The Economic Value of Virunga National Park - World Wildlife Fund

OIL EXPLORATION PLANSPUT AT RISK VIRUNGA’SVALUE, WHICH COULDEXCEED US$1.1 BILLIONPER YEAR IF DEVELOPEDSUSTAINABLYVirunga represents a valuable asset to Democratic Republic of the Congo andcontributes to Africa’s global heritage as the oldest and most biodiverse parkon the continent. Support for long-term development, economic initiatives,conservation, stability and security needs to be guaranteed. Enforcing the park’scurrent boundaries and restabilizing rule of law within the park can help torestore the integrity of the park’s ecosystem and, if maintained, can promotelong-term development of the surrounding region.Plans to explore for oil and to exploit oil reserves put Virunga’s value at risk.Pollution from oil extraction is likely in the unstable province of North Kivu,where Virunga is located. Environmental degradation and human rights abusecan lead to direct impacts on economic and social development. Oil explorationcould also threaten Virunga’s status as a World Heritage Site, which if lost,could reduce the potential value of the park. The most critical risks associatedwith oil development include: large scale clearance of vegetation, introductionof invasive plants, fragmentation of habitats, increased likelihood of poaching,which could threaten the survival of local species, and pollution from oil spills,gas flaring and waste dumping. The likelihood and impact of these risks isillustrated by case studies such as Bas Congo and Niger Delta.In addition, the expected social and economic benefits of oil developmentoften do not materialize as demonstrated in the Bas Congo and Niger Deltaexamples. The risk of the “oil curse” could result in worsening povertyand inequality indicators as in the Niger Delta. Under the oil curse, theoil exporting country’s currency appreciates causing a decline in thecompetitiveness of existing export sectors, oil price volatility destabilizesgovernment revenues prohibiting long-term planning, and large cash flowsincrease the risk of misallocated resources.Virunga does not stand on its own. DRC has five World Heritage Sites anda variety of national parks. Although many of these require rehabilitationand maintenance, their natural assets represent a potential long-term sourceof income for local communities through a range of associated economicactivities.The Total Economic Value of Virunga is currently US$48.9 million but couldbe more than US$1.1 billion if managed in a sustainable manner. DRC shouldinvest in capturing the total economic value rather than putting the long termvalue of the park at risk.50 The Economic Value of Virunga National Park