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Table 6-1. Net present value of estimated indirect use values of the Zambezi River basin Indirect use Method Coverage Estimated value Flood attenuation Damage costs Agriculture Infrastructure Over US $ 3.1 million Personal losses Groundwater recharge Replacement costs Boreholes and shallow dug wells Over US$ 16.4 million Sediment retention Damage costs avoided for infrastructure At least US $ 8.9 million Water purification Replacement costs and costs of up-grading existing Waste and pollution US$ 44 million infrastructure Shore line protection Damage costs avoided Carbon sequestration Total Source: Turpie et al. 1999, p. 209. US$ 110 million Over US$ 182.4 million In Bintuni Bay, Indonesia, the annual average household income from mangrove wetland sources amounted to Rupee (Rp 2 ) nine million or around Pula 5 340 (Barbier et al. 1997); the bulk (RP 6.5 million) was derived from traditional uses such as fishing, hunting, gathering and manufacturing. Two indirect use values were estimated: • Erosion control based on its value to support local agricultural production. Rp 1.9 million per household per annum; • Biodiversity (Rp 0.6 million), captured through aid flows and international transfers for conservation projects. The estimates of indirect use values from the literature are summarised in Table 6-2. Table 6-2. Indirect use values associated with different ecosystem functions Indirect Use Estimated value Sources Flood attenuation and control Global costs of flooding US$ 27.3 billion in 2002 Beneifts of flood control of wetlands exceed US$ 1750/ha. Flood control damage in Zambezi River basin US$ 3 million SIWI 2004 Groundwater recharge Waste treatmentwater purification Carbon sequestration Aggregate indirect use values of wetlands Flood control value of wetland near Washington-USA is US$ 10 to 50 000/ha Flood control in Vientiane- Laos estimated at US$ 2 million p.a. Zambezi River Basin: US$ 16 million Value of mangrove wetlands is US$ 5 820/ha Water purification in the Zambezi River basin estimated to be US$45 million Mangrove wetlands carbon sink of 36 to 220 tonnes/ha Cost of Co2 is US$ 20/ton Swamps and flood plains: Mangrove wetlands Lakes and rivers: US$ 9 990/ha/annum US$ 6 075/ha/annum US$ 19 580/ha/annum Uganda: indirect use value of inland water resources is estimated to be US$ 300 million per annum (forest catchment protection, erosion control, water purification) Total indirect use value of Zambezi River basin is US$ 64 million Turpie et al. 1999; SIWI 2004. Leschine et al. 1997 Turpie et al. 1999; SIWI 2004. Lal 1990 quoted in Spannink and van Beukering 1997 Turpie et al. 1999; SIWI 2004 Spannink and van Beukering 1997 Spannink and van Beukering 1997 SIWI 2004 SIWI 2004. Turpie et al. 1999; SIWI 2004. 2 1 Pula = Indonesian Rp 1685; 1 Pula = Thais Baht 7 (exchange rates June 2006). 56
6.3 Indirect use values in the Okavango Delta Ramsar site 6.3.1 Introduction A review of the different indirect use values led to the conclusion that five indirect uses are most important. These are groundwater recharge, wildlife refuge, carbon sequestration, water purification and scientific and educational value. The value of flood attenuation is minimal, as the delta has the capacity to absorb high water levels internally without significant outflows. Even if outflows would occur, it is expected that very little damage will occur downstream as there are hardly any vulnerable settlements and pieces of infrastructure (e.g. bridges, roads, power lines). Most of the outflow would be channelled into the Boteti River and lake Ngami, both of which have been dry mostly since the 1990s. They would be able to absorb most outflows that might emerge from the delta. Similarly, the value of sedimentation retention is minimal as the outflow is minimal, and virtually all sedimentation is retained inside the delta, mostly in the channels (Jacobson et al. 2005). Sedimentation is estimated to be 209 000 t/ annum of clastic 3 sedimentation (170 000 t/annum of bed load) on the upper fan and 381 000 t/annum of dissolved load on the lower fan (Jacobsen et al. 2005, p. 2 app.3). Bed load is only transported in the primary channels and other loads through channels and overland flows. All sedimentation stays in the swamps. Below, the estimates of the five remaining indirect uses are discussed prior to the integral discussion of the indirect use value of the delta. 