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Contracting for Village Provision of Ecological Services

Explore village-operator tourism concession agreements in northern Tanzania with insights on governance, contracts, and negotiation processes. Discover key lessons learned and successful PES implementation models.

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Contracting for Village Provision of Ecological Services

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  1. Contracting for Village Provision of Ecological Services Examples and Lessons from Northern Tanzania

  2. Village-operator tourism concession agreements in place in northern Tanzania since early 1990’s Provide a service (access to land, resource use restrictions) in exchange for payments Extensive lessons to be learned regarding local governance, contract structure, negotiating process and capacity, etc PES Agreements in Tanzania are Well-Established

  3. Tourism Revenue from 7 villages in Loliondo Division

  4. Key Lessons Learned, 1991-2009 • Villages and private ‘buyers’ of tourism services (access to land and wildlife, exclusive use etc) can develop stable, long-term, mutually-beneficial business relationships • Village capacity to negotiate increases over time • Village governance a key variable which can lend stability to these ‘PES’ agreement or undermine communal livelihood gains

  5. Building from Existing Models: the Terrat ‘Easement’ • Key wildlife habitat not suitable for tourism • Tourism companies contract with village for protection of wildlife habitat

  6. Keys to Successful Implementation of PES Scheme in Terrat Village, 2004-present • PES ‘on the margin’; integrating ecological service provision with existing livelihood activities (dry season livestock grazing reserve) in easement area keeps opportunity costs minimal and makes PES highly cost-effective • Easement covers 9300 ha at ~$8,000 total costs per year; $.86/ha/annum; • Multiple local cash and non-cash benefits (employment, village payment, land tenure security) • Enabling environment due to precedent of village-tourism agreements in neighboring areas and reliance on existing village-level governance institutions

  7. Lessons for Community-based Carbon Forestry Projects • Village Council/Village Assembly provides an enabling contracting structure • For communal benefits to be effective realized there is a strong need to promote transparent local governance by ensuring all negotiations and payments are communicated and approved by V. Assembly • Marginal analysis of opportunity costs and potential for integrating land/resource use in a given area will be key in terms of costs-benefits for both buyers and sellers

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