Estimating Appropriate Fines for Ship Grounding Violations in Tubbataha Reef National Marine Park - Rina Maria P. Rosales Consultant ...
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Estimating Appropriate Fines for Ship Grounding Violations in Tubbataha Reef National Marine Park Rina Maria P. Rosales Consultant, Environmental Economics October 2006
Estimating Appropriate Fines for Ship Grounding Violations in Tubbataha Reef National Marine Park
Table of Contents
Contents Page
Table of Contents 3
List of Tables and Figures 4
List of Acronyms 5
Executive Summary 6
I. Introduction/ Objectives 7
II. Brief History of Fines for Ship Grounding 8
III. Theoretical Framework
Total Economic Value (TEV) 9
TEV Components of TRNMP 9
IV.Techniques in Estimating TEV of TRNMP
Production approach 10
Coral reef restoration cost approach 10
V. Economic Value of TRNMP
Production Approach
Recreation 11
Research 11
Fisheries 12
Biodiversity Conservation 13
Total Benefits from TRNMP 13
Restoration Cost Approach 14
VI. Recommended Fines for Future Violations 15
References 16
Annex A. Goods and Ecological Services of Coral Reef 17
Ecosystems Identified in Moberg & Folke (1999), Presented
in Cesar H. 2000. Coral Reefs: Their Functions, Threats and
Economic Value
Rina Maria P. Rosales, October 2006 List of Tables
Table No. Title Page
Table 2.1 Park Violations and Fines Imposed in TRNMP, 1995 to 2006 8
Table 2.2 Ship Grounding Fines in Selected Marine Parks 8
Table 5.1 Revenues from Scuba Diving Entrance Fees, TRNMP, 2001 to 11
2005
Table 5.2 Coastal Resources in TRNMP, 2006 11
Table 5.3 No. of Studies Conducted in TRNMP, 1982 to 2006 11
Table 5.4 SSS Project Costs for TRNMP, 2006 12
Table 5.5 Summary of Fish Survey Results of MSI and MERF, Tubbataha 12
Reefs, April 2006
Table 5.6 Market Prices of Commercial Fish Species in TRNMP, 2006 13
Table 5.7 Estimated National Non-Use Values of TRNMP per Year, 13
2005 Population
Table 5.8 Annual Economic Value of TRNMP 13
Table 5.9 Restoration Costs for M/Y Island Explorer Grounding at 14
Apo Reef Marine Natural Park and Potential Grounding at
TRNMP
Table 6.1 Recommended Fines for Ship Grounding Violations in TRNMP 15
Estimating Appropriate Fines for Ship Grounding Violations in Tubbataha Reef National Marine ParkList of Acronyms
ARMNP Apo Reef Marine Natural Park
EEPSEA Economy and Environment Program for Southeast Asia: International Development Research
Centre
FKNMS Florida Keys National Marine Park
MERF Marine Environmental Resources Foundation
MSI Marine Science Institute
NUV Non-use values
OV Option values
PAMB Protected Area Management Board
TEV Total Economic Value
TMO Tubbataha Management Office
TPAMB Tubbataha Reefs National Marine Park Protected Area Management Board
TRNMP Tubbataha Reef National Marine Park
UNESCO United Nations Education, Scientific and Cultural Organization
UV Use values
WTP Willingness to pay
Rina Maria P. Rosales, October 2006 EXECUTIVE SUMMARY
Located southeast of Puerto Princesa City, Palawan, the Summing up the different uses of TRNMP’s coral reefs
Tubbataha Reef National Marine Park (TRNMP) was provides for an annual economic value of approximately
established as a national marine park on August 11, PhP 208 to 211 per sq. m. However, if ship grounding
1988 and inscribed as a UNESCO World Heritage Site in does occur, and coral reefs are left alone to regenerate on
1993. Its political jurisdiction lies with the municipality of their own, it will take the ecosystem much more than one
Cagayancillo, which in turn is located northeast of the atoll year to recover. Using an average number of 45 years
reefs. The area consists of two atolls made up of roughly for natural regeneration to occur, recommended fines for
10,000 has. of corals, reef fishes, algae and seagrasses ship grounding violations using the production approach
and aggregations of large megafauna like sharks and would thus be approximately PhP 9,500 per square meter.
cetaceans. Meanwhile, the restoration cost method reveals an amount
of PhP 15,000 for TRNMP coral reefs.
Despite its protection status, violations and damages to
coral reefs and marine life occur in TRNMP every now The TRNMP-PAMB may consider imposing a minimum fine
and then. To the extent possible, Park rangers have been of PhP 9,500 per sq. m. or a maximum amount of PhP
vigilant in apprehending violators and imposing fines. 15,000 per sq.m., or an average amount of PhP 12,000
However, TMO was able to collect only PhP 605,000 from per square meter. This study further recommends an
ship grounding fines, since only two ships that damaged amendment to their current charge of PhP 4,000 per sq. m.
approximately 30 sq. m. each and one that damaged 96 The study results show that there is enough basis for raising
sq. m. were fined. Current fines are pegged at PhP 4,000 the fines, based on the estimated economic value of TRNMP
per square meter. Meanwhile, violations that have occurred coral reefs.
in other countries show fines paid are much higher. In
Apo Reef Natural Park, a ship grounding incident in 2003
occurred which resulted in fines imposed at PhP 13,000 per
sq. m. based on estimated restoration costs to rehabilitate
the area through enhanced biological restoration methods.
