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Determination of Water Fees for Fish Culture
and Irrigation for Paoay Lake National Park |
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Paoay
Lake National Park in Ilocos Norte province is one of the initial components of the
National Integrated Protected Areas System in accordance with Republic Act 7586 (NIPAS
Act). It covers 387.5 ha with five barangays sharing its coastline. The lake is a natural
body of fresh water without tributaries. It is shallow with its deepest part at 7.5 m and
the rest at 3-5 m. It also provides irrigation water to over 300 crop farmers. Until
recently, a golf course used to source its irrigation water from the lake. This stopped as
it has been blamed for the considerable reduction in the water level which allegedly
resulted in fish kills. A recent phenomenon in the lake is the proliferation of fish cages
for the culture of tilapia (primarily, O. niloticus spp.). To control its expansion, the
Protected Area Management Board divided the lake into management zones and set a ceiling
of 2 ha of fish cages for each coastal barangay. The lake provides services to various
users, some of which are conflicting.
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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Fish Cage Aquaculture
At the time of the survey, there were 23
fish farmers that had completed at least one cropping. The small number of fish cages in
Paoay Lake produced almost three tons of tilapia in 1997. The average production per cage
per cropping was from 90-98 kg. Most of the output is sold in the market fetching an
average farm gate price of PhP66.8 per kg. Total value of production is PhP6,162 per cage
per crop while the cost of production is estimated at PhP5,963. Average gross profit is
placed at PhP199 per fish cage per cropping. From these results, resource rent or the
contribution of the lake for aquaculture is negative. This was attributed to the very low
survival rate of tilapia fry/fingerling and the fact that the practice is fairly new.
A separate
analysis of data on farmers who earned positive profits and sensitivity analysis of
survival rates indicate that there is a big potential of fish cage aquaculture in the
lake. Average gross profit for this group was over PhP3,000 per crop per cage. Improving
survival rates of fry/fingerling to a level comparable to other areas will increase gross
profit to PhP8,886 per crop per cage. The economic rent, however, is still negative even
for this group of farmers. It is only when survival rates are increased that rents become
positive. |
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Crop Farming
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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Recommendations
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. |
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Presented by : |
Ms. Rina Maria Rosales
Resources, Environment and Economics Center for Studies |
At the Symposium on Wetland Management |
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World Wetlands Day 2001 (02 February)
Visitors Center, Ninoy Aquino Nature Center
Quezon City, Philippines |
For
more information about the study: |
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Resources,
Environment and Economics Center for Studies (REECS)
Unit 3N, 219 Katipunan Avenue
Blue Ridge Subdivision, Quezon City, Philippines
T (63)(2) 439-6616 F
(63)(2) 438-8858
www.reecs.ph |
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