Minera YaYY nacocha, takes part in this major regional
objective and ever since its inception has been committed to generating sociallyy responsible entrepreneurial and
institutional capacities so as to improve the welfare of its inhabitants. This will bbe achieved through facilitating and
supporting of capacity building programs and projects that can generate human andd social capital in rural and urban zones
within the province of Cajamarca.
This first yearr has been veryy enriching in terms of institutional learning, durring which creativvee and innovative forrmms of
capacity buuiillding have been fuurrthered. ReRR sources have been assigned transspparently based onn the first tender process for
projects tthhat address social demaands and measured through specific criteriiaa, as well as throouugh direct allocation of moniees
to financce the replication of successssful projects, leveraging funds to the rregion by means ooff specific agreements.
Los AAndes de Cajamarca, which I am hhoonored to chair,rr is aware thatt the future is toddaay,yy this is what we are here for and
whhaat our commitment to Cajamarca is allll about.
MESSAGE FROM THE CHAIRMAN
Brant E. Hinze
Chairman of the Board
Los Andes de Cajamarca corporate founnddation was created to contribute to the pprocess of sustainable development of our
province by advancing the generation ooff creative initiatives in a joint participation byy government, private sector,rr civil society
and the population in general.
WeWW have deployed an important inniitial effort to define ssttrraattegic guiiddeelliinnes and the design of AALAL C organizational and operational
structure in order to create ann institution that addddresses local demand aannd the mining sectoor's corporate social responsibility
policy strategies. On this basiiss, and as a membbeer of civil society we are commmmitted to a new ssttyle of involvement based on a
culture of social responsibilliity,yy fostering the sstrengthening of the social and enntrepreneurial seccttors in productive areas with
market and competitive ppootential, both in thhe rural and urban contexts.
Within this perspectivee, we maintain forrmmal relations with public and private institutioonns, and national annd international NGOs to
support various proojjects such as thhee Cajamarca SME Linkages Program (with five projects being ddeveloped within this
framework), the Housing Improveement Project and Construction Sector SME Deveelopment, the “KKoK riwasi” jewellery
TeTT chnological Innnovation Center,rr annd the Development of the North-eastern ToTT urist Circuit, aammong others.
Additionally,,yy as a consequencee of the first tender for projects, characterized by the quality of tthhe professionals aannd institutions
that evaluaated said projects,, as well as the totally transparent and impartial definitions, we are ccoommitted, togethheer with local
institutioonns, to co-financingg four projects, whose amount has been incorporated into our 2004 budgeett.
The rresults obtained ffoor this year,rr presented in this annual report, represent an inter.rr -institutional eefffort for which I wwish to
extteend my special acckknowledgement to each and everyrr one of our partners and co-workers in this importtaant process of creeaating
ccaapacities for sustaaiinable development in Cajamarca.
COMMITTED TO
07THEFUTUREIS
TODAY
AA
THE DEVELOOPPMMENTT OOF CAJAMARCA
ViVV oleta ViVV go VaVV rgasExecutive Director
I. LOSANDESDECAJAMARCA.
The present document represents the report on the results obtained during the first
year of the Asociación Los Andes de Cajamarca. The results obtained are positive and
can be summarized by the successful implementation of the first Projects Tender:
thanks to the number of participants and transparency of the process, the execution of
the projects has shown important advances, good relations with stakeholders and a
financial administration that has implemented procedures and policies geared at the
efficient use of the resources in conformance with institutional objectives and goals.
In the following pages you will be better able to grasp the work being carried out by Los
Andes de Cajamarca for the benefit of the region, as well as its contribution to the
development of the Cajamarca community.
INTRODUCTION
09THEFUTUREIS
TODAY
WHAT IS SUSTAINABLE DEVELOPMENT?
It is satisfying the needs of the present and safeguarding the needs of future generations (Bruntland Commission, 1987). In
other words, it is development that leads to economic growth, increases the quality of life and social welfare in a
permanent and stable manner over time.
WHAT IS LOS ANDES DE CAJAMARCA?