The need for economic valuation of such impacts was
identified to serve as an empirical basis for the computation
of fines and penalties that correspond to the level and
degree of impact for each violation. This report aims to
recommend appropriate fines specific for damages brought
about by ship grounding violations in TRNMP. Two methods
were employed to estimate the economic value of TRNMP’s
coral reefs. First, the production approach method values
the various goods and services provided by Tubbataha
Reefs, the latter being limited to activities that are allowed
in TRNMP. Second, the coral reef restoration cost approach
provides estimates of the costs involved in performing
coral transplantation and enhanced biological restoration
methods. The values to be determined in both approaches
should be treated as minimum values.
Estimating Appropriate Fines for Ship Grounding Violations in Tubbataha Reef National Marine ParkEstimating Appropriate Fines for Ship Grounding Violations in
Tubbataha Reef National Marine Park
I. INTRODUCTION/ OBJECTIVES
Located southeast of Puerto Princesa City, Palawan, the impacts was identified to serve as an empirical basis for
Tubbataha Reef National Marine Park (TRNMP) was the computation of fines and penalties that correspond to
established as a national marine park on August 11, the level and degree of impact for each violation. With
1988 and inscribed as a UNESCO World Heritage Site in appropriate levels of fines set up, violators’ payments for
1993. Its political jurisdiction lies with the municipality of environmental crimes committed within the park are hoped
Cagayancillo, which in turn is located northeast of the atoll to contribute to funds set aside for park management
reefs1. The area consists of two atolls made up of roughly and enforcement of laws.4 More importantly, fines and
10,000 has. of corals, reef fishes, algae and seagrasses penalties can create proper incentives and disincentives
(White and Arquiza 1999) and aggregations of large with respect to environmental rules and regulations. The
megafauna like sharks and cetaceans (Dolar and Alcala ten-year business plan formulated for TRNMP recommended
1993)2. enforcement incentives (e.g. fines and penalties) as one of
the financing instruments that can contribute to increasing
Until the late 1970s, fisherfolk from Cagayancillo were the compliance with Park rules.
primary users of the area. By the 1980s, it became more
popular among large scale fishing operators coming from This report aims to recommend appropriate fines specific
as far as China and Taiwan, but predominantly Visayan as for damages brought about by ship grounding violations
reported by Cagayanons. Cyanide and dynamite fishing in TRNMP. Two methods of valuation will be used and
were introduced in the area causing damage to the reef. contrasted with each other, i.e. the restoration cost method
During the same period, TRNMP became one of the most and valuation of coral reefs based on fish productivity. The
popular scuba diving destinations in the country. Because of second part of this report provides a historical account of
the damage being caused by destructive fishing methods, ship grounding occurrences in the Park, including other
scuba divers began noticing the decrease in living corals. A violations that have been recorded during the past 10
petition was made to declare the area as a protected area, years. The third part provides an overview of the total
and on August 11, 1988, then President Corazon Aquino economic value framework used in resource valuation.
signed Presidential Proclamation 306 declaring Tubbataha The fourth part describes the two valuation methods
Reefs as the country’s first national marine park.3 and the techniques used in coming up with estimates of
environmental damages from Park violations. The fifth
Despite its protection status, fishing violations and damages part presents the actual estimates of coral reef values
to coral reefs and marine life occur in TRNMP every now using the two methods described in the previous section.
and then. Improved fisheries management in the Visayan Finally, the report concludes with recommendations on the
Seas has caused the exclusion of commercial fishers corresponding fines and penalties that may be imposed
who are now moving their activities toward park waters. against would-be violators in the Park which may be
Furthermore, increasing tourism activities and boat traffic translated by TRNMP’s management into a policy instrument
contribute to the disturbance of wildlife on small islands and that will help raise Park revenues, but more importantly
destruction of corals from boat grounding and dropping provide proper economic disincentives that may minimize
of anchors. The need for economic valuation of such environmental damages in the future.
1
Tubbataha Management Office-KKP 2006. Primer on Tubbataha. Homeland Foundation-TMO-KKP, Puerto Princesa, Palawan, Philippines.
2
CI-Philippines 2006. Cagayan Ridge Strategy. Sulu-Sulawesi Seascape Project, Diliman Quezon City, Philippines.
3
Tubbataha Management Office-KKP 2006. Primer on Tubbataha. Homeland Foundation-TMO-KKP, Puerto Princesa, Palawan, Philippines.
4
CI-Philippines 2006. Cagayan Ridge Strategy. Sulu-Sulawesi Seascape Project, Diliman Quezon City, Philippines.
Rina Maria P. Rosales, October 2006 II. BRIEF HISTORY OF FINES FOR SHIP GROUNDING
Over the years, numerous Park violations have occurred in In Apo Reef Natural Park, a ship grounding incident in
the waters of TRNMP. To the extent possible, Park rangers 2003 occurred in which according to the coral reef survey,
have been vigilant in apprehending violators and imposing a total of 225 species of fish representing 30 families were
fines. The number of violations and the corresponding fines intercepted. The grounding caused reef damage in 2,910
imposed can be summarized into the following: sq. meters. Restoration costs using the coral transplantation
method were estimated at PhP 38,260,5215 or close to
Table 2.1 Park Violations and Fines Imposed in TRNMP, 1995 to 2006 PhP 13,000 per sq. m. This became the basis of the fines
Violation No. Average Area Years Covered Range of Penalties Imposed imposed on the ship owner to settle the damages they
Affected
caused in the Park.
