GEF 7 PIF template · Web viewSignificant biodiversity species include the famous Luzon bleeding heart and many endemic species (eg Philippine Brown Deer, Philippine Warty Pig, and

PART I: PROJECT INFORMATION

Project Title: Implementing the National Framework on Access and Benefit Sharing of Genetic Resources and Associated Traditional Knowledge in the Philippines

Country(ies): Philippines GEF Project ID: 9778GEF Agency(ies): UNDP GEF Agency Project ID: 6275Project Executing Entity(s): Biodiversity Management Bureau

(BMB); Philippine Council for Health Research & Development (DOST); National Commission on Indigenous Peoples (NCIP); Intellectual Property Office (IPO); Tuklas Lunas Centers, UNILAB, Pascual Lab

Submission Date:Resubmission:Second Resubmission:

1 October 201826 Feb 201904 Apr 2019

GEF Focal Area(s): Biodiversity Project Duration (Months) 72 months

A. INDICATIVE FOCAL/NON-FOCAL AREA ELEMENTS

Programming Directions Trust Fund(in $)

GEF Project Financing

Co-financing

BD-3-9 GEFTF 4,384,000.00 19,100,000

Total Project Cost 4,384,000.00 19,100,000

B. INDICATIVE PROJECT DESCRIPTION SUMMARY

Project Objective: The Nagoya Protocol is implemented effectively in the Philippines by strengthening the national Access and Benefit Sharing (ABS) framework, building national and local capacities and developing critical experience in ABS agreements.

Project Components

Component Type

Project Outcomes Project Outputs

Trust Fund

(in $)GEF

Project Financin

g

Co-financing

1. Strengthening the national framework for implementing ABS in accordance with the Nagoya Protocol

Technical Assistance

Strengthened national regulatory frameworks and clarified institutional mechanisms for ABS that are in compliance with the Nagoya Protocol measured by:

An inter-agency mechanism using harmonized rules, protocols and guidelines to facilitate R&D

1.1Rules and regulations revised, harmonized and in use that will facilitate research, promote more ABS agreements and provide for effective revenue sharing mechanism between and among the national and local government, researchers,

GEF 614,006 6,639,000

GEF-7 PIF Template-June 6 2018 (draft)

GEF-7 PROJECT IDENTIFICATION FORM (PIF)

PROJECT TYPE: FULL-SIZED PROJECTTYPE OF TRUST FUND: GEF TRUST FUND

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and promote ABS agreements between users and providers of genetic resources

An inter-agency framework to monitor and trace the use of genetic resources and ABS transactions

A mechanism to channel ABS benefits which provide options for biodiversity conservation and sustainable use

private sectors and communities

1.2 Clear procedure protocols and guidelines issued for bioprospecting research and development, including the IPR application and processes and procurement of R&D supplies and equipment, community involvement and protection of traditional knowledge

1.3 Revised institutional framework and administrative system in place to facilitate implementation of the national ABS framework including tracking and monitoring mechanisms in accordance with the Nagoya Protocol

1.4Functional mechanism established for investing monetary and non-monetary benefits derived from the negotiation of benefit-sharing agreements into biodiversity conservation and community development

2. Awareness raising and capacity building for implementati

Technical Assistance

Enhanced understanding of the ABS regime and the value of traditional

2.1A CEPA action plan (communication, education and public

1,023,343 2,506,000


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on of national ABS framework

knowledge associated with genetic and biological resources for improved policy making and on the ground conservation, sustainable use and fair and equitable sharing of benefits measured by:

Capacities of existing agencies and other relevant stakeholders for ABS implementation including research institutions, IPLCs and private sector improved by at least 30%, as measured by UNDP’s ABS Capacity Development Scorecard (baseline to be determined during PPG).

awareness) on ABS related policies and procedures developed and implemented nationwide

2.2 A comprehensive suite of IEC materials on ABS developed and disseminated to key stakeholders especially IPLCs depending on their level of awareness and needs.

2.3Road mapping of genetic R&D and ABS development for one priority sector

2.4 Integrated training programme and other capacity building measures for staff of relevant ABS agencies (DOST, NCIP, DENR, IPO, DTI, SUCs, etc.) and stakeholders including IPLCs on ABS processes & procedures, compliance monitoring, tracking and monitoring bio-prospecting projects and other issues under the Nagoya Protocol

2.5 Database for on-going and pipeline researches, traditional


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knowledge of IPLCs, access permits (that takes into account national regulation and comply with Nagoya Protocol)

2.6 Best practice pilot ABS agreements and PIC processes documented, disseminated at the national and local level and used to inform revisions of national and local level standards, processes and guidelines

3. Demonstrating benefit-sharing agreements

At least one ABS Agreement negotiated and finalized that demonstrate PIC and MAT and with clear provision on fair and equitable benefit sharing measured by:

At least 1 potential ABS product identified and tested for potential commercial application (please see annex D for the list of candidate species)

At least one pilot agreement with in-situ conservation measures to ensure protection and sustainable management of

3.1Existing agreements reviewed and revised to be in line with national ABS framework and the Nagoya Protocol to ensure equitable sharing of benefits

3.2 Agreement on monetary and non-monetary benefits derived from the use/marketing of natural products and Material Transfer Agreements with the local communities

3.3 Research on identifying, extracting and development of new bio-products and bioprospecting permits obtained;

2,537,890 9,000,000


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the biological resource (extent of area will be determined during PPG)

Income generated from ABS agreement accrue to local communities through a transparent and clear mechanism (baseline and target to be determined during PPG)

3.4Biology, associated traditional knowledge and profile of 2 species with potential bio-products documented and databased

3.5 Market analysis, production and development supported for at least 2 potential genetic products.

3.6 Model PIC processes with ILCs implemented in accordance with the planned PIC/community protocol for IP and non-IP areas;

3.7 Biodiversity management plans integrated in pilot agreements provide for in-situ conservation and sustainable use of the genetic resources including harvesting and collection guidelines, community-based governance mechanisms and utilization of traditional knowledge

Subtotal GEFTF

4,175.239 18,145,000

Project Management Cost (PMC) GEFTF

208,761 955,000

Total Project Cost 4,384,000 19,100,000For multi-trust fund projects, provide the total amount of PMC in Table B, and indicate the split of PMC among the different trust funds here: ( )


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C. INDICATIVE SOURCES OF CO-FINANCING FOR THE PROJECT BY NAME AND BY TYPE, IF AVAILABLE

Sources of Co-financing Name of Co-financier Type of Co-financing

InvestmentMobilized Amount ($)

Recipient Country Government

Department of Environment and Natural Resources

Grant Investment Mobilized

4,500,000


National Commission on Indigenous Peoples

In-kind Recurrent expenditures

200,000


DOST - PCAARRD Grant Investment mobilized

3,100,000


DOST- Philippine Council for Health Research & Development

Grant Investment mobilized

5,000,000

Academic Academic & Research Institutions


1,500,000


Department of Trade & Industry - Intellectual Property Office


500,000

Private Sector – Unilab, Pascual Laboratories, Sekaya, Chamber of Herbal Industries, etc.

Grant Investment mobilized

1,000,000

UNDP Grant Investment mobilized

500,000


Local Government Units In-kind Recurrent expenditures

1,000,000


Commission on Higher Education


1,500,000

IPLC In-kind Recurrent expenditures

300,000

(select) (select)(select) (select)Total Co-financing 19,100,000

Describe how any “Investment Mobilized” was identified

Government: Investments have been identified through the National Government (capital funds) representing the potential new funding for a national programme on wealth creation from genetic resources which will be initiated through this Project. DOST- Philippine Council for Health Research & Development and DOST PCAARRD will provide research and equipment grants to academic and research institutions focusing on discovery of novel compounds from indigenous/endemic terrestrial species prioritized by the project. Private sector: New investments in medicinal plant research and development in the country based on current and planned MOUs between the government and private companies (i.e. Unilab, Pascual Laboratories, Sekaya, Chamber of Herbal Industries, etc.) including developing natural products grounded on science to help the indigenous communities and small farmers to protect and benefit from the country’s rich plant resources. UNDP: UNDP will provide grant co-financing of $500,000 for support to sustainable management and conservation of natural/genetic resources under the Country Programme, contributing towards the project’s overall objectives.

D. INDICATIVE TRUST FUND RESOURCES REQUESTED BY AGENCY(IES), COUNTRY(IES), FOCAL AREA AND THE PROGRAMMING OF FUNDS

GEF Agenc

y

Trust Fund

Country/Regional/

Global Focal Area Programming

of Funds

(in $)GEF

Project Financin

g (a)

Agency Fee (b)

Total(c)=a+b


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UNDP GEFTF

Philippines Biodiversity (select as applicable)

4,384,000 416,480 4,800,480

Total GEF Resources 4,384,000 416,480 4,800,480

E. PROJECT PREPARATION GRANT (PPG)

Is Project Preparation Grant requested? Yes No If no, skip item E.

PPG AMOUNT REQUESTED BY AGENCY(IES), TRUST FUND, COUNTRY(IES) AND THE PROGRAMMING OF FUNDS

GEF Agency

Trust Fund

Country/ Regional/Global Focal Area Programming

of Funds

(in $)

PPG (a)AgencyFee (b)

Totalc = a + b

UNDP GEFTF Philippines Biodiversity (select as applicable) 150,000 14,250 164,250Total PPG Amount 150,000 14,250 164,250

F. PROJECT’S TARGET CONTRIBUTIONS TO GEF 7 CORE INDICATORSProvide the relevant sub-indicator values for this project using the methodologies indicated in the Core Indicator Worksheet provided in Annex B and aggregating them in the table below. Progress in programming against these targets is updated at the time of CEO endorsement, at midterm evaluation, and at terminal evaluation. Achieved targets will be aggregated and reported at any time during the replenishment period. There is no need to complete this table for climate adaptation projects financed solely through LDCF and SCCF.

Project Core Indicators Expected at PIF1 Terrestrial protected areas created or under improved management for

conservation and sustainable use (Million Hectares)

2 Marine protected areas created or under improved management for conservation and sustainable use (Million Hectares)

3 Area of land restored (Million Hectares) 4 Area of landscapes under improved practices (excluding protected

areas)(Million Hectares)TBC during PPG

5 Area of marine habitat under improved practices (excluding protected areas) (Million Hectares)

Total area under improved management (Million Hectares) 6 Greenhouse Gas Emissions Mitigated (million metric tons of CO2e) 7 Number of shared water ecosystems (fresh or marine) under new or

improved cooperative management

8 Globally over-exploited marine fisheries moved to more sustainable levels (thousand metric tons)(Percent of fisheries, by volume)

9 Reduction, disposal/destruction, phase out, elimination and avoidance of chemicals of global concern and their waste in the environment and in processes, materials and products (thousand metric tons of toxic chemicals reduced)

10 Reduction, avoidance of emissions of POPs to air from point and non-point sources (grams of toxic equivalent gTEQ)

11 Number of direct beneficiaries disaggregated by gender as co-benefit of GEF investment

Monitored1,000 women

1,000 menProvide additional explanation on targets, other methodologies used, and other focal area specifics (i.e., Aichi targets in BD) including justification where core indicators targets are not provided.


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G. PROJECT TAXONOMYPlease fill in the table below for the taxonomic information required of this project. Use the GEF Taxonomy Worksheet provided in Annex C to help you select the most relevant keywords/ topics/themes that best describe this project.