It is a corporate entity sponsored by Yanacocha committed to contribute to Cajamarca's sustainable development by
providing an impulse to the creation of businesses and institutional capacities in order to improve the welfare of the
Cajamarca population within a socially responsible environment.
Los Andes de Cajamarca began its activities on March 29th, 2004 with a set objective: that in closing the mining activities,
a number of development alternatives in the tourism, agribusiness, handicrafts and construction sectors, among others,
will have been consolidated at the level of local SMEs.
In order to achieve this goal, Los Andes de Cajamarca co-finances innovative programs and projects that have a clear link
to strategies for sustainable development, selected by an annual project tender. It also allocates part of the funding to
replicate successful projects.
THE FUTURE ISTODAY
VISION
WeWW will be a corporate foundation with prestige and credibility,yy managed with the participation of the different sectors
contributing in forging Cajamarca's own sustainable development.
MISSION
WeWW are committed to the generation of business and institutional capacities aimed at improving the welfare of the
Cajamarca population.
WeWW will drive a business and institutional capacity-building program in the sectors with competitive and market potential in
the rural and urban zone of the region to contribute to the welfare of Cajamarca population.
WeWW have a commitment to contribute to the sustainable development of Cajamarca, helping to generate social and human
capital with the participation of community,yy government and private sector.rr
PRINCIPLES
Carry out our activities with ethics and transparency,yy in an efficient and effective manner.rr
Foster participation of the private sector,rr government and civil society.yy
ReRR spect local cultures.
ReRR spect the environment.
Fairness.
•
•
•
•
•
13THEFUTUREIS
TODAY
The most important activities undertaken during 2004 are the following:
Projects Tender Process.
The invitations to the first projects tender process were sent on July 1st, 2004.
30 profiles were submitted, out of which 16 were developed at project level, 8 of
these were finalists and 4 were selected after a transparent and rigorous
evaluation and selection process with the participation of consulting companies
and independent professionals.
The projects selected were: Productive development of the Caesalpinea spinosa
Kuntze (spiny holdback) as a model of organic and agro-industrial eco-business
venture, promotion of the planting of chamomile and its transformation into
essential oils for revenue generation and job creation in the province of
Cajamarca, technology-assisted production of guinea pigs as an economically
feasible alternative; and competitive production of native Cajamarca varieties of
potato as a response to new market opportunities. Co-financing has been
provided by ALAC in an amount of S/. 1,042,844, with counterparty contributions
in cash and kind for S/. 1´310,679, which will benefit directly a total of 530 rural
families.
PosterfortheIProjectsTe
nder2004.
Buildingcapacitiesofmorepeople
Strategic alliances.
A number of strategic alliances have been established in three sectors: firstly, with local entities whose role is to promote
economic development and local competitiveness and that are part of the Regional Council for Micro and Small Businesses
(COREMYPE), a forum in which it actively participates, as part of the promoting group of Cajamarca Region
Competitiveness program. This program will be executed with financing from the La Libertad-Cajamarca Comprehensive
Development Program (PRODELICA). A second sector is that of development projects financing entities, such as
FONDOEMPLEO and FOMIN/BID, having underwritten agreements for co-financing of projects during the next three years; at
an operative level, alliances have been made with stakeholders for the execution of development projects.
Base line study.
A base line study for the province of Cajamarca was
promoted through a representative inter-institutional
commission, the same having been produced by the
SASE consulting company. It contains valuable
information on the following aspects: preparation
methodology, geographical and historical references
for the province, results of the province and its twelve
districts base line with economic, social,
environmental, and political institutional indicators,
with digitalized theme and geo-referenced maps.
The information containing the base line study was
published and distributed among the Cajamarca
institutions and organizations. The methodology will be
transferred to public and private entities who display
interest in its updating, and inter-institutional
agreements will be subscribed to that effect.
15THEFUTUREIS
TODAY
LosAndesdeCajamarcaportal:allthe
inform
ationonInternet.
Implementation of communications strategies.