Ship grounding 11 319 sq. m. per 2003 – 2005 PhP 4,000/ sq. m. (4
grounding cases)
Illegal entry 61 n/a 1995 – 2006 PhP 5,000 (3 cases) Meanwhile, violations that have occurred in other countries
PhP 65,000 (1 case)
PhP 120,000 (1 case)
show fines paid are much higher. In the US, a ship
US$100,000 (1 case) grounding incident in the Florida Keys National Marine
Gathering of 2 n/a 2006 n/a Sanctuary was fined6 as high as US$ 481 per sq. m.
threatened species
(approximately PhP 24,000 per sq. m.), while another
Misdeclaration of 5 n/a 2003 – 2006 PhP 5,000/ passenger for
passengers surcharge grounding incident involving a research vessel of the
PhP 2,600/ pax for entry fee
University of Miami (R/V Columbus Iselin) settled for US$
Illegal fishing 5 n/a 2000 – 2005 n/a
3.76 million in natural resource damage claims, including
Source: Tubbataha Management Office (TMO), 2006
a $200,000 civil penalty7. The latter amount was used to
fund physical and biological restoration and monitoring
Ship grounding violations may have occurred earlier of the Columbus Iselin site, as well as compensatory
than 2003. However, records of the TMO reveal that restoration and monitoring elsewhere in the sanctuary.
apprehensions and strict implementation of Park rules Approximately 500 groundings are reported to occur in
regarding ship grounding started only in 2003. Current the FKNMS every year. In Australia, one particular ship
fines for ship grounding are pegged at PhP 4,000 per sq. grounding incident in the Great Barrier Reef Marine Park
m. was fined8 A$ 733 per sq. m. (approximately PhP 28,000
per sq. m.).
There were 11 violators caught and fined during the past 3
years. Out of these, one occurred in 2003, six in 2004 and Table 2.2 contains a summary of ship grounding fines in
four in 2005. However, only four of these were imposed some marine parks other than TRNMP.
fines: two in 2005 and one each on the previous years.
Table 2.2 Ship Grounding Fines in Selected Marine Parks
The average area affected was 319 sq. m. per violation. Marine Park Location. Size of Area Total Fine Assessed Fine Assessed/
Three violations were in the range of 30 sq. m. each, Affected (sq. m.) sq. m.
one affected 96 sq. m., two affected 120 sq. m., one Apo Reef Marine Mindoro Oriental, 2,910 PhP 38,260,521 PhP 13,148
Park Philippines
damaged 200 sq. m., one damaged 560 sq. m. and the
Florida Keys Florida, USA 1,175 US$ 565,796 US$ 482 or
largest estimated damage was at 1683 sq. m. As of this National Marine PhP 24,1009
Sanctuary
writing, TMO was able to collect only PhP 605,000 from
Florida Keys Florida, USA 502 US$3.76 million US$ 7490 or PhP
ship grounding fines, since only two ships that damaged National Marine 374,502
approximately 30 sq. m. each and one that damaged 96 Sanctuary
sq. m. were fined. Great Barrier Reef Great Barrier Reef, 1500 A$ 1.1 million A$ 733 or
Marine Park Australia PhP 27,85410
5
Bringas, J. et. al. 2004. Coral Reef Damage Assessment: M/Y Island Explorer Grounding Site Restoration, Apo Reef Marine Natural Park. Ateneo de Manila University, Diliman, Quezon City, Philippines.
6
Fine levied against MSC San Diego that ran aground in the Florida Keys National Marine Sanctuary in 2002.
7
Columbus Iselin Coral Reef Restoration Project.
8
Fine levied against MV Doric Chariot which ran aground in the Northern Section of the Great Barrier Reef Marine Park in 2002.
9
At PhP 50 = US$1
10
At PhP 37 = A$1
Estimating Appropriate Fines for Ship Grounding Violations in Tubbataha Reef National Marine ParkIII. THEORETICAL FRAMEWORK
TOTAL ECONOMIC VALUE (TEV) future. In fact, certain breakthroughs in biotechnology
suggest that biodiversity may have even greater value in
Economics approaches the problem of valuing the future than it does at present. Protected areas thus
environmental goods and services from an anthropocentric provide an option for potential discoveries of plants and
perspective11. It tries to measure value with respect to animals that may prove beneficial in the future. Given
human preferences and needs. Hence, economic valuation this, society as a whole may be willing to pay to retain the
refers to people’s willingness to pay for an environmental option of having future access to a certain species or level
good. It is a measure of people’s preferences relative of diversity. As the demand for biological resources grows
to other goods in society. In economic terms, it is about while the supply continues to dwindle, their value is likely to
finding the demand curve for environmental goods and increase13.
services. These economic valuation techniques are then
applied to determine whether various development options Existence values are defined as the WTP of people merely
and their resulting impact on environmental loss or gain, to ensure the continued existence of a certain species or
will either improve the welfare of individuals or not. ecosystem. It is the benefit accruing to an individual just by
The use of money to measure the demand curve allows knowing that the resource exists. An example would be the
comparison across other goods in society, so that the monetary contribution people make to save the blue whale
relative preferences of people can be measured. even without neither having seen one nor being able to
see one in the future. This is significant particularly among
Economic valuation, as it is currently practiced, stems from people in developed countries. The ethical dimension is
the Total Economic Value (TEV) framework. The TEV of any important in determining the existence value, which reflects
environmental good or service is made up of two major sympathy, responsibility and concern that some people may
components: use values (UV) and non-use values (NUV). feel toward certain species and ecosystems.
Use values can further be broken down into direct and
indirect uses, while non-use values are composed of option, Finally, bequest values are measures of benefits people
existence and bequest values. attach to resources so that future generations may avail of
the same benefits that accrue to the present generation.