Level 1 Level 2 Level 3 Level 4Influencing models Transform policy and

regutory environmentsStrengthen institutional capacity and decision-makingConvene multi-stakeholder alliancesDemonstrate innovative approaches

Stakeholders Indigenous PeoplesPrivate Sector

BeneficiariesLocal CommunitiesCivil Society

Type of Engagement

Communications

Capital providersFinancial intermediaries and market facilitatorsSMEsIndividuals/ Entrepreneurs

Community Based OrganizationNon-Governmental OrganizationAcademia

Information DisseminationPartnershipConsultationParticipation

Awareness RaisingEducationPublic CampaignsBehavior Change

Capacity, Knowledge and Research Enabling Activities

Capacity DevelopmentKnowledge Generation and ExchangeTargeted ResearchLearning

Innovation

Theory of ChangeAdaptive ManagementIndicators to Measure Change


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Knowledge and Learning

Stakeholder Engagement Plan

Knowledge ManagementInnovationCapacity DevelopmentLearning

Gender EqualityGender Mainstreaming

Gender results areas

BeneficiariesWomen GroupsSex-disaggregated indicatorsGender-sensitive indicators

Access and control over natural resourcesParticipation and leadershipAccess to benefits and servicesCapacity developmentAwareness raisingKnowledge generation

Focal Areas/ThemeBiodiversity

Species

Supplementary Protocol to the CBD

Plant Genetic ResourcesAnimal Genetic Resources

Access to Genetic Resources Benefit Sharing

PART II: PROJECT JUSTIFICATION1a. Project Description. Briefly describe: 1. The global environmental and/or adaptation problems, root causes and barriers that need to be addressed

(systems description)Global Biodiversity Significance: The Philippines is home to an estimated 53,500+ species of plants and animals. Recent reviews have recognized 105 species of amphibians (79% endemic) and 264 reptiles (68% endemic), while recent summaries of birds have recognized 593 species (32% endemic). Mammal diversity is currently estimated at 175 native terrestrial mammals (65% endemic). Total country estimates include as many as 15,000+ plants (and their relatives) and 38,000+ animals (vertebrates and invertebrates). These numbers are considered conservative considering that recent studies have shown that terrestrial biodiversity of the Philippines is substantially under estimated. The Philippines has one of the highest rates of species discovery in the world (sixteen new species of mammals have been discovered in the last ten years alone). New species are being discovered at a remarkable rate and this pattern shows no sign of slowing. Current taxonomic estimates show that the Philippines has the highest level of


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endemism in the Indo-Malayan Realm on a per unit-area basis and the highest concentration of biodiversity on earth . This diversity of species and associated high degree of endemism is associated with a wealth of traditional knowledge about the food, medicinal and other values of these genetic resources, particularly with respect to plants. Accessing this knowledge from indigenous peoples and applying it through scientific research and development and subsequent marketing of new products has huge potential for local communities, scientists and the private sector.

Problem: Several threats to the country’s biodiversity arise from the fact that they are not considered economically important by local communities and development sectors, and economic actions that degrade or cause a loss of biodiversity are more profitable in the short term. Excessive exploitation and utilization of wild species for subsistence and commercial use has resulted in the decreased abundance of many medicinal plants and wild animals. In addition, traditional knowledge of local communities that is associated with genetic resources is disappearing rapidly, due to fast the change of traditional lifestyles. A large volume of traditional knowledge related to medicinal use of biological resources, farming methods and techniques and cultures closely related with nature and biodiversity, is being replaced by modern technology. Poaching, illegal collection of endangered wildlife species, and illegal patenting of products of genetic resources are a significant threat despite the presence of a law as early as 2001 that criminalizes the collecting, hunting, possessing, trading and transporting wildlife, illegal poaching and collection remain rampant. For example in 2014 alone, the government seized 523 animals and some 300 wildlife by-products such as stuffed turtles and carapaces (DENR-BMB data)1. Another important threat is that of indiscriminate logging which changes the forest landscape. Based on 2010 satellite imageries, the total forest cover of the Philippines is estimated at 6,840 million hectares. Of the total forest cover, open forest was accounted with an area of 4,595 million hectares (2012 Philippine Forestry Statistics, FMB). 2 Similarly, the issue of mining claims and rights that overlap with defined areas for PAs, ancestral lands including those planned for conservation areas threaten important biodiversity and ecological sustainability. Since 2014 when the Supreme Court upheld key provisions of the Mining Code, there has been a heavy influx of mining activity and investment into biodiversity-rich areas.

While the country and its people can potentially benefit signficantly from the exploration and use of their genetic resources for pharmaceutical, crop-protection, cosmetic and other ABS products, these have currently not been fully explored. This results in undervaluing and limited use of the genetic resources the country harbours which in turn threatens the genetic resources. In addition, there is a “leakage” in revenue generation derived from bio-piracy of the country’s genetic pool. This is ironic as the Philippines is one of the first CBD Parties to regulate access and benefit-sharing under art. 15 of the Convention on Biological Diversity through the national Executive Order 247 enacted in 1995. This order was amended by the Wildlife Act (Republic Act 9147) in 2001 which dispersed the authority to grant access to four national agencies – the Department of Environment and Natural Resources (DENR), the Department of Agriculture (DA), the National Commission on Indigenous Peoples (NCIP) and the Palawan Council for Sustainable Development (NCIP). In the case of access to traditional knowledge associated with genetic resources, the Indigenous Peoples Rights Act (IPRA or Republic Act 8371) has lodged the authority to grant access including the management of the procedure for the grant of free and prior informed consent, to the NCIP. There is also the law on cultural heritage (Republic Act 10066) which deals with the protection of the cultural heritage of ethnolinguistic communities of the Philippines which apply to both indigenous peoples and local communities (non indigenous groups). Futhermore the Nagoya Protocol, to which the Philippines acceded on 28 December 2015, seeks to advance the implementation of the third objective of the Convention on Biological Diversity3 that concerns the fair and equitable sharing of benefits arising from the utilisation of genetic resources, by providing a strong basis for greater legal certainty and transparency for both providers and users of genetic resources4. The Nagoya Protocol provisions include: compliance with domestic legislation or regulatory requirements of the Party providing genetic resources and contractual obligations reflected in mutually agreed terms; more predictable conditions for access to genetic resources to ensure the sharing of benefits when the genetic resources leave the provider of those resources; and for indigenous and local communities having traditional knowledge about genetic resources to benefit from the use of their knowledge, innovations and practices5

1 http://www.gmanetwork.com/news/story/372650/scitech/science/phl-s-anti-wildlife-trafficking-efforts-still-lack-teeth#sthash.IUNLBFBU.dpuf 2 PBSAP 2015-20283 The Convention on Biological Diversity entered into force on 29 December 1993, to which the Philippines became a Party on 6 January 1994.) 4 See Article 1, Objective, of the Nagoya Protocol5 See Article 3, Scope, of the Nagoya Protocol


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http://www.gmanetwork.com/news/story/372650/scitech/science/phl-s-anti-wildlife-trafficking-efforts-still-lack-teeth#sthash.IUNLBFBU.dpuf

Despite these policies through the years, the country has yet to fully realize the potential economic benefits of its genetic resources. Data shows that global sales of pharmaceuticals are estimated to be US$300 billion annually, of which the component derived from genetic resources accounts for between US$75 billion and US$150 billion6. In the Philippines, in a study commissioned by UNDP Philippines, it is estimated that the bioprospecting value of recorded endemic species in a closed canopy forest is US$39.8 M annually in perpetuity. It was also estimated that the country loses around US$8.1 M million annually in foregone potential royalty fees for just one pharmaceutical product that was not patented7. This only shows that as a mega-diverse country, the Philippines has considerable untapped wealth which can be generated from sustainable management of its rich genetic resources.

Long term solution and barriers: The long-term solution proposed by the project is to establish a comprehensive national legal, regulatory and institutional framework for Access and Benefit Sharing (ABS) of the Philippines diverse genetic resources and associated traditional knowledge to generate social and economic benefits to the local/indigenous communities, scientific institutions, business enterprises and the nation as a whole. It is anticipated that the additional benefits generated from conserving biodiversity and equitably sharing such benefits will result in local stakeholders placing more value on biological resources, resulting in increased conservation. This will ultimately involve the development of a national bio-prospecting industry. The establishment of a comprehensive national ABS framework will also ensure that the Philippines sovereign right to regulate access to genetic resources and associated traditional knowledge is respected. This is however currently impeded by the following barriers:

Barrier 1: Inadequate and weak enforcement of policies, institutional and regulatory frameworks on ABS implementation. The granting of access is delegated to three government agencies: DENR, DA, and PCSD which implement differently the existing procedures and approval process and there is a weak coordinating mechanism among these agencies including possible streamlining and harmonization of their processes and procedures. On the other, the issuance of Free and Prior Informed Consent (FPIC) for commercial research which is a fundamental requirement for granting access by the three government agencies is dependent on how such FPIC is facilitated by the NCIP

There is also an impasse over access and benefit-sharing that is stalling the research and development of traditional knowledge associated with genetic resources. In the Philippines and in some other countries, where the rights of indigenous peoples are explicitly recognized in law, the way in which the free and prior informed consent of indigenous peoples and local communities is implemented has had a long history of not being resolved satisfactorily. The solution lies in recognizing the identity and respecting the rights of the community, acknowledging the limited budgets and timeframes of the research community, assuring the potential investor in genetic resources of a clear return on their investment; and raising the awareness of the general public so that they understand the issues and how these issues impact on their lives in terms of food and health security.

Similarly, the bureacratic processes of undergoing the patenting procedure have also discouraged research community to go through such undertaking. Hence, recognition and success of research results is measured by the number of publication and not so much on the patented discoveries from their researches. Likewise, feedback received by ABS implementing agencies apparently indicated that fees and royalty payment under the current ABS policy (Joint DENR-DA, PCSD, NCIP Administrative Order No. 01 or the Bioprospecting Guidelines in the Philippines) is contributory to the fact that since the approval of the policy, no Bioprospecting Agreement has been perfected. On the contrary, several cases of approved patents arising from the use Philippine biological resources has been reported. This further indicates weak monitoring mechanisms to detect unregulated access to biological resources while suggesting the need for an ABS requirement and procedures that facilitates compliance by legitimate researchers. Another issue with regard to intellectual property is the protection of traditional knowledge (TK). For centuries, the indigenous peoples have invested in knowledge management on the cultivation and conservation of valuable species upon which they depend for food and medicines. However, this TK is constantly at risk in bioprospecting. Hence, these TK and their custodians should be protected and be given the rightful benefits if commercialized. At the same time, there is a convoluted system for registration of patents and copyrights, coupled with weak system for monitoring resulting in illegal patenting of products of genetic resources extracted from the

6 Kerry ten Kate and Sarah A. Laird (2002), Biodiversity and business : coming to terms with the grand bargain, from http://69.90.183.227/doc/articles/2002-/A-00473.pdf, accessed 1 March 2017, 7 UNDP commissioned study “Philippine Wealth Creation from Biodiversity Resources: The Economic Valuation Component, Sept 2016


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http://69.90.183.227/doc/articles/2002-/A-00473.pdf

country by both local and foreign companies. The absence of a systematic way to document and register traditional knowledge (TK) has resulted in piracy of TK on medicines and industrial products developed by IPs and scientific research results of students, researchers and scientists.

