Published by: MAR FundThis publication should be cited as: 2016 Rodríguez, C.; P. Cabrera; A. Rivas; MJ González; C. González; (ed. Institutional MAR Fund Report 2015. 26 pp.)

Cover: Nicolle Rockstroh / with MAR Fund Dirección General de Correos y Telégrafos de Guatemala.

Text compilation: Carlos Rodríguez Olivet, Ana Beatriz Rivas, Patricia Cabrera, Damaris Eguizábal, Ximena Flamenco, Claudio González (MAR Fund), Jorge Ordóñez (FCG), Gabriela Díaz (MAR Fund), Cintia Landa (FMCN), Eduardo Rico (FB), Christine Valerio (PACT) y Enrico Gasparri (TYPSA).

Proofreading: Marta Lidia Marroquín R.Editor: Gina De Ferrari, María José González and Ingrid AriasGraphic design and layout: José Jaime Ruiz

Table of Contents

03 Letter from the President

05 Credits

07 Section 1Ten years challenging time to conserve a living and blue region

11 Section 2Protected areas: an opportunity to establish regional coordination platforms

16 Section 3Promoting and strengthening alliances and new initiatives

18 Section 4Sustainable development: a strong connection to work with local communities

20 Section 5Funding for conservation and sustainable development of the Mesoamerican Reef

21 Transparency and commitment: financial statements

22 Acknowledgements

24 Annexes06 Introduction

Ian Drysdale

Send your comments and questions to: crodriguez@marfund.org / mjgonzalez@marfund.org

We are celebrating 10 years of life of a project that at first seemed to be as fragile as thedelicate ecological balance of coral reefs.

From a conservation point of view, the urgent need to protect the Mesoamerican ReefSystem (MAR) is a matter of common sense: it is the largest cross-border coral reef in theworld and contains the second longest barrier reef on the planet. It is more than thousandkilometers long, spreads across four countries (Mexico, Belize, Guatemala and Honduras)and is an enclave of marine biodiversity and the basis for subsistence of over two millionpeople in the region.

Conservation of natural capital is an investment in our future and a matter of public interest.Its main obstacles are lack of adequate funding and limited public awareness about theamazing value of healthy and functional ecosystems to provide us quality of life.Conservation is also disturbed by political and economic instability. If we look back adecade, it is difficult to fathom how we found the courage to undertake such a complex taskand under these dire circumstances.

The last ten years have been a period of dramatic changes that have taken the world bysurprise. Due to increasing terrorist attacks in many regions, there have been growingfeelings of insecurity and distrust among citizens. Political crises and natural disasters haveresulted in an increasing number of migrants and refugees and a growing rejection of themin some nations. In our region Hurricane Katrina swept over New Orleans in 2005 andhighlighted the deep social inequalities in one of the most developed countries in the world.

In 2008 the global economy faced a painful financial crisis. Investment gurus and bankrating companies and corporations lost their credibility. In almost all countries, thegovernments used money to bail out private banks, which caused a rising inequityand anger against the international financial system and protest movements such as OccupyWall Street in the United States of America and 15-M in Spain.

In 2014 the price of oil collapsed in world markets, shaking the finances of countries likeMexico, Venezuela and Brazil and rearranging the geopolitical balance of powers in severalcontinents.

Outside our planet, the robot Curiosity found in 2012 evidence of a dry creek on Mars. ThisNASA exploration program has a cost of over USD 130 billion and underscored thecontradiction between expense and actions that are vital (the care of our planet) orimportant but non-essential such as exploration of outer space.

.

Letter from thePresident

3

All these events have had repercussions in the world, our region of influence and ourcountries, thus hampering the cross-border conservation initiative. The global financial crisisof 2008 should have slowed our progress, as few players were willing to bet on a modestregional initiative in Mesoamerica given the host of challenges in Europe, the United Statesand Asia.

And yet we moved forward. In spite of the global scenario, which now is even more complexdue to hate speech and isolation, our work in the last 10 years has led to importantaccomplishments with the support of our donors and partners who believed in the missionand vision of the MAR Fund. Our attainments are the reflection of a clear vision, definedgoals and tireless work. This has been the basis for a relationship of trust with ourbenefactors and collaborators.

With tens of thousands of hours of joint work we have achieved, among others:

• An endowment fund of USD 23 million, with additional USD 10 million to come.

• A Community Fisheries Program, which has supported the design and creation of16 fishing refuges in Mexico, Guatemala and Honduras.

• A strong initiative to consolidate an effective network of protected areas, with twodonations of EUR 5 million each.

• 45 projects supported with USD 1.3 million through the Small Grants Program toconsolidate awareness, education and conservation actions, with concurrentresources exceeding USD 2.4 million.

• Strategic alliances with the Healthy Reefs Initiative, the MAR Leadership Program,the Kanan Kay Alliance and environmental authorities in the four countries, amongothers.

And finally, one of the most valuable achievements has been our ability to build a humanteam and a governance and resource mobilization system to continue this Latin Americaninitiative of union and life.

We have engaged in this effort so that our children and grandchildren will be able to enjoythe richness of this region in harmony with its resources and its people. After just ten yearswe are witnessing the first results of our work and we can say with great pride that it hasbeen worth every minute.