Direct use values refer to values derived from actual use of These values are often considered to provide a lot of the
the good either for direct consumption or production. On economic justification for preserving natural lands (Krutilla
the other hand, indirect use values are benefits derived and Fisher, 1975), and they seem to dominate all other
from ecosystem functions, such as a coral reef’s function benefits of wilderness in the minds of some people. It
in controlling storms and floods. These are values derived is also one of the best ways to ensure inter-generational
from resources that are not consumed, traded or reflected in equity.
national income accounts. They usually accrue to society as
a whole, rather than to individuals or corporate entities.
TEV COMPONENTS OF TRNMP
Option values are those that approximate an individual’s
willingness to pay (WTP) in order to ensure that the good Coral reefs in TRNMP have tremendous value owing
can be accessed at a later date. OVs are some sort to the fact that the area has been proclaimed not just a
of insurance values, in which people assign values to nationally protected area under the NIPAS Act14, but also
risk aversion in the face of uncertainty12. Nobody can as a UNESCO World Heritage Site in 1993. There are
determine how important a certain species will be in the undoubtedly large amounts that can be attributed to non-use
11
Randall, 1991, In Barbier, Burgess and Folke.
12
McNeely, Jeffrey A.
13
McNeely, Jeffrey A.
14
National Integrated Protected Areas System, or NIPAS Act, was passed into law by Philippine Congress in 1992.
Rina Maria P. Rosales, October 2006 values. One study has been conducted towards estimating services, biogeo-chemical services, information services and
such values for TRNMP, which reveals a total of PhP 141 to social and cultural services.
269 million as the total non-use value of the Park for three
big cities in the country. Meanwhile, direct goods come in the form of seafood
products, raw materials and medicines, curio and jewelry,
Indirect use values of coral reefs come in the form of and live fish and coral collected for aquarium trade. As far
ecological services they provide. A summary of these has as direct use values are concerned, the protected status of
been provided by Moberg and Folke (1999) and adapted TRNMP has limited the use of the reefs to only a few human
in Cesar, H. (2000) (see Annex A). Such ecological activities such as recreational scuba diving and research.
services are composed of physical structure services, biotic Fishing is totally banned in the area.
IV. TECHNIQUES IN ESTIMATING TEV OF TRNMP
Various statistical and econometric techniques have been range of objectives and techniques15. Such mechanisms
employed in estimating the various components of TEV. For involve a number of cost components such as capital,
purposes of this report, two methods will be employed to operational and labor costs. Capital costs include both
estimate the economic value of TRNMP’s coral reefs, and pre-construction and construction costs. Operational
in effect the damages brought about by ship grounding in costs materials, equipment, staff wages, expenses and
TRNMP, namely: general administration costs. Finally, labor costs involve
all costs for supervision, training and labor in actual
A. Production approach. This method will value the restoration activities. Estimating the cost of restoring
various goods and services provided by Tubbataha is a valuation technique used to value coral reefs. If
Reefs. It gives an estimate of the environmental goods ship grounding occurs, the damage can be said to be
and services naturally “produced” by coral reefs. Not equivalent to the cost of having the coral reef restored.
all goods and services will be measured, since not
all are easily measured or have available data (see The determination of appropriate fines for ship grounding
Annex A for list of environmental goods and services will thus depend on the value of the coral reefs in question.
provided by coral reefs). Instead, goods and services Both techniques will be employed to determine the range
will be limited to activities that are allowed in TRNMP, of economic values of TRNMP coral reefs. Note though that
i.e. recreational diving and research, coupled with fish the values to be determined should be treated as minimum
productivity to serve as proxy for indirect use values, values. In the production approach, only direct and non-
and non-use values. The value of TRNMP coral reef use values are being considered, with one proxy value
production then becomes the value of environmental to represent indirect use benefits. There are still numerous
damages brought about by ship grounding. indirect benefits being provided by coral reefs that are
not being included in this equation. On the other hand,
B. Coral reef restoration cost approach. An increasingly the restoration cost method is seen as producing minimum
popular way of dealing with damaged coral reefs is values since there may be other expenditures that may
coral reef restoration. Numerous attempts at restoring actually be incurred if the restoration activity is seen as
coral reefs are currently being undertaken with a wide necessary16.
15
NCRI 1999. In Spurgeon, J. 2000. Economics of Coral Reef Restoration. Collected Essays on the Economics of Coral Reefs. CORDIO, Kalmar University, Kalmar, Sweden.
16
Bautista, G. et. al. 2006. Manual on Resource Vauation for Local Decision Making in Important Biodiversity Areas. REECS, Quezon City, Philippines.
10 Estimating Appropriate Fines for Ship Grounding Violations in Tubbataha Reef National Marine ParkV. ECONOMIC VALUE OF TRNMP
Coastal Resources Hectares Km2
Sand + Seagrass 41.11 0.41
A. Production Approach
Sand Cay 8.09 0.08
Dense Algae 41.72 0.42
In estimating the production value of TRNMP’s coral reefs,
Dense Seagrass 35.50 0.36
the relevant TEV components are examined individually as
Sea Grass 47.28 0.47
presented below.
Lagoon 4840.84 48.41
Source: CI, 2006
Recreation
The relevant area for estimating the recreational value
Despite the difficulties in accessing them, TRNMP coral
of TRNMP would be the coral reefs, which is the main
reefs are highly popular diving spots in the country. The
resource utilized for scuba diving purposes (2956.5 has.
diving season lasts for only four months in a year, during
or 29.56 km2). According to Mr. George Choy17, owner
which numerous scuba divers visit the area. The PAMB has
and operator of M/Y Tri-Star18, only around 30% of coral
imposed entrance fees for both foreign and local divers.
reefs in the two atolls in TRNMP are being utilized for
The amount has increased through the years, and is now
diving purposes. Hence, the total area relevant for scuba
pegged at PhP 3,000 for both local and foreign visitors
recreational diving would be 886.8 has. or 8.868 sq.
since 2005. Table 5.1 contains a summary of revenues
km. Using the latest revenue figures from TPAMB, the
earned by the PAMB from entrance fees:
recreational value of TRNMP would be PhP 3479 per ha. or
PhP 0.35 per sq. m.