Although there is an existing policy which stipulated the royalty payment and collection of fees for a bioprospecting undertaking, the government has indicated that they have a discretion on how and what to provide for the community who may happen to host a biosprospecting activity. Agencies also acknowledged that there is currently no clear policy on how these benefits are allocated down to the local level though this can be clarified during the conduct of FPIC consultations where the community may undertake how they may partake from the bioprospecting activity, if there may be any. This runs the risk of huge discretion and wide variability in the sharing scheme, as these are decided during the process of securing free, prior and informed consent (FPIC). While there are minimum stipulations on sharing with government on bioprospecting, in practice - there are a range of benefit sharing schemes that are negotiated based on effective bargaining. The determination of amount, duration, beneficiaries, all depend on the negotiating teams for the community and the government, on one hand, and the bioprospector, on the other. This has a double edge effect in that for government and communities with weak capacities and limited information; the result could be disadvantageous to them; on the other hand, such a set up could also result in unreasonable demands that could discourage bioprospecting and eventual commercialization. In addition, access to genetic resources has been highly regulatory and bureaucratic; which result in very few agreements to date. There are multiple agencies involved in issuing access and collection permits; and the processes for securing FPIC has been protracted, mainly as a result of a strongly cautious approach on the part of indigenous peoples against possible leakage or non attribution of Against all these, the Philippines does not have an integrated roadmap for sustainable utilization of genetic resources that harmonizes the initiatives of government, research and academic communities, and the demands of private sector. What exists are disconnected efforts by different parties which result in sub optimal allocation and use of resources, which negatively impact on the ability to realize the potential gains from research and commercialization of genetic resources and traditional knowledge of IPs and local communities. Finally, there is no system or mechanism for ensuring that monetary and non-monetary benefits negotiated between users and providers of genetic resources are invested into biodiversity conservation and community development.

Barrier 2 : Lack of awareness and weak capacacity of key stakeholders on ABS implementation at the national and local level. The academic community, local government units, and industry have limited awareness on the basic rules and rationale of existing ABS policies resulting in poor compliance and indifference. As a result, very few have actually applied for access to genetic resources, negotiated bioprospecting agreements, and developed ABS products. Similarly, there is low awareness on patent information by researchers and scientists which contributed to the low patent applications from local researchers in the country. In 2012, data shows that of the total applicants, 94.6% are non-resident (foreign) and only 0.45% were granted for resident applications. There was also lack of appreciation and awareness among universities and research institutes on the relevance of patent information in their research and development work and in the possible commercialization of their research outputs. Capacities of research and academic institutions are also lacking in terms of facilitating IPR applications, and in advancement of research into the next stages of product development and commercialization. In addition, the field offices of agencies in charge of implementing regulations, namely: DENR, DA and NCIP have weak capacities to assess research proposals, thus resulting in missed opportunities to secure benefits from further advance of bioprospecting research should these proceed to product development and eventual commercialization. At the national level, there is also a need to strengthen capacities for negotiating agreements, understanding industry business models, facilitating access to genetic resources, compliance monitoring and tracking of bioprospecting projects, handling cases related to implementation of the Nagoya protocol. The private sector on the other hand, lacks access to information on genetic resource research projects that can easily be transformed into ABS products. On the other hand, indigenous peoples and local communities have limited capacities to manage their own genetic resources associated with traditional knowledge, while ensuring the quality of their raw materials and links in the value chain leading to the development of ABS products. Their skills in negotiations and awareness of opportunities and benefits of engagement in bioprospecting agreements are also limited. While there are existing mechanisms available for use by indigenous peoples and local communities to protect their cultural heritage relating to genetic resources and traditional knowledge, very few of them are aware of these provisions that will enable them to facilitate issuance of FPICs. Finally, there is no systematic documentation of traditional knowledge pertaining to utilization of genetic resources, and database of ongoing and pipeline researches; thus resulting in inefficiencies in advancing genetic resources research towards commercialization. Documentation has been sporadic, and the absence of acceptable protocols for


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recognition and registration of these TKs has discouraged many IPLCs from sharing their information to a central registry. Such documentation does not come with assurances or protection of the intellectual property rights of IPLCs, thus the reluctance to share information with the science community and private sector.

Barrier 3: Absence of good practices on ABS implementation from the initial stage of bioprospecting to research and development, product innovation and commercialization Since the passage of relevant ABS laws and issuance of policies to facilitate bioprospecting as early as 1995, there has not been a single case to cite as best practice in the whole continuum of ABS process from securing FPIC to conducting of R&D up until the commercialization of research products and to the sharing of benefits down to local communities. There is however one case which shows the feasibility of developing a product out of a research undertaking and how this was taken-up by a private sector. This herbal product was a cough syrup from lagundi (Vitex negundo) leaves. This plant species underwent intensive studies in modern medicine led by the DOST. Recognizing the efficacy of Lagundi as a natural remedy for cough and asthma, Pascual Laboratories (PascualLab), a local pharmaceutical company, in collaboration with the National Integrated Research Program of Medicinal Plants (NIRPROMP) introduced ASCOF Lagundi as the first herbal medicine in the country in 19968. In terms of benefits, royalty payments go directly to the researchers, in this case – University of the Philippines Manila and nothing accrues to the national government. Providers of lagundi leaves, on the other hand, benefit from the discretional provision of livelihood from the company. This is optional because the private sector argued that the royalty payments they give should benefit the communities with or without their livelihood assistance. Currently, under the law, this is not clearly spelled-out and there was no clear-cut guidelines especially on the distribution of benefits to the healers who gave evidence or initial indication of the benefits of lagundi. In a large number of countries which are Parties to the Convention on Biological Diversity or the Nagoya Protocol, how to put into effect the rights of indigenous peoples and local communities to their traditional knowledge associated with genetic resources is a big challenge that has not been demonstrated to be successful.

2. The baseline scenario and any associated baseline projectsLegal and institutional baseline: The country’s policy framework for access and benefit sharing is embodied in Executive Order 247 issued in 1995. It is considered the world’s first comprehensive policy framework that provides for access to biological resources on mutually agreed terms, subject to prior informed consent, and the equitable sharing of benefits, initiated in response to Article 15 of the CBD. It sets out “to regulate the prospecting of biological and genetic resources to the end that these resources are protected and conserved, are developed and put to the sustainable use and benefit of the national interest. Further, it aims to promote the development of local capability in science and technology to achieve technological self-reliance in selected areas”. Key provisions of this Order, which is administered by the Inter-Agency Committee on Biological and Genetic Resources (IACBGR), are:

a system of mandatory research agreements between collectors and government, containing minimum terms of provision of information and samples, technology cooperation, and benefit sharing;

an interagency committee to consider, grant, monitor and enforce compliance with research agreements, as well as to coordinate further institutional, policy, and technology development;

a requirement and minimum process standards for obtaining prior informed consent (PIC) from local and indigenous communities where collection of materials is carried out; and

minimum requirements to conform with environmental protection laws and regulations.

Over time, a number of significant issues emerged: the term ‘bioprospecting’ is too broad and includes all types of collecting and sampling, stifling research; ambiguity over ex situ collections exist, which can be used to circumvent the law; application process takes at least five months, for local researchers it is too time-consuming and costly; obtaining PIC certificates requires a minimum of 60 days and is open to extortion and excessive demands; the institutional arrangements need to be overhauled; benefit sharing arrangements are unsatisfactory on all sides; and there is no provision to ensure that the genetic resources are protected and their sustainable use monitored.

Some of these weaknesses were addressed in the Wildlife Resources Conservation and Protection Act of 2001. It redefined bioprospecting in terms of research, collection and use of biological and genetic resources for commercial

8 http://filipinoinventionsanddiscoveries.blogspot.com/2013/06/ascof-lagundi-medicine-for-cough-and.html


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http://filipinoinventionsanddiscoveries.blogspot.com/2013/06/ascof-lagundi-medicine-for-cough-and.html

purposes, while scientific research is allowed through a more simplified gratuitous permit. Bioprospecting is subject to an Undertaking to comply with certain terms and conditions before any access to genetic resources may be provided; a permit is required, as is Prior Informed Consent from indigenous peoples and other relevant parties. The 60 day minimum requirement for PIC has also been removed. The law also provided that foreign applicants must engage national local participants or institutions in the research and any technological development of products. A wildlife management fund was also created to safeguard and, if necessary, restore the biological resources. Penalties were also defined for unauthorized collection, hunting or possession of wildlife. Implementing regulations have since been passed and the authority to grant access was distributed among four national agencies. However, even with this regulatory environment in place, there are not much progress in terms of bioprospecting except that of the technology transfer and commercialization of lagundi (Vitex negundo). In fact, even as to date, there are no on-going Bioprospecting Undertaking per record of the government. Most of the permits issued are for scientific academic researches which the government still fails to monitor and track whether or not these researches have been scaled-up into commercial ones.

Some of the remaining issues are: (a) Absence of clear policies for benefit sharing with communities, and at the commercialization stage. These are subject to negotiations and the sharing schemes can vary greatly – from non-cash to cash; and there are no standards with which to measure adequacy of shares between parties; (b) There are four agencies involved in issuance of permits, without a shared or centralized database; (c) There is weak monitoring of permits issued, and the extent to which they have progressed into product development and commercialization; (d) and securing FPIC takes too long.

Government investments: The Government has not been remiss in recognizing the potential of the country to sustainably utilize its genetic resources, given its global mega-diversity status. A number of on-going ABS related programs and initiatives of the Government to be implemented during the lifetime of this proposed GEF project are described below:

Research and Development Programme on Medicinal Plants. Through the Department of Science and Technology, the PCHRD and PCARRD are providing research and equipment grants to academic and research institutions focusing on discovery of novel compounds from indigenous/endemic terrestrial and marine species. In order to initiate this programme and encourage medicinal plant research in rural areas where the richness of Philippine biodiversity is evident, the government has established screening and extraction centers in various universities around the Philippines to study flora and fauna which are endemic and/or indigenous to the area. The DOST and its attached research councils have a total annual allocation for research and equipment grant not lower than PhP1B (US$20M). This can be complemented by the proposed GEF project by identifying the most advanced research which can be linked up with private sector.

Tuklas Lunas (Drug Discovery) Centers. The government has established at least 10 Tuklas Lunas (Drug Discovery) Centers in several regions in the country housed in select State Universities. This aims to boost research in the regions and harness biodiversity. This programme promotes the scientific validation of traditional and locally used medicinal natural products. These centers are currently studying hundreds of plant species that are locally used by local healers. Table below lists six of these centers with advanced research and the researches they are currently working on.

Tuklas Lunas Center R&D Project StatusMarcos Mariano State University

Phytochemical, Toxicologic Profiling and Anti-inflammatory Activity of Indigenous Medicinal Plants (Phase 1)

Screened 46 plant species used by local healers

Visayas State University Molecular Discovery Project from Selected Philippine Indigenous Medicinal Plants for Treatment of Diabetes Mellitus

Covered 55 plant species with potential for anti-diabetic properties

Mindanao State University

Drug Discovery and Development from Indigenous Plants of Mindanao (Phase 2)

Working on the safety and toxicity evaluation of a promising plant identified from Phase 1 of the study

Central Luzon State University

Mykomining of Wild Edible Mushrooms and Other Allied Species in Central Luzon for their Medicinal Properties

Collecting, rescuing and identifying wild mushrooms and screening their potential against inflammation, hypertension, diabetes, cancer, bacterial and yeast infections.


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Central Mindanao University

Exploring the Potentials of Philippine Ferns and Lycopods as Source of Therapeutics for Chronic Inflammation and Cancer

Combined biodiversity surveillance and ethnobiological surveys of Philippine ferns and lycopods; Screened 28 species of ferns and lycopods

University of San Carlos Identification, Isolation, and Characterization of Bioactive Metabolites from Terrestrial Plants and Marine Organisms Used by Herbalists in Cebu Province (Phase 1)

Extensive ethnopharmacological screening of indigenous plants in Cebu. Screed 28 plants for possible activity against diabetes and microbials.