The communications strategies are aimed at creating and
promoting the Association's image among the main
stakeholder groups, as well as providing precise
information about their ends, objectives, and activities.
The chief activities being promoted are:
Preparation of 2004 communications plan (objectives,
logo design and motto).
Design and production of information material
(brochure, bulletin).
Design and development of official Website:
www.losandes.org.pe
Strategy for promoting and spreading information on
the first projects tender.
Organization of events with stakeholders.
•
•
•
•
•
17THEFUTUREIS
TODAY
Working forourcommunityDuring 2004 three types of projects have been executed: projects tendered under the first summons carried out by Los
Andes de Cajamarca, replicable projects (directly assigned) and projects whose execution was begun with the Community
Development department of Minera Yanacocha and have continued under ALAC supervision.
Results at December are explained as follows:
Jobs and wages
804 4,575
PRINCIPAL IMPACTS GENERATED BY PROJECTS(at 31 December, 2004)
Organizationsinvolved
Revenuegeneration (US$)Jobs Wages Number Funds placed ($)
2´918,939 7,960 90 422 513,490 49
TrainingN° Persons N° Businesses
Credits granted
150familiesbenefitedbythisproject.
PROJECTS FOR TENDER.
Four projects have been financed under this scheme, two of which began execution in December of 2004:
Technology-assisted production of guinea pigs as an economically feasible alternative.
It is part of the group of projects that won the first tender and its purpose is to increase the production and productivity
of guinea pig breeding among 150 families in the zones of Aliso Colorado and Quishuar Corral by means of the following
expected results: 150 training modules installed and
operating, a processing centre, training for 150
producers on aspects inherent to management and
breeding of guinea pigs, 120 credits granted, a guinea
pig producers' association established, operating and
marketing 30,000 guinea pigs by the end of the project.
The results expected are aimed at achieving the
project's sustainability by means of capacity
strengthening and mechanisms for market linkages.
The advance of the project with respect to its
timetable for 2004 is 92%, corresponding to the
installation of 23 modules out of 25 foreseen for guinea
pig breeding. The overall advance represents 3%, since
activities only began in the month of December.
a.
Financing sources Total Budget Aggregate of executed Budget for 2005
ALAC
FONCREAGRO
TOTAL
S/. 262,500.00
S/. 830,289.04
S/. 1´092,789.04
S/. 100,438.36
S/. 108,787.50
S/. 209,225.86
S/. 162,061.64
S/. 599,882.50
S/. 761,944.14
19THEFUTUREIS
TODAY
Productive development of spiny holdback.
This is a project that won the first tender, whose
objective is produce sustainable jobs and revenues on
the basis of the planting of 62,500 spiny holdback
seedlings with guaranteed genetic quality, originating
from selected trees, complementing the management
of the trees with pruning, spacing and plant health,
thus increasing production from 12 to 24 kg/year.
The project will also contribute to build capacities of 50
farmers in planting techniques, forest management and
use of fruit, as well as of two organizations able to
operate as businesses.
The project displays an advance of 14% due to the fact
that it began its activities in December of 2004 and
should be completed by October of 2007.
Spinyholdbackseedlings.
50trainedin
theproductionofspinyholdback.
Financing Sources Total Budget Aggregate of executed Budget for 2005
ALAC
ADEFOR
TOTAL
S/. 257,862.50
S/. 142,540.00
S/. 400,402.50
S/. 20,892.50
S/.9,092.99
S/. 29,985.49
S/. 103,787.00
S/. 52,188.04
S/. 155,975.04
Combayo
Windows.
Violeta
Vigoexp
lainingthe
scopeoftheproject.
IntegratingtheNorth-Eastern
Tourism
Circu
it.
PROJECTS THAT CAN BE REPLICATED (DIRECTLY
ALLOCATED).
Two important projects will be executed under this
scheme:
Competitiveness of MSMEs (Micro, small and medium-
sized companies): Consolidating the development of
the North-Eastern Tourist Circuit destinations (CTN).
