March 2012 Cost and Benefit Analysis: Channel Dredging in Koh Kapik, Cambodia KONG Kimsreng, SUN Kong & LOU Vanny INTERNATIONAL UNION FOR CONSERVATION OF NATURE (IUCN) - BUILDING COASTAL RESILIENCE
I. Introduction Situated entirely in Peam Krasop Wildlife Sanctuary (PKWS) in Koh Kong province, Koh Kapik is one of six communes with well-organized administrative boundaries, located about 30 kilometers to the southwest of Koh Kong town. It is composed of three different villages - Koh Kapik I, Koh Kapik II and Koh Sralao. The locations of Koh Kapik I and Koh Kapik II are close to each other on the mainland of Koh Kapik Island engulfed by seawater and mangrove forests, approximately 7-8 kilometers away from Koh Sralao village. According to commune statistics (2011), the total number of households in the two villages of Koh Kapik I and Kok Kapik II were 326 with a total population of 1,618 residents; about 90 percent of whom are artisanal fishers and the rest are civil servants and local vendors. However, the livelihoods of local people in this commune are at risk due to the decreasing water level of the creek caused by soil erosion, accumulation of rotten leaves, sedimentation and mangrove cutting for charcoal production having taken place since 1990, as well as a shortage of freshwater for household consumption. The dredging of the 2,160 meters-long natural access channel is the priority development activity identified in the commune development plan (2013). Having deemed this the priority issue, the Cost-Benefit Analysis (CBA) was carried out in order to attain a deeper understanding of the proposed development project. II. Objective The main objective is to conduct a cost-benefit analysis of the investment for dredging the 2,160 meters-long access channel. III. Methodology Cost-benefit analysis (CBA) was applied before implementation of the dredging project. The analysis was carried out as part of the project planning for a single investment in preparation of funds allocated for implementing it. A cost-benefit analysis was conducted in terms of costs and benefits of the investment in dredging of the access channel situated in Koh Kapik I and Koh Kapik II, villages of Kok Kapik commune, Koh Kong Province. It was carried out based upon the local people s perceptions and traditional knowledge on 18 May 2012 in the Community Protected Area (CPA) meeting room, located in Koh Kapik II village. Sixteen key informants who have a good general knowledge and understanding of the CPA in Kok Kapik commune were invited to discuss the estimation of costs to invest in the dredging of the access channel (economic, social, natural and human well-being respectively) and of benefits arising following intervention (economic, social, natural and human wellbeing). This analysis was facilitated by the IUCN Cambodia team. A well-designed format of variables to be collected for the CBA was prepared in advance by the regional staff of IUCN to make it easier for the IUCN Cambodia team to gather relevant information on relative costs and benefits of alternative projects, different design or technology options, and features intended to protect the environment or improve natural resource management. Appropriate use of this information can assist in maximizing the economic and poverty reduction impacts of investment in the access channel on the costs and benefits of its dredging. 2
A model for the cost-benefit analysis of the investment in the access channel is that analysis will be quantified (but not valued in money terms) by looking at four different factors Economic, Social, Natural, and Wellbeing. Results According to the Sovanakhum road engineering company manager Mr Nak Loung, the estimated price of the dredging of the 2,160 meters-long access channel is USD 25,000. Local perception and knowledge on costs and benefits of the investment in the dredging of the access channel are as follows. Summary of Participatory Cost-Benefit Analysis of the Channel Dredging project Proposed Access Channel Dredging Factors Economic Factors Financial and in-kind budget and commitment of local community, local government and project, etc. Costs (0-5) (5) Financial contribution from other sources: Commune development fund in place (55 million Riel = USD 13,400) of which 80% will be allocated for the dredging of the channel, and the rest will go to other commune development activities. Benefits (0-5) (0) Financial contribution from local people of USD 100. Support from IUCN Cambodia Livelihood diversity +income generation This local physical infrastructure is the highest priority, as indicated in the commune development plan. The dredging of the access channel will make a significant contribution towards the improvement of the villagers livelihoods through: 24 hour access in and out of the village Increasing transportation of products/goods for sale/consumption only Saving money from reducing the spending on oil 3
Increasing fishing trips at any time to collect fish and other aquatic animals and plants for home consumption and sale for household income generation. Reaching poor and marginalized households (1) Poor and marginalized people can make a small amount of contribution for the dredging of the access channel. (5) Poor and marginalized people are relatively more vulnerable because of their sole dependence on the collection of fish and other natural resources. Such an activity will offer a wide range of benefits to them as it will: Facilitate more opportunities to go fishing to increase their household income as they no longer depend on the tidal period Feel more secure about their livelihood through more access to resources such as water, fish etc. Reduce their debt because of an increased income from access to other fishing areas Social Factors Social relations and community solidarity Active participation in planning and design of the project Contribute to the monitoring during rehabilitation (5) Increase communications and linkages between local people and outsiders Good cooperation in suppression of illegal activities Promote the quality and quantity of social interactions Expand the size of the waterway and decrease traffic accidents Local people feel happy about the access channel Change the state of joblessness and reduce the pastime of playing cards People will be more busy due to work and will earn a higher income 4
