Pongola River Ecosystem Services and Poverty Alleviation PRESPA. Envecon 2010: Applied Environmental Economics Conference March 2010

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1 Hydrlgical mdelling f water allcatin, ecsystem services and pverty alleviatin in the Pngla Fldplain, Suth Africa Bruce Lankfrd, Catherine Pringle, Chris Dickens, Fnda Lewis and Myles Mander. Envecn 2010: Applied Envirnmental Ecnmics Cnference March 2010 Pngla River Ecsystem Services and Pverty Alleviatin PRESPA Funded by: NERC (UK) tgether with ESRC and DfID Part f their ESPA prgramme: Aim is t cntribute t reducing pverty and imprving well being in develping cuntries Partnership between University f East Anglia (UK) and the Institute f Natural Resurces (Pietermaritzburg) Case study in Nrthern KwaZulu Natal, Suth Africa Mzambique and Swaziland recgnised but nt investigated in this study 1

2 Ppulatin grwth Land use change MALENI PAN Land use arund dam Sci-ecnmic prfile n fldplain husehlds in target area using the fldplain peple apprximately Very high dependence n scial welfare grants 34% husehlds receive state pensins 92% husehlds receive child supprt grants 12% husehlds receive ther welfare grants (e.g. disability) 64% rely n scial grants fr abut 50% r mre f husehld incme High pverty levels - 62% (KZN Office f Premier, 2004) High dependence n fldplain t meet livelihd needs I hld my breath fr fear f lsing my crps if there is an unexpected fld Fldplain services Meet range f basic livelihd needs f husehlds living in pverty Prvisining, regulatry and supprting Pverty nt nly financial Includes ther dimensins f welfare such as health, scial netwrks, and access t public gds and services (educatin, infrmatin etc) Cultural services frm fldplain therefre als imprtant fr addressing sme f the nn-financial aspects f pverty PRESPA main research questins What are the main ecsystem services in the area? Situatin befre and after the dam was cnstructed? What water vlumes d users require? Wh & which stakehlders access services? What mnetary value d the services represent? Hw is the mnetary value apprtined t r accessed by pr peple? 2

3 Oct 1 Oct 2 Oct 3 Nv 1 Nv2 Nv 3 Dec 1 Dec 2 Dec 3 Jan 1 Jan 2 Jan 3 Feb 1 Feb 2 Feb 3 Mar 1 Mar 2 Mar 3 Apr 1 Apr 2 Apr 3 May 1 May 2 May 3 Jun 1 Jun 2 Jun 3 Jul 1 Jul 2 Jul 3 Aug 1 Aug 2 Aug 3 Sep 1 Sep 2 Sep 3 Flw (cumecs) Hydrlgical bjectives Water-based prvisining services cnverted t direct livelihd gds Aim was t mdel the vlumes f river water utilised within a livelihds activity r sectr. E.g. Jzini dam, Makhatini, Natural resurces, etc. T ascertain the ecnmic value by grss incme frm water use T determine the % f that value accruing the pr peple in the sectr r activity Original river flw u/s f dam Sectr Water demand Ttal water value Water value t prest Urban areas (Jzini) Dam turism Mkuze farms Makhathini Cash crps Municipal recrds f vlumes (withdrawn & cnsumed) Annual evapratin (cnsumed) Abstractin recrds & license (withdrawn & cnsumed) CWR (withdrawn & cnsumed) CWR (withdrawn & cnsumed) Natinal estimate f Prvincial estimate f husehld beneficiatin % pr in ppulatin f water Ttal turist revenue Blue cllar laburers/dependents Ttal revenue per tnne cane Blue-cllar laburers /dependents Ttal revenue t mixed Existing farms s 20% crpping pr as labur Ttal revenue per tnne Apprx 10% pr crp Mixed crps Flding patterns (ET & seepage: used/cnsumed) Natural Flding patterns (ET & resurces seepage: & fish Used/cnsumed) Cattle Flding patterns (ET & seepage: Used/cnsumed) Ttal revenue t mixed crpping Ttal value Ttal value 90% pr 100 % pr 100 % pr Scenaris fr the future Unstructured ecnmy Pngla River Ecsystem Services and Pverty Alleviatin Lw level f gvernance Freedm t develp as desired Water releases variable and n demand by varius players Scenari, belw Base flw thrugh year (cumecs) Peak flw fr first release (Date, cumecs) Peak flw fr secnd release (Date, cumecs) Size f cash crps prject (ha) % Husehlds access NR and Fish diversified ecnmy single sectr ecnmy Gd gvernance Develpments t ensure diversity f land use cupled with maintenance f the fldplain Water releases ptimised fr range f users Single sectr (e.g. agriculture) dminates Fldplain ecsystem nt catered fr Water releases t suite the single sectr flding minimised Sc 1 Unstructured (status qu) Sc 2 diverse Sc 3 single sectr 5 Sept, 200 Nne % 5 Oct, 150 March, % 12 Nne Nne % 3