After having concluded the project's first phase in
March of 2004, applications were made to the
Multilateral Investment Fund (FOMIN/BID) for the
continuity of the project, obtaining its participation
from the design to the eligibility of the same at a board
meeting held in September of 2004.
It has a budget of US$ 1,318,664. It has co-financing
commitments from the Multilateral Investment Fund
(FOMIN) of the Inter-American Development Bank for an
amount of US$ 798,431, Los Andes de Cajamarca will
contribute an amount of US$ 271,833 and FONDOEMPLEO
will provide US$ 100,000. The remainder is contributions
by the companies involved. The execution of the project
will be undertaken by the Cajamarca Regional Tourism
Chamber (CARETUR Cajamarca).
The target group is made up by 200 micro, small and
medium companies of the North-Eastern Tourist Circuit
operating in the accommodation, restaurant and tour
operator sectors that will have the CTN seal. On a
complementary basis, promotion and development of
tourism macro products will take place.
b.
21THEFUTUREIS
TODAY
Increasingproductionwith1,950hectaresplantedwithce
reals.
Capacity building of cereals production in Cajamarca.
An agreement has been signed with the Foundation for Agricultural Development-FDAfor the execution of this project
that requires a budget of US$ 470,642, to be financed in the following manner: Los Andes de Cajamarca US$ 214,642 and
the National Job Training and Employment Promotion Fund will contribute US$ 256,000. A target of 1,950 hectares
planted with cereals during the project's three growing seasons, increasing the productivity of starchy corn by 125% and
of barley and wheat by 110%, generating 39,000 new wages.
PROJECTS UNDER EXECUTION BY COMMUNITY DEVELOPMENT - YANACOCHA.
The following projects are being executed under this scheme:
Cajamarca SME Liase Program.
This program's purpose is to contribute to improve production, administrative and financial management of local
micro-businesses in order to enhance their competitiveness, aiding in the expansion and diversification of their
markets. Its strategy is based on training, technical assistance, and commercial links.
The program is based on a strategic alliance with the International Finance Corporation (IFC) and technical support
from Swisscontact, Recursos S.A.C.,Aid to Artisans, Technoserve, Colectivo Integral de Desarrollo and the Institute for
Bank Training - Recursos S.A.C. consortium, in order to work on 5 projects:
Local suppliers capacity building project.
Project executed by Recursos S.A.C. It has fulfilled 97% of the goals foreseen; the most important achievements are:
21 producers of goods and services for various sectors of the area have created 567 jobs and have made new
investments for an amount of US$ 54,773. Strengthening of 10 companies through training and technical assistance
allowing them to improve their levels of investment, productivity and market diversification, achieving an initial
level of certification with CERTIPYME on internal organization standards. 14 consultants were trained to provide
business development services (SDE). Deals closed for an approximate amount of US$ 1'000,000 through the day-long
sessions and business round tables with the participation of 120 companies; this is the second year that these sessions
are successfully held, on the basis hard work aimed at bolstering institutions. The day-long sessions are one of the
activities proposed by the suppliers' strengthening program (IFC, Swisscontact, Yanacocha y Recursos S.A.C.), to allow
local companies to access better and greater practical information on their neighboring markets and on the demands
posed by the diversification of clients, products and services.
c.
1.
•
23THEFUTUREIS
TODAY
Ourhandicraftswere
admired
atinternationalfairs.
Cajamarcabusinessesmodernize
anddiversify.
Handicrafts in Cajamarca: ABC.
It began its activities in January of 2003 and will
conclude in March of 2005. This is being executed
by Aid to Artisans with the following results: 61
artisans in seven groups, one of ceramics and the
other six of Cajamarca and Chota textiles, have
been trained and have received technical
assistance provided by local and international
experts in design and production techniques,
creating 32 full-time jobs and 69 part-time ones.
The 2004 sales volume was US$ 19,846 FOB,
channelled through national exporters.
Modernization and diversification of agribusiness in
Cajamarca.