New centers are added to the list each year, based on evaluation by the DOST. Each center is given a budget of Php 20-50 Million per year (US$ 400,000 to 1 Million). Recently, the PCHRD has entered into a memorandum of understanding with Sekaya, an affiliate of United Laboratories, Inc. (Unilab), the leading pharmaceutical and healthcare company in the Philippines to support medicinal plant research and development in the country. Sekaya was built as a platform to develop natural products grounded on science to help the indigenous communities and small farmers to protect and benefit from the country’s rich plant resources.

Research program of DENR’s Ecosystem Research and Development Bureau (ERDB). The DENR’s research arm is currently prioritizing research efforts on forest tree species with economic potential as well as medicinal value. They have estimated an annual budget for R&D in the coming years of the current administration to be about $1M. Recently, the ERDB has developed a Roadmap for genetic research and development for 43 forest tree species for their potential for pharmaceutical, cosmetics, neutraceutical, industrial, and other values.

DENR-UNDP Wealth Creation Programme. The DENR with support from UNDP Philippines conducted a stocktaking of the constraints that prevent the Philippines from tapping into this immense potential wealth from genetic resources. Following this, the Country Office also supported the formulation in 2016, of a 12-year National Programme on Wealth Creation from Biodiversity Resources (2016-2028). The government is set to formally adopt this as a flagship programme. Discussions with the Department of Budget and Management is on going to secure immediate funding for its implementation. If fully funded, this programme has a total budget of PhP80B ($1.6B) over 12 years; and will focus on support to research and development; including linkages with private sector.

Other ABS related activities: In addition to the above a number of ABS related activities are on-going and planned. For instance, the DENR is undertaking policy review and development related to wildlife management and access and benefit sharing, protection and conservation of threatened species and their habitats, preparation of permits and agreements for the conduct of researches on wildlife. This has an estimated annual budget of US$250,000. In addition, a roadmap on ABS under the Phil Biodiversity Strategy Action Plan from 2015 to 2028 has been prepared. This includes the development of a national policy ABS framework incorporating international commitments, formation of ABS working group, characterization of biodiversity resources, development of M&E system on ABS, improvement of existing gene-banks, capacity building of ABS stakeholders, and strengthening the networks of national research institutions which has a budget requirement amounting to US$36 million. Likewise the Intellectual Property Office has been continuously conducting IPR trainings which will run for 2 more years. This also include the conduct of regular round table discussions on Intellectual Property (IP) enforcement. Similarly, the IPO has established the IPO Phil Patent Protection, Incentive Package known as Juan’s Thousands Invention. This has an approved allocation of US$100,000. It also launched the “Juana Make a Mark” – a trademark registration Incentive Package which waive the payment of basic filing fees, fees for claim of color and publication fee for opposition of trademark application filed by the beneficiary MSMEs. Similarly the UP Manila and Philippine Council for Health Research and Development has established the digital library of traditional medicines. This is a continuing effort of the government and the academe to ensure protection of the country’s cultural heritage as old and new documentation on traditional knowledge in health are gathered and encoded into a digital format. The digital library provides available information gathered from work by researchers and scholars. These include ethnopharmacological documentation, traditional healing practices including rituals, plant compendium, library of traditional healers, and traditional healing terminologies from available ethnobotanical studies, old lexicographic and linguistic texts as well as current immersion research studies being conducted in selected ethnolinguistic groups.

DENR-BMB’s flagship program on coastal and marine entitled “ Coastal and Marine Ecosystem Management Program (CMEMP): This program aims to improve the management of coastal and marine ecosystem thereby increasing their ability to provide ecosystem services and goods including the provision of raw materials for


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pharmaceutical purposes. The CMEMP will run until 2028 with an estimated annual budget allocation of PhP500M ($10M). The CMEMP includes marine protected area establishment, management and networking, gathering of baseline information on fish and non-fish species and support for biodiversity-friendly marine-based livelihoods and enterprises. This could complement the development and/or enhancement of database on research initiatives of biodiversity resources. Similarly, the CMEMP can be a source of co-financing to support BD-friendly enterprises arising from the bio-products that will be developed under the Project. More specifically, the CMEMP will be able to support Output 3.6 – preparation and implementation of biodiversity management plans to conserve and promote the sustainable use of genetic resources. CMEMP is undertaking coral reef assessment; which will serve as baseline for establishment of marine protected area networks; and suitable management interventions. Working with local communities and indigenous peoples, the CMEMP will develop guidelines for harvesting and collection of identified genetic resources.

USAID PROTECT Wildlife Project. USAID recently launched a US$25 Million Project aimed at among others, combatting illegal trade of wildlife. Slated to be implemented initially in Palawan and Zamboanga provinces, the Project will also develop capacities for apprehension, enforcement, and work with communities to protect wildlife resources and conserve biodiversity, including genetic resources in critical sites. The Project started in 2016 and shall be implemented for the next five years. It aims to demonstrate that protecting and managing species and natural habitats will help improve the quality of life and promote community-level sustainable development in the country. Their priority sites are Palawan, Zamboanga, Sulu and TAwi-tawi provinces. This is an anti-poaching project and to arrest illegal poaching, the project will explore the economic potential of wildlife, both plant and animal species, for local benefits. For instance, it is engaging an academic institution in Palawan to do further research on the economic and medicinal uses of Tongkat-Ali (Eurycome longifolia Jack), an herbal plant with well-known traditional use for aphrodisiac effects and intermittent fever. Currently, this plant species are being used by IP communities in Palawan and over-harvesting is becoming a problem. The Protect Wildlife will develop mechanisms and technologies to ensure the sustainable harvesting of this specific plant species. The Project is expected to contribute to the achievement of Output 3.3 – identifying, extracting and development of new bio products, through its agreement with the local University in Palawan. In the course of their work, the Project is also seen as contributing to Outputs 3.4 and 3.5 – that is, documentation and data basing of the biology, and associated traditional knowledge and profile; as well as support to market analysis, production and development of potential genetic products. It is anticipated that additional genetic resources will be identified by the PROTECT Project; and that close collaboration will be made in the course of implementation to ensure that their work also contributes to policies and provision of financial incentives and commercial ventures to local communities as a way of veering them away from illegal wildlife hunting and trading activities.

3. The proposed alternative scenario with a brief description of expected outcomes and components of the projectThe GEF Alternative: It is clear from the above barrier and baseline description that, there are significant gaps in policies and capacity building related to ABS that will be addressed through the GEF alternative. In addition, the GEF alternative will contribute to develop a critical mass of experience in negotiating and finalizing ABS agreements. This is essential to improve the overall environment for equitable sharing of benefits and promote the sustainable utilization of the country’s genetic resources as a way to address the serious threats to degradation of biodiversity resources. There is also a need to address the systemic issues which has stymied incentives for the private sector to pursue bioprospecting, and at the same time, the bottlenecks in recognition of and reluctance of local communities in sharing their traditional knowledge. Given the growing demands to achieve benefits from commercialization of genetic resources this GEF project will support the Philippines vision of achieving economic benefits derived from bioprospecting research and industrial development by ensuring that the existing national legislation is reviewed in accordance with the Nagoya Protocol on Access and Benefit Sharing. In this way the Philippines will be able to harness the full potential of the country’s genetic resources to generate incentives to conserve biodiversity in particular for the indigenous peoples and local communities. In order to do so, the project will clarify the rules, procedures, standards and protocols in relation to access to genetic resources, benefit sharing and compliance so that scientists and business entrepreneurs gain access to genetic resources and associated traditional knowledge in return for equitably sharing the economic benefits with the custodians of genetic resources – local and indigenous communities – in full compliance with the national ABS framework. The project will facilitate the establishment of an enabling ABS framework and system to protect traditional knowledge on genetic resources, while making it accessible to scientists and bioprospectors in accordance with robust agreements that protect the rights and interests of all concerned parties.


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It will also demonstrate how to embed fair and equitable benefit-sharing principles and concepts in the various institutional mechanisms that are available, particularly the customary laws and community protocols and the mutually-agreed terms that may embody the core agreement between the research, the community and the company that will further develop the traditional knowledge associated with genetic resources.

In addition, the project will implement a capacity building programme to raise awareness, increase understanding, and improve competencies about the status quo of existing mechanisms under customary rights law that can provide access to genetic resources, while also putting in place the necessary regimes and protocols for permitting research and commercialization of traditional knowledge. In this way the project will ensure that communities and companies working with genetic resources, not only increase their understanding of the Nagoya Protocol, but also apply relevant ABS requirements in development of value chains for genetic materials. The project will also seek to enable research on traditional knowledge associated with genetic resources in a manner that facilitates the scaling-up of research considering that, the private sector companies involved are engaged from the start so that they can integrate these concerns not only in the research phase but also in further product development which may also lead into commercialization. Further, the project will be focus on the development and marketing of at least two ABS products that generate benefits to be equitably shared with all relevant stakeholders. In addition, the project will showcase a practical demonstration in at least two key biodiversity areas and/or PAs of how ABS can be applied to the use of traditional knowledge in developing commercially viable products from genetic resources of bacteria in sustainable and environmentally sound ways. The project will emplace Biodiversity Management Plans (BMPs) to ensure that: collection and harvesting is carried out in a manner that maintains survival of the species in the wild; collection and harvesting does not affect other species or neighboring eco-systems; collection and management activities are carried out under legitimate tenure arrangements and comply with relevant laws, regulations and agreements, based upon adaptive, practical, participatory and transparent management practices; customary rights of local and indigenous communities to use and manage collection areas are recognized and respected; and trade is conducted in an equitable manner resulting in the fair allocation of benefits to all resource stakeholders in accordance with bioprospecting, access and benefit sharing regulations and the Nagoya Protocol on ABS. Finally, the project will also facilitate a detailed analysis of market trends and niches and the necessary compliance related measures associated with accessing international and regional markets. This will be useful in identifying attractive sectors and markets where specific products derived from these resources could be developed.

4. Alignment with GEF focal area and/or Impact Program strategiesLink to the GEF Focal area strategy: The proposed project alternative is in line with Program 8 of the Biodiversity Focal area strategy: Implementing the Nagoya Protocol on Access and Benefit Sharing. The project activities will support national implementation of the Nagoya Protocol. The project specifically supports (i) Development and implementation of a strategy and action plan for the implementation of ABS measures. (e.g. monitoring of use of genetic resources, compliance with legislation and cooperation on trans-boundary issues); and (b) Building capacity among stakeholders (including indigenous and local communities, especially women) to negotiate between providers and users of genetic resources. The project will also build institutional capacity to carry out research and development to add value to the Philippines’ genetic resources and their traditional knowledge.

