Contracting for Village Contracting for Village Provision of Ecological Provision of Ecological Services Services

Examples and Lessons from Examples and Lessons from Northern TanzaniaNorthern Tanzania

PES Agreements in Tanzania PES Agreements in Tanzania are Well-Establishedare Well-Established

Village-operator tourism Village-operator tourism concession agreements in concession agreements in place in northern Tanzania place in northern Tanzania since early 1990’ssince early 1990’s

Provide a service (access to Provide a service (access to land, resource use land, resource use restrictions) in exchange for restrictions) in exchange for paymentspayments

Extensive lessons to be Extensive lessons to be learned regarding local learned regarding local governance, contract governance, contract structure, negotiating process structure, negotiating process and capacity, etcand capacity, etc

Tourism Revenue from 7 Tourism Revenue from 7 villages in Loliondo villages in Loliondo DivisionDivision

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

District Revenue

Village Revenue

Ololosokwan Village Income

3,000

58,866

1,586

832

Hunting

Tourism

District Council Funds

Other

Key Lessons Learned, Key Lessons Learned, 1991-20091991-2009

Villages and private ‘buyers’ of tourism Villages and private ‘buyers’ of tourism services (access to land and wildlife, exclusive services (access to land and wildlife, exclusive use etc) can develop stable, long-term, use etc) can develop stable, long-term, mutually-beneficial business relationshipsmutually-beneficial business relationships

Village capacity to negotiate increases over Village capacity to negotiate increases over timetime

Village governance a key variable which can Village governance a key variable which can lend stability to these ‘PES’ agreement or lend stability to these ‘PES’ agreement or undermine communal livelihood gainsundermine communal livelihood gains

Building from Existing Building from Existing Models: the Terrat Models: the Terrat ‘Easement’‘Easement’

Key wildlife habitat Key wildlife habitat not suitable for not suitable for tourismtourism

Tourism companies Tourism companies contract with village contract with village for protection of for protection of wildlife habitatwildlife habitat

Keys to Successful Implementation Keys to Successful Implementation of PES Scheme in Terrat Village, of PES Scheme in Terrat Village, 2004-present2004-present

PES ‘on the margin’; integrating ecological service PES ‘on the margin’; integrating ecological service provision with existing livelihood activities (dry season provision with existing livelihood activities (dry season livestock grazing reserve) in easement area keeps livestock grazing reserve) in easement area keeps opportunity costs minimal and makes PES highly cost-opportunity costs minimal and makes PES highly cost-effectiveeffective Easement covers 9300 ha at ~$8,000 total costs per year; Easement covers 9300 ha at ~$8,000 total costs per year;

$.86/ha/annum;$.86/ha/annum; Multiple local cash and non-cash benefits Multiple local cash and non-cash benefits

(employment, village payment, land tenure security)(employment, village payment, land tenure security) Enabling environment due to precedent of village-Enabling environment due to precedent of village-

tourism agreements in neighboring areas and reliance tourism agreements in neighboring areas and reliance on existing village-level governance institutionson existing village-level governance institutions

Lessons for Community-Lessons for Community-based Carbon Forestry based Carbon Forestry ProjectsProjects

Village Council/Village Assembly provides an Village Council/Village Assembly provides an enabling contracting structureenabling contracting structure For communal benefits to be effective realized there For communal benefits to be effective realized there

is a strong need to promote transparent local is a strong need to promote transparent local governance by ensuring all negotiations and governance by ensuring all negotiations and payments are communicated and approved by V. payments are communicated and approved by V. AssemblyAssembly

Marginal analysis of opportunity costs and Marginal analysis of opportunity costs and potential for integrating land/resource use in a potential for integrating land/resource use in a given area will be key in terms of costs-benefits given area will be key in terms of costs-benefits for both buyers and sellersfor both buyers and sellers