The project, executed by Technoserve, began its
activities in July of 2003 and will be completed by
May of 2005. At December 2004, its average
overall advance was 96% and the most important
results were: training and technical assistance for
18 companies, 14 of which have graduated;
US$ 47,663 in infrastructure investments by the
companies; 12 companies (80%) calculate their
costs adequately and operate legally; market
diversification and sales for US$ 1'367,343.
•
•
Business Day-long
sessions and Round
Tables: in 2004
deals were closed
for an amount of
approximately
US$ 1'000,000.
Deve
lopingmanage
mentca
pacities.
Access of SMEs to the financial system.
The Project is executed by the Institute for Bank
Training working in a consortium with Recursos
S.A.C. since March 2004 and will be completed in
August of 2005. Its average aggregate execution at
December was 50% and the results achieved were:
40 companies diagnosed, 16 financial consultants
trained, and preparation of the financial guide for
SMEs and dissemination of best practices at a
financial day session.
Access of micro-businesses to the financial system.
The project was executed by the Colectivo Integral
de Desarrollo from March of 2004 and will end in
March of 2005, displaying an overall advance in
execution of 78% at December 2004. The most
important results were: 64 micro-businesses
diagnosed, 19 consultants trained in micro-business
management, 25 entrepreneurs are being trained
and nine companies receive technical assistance
through the project in order to allow them to
access the financial system.
•
•
Financing Sources Budget for 2005
YANACOCHA
INTERNATIONAL FINANCE CORPORATION - IFC
TOTAL
Total Budget
US$ 46,100
US$ 1´500,000
US$ 1´546,100
Aggregate of Executed
US$ 45,083
US$ 1´305,800
US$ 1´350,883
US$ 1,000
US$ 194,200
US$ 195,200
25THEFUTUREIS
TODAY
Exclusive
design
erjewels.
SamplesofCITEproduction.
CITE Koriwasi jewellery.
This project has been under execution since October of 2003 and will conclude in October of 2006. The average overall
advance is 29%, with the most important results being: 107 trained in jewellery production, 16 businesses receiving
technical assistance, participation in five exhibitions, three commercial events in the national context, one
commercial event in Colombia, and US$ 7,260 in sales of intermediate products.
2.
Financing Sources Total Budget Aggregate of Executed Budget for 2005
YANACOCHA
MINISTRY OF FOREIGNN
TRADE & TOURISM
TOTAL
US$ 1´000,000
US$ 150,000
US$ 1´150,000
US$ 697,894
US$ 78,901
US$ 776,795
US$ 300,000
US$ 50,000
US$ 350,000
Improvingtheyield
indairyproduction.
Modernization of dairy production in Cajamarca valley (PROPIAGA).
The project's objective is to improve the yield of dairy cattle in Cajamarca valley through the production and
marketing of the “Total Blended Ration” (RTM) as a complete fodder administered in a system of stable farming.
The project is going through a stage of redesign and
reprogramming of activities based on three
conditions proposed by FONDOEMPLEO: the first,
referred to the technical and economic
reformulation of the project, including upgrading the
production process for the RTM, which has been fully
executed; the second, that the auditors' observations
be lifted has been fully complied with, and the third,
that 60% of the contributions pledged by the partners
should be completed, currently under resolution.
The most important advances made are: construction
and implementation of the feeding centre, which at
December 2004 presented a 20% advance and
training of 25 dairy farmers in the use of new
technologies in the intensive breeding of dairy
cattle, representing a 13% advance of the total
planned.
3.
Financing Sources Total Budget Aggregate of Executed Budget for 2005
YANACOCHA
FONDOEMPLEO (DONATION)
FONDOEMPLEO (LOAN)
TOTAL
S/. 958,918
S/. 600,000
S/. 824,566
S/. 2´383,484
S/. 569,974
S/. 192,355
S/. 492,164
S/. 1´254,493
S/. 388,944
S/. 407,645
S/. 331,402
S/. 1´127,991
Buildingabetterfuture.
27THEFUTUREIS
TODAY
Microfinancing of housing and development of
small businesses in Cajamarca (CHF).