Project Objective and ComponentsThe objective of the project is: “the Nagoya Protocol is implemented effectively in the Philippines by strengthening the national Access and Benefit Sharing (ABS) framework, building national and local capacities and developing critical experience in ABS agreements”. This is envisioned to be achieved through the following components:

Component 1: Strengthening the national framework for implementing ABS in accordance with the Nagoya Protocol This component aims to update the current national ABS framework in accordance with the Nagoya Protocol and harmonize current policies on bioprospecting and scientific research on genetic resources and traditional knowledge associated with genetic resources. This process includes developing and harmonizing guidelines and regulatory frameworks which are adopted by government agencies such as the Department of Science and Technology (DOST), the Department of Environment and Natural Resources (DENR), Department of Trade and Industry (DTI), and the Department of Interior and Local Government (DILG) to facilitate the enhancement of research and development in a more strategic, proactive and purposive manner. With the country’s accession to the Nagoya Protocol, all these


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policies and regulatory measures will need to incorporate the obligations relating to streamlining access regulations while ensuring the mechanisms for tracking and monitoring the utilization of genetic resources are also put in place. The task of updating this regulatory framework will include revisiting the national R&D priorities of the country, including thrusts on technology transfer, the ease of use of patenting guidelines, simplifying the intricacies of procurement law of the country which hamper and/or delay procurement of supplies and equipment needed for research undertaking by state universities and colleges and even research arm of DOST, support to product development and commercialization, among many others. In addition, this project will develop regulations that will enable the assertion of customary laws and community protocols on access and benefit sharing in accordance with the Nagoya Protocol and established Philippine laws.

The project will enhance multi-sectoral and inter-agency collaboration with regard to on-going research up until its potential for commercialization. As it is now, the permitting system for research is decentralized to different agencies and in most cases to regional offices depending on the nature, area and scope of research. The institutional mechanism should be able to cross-check or inform other agencies of any research undertakings; and link these with the private sector for possible uptake. Towards this end, an institutional study shall be undertaken to map out the roles and responsibilities of agencies, identify overlaps or redundancies, and establish a suitable mechanism for more coordinated action. Such set up shall also serve as the backbone of an interagency or multisectoral platform for the formulation of a roadmap for ABS. The same policy integration and updating effort should also deal with enhancing existing systems/mechanisms that will result in an acceptable, fair and equitable revenue sharing mechanism wherein the benefits on ABS will accrue to the rightful stakeholder including how benefit sharing will flow from national government to researchers and to communities. What can also contribute to this effort is sec. 35 of the Indigenous Peoples’ Rights Act (IPRA) (sec. 35), which enables already the community, through its customary laws, to grant access to any researcher who may wish to undertake research in their midst, subject to the usual agreement that secures the benefits due to the community. Finally, this component will establish a functional financing mechanism to ensure that monetary and non-monetary benefits derived from the negotiation of benefit-sharing agreements are invested into biodiversity conservation and local development of host communities. The Project will lay down options on how to use the benefits that may be derived from any ABS agreement which may include standardization of re-investment efforts towards biodiversity conservation and community development. However, specific interventions could be part of the ABS negotiation and will depend on the local context, needs and gaps. The provisions of the Integrated Protected Area Fund (IPAF) will be reviewed, as well as country’s one fund policy, including the Wildlife Law, and the IPRA will be reviewed as well to identify opportunities in existing legislations. The feasibility of setting up an independent organization to manage the funds shall also be reviewed.

Component 2: Awareness raising and capacity building for implementation of the national ABS framework.A nation-wide education and information dissemination campaign on ABS and its related policies and procedures will be undertaken under this component. The aim is by the end of the Project, at least 30% of researchers, local communities, and relevant industry players targeted by the campaign are aware and are complying with the national ABS law and regulations as well as of the CBD and Nagoya Protocol provisions related to ABS and TK. Similarly, relevant IEC strategies and materials will be developed targeting different audiences. A comprehensive capacity building programme will be developed and implemented during the course of the project targeting several stakeholders relevant to ABS implementation such as the national government, IPLCs, academic and research institutions, and local industries. The capacity building will include: strengthening the research sector by developing an integrated and comprehensive road map on genetic R&D; strengthening national systems on intellectual property rights by the researchers and IPLCs; protection of traditional knowledge associated with the use of a certain genetic resource; improving the capacities of national government and IPLCs to engage with private sector with regard to ABS (e.g. building the negotiations skills on benefit sharing; understanding the industry’s business model, etc.); strengthening capacities in the assessment of research proposals including the monitoring and tracking of bioprospecting and related activities involving utilization of Philippine genetic resources and TKs; strengthening capacities of IPLCs in the use of mechanisms and provisions of the IPRA, Cultural Heritage Act, etc. to ensure their participation and recognition of their GRs associated TKs; strengthening capacities of IPLCs to manage their GRs associated TKs as well the benefits that come with it; establishment of a model research and development facility.

Additionally, support information system such as developing a database on genetic resources and its related scientific research as well the documentation of TK will be undertaken under this component in close coordination with the PITAHC and PCHRD considering that they have on-going collaborative project on Philippine Traditional Knowledge


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Digital Library on Health. Further, establishment of ‘One Stop Shops’ providing information on research results, especially those on the verge of commercialization, will be undertaken. Technical assistance hubs anchored in selected research coordinating mechanisms and/or research institutions known to be centers of excellence on biodiversity genetics work will also be piloted and institutionalized. This component will, therefore, endeavor to heighten the level of awareness and strengthen the capacities of key stakeholders on ABS policy implementation, processes, procedures and mechanisms. South-South exchange and cross visits to other countries with successful business models, benefit sharing schemes, active bioprospecting programmes, such as Malaysia and Costa Rica shall be organized to expose the country’s research community and government counterparts to establish benchmarks and learn from their experience. These will also be used to develop the country’s Wealth Creation Roadmap referred to under Component 1.

Component 3:Demonstrating benefit-sharing agreements Under this component, a key outcome is to facilitate the negotiation of at least one ABS agreement. To this end the project will develop at least 2 bio-products from local genetic resources of Sambong (Blumea Balsimifera) and Elemi or Pili tree (Canarium luzonicum)(see species description below) – this will primarily be delivered by the project through targeted support provided to research and development initiatives for the development of new products. The project will also facilitate the process for obtaining the relevant bioprospecting permits in accordance with national legislation. Subsequentely, the project will support the design and review of the ABS agreement so that it is in line with the national ABS framework and the provisions of the Nagoya Protocol. This component will also support development of and/or enhancing community protocols of securing PIC and MAT and ensuring the fair and equitable sharing of both monetary and non-monetary benefits for the use of the genetic material, products, and knowledge. Process documentation of the lessons and best practices in the application of the PIC and MAT processes will inform policy reforms planned under component 1. The project will also support market analysis to identify opportunities including niche markets for products both in domestic and international markets.

Further under this component, the following are the proposed major activities leading to the development of 2 prototype products and at least 1 ABS agreement with the private sector:

Securing of free-prior informed consent in sites where there are IP communities. This will include series of consultation meetings with IP communities to explain the objective of the project and the various activities involved which will need their consent and participation.

Biodiversity surveillance and resource assessment of 2 plant species ( Sambong and Elemi). The assessment will include understanding the biology of the plant species, its ecology and location, DNA characterization, quantities, chemotype, ecotype and conservation measures.

Documentation of traditional knowledge associated with the target plant species for the development of prototype products for potential commercialization. This will involve understanding the traditional uses of target plant species by certain IP or local communities. This activity will be done in coordination with the Intellectual Property Office of the Phil. Government and the Phil. Institute of Traditional and Alternative Health Care (PHITAC).

Socio-economic survey . This is to have a deeper understanding of the local economic situation and how it relates to local resource management systems, resource use and the relative importance of resources for households and villages. Wherever possible, enumerators from local communities will be trained to assist in the survey and data gathering. This will also involve focus group discussions and key informant interviews. The data that can be generated will form part of the baselines of the project in the selected sites prior to project implementation. This will also help in assessing whether the benefits, economically, of the ABS, will be significant after 2 or 3 years of project interventions.

Support to advance the R&D efforts for prototype product development and for the sustainable production of raw materials. Following the biodiversity surveillance and resource assessment, further evaluation testing will be done on the target plant species with regard to their performance under greenhouses or field conditions to select the lines or accessions with high yielding traits and adaptability test for other characters for resistance to pest and diseases. The selected GR species with high yielding traits and good characters will be conserved and maintained in tissue culture laboratories or greenhouses


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to serve as sources of planting materials and avoid the continuous collection of plant species from the wild. The propagation methods will be studied for the different species to achieve the volume required for product development. The established propagation method for plant species (Sambong) and forestry species (Elemi) may be used and be modified that will be appropriate for specific GR. The collected GRs will be propagated and the initial stocks will be conserved in short and long term storage, depends on the character traits of the GRs. This activity will include acquisition of laboratory reagents, biochemical and molecular analysis equipment. This may also include preparation of herbarium plant specimen which will provide a permanent record validating the occurrence of a species at a particular locality and time.

This will also include the development of other prototype product aside from what is already out in the market will also be supported. .

Development of production technology and technology transfer to selected communities . This will include trainings on how planting, harvesting, storage and transportation of raw materials should be done. This will also include supporting the establishment of necessary equipment and facilities such as drying machines, vacuum sealers to ensure quality of raw materials according to the standards. Part of the technology development is the setting-up of standards for production of raw materials following good agricultural practices (GAP) and Good Manufacturing practices (GMP) as required by proper authorities like DA BAFFS and FDA DOH, respectively will be prepared through DA and DOH standards. This is to improve the traditional production techniques by incorporating science-based technology and procedures. Under this activity, patent application will also be supported.

Market and value chain analysis . Considering that new products are to be developed, it is important to understand its potential market and how huge it could be to sustain the business. The market analysis will help assess the different market dimensions including its size both in volume and in value, market trends, market profitability, industry cost structure, the customer segments and buying patterns, the competition and understanding the barriers in terms of regulation and entry into the market of such bio-products.

The value chain on the other hand will be helpful in identifying the primary and support activities that could add value to the final product. This will identify the role of different stakeholders especially the local communities in the whole value chain. This will be a participatory model that will aim to maximize inputs and collaboration of communities and market actors. The value chain will involve the following components:- Market analysis- Empowering Producer Groups – this is building the functional capacities of the producers who are

mostly from local communities. This will include identification of skills training from the planting, harvesting and processing of raw materials.

- Facilitation, Networking and Linking with private sector and potential buyers

Linkage and negotiation with private sector – The Project will link with the Chamber of Herbal Industries in the Philippines Inc. (CHIPI). It is an association of around 50 companies that focuses on research & development, manufacturing and distribution of herbal products all over the world.

It will also explore engaging with the Unilab Laboratories Inc, the leading pharmaceutical and heathcare company in the country and its affiliate, the Sentrong Katutubong Yaman (Sekaya). Sekaya is committed to the country’s rich biodiversity to develop natural medicinal products with the help of science and technology. It signed a memorandum of understanding with the Philippine Council for Health Research and Development of the Department of Science and Technology to enhance research and development on health, especially in medicinal plants. The Sekaya has also put up a R&D plant at the Unilab Pharma Campus which is envisioned to become a collaborative R&D center for local medicinal plants and as a platform to develop natural products based on science. At the research and development stage, Unilab


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through Sekaya will be engaged to ensure private sector’s take early on the prototype product development.

The project will primarily support negotiations, workshops and meetings with private sector. It may also support field visits to the project sites by the sector.

Support to marketing and promotion. This will be done in coordination with the Department of Trade and Industry. DTI supports various opportunities in trade shows and business missions. The project will support the organization of trade fairs for herbal and natural products to help in its promotion and marketing.