Table 5.1 Revenues from Scuba Diving Entrance Fees, TRNMP, 2001 to 2005
Year Revenues From Entrance Fees (PhP)
2001 1,599,512
Research
2002 1,223,039
2003 1,761,210
On the other hand, scientific interest in Tubbataha reefs
2004 2,305,780
has been steadily increasing. During the 80s, only five
2005 3,085,518
commissioned studies were conducted in the area, starting
Source: TMO, 2006
in 1982. The following decade saw a 200% increase in the
number of studies. For this current decade, within a span of
The Park consists of 33,200 hectares most of which is
six years, the number of studies has increased to 24, with
naturally composed of water. The major coastal resources
an average cost of PhP 180,000 per study. Only six out
found within the Park can be broken down into the
of the 24 studies had costs available, though. Table 5.3
following:
provides a summary of the number of studies in TRNMP:
Table 5.2 Coastal Resources in TRNMP, 2006
Table 5.3 No. of Studies Conducted in TRNMP, 1982 to 2006
Coastal Resources Hectares Km2
Decade No. of Studies Ave. Cost per Study
Coral 1317.40 13.17
1980s 5 n/a
Rubble + Coral 1341.31 13.41
1990s 15 n/a
Sand + Coral 297.79 2.98
2000-2005 24 PhP 180,000.00 19
Sand 1007.06 10.07
TOTAL to date 44 PhP 180,000.00
Sand + Seaweeds 41.94 0.42
Source: TMO, 2006
17
Personal communication between Mr. George Choy and Ms. Angelique Songco, TRNMP PASu
18
Tri-Star is the longest-running scuba diving boat ferrying visitors to and from TRNMP
19
Refers to six studies only
Rina Maria P. Rosales, October 2006 11For the six studies with costs indicated, three of these were commercial value of its fisheries will be used as a minimum
related to islands and islets, with an average amount of PhP amount to indicate the value of indirect benefits of TRNMP’s
127,538. Only two studies relating to coral reefs had costs coral reefs.
indicated, with an average cost of PhP 204,372 per study.
No data was available on the area covered for each of Fish production is reflected through fish density and
these studies. This figure may thus not be a realistic amount biomass statistics in TRNMP. The most recent (April 2006)
to use as the research value of the reefs. survey of the Marine Science Institute (MSI) and Marine
Environmental Resources Foundation (MERF) shows an
Starting in 2006, CI has been conducting its own research extremely high level of fish diversity and abundance in
among the three marine biodiversity corridors through Tubbataha reefs. There were over 150 target fish species
the Sulu-Sulawesi Seascape (SSS) Project. Research costs and 132 major fish species observed in the area. Table 5.5
amount to almost PhP 15.4 million on an annual basis (see contains a summary of the 2006 survey results of MSI and
Table 5.4). Hence, the research value of TRNMP amounts to MERF:
PhP 464 per ha. per year.
Table 5.5 Summary of Fish Survey Results of MSI and MERF, Tubbataha Reefs, April 2006
Table 5.4 SSS Project Costs for TRNMP, 2006 Indicator Average Abundance Average Density Average Biomass,
(individuals/1000m2) (individuals/m2) g/1000m2
SSS Study Component Total Annual Amount, in PhP
Target Species 643.29 0.64329 197,527.8
Completing the connectivity cycle for adaptive 885,502
management Coral Indicator 271.2857 0.27129 14,837.8
Marine mammal survey and training 666,667 Major Species 5268.857 5.268857 54,072.2
TRNMP Law Enforcement, SeaBird Banding, and PMMRS 1,588,446 Total 6,183.43 6.18 266,437.8
Capacity Building
Source: MSI/MERF, 2006
Investigating Biodiversity Corridors in the Sulu Sea: 1,550,000
Distribution and Dispersal of Fish Larvae
Marine Biodiversity Corridor Profiling 691,667 Commercial prices of target fish species for food range
IEC Activities 1,100,000 from a low of PhP 80 per kilo (goatfish) to a high of PhP
Enforcement activities 8,350,000 250 per kilo (grouper and snapper)20, while aquarium fish
Seabird surveys and training in the Sulu Sulawesi 563,217 prices range from PhP 75 to 150 per piece21 (see Table
Seascape
5.6). Looking at only the commercial value of target species
TOTAL 15,395,498
sans live fish trading, and assuming production costs of
20%22, the net value of fisheries in TRNMP would amount to
PhP 20423 per sq.m. This is still a very conservative figure,
Fisheries considering the much higher value accruing to live fish
trading. Many of such species traded in the live fish sector
Capture fishing is not allowed in TRNMP. Nevertheless, are found in Tubbataha reefs. Furthermore, only commercial
fisheries in the area provide the attraction for scuba diving. target species were included in the calculations, and other
Furthermore, the area has been proven to be a source major species found within TRNMP reefs were excluded
of fish larvae whose benefits extend beyond the borders from the analysis.
of TRNMP and become the source of municipal and
commercial fish catch in areas outside the Park. Finally,
the Park’s coastal resources provide for numerous indirect
benefits as enumerated in Annex A. This report does not
have the benefit of doing a primary survey for estimating
values for each and every use of coral reefs. Rather, the
20
Quezon City wet markets, 2006
21
Bioresearch, 2006
22
Bureau of Agricultural Statistics, 1993. In White, A. et. al. 2000. Benefits and Costs of Coral Reef and Wetland Management, Olango Island, Philippines. CORDIO, Kalmar University, Sweden.
