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6. MangrovesMangroves are an example of an ecosystem generating both use and non-use benefits, likeforests which provide timber with use benefits and, among other things, nursery ground withindirect and non-use benefits that are obtained when mangroves are preserved. Thedistraction of mangroves is often caused by harvesting of wood for construction poles andfirewood for the immediate needs of coastal communities. These community products have adirect use value which should be compared to the indirect productivity of mangroves forfisheries in the adjoining areas. Data from Mozambique (Hatcher et. al. 1989) indicate that themangrove yield is about 0.5 tons per ha, representing 40 kg per ha per year and a value of$300 ha/year. The Dar es Salaam there are about 2,266 ha of mangroves giving an indirectvalue of $0.7 per year. There is no data on the area of mangroves lost in Dar es Salaam inthe past 10 years to derive an annual rate. But using data form Mozambique for the period1990-92 during which the average annual reduction of mangrove areas was about 288 ha, or2% per year, the indirect productivity cost is about $14,000 a year. It is now a question ofcomparing this amount with the value of poles and firewood harvested from mangroves.Without detailed reliable data to verify the net amount it is unwise to place a money value onthe loss of mangroves from an economic point of view. But certainly the protection ofmangroves cannot be considered to have zero value.7. BiodiversityThe existence value of the environment is a very elusive parameter but one of potentially highvalue. It refers to the value that people themselves estimate of the preservation of theecosystem free of any use for productive activities. It is the social value of the ecosystem aspart of the natural heritage. The Kenyan coast is a rich ecosystem area characterised by coralreefs, diverse sea grasses and other marine life. Economic valuation is constrained by thelack of information to make up for the lack of market demand and estimate a social demandfor coastal and marine diversity. On the other hand, it is unwise to ignore and leave it outsidethe decision-making process. Estimates are typically based on Contingent Valuation studiesthat attempt to utilise survey results which show the responses of people to questionsreferring to their willingness to pay for conservation of coral reefs, excluding production anddevelopment considerations. There is no such information for Dar es Salaam or any countryin the region and they are rare in any <strong>case</strong>.A recent review of the empirical biodiversity literature stresses the following:• Existence valuations are rare – only one study estimated the existence value of coral reefsites, that of the Great Barrier Reef;• Most valuation studies involve coral reefs are concerned with their recreational and touristuse value;• The most commonly valued harvested product of coral reefs is fisheries, but the naturalsystems underlying the harvest (e.g. reef-fish relationship) are simplified, if not ignored,and• Coastal protection afforded by the coral reef habitat is the only ecological function valued.Two known studies are often quotes. Hundloe 1987 estimated the existence value of coralreef habitat using a contingent valuation method for the value of coral reef sites within theGreat Barrier Reef in Australia calculated at A$45 million a year. For the Galapagos NationalPark, de Groot 1992 estimated the “inspirational” and “spiritual” value of reefs at $0.72 per ha.Cynthia Cartier and Jack Ruitenbeck, in Integrated Coastal Zone Management of Coral Reefsby Kent Gustavson (ed.), World Bank, 20006. Estimated Annual Cost of Environmental ImpactsThe estimates worked out above are partial and cover only part of the total environmentaldamage perceived to be caused by pollution, as only some of the impacts are possible to costand excluding qualitative impacts. The annual estimated cost summarised below is $64.8million. This reflects the losses suffered which, when action is taken to address/avoid them,will constitute part of the benefits from such action.Final Draft Report – Cost Benefit Case StudiesGPA Strategic Action Plan on Sewage, October, 200038