Support to the Biodiversity Management Planning of the plant species being explored. These strategies will be encapsulated in Biodiversity Management Plans (BMPs) to be embedded in Pilot Agreements to ensure that: collection and harvesting is carried out in a manner that maintains survival of the species in the wild; collection and harvesting does not affect other species or neighbouring eco-systems; collection and management activities are carried out under legitimate tenure arrangements and comply with relevant laws, regulations and agreements, based upon adaptive, practical, science-based, participatory and transparent management practices; customary rights of local and indigenous communities to use and manage collection areas are recognised and respected.; and trade is conducted in an equitable manner resulting in the fair allocation of benefits to all resource stakeholders in accordance with Bioprospecting, Access and Benefit Sharing regulations and the Nagoya Protocol on ABS. Hence, the biodiversity management plan is envisioned to be an integrated one and will look at the landscape where the plant species can be found. The Plan will contain management prescriptions of the plant species in relation to its habitat and the whole landscape and ecosystem. The project will also demostrate the application and approaches in implementing sec. 35 of the Indigenous Peoples’ Rights Act (IPRA) and how the provisions of the Nagoya Protocol may be put into practice in a manner that ensures benefit-sharing through Mutually Agreed Terms (MAT) and that the community’s prior informed consent is secured by taking into account a community’s customary laws and community protocols and procedures.

Documentation of best practice ABS processes in selected sites . This component 3 will involve documentation of the processes undertaken from the biodiversity surveillance/resource assessment to prototype product development to forging agreements with private sector. This will include documentation of lessons learned and compilation of the processes, results and lessons learned. This documentation will be useful in many ways – policy making, awareness raising, and report writing.

Proposed sites: Two sites are proposed. The table below provides information on the sites (please see Annex A for the maps). During the PPG, further assessments will be carried out to better understand the local ecological and socio-economic contexts of the area.

Target Species:

Sambong (Blumea Balsimifera)

Sambong is used as herbal medicine and is a shrub that grows wild in the tropical climate countries such as Philippines, India, Africa and found even in eastern Himalayas. Sambong is widely used in the Philippines as herbal medicine. Sambong leaves are known for its ngai or Blumea camphor that is used as herbal medicine to treat kidney stones, wounds and cuts, rheumatism, anti-diarrhea, anti-spasms, colds and coughs and hypertension. The Philippine Council for Health Research and Development (PCHRD) has develop the technology for a sambong herbal medicine tablet. There have several clinical studies9 already on sambong and researchers of UP Manila have already secured patent on this. Two pharmaceuticals – the Unilab Pharmaceutical

9 See http://registry.healthresearch.ph/index.php?option=com_herdin&view=publiclist&layout=list&type=researches&searchstr=Sambong


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http://registry.healthresearch.ph/index.php?option=com_herdin&view=publiclist&layout=list&type=researches&searchstr=Sambong

http://registry.healthresearch.ph/index.php?option=com_herdin&view=publiclist&layout=list&type=researches&searchstr=Sambong

and Pascual Laboratories have already been paying royalty on sambong product as diuretic and anti-urolithiasis. The communities are benefiting only from the sale of raw materials to pharma companies. Hence, the project aims to ensure sustainable production of sambong leaves while adhering to high quality standards required by pharma companies, considering that they are used for medical purposes.

Additionally, recent research done with the support from PHITAC, essential oil can also be extracted from sambong leaves. The research identified the different components of purified oil from sambong leaves, namely B-camphene, mycene and cineole. This could be another potential innovative product from sambong. The project interventions would be product development, link with private sector, benefit-sharing scheme with resource providers, among others.

Elemi or Pili tree (Canarium luzonicum)

Elemi or Pili is a tree native to the Philippines. Currently, known products of the Pili tree are those from its fruit. However, there are other potential products out of its extracted oil. Studies10 showed that the main components of this oil are dipentene, elemicin, elemol, limonene, phellandrene, and terpineol.

The elemi oil-based products are not well known yet and have not reached a commercial scale of production and marketing in the Philippines. Some companies (local and abroad) have produced products out of the elemi oil but this were not covered by any ABS regulations and agreement. In this regard, the project will work on developing community protocols on the access of the resource, PIC and negotiation for MAT, benefit-sharing scheme, among others. It is also expected that an ABS agreement will be forged with private sector which are currently producing and packaging of elemi oil.

Name of site Total Area

General Description Target Species and Potential Product

Project Intervention

Mindoro Island11

982,600 ha

Among the top ten national priority conservation area, this home of the Mangyan community also includes the Iglit-Baco mountains. Significant biodiversity species includes the Philippines cockatoo, the black hooded coucal and the Mindoro bleeding heart.

Species: Sambong (Blumea Balsimifera)

Product: anti-septic, essential oil

Link to private sector PIC and MAT with IP

Communities Improving the supply

chain of sambong Further R&D on product

development Biodiversity Management

Planning to ensure sustainable production and harvesting of sambong, adhering to medicinal use quality standards

Development of mechanisms for benefit sharing to local communities

ABS agreement Albay Province 255,260

haThe Province declared recently as the third biosphere reserve in the Philippines, consists of important areas such as the Mayon Volcano Natural Park and the Mangrove Forest Reserve in Manito. Significant biodiversity species include

Species: Pili tree

Product: Essential oil as base material for skin care and cosmetic products

Agreement on the resource access

PIC and MAT with IP Communities

Mechanisms and schemes for benefit sharing

Further R&D on product development

Production technology of

10 http://registry.healthresearch.ph/index.php?option=com_herdin&view=publiclist&layout=list&type=researches&searchstr=Elemi+Oil&start=011 Mindoro Island is being proposed as a site for Sambong due to its proximity to the processing plant of Unilab. The transportation and logistical costs will be lower compared with other sites.


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the famous Luzon bleeding heart and many endemic species (eg Philippine Brown Deer, Philippine Warty Pig, and Giant Golden-Crowned Flying Fox). The Bicolano, the Agta Cimarron, the Agta Tabangnon and the Tabo are the different ethnic groups present.

pili tree Biodiversity Management

Planning to ensure sustainable production of the resource

5. Incremental/additional cost reasoning and expected contributions from the baseline, the GEFTF, LDCF, SCCF, and co-financing

Without the project despite the close relationship between indigenous peoples and their natural environment, the economic potential of the country’s rich biodiversity and genetic resources will remain untapped and unable to create tangible incentives for the local communities to continue to be custodians of and conserve the rich natural heritage. This will result in persistence of the various threats and continous loss of the country’s rich biodiversity, as documented in the 2015 National Biodiversity Strategy & Action Plan. Unless this project is implemented the country will not be able to effectively utilise its comprehensive policy framework to regulate bioprospecting, ensure the sharing of benefits derived from genetic resources, conserve biodiversity and improve the livelihoods of indigenous and local communities that depend on genetic resources.

The GEF alternative will secure the long term existence of globally and nationally important biodiversity through measures aimed at sustainable, accessible and innovative use of genetic resources for medicinal and cosmetic purposes. The alternative will provide scientists and business entrepreneurs with access to genetic resources and associated traditional knowledge in return for equitably sharing the economic benefits with those indigenous communities providing such access in full compliance with the applicable ABS regimes. In other words the GEF alternative will contribute to the long-term solution to ulilize the Philippines diverse genetic resources and associated traditional knowledge to generate social and economic benefits for the local/indigenous communities, scientific institutions, business enterprises and the nation as a whole.

6. Global environmental benefits (GEFTF) and/or adaptation benefits (LDCF/SCCF)The global environmental benefits resulting from this project include:

Fair and equitable sharing of the benefits arising from the utilization of genetic resources and their associated traditional knowledge.

Biodiversity conservation and sustainable use carried out mainly in two pilot areas: in the southern part of Mindoro Island and Albay Province in S.E. Luzon. There will also be global benefits arising from the conservation of specific plant species.

The preservation of traditional knowledge, innovations and practices of indigenous communities.

The table below presents these benefits in more detail, alongside the baseline and GEF alternative.

CURRENT BASELINE ALTERNATIVE GLOBAL BENEFITS


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The Philippines is a megadiverse country; and over half of its 52, 177 described species are found nowhere else in the world. This applies also to the flora: over half of the 10,000-14,000 species are endemic according to DENR The Philippines is also home to 110 indigenous ethnic groups, representing 28 ethno-linguistic communities12. Allied with this ethnic diversity is a wealth of traditional knowledge about the nutritional, medicinal and other values of wild plants (and animals).This close relationship between indigenous peoples and their natural environment is reflected in distributions of biological and ethnic diversity: of the 101 terrestrial Key Biodiversity Areas identified for the Philippines, 96 are part of the ancestral lands/domains of indigenous peoples13.Much of the Philippines’ biodiversity is unprotected. Of the 228 KBAs, covering 106,552 sq. km of land and sea, identified for the Philippines, only 50 lie within PAs. A further 41 are partially within PAs and 137 (60%) are unprotected1014. The Philippines continues to lose its terrestrial biodiversity, as documented in the 2015 National Biodiversity Strategy & Action Plan, while also underutilizing this asset with respect to plant genetic resources about which much traditional knowledge lies with indigenous peoples. The Philippines was the first country to introduce a comprehensive policy framework on ABS in 1996 (Executive Order 247) in response to CBD Article 15 to regulate bioprospecting in favor of the national interest in conserving biodiversity and enhancing the livelihoods of those indigenous and local communities having the traditional knowledge about how to use such genetic resources.Various gaps and weaknesses in this legislation, combined with an inadequate appreciation of some more liberal policies within the Indigenous Peoples Rights Act (IPRA), 1997, stalled progress in applying the ABS policy framework but many of the short-comings were addressed with passing of the 2001 Wildlife Resources Conservation and Protection Act. Experience since gained in applying Section 35 of IPRA demonstrates how the provisions of the Nagoya Protocol may be put into practice in a manner that ensures benefit-sharing through mutually agreed terms and secures a community’s prior informed consent by taking into account a community’s customary laws, protocols and procedures. However, further barriers have emerged that limit the delivery and sharing of benefits from combining traditional knowledge with scientific technology to create new medicinal and other products from plant genetic resources. For example:

Some existing agreements on utilization of traditional knowledge associated with genetic resources do not incorporate the customary laws and community protocols of indigenous peoples

The alternative provided by this GEF project will include the sharing of benefits derived from genetic resources and their associated traditional knowledge. The project will also enhance global biodiversity benefits, as well as multiple national and local co-benefits, arising from the sustainable, accessible and innovative use of plant genetic resources for medicinal, cosmetic and potentially other purposes. It will do so by providing scientists and business entrepreneurs with access to genetic resources and associated traditional knowledge in return for equitably sharing the economic benefits with those indigenous communities providing such access in full compliance with the applicable ABS regimes.The work will be implemented under three interrelated fronts:First will be the establishment of an enabling ABS framework and system to protect traditional knowledge on genetic resources, while making it accessible to scientists and bioprospectors in accordance with robust agreements that protect the rights and interests of all concerned parties.Second will be a capacity building programme to raise awareness and increase understanding about the status quo of existing mechanisms under customary rights law that can provide access to genetic resources, while also putting in place the necessary regimes and protocols for permitting for research and commercialization of traditional knowledge. Third the project will support the practical demonstration in at least two study areas of how ABS can be applied to the use of traditional knowledge in developing commercially viable products from genetic resources in sustainable and environmentally sound ways. This component will

A key global environmental benefit of the project is the equitable sharing of benefits derived from the utilization of genetic resources. In addition, the project will protect biodiversity of global importance as follows:At landscape level: Some 812sq. km of protected areas in Albay Province (2,552.6 sq.km) in S.E. Luzon Island and the Iglic-Baco Mountains15 along the central corridor of Mindoro Island (9,826 sq.km) will be targeted by the project for pilot ABS initiatives. This will raise awareness among local communities of the importance of these landscapes for plant genetic resources and provide greater local support for strengthening the management of protected areas in the landscapes.At species level: some threatened, endemic and other plant species, as well as associated animal species, will benefit directly from project interventions in terms of increased population viability, while others will benefit from greater understanding and appreciation of their medicinal and other values to society.Most importantly, the interrelationship between plant genetic resources and traditional knowledge will become more widely appreciated, all of which will strengthen the management of the protected areas system, given the high incidence of traditional lands/ domains within KBAs of which 40% lie at least partially within PAs.No doubt, many of the Philippines’ medicinal plants remain undiscovered, others are yet to be thoroughly studied and large numbers remain under-utilized. A number of these species are likely to be at risk from reductions in their gene pool and, in the case of rare and endemic species within the landscape, a few may be facing extinction. The project will seek

12 This may be a conservative estimate. Other sources suggest that there are 180 indigenous ethnic groups, over half of which represent unique linguistic groups. [https://en.wikipedia.org/wiki/Ethnic_groups_in_the_Philippines]13 Philippines Biodiversity Strategy and Action Plan (2015-2028)14 Note that protected areas currently cover 15.3% (45,760 sq.km) of land and 1.2% (21,269 sq.km) of sea in the Philippines. (UNEP-WCMC, 2016, Global statistics from the World Database on Protected Areas, Cambridge, UK: UNEP- WCMC. 15 This national park was tentatively listed for nomination for inscription on the World Heritage List in 2006.