Lorenzo José de Rosenzweig PasquelPresident

4

CreditsMembers of the Board of Directors of MAR Fund

Lorenzo de Rosenzweig, PresidentDennisia Francisco, Vice PresidentYvonne Ramírez, TreasurerCarlos Vigil, SecretaryJuan Bezaury, National Member for MéxicoBeverly Wade, National Member for BeliceHeidy García, National Member for GuatemalaEdas Muñoz, National Member for HondurasChrista Castro, CCAD RepresentativeGina De Ferrari, DirectorMartin Goebel, DirectorMarco Cerezo, Director

Work TeamRegional Office, Guatemala City

María José González Fuster, Executive Director Carlos Rodríguez Olivet, Strategic AdvisorClaudio González, Technical CoordinatorAna Beatriz Rivas, Project Officer IXimena Flamenco, Project Officer IIPatricia Cabrera, Administrative CoordinatorDamaris Eguizábal, Administrative AssistantEricka Lorenzo, Accounting AssistantEnrico Gasparri, Permanent Expert TYPSAEdgar Chalí, Messenger

MAR Fund

22 Avenida 0-59, zona 15, Vista Hermosa IIGuatemala 01015

Phones: (502) 2369-3188 | (502) 2369-1978

www.marfund.org | Email: info@marfund.org

Focal Points of ProyectConservation of Marine Resources in Central America

Cintia Landa Fondo Mexicano para la Conservación de la Naturaleza, A.C. (FMCN) -México

Christine ValerioProtected Areas Conservation Trust (PACT) - Belice

Jorge Ordóñez Fundación para la Conservación de los Recursos Naturales y Ambiente en Guatemala (FCG) Guatemala,

Gabriela Díaz Banegas (MAR Fund)

Eduardo Rico, Fundación Biosfera (FB) -Honduras

5

Carey Satin

The Mesoamerican Reef System (MAR) includes thelargest coral reef in the Atlantic and is part of aninterconnected network of coastal habitats and streamsalong the Caribbean basin and beyond. Its 1,000-kilometer coastline stretches from the tip of the YucatanPeninsula in Mexico to the Bay Islands in Honduras,passing through Belize and Guatemala. It is home tosome of the most impressive and vibrant waters,with an astonishing array of over 500 known species offish, some of the largest populations of manatees andsea turtles, possibly the largest known aggregation ofwhale sharks, as well as valuable concentrations ofmangroves, sea grass and corals.

One to two million people live along the coasts andislands of the MAR and depend on the health of the reefto have sustainable livelihoods. The Mesoamerican Reefis culturally diverse, with Miskitos, Garifunas, CaribbeanCreoles, , Mopans, Maya Yucatecos and Mestizos.

An effective way to address the different problems thatthreaten the Mesoamerican Reef is developing aninterconnected and functional regional network ofcoastal and marine protected areas. If properlymanaged, the resulting network, the backbone of thereef, will protect fish stocks, diverse habitats, spawningaggregation sites, aquatic resources, forest resources,recreational opportunities, and opportunities fordevelopment and growth in the ecoregion.

The Mesoamerican Reef Fund (MAR Fund) is analliance of four countries (Belize, Guatemala,Honduras and Mexico) whose mission is to inspireregional and innovative solutions to criticalMesoamerican Reef issues providing meaningful andlong-term financial support so that futuregenerations can enjoy and benefit from a thrivingreef system. It is specifically designed to attract anddistribute funds to address regional issues, allowingthe development and funding of solutions that arebeyond the mandate or capacity of localgovernments and NGOs.

The MAR Fund is currently focused on a network of 14priority coastal and marine protected areasdistributed in the four countries of the region, and onstrategic actions that directly affect protected areas,including community participation in fisheries co-management and adaptation to climate change.

Introduction

6

Carey Satin

MAR Fund

“I serve on the Board of Directors of the MAR Fund because it is a well-functioning financial mechanism... Many people are active in the

reef and it is fun to work like this .... ”

Gina De Ferrari, Director (November 2015).

Ten years have passed since the inception, and now is theideal moment to identify successes and failures, challenges andobstacles, as well as lessons learned. Learning from the past meansthere is a reflective moment to build on achievements.

Seeking and fostering synergies was not an easy task. However,significant progress has been made in a region where internationalcooperation is strategic although scarce for major existingconservation challenges; where the states with budgetary constraintsinvest technical and financial resources that, if anything, respond topriorities related to education, health and citizen security and notnecessarily to preservation of natural and cultural heritage.

One of the greatest challenges of the MAR Fund in years to come willbe leveraging financial resources at the regional level, proposingregional strategic solutions with a positive impact on the conservationof protected areas, and measurably improving the health of the reeftogether with other actors. The task is a transcendental challenge inthis changing world, where responses to climate change do notoriginate only from international summits but from local actions, withresults materializing in communities that are increasingly dependenton natural resources to survive.

The following paragraphs offer a brief description of efforts that haveallowed the vision of the MAR Fund to come true as a trustworthy andtransparent fundraising and granting mechanism, understanding thatin order to move forward it is necessary to maintain alliances andassociations with others. Supported by the international community,the MAR Fund has invested time and technical and financial resourcesin key actions including:

Section 1 Ten years challenging time to conserve a living and blue region

One of the greatest challenges of the MAR Fund in years to come will be

leveraging financial resources at the regional level.

7

Carey Satin

Carey Satin

• The MAR Fund was created precisely through an alliance of four environmental funds: Fondo Mexicano para laConservación de la Naturaleza A.C. (FMCN), Protected Areas Conservation Trust (PACT), Fundación para la Conservaciónde los Recursos Naturales y Ambiente en Guatemala (FCG), and Fundación Biosfera (FB), under the umbrella of theLatin American and Caribbean Network of Environmental Funds (RedLAC). This alliance sought to establish a regionaland long-term financial mechanism to support conservation and sustainable use of natural resources in the MAR. Nowwe can assert that the financial mechanism has been established and is being consolidated.