23
Assuming production costs of 20% of total value (BAS 1993; in White, et. al. 2000))
12 Estimating Appropriate Fines for Ship Grounding Violations in Tubbataha Reef National Marine ParkTable 5.6 Market Prices of Commercial Fish Species in TRNMP, 2006 to cover the whole country’s urban population, and using
Common Name Unit Price Value for TRNMP, PhP/m2 the results of the study showing 41% of urban households
Surgeon fish 165/k 6.6 responding positively to the survey (i..e. willing to pay to
Grouper 250/k 1.7 conserve TRNMP), the national urban non-use value of
Snapper 225/k 6.5 Tubbataha reefs can be estimated to be in the range of PhP
Jacks 180/k 2.8 724 million to 1.4 billion annually. If we further assume that
Parrot fish 130/k 1.9 41% of rural households would be willing to pay half of this
Wrasse 200/k 0.7 amount, total rural non-use values would amount to PhP 392
Fusiliers 100/k 2.0 million to 738 million annually. On a per hectare basis,
Trigger fish 110/k 4.6 this translates to a value of PhP 21,796 to 41,039 per ha.
Rabbit fish 165/k 0.07 for the urban population, PhP 11,806 to PhP 22,229 for
Squirrel fish 120/k 0.01 the rural population, or PhP 33,602 to PhP 63,268 for the
Goat fish 80/k 0.4
whole country.
Bisugo 80/k 0.09
Lizard fish 80/k 0.0002
Table 5.7 Estimated National Non-Use Values of TRNMP per Year, 2005 Population
Angel fish 75/pc 19
Urban Rural Total
Sweetlips 100/pc 203
No. of Households, 2005 8,185,056 8,867,144 17,052,200
Clowntrigger fish 100/pc 3.4 Population24
Bat fish 150/pc 1.1 Ave. WTP 25 PhP 216 – 40626 PhP 108 – 203
Other species 100/k 0.8 Social WTP PhP 724 M to 1.4 B PhP 392 M to 738 M PhP 1.1 B to 2.1 B
Gross Value 255 NUV per ha. PhP 21,796 – 41,039 PhP 11,806 – 22,229 PhP 33,602 – 63,268
Net Value 204
Sources: Farmers’ Market, QC; NEPA Q-Mart, QC; Bioresearch, QC
Total Benefits from TRNMP
Biodiversity Conservation Summing up the different uses of TRNMP’s coral reefs
provides for an annual economic value of approximately
Turner and Pearce (1993) describe non-use values as PhP 208 to 211 per sq. m., broken down as follows:
reflective of people’s preferences, but include concern
for, sympathy with, and respect for the rights or welfare Table 5.8 Annual Economic Value of TRNMP
of non-human beings. The non-use values of TRNMP Type of Value Total Annual Value, PhP Value per Ha., PhP Value per sq. m., PhP
were measured in an EEPSEA-funded survey conducted Recreation 3,085,518 3,479 0.348
by Subade (2005) entitled “Valuing Biodiversity Research 15,395,498 464 0.05
Conservation in a World Heritage Site: Citizens’ Non-Use Fish Production 6,789,400 2,040,000 204
Values for Tubbataha Reefs National Park, Philippines”. Non-Use 1.1 B to 2.1 B 33,602 – 63,268 3.36 – 6.33
Results reflected a high willingness to pay for continued TOTAL 1,125,270,416 2,077,545 207.76 – 210.73
– 2,125,270,416 – 2,107,211
preservation of the Park’s coral reefs and other marine
resources. The total non-use value, which was mostly
composed of bequest values (i.e. people willing to pay Note that these figures are still conservative in nature.
to preserve the reefs for future generations to enjoy), was Not all indirect benefits were included in the calculations.
estimated at a low of PhP 141 million to a high of PhP 269 Moreover, conservative assumptions were used, especially
million. These figures, however, covered households of in computing for national non-use values, wherein
only the three cities surveyed. If the figures are extended household rather than individual population figures were
24
National Statistics Office, 2005 Population Projections
25
Subade, R.