The project began operations in July of 2003 and will
be completed by December of 2007. Its aim is to
contribute to improve housing conditions and access
to the same based on the offer of a suitable housing
model and technical assistance for self-construction.
The project displays an overall 33% progress with
respect to total goals that must be achieved by
December 2007. The most important achievements
are: placement of 422 loans for US$ 513,490 of the
portfolio disbursed, benefiting 5,389 persons directly
involved; 1,802 families, 270 micro-businesses and
3,317 construction workers. Non-performing loans
are 1.97%, a low rate taking into account the risk
level of the sector towards which the credits are
aimed.
4.
Financing Sources Total Budget Aggregate of Executed Budget for 2005
YANACOCHA
COMMUNITY, HABITAT &
FINANCING (CHF)
TOTAL
US$ 813,000
US$ 2´000,000
US$ 2´813,000
US$ 813,000
US$ 130,000
US$ 943,000
_
US$ 500,000
US$ 500,000
PROJECTS AT CLOSURE AND TRANSFER STAGE.
These projects have completed execution and are in the process of financial closure, and will be subsequently transferred
to the corresponding entities:
Comprehensive management of solid wastes in Baños del Inca.
The project was completed in October 2004 with 100% of the goals for that year being met as well as 103% of the
project's total results, the most important achievements being: construction and management of the facilities for
handling of solid wastes; 255 families take part in neighborhood committees, a reduction of 10% was achieved in solid
wastes at their final destination, 55 families improved their diets by eating greens produced in their own vegetable
gardens. The project has also contributed to the
institutional strengthening and capacity-building of
four organizations, 210 teachers and 500 students in
the design, selection and management of solid
wastes, which will contribute toward the
sustainability of the project.
The project was executed by the Association for
Local Development (ASODEL) and will be delivered to
the District Municipality of Baños del Inca for its
administration, the latter having acquired machinery
for the collection of solid wastes. The operation of
the facilities will be carried out with the
participation of independent recyclers.
1.
Financing Sources
YANACOCHA
AMERICAS FUND
COUNTERPARTY: ASODEL, MUNICIPALITY AND BENEFICIARIES
TOTAL
Total Budget
US$ 100,000
US$ 100,000
US$ 37,350
US$ 237,350
Aggregate of Executed
US$ 100,000
US$ 100,000
US$ 37,350
US$ 237,350
Compost
produce
ratfullca
pacity.
29THEFUTUREIS
TODAY
Financing Sources Total Budget Aggregate of Executed Budget for 2005
YANACOCHA
AMERICAS FUND
TOTAL
US$ 59,940
US$ 59,794
US$ 119,734
US$ 59,940
US$ 41,496
US 101,436
_
US$ 18,298
US$ 18,298
Eco-tourism as a source of sustainable development for Cajamarca.
The objective of the project is to promote an eco-tourism and trekking project in Cajamarca that can contribute toreactivate trade, handicrafts, agriculture, services and the fostering of local cultural values, the rescue andconservation of archaeological remains, trying to integrate tourist circuits to the great Inca road within a 60 km.stretch to establish four trekking routes, hiking and eco-tourism.
The project displays a compliance with goals of 60% and has been executed by the Society for the Rescue of theCajamarca Ecosystem (APREC).
Program for environmental education.
The project was executed by the Peruvian Foundation for Nature Conservancy (ProNaturaleza) and its objective is tocontribute to the training of teachers and students within the area of influence of Yanacocha's operations who will besocially responsible and adequately informed. Its strategy focussed on the training of teachers in the educationalcentres in urban and rural areas. The results achieved are: 184 teachers trained in environmental subjects andconservation for the curricular development of the same; 6,358 students trained in recycling, bio-orchards, and raisingof smaller farm animals; 33 schools received guides for teaching and for practical projects applicable to educationalcentres.
2.
3.
Qap
aqÑan
,deve
lopmentroute.
31THEFUTUREIS
TODAY
In addition to their specific concrete objectives, the various projects promote the strengthening of institutional and human
capacities of those involved, thus contributing to increasing the human and social capital stock, fundamental elements for
sustaining development processes.
