Cost- Benefit Analysis of Collaborative Forest Management: A Case Study of Tororo Central Forest Reserve, Eastern Uganda

Abstract

Forests provide multitude of benefits to humanity in terms of local socio-economic, development, and environmental protection which are often not valued at national level because of lack of a valuation system for the ecosystem services. This study undertook a cost-benefit analysis of Collaborative Forest Management (CFM) implementation at Tororo Central Forest Reserve (TCFR) between Nyangole community and National Forestry Authority (NFA) using Contingent Valuation Method (CVM). The result showed that Nyangole community incurred total discounted costs of USD 74,440.0 on tree planting, forest resource management and protection, tree nursery activities and agriculture. Meanwhile they received total discounted economic benefits of USD 396,720.0 from sale of poles, tree seedlings, training opportunities, fire wood, mango fruits, and food stuffs. Other benefits that accrued to the community were opportunity of receiving visitors at the project, training allowances and other ecosystem services provided by the forest. The benefit-cost ratio of CFM to Nyangole community was 5:1 with positive Net Present Value (NPV). We concluded that the CFM partnership between government and Nyangole yielded benefits to the both parties and recommend that this approach be rolled to other sites within the country