26
Assumption: Rural WTP = 50% of Urban WTP
Rina Maria P. Rosales, October 2006 13considered, and only 41% of total population was assumed PhP 13,000 per sq. m. Using the same set of assumptions
to be willing to pay for conserving TRNMP. in restoring potential damaged coral reefs in TRNMP, and
adjusting for gasoline costs to get to the area29, restoration
costs for TRNMP would amount to approximately PhP
B. Restoration Cost Approach 44 million, or PhP 15,000 per sq. m. The breakdown of
expenses is presented in the table below:
Coral reef restoration is defined as “human intervention that
is designed to accelerate the recovery of damaged habitats, Table 5.9 Restoration Costs for M/Y Island Explorer Grounding at Apo Reef Marine Natural Park and
or to bring ecosystems back to as close an approximation Potential Grounding at TRNMP
as possible to their pre-disturbance states27.” For purposes Component No. of Months Total Cost, Total Cost, TRNMP
ARNMP
of this study, restoration methods considered are largely
Organizational Building 1 488,000 488,000
based on the recommendations made for the Apo Reef
Emergency Biological Triage 6 1,957,690 2,339,290
Marine Natural Park (ARMNP) ship grounding incident
Strategic Completion of Salvage Operations 2 1,820,400 1,947,600
that occurred in December 2003. This method draws from
Stabilization of Substrate and Structural Restoration 21 11,224,770 12,560,370
the experience of previous restoration activities for the
Coral Transplantation 42 9,625,420 12,296,620
grounding of the M/V Alec Owen Maitland and the M/V
Enhanced Biological Restoration 36 7,585,020 7,585,020
Elpis and M/V Wellwood in the Key Largo portions of the
Administration Cost (10% of project cost) 3,270,130 3,721,690
Florida Keys National Marine Sanctuary (FKNMS), and
Monitoring Cost (5% of project cost) 12 1,635,065 1,860,845
the R/V Columbus Iselin in the Looe Key portion of the
Maintenance of equipment (2% of project cost) 654,026 744,338
FKNMS. The same analysis was used for the grounding
TOTAL 120 38,260,521 43,543,773
of the M/Y Island Explorer in ARMNP. It consists of both
Cost per sq. m. 13,148 14,964
physical and biological restoration, the latter consisting of
Source (except for TRNMP column): Bringas, J. et. al. 2005. Coral Reef Damage Assessment: M/Y
coral transplantation and the use of enhanced biological Island Explorer Grounding Site Restoration. Haribon Policy Paper No. 1. Haribon Foundation,
methods. Quezon City, Philippines.
The alternative considered for the Apo Reef grounding Note that the high costs associated with coral reef
incident consisted of four basic restoration methods: restoration are partly due to the time frame allotted to
substrate stabilization, structural restoration, transplantation complete the whole process. It is estimated to take a total
and enhanced biological restoration. Substrate stabilization of 10 years to go through all the phases involved. This may
was deemed important because restoration without be due to the observation that “loss of habitat due to vessel
stabilization is said to have a high likelihood of failure groundings severely impedes or precludes re-establishment
due to the potential for continued erosion of the underlying of the pre-injury reef community without recreating the
substrate. Structural restoration, on the other hand, original topographic structure and habitat complexity
would recreate the pre-injury state of the reef. Finally, (Pearson 1981; Miller et. al. 1993; Jaap 2000; Hudson
transplantation with enhanced biological methods would and Goodwin 2001),30” requiring a process that takes a
result in fewer environmental costs and more potential long time to complete.
benefits to increase recovery of the benthic community.28
The figures encompass all types of costs in restoring coral
The restoration would occur in a heavily used recreational reefs, including transportation costs of the team of experts
dive and snorkel area. Given the total damaged area and scientists that may be involved in the process. The
in ARMNP equal to 2,910 sq. m., total restoration costs ARMNP estimates are still conservative, considering that
would amount to PhP 38 million, producing an average of transportation costs from Manila to Sablayan and back
27
Yap, H. 2000. The case for restoration of tropical coastal ecosystems. Ocean & Coastal Management 43 (2000) 841-851. Elsevier Science, Ltd.
28
Haribon 2005. M/Y Island Explorer Grounding Site Restoration. Haribon Policy Paper No. 1. UP Village, Quezon City, Philippines.
29
Gasoline expenses for ARNMP are assumed to be at 20 liters per trip, at PhP 17 per liter. Actual gasoline expenses for TRNMP are 60 liters per trip, at PhP 41 per liter (source: TMO 2006)
30
In Tilmant, J. et. al. Restoration of Coral Reef Habitats Within the National Park System. Protecting Oceans and Their Coasts..
14 Estimating Appropriate Fines for Ship Grounding Violations in Tubbataha Reef National Marine Parkwere not included in the computations. There was thus fare to and from Puerto Princesa (PhP 5,600) is 1.5 times
the implicit assumption that either all experts will be hired the fare to and from Sablayan, Mindoro Oriental (PhP
locally, or that transportation expenses of experts will not be 3,500), while the boat fare is three times more expensive
borne by the project. The estimated figures for TRNMP may (PhP 1,000 and 300, respectively)31. Therefore, the
even be more conservative. TRNMP is less accessible than estimated cost per square meter of potential coral reef
Apo Reef, hence transportation costs to get to Tubbataha damage may be considered to be a reasonable basis for
will necessarily be much higher. For one thing, the plane fines against ship grounding violations.
VI. RECOMMENDED FINES FOR FUTURE VIOLATIONS
The analysis presented above reveals two sets of figures that sq. m. of coral reef damage due to ship grounding. As
can be used as basis for ship grounding fines in TRNMP. the study results have shown, there is enough economic
Using the production approach, the value of benefits basis for raising the fines to much higher levels, based on
derived from TRNMP coral reefs amounts to PhP 208 to the estimated economic value of TRNMP coral reefs. The
211 per square meter per year. However, if ship grounding recommended levels are summarized in the table below.
does occur, and coral reefs are left alone to regenerate on
their own, it will take the ecosystem much more than one Table 6.1 Recommended Fines for Ship Grounding Violations in TRNMP
year to recover. According to expert opinion, the fastest Fine Amount, in PhP/m2 Valuation Method
natural regeneration rate ever recorded for coral reefs has Minimum 9,500 Production Approach
been 20 years, in the Great Barrier Reef in Australia. Some Maximum 15,000 Restoration Cost Approach
coral reefs take as long as 70 years to regenerate back to Average 12,000
their original size32. Given this huge discrepancy, this study
recommends using the average number of years, i.e. 45
years, in determining fines for ship grounding violations.
Recommended fines for ship grounding violations using
the production approach would thus be approximately PhP
9,500 per square meter.
On the other hand, using the restoration cost approach,
fines would be in the range of PhP 15,000 per square
meter.