Local institutions and governance; legal and political acceptability Strong support from local authorities stakeholders such as the Department of Environment, and local people The dredging of the access channel is the highest priority in the commune development plan Encourage government bodies/ngos to work and help in developing the village Full involvement in planning, designing, monitoring and maintenance Gender sensitivity Both male and female community members have equal rights and the opportunity to benefit from the rehabilitated/dredged channel Natural Resource and Environment Factors Natural Resources Ecosystem Services Short-term impacts on mangroves and other aquatic species during the dredging A small number of mangrove trees and aquatic animals along the channel will be affected and also lost during the dredging. Nursery and feeding grounds of fish and other aquatic animals will be affected. (2) Mangrove roots that serve to prevent soil erosion and nutrients from being washed away will be affected Edible food will be lost during the dredging Destruction of natural resources, esp. mangroves, will be reduced Quality of water will be improved and the health of the ecosystem will be better accordingly Population density of aquatic fauna and flora will be increased. After one or two years the mangrove will re-grow. Species like mangrove, small fish, crab and other aquatic resources will return. More fish and other aquatic fauna will be available. One or two months later, water quality will get better and all species will return 5
Species Well-being Factor Health and safety (1) A small number of aquatic flora and fauna along the channel will be lost and affected In general, species will come back. Serve as a good pathway for migratory fish because of greater water depth Size of migratory pathways for fish and other aquatic animals is larger. Very important for health care and easier to travel to the hospital. Reduce dangerous travel on open sea (strong waves and storms). Livelihoods will be more secure Education, sport and recreation Increase opportunities for village children to go to school and decrease the school dropout rate Improve the knowledge of local people. Can attract tourists to come here Food Security Easy to transport food and other fishery resources to the market and also to bring in other necessities from the markets Have more time to find fishery resources for home consumption. TOTAL 15 49 B/C Ratio 3.3 IV. Discussion As indicated in the commune development plan, the dredging of the access channel is considered the highest priority. The cost benefit (B/C) ratio was 3.3. This showed that benefits arising from investment of the access channel outweigh the costs. Even though the price of dredging of the access channel is huge (Estimated USD 25,000), its benefits are of great significance to local people s livelihoods completely dependent on it for their mobility. Even though the dredging of the 2,160 meter-long access channel is beneficial for the improvement of local people s livelihoods, it also has impacts on natural resources. Therefore, the process of planning for the dredging in an appropriate and careful manner should essentially involve some stakeholders such as the Provincial Department of Environment to minimize impacts on natural resources. 6
Access channel improvement is perceived as a high priority by local communities for their livelihood activities. Successful investments in the access channel will achieve some or all of the following effects and benefits: Reduce travel costs/time; Improve access to and reduce cost of goods and services; Increased frequency of travel; Re-allocate time saved in travel to other livelihood activities; Increase opportunities for income-generating activities; Improve access to and uptake of public services such as health, education etc. V. Conclusion The dredging of the access channel is of the highest priority and plays a significant role in raising the living standards of local people in Koh Kapik commune. It connects villages in this commune to other sources of livelihoods; such as fishing, collection of shrimps, crabs, snails and other aquatic flora and fauna as well as other social activities. The dredging not only contributes to the improvement of local people s livelihoods, but also builds their resilience to climate uncertainty caused by natural events such as storms. Furthermore, it is also beneficial for aquatic animals through the betterment of pathways from one area to another. It will offer a wide range of benefits to local people and aquatic animals on which they are heavily dependent for their livelihoods. Local people in Koh Kapik commune will feel secure when the access channel is dredged because they can travel on a 24-hour basis. For more information, please contact: Mr. KONG Kimsreng, Senior Programme Officer, IUCN Cambodia kimsreng.kong@iucn.org Mr. SUN Kong, Field Coordinator, IUCN Cambodia kong.sun@iucn.org Mr. LOU Vanny, Programme Officer vanny.lou@iucn.org Ms. Dararat Weerapong, Senior Communications Officer, IUCN Asia dararat.weerapong@iucn.org Ms. SAY Chenda, Communication Officer, IUCN Cambodia chenda.say@iucn.org BCR Website: www.iucn.org/building-coastal-resilience INTERNATIONAL UNION FOR CONSERVATION OF NATURE (IUCN) This publication has been produced with the assistance of the European Union. Its contens are the sole responsibility of IUCN and can in no way be taken to refl ect the views of the European Union. 7