Estimating Management Costs for

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Estimating Management Costs for Site de
Conservation in Madagascar
Technical Sub-committee of the Sustainable
Finance group of the EP3
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Building a Protected Area System
In September 2003, the President of Madagascar,
Hon. Marc Ravalomanana, declared that his country
would more than triple the area under
conservation bringing the current 1.7 million
hectares of protected areas up to 6 million.
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Madagascars Protected Areas Today
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What will it cost?
Within a given country, the size of a protected
area is the most important indicator of its cost
(Balmford et al. 2002, 2003.) explaining about 80
to 85 of the variation seen in cost per ha Model
developed estimation of the appropriate area to
cost/area regression and the expected sizes of
the future Site de Conservation
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Analysis based on
Identified and to be Identified SDC Total
Identified Terrestrial 2,941,125 Total
Identified Marine and Wetland 1,445,986 Total
Sites Currently Identified 4,387,111 Total ANGAP
Sites 2,060,000 Target Terrestrial
Sites 5,500,000 (10) Unidentified Terrestrial
Sites 498,875
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Model- Terrestrial
High Cost Scenario based on ANGAP
costs Log(cost/ha) 3.898 - 0.705Log(PA area
in ha) (r2 0.87, plt0.000). Minimum Cost
Scenario (42 reduction) Log(cost/ha) 3.52 -
0.705Log(PA area) (42 reduction due to
elimination of some unncessary spending
categories)
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DATA

1. the annual costs that ANGAP (Madagascars Park
   and Reserve Management Authority) have budgeted
   for the next five years
2. an analysis of ANGAPs 2005 budget by activity
3. Include modification for
   off-site or fixed
   administrative costs

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Administrative Costs
Sites divided into three categories 1) those
that will be managed or at least
overseen nationally 2) those that will be
managed at the provincial or regional level, and
3) those that will be managed only at the local
level
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Terrestrial Results
  Area Low Cost High Cost
Identified Terrestrial Sites 2,941,125 2,611,000 5,430,000
Unidentified Terrestrial Sites 500,000 1,970,000 3,923,000
Total Site de Conservation 3,441,125 4,581,000 9,353,000
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Model Marine Wetland
log10 (cost per unit area, dollar km-2 y-1)
5.62 - 0.72log10(area) - 0.002(distance to
inhabited land) - 0.30(PPP index)area is given
in km2, costs in USD, distance to inhabited land
is measured from the geometric center of the
protected area, PPP purchasing power parity.
From Balmford et al. 2004. Assumptions PPP
3.5 (but is probably higher) distance 1 km.
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Marine Wetland Results
  Area Low Cost High Cost
Identified Marine and Wetland Sites 1,445,986 3,199,000 6,488,000
Assumes a 50 reduction in costs from high cost
to low cost scenario.

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Total Costs for Site de Conservation
  Area Low Cost High Cost
Total for all Site de Conservation 4,887,111 7,780,000 15,841,000
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Low Cost Estimates for Site de Conservation
Management
Terrestrial Terrestrial Terrestrial Marine Wetland Marine Wetland Marine Wetland Total
Size of Site de Cons. Large gt 20000 Medium Btw 2000 20000 Small lt 2000 Large gt 7000 Medium Btw 600 7000 Small lt 600
Area 3,297,808 141,817 1,500 1,398,434 44,904 2,648 4,887,111
Average cost per ha () 1.06 7.38 19.33 1.71 15.41 43.81 1.59
Total Annual Costs () 3,506,000 1,046,000 29,000 2,391,000 692,000 116,000 7,780,000
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High Cost Estimates for Site de Conservation
Management
Terrestrial Terrestrial Terrestrial Marine Wetland Marine Wetland Marine Wetland Total
Size of Site de Cons. Large gt 20000 Medium Btw 2000 20000 Small lt 2000 Large gt 7000 Medium Btw 600 7000 Small lt 600
Area 3,297,808 141,817 1,500 1,398,434 44,904 2,648 4,887,111
Average cost per ha () 2.16 15.15 45.33 3.42 30.75 124.24 3.24
Total Annual Costs () 7,137,000 2,148,000 68,000 4,778,000 1,381,000 329,000 15,841,000
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Summary of Costs
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Issues

1. Findings provide range of costs - higher range
   probable during start-up and early operating
   phases with decreases over time.
2. Marginal costs for newer SdC may prove higher as
   larger areas are unlikely to be available
3. Marine protected areas, if all brought on line,
   will contribute significantly to costs although
   the PPP choice may skew results

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Issues

• 4. Costs reported here do not include the
  existing ANGAP requirements these are
  additional
• Significant increase in annual conservation
  financing requirements that Madagascar and the
  global community need to finance
• Final costs will be rationalized through the
  business planning process

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Can We Afford the Investment?