Scope of Payment for Ecosystem Services Mechanism for ... - icimod

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The Churia hills in Nepal are under severe threat from human interference and naturalfactors. A study to estimate the economic value of selected goods and services, and toassess the possibility of PES mechanism for a local self sustaining conservation financingwatersheds across the length of the Churia. Non Timber Forest Products were valuedusing opportunity costs as well as market values, while the water used in agriculture wasvalued using residual imputation method. Though hydrological relations could not beestablished scientifically, there are other positive signs indicating the possibility to PESlikeinnovating financial mechanism (Karn, 2008).Kathmandu valley population receives 40% of its drinking water from Shivapuri NationalPark, which provides numerous ecosystem services among which drinking water supplyand water purification occupy the highest value and that is US $112/ha/yr, which issignificantly higher than global estimates. Valuations methods applied to calculate thevalue was by using current water price and avoided cost methods. A survey carried outamong Kathmandu people showed that people give more importance to water services,feels responsible to protect and conserve these water sources and are willing to pay 1% oftheir average monthly income (US $300/month). The study indicate ample investmentopportunities for watershed protection that lie within the national park and its surroundingareas through PES (Maskey, 2008).Sundarijal Watershed in Shivapuri National Park provides watershed services toKathmandu Valley in terms of both Hydropower generation and drinking. An MScresearch (Niraula, 2008) focused on the valuation of these services. The study concludesthat there are significant, benefits from hydropower generation and drinking water sevicesas there good potential to implement PES schemes to promote livelihood supportingincentives to upstream villagers, to engage local communities for conservation activities(Niraula, 2008).After decades of destruction and deforestation since the nationalization of all forests in1957, the forests of Kulekhani watershed in Makwanpur district now managed by localcommunities as community forests. The Kulekhani watershed is the source of water tohydropower plants and downstream fields. Earlier hydropower plant, suffered from arapid loss in capacity of the reservoir because of siltation. A PES scheme was developedin which part of the royalty paid by the hydropower plant is used to reward the15
community forestry user groups for maintaining a good forest cover in the catchment thatreduce the siltation problem ( Joshi, 2009).There are numerous indigenous PES- like mechanisms in the hillsof Nepal mostly for theprotection of water sources in upstream forests to ensure consistent supply of goodquality water used by downstream consumers. Examples of such PES mechanismsinclude water collection and distribution systems in:- Dhulikhel, Dolakha and Gorkha(Pers. _Comm._ Dr. Laxman Joshi, ICIMOD).16
Page 7: AcknowledgementsI extend my first a
Page 11 and 12: I. Vegetation .....................
Page 13 and 14: List of FiguresFigure 4.1: Methodol
Page 15 and 16: List of TablesTable 2.1: Key water-
Page 17 and 18: for human well-being by regulating
Page 19 and 20: 1.3 Objectives of Study:The overall
Page 21 and 22: The quantity of urban water supply
Page 23 and 24: and Perera (2005) reported that the
Page 25 and 26: attempt to formally define PES and
Page 27 and 28: positivelybiasedtowardsdisadvantage
Page 29: climate change impacts has been inv
Page 33 and 34: 3.1.4 Water source and scarcityNume
Page 35 and 36: Table 3.1: CF recharges MKWS.N Name
Page 37 and 38: Map 3.3: Hanumante Basin in Bhaktap
Page 39 and 40: The methodological tools adopted in
Page 41 and 42: Table 4.1: FGDs in Upstream areaUps
Page 43 and 44: more ES than downstream that may be
Page 45 and 46: Local humanpopulation upstreamArmyb
Page 47 and 48: Ashad(Jun- Jul)Shrawan(Jul- Aug)Bha
Page 49 and 50: Perception of downstream peopleWate
Page 51 and 52: Participant %Paticipant %Participan
Page 53 and 54: conservation activities are conduct
Page 55 and 56: facilitate with proper policy respo
Page 57 and 58: water, purify water, and regulate w
Page 59 and 60: Native water holding trees are bett
Page 61 and 62: 8. Realizing importance of water by
Page 63 and 64: Joshi, L. 2009. A Community- Based
Page 65 and 66: USAID. 2003. Investments in Drinkin
Page 67 and 68: Photo 7: FGD in Ward 7, SudalPhoto
Page 69 and 70: Annex- 3Questionnaire for Focus Gro
Page 71 and 72: Annex -5Questionnaire for KUKL offi
Page 73 and 74: 5. Kabita Tyata- 5 Jeetendra Munnan

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