• Cooperation agreements between the MAR Fund and regional partners; among others, with the Tri National Alliance forthe Conservation of the Gulf of Honduras (TRIGOH), the Organization of the Fisheries and Aquaculture Sector of theCentral American Isthmus (OSPESCA) and the Cartagena Convention.

• Establishment of the Mesoamerican Reef Connectivity Network that began with the effort of the Colegio de la FronteraSur (ECOSUR), the Rosenstiel School of Marine & Atmospheric Science/University of Miami/National Oceanic andAtmospheric Administration (NOAA), and the MAR Fund.

• Long-term institutional agreement between the MAR Fund and the Healthy Reef Initiative (HRI).

• Contribution to the establishment of a network of fishing refuges in the region based on an initial series of workshopsdeveloped with Comunidad y Biodiversidad A.C. (CoBi).

Creation, consolidation and promotion of regional coordination networks and platforms

Development and promotion of tools for planning and conservation of natural resources in the Mesoamerican Reef

• In coordination with WWF, a financial model (MARFIN) has been developed to identify financial gaps in protected areas.

• As part of the Connectivity Network and through ECOSUR, a protocol for collecting larvae of reef fish has been developed, and acatalog of larvae for later identification.

• Facilitating the development of a regional strategy for the control of lionfish in the MAR region.

• Based on the methodology developed by The Nature Conservancy (TNC) and World Wildlife Fund (WWF), the tool for measuringmanagement effectiveness in marine protected areas has been improved.

• Development of a methodology to prioritize coastal and marine protected areas.

8

Ian Drysdale

Establishment and consolidation of institutional programmatic areas of the MAR Fund

• Protected Areas ProgramFourteen protected areas have received strategic, technicaland financial support, contributing to the activeconservation of a total of 10,175.52 square kilometers.

• Community Fisheries ProgramEstablishment, management and monitoring of 16 fishingrefuges in Mexico, Honduras and Guatemala (also known asnon-fishing zones, fisheries recovery areas and communitymarine reserves) has been supported.

• Reef Rescue ProgramThis program was launched in 2015 to increase theresilience and ability to recover of the Mesoamerican ReefSystem (MAR) and the environmental and cultural servicesit provides through capacity building, regulations, economicincentives and financial sustainability required to developan effective and timely restoration of coral reefs.

• Small GrantsThere have been eight calls for submission ofproposals of small conservation and sustainabledevelopment projects. 45 projects have beensupported in the four countries of the region for theamount of USD 1.3 million, leveraging USD 2.4 millionin matching funds. These calls have been supportedby a number of partners including: The SummitFoundation, NFWF National Fish and WildlifeFoundation, The Overbrook Foundation, NOAA CoralReef Program, the German Cooperation through KfW,The Paul M. Angel Family Foundation,Foundation, The Oak Foundation and the FrenchGlobal Environment Facility.

Four institutional programmatic areas have been establishedwithin the MAR Fund, focused on strengthening synergies andpartnerships to sustainably conserve and manage the network ofpriority protected areas of the MAR Fund. The programs are:

• Project Conservation of Marine Resources inCentral AmericaThis project is executed with financial support fromthe German Cooperation through the KfW. It consistsof two phases of five years and EUR 5 million each.Of the 14 priority areas (according to the 2007prioritization exercise), nine protected areas withdifferent conservation models have been technicallyand financially supported as part of this Project.

• Endowment FundThere have been three contributions to theendowment fund totaling USD 23 million. Revenuesgenerated by these contributions are intended tosupport small grants, community fisheries, ReefRescue and the MAR Fund operation.

• Institutional Management and Development ProgramMAR Fund provides financial support through differentmechanisms/projects. By the end of 2015, it had raised USD17.7 million in extinguishable funds and established anendowment fund of over USD 23 million. Distribution channelsof funds for conservation initiatives include:

Strategic planning from MAR Fund to theregion

• Several internal planning exercises of the Fund have beencarried out to guide institutional programs (Strategic Planupdated in three opportunities, Business Plan andAccounting/Administrative Manuals + Manual on the ProjectCycle for Small Grants).

• Together with TNC, WWF and HRI, the MAR Agenda forConservation and Adaptation to Climate Change was developedat the COP 16 on Climate Change in Cancun in 2010.

• Two protected area prioritization exercises for the MAR regionhave been facilitated (in 2007 and 2015). As a result of the firstexercise, a list of 14 coastal and marine protected areas wasdeveloped, distributed as follows: 4 in Mexico, 4 in Belize, 2 inGuatemala, and 4 in Honduras.

9

Carey Satin

Activities to celebrate the tenth anniversary of the creation of the MAR Fund

As a tribute to the Mesoamerican Reef and its people andbiological diversity, the MAR Fund has developed a series ofcommemorative activities to celebrate its ten years of life.Below is a summary of each activity:

Infographic. An infographic that focused on the importance ofthe MAR and several regional initiatives was produced. Thismaterial was distributed among partners and collaborators ofthe MAR Fund. It is available in:

http://esp.marfund.org/wp-content/uploads/2015/07/Spanish-

Sistema-Arrecifal-Mesoamericano.pdf

Video/music composition. In coordination with the companyCommunis and the Guatemalan singer and songwriter MagdaAngélica García, a commemorative video was produced thatincludes views and natural and cultural landscapes of theregion. The basis of the audiovisual material is the musicalarrangement called Corazón azul (Blue heart). The video canbe viewed on the web page: http://marfund.org o en el enlace:

https://www.youtube.com/watch?v=-pN2Cq7oXuE

Esta composición artística se lanzó el 25 de septiembre 2015, enel marco de la presentación de los sellos postales.

