Environmental Cost of a Reclamation Project
Attributes
Medium: Land
Country: Philippines
Analytical Framework(s): Economic Analysis
Study Date: 2003
Publication Date: 2005
Major Result(s)
| Resource/Environmental Good | PHP (2003) |
PHP (2014)1 |
USD (2014)2 |
|---|---|---|---|
| Cost per cubic meter of landfill produced3 | 33.14 | 51.52 | 1.15 |
| Mean WTP to enter a protected area (per person) | 243.06 | 377.84 | 8.45 |
About the Inflation Adjustment: Prices in Philippines (PHP) changed by 55.45% from 2003 to 2014 (aggregated from annual CPI data), so the study values were multiplied by 1.55 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: This study sought to determine the economic value of the major environmental costs of southeast Asia's largest proposed reclamation project in the Municipality of Cordova, Mactan Island. The environmental costs of this project were then added to its construction costs. The resulting overall costswere then compared with the project's expected economic benefits to determine whether it represents a socially beneficial development.
Study Details
Summary: This study examines the case of the Cordova Reclamation Project (CRP), thelargest proposed coastal reclamation project in the Philippines. The environmental costs arising from this project were estimated to have a net present value of almost Php 3.3 billion or US$ 59.8 million. This represents about 13 % of the total costs of thereclamation development itself. Environmental costs were estimated from the value of four major environmental impacts: (1) the loss of on-site fisheries; (2) the loss of reef gleaning; (3) the loss of potential recreational benefits from the affected coral reef; and (4) the environmental damage from landfill quarrying. The largest contributing factors to the project's environmental costs were its adverse impacts on coral reefs and the environmental impacts of its quarrying work. The costs associated with these issues were estimated to be approximately US$ 31 million and US$ 19 million, respectively. The value of on-site fishery and reef gleaning losses was estimated at over US$ 7 million. While this does not appear large, in comparison with the costs associated with coral and quarrying damage, it nevertheless constitutes a significant livelihood loss for thousands of Cordova residents. This is especially true for barangays on the south and southeastern coast, since this is where the bulk of households engaged in fishing and gleaning activities are found.
Site Characteristics: The Municipality of Cordova is a town in Metro Cebu. It is located in the southeastern part of Mactan Island. It has a total land area of 846 hectares (or 8.46 km2) and is separated from the Mactan mainland during high tide by two narrow channelsthat reach in from the sea. The town has 13 barangays of which only one is landlocked.The town is endowed with considerable coastal resources and, as a result, an important portion of the local economy revolves around artisanal fishing and theharvesting or gleaning of marine products. According to the Department of Agriculture's Provincial Office, the town's 175 km2 of municipal fisheries produced more than 800,000 metric tons of fish in 1990.
Comments: The total environmental cost estimated in this study is to be considered a lower bound figure since it leaves out non-use values. It also ignores the effects of other reclamation construction impacts such as any temporary increase in dust and noise pollution.