the economic valuation of the proposed ... - Nature Uganda

Table 16: Value of Growing Stock
Class Volume (m 3 ) Value (Shs millions)
I 113,889 19,677
II 171,380 17,568
III 262,272 22,657
Totals 547,541 59,902
Source: NFA (2007)
From information based on a pilot study at the NFA
and based on estimates used by Moyini (2006), average
stumpage values per cubic metre (at 100 percent
management costs) for the different utilisation classes
were: Ushs 172,770 for Class I; Ushs 102,511 for Class
II; and Ushs 86,386 for Class III 7 (Table 17). From the
foregoing, the value of the standing timber in the
Compartments proposed for degazettement would be
as follows above:
Therefore, the value of the standing timber is Ushs
59,902,000,000 or US $ 35,236,471.
7 Historically, purchasers of standing timber have paid in
excess of the NFA’s reserve prices during timber auction exercises.
Hence, the reserve prices should be considered relatively conservative.
Table 17: Value of Annual Exploitable Timber Yield
38
Value of annual timber benefit stream
According to Karani et al (1997) a forest inventory
carried out in 1993 revealed that Mabira had an annual
exploitable timber yield based on trees of diameter
50cm and above and a 60-year felling cycle of 1m 3 /ha/
year. This is based on selective logging or what is known
as reduced impact logging (RIL). Allowing for in-growth
and considering a felling regime based on 40cm instead
of 50cm dbh as a minimum, the harvestable volume is
increased by 24 percent. Hence the estimates of Karani
et al (1997) were adjusted upwards by 24 percent, to
give annual exploitable volume of 1,868m 3 /year Class
I, 2,803 m 3 /year Class II and 4,240 m 3 /year for Class III
(Table 18). Using the same average stumpage values as
reported earlier, the annual stream of timber benefits
which would be foregone are as follows:
Class Volume (m 3 /year Value (Shs / year)
I 1,868 332,734,360
II 2,803 287,338,333
III 4,240 366,276,640
Totals 8,911 986,349,333
Source: Karani et al. (1997)
From the foregoing, the value of the annual exploitable
timber yield which would be foregone as a result of
degazettement becomes Ushs 986,349,333/year. The
equivalent present value at 12 percent social cost of
capital would be Ushs 8,219,577,775 (or US$ 4,835,046).
The Economic Valuation of the Proposed Degazettement of Mabira CFR | 2011