Postage stamps. In coordination with the Guatemalan PhilatelicAssociation and the General Directorate of Postal and TelegraphServices in Guatemala, 300,000 postage stamps and 1,500 sheetsof postage stamps as well as a poster and an informativebrochure have been printed as part of a commemorativepackage of postage stamps featuring images of four species indanger of extinction in the reef. The sale and distribution of thestamps had an unprecedented success due to their illustrationand design quality. The Mesoamerican reef stamps competedalong with other stamp collections in the World PhilatelicExhibition in New York, where Guatemala won the fourth place..

http://www.marfund.org/2015/07/07/postal-stamp/

Acknowledgement to the Board of Directors and the team ofthe MAR Fund. A commemorative pin and a parrotfish watercolorillustration were designed and created to honor the members ofthe Board of Directors and the team of the MAR Fund. During aninformal ceremony their professional and hard work forconservation of the region and consolidation of the MAR Fundwas acknowledged.

Story competition. The MAR Fund used virtual technology toorganize a storytelling contest for children. A total of 79 storieswere received from children and young people of all fourcountries. 15 stories expressed a genuine spirit of appreciationfor the reef and were awarded a prize in each of theparticipating countries according to the categories of thecontest. A virtual book containing theses stories was edited andpublished in:

http://esp.marfund.org/2015/07/07/libro-conmemorativo-virtual-

historias-del-arrecife10aniv/

Maya Ceremony. In harmony with the spirit of the Mayancosmovision and with the attendance of partners and friends ofthe MAR Fund in Mexico, Belize, Guatemala and Honduras, acosmogonic ceremony was held on the beach of Punta de Palma,Izabal, Guatemala. The purpose of this activity was to thankMother Nature for the natural, cultural, spiritual and economicbenefits the reef provides to many inhabitants of the MAR regionand worldwide. The celebration was lead by Tatas Félix Sarazúaand Orlando Tay, spiritual guides of the Association, whoheld the ceremony on an Imox day (day of the rain and waterspirit)..

510

An update of the prioritization was facilitated in 2015,including an update of the methodology, which resulted in anew list of 14 protected areas that are added to the network ofintervention areas of the MAR Fund (for the latter, the MARFund will develop a fundraising strategy).See map 1.

Map 1. Network of priority protected areas of the MAR Fund

“The MAR Fund is a unique organization that has served in the region for ten years and I think it will be there for many more years because it has performed great actions.”

Dennisia Francisco, Vice President of Board of Directors (November 2015).

Section 2 Protected areas: an opportunity to establish regional coordination platforms

11

Carey Satin

The key objective of the MAR Fundand the driver of its programs- is thestrengthening of a network of prioriritycoastal and marine areas throughtechnical and financial suppport forthe application of bettermanagementpractices in each supported area.

In 2015 the MAR Fund Protected AreasProgram disbursed USD 1.1 million(from the project Conservation ofMarine Resources in Central America,Phases I and II) to support workperformed by the four countries of theregion in the nine intervention areas.The conservation actions supportedhelped to strengthen inter-institutionalcoordination for the management ofnatural resources, in pursuit of anincreased involvement of civil society,academia, private sector and stateactors. Community development hasalso been supported throughsustainable economic initiatives andintensified control and surveillance intarget areas of the reef. Following someoutstanding achievements of eachsupported area, are include.

512

Phase 1

Yum Balam Flora and Fauna Protected Area, Mexico

• Establishing a GIS unit for informationanalysis.

• Starting the process of drafting aCommunity Development Strategy forthe area.

• Creating 46 aquatic and terrestrialmonitoring and surveillance trailswith support from PROFEPA, SEMARand CONAPESCA.

• Designing biological monitoringprograms for: manatee, sea turtle,water quality, migratory birds, andcrocodile.

• Involving 755 children, youth andadults in different environmentaleducation activities carried out in2015.

Port Honduras Marine Reserve, Belize

• Creating 692 water trails, an outcomeof implementing the control andsurveillance plan.

• Strengthening the research andmonitoring program, which yields datathat reinforce management decision-making in the area.

• Training four community members inmonitoring and as communityresearchers.

• Supporting financial-administrativecapacity building of women in PuntaNegra and Punta Gorda to developalternative economic activities.

• Repairing the sub-station on WestSnake Key, thus increasing thepresence of personnel in the protectedarea.

• Supporting financialsustainability through the to

program.

Punta de Manabique WildlifeRefuge, Guatemala

• Developing 54 control and surveillanceactivities and using the Inter-Institutional Operations Center (IOC) asthe main field station.

• Providing diving training to four parkrangers to support the monitoringprogram.

• Creating the Support Committee for theRVSPM with eight partner organizationsthat meet bi-monthly.

• Drafting on a participatory basis theCommunity Development Strategy forthe protected area.

• Including the communities of EsteroLagarto and Laguna Santa Isabel astourist destinations in the Izabal areatourism network.

• Publishing the Regulations of theAdvisory Council of the RVSPM, whichprovides the legal framework to startimplementing it.

• Strengthening the Working Group toimplement the Agreement on FisheriesRecovery Areas, consenting to addressthe recommendation of expanding thefishing refuges of Bahia La Graciosa tothe mangrove to achieve ecosystemconnectivity.