6.3.2 Groundwater recharge The Okavango Delta provides a conduit for the recharge of groundwater aquifers which are utilised around the perimeter of the wetland. Since most of the population of the Ramsar site is concentrated close to the perimeter of the wetland it is reasonable to assume that the groundwater used by these communities has been replenished from the delta. The value of groundwater abstraction in the study area is thus attributed to the delta. The recharge value is estimated as follows. Firstly, the actual amount of groundwater abstraction has been estimated. Next, the unit value of groundwater has been estimated. Multiplication of both figures gives the indirect use value of groundwater recharge. Groundwater is abstracted in settlements for domestic use, businesses and government. It is also used for livestock. Other uses are minimal and have not been included. The estimate of groundwater abstraction for settlements has been derived from the Ramsar site land use plan (Plantec et al. 2006). Groundwater abstraction for livestock has been estimated using the livestock figures for Ngamiland and standard daily water consumption per type of livestock 4 . The groundwater abstraction is estimated to be 5.8 Mm 3 for the entire Ramsar site (Table 6-3). This amounts to around five percent of the estimated annual recharge. The remaining 95% of recharge evaporates, serves the ecosystem, or is available for future use (option value). Table 6-3. Estimated annual groundwater abstraction Category of use Details Annual GW consumption (in Mm 3 ) Ramsar site Domestic use and businesses Maun 2.3 other settlements 1.3 Livestock Cattle 1.5 Goats 0.1 Sheep 0.0 Donkeys 0.6 Total groundwater consumption per year 5.8 3 clastic sediment—rock and soil eroded from the land 4 It has been assumed that livestock relies on groundwater for ten months per year. 57
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Economic value of the Cover Okavang
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ACKNOWLEDGEMENTS This project was f
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# # # # # # # # # # typically quite
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household demographics, the relativ
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are harvested annually in the study
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3. Wise use, based on Ramsar planni
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5.4.5 Palms........................
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1 INTRODUCTION 1.1 Background The O
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• inform economically efficient p
Page 21 and 22: 2 STUDY AREA 2.1 Location and exten
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Page 25 and 26: 2.2.5 Soils The soils of the delta
Page 27 and 28: Figure 2-3 Land use categories for
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Page 31 and 32: 3 VALUATION FRAMEWORK AND METHODOLO
Page 33 and 34: other variable relevant for policy)
Page 35 and 36: 3.3.2.1 Focus group discussions and
Page 37 and 38: A total of 430 households from 12 v
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Page 41 and 42: WMAs pay a lease to the local gover
Page 43 and 44: Table 4-3 Estimated direct gross ou
Page 45 and 46: Table 5-3 Average numbers of dwelli
Page 47 and 48: Table 5-6. Average number and produ
Page 49 and 50: 5.3.2 Cropping Some 75% of househol
Page 51 and 52: N W SW SE C Table 5-15. Average val
Page 53 and 54: general consensus was that pottery
Page 55 and 56: Reed mats are used by a few househo
Page 57 and 58: price, and the resource generates s
Page 59 and 60: large quantities. This is a very im
Page 61 and 62: N W SW SE C Table 5-34. Estimated h
Page 63 and 64: Table 5-39 Relative proportion of d
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Page 69 and 70: 5.5 The contribution of delta resou
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Page 85 and 86: 8 THE VALUE OF THE OKAVANGO DELTA I
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Page 99 and 100: 10 CONCLUSIONS AND RECOMMENDATIONS
Page 101 and 102: 11 REFERENCES Abril, A & Bucher, E.
Page 103 and 104: Mbaiwa, J.E. 2002. The socio-econom
Page 105 and 106: 12 GLOSSARY Abstraction - pumping w
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Page 109 and 110: 14 APPENDIX 2. TOURISM OPERATIONS I
Page 111 and 112: 69 Wilderness Dawning 70 Wilmot Saf
Page 113 and 114: FINANCIAL/ECONOMIC MODEL - HIGH QUA
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16 APPENDIX 4. THE SAFARI HUNTING E
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FINANCIAL/ECONOMIC MODEL - HIGH QUA
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Table A5.1 Structure of a Social Ac
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The sum of this column is the total
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generation and household expenditur
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