U.S. Forgiveness of Debt Helps Jamaica Ecology : Environment: Rather than require that the money be paid back, Washington will channel funds into a fund for key projects.

By forgiving millions of dollars of debt, the American Embassy says, the U.S. government has boosted this island nation’s efforts to save its environment.

Rather than requiring that the money be paid back, Washington will channel it into a trust fund that will be used as a model for future environmental programs envisioned by the framers of the Enterprise for the Americas Initiative.

The U.S. government already has forgiven $217 million, largely written off in August, 1991, and is rescheduling another $54 million owed by Jamaica under the so-called Public Law 480 program, which provides developing countries with U.S.-grown commodities on concessional credit terms.

Jamaica’s geography is diverse, with its famous white beaches, the Blue Mountain range known for its coffee, and gentle rolling hills in rural areas where major crops include sugar cane and spices.

Ecologists believe all parts of the island could be threatened by development and tourism.

Jamaica gets more than a million tourists a year. Most go to beach resorts on the north coast near Montego Bay but the country is trying to develop other areas, including a national park in the Blue Mountains.

A committee of representatives from the Jamaican and U.S. governments and local non-governmental organizations already is working to set up a trust fund that will receive rescheduled debt payments for funding environmental projects.

The panel was appointed last December and held its first formal meeting in late January. It consists of one representative each from the U.S. and Jamaican governments and the University of the West Indies and four from non-governmental groups.

David Smith, executive director of the Jamaica Conservation and Development Trust, said the committee is working to draft documents needed to incorporate the fund legally, although the first payment of $302,000 was already made in December, 1991.

Marilyn Zak, deputy director of the U.S. aid program in Jamaica and a steering committee member, said the funds are largely intended for local organizations.

“We’re targeting (non-governmental organizations) and community groups, trying to get projects working at the community level,” she said.

The trust funds will be set up in countries that agree to participate in EAI, which deals with three major issues: free trade, debt reduction and the environment. So far, Bolivia is the only other country to have signed the framework of agreements necessary for the debt forgiveness to take place.

“Under the debt reduction, for which legislation now only exists for PL-480 debt, the interest is payable in local currency,” Zak said.

The Jamaican fund will eventually get $9.2 million in rescheduled interest, paid in Jamaican dollars. Zak said the mechanism allows the EAI to get “two birds with one stone”--debt reduction and environmental protection.

The committee is also looking at the trust fund’s staffing needs and is hammering out policies covering how money will be disbursed, Smith said.

“The EAI legislation gives out 11 broad areas of fundable projects. But they have to go into a little more detail and start looking at a mechanism by which proposals will be reviewed to make sure the best projects get funding,” he said.

The EAI legislation, passed as part of a U.S. farm bill, says the trust funds will support projects that will restore, protect and conserve the oceans, atmosphere and diverse animal and plant species, and establish parks and reserves.

It also will be used to develop local conservation and public education programs, train farmers in environmentally safe agriculture techniques and train individuals and organizations in proper resource management.

Zak said the committee is still trying to decide how to use the fund to support environmental activities.

The committee hopes to have the fund legally established shortly. A public education seminar would then be held to create a general awareness of the fund and funding proposals would be accepted by mid-1992.

“We’re all very excited about this,” Zak said. “It’s a very new approach, and we’re interested in seeing how fast and effectively we can get it done.”