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        As a protected area, a multi-sectoral Protected Area Management Board (PAMB) oversees the management and development of the lake. It is also the forum for resolving conflicts. The de-facto arrangement in the management of the lake is the observance of the critical water level. Drawing of water for the irrigation of crops and for other purposes is allowed only if the water level is expected to be above the critical level. Otherwise, it is not permitted.

        One of the issues that surfaced in the management of Paoay Lake National Park is financing its management and development. Towards this end, the Department of Environment and Natural Resources (DENR) and PAMB are encouraged to generate revenues from possible sources since mechanisms for such activities are already set for the in the NIPAS Act. One of the possible sources of revenues is from fees for the use of resources within the protected area.

       The primary objective of this study was to determine appropriate fees to be charged against the users of the waters of the lake. The focus was on the owners of fish cages and crop farmers. Specifically, the study described fish cage aquaculture in Paoay Lake as well as crop farming in areas served by the lake. It evaluated the costs and earnings of lake aquaculture and crop farming. The study also served as a pilot test of the proposed fee system guidelines that were formulated to provide sources of revenues for protected areas.

      A team composed of representatives from the Protected Areas and Wildlife Bureau, Planning and Policy Studies Office of the DENR, Environmental Management and Protected Areas Service in DENR – Region 1, and the ENRAP was formed for this study. Structured survey instruments for fish farmers and crop farmers were pre-tested and finalized. For the survey of fish farmers, complete enumeration was done for those who have at least one cropping. For crop farming, key informants were interviewed.

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        Representatives of the two irrigation associations using Paoay Lake were interviewed. The two associations have been in existence for quite some time. The Baay Irrigation System was set up in 1988, while the Diaz Irrigation in Pasil has been in existence since the early 1900s. In Pasil, farmers do not pay a fixed fee for the use of the irrigation system. Farmers, however, give donations for the maintenance and repair, or they themselves undertake the repairs. Throughout the country, irrigation service fees cover only the cost of the system while irrigation water is free.

        Four main crops are planted in the area: palay, garlic, corn, and mongo. Palay requires the greatest frequency of irrigation per hectare per cropping (29 times). The three other crops have lower requirements. Farmers source their irrigation water either from the lake or from the ground water. An analysis of costs and earnings by source of irrigation water shows that farmers using the lake enjoyed higher average gross revenues and lower average costs, thus garnering greater average gross profits. The estimated resource rents, however, were quite low for both subsistence crops (palay and corn) and even for commercial crops (mongo and garlic). It is noted, however, that the year covered was a particularly bad year for garlic crops due to El Ni�o.

        A sensitivity analysis was conducted for garlic production to determine if under normal conditions, a more reasonable estimate of resource rent could be computed. Studies show the yields per hectare for garlic would range from 8 to 12 per hectare and resource rent could go up to PhP22,609 per hectare per year.

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        From the foregoing, the study recommends the following: For fish cage aquaculture, the PAMB could either maintain the current fee of PhP200 per cage per year or increase it to PhP250 per cage per year in 1999 and then eventually to PhP300 in year 2000. This scheme will force the fish cage farmers to improve their operations particularly in powering mortality rates of fry/fingerling. Some extension support from the Bureau of Fisheries and Aquatic Resources should be sought in the provision of stocking materials so farmers need not travel far. For crop farming, it is recommended that no fees be charged for subsidence crops like palay and corn but fee may be imposed on commercial crops, primarily garlic. The PAMB, however, should prioritize the allocation of water to garlic during its growing season.

        The PAMB should also make clear the minimum water level it has adopted. It may have to undertake consultations with all stakeholders not only in determining the exact minimum water level, but also on the manner of relaying the information to them. In relation to this, the setting of a minimum water level as outlined in the Water Code implies the maximization of benefits to be derived from any body of water. The current study recognized the need for an analysis of the optimal allocation of water, but so far, it has only assessed the benefits and costs of the different uses of water. As more information is generated particularly on the hydro-geology of the lake, the study may be extended to assess the best combination of uses for Paoay Lake. Implied in this extension is the determination of the optimal level of water for the lake.

SOCIETY FOR THE CONSERVATION OF PHILIPPINE WETLANDS, INC.
9th Floor, Strata 100 Condominium
Emerald Avenue, Ortigas Center, Pasig City, Philippines
Tel/fax (63)(2) 637-2409
email: [email protected]
www.psdn.org.ph/wetlands