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and local communities. There is unregulated utilization of traditional

knowledge associated with genetic resources.

also include the implementation of detailed biodiversity management plans for the conservation of such genetic resources and associated traditional knowledge.

to change these patterns, through sustainable use and through in situ and ex situ conservation measures16.

7. Innovation, sustainability and potential for scaling up

The project is innovative in that it demonstrates how the provisions of the Nagoya Protocol on ABS can be applied to the national context, which is one of high biodiversity alongside high ethnic and linguistic diversity that has resulted in a wealth of knowledge about plant genetic resources and indigenous peoples. A key and innovative element of the project is a pilot implementation of the Philippine Wealth Creation Program from Biodiversity Genetic Resources and its various components, which are: comprehensive R&D agenda, commercialization, tracking, upscaling of traditional knowledge-based enterprises and knowledge management system. The project builds on twenty years of initiative on the part of the Philippine Government to implement Article 15 of the CBD and, more recently, apply the Nagoya Protocol on ABS that came into force in 2015. Innovations include the following: Enabling on-the-ground institutional mechanisms, customary laws as well as the community protocols of indigenous peoples and local communities, to be operationalized in line with a specific legal provision in Section 35 of the Indigenous Peoples’ Rights Act. This innovation is already covered by the law but very few are aware of it, other than some civil society organizations working with indigenous peoples and the Biodiversity Management Bureau who have been using it for quite some time. This institutional mechanism will complement the existing regulatory framework of the National Commission on Indigenous Peoples, especially in areas where it is the community that decides to use their customary laws and community protocol to deal with a specific bioprospecting application. In this sense, it is a supplementary institutional mechanism, which also serves to remedy the usual bottlenecks in administrative decision-making on access to biological and genetic resources concerns that are typical of national agencies with far-flung regional service centers. The use of customary laws and community protocols in securing fair and equitable benefit-sharing from the utilization of traditional knowledge associated with genetic resources is one innovation that has not yet been implemented and documented, at least in the Philippine setting.

The wildlife, biological and traditional knowledge research sectors in the Philippines are largely unaware of this decentralized mechanism and, for the first time, may be able to secure free and prior informed consent directly from the communities using customary laws and community protocols whereby they can be active partners with them in designing the research goals and objectives from the outset of the project through to completion. The application of the various monitoring and tracking mechanisms (checkpoints and the internationally recognized certificate of compliance) of the Nagoya Protocol is a first for a megadiverse country that affirms the rights of indigenous peoples and local communities.

The sustainability of the project is anticipated once communities are actively engaging with the research community and applying their customary laws and community protocols to bioprospecting opportunities. Once these types of research become routine and efficiently administered, then companies will be keen to come aboard and invest in such enterprises. Upscaling comprises enabling existing markets to expand once enterprises have consolidated their supplies of traditional knowledge-based products; and then mainstreaming exemplar models of best practices across other regions of the country, from Luzon to Mindanao. Given that there are at least 110 indigenous peoples in the Philippines scattered in recognized ancestral lands that are very often in or near to KBAs, upscaling of this project has every chance of being successful provided the management of genetic resources is shown to be demonstrably sustainable based on rigorous monitoring and evaluation procedures. Upscaling of traditional knowledge-based enterprises is also a key component of the Philippine Wealth Creation Program and, therefore, will be an important contribution towards the attainment of the Program’s objectives.

1b. Project Map and Coordinates. Please provide geo-referenced information and map where the project interventions will take place.

Please see Annex A.16 Ex-situ conservation will be financed with co-financing not with GEF resources.


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2. Stakeholders. Select the stakeholders that have participated in consultations during the project identification phase: Indigenous Peoples and Local Communities; Civil Society Organizations; Private Sector Entities; If None of the above, please explain why.

The following stakeholders have been identified. The stakeholder involvement plan will be developed during the PPG.

Stakeholder Roles and Responsibilities Involvement in the ProjectBiodiversity Management Bureau (BMB)

The central agency responsible for implementing fair and equitable sharing of benefits from the utilization of genetic resources found in the country’s wildlife areas through the Wildlife Act.

BMB will be the implementing agency and will be mainly responsible for managing the Project. It will enter into MOAs with various government agencies, selected NGOs, and organizations in implementing major components and activities in the corridors.

Ecosystems Research and Development Bureau (ERDB)

A DENR unit responsible for coordinating research and development efforts in genetic resources, which includes traditional knowledge associated with genetic resources

ERBD will assist BMB in developing the R&D agenda including the knowledge management system for traditional knowledge associated with genetic resources, in collaboration with other agencies, such as the NCIP, NCCA, etc.

National Commission for Indigenous Peoples

The agency responsible for implementing the Indigenous Peoples’ Rights Act

NCIP will help facilitate the identification of indigenous peoples in ancestral domains/lands with CADTs/CALTs with functioning council of elders able to apply their customary laws/community protocols; they can also provide validation of the communities who have these customary laws and community protocols in cases where competing communities may claim to have these customary laws and community protocols

Philippine Council for Health Research and Development (PCHRD) of the Department of Science and Technology

An agency with a mandate to conduct systematic research on the country’s traditional medicines and manage a database containing part of the knowledge existing for these medicines, through the Traditional Knowledge Digital Library

PCHRD-DOST will work with NCIP and other research groups to conduct research on traditional medicines utilizing the traditional knowledge associated with genetic resources of identified indigenous peoples and local communities.

Other agencies (Intellectual Property Office, Department of Science and Technology (DOST), Department Of Interior and Local Government (DILG), Department of Trade & Industry (DTI)

Agencies involved in planning and implementation of the various components of the Project : Intellectual Property Office - will work in the case study phase documenting an identified community with a researcher and company who will work from the beginning of the access to the traditional knowledge continuing to research and into product development and facilitating the application of appropriate intellectual property right (patent, trademark or any other intellectual property) that the researcher and community may agree onDOST – to identify research groups that are into elaborating traditional knowledge associated with genetic resources who may be tapped to participate in the Project and further support the identification of the potentials of these resourcesDILG – to identify local government units like the Province of Albay, to participate in the Project and encourage other LGUs to take a more active role in the ProjectDTI – to support the development and promotion of biodiversity- friendly enterprises

National and local NGOs such as Tebtebba Foundation, PAFID, Haribon Foundation, NTFP-EP, and others.

These NGOs have advocacies that advance the rights of indigenous peoples and local communities with emphasis on CBD-related issues PAFID has experience in enabling the grant of FPIC at the community level

These NGOs will help identify communities who may be interested to participate in the Project and give advice at various stages of implementation based on their relevant experience

Indigenous peoples and local communities (farmers engaged in agriculture, upland forestry, and other economic activities in the corridor) who are not

They are the direct and primary stakeholders in the Project. They stand to benefit from the Project, Some communities may already have some existing enterprise initiatives with their biological resources while some may be new to the issue

IP communities will be supported in the development or activation of their customary laws and community protocols relating to traditional knowledge associated with genetic resources


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Stakeholder Roles and Responsibilities Involvement in the Projectindigenous peoples (esp. those participating in the Albay Province area)Tuklas Lunas Centers, Academic and Research Institutions that are operating in the pilot areas

They undertake research in specific applications of genetic resources sometimes leading also to product development

They will be involved in the conduct of research, other studies, and in sharing of scientific information relating to the research. They will also participate and provide inputs during the ABS road-mapping exercise. They will also implement the various reporting and tracking mechanisms that will be applied through the Project.

UNILAB, Pascual Laboratories and other Private sector entities (usually companies that undertake natural products researchers or into product development and commercialization of these researches)

The companies identified that will participate in the project will be involved at all stages of the implementation from work with the community on the ground, the securing of FPIC and the later stages of product research and commercialization

They will use the researches of the academic institutions who will work with communities and apply the various tracking mechanisms from research to commercialization. They will also enter into agreements with the community based with what is set by the customary laws and community protocols on the subject resource.

3. Gender Equality and Women’s Empowerment. Briefly include below any gender dimensions relevant to the project, and any plans to address gender in project design (e.g. gender analysis). Does the project expect to include any gender-responsive measures to address gender gaps or promote gender equality and women empowerment? yes /no / tbd ; If possible, indicate in which results area(s) the project is expected to contribute to gender equality:

closing gender gaps in access to and control over natural resources; improving women’s participation and decision-making; and/or generating socio-economic benefits or services for women.

Will the project’s results framework or logical framework include gender-sensitive indicators? yes /no / tbd

The governance structures of indigenous peoples and local communities in the Philippines consider the role of women in decision-making, especially in matters relating to the conservation and sustainable use of a community’s biodiversity which includes their genetic resources as well as traditional knowledge associated with genetic resources. This project, which seeks to empower a community’s council of elders, which more often than not includes women, would necessarily result in empowering the women in the community and promote gender equality in accord with the particular community’s norms and traditions. To better inform how gender can be mainstreamed in project implementation, a full gender analysis will be undertaken during project preparation to determine the differentiated roles of women and men in biodiversity conservation and natural resources management, and on access and benefit sharing. The results will be used to develop more responsive gender development program under the Project, including the project gender mainstreaming plan and gender disaggregated indicators, that will become the basis for monitoring and evaluation of the Project’s impact on promoting gender equity and empowerment of women and youth including through the application of the UNDP gender maker – that assesses project’s potential contribution to mainstreaming gender. In addition, this gender assessment will also identify areas where negative impacts can be reduced, and positive ones enhanced. Both during design and implementation period, the project will ensure equal opportunities for women and men to participate in decision making. Steps will be taken to ensure that women’s needs are taken into account in management arrangements set up by the community, including encouraging women to actively participate in community meetings and platforms that discuss project activities.

At project implementation, the role of women in decision-making relating to access to traditional knowledge associated with genetic resources will be carefully documented and analyzed for greater understanding on the dynamics of gender and power as relates to natural resources decisions in a specific community setting. The results of this documentation are aimed at enabling the adoption of a gender strategy for the entire project.

4. Private sector engagement. Will there be private sector engagement in the project? (yes /no ). Please briefly explain the rationale behind your answer. This project will engage key private sector in the area of pharmaceutical, nutraceutical and industries which depend their raw materials from rich natural resources. The Project will link with the Chamber of Herbal Industries in the Philippines Inc. (CHIPI). It is an association of around 50 companies that focuses on research & development, manufacturing and distribution of herbal and natural products all over the world.


