Payments for Forest Ecosystem Services in Western Stara Planina, Bulgaria: A pilot project experience

Forests cover nearly one-third of Bulgaria’s territory and offer vital ecosystem services—from clean water and air to recreation and protection against natural disasters. To ensure these benefits are sustainably delivered, targeted management and financing are essential.

Photo by Neli Doncheva

WWF Bulgaria tested a new model for managing and valuing these services through a pilot project in the Western Stara Planina region, part of the international PoliciES initiative (2014), focusing on integrating payments for ecosystem services (PES).

The pilot area spans over 27,000 hectares in the Berkovitsa State Forestry Enterprise (SFE) in Northwestern Bulgaria. These forests are crucial for water supply to nearby towns, have strong tourism potential, and lie within Natura 2000 sites. Over 39% serve special functions—protective, recreational, or biodiversity-related. Rivers in the region feed key water systems, including the Petrohan cascade, which supplies Montana, Vratsa, and Mezdra.

PES is a voluntary mechanism where ecosystem service users pay for their maintenance or restoration. In forests, this includes watershed protection, tourism, biodiversity conservation, and defence against erosion and climate risks. Bulgarian legislation (e.g. the Forest Act) allows valuation and compensation for these services, but practical implementation has been limited.

The project developed a partial Regional Forest Development Plan (RFDP) integrating PES. Planning involved mapping forest management, identifying ecosystem services, engaging stakeholders, zoning, and defining service providers and beneficiaries. The plan was tested with the Executive Forest Agency, Regional Forest Directorate, municipalities, water users, forest owners, and NGOs.

Three valuation methodologies were applied. The first assessed actual maintenance costs. The second used a rent-based approach, linking service value to sustainable timber use. The third, developed by Assoc. Prof. Nevena Shuleva, combined cost-based, income-based, and market comparison methods.

Photo by Neli Doncheva

Results showed wide variation in water-related service values—from EUR 10 to 90 per hectare depending on method and location. Under Methodology 3, values were EUR 28.00/ha for Varshets and EUR 67.44/ha for Berkovitsa. For tourism and recreation, values were EUR 16.00/ha and EUR 73.92/ha respectively.

Engaging local authorities and communities takes time, trust, and persistence. Private forest ownership is fragmented and hard to manage. Effective PES implementation requires strong institutional backing and completion of the secondary legal framework.

The project proved PES can be a viable and sustainable forest management tool in Bulgaria. With finalized legal support and institutional commitment, national-scale implementation is within reach.