MAR Fund

MAR Fund

Ana Giró

MAR Fund

MAR Fund

Sandy Bay West End Special Marine Protection Zone, Honduras

• Installing 15 fishing buoys, 6 demarcation and maintenancebuoys to diving buoys, and signaling buoys on navigationchannels. These buoys inform and organize tourist activitiesin the protected area.

• Carrying out 365-day patrols with matching funds as part ofthe control and surveillance program.

• Implementing the water quality-monitoring program.

• Providing professional diving training to 20 local peoplethrough the program Protect Our Pride (POP).

• Developing the beekeeping project in the community ofCorozal, including the plant to process this product: 661bottles of packaged product.

• Building a mini handicraft center for the RoatánCrafts group (Mujeres Artesanas de Roatán, MAR), whodevelop 13 craft products that are sold mainly in cruisecenters.

Phase 2

Manatee Sanctuary State Reserve, Mexico

• Refurbishing the facilities of theMarine Mammal Care Center (Carma).

• Renovating and providingmaintenance to the multipurposeroom of Carma for educationalactivities, courses and meetings.

• Implementing 24 aquatic and 60terrestrial trails with matching fundsas part of the Control andSurveillance program, establishinglinks with government institutionssuch as CONAPESCA, SEMAR andPROFEPA.

• Providing fire-fighting training to 30individuals from the communities ofLaguna Guerrero, Raudales andCalderitas as part of the communityforest fire-fighting brigades.

The Manatee Sanctuary was declared as a natural protected area (NPA) in 1996, under the category of Ecological Conservation Zone (ECZ) Manatee Sancturary, by the government of the state of

Quintana Roo, Mexico.

Phase II MAR Fund report13

SEMA/RESM

BICA Roatán

514

Corozal Bay Wildlife Sanctuary, Belize

• Restoring a boat and purchasing necessary equipment toreinforce daily operations in the protected area, the controland surveillance program, and the research and monitoringprogram.

• Developing 23 patrols as part of the implementation of theControl and Surveillance Plan.

• Providing monitoring training to six community researchers(five male and one female) to be part of the communityresearchers program.

• Awareness raising among youth and adults on the issue ofclimate change and the importance of sustainability.

Rio Sarstun Multiple Use Area, Guatemala

• Purchasing office and field equipment for control andsurveillance activities and biological monitoring.

• Training seven park rangers on the use of forestequipment, and locating and identifying flora species andbiological diversity.

• Implementing the Control and Surveillance Plan withgovernment institutions to increase institutional presencein the area.

South Water Caye Marine Reserve, Belize

• Acquiring the necessary equipment to strengthen dailyoperations in the protected area and the environmentaleducation program.

• Implementing 542 water patrols as part of the Control andSurveillance Plan.

• Awareness raising among 1,800 students, during seven fieldtrips to the protected area, about the importance of marineecosystem protection and conservation.

Turtle Harbour Rock Harbour Special Marine Protection Zone, Honduras

• Renovating the BICA Utila visitor center for better attention tovisitors and to receive volunteers.

• Carrying out four workshops aimed at the private sector,NGOs and government, socializing the regulations of the BayIslands Marine National Park as well as environmentallegislation.

• Development of two to promote the capture andmanagement of lionfish, with the participation of 15 divingteams.

Wildtracks

PACT

Fundaeco

MAR Fund

RegionalBaseline of Management Effectiveness Assessment in

the five protected areas

With support from the project Conservation of Marine Resources in Central America, Phase II,the MAR Fund prepared an analysis of the socioeconomic, biological and governance indicatorsfor an effective management of the five protected areas on which this phase is focused. Thisanalysis establishes the effectiveness baseline with the following results:

• Manatee Sanctuary State Reserve, Mexico: with an overall score of 0.60 and a Regular/Acceptable rating as it is in the upper limit of the Regular range (0.40 - 0.60) and in the lower limit of the Acceptable range (0.60 - 0.80).

• Corozal Bay Wildlife Sanctuary, Belize: with an overall score of 0.65 and an Acceptable rating (range: 0.60 - 0.80).

• South Water Caye Marine Reserve, Belize:: with an overall score of 0.62 and an Acceptable rating (range: 0.60 - 0.80).

• Rio Sarstun Multiple Use Area, Guatemala: with an overall score of 0.59 and a Regular rating (range: 0.40 - 0.60).

• Turtle Harbour Rock Harbour Special Marine Protection Zone, Honduras: with an overall score of 0.57 and a Regular rating (range: 0.40 - 0.60).

Carey Satin

15

“Coral reefs belong to the most important assets of the four countries. But these assets are being destroyed for different reasons and we forget that they are an important resource for future development in the region [...]. It

is a shared region and thus there has to be a regional response.”Carlos Vigil, Secretary of the Board of Directors of MAR Fund (November 2015).

During 2015, the MAR Fund followed up inter-institutional coordination activities at each intervention level(government, civil society, academia partners, local community sector and others) to conserve the reef. At least fivealliances continued strengthening their regional efforts.

Section 3 Promoting and strengthening alliances and new initiatives

IanD

rysdale

Tri National Alliance for the Conservation of the Gulf of Honduras (TRIGOH)

The members of this alliance formed a scientific technical groupincluding one person from each of the following organizations: TIDE(Belize), FUNDAECO (Guatemala), CCO and PROLANSATE (Honduras),and they defined common biological indicators for fish refugesestablished within the Gulf of Honduras. These indicators are:coverage and coral reef species, mangrove forests, sea grass,parrotfish and lionfish. They also designed an accurate and up-to-date interactive database of scientific information on the aboveindicators. In December 2015, TRIGOH organized the Sixth Tri NationalForum of Fishermen of the Gulf of Honduras. During this forum, theprotocol tool developed for use in fishing recovery areas of the Gulfof Honduras was socialized.