Table 13: Estimated Annual Costs of Environmental Impacts in Monetary Values, 2000Impacts Annual cost in Commentsmillion US$Direct Costs1. Fisheries 1.0 Loss of production2. Tourism 9.0 Loss of tourism income3. Property 34.4 Reduction of value or lack of appreciation4. Health 3.117.3Treatment costs and loss of earningsHuman capital loss from deathIndirect Costs5. Recreation Qualitative impacts Not quantified6. Mangroves Qualitative impacts Not quantified7. Biodirersity Qualitative impacts Not quantifiedTotal 64.8 Partial estimateTable 14: Cost – Benefit Analysis of Future Sewage Investment(in million $)Year Capital Oper. & Total Benefits Net PV @ PVCost(1)Maint.Cost(2)Cost(3) (4)Benefits(5)10% 5%2001 - - - (65) (65) (59) (62)2002 100 - 100 (75) (175) (145) (159)2003 110 5 115 (84) (199) (150) (172)2004 12 10 22 (94) (116) (79) (95)2005 - 10 10 103 93 58 732006 - 10 10 116 106 60 792007 - 10 10 126 116 59 822008 - 10 10 135 125 58 852009 - 10 10 146 136 58 882010 - 10 10 156 146 56 9010-year Net Present Value (84) 92011 - 10 10 167 157 55 921012 - 10 10 177 167 53 932013 - 10 10 188 178 52 942014 - 10 10 199 189 51 962015 - 10 10 216 206 50 992016 - 10 10 223 213 47 972017 - 10 10 235 225 45 982018 - 10 10 248 238 43 992019 - 10 10 261 251 41 992020 - 10 10 274 264 39 992021 - 10 10 289 279 38 1002022 - 10 10 306 296 36 1012023 - 10 10 319 309 35 1012024 - 10 10 335 325 33 1012025 - 10 10 351 341 31 10125-year Net Present Value 565 1,479@Notes:• The cost column in column (1) shows the estimated capital cost of the SewerageSystem of $222 spread between 2002-2004.• The operating cost in column (2) is 5% for year 2003 on the capital cost of year2002 and 5% thereafter for the whole amount of 222. The annual cost is assumedto include maintenance.Final Draft Report – Cost Benefit Case StudiesGPA Strategic Action Plan on Sewage, October, 200039
Page 2 and 3: TABLE OF CONTENTSPageTable of Conte
Page 4 and 5: The Report includes four Annexes wi
Page 6 and 7: 4.2 Programme ObjectivesTo facilita
Page 8 and 9: TERMS OF REFERENCEThis Report has b
Page 10 and 11: CHAPTER 1. ECONOMIC ANALYSIS AND EN
Page 12 and 13: aesthetic and recreational value, i
Page 14 and 15: marginal benefit of pollution reduc
Page 16 and 17: loss of labour force productivity.
Page 18 and 19: Population connected to sewerage in
Page 20 and 21: Threats to the Coastal and Marine E
Page 22 and 23: fall disposal in deep sea at Kilind
Page 24 and 25: There are three main categories of
Page 26 and 27: Child mortality, and death in gener
Page 28 and 29: 6. Estimated Annual Cost of Environ
Page 30 and 31: 2.2 DAR ES SALAAM CASE STUDY2.2.1 I
Page 32 and 33: Dissolved solids 83,940 45,280 9,83
Page 34 and 35: 4. Institutional Capacity Building
Page 36 and 37: Table 8: Classification of ValuesTy
Page 38 and 39: infrastructure. As shown above, the
Page 42 and 43: • The total cost in column (3) is
Page 44 and 45: 2.3 BEAU VALLON (SEYCHELLES) CASE-S
Page 46 and 47: In the marsh areas, various species
Page 48 and 49: Dissolved inorganic nitrogen: The t
Page 50 and 51: TourismSeychelles• Number of tour
Page 52 and 53: lossesHuman Health Indicator: Treat
Page 54 and 55: Dose-response data are not availabl
Page 56 and 57: Table 13: Estimated Potential Annua
Page 58 and 59: CHAPTER 3. ACTION PROGRAMME INPUTS3
Page 60 and 61: Property impacts are widely known t
Page 62 and 63: 3. Wastewater Treatment in Ismailia
Page 64 and 65: • Health costs• tourism income
Page 66 and 67: Annex IRegional OverviewThe Western
Page 68 and 69: • Degradation of coastal and mari
Page 70 and 71: • Resource over-exploitation• S
Page 72 and 73: Annex IIMombasa Regional and City P
Page 74 and 75: Population covered by sewerage infr
Page 76 and 77: Source: Mwaguni & Munga 1997Sewage
Page 78 and 79: 1628 people tested positive for cho
Page 80 and 81: Annex IIIDar-es-Salaam Regional and
Page 82 and 83: are extensively exploited by small-
Page 84 and 85: Solid wastes. It is estimated that
Page 86 and 87: Pollution load to surface water res
Page 88 and 89: Mtoni and Pugu. Existing lakes incl
Page 90 and 91:
Annex IVSeychelles (Beau Valon Area
Page 92 and 93:
labour force generating the major p
Page 94 and 95:
Vacoa Village ST Algal growth Water
Page 96 and 97:
sea grass beds are able to soak up
Page 98 and 99:
Sewerage ManagementSewerage managem
Page 101 and 102:
REFERENCESA. Background Regional En
Page 103 and 104:
7 GOK 1997: Mombasa District Fisher
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