CBA of peat swamp forest management

I. Timber harvesting Option

a. Average timber price 500 RM/m3
Timber yield 30 Year 2 –26 at 30m3/ha/year over annual harvesting are
b. Environmental benefits:
Water benefits 20 Year 1 – 26 at RM20/ha/year 0ver all forest arfea
Recreational benefits 9 RM9/visitor
Number of visitor 0 Year 1 – 26 at 0/year
Rattan/bamboo 33.33 Year 1 – 26 RM10/ha/year over all forest araea
Assumptions:
Total productive forest reserve: 5000 5,000 ha
Cutting cycle: 25 25 years
Annual harvesting rate: 200 200 ha/year (5,000ha/25 years)
Management cost (for one cutting cycle):
Pre-felling activities 500 Year: 1 - 25 at RM500.00/ha/year for each annual harvesting area
Annual administration 50 Year 1 – 26 at RM50.00/ha/year over the whole forest area (5,000ha)
Forest premium charges 10,000 Year 1-25 at RM10,000/ha/year for each annual harvesting area
Time frame for the analysis: 1 cutting cycle 1 – 26 years.

II. Forest conservation Option

a. Average timber price 500 RM500/m3
Timber yield 0 Year 2 –26 at 0m3/ha/year over annual harvesting area
b. Environmental benefits:
Water benefits 100 Year 1 – 26 at RM100/ha/year
Recreational benefits 9 RM9/visitor
Number of visitor 15000 Year 1 – 26 at 15,000/year
Rattan/bamboo 33.33 Year 1 – 26 RM33.33/ha/year over all forest area
Assumptions:
Total forest reserve: 5000 5,000 ha
Annual harvesting rate: 0 0 ha/year no logging allowed
Management cost (for one cutting cycle):
Pre-felling activities 0 Year: 1 - 25 at RM0/ha/year over annual harvesting forest
Annual administration 50 Year 1 – 26 at RM50.00/ha/year over the whole forest area (5,000ha)
Forest premium charges 0 Year 1-25 at RM0/ha/year for each annual harvesting area since no logging a
Time frame for the analysis: 1 cutting cycle 1 – 26 years.

Discount Rate 0.1

I. Timber harvesting Option

Year 1 2 3 4 5

Inflow
Timber harvesting 3000000 3000000 3000000 3000000
Water benefits 100000 100000 100000 100000 100000
Recreational benefits 0 0 0 0 0
Rattan/bamboo 166650 166650 166650 166650 166650
Total 266650 3266650 3266650 3266650 3266650
Discounted Inflow 242409.09091 2699710.743802 2454282.494365 2231166 2028333
Outflow
Pre-felling activities 100000 100000 100000 100000 100000
Annual administration 250000 250000 250000 250000 250000
Forest premium 2000000 2000000 2000000 2000000 2000000
Total 2350000 2350000 2350000 2350000 2350000
Discounted Outflow 2136363.6364 1942148.760331 1765589.782119 1605082 1459165

Netflow -2083350 916650 916650 916650 916650

NPV= 8,514,290 6,430,940

BCR= 1.27
IRR= 44%
 at 30m3/ha/year over annual harvesting area

6 at RM20/ha/year 0ver all forest arfea

6 RM10/ha/year over all forest araea

r for each annual harvesting area

over the whole forest area (5,000ha)
or each annual harvesting area

at 0m3/ha/year over annual harvesting area

6 at RM100/ha/year

6 at 15,000/year
6 RM33.33/ha/year over all forest area

annual harvesting forest

over the whole forest area (5,000ha)
ch annual harvesting area since no logging allowed

6 7 8 9 10 11 12 13 14 15

3000000 3000000 3000000 3000000 3000000 3000000 3000000 3000000 3000000 3000000
100000 100000 100000 100000 100000 100000 100000 100000 100000 100000
0 0 0 0 0 0 0 0 0 0
166650 166650 166650 166650 166650 166650 166650 166650 166650 166650
3266650 3266650 3266650 3266650 3266650 3266650 3266650 3266650 3266650 3266650
1843939 1676308 1523916 1385378 1259435 1144941 1040855 946232.1 860211 782010
 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000
250000 250000 250000 250000 250000 250000 250000 250000 250000 250000
2000000 2000000 2000000 2000000 2000000 2000000 2000000 2000000 2000000 2000000
2350000 2350000 2350000 2350000 2350000 2350000 2350000 2350000 2350000 2350000
1326514 1205922 1096292 996629.4 906026.7 823660.7 748782.4 680711.3 618828.4 562571.3

916650 916650 916650 916650 916650 916650 916650 916650 916650 916650
 16 17 18 19 20 21 22 23 24 25

3000000 3000000 3000000 3000000 3000000 3000000 3000000 3000000 3000000 3000000
100000 100000 100000 100000 100000 100000 100000 100000 100000 100000
0 0 0 0 0 0 0 0 0 0
166650 166650 166650 166650 166650 166650 166650 166650 166650 166650
3266650 3266650 3266650 3266650 3266650 3266650 3266650 3266650 3266650 3266650
710918.2 646289.3 587535.7 534123.4 485566.7 441424.3 401294.8 364813.5 331648.6 301498.7
 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000
250000 250000 250000 250000 250000 250000 250000 250000 250000 250000
2000000 2000000 2000000 2000000 2000000 2000000 2000000 2000000 2000000 2000000
2350000 2350000 2350000 2350000 2350000 2350000 2350000 2350000 2350000 2350000
511428.5 464935 422668.2 384243.8 349312.5 317556.8 288688 262443.7 238585.2 216895.6

916650 916650 916650 916650 916650 916650 916650 916650 916650 916650
 26

3000000
100000
0
166650
3266650
274089.7 27,198,329.80
 250000

250000
20976.36 21,352,020.41

3016650