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Feasibility Assessment of Marine Protected Areas (MPA) Sustainable Feasibility Assessment of Marine Protected Areas (MPA) Sustainable Financing Mechanisms for the multi-national seascape of the Sulu Sulawesi Seas Marine Ecoregion (SSME) Sabah Final Report PE Research Planning & Economic Consultants Chang Yii Tan, Yeo Bee Hong, Lim Ai Lee Advisor: Marie de Longcamp 16 July 2010 Final Report: Feasibility Assessment of Marine Protected Areas (MPA) Sustainable Financing Mechanisms for the multi-national seascape of the Sulu Sulawesi Seas Marine Ecoregion (SSME) Table of Contents Acknowledgements ....................................................................................................... iii Acronyms ........................................................................................................................ v Executive Summary ...................................................................................................... vii 1. Background ............................................................................................................. 1 1.1 Study Objectives ................................................................................................ 2 1.2 Definition and Rationale...................................................................................... 3 1.3 Approach ............................................................................................................ 3 1.4 Background of MPAs .......................................................................................... 6 1.5 Layout of this Report .......................................................................................... 7 2. Institutional and Policy Framework for Conservation Financing ......................... 8 2.1 Introduction......................................................................................................... 8 2.2 Institutional Framework for Conservation ............................................................ 8 2.3 Financial Framework for Conservation ............................................................... 9 2.3.1 Financing Conservation at the Federal Level ............................................. 11 2.3.2 Financing Conservation at the State Level ................................................ 12 2.4 Other Sources of Conservation Financing ........................................................ 13 2.5 Conservation Financing Policies ....................................................................... 13 2.6 Financing Mechanisms in Sabah ...................................................................... 15 3. Findings on Financial Assessment ...................................................................... 16 3.1 Method Used and Data Availability ................................................................... 16 3.2 Assessment of Financial Needs ........................................................................ 17 3.2.1 Sabah Parks .............................................................................................. 18 3.2.2 Sabah Wildlife Department ........................................................................ 19 3.3 Sustainability Elements of the Financial System ............................................... 23 3.3.1 Legal, Regulatory and Institutional Framework .......................................... 23 3.3.2 Business Planning and Use of Cost-Effective Management Tools ............. 24 3.3.3 Tools for Revenue Generation ................................................................... 24 3.3.4 Scoring of the UNDP Scorecard ................................................................ 25 3.4 Findings from the financial and policy assessment (UNDP Scorecard) and Other Key Observations ........................................................................................................ 25 4. Sustainable Financing Mechanisms .................................................................... 28 4.1 Existing Mechanisms Adopted in MPAs ............................................................ 32 4.1.1 Successes, Challenges, and Financial Sustainability ................................. 33 4.2 SWOT Analysis ................................................................................................ 46 4.3 Potential Mechanisms: Feasibility and SWOT analysis ..................................... 47 4.3.1 Feasibility of mechanisms potential ........................................................... 47 4.4 Strategies for Implementing Sustainable Financing Mechanisms ..................... 57 5. Key Findings and Recommendations .................................................................. 60 5.1 Key Findings ..................................................................................................... 