Cost of Reforesting Disused Fishpond Lease Agreement Areas
Attributes
Medium: Land
Country: Philippines
Analytical Framework(s): Replacement Costs
Unit(s): Total Cost
Study Date: 2010
Publication Date: 2011
Major Result(s)
| Category | Resource/Environmental Good | PHP, per hectare per year (2010) |
PHP, per hectare per year (2014)1 |
USD, per hectare per year (2014)2 |
|---|---|---|---|---|
| Natural regeneration | Cost of reversion of disused FLA areas | 47,625.90 | 55,508.94 | 1,241.10 |
| Active planting | Cost of reversion of disused FLA areas | 106,989.00 | 124,697.82 | 2,788.06 |
About the Inflation Adjustment: Prices in Philippines (PHP) changed by 16.55% from 2010 to 2014 (aggregated from annual CPI data), so the study values were multiplied by 1.17 to express them in 2014 prices. The study values could be expressed in any desired year (for example, to 2025) by following the same inflation calculation and being sensitive to directional (forward/backward) aggregations using your own CPI/inflation data.
Study Note: Actual reversion of disused Fishpond Lease Agreement (FLA) areas to mangrove forests used data from officially cancelled FLAs in the region whose areas were still with the Department of Agriculture-Bureau of Fisheries and Aquatic Resources (DA-BFAR) or already reverted to Department of Environment and Natural Resources (DENR) as well as not yet cancelled FLAs whose areas were officially identified as abandoned or undeveloped. Disused FLA areas were assessed in terms of suitability for reforestation. Those found suitable for reforestation were subjected to a cost-benefit analysis. The evaluation ended with an analysis of seven potential policy options for financing the reforestation using a set of criteria (feasibility, funds raised, ease in implementation, sustainability, and likely impact on other desirable goals).
Study Details
Summary: This paper focuses on evaluating the reversion of disused Fishpond Lease Agreement areas in Region VI (Western Visayas), Philippines to mangrove forests. The rehabilitation and restoration of mangrove areas are important given the substantial decline of mangrove forests in the country, particularly in Region VI. The study used a two-stage and five-step evaluation process. The first stage assessed the processes of FLA cancellation and reversion of jurisdiction over disused FLA areas from one government agency to another. The second stage assessed the actual reversion of disused FLA areas to mangrove forests. The study used multiple data collection methods including archival work, onsite ocular inspection of disused FLA areas, interviews, experts' opinion, intensive review of literature, and collection and assessment of pertinent records/data from government agencies. The study covered 62 disused FLA areas in four provinces (Iloilo, Negros Occidental, Guimaras, and Capiz) in the region, representing 84% of the total 74 canceled FLAs (regardless of whether reverted or not to DENR), as well as FLA areas that had been abandoned or left undeveloped. Results showed that the processes of cancellation and reversion of jurisdiction are fraught with challenges and problems resulting in a lower number of canceled FLAs and reverted FLA areas than what should be. The study recommends the inventory of all FLA areas in the region, formulation and approval of FLA cancellation and reversion rules and guidelines, conduct of suitability assessment for reforestation of disused FLA areas in the region, and the actual reversion of suitable disused FLA areas to mangrove forests.
Site Characteristics: The suitable area for reforestation was only 23% (284 ha) of the total area of FLA areas visited. Many disused FLA areas were located in the lower intertidal zone or foreshore area, thus not suitable for mangrove rehabilitation. The benefit of reforesting disused FLA areas suitable for reforestation far outweighs the cost of doing so. The options where the responsibility for paying for reforestation rests on lessees (performance bond, green tax/fine, fees reflective of economic rent, and beneficial use tax) will generate high amounts of funds and likely to have positive impacts on other desirable goals in aquaculture but are relatively difficult to implement. The options where the responsibility to pay for reforestation cannot be identified (DENR grant, foreign fund, private sector support) are relatively easy to implement but may generate lower amounts of funds and not sustainable.
Comments: The total cost of restoration was estimated on a per hectare per year basis. Primary data were not collected to calculate the benefits of mangroves. Instead, calculation of such benefits relied on information from the literature. The values were discounted using 5%, 10%, and 15% discount rates. It was assumed that mangroves are grown trees by year 15. Net benefits were computed under the assumption of no mangrove harvesting, in consonance with Republic Act 7161 of 1990, which bans all cutting of any mangrove species, and with harvesting. Comparing the net benefits with and without harvesting highlights the marginal change in the net benefit if harvesting is allowed.