Together with other stakeholders a number of events have been organized, co-organized, and supported, among which
were the presentation of the book “Social Responsibility: Fundamentals for competitiveness and sustainable development”
with the presence of authors Matilde Schwalb and Oscar Malca from the Universidad del Pacífico, a presentation in the
“Mining and Development” workshop on the role of foundations and non-profit associations in mining companies, the
“Presentation of Asociación Los Andes de Cajamarca” workshop, the formulation of the Regional Council for SMEs' plan,
among others.
There are currently 49 stakeholder representatives in the different projects being co-financed by ALAC.
Event Location
Mining and Sustainable Development
Workshop
Strategic Alliances for Sustainable
Development Workshop
Peru 2021 - Corporate Social
Responsibility Expofair
Business Round Table 2004
Mining and Sustainable Development
Workshop: Presentation of Los Andes
de Cajamarca
Business Breakfast - Presentation of
Los Andes de Cajamarca
Signing of Agreements with the winners
of the First ALAC Projects Tender
Invitation to the Fifth Tender Fondoempleo
and signing of the agreement
for the cereals project with the FDA.
Presentation of Los Andes de Cajamarca
in the Peruvian Institute of Mining Engineers
Peru 2021 - Symposium on Corporate
Social Responsibility.
Presentation on book on Social Responsibility
Aimed at
Yanacocha supervisors
Stakeholders and entities entrusted
with project execution
Businessmen, NGO or cooperation
agencies representatives, and students
Local and nation-wide companies
Yanacocha upper management
Representatives of mining companies,
foundations and cooperation agencies
Stakeholders and project executors
Stakeholders and project executors
Businesspeople, mining engineers, students
and NGO or cooperation agency
representatives.
Businesspeople, representatives of
foundations, NGOs or cooperation agencies.
Stakeholders and entrepreneurs
Cajamarca
Cajamarca
Lima
Cajamarca
Cajamarca
Lima
Cajamarca
Cajamarca
Lima
Lima
Cajamarca
N˚ Participants
35 persons
60 persons
1,500 persons
350 persons
20 persons
50 persons
175 persons
200 persons
200 persons
350 persons
150 persons
V. ADMINISTRATIVEAND
FINANCIALMANAGEMENT.
Important administr ative activ ities carried out.
Design and implementation of ALAL C strategic guidelines and organizational
structure.
Assignment of personnel.
Implementation and equipment of facilities.
Design and implementation of accounting procedures for the institutionn and
the projects.
Orientation and training project execution teams in administrativee and
financial aspects related to the projects.
2004 Budget execution.
ALALL C budget for 2004 was US$ 2'151,100, out of which US$ 1'916,791 were
executed, i.e. 89% of the year's budget.
Finnancial Statements.
The results of the economic and financial situation of ALALL C at December 31,
2004 wwere presented in the Balance and Earnings Statement.
•
•
•
•
•
ALAC BUDGET
NOT EXECUTED11%
EXECUTED89%
US$ 234,309
US$ 1´916,791Budget
Executed
Not Executed
Total
Amount
US$ 1´916,791
US$ 234,309
US$ 2´151,100
Percentage
11%
89%
100%
33THEFUTUREIS
TODAY
ITEMIZED EXECUTION OFEXPENDITURES
Item
Projects
Implementation
Operatives
Administrative
Total
Amount
US$ 1´488,774
US$ 112,545
US$ 41,951
US$ 273,521
US$ 1´916,791
Percentage
77.67%
5.87%
2.19%
14.27%
100%
80%
70%
60%
50%
40%
30%
20%
10%
0%Projects Implementation Operatives Administrative
77.67%
5.87% 2.19%
14.27%
US$ 802,488
US$ 1´700,006
ALAC32%
COUNTERPARTY68%
PROJECT LEVERAGE
The financing of both the projects tendered as well as
those receiving direct allocations from ALAC totals
US$ 802,488, and the total co-financing by other entities
and those taking part is US$ 1´700,006, with a leverage for
each dollar financed by ALAC of US$ 2.12, equivalent to
212%.