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Most of the local pharmaceutical companies and small manufacturing companies which will be engaged by the Project are members of CHIPI.

5. Risks. Indicate risks, including climate change, potential social and environmental risks that might prevent the project objectives from being achieved or may be resulting from project implementation, and, if possible, propose measures that address these risks to be further developed during the project design (table format acceptable).

Risk Rating Mitigation StrategyPrivate companies may find their potential return on these types of research to be not worth their effort thus they decline to participate in the Project

Medium A thorough situation analysis will be conducted during the PPG to mitigate this risk. The project will support application of the robust national laws and regulations on management of ABS, ensuring their compatibility with other existing laws which may conflict with the ABS law. The project will also support capacity development of various institutions in order to ensure strict enforcement of the new laws to avoid any problems arising during the actual biodiscovery and product development processes. The project will further sensitise both providers and users of genetic resources including international and national companies about the new law and the procedures put in place for ABS. In addition, through measures such as ethnobotanic studies, the project will showcase the benefit of working with and on leveraging the economic potential of the traditional knowledge associated with genetic resources that are lodged within the 110 indigenous peoples and 28 ethnolinguistic communities in the Philippines.

Commercial confidentiality restrictions may limit information sharing on development process

Medium During the PPG and implementation phase, the project will conduct extensive consultation and advocacy campaigns targeting commercial stakeholders to create awareness and political will to take up the proposed ABS regulatory framework. The project will support the conduct of seminars targeting legislators to advocate for their support to the new ABS regulatory framework.

The indigenous peoples and local communities are not fully committed to the objective of the project

Low The project will coordinate efforts to ensure that the awareness-raising activities in ABS integrate key stakeholders. The strengthening and the adequacy of ABS-related norms (e.g., PIC, MAT, BS, and protection of traditional knowledge) will further contribute to the involvement of all stakeholders. Additionally, the project will develop a stakeholder participation plan to ensure that local communities, indigenous people, and other stakeholders participate in all stages of the project (design, planning, implementation, and evaluation) in order to promote their commitment to the project and ABS.

The gestation required to realize clear benefits from genetic research to product commercialization may be too long and may serve to diminish the interest of stakeholders

Medium The Project will focus on those which have significant potential, to demonstrate early benefits. It will also establish a clear pipeline of programmes around specific species and products so that a more targeted and integrated approach can be taken to bring these to maturity and eventually commercialization.

6. Coordination. Outline the institutional structure of the project including monitoring and evaluation coordination at the project level. Describe possible coordination with other relevant GEF-financed projects and other initiatives.The project will build on the outcomes of the 2013 UNEP regional GEF-funded project on ABS entitled “Building Capacity for Regionally Harmonized National Processes for Implementing CBD Provisions on Access to Genetic Resources and Sharing of Benefits”, of which Philippines was one of the target countries. The said project identified the roadmap for revision of the country’s current access and benefit-sharing legislative and policy framework though it focused more on establishing tracking and monitoring mechanisms that are in implementation of the Nagoya Protocol’s tracking and monitoring provisions and mechanisms. The tracking and monitoring mechanisms that will be set up in one of the project’s activities – the revision of ABS guidelines - will complement the proposed tracking and monitoring mechanisms identified by the said concluded project.

Through the BMB, institutional linkages will be established with key agencies in this Project, particularly the NCIP, the DOST and its research councils - PCHRD, PCAARD, the Intellectual Property Office of the Philippines, DTI, and identified private sector partners will meet to further develop the project components and its implementation


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mechanisms. This project will strongly link-up with the Drug Discovery Programme of the DOST to build on the results of researches done by its Tuklas Lunas Centers.

In addition, the implementation of this project will complement the following on-going and planned projects: The UNDP-GEF National ICCA Project where IP communities will document and establish their ICCAs

known to harbor key resources that may have economic potential. This project can showcase support to IP communities in the production of raw materials (e.g. dried leaves) which may be needed by the private sector in their supply chain; The documentation of their traditional knowledge associated in genetic resources can be part of the ICCA National Registry;

The UNDP-GEF SGP where different models of community-based conservation areas are being established. This could help inform best practices in establishing in-situ conservation areas under this project.

The UNDP-GEF SMARTSeas Project where it supports the strengthening of marine protected areas and MPA networks. These MPAs are natural gene bank and its protection is crucial in conserving the genetic pool of key marine resources which are yet to be explored or researched on.

The UNDP-GEF BD Corridors Project17 will be implemented in Mindoro Island working at the landscape level and strengthening multi-stakeholder dialogues. This platform can be mutually beneficial to promote ABS and potentially scale up efforts and ensure sustainability for both projects.

Under the leadership of BMB, sharing of lessons and experiences will be made to fine tune the approaches and avoid duplication. Coordination shall also be established with other NGOs active in the sector and have operations in the sites, to maximize collective impacts.

7. Consistency with National Priorities. Is the project consistent with the National strategies and plans or reports and assessments under relevant conventions? (yes /no ). If yes, which ones and how:

The project is consistent with the country’s Philippine Development Plan 2016-2022, specifically Chapter 20 which specify the ABS as a strategy in developing and expanding resource-based industries. This is also consistent with the area-based convergence programme entitled “Sustainable Integrated Area-Based Development” of the DENR which will be implemented in 2017. It identified priority areas including the sites that are nominated as pilot/demonstration sites for this proposal. This programme aims to apply area-based interventions and concepts on its natural resource development programs including but not limited to national greening programme and integrated island development and takes into consideration the marginalized CSO sectors including IPs, urban poor, farmers, and fisherfolks, women, etc.

The project is consistent with UN Sustainable Development Goals. It will contribute to the achievement of many SG goals in particular the following: SDG 1 - End Poverty, SDG 10 - Reduced Inequalities, SDG 14 - Life below Water and SDG 15 – Life on Land.

The project will also contribute to the following Aichi Targets: Target 14 -By 2020, ecosystems that provide essential services, including services related to water, and contribute to health, livelihoods and well-being, are restored and safeguarded, taking into account the needs of women, indigenous and local communities, and the poor and vulnerable; Target 16; By 2015, the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization is in force and operational, consistent with national legislation; and by 2020, knowledge, the science base and technologies relating to biodiversity, its values, functioning, status and trends, and the consequences of its loss, are improved, widely shared and transferred, and applied.

Similarly, the project will contribute in the implementation of the key priorities defined in the Philippine Biodiversity Strategy and Action Plan 2015-2028, particularly the Roadmap for Realizing Access and Benefit-Sharing in the Philippines where close synergy among the various agencies for implementing Joint DENR-DA-PCSD-NCIP Administrative Order No. 1, Series of 2005 or the 2005 Guidelines for Bioprospecting under the Wildlife Act is called for. It will contribute to the goals and targets of the PBSAP through the strengthening of mechanisms for the assertion by the communities of their rights and the corresponding respect that must be given to such rights by interested stakeholders, particularly the research community and the private sector.

17 At PPG stage as this PIF is being drafted


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8. Knowledge Management. Outline the “Knowledge Management Approach” for the project and how it will contribute to the project’s overall impact, including plans to learn from relevant projects, initiatives and evaluations.Knowledge management will be handled through a variety of approaches in the project. To begin with, during the project preparation phase, relevant other previous experiences and best practices related to ABS such as PIC and MAT processes, various steps related to revision and application of a NP complaint national ABS legislation and comprehensive stakeholder engagement will be reviewed and documented. These will be widely disseminated and used to inform the development of detailed project work plan in particular the outreach and communication related efforts. Besides, various forms of knowledge management will be used, such as the development of posters to illustrate the project ventures, so that aspiring participants in the sector can learn from these ventures. Also, project participants will be provided with platforms, bioprospecting forum meetings and/or biodiversity conservation and sustainable use workshops, to impart their experience during the project implementation. The project will produce knowledge products such as technical guidelines based on project experiences, and public education and awareness materials. During project implementation all key project documents and information will be available on a central project website hosted independently or on the DENR website. The project supported database on completed, on-going and planned research studies will be made accessible to relevant parties. A knowledge management strategy will be developed during the PPG that will among others detail information dissemination strategy and including assessing the need for special platforms such as national-level workshops/seminars to disseminate project results.

PART III: APPROVAL/ENDORSEMENT BY GEF OPERATIONAL FOCAL POINT(S) A. RECORD OF ENDORSEMENT OF GEF OPERATIONAL FOCAL POINT (S) ON BEHALF OF THE GOVERNMENT(S): (Please attach the Operational Focal Point endorsement letter(s) with this template. For SGP, use this SGP OFP endorsement letter).

NAME POSITION MINISTRY DATE (MM/dd/yyyy) Analiza Rebuelta-Teh Undersecretary Undersecretary

Department of Environment and Natural Resources

21 September 2018


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Annex A

PROGRAM/PROJECT MAP AND GEOGRAPHIC COORDINATES of CANDIDATE SITES (to be confirmed during PPG)

1. Albay Province

2. Mindoro Island

Annex B

GEF 7 Core Indicator Worksheet


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Use this Worksheet to compute those indicator values as required in Part I, item F to the extent applicable to your proposed project. Progress in programming against these targets for the project will be aggregated and reported at any time during the replenishment period. There is no need to complete this table for climate adaptation projects financed solely through LDCF and SCCF.


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Annex C

Project Taxonomy Worksheet

Use this Worksheet to list down the taxonomic information required under Part I, item G by ticking the most relevant keywords/ topics/themes that best describe this project.


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Annex D

Bioprospecting Information in the Candidate Sites

Questions Proposed SitesMindoro Island Bicol/Albay Province

1. Species (plant, fungus, corals): Common and/or scientific namepublic domain? Yes or No.

Sambong (Blumea balsamifera) Pili (Canarium luzonicum)

2. Proposed Research & Development: What is being investigated species already in the

Many studies done already. Patent has been secured for diuretic and anti-urolithiasis (kidney stone)

Further R&D on the extraction of essential oil from sambong and development of products from its essential oil

Many researches have been done on elemi oil as potential materials for high-value specialty oil products;

Further R&D on product development – skin care and cosmetic products

3. Who is going to do the R&D: Name of lab or facility

UP Manila, PITAHC, Sekaya, Unilab R&D Group

UP Manila, Bicol State University

4. Name of actual or potential buyer: International or national

Unilab Laboratories, Pascual Laboratories

Manila Herbal and Essential Oils Co.;Aroma Terra Inc. Philippines;Pili Beauty and Wellness

5. Where does the species occur: Name of Protected Area

It grows abundantly at low and medium altitudes. Often found in grasslands. This can also be found in PAs in Mindoro Island – Mounts Iglit-Baco National Park

Common in primary forests at low and medium altitudes from northern Luzon (Cagayan) to Mindoro, Ticao, and Bicol region and potentially in Mt. Isarog Natural Park

6. What are the communities that hold the TK on the species (except probably corals).

Mangyan and non-Mangyan communities

Farmers/local communities (non-IP)

What will be the project’s value added to the current initiatives?

Production technology to meet the volume demand of the private

PIC and MAT with local communities

sector;Further R&D on the production technology;Improving the supply chain of Sambong;PIC and MAT with Mangyan CommunitiesBenefit sharing schemeABS agreement with Mangyan communities

Further R&D on product development;Improving the supply chain of Elemi;Benefit sharing scheme ABS agreement with local resource providers

Documents

GEF 7 PIF template · Web viewSignificant biodiversity species include the famous Luzon bleeding heart and many endemic species (eg Philippine Brown Deer, Philippine Warty Pig, and