MAR Connectivity Network

The Fourth Mesoamerican Connectivity Exercise (ECOME) hasbeen implemented simultaneously in ten protected areasdistributed across the four countries. The participatingprotected areas have improved their sampling techniques andpartners have been empowered by the process. As a result ofthese exercises, key spawning areas have been identified, suchas the Yum Balam Protected Area for Flora and Fauna in Mexico.

516CONAP

TRIGOH

Regional Strategy for Lionfish Control

In each MAR country specific actions have been taken for thecontrol and management of lionfish. In Guatemala, theNational Council of Protected Areas (CONAP) set up a team ofprofessionals in Guatemala City that started concrete actionssuch as gastronomic contests and environmentaleducation in the Punta de Manabique Wildlife Refuge throughits Technical Unit in Puerto Barrios. In Belize several activitiescarried out by the Fisheries Department with the support ofthe NGO Blue Ventures included training for 11 biologists onlionfish monitoring methods, which have been used in fivemarine reserves yielding the first accurate density estimate oflionfish in Belize.

Reef Rescue Initiative

This initiative is supported by the German governmentthrough the KfW through a EUR 7 million endowment fundand will be implemented by the MAR Fund and the CentralAmerican Commission for Environment and Development(CCAD) with the participation of the four countries thatshare the reef. A Technical Committee for the Project hasbeen established and investment of the initial capital hasstarted in 2015.

Manatee Regional Monitoring Initiative

The first Regional Workshop on Manatee Monitoring andConservation has been held in the MAR with the aim toidentify manatee monitoring and management needs, with aview to develop regional monitoring. The meeting served asa framework to present the results of air monitoringconducted in 2014 simultaneously in Mexico, Belize andGuatemala by LightHawk. As a result of the workshop a long-term air-monitoring plan will be drafted for the fourcountries of the MAR region.

Oceanus, A.C.

17

Giacomo Palavicini

MAR Fund

“I have been involved in the MAR Fund since its inception. I believe that the Fund is one of the most successful regional conservation projects in the world [...]”

Juan Bezaury, National Member for Mexico (November 2015).

The MAR Fund has provided strategic, technical and financial support for the consolidation of regional and localcoordination bodies. This is one of the most effective means of strengthening conservation actions in the protectedareas of the Mesoamerican Reef.

Section 4 Sustainable development a strong connection to work with local communities

IanD

rysdale

In Port Honduras, Belize, TIDE has strengthened andconsolidated two mechanisms to enhance communityparticipation: the Port Honduras Marine Reserve AdvisoryCommittee and the Committee on Access to ControlledFishing. As well, actions have been taken to implement thecommunity development strategy and projects have beenimplemented for alternative income generation. TheScholarship Program for children of fishermen provides long-term benefits to young people, as they acquire skills that willempower them for a better future and for job opportunitiesoutside fishing.

In the Punta de Manabique Wildlife Refuge in Guatemala,both the Work Group for the Implementation of theAgreement on Fishing Recovery Areas and the SupportCommittee of the Technical Unit of the National Council ofProtected Areas (CONAP) have continued to promoteparticipatory governance in the protected area. Organizationssuch as Operación Bendición and ASOPROGAL have becomedirect allies of CONAP in social aspects.

As a result of the devised CommunityDevelopment Strategy, participatorydevelopment of community agendashas been promoted. This will allowfocusing investment efforts andtechnical support on communitygroups. As well, the CommunityDevelopment Committee (CODECO)was set up and the primary schoolwas rehabilitated in the communityLa Graciosa.

The Alliance for Environmental Lawand Water (ADA2) has made asignificant effort to put intoperspective the importance of solidwaste treatment and it has promotedthe exchange of experiences betweenthe municipalities of Izabal and otherdepartments of Guatemala, such asSan Marcos. The municipality ofPuerto Barrios has gradually becomean important decision-makingpartner within the Support Committeein Punta de Manabique, as well as inthe development of the master planof the protected area.

The Consultative Council of theSanctuary of the Manatee StateReserve is composed of multipleactors interested in the area whowork together to make decisions forthe benefit of the management andadministration of the protected area.

Elisa Areano

518

Ian Drysdale

In the Rio Sarstun Multiple Use Area in Guatemala, atotal of 12 representatives of communities,committees and government institutions participate inthe Local Executive Council (CEL). One of the priorityapproaches is the need to design an internalregulation to legitimize the process of formation ofthis council.

The group of Female Entrepreneursof Utila, established in 2014 as aresult of the initiative of both Utilafemale inhabitants on the mainlandand foreign female residents, wassupported by the Institute ofEnvironmental Law of Honduras(IDAMHO) to begin its legalizationprocess. This group producesvarious products: jellies, carpets,hats of recyclable materials, amongothers.

In the Corozal Bay WildlifeSanctuary, six communityresearchers (five male and onefemale) have been trained throughthe community researchersprogram on water qualitymonitoring, fish catch assessment,bird sampling, manatee and seagrass sampling.

19

Ian Drysdale

Ian Drysdale

Ian Drysdale

The Bay Islands Marine National Park (PNMIB) has aTechnical Committee and sub-committees on eachisland, which support decision-making, shareinformation, review documents and help toregionalize efforts to protect the park. The committeeis composed of: BICA (Utila, Guanaja, Roatán), RoatánMarine Park, Municipal Environment Units, HealthyReefs for Healthy People, Honduras ForestConservation Institute, Marine Studies Center, and theBay Islands Foundation.

