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Regular government budget.

One conventional and still do-able approach is to include

the cost of the coordinating and implementing arrangements and action plans in a government
budget appropriation. Where appropriate, specific issue- or sector-related action plans should be
included in the budget of an appropriate line agency.
Fees and taxes. Another approach is to collect user fees, permit fees and service fees.
The fees system is a useful mechanism for generating revenues for environmental management
and to sustain the provision of expert services and other environmental improvement projects
[ Box 7.7]. however, infrastructure or legislative measures might also be needed to manage the
use of the revenue collected.
In Xiameen (China), a permit system has been adopted for the use of coastal waters. The
city developed a sea-use zoning scheme that allocates specific areas of the coastal water for
designated purpose. Shipyards, recreational fishing and other activities that make use of coastal
waters require a permit from the Xiamen Oceans and Fisheries Bureau. The permit system has
also been adopted in the coastal management programs in Sri Lanka.
Likewise, ports that provide waste reception facilities can charge an appropriate fee. The
fees collected and the recovery of oil from oily wastes might generate substantial funding for
maintenance and operation. In Bremen Port, an environtment fee is levied on ships calling at the
port whether they use the facilities or not. An environmental surcharge, levied on all cargos
handled in the port, contributes to the cost of the shore reception facilities ( Roos, 1997; Challis,
1997). In South Africa, cargo taxation is being used as a means to generate revenue to fund
navigation and pollution management.
Any funding paradigm must build on existing financial resources available from local
government, no matter how small the available funds. Creative mechanism must be explored to
pool existing resources, to focus on agreed priority issues and to encourage other financial
options, for example, forming partnerships with the private sector.
Public private sector partnerships (PPPs). PPPs are another financing mechanism that
could augment public efforts in environmental management. The private sector as a whole has
both the financial resources, and the skills, to design, build and transfer facilities and services to
improve the environment : for example, planning and operationalizing wastewater treatment
facilities, implementing specialized training, and undertaking environmental and natural resource
surveys. Private sector involvement can be accelerated through the creation of a dynamic policy
and a fair investment environment a role the public sector can effectively fulfill.
In essence, turning environtmental issues into investment opportunities can be facilitated
by the public sector through policy reform that encourages private sector investment. The ICM
management framework enables priority environtmental concern that require management/
technological interventions to be identified. The ICM process enables consensus building among
stakeholders and builds a policy and social environment conducive to private sector investment.
This approach, however, applies only in areas where national policy for private sector investment
is available.

In the Bohai coastal area, more than USD 2 billion in environmental investments will be
needed for municipal wastewater treatment facilities, amd a further USD 0.5 billion for solid for
waste management. For the Manila coastal area, the required investments for solid waste
collection and disposal are estimated to be USD 150 million. When other environmental
facilities and services are considered, ICM programs open up huge investment opportunities,
which could add substantially to job creation and GDP growth.
PPPs are especially attractive for small and medium sized investment projects and
particulary appropriate for local governments. These partnerships enable the development of
sound projects, in terms of risk reduction, risk sharing and increased opportunity/ incentives for
securing favorable loans from national and international banking institutions, that could attract
public private sector investment .
Other sustainable financing mechanisms. Other sustainable financing models can also
be adopted, modified or refined to provide the necessary financial resources to sustain ICM

Overarching Processes
1. Stakeholder consultation and participation
Stakeholder participation is the key coastal management. The term stakeholder donates
all sectors of society at the local level that are directly or indirectly affected by exploitation
and use of coastal resources. Sectors include those that exploit and use the natural resources
for profit, coastal communities that traditionaly use natural resources for their food livehood,
and the public sectors ( local and central) that that govern and manage the use of these
resources. While the private sector causes most physical changes, and in some cases
ecological damage, contributes significantly to the degradation of the environment and
depletion of natural resources due the policy or management failures.
The public sector is the main player in coastal governance. Despite government red-tape
and inadequacies, management of the coastal environment and natural resources cannot be
effective or sustained, even at the community level, if it is undertaken outside the
government framework. Similiary, effective ICM requires the participation of all sectors of
society, including local communities, the business sector, academia, NGOs and other civil
society groups. It is therefore essential that these major players are involved at the very
beginning of any ICM initiatives.
Past approaches to stakeholder paryicipation have provided lessons on how to effectively
engage stakeholders. According to Davis (1997), these approaches encompass a range of
emphasis depending on the particular institutions and the intended responses and results.