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Lake Natron Cost Benefit Analysis

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Lake Natron Cost Benefit Analysis A COMPARATIVE STUDY OF COSTS AND BENEFITS OF SODA ASH MINING AND PROMOTION OF ECOTOURISM AND SUSTAINABLE USE OF NATURAL RESOURCES IN LAKE NATRON BASIN, TANZANIA FINAL REPORT Reuben M.J. Kadigi Freddy T. Kilima Japhet J. Kashaigili Financed by: - i - 16/05/2012 ACKNOWLEDGEMENTS The authors of this report wish to acknowledge with appreciation the BirdLife International and the Wildlife Conservation Society of Tanzania (WCST) for facilitating the Cost Benefit Analysis (CBA) study in Lake Natron area. Sincere acknowledgements are due to Dr. Julius Arinaitwe, the Regional Director - BirdLife International Africa Partnership Secretariat; Mr. Ken Mwathe, the Project Manager, Lake Natron Conservation Project and Coordinator, Lake Natron Consultative Group; Ms. Jane Gaithuma, the Programme Manager – Regional Policy and Advocacy; Mr. Ademola Ajagbe, the Programme Manager – Science and IBA Conservation Programme; Mr. Paul Kariuki Ndang’ang’a, the Programme Manager – Species Programme; and Ms. Rodah Owako, the Project Officer – EACF Consolidating Biodiversity Data and Information Project, at the Birdlife International Africa Partnership Secretariat, icipe campus in Nairobi Kenya; and Ms. Victoria Ferdinand, the then Ag. CEO of WCST; Mr. Stephen Mmassy, the Policy and Advocacy Officer of WCST; and Mr. Peter Mziray, the Chairperson of the Science and Project Sub-Committee of WCST Ex-Com for their inputs and for facilitating the various administrative issues to ensure that the study is successfully conducted. The authors would also wish to acknowledge Mr. Stephen Runana, the Principal Engineer for Lake Natron, National Development Cooperation (NDC) in Dar Es Salaam Tanzania; Mr. Michael Odera, the Managing Director of TaTa Chemicals Magadi Limited in Kajiado, Kenya; Mr. John Salehe of WWF – ESAPO in Nairobi, Kenya; Mr. Petro Masolwa, WWF – TPO, Dar Es Salaam, Tanzania; Ms. Serah Munguti, Community and Advocacy Manager, NATURE KENYA, Nairobi; Mr. Erustus M. Kanga, Assistant Director of Ecosystems and Landscapes, Kenya Wildlife Service (KWS); Ms. Betty Buyu, Director, African Conservation Centre (ACC); John Komanga, Project Coordinator of the South Rift Association of Land Owners (SORALO); and Ms. Catherine Yaa, Coordinator of the East Africa Wildlife Society (Kenya Wetlands Forum) in Nairobi for their valuable inputs during consultations. The authors are also grateful to Dr. Paul Morling of RSPB in Cambridge, UK for his constructive ideas during the teleconference discussions; Dr. Hazell Thompson and Dr. Sarah Sanders of the RSPB in Sandy, UK, for their interest and support in the Lake Natron Cost and Benefits Analysis (CBA) study process. Many thanks are also due to Dr. Dominic Molloy and Dr. Adam Dutton of RSPB, for reviewing the drafts of this report. Sincere acknowledgements are also due to Mr. Silas Losinyari and Ms. Catherine Mrengera for assisting in the CBA field survey in Lake Natron area and data entry. Sincere acknowledgements are also extended to the local communities, respondents, political and village leaders, as well as the administrative and technical staff - ii - at all levels; and operators of lodges, campsites, tour companies and hunting blocks in the study area for their cooperation and availing information for this study. Valuable information, assistance and hospitality were received from different people. While acknowledging with thanks all those who availed information during the study, the authors are however solely responsible for any omissions, errors of interpretation, oversights and any other lapses that may be found in this report. Reuben M.J. Kadigi, Freddy T. Kilima, and Japhet J. Kashaigili 16th May 2012 Recommended Citation: Birdlife International (2012). A Comparative Study Of Costs And Benefits Of Soda Ash Mining And Promotion Of Ecotourism And Sustainable Use Of Natural Resources In Lake Natron Basin, Tanzania. BirdLife Africa Partnership Secretariat, Nairobi, Kenya - iii - EXECUTIVE SUMMARY 1.0 INTRODUCTION 1.1 Background Lake Natron area is renowned as an important Ramsar Wetland internationally. Although the area was listed as Tanzania’s second Ramsar site in 2001 its importance can be traced back from early 1960s when it started to feature as the only regular breeding area for the 2 – 4 million Lesser Flamingos (Phoeniconaias minor) in East Africa (Soussa et al., 2010); accounting for 75% of the global population (RAM Team, 2008; NORCONSULT, 2007). The species is classified as “Near Threatened”, indicating that it is considered as likely to qualify for a threatened category in the near future. It is listed in Column A of the African-Eurasian Migratory Waterbird Agreement (AEWA) action plan, Appendix II of the Bonn Convention (CMS) and Appendix II of the CITES convention, thus requiring special consideration. Lake Natron also supports over 50,000 individuals of other water-bird species, including large numbers of Palearctic migrants (Soussa et al., 2010; RAM Team, 2008; NORCONSULT, 2007). Lake Natron and its surrounding ecosystem are extremely important for biodiversity conservation, ecosystem services and for supporting the livelihoods of the local communities, which depend on pastoralism, eco and culture tourism, and small scale irrigation. In recent times however, there have emerged development plans which would threaten the integrity of the lake’s ecosystem, including the 2006 proposal to construct a soda ash processing plant at Wosi Wosi on the Eastern part of the lake which was submitted to the Government of Tanzania (GoT) by the Tata Chemicals Ltd of Mumbai, India. The proposed plant would produce 500,000 metric tonnes of soda ash annually, pump 561m3 of concentrated brine per hour from the lake and convert it into calcified soda ash (sodium bicarbonate) crystals for export (NORCONSULT, 2007; IBAs Programme of Kenya, 2007). In the process, the plant would require 11.5 megawatts of power and utilise approximately 129,000 litres of water per hour for both industrial and domestic use and would release 10m3 of sewerage water per hour (ibid). The development of the soda ash facility would also involve construction of associated infrastructure, including a new access road from Mto Wa Mbu or Arusha _ Namanga tarmac road to the plant, power plant, railroad, - iv - pipeline to carry soda slurry across the lake, and living accommodations for an estimated 1,225 construction workers and 152 permanent staff and their families (ibid). Although an Environmental and Social Impact Assessment (ESIA) for the proposed development was done and a report submitted to the National Environmental Management Council (NEMC) of Tanzania for evaluation and approval, the document was found to be revoltingly inadequate. There are some key issues that did not come out clearly in that report, especially the benefits and costs associated with the proposed soda ash project. The ESIA report had failed to capture the current and potential benefits that the natural resources (ecological, biological, cultural and social) of Lake Natron basin confer on the local, national, regional and international community. The proposed project treated the existing ecosystem services, culture and the community livelihoods derived from the ecosystem as free goods. In general, there are many other aspects of Lake Natron ecosystems which were not adequately evaluated in the ESIA report. These include the proposal to construct the Serengeti highway, and currently the Northern transport corridor, which entails the construction of a railway link to Lake Natron from Arusha that is intended to transfer soda ash from the proposed plant. The decision to establish a soda ash mining facility in a fragile ecosystem like Lake Natron needs to be adequately and precisely informed by a comprehensive study on the associated costs and benefits and foregone benefits from ecotourism and sustainable management of natural resources. Put differently, the true values and benefits from soda ash production need to be known a priori. These can only be known if the costs that the soda ash mining would impose on current and potential tourism activities, various forms of biodiversity (including lesser flamingo), the Maasai community livelihood system and culture are taken into account and precisely established. More importantly, the critical ecosystem services such as provision of dispersal habitats for wildlife, wild game and livestock pasture, just to mention few, must be brought to the equation. All these streams of costs and benefits need to be looked at from different levels: including the local, national and regional levels. The global perspective needs to be considered too. Based on this ground, the BirdLife International, a global partnership of conservation organisations that strives to conserve birds, their habitats and global biodiversity, working with people towards sustainability in the use of natural resources, invited consultants to undertake a Cost Benefit Analysis (CBA) for Lake Natron. The study was expected to bridge the existing gaps in knowledge by carrying out a CBA of the soda ash mining component, to provide information that would help make better informed decisions. The study drew from the - v - Total Economic Value (TEV) concept where goods and services that are not tradable in the market and yet have a value were taken into account. 1.2 Study Objectives The overall objective of the study was to compare the net benefits of sustainable management regime for Lake Natron with management based on the development of soda ash facility as currently proposed.
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