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Seminar 13 Mar 2013 - Session 3 - Watershed PES in Africa_ by SNamirembe
Seminar 13 Mar 2013 - Session 3 - Watershed PES in Africa_ by SNamirembe
Seminar 13 Mar 2013 - Session 3 - Watershed PES in Africa_ by SNamirembe
Seminar 13 Mar 2013 - Session 3 - Watershed PES in Africa_ by SNamirembe
Seminar 13 Mar 2013 - Session 3 - Watershed PES in Africa_ by SNamirembe
Seminar 13 Mar 2013 - Session 3 - Watershed PES in Africa_ by SNamirembe
Seminar 13 Mar 2013 - Session 3 - Watershed PES in Africa_ by SNamirembe
Seminar 13 Mar 2013 - Session 3 - Watershed PES in Africa_ by SNamirembe
Seminar 13 Mar 2013 - Session 3 - Watershed PES in Africa_ by SNamirembe
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Seminar 13 Mar 2013 - Session 3 - Watershed PES in Africa_ by SNamirembe

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Securing private sector commitment to watershed Rewards for Environmental Services (RES) agreements in Africa is a challenge. This is partially due to the scarcity of downstream beneficiaries, the …

Securing private sector commitment to watershed Rewards for Environmental Services (RES) agreements in Africa is a challenge. This is partially due to the scarcity of downstream beneficiaries, the prevailing policy and institutional arrangements and the internal inefficiencies of some of the businesses. Using the Sasumua case study, we found that the business case based on improving water quality through sediment reduction is weak; the bigger challenge is increasing and maintaining water flows where the most immediate action for companies is not so much upstream land uses, but management and governance of water pipes between the reservoirs and water users. PRESA is currently exploring three avenues for engaging private sector in RES: using the Applied Information Economics approach to re-examine the business case for optimizing decisions for PES in reservoir management; analyzing policy and institutional frameworks for PES; and engaging stakeholders to consider the fund mechanism, disbursing conditional payments for good land use practices.

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  • 1. WATERSHED PES IN AFRICAFINDING SOLUTIONS THAT REDUCE TRADE-OFFS IN LANDSCAPES
  • 2. Private sector and alternative financing for ES in PRESA sitesSite Direct private sector Alternative financial ES beneficiary sources for ES incentivesAlbertine Rift Mini-hydropower dam Eco-certification of crafts and- Uganda honeyUlugurus - Tz DAWASCO; Coca ColaUsambaras - Tanga City waterTz CompanySasumua - NCWSC WSTF, Nature Conservancy,Kenya World Bank Fund; Green microfinance agencyNyando River No private sector buyer Public agencies: NEMA;Basin - LVMP; World Bank FundKenyaEmbu - KENGEN Nature ConservancyKenya Government Project: TANRMP; World Bank FundFouta Djallon Coyah Bottling Company Mining L D A G R O F O R E S T R Y WOR companies CENTREGuinea
  • 3. Sediment sources in Sasumua  Low erosion rates from the forest  High rates on some agricultural areas, exceeding 11.2 tons/ha/year WORLD AGROFORESTRY CENTRE
  • 4. Potential to improve water partitioning and reducesoil erosion through landuse interventions Sediment yield Surface Base flow Water yield (×103 tons/Landuse runoff (mm) (mm) (mm) year)Base case 193 488 680 32.6 Contour farming 162 514 675 16.6 % change -16.1 +7.6 -0.7 49 Terracing 151 525 674 4.9 % change -21.8 +5.3 -0.9 85 WORLD AGROFORESTRY CENTRE
  • 5. CASE FOR PES: NAIROBI WATER COMPANY Grassed waterway causing 20% reduction in sedimentation Costs with Costs without PES PES
  • 6. ALIGNING ES DEMAND WITH SUPPLYSasumua conversations PES can reduce We pay multiple levies sedimentation to government NCWC Science We have no mandate WSTF PES can make a strong That is small change business case – net savings NCWC Science We are willing to accept payment We are willing to pay more for improving land use Nairobi City WRUA We have no authority to increase tariffs NCWC We can provide We want more regular improved quality flows and quantity WORLD AGROFORESTRY CENTRE WRUA Nairobi City
  • 7. Institutional structure for Catchment management OTHER SOURCES WRMA WSTF Water abstractor/ utility company WRUAS Catchment management plans Current level of land management does not provide satisfactory watershed services Farmers are not obligated to invest in conservation above legal and societal expectations Optional community driven development (CDD) is availableOto L D A G R O F O R Eindividuals T R E W R CBOs and not S T R Y C E N
  • 8. Current insights from PES Research CES: Commoditized Environmental Services  Direct interaction ES providers &beneficiaries  Recurrent monetary payments Rewards are too small and a broader outlook of PES mechanisms is necessaryCIS: Co-Investment in COS: Compensating for(landscape) Stewardship Opportunities Skipped A flexible contract with broad Recurrent payment for proxies sanctions for Entrust resource management to  Accepting restrictions local communities  Achievement of a condition Based on management plan high W O R effort R O F O R E S T R Y C E N T R E or L D A G social capital
  • 9. Looking forward• Scaling from project-based to national level integration of PES approaches into institutions and policies• Increasing and ensuring sustainable private sector commitment• Optimising business case for private sector investment• Public-to-public PES in managing trans-boundary resources (e.g., Nile river; Congo forest etc.) WORLD AGROFORESTRY CENTRE

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