Assets
Current Assets
Cash and Banks
Miscellaneous accounts receivable
Total Current Assets
Non-current assets
Property, machinery & equipment
net of depreciation
Total Non-current Assets
Total Assets
1´177,958
277,011
1´454,969
136,932
136,932
1´591,901
91%
9%
100%
Liabilities and Equity
Current liabilities
Accounts payable
Other accounts payable
Total Current Liabilities
Non-current liabilities
Deferred donations
Total Non-current Liabilities
Equity
Capital donations
Total Equity
Total Liabilities and Equity
15,751
2,167
17,918
1´437,050
1´437,050
136,933
136,933
1´591,901
1%
90%
9%
100%
BALANCE AT 31 DECEMBER, 2004Expressed in New Soles
Donations made
( - ) Project subsidies
Margin
( + ) Other income
( - ) Operating and
administrative expenses
Deficit/Surplus
849,597
325,409
524,188
1,849
526,037
0
100%
38%
62%
0.3%
62%
0.0%
EARNINGS STATMENTExpressed in New Soles
35THEFUTUREIS
TODAY
AA
VI. PROJECTIONSBASEDON
LESSONS LEARNEDDURING
ALAC'S FIRSTYEAR.The main lessonnss lleeaarrnneedd during the first year of management
that will sseervrr e to reformulattee some priorities and intervrr ention
strateggiiees are summarized as f olloowws:
With relation to project finance:
More specific financing credit lines to concentrate resources in strategic areas of development.
Improve the level of coordination with local public institutions.
Disseminate information and train existing public and private entities and organizations on the projects tender fund and
the formulation of projects in accordance with the criteria established in the tender rules.
With regard to the project execution and stakeholders:
Promote greater involvement in the projects of existing social organizations and public entities.
Change the monitoring focus, less control-oriented and more focussed toward a joint exercise allowing for learning by
the parties involved.
Encourage the entities entrusted with the project execution to carry out the monitoring of those involved in both the
project and its surroundings so as to enhance performance.
Take the closure plan and project transfers into account from the moment of signing the agreement in order to
contribute to suitable accountability and sustainability.
Projects must be laboratories for joint execution (mini-networking) that allow for extracting lessons learned for the
future social network aimed at the development of Cajamarca.
Increased flexibility and simplification in the presentation of financial reports and accounting by the entities entrusted
with project execution.
In the relationship with development stakeholders:
Display greater efforts with strategic actors in local development to involve them in the debate, analysis and undertaking
of joint actions for the development of the region.
Together with the participation of public sector, business sector and civil society, draft a transfer plan for ALAC toward
new institution-building that represents Cajamarca society.
At Institutional level
The first year of operations for ALAC represents an initial learning process that has allowed us to validate our intervention
strategy, organize ourselves, develop administrative and project management tools, strengthen our work team, establish
linkages and understand better the stakeholders who take part in the execution of the projects as well as the public and
private organizations involved in local development processes.
Our active participation in the various existing public forums such as the Regional Council for micro and small businesses
and the Regional Exports Commission are needed in order to deliver our contributions as well as to allow us to insert
ourselves in the province's development processes.
•
•
•
•
•
•
•
•
•
•
•
ALACTEAM.Violeta Vigo Executive Director
Flavio Flores PPre-Investment Coordinator
Ana Araujo MMoonitoring and Evaluatio n Coordinnaator
Ina Castillo Admmiinistration and Finance Coo rrddinator
Sandra Sánchez Adminniistrative Assistant
Gianccaarrlo Navarro Consultaant - Communications
Óscar Sannttisteb an Consultanntt - M onitoring andd Evaluatio n
José Ramíreezz General Serrvvrrrr ices Support
Design and layout:
Kick-Off & Asociados.
Photography:
Archives: ALAC / Yanacocha.
Printer:
Grambs Corporación Gráfica.