60 5.2 Recommendations ............................................................................................ 63 References .................................................................................................................... 67 Annex 1: Terms of Reference ................................................................................. 69 Annex 2: Constitutional Powers and Jurisdiction of the Government ................ 74 Annex 3: Proposed Feasibility Questions for Each Mechanism .......................... 77 PE Research i Final Report: Feasibility Assessment of Marine Protected Areas (MPA) Sustainable Financing Mechanisms for the multi-national seascape of the Sulu Sulawesi Seas Marine Ecoregion (SSME) Annex 4: Description of Sustainable Financing Mechanisms .............................. 79 Annex 5: Types and Description of Funds ............................................................ 80 Annex 6: Important Factors for Establishing a Trust Fund .................................. 81 PE Research ii Final Report: Feasibility Assessment of Marine Protected Areas (MPA) Sustainable Financing Mechanisms for the multi-national seascape of the Sulu Sulawesi Seas Marine Ecoregion (SSME) Acknowledgements We would like to thank Dato Suzannah Liew for being instrumental in setting up and chairing the steering committee meetings of the project. We would also like to thank the members and individuals who attended of the Steering and Technical Committee meetings from: Ministry of Tourism, Culture and Environment (Dato Suzannah Liew, Mr. William Baya, Pn. Mary Malangking, Pn. Rosalind Justine), Sabah Parks (Mr. Paul Basintal, Mr. Ludi Apin, and Mr. George Gangko), Sabah Wildlife Department (Dr. Laurentius Ambu and Mr. Peter Malim), Economic Planning Unit (Pn. Shamsiah Hj. Jirat, En. Murad Abd. Rashid), Sabah Fisheries Department (Dr. Norasma Dacho), Sabah Forestry Department (Mr. Awangku Effendy, Encik Pilis Malim, Puan Radziah Abd. Ghani), Sabah Biodiversity Centre (Dr. Abdul Fatah Bin Amir and En. Syahrin Samsir), Sabah Tourism Board (Pn. Baizurawani Richard), Sabah Lands and Survey Department (Mr. Freddie Kou, Encik Juanis Majanil) and the District Office of Kudat (Encik Yassin Nasir). The authors are also grateful to the following people who contributed ideas and information during our interviews: • Economic Planning Unit, Ms. Teo Poh Loon, Pn. Shamsiah Hj. Jirat • Ministry of Finance, Ms. Janice Lim, Ms. Evina Brenda Majimbun, Ms. Junie Doris Yapp • Sabah Parks, (Mr. Paul Basintal, Mr. Ludi Apin, Mr. George Gangko, Fazrullah Rizally Abdul Razak) • Sabah Wildlife Department, Dr. Laurentius Ambu • Sabah Fisheries Department, Dr. Norasma Dacho • Sabah Biodiversity Centre, Dr. Abdul Fatah Bin Amir and En. Syahrin Samsir • Semporna Darwin Initiative Project, Ms. Helen Brunt • WWF-Malaysia, Dr. Hj. Rahimatsah Amat, Mr. Ken Kassem, Ms. Melinda U, Ms. Tan Hui Shim • Reef Guardian, Ms. Achier Chung Fung Chen • Marine Research Foundation, Dr. Nicolas J. Pilcher The authors would also like to acknowledge the contribution of Mr. George Gangko of Sabah Parks, Mr. Peter Malim of the Sabah Wildlife Department and Ms. Chung Fung Chen of Reef Guardian for facilitating and collating the necessary data required for analysis. The assistance of Ms. Mary Malangking, and Ms. Rosalind Justine and Ms. Josia Madingkir from the Ministry of Tourism, Culture and Environment and Ms. Betty Gaisong from WWF-Malaysia who diligently helped set up meetings and preparations deserves special mention. The project also benefited from the assistance of Ms. Tan Say Wan of PE Research Sdn. Bhd. who helped with the formatting and diagrams of the presentation materials. From the WWF team, we would like to acknowledge Mr. Kevin Hiew who provided the significant of role initiating the project; Mr. Ken Kassem, for his wonderful support to the PE Research iii Final Report: Feasibility Assessment of Marine Protected Areas (MPA) Sustainable Financing Mechanisms for the multi-national seascape of the Sulu Sulawesi Seas Marine Ecoregion (SSME) project and last but not the least Ms. Marie de Long Camp for her enormous contribution by providing important insights and technical guidance from the inception to the completion of the project. The authors also appreciate the inputs from Mr. Jon Tua of WWF US who contributed ideas and materials on conservation finance. The authors would also like to thank Ms. Lida Pet Soede for facilitating the initial phase of the project and WWF Coral Triangle Program for providing the financial support for the project. The content of the report represents that of the authors and any errors or omissions remains the responsibility of the authors. PE Research iv Final Report: Feasibility Assessment of Marine Protected Areas (MPA) Sustainable Financing
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