NBI Technical Reports: Wetlands and Biodiversity series Economic Assessment of Wetland Biodiversity and Ecosystem Services as an Input for Development of Wetland Investment Plans: A Case Study of the Sio-Siteko Transboundary Wetland in Kenya and Uganda WRM /WBS-2020-04 Document Sheet This Technical Report series publishes results of work that has been commissioned by the member states through the three NBI Centers (Secretariat based in Entebbe- Uganda, the Eastern Nile Technical Regional Office based in Addis Ababa - Ethiopia and the Nile Equatorial Lakes Subsidiary Action Program Coordination Unit based in Kigali - Rwanda. The content there-in has been reviewed and validated by the Member States through the Technical Advisory Committee and/or regional expert working groups appointed by the respective Technical Advisory Committees. The purpose of the technical report series is to support informed stakeholder dialogue and decision making in order to achieve sustainable socio-economic development through equitable utilization of, and benefit from, the shared Nile Basin water resources. Document Citation NBI Technical Reports- WRM 2020-04 Economic Assessment of Wetland Biodiversity and Ecosystem Services as an Input for Development of Wetland Investment Plans: A Case Study of the Sio-Siteko Title Economic Assessment of Wetland Biodiversity and Ecosystem Services as an Input for Development of Wetland Investment Plans: A Case Study of the Sio-Siteko Series Water Resources Management 2020-04 Number Responsible and Review Responsible Nile-Secretariat NBI Center Responsible Dr. Abdulkarim Seid and Mr. Leonard Akwany NBI Document Nile Basin Initiative Wetlands Task Team and Lead Consultant (March 2020) Review Process Final Nile Basin Initiative Wetlands Task Team and Lead Consultant (March 2020) Version endorsed Author / Consultant Consultant Devlink Resources Consultants Firm Authors Mr. Philip Otieno Project Funding German Federal Ministry for Environment, Nature Conservation and Nuclear Safety Source (BMU) Project Biodiversity Conservation and Sustainable Utilization of Ecosystem Services of Name Wetlands of Transboundary Relevance in the Nile Basin Project 15_IV_045_Afrika_G_Biodiversitätsschutz Nil-Becken Number Disclaimer The views expressed in this publication are not necessarily those of NBI’s Member States or its development partners. Trademark names and symbols are used in an editorial fashion and no intention of infringement on trade mark or copyright laws. While every care has been exercised in compiling and publishing the information and data contained in this document, the NBI regrets any errors or omissions that may have been unwittingly made in this publication. The NBI is not an authority on International Administrative Boundaries. All country boundaries used in this publication are based on FAO Global Administrative Unit Layers (GAUL). ©Copyright Nile Basin Initiative Table of Contents Table of Contents ............................................................................................................................. i List of Tables ................................................................................................................................. iv List of Figures ................................................................................................................................. v List of Acronyms ............................................................................................................................. i Executive Summary ......................................................................................................................... i Chapter 1: Introduction ................................................................................................................... 1 1.1. Background .......................................................................................................................... 1 1.2. Purpose of the study ............................................................................................................. 2 1.3. Objectives and research questions that guided the study ..................................................... 2 1.4. The target audience of the study .......................................................................................... 2 Chapter 2: Overview of Economic Valuation of Wetland Resources ............................................ 4 2.1. Value and Value systems ..................................................................................................... 4 2.2. Valuation .............................................................................................................................. 5 2.3. The concept of willingness to pay ....................................................................................... 5 2.4. Ways of measuring the value of ecosystem services ........................................................... 6 2.5. Valuation techniques ............................................................................................................ 6 Chapter 3: Methodology ................................................................................................................. 1 3.1. Introduction .......................................................................................................................... 1 3.2. Study Location, boundaries and coverage ........................................................................... 1 3.3. Data Needs and Sources....................................................................................................... 4 3.3. Data Collection .................................................................................................................... 7 3.3.1. Key Informant Interviews ............................................................................................. 7 3.3.2. Focus Group Discussions .............................................................................................. 7 3.3.3. Household Survey ......................................................................................................... 8 3.3.4. Secondary data ............................................................................................................ 12 3.4. Data Analysis ..................................................................................................................... 12 3.4.1. Analysis of market price data for baseline economic values of provisioning services ............................................................................................................................................... 12 i 3.4.2. Analysis of contingent data for baseline economic values of biodiversity maintenance ............................................................................................................................................... 15 3.4.3. Analysis of damage cost avoided for baseline economic value for flood attenuation 16 3.4.4. Analysis of replacement cost for baseline economic value of water purification and ground water recharge........................................................................................................... 18 3.4.5. Cost benefit analysis for the wetland management options ........................................ 19 Chapter 4. The Ecosystem Services-Economic Linkages and the Beneficiaries ............................ 1 4.1. Provisioning services ........................................................................................................... 1 4.3. Regulating Services ........................................................................................................... 11 4.4. Cultural Services ................................................................................................................ 13 Chapter 5: Results and Discussion ................................................................................................ 14 5.1. Baseline Economic Values of the Ecosystem Services ..................................................... 14 5.1.1. Capture Fisheries ........................................................................................................ 14 5.1.2. Crop Farming .............................................................................................................. 16 5.1.3. Aquaculture ................................................................................................................. 17 5.1.4. Livestock Grazing ....................................................................................................... 18 5.1.5. Mat making ................................................................................................................. 20 5.1.6. Grass Harvesting ......................................................................................................... 21 5.1.7. Water Supply .............................................................................................................. 22 5.1.8. Firewood ..................................................................................................................... 23 5.1.9. Herbal Medicine.......................................................................................................... 24 5.1.10. Sand Harvesting ........................................................................................................ 25 5.1.11. Brick Making ............................................................................................................ 27 5.1.12.