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

from non-timber forest products was estimated at UShs
573,622,450 as shown below.
NTFPs livelihood value
UShs 9,579/ha/year
Size of impact area
7186 ha
Annual benefit stream
UShs 68,834,694/year
Present Value of NTFPs
UShs 573,622,450 (or US$337,425)
C. PHARMACEUTICAL VALUE
Mabira CFR is rich in biodiversity. The area of impact of
the proposed degazettement represents 24 percent
of the total and, therefore, is likely to affect overall
biodiversity richness. Some biodiversity will definitely
be lost.
Biodiversity richness of a forest represents an option
value; and it is perhaps one of the least tangible
benefits of Uganda’s forests (Bush et al 2004). The value
of biodiversity lies partly in the development of plant-
based pharmaceuticals (Bush et al 2004; Emerton &
Muramira 1999; Mendelsohn & Balik 1997; Howard
1995; Pearce & Moran 1994; Ruitenbeek 1989). In
addition to undiscovered plant-based pharmaceuticals,
Howard (1995) reported that there is potential in wild
coffee genetic material. According to Bush et al (2004),
Uganda’s farmed coffee is being hit by a Fusarium wilt
against which no known cultural or chemical practices
appear to succeed and wild coffee is known to be
resistant to it (Bush et al 2004).
Various estimates have been made of the value of
forest biodiversity. Ruitenbeek (1989) estimated the
biodiversity of Korup Park in Cameroon at ₤0.1/ha/
annum. Pearce & Moran (1994) provided a range of
values for tropical forest, ranging from US$0.1/ha to US
$ 21/ha.
Mendelsohn & Balik (1997) produced a value for
undiscovered plant-based drugs in tropical forest with
average plant endemism of US$3/ha. Howard (1995)
suggested that Uganda’s forests are not as species rich
as Korup Park and the country would be less competitive
in say supply of Prunus africana. Bush et al (2004),
suggest an average value for biodiversity at US$1.50/ha/
year. Simpson et al (1994) estimated the pharmaceutical
value of ‘hot spot’ land areas in various countries of the
world. Their estimate of the willingness to pay (WTP) of
the pharmaceutical companies was $2.10 for Tanzania
and $1.1 for Ivory Coast. Hence the Bush et al (2004) is a
very reasonable estimate. Using this estimate the future
pharmaceutical opportunities foregone in the impact
area would be UShs 18,324,300/year (using an exchange
rate of 1 US$ = UShs 1700). This annual benefit stream
translates into a present value of UShs 152,702,500 (or
US$898,825).
D. DOMESTIC WATER CONSERVATION
During Focus Group Discussions with communities
surrounding Mabira CFR and living in the forest enclaves,
they revealed that to them the most important use of
the forest was for water collection. All the surrounding
communities and those living in the forest enclaves, said
they get their water from the forest. This view tallies with
the observation of Bush et al (2004), where the forests
surveyed across Uganda represented important sources
of water for local communities.
Bush et al (2004) estimated the mean value of water
provision for both humans and livestock per household
at UShs 18,415 per annum, and ranges from UShs 12,078
per annum for Budongo CFR to UShs 30,928 per annum
for Rwenzori Mountains National Park. In this report,
the value for Budongo CFR which is relatively similar to
Mabira CFR was used in estimating community water
benefits.
Muramira (2000) estimated the number of households
in the enclaves and within the proximity of Mabira at
15,631. Assuming population growth rate of 3.4 percent
per annum (UBOS 2002), by 2007, this population would
have increased to about 19,753 households. Therefore
multiplying the mean value of water provision of UShs
The Economic Valuation of the Proposed Degazettement of Mabira CFR | 2011 41