Terms of Reference for. Economic Valuation of Ecosystem Services provided by Jeannette Kawas National Park, Bahia de Tela, Honduras

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1 Terms of Reference for Economic Valuation of Ecosystem Services provided by Jeannette Kawas National Park, Bahia de Tela, Honduras 1. Context More than 16% of the Honduran national territory is composed of coastal lowlands, characterized by alluvial floodplains, coastal dune systems, freshwater woody swamps and mangrove forests, which are in turn associated with seagrass beds and coral reefs. Such ecosystems provide a range of ecosystem services which support the livelihoods of large indigenous and mestizo populations that live along the Caribbean coast of Honduras, in addition to protecting the coastline from extreme weather events, recharging aquifers, filtering pollutants, etc. Unfortunately they are increasingly being threatened by urban, residential and tourism development, by the expansion of banana and palm oil plantations, growing livestock and agricultural activities, the impacts of hydropower plants, climate change, limited institutional presence and capacity, and the potential future exploration and exploitation of gas and oil reserves. In line with The Economics of Ecosystems and Biodiversity (TEEB) study, an economic valuation of the ecosystem services associated with such marine and coastal systems, and in particular with mangrove ecosystems, can assist in highlighting the value of these areas for both the local communities that subsist on their natural resources, and for decision-makers from local to national level, that are in many cases unaware of the services provided, at no cost, by these ecosystems. 2. Project scope An economic valuation of the ecosystem services provided by one lagoon system in Honduras is one of the main activities that will be undertaken in the framework of the Honduras component of the Integrated Coastal Management with special emphasis on sustainable management of mangrove forests in Guatemala, Honduras and Nicaragua project, hereinafter referred to as Mangrove Project.

2 The economic valuation will focus on a range of ecosystem services provided, which potentially include but are not limited to: Role of mangrove forests and coastal sand-dunes in shoreline protection from extreme weather events, particularly hurricanes; Mangroves contribution to catches of economically valuable fish and prawn species; Role of mangrove forests in carbon sequestration and storage, including aboveground, belowground and soil, as well as potential greenhouse gas emissions from the destruction of mangrove habitat; Role of mangroves and coastal lagoon system in filtering pollutants and sediments, and consequently protecting seagrass beds and coral reefs from sedimentation; Recreational and touristic value of the coastal lagoon system and associated coral reefs; Role of the associated freshwater swamp in recharging aquifers and in water supply; Cultural importance of the coastal lagoon system analyzing and valuing the indigenous and ethnic groups uses of the lagoon. Given the dearth of available biological, ecological and socio-economic data on coastal ecosystems in Honduras, and the relatively short duration of the Mangrove Project, such economic valuation will be undertaken in the Jeannette Kawas National Park (JKNP), in the Bay of Tela. This area is currently being developed through a loan of the Inter-American Development Bank (IADB), in order to build the Micos Beach and Golf Resort ( As part of the requirements for the loan, a baseline study has been undertaken which provides initial biological, physical, socio-economic and cultural data and identifies the range of uses that are made of the area and its state of conservation and threats. It also suggests a monitoring system for the area, which includes GIS and indicators, and an analysis of institutional strengths and weaknesses for implementing it. This baseline information can thus assist in starting off the valuation study. The approach of the economic valuation will be to undertake a rapid valuation based mostly on such existing data, and limiting the collection of additional data to the cases where the study s robustness will suffer and its integrity will be cast in doubt. 3. Objectives and expected results The main objective of the study is: To estimate the economic value of a range of pre-identified ecosystem services provided by the Jeannette Kawas National Park system, including the carbon stored by its mangrove forests and its contribution to economically significant fish and prawn catches, in order to provide tools for decision makers that justify the protection of coastal lagoon systems as a tool to mitigate and adapt to climate change.