In the South Water Caye Marine Reserve, a protectedarea in Belize, the Advisory Council operating since2012 continues to strengthen itself as a transparentdecision-making mechanism for the protected area.

In Turtle Harbour Rock Harbour Special MarineProtection Zone in Honduras, continued efforts havebeen made regarding the fishermen association ofCayitos de Utila, in collaboration with the Municipalityand the Center for Marine Studies; the re-election ofthe Board of Directors of the Associationenabled a positive approach. In addition, 80 artisanalfishing licenses have been delivered in the Cayitosand Utila centers. The Marine Research Center (CEM)and the General Fishing Department (DIGEPESCA), inpartnership with the municipality of Utila, started thisaction.

“Solutions to the problems of the reef must be addressed regionally [...]. Collaboration among all countries is needed and that is why I like the MAR Fund, because it is a mechanism created to join efforts at the regional

level [...]. Four countries work together and reflect on how to save this treasure of the planet.”

Marco Cerezo Blandón, Director of Fundaeco (November 2015).

The investments made by the MAR Fund and its strategic partners in the Mesoamerican Reef are part of the vision tocreate a long-term, reliable and transparent mechanism to finance conservation activities that will provide well-being to the population in the region.

Section 5Funding for conservation and sustainable development of the Mesoamerican Reef

Elisa Areano

Endowment fund

The endowment fund was established with generous contributions from both theGerman Cooperation through the KfW and the French Global Environment Facility(FFEM). By 2025, the goal of the MAR Fund is to have a USD 50 million fund toprovide reliable funding for strategic conservation objectives in the region for thenetwork of priority protected areas and key conservation initiatives with a regionalvision.

Annual Fundraising Campaign

In 2015 the financial contributions amounted to USD 3,027,860. These revenueswere invested to support the creation and management of fishing refuges, theproject Conservation of Marine in Central America, the Small Grants Program, theprojects that the MAR Fund manages for strategic partners in the region, and theoperation of the Fund.

The programmatic investments of the MAR Fund in 2015 are summarized in thediagram blow:

The MAR Fund has become a key playerin funding short, medium and long-termconservation actions in the MAR region.This has been possible thanks to thegenerous support and trust of variousdonors and international cooperationpartners. It is important to mention TheSummit Foundation, an donor ofthe MAR Fund that has trusted the ideaof a regional financial mechanism andhas supported the establishment andstart-up operations of the initiative.

It is also important to highlight thecommitment of the German Cooperationthrough KfW, which has providedimportant financial resources for theconservation and sustainable use ofnatural resources in the MAR. Other keydonors include the French GlobalEnvironment Facility (FFEM) andfoundations such as Oak Foundation,The Overbrook Foundation, andNational Fish and Wildlife Foundation,among others.

1% Priorization Marine

Protected Areas Process

14% Small Grants Program

/Fish Refuges

21% Grants administrated for

partners in the Region (HRI, Oceanus, A.C., Connectivity Network)

63% "Conservation

of Marine Resources in Central America" Project

520

The firm Velasco, Sarat y Asociados, a member firm of Kreston International, carried out theexternal audit of the 2015 period. It ruled that the financial statements of the Mesoamerican ReefFund Inc. (MAR Fund) present a reasonable and positive situation in all material respects regardingto its financial situation.

Transparency and commitment: Financial Statements

21

ASSETS 2015 LIABILITIES AND NET ASSETS 2015

CURRENT: CURRENT:

Cash 528,462$ Accounts payable 16,519$

Advances 16,255 Total liabilities 16,519

Current assets 544,717 NET ASSETS

INVESTMENTS 22,496,021 Net assets 22,496,021 Accumulated excess 342,394

FURNITURE AND COMPUTER (Deficit) Surplus of the year 185,862 EQUIPMENT 58 Total Net assets 23,024,277

Total Assets 23,040,796$ Total Liabilities and Net Assets 23,040,796$

As of December 31, 2014 and 2013(Expressed in US$)

MESOAMERICAN REEF FUND

BALANCE SHEETS

2015

INCOME

Income from donations 3,027,664$

PROJECT EXPENSES (2,841,866)$ 185,798$

OTHER INCOME

Other (expenses) income -$ Bank interests earned 64$

64$

Net (deficit) surplus of the year 185,862$

(Expressed in US$)

MESOAMERICAN REEF FUND

STATEMENT OF INCOME AND EXPENSES For the year ended December 31, 2014 and 2013

x

Acknowledgements

Our deep appreciation also goes to government institutions collaborating with us::

• Comisión Centroamericana de Ambiente y Desarrollo (CCAD)

• Organización del Sector Pesquero y Acuícola del Istmo Centroamericano (OSPESCA)

• Secretaría de Medio Ambiente y Recursos Naturales, México (SEMARNAT)

• Comisión Nacional de Áreas Naturales Protegidas, México (CONANP)

• Comisión Nacional de Acuacultura y Pesca, México (CONAPESCA)

• Ministerio de Bosques, Pesca y Desarrollo Sostenible de Belice

• Departamento de Pesca de Belice • Consejo Nacional de Áreas Protegidas,

Guatemala (CONAP)• Ministerio de Ambiente y Recursos

Naturales, Guatemala (MARN)• Dirección de la Normatividad de la Pesca

y Acuicultura en Guatemala (DIPESCA)• Secretaría de Medio Ambiente en el

Despacho de Recursos Naturales, Honduras (SERNA)

• Instituto de Conservación Forestal (ICF) • Dirección General de Pesca y Acuicultura,

Honduras (DEGEPESCAH)

The support of many institutions contributes toimplementing MAR Fund initiatives, programs andprojects and thus, to improving the health of the reef andthe lives of people who depend directly or indirectly onits conservation. We thank the following organizationsand foundations that supported us throughout 2015:

“The life of fishing communities and of communities in the surrounding area depends on the Mesoamerican Reef.”

