Contracting for Village Provision of Ecological Services

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Contracting for Village Provision of Ecological
Services

• Examples and Lessons from Northern Tanzania

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PES Agreements in Tanzania are Well-Established

• Village-operator tourism concession agreements in
  place in northern Tanzania since early 1990s
• Provide a service (access to land, resource use
  restrictions) in exchange for payments
• Extensive lessons to be learned regarding local
  governance, contract structure, negotiating
  process and capacity, etc

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Tourism Revenue from 7 villages in Loliondo
Division
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Key Lessons Learned, 1991-2009

• Villages and private buyers of tourism services
  (access to land and wildlife, exclusive use etc)
  can develop stable, long-term, mutually-beneficial
  business relationships
• Village capacity to negotiate increases over time
• Village governance a key variable which can lend
  stability to these PES agreement or undermine
  communal livelihood gains

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Building from Existing Models the Terrat
Easement

• Key wildlife habitat not suitable for tourism
• Tourism companies contract with village for
  protection of wildlife habitat

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Keys to Successful Implementation of PES Scheme
in Terrat Village, 2004-present

• PES on the margin integrating ecological
  service provision with existing livelihood
  activities (dry season livestock grazing reserve)
  in easement area keeps opportunity costs minimal
  and makes PES highly cost-effective
• Easement covers 9300 ha at 8,000 total costs
  per year .86/ha/annum
• Multiple local cash and non-cash benefits
  (employment, village payment, land tenure
  security)
• Enabling environment due to precedent of
  village-tourism agreements in neighboring areas
  and reliance on existing village-level governance
  institutions

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Lessons for Community-based Carbon Forestry
Projects

• Village Council/Village Assembly provides an
  enabling contracting structure
• For communal benefits to be effective realized
  there is a strong need to promote transparent
  local governance by ensuring all negotiations and
  payments are communicated and approved by V.
  Assembly
• Marginal analysis of opportunity costs and
  potential for integrating land/resource use in a
  given area will be key in terms of costs-benefits
  for both buyers and sellers