The TRNMP-PAMB may consider imposing a minimum fine
of PhP 9,500 per sq. m. or a maximum amount of PhP
15,000 per sq.m., depending on the valuation approach
it would like to use as basis. Still, it may wish to get the
average of the minimum and maximum amounts, i.e. PhP
12,000 per square meter, as the new fine to impose.
But whatever decision it makes, this study recommends
an amendment to their current charge of PhP 4,000 per
31
Plane and boat fares are current rates for 2006
32
Personal communication with Ms. Miledel Quibilan, Marine Science Instittue, UP Diliman, Quezon City, Philippines.
Rina Maria P. Rosales, October 2006 15REFERENCES
Barbier, E.B.; Burgess, J; and Folke, C. (eds.) 1994. Paradise lost? National Integrated Protected Areas System, or NIPAS Act, was
The ecological economics of biodiversity. London, UK; Earthscan passed into law by Philippine Congress in 1992
Publications, Limited.
National Statistics Office, 2005 Population Projections
Bautista, G. et. al. 2006. Manual on Resource Vauation for Local
Decision Making in Important Biodiversity Areas. REECS, Quezon Spurgeon, J. 2000. Economics of Coral Reef Restoration.
City, Philippines. Collected Essays on the Economics of Coral Reefs. CORDIO,
Kalmar University, Kalmar, Sweden.
Bioresearch, Quezon City, Philippines. 2006
Nepa-Q Mart, Quezon City, Philippines. 2006
Bringas, J. et. al. 2004. Coral Reef Damage Assessment: M/Y
Island Explorer Grounding Site Restoration, Apo Reef Marine Subade, Rodelio F. 2003. Valuing Biodiversity Conservation in a
Natural Park. Ateneo de Manila University, Diliman, Quezon City, World Heritage Site: Citizens’ Non-use Values for Tubbataha Reefs
Philippines National Marine Park, Philippines. Economy and Environment
Program for Southeast Asia (EEPSEA), Singapore.
Bureau of Agricultural Statistics, 1993. In White, A. et. al. 2000.
Benefits and Costs of Coral Reef and Wetland Management, Tubbataha Management Office-KKP 2006. Primer on Tubbataha.
Olango Island, Philippines. CORDIO, Kalmar University, Sweden. Homeland Foundation-TMO-KKP, Puerto Princesa, Palawan,
Philippines.
Cesar H. 2000. Coral Reefs: Their Functions, Threats and
Economic Value. Collected Essays on the Economics of Coral www.coast.ph
Reefs. CORDIO, Kalmar University, Kalmar, Sweden.
www.diveglobal.uk
CI-Philippines 2006. Cagayan Ridge Strategy. Sulu-Sulawesi
Seascape Project, Diliman Quezon City, Philippines. www.lakbaypilipinas.com
Farmers Market, Quezon City, Philippines. 2006. www.philippine-travel.co.uk
Haribon 2005. M/Y Island Explorer Grounding Site Restoration. Yap, H. 2000. The case for restoration of tropical coastal
Haribon Policy Paper No. 1. UP Village, Quezon City, Philippines. ecosystems. Ocean & Coastal Management 43 (2000) 841-851.
Elsevier Science, Ltd.
Tilmant, J. et. al. Restoration of Coral Reef Habitats Within the
National Park System. Protecting Oceans and Their Coasts.
McNeely, Jeffrey A. 1989. Economics and biological diversity:
Developing and using economic incentives to conserve biological
resources. Columbia University Press, New York, USA.
Moberg, F. & Folke, C. 1999. Ecological goods and services of
coral reef ecosystems, Ecological Economics, Vol. 29, pp. 215-
233.
16 Estimating Appropriate Fines for Ship Grounding Violations in Tubbataha Reef National Marine ParkANNEX A
Goods and Ecological Services of Coral Reef Ecosystems Identified in Moberg & Folke (1999),
Presented in Cesar H. 2000. Coral Reefs: Their Functions, Threats and Economic Value
Goods Ecological Services
Renewable Resources Mining of Reefs Physical Structure Services Biotic Services (w/in Biotic Services (between Biogeo-chemical services Information Services Social and Cultural Services
ecosystems) ecosystems)
Seafood products Coral blocks, rubble/sand Shoreline protection Maintenance of habitats Biological support through Nitrogen fixation Monitoring and pollution Support recreation
for building “mobile links” record
Raw materials and Raw materials for lime and Build up of land Maintenance of biodiversity Export organic production CO2/Ca budget control Climate control Aesthetic values and artistic
medicines cement production and a genetic library etc. to pelagic food webs inspiration
Other raw materials (e.g. Mineral oil and gas Promoting growth of Regulation of ecosystem Waste assimilation Sustaining the livelilhoods
seaweed) mangroves and seagrass processes and functions of communities
beds
Curio and jewelry Generation of coral sand Biological maintenance of Support of cultural,
resilience religious and spiritual
values
Live fish and coral collected
for aquarium trade
Rina Maria P. Rosales, October 2006 17Conservation International-Philippines
No. 6 Maalalahanin Street, Teacher’s Village, Diliman, Quezon
City 1101 Philipines
Tel. No. +632 924 8235
Fax No. +632 435 6446
Email: sssi_info@conservation.org
Founded in 1987, Conservation International believes that the
earth’s natural heritage must be maintained if future generations
are to thrive spiritually, culturally, and economically. Our mission
is to conserve the Earth’s living heritage, our global biodiversity,
and to demonstrate that human societies are able to live
harmoniously with nature.
For more information, visit www.conservation.org.ph/sss
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