3 The other results of the study need to be determined in conjunction with a range of stakeholders in Honduras, which will be part of the advisory committee of the study. These will include a member of the Ministry of Finance (SEFIN), the Ministry of Environment and Natural Resources (SERNA), the Ministry of Planning (SEPLAN), the General Directorate for Fishing and Aquaculture (DIGEPESCA), the Bay Islands Free Tourism Zone (ZOLITUR), the Institute of Tourism (IHT), an NGO member, a local community member and one from academia. These stakeholders will be responsible for assisting in the formulation of the specific questions that the study needs to answer, in order to ensure that it meets local needs and that the results will be used to influence current and future decision-making processes. Possible analyses that may be undertaken, which are not mutually exclusive, could include 1 : - An analysis of the distribution of current and future costs and benefits arising from the Micos Beach and Golf Resort, under different climate change scenarios and with full consideration of the range of ecosystem services provided by the lagoon ecosystem. - A detailed compensation plan to be presented to the Micos Beach and Golf Resort, in order for the project proponent to compensate for the losses in ecosystem services arising from its operations and the costs of restoration actions 2. - A detailed valuation of the ecosystem services provided by the JKNP in current terms and in the future, assessing its role in reducing vulnerability to climate change and valuing future avoided needs (for example the need to supply water in tanks because of contaminated aquifers arising from saltwater intrusion, the need to build dykes in order to provide the service of coastline protection currently provided by sand-dunes and mangroves, etc.). - A detailed valuation of the ecosystem services provided by the JKNP and a toolbox (e.g. regression equations, spreadsheets) which can be used to extrapolate the results (e.g. by changing variables) in order to value similar lagoon areas along the Honduras Caribbean coast. - A comparative analysis of the costs and benefits of the Micos Beach and Golf Resort with a potential ecotouristic lodge, taking into consideration ecosystems services, social and economic variables. - Identification of potential PES schemes, including players, for the sustainable management of fisheries, carbon or other ecosystem services provided by the JKNP mangrove and lagoon system. - Calculation of the value of the JKNP mangrove carbon in REDD+ and voluntary carbon market schemes. 4. Consultant requirements 1 With the caveat that it depends on the cost implications for the overall study. 2 This was originally contemplated as a condition of the IADB loan, which has not materialised, although the proponent had stated it would compensate the loss of ecosystem services.

4 Given the shortage of national specialists in natural resources valuation in Honduras, particularly for coastal systems, the study will be conducted by a national team of scientists as far as feasible, in order to strengthen national capacities, in collaboration with and led by an international expert. It is anticipated that a multi-disciplinary team of national experts will be required in order to focus on the range of ecosystem services provided by the coastal lagoon system, as well as to bring in specialized knowledge on the different disciplines. An international consultant with expertise in economic valuation studies of marine and coastal ecosystems is required to lead the study, assist to identify and select the valuation methodologies and models, direct the national experts, and peer-review their outputs. The tasks and outputs described in these terms of reference are applicable to the international expert. Qualifications: PhD in Natural Resource Economics, Environmental Economics or equivalent, or an MBA with at least five years relevant experience; Experience in (one of) the following: economic valuation of marine and coastal lagoon systems, valuation of mangrove ecosystem services, mangrove carbon assessments; Cost-benefit analyses, economic valuation techniques, scenario testing; Outstanding analytical and quantitative capabilities, including economic theory, mathematics and statistics, and quantitative methods to measure economic benefits and costs of projects and policies; Demonstrated project management experience with solid time management and followthrough skills; Excellent oral and written communication skills, with an ability to communicate with a wide range of audiences; Ability to lead a team, while able to work well in a team setting. Knowledge of PES schemes, international carbon markets, REDD+ and voluntary carbon markets desirable; Experience in developing world/low governance settings desirable; Bilingual in Spanish and English highly desirable. Tasks: As the lead economist, the consultant will complete the following tasks: 1. Assist in defining the questions that the study will answer. 2. Participating and leading a workshop in late January/early February 2012, where the study site will be visited; data gaps and requirements will be identified; scope of the study will be discussed and defined in conjunction with the national team and the study advisory committee; and the detailed work plan, indicating the manner and time in which the project outputs will be delivered, will be produced. 3. Review, and assist the national experts with the economic valuation study design, identification, development and review of methodologies and models for the appropriate economic valuation element. 4. Approve the chosen economic valuation study design, methodologies and models.

5 5. Identify the variables that must be considered in the economic valuation and data that will need to be collected. 6. Review, validate and approve all the outputs developed by the national expert(s) prior to submitting to UNEP. 7. Provide guidance and training, as needed, to the national expert(s) with the study and evaluation. 8. Peer-review and approve the economic valuation report prepared by the national expert(s). 9. Assist in developing a summary for policymakers version of the study, and in communicating its results in the most effective way. 10. Assist in developing a presentation summarizing the study and its recommendations. 11. Assist in identifying payers and service providers in PES scheme(s) that will promote the sustainable management of mangroves. Duration of the contract: January/February to September 2012, part-time 5. Application process Applicants should send a CV, cover letter demonstrating relevant experience and interest in the topic, spoken and written Spanish level, expected remuneration and availability for running the inception workshop in Honduras in January/ February 2012 to vacancy.unep@unep.org with Mangrove economic valuation in the subject line. For any clarification on the process or consultancy, please contact lucia.scodanibbio@unep.org Deadline: 30 th December 2011.