.

Walking for ten years, guided by the same vision, in the same direction, in search of new and better solutions to facethe threats and challenges in the Mesoamerican Reef has been an interesting and exciting task for the members ofthe Board of Directors, the team and partners and allies of the MAR Fund. Gratitude for all the work done togetherduring this time cannot be expressed in a few lines. However, we express genuine appreciation to those who havedevoted their love and professionalism to MAR, and who, above all, have trusted and visualized opportunities toinvest in a region full of life.

.

Yvonne Ramírez, Treasurer of the Board of Directors (November 2015).

522

• Clinton Global Initiative• Global Giving Foundation• German Government through KfW• JRS Biodiversity Foundation• National Fish and Wildlife Foundation• Oak Foundation• Paul M. Angell Family Foundation• The Overbrook Foundation• The Summit Foundation

We express our appreciation to national and regionalenvironmental authorities, authorities of protectedareas, fisheries, education and health; and to localgovernments, academic and indigenous authorities,community authorities, communities, private sectorand business sector, civil society, community andinternational cooperation, for their valuablecontributions in terms of ideas, knowledge, humancapital and financial resources invested in initiatives,programs, projects and concrete actions to conserveand sustainably manage this wonderful region.

Ian Drysdale

Special recognition

• Acacia LLP• Brazilian Biodiversity Fund (FUNBIO)• COBI• Compton Foundation, Inc.• Conservation International• Code Blue Charitable Foundation• Dim Sum Tea House• ECOSUR• Fundación AVINA• German Government through KfW• Global Giving Foundation• Marisla (Global Greengrants)• Individual donations:

• Paul Scholtes• Daniel Silver• Gina De Ferrari• George Núñez• Derek Ostensen• Claudia Alderman• Erick Hagmann• Yoshikazu Yokotani

• JRS Biodiversity Foundation• National Fish & Wildlife Foundation/Overbrook Foundation• Niparaja, A. C.• NOAA Southeast Fisheries Science Center• Oak Foundation• Packard Foundation• Paul M. Angell Family Foundation• United Nations Environmental Program (UNEP)• The Curtis and Edith Munson Foundation• The Fondation de l´Orangerie for Individual Philanthropy• The Henry Foundation• The Nature Conservancy• The Oak Hill Fund• The Ocean Foundation• The Overbrook Foundation• The Summit Foundation• University of Miami - RSMAS• WWF Central America

We express special recognition to individuals and organizations that for ten years have collaborated with theMAR Fund through technical and financial contributions:

We express our special gratitude to the members of the Board of Directors, Member Funds and AdvisoryCommittees that support and strengthen the MAR Fund, for their commitment, collaboration and timeinvested. We are grateful to the strategic, technical and administrative staff of the MAR Fund and its MemberFunds for their dedication and passion.

23

MAR Fund

Annexes

“ It is very important for CCAD to contribute to all actions developed by the MAR Fund, considering their significance for Mesoamerican integration [...]. We must continue looking for

resources to support local conservation actions in the region. ”

Christa Castro, CCAD Representative (November 2015).

During 2015, the MAR Fund strengthened legal and administrative operations to operate locally through a branch.

The Visibility and Communications Plan designed a new format for the institutional website, created a virtual platform through social networks on Facebook and Twitter, as well as a virtual communication platform through WhatsApp, thus enabling partners and allies of the Central American Marine Resources Conservation Project (Phases I and II) to share information about their local conservation activities and the involvement of communities in the

sustainable management of the region.

“ I work in this region together with the MAR Fund, because I love the reef. This region is considered one of the most beautiful places in the world, and I feel honored to work for the

conservation of these wonderful natural and cultural resources.”

Martin Goebel, Director (November 2015).

524

2. Communications

1. Administrative Affairs

Given that the MAR Fund is a private fund, its Board of Directors is made up of professionals from the four Member Funds, complemented by professionals with different experiences and visions. All four funds are permanently represented on the Board of Directors. In addition, a representative of the Central American Commission for

Environment and Development (CCAD), as well as long-term conservation experts from each of the participating countries, and up to seven partners and/or representatives of the international donor community serve on the

Board. To ensure the best possible performance and sound decision-making, staff and the Board of Directors are advised by five committees: Governance Committee, Investment Committee, Grants Review and Evaluation

Committee, Development Committee, and Audit Committee.

During 2015, the MAR Fund Board continued to consolidate its governance structure through a series of meetings and task forces that sought to assess and improve governance processes. This work was developed with active

involvement of all Board Members and an international consultant.

Conceived as a strategic organization since its inception, the MAR Fund is managed by an Executive Director and other six professional staff members. See figure below.

Figure 1. Organizational structure of MAR Fund

3. Functional organizational structure

“As citizens, we all are responsible for the conservation of our natural resources. I have a very personal passion for the sea, and I collaborate with the MAR Fund for the love I have for my

country and for the shared region [...]. Taking care of the reef is a shared responsibility.”

Heidy García, National Member for Guatemala (November 2015).

25