4 Area flded (ha) Flding patterns fr agriculture and NR/fish/cattle River flds drive area f pans filled and wetted Scenari 1 - unstructured River flw in cumecs Scenari 2 structured diversified Scenari 3 single sectr MCM Scenari 1 - unstructured Scenari 2 structured diversified 4

5 Scenari 3 single sectr MCM Grss revenue frm natural resurces (rand/husehld/ year) Descriptin Value Avg. incme per hh per year frm fish R Avg. incme per hh per year frm waterlilies R 0.00 Avg. incme per hh per year frm umhlanga R Avg. incme per hh per year frm thatching-grass R 0.00 Avg. incme per hh per year frm ibhuma R 0.00 Avg. incme per hh per year frm figs R 0.00 Avg. incme per hh per year frm natural resurces R Avg. return (frm wn use) per hh per year frm fish R Avg. return (frm wn use) per hh per year frm waterlilies 1 R Avg. return (frm wn use) per hh per year frm umhlanga R Avg. return (frm wn use) per hh per year frm thatching R Avg. return (frm wn use) per hh per year frm ibhuma R Avg. return (frm wn use) per hh per year frm figs 2 R 1, Avg. return (frm wn use) per hh per year frm NR R 3, Ttal Avg. incme per hh per year frm fish R Ttal Avg. incme per hh per year frm waterlilies R Ttal Avg. incme per hh per year frm umhlanga R Ttal Avg. incme per hh per year frm thatching-grass 3 R Ttal Avg. incme per hh per year frm ibhuma 4 R Ttal Avg. incme per hh per year frm figs R 1, Ttal Avg. incme per hh per year frm natural resurces R 3, Value accruing t each sectr, ttal and prest (Rand/year) Scenari 1: unstructured Benefits accruing t each sectr, ttal and prest (Rand/year) Scenari 2: structured diversified Benefits accruing t each sectr, ttal and prest (Rand/year) Scenari 3: single sectr Ttal and pverty-related ecnmic value fr water depletin 5

6 Value f water expressed vlumetrically in Rand and US dllars = rand/$ Sectr Rand/m3 US $/m3 Urban Dam turism Mkuze Makatini Agric cash masterplan Mixed fldplain NR & fish Cattle Challenges & Cnstraints Water Users Assciatin (WUA) frmed in the 1990s WUA nt financially self-sufficiency meetings nt being held with full representatin Disengagement f key stakehlders n fld release planning and ntificatin Limited capacity f the WUA t undertake take n a brader ecnmic and envirnmental management f the fldplain But despite reservatins, rdinary residents want t engage with the WUA prcess (Realise they cannt be indifferent t it) Cnclusins Apprach appears t indicate where water generates scales and types f benefits. Sufficient water exists fr tw fld events Ttal value f water t prest is highest n fldplain Mnetised value f cubic metre f water in eclgy/fld related livelihds is very lw (vlumes used are v large) Cnclusins Fld events allw bth eclgy-based livelihds and frmal agriculture Pverty alleviatin via fld releases and ther interventins wrking tgether (but nt via rapid gains?) What is the best gvernance system that can facilitate the achievement f any desired scenari? Hydrlgical mdelling f water allcatin, ecsystem services and pverty alleviatin in the Pngla Fldplain, Suth Africa b.lankfrd@uea.ac.uk 6