Payment for Watershed Services in the Uluguru Mountains TANZANIA

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1 Payment for Watershed Services in the Uluguru Mountains TANZANIA Prof. Shadrack Mwakalila, University of Dar es Salaam TANZANIA Conference organised by SAIIA Johannesburg, October 2013

2 Eastern Arc Mountains (EAM) EAM stretch from Taita Hills in Kenya to Southern Tanzania. Has been categorized among the 34 World Biodiversity Hotspots. The value of EAM water to power generation, water supply to people, and for agriculture is a major incentive for forest conservation in the country.

3 Uluguru Watershed Services Water supply for drinking, irrigation and industrial development. Important for storing carbon storage, Providing a basis for ecotourism, and Providing important forest and non forest products.

4 Uluguru Watershed Degradation Deforestation and watershed degradation at rate of 9%; Declining in water flow volumes and increasing water turbidity in the Rivers, Dramatic increase in sediment loading into the river that affect various uses downstream especially Dar es Salaam including high treatment and tariffs costs.

5 Causes of Uluguru Watershed degradation Unsustainable farming and irrigation practices. Encroachment to the Forests and water sources Illegal gold mining. activities in river systems and within forest reserves. Accelerated poverty in local communities.

6 Payments for Watershed Services Implemented in the Uluguru Mountains in Tanzania by CARE International in Tanzania and WWF Tanzania Country Office. PWS Programme Objectives: To establish long term financial investment for watershed conservation. To establish payment mechanism that improve the quality of life of upstream communities. Win win situation when conserving watershed and vice versa (adopted from Curtis, 2006

7 Location of pilot project sites The PWS program is being piloted in four villages in Kibungo sub catchment of the Ruvu River. Ruvu River is the principal source of water to the City of Dar es Salaam and other towns such as Morogoro, Kibaha, Mlandizi and Bagamoyo.

8 Implementation of PWS Phase I Identification of Hotspots; Identification of sellers and buyers; The identified buyers were Dar es Salaam Water Supply Cooperate (DAWASCO) and Coca Cola Kwanza Limited; Development Business case and Signing of MoUs btn sellers and buyers. Baseline Studies Hydrology Institutional Livelihood Cost benefit Technical Reports

9 Implementation of PWS cont. Phase 2: Implementation of land use change interventions: Agro forestry, reforestation, grass strip farming, contour farming, and terracing and riparian zone restoration. Establishment of a payment mechanism for watershed services.

10 Implementation of PWS cont. Payment mechanisms: The mechanism aimed at transferring of rewards from those who benefit from the watershed service to those who manage it. Farmers were paid in cash depending on type of improved land use change (Sustainable Land Management) practices adopted per land size.

11 Flow of payments to farmers 54 Individual Farmers DAWASCO 49 Individual Farmers VILLAGE CARE/WWF 23 Individual Farmers COCA COLA 18 Individual Farmers

12 Benefits of PWS Implementation Improved soil moisture and land productivity. The adoption of improved land use change practices enabled local farmers to improve their land productivity. Terraces reduced run off and improved infiltration within the terraces hence increasing soil moisture and nutrients in the area.

13 Main Objectives Crop production Improved crop yields Indicators Increased crop production Food security Number of meals per day Poverty reduction Baseline 2009 Current 2012 Maize 400kg/acre 1600kg /acre Increased incomes US$ 50 US$ 500 per season Health Ability to pay health services No Yes Education Ability to pay school contributions Low Moderate

14 Improved livelihoods Farmers through crop production earned a significant amount of cash incomes over $13,000 through selling their crops especially beans, cabbage, tomato and onions at farm gate and markets in Morogoro town. Communities used the money generated from crop sales to cover basic needs.

15 Benefits to the Environment Reduction of soil erosion, sediment load. Improving soil nutrients to produce more crops per unit area. Increased land cover by planting timber tree species, agroforestry and fruit tree species. Incidences of fires have been reduced significantly.

16 Replication of this programme to other areas in Tanzania The Wildlife Conservation Society of Tanzania is implementing PES in Uluguru Mountains. WWF TCO completed phase I of PWS in Usambara Mountains. FAO is assessing the potential of PES in Kagera River. ICRAF has implemented PES in one part of Ulugurus. Water act include PES as a conservation instrument. PES is included in the revised National Forestry Policy.

17 Challenges of PWS implementation Initial costs are high and thus needs external support to facilitate implementation. Getting sellers is simple while engaging buyers is not easy. They feel conservation as task of someone else Tangible impacts of PWS such as increased of water quantity can not be realized over short period of time.

18 Conclusion Successful implementation of PWS requires: To map services and place economic values on each one To develop business cases for each ecological service. To make these business cases acceptable within the Tanzanian political and government circles. To instigate operational models whereby benefits from ecosystem services are transferred to the managers of the habitats providing the service. Effective awareness creation all stakeholders about PWS concept.

19 Framework for implementing PES 1. Inventory services, people & landscapes 2. Model & map service production & flows 7. Explore plausible scenarios 3. Model & map beneficiaries of services 4. Map benefits of conserving services 5. Map costs of conserving services 6. Map winners & losers 8. Design mechanisms to capture service values

20 Acknowledgement Dosteus Lopa the Programme Manager for CARE International in Tanzania, Morogoro; Iddi Mwanyoka the Project Executants for WWF Tanzania